Document ID: EPA-HQ-OAR-2009-0865-7647
Agency: epa
Document Type: Rule
Title: Revisions and Additions to Motor Vehicle Fuel Economy Label; Final Rule
Posted Date: 2011-07-06T04:00Z

[Federal Register Volume 76, Number 129 (Wednesday, July 6, 2011)]
[Rules and Regulations]
[Pages 39478-39587]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14291]

[[Page 39477]]

Vol. 76

Wednesday,

No. 129

July 6, 2011

Part II

Environmental Protection Agency

-----------------------------------------------------------------------

40 CFR Parts 85, 86, and 600

Department of Transportation

-----------------------------------------------------------------------

National Highway Traffic Safety Administration

-----------------------------------------------------------------------

49 CFR Part 575

Revisions and Additions to Motor Vehicle Fuel Economy Label; Final Rule

  Federal Register / Vol. 76 , No. 129 / Wednesday, July 6, 2011 / 
Rules and Regulations  

[[Page 39478]]

-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 85, 86, and 600

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 575

[EPA-HQ-OAR-2009-0865; FRL-9315-1; NHTSA-2010-0087]
RIN 2060-AQ09; RIN 2127-AK73

Revisions and Additions to Motor Vehicle Fuel Economy Label

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) and the National 
Highway Traffic Safety Administration (NHTSA) are issuing a joint final 
rule establishing new requirements for the fuel economy and environment 
label that will be posted on the window sticker of all new automobiles 
sold in the U.S. The labeling requirements apply for model year 2013 
and later vehicles with a voluntary manufacturer option for model year 
2012. The labeling requirements apply to passenger cars, light-duty 
trucks, and medium duty passenger vehicles such as larger sport-utility 
vehicles and vans. The redesigned label provides expanded information 
to American consumers about new vehicle fuel economy and fuel 
consumption, greenhouse gas and smog-forming emissions, and projected 
fuel costs and savings, and also includes a smartphone interactive code 
that permits direct access to additional Web resources. Specific label 
designs are provided for gasoline, diesel, ethanol flexible fuel, 
compressed natural gas, electric, plug-in hybrid electric, and hydrogen 
fuel cell vehicles. This rulemaking is in response to provisions in the 
Energy Independence and Security Act of 2007 that imposed several new 
labeling requirements and new advanced-technology vehicles entering the 
market. NHTSA and EPA believe that these changes will help consumers to 
make more informed vehicle purchase decisions, particularly as the 
future automotive marketplace provides more diverse vehicle 
technologies from which consumers may choose. These new label 
requirements do not affect the methodologies that EPA uses to generate 
consumer fuel economy estimates, or the automaker compliance values for 
NHTSA's corporate average fuel economy and EPA's greenhouse gas 
emissions standards. This action also finalizes a number of technical 
corrections to EPA's light-duty greenhouse gas emission standards 
program.

DATES: This final rule is effective on September 6, 2011. The 
incorporation by reference of certain publications listed in this 
regulation is approved by the Director of the Federal Register as of 
September 6, 2011.

ADDRESSES: EPA and NHTSA have established dockets for this action under 
Docket ID No. EPA-HQ-OAR-2009-0865 and NHTSA-2010-0087, respectively. 
All documents in the docket are listed on the http://www.regulations.gov Web site. Although listed in the index, some 
information is not publicly available, e.g., confidential business 
information (CBI) or other information whose disclosure is restricted 
by statute. Certain other material, such as copyrighted material, is 
not placed on the Internet and will be publicly available only in hard 
copy form. Publicly available docket materials are available either 
electronically through http;//www.regulations.gov or in hard copy at 
the following locations: EPA: EPA Docket Center (EPA/DC), EPA West, 
Room 334, 1301 Constitution Ave., NW., Washington, DC. The Public 
Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, excluding legal holidays. The telephone number for the Public 
Reading Room is (202) 566-1744. NHTSA: NHTSA: Docket Management 
Facility, M-30, U.S. Department of Transportation, West Building, 
Ground Floor, Rm. W12-140, 1200 New Jersey Avenue, SE., Washington, DC 
20590. The Docket Management Facility is open between 9 a.m. and 5 p.m. 
Eastern Time, Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: EPA: Lisa Snapp, Office of 
Transportation and Air Quality, Transportation and Climate Division, 
Environmental Protection Agency, 2000 Traverwood Drive, Ann Arbor, MI 
48105; telephone number: 734-214-4282; fax number: 734-214-4958; e-mail 
address: snapp.lisa@epa.gov.
    DOT/NHTSA: Rebecca Yoon, Office of Chief Counsel, National Highway 
Traffic Safety Administration, 1200 New Jersey Avenue, SE., Washington, 
DC 20590. Telephone: (202) 366-2992.

SUPPLEMENTARY INFORMATION:

A. Does this action apply to me?

    This action affects companies that manufacture or sell new light-
duty vehicles, light-duty trucks, and medium-duty passenger vehicles, 
as defined under EPA's CAA regulations,\1\ and passenger automobiles 
(passenger cars) and non-passenger automobiles (light trucks) as 
defined under NHTSA's CAFE regulations.\2\ Regulated categories and 
entities include:
---------------------------------------------------------------------------

    \1\ ``Light-duty vehicle,'' ``light-duty truck,'' and ``medium-
duty passenger vehicle'' are defined in 40 CFR 86.1803-01. 
Generally, the term ``light-duty vehicle'' means a passenger car, 
the term ``light-duty truck'' means a pick-up truck, sport-utility 
vehicle, or minivan of up to 8,500 lbs gross vehicle weight rating, 
and ``medium-duty passenger vehicle'' means a sport-utility vehicle 
or passenger van from 8,500 to 10,000 lbs gross vehicle weight 
rating. Medium-duty passenger vehicles do not include pick-up 
trucks.
    \2\ ``Passenger car'' and ``light truck'' are defined in 49 CFR 
Part 523.

------------------------------------------------------------------------
                                   NAICS codes   Examples of potentially
            Category                   \A\          regulated entities
------------------------------------------------------------------------
Industry........................  336111.......  Motor vehicle
                                                  manufacturers.
                                  336112.......
Industry........................  811112.......  Commercial importers of
                                                  vehicles and vehicle
                                                  components.
                                  811198.......
                                  423110.......
Industry........................  336211.......  Stretch limousine
                                                  manufacturers and
                                                  hearse manufacturers.
Industry........................  441110.......  Automobile dealers.
------------------------------------------------------------------------
\A\ North American Industry Classification System (NAICS).

[[Page 39479]]

    This list is not intended to be exhaustive, but rather provides 
guidance on entities likely to be regulated by this action. To 
determine whether particular activities may be regulated by this 
action, you should carefully examine the regulations. You may direct 
questions regarding the applicability of this action to the person 
listed in FOR FURTHER INFORMATION CONTACT.

Table of Contents

I. Overview of Joint EPA/NHTSA New Vehicle Labels
    A. Description of the Proposal
    B. Description of the Action
    C. Rationale for Revising the Label
    D. Market Research
II. Statutory Provisions and Legal Authority
    A. Energy Policy and Conservation Act (EPCA)
    B. Energy Independence and Security Act (EISA)
III. Public Participation and Comment
    A. Energy Metrics
    B. Rating Systems
    C. Form of the Ratings
    D. Fuel Economy and Greenhouse Gas Rating Methodology
    E. Upstream GHGs
    F. Smog Rating
    G. Fuel Costs and Savings
    H. Range and Charge Time
    I. Web Site and QR Code
    J. Color
    K. Lead Time
    L. Harmonization With Other Labels
    M. Electric and Plug-in Hybrid Electric Vehicle Test Procedures
    N. Utility Factors
IV. Final Label Designs and Format
    A. Label Size and Border
    B. Upper Box
    C. Lower Box
    D. Example Labels
V. Additional Related EPA Actions
    A. Comparable Class Categories
    B. Miscellaneous Amendments and Corrections
VI. Impacts of Final Rule
    A. Costs Associated With This Rule
    B. Impact of Requiring One Label To Meet EPCA/EISA
    C. Benefits of Label Changes
    D. Summary of Costs and Benefits
VII. Statutory Authority and Executive Order Reviews
    A. Relationship of EPA's Requirements With Other Statues and 
Regulations
    B. Statutory and Executive Order Reviews

List of Acronyms and Abbreviations

A/C Air Conditioning
AC Alternating Current
AIDA Automobile Information Disclosure Act
BTU British Thermal Units
CAA Clean Air Act
CAFE Corporate Average Fuel Economy
ARB California Air Resources Board
CBI Confidential Business Information
CD Charge Depleting
CFR Code of Federal Regulations
CH4 Methane
CNG Compressed Natural Gas
CO Carbon Monoxide
CO2 Carbon Dioxide
CREE Carbon-related Exhaust Emissions
CS Charge Sustaining
DOE Department of Energy
DOT Department of Transportation
E85 A mixture of 85% ethanol and 15% gasoline
EISA Energy Independence and Security Act of 2007
EO Executive Order
EPA Environmental Protection Agency
EPCA Energy Policy and Conservation Act
EPL Environmental Performance Label
EREV Extended Range Electric Vehicle
EV Electric Vehicle
FCV Fuel Cell Vehicle
FE Fuel Economy
FFV Flexible Fuel Vehicle
FTC Federal Trade Commission
FTP Federal Test Procedure
GHG Greenhouse Gas
GVWR Gross Vehicle Weight Rating
HCHO Formaldehyde
HEV Hybrid Electric Vehicle
HFC Hydrofluorocarbon
HFET Highway Fuel Economy Test
ICI Independent Commercial Importer
IT Information Technology
ICR Information Collection Request
LEV II Low Emitting Vehicle II
LEV II opt 1 Low Emitting Vehicle II, option 1
MDPV Medium Duty Passenger Vehicle
MPG Miles per Gallon
MPGe Miles per Gallon equivalent
MY Model Year
N2O Nitrous Oxide
NAICS North American Industry Classification System
NCAP New Car Assessment Program
NEC Net Energy Change
NHTSA National Highway Traffic Safety Administration
NMOG Non-methane Organic Gases
NOX Oxides of Nitrogen
NPRM Notice of Proposed Rulemaking
NTTAA National Technology Transfer and Advancement Act of 1995
O&M Operations and Maintenance
OCR Optical Character Recognition
OMB Office of Management and Budget
PEF Petroleum Equivalency Factor
PHEV Plug-in Hybrid Electric Vehicle
PM Particulate Matter
PZEV Partial Zero-Emissions Vehicle
RCDA Actual Charge Depleting Range
RESS Rechargeable Energy Storage System
RFA Regulatory Flexibility Act
SAE Society of Automotive Engineers
SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity 
Act: A Legacy for Users
SBA Small Business Administration
SFTP Supplemental Federal Test Procedure
SOC State-of-Charge
SULEV II Super Ultra Low Emission Vehicles II
SUV Sport Utility Vehicle
UDDS Urban Dynamometer Driving Schedule
UF Utility Factor
ULEV II Ultra Low Emission Vehicles II
UMRA Unfunded Mandates Reform Act
ZEV Zero Emission Vehicle

I. Overview

A. Description of the Proposal

    EPA and NHTSA co-proposed two label designs, each meeting statutory 
requirements and relying on the same underlying data, but differing in 
how the data were presented.\3\ Label 1 utilized a vertical layout that 
featured a prominent letter grade to communicate the overall greenhouse 
gas emissions (and fuel economy, which is inversely proportional to GHG 
emissions for gasoline vehicles), along with projected five-year fuel 
cost or savings relative to the average new vehicle; fuel economy and 
annual fuel cost information was retained but displayed much less 
prominently. Label 2 was more similar to the traditional design and 
layout of the label and retained the current label's focus on fuel 
economy values and annual fuel cost projections, with the addition of 
environmental information in a less prominent position. The agencies 
also sought comment on an alternative Label 3 that retained the more 
traditional layout of Label 2 but used different graphical approaches.
---------------------------------------------------------------------------

    \3\ 75 FR 58078, September 23, 2010.
---------------------------------------------------------------------------

B. Description of the Action

    This final rule requires that a revised fuel economy and 
environmental label be affixed to all new automobiles sold in the U.S. 
starting with the 2013 model year and optionally for the remaining 
portion of the 2012 model year. The agencies heard a wide range of 
viewpoints and considered a wealth of input from market research, an 
expert panel, hearings, and public comments in deciding on the final 
label design and content. We also consulted with ARB with the intention 
of harmonizing labels that address vehicle environmental performance. 
The agencies have chosen to require a label that combines the cost-
saving element of Label 1 and the GHG rating of Label 3 with key 
elements of the co-proposed Label 2, using a single additional color 
besides black and white.

[[Page 39480]]

    Labels are being required for seven different vehicle technologies: 
Gasoline, diesel, ethanol flexible fuel vehicles (FFV), compressed 
natural gas vehicles (CNG), battery electric vehicles (EV), fuel cell 
vehicles (FCV), and plug-in hybrid electric vehicles (PHEV). The final 
fuel economy and environment labels retain many of the attributes of 
the existing fuel economy label; specifically: Estimated annual fuel 
cost; city, highway, and combined MPG; and fuel economy relative to 
other vehicles in the same class will remain on the label, although 
their relative prominence is revised to create space for new features. 
Vehicles run on liquid fuels will display MPG, while vehicles run on 
other fuel types will display gasoline-energy equivalent MPG (or MPGe). 
Test procedures and methodologies for determining label values remain 
unchanged from proposal. This rulemaking action also requires fuel 
economy and emissions certification test procedure and calculation 
methodologies for electric and plug-in hybrid electric vehicles, 
essentially codifying the procedures that have been in use under EPA's 
general authority to develop procedures for technologies not 
specifically discussed in the regulations.
    New label features include a vehicle fuel type identifier in the 
upper right corner, fuel consumption (the inverse of fuel economy), a 
fuel economy and greenhouse gas rating relative to all new vehicles, 
the vehicle's carbon dioxide emissions in grams per mile, the projected 
five-year fuel costs or savings of this vehicle compared to the average 
new vehicle, and an environmental rating for smog-forming pollutants. 
The vehicle's projected range when fully fueled will be required on 
dedicated alternative fuel vehicles such as compressed natural gas 
vehicles and battery electric vehicles, and also plug-in hybrid 
electric vehicles, and can be included at the manufacturer's discretion 
on flexible fuel vehicles, such as those that are E85-capable. This 
optional inclusion could potentially eliminate the need for 
manufacturers to apply a separate FTC-required Alternative Fuel Label, 
pending a formal decision by FTC. For vehicles that use an external 
electricity source, charge time at 220-240 V (or optionally at 120 V) 
will also be shown. Several features of the design of the label differ 
from the current labels, such as the removal of the large image of a 
fuel pump, the blocking of the label into various defined areas, and 
the name on the label, as well as other design changes.
    Plug-in hybrid electric vehicle labels will reflect energy use 
during operation when the battery is fully charged (in this mode, some 
PHEVs operate on electricity only and others operate on both 
electricity and gasoline) and when the battery is not providing any 
assistance (the PHEV operates exclusively on gasoline or other non-
electricity fuel). As with labels for other technologies, PHEV labels 
will feature a prominent MPG or MPGe metric, as well as fuel 
consumption values based on units of purchased fuel; for PHEV labels, 
these values will be presented for each operating mode. Several values 
on the label--fuel costs and savings, MPGe relative to other vehicles, 
carbon dioxide emissions in grams per mile, and the ratings--will be 
based on assumptions of the relative use of the two fuels, using a 
standard utility factor approach. For further information on utility 
factors, please see section III.N. PHEVs which do not operate in 
blended mode (i.e., using both electricity and gasoline) will show 
range on electricity only (all electric range), PHEVs which do operate 
in blended mode will show the range for that mode, and all PHEVs will 
show total vehicle range for all fuels. Finally, charge time will be 
displayed as on electric vehicles.
    The final label for gasoline-fueled vehicles is illustrated in 
Figure I-1. Discussion of the placement of specific label elements, 
along with illustrations of the labels for other vehicle technologies 
and fuel types, can be found in Section IV, along with information on 
where to find and view full color versions of the labels.
[GRAPHIC] [TIFF OMITTED] TR06JY11.000

[[Page 39481]]

C. Rationale for Revising the Label

    This joint final rule by EPA and NHTSA represents the most 
significant overhaul of the Federal government's fuel economy label or 
``sticker'' since its inception over 30 years ago.
    The current fuel economy label required by EPA on all new passenger 
cars, light-duty trucks, and medium-duty passenger vehicles focuses on 
city and highway fuel economy values in units of MPG, a comparison of 
the vehicle's combined city/highway fuel economy to a range of 
comparable vehicles, and estimated annual fuel cost. This final rule 
expands the current fuel economy label to a more comprehensive fuel 
economy and environment label that includes additional information 
related to vehicle fuel consumption, GHG and smog-forming emissions, 
and fuel costs or savings over a 5-year period relative to the average 
vehicle, a smartphone interactive code that links to a Web site for 
more detailed information and options for direct vehicle comparisons, 
and additional information for advanced technology vehicles such as 
driving range and battery charge time. Label designs for gasoline, 
diesel, ethanol flexible fuel, compressed natural gas, electric, plug-
in hybrid electric, and hydrogen fuel cell vehicles are shown and 
discussed in section IV.
    NHTSA and EPA are undertaking this joint final rule for several 
reasons.
    First, both agencies have statutory responsibilities with respect 
to vehicle labels. This final rule satisfies each agency's statutory 
responsibilities in a manner that maximizes usefulness for the 
consumer, while avoiding unnecessary burden on the manufacturers who 
prepare the vehicle labels. The Energy Policy and Conservation Act 
(EPCA) of 1975 \4\ mandated that auto manufacturers label all new 
automobiles pursuant to EPA requirements,\5\ which EPA adopted 
beginning in model year 1977. As amended, EPCA requires that labels 
shall contain the following information:
---------------------------------------------------------------------------

    \4\ Pub. L. 94-163.
    \5\ 49 U.S.C. 32908(b).
---------------------------------------------------------------------------

    (1) The fuel economy of the automobile;
    (2) the estimated annual fuel cost of operating the automobile;
    (3) the range of fuel economy of comparable vehicles of all 
manufacturers;
    (4) a statement that a booklet is available from the dealer to 
assist in making a comparison of fuel economy of other automobiles 
manufactured by all manufacturers in that model year;
    (5) the amount of the automobile fuel efficiency tax (``gas guzzler 
tax'') imposed on the sale of the automobile under section 4064 of the 
Internal Revenue Code of 1986 (26 U.S.C. 4064); and
    (6) other information required or authorized by the EPA 
Administrator that is related to the information required by (1) 
through (4) above.\6\
---------------------------------------------------------------------------

    \6\ 49 U.S.C. 32908(b).
---------------------------------------------------------------------------

    In the Energy Independence and Security Act (EISA) of 2007,\7\ 
Congress required that NHTSA, in consultation with EPA and the 
Department of Energy (DOE), establish regulations to implement several 
new labeling requirements for new automobiles.\8\ NHTSA was required to 
develop a label program for new automobiles with information reflecting 
an automobile's performance with respect to fuel economy and greenhouse 
gas and other emissions over the useful life of the automobile based on 
criteria provided by EPA.\9\ NHTSA was also tasked with developing a 
rating system, based on EPA criteria, that would help consumers easily 
compare the fuel economy and greenhouse gas and other emissions of 
automobiles at the point of purchase, including designations of 
automobiles with the lowest GHG emissions over the useful life of the 
vehicles and the highest fuel economy.\10\
---------------------------------------------------------------------------

    \7\ Pub. L. 110-140.
    \8\ EISA Sec. 108, codified at 49 U.S.C. 32908(g).
    \9\ 49 U.S.C. 32908(g)(1)(a)(i).
    \10\ 49 U.S.C. 32908(g)(1)(a)(ii).
---------------------------------------------------------------------------

    Second, NHTSA and EPA believe that a single, coordinated fuel 
economy and environment label is the most appropriate way to meet the 
statutory requirements described above. The agencies believe that a 
single, joint label is preferable to a separate label addressing the 
new EISA requirements that could contain duplicative and overlapping 
information with the current fuel economy label, causing consumer 
confusion and imposing unnecessary burden on the manufacturers.\11\ In 
addition, the agencies have consulted with other agencies (Federal and 
State) that currently require labels relating to vehicle fuel use or 
environmental performance, and have designed the new EPA/NHTSA fuel 
economy and environment label to maximize the potential that it might 
also satisfy some of the vehicle labeling requirements of the 
California Air Resources Board and the Federal Trade Commission, which 
could further reduce consumer confusion and manufacturer burden 
resulting from the presence of multiple labels on new automobiles. By 
including information on GHG emissions and fuel economy, this rule 
continues EPA's and NHTSA's recent efforts at harmonizing our 
regulatory requirements, such as the joint rulemaking that established 
harmonized Federal GHG emissions and corporate average fuel economy 
(CAFE) standards for new cars, light-duty trucks, and medium-duty 
passenger vehicles for model years 2012-2016.\12\ This effort at 
harmonization is consistent with the requirements of Executive Order 
13563, section 3, which specifically draws attention to the risk of 
``redundant, inconsistent, or overlapping requirements,'' and which 
directs agencies to reduce costs by ``simplifying and harmonizing 
rules.''
---------------------------------------------------------------------------

    \11\ The agencies also raised the issue of the upcoming labeling 
requirements in the joint rulemaking for MYs 2012-2016 CAFE and GHG 
standards for light-duty vehicles, 75 FR 25324 (May 7, 2010).
    \12\ 75 FR 25324, May 7, 2010.
---------------------------------------------------------------------------

    Third, the agencies believe this is an opportune time to revise the 
label given the likelihood of a much more diverse vehicle technology 
marketplace in the near future that will require different label 
content to inform consumers of the capabilities of these new 
technologies. Since the fuel economy label was first established by EPA 
in 1977, over 99 percent of all new cars and light-duty trucks have 
been conventional, internal-combustion engine vehicles that run on 
petroleum-based fuels (or a liquid fuel blend dominated by petroleum). 
When manufacturers occasionally marketed a non-conventional technology, 
such as a compressed natural gas (CNG) vehicle, EPA generally addressed 
labels for new technology vehicles on a case-by-case basis.
    Over the next several model years, however, the agencies expect to 
see increasing numbers of advanced technology vehicles entering the 
marketplace. By 2012, it is expected that there will be at least one 
original equipment manufacturer offering of a CNG vehicle, an electric 
vehicle (EV) and a plug-in hybrid electric vehicle (PHEV) with 
nationwide availability.\13\

[[Page 39482]]

In the next few years, it is highly likely that there will be many more 
advanced technology vehicles offered for general sale, possibly 
including fuel cell vehicles (FCV) as well. The agencies believe that 
it is better to have a single unified approach for these advanced 
technology vehicle labels,\14\ rather than addressing them on a case-
by-case basis. This final rule specifically provides example labels for 
gasoline vehicles, diesel vehicles, ethanol flexible fuel vehicles, CNG 
vehicles, EVs, PHEVs,\15\ and hydrogen FCVs. Communicating the energy 
and environmental performance of some of these advanced technologies 
can be challenging. For example, PHEVs use two fuels, with blended PHEV 
designs using the two fuels simultaneously. The two fuels--gasoline and 
electricity--are very different in many respects, and consumer behavior 
can have a large impact on PHEV energy and environmental performance 
(e.g., the relative use of electricity and gasoline can vary greatly 
depending on the miles driven between battery charges as well as the 
frequency of battery charging). These technical complexities could lead 
to significant consumer confusion when multiple advanced technology 
vehicles begin to compete in the marketplace. We have tried to design 
the new labels to reduce the confusion and allow consumers to make more 
informed vehicle purchase decisions. The agencies expect to refine 
advanced technology vehicle labels over time as we have done with 
conventional vehicle labels. We also acknowledge the potential for 
other advanced technology vehicles to enter the marketplace in the 
future and, as we have historically done, will adapt the labels as 
needed to accommodate emerging technologies.
---------------------------------------------------------------------------

    \13\ Honda has sold a dedicated CNG Civic in selected states for 
several years, and has announced plans to expand sales to the rest 
of the U.S. later this year--see ``2012 Honda Civic Concepts,'' 
Michael Harley, January 11, 2011, last accessed on March 15, 2011 at 
http://www.vehix.com/articles/auto-previews--trends/2012-honda-
civic-concepts; Nissan began limited deliveries of its LEAF EV in 
December 2010 and plans to expand availability to the rest of the 
country in 2012--see ``Nissan Delivers Hawaii's First 100% Electric 
Nissan LEAF,'' January 31, 2011, last accessed on March 15, 2011 at 
http://www.nissanusa.com/leaf-electric-car/index?intcmp=home_ev_micro.Promo.Homepage.Home.P1#/leaf-electric-car/news/press-releases; 
the luxury Tesla Roadster EV is also on the U.S. market--see http://www.teslamotors.com/roadster, last accessed on March 15, 2011; 
Chevrolet introduced the Volt PHEV in December 2010 and plans to 
expand to nationwide availability later this year--see ``Curious 
About Chevy Volt Availability?'', Andrew Bornhop, February 2, 2011, 
last accessed on March 15, 2011 at http://blog.roadandtrack.com/curious-about-chevy-volt-availability/.
    \14\ The agencies do not claim that every advanced technology 
vehicle label is or will be exactly the same, that is not always 
possible due to unique vehicle designs and/or fuel properties, 
rather that the overall approach to advanced technology labels is 
consistent.
    \15\ Plug-in hybrid electric vehicles entail a family of 
different engineering approaches, and will continue to evolve based 
on technology maturation and consumer preferences. In Section IV, 
two basic PHEV label designs are provided that reflect current PHEV 
energy management strategies and the resultant operating modes. In 
the future, labels will be tailored to accommodate the operating 
modes specific to new PHEV designs as they are introduced into the 
market.
---------------------------------------------------------------------------

    Finally, the agencies believe these new labeling requirements will 
improve the presentation of relevant information to consumers and thus 
promote more informed choices, and that the new requirements fit well 
with current consumer interests and potential changes in coming years. 
Based on projections from the U.S. Energy Information Administration 
that future inflation-adjusted gasoline prices will increase over 
coming decades due to global economic growth and oil demand, we expect 
that it is likely that consumer interest in fuel economy will continue 
to grow over time.\16\ Manufacturers are providing more high fuel 
economy vehicle offerings, and one manufacturer is now including fuel 
economy information in its monthly sales reports.\17\ In addition, 
providing information on environmental performance can help people who 
value this kind of information to make a more informed choice among 
different vehicles.
---------------------------------------------------------------------------

    \16\ Annual Energy Outlook 2010, Department of Energy, Energy 
Information Administration, DOE/EIA-0383 (2010), May 11, 2010, 
available at http://www.eia.doe.gov/oiaf/aeo/index.html.
    \17\ ``A Magic Mark: As Fuel Prices Rise, Shoppers Can Get High 
MPG Without Sticker Shock,'' Rich Kranz, Automotive News, March 28, 
2011, which projects that by Fall 2011 there could be ten 
conventional gasoline, i.e., non-hybrid, models with EPA highway 
ratings of 40 mpg or more; the automaker Hyundai recently began 
monthly reporting of vehicle sales with 40 mpg EPA highway fuel 
economy ratings as well as sales-weighted corporate average fuel 
economy data (see ``Hyundai Motor America Begins Voluntary Monthly 
Fuel Economy Reporting,'' February 3, 2011, last accessed on March 
15, 2011 at http://www.hyundaiusa.com/about-hyundai/news/Corporate_Fuel_economy_Reporting_release-20110203.aspx).
---------------------------------------------------------------------------

    The new labels also have the potential to help consumers learn 
about fuel economy and vehicle emissions, and informed consumers may 
decide to place more weight on fuel economy and vehicle emissions for 
economic or environmental reasons. In this domain, consumers' tastes 
and values change over time. Of course, individual consumers will 
always determine the relative priority of fuel economy and 
environmental considerations vis-a-vis the many factors that go into a 
new vehicle purchase decision.

D. Market Research

    As discussed above, the fuel economy and environment label must 
contain certain pieces of information by statute and may also contain 
other pieces of related information EPA considers helpful to consumers. 
Given that all of the label information should be presented so as to 
maximize usefulness and minimize confusion for the consumer, EPA and 
NHTSA embarked upon a consumer research program.
    When EPA last redesigned the fuel economy label in 2006, consumer 
research was valuable in helping to inform the development of that 
label.\18\ Since this final rule addresses important new elements being 
added to the existing label as well as new labels for advanced 
technology vehicles, EPA and NHTSA conducted more comprehensive 
research than that undertaken in 2006 to help inform the final label 
content and design. Our research program included a review of 
literature on the vehicle buying process,\19\ three sets of consumer 
focus groups and a day-long facilitated consultation with an expert 
panel that helped inform the development of the proposed label designs, 
and an Internet survey to test the proposed labels with a wider 
audience.
---------------------------------------------------------------------------

    \18\ The current label was redesigned and implemented for model 
year (MY) 2008 vehicles. See 71 FR 77871-77969 (December 27, 2006).
    \19\ Environmental Protection Agency Fuel Economy Label: 
Literature Review, EPA420-R-10-906, August 2010.
---------------------------------------------------------------------------

    Focus groups were held beginning in late February through May 2010 
in four cities: Charlotte, Houston, Chicago, and Seattle. Overall, 32 
focus groups were convened with a total of 256 participants. The focus 
groups were valuable in helping us to identify individual metrics that 
consumers wanted to see on labels as well as effective label designs. 
Overall, focus groups indicated that redesigned labels should:

 Create an immediate first impression for consumers
 Be easy to read and understand quickly
 Clearly identify vehicle technology (e.g., gasoline, electric, 
plug-in hybrid)
 Utilize color
 Chunk information to allow people to deal with ``more 
information''
 Be consistent in content and design across technologies
 Allow for comparison across technologies
 Make it easy to identify the most fuel efficient and 
environmentally friendly vehicles \20\
---------------------------------------------------------------------------

    \20\ Environmental Protection Agency Fuel Economy Label: Phase 1 
Focus Groups, EPA420-R-10-903, August 2010; Environmental Protection 
Agency Fuel Economy Label: Phase 2 Focus Groups, EPA420-R-10-904, 
August 2010; and Environmental Protection Agency Fuel Economy Label: 
Phase 3 Focus Groups, EPA420-R-10-905, August 2010.

    Following the focus group research, we convened an expert panel for 
a one-day consultation on June 9, 2010, in Washington, DC. The expert 
panel provided individual feedback on the draft label designs we 
developed based on key findings from the focus groups.

[[Page 39483]]

We also asked the panel to assist us in identifying additional 
opportunities and strategies to provide information to consumers to 
help them assess the costs, emissions, and energy efficiency of 
different vehicles. The experts came from a variety of fields such as 
advertising and product development and were chosen because they had 
led successful national efforts to introduce new products or had 
spearheaded successful national educational campaigns.\21\ After 
viewing the draft labels, the various members of the expert panel 
offered the agencies the following insights and guidance that were key 
in developing one of the co-proposed label designs (Label 1) and also 
---------------------------------------------------------------------------
informed the label content and design being required today, including:

    \21\ More information on the expert panel, including a list of 
participants is available in the docket: Environmental Protection 
Agency Fuel Economy Label: Expert Panel Report, EPA420-R-10-908, 
August 2010.
---------------------------------------------------------------------------

 Keep it simple
     Consumers are likely to view the labels for a very short 
time--roll ratings and metrics up into a single score
     Use cost savings information--a very strong consumer 
motivator
     Develop a Web site that would be launched in conjunction 
with the new label. This consumer-focused Web site could provide more 
detailed information, along with access to tools, applications, and 
social media.\22\
---------------------------------------------------------------------------

    \22\ Environmental Protection Agency Fuel Economy Label: Expert 
Panel Report, EPA420-R-10-908, August 2010.
---------------------------------------------------------------------------

    We also undertook an Internet survey that was administered at the 
time of the release of the proposed rule in September, 2010, to 
determine whether any of the label designs had flaws that could 
undermine their ability to convey the desired information to the U.S. 
new car buying population. For the co-proposed labels and the 
alternative label, we designed the survey to test the understandability 
of the labels as well as whether the label designs affected consumers' 
abilities to select efficient and environmentally-friendly vehicles, 
given their typical travel pattern. The survey had nearly 3200 
respondents of self-identified U.S. new vehicle purchasers, each of 
whom saw only one of the three label designs. Respondents were asked 
questions that sought to reveal understanding of the information on the 
label, as well as questions that sought to reveal variations in vehicle 
selection based on label design.
    Overall, the results showed that the differences between the three 
label designs with respect to understandability were small in 
magnitude, with label 2 appearing to be a little more understandable 
than label 1.\23\ Likewise, the variations with regard to vehicle 
selection were relatively small. Although in all cases the majority of 
people selected the vehicle with lower projected fuel costs and higher 
savings, label 1 somewhat enhanced this effect over label 2.\24\ 
Because the survey did not uncover any ``fatal flaw'' with any of the 
three labels that would exclude it or any of its key elements from 
serious consideration in the final rule, the agencies continued to 
consider all elements of the three labels in developing the final rule. 
A report on that survey and its results is available in the public 
docket and on the Web site for this rule.\25\
---------------------------------------------------------------------------

    \23\ PRR, ``Internet Survey Results on the Effects of Fuel 
Economy Labels on Understanding and Selection'' November 2010, p. 1-
8.
    \24\ Ibid, p. 9-12.
    \25\ PRR, ``Internet Survey Results on the Effects of Fuel 
Economy Labels on Understanding and Selection'' November 2010. The 
agencies are acutely aware of the central importance of the best 
available research to inform judgments about disclosure requirements 
and will continue to consider such research in the future 
(including, where feasible and appropriate, randomized controlled 
trials).
---------------------------------------------------------------------------

II. Statutory Provisions and Legal Authority

A. Energy Policy and Conservation Act (EPCA)

    Under EPCA, EPA is responsible for developing the fuel economy 
labels that are posted on all new light duty cars and trucks sold in 
the U.S and, beginning in MY 2011, all new medium-duty passenger 
vehicles as well. Medium-duty passenger vehicles are a subset of 
vehicles between 8,500 and 10,000 pounds gross vehicle weight that 
includes large sport utility vehicles and vans, but not pickup 
trucks.\26\ EPCA requires the manufacturers of automobiles to attach 
the fuel economy label in a prominent place on each automobile 
manufactured in a model year and also requires auto dealerships to 
maintain the label on the automobile.\27\
---------------------------------------------------------------------------

    \26\ EPA's 2006 labeling rule applied to passenger cars, light-
trucks, and medium-duty passenger vehicles. Under section 32908(b), 
a manufacturer is to label each ``automobile,'' and EPA interpreted 
that provision as requiring labeling for vehicles that meet the 
definition of ``automobile'' under section 32901(a)(3), as well as 
vehicles under 8,500 pounds gross vehicle weight, whether or not 
they meet the definition of automobile, pursuant to section 
32908(a)(1). See 71 FR 77872, 77876-87, 77915 (December 27, 2006). 
Since the 2006 rule, EISA revised the definition of automobile in 
section 32901(a)(3). As with the interpretation discussed in the 
2006 rule, the requirements of section 32908(b) continue to apply to 
passenger cars, light-duty trucks, and medium-duty passenger 
vehicles.
    \27\ 49 U.S.C. 32908(b)(1).
---------------------------------------------------------------------------

    EPCA specifies the information that is minimally required on every 
fuel economy label.\28\ As stated above, labels must include:
---------------------------------------------------------------------------

    \28\ 49 U.S.C. 32908(b)(2)(A) through (F).
---------------------------------------------------------------------------

     The fuel economy of the automobile,
     The estimated annual fuel cost of operating the 
automobile.
     The range of fuel economy of comparable automobiles of all 
manufacturers,
     A statement that a booklet is available from the dealer to 
assist in making a comparison of fuel economy of other automobiles 
manufactured by all manufacturers in that model year,
     The amount of the automobile fuel efficiency tax imposed 
on the sale of the automobile under section 4064 of the Internal 
Revenue Code of 1986; \29\ and
---------------------------------------------------------------------------

    \29\ 26 U.S.C. 4064.
---------------------------------------------------------------------------

     Other information required or authorized by the 
Administrator that is related to the information required [within the 
first four items].
    Under the provision for ``other information'' EPA has previously 
required the statements ``your actual mileage will vary depending on 
how you drive and maintain your vehicle,'' and cost estimates ``based 
on 15,000 miles at $2.80 per gallon'' be placed on vehicle labels. EPA 
is adopting all of the labeling requirements discussed below and 
specified in EPA's regulations, based on its authority under section 
32908(b). In addition, the regulations adopted by EPA satisfy the 
requirement to develop criteria for purposes of section 32908(g).
    Additional labeling requirements are found in EPCA for 
``dedicated'' automobiles and ``dual fueled'' automobiles. A dedicated 
automobile is an automobile that operates only on an alternative 
fuel.\30\ Dedicated automobile labels must also display the information 
noted above.
---------------------------------------------------------------------------

    \30\ 49 U.S.C. 32901(a)(1) defines ``alternative fuel'' as 
including --(A) methanol; (B) denatured ethanol; (C) other alcohols; 
(D) except as provided in subsection (b) of this section, a mixture 
containing at least 85 percent of methanol, denatured ethanol, and 
other alcohols by volume with gasoline or other fuels; (E) natural 
gas; (F) liquefied petroleum gas; (G) hydrogen; (H) coal derived 
liquid fuels; (I) fuels (except alcohol) derived from biological 
materials; (J) electricity (including electricity from solar 
energy); and (K) any other fuel the Secretary of Transportation 
prescribes by regulation that is not substantially petroleum and 
that would yield substantial energy security and environmental 
benefits.''
---------------------------------------------------------------------------

    A dual fueled vehicle is a vehicle which is ``capable of operating 
on alternative fuel or a mixture of biodiesel and diesel fuel * * *, 
and on gasoline or diesel fuel'' for the minimum driving range (defined 
by the DOT).\31\ Dual fueled vehicle labels must:
---------------------------------------------------------------------------

    \31\ 49 U.S.C. 32901(a)(9), (c).

---------------------------------------------------------------------------

[[Page 39484]]

     Indicate the fuel economy of the automobile when operated 
on gasoline or diesel fuel.
     Clearly identify the automobile as a dual fueled 
automobile.
     Clearly identify the fuels on which the automobile may be 
operated; and
     Contain a statement informing the consumer that the 
additional information required by subsection (c)(2) [the information 
booklet] is published and distributed by the Secretary of Energy.\32\
---------------------------------------------------------------------------

    \32\ 49 U.S.C. 32908(b)(3).
---------------------------------------------------------------------------

    EPCA defines ``fuel economy'' for purposes of these vehicles as 
``the average number of miles traveled by an automobile for each gallon 
of gasoline (or equivalent amount of other fuel) used, as determined by 
the Administrator [of the EPA] under section 32904(c) [of this 
title].'' \33\
---------------------------------------------------------------------------

    \33\ 49 U.S.C. 32901(a)(11).
---------------------------------------------------------------------------

    Moreover, EPA is required under EPCA to prepare a fuel economy 
booklet containing information that is ``simple and readily 
understandable.'' \34\ The booklet is commonly known as the annual 
``Fuel Economy Guide.'' EPCA further instructs DOE to publish and 
distribute the booklet. EPA is required to ``prescribe regulations 
requiring dealers to make the booklet available to prospective 
buyers.'' \35\ While the booklet continues to be available in paper 
form, in 2006, EPA finalized regulations allowing manufacturers and 
dealers to make the Fuel Economy Guide available electronically to 
customers as an option.\36\
---------------------------------------------------------------------------

    \34\ 49 U.S.C. 32908(c).
    \35\ Id.
    \36\ 71 FR 77915, Dec. 27, 2006.
---------------------------------------------------------------------------

    In this rule where we refer to EPA's statutory authority under 
EPCA, we are referring to these provisions.

B. Energy Independence and Security Act (EISA)

    The 2007 passage of the Energy Independence and Security Act (EISA) 
amended EPCA by introducing additional new vehicle labeling 
requirements, to be implemented by the National Highway Traffic Safety 
Administration (NHTSA).\37\ While EPA retained responsibility for 
establishing test methods and calculation procedures for determining 
the fuel economy estimates of automobiles for the purpose of posting 
fuel economy information on labels and in an annual Fuel Economy Guide, 
NHTSA gained responsibility for requiring automobiles to be labeled 
with additional performance metrics and rating systems to help 
consumers compare vehicles to one another more easily at the point of 
purchase.
---------------------------------------------------------------------------

    \37\ Public Law 110-140.
---------------------------------------------------------------------------

    Specifically, and for purposes of this rulemaking, subsection ``(g) 
Consumer Information'' was added to 49 U.S.C. 32908. Subsection (g), in 
relevant part, directed the Secretary of Transportation (by delegation, 
the NHTSA Administrator) to ``develop and implement by rule a program 
to require manufacturers--
    (A) to label new automobiles sold in the United States with--
    (i) information reflecting an automobile's performance on the basis 
of criteria that the [EPA] Administrator shall develop, not later than 
18 months after the date of the of the Ten-in-Ten Fuel Economy Act, to 
reflect fuel economy and greenhouse gas and other emissions over the 
useful life of the automobile:
    (ii) a rating system that would make it easy for consumers to 
compare the fuel economy and greenhouse gas and other emissions of 
automobiles at the point of purchase, including a designation of 
automobiles--
    (I) with the lowest greenhouse gas emissions over the useful life 
of the vehicles; and
    (II) the highest fuel economy* * *''

In this rule where we refer to NHTSA's statutory authority under EISA, 
we are referring to these provisions.
    Thus, both EPA and NHTSA have authority over labeling requirements 
related to fuel economy and environmental information under EPCA and 
EISA, respectively. In order to implement that authority in the most 
coordinated and efficient way, the agencies are issuing this joint 
final rule with the revised labels presented below.

III. Public Participation and Comment

    The agencies proposed the joint label rule on September 23, 
2010,\38\, and received over 6000 comments representing many 
perspectives. The agencies received oral testimony at two public 
hearings: one in Chicago on October 14, 2010, and one in Los Angeles on 
October 21, 2010. Additionally, the agencies received written comments 
from more than 50 organizations, including auto manufacturers and 
dealers, state and local governments, environmental groups, consumer 
organizations, other non-governmental organizations, and thousands of 
comments from private citizens.
---------------------------------------------------------------------------

    \38\ 75 FR 58078 (Sept. 23, 2010).
---------------------------------------------------------------------------

    This section addresses the key issues on which public comments were 
received on the proposed rule and discusses the agencies' final 
decisions on those issues. Our more detailed responses to public 
comments are available in the docket in the Response to Comments 
document associated with this final rule.

A. Energy Metrics

1. Fuel Economy
    The agencies proposed to retain the current practice of placing MPG 
on the label for vehicles that use liquid fuels such as gasoline and 
diesel. There are two main reasons for this. First, representing the 
vehicle's fuel economy performance on the label with an estimate of 
miles per gallon is a core element of the fuel economy information 
requirements of EPCA, which specifically states that the label must 
display ``the fuel economy of the automobile'' \39\ and defines ``fuel 
economy'' as ``the average number of miles travelled by an automobile 
for each gallon of gasoline (or equivalent amount of other fuel) used, 
as determined by the Administrator.'' \40\ Historically, the label has 
presented this information in terms of gallons of purchased fuel, since 
this is the most meaningful for the consumer. Thus, gasoline vehicle 
labels have historically displayed miles per gallon of gasoline, while 
diesel vehicle labels have displayed miles per gallon of diesel.\41\ 
The proposal retained this approach. Second, consumers are very 
familiar with the MPG metric, as it has been the ubiquitous fuel 
economy metric for liquid fuels on vehicle labels since 1977. The 
familiarity and ubiquity of the metric argue for its continued use 
(despite its limitation, as discussed below).
---------------------------------------------------------------------------

    \39\ 49 U.S.C. 32908(b)(1)(A). EISA also requires fuel economy 
information. See 32908(g)(1)(A).
    \40\ 49 U.S.C. 32901(a)(11).
    \41\ Similarly, for those manufacturers who elect to put E85 
information on the label for a flexible-fueled vehicle, it would be 
displayed as miles per gallon of E85.
---------------------------------------------------------------------------

    For those vehicles that do not use liquid fuels--such as EVs, PHEVs 
operating on electricity, and CNG vehicles \42\-- we proposed to use 
miles

[[Page 39485]]

per gallon of gasoline-equivalent (MPGe). This metric is similar to 
MPG, but, instead of presenting miles per gallon of the vehicle's fuel 
type, it represents miles per amount of energy used, conveyed as the 
gallons of gasoline that have the equivalent amount of energy. We 
proposed MPGe for three reasons. First, as previously noted, EPCA 
requires a fuel economy value for all labels, defined as the miles 
travelled for each ``gallon of gasoline (or equivalent amount of other 
fuel) used.'' \43\ Second, non-liquid fuels are not typically dispensed 
by the gallon, which makes it challenging to derive a metric reflecting 
gallons dispensed. However, a gasoline-equivalent gallon--that is, the 
amount of energy in the non-liquid fuel that is equivalent to that in a 
gallon of gasoline--can be derived for each fuel type.\44\ Third, 
consumer groups preferred some type of comparative fuel economy metric 
that could be used across technologies, and MPGe allows such a 
comparison.\45\
---------------------------------------------------------------------------

    \42\ While EPA did not propose explicit labels for hydrogen fuel 
cell vehicles (FCVs), we are including a label design for FCVs 
because the label design issues for FCVs are very similar to those 
for other dedicated, non-petroleum vehicles such as CNG vehicles and 
EVs. In addition, EPA has designed FCV labels in the past on an as-
needed basis. EPA did not propose, and is therefore not finalizing, 
fuel economy and range test procedures for FCVs. Test procedures 
will continue to be as specified by EPA under the authority of 40 
CFR 600.111-08(f), which allows the Administrator to prescribe 
``special test procedures'' under certain circumstances. However, 
EPA expects to continue to specify the use of SAE J2572, 
(``Recommended Practice for Measuring Fuel Consumption and Range of 
Fuel Cell and Hybrid Fuel Cell Vehicles Fuelled by Compressed 
Gaseous Hydrogen''). Manufacturers of FCVs should continue to work 
with EPA to ensure that the procedures are applied according to EPA 
requirements.
    \43\ 49 U.S.C. 32901(a)(11).
    \44\ While some non-liquid fuels are sold on a gasoline-
equivalent basis (e.g., CNG), some are not (e.g., electricity), and 
some are not yet widely sold as a vehicle fuel (e.g., hydrogen),
    \45\ Environmental Protection Agency Fuel Economy Label: Phase 3 
Focus Groups, EPA420-R-10-905, August 2010, p. 35.
---------------------------------------------------------------------------

    On the other hand, the agencies discussed in the proposal that MPGe 
has some drawbacks for a fuel such as electricity: electricity is never 
purchased by the gallon, and MPGe requires the conversion of 
electricity to an energy-equivalent amount of gasoline, a fuel which is 
very different in many ways. An alternative approach for such vehicles 
that the agencies considered is miles per unit of purchased fuel--for 
example, miles per kilowatt-hour. Such a metric would be in terms of 
the fuel that the consumer purchases, which could be more useful for 
calculating fuel costs and for comparing with other vehicles of the 
same technology but would not be comparable across technologies. The 
agencies specifically asked for comments on the merits of using MPGe 
for non-liquid fuels.
    Comments overwhelmingly supported the use of MPG for liquid fuels, 
although one commenter advocated that diesel vehicle fuel economy 
values be calculated on an MPGe basis in order to reflect the higher 
energy content of diesel fuel. The agencies are requiring the use of 
MPG for liquid fuels for the same reasons articulated in the proposal: 
Historical implementation of the EPCA requirements, consumer 
familiarity, and the fact that these fuels are purchased by the gallon. 
We believe that changing to MPGe for the fuel economy of diesel 
vehicles would be very confusing to consumers, as label MPGe values 
would then be inconsistent with all consumer calculations of fuel 
economy (since diesel is sold in volumetric gallons) as well as fuel 
economy values shown on vehicle dashboard displays.
    The agencies proposed a range of options for ethanol flexible fuel 
vehicles, including maintaining the current policy of requiring only 
gasoline-based MPG on the label (with optional inclusion of E85-based 
MPG), requiring the addition of E85-based MPG, and requiring the 
addition of E85-based MPGe. Only a few commenters addressed ethanol 
flexible fuel vehicles, and most who commented on this option supported 
the current policy. The agencies are requiring a label for ethanol 
flexible fuel vehicles that is consistent with the principles of the 
current policy: All label metrics are based on gasoline operation, a 
statement is provided so that the consumer knows that the values are 
based on gasoline operation,\46\ and EPA is finalizing that 
manufacturers may voluntarily include fuel economy estimates on E85 
(which would be based on miles per gallon of E85, given that E85 is a 
liquid fuel).\47\ Data show that, on average, FFVs operate on operate 
on gasoline nearly 99% of the time, and on E85 fuel about 1% of the 
time.\48\ In light of this, the agencies believe it is appropriate to 
require only gasoline values on the label, and to provide E85 
information on the Web site.
---------------------------------------------------------------------------

    \46\ ``Values are based on gasoline and do not reflect 
performance and ratings on E85.''
    \47\ In addition, as required under EPA's authority in EPCA, the 
Fuel Economy Guide and Web site will continue to provide the fuel 
economy estimates on E85, the driving range on E85, and information 
about how the performance might change when operating on mixtures of 
E85 and gasoline.
    \48\ In 2007, about 7.1 million FFVs were on the road, 
comprising about 2.8% of the 247,000,000 cars and trucks in use in 
the U.S. These vehicles used 54 million gallons of E85, which is 
about 0.04% of the transportation fuel used for automobiles and 
light trucks (8.8 million BPD or 135 billion gallons per year). The 
result is that about 1.4% of fuel used in FFVs is E85; the remainder 
is gasoline. All data from Transportation Energy Data book: Edition 
29. U.S. Department of Energy, July 2010. Tables 1.14, 2.4, 3.3, and 
6.1.
---------------------------------------------------------------------------

    For non-liquid fuels, the comments on the use of MPGe as a fuel 
economy metric were split. Supportive comments focused on the value of 
having a metric that consumers could use to compare across technologies 
and that was similar to the MPG metric with which people are 
accustomed. These commenters supported the use of energy equivalency, 
as proposed, and agreed that this mathematical conversion was the best 
approach to create a practical comparative tool. One automaker 
explicitly viewed the MPGe metric to be in direct alignment with EPCA 
statutory authority for the new label to show a comparison of fuel 
economy of comparable automobiles.
    Those opposed to the use of MPGe for non-liquid fuels directly 
challenged whether it was, in fact, a good comparative tool for 
consumers. These commenters argued that MPGe would be misleading by 
implying that different fuel types were substantially equivalent and 
ignoring the many effects of obtaining and using very different fuels, 
such as shifting dependence on foreign oil; that is, that MPGe 
oversimplifies a complex situation. Some also commented that 
mathematically converting between gasoline and other fuels on an energy 
equivalency basis ignores the energy loss inherent in any conversion 
process. As an alternative, one automaker suggested using miles per 
purchased unit of energy. No commenter, however, suggested an 
alternative fuel economy metric that would allow consumers to compare 
across technologies.
    The agencies are requiring the use of MPGe as the fuel economy 
metric for non-liquid fuels.\49\ Although we understand the concern of 
some commenters over using energy equivalency for different types of 
fuels, we continue to believe that one of the primary purposes of the 
label is to allow such comparisons, and to do so with metrics that do 
not allow direct comparisons would diminish the usefulness of the 
label. We believe that the purpose of the fuel economy metric on the 
label is not to address the differing effects of obtaining and using 
different fuels, or to consider the energy losses of converting from 
one to another, but rather to address the energy use of the vehicle 
itself. Thus, for example, MPGe allows consumers to compare the 
relative energy consumption of various EVs, thus providing a metric 
that differentiates between EVs on a factor that is within the 
automakers' control. We have also concluded, as a result of the market 
research that was undertaken for this rulemaking, that many

[[Page 39486]]

consumers are likely to find it most useful to have an energy metric 
that allows them to compare vehicle energy efficiency across fuel types 
and vehicle technologies; the MPGe metric accomplishes this goal as 
well. In addition, as discussed above, there is a statutory requirement 
to provide a fuel economy metric per ``equivalent amount of other 
fuel,'' which MPGe clearly provides.
---------------------------------------------------------------------------

    \49\ As with MPG, the MPGe metric is based on the energy used by 
the vehicle over the EPA fuel economy and GHG test procedures. For 
an EV, this is the energy necessary to recharge the battery to its 
full charge after the test, as measured at the electrical outlet; 
thus, it includes the energy used to propel the vehicle as well as 
charging losses. It does not include transmission losses or the 
energy used at the powerplant.
---------------------------------------------------------------------------

2. Fuel Consumption
    In the past few years, many stakeholders and academics have 
suggested that a fuel consumption metric--such as gallons per 100 
miles--could be beneficial on the fuel economy label as either a 
replacement for, or a complement to, MPG. The use of a fuel consumption 
metric could serve to address the fact that, with fuel economy, there 
is a non-linear relationship between gallons (or gasoline-equivalent 
gallons) used over a given distance and MPG (or MPGe). Accordingly, a 
certain MPG improvement at a lower MPG level saves much more fuel (and 
thus money) than the same MPG improvement at a higher MPG level. If a 
consumer trades in a car with a 14 MPG rating for one with a 17 MPG 
rating, he or she will save approximately as much gas and money for a 
given distance as does a consumer who replaces a 33 MPG car with a 50 
MPG car. The non-linearity of the MPG measure is not widely understood 
and hence many consumers misunderstand the measure. In the empirical 
literature, this is known as the ``MPG illusion.'' \50\
---------------------------------------------------------------------------

    \50\ Larrick, R.P. and J.B. Soll, ``The MPG illusion,'' Science 
320:1593-1594 (2008). To understand the ``MPG illusion,'' note that 
a 20 MPG vehicle uses 25% less fuel than a 15 MPG vehicle, while a 
40 MPG vehicles uses only 12.5% less fuel than a 35 MPG vehicle; 
that is, the same 5 MPG improvement will have different effects on 
fuel consumption (and fuel costs) depending on the starting point 
for the improvement. An extreme example is that, at a fuel economy 
of 1000 MPG, the fuel consumption is so minute (0.001 gallons per 
mile) that it no longer matters whether the fuel economy is 
increased to 1010 MPG, 2000 MPG, or even 1,000,000 MPG; the only 
fuel that can be further saved is some fraction of that 0.001 
gallons per mile.
---------------------------------------------------------------------------

    Pointing to the MPG illusion, some stakeholders suggest that the 
public would be better equipped to make economically sound purchasing 
decisions with a metric that directly reflects fuel consumption and, 
correspondingly, fuel costs. In response to these suggestions and 
concerns over the MPG illusion, the proposal introduced fuel 
consumption on the label, in the form of gallons per 100 miles for 
combined city/highway operation, as a complement to the MPG metric for 
liquid fuels.
    For non-petroleum fuels, EPA proposed to include fuel consumption 
based on the units in which each fuel is sold. For example, CNG is sold 
in gasoline-equivalent gallons; we proposed the fuel consumption metric 
of gasoline-equivalent gallons per 100 miles. Similarly, for EVs and 
PHEVs with all-electric operation, EPA proposed to show fuel 
consumption in kilowatt-hours per 100 miles. For blended PHEVs, EPA 
proposed gallons of gasoline equivalent per 100 miles, which represents 
the inverse of MPGe and combines the two fuels into one consumption 
metric; for the sake of reducing label clutter, EPA proposed to not 
show separate electricity and gasoline consumption values.
    We received many comments on the general question of whether a fuel 
consumption metric should be added to gasoline vehicle labels, and 
there was broad support for doing so. Most supporters cited the non-
linearity associated with the MPG illusion and suggested that it was 
important to begin the process of educating consumers about fuel 
consumption, while also keeping fuel economy metrics. There were a few 
opponents to including fuel consumption metrics, who generally argued 
that it was not important enough to warrant adding yet more numbers to 
the label.
    The widespread commenter support for including fuel consumption 
metrics echoed EPA's concerns about the MPG illusion. EPA agrees that a 
fuel consumption metric is a better tool for making economically sound 
decisions and recognize that it will not become widely utilized if it 
is not first introduced on the label. Therefore, EPA is requiring the 
use of fuel consumption on the label--in the form of gallons per 100 
miles for combined city/highway operation for liquid fuels--though in 
reduced prominence relative to the traditional MPG metric. As with 
MPGe, a further advantage of the energy consumption metric is that it 
allows consumers to compare the relative energy use of various EVs, 
thus providing an additional metric that differentiates between EVs.
    The issue of the specific fuel consumption metrics for most types 
of vehicles that operate on non-liquid fuels generated little or no 
comment, with the exception of PHEVs operated in blended mode. EPA 
continues to believe that the metrics for vehicles other than blended 
PHEVs are reasonable and appropriate and are therefore requiring the 
proposed approaches for EVs and all-electric operation for PHEVs 
(kilowatt-hours per 100 miles) and for CNG vehicles (gasoline 
equivalent gallons per 100 miles). EPA is similarly requiring kilograms 
per 100 miles as the consumption metric for hydrogen FCVs, since 
hydrogen is sold by the kilogram.
    Several comments were received on how to treat blended PHEVs, which 
use electricity and gasoline simultaneously. The commenters who opposed 
the use of MPGe also generally opposed the proposed approach of a 
single fuel consumption metric for blended PHEVs, pointing out that 
this would not allow a PHEV shopper to compare the relative use of 
electricity and gasoline. A few commenters suggested that labels for 
blended PHEVs should report both electricity and gasoline consumption.
    While EPA recognizes the tradeoffs associated with adding yet more 
values to an already busy PHEV label, upon further consideration, EPA 
agrees with the commenters who suggested that consumers need to be able 
to differentiate between electricity and gasoline use in a blended 
PHEV. This will allow the consumer to assess and weigh the relative use 
of each type of energy as they deem appropriate. In addition, the fuel 
consumption metric for all other fuels is being finalized on the basis 
of the units in which the fuel is purchased, and it is reasonable to 
adopt a parallel approach for blended PHEVs. Accordingly, EPA is 
requiring fuel consumption separately for both gasoline (in gallons per 
100 miles) and electricity (in kilowatt-hours per 100 miles) for a 
blended PHEV, rather than the gasoline-equivalent gallons per 100 miles 
as proposed. EPA believes that the combination of the MPGe metric (for 
those who want a simple comparative metric) and the two separate fuel 
consumption metrics (for those who want to compare relative gasoline 
and electricity use) will help to satisfy different consumer needs.

B. Rating Systems

1. Scope of the Ratings
    EISA requires that the label include a ``rating system that would 
make it easy for consumers to compare the fuel economy and greenhouse 
gas and other emissions at the point of purchase . . . '', including a 
designation of the automobiles with the lowest greenhouse gas emissions 
over the useful life of the vehicles, and the highest fuel economy . . 
. '' \51\
---------------------------------------------------------------------------

    \51\ 49 U.S.C. 32908(g)(1)(A)(iii).
---------------------------------------------------------------------------

    The co-proposed label designs presented two primary variations on 
ratings systems for fuel economy and greenhouse gas emissions, based on 
two interpretations of the statutory language. The first approach, 
shown on labels 1

[[Page 39487]]

and 3, combined fuel economy and greenhouse gas emissions into a single 
relative rating; we also sought comment on integrating emissions of 
other pollutants into this rating. The second approach, shown on labels 
1 and 2, retained separate ratings for fuel economy, greenhouse gas 
emissions, and other pollutants. We noted that the two approaches are 
not mutually exclusive, and a label could display both.
    The majority of those who commented on this topic said that these 
factors should each be displayed separately on the label. The key 
reason cited was that individual ratings would best provide clarity and 
transparency for those wishing to take these factors into 
consideration. On the other hand, some commenters felt that it is 
appropriate for the government to combine factors into a single rating 
in order to distill complex information into a more useable format. 
These commenters focused primarily on the relationship between energy 
consumption and greenhouse gas emissions, and suggested that a combined 
rating made sense. Other commenters on this topic contended that it was 
important for the ratings to show that greenhouse gases and fuel 
economy do diverge across fuel types, and so the ratings should be 
separate. Commenters also stated that there was no clear methodology 
for incorporating emissions of other air pollutants with greenhouse 
gases and did not support the proposed methodologies for doing so.
    We are requiring separate ratings for fuel economy, greenhouse 
gases, and other emissions. The fuel economy and greenhouse gas ratings 
will be displayed on the same slider bar, and vehicles that have the 
same ratings for both factors will combine the two ratings with a 
single indicator. Vehicles operating on gasoline will always combine 
the two ratings since they will, by definition, receive the same score 
for both ratings. The agencies believe that this approach is consistent 
with the language in EISA, is allowed under the EPCA provisions, and 
will best allow consumers to compare each of these elements. The 
agencies also believe that using one slider bar for the fuel economy 
and greenhouse gas rankings will simplify the design of the label (an 
important consideration) and will improve the effectiveness of the 
label. The ratings for fuel economy, greenhouse gases, and other 
emissions are subsequently described in sections III.C, III.D, and 
III.F.
2. Span of the Ratings
    Each of the ratings systems, as proposed, would include all new 
vehicles for which labeling is required in a single rating system; \52\ 
that is, the ratings would be universal across all new vehicles, rather 
than broken out by vehicle class. This approach was based on the text 
of EISA requiring a rating ``that would make it easy for consumers to 
compare the fuel economy and greenhouse gas and other emissions of 
automobiles at the point of purchase * * *'' \53\ rather than the EPCA 
provisions in the statute.\54\ NHTSA's interpretation was that this 
language was meant to require rating systems that would allow consumers 
to compare new vehicles against each other without restriction, and 
that it would not be satisfied by rating systems that spanned less than 
the entire fleet.
---------------------------------------------------------------------------

    \52\ This currently includes all passenger automobiles and light 
trucks as defined by NHTSA at 49 CFR part 523. More specifically, 
the rating system would span all automobiles up to 8,500 pounds 
gross vehicle weight, plus some vehicles (large SUVs and some 
passenger vans) between 8,500 and 10,000 pounds gross vehicle 
weight.
    \53\ 49 U.S.C. 32908(g)(1)(A)(ii).
    \54\ 49 U.S.C. 32908(b)(1)(F)
---------------------------------------------------------------------------

    Many commenters supported the proposed approach of having universal 
rating systems that apply across all vehicle classes. These commenters 
stated that most people shop in more than one class, and, therefore, a 
rating system that was solely within class was not particularly useful 
because it would not allow these consumers to compare the vehicles in 
which they had interest. Commenters stated that a within-class approach 
could be misleading by displaying ratings that appear to be comparable 
but in fact are not, since ratings based on individual classes are not 
broadly applicable across all vehicles; they are applicable only within 
the class on which they are based. As such, a within-class approach 
could assign a high rating to a vehicle that does relatively well 
within its class, but which emits at relatively high levels compared to 
vehicles in other, lower-emitting classes. For example, a large car 
that is low-emitting relative to other large cars could score a 7, 
while a midsize car with average emissions for its class would score a 
5, even though the midsize is lower-emitting than the large car. With a 
purely within-class approach, the consumer who is considering both of 
these vehicles would have no way to know that the midsize car is a 
better environmental choice.
    On the other hand, several auto manufacturers commented that many 
consumers shop solely within vehicle classes, and that therefore a 
rating that applied across all classes would not be helpful, as it 
would not indicate the best performers within a class. One auto 
manufacturer further commented that NHTSA's interpretation of the EISA 
language is overly restrictive, stating that, in its view, the most 
useful information to consumers would compare among vehicles of the 
same class, and that doing so would be consistent with the EISA 
requirement for easy comparisons.
    We are requiring, as proposed, ratings that span all vehicle 
classes for which labels are required. Although the agencies' consumer 
research indicates that many consumers narrow their vehicle choices 
early in the buying decision, our research also indicates that many and 
perhaps most do not focus narrowly on a single class. Focus group 
participants indicated that they shopped, on average, across two to 
three vehicle classes.\55\ For these consumers to be able to compare 
vehicles in different classes, the information must necessarily span 
those classes, or it will be of little use or, worse, misleading: A 
vehicle that is ``best'' in one class, in terms of the metrics 
presented on the label, may be less so when compared to other classes. 
For those consumers shopping across classes who wish to know the 
relative performance of those choices, a single all-vehicles rating 
system will enable them to make accurate comparisons across whichever 
vehicles they choose to shop. Such an approach would still be useful 
within a class, since each metric will differentiate vehicles 
regardless of their class.
---------------------------------------------------------------------------

    \55\ Environmental Protection Agency Fuel Economy Label: Pre-
Focus Groups Online Survey Report, EPA420-R-10-907, August 2010, p. 
18.
---------------------------------------------------------------------------

    Additionally, as discussed in the NPRM, NHTSA believes that the 
clearest interpretation of EISA is that fuel economy, GHG, and other 
emissions rating systems should apply to all automobiles rather than to 
specific classes. 49 U.S.C. 32908(g)(1)(A)(ii) states that the agency 
must develop label rating systems ``that would make it easy for 
consumers to compare the fuel economy and greenhouse gas and other 
emissions of automobiles at the point of purchase,'' in clear contrast 
to EPCA's requirement, codified at 49 U.S.C. 32908(b)(1)(C) that fuel 
economy range information be presented for ``comparable automobiles.'' 
32908(g)(1)(A)(ii) also requires that rating systems include 
designations of the automobiles with the ``lowest greenhouse gas 
emissions'' and ``highest fuel economy,'' which NHTSA believes

[[Page 39488]]

is most meaningfully fulfilled by designating the automobiles with the 
best GHG and fuel economy ratings in the entire fleet. Given this 
statutory language, NHTSA believes that it is reasonable and 
appropriate to conclude that if Congress had intended the 32908(g) 
rating systems to apply only within class, it would have used language 
more like 32908(b)(1)(C), and that therefore rating systems for fuel 
economy, GHGs, and other emissions as described in 32908(g) should most 
reasonably apply to the entire fleet. And even if the statute were 
taken as ambiguous, NHTSA believes that the chosen approach is the most 
reasonable way of implementing the statutory goals.
    In order to satisfy EPCA requirements,\56\ the label also indicates 
the range of fuel economy values for the relevant vehicle class. This 
approach allows those consumers who shop within one class to see the 
fuel economy of the vehicle under consideration relative to other 
vehicles within its class. The agencies also believe it addresses the 
concern of the OEM commenter who argued that within-class comparisons 
might be more useful to certain consumers--in essence, the EISA and 
EPCA requirements, when combined, are able to provide consumers with 
both in-class and fleet-wide information on the metric that many have 
identified as most important to them, as discussed below.
---------------------------------------------------------------------------

    \56\ 49 U.S.C. 32908 (b)(1)(C).
---------------------------------------------------------------------------

C. Form of the Ratings

1. Fuel Economy Rating
    EISA requires that the label include a ``rating system that would 
make it easy for consumers to compare the fuel economy and greenhouse 
gas and other emissions at the point of purchase . . .'' \57\ This 
section addresses the rating for fuel economy, while sections III.D. 
and III.F. describe the ratings for greenhouse gases and for other 
emissions, respectively.
---------------------------------------------------------------------------

    \57\ 49 U.S.C. 32908(g)(1)(A)(iii).
---------------------------------------------------------------------------

    In addition to this new EISA requirement, EPCA specifies that fuel 
economy labels must include the range of fuel economy of comparable 
vehicles.\58\ This requirement is currently met with a slider bar 
indicating the combined city/highway fuel economy of the vehicle model 
type, anchored at each end with the highest and lowest fuel economy 
values for all new vehicles within that fuel economy vehicle class.
---------------------------------------------------------------------------

    \58\ 49 U.S.C. 32908(b)(1)(C).
---------------------------------------------------------------------------

    The agencies proposed an absolute slider bar-type fuel economy 
rating system bounded by specific MPG values for the ``best'' and the 
``worst'' vehicles in the fleet, and with specific fuel economy values 
for the vehicle model type in question identified in the appropriate 
location on the scale. The scales proposed on label 2 were essentially 
larger versions of those on label 1, with the addition of a within-
class indicator on the fuel economy scale to meet the EPCA requirement 
for comparison across comparable vehicles. This latter requirement was 
addressed on label 1 through text indicating the fuel economy for all 
new vehicles in the model's fuel economy class.
    The agencies received relatively few comments on this topic. One 
auto manufacturer supported the graphical representation of the within-
class information as proposed on label 2. A government laboratory 
commented that the comparison should be on the basis of fuel 
consumption rather than fuel economy, to provide a linear comparison of 
the vehicle's energy use and to avoid a visual representation of the 
fuel economy illusion.
    The agencies are requiring a one-to-ten relative fuel economy 
slider bar similar to the one on alternative label 3 included in the 
NPRM, which is combined with a one-to-ten relative greenhouse gas 
slider bar as discussed below. While the rating is expressed in terms 
of fuel economy, the methodology for determining vehicle ratings will 
be defined based on fuel consumption in order to mitigate the ``MPG 
illusion'' and to provide a more linear representation of vehicle 
energy use between ratings. The EISA requirement for indicating the 
highest fuel economy vehicle and the EPCA requirement for providing the 
fuel economy of vehicles in a comparable class will be met with text 
located near the vehicle's fuel economy numbers. The methodology for 
determining the combined fuel economy and greenhouse gas ratings is 
provided in section III.D.
2. Greenhouse Gas Rating
    The agencies proposed several systems to address the EISA 
requirement for a rating that allows consumers to compare greenhouse 
gas emissions across new vehicles. Specifically, both labels 1 and 2 
included an absolute rating scale that presented the specific tailpipe 
GHG emission values for the vehicle in grams per mile, bounded by 
emission rates for the ``best'' and ``worst'' vehicles in the fleet in 
the model year. In addition, label 1 featured a prominent letter grade 
that reflected the relative levels of tailpipe greenhouse gas emissions 
(and, for gasoline vehicles, fuel economy, given the inverse 
relationship of tailpipe GHG emissions and fuel consumption for 
gasoline vehicles) on an A+ to D scale. The agencies also sought 
comment on label 3, which, like label 1, included a rating that 
reflected relative tailpipe GHG emission rates; this approach 
substituted the letter grade with a numerical rating on a scale of one 
to ten. NHTSA sought comment on whether this would be an appropriate 
interpretation of EISA's requirements. The agencies proposed that GHG 
ratings would be based on combined 5-cycle tailpipe CO2 
emission rates.
    About two-thirds of the more than 6,000 public comments expressed a 
preference either for or against the letter grade, and nearly every one 
of the more detailed comments submitted by corporations and 
organizations addressed the topic, indicating the strong level of 
interest in this proposed element. As a general rule, the letter grade 
was supported by consumer organizations, environmental organizations, 
and academics; about half of the general public that commented on the 
letter grade supported it. Conversely, it was opposed by most auto 
companies, auto dealers and their organizations, Federal laboratories, 
and about half of the general public that commented on this topic.
    Commenters in favor of the letter grade spoke to its ease of use 
and eye-catching appeal; many said that it would be useful for those 
who do not find more detailed numerical information helpful or 
compelling and would, for the first time, take their needs into 
consideration on the label. The letter grade was likened to the New Car 
Assessment Program (NCAP) safety stars in its potential ability to 
spark public demand for new vehicle attributes--in this case, relative 
environmental and energy impact. For these commenters, the influential 
nature of the letter grade was viewed as a positive attribute.
    On the other hand, those opposed to the letter grade commented that 
it implied an inappropriate value judgment of the vehicle, either in 
whole or in part. Many commenters indicated that letter grades, in 
particular, convey an assessment that is value-laden and not in 
accordance with the intent of the label. These commenters suggested 
that a prominent letter grade could be misleading insofar as it might 
imply an assessment of a vehicle's overall quality on a number of 
attributes beyond fuel economy and tailpipe greenhouse gas emissions. 
Finally, some commenters felt that its prominence was problematic, 
either by minimizing other important label elements, such as MPG,

[[Page 39489]]

or by overshadowing other Monroney \59\ label elements, such as the 
NCAP safety stars.
---------------------------------------------------------------------------

    \59\ The Monroney label, placed on the window of every new 
vehicle sold in the U.S., was mandated by the Automobile Information 
Disclosure Act of 1958, and since amended. It typically includes 
manufacturer's suggested retail price, vehicle specifications, 
equipments lists and pricing, warranty information, NHTSA crash test 
ratings, and the EPA fuel economy label requirements (as allowed 
under EPCA at 49 U.S.C. 32908(b)). Manufacturers may provide the 
fuel economy information on a separate label but have historically 
chosen to incorporate it into the Monroney sticker.
---------------------------------------------------------------------------

    A few commenters stated that the absolute tailpipe greenhouse gas 
rating in grams per mile was the most straightforward approach and felt 
that it would be helpful for those wishing to compare emissions across 
vehicles and clearly meet the EISA requirement. Others found the 
absolute scale unhelpful, stating that today's public has little 
awareness of tailpipe greenhouse gas emissions expressed in grams per 
mile. In particular, these commenters said that an absolute scale for 
GHGs would be confusing, given that the label also contained a one to 
ten rating for other emissions, and suggested that a consistent one to 
ten system for both ratings would be more understandable. Several 
commenters noted that one to ten ratings are readily understood and are 
in use today for vehicle emission ratings on both the EPA Green Vehicle 
Guide Web site and on the California Environmental Performance Label, 
and that it would be logical to extend that approach to this label.
    The agencies are requiring a relative greenhouse gas rating on a 
one to ten scale, based on combined 5-cycle tailpipe CO2 
emission rates, as measured by EPA; this rating will be combined with 
the relative fuel economy rating scale discussed above. The relative 
GHG rating is intended to address the large number of comments received 
in support of a relative rating that allows a quick and easy assessment 
of a vehicle's relative environmental impact. While a letter grade 
rating can be readily understood, the agencies agree with some 
commenters' concerns that it may imply more meaning about overall 
vehicle attributes--such as an assessment of overall quality on a 
number of factors--than was intended. We recognize that the letter 
grade is a fairly significant departure from the current fuel economy 
label, which provides absolute numerical values and no relative 
ratings. The agencies believe that the one to ten rating fills a middle 
ground between the absolute numerical values of the current label and a 
letter grade rating, providing a similar ease of use without the risk 
of conveying any perceived value judgment that may be associated with a 
letter grade.
    We also agree that having consistent systems for the two 
environmental ratings on the label may help to minimize confusion and 
increase comprehension. Finally, the use here of a one to ten system is 
a logical extension of its use on the EPA Green Vehicle Guide Web site 
and the California Environmental Performance Label, where it serves a 
similar purpose. The absolute tailpipe greenhouse gas emissions in 
grams per mile of the best performing vehicle will be noted in text 
near the slider bar. This approach meets the EISA requirements for 
displaying GHG performance information \60\ and for indicating the 
lowest greenhouse gas vehicle.
---------------------------------------------------------------------------

    \60\ 49 U.S.C. 32908(g)(1)(A)(i).
---------------------------------------------------------------------------

    Finally, to address concerns raised by some commenters that fuel 
economy ratings overshadow safety ratings component of the Monroney 
label, NHTSA is planning to conduct comprehensive consumer research to 
develop revised safety ratings based on revisions to the fuel economy 
component of the label under this rule. NHTSA will publish details of 
the consumer testing in a future Federal Register notice.

D. Fuel Economy and Greenhouse Gas Rating Methodology

    The agencies proposed a variety of ways to provide information that 
would rank or rate a vehicle model compared to the rest of the fleet, 
based on its performance on greenhouse gases and fuel economy, 
including both absolute and relative scales. In the proposal, one 
method for a relative fuel economy and greenhouse gas rating was laid 
out, based on even increments of greenhouse gas emissions. One proposed 
rating system used a letter grade to represent relative performance. 
Since fuel economy and greenhouse gases are closely related, this 
rating was used to represent both of these factors. The CO2 
emission rates and the gasoline-equivalent MPG values were both 
provided in the preamble's table of ratings thresholds, with the 
CO2 ratings proposed to be controlling. There was no 
differentiation across fuels.\61\
---------------------------------------------------------------------------

    \61\ For example, for both gasoline and diesel vehicles the 
CO2 emissions rates would determine the rating, not the 
mpg rate. A gasoline and diesel vehicle with the same mpg 
performance would have different CO2 emissions 
performance, given the difference in the energy content of the two 
fuels. The proposed rating thresholds would be determined based on 
the CO2 emissions performance irrespective of the fuel at 
issue.
---------------------------------------------------------------------------

    For this rating scale, the agencies proposed a system that assigned 
a letter grade rating for each vehicle relative to the tailpipe GHG 
emissions of all new vehicle models. Specifically, each of the ratings 
corresponded to a distinct range of combined 5-cycle tailpipe 
CO2 emission rates. The middle of the rating system was 
defined as the tailpipe CO2 emission rate for the median new 
vehicle and the range of each rating was defined using equal-sized 
increments of CO2. Because vehicle GHG values clustered 
around the middle, the proposed rating system resulted in the majority 
of vehicles receiving ``average'' ratings, with the number of vehicles 
receiving higher or lower ratings falling off quickly. Very few 
vehicles received the highest or lowest ratings.
    The majority of comments on this rating system focused on the form 
of the rating, generally, the use of a letter grade and its merits and 
drawbacks. However, some manufacturers and consumer organizations did 
provide feedback specific to the methodology used to define the 
ratings. These commenters all examined the distribution of vehicle 
ratings that resulted from the proposed methodology and requested that 
the agencies consider strategies to somewhat ``flatten'' the 
distribution. This would, in effect, provide more differentiation 
between vehicles and prevent the ratings from not being--or appearing 
to not be--technology-neutral. On the other hand, one automaker 
requested that the agencies consider reserving the highest rating 
exclusively for specific, pre-defined vehicle technologies.
    Commenters also provided feedback on the impact of basing the fuel 
economy rating on greenhouse gases. Several noted that they are closely 
related and that having a single rating represent both is appropriate. 
Others indicated that the relationship between these two factors varies 
across fuels and that it is important for the label to reflect this 
fact.
    As discussed previously, the label we are adopting will provide 
relative one to ten ratings for fuel economy and for greenhouse gases. 
Since fuel economy and tailpipe greenhouse gas emissions are closely 
related, the agencies have decided to simplify the label by using one 
slider bar for the two ratings and to combine the two ratings for 
vehicles that receive the same fuel economy and greenhouse gas scores. 
We will define the range of CO2 emissions and MPG 
performance assigned to each number in the rating systems (1-10) on the 
basis of corresponding gasoline CO2 emissions performance 
and gasoline mpg performance. The 1-10 ratings assigned to a model will 
be based on the tailpipe CO2 emissions and MPG (or MPGe)

[[Page 39490]]

performance of that model, irrespective of the fuel. Gasoline vehicles 
will by definition have the same rating for both fuel economy and 
greenhouse gases. For those vehicles for which the greenhouse gas 
ratings diverge from the fuel economy ratings, such as some diesel and 
compressed natural gas vehicles, the slider bar will have a second 
indicator to reflect this fact. Thus, the fuel economy and greenhouse 
gas rating will demonstrate both that these factors are closely related 
and that this relationship is not the same across all fuels.\62\
---------------------------------------------------------------------------

    \62\ This could occur, for example, if a diesel vehicle receives 
a certain number rating based on mpg performance, which is measured 
in terms of gallons of diesel fuel, but achieves a different number 
rating based on CO2 emissions performance, which is based 
on both the volume of fuel consumed as well as the carbon content of 
the fuel. This difference in rating can be expected to occur in a 
limited number of situations with another example being the mpg 
performance of a compressed natural gas fueled vehicle and its 
corresponding lower CO2 emissions.
---------------------------------------------------------------------------

    We agree with some commenters that the ratings would be more 
meaningful and useful for both relative scales if it allowed greater 
differentiation between vehicles, and that therefore it would be 
beneficial to alter the rating methodology such that the resulting 
distribution of vehicle ratings is flatter than proposed, while still 
reflecting the distribution of the fleet. We also agree with the 
majority of commenters on this topic that the ratings should avoid the 
appearance of not being technology-neutral. The challenge to the 
agencies was to implement this change with a methodology that is simple 
to implement, robust enough to work for future vehicle fleets, and 
results in an appropriately flatter distribution of vehicle ratings 
over the fleet. Finally, the agencies also agreed with some commenters 
that the fuel economy rating would be most beneficial to consumers if 
it were in fact based on fuel consumption instead of fuel economy. 
Basing the rating on fuel consumption allows it to be directly 
proportional to the actual amount of energy used by the vehicle (and 
hence to refueling costs) and avoids the ``MPG illusion'' discussed 
previously. The range of performance that defines each number in the 
rating system is determined based on approximately equal increments of 
fuel consumption, with one adjustment. The use of a system based on 
equal increments means that the distribution of the fleet will be 
reflected in the distribution of the ratings.
    We believe that, since fuel economy and fuel consumption are simply 
different mathematical representations of the same characteristic, that 
a fuel consumption-based rating system is consistent with the EISA 
requirement for a fuel economy rating system. To ensure that the fuel 
economy ratings correspond to the MPG or MPGe values displayed on the 
label, the thresholds for purposes of assigning this rating will be in 
terms of fuel economy (MPG or MPGe).
    The fuel economy rating scale will be created by converting the 
fuel consumption thresholds into their corresponding fuel economy 
values and assigning a numeric one to ten rating based on 5-cycle 
combined fuel economy, rounded to the nearest integer (as reflected on 
the label). The combined fuel economy value prominently displayed on 
the label will be used by vehicle manufacturers to determine the fuel 
economy rating, thus making the connection between the two unambiguous 
and avoiding situations where two vehicles with the same fuel economy 
value would receive different fuel economy ratings--an outcome the 
agencies believe would be confusing to the public.\63\ All liquid fuel 
vehicles will be evaluated in terms of volumetric gallons of fuel per 
mile, and all vehicles operating on non-liquid fuels will be evaluated 
in terms of gallons of gasoline equivalent per mile. The GHG rating 
scale, in turn, will assign a one to ten numeric rating based on the 
vehicle's 5-cycle combined tailpipe CO2 emissions. For 
gasoline vehicles, the fuel economy rating and the greenhouse gas 
rating will be the same, and will be displayed as one rating on the 
fuel economy and greenhouse gas slider bar. For other fuel types, the 
ratings may diverge, reflecting the differing carbon content of various 
fuels. EPA will provide the thresholds that will define the range of 
values assigned to each of the one to ten ratings applicable to the 
upcoming model year in annual guidance based on the methodology 
described below. Ratings will be based on fuel economy data submitted 
by manufacturers to the EPA, using data from the most recent complete 
model year. The break point of the ratings (that is, the fuel economy 
value in integer terms that divides the ``5'' and 6'' categories on the 
ratings scale) will then be adjusted to reflect the projected achieved 
fleet wide CAFE level for the model year for which the ratings will 
apply.
---------------------------------------------------------------------------

    \63\ For PHEVs, the ratings will be based on the combination of 
MPGs across driving modes using the utility factor approach 
described in section III.N.
---------------------------------------------------------------------------

    In the proposal, the agencies divided the range of all vehicle 
CO2 emissions (and, accordingly, gasoline equivalent fuel 
consumption), from the highest to lowest, into even increments to 
define the range of each individual letter grade or numeric rating. For 
the final label methodology, using fuel economy and tailpipe 
CO2 emission data for all model year 2011 new light duty 
vehicles, the agencies considered several alternative methodologies for 
defining both rating scales. For all approaches, we first defined the 
center of the rating systems as either the mean or median of the fleet 
data. The analysis focused on two subsequent issues: First, how to 
define the upper and lower boundaries of the rating system and, second, 
how to define the range of each individual ratings within the upper and 
lower boundaries.
    For example, we considered a system where the range of each rating 
effectively ``grows'' by 25% with each step away from the mean. This 
approach does somewhat flatten the distribution of ratings over the 
fleet. However, the agencies decided not to pursue this or similar 
options because choices such as the rate of bin growth appeared too 
subjective and would likely have to be reevaluated every year. We also 
considered a decile system, in which an equal number of vehicles are 
distributed into each rating, thus completely flattening the 
distribution. However, because vehicles tend to be clustered on the 
basis of fuel economy values, it is not possible to equally distribute 
them across the ratings. This approach also goes further than 
commenters suggested in flattening the curve.
    The fuel consumption rate, and correspondingly, the CO2 
emissions rate of all new vehicle models, follows a roughly normal 
distribution. For a set of data with a normal distribution, 
approximately 95% of all data will fall within plus or minus two 
standard deviations of the mean. This allows for a mathematically 
robust methodology that can be applied each model year. The 1-10 rating 
system will be defined for each model year, using the most recent model 
year for which we have a complete data set, using an approach in which 
any vehicle model with a 5-cycle combined fuel consumption rate more 
than two standard deviations away from the mean vehicle model would 
receive either the lowest (1) or highest (10) rating. We acknowledge 
that fuel consumption for new vehicles does not perfectly follow a 
normal distribution; however, historically, approximately 97% of the 
fleet has been captured within this two standard deviation range. 
Assuming this trend continues, approximately 1-2% of new vehicle models 
will receive the top rating, and

[[Page 39491]]

approximately1-2% of new vehicle models will receive the lowest rating.
    Thus, for a given year, the highest rating, a 10, will be defined 
by subtracting two standard deviations from the mean of the data from 
the most recent model year available, such that any vehicle that 
achieves a fuel consumption rate less than or equal to two standard 
deviations below the mean will receive a rating of 10. Conversely, any 
vehicle that is more than or equal to two standard deviations above the 
mean will receive the lowest rating, which is a 1. The ratings of 2 
through 9, in turn, are defined based on even increments of 5-cycle 
combined fuel consumption rates between the highest and lowest ratings, 
with the following adjustment.
    The break point of the rating system, which denotes the difference 
between a CO2 emission and fuel economy rating of 5 and of 6 
(that is, between the top half (6-10) and bottom half (1-5) of the 
rating scale), will be pegged to the CO2 emissions and MPG 
values that correspond to the projected achieved CAFE values estimated 
by the agencies in advance for the fleet as a whole for the applicable 
model year of the label. That is, after the analysis to determine two 
standard deviations is complete and the thresholds for each of the 
ratings are established, the break point between a rating of 5 and a 
rating of 6 will be adjusted to reflect the projected average fleet 
label value that would correspond with the projected fleet wide CAFE 
value that the agencies estimate would be achieved for the model year 
to which the label applies.\64\ This midpoint correction is important 
from a policy perspective, as the agencies believe it is appropriate to 
assign an above-average rating (6 or higher) only to those vehicles 
whose label value for fuel economy is at or above the projected fleet 
average for that model year. For model years 2012-2016, the projected 
achieved fuel economy values from the recent joint light-duty vehicle 
fuel economy and greenhouse gas rulemaking will be used as the basis 
for the midpoint defining the threshold between a 5 and a 6. Setting 
this break point in advance has the added advantage of allowing 
manufacturers to know their target to achieve an above average rating.
---------------------------------------------------------------------------

    \64\ For this purpose, the agencies used the projected fleet-
wide achieved CAFE levels for the MY2012-2016 CAFE standards (Table 
I.B.2-2, 75 Federal Register 25331, May 7, 2010).
---------------------------------------------------------------------------

    Because the 2012-2016 estimated achieved CAFE levels intended to be 
used to anchor the break point of the rating scale are based on the 2-
cycle test, while label values are based in the 5-cycle test, EPA 
evaluated vehicle test data across all new light duty vehicles to 
determine an adjustment factor between the projected achieved fleet 
wide CAFE fuel economy values and the label values. This adjustment 
factor is derived in the same manner as an individual model's mpg value 
for CAFE compliance is adjusted for use on the label. Using this 
adjustment, EPA determined that the fuel economy midpoint values from 
2012-2016 will be as shown in Table D.1.

         Table D.1--Label Breakpoint Values for MY2012-2016 \65\
------------------------------------------------------------------------
 
------------------------------------------------------------------------
2012....................................................              22
2013....................................................              23
2014....................................................              23
2015....................................................              24
2016....................................................              25
------------------------------------------------------------------------

    Using this approach, the fuel economy ratings for model year 2012, 
based on 2011 fuel consumption data and with a break point adjustment 
reflecting the average fuel economy projected to be achieved for model 
year 2012, would be assigned on the basis of the fuel economy integer 
values as shown in Table D-2.
---------------------------------------------------------------------------

    \65\ French, R. Memorandum to Docket No. EPA-HQ-OAR-2009-0865, 
``Adjusting Combined City/Highway CAFE Fleet Values to Determine 
Equivalent 5-Cycle Label Values.'' May 18, 2011.

             Table D.2--MY2012 Rating Scale for Fuel Economy
------------------------------------------------------------------------
                                                           Fuel economy
                                                          (Combined city/
                   Fuel economy rating                      highway 5-
                                                           cycle MPG or
                                                            MPGe value)
------------------------------------------------------------------------
10......................................................             38+
9.......................................................           31-37
8.......................................................           27-30
7.......................................................           23-26
6.......................................................              22
5.......................................................           19-21
4.......................................................           17-18
3.......................................................           15-16
2.......................................................           13-14
1.......................................................            0-12
------------------------------------------------------------------------

    The agencies then had to consider how to structure the rating scale 
for GHG emissions, since it is combined for the final labels with the 
rating scale for fuel economy. Given the close relationship between 
fuel economy and greenhouse gases, the rating scales will be defined to 
give the same rating on each of these factors for gasoline vehicles, 
since gasoline-fueled vehicles constitute the great majority of the 
vehicles sold. Thus, the GHG rating scale will be determined by 
converting the fuel economy rating thresholds into gasoline equivalent 
GHG rating thresholds using a constant conversion factor of 8887 grams 
of tailpipe carbon dioxide emissions per gallon of consumed 
gasoline.\66\ Accordingly, by definition, for vehicles that operate on 
gasoline only, the fuel economy score will equal the greenhouse gas 
score, and that combined score will be displayed on the label using one 
slider bar and one indicator for the combined score.\67\ Because 
vehicles that operate on fuels other than gasoline will not necessarily 
have the same fuel economy and GHG scores, those vehicles will have 
their GHG rating determined by comparing their 5-cycle combined 
tailpipe CO2 emission rate against the GHG ranges applicable 
for the model year to determine if their GHG score is different from 
their fuel economy score. If it is different, the GHG score must be 
indicated on the same slider bar as the fuel economy score; however, 
the GHG score will use a pointer below the slider bar and the fuel 
economy score will use a pointer above the slider bar. Using this 
approach, the GHG ratings for model year 2012, based on 2011 data with 
a break point adjustment reflecting model year 2012, would be assigned 
as shown in Table D-3.
---------------------------------------------------------------------------

    \66\ This reflects the direct relationship between CO, emissions 
and fuel consumption for gasoline, and the fact that the mpg values 
in the Table are derived from fuel consumption values which in turn 
are derived from CO, emissions values. Note that the GHG thresholds 
correspond to the MPG value that will round to the integer values 
shown in the table. For example, the GHG threshold corresponding to 
the fuel economy thresholds between a 1 and 2 is calculated as 8887 
g CO2/gallon divided by 12.5 miles/gallon, or 711 g/mile.
    \67\ For gasoline vehicles whose values are close to the 
threshold, the tables may occasionally reflect different scores on 
each of these factors. For purposes of the fuel economy and 
greenhouse gas rating for gasoline vehicles, the fuel economy 
thresholds will be controlling and only one rating will be 
displayed. Under this approach, vehicles with the same combined MPG 
value, which is prominently displayed on the label, will always have 
the same rating as other vehicle with the same value. Different 
ratings formed on the basis of rounding would not be helpful to 
consumer comprehension.

           Table D.3--MY2012 Rating Scale for Greenhouse Gases
------------------------------------------------------------------------
                                                           Tailpipe GHG
                                                              rating
                                                          (combined city/
                  Greenhouse gas rating                     highway  5-
                                                           cycle CO2  g/
                                                               mile)
------------------------------------------------------------------------
10......................................................           0-236
9.......................................................         237-290
8.......................................................         291-334
7.......................................................         335-394
6.......................................................         395-412
5.......................................................         413-479

[[Page 39492]]

 
4.......................................................         480-538
3.......................................................         539-612
2.......................................................         613-710
1.......................................................            711+
------------------------------------------------------------------------

    The methodology for determining the fuel economy and GHG rating 
scales defined above is based on a simple statistical approach that 
should be applicable to a changing fleet of vehicles over time. The 
agencies believe that this is a straightforward and robust methodology 
for rating vehicle fuel economy and tailpipe GHG emissions that will 
result in a flatter distribution of vehicle ratings across the entire 
fleet. We intend to update the scoring thresholds in the future to 
reflect the prevailing CAFE and GHG standards and the evolution of the 
vehicle fleet. Any updates to the rating scale will be included in the 
annual label manufacturer guidance document or in the regulations via 
rulemaking.

E. Upstream GHGs

    In the proposal, the agencies recognized that upstream GHG 
emissions are associated with the production and distribution of all 
automotive fuels used by motor vehicles, that certain emerging 
automotive fuels might have very different upstream and tailpipe GHG 
characteristics depending on how those fuels are produced, that 
providing accurate upstream GHG emissions values for individual 
consumers can be a complex challenge, and that whether, and if so how, 
to account for these upstream GHG emissions was an important decision.
    We proposed to limit the label to tailpipe-only GHG emissions, 
while providing more detailed information on upstream GHG emissions on 
a Web site. For details on the Web site content and accessibility, 
please refer to Section III.I. In addition, the agencies requested 
comment on alternative options for the label that, in addition to 
presenting tailpipe emissions, refer to or identify in some manner the 
upstream GHG emissions associated with fuel production and 
distribution. One such alternative would continue to base the label's 
GHG emissions value on tailpipe emissions values only but would 
supplement the numerical value with a symbol or asterisk and 
explanatory text such as ``the only CO2 emissions are from 
electricity generation'' (for EVs), ``does not include CO2 
from electricity generation'' (for PHEVs), or ``the CO2 
emissions listed here are from gasoline combustion only and do not 
reflect the use of renewable biofuels'' (for ethanol flexible fuel 
vehicles).
    A second alternative for the label would be to, provide a tailpipe-
only GHG emissions value and also to provide a numerical value for 
upstream GHG emissions associated with production and distribution of 
the fuel(s) used by the vehicle. While recognizing the arguments for 
this approach, the agencies identified many challenges associated with 
developing a single numerical value for upstream GHG emissions. For 
electricity, for example, challenges include significant regional 
variability in electricity feedstocks and GHG emissions, potential 
changes in feedstocks and GHG emissions over time, and potential 
differences in GHG emissions between daytime and nighttime charging 
depending on the energy source used. The agencies asked for comments on 
how they could best address these complexities on a consumer label.
    The agencies received a large number of comments on this topic, 
almost all of which focused primarily on the upstream GHG emissions 
issues associated with the electricity used in EVs and PHEVs.
    Automotive associations, electric vehicle associations, electric 
utility companies, and nearly all automakers who commented on this 
topic supported the proposal to include only tailpipe GHG emissions on 
the label and provide more detailed information on upstream GHG 
emissions on a Web site. Automakers typically stated that labels have 
always reflected vehicle performance only and have not addressed 
upstream petroleum emissions, that they have no control over upstream 
emissions, and that including electricity upstream GHG emissions on the 
label could discourage future sales of EVs and PHEVs. EV and PHEV 
advocacy organizations generally supported the proposal as well, also 
citing that past label designs focused exclusively on vehicle 
performance and arguing that regional differences in electricity 
feedstocks make it impossible to provide a single upstream GHG 
emissions value for EVs and PHEVs that would be meaningful to 
consumers. One environmental group supported the proposal, but argued 
for a more prominent display of the text indicating that the values are 
tailpipe-only.
    Nearly all environmental groups, academics, a Federal lab, and non-
electricity fuel advocacy groups who commented on this topic opposed 
the proposal and endorsed the concept of including upstream GHG 
emissions on the label. The primary argument was that providing 
tailpipe-only GHG emissions would be confusing and/or misleading, as 
some consumers might infer that operating a vehicle on grid electricity 
has no greenhouse gas emissions impacts, and that this could lead to 
adverse consumer purchase decisions if ``zero emissions'' was an 
overriding selling point for a consumer.
    A second argument from many of these commenters, as well as from 
one automaker, was that the primary purpose of the label should be to 
provide relevant consumer information, and that a label is not an 
appropriate way to promote an individual technology, which they argued 
this approach would do for electric vehicles if upstream emissions were 
not included on the label. California Air Resources Board (ARB) stated 
that upstream emissions would need to be reflected on the label in 
order to adopt the national label in California. ARB later indicated 
that, in the interest of a unified national label, this requirement 
could be met through a label statement about additional emissions and 
reference to a Web site where upstream values could be obtained.
    However, only a few commenters endorsed a specific methodology for 
determining upstream GHG emissions values. One joint environmental 
group comment supported a universal upstream GHG emissions factor for 
all vehicle operation off of the electric grid, similar to the approach 
currently used by the ARB. Another environmental group suggested that 
the label CO2 value for both EVs and PHEVs be an asterisk 
instead of a numerical value, and the asterisk would be coupled with 
label text directing the consumer to the Web site for customized, 
regional-based upstream GHG emissions values.
    The agencies are requiring a label which, as was proposed, will be 
limited to tailpipe-only GHG emissions but will have more prominent 
text to better emphasize the tailpipe-only metric. EVs will include the 
clarifying statement, ``Does not include emissions from producing 
electricity.'' Vehicles fueled without grid electricity will include 
the statement, ``Producing and distributing fuel also create emissions; 
learn more at fueleconomy.gov.'' For PHEVs, the text ``& electricity'' 
will be added after the word ``fuel.'' Detailed information (including 
regional-specific values, when appropriate) regarding upstream 
emissions for fuels will be provided on a Web site. For details on the 
Web site

[[Page 39493]]

content and accessibility, please refer to Section III.I.
    The agencies considered the merits of arguments both for and 
against inclusion of upstream emissions information on the label itself 
but ultimately concluded that retaining a tailpipe-only approach is 
more appropriate for this consumer-oriented label. While the agencies 
acknowledge, as discussed above, that substantial GHG emissions can be 
created during the upstream production and distribution of various 
automotive fuels, our reasoning for adopting a tailpipe-only approach 
starts with the fact that the label's fundamental purpose is to present 
information about the vehicle itself, rather than on a broader system. 
Emissions from the tailpipe fall under the automaker's control; they 
are a result of the product that the manufacturer produces.
    The agencies agree that information on a vehicle's upstream 
emissions may be useful for consumers, even if it is not central to the 
purpose of the label. We also concluded that including upstream GHG 
emissions on a Web site instead of the label is a more appropriate way 
to communicate information regarding upstream emissions to consumers. 
Because of the substantial variation in emissions associated with 
electricity production from region to region, a label that presented a 
single national average of upstream emissions could be more likely to 
confuse consumers rather than help them, particularly if consumers are 
aware that their regional electricity generation mix is different from 
the national average, and could thereby detract from the label's 
purpose. Due to different electricity generation fuels and 
technologies, this level of variation is significant: from one region 
to another, the highest-to-lowest upstream average GHG emission ratios 
are roughly 3-to-1.\68\ If examined from a utility-by-utility 
perspective, the ratio is even greater, at 75-to-1.\69\ For a national 
label to present a single national average would be misleading and 
inaccurate given such a wide range. The agencies are aware of arguments 
that variation is also present in the gasoline prices used to calculate 
fuels costs and/or savings on the label, but the typical range in 
regional gasoline prices is much narrower (approximately 1.25-to-1) 
\70\ than the range in upstream GHG emissions, and therefore adopting a 
single average value for national gasoline prices seems more 
appropriate.
---------------------------------------------------------------------------

    \68\ Pechan & Associates, Inc., ``The Emissions & Generation 
Resource Integrated Database for 2010 (eGRID2010 version 1.0) year 
2007 Summary Tables,'' prepared for the U.S. Environmental 
Protection Agency, Washington, DC, March 2011.
    \69\ M. J. Bradley & Associates. (2010). Benchmarking Air 
Emissions of the 100 Largest Electric Power Producers in the United 
States.
    \70\ . See EIA's Retail Gasoline Prices http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html 
where, as of May 16, 2011, the highest city gasoline price, of the 
10 cities represented, was $4.40 in Chicago, Illinois, and the 
lowest was $3.70 in Denver, Colorado. This represents a high-to-low 
range of 19%.
---------------------------------------------------------------------------

    Even if the agencies were to conclude that including upstream GHG 
emissions on the label were appropriate, given our concerns that a 
national-average upstream value might not be helpful, we do not believe 
that it would be practical for the label to present regional-specific 
upstream data for every vehicle sold. Under that scenario, automakers 
would not only need to reflect regional differences in power generation 
fuel mixes but would also need to consider how state regulations could 
affect emissions from electricity generation in the future; that is, a 
label that adequately reflects expected GHG emissions over the 
vehicle's useful life would need to project future changes in electric 
utility emission rates on a regional-specific basis, which would be 
challenging to accomplish in a meaningful way. Further, producing 
individualized labels would be difficult and would introduce additional 
complexity and costs for manufacturers, which the agencies did not 
account for in our proposal.
    However, the agencies believe that it is important and beneficial 
to provide information on upstream GHG emissions to consumers for 
certain advanced technology vehicles and are in the process of 
developing a Web site in order to make such information available. We 
believe that providing such data on a Web site has advantages over 
presenting upstream information on the label. A Web site allows 
consumers to access regionally specific data on electricity upstream 
emissions and allows the agencies to present further information on 
methodologies as needed. The information can also be updated more 
quickly as new data becomes available. Further, presenting the 
information online, rather than on the label, allows the label to 
present more comprehensive information in a clearer, simpler manner, 
which we believe will benefit consumers.
    The agencies recognize that biofuels, such as the E85 that FFVs 
use, will play an important role in reducing the nation's dependence on 
foreign oil, thereby increasing domestic energy security. While the 
majority of comments on upstream emissions pertained to emissions from 
electricity production, the agencies also recognize that biofuels have 
unique GHG emission characteristics. When considered on a lifecycle 
basis (including both tailpipe and upstream emissions), the net GHG 
emission impact of individual biofuels can vary significantly from both 
petroleum-based fuels and from one biofuel to another. EPA's Renewable 
Fuel Standard program, as modified by EISA, examined these differences 
in lifecycle emissions in detail.\71\ For example, EPA found that with 
respect to aggregate lifecycle emissions including non-tailpipe GHG 
emissions (such as feedstock growth, transportation, fuel production, 
and land use), lifecycle GHG emissions in 2022 for ethanol from corn, 
using certain advanced production technologies, are about 20 percent 
less than gasoline from oil.
---------------------------------------------------------------------------

    \71\ http://www.epa.gov/otaq/renewablefuels/420f10006.htm
---------------------------------------------------------------------------

    The agencies recognize that in the case of biofuels, ``upstream 
emissions'' include not only GHG emissions, but also any biological 
sequestration that takes place. For purposes of this discussion, the 
term ``upstream emissions,'' when considered in the case of biofuels, 
should be construed to encompass both GHG emissions and sequestration.
    The agencies note that to the extent future policy decisions 
involve upstream emissions, the agencies will need to consider not only 
upstream emissions from electricity production, but also the unique 
emission characteristics associated with biofuels.
    Finally, the agencies agree with one commenter's suggestion to 
indicate more clearly that the GHG emission values presented on the 
label represent tailpipe-only emissions. In response, the agencies are 
adopting a label with more prominent ``tailpipe only'' text as well as 
a statement that information on upstream emissions can be found at the 
Web site.
    We have made this decision on the treatment of upstream emissions 
for the fuel economy label for the reasons explained in this preamble. 
This conclusion does not necessarily reflect any decisions that will be 
made regarding upstream emissions in future greenhouse gas and fuel 
economy rulemakings. In addition, the agencies will continue to 
consider this issue over time.
    In summary, the agencies are requiring a label with a tailpipe-only 
GHG emissions rating as well as more clear and prominent text that the 
rating includes only tailpipe GHG emissions

[[Page 39494]]

and that the consumer can go to the Web site for information on 
upstream GHG emissions.

F. Smog Rating

    In addition to fuel economy and greenhouse gas information, EISA 
also requires that new vehicles be labeled with information reflecting 
a vehicle's performance in terms of ``other emissions,'' using a rating 
system that would make it easy for consumers to compare the other 
emissions of automobiles at the point of purchase.\72\ The agencies 
proposed that ``other emissions'' include those tailpipe emissions, 
other than CO2, for which vehicles are required to meet 
current emission standards. These emissions include criteria emissions 
regulated under EPA's National Ambient Air Quality Standards and air 
toxics and include the following smog-forming and other air pollutants:
---------------------------------------------------------------------------

    \72\ 49 U.S.C. 32908(g)(1)(A).
---------------------------------------------------------------------------

     NMOG--non-methane organic gases;
     NOX--oxides of nitrogen;
     PM--particulate matter;
     CO--carbon monoxide; and
     HCHO--formaldehyde.
    The agencies proposed and requested comment on a one-to-ten rating 
for ``other emissions'' in which each rating is associated with a bin 
from the Federal Tier 2 emissions standards,\73\ or the comparable 
California emissions standard,\74\ based on the fact that it was 
impossible to provide a single aggregated rating reflecting an absolute 
scale, and that separate absolute rating scales would have been unduly 
cumbersome to present on the label.
---------------------------------------------------------------------------

    \73\ 40 CFR part 86, subpart S.
    \74\ The California Low-Emission Vehicle Regulations for 
Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles, Title 
13, California Code of Regulations (last amended March 29, 2010).
---------------------------------------------------------------------------

    The majority of comments received were supportive of the proposed 
option, indicating that it was a reasonable approach to distilling 
complex information and was consistent with the approach used on the 
EPA Green Vehicle Guide Web site and the California Environmental 
Performance Label. Several commenters advocated changing the name on 
the label from ``other air pollutants'' to the term ``smog,'' which 
they felt was more meaningful for the general public and would be even 
more directly consistent with the California Environmental Performance 
Label. Finally, a few comments suggested that ``other air pollutants'' 
should be disaggregated and displayed separately for each air 
pollutant.
    The agencies are requiring, as proposed and as supported by most 
comments, a label that displays a relative one-to-ten rating based on 
Federal vehicle emission standards or comparable California emissions 
standards. We are also requiring the suggested name change, as 
consumers are already familiar with the connection between vehicle 
emissions and smog, whereas ``other air pollutants'' is not currently 
as meaningful. This will have the added benefit of promoting label 
harmonization by better aligning with the California Environmental 
Performance Label ``Smog Score'' that has been in existence for many 
years.
    Despite the fact that the EPCA and EISA language could be 
interpreted to allow multiple ``other emissions'' rating scales on the 
label, the agencies were not persuaded that having disaggregated 
pollutant information on the label would benefit consumers. Based on 
our consumer research,\75\ it appears that consumers do not currently 
want more specificity when it comes to these air pollutants and, in 
fact, could not make meaningful distinctions among these pollutants. In 
addition, we do not believe that there is sufficient space on the label 
to incorporate emissions information on the five pollutants addressed 
through this rating scale without cluttering the label and risking 
information overload. However, to address some consumers' interest in 
more information, consumers will be able to access more detailed 
information on the specific smog-forming pollutants that are covered 
collectively on the label on fueleconomy.gov.
---------------------------------------------------------------------------

    \75\ Environmental Protection Agency Fuel Economy Label: Phase 1 
Focus Groups, EPA420-R-10-903, August 2010, p. 28.
---------------------------------------------------------------------------

    The agencies acknowledge that this rating will multiply the number 
of distinct labels relative to current labeling because of the 
interaction between model types and test groups. Current labels are 
based only on model types and present only fuel economy information. 
However, emissions are based on test groups, and there may be multiple 
test groups within a given model type. For example, a manufacturer with 
two otherwise identical vehicles within a model type, where one is 
certified to EPA emission standards and the other to more stringent 
California standards, would only need one label today for all the 
vehicles in that model type. This final rule would require that--
despite identical fuel economy results--the different vehicles have 
different smog ratings and thus different label information. Any 
incremental costs associated with this increase in distinct labels have 
been addressed; as discussed in Section VI.A., the agencies received 
comment from auto makers on the startup costs of the new labels, 
including estimates of the IT needs to address new label requirements, 
and incorporated their comments into the cost estimates.
    The Smog Rating System for model year 2013 vehicles is shown in 
Table F-1. The proposal discussed ratings based on current emission 
standards; however, if those standards were to change in the future, 
the ratings would no longer have a basis on which to be assigned. 
Therefore, we clarify here that we intend to update the scoring 
thresholds in the future to reflect the prevailing Federal and 
California emissions standards. Any updates to the Smog Rating will be 
included in the annual label manufacturer guidance document or in the 
regulations via rulemaking.

            Table F-1--Rating System for ``Other Emissions''
------------------------------------------------------------------------
                                  EPA Tier 2          California Air
         Smog  rating              emissions     Resources Board  LEV II
                                   standard        emissions  standard
------------------------------------------------------------------------
10...........................  Bin 1...........  ZEV
9............................  N/A.............  PZEV
8............................  Bin 2...........  SULEV II
7............................  Bin 3...........  N/A
6............................  Bin 4...........  ULEV II
5............................  Bin 5...........  LEV II
4............................  Bin 6...........  LEV II opt 1
3............................  Bin 7...........  N/A
2............................  Bin 8...........  SULEV II large trucks
1............................  N/A.............  ULEV & LEV II large
                                                  trucks
------------------------------------------------------------------------

G. Fuel Costs and Savings

    As described in Section II.A, EPCA requires that labels shall 
contain ``the estimated annual fuel cost of operating the automobile.'' 
In addition EPCA states that the labels shall contain other information 
required or authorized by the EPA Administrator that is related to the 
required information,\76\ such as the annual fuel cost. EPA proposed to 
include annual fuel cost on all labels, and proposed a five year fuel 
cost or savings compared to the average vehicle value on label 1, but 
indicated that any label required could include the five year cost or 
savings value.
---------------------------------------------------------------------------

    \76\ 49 U.S.C. 32908(b).
---------------------------------------------------------------------------

1. Annual Fuel Cost
    Focus groups conducted prior to the proposal provided mixed 
feedback on the value of annual fuel cost. When asked, participants 
were skeptical of the

[[Page 39495]]

use of estimated annual fuel cost, even when asked to consider whether 
it could be a useful comparative metric across other vehicles of the 
same model year. This skepticism arose from the recognition that the 
value was based on assumptions of fuel prices and annual miles driven, 
which many felt would not be personally applicable to their own driving 
patterns. Nevertheless, participants consistently employed the annual 
fuel cost (along with MPG) when asked to compare the efficiency of 
conventional vehicles with that of advanced technology vehicles, like 
PHEVs and EVs, with their less familiar set of energy metrics.\77\ 
Focus group participants involved in the previous update to the fuel 
economy label were clearly interested in the annual fuel cost 
figure.\78\ Recognizing the EPCA statutory requirement to display the 
estimated annual fuel cost, EPA requested comment on whether it is a 
useful comparative tool across technologies and, if so, how to best 
communicate on the label that it is valid for this purpose. EPA also 
sought comment on whether there might be an additional or alternative 
way to display fuel cost information that might be more useful or have 
a greater impact on consumers.
---------------------------------------------------------------------------

    \77\ Environmental Protection Agency Fuel Economy Label: Phase 3 
Focus Groups, EPA420-R-10-905, August 2010, p.37.
    \78\ 71 FR 5466, February 1, 2006.
---------------------------------------------------------------------------

    Comments on annual fuel cost generally acknowledged the statutory 
requirement under EPCA and agreed that it provides a useful comparison 
metric. Several commenters indicated that it was the most important 
metric on the current fuel economy label, after MPG. The majority of 
those who commented on it agreed that annual fuel cost should be 
retained. Several commenters suggested that the $2.80 per gallon cost 
figure shown on the example labels be made more realistic. Comments on 
electric operation indicated that 15,000 miles per year is not 
attainable for an EV unless it were to recharge more than once a day, 
and suggested cents per mile as a useful metric; they did acknowledge, 
however, that the annual cost could be used as a comparative tool. One 
comment regarding PHEVs noted that annual fuel cost will vary 
significantly depending on the relative use of gasoline and 
electricity.
    EPA is requiring the retention of annual fuel cost and its 
underlying assumptions on the label. This satisfies the EPCA 
requirement and provides continuity with the historical approach to 
annual fuel cost, which is used by some consumers as a comparative 
tool. EPA agrees that, as vehicle technologies diverge and it becomes 
increasingly challenging to find comparative metrics, fuel cost is a 
useful point of comparison. Consumers may compare the annual fuel cost 
of various vehicles and consider that cost to be part of the ``price'' 
of the vehicle. Because of the importance of annual fuel cost, the 
required label will make that cost quite prominent and conspicuous. EPA 
will continue its practice of issuing annual guidance updating the 
mileage and fuel cost assumptions, in consultation with the U.S. 
Department of Energy's Energy Information Administration.\79\
---------------------------------------------------------------------------

    \79\ Sample labels in the package use projections for the second 
and third quarter of 2012, based on the EIA Short Term Energy 
Outlook, May 2011.
---------------------------------------------------------------------------

2. Five Year Fuel Savings or Sending Compared to the Average Vehicle
    EPA also proposed and requested comment on another approach to 
presenting fuel cost information: Focusing on the savings attainable by 
purchasing a vehicle that is relatively more fuel efficient or the 
spending incurred when purchasing a vehicle that is relatively less 
fuel efficient. This approach was specifically recommended by the 
expert panel discussed in Section I.D, which noted that savings is a 
more powerful message than annual cost.\80\ Although savings and 
spending calculations would necessarily also rely on assumptions, EPA 
believes that the value of the information to consumers is significant 
enough to overcome these drawbacks.
---------------------------------------------------------------------------

    \80\ Environmental Protection Agency Fuel Economy Label: Expert 
Panel Report, EPA420-R-10-908, August 2010.
---------------------------------------------------------------------------

    In the proposal, EPA explored a number of methods for calculating 
savings and spending, and proposed a method that calculated the 
difference in fuel costs of a vehicle over five years compared to the 
projected median new vehicle for that model year. EPA proposed that 
some vehicles would show a savings, while others would show consumers 
spending more for fuel over five years compared to the reference 
vehicle; these values would increase in magnitude the further the 
vehicle is from the average vehicle in terms of fuel consumption. The 
proposed approach appropriately reflects the fact that fuel cost 
savings become larger as the fuel efficiency of a vehicle improves, and 
conversely that fuel costs increase as fuel efficiency decreases 
compared to the reference vehicle.
    As with the fuel economy and greenhouse gas rating system and 
comparable class information, EPA proposed to provide annual guidance 
indicating the reference against which the fuel cost savings would be 
measured, as well as the prices for all fuels.\81\ EPA proposed to 
compare each labeled vehicle to a median vehicle, but to use 
``average'' on the label as a more accessible term than ``median.'' EPA 
anticipated updating the reference vehicle MPG value as the fleet fuel 
efficiency changes in response to regulations and market forces. 
Finally, EPA proposed to round the relative fuel cost or savings values 
used on the label to the nearest one hundred dollars, to avoid implying 
more precision than is warranted and for ease of recall. Vehicles that 
are within fifty dollars of the reference vehicle fuel cost would be 
designated as saving zero dollars.
---------------------------------------------------------------------------

    \81\ We proposed that the reference five-year fuel cost be 
calculated by applying the gasoline fuel price to the average miles 
driven over the first five years of the reference vehicle's life, 
assuming a particular fuel economy. The fuel economy value for the 
reference vehicle would be based on the projected fuel economy value 
of the median vehicle model type for sale the previous model year, 
not sales-weighted, and adjusted based on projections regarding the 
upcoming model year. The appropriate values would be provided in 
guidance.
---------------------------------------------------------------------------

    EPA sought comment on this and alternative approaches to conveying 
fuel cost and savings information. EPA also sought comment on whether 
there is a potential for consumer confusion caused by two different 
dollar figures: the estimated annual fuel cost of operating the vehicle 
and the five-year relative fuel savings/spending value compared to a 
reference vehicle.
    Many individual consumers, consumer advocacy groups, and 
environmental advocacy groups expressed strong support for a five year 
save or spend value compared to the average vehicle. These commenters 
stated that clearly communicated operating costs or savings based on 
fuel efficiency would be a useful comparison metric, and that the five 
year save or spend value is a more powerful metric than annual fuel 
cost. They suggested that, for those consumers considering advanced 
technology vehicles with a higher sticker price but also a higher fuel 
economy than conventional vehicles, the five year save or spend value 
would be a valuable piece of information that would allow them to weigh 
the impact of fuel savings over time against the up-front vehicle 
purchase price.
    Several industry organizations commented that a fuel cost or 
savings value should be limited to a within class comparison. 
Automotive manufacturers were primarily opposed to including the five 
year save or spend value on the label, suggesting that the statutorily-

[[Page 39496]]

required annual cost is sufficient and the additional five year 
information would be confusing. Many of these commenters noted that the 
reference vehicle could be ambiguous or confusing, and some raised a 
concern that the median vehicle and the average vehicle are not the 
same. Some commenters said that five year save or spend value was 
incomplete because it does not account for the time value of money nor 
include up-front vehicle costs. A few commenters suggested that the 
agencies use five-year fuel costs (annual fuel cost multiplied by five 
years) rather than a comparison to the average vehicle costs; other 
commenters suggested that a relative five year save or spend value 
should be calculated based on a reference vehicle in the same class. 
Several commenters noted that the value of a dollar and the cost of 
fuel will undoubtedly vary during the five year period.
    EPA believes that the utility of the five year save or spend value 
compared to the average vehicle outweighs the concerns expressed by 
commenters. Although the literature is mixed, many studies have 
indicated that consumers may significantly undervalue (or overvalue) 
potential fuel savings when deciding which vehicle to purchase.\82\ One 
reason may be that consumers have difficulty accurately estimating fuel 
costs and savings over time.\83\ Another reason may be that unless 
relevant information is provided, those costs or savings, even if 
significant, may not be sufficiently salient to consumers at the time 
of purchase. The five-year fuel savings or spending value clearly 
demonstrates the total comparative fuel costs and savings over a 
timeframe that many vehicles are owned. Including it on the label will 
help consumers to more easily weigh the long-term payback benefits of 
purchasing a more fuel efficient vehicle or a vehicle that operates on 
a less expensive fuel.
---------------------------------------------------------------------------

    \82\ Greene, David L. ``How Consumers Value Fuel Economy: A 
Literature Review,'' EPA Report EPA-420-R-10-008, March 2010, p.vi-
ix.
    \83\ For evidence that consumers may make mistakes estimating 
the fuel savings associated with higher fuel economy, see: 
Turrentine, Thomas S. and Kurani, Kenneth S. ``Car buyers and fuel 
economy?'' Energy Policy 35:1213-1223 (2007) and Larrick, R.P. and 
J.B. Soll, ``The MPG illusion,'' Science 320:1593-1594 (2008). For a 
more complete discussion of reasons consumers may undervalue future 
fuel savings, see 75 F.R. 25510-25513; and Helfand, Gloria, and 
Wolverton, Ann, ``Evaluating the Consumer Response to Fuel Economy: 
A Review of the Literature, '' U.S. Environmental Protection Agency, 
National Center for Environmental Economics Working Paper 09-04 
(2009), p.23-30, available at http://yosemite.epa.gov/EE/epa/eed.nsf/WPNumber/2009-04?OpenDocument (last accessed 3/18/11).
---------------------------------------------------------------------------

    In response to a concern that the median vehicle and the average 
vehicle are not the same, EPA is requiring a simple change to the 
proposed algorithm for estimating the reference vehicle for fuel costs 
over five years. For consistency, EPA will use the same reference point 
that is used to define the break between a rating of 5 and a rating of 
6 on the fuel economy and greenhouse gas scale (see Section III.D). 
This addresses the concerns expressed in comment, as the term 
``average'' now is represented by the label MPG value that corresponds 
with the projected achieved CAFE level for the fleet on a sales-
weighted basis for that same model year. That is, the vehicles 
indicated on the label as ``you save'' in fuel costs over five years 
will have a fuel economy that is better than the projected average 
level for the fleet for that model year, while those indicating ``you 
spend'' will be below the projected average. The five-year average cost 
will be calculated for this average vehicle, using the same annual 
mileage and gasoline fuel cost assumptions used for the annual cost 
estimate, multiplied by five years. As proposed, this reference five-
year cost value representing the average vehicle will be published in 
EPA guidance, along with the upcoming projected fuel costs and annual 
mileage assumptions.
    While EPA agrees that some consumers may not fully understand the 
reference point for the five year save or spend value, EPA nevertheless 
believes that showing relative costs or savings has significant value 
in helping consumers understand that fuel efficiency can substantially 
affect the relative operating costs among vehicles. In particular, EPA 
believes that communicating to consumers a vehicle's fuel costs 
relative to the costs of the average new model offered for sale, and 
over a timeframe commensurate with vehicle ownership, will highlight 
the importance of future fuel costs and allow them to be more readily 
factored into the buying decision. To clarify the average vehicle 
reference point, the ``Compared to the average vehicle'' text is being 
increased in prominence. In addition, explanatory text is being added 
to the label which says ``The average new vehicle gets X MPG and costs 
$Y to fuel over 5 years.'' The agencies believe that this additional 
text should aid consumer understanding about the reference point.
    EPA considered using five-year fuel cost (annual fuel cost 
multiplied by five-years) instead of the comparative five year save or 
spend value. However, as discussed above, EPA concluded that showing 
the relative costs or savings has additional merit that is not 
immediately gleaned from a five-year cost value. EPA and the Department 
of Energy provide similar information online for appliances as part of 
their Energy Star program.\84\ In addition, since annual fuel cost is 
also on the label, consumers can easily use the information on the 
label to calculate their own five-year fuel costs, if desired.
---------------------------------------------------------------------------

    \84\ For example see ``Savings Calculator'' at: http://www.energystar.gov/index.cfm?fuseaction=find_a_product.showProductGroup&pgw_code=CW (last accessed 3/17/11). This 
spreadsheet allows users to estimate the potential savings from 
using Energy Star-qualified clothes washers instead of conventional 
clothes washers.
---------------------------------------------------------------------------

    EPA also considered using economic projections of future dollar 
values and fuel costs to calculate the five year save or spend value, 
but concluded that doing so would make the calculations unnecessarily 
confusing to the consumer while providing limited additional value. 
Many people in the public think in terms of simple calculations or 
payback periods when considering long-term costs or savings. As EPA 
learned from the focus groups, consumers are skeptical of any 
calculations involving fuel costs, because the price of fuel fluctuates 
greatly, and personal driving habits also vary. Adding additional 
complexities to the calculation would probably further confuse 
consumers and thus contribute to their skepticism. Our hope is that 
consumers will recognize that this value is most useful for comparison 
purposes, and not as an exact measure of actual fuel costs.
    EPA does not agree with comments suggesting that the five year save 
or spend value should be based on a within class comparison, because 
EPA's research demonstrated that most shoppers search for vehicles that 
fall into more than one class. In addition, having multiple reference 
vehicles--one for each class--would create unnecessary confusion for 
the consumer. Therefore, the relative five year save or spend value 
will be compared to one reference vehicle, as described above.
    EPA acknowledges that there is some potential for confusion created 
by having both annual fuel costs and the relative five year save or 
spend values on the label. It believes, however, that for many 
consumers, the two figures may prove complementary: Consumers are able 
both to see absolute cost on an annual basis and to learn how much they 
will save or spend compared to the average vehicle over a relevant 
period. To reduce the risk of confusion, the label will display the 
five year save or spend value and the annual fuel cost in distinct 
locations on the label, with

[[Page 39497]]

prominent differentiating text (see Figure I-1).

H. Range and Charge Time

1. Range
    Vehicle cruising range--the calculated distance that a vehicle can 
travel given its fuel economy and fuel tank capacity--has not 
historically been provided on the fuel economy label. However, in the 
focus groups conducted for this rulemaking, it became clear that many 
people were interested in this piece of information, but only for 
advanced technology vehicles, with which there is little familiarity. 
Accordingly, EPA proposed that vehicle range be included on the label 
for vehicles that use electricity, proposed that it not be included on 
labels for vehicles that operate on liquid fuels, and sought comment on 
whether range should be included on labels for vehicles that operate on 
non-petroleum fuels other than electricity.
    EPA did not receive a large number of comments on range. Of the 
comments that were received, nearly all supported including range for 
some or all alternative fuel vehicles. Several commenters supported the 
inclusion of range for all alternative fuel vehicles, with the goal of 
harmonizing with the Federal Trade Commission \85\ so that its separate 
label would no longer be necessary. One commenter opposed the inclusion 
of range on an already ``crowded'' label, but did state that if range 
were included on EV and PHEV labels, then it should also be included on 
CNG labels.
---------------------------------------------------------------------------

    \85\ The Federal Trade Commission requires a label that displays 
cruising range for all alternative fuel vehicles and vehicles 
capable of utilizing alternative fuels. See 16 CFR part 309, Subpart 
C.
---------------------------------------------------------------------------

    EPA is requiring the inclusion of range on all non-petroleum and 
advanced technology vehicle labels, e.g., for CNG, EV, PHEV, and 
hydrogen FCV vehicles. As supported by commenters, EPA continues to 
believe that range is an important piece of information for potential 
purchasers of these vehicles, since they typically cannot travel as far 
on a refueling as can a conventional gasoline vehicle, and the 
refueling infrastructure for non-liquid fuels is currently limited. EPA 
also agrees with several commenters that including range on the new 
fuel economy and environment label may set the stage for possible 
future action by the Federal Trade Commission to withdraw its separate 
cruising range label for alternative fuel vehicles. In response to some 
commenters' concern about the ability to generate meaningful range 
estimates for PHEV labels, EPA recognizes that the real-world 
variability in PHEV range values, particularly in the all-electric or 
battery assist mode, will be much higher than with conventional 
vehicles. Nevertheless, a laboratory-based repeatable test gives a 
basis for comparison, despite real-world variability, and the final 
label requires an all electric range value for all PHEVs. EPA's market 
research suggests that many consumers want an objective comparative 
metric for range that they can use to determine whether an advanced 
technology vehicle might be right for them.\86\
---------------------------------------------------------------------------

    \86\ Environmental Protection Agency Fuel Economy Label: Phase 2 
Focus Groups, EPA420-R-10-904, August 2010.
---------------------------------------------------------------------------

    EPA is also finalizing an option for vehicle manufacturers to 
voluntarily include E85 range information on the labels for ethanol 
flexible fuel vehicles. The potential benefit to a manufacturer is 
that, should it take advantage of this option, the Federal Trade 
Commission might decide that a separate driving range label is no 
longer required. The final regulations provide templates that 
illustrate how labels with this optional information should appear, and 
any company choosing to provide driving range information must display 
that information according to the regulations. EPA encourages 
manufacturers to provide this optional E85 driving range information, 
particularly in cases where refueling opportunities may be limited and/
or the driving range is substantially less than what consumers are used 
to experiencing with typical conventional fuel vehicles.
2. Battery Charging Information
    Battery charging information was included on two of the three EV 
and PHEV label designs in the proposed rule. As noted in the proposal, 
EPA believes that the amount of time it takes to charge an EV or PHEV 
battery is important to consumers. This was widely supported by the 
focus groups, where participants often expressed a strong interest in 
seeing battery charging information on the EV and PHEV labels. EPA 
proposed that the label include battery charging time using a standard 
wall outlet supplying 120 volts, with an option for the manufacturer to 
alternatively specify a 240 volt charge time if the higher voltage is 
recommended or required by the manufacturer.
    A majority of commenters on the subject, including automotive 
manufacturers and consumer groups, supported including charge time 
information on the label. Some of these commenters suggested that 
charge time should be based on 240V, as this would be consistent with 
the recommendation in the owner's manual and would reflect the manner 
in which EVs and PHEVs are likely to be typically charged. Several 
comments suggested that a range of charge times should be provided, 
given the possible use of different voltage levels. A minority of 
commenters, largely comprised of electric vehicle manufactures and 
advocacy organizations, suggested that charging information should not 
be on the label, largely because of concerns of oversimplification of 
the range of possible charge times given charging conditions, as well 
as label overcrowding. These commenters suggested that the charging 
information could be provided on EPA's Web site instead.
    EPA is requiring charging time information on the label of EVs and 
PHEVs, with one key difference from the proposal. The final regulations 
require that manufacturers display charging time based on the use of a 
dedicated 240 volt charging system, with the option of displaying 
charging time based on the use of a standard 120 volt wall outlet. It 
is our belief that the owners of these vehicles will, in a significant 
majority of cases, install dedicated 240 volt outlets to use for 
charging their vehicles.\87\ Doing so will dramatically decrease the 
amount of time it takes to charge the battery, thus minimizing one of 
the perceived limitations of vehicles that use electricity and 
maximizing the utility and availability of the vehicle. However, to 
address the possibility that not all EV/PHEV owners will install 
dedicated 240 volt outlets, a manufacturer may instead report the 120 
volt charging time on the label if, for example, their vehicle is not 
capable of receiving 240 volts, or if the manufacturer believes that 
their buyers will typically use 120 volt and will prefer that 
information instead.
---------------------------------------------------------------------------

    \87\ U.S. Environmental Protection Agency, U.S. Department of 
Transportation, California Air Resources Board Interim Joint 
Technical Assessment Report: Light-Duty Vehicle Greenhouse Gas 
Emission Standards and Corporate Average Fuel Economy Standards for 
Model Years 2017-2025. Chapter 4. September 2010.
---------------------------------------------------------------------------

I. Web Site and QR Code

    EPA proposed and requested comment on adding a new, prominent URL 
on the label that would direct consumers to a detailed, interactive 
consumer Web site. EPA also proposed including a QR Code[supreg] that 
could be scanned by a device such as a smartphone and reach the same 
Web site.

[[Page 39498]]

    All those who commented on the topic supported the development of a 
comprehensive Web site, indicating that it is crucial to achieving a 
simpler label while also providing consumers with access to detailed 
information. Commenters also liked the idea of having a Web site that 
can more accurately reflect their likely personal experience with a 
vehicle. The majority of comments received also supported the inclusion 
of the QR Code[supreg] on the label. EPA evaluated other two-
dimensional bar codes suggested by commenters and found that the 
advantages of the QR Code[supreg] significantly outweighed the 
potential advantages of other options. The QR Code[supreg] is free to 
use, in the public domain, does not require entering into a business 
relationship with private industry, and perhaps most significantly, is 
described in an ISO standard which is incorporated by reference in the 
final regulations. The ISO standard allows the agencies to clearly and 
completely describe in regulatory language the process for generating a 
QR Code[supreg], a necessity of the structure of our program.
    EPA is moving forward with developing new Web site content on the 
existing fueleconomy.gov site. New content will be available prior to 
the date that labels are required to appear on vehicles (MY 2013), and 
will further explain the label's content, metrics, and methodologies. 
In addition to the label-specific information, consumers can use 
fueleconomy.gov's tools to compare and personalize fuel economy and 
environmental values across vehicles. New content on this Web site will 
include an enhanced emissions calculator that will allow consumers to 
determine an EV's or PHEV's potential upstream greenhouse gas 
emissions, based on the vehicle's efficiency and regional electricity 
emissions rates. This functionality will give consumers more accurate, 
regional-specific upstream emissions information than is possible on a 
static, national label. The Web calculator may also allow consumers to 
estimate the upstream GHG emissions associated with the operation of 
gasoline, diesel, and CNG vehicles using national averages.
    In order to address consumers' growing interest in having 
information accessible via smartphones, EPA is including a QR 
Code[supreg] on the new label.\88\ When a smartphone user scans the QR 
Code[supreg] on the label, information on that particular vehicle from 
the EPA Web site will be displayed on the handheld device. Though 
several commenters suggested linking to the auto manufacturers' 
vehicle-specific Web sites from the QR Code[supreg], EPA determined 
that linking to a government Web site was the best way to provide 
consumers with ``just the facts.'' The content will be similar to what 
will be available on the label Web site, but geared to a smartphone 
platform. The user can then take advantage of many of the Web site's 
tools and vehicle comparisons from his/her phone while shopping at a 
dealership.
---------------------------------------------------------------------------

    \88\ QR (or ``quick response'') Codes are simply two-dimensional 
bar codes used to store information. In this case the information is 
a Web site URL. The term QR Code[supreg] is a registered trademark 
of Denso Wave Incorporated, which owns the patent rights to the QR 
Code. However, the patent right is not exercised, allowing the 
specification of the QR Code[supreg] to be disclosed and open for 
widespread use. For more information, see http://www.denso-wave.com/en/adcd/index.html.
---------------------------------------------------------------------------

J. Color

    All of the proposed labels utilized color to draw attention and 
highlight information for consumers. However, each of the two proposed 
label options used color in different ways. The color on Label 1 was 
assigned based on the letter grade rating of the vehicle, using color 
as a comparison tool, whereas the color on Label 2 was determined by 
the vehicle technology and fuel type, using color as a vehicle 
identifier.
    NHTSA and EPA received comments from a wide variety of 
organizations supporting the use of color on the label. These 
commenters noted that color draws attention and results in a more 
influential label than black and white, and that the incremental cost 
of achieving color would be worthwhile. These comments especially 
supported using colors to differentiate important information for the 
consumer, such as vehicle ratings or five-year fuel costs. On the other 
hand, automobile manufacturers were concerned about the use of color on 
the label, especially any label design that would require color 
printing at the point of vehicle assembly or port of entry. In 
addition, they expressed concern that colors in the labels might fade, 
that they might be difficult to see through tinted windows, that the 
increased complexity of these labels would lead to compliance concerns, 
and that some colors might deter consumers from considering some 
vehicles. The manufactures were specifically concerned with the 
``warning'' connotation that the colors red, orange, and yellow convey.
    Currently, several manufacturers use color on their Monroney 
labels; however, most of those manufactures utilize a standard, 
preprinted color background (for example, a company logo in color) for 
all vehicles and then print with black ink on top of the preprinted 
background. The proposed labels would require either printing the 
entire label in color, or managing several preprinted color backgrounds 
and printing with black ink on top of the preprinted and collated 
backgrounds. Either of these methods would increase the amount of lead 
time required by manufacturers and would add cost and complexity to the 
printing process. These concerns ultimately led the agencies to 
simplify the color scheme on the final label.
    The final label will use one color, blue, for all vehicles to 
highlight important aspects of the label. The agencies chose not to use 
red as the primary color on the label due to the perceived ``warning'' 
message that it can convey. Conversely, we decided not to use green on 
all of the labels because we did not want to imply that all vehicles 
are green (i.e. clean) vehicles. The agencies were also advised that 
the color blue does not fade to a different color (green for example, 
can fade into yellow). The label has been designed to facilitate 
printing with black ink on a preprinted background. In addition, the 
color on the label satisfies the requirements of California to have 
``at least one color ink * * * in addition to black.''\89\ As discussed 
in Section III.L.2, this allows for harmonization of labels, which was 
a key request the agencies received from the automakers.
---------------------------------------------------------------------------

    \89\ California Air Pollution Control Laws, Health and Safety 
Code, Division 26, Part 5, Chapter 2, Section 43200.1 (b)(2)(D).
---------------------------------------------------------------------------

K. Lead Time

    The agencies proposed that the new label take effect for the 2012 
model year, in anticipation of advanced technology vehicles entering 
the market that would require labels which addressed their particular 
attributes. For those advanced technology vehicles expected to enter 
the market in model year 2011, EPA indicated that we would work with 
individual manufacturers to develop interim labels that would be 
consistent with the proposal on a case by case basis, using our current 
authority. The proposed timing would also coincide with the recent 
joint rulemaking by EPA and NHTSA that established harmonized Federal 
GHG emissions and CAFE standards for new cars, sport utility vehicles, 
minivans, and pickup trucks for model years 2012 through 2016.\90\ We 
also proposed to provide 30 days of lead-time for automobile 
manufacturers and importers to update the label template and upgrade 
printing

[[Page 39499]]

capabilities in order to implement these new requirements in the 2012 
model year. This timing, given rule finalization in December 2010, was 
projected to capture the majority of the 2012 model year.
---------------------------------------------------------------------------

    \90\ See 75 FR 25324, May 7, 2010.
---------------------------------------------------------------------------

    Automakers commented that they would need significantly more lead-
time to adopt a revised label, explaining that the implementation 
process was much more complex than buying off-the shelf colors 
printers. Specifically, these commenters referenced (1) a detailed 
process of integrating multiple Information Technology systems in order 
to properly assign the new label elements to the correct vehicle, (2) 
redesign of the vehicle Monroney label if the footprint for the fuel 
economy and environment label changed from that of the current fuel 
economy label, and (3) the need to print new label stock or acquire and 
integrate new printers in order to launch a new label. Automakers 
typically expected that implementing these procedures would take on the 
order of six to ten months, although comments suggested lead-times from 
a low end of 19 weeks to a high end of the model year following the one 
year anniversary of the final rule. Several automotive commenters 
suggested making the new label requirements effective with the 2013 
model year, assuming that sufficient lead-time was also allotted.
    Some commenters supported the proposal to implement the new label 
at the start of a model year, noting that this would dovetail with the 
changeover in manufacturing processes. Implementing the label at the 
beginning of the model year would thus allow for a change in the 
labeling procedure when the production line was idle, minimizing costs 
and the chances of mislabeling. Doing so would also minimize public 
confusion that could arise from two different label designs appearing 
on two vehicles of the same model and model year. However, not all 
those who commented on lead-time felt that a change at the start of a 
model year was important, given their particular manufacturing 
procedures, and requested the flexibility for voluntary early adoption, 
which could prevent having duplicate systems in place.
    The detailed description of the required procedural steps persuaded 
EPA and NHTSA that additional lead-time is necessary for automakers to 
properly implement the revised label without undue burden and error. 
NHTSA and EPA also agree that, for many manufacturers, switching at the 
start of the model year would be the least burdensome and most logical 
approach. Finally, the rulemaking is being completed several months 
beyond when originally planned, which would capture only a portion of 
the 2012 model year. An EPA analysis of the timeframe of vehicle 
certifications over the past several years, using confidential 
information submitted by automotive manufacturers, revealed that fewer 
than 20% of the total labels for the model year are typically issued by 
the end of May, 40% by the end of June, and 60-70% by mid-August. We do 
not think it would enhance public understanding for a new label to be 
required on less than half of the vehicle models in that model year.
    Thus, the agencies are requiring that the revised label be applied 
to all model year 2013 and later vehicles. The rule will be effective 
30 days after publication, and manufacturers may optionally adopt the 
label for the remaining portion of the 2012 model year after that date. 
This approach provides the manufacturers with the most flexibility and 
several extra months of lead-time prior to the start of the 2013 model 
year, while providing consistency across the entire 2013 model year to 
minimize public confusion. We acknowledge that this lead-time, while 
significantly longer than that proposed, is less than that requested by 
certain commenters. However, the final label designs address many of 
the considerations that manufacturers raised as necessitating 
additional lead-time. Specifically, the minimum footprint of the 
current fuel economy label has been retained, thus eliminating the need 
for redesign of the Monroney label layout. In addition, the labels have 
been designed to eliminate the need for color printers on the line and, 
for the most part, to use a single pre-printed card stock, thus 
removing the lead-time steps that would have been needed to integrate 
either color printers or multiple card stocks in continuous use. We 
therefore believe that it will be possible for manufacturers to make 
the necessary changes in their labeling processes in the lead-time 
allotted.

L. Harmonization With Other Labels

    As noted previously, Executive Order 13563, section 3, specifically 
draws attention to the importance of avoiding redundant, inconsistent, 
or overlapping requirements, and directs agencies to take steps to 
reduce ``costs by simplifying and harmonizing rules.''
1. Federal Trade Commission
    The Federal Trade Commission (FTC) currently requires that 
alternative fuel vehicles display a label that reports the driving 
range of the vehicle.\91\ The dedicated alternative fuel vehicle label 
displays the estimated city and highway driving ranges on the 
alternative fuel, and the label for dual fuel vehicles (e.g., flexible 
fuel vehicles, or FFVs) displays the estimated city and highway driving 
ranges on both fuels.\92\ Alternative fuels (especially non-petroleum 
alternative fuels) may have lower energy densities, thus resulting in 
potentially reduced driving ranges relative to conventional fuels, and 
it is important for consumers to be able to understand this when 
considering the purchase of an alternative fuel vehicle. Among the 
vehicles currently labeled by EPA, the FTC label applies to vehicles 
that operate on electricity, ethanol, compressed natural gas, hydrogen, 
or on combinations of these fuels and conventional gasoline or diesel 
fuel (e.g., FFVs and PHEVs).
---------------------------------------------------------------------------

    \91\ 16 CFR Part 309.
    \92\ Note that while EPA does not currently require any 
comparative fuel information on FFV labels, EPA regulations have 
allowed manufacturers to optionally include the ethanol MPG and 
annual cost values since 2007. See 40 CFR 600.307-08.
---------------------------------------------------------------------------

    EPA did not specifically propose to harmonize with the FTC 
regulations such that a single label would satisfy the multiple and 
sometimes overlapping EPA, DOT, and FTC requirements. However, EPA did 
recognize in the proposal that there could be an opportunity for such 
harmonization that would depend on whether or not the FTC ultimately 
could conclude that the EPA/DOT label could satisfy their statutory 
requirements.\93\ The relevant FTC statute specifically allows for the 
information to appear on labels placed on vehicles as the result of 
other Federal requirements.\94\ Labels that were proposed to include 
range information and that are required to include this information 
(e.g., EVs, PHEVs, hydrogen FCV, and CNG-fueled vehicles) may in fact 
meet the FTC's statutory requirements, although the FTC will ultimately 
need to make a formal decision as to whether vehicles with these labels 
meet the FTC label requirements.
---------------------------------------------------------------------------

    \93\ 75 FR 58112 (Sept. 23, 2010).
    \94\ 42 U.S.C. 13232(a) states that the FTC labels ``shall be 
simple and, where appropriate, consolidated with other labels 
providing information to the consumer.''
---------------------------------------------------------------------------

    The agencies are requiring a label for ethanol flexible fuel 
vehicles that is consistent with the principles of the current policy: 
all label metrics are based on gasoline operation, a statement is 
provided so that the consumer knows that the values are based on 
gasoline

[[Page 39500]]

operation,\95\ and manufacturers may voluntarily include fuel economy 
estimates on E85 (which would be based on miles per gallon of E85, 
given that E85 is a liquid fuel). In addition, manufactures may 
optionally include the driving range on gasoline and on E85. As with 
the required range information on non-petroleum and advanced technology 
vehicles, the FTC will need to make a formal decision as to whether 
vehicles with these labels meet the FTC label requirements.
---------------------------------------------------------------------------

    \95\ The slightly revised statement is ``Values are based on 
gasoline and do not reflect performance and ratings based on E85.''
---------------------------------------------------------------------------

    The FTC has indicated that they will evaluate the labels in this 
final rule and ultimately make a determination as to whether or not the 
labels for alternative fuel vehicles that include range information are 
sufficient to meet the FTC statutory requirements.
2. California Air Resources Board
    To provide vehicle emissions information to consumers, the 
California Air Resources Board (ARB) has required new vehicles to have 
a Smog Index label since the 1998 model year, and an Environmental 
Performance Label (EPL), with both the Smog Index and a Global Warming 
Index, for all vehicles produced since Jan 1, 2009.\96\ These labels, 
which must be displayed in all new vehicles sold and registered in the 
state of California,\97\ depict relative emissions of smog-forming 
pollutants and, separately gases that contribute to global warming. In 
the proposal, the agencies acknowledged that the EPL required similar 
information to the proposed labels, but did not suggest harmonizing 
with the EPL.
---------------------------------------------------------------------------

    \96\ State of California Air Resources Board, ``California 
Environmental Performance Label Specifications for 2009 and 
Subsequent Model Year Passenger Cars, Light-Duty Trucks, and Medium-
Duty Passenger Vehicles.'' Adopted May 2, 2008.
    \97\ And those Clean Air Act Section 177 states that have chosen 
to adopt the California Environmental Performance Label.
---------------------------------------------------------------------------

    Nevertheless, many auto manufacturers and their associations 
commented about the desirability of a single, unified national label. 
These comments stated that it would be a cost-saving measure, increase 
clear space on the window, and reduce the potential for consumer 
confusion that could occur with two different labels presenting vehicle 
emissions information. Notably, the California Air Resources Board 
(ARB) commented that it believed that two labels with environmental 
information would be confusing and that its goal is to accept a 
national fuel economy and environment label that would meet its 
statutory obligations under the California Assembly Bill 1229 of 
2005.\98\
---------------------------------------------------------------------------

    \98\ California Air Pollution Control Laws, Health and Safety 
Code, Division 26 Air Resources, Part 5 Vehicular Air Pollution 
Control, Chapter 2 New Motor Vehicles, Sections 43200 and 43200.1.
---------------------------------------------------------------------------

    In discussing the possibility of harmonization, the California Air 
Resources Board commented specifically that it is obligated to address 
upstream emissions of greenhouse gases, stating that, ``One suggested 
solution, should EPA and NHTSA decide not to include upstream emissions 
on the label nationally, would be to set aside a blank space for 
automakers to include upstream emissions for California. This may be a 
workable compromise that would allow us to adopt the National Label.'' 
\99\ ARB also commented that its statute requires that the label 
include a statement that motor vehicles are a primary contributor to 
global warming and smog, either in conjunction with any upstream 
language or in the border of the label, and that ARB adopt either an 
``index that provides quantitative information in a continuous, easy-to 
read scale'' \100\ or an alternative graphical representation if input 
from a public workshop indicates that it will be a more effective way 
to convey the information. ARB also stated that its label must also 
represent emissions relative to all new vehicles, and explained that 
after a public workshop, ARB had adopted a one-to-ten scale for both 
the smog and global warming indexes. Finally, according to their 
comments, under ARB's controlling statute,\101\ the label must include 
at least one ink color other than black.
---------------------------------------------------------------------------

    \99\ Docket number EPA-HQ-OAR-2009-0865-7527.1.
    \100\ Id.
    \101\ California Air Pollution Control Laws, Health and Safety 
Code, Division 26, Part 5, Chapter 2, Section 43200.1 (b)(2)(D).
---------------------------------------------------------------------------

    In order to try to facilitate label harmonization to reduce OEM 
costs associated with labeling and potential consumer confusion at the 
possibility of two environment-related labels on new vehicles, NHTSA 
and EPA are adopting label provisions that the agencies believe will 
address California's requirements. Specifically, the label includes 
both ``smog'' (``other emissions,'' as discussed above) and greenhouse 
gas ratings relative to all new vehicles, using a one-to-ten format 
that is consistent with ARB's historical approach. In response to ARB's 
request to address upstream emissions, the label will include language 
pointing the public to a Web site that will provide upstream emissions 
values, including regional-specific values for electricity generation. 
EVs will include the statement, ``Does not include emissions from 
producing electricity.'' Vehicles fueled without grid electricity will 
include the statement, ``Producing and distributing fuel also create 
emissions; learn more at fueleconomy.gov.'' For PHEVs, the text ``& 
electricity'' will be added after the word ``fuel.'' The label will 
also address California's requirement for additional consumer language 
by including this statement, ``Vehicle emissions are a significant 
cause of climate change and smog.''
    The agencies have worked closely with ARB in developing a label 
that will meet their needs. We believe that ARB will evaluate the 
labels in this final rule with the intention of making a positive 
determination that the labels can serve to meet their statutory 
requirements as an alternative to the California Environmental 
Performance Label.

M. Electric and Plug-In Hybrid Electric Vehicle Test Procedures

1. Electric Vehicles
    In the NPRM, EPA proposed that, for fuel economy and emissions 
certification testing of electric vehicles, manufacturers continue to 
use the Society of Automotive Engineers recommended practice SAE J1634, 
Electric Vehicle Energy Consumption and Range Test Procedure, as 
published in October 2002. EPA also proposed that the reissued SAE 
J1634 may be referenced by the EPA after the reissued SAE J1634 is 
published.
    Comments in regard to the continued use of the procedures in SAE 
J1634 and EPA's continued involvement with SAE, ARB, and industry were 
generally positive. Some commenters were concerned with the potential 
length of test time required to follow SAE J1634, as EV range is 
expected to increase throughout the industry. Other commenters were 
concerned over the complexity associated with new test procedures and 
recommended that EPA and NHTSA consider a flexible regulatory mechanism 
to address any technical or procedural issues in the future.
    In the final rule EPA will continue to require the same procedures 
as described in SAE J1634 as published in October 2002. The EPA will 
review SAE J1634 after revision. Manufacturers may use alternate 
methods of testing to the procedures described in SAE J1634 with prior 
Administrator approval. In addition, EPA will no longer reference the 
ARB document entitled ``California Exhaust Emission Standards and Test 
Procedures for 2003 and Subsequent Model Zero-Emission Vehicles and 
2001

[[Page 39501]]

and Subsequent Model Hybrid Electric Vehicles, in the Passenger Car, 
Light Duty Truck, and Medium-Duty Vehicle Classes'' as currently 
referenced in 40 CFR 86.1811-04(n). This reference change is in 
response to some commenters' concern over all electric vehicles not 
necessarily meeting the ARB definition of a Zero-Emission Vehicle and 
the inability to locate the exact document as referenced.
    EPA may add additional allowable test procedures in the future. As 
electric vehicle testing experience develops, technical or procedural 
changes may also be addressed in the future.
    Fuel economy and electric range estimates are measured during 
``city'' and ``highway'' operation. Electric vehicles are tested to 
fulfill several requirements including Corporate Average Fuel Economy, 
fuel economy label values, and other compliance programs. Beginning in 
the 2008 model year,\102\ all vehicles tested for fuel economy labeling 
purposes had to use the new ``5-cycle'' fuel economy methodology which 
either required testing all vehicles over five test cycles or applying 
an equivalent 5-cycle correction, referred to as the derived MPG-based 
approach, to 2-cycle testing. This 5-cycle method was meant to correct 
test laboratory values to ``real world'' estimates. For alternative 
fueled vehicles, including electric vehicles, manufacturers will 
continue to have the option of fuel economy testing over all five test 
cycles or applying a derived MPG-based approach to 2-cycle testing.
---------------------------------------------------------------------------

    \102\ 71 FR 77872, December 27, 2006.
---------------------------------------------------------------------------

    The 2-cycle testing includes the Federal test procedure (FTP) and 
the highway fuel economy dynamometer procedure. The FTP, or ``city'', 
and HFED, or ``highway'', procedures are used for calculating CAFE and 
can be used to calculate appropriate fuel economy label values and 
other compliance requirements.
    The 5-cycle testing methodology for electric vehicles is still 
under development at the time of this final rule. This final rule will 
address 2-cycle and the derived adjustments to the 2-cycle testing, for 
electric vehicles. As 5-cycle testing methodology develops, EPA may 
address alternate test procedures. EPA regulations allow test methods 
alternate to the 2-cycle and derived 5-cycle to be used with 
Administrator approval.
(a) FTP or ``City'' Test
    The proposed procedure for testing and measuring fuel economy and 
vehicle driving range for electric vehicles was similar to the process 
used by the average consumer to calculate the fuel economy of their 
personal vehicle, using the distance the vehicle can operate until the 
battery would be discharged to the point where it could no longer 
provide sufficient propulsive energy. For range testing, the distance 
used to calculate electrical consumption is defined as the point at 
which an electric vehicle cannot maintain the speed tolerances as 
expressed in 40 CFR 86.115-78. This distance would be measured and 
divided by the total amount of electrical energy necessary to fully 
recharge the battery. The resulting electrical consumption and range 
would be the raw test values used in calculating CAFE city and 
calculating fuel economy label city values.
    Several commenters voiced concern over the test procedures 
associated with electric vehicles and the ongoing efforts in industry, 
specifically in SAE taskgroup SAE J1634, to address electric vehicle 
testing issues. SAE J1634 efforts include not only abbreviating the 
repetitive nature of the currently referenced version of SAE J1634 but 
also addressing the ``cold, fully charged start'' portion of EV testing 
and how this portion affects the range and fuel consumption. EPA may 
allow future SAE practices. Manufacturers may use test procedures other 
than the procedures described with prior Administrator approval.
    The final stage of the electric vehicle FTP test procedure is the 
measurement of the electrical energy used to operate the vehicle. The 
end of test recharging procedure is intended to return the rechargeable 
energy storage system (RESS) to the full charge equivalent of the pre-
test conditions. The recharging procedure must start within three hours 
after completing the EV testing. The vehicle will remain on charge for 
a minimum of 12 hours to a maximum of 36 hours. After reaching full 
charge and the minimum soak time of 12 hours, the manufacturer may 
physically disconnect the RESS from the grid. The alternating current 
(AC) watt-hours must be recorded throughout the charge time. It is 
important that the vehicle soak conditions must not be violated. The 
measured AC watt-hours must include the efficiency of the charging 
system. The measured AC watt hours are intended to reflect all 
applicable electricity consumption including charger losses, battery 
and vehicle conditioning during the recharge and soak, and the 
electricity consumption during the drive cycles. The AC integrated amp-
hours are to be measured between the outlet and the Electric Vehicle 
Service Equipment. If there is no EVSE, for example in 120V charging, 
the amperage is to be measured between the outlet and the charger. 
Manufacturers may use voltage stabilizing equipment with prior 
Administrator approval.
    The raw electricity consumption rate is calculated by dividing the 
above recharge AC watt-hours by the distance traveled before the end of 
the test criteria is reached. For electric vehicles that are not low 
powered, the end of test criteria is the point at which the vehicle can 
no longer maintain the speed tolerances as expressed in 40 CFR 86.115-
78. Both the city consumption and city range procedures are as proposed 
in the NPRM with the above additions.
(b) Highway Fuel Economy Dynamometer Procedure or ``Highway'' Test
    The Highway Fuel Economy Dynamometer Procedure or ``Highway'' Test 
actually consists of 2 cycles of the Highway Fuel Economy Driving 
Schedule (HFEDS). Similar to the FTP test procedure, the ``highway'' 
test will require procedures as described in SAE J1634 as published 
October 2002. The dynamometer procedures will be conducted pursuant to 
40 CFR 600.111 with the exceptions that electric vehicles will run 
consecutive cycles of the HFEDS until the end of test criteria is 
reached. Subsequent HFEDS pairs may require up to 30 minutes of soak 
time between HFEDS pairs due to facility limitations. Between cycle 
pairs, the vehicle hood is to be closed and the cooling fans shut off. 
Between starts, the RESS is not to be charged.
    Comments, specific to electric vehicle highway testing, included 
concern over the ``cold'' highway test. Conventional vehicles have no 
equivalent requirement to highway test from a ``cold start''. As with 
the FTP or ``city'' test, alternate ``highway'' test method procedures 
as described in SAE J1634 may be used with prior Administrator 
approval. The Administrator may approve alternative methods or test 
procedures to account for ``cold'' highway losses.
    Both the highway consumption and highway range procedures are as 
proposed in the NPRM with the above additions. The recharging 
procedures following the highway testing are as proposed in the NPRM 
with the above additions from the recharging event following the 
``city'' testing.
(c) Other EV Test Procedures
    Commenters expressed concern over possible testing and measurement 
issues that may be of issue with emergent EV technologies. Due to the 
unforeseeable nature of possible issues of yet-to-be-

[[Page 39502]]

developed EV technologies, the Agency requires a method of addressing 
possible future concerns in a timely manner. To address the rapidly 
evolving nature of some EV technologies, the Administrator may approve 
additional EV test procedures including SAE J1634 published after this 
notice.
(d) Charge Time
    Several commenters voiced concern over the need for a procedure for 
measuring charge time. Charge time is meant to estimate the required 
time needed to bring the EV from ``empty'' or minimum usable battery 
energy to ``full'' or maximum usable battery energy. The ``empty'' or 
minimum usable battery energy would be the battery state of charge at 
the end of the range test. A vehicle that has completed the range and 
consumption test would be considered ``empty'' until it was recharged, 
provided no regenerative braking or other charging was allowed before 
the actual recharge procedure.
    Defining the ``full'' or maximum usable battery energy state is 
required for charge time measurement. The ``full'' charge is the energy 
battery state of charge required to achieve the range as measured 
during the range tests above. Since vehicles may have electrical 
parasitic losses after the ``full'' charge is met, end of charge for 
the purposes of charge time may be less than the recharge and soak time 
associated with range and consumption testing. EPA may define charge 
time procedures as experience allows.
2. Plug-in Hybrid Electric Vehicles
(a) PHEV Test Procedure Rationale
    Test procedures for plug-in hybrid electric vehicles (PHEV) are 
required to quantify some operation unique to plug-in hybrids. The PHEV 
test procedures in this rule use existing test cycles and test 
procedures where applicable. PHEV operation can be generally classified 
into two modes of operation, charge-depleting and charge-sustaining 
operation. Charge-depleting operation can be described as vehicle 
operation where the rechargeable energy storage system (RESS), commonly 
batteries, is being depleted of its ``wall'' charge. Charge-sustaining 
operation can best be described as conventional hybrid operation, where 
the energy from consumption of fuel by the internal combustion engine 
is directly or indirectly the source of charge or recharging of the 
RESS.
    EPA has largely referenced SAE recommended practice SAE J1711, 
Recommended Practice for Measuring the Exhaust Emissions and Fuel 
Economy of Hybrid-Electric Vehicles, Including Plug-in Hybrid Vehicles, 
as published June 2010. EPA worked with stakeholders in developing SAE 
J1711 including manufacturers, Department of Energy, and the California 
Air Resources Board. EPA involvement in SAE J1711 was to help develop 
testing procedures that could be used as ``building blocks'' from which 
regulatory requirements could be determined.
    Several commenters requested EPA expand the SAE J1711 references 
beyond just sections 3 and 4. EPA will reference additional sections 
for SAE J1711 but will refrain from referencing SAE J1711 in total. EPA 
has referenced SAE J1711 test procedures as required to fulfill 
regulatory requirements. For conditions not specifically addressed in 
this rule, where conflicts exist between SAE J1711 and 40 CFR Part 86, 
Part 86 shall apply.
    As described above, charge-sustaining operation can best be 
described as conventional hybrid operation. Commenters to the proposed 
rule expressed concern in having different procedures for plug-in 
hybrid charge-sustaining testing than for conventional hybrid electric 
vehicles (HEV). The intent of the proposed rule was to test PHEVs in 
charge-sustaining mode the same as equivalent HEVs. Major differences 
in proposed PHEV charge-sustaining testing and HEV testing included 
RESS state of charge tolerances and RESS state of charge correction. 
This rule establishes the same exhaust test procedures for both HEVs 
and PHEVs while in charge-sustaining operation. This includes 
referencing Appendix C of SAE J1711 for net energy change correction. 
Manufacturers intending to use net energy correction methods will need 
prior Administrator approval. EPA may adopt state of charge (SOC) 
tolerances and net energy change (NEC) correction methods as testing 
experience develops.
    For the purposes of fuel economy label values, PHEVs may continue 
to use the derived 5-cycle adjustment while in charge-depleting mode. 
Commenters voiced concern and asked for clarification over the method 
of applying the derived 5-cycle correction to charge-depleting label 
values. As clarification, the derived 5-cycle adjustment will be 
applied to the total city and total highway fuel economies, separately. 
The total fuel economies in charge-depleting mode include all of the 
fuels consumed, typically gas and electricity, as expressed in a miles 
per gallon of gasoline equivalent unit. Applying the derived 5-cycle 
correction to the gasoline and electricity consumption, in charge 
depleting mode, separately could lead to a larger adjustment than other 
single fueled vehicles since the 5-cycle correction is not linear with 
respect to fuel economy.
    While in charge-sustaining mode, PHEV label value testing is 
subject to the same test procedures as conventional hybrid electric 
vehicles. This includes all the 5-cycle implications.
    PHEVs must meet all applicable emissions standards regardless of 
RESS state of charge. Some commenters wanted EPA to average criteria 
pollutants over multiple modes of operation based upon projected 
fractions of driving in each respective mode. While this may be 
acceptable for CO2 and fuel economy, averaging criteria 
pollutants over all modes of operation is not consistent with current 
emissions regulations. EPA will continue to consider the state of 
charge of a RESS as an adjustable parameter for the sake of emissions 
testing. EPA typically allows good engineering judgment in applying 
worse case emission testing criteria. This worse case testing insures 
all modes of vehicle operation are emissions compliant. It is the 
manufacturer's responsibility to insure vehicles are emissions 
compliant in all modes of operation. EPA may confirmatory test or 
request the manufacturer to provide test data for any required test 
cycle at any state of charge. For the purposes of emissions testing, 
EPA will start with the general assumption that charge-sustaining 
operation is worse case. Evaluation of fuel economy testing emissions 
may be used to change worse case emissions assumptions, including the 
assumption that worse case for emissions testing is charge-sustaining 
operation.
    The Alliance of Automobile Manufactures, along with several of its 
members, expressed concern over the possibility of a ``double cold'' 
penalty while transitioning from charge-depleting to charge-sustaining 
operation during FTP testing. The concern was that the ``cold penalty'' 
could be the result of two circumstances.
    One ``cold penalty'' could be shifting the cold engine start to the 
hot restart portion of the FTP. Currently, for the FTP, the hot start 
portion is weighted 57% and the cold start is weighted 43% of 
calculating the final emissions result. By shifting the cold start or 
multiple cold starts to the hot start phase, the Alliance argues that 
PHEVs are potentially held to a higher standard than conventional 
vehicles or conventional hybrids. EPA does not agree with this line of 
reasoning. The cold and hot start phases of the FTP are not only engine 
but also vehicle

[[Page 39503]]

conditions. By virtue of how PHEVs may operate, an engine cold start 
could indeed be moved to the hot start portion of the FTP or to any 
portion of any test cycle during mode transition. It is the 
manufacturer's responsibility to ensure the vehicle can pass the FTP 
emissions tests. One method manufacturers could employ would be to 
monitor the RESS SOC and idle the engine in order to light off the 
catalysts before any load is applied to the engine. A blended mode PHEV 
could potentially cycle the engine so little that the exhaust system 
could cool. Multiple cold starts, within one phase, and starts at 
vehicle speed represent real world concerns. Furthermore, an engine 
cold start in the hot start portion of the test would mean that the 
cold start portion of the test had no emissions. Zero emissions in the 
cold start phase would mitigate the cold start/hot start weighting of 
the FTP results.
    The second ``cold penalty'' could be cold starting the engine at 
the very end of the stabilized portion of the cold start phase and then 
starting the engine again in the hot start phase with a nearly cold 
engine. Commenters had the similar concerns that a ``double cold'' 
start would hold PHEVs to a higher standard than other vehicles. 
Commenters argued that current conventional vehicle ``drive through'' 
their cold starts whereas a PHEV that starts late in the cold start 
phase would be similar to a conventional or conventional hybrid vehicle 
that was driven a very short distance and turned off, only to be 
restarted soon afterward. These commenters believed PHEVs would only 
undergo one cold start per trip, much like conventional vehicles, just 
that the test procedure technicalities may force a ``double cold'' that 
will likely not exist in the real world anymore than conventional 
vehicle ``double cold'' starts. EPA agrees that PHEVs would normally 
have only one cold start during typical continuous driving of 12 miles, 
which the FTP represents. To remedy this concern of PHEVs being held to 
driving cycle than results in more than the one typical cold start, 
this rule will allow manufacturers to substitute the charge-sustaining 
data for the second Urban Dynamometer Driving Schedule (UDDS), or the 
hot start test, for the second UDDS of charge-depleting ftp for 
emissions other than CO2. Holding PHEVs to a ``double cold'' 
start may be increasing the stringency of the current emissions 
standard just as requiring conventional vehicles to pass current 
standards without an idle period or inserting a cold restart in the ftp 
to represent driveway or valet maneuvers would increase the stringency 
of the current emissions standard.
    (b) PHEV Test Procedure and Calculations
(1) Charge-Depleting Operation--FTP or ``City'' Test and HFET or 
``Highway'' Test
    The EPA has incorporated by reference SAE J1711, as published in 
June 2010, chapters 3 and 4 for definitions and test procedures, where 
appropriate. For conditions not specifically addressed in this rule, 
where conflicts exist between SAE J1711 and 40 CFR Part 86, Part 86 
shall apply. In this rule, where SAE J1711 is referenced, the June 2010 
revision is assumed to be the referenced version. Commenters were 
concerned over an increased void rate of charge-depleting tests due to 
the length of repetitive cycles needed to finish the charge-depleting 
testing. To address this concern, this rule will adopt the speed 
tolerance violation section, 3.6.2, in SAEJ1711. Additional speed 
tolerance violations may be approved by the Administrator. The 
Administrator may also approve deviations outside of currently allowed 
ambient vehicle soak conditions to reduce the likelihood of voiding 
extended testing.
    For the purposes of charge-depleting CO2 and fuel 
economy testing, manufacturers may elect to report one measurement per 
phase (one bag per UDDS). Exhaust emissions need not be reported or 
measured in phases where the engine does not operate. Requiring exhaust 
emissions sampling during test cycles where the engine does not operate 
would increase void rate and possibly slow testing.
    End of test recharging procedure is intended to return the 
rechargeable energy storage system (RESS) to a full charge equivalent 
to pre test conditions. The recharge AC watt-hours must be recorded 
throughout the charge time. The measured AC watt-hours are intended to 
reflect all applicable electricity consumption including charger 
losses, battery and vehicle conditioning during the recharge and soak, 
and the electricity consumption during the drive cycles. To capture all 
the losses, the AC amp-hours and voltage would be measured between the 
``wall'' and the Electric Vehicle Service Equipment. Alternate recharge 
measurements may be approved by the Administrator.
    Net Energy Change (NEC) tolerance is to be applied to the RESS to 
confirm charge-sustaining operation. The EPA is adopting the 1% of fuel 
energy NEC state of charge criteria as expressed in SAE J1711. The 
Administrator may approve alternate NEC tolerances and or state of 
charge correction factors.
    Preconditioning special procedures are optional for traditional 
``warm'' test cycles that are now required to test starting at full 
RESS charge due to charge-depleting range testing. If the vehicle is 
equipped with a charge-sustaining switch, the preconditioning cycle may 
be conducted per 600.111 provided that the RESS is not charged. Exhaust 
emission measurements are not required in preconditioning drives. 
Alternate vehicle warm up strategies may be approved by the 
Administrator. This will allow a method for starting ``warm'' test 
cycles with a fully charged battery.
(2) Hybrid Charge-Sustaining Operation--FTP or ``City'' Test and HFET 
or ``Highway'' Test
    The EPA has incorporated by reference SAE J1711 Chapters 3 and 4 
for definitions and test procedures, where appropriate. For conditions 
not specifically addressed in this rule, where conflicts exist between 
SAE J1711 and 40 CFR Part 86, Part 86 shall apply.
    Commenters expressed the need for aligning test procedures between 
hybrids and PHEVs, while in charge-sustaining operation. The intent of 
this rule is to test hybrid and plug-in hybrids, while in charge-
sustaining operation, in the same manner. This will in effect negate 
the requirement in 40 CFR 86.1811-04(n) that manufacturers must use ARB 
procedures in the document entitled California Exhaust Emission 
Standards and Test Procedures and Subsequent Model Zero-Emission 
Vehicles and 2001 and Subsequent Hybrid Electric Vehicles, in the 
Passenger Car, Light Duty Truck, and Medium-Duty Vehicle Classes. 
Therefore, this requirement will be deleted from the regulation.
    NECtolerance, is to be applied to the RESS to confirm charge-
sustaining operation. The EPA is adopting the 1% of fuel energy NEC 
state of charge criteria as expressed in SAE J1711. The Administrator 
may approve alternate NEC tolerances and or state of charge correction 
factors.
(3) Charge-Depleting Range Determination
    Commenters were concerned that the charge-depleting range 
determination as proposed was not specific enough and could be prone to 
variation from ``false trigger'' electrical noise. To address commenter 
concern and due to recent testing experience, this rule references 
sections 6.1.3.1 and 6.1.3.2 of SAE J1711

[[Page 39504]]

for Actual Charge-Depleting Range (RCDA) calculation.
    Calculation of RCDA using the referenced methods implies 
that there is no charge-depleting range for vehicles that cannot 
complete one test cycle in charge-depleting mode. This is consistent 
throughout this rule. There is no requirement or need, by EPA, to 
calculate charge-depleting ranges below one UDDS or one HFET for either 
blended mode or all-electric capable PHEVs.
3. Other Test Cycles
    Several commenters voiced concern over applying SAE J1711 to test 
cycles other than the FTP and HFED. PHEV and electric vehicle testing 
over the SC03, US06, or Cold CO test cycles follow the same general 
procedure as the FTP and HFED. Applying possible 5-cycle calculations 
to produce charge-depleting fuel economy and CO2 emissions 
is not required as the derived 5-cycle is allowed during charge-
depleting mode. Methods to apply the 5-cycle calculation to PHEV 
charge-depleting testing require Administrator approval.
4. Test Tolerances
    Commenters supported the flexibility of allowing increased state of 
charge tolerances and correction factors. As proposed, state of charge 
tolerance correction factors may be approved by the Administrator. RESS 
state of charge tolerances beyond the 1% of fuel energy as specified in 
SAE J1711 may be approved by the Administrator.
5. Mileage and Service Accumulation
    Several commenters expressed concern over the minimum and maximum 
allowable test vehicle accumulated mileage for both EVs and PHEVs. 
Manufacturers claimed that, due to the nature of PHEV and EV operation, 
testing may require many more vehicle miles than conventional vehicles. 
Furthermore, electric motors may not receive the same benefit of 
vehicle mileage to fuel consumption. This rule will allow manufacturers 
to subtract non-engine operating miles from the vehicle mileage, with 
prior Administrator approval. The EV maximum accumulated mileage may 
also be extended with prior Administrator approval. The Administrator 
may approve additional or alternate maximum mileage and fuel economy 
correction.
6. Test Fuels
    As proposed, electric vehicles and PHEVs are to be recharged using 
the supplied manufacturer method provided that the methods are 
available to consumers. This method could include the electricity 
service requirements such as service amperage, voltage, and phase. 
Commenters were supportive of the allowance for manufacturers to employ 
voltage regulators in order to reduce test to test variability with 
prior Administrator approval. Therefore, this rule will allow voltage 
regulators with prior Administrator approval, as proposed.
7. Charge Time
    Plug-in hybrid electric vehicle and electric vehicles share many of 
the same requirements and concerns. This rule will use the same general 
charge time procedure for PHEVs as expressed above for electric 
vehicles.

N. Utility Factors

1. Utility Factor Background
    Current PHEV designs use two types of energy sources: (1) An 
onboard battery, charged by plugging the vehicle into the electrical 
grid, that powers an electric motor, as well as (2) a conventional 
engine. Depending on how these vehicles are operated, they could, in 
any particular mode of operation, use ``wall'' or grid electricity 
exclusively, operate like a conventional hybrid, or operate in some 
combination of these two modes. For those metrics where a single, 
overall value is desired, a method is required to combine metrics from 
multiple modes of operation into a single value. The agencies proposed 
to use a utility factor (UF) approach for calculating these overall 
metrics. Most commenters agreed with the general approach of using UFs.
    The new labels require overall metrics for 5-year fuel savings, 
annual fuel cost, CO2 emissions, and the fuel economy and 
greenhouse gas rating. EPA has chosen to use the UF approach to 
calculate the overall values for these metrics.
    EPA has worked closely with stakeholders including vehicle 
manufacturers, the Society of Automotive Engineers (SAE), the State of 
California, the Department of Energy (DOE), and others to develop an 
approach for calculating and applying UFs. UFs were developed using 
data from the 2001 Department of Transportation ``National Household 
Travel Survey.'' A detailed method of UF development can be found in 
the Society of Automotive Engineers (SAE) J2841 ``Utility Factor 
Definitions for Plug-In Hybrid Electric Vehicles Using Travel Survey 
Data,'' as published in September 2010. Where SAEJ2841 is referenced in 
this rule, the 2010 revision is assumed to be the referenced version. 
SAE documents can be obtained at http://www.SAE.org. By using a UF, it 
is possible to determine a weighted average of the multiple modes. For 
example, a vehicle that had a charge-depleting range that corresponded 
to a UF of 0.8 would indicate that an all-electric capable PHEV 
operates in an all electric mode 80% of the time and operates in hybrid 
mode using an engine the other 20% of the time. In this example, the 
weighted average fuel economy value and cost would be influenced more 
by the electricity use than the engine operation.
    For the purposes of PHEVs, UF development makes several 
assumptions. Assumptions include: The first mode of operation is always 
electric assist or all electric drive, vehicles will be charged once 
per day, and future PHEV drivers will follow drive patterns exhibited 
by the drivers in the surveys used in SAE J2841. EPA acknowledges that 
current understanding of the above assumptions and the data upon which 
UFs were developed may change. Some commenters believed that these 
assumptions may change quickly; therefore, EPA may change the 
application of UFs in the light of new data.
2. General Application of Utility Factors
    Utility factors can be applied cycle-specific (urban/highway) and 
with respect to fleet miles or to an individual's expected driving 
behavior.
    Cycle-specific UFs portray the different driving behaviors of 
highway versus urban driving. This is to say that typical highway 
driving is generally at greater speeds and for greater distances than 
urban driving.
    Fleet UFs weight driving behavior based upon miles traveled over a 
fleet of vehicles. The data used to develop fleet UFs are distance 
weighted. Distance weighting allows for a truer reflection in 
CO2 inventories and corporate average fuel economies than an 
individual UF.
    The data used in developing individual UFs equally weight driver 
behavior data regardless of distance travelled over several days. 
Individual UFs would be used to project an ``average consumer's'' fuel 
economy or vehicle CO2 emissions, whereas the fleet UF would 
project the fuel economy or vehicle CO2 emissions of the 
average mile travelled. In summary, fleet utility UFs are better for 
estimating fleet fuel economy and CO2 inventories, and 
individual UFs are better for estimating an individual's expectation of 
fuel economy.

[[Page 39505]]

    Since cycle-specific fleet UFs best predict fleet CO2 
emission inventories, cycle-specific fleet UFs will be used in 
calculating PHEV CO2 emissions for compliance and non-dual 
fueled PHEVs CAFE calculations. CAFE dual fueled calculations and 
definitions are described in Title 49 United States Code, chapter 329. 
In chapter 329, a dual fueled vehicle fuel economy is the 50/50 
harmonic average of the fuel economy from each mode of operation.
    Since individual UFs best predict an individual's experience, 
individual UFs, specifically multi-day individual UFs, will be used in 
calculating the combined MPGe label value reflected in the fuel economy 
and greenhouse gas rating on the label. Some commenters preferred the 
use of cycle-specific individual multi-day UFs for this purpose. 
However, EPA could not mathematically justify applying the multi-day 
data to both the cycle-specific approach and the 55/45 city/highway 
average used in calculating combined label MPGe values; individual UFs 
do not lend themselves to the 55/45 city/highway split. In addition, 
the multi-day individual utility factors (MDIUFs) are listed in 
SAEJ2841, whereas only a calculation method for the cycle-specific 
MDIUF is listed in SAEJ2841. The fact that only combined MPGe values 
will be reflected on the label also limits the differences between 
MDIUFs and cycle-specific MDIUFs. This assessment was shared by some 
commenters. Therefore, MDIUFs will be used for all FE label 
applications that require the use of UFs.
3. Using Cycle-Specific Utility Factors
    Commenters requested that UFs and examples of their use be in the 
final rule. This rule contains the calculated UFs for each application. 
As proposed, cycle distance is used in calculating UFs rather than 
distance driven. In the case of derived 5-cycle adjusted values, UFs 
are adjusted appropriately to reflect the increased fuel consumption 
and decreased charge-depleting range. Detailed calculation examples and 
work sheets for each required value may follow this rule in guidance.
4. Low-Powered Vehicles
    Since PHEVs shall use UFs assigned by test cycle length, a 
provision is needed for low-powered vehicles that cannot drive the 
entire test cycle distance. Using assigned UFs for low powered vehicles 
could over-estimate UFs. Due to the possible significant difference in 
cycle versus driven distances, PHEVs using the low-powered vehicle 
provision in 40 CFR 86.115-78(b)(4) shall use the provisions for low-
powered vehicles as written in this rule.

IV. Final Label Designs and Format

    This section addresses the agencies' final decisions on the fuel 
economy and environment label designs, describing the relative 
placement of the elements on the label and discussing how the agencies 
have chosen to incorporate the decisions described in Section III. We 
show designs for gasoline, diesel, and flexible-fuel vehicles and for 
CNG, electric, plug-in electric hybrid, and fuel cell vehicles. We note 
that, if vehicle technologies come onto the market that are not 
addressed by any of these final labels, the agencies will use their 
existing authority to develop labels as needed and, to the extent 
possible, will make those labels consistent with those being finalized 
today.
    All descriptions in this section are meant to reflect the label 
designs as illustrated; if in question, please refer to the illustrated 
labels for clarification. All label designs are specific as shown; that 
is, labels in use on actual vehicles are to reflect the label elements, 
colors, shape, size, wording, and graphics, as shown and without 
change, unless otherwise noted. It is important to note that although 
all of the label designs shown in this section make use of color, this 
Federal Register notice is capable of only displaying gray-scale 
versions. Full color versions can be viewed and/or downloaded from the 
docket (search for docket number EPA-HQ-OAR-2009-0865141 or docket 
number NHTSA-2010-0087 at http://www.regulations.gov) or from the 
agencies' Web sites where all information related to this action will 
be posted (http://www.epa.gov/fueleconomy/regulations.htm and http://www.nhtsa.gov/fuel-economy). To the extent possible this section will 
describe the use of color on the labels, but interested parties should 
view the color versions to understand the full effect of the label 
designs. In addition, the labels published below may be smaller than 
the minimum size required by the final regulations.

A. Label Size and Border

    Each label will have a minimum size requirement of 4.5 inches tall 
by 7 inches wide, identical to the minimum size requirements for the 
current fuel economy label. Labels will have a black border that is 
consistent in relative size across all labels. This content includes, 
in the upper border, elements that identify the label and the vehicle 
type: from left to right, the acronyms ``EPA'' and ``DOT'', stacked as 
shown; the label title, ``Fuel Economy and Environment'' and a 
descriptor of the vehicle fuel type, using both an icon and specific 
wording--e.g., a fuel pump icon and the words ``Gasoline Vehicle.'' 
This latter element--the vehicle fuel type icon and descriptor--will 
have a blue rather than black background, to draw attention to this 
variable element for the viewer.
    The lower border includes, starting at the left, the statement, 
``Actual results will vary for many reasons, including driving 
conditions and how you drive and maintain your vehicle,'' thus 
continuing a tradition of having a statement on the label informing the 
buyer that the values on the label are not guaranteed, and reasons why 
they might vary. This is followed by a statement about the mileage and 
fuel price assumptions used to make the cost estimates on the label; 
the fuel price assumptions will be specific to the fuel type(s) and to 
the model year.\103\ The next sentence gives the mileage and 5-year 
fuel cost for the average vehicle, which is important context for the 
5-year savings or cost value shown in the right-hand corner of the 
label. For those vehicles that are classified as dual-fuel vehicles for 
the purposes of CAFE, the fact that they are dual-fuel will also be 
stated in this portion of the label. The next sentence defines MPGe. 
The final sentence states, ``Vehicle emissions are a significant source 
of climate change and smog.''
---------------------------------------------------------------------------

    \103\ As with the current fuel economy label, EPA will obtain 
the projected prices for all fuels from the Energy Information 
Administration's Short-Term Energy Outlook prior to the start of the 
model year, and will issue the values to be used on the label via 
manufacturer guidance. Values on the sample labels in this document 
are for illustrative purposes only.
---------------------------------------------------------------------------

    Beneath this text, the label border prominently displays 
``fueleconomy.gov,'' the government Web site that consumers can visit 
to obtain more information about the values on the label and to compare 
those values among vehicles, and a brief statement describing the 
function of the Web site, ``Calculate personalized estimates and 
compare vehicles.'' This Web site name and statement takes the place of 
and serves the same purpose as the former statement on the label, which 
informed the public where they could obtain copies of the Fuel Economy 
Guide to compare vehicles.\104\ The right end of the lower border 
includes the vehicle-specific QR code for use with smartphones, which, 
when scanned, will reach the same Web site. Finally,

[[Page 39506]]

the lower border includes the seals of the agencies involved in 
providing this information to the public: EPA, DOT, and DOE.
---------------------------------------------------------------------------

    \104\ 49 U.S.C. 32908(b)(1)(D) requires that the label have ``a 
statement that a booklet is available from the dealer to assist in 
making a comparison of fuel economy * * *'' This booklet is now made 
available primarily through online access, where it can be used 
directly or downloaded and printed.
---------------------------------------------------------------------------

B. Upper Box

    The upper box of the label contains the information the agencies 
have determined have the most meaning to and importance for the public. 
Key elements from the current label are grouped together on the left, 
and new elements are primarily on the right.
    Specifically, the upper left position displays fuel economy \105\; 
based on our consumer research, the agencies believe that this 
statutorily required metric is the most sought after and used by the 
public and, thus, have chosen to place it in the most prominent 
position on the label. In a departure from the current fuel economy 
label--which emphasizes separate city and highway fuel economy values--
this label emphasizes the combined city/highway value, in recognition 
of the additional information on the label which is competing for both 
physical and cognitive space. The label retains the city and highway 
fuel economy values in smaller font near the larger combined value, to 
provide continuity with the current label and in recognition of 
consumer feedback that separate city and highway fuel economy values 
may be useful if the consumer believes their driving is more weighted 
toward one or the other. Text shows the range of fuel economy values of 
the vehicle's comparable fuel economy class, in accordance with the 
EPCA requirement, as well as the highest fuel economy value among all 
vehicles.\106\ Labels for FFVs will include the clarifying statement, 
``Values are based on gasoline and do not reflect performance and 
ratings based on E85.'' The upper left corner also provides a new but 
related metric, the fuel consumption value. We chose to situate fuel 
consumption near fuel economy to emphasize the relationship between 
these two values and help consumers begin to understand this new fuel 
consumption metric. Those vehicles that are subject to the gas guzzler 
tax \107\ will include the dollar value of that tax and the words ``gas 
guzzler tax'' next to fuel consumption value.
---------------------------------------------------------------------------

    \105\ Fuel economy is displayed as MPG for liquid fuels and MPGe 
for non-liquid fuels.
    \106\ 49 U.S.C. 32908(b)(1)(C).
    \107\ 40 CFR 600.314.
---------------------------------------------------------------------------

    This portion of the label has a different format for vehicles that 
have two modes of consuming energy, such as plug-in hybrid electric 
vehicles. For these vehicles, the energy use of the first (charge-
depleting) mode is conveyed separately from the energy use of the 
second (charge-sustaining) mode. These values are coupled with the 
likely cruising range of the first mode on a full charge, displayed on 
the driving range bar just below these values. Each mode contains the 
combined city/highway MPG or MPGe value, the fuel consumption value(s), 
and a title describing the fuel type (e.g., ``Electricity,'' 
``Electricity + Gasoline,'' ``Gasoline Only'') and the appropriate fuel 
type icons. We believe that this combination of information conveys in 
the most succinct and accurate way both the energy use that the 
consumer can expect, the fuels needed to achieve those values, and 
comparative MPG and MPGe metrics. Finally, the time needed for a full 
charge will be displayed near the MPGe for the first (charge-depleting) 
mode, since charging is linked directly to the energy consumption in 
the first mode.
    For those labels displaying driving range, the range bar graphics 
will be placed directly below the fuel economy and fuel consumption 
values. This placement was chosen because of the correlation between 
range and energy use and in recognition of the significant public 
interest in range for advanced technology vehicles. All PHEV labels 
show an all electric range value. For those PHEVs with no blended 
operation (i.e., electricity plus gasoline operation), the phrase all 
electric range is on the driving range bar and the all electric range 
numerical value is just below the appropriate point on the driving 
range bar. For those PHEVs with blended operation, the phrase ``All 
electric range = ---- miles'' is just below the driving range bar, and 
the total range for electricity plus gasoline operation is shown on the 
driving range bar. For vehicles that utilize electricity, charge time 
is also placed in the left portion of the upper box.
    The right side of the upper box contains the five-year fuel cost 
saving value, in a relatively large size, to introduce this new metric 
in a way that will maximize the opportunity for it to be recognized and 
used.

C. Lower Box

    The lower left portion of the label provides the annual fuel cost 
estimate, which, like fuel economy, is contained on the current label 
as required by EPCA.
    The lower right portion of the label contains the slider bars that 
consumers can use to determine the relative fuel economy and 
environmental ratings of a vehicle. The fuel economy and greenhouse gas 
rating slider bar, discussed above in Section III.C., is placed on the 
left.. This slider bar conveys the estimated fuel economy and tailpipe 
greenhouse gas emissions of the vehicle relative to all new vehicles, 
in accordance with the EISA requirement.\108\ The fuel economy and 
greenhouse gas ratings are grouped on a single slider bar because they 
are closely related to each other and the agencies believe that fewer 
slider bars reduce the risk of confusion and information overload.
---------------------------------------------------------------------------

    \108\ 49 U.S.C. 32908(g)(1)(A)(ii).
---------------------------------------------------------------------------

    For most vehicles, including all gasoline vehicles, the fuel 
economy and greenhouse gas ratings will be the same and will share a 
single marker on the slider bar. Some non-gasoline vehicles may have 
slightly different fuel economy and greenhouse gas ratings, and in 
these cases two different markers will be used. Immediately below the 
fuel economy and greenhouse gas rating will be text giving the grams 
CO2 per mile tailpipe value for the vehicle, the lowest 
tailpipe CO2 gram per mile value among all vehicles. EVs will also 
include the statement, ``Does not include emissions from producing 
electricity.'' Vehicles fueled without grid electricity will include 
the statement, ``Producing and distributing fuel also create emissions; 
learn more at fueleconomy.gov.'' For PHEVs, the text ``& electricity'' 
will be added after the word ``fuel.''. This statement was added in 
response to comments that consumers may be interested in learning more 
about vehicle upstream emissions impacts, and in order to facilitate 
potential harmonization with the California Air Resources Board's 
Environmental Performance Label.
    The right portion of the lower part of the label contains the 
relative one-to-ten slider bar for tailpipe emissions of smog-forming 
``other emissions'' pollutants.

D. Example Labels

    Note: Example labels do not represent real vehicles or the 
numerical values to be included on any specific label.

BILLING CODE 6560-50-P

[[Page 39507]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.001

[GRAPHIC] [TIFF OMITTED] TR06JY11.002

[[Page 39508]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.003

[GRAPHIC] [TIFF OMITTED] TR06JY11.004

[[Page 39509]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.005

[GRAPHIC] [TIFF OMITTED] TR06JY11.006

[[Page 39510]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.007

[GRAPHIC] [TIFF OMITTED] TR06JY11.008

[[Page 39511]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.009

[GRAPHIC] [TIFF OMITTED] TR06JY11.010

BILLING CODE 6560-50-C

V. Additional Related EPA Actions

A. Comparable Class Categories

    EPCA requires that the label include the range of fuel economy of 
comparable vehicles of all manufacturers.\109\ EPA's comparable class 
structure provides a basis for comparing a vehicle's fuel

[[Page 39512]]

economy to that of other vehicles in its class.\110\ The definitions of 
vehicle classes were last revised by EPA's 2006 labeling final rule. 
That action required two specific changes to the vehicle class 
structure. Separate new classes were added for sport utility vehicles 
(SUVs) and minivans (these were previously included in the Special 
Purpose Vehicle category), and the weight limit for Small Pickup Trucks 
was increased from 4,500 pounds gross vehicle weight rating (GVWR) to 
6,000 pounds GVWR. These were non-controversial changes that were 
generally seen as a move to keep the class structure as current as 
possible given the changing vehicle market. The resulting structure is 
one that contains nine car categories, five truck categories, and a 
``special purpose vehicle'' category. It should also be noted that the 
EPA-defined vehicle classes are used only to provide consumer 
information about fuel economy and serve no other regulatory purpose.
---------------------------------------------------------------------------

    \109\ 49 U.S.C. 32908(b)(1)(C).
    \110\ 40 CFR 600.315-08.
---------------------------------------------------------------------------

    Consistent with the distinction currently made between small and 
large pickup trucks, EPA proposed to divide the SUV class into small 
and large SUVs. We do not believe that it is appropriate, for example, 
to include a Toyota RAV4 in the same class as a Toyota Sequoia, or a 
Ford Escape in the same class as a Ford Expedition. Starting with the 
2013 model year the single SUV category currently described in the 
regulations is replaced by the two following proposed categories:
     Small sport utility vehicles: Sport utility vehicles with 
a gross vehicle weight rating less than 6,000 pounds.
     Standard sport utility vehicles: Sport utility vehicles 
with a gross vehicle weight rating of 6,000 pounds up to 10,000 pounds.

Although the standard pickup truck class only goes up to 8,500 pounds 
GVWR, SUVs between 8,500 and 10,000 pounds GVWR are defined as medium-
duty passenger vehicles, and they are subject to fuel economy labeling 
starting with the 2011 model year.

    EPA received generally favorable comments regarding this proposed 
change to the class structure and is finalizing these provisions as 
proposed.

B. Miscellaneous Amendments and Corrections

    EPA proposed a number of non-controversial amendments and 
corrections to the existing regulations. These received essentially no 
attention in the public comments. EPA is thus finalizing these 
provisions essentially as proposed.
    First, we are making a number of corrections to the recently 
required regulations for controlling automobile greenhouse gas 
emissions.\111\ These changes include correcting typographical errors, 
correcting some regulatory references, and adding some simple 
clarifications. Some of these changes are made to regulatory sections 
in 40 CFR Part 86, which does not include provisions related to 
labeling. For convenience we have included the table below identifying 
those changes made in 40 CFR Part 86. Similar corrections were also 
made throughout sections in 40 CFR Part 600, but many of these sections 
are integrated with the labeling calculations and provisions and less 
amenable to calling out in a table. For example, errors in the 5-cycle 
carbon-related exhaust emissions (CREE) calculations were corrected in 
600.114, but at the same time, for labeling purposes, this section of 
the regulations was revised to enable the calculation of 5-cycle 
CO2 values. Similarly, a rounding error is corrected in 
600.207 while that section is also revised to include requirements for 
5-cycle CO2 calculations. The calculations in 40 CFR Part 
600 have increased dramatically in complexity recently, and for that 
reason manufacturers should carefully evaluate the equations and 
calculations and ensure that they are using the appropriate and 
corrected versions. In addition to calculating model type MPG values 
for CAFE (two cycle) and labeling (five cycle), the same must now be 
done for CREE (two cycle) and label CO2 (five cycle).
---------------------------------------------------------------------------

    \111\ 75 FR 25324, May 7, 2010.

    Table V-1--Table of Non-Substantive Amendments to 40 CFR Part 86
                         Greenhouse Gas Program
------------------------------------------------------------------------
    Regulatory Reference        What was changed      Reason for change
------------------------------------------------------------------------
Part 85:
    85.1902(b)(2)...........  Inserted the words    To clarify the
                               ``greenhouse gas''.   applicability of
                                                     the provisions of
                                                     the paragraph.
Part 86:
    86.165-12(d)(4).........  Inserted a sentence   This is a recognized
                               allowing the use of   and viable option
                               a constant velocity   for CO2 measurement
                               sampling system to    that was not
                               measure CO2.          included in the GHG
                                                     final rule.
    86.1818-12(b)(3)........  Inserted language     To ensure that
                               aligning the EPA      manufacturers are
                               definition of         treated identically
                               ``manufacturer''      by EPA and NHTSA
                               with the NHTSA        programs.
                               definition.
    86.1818-12(c)(1)........  Inserted the words    To clarify that CO2
                               ``full useful         fleet average
                               life'' in three       standards are full
                               locations.            useful life
                                                     standards.
    86.1818-12(d)...........  Changed ``600.113-    Reference was
                               08(g)(4)'' to         incorrect.
                               ``600.113-12(g)(4)'
                               '.
    86.1823-08(m)(2)(iii)     Inserted the          Resolves a problem
     and (m)(3).               parenthetical ``(or   where the existing
                               derived from)'' in    regulations require
                               three locations.      the use of
                                                     potentially
                                                     inappropriate DFs
                                                     (e.g., where an
                                                     additive NO2 DF
                                                     might be greater in
                                                     magnitude than the
                                                     N2O test result to
                                                     which it is
                                                     applied).
    86.1841-01(a)(3)........  Inserted the words    To clarify that CO2
                               ``full useful         certification
                               life''.               standards are full
                                                     useful life
                                                     standards.
    86.1848-10(c)(9)(i).....  Changed reference     Reference was
                               ``86.1865-12(k)(7)'   incorrect.
                               ' to ``86.1865-
                               12(k)(8)''.
    86.1865-12(a)(1) and (d)  Changed ``86.1801-    Reference was
                               12(j)'' to            incomplete.
                               ``86.1801-12(j) or
                               (k)''.
    86.1865-12(k)(7)(i).....  Changed ``(k)(4)''    Reference was
                               to ``(k)(4) and       incomplete.
                               (k)(5)''.
    86.1865-12(k)(8)(iii)...  Changed references    Reference was
                               to paragraph (k)(7)   incorrect.
                               to refer to
                               paragraph (k)(8).

[[Page 39513]]

 
    86.1867-12(a)(1)(iii)(A)  Removed and reserved  Requirement to use
                               the contents of       actual sales is not
                               this paragraph.       required under
                                                     Pathway 1, and in
                                                     all other cases the
                                                     manufacturer should
                                                     track vehicles
                                                     produced and
                                                     delivered for sale.
    86.1867-12(a)(3)(iv)(A).  Inserted the words    Statement should
                               ``California and''    refer to California
                               before the text       and the section 177
                               ``the section 177     states, not just
                               states''.             the section 177
                                                     states.
    86.1867-12(a)(3)(iv)(F).  Deleted the sentence  Statement was not
                               ``Section 600.510-    valid and
                               12(j)(3) of this      referenced a non-
                               chapter shall not     existent paragraph.
                               apply.''.
    86.1867-12(a)(3)(vi)....  In the definition     Reference was
                               for CO2 Credit        incorrect.
                               Threshold changed
                               the reference to
                               ``(a)(3)(vi)'' to
                               ``(a)(3)(iv)''.
                              In the definition of  Reference was
                               Manufacturers Sales   incorrect.
                               Weighted Fleet
                               Average CO2
                               Emissions changed
                               the reference to
                               ``(a)(3)(vii)'' to
                               ``(a)(3)(v)''.
                              Inserted the words    Statement should
                               ``California and''    refer to California
                               before the text       and the section 177
                               ``the section 177     states, not just
                               states * * *''.       the section 177
                                                     states.
    86.1867-12(a)(4)........  Inserted the words    Statement should
                               ``California and''    refer to California
                               before the text       and the section 177
                               ``the section 177     states, not just
                               states * * *''.       the section 177
                                                     states.
    86.1867-12(b)(2)........  Struck existing text  Corrected an error
                               in paragraph (b)(2)   where the GHG final
                               and replaced with     rule inadvertently
                               new text.             finalized incorrect
                                                     language that was
                                                     inconsistent with
                                                     the proposal and
                                                     the intent stated
                                                     in the preamble to
                                                     the final rule.
    86.1867-12(d)(1)........  Changed               Misspelled word.
                               ``Administratory''
                               to
                               ``Administrator''.
------------------------------------------------------------------------

    Second, we are correcting an oversight from the 2006 labeling rule 
regarding the applicability of testing requirements to independent 
commercial importers (ICIs). Currently several vehicle categories 
(dedicated alternative fuel, dual fuel while operating on alternative 
fuel, and MDPVs) are exempted from having to perform full 5-cycle fuel 
economy testing.\112\ These categories are allowed to use the ``derived 
5-cycle'' method, whereas other vehicles must use data from all five 
test cycles at certification to perform an evaluation that determines 
whether the test group can use the derived 5-cycle method or whether 
they must complete full 5-cycle testing. The reason for exempting these 
vehicles is that the evaluation required at emissions certification 
requires the use of all 5 cycles as run for emissions certification, 
but these categories are not subject to the SFTP requirements, and thus 
such vehicles do not perform two of the five test procedures (the US06 
high speed/acceleration test and the SC03 air conditioning test). Thus 
when EPA required the 2006 label rule we recognized that these 
categories would not have the data required to perform the 5-cycle fuel 
economy evaluation, and we decided to exempt them from 5-cycle fuel 
economy testing. However, this same exemption should have been applied 
to ICIs. Like the vehicle categories noted above, vehicles imported by 
ICIs are not required to perform the SFTP emission tests and thus also 
will not have the necessary data to perform the 5-cycle fuel economy 
evaluation. Therefore, we are extending the allowance to use the 
derived 5-cycle method to ICIs.
---------------------------------------------------------------------------

    \112\ See 40 CFR 600.115-08.
---------------------------------------------------------------------------

    Third, we are clarifying the altitude applicability of evaporative 
emission standards. This clarification is needed in part because of an 
error that was made in the rulemaking requiring greenhouse gas emission 
standards for light-duty vehicles and trucks, and in part because the 
original language was found to lack sufficient clarity. Revisions to 
the regulations in 86.1810-09 to accommodate greenhouse gas provisions 
unintentionally eliminated a phrase regarding the high altitude 
applicability of the ``Tier 2'' evaporative emission standards.\113\ 
The omission of this phrase was pointed out by auto manufacturers after 
the greenhouse gas rulemaking was finalized. Upon further review of the 
issue, EPA concluded that simply re-inserting the omitted language did 
not sufficiently improve clarity, since the original structure of the 
regulatory language as required in the 2007 rulemaking was unclear as 
well.\114\ Simply stated, the intent of the language finalized in the 
2007 rulemaking (before clarity was further confounded by the 2010 
greenhouse gas rulemaking) was to state that the evaporative standards 
in 86.2011-09(e) apply at low altitude only, and the ``Tier 2'' 
standards in 86.2011-04(e) continue to apply at high altitude for the 
2009 and later model years. Unfortunately, because of the construction 
of the regulations and the way the model year applicability of section 
references work (see 40 CFR 600.004-77), it is unclear whether the 
reference in the deleted statement to 86.1811-04(e) is static or 
dynamic. In most cases, when a section has been superseded (as is the 
case for 86.1811-04) we expect that the more recent section (i.e., 
86.1811-09) is the one that should be used. However, in this case the 
intent was that the reference remain static, referring not to the 
evaporative emission standards that took effect in the 2009 model year, 
but to the standards that took effect in the 2004 model year. Basically 
the 2004 ``Tier 2'' standards were promulgated as ``all-altitude'' 
standards, but were superseded at low altitude by the 2009 standards, 
thus leaving the 2004 standards in place at high altitude. We believe 
we have appropriately clarified the regulations to reflect the original 
intent.
---------------------------------------------------------------------------

    \113\ The phrase, which reads``Tier 2 evaporative emission 
standards apply at high altitude conditions as specified in Sec.  
86.1810-01(f) and (j), and Sec.  86.1811-04(e).'', can be found in 
the originally promulgated regulations at 72 FR 8562 (February 26, 
2007). The language as modified by the light-duty greenhouse gas 
rulemaking can be found at 75 FR 25686 (May 7, 2010) and in the Code 
of Federal Regulations at 40 CFR 86.1810-09(f).
    \114\ 72 FR 8428 (February 26, 2007).
---------------------------------------------------------------------------

    Fourth, we are taking steps to further clarify the regulatory 
language. This involves removing several sections that apply only for 
model years before 2008 and moving or combining several of the 
remaining sections to provide a clearer organization. We are also being 
more careful with regulatory references pointing to other sections 
within 40 CFR Part 600 and to sections in 40 CFR Part 86. This largely 
addresses the concern that regulatory sections numbered for

[[Page 39514]]

certain model years can cause references to be incorrect or misleading 
over time. We are relying on the rounding convention as specified for 
engine testing in 40 CFR Part 1065. Similarly, we are relying on the 
hearing procedures specified in 40 CFR Part 1068. These changes allow 
us to centralize provisions that have general applicability to support 
our effort to have a consistent approach across programs. The 
regulations also include a streamlined set of references to outside 
standards (such as SAE standards). We are also including the most 
recent updates for the ASTM standards we reference in 40 CFR Part 600. 
We are not intending to make any substantive changes to the regulatory 
provisions affected by these administrative changes and are not 
reopening the prior rules for any of those provisions.

VI. Impacts of Label Requirements

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

A. Costs Associated With This Rule

1. Testing Costs
    Testing requirements for vehicles are not new. Advanced technology 
and alternative fuel vehicles have been required to undergo testing 
requirements in the past. For advanced technology vehicles, though, the 
test procedures have not previously been standardized; they have been 
handled on a case-by-case basis. Because the agencies expect more 
advanced technology vehicles to come to market, this rule codifies 
testing procedures, as discussed in sections III.M. and III.N. of this 
preamble. The testing costs described here therefore are not completely 
new costs for manufacturers, since they would have to test the vehicles 
even in the absence of this rule, but the procedures have not 
previously been established. The cost estimates are included here 
because they have previously not been presented. The agencies received 
no comments on the cost estimates for the vehicle testing to support 
the label program.
    As discussed in the NPRM, the analysis of the projected costs of 
this rule follows conceptually the approach in the 2006 (``five-
cycle'') fuel economy labeling rule. Increased on-going operations and 
maintenance (O&M) costs and labor hours result from increases in 
testing costs for electric vehicles (EVs) and plug-in hybrids (PHEVs) 
specified in this rule. We also allow for the costs of increased 
facility capacity to accommodate the increased testing time involved 
for these two categories of vehicles. Startup costs are treated as 
capital costs and are amortized over ten years at 3% and 7% interest. 
Startup costs for this rule include testing equipment for those 
manufacturers subject to new testing. As an aid to the analysis and to 
help articulate the range of uncertainty, we include both low and high 
cost estimates for each of these cost and labor hour elements. The cost 
estimates, excluding potential cost savings from harmonization of label 
requirements with California and the Federal Trade Commission, are $0.7 
million per year for the low estimate and $5.5 million per year for the 
high estimate. For details of this analysis, see the ``Final Supporting 
Statement for Information Collection Request, Fuel Economy Labeling of 
Motor Vehicles'', in the docket.\115\
---------------------------------------------------------------------------

    \115\ U.S. Environmental Protection Agency, Office of 
Transportation and Air Quality. ``Final Supporting Statement for 
Information Collection Request, Fuel Economy Labeling of Motor 
Vehicles (Final Rule), EPA ICR 2392.02.'' Compliance and Innovative 
Strategies Division, Transportation and Climate Change Division, and 
Assessment and Standards Division, April 2011.
---------------------------------------------------------------------------

(a) Testing Requirements for Electric Vehicles
    To date, EPA has performed some fuel economy testing connected with 
certification applications for electric vehicles using the procedures 
developed by the Society of Automotive Engineers (SAE), specifically 
SAE J1634, as published October 2002. The proposal spelled out EV 
testing requirements that are similar to SAE J1634. This rule finalizes 
the test procedures.
    In estimating the costs of this action, there is no clear baseline 
cost that manufacturers of EVs would have incurred in satisfying 
Federal requirements, because fuel economy measurements were either 
optional \116\ or not specific as to method (except to satisfy FTC 
requirements). For purposes of the analysis, we assume these EV costs 
are entirely new costs rather than increments to pre-existing costs. 
Here and in the facility costs section, this also means we assume no 
carry-over applications for EVs. Both these assumptions are more likely 
to lead to an overstatement of costs than an understatement.
---------------------------------------------------------------------------

    \116\ Although fuel economy labels are statutorily required for 
all vehicles, the regulations have, prior to model year 2012, 
included a de minimus exemption for very small numbers of EVs 
(except those built by large manufacturers). See 40 CFR 600.001-08.
---------------------------------------------------------------------------

    The NPRM described the use of SAE J1634 as the basis for the costs 
of testing procedures for EVs, based on range testing requirements of 
the Federal Trade Commission for ``alternative fueled vehicles.'' 
Preparation costs were estimated to be $3,163 and 30 hours per vehicle, 
per Information Collection Request (ICR) 0783.54 (OMB 2060-0104), the 
certification ICR for conventional vehicles. The low and high EV test 
distances for Federal Test Procedure (FTP) and Highway Fuel Economy 
Test (HFET) tests are estimated as 50 to 250 miles. For purposes of 
this estimate, the cost of an FTP/HFET pair is $1,860, allocated 70% to 
the FTP and 30% to the HFET and incremented either by 50 or 250 divided 
by 7.45 (the distance of a normal FTP), or by 50 or 250 divided by 10.3 
(the distance of the normal HFET). These increases are applied to an 
estimated five to eight EV families in the years through MY2013. Labor 
hours, estimated at 30 hours per FTP/HFET pair, are allocated and 
incremented in a similar manner. The bottom line is a cost between 
$75,300 and $486,784 and 1,073 to 7,625 hours, per year for the EV 
industry. With the cost of labor estimated to be $61.49 per hour, labor 
costs would add between $65,988 and $468,871 in annual costs. No 
comments were received on these estimates.
(b) Testing Requirements for Plug-In Hybrid Electric Vehicles
    As explained in Section III.M., the proposed EPA test procedure for 
PHEVs is an extension of the existing test procedure for hybrid 
vehicles. Off-cycle tests are already required for test groups that do 
not meet the ``litmus test;'' others would use the derived five-cycle 
adjustment. Hybrid vehicles already do FTP and HFET tests for fuel 
economy determination. The new FTP procedure for PHEVs would 
essentially run repeated FTPs until the charge is

[[Page 39515]]

depleted. This is the ``charge-depleting'' operation, when the vehicle 
is mainly running on its battery. The battery would then be recharged, 
and a single additional four-phase FTP would be conducted in what is 
denominated as the ``charge-sustaining'' operation. Following this, the 
vehicle will be recharged, if necessary, by running any appropriate 
test cycle followed by HFET cycles in charge-depleting operation, 
followed by a cycle in charge-sustaining operation.
    For purposes of this cost analysis, the charge-sustaining FTP and 
HFET cycles along with potential other cycles mandated by emissions and 
fuel economy testing requirements are considered to be continuations of 
existing requirements. The cost increment due to this proposal 
consequently derives entirely from the increased testing time in 
depleting mode. The duration of the depleting modes is estimated as 
7.45 to 50 miles over the repeated 7.45-mile FTP or 10.3-mile HFET test 
cycles. These together, applied to 5 to 8 families with no carryovers, 
add an estimated $8,528 to $80,564 in operation and maintenance (O&M) 
costs and 138 to 923 labor hours to existing hybrid testing costs. With 
the cost of labor estimated to be $61.49 per hour, labor costs would 
add between $8,458 and $56,764 in annual costs.
    The O&M costs and labor hours discussed above are summarized in 
Table VI.A.1-1:
2. Equipment and Facility Costs

                                          Table VI.A.1-1--Testing Costs
                                   [Labor and O&M costs for running the tests]
----------------------------------------------------------------------------------------------------------------
                                                              Increase in number of tests and hours
                                               -----------------------------------------------------------------
            Vehicle type/test cycle                                 Min cost                         Max cost
                                                Min tests/hours     increase     Max tests/hours     increase
----------------------------------------------------------------------------------------------------------------
EV:
    Prep......................................              5.0         $18,065              8.0         $28,904
    FTP.......................................              5.0          43,691              8.0         349,530
    HFET......................................              5.0          13,544              8.0         108,350
    Labor.....................................            218            65,988          1,748           468,871
                                               -----------------------------------------------------------------
        EV Total..............................  ...............         141,288  ...............         955,655
PHEV:
    FTP.......................................              5.0           6,510              8.0          50,563
    HFET......................................              5.0           2,018              8.0          30,001
    Labor.....................................             33             8,458            218            56,764
                                               -----------------------------------------------------------------
        PHEV Total............................  ...............          16,986  ...............         137,328
                                               -----------------------------------------------------------------
            Total.............................  ...............         158,273  ...............       1,092,983
----------------------------------------------------------------------------------------------------------------

    As estimated in the proposal, each manufacturer who has not 
previously produced hybrid-electric vehicles is assumed to need new 
testing equipment costing $25,000 for an ammeter and $50,000 for 
voltage stabilizers; we estimate that 5-8 manufacturers will fall in 
this category. No comments were received on this estimate.
    In addition to new equipment, establishing testing requirements for 
EVs and PHEVs will in theory require expanded testing facilities for 
those manufacturers choosing to produce and sell them in the U.S. 
Because the cost of new facility capacity is highly dependent on 
manufacturer-specific factors (the costs of capital, the availability 
of land, the structure of work shifts, the existing excess capacity, 
etc.), we use the approximation of unitizing increased test costs by 
assuming that a facility capable of performing 750 FTP/HFET pairs would 
cost $4 million. Here, the new tests are deemed to require these 
facilities in proportion to the increases in test time, and the costs 
are then annualized over ten years and amortized at 3% and 7% interest 
compounded monthly. This assumption is more likely to produce an 
overestimate of costs rather than an underestimate, since it does not 
attempt to account for the current excess capacity that exists in 
manufacturers' current test facilities. We assume that there is no 
excess capacity in our analysis. Note that other features of the EV and 
PHEV test cycles, such as recharging times, have been harmonized with 
existing test protocols. Furthermore, consistent with other information 
burden analyses for the emissions and fuel economy programs, we 
consider these as ongoing rather than startup costs (i.e., as the 
facilities depreciate they are continually being replaced), another 
conservative assumption. Applying these costs to a low and high 
estimate of 5 to 8 EV families and 5 to 8 PHEV families per year yields 
an annualized facilities cost between $25,278 and $210,779 per year. No 
comments were received on these estimates.
    Facility and equipment costs are summarized in Table VI.A.2-1:

               Table VI.A.2-1--Increase in Test Facilities
------------------------------------------------------------------------
     Undepreciated capital costs           Minimum           Maximum
------------------------------------------------------------------------
EV test distance increase...........          $154,210        $1,233,683
PHEV test distance increase.........            22,977           246,737
Updating Information systems........           768,000           960,000
Ammeter/stabilizer..................           375,000           600,000
                                     -----------------------------------
    Total...........................         1,320,188         3,040,420
Amortized, 10 yrs @ 3%..............           154,766           356,430

[[Page 39516]]

 
Amortized, 10 yrs @ 7%..............           187,965           432,887
------------------------------------------------------------------------

3. Costs Associated With New Labels
(a) Startup Costs
    Startup costs are counted as one-time costs that are amortized or 
discounted at an interest rate of 3% or 7% over ten years. The proposal 
separated the costs for updating information systems and testing 
equipment from the costs of label redesign, and estimated total startup 
costs between $8.1 and 8.6 million. When annualized and subjected to 7% 
loan repayment/discounting, the startup costs total in the proposal was 
estimated at $1.16 to $1.22 million per year.
    Written comments from GM did not break down costs in these 
categories. Instead, their ``initial estimate,'' which included 
designing, releasing, testing, and validating the system, would cost 
``more than $800,000.'' Suzuki estimated its costs as $70,000 for 
software, $111,144 for printers, and $20,250 for IT costs, for a total 
of $201,394. Because color printers are no longer required, these costs 
are therefore estimated to be $90,250. Other cost estimates provided to 
the agencies for non-color printing included $174,000 from one 
manufacturer and $500,000 from another.
    For this cost analysis, the agencies are using these two estimates 
as upper and lower bounds specifically of additional startup costs for 
the labels. These estimates are then applied to the universe of 
separate manufacturer entities subject to the rule. Many specific 
automotive brands are parts of marketing groups or are owned and 
managed by other, parent companies. Allowing for these relationships, 
the agencies estimate that the rule would apply to 24 manufacturers and 
11 independent commercial importers (ICIs) importing nonconforming 
vehicles into the U.S. for sale. Applied to 35 companies, then, the 
label redesign cost is estimated to be between $3.2 million and $28 
million. When annualized at 3% and 7% over ten years, these costs are 
estimated to be between $370,000 and $3,987,000 per year.
(b) Printing Costs for New Labels
    The proposed labels in the NPRM included different colors, 
reflecting either different technologies or differences in fuel economy 
and greenhouse gas emissions. Auto companies commented that the use of 
multiple colors would add significantly to label costs and lead time, 
due to the need to purchase new printers and to increased maintenance 
costs. In addition, they expressed concern that colors in the labels 
might fade, that they might be difficult to see through tinted windows, 
that the increased complexity of these labels would lead to compliance 
concerns, and that some colors might deter consumers from considering 
some vehicles. As discussed in Section III.J. of this preamble, the 
agencies have decided for the final label to use one color (in addition 
to black) that can be pre-printed on the feedstock that will go into 
the printers used for the vehicle labels. The acceptance of this 
approach by many auto manufacturers suggests that the addition of color 
in a manner that allows it to be pre-printed on feedstock does not have 
a material effect on costs; indeed, some manufacturers already use a 
color besides black. Thus, printing costs associated with the final 
label are not expected to change from the baseline costs. Because of 
this change in label requirements from the proposal, the agencies 
believe that there will be no additional costs associated with label 
printing. Thus, the additional printing costs estimated in the proposal 
to be $294,690 to $1,274,634 per year are now estimated to be zero.
4. Cost Summary
    Table VI.A.4-1 summarizes the costs presented here. The total costs 
of this rule, excluding labor, are estimated to be between $0.7 and 
$5.5 million per year.

      Table VI.A.4-1--Total Annual Cost Increase--7% Discount Rate
------------------------------------------------------------------------
                                        Low estimate      High estimate
------------------------------------------------------------------------
Testing: O&M, including labor costs.          $158,274        $1,092,983
Testing: Equipment and Facilities...           187,965           432,887
Label design startup................           450,000         3,987,000
                                     -----------------------------------
    Total Annual Cost...............           796,239         5,512,870
------------------------------------------------------------------------

              Total Annual Cost Increase--3% Discount Rate
------------------------------------------------------------------------
                                        Low estimate      High estimate
------------------------------------------------------------------------
Testing: O&M, including labor costs.          $158,274        $1,092,983
Testing: Equipment and Facilities...           154,766           356,430
Label design startup................           370,000         3,282,000
                                     -----------------------------------
    Total Annual Cost...............           683,040         4,731,413
------------------------------------------------------------------------

B. Impact of Requiring One Label To Meet EPCA/EISA

    EPCA and EISA create similar but not necessarily identical 
requirements for labeling vehicles. EPA conducts a labeling program 
under EPCA, and NHTSA is required to conduct a labeling program under 
EISA, in consultation with EPA. While the agencies could require that 
manufacturers produce two separate labels to meet the requirements of 
the statutes, much of the information on the two labels would be 
duplicative. In addition, two different fuel economy

[[Page 39517]]

labels might confuse vehicle purchasers, frustrating the purpose of 
providing fuel economy information to purchasers. Requiring that auto 
manufacturers put two fuel economy labels on vehicles would also crowd 
the limited labeling space on vehicles. For these reasons, EPA and 
NHTSA are addressing both the EPCA and the EISA requirements in one 
label.
    Because NHTSA's labeling under EISA is a new requirement that has 
not previously been implemented, there is no cost reduction associated 
with the proposal to use a joint label. The use of the joint label 
avoids a cost increase that would result from two separate labels. EPA 
and NHTSA are not including this cost saving in the cost analysis 
because we believe that the benefits of coordinating labeling 
requirements outweigh any possible disadvantages.
    Section III.L. discusses harmonization of this label with labeling 
requirements for the Federal Trade Commission (FTC) and the State of 
California. To the extent that the new label can reduce the need for 
separate labels due to these requirements, there are additional cost 
reductions associated with this rule. The California Air Resources 
Board in 2007 estimated the annual cost of its label to be $245,000 per 
year for all companies operating in California.\117\ No cost estimate 
is available for the FTC label. If the new label satisfies the 
requirements of these agencies, then the costs will be lower than those 
reported here, which do not take into account this harmonization, by 
the savings associated with producing those labels.
---------------------------------------------------------------------------

    \117\ State of California, Air Resources Board. ``Staff Report: 
Initial Statement of Reasons for Rulemaking: Proposed Amendments to 
the Smog Index Vehicle Emissions Label,'' May 4, 2007, http://www.climatechange.ca.gov/publications/arb/2007-06-21_isor.pdf, 
(last accessed May 3, 2010).
---------------------------------------------------------------------------

C. Benefits of Label Changes

    The NPRM discussed the difficulties of quantitatively estimating 
benefits of this rulemaking. Measuring benefits would depend on 
predicting what vehicles consumers would purchase in the absence of the 
rule; predicting what vehicles consumers would purchase with 
implementation of the rule; and then measuring the benefits associated 
with the changed vehicle purchases. One commenter (the New York 
University Law School Institute for Policy Integrity) argued that the 
agencies should quantify these effects, on the ground that the effects 
of the rule on the economy are likely to be significant: if the revised 
labels lead even to small changes in behavior, the effects on fuel 
purchases alone would be large.
    The agencies recognize that Executive Order 13563 directs agencies 
``to use the best available techniques to quantify anticipated present 
and future benefits as accurately as possible.'' In this context, 
however, quantitative information is not available, and the agencies 
have therefore chosen instead to continue with a qualitative assessment 
of benefits. It is difficult to develop a good baseline for the fleet 
using the existing label, partly because the existing label is not 
designed to incorporate advanced technology vehicles. It is even more 
difficult to develop a comparison for the fleet with the new labels, 
because the effects of label designs on vehicle purchases are not 
known. Thus, any assessment of quantitative effects of label design on 
vehicle sales involves a great deal of speculation. The agencies 
believe that informed choice is an end in itself, even if it is hard to 
quantify; the agencies also believe that the new labels will provide 
significant benefits for consumers, including economic benefits, though 
these benefits cannot be quantified at this time.
    The existing label is not suitable for providing information on 
advanced technologies, and it does not include new information required 
by EISA; it must be revised. Sections III and IV of this preamble 
discuss the rationales for the label that is being required. The 
benefits of this rule will come from the improved provision of 
information to vehicle buyers and from more informed consumer decisions 
resulting from the changes. To the extent that the new labels fulfill 
these functions, they will save consumers money, help them find the 
most satisfactory vehicles for their needs, and probably contribute to 
improvements in environmental quality. These effects will be difficult 
to measure even after rule implementation, because these labels are 
being introduced at the same time that new vehicle technologies and 
fuels are coming into the market and vehicles' fuel economy is 
improving. Nevertheless, the agencies' research suggests that a well-
designed label will assist people in making informed decisions about 
their vehicles.

D. Summary of Costs and Benefits

    The primary benefits associated with this rule are associated with 
improved consumer decision-making resulting from improved presentation 
of information. At this time, EPA and NHTSA do not have data to 
quantify these impacts.
    The primary costs associated with this proposed rule come from 
revisions to the fuel economy label and additional testing procedures. 
These costs, not including any cost reductions from harmonizing label 
designs with California or the FTC, are estimated to be $0.7 to $5.5 
million per year. The agencies have concluded, consistent with 
Executive Order 13563, that the likely benefits justify the costs.

VII. Agencies' Statutory Authority and Executive Order Reviews

A. Relationship of EPA's Requirements With Other Statutes and 
Regulations

1. Automobile Disclosure Act
    The Automobile Information Disclosure Act (AIDA) requires the 
affixing of a retail price sticker to the windshield or side window of 
new automobiles indicating the Manufacturer's Suggested Retail Price, 
the ``sticker price.'' \118\ Additional information, such as a list of 
any optional equipment offered or transportation charges, is also 
required. The Act prohibits the sticker from being removed or altered 
prior to sale to a consumer.
---------------------------------------------------------------------------

    \118\ More commonly known as the Monroney Act (Senator Mike 
Monroney was the chief sponsor of the Act) or Price Sticker Act. See 
15 U.S.C. 1231-1233.
---------------------------------------------------------------------------

    Under EPCA, EPA may allow manufacturers of new automobiles to 
comply with the EPCA labeling requirements by placing the fuel economy 
information on the label required by AIDA.\119\ Normally, the price 
sticker label and EPA label are combined as one large label. Failure to 
maintain the EPA label on the vehicle is considered a violation of 
AIDA.\120\
---------------------------------------------------------------------------

    \119\ 49 U.S.C. 32908(b)(2).
    \120\ 49 U.S.C. 32908(e)(1)
---------------------------------------------------------------------------

2. Internal Revenue Code
    EPCA requires that ``Gas Guzzler'' tax information under 26 U.S.C. 
4064 be included on the fuel economy label. The new labels provide for 
this requirement. The Internal Revenue code contains the provisions 
governing the administration of the Gas Guzzler Tax. It contains the 
table of applicable taxes and defines which vehicles are subject to the 
taxes.\121\ The IRS code specifies that the fuel economy to be used to 
assess the amount of tax will be the combined city and highway fuel 
economy as determined by using the procedures in place in 1975, or 
procedures that give comparable results \122\ (similar to EPCA's 
requirements for determining CAFE for passenger automobiles). This rule 
does not impact these provisions.
---------------------------------------------------------------------------

    \121\ 26 U.S.C. 34064(a).
    \122\ 26 U.S.C. 4064(c).

---------------------------------------------------------------------------

[[Page 39518]]

3. Clean Air Act
    EPCA states that fuel economy tests shall, to the extent 
practicable, be carried out with the emissions tests required under 
Section 206 of the Clean Air Act.\123\ EPA did not propose and is not 
requiring additional emissions tests, thus the connection between 
emission and fuel economy tests is unchanged.
---------------------------------------------------------------------------

    \123\ 49 U.S.C. 32904(c).
---------------------------------------------------------------------------

4. Federal Trade Commission Guide Concerning Fuel Economy Advertising 
for New Vehicles
    In the mid-1970's when EPCA was passed, the Federal Trade 
Commission (FTC) ``took note of the dramatic increase in the number of 
fuel economy claims then being made and of the proliferation of test 
procedures then being used as the basis for such claims.'' \124\ They 
responded by promulgating regulations in 16 CFR part 259 entitled 
``Guide Concerning Fuel Economy Advertising for New Vehicles'' (``Fuel 
Guide''). The Fuel Guide, adopted in 1975 and subsequently revised 
twice, provides guidance to automobile manufacturers to prevent 
deceptive advertising and to facilitate the use of fuel economy 
information in advertising. The Fuel Guide advises vehicle 
manufacturers and dealers how to disclose the established fuel economy 
of a vehicle, as determined by the Environmental Protection Agency's 
rules pursuant to the Automobile Information Disclosure Act (15 U.S.C. 
2996), in advertisements that make representations regarding the fuel 
economy of a new vehicle.\125\ The disclosure is tied to the claim made 
in the advertisement. If both city and highway fuel economy claims are 
made, both city and highway EPA figures should be disclosed. A claim 
regarding either city or highway fuel economy should be accompanied by 
the corresponding EPA figure. A general fuel economy claim requires 
disclosure of the EPA city figure, although the advertiser would be 
free to state the highway figure as well. The authority for the Fuel 
Guide is tied to the Federal Trade Commission Act (15 U.S.C. 41-58) 
which, briefly stated, makes it illegal for one to engage in ``unfair 
methods of competition in or affecting commerce and unfair or deceptive 
acts or practices in or affecting commerce.''
---------------------------------------------------------------------------

    \124\ 40 FR 42003, Sept. 10, 1975.
    \125\ 43 FR 55747, Nov. 29, 1978; and 60 FR 56230, Nov. 8, 1995.
---------------------------------------------------------------------------

B. Statutory and Executive Order Reviews

1. Executive Order 12866 and Executive Order 13563: Regulatory Planning 
and Review and DOT Regulatory Policies and Procedures
    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is a ``significant regulatory action'' because the action raises 
novel legal or policy issues. Accordingly, EPA and NHTSA submitted this 
action to the Office of Management and Budget (OMB) for review under 
Executive Orders 12866 and 13563 (76 FR 3821, January 21, 2011) and any 
changes made in response to OMB recommendations have been documented in 
the docket for this action.
    NHTSA is also subject to the Department of Transportation's 
Regulatory Policies and Procedures. This final rule is also significant 
within the meaning of the DOT Regulatory Policies and Procedures. 
Executive Order 12866 also requires NHTSA to submit this action to OMB 
for review and document any changes made in response to OMB 
recommendations.
    In addition, EPA and NHTSA both prepared an analysis of the 
potential costs and benefits associated with this action. This analysis 
is available in Section VI of this document. In accordance with 
Executive Order 13563, section 1, the agencies have made ``a reasoned 
determination that'' the benefits of the rule ``justify its costs 
(recognizing that some benefits and costs are difficult to quantify.'' 
In accordance with Executive Order 13563, section 3, the agencies have 
reduced costs and promoted predictability and simplicity by 
coordinating and harmonizing regulatory requirements, both state and 
Federal.
    Executive Order 13563, section 4, directs agencies to consider 
``flexible approaches'' that maintain ``freedom of choice for the 
public.'' Such approaches include, under the Executive Order, 
``disclosure requirements as well as provision of information to the 
public in a form that is clear and intelligible.'' This rule is 
specifically designed to promote the goals of section 4 of Executive 
Order 13563 by providing clear and intelligible information and by 
promoting informed choices.
2. Paperwork Reduction Act
    The information collection requirements in this final rule have 
been submitted for approval to the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The 
Information Collection Request (ICR) document prepared by EPA has been 
assigned EPA ICR number 2392.02. Since this is a joint final rule, the 
burden associated with these information collection requirements could 
be attributed to either agency. However, since a significant portion of 
the burden result from new EPA testing requirements, EPA has agreed to 
assume responsibility for the complete paperwork burden. Both agencies 
have considered the comments submitted regarding these potential costs 
as part of their decision in this final rule.
    The information being collected is used by EPA to calculate the 
fuel economy estimates that appear on new automobile, light truck and 
medium-duty passenger vehicle sticker labels. EPA currently collects 
this information annually as part of its vehicle certification and fuel 
economy program, and will continue to do so. This final rule changes 
some of the content of the information submitted. Responses to this 
information collection are mandatory to obtain the benefit of vehicle 
certification under Title II of the Clean Air Act (42 U.S.C. 7521 et 
seq.) and as required under Title III of the Motor Vehicle Information 
and Cost Savings Act (15 U.S.C. 2001 et seq.). Information submitted by 
manufacturers is held as confidential until the specific vehicle to 
which it pertains is available for purchase. After vehicles are 
available for purchase, most information associated with the 
manufacturer's application is available to the public. Under section 
208 of the Clean Air Act (42 U.S.C. 7542(c)), all information, other 
than trade secret processes or methods, must be publicly available. 
Proprietary information is granted confidentiality in accordance with 
the Freedom of Information Act, EPA regulations at 40 CFR part 2, and 
class determinations issued by EPA's Office of General Counsel.
    The projected yearly increased cost within the three-year horizon 
of the pending information collection request is $2,812,000 including 
$2,286,000 in operations and maintenance costs and $526,000 in labor 
costs. The estimated number of likely respondent manufacturers is 35. 
Responses are submitted annually by engine family, with the number of 
responses per respondent varying widely depending on the number of 
engine families being certified. Under the current fuel economy 
information authorization, an average of 12.2 responses a year are 
approved for each of 33 respondents requiring 451.2 hours per response 
and 80 hours of recordkeeping at a total cost of $10,012 per response 
for an industry total of 184,127 hours and $4,274,932 million annually, 
including capital and

[[Page 39519]]

operations and maintenance costs. Burden is defined at 5 CFR 1320.3(b).
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9.
3. Regulatory Flexibility Act
    The Regulatory Flexibility Act (RFA) generally requires agencies to 
prepare a regulatory flexibility analysis of any rule subject to notice 
and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute unless the agencies certify that the rule will 
not have a significant economic impact on a substantial number of small 
entities. Small entities include small businesses, small organizations, 
and small governmental jurisdictions.
    For purposes of assessing the impacts of this proposed rule on 
small entities, a small entity is defined as: (1) A small business as 
defined by the Small Business Administration (SBA) by category of 
business using North America Industrial Classification System (NAICS) 
and codified at 13 CFR 121.201; (2) a small governmental jurisdiction 
that is a government of a city, county, town, school district or 
special district with a population of less than 50,000; and (3) a small 
organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.
    Table VIII.B.3-1 provides an overview of the primary SBA small 
business categories included in the light-duty vehicle sector that are 
subject to the final rule:

  Table VIII.B.3-1--Primary SBA Small Business Categories in the Light-
                           Duty Vehicle Sector
------------------------------------------------------------------------
                                      Defined as small
                                      entity by SBA if
             Industry                less than or equal    NAICS codes a
                                             to:
------------------------------------------------------------------------
Automobile Manufacturing..........  1,000 employees.....          336111
Light Truck and Utility Vehicle     1,000 employees.....          336112
 Manufacturing.
Motor Vehicle Body Manufacturing..  1,000 employees.....          336211
Automobile and Other Motor Vehicle  100 employees.......          423110
 Merchant Wholesalers.
New Car Dealers...................  200 employees.......         441110
------------------------------------------------------------------------
Notes: a North American Industrial Classification System.

    After considering the economic impacts of today's final rule on 
small entities, we certify that this action will not have a significant 
economic impact on a substantial number of small entities. The small 
entities directly regulated by this final rule cover several types of 
small businesses including vehicle manufacturers, automobile dealers, 
limousine and hearse manufacturers, and independent commercial 
importers (ICIs). ICIs are companies that import used vehicles into the 
U.S. that must be certified for emissions compliance and labeled for 
fuel economy purposes. Small governmental jurisdictions and small 
organizations as described above will not be impacted. We have 
determined that the estimated effect of the final rule is to impact 5 
small business vehicle manufacturers and 11 ICIs who currently certify 
vehicles with costs less than one percent of revenues. These 16 
companies represent all of the small businesses impacted by the new 
regulations. The final regulations will have no new impacts on small 
business automobile dealers or small business limousine and hearse 
manufacturers. We requested comment on the impacts of the proposed 
regulations on small entities but received no feedback. An analysis of 
the impacts of the final rule on small businesses has been prepared and 
placed in the docket for this rulemaking.\126\
---------------------------------------------------------------------------

    \126\ ``Screening Analysis: Small Business Impacts from 
Revisions to Motor Vehicle Fuel Economy Label,'' EPA report, May 2, 
2011.
---------------------------------------------------------------------------

    Although this final rule will not have a significant impact on a 
substantial number of small entities, we nonetheless have tried to 
reduce the impact of this rule on small entities. As discussed in 
section V.B, EPA is requiring a reduction in the testing burden on ICIs 
that will be needed for the fuel economy label. Under the final 
regulations, ICIs will be allowed to test over two driving cycles when 
determining the fuel economy estimate for the fuel economy label 
instead of testing over five driving cycles as required for vehicle 
manufacturers.
4. Unfunded Mandates Reform Act
    This rule does not contain a Federal mandate that may result in 
expenditures of $100 million (adjusted for inflation) or more for 
state, local, and tribal governments, in the aggregate, or the private 
sector in any one year. This rule contains no Federal mandates for 
state, local, or tribal governments as defined by the provisions of 
Title II of the UMRA. The rule imposes no enforceable duties on any of 
these governmental entities. Nothing in the rule would significantly or 
uniquely affect small governments. The proposed rule only affects 
vehicle manufacturers and the agencies estimate annual costs of less 
than $100 million (adjusted for inflation). EPA and NHTSA believe that 
the rule represents the least costly, most cost-effective approach to 
achieve the statutory requirements of the rule. The agencies' estimated 
costs are provided in Section VI. Thus, this rule is not subject to the 
requirements of sections 202 or 205 of UMRA.
    This rule is also not subject to the requirements of section 203 of 
UMRA because it contains no regulatory requirements that might 
significantly or uniquely affect small governments. As noted above, the 
rule only affects vehicle manufacturers.
5. Executive Order 13132: Federalism
    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government, as 
specified in Executive Order 13132. This rule applies to manufacturers 
of motor vehicles and not to state or local governments. Thus, 
Executive Order 13132 does not apply to this action. Although section 6 
of Executive Order 13132 does not apply to this action, EPA and NHTSA 
did consult with representatives of state governments in developing 
this action.

[[Page 39520]]

6. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments
    This action does not have tribal implications, as specified in 
Executive Order 13175 (65 FR 67249, November 9, 2000). This final rule 
would be implemented at the Federal level and imposes compliance costs 
only on vehicle manufacturers. Tribal governments would be affected 
only to the extent they purchase and use regulated vehicles. Thus, 
Executive Order 13175 does not apply to this action.
7. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks
    EPA and NHTSA interpret E.O. 13045 (62 FR 19885, April 23, 1997) as 
applying only to those regulatory actions that concern health or safety 
risks, such that the analysis required under section 5-501 of the E.O. 
has the potential to influence the regulation. This action is not 
subject to E.O. 13045 because it does not establish an environmental 
standard intended to mitigate health or safety risks.
8. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution or Use
    This action is not a ``significant energy action'' as defined in 
Executive Order 13211 (66 FR 28355 (May 22, 2001)), because it is not 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy. This action does not require 
manufacturers to improve or otherwise change the fuel economy of their 
vehicles. The purpose of this action is to provide consumers with 
better information on which to base their vehicle purchasing decisions 
and that may have a positive effect on the energy supply. Therefore, we 
have concluded that this rule is not likely to have any adverse energy 
effects.
9. National Technology Transfer Advancement Act
    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113 (15 U.S.C. 272 note) 
directs the agencies to use voluntary consensus standards in its 
regulatory activities unless to do so would be inconsistent with 
applicable law or otherwise impractical. Voluntary consensus standards 
are technical standards (e.g., materials specifications, test methods, 
sampling procedures, and business practices) that are developed or 
adopted by voluntary consensus standards bodies. NTTAA directs the 
agencies to provide Congress, through OMB, explanations when the 
agencies decide not to use available and applicable voluntary consensus 
standards.
    The EPA portion of this rulemaking involves technical standards. 
EPA has decided to use the following testing standards developed with 
the Society of Automotive Engineers (SAE) related to measurement 
procedures for electric vehicles and plug-in hybrid electric vehicles: 
SAEJ1711, SAE J2841, and SAE J1634. SAE reference documents can be 
obtained at http://www.SAE.org. The final rule incorporates these 
standards with only minor modifications needed to fit in the regulatory 
context. The incorporation by reference does not involve any 
substantial change or disagreement with the technical conclusions from 
the published standards.
10. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations
    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes 
Federal executive policy on environmental justice. Its main provision 
directs Federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    The agencies have determined that this final rule will not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it does not 
affect the level of protection provided to human health or the 
environment. The final regulations do not require manufacturers to 
improve or otherwise change the emissions control or fuel economy of 
their vehicles. The purpose of this final regulation is to provide 
consumers with better information on which to base their vehicle 
purchasing decisions.
11. Congressional Review Act
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A Major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2). This rule will be effective September 6, 2011.

List of Subjects

40 CFR Part 85

    Confidential business information, Imports, Labeling, Motor vehicle 
pollution, Reporting and recordkeeping requirements, Research, 
Warranties.

40 CFR Part 86

    Administrative practice and procedure, Confidential business 
information, Labeling, Motor vehicle pollution, Reporting and 
recordkeeping requirements.

40 CFR Part 600

    Administrative practice and procedure, Electric power, Fuel 
economy, Incorporation by reference, Labeling, Reporting and 
recordkeeping requirements.

49 CFR Part 575

    Administrative practice and procedure, Consumer protection, Fuel 
economy, Motor vehicles, Motor vehicle safety, Reporting and 
recordkeeping requirements.

Environmental Protection Agency

40 CFR Chapter I

    For the reasons set forth in the preamble, the Environmental 
Protection Agency amends parts 85, 86, and 600 of title 40, Chapter I 
of the Code of Federal Regulations as follows:

PART 85--CONTROL OF AIR POLLUTION FROM MOBILE SOURCES

0
1. The authority citation for part 85 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.

Subpart T--[Amended]

0
2. Section 85.1902 is amended by revising paragraph (b)(2) to read as 
follows:

Sec.  85.1902  Definitions.

* * * * *
    (b) * * *
    (2) A defect in the design, materials, or workmanship in one or 
more emissions control or emission-related parts, components, systems, 
software or elements of design which must function properly to ensure 
continued

[[Page 39521]]

compliance with greenhouse gas emission standards.
* * * * *

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

0
3. The authority citation for part 86 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.

Subpart B--[Amended]

0
4. Section 86.165-12 is amended by revising paragraph (d)(4) to read as 
follows:

Sec.  86.165-12  Air conditioning idle test procedure.

* * * * *
    (d) * * *
    (4) Measure and record the continuous CO2 concentration 
for 600 seconds. Measure the CO2 concentration continuously 
using raw or dilute sampling procedures. Multiply this concentration by 
the continuous (raw or dilute) flow rate at the emission sampling 
location to determine the CO2 flow rate. Calculate the 
CO2 cumulative flow rate continuously over the test 
interval. This cumulative value is the total mass of the emitted 
CO2. Alternatively, CO2 may be measured and 
recorded using a constant velocity sampling system as described in 
Sec. Sec.  86.106-96(a)(2) and 86.109.
* * * * *

Subpart S--[Amended]

0
5. Section 86.1810-09 is amended by revising paragraph (f)(1) to read 
as follows:

Sec.  86.1810-09  General standards; increase in emissions; unsafe 
condition; waivers.

* * * * *
    (f) * * *
    (1) All emission standards apply at low altitude conditions and at 
high altitude conditions, with the following exceptions:
    (i) The supplemental exhaust emission standards as described in 
Sec.  86.1811-04(f) apply only at low altitude conditions;
    (ii) The cold temperature NMHC emission standards as described in 
Sec.  86.1811-10(g) apply only at low altitude conditions;
    (iii) The evaporative emission standards specified in Sec.  
86.1811-09(e) apply at low altitude conditions. The evaporative 
emission standards specified in Sec.  86.1811-04(e) continue to apply 
at high altitude conditions for 2009 and later model year vehicles.
* * * * *

0
6. Section 86.1811-09 is amended by revising paragraph (e) introductory 
text to read as follows:

Sec.  86.1811-09  Emission standards for light-duty vehicles, light-
duty trucks and medium-duty passenger vehicles.

* * * * *
    (e) Evaporative emission standards. Evaporative emissions from 
gasoline-fueled, natural gas-fueled, liquefied petroleum gas-fueled, 
ethanol-fueled and methanol-fueled vehicles must not exceed the 
standards in this paragraph (e) at low altitude conditions. The 
evaporative emission standards specified in Sec.  86.1811-04(e)(1) 
continue to apply at high altitude conditions. The standards apply 
equally to certification and in-use vehicles.
* * * * *

0
7. Section 86.1818-12 is amended by adding paragraph (b)(3) and 
revising paragraphs (c)(1) and (d) to read as follows:

Sec.  86.1818-12  Greenhouse gas emission standards for light-duty 
vehicles, light-duty trucks, and medium-duty passenger vehicles.

* * * * *
    (b) * * *
    (3) Manufacturer has the meaning given by the Department of 
Transportation at 49 CFR 531.4.
    (c) * * *
    (1) For a given individual model year's production of passenger 
automobiles and light trucks, manufacturers must comply with a full 
useful life fleet average CO2 standard calculated according 
to the provisions of this paragraph (c). Manufacturers must calculate 
separate full useful life fleet average CO2 standards for 
their passenger automobile and light truck fleets, as those terms are 
defined in this section. Each manufacturer's fleet average 
CO2 standards determined in this paragraph (c) shall be 
expressed in whole grams per mile, in the model year specified as 
applicable. Manufacturers eligible for and choosing to participate in 
the Temporary Leadtime Allowance Alternative Standards for qualifying 
manufacturers specified in paragraph (e) of this section shall not 
include vehicles subject to the Temporary Leadtime Allowance 
Alternative Standards in the calculations of their primary passenger 
automobile or light truck standards determined in this paragraph (c). 
Manufacturers shall demonstrate compliance with the applicable 
standards according to the provisions of Sec.  86.1865.
* * * * *
    (d) In-use CO2 exhaust emission standards. The in-use 
CO2 exhaust emission standard shall be the combined city/
highway carbon-related exhaust emission value calculated for the 
appropriate vehicle carline/subconfiguration according to the 
provisions of Sec.  600.113-12(g)(4) of this chapter multiplied by 1.1 
and rounded to the nearest whole gram per mile. For in-use vehicle 
carlines/subconfigurations for which a combined city/highway carbon-
related exhaust emission value was not determined under Sec.  600.113-
12(g)(4) of this chapter, the in-use CO2 exhaust emission 
standard shall be the combined city/highway carbon-related exhaust 
emission value calculated according to the provisions of Sec.  600.208 
of this chapter for the vehicle model type (except that total model 
year production data shall be used instead of sales projections) 
multiplied by 1.1 and rounded to the nearest whole gram per mile. For 
vehicles that are capable of operating on multiple fuels, including but 
not limited to alcohol dual fuel, natural gas dual fuel and plug-in 
hybrid electric vehicles, a separate in-use standard shall be 
determined for each fuel that the vehicle is capable of operating on. 
These standards apply to in-use testing performed by the manufacturer 
pursuant to regulations at Sec. Sec.  86.1845 and 86.1846 and to in-use 
testing performed by EPA.
* * * * *

0
8. Section 86.1823-08 is amended by revising paragraphs (m)(2)(iii) and 
(m)(3) to read as follows:

Sec.  86.1823-08  Durability demonstration procedures for exhaust 
emissions.

* * * * *
    (m) * * *
    (2) * * *
    (iii) For the 2012 through 2014 model years only, manufacturers may 
use alternative deterioration factors. For N2O, the 
alternative deterioration factor to be used to adjust FTP and HFET 
emissions is the additive or multiplicative deterioration factor 
determined for (or derived from, using good engineering judgment) 
NOX emissions according to the provisions of this section. 
For CH4, the alternative deterioration factor to be used to 
adjust FTP and HFET emissions is the additive or multiplicative 
deterioration factor determined for (or derived from, using good 
engineering judgment) NMOG or NMHC emissions according to the 
provisions of this section.
    (3) Other carbon-related exhaust emissions. Deterioration factors 
shall be determined according to the provisions of paragraphs (a) 
through (l) of this section. Optionally, in lieu of determining 
emission-specific FTP and

[[Page 39522]]

HFET deterioration factors for CH3OH (methanol), HCHO 
(formaldehyde), C2H5OH (ethanol), and 
C2H4O (acetaldehyde), manufacturers may use the 
additive or multiplicative deterioration factor determined for (or 
derived from, using good engineering judgment) NMOG or NMHC emissions 
according to the provisions of this section.
* * * * *

0
9. Section 86.1841-01 is amended by revising paragraph (a)(3) to read 
as follows:

Sec.  86.1841-01  Compliance with emission standards for the purpose of 
certification.

    (a) * * *
    (3) Compliance with full useful life CO2 exhaust 
emission standards shall be demonstrated at certification by the 
certification levels on the FTP and HFET tests for carbon-related 
exhaust emissions determined according to Sec.  600.113 of this 
chapter.
* * * * *

0
10. Section 86.1848-10 is amended by revising the section heading and 
paragraph (c)(9)(i) to read as follows:

Sec.  86.1848-10  Compliance with emission standards for the purpose of 
certification.

* * * * *
    (c) * * *
    (9) * * *
    (i) Failure to meet the fleet average CO2 requirements 
will be considered a failure to satisfy the terms and conditions upon 
which the certificate(s) was (were) issued and the vehicles sold in 
violation of the fleet average CO2 standard will not be 
covered by the certificate(s). The vehicles sold in violation will be 
determined according to Sec.  86.1865-12(k)(8).
* * * * *
0
11. Section 86.1865-12 is amended by revising paragraphs (a)(1) 
introductory text, (d), (j)(1), (k)(7)(i), (k)(8)(iii) through (v), 
(k)(9)(iv)(B), and (k)(9)(v) to read as follows:

Sec.  86.1865-12  How to comply with the fleet average CO2 
standards.

    (a) * * *
    (1) Unless otherwise exempted under the provisions of Sec.  
86.1801-12(j) or (k), CO2 fleet average exhaust emission 
standards apply to:
* * * * *
    (d) Small volume manufacturer certification procedures. 
Certification procedures for small volume manufacturers are provided in 
Sec.  86.1838. Small businesses meeting certain criteria may be 
exempted from the greenhouse gas emission standards in Sec.  86.1818 
according to the provisions of Sec.  86.1801-12(j) or (k).
* * * * *
    (j) * * *
    (1) Compliance and enforcement requirements are provided in this 
section and Sec.  86.1848-10(c)(9).
* * * * *
    (k) * * *
    (7) * * *
    (i) Credits generated and calculated according to the method in 
paragraphs (k)(4) and (5) of this section may not be used to offset 
deficits other than those deficits accrued with respect to the standard 
in Sec.  86.1818. Credits may be banked and used in a future model year 
in which a manufacturer's average CO2 level exceeds the 
applicable standard. Credits may be exchanged between the passenger 
automobile and light truck fleets of a given manufacturer. Credits may 
also be traded to another manufacturer according to the provisions in 
paragraph (k)(8) of this section. Before trading or carrying over 
credits to the next model year, a manufacturer must apply available 
credits to offset any deficit, where the deadline to offset that credit 
deficit has not yet passed.
* * * * *
    (8) * * *
    (iii) EPA will determine the vehicles not covered by a certificate 
because the condition on the certificate was not satisfied by 
designating vehicles in those test groups with the highest carbon-
related exhaust emission values first and continuing until reaching a 
number of vehicles equal to the calculated number of non-complying 
vehicles as determined in this paragraph (k)(8). If this calculation 
determines that only a portion of vehicles in a test group contribute 
to the debit situation, then EPA will designate actual vehicles in that 
test group as not covered by the certificate, starting with the last 
vehicle produced and counting backwards.
    (iv)(A) If a manufacturer ceases production of passenger cars and 
light trucks, the manufacturer continues to be responsible for 
offsetting any debits outstanding within the required time period. Any 
failure to offset the debits will be considered a violation of 
paragraph (k)(8)(i) of this section and may subject the manufacturer to 
an enforcement action for sale of vehicles not covered by a 
certificate, pursuant to paragraphs (k)(8)(ii) and (iii) of this 
section.
    (B) If a manufacturer is purchased by, merges with, or otherwise 
combines with another manufacturer, the controlling entity is 
responsible for offsetting any debits outstanding within the required 
time period. Any failure to offset the debits will be considered a 
violation of paragraph (k)(8)(i) of this section and may subject the 
manufacturer to an enforcement action for sale of vehicles not covered 
by a certificate, pursuant to paragraphs (k)(8)(ii) and (iii) of this 
section.
    (v) For purposes of calculating the statute of limitations, a 
violation of the requirements of paragraph (k)(8)(i) of this section, a 
failure to satisfy the conditions upon which a certificate(s) was 
issued and hence a sale of vehicles not covered by the certificate, all 
occur upon the expiration of the deadline for offsetting debits 
specified in paragraph (k)(8)(i) of this section.
    (9) * * *
    (iv) * * *
    (B) Failure to offset the debits within the required time period 
will be considered a failure to satisfy the conditions upon which the 
certificate(s) was issued and will be addressed pursuant to paragraph 
(k)(8) of this section.
    (v) A manufacturer may only trade credits that it has generated 
pursuant to paragraphs (k)(4) and (5) of this section or acquired from 
another party.
* * * * *

0
12. Section 86.1866-12 is amended by revising paragraphs (b)(2), 
(c)(5)(iv), and (d)(1) introductory text to read as follows:

Sec.  86.1866-12  CO2 fleet average credit programs.

* * * * *
    (b) * * *
    (2) The CO2-equivalent gram per mile leakage reduction 
to be used to calculate the total credits generated by the air 
conditioning system shall be determined according to the following 
formulae, rounded to the nearest tenth of a gram per mile:
    (i) Passenger automobiles:
    [GRAPHIC] [TIFF OMITTED] TR06JY11.011
    

[[Page 39523]]

Where:

MaxCredit is 12.6 (grams CO2-equivalent/mile) for air 
conditioning systems using HFC-134a, and 13.8 (grams CO2-
equivalent/mile) for air conditioning systems using a refrigerant 
with a lower global warming potential.
Leakage means the annual refrigerant leakage rate determined 
according to the provisions of Sec.  86.166-12(a), except if the 
calculated rate is less than 8.3 grams/year (4.1 grams/year for 
systems using only electric compressors), the rate for the purpose 
of this formula shall be 8.3 grams/year (4.1 grams/year for systems 
using only electric compressors).
The constant 16.6 is the average passenger car impact of air 
conditioning leakage in units of grams/year.
GWPREF means the global warming potential of the 
refrigerant as indicated in paragraph (b)(5) of this section or as 
otherwise determined by the Administrator.
GWPHFC134a means the global warming potential of HFC-134a 
as indicated in paragraph (b)(5) of this section or as otherwise 
determined by the Administrator.

    (ii) Light trucks:
    [GRAPHIC] [TIFF OMITTED] TR06JY11.012
    
Where:

MaxCredit is 15.6 (grams CO2-equivalent/mile) for air 
conditioning systems using HFC-134a, and 17.2 (grams CO2-
equivalent/mile) for air conditioning systems using a refrigerant 
with a lower global warming potential.
Leakage means the annual refrigerant leakage rate determined 
according to the provisions of Sec.  86.166-12(a), except if the 
calculated rate is less than 10.4 grams/year (5.2 grams/year for 
systems using only electric compressors), the rate for the purpose 
of this formula shall be 10.4 grams/year (5.2 grams/year for systems 
using only electric compressors).
The constant 20.7 is the average light truck impact of air 
conditioning leakage in units of grams/year.
GWPREF means the global warming potential of the 
refrigerant as indicated in paragraph (b)(5) of this section or as 
otherwise determined by the Administrator.
GWPR134a means the global warming potential of HFC-134a 
as indicated in paragraph (b)(5) of this section or as otherwise 
determined by the Administrator.
* * * * *
    (c) * * *
    (5) * * *
    (iv) Air conditioning systems with compressors that are powered 
solely by electricity shall submit Air Conditioning Idle Test Procedure 
data to be eligible to generate credits in 2014 and later model years, 
but such systems are not required to meet a specific threshold to be 
eligible to generate such credits, as long as the engine is off for at 
least 2 cumulative minutes during the air conditioning-on portion of 
the Idle Test Procedure in Sec.  86.165-12(d).
* * * * *
    (d) * * *
    (1) Qualification criteria. To qualify for this credit, the 
following criteria must be met as determined by the Administrator:
* * * * *

0
13. Section 86.1867-12 is amended by removing and reserving paragraph 
(a)(1)(iii)(A), by revising paragraphs (a)(1)(i), (a)(1)(ii), removing 
and reserving paragraph (a)(3)(iv)(A), and revising paragraphs 
(a)(3)(iv)(F), (a)(3)(vi), (a)(4), (b)(2), and (e)(4)(ii) to read as 
follows:

Sec.  86.1867-12  Optional early CO2 credit programs.

* * * * *
    (a) * * *
    (1) * * *
    (i) An average carbon-related exhaust emission value calculation 
will be made for the combined LDV/LDT1 averaging set, where the terms 
LDV and LDT1 are as defined in Sec.  86.1803.
    (ii) An average carbon-related exhaust emission value calculation 
will be made for the combined LDT2/HLDT/MDPV averaging set, where the 
terms LDT2, HLDT, and MDPV are as defined in Sec.  86.1803.
    (iii) * * *
    (A) [Reserved]
* * * * *
    (3) * * *
    (iv) * * *
    (A) Vehicles sold in California and the section 177 states 
determined in paragraph (a)(2)(i) of this section shall not be 
included.
* * * * *
    (F) Electric, fuel cell, and plug-in hybrid electric model type 
carbon-related exhaust emission values shall be included in the fleet 
average determined under paragraph (a)(1) of this section only to the 
extent that such vehicles are not being used to generate early advanced 
technology vehicle credits under paragraph (c) of this section.
* * * * *
    (vi) Credits are earned on the last day of the model year. 
Manufacturers must calculate, for a given model year, the number of 
credits or debits it has generated according to the following equation, 
rounded to the nearest megagram:

CO2 Credits or Debits (Mg) = [(CO2 Credit 
Threshold - Manufacturer's Sales Weighted Fleet Average CO2 
Emissions) x (Total Number of Vehicles Sold) x (Vehicle Lifetime 
Miles)] / 1,000,000

Where:

CO2 Credit Threshold = the applicable credit threshold 
value for the model year and vehicle averaging set as determined by 
paragraph (a)(3)(v) of this section.
Manufacturer's Sales Weighted Fleet Average CO2 Emissions 
= average calculated according to paragraph (a)(3)(iv) of this 
section.
Total Number of Vehicles Sold = The number of vehicles domestically 
sold as defined in Sec.  600.511 of this chapter except that 
vehicles sold in California and the section 177 states determined in 
paragraph (a)(2)(i) of this section shall not be included.
Vehicle Lifetime Miles is 195,264 for the LDV/LDT1 averaging set and 
225,865 for the LDT2/HLDT/MDPV averaging set.
* * * * *
    (4) Pathway 4. Pathway 4 credits are those credits earned under 
Pathway 3 as described in paragraph (a)(3) of this section in the set 
of states that does not include California and the section 177 states 
determined in paragraph (a)(2)(i) of this section and calculated 
according to paragraph (a)(3) of this section. Credits may only be 
generated by vehicles sold in the set of states that does not include 
California and the section 177 states determined in paragraph (a)(2)(i) 
of this section.
    (b) * * *
    (2) Manufacturers must be participating in one of the early fleet 
average credit pathways described in paragraphs (a)(1), (2), or (3) of 
this section in order to generate early air conditioning credits for 
vehicles sold in California and the section 177 states as determined in 
paragraph (a)(2)(i) of this section. Manufacturers that select Pathway 
4 as described in paragraph (a)(4) of this section may not generate 
early air conditioning credits for vehicles sold in California and the 
section 177 states as determined in paragraph (a)(2)(i) of this 
section. Manufacturers not participating in one of the early fleet 
average credit pathways described in this section may

[[Page 39524]]

generate early air conditioning credits only for vehicles sold in 
states other than in California and the section 177 states as 
determined in paragraph (a)(2)(i) of this section.
* * * * *
    (e) * * *
    (4) * * *
    (ii) The leakage and efficiency credit values and all the 
information required to determine these values.
* * * * *

PART 600--FUEL ECONOMY AND GREENHOUSE GAS EXHAUST EMISSIONS OF 
MOTOR VEHICLES

0
14. The authority citation for part 600 continues to read as follows:

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

0
15. The heading for part 600 is revised to read as set forth above.

Subpart A--General Provisions

0
16. The heading for subpart A is revised as set forth above.

Sec. Sec.  600.001-08, 600.001-86, 600.001-93, 600.002-85, 600.002-93, 
600.004-77, 600.006-86, 600.006-87, 600.006-89, 600.007-80, 600.008-01, 
600.008-77, and 600.010-86  [Removed]

0
17. Subpart A is amended by removing the following sections:
    Sec.  600.001-08.
    Sec.  600.001-86.
    Sec.  600.001-93.
    Sec.  600.002-85.
    Sec.  600.002-93.
    Sec.  600.004-77.
    Sec.  600.006-86.
    Sec.  600.006-87.
    Sec.  600.006-89.
    Sec.  600.007-80.
    Sec.  600.008-01.
    Sec.  600.008-77.
    Sec.  600.010-86.

Sec.  600.001-12  [Redesignated as Sec.  600.001]

Sec.  600.002-08  [Redesignated as Sec.  600.002]

Sec.  600.003-77  [Redesignated as Sec.  600.003]

Sec.  600.005-81  [Redesignated as Sec.  600.005]

Sec.  600.006-08  [Redesignated as Sec.  600.006]

Sec.  600.007-08  [Redesignated as Sec.  600.007]

Sec.  600.008-08  [Redesignated as Sec.  600.008]

Sec.  600.009-85  [Redesignated as Sec.  600.009]

Sec.  600.010-08  [Redesignated as Sec.  600.010]

Sec.  600.011-93  [Redesignated as Sec.  600.011]

0
18. Redesignate Sec. Sec.  600.001-12 through 600.011-93 as follows:

------------------------------------------------------------------------
            Old section                          New section
------------------------------------------------------------------------
 Sec.   600.001-12                    Sec.   600.001
 Sec.   600.002-08                    Sec.   600.002
 Sec.   600.003-77                    Sec.   600.003
 Sec.   600.005-81                    Sec.   600.005
 Sec.   600.006-08                    Sec.   600.006
 Sec.   600.007-08                    Sec.   600.007
 Sec.   600.008-08                    Sec.   600.008
 Sec.   600.009-85                    Sec.   600.009
 Sec.   600.010-08                    Sec.   600.010
 Sec.   600.011-93                    Sec.   600.011
------------------------------------------------------------------------

0
19. Newly redesignated Sec.  600.001 is revised to read as follows:

Sec.  600.001  General applicability.

    (a) The provisions of this part apply to 2008 and later model year 
automobiles that are not medium duty passenger vehicles, and to 2011 
and later model year automobiles including medium-duty passenger 
vehicles.
    (b) The provisions of subparts A, D, and F of this part are 
optional through the 2011 model year in the following cases:
    (1) Manufacturers that produce only electric vehicles are exempt 
from the requirements of this subpart, except with regard to the 
requirements in those sections pertaining specifically to electric 
vehicles.
    (2) Manufacturers with worldwide production (excluding electric 
vehicle production) of less than 10,000 gasoline-fueled and/or diesel 
powered passenger automobiles and light trucks may optionally comply 
with the electric vehicle requirements in this subpart.
    (c) Unless stated otherwise, references to fuel economy or fuel 
economy data in this part shall also be interpreted to mean the related 
exhaust emissions of CO2, HC, and CO, and where applicable 
for alternative fuel vehicles, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC 
and CH4. References to average fuel economy shall be 
interpreted to also mean average carbon-related exhaust emissions and 
average CO2 emissions. References to fuel economy data 
vehicles shall also be meant to refer to vehicles tested for carbon-
related exhaust emissions for the purpose of demonstrating compliance 
with fleet average CO2 standards in Sec.  86.1818 of this 
chapter.
    (d) The model year of initial applicability for sections in this 
part is indicated by the section number. The two digits following the 
hyphen designate the first model year for which a section is 
applicable. An individual section continues to apply for later model 
years until it is replaced by a different section that applies starting 
in a later model year. Sections that have no two-digit suffix apply for 
all 2008 and later model year vehicles, except as noted in those 
sections. If a section has a two-digit suffix but the regulation 
references that section without including the two-digit suffix, this 
refers to the section applicable for the appropriate model year. This 
also applies for references to part 86 of this chapter. As an example, 
Sec.  600.113-08 applies to the 2008 and subsequent model years until 
Sec.  600.113-12 is applicable beginning with the 2012 model year. 
Section 600.111-08 would then apply only for 2008 through 2011 model 
year vehicles.

0
20. Newly redesignated Sec.  600.002 is revised to read as follows:

Sec.  600.002  Definitions.

    The following definitions apply throughout this part:
    3-bag FTP means the Federal Test Procedure specified in part 86 of 
this chapter, with three sampling portions consisting of the cold-start 
transient (``Bag 1''), stabilized (``Bag 2''), and hot-start transient 
phases (``Bag 3'').
    4-bag FTP means the 3-bag FTP, with the addition of a sampling 
portion for the hot-start stabilized phase (``Bag 4'').
    5-cycle means the FTP, HFET, US06, SC03 and cold temperature FTP 
tests as described in subparts B and C of this part.
    Administrator means the Administrator of the Environmental 
Protection Agency or his authorized representative.
    Alcohol means a mixture containing 85 percent or more by volume 
methanol, ethanol, or other alcohols, in any combination.
    Alcohol-fueled automobile means an automobile designed to operate 
exclusively on alcohol.
    Alcohol dual fuel automobile means an automobile:
    (1) Which is designed to operate on alcohol and on gasoline or 
diesel fuel; and
    (2) Which provides equal or greater energy efficiency as calculated 
in accordance with Sec.  600.510-08(g)(1) or Sec.  600.510-12(g)(1) 
while operating on alcohol as it does while operating on gasoline or 
diesel fuel; and
    (3) Which, in the case of passenger automobiles, meets or exceeds 
the minimum driving range established by the Department of 
Transportation in 49 CFR part 538.
    Alternative fuel means any of the following:
    (1) Methanol.
    (2) Denatured ethanol.
    (3) Other alcohols.
    (4) A mixture containing at least 85 percent (or an alternative 
percentage as specified by the Secretary of Transportation under 49 
U.S.C.

[[Page 39525]]

32901(b)) of methanol, denatured ethanol, and other alcohols by volume 
with gasoline or other fuels.
    (5) Natural gas.
    (6) Liquefied petroleum gas.
    (7) Hydrogen.
    (8) Coal derived liquid fuels.
    (9) Fuels (except alcohol) derived from biological materials.
    (10) Electricity (including electricity from solar energy).
    (11) Any other fuel the Secretary of Transportation prescribes by 
regulation under 49 U.S.C. 32901(a)(1)(K).
    Automobile has the meaning given by the Department of 
Transportation at 49 CFR 523.3. This includes ``passenger automobiles'' 
and ``non-passenger automobiles'' (or ``light trucks'').
    Auxiliary emission control device (AECD) means an element of design 
as defined in Sec.  86.1803 of this chapter.
    Average fuel economy means the unique fuel economy value as 
computed under Sec.  600.510 for a specific class of automobiles 
produced by a manufacturer that is subject to average fuel economy 
standards.
    Axle ratio means the number of times the input shaft to the 
differential (or equivalent) turns for each turn of the drive wheels.
    Base level means a unique combination of basic engine, inertia 
weight class and transmission class.
    Base tire means the tire specified as standard equipment by the 
manufacturer.
    Base vehicle means the lowest priced version of each body style 
that makes up a car line.
    Basic engine means a unique combination of manufacturer, engine 
displacement, number of cylinders, fuel system (e.g., type of fuel 
injection), catalyst usage, and other engine and emission control 
system characteristics specified by the Administrator. For electric 
vehicles, basic engine means a unique combination of manufacturer and 
electric traction motor, motor controller, battery configuration, 
electrical charging system, energy storage device, and other components 
as specified by the Administrator.
    Battery configuration means the electrochemical type, voltage, 
capacity (in Watt-hours at the c/3 rate), and physical characteristics 
of the battery used as the tractive energy device.
    Body style means a level of commonality in vehicle construction as 
defined by number of doors and roof treatment (e.g., sedan, 
convertible, fastback, hatchback) and number of seats (i.e., front, 
second, or third seat) requiring seat belts pursuant to National 
Highway Traffic Safety Administration safety regulations in 49 CFR part 
571. Station wagons and light trucks are identified as car lines.
    Calibration means the set of specifications, including tolerances, 
unique to a particular design, version of application of a component, 
or component assembly capable of functionally describing its operation 
over its working range.
    Carbon-related exhaust emissions (CREE) means the summation of the 
carbon-containing constituents of the exhaust emissions, with each 
constituent adjusted by a coefficient representing the carbon weight 
fraction of each constituent relative to the CO2 carbon 
weight fraction, as specified in Sec.  600.113. For example, carbon-
related exhaust emissions (weighted 55 percent city and 45 percent 
highway) are used to demonstrate compliance with fleet average 
CO2 emission standards outlined in Sec.  86.1818 of this 
chapter.
    Car line means a name denoting a group of vehicles within a make or 
car division which has a degree of commonality in construction (e.g., 
body, chassis). Car line does not consider any level of decor or 
opulence and is not generally distinguished by characteristics as roof 
line, number of doors, seats, or windows, except for station wagons or 
light-duty trucks. Station wagons and light-duty trucks are considered 
to be different car lines than passenger cars.
    Certification vehicle means a vehicle which is selected under Sec.  
86.1828 of this chapter and used to determine compliance under Sec.  
86.1848 of this chapter for issuance of an original certificate of 
conformity.
    City fuel economy means the city fuel economy determined by 
operating a vehicle (or vehicles) over the driving schedule in the 
Federal emission test procedure, or determined according to the 
vehicle-specific 5-cycle or derived 5-cycle procedures.
    Cold temperature FTP means the test performed under the provisions 
of subpart C of part 86 of this chapter.
    Combined fuel economy means:
    (1) The fuel economy value determined for a vehicle (or vehicles) 
by harmonically averaging the city and highway fuel economy values, 
weighted 0.55 and 0.45, respectively.
    (2) For electric vehicles, the term means the equivalent petroleum-
based fuel economy value as determined by the calculation procedure 
promulgated by the Secretary of Energy.
    Dealer means a person who resides or is located in the United 
States, any territory of the United States, or the District of Columbia 
and who is engaged in the sale or distribution of new automobiles to 
the ultimate purchaser.
    Derived 5-cycle fuel economy means the 5-cycle fuel economy derived 
from the FTP-based city and HFET-based highway fuel economy by means of 
the equation provided in Sec.  600.210.
    Derived 5-cycle CO2 means the 5-cycle CO2 
derived from the FTP-based city and HFET-based highway fuel economy by 
means of the equation provided in Sec.  600.210.
    Diesel gallon equivalent means an amount of electricity or fuel 
with the energy equivalence of one gallon of diesel fuel. For purposes 
of this part, one gallon of diesel fuel is equivalent to 36.7 kilowatt-
hours of electricity.
    Drive system is determined by the number and location of drive 
axles (e.g., front wheel drive, rear wheel drive, four wheel drive) and 
any other feature of the drive system if the Administrator determines 
that such other features may result in a fuel economy difference.
    Dual fueled automobile means an automobile:
    (1) Which is designed to operate on an alternative fuel and on 
gasoline or diesel fuel; and
    (2) Which provides equal or greater energy efficiency as calculated 
in accordance with Sec.  600.510-08(g)(1) or Sec.  600.510-12(g)(1) 
while operating on the alternative fuel as it does while operating on 
gasoline or diesel fuel; and
    (3) Which, in the case of passenger automobiles, meets or exceeds 
the minimum driving range established by the Department of 
Transportation in 49 CFR part 538.
    Electrical charging system means a device to convert 60 Hz 
alternating electric current, as commonly available in residential 
electric service in the United States, to a proper form for recharging 
the energy storage device.
    Electric traction motor means an electrically powered motor which 
provides tractive energy to the wheels of a vehicle.
    Electric vehicle has the meaning given in Sec.  86.1803 of this 
chapter.
    Energy storage device means a rechargeable means of storing 
tractive energy on board a vehicle such as storage batteries or a 
flywheel.
    Engine code means a unique combination, within an engine-system 
combination (as defined in Sec.  86.1803 of this chapter), of 
displacement, fuel injection (or carburetion or other fuel delivery 
system), calibration, distributor calibration, choke calibration, 
auxiliary emission control devices, and other engine and emission 
control system components specified by the Administrator. For electric 
vehicles, engine code means a unique combination of manufacturer, 
electric traction motor, motor configuration,

[[Page 39526]]

motor controller, and energy storage device.
    Federal emission test procedure (FTP) refers to the dynamometer 
driving schedule, dynamometer procedure, and sampling and analytical 
procedures described in part 86 of this chapter for the respective 
model year, which are used to derive city fuel economy data.
    Footprint has the meaning given in Sec.  86.1803 of this chapter.
    FTP-based city fuel economy means the fuel economy determined in 
Sec.  600.113 of this part, on the basis of FTP testing.
    Fuel means:
    (1) Gasoline and diesel fuel for gasoline- or diesel-powered 
automobiles; or
    (2) Electrical energy for electrically powered automobiles; or
    (3) Alcohol for alcohol-powered automobiles; or
    (4) Natural gas for natural gas-powered automobiles; or
    (5) Liquid Petroleum Gas (LPG), commonly referred to as 
``propane,'' for LPG-powered automobiles; or
    (6) Hydrogen for hydrogen fuel cell automobiles and for automobiles 
equipped with hydrogen internal combustion engines.
    Fuel cell has the meaning given in Sec.  86.1803 of this chapter.
    Fuel cell vehicle has the meaning given in Sec.  86.1803 of this 
chapter.
    Fuel economy means:
    (1) The average number of miles traveled by an automobile or group 
of automobiles per volume of fuel consumed as calculated in this part; 
or
    (2) For the purpose of calculating average fuel economy pursuant to 
the provisions of part 600, subpart F, fuel economy for electrically 
powered automobiles means the equivalent petroleum-based fuel economy 
as determined by the Secretary of Energy in accordance with the 
provisions of 10 CFR 474.
    Fuel economy data vehicle means a vehicle used for the purpose of 
determining fuel economy which is not a certification vehicle.
    Gasoline gallon equivalent means an amount of electricity or fuel 
with the energy equivalence of one gallon of gasoline. For purposes of 
this part, one gallon of gasoline is equivalent to 33.705 kilowatt-
hours of electricity or 121.5 standard cubic feet of natural gas.
    Good engineering judgment has the meaning given in Sec.  1068.30 of 
this chapter. See Sec.  1068.5 of this chapter for the administrative 
process we use to evaluate good engineering judgment.
    Gross vehicle weight rating means the manufacturer's gross weight 
rating for the individual vehicle.
    Hatchback means a passenger automobile where the conventional 
luggage compartment, i.e., trunk, is replaced by a cargo area which is 
open to the passenger compartment and accessed vertically by a rear 
door which encompasses the rear window.
    Highway fuel economy means the highway fuel economy determined 
either by operating a vehicle (or vehicles) over the driving schedule 
in the Federal highway fuel economy test procedure, or determined 
according to either the vehicle-specific 5-cycle equation or the 
derived 5-cycle equation for highway fuel economy.
    Highway fuel economy test procedure (HFET) refers to the 
dynamometer driving schedule, dynamometer procedure, and sampling and 
analytical procedures described in subpart B of this part and which are 
used to derive highway fuel economy data.
    HFET-based fuel economy means the highway fuel economy determined 
in Sec.  600.113 of this part, on the basis of HFET testing.
    Hybrid electric vehicle (HEV) has the meaning given in Sec.  
86.1803 of this chapter.
    Independent Commercial Importer has the meaning given in Sec.  
85.1502 of this chapter.
    Inertia weight class means the class, which is a group of test 
weights, into which a vehicle is grouped based on its loaded vehicle 
weight in accordance with the provisions of part 86 of this chapter.
    Label means a sticker that contains fuel economy information and is 
affixed to new automobiles in accordance with subpart D of this part.
    Light truck means an automobile that is not a passenger automobile, 
as defined by the Secretary of Transportation at 49 CFR 523.5. This 
term is interchangeable with ``non-passenger automobile.'' The term 
``light truck'' includes medium-duty passenger vehicles which are 
manufactured during 2011 and later model years.
    Medium-duty passenger vehicle means a vehicle which would satisfy 
the criteria for light trucks as defined by the Secretary of 
Transportation at 49 CFR 523.5 but for its gross vehicle weight rating 
or its curb weight, which is rated at more than 8,500 lbs GVWR or has a 
vehicle curb weight of more than 6,000 pounds or has a basic vehicle 
frontal area in excess of 45 square feet, and which is designed 
primarily to transport passengers, but does not include a vehicle that:
    (1) Is an ``incomplete truck'' as defined in this subpart; or
    (2) Has a seating capacity of more than 12 persons; or
    (3) Is designed for more than 9 persons in seating rearward of the 
driver's seat; or
    (4) Is equipped with an open cargo area (for example, a pick-up 
truck box or bed) of 72.0 inches in interior length or more. A covered 
box not readily accessible from the passenger compartment will be 
considered an open cargo area for purposes of this definition.
    Minivan means a light truck which is designed primarily to carry no 
more than eight passengers, having an integral enclosure fully 
enclosing the driver, passenger, and load-carrying compartments, and 
rear seats readily removed, folded, stowed, or pivoted to facilitate 
cargo carrying. A minivan typically includes one or more sliding doors 
and a rear liftgate. Minivans typically have less total interior volume 
or overall height than full sized vans and are commonly advertised and 
marketed as ``minivans.''
    Model type means a unique combination of car line, basic engine, 
and transmission class.
    Model year means the manufacturer's annual production period (as 
determined by the Administrator) which includes January 1 of such 
calendar year. If a manufacturer has no annual production period, the 
term ``model year'' means the calendar year.
    Motor controller means an electronic or electro-mechanical device 
to convert energy stored in an energy storage device into a form 
suitable to power the traction motor.
    Natural gas-fueled automobile means an automobile designed to 
operate exclusively on natural gas.
    Natural gas dual fuel automobile means an automobile:
    (1) Which is designed to operate on natural gas and on gasoline or 
diesel fuel;
    (2) Which provides equal or greater energy efficiency as calculated 
in Sec.  600.510-08(g)(1) while operating on natural gas as it does 
while operating on gasoline or diesel fuel; and
    (3) Which, in the case of passenger automobiles, meets or exceeds 
the minimum driving range established by the Department of 
Transportation in 49 CFR part 538.
    Non-passenger automobile has the meaning given by the Department of 
Transportation at 49 CFR 523.5. This term is synonymous with ``light 
truck.''
    Passenger automobile has the meaning given by the Department of 
Transportation at 49 CFR 523.4.
    Pickup truck means a nonpassenger automobile which has a passenger 
compartment and an open cargo bed.

[[Page 39527]]

    Plug-in hybrid electric vehicle (PHEV) has the meaning given in 
Sec.  86.1803 of this chapter.
    Production volume means, for a domestic manufacturer, the number of 
vehicle units domestically produced in a particular model year but not 
exported, and for a foreign manufacturer, means the number of vehicle 
units of a particular model imported into the United States.
    QR Code means Quick Response Code, which is a registered trademark 
of Denso Wave, Incorporated.
    Round has the meaning given in Sec.  1065.1001 of this chapter, 
unless specified otherwise.
    SC03 means the test procedure specified in Sec.  86.160 of this 
chapter.
    Secretary of Energy means the Secretary of Energy or his authorized 
representative.
    Secretary of Transportation means the Secretary of Transportation 
or his authorized representative.
    Sport utility vehicle (SUV) means a light truck with an extended 
roof line to increase cargo or passenger capacity, cargo compartment 
open to the passenger compartment, and one or more rear seats readily 
removed or folded to facilitate cargo carrying.
    Station wagon means a passenger automobile with an extended roof 
line to increase cargo or passenger capacity, cargo compartment open to 
the passenger compartment, a tailgate, and one or more rear seats 
readily removed or folded to facilitate cargo carrying.
    Subconfiguration means a unique combination within a vehicle 
configuration of equivalent test weight, road-load horsepower, and any 
other operational characteristics or parameters which the Administrator 
determines may significantly affect fuel economy within a vehicle 
configuration.
    Test weight means the weight within an inertia weight class which 
is used in the dynamometer testing of a vehicle, and which is based on 
its loaded vehicle weight in accordance with the provisions of part 86 
of this chapter.
    Track width has the meaning given in Sec.  86.1803 of this chapter.
    Transmission class means a group of transmissions having the 
following common features: Basic transmission type (manual, automatic, 
or semi-automatic); number of forward gears used in fuel economy 
testing (e.g., manual four-speed, three-speed automatic, two-speed 
semi-automatic); drive system (e.g., front wheel drive, rear wheel 
drive; four wheel drive), type of overdrive, if applicable (e.g., final 
gear ratio less than 1.00, separate overdrive unit); torque converter 
type, if applicable (e.g., non-lockup, lockup, variable ratio); and 
other transmission characteristics that may be determined to be 
significant by the Administrator.
    Transmission configuration means the Administrator may further 
subdivide within a transmission class if the Administrator determines 
that sufficient fuel economy differences exist. Features such as gear 
ratios, torque converter multiplication ratio, stall speed, shift 
calibration, or shift speed may be used to further distinguish 
characteristics within a transmission class.
    Ultimate consumer means the first person who purchases an 
automobile for purposes other than resale or who leases an automobile.
    US06 means the test procedure as described in Sec.  86.159 of this 
chapter.
    US06-City means the combined periods of the US06 test that occur 
before and after the US06-Highway period.
    US06-Highway means the period of the US06 test that begins at the 
end of the deceleration which is scheduled to occur at 130 seconds of 
the driving schedule and terminates at the end of the deceleration 
which is scheduled to occur at 495 seconds of the driving schedule.
    Usable fuel storage capacity means the amount of fuel that is 
available to a vehicle starting from a complete refueling event until 
the vehicle stops (or until driveability deteriorates to the point that 
further driving is unlikely or impractical). For liquid fuels, the 
usable fuel storage capacity represents the difference between the 
total fuel volume after a complete refueling event and the fuel volume 
that remains in the fuel tank after the vehicle runs out of fuel. For 
other fuels, use good engineering judgment to determine the full and 
empty conditions consistent with typical consumer behavior. For 
example, for natural gas vehicles, the full condition would be the 
point at which a typical operator would stop refueling based on the 
increasing system pressures, which are determined by temperature 
effects related to the refueling process; this does not necessarily 
represent the maximum amount of fuel the tank can hold under 
equilibrium conditions. The empty condition would be the point at which 
fuel pressure drops enough that the engine is unable to maintain stable 
air-fuel ratios for acceptable continued operation.
    Van means any light truck having an integral enclosure fully 
enclosing the driver compartment and load carrying compartment. The 
distance from the leading edge of the windshield to the foremost body 
section of vans is typically shorter than that of pickup trucks and 
SUVs.
    Vehicle configuration means a unique combination of basic engine, 
engine code, inertia weight class, transmission configuration, and axle 
ratio within a base level.
    Vehicle-specific 5-cycle CO2 means the CO2 calculated 
according to the procedures in Sec.  600.114.
    Vehicle-specific 5-cycle fuel economy means the fuel economy 
calculated according to the procedures in Sec.  600.114.
    Wheelbase has the meaning given in Sec.  86.1803 of this chapter.

0
21. Newly redesignated Sec.  600.003 is revised to read as follows:

Sec.  600.003  Abbreviations.

    The abbreviations and acronyms used in this part have the same 
meaning as those in part 86 of this chapter, with the addition of the 
following:
    (a) ``MPG'' or ``mpg'' means miles per gallon. This may be used to 
generally describe fuel economy as a quantity, or it may be used as the 
units associated with a particular value.
    (b) MPGe means miles per gallon equivalent. This is generally used 
to quantify a fuel economy value for vehicles that use a fuel other 
than gasoline. The value represents miles the vehicle can drive with 
the energy equivalent of one gallon of gasoline.
    (c) SCF means standard cubic feet.
    (d) SUV means sport utility vehicle.
    (e) CREE means carbon-related exhaust emissions.

0
22. Newly redesignated Sec.  600.005 is amended by revising the 
introductory text and paragraph (a) to read as follows:

Sec.  600.005  Maintenance of records and rights of entry.

    The provisions of this section are applicable to all fuel economy 
data vehicles. Certification vehicles are required to meet the 
provisions of Sec.  86.1844 of this chapter.
    (a) The manufacturer of any new motor vehicle subject to any of the 
standards or procedures prescribed in this part shall establish, 
maintain, and retain the following adequately organized and indexed 
records:
    (1) General records. (i) Identification and description of all 
vehicles for which data are submitted to meet the requirements of this 
part.
    (ii) A description of all procedures used to test each vehicle.
    (iii) A copy of the information required to be submitted under 
Sec.  600.006 fulfills the requirements of paragraph (a)(1)(i) of this 
section.
    (2) Individual records. A brief history of each vehicle for which 
data are

[[Page 39528]]

submitted to meet the requirements of this part, in the form of a 
separate booklet or other document for each separate vehicle, in which 
must be recorded:
    (i) The steps taken to ensure that the vehicle with respect to its 
engine, drive train, fuel system, emission control system components, 
exhaust after treatment device, vehicle weight, or any other device or 
component, as applicable, will be representative of production 
vehicles. In the case of electric vehicles, the manufacturer should 
describe the steps taken to ensure that the vehicle with respect to its 
electric traction motor, motor controller, battery configuration, or 
any other device or component, as applicable, will be representative of 
production vehicles.
    (ii) A complete record of all emission tests performed under part 
86 of this chapter, all fuel economy tests performed under this part 
600 (except tests actually performed by EPA personnel), and all 
electric vehicle tests performed according to procedures promulgated by 
DOE, including all individual worksheets and other documentation 
relating to each such test or exact copies thereof; the date, time, 
purpose, and location of each test; the number of miles accumulated on 
the vehicle when the tests began and ended; and the names of 
supervisory personnel responsible for the conduct of the tests.
    (iii) A description of mileage accumulated since selection of 
buildup of such vehicles including the date and time of each mileage 
accumulation listing both the mileage accumulated and the name of each 
driver, or each operator of the automatic mileage accumulation device, 
if applicable. Additionally, a description of mileage accumulated prior 
to selection or buildup of such vehicle must be maintained in such 
detail as is available.
    (iv) If used, the record of any devices employed to record the 
speed or mileage, or both, of the test vehicle in relationship to time.
    (v) A record and description of all maintenance and other servicing 
performed, within 2,000 miles prior to fuel economy testing under this 
part, giving the date and time of the maintenance or service, the 
reason for it, the person authorizing it, and the names of supervisory 
personnel responsible for the conduct of the maintenance or service. A 
copy of the maintenance information to be submitted under Sec.  600.006 
fulfills the requirements of this paragraph (a)(2)(v).
    (vi) A brief description of any significant events affecting the 
vehicle during any of the period covered by the history not described 
in an entry under one of the previous headings including such 
extraordinary events as vehicle accidents or driver speeding citations 
or warnings.
    (3) Keeping records. The manufacturer shall retain all records 
required under this part for five years after the end of the model year 
to which they relate. Records may be retained as hard copy or some 
alternative storage medium, provided that in every case all the 
information contained in hard copy shall be retained.
* * * * *

0
23. Newly redesignated Sec.  600.006 is amended by revising paragraphs 
(c), (e), and (g) to read as follows:

Sec.  600.006  Data and information requirements for fuel economy data 
vehicles.

* * * * *
    (c) The manufacturer shall submit the following fuel economy data:
    (1) For vehicles tested to meet the requirements of part 86 of this 
chapter (other than those chosen in accordance with the provisions 
related to durability demonstration in Sec.  86.1829 of this chapter or 
in-use verification testing in Sec.  86.1845 of this chapter), the FTP, 
highway, US06, SC03 and cold temperature FTP fuel economy results, as 
applicable, from all tests on that vehicle, and the test results 
adjusted in accordance with paragraph (g) of this section.
    (2) For each fuel economy data vehicle, all individual test results 
(excluding results of invalid and zero mile tests) and these test 
results adjusted in accordance with paragraph (g) of this section.
    (3) For diesel vehicles tested to meet the requirements of part 86 
of this chapter, data from a cold temperature FTP, performed in 
accordance with Sec.  600.111-08(e), using the fuel specified in Sec.  
600.107-08(c).
    (4) For all vehicles tested in paragraph (c)(1) through (3) of this 
section, the individual fuel economy results measured on a per-phase 
basis, that is, the individual phase results for all sample phases of 
the FTP, cold temperature FTP and US06 tests.
    (5) Starting with the 2012 model year, the data submitted according 
to paragraphs (c)(1) through (4) of this section shall include total 
HC, CO, CO2, and, where applicable for alternative fuel 
vehicles, CH3OH, C2H5OH, 
C2H4O, HCHO, NMHC and CH4. 
Manufacturers incorporating N2O and CH4 emissions 
in their fleet average carbon-related exhaust emissions as allowed 
under Sec.  86.1818 of this chapter shall also submit N2O 
and CH4 emission data where applicable. The fuel economy, 
carbon-related exhaust emissions, and CO2 emission test 
results shall be adjusted in accordance with paragraph (g) of this 
section.
* * * * *
    (e) In lieu of submitting actual data from a test vehicle, a 
manufacturer may provide fuel economy, CO2 emissions, and 
carbon-related exhaust emission values derived from a previously tested 
vehicle, where the fuel economy, CO2 emissions, and carbon-
related exhaust emissions are expected to be equivalent (or less fuel-
efficient and with higher CO2 emissions and carbon-related 
exhaust emissions). Additionally, in lieu of submitting actual data 
from a test vehicle, a manufacturer may provide fuel economy, 
CO2 emissions, and carbon-related exhaust emission values 
derived from an analytical expression, e.g., regression analysis. In 
order for fuel economy, CO2 emissions, and carbon-related 
exhaust emission values derived from analytical methods to be accepted, 
the expression (form and coefficients) must have been approved by the 
Administrator.
* * * * *
    (g)(1) The manufacturer shall adjust all test data used for fuel 
economy label calculations in subpart D and average fuel economy 
calculations in subpart F for the classes of automobiles within the 
categories identified in paragraphs of Sec.  600.510(a)(1) through (4). 
The test data shall be adjusted in accordance with paragraph (g)(3) or 
(4) of this section as applicable.
    (2) [Reserved]
    (3)(i) The manufacturer shall adjust all fuel economy test data 
generated by vehicles with engine-drive system combinations with more 
than 6,200 miles by using the following equation:

FE4,000mi = FET[0.979 + 5.25 x 
10-\6\(mi)]-\1\

Where:

FE4,000mi = Fuel economy data adjusted to 4,000-mile test 
point rounded to the nearest 0.1 mpg.
FET = Tested fuel economy value rounded to the nearest 
0.1 mpg.
mi = System miles accumulated at the start of the test rounded to 
the nearest whole mile.

    (ii)(A) The manufacturer shall adjust all carbon-related exhaust 
emission (CREE) and all CO2 test data generated by vehicles 
with engine-drive system combinations with more than 6,200 miles by 
using the following equation:

ADJ4,000mi = TEST[0.979 + 5.25 [middot] 10-\6\ 
[middot] (mi)]

Where:ADJ4,000mi = CREE or CO2 emission data 
adjusted to 4,000-mile test point.

[[Page 39529]]

TEST = Tested emissions value of CREE or CO2 in grams per 
mile.
mi = System miles accumulated at the start of the test rounded to 
the nearest whole mile.

    (B) Emissions test values and results used and determined in the 
calculations in this paragraph (g)(3)(ii) shall be rounded in 
accordance with Sec.  86.1837 of this chapter as applicable. 
CO2 and CREE values shall be rounded to the nearest gram per 
mile.
    (C) Note that the CREE test results are determined using the 
unadjusted CO2 value; i.e., CO2 is not adjusted 
twice when determining the 4,000 mile CREE value.
    (4) For vehicles with 6,200 miles or less accumulated, the 
manufacturer is not required to adjust the data.
    (5) The Administrator may specify a different adjustment 
calculation for electric vehicles, plug-in hybrid electric vehicles, 
and fuel cell vehicles to allow for properly characterizing the fuel 
economy and emissions of these vehicles.

0
24. Newly redesignated Sec.  600.007 is amended by revising paragraphs 
(a), (b), and (e) to read as follows:

Sec.  600.007  Vehicle acceptability.

    (a) All certification vehicles and other vehicles tested to meet 
the requirements of part 86 of this chapter (other than those chosen 
under the durability-demonstration provisions in Sec.  86.1829 of this 
chapter), are considered to have met the requirements of this section.
    (b) Any vehicle not meeting the provisions of paragraph (a) of this 
section must be judged acceptable by the Administrator under this 
section in order for the test results to be reviewed for use in subpart 
C or F of this part. The Administrator will judge the acceptability of 
a fuel economy data vehicle on the basis of the information supplied by 
the manufacturer under Sec.  600.006(b). The criteria to be met are:
    (1) A fuel economy data vehicle may have accumulated not more than 
10,000 miles. A vehicle will be considered to have met this requirement 
if the engine and drivetrain have accumulated 10,000 or fewer miles. 
The Administrator may specify a different maximum value for electric 
vehicles, plug-in hybrid electric vehicles, and fuel cell vehicles that 
allows for the necessary operation for properly evaluating and 
characterizing those vehicles under this part. The components installed 
for a fuel economy test are not required to be the ones with which the 
mileage was accumulated, e.g., axles, transmission types, and tire 
sizes may be changed. The Administrator will determine if vehicle/
engine component changes are acceptable.
    (2) A vehicle may be tested in different vehicle configurations by 
change of vehicle components, as specified in paragraph (b)(1) of this 
section, or by testing in different inertia weight classes. Also, a 
single vehicle may be tested under different test conditions, i.e., 
test weight and/or road load horsepower, to generate fuel economy data 
representing various situations within a vehicle configuration. For 
purposes of this part, data generated by a single vehicle tested in 
various test conditions will be treated as if the data were generated 
by the testing of multiple vehicles.
    (3) The mileage on a fuel economy data vehicle must be, to the 
extent possible, accumulated according to Sec.  86.1831 of this 
chapter.
    (4) Each fuel economy data vehicle must meet the same exhaust 
emission standards as certification vehicles of the respective engine-
system combination during the test in which the city fuel economy test 
results are generated. This may be demonstrated using one of the 
following methods:
    (i) The deterioration factors established for the respective 
engine-system combination per Sec.  86.1841 of this chapter as 
applicable will be used; or
    (ii) The fuel economy data vehicle will be equipped with aged 
emission control components according to the provisions of Sec.  
86.1823 of this chapter.
    (5) The calibration information submitted under Sec.  600.006(b) 
must be representative of the vehicle configuration for which the fuel 
economy, CO2 emissions, and carbon-related exhaust emissions 
data were submitted.
    (6) Any vehicle tested for fuel economy, CO2 emissions, 
or carbon-related exhaust emissions purposes must be representative of 
a vehicle which the manufacturer intends to produce under the 
provisions of a certificate of conformity.
    (7) For vehicles imported under Sec.  85.1509 or Sec.  
85.1511(b)(2), (b)(4), (c)(1), (c)(2) or (d) of this chapter (when 
applicable), only the following requirements must be met:
    (i) For vehicles imported under Sec.  85.1509 of this chapter, a 
highway fuel economy value must be generated contemporaneously with the 
emission tests used for purposes of demonstrating compliance with Sec.  
85.1509 of this chapter. No modifications or adjustments should be made 
to the vehicles between the highway fuel economy, FTP, US06, SC03 and 
Cold temperature FTP tests.
    (ii) For vehicles imported under Sec.  85.1509 or Sec.  
85.1511(b)(2), (b)(4), (c)(1), or (c)(2) of this chapter (when 
applicable) with over 10,000 miles, the equation in Sec.  600.006(g)(3) 
shall be used as though only 10,000 miles had been accumulated.
    (iii) Any required fuel economy testing must take place after any 
safety modifications are completed for each vehicle as required by 
regulations of the Department of Transportation.
    (iv) Every vehicle imported under Sec.  85.1509 or Sec.  
85.1511(b)(2), (b)(4), (c)(1), or (c)(2) of this chapter (when 
applicable) must be considered a separate type for the purposes of 
calculating a fuel economy label for a manufacturer's average fuel 
economy.
* * * * *
    (e) If, based on a review of the emission data for a fuel economy 
data vehicle, submitted under Sec.  600.006(b), or emission data 
generated by a vehicle tested under Sec.  600.008(e), the Administrator 
finds an indication of non-compliance with section 202 of the Clean Air 
Act, 42 U.S.C. 1857 et seq. of the regulation thereunder, he may take 
such investigative actions as are appropriate to determine to what 
extent emission non-compliance actually exists.
    (1) The Administrator may, under the provisions of Sec.  86.1830 of 
this chapter, request the manufacturer to submit production vehicles of 
the configuration(s) specified by the Administrator for testing to 
determine to what extent emission noncompliance of a production vehicle 
configuration or of a group of production vehicle configurations may 
actually exist.
    (2) If the Administrator determines, as a result of his 
investigation, that substantial emission non-compliance is exhibited by 
a production vehicle configuration or group of production vehicle 
configurations, he may proceed with respect to the vehicle 
configuration(s) as provided under section 206 or 207, as applicable, 
of the Clean Air Act, 42 U.S.C. 1857 et seq.
* * * * *

0
25. Newly redesignated Sec.  600.008 is amended by revising the section 
heading and paragraphs (a)(1) and (a)(2)(i) to read as follows:

Sec.  600.008  Review of fuel economy, CO2 emissions, and carbon-
related exhaust emission data, testing by the Administrator.

    (a) * * *
    (1)(i) The Administrator may require that any one or more of the 
test vehicles be submitted to the Agency, at such place or places as 
the Agency may designate, for the purposes of

[[Page 39530]]

conducting fuel economy tests. The Administrator may specify that such 
testing be conducted at the manufacturer's facility, in which case 
instrumentation and equipment specified by the Administrator shall be 
made available by the manufacturer for test operations. The tests to be 
performed may comprise the FTP, highway fuel economy test, US06, SC03, 
or Cold temperature FTP or any combination of those tests. Any testing 
conducted at a manufacturer's facility pursuant to this paragraph shall 
be scheduled by the manufacturer as promptly as possible.
    (ii) Starting with the 2012 model year for carbon-related exhaust 
emissions and with the 2013 model year for CO2 emissions, 
the evaluations, testing, and test data described in this section 
pertaining to fuel economy shall also be performed for CO2 
emissions and carbon-related exhaust emissions, except that 
CO2 emissions and carbon-related exhaust emissions shall be 
arithmetically averaged instead of harmonically averaged, and in cases 
where the manufacturer selects the lowest of several fuel economy 
results to represent the vehicle, the manufacturer shall select the 
CO2 emissions and carbon-related exhaust emissions value 
from the test results associated with the lowest selected fuel economy 
results.
    (2) * * *
    (i) The manufacturer's fuel economy data (or harmonically averaged 
data if more than one test was conducted) will be compared with the 
results of the Administrator's test.
* * * * *

0
26. Newly redesignated Sec.  600.009 is revised to read as follows:

Sec.  600.009  Hearing on acceptance of test data.

    (a) The manufacturer may request a hearing on the Administrator's 
decision if the Administrator rejects any of the following:
    (1) The use of a manufacturer's fuel economy data vehicle, in 
accordance with Sec.  600.008(e) or (g), or
    (2) The use of fuel economy data, in accordance with Sec.  
600.008(c), or (f), or
    (3) The determination of a vehicle configuration, in accordance 
with Sec.  600.206(a), or
    (4) The identification of a car line, in accordance with Sec.  
600.002, or
    (5) The fuel economy label values determined by the manufacturer 
under Sec.  600.312-08(a), then:
    (b) The request for a hearing must be filed in writing within 30 
days after being notified of the Administrator's decision. The request 
must be signed by an authorized representative of the manufacturer and 
include a statement specifying the manufacturer's objections to the 
Administrator's determinations, with data in support of such objection.
    (c) If, after the review of the request and supporting data, the 
Administrator finds that the request raises one or more substantial 
factual issues, the Administrator shall provide the manufacturer with a 
hearing in accordance with the provisions of 40 CFR part 1068, subpart 
G.
    (d) A manufacturer's use of any fuel economy data which the 
manufacturer challenges pursuant to this section shall not constitute 
final acceptance by the manufacturer nor prejudice the manufacturer in 
the exercise of any appeal pursuant to this section challenging such 
fuel economy data.

0
27. Newly redesignated Sec.  600.010 is amended by revising paragraphs 
(a) introductory text, (c), and (d) to read as follows:

Sec.  600.010  Vehicle test requirements and minimum data requirements.

    (a) Unless otherwise exempted from specific emission compliance 
requirements, for each certification vehicle defined in this part, and 
for each vehicle tested according to the emission test procedures in 
part 86 of this chapter for addition of a model after certification or 
approval of a running change (Sec.  86.1842 of this chapter, as 
applicable):
* * * * *
    (c) Minimum data requirements for labeling. (1) In order to 
establish fuel economy label values under Sec.  600.301, the 
manufacturer shall use only test data accepted in accordance with Sec.  
600.008 meeting the minimum coverage of:
    (i) Data required for emission certification under Sec. Sec.  
86.1828 and 86.1842 of this chapter.
    (ii)(A) FTP and HFET data from the highest projected model year 
sales subconfiguration within the highest projected model year sales 
configuration for each base level, and
    (B) If required under Sec.  600.115, for 2011 and later model year 
vehicles, US06, SC03 and cold temperature FTP data from the highest 
projected model year sales subconfiguration within the highest 
projected model year sales configuration for each base level. 
Manufacturers may optionally generate this data for any 2008 through 
2010 model years, and, 2011 and later model year vehicles, if not 
otherwise required.
    (iii) For additional model types established under Sec.  600.208-
08(a)(2), Sec.  600.208-12(a)(2) Sec.  600.209-08(a)(2), or Sec.  
600.209-12(a)(2) FTP and HFET data, and if required under Sec.  
600.115, US06, SC03 and Cold temperature FTP data from each 
subconfiguration included within the model type.
    (2) For the purpose of recalculating fuel economy label values as 
required under Sec.  600.314-08(b), the manufacturer shall submit data 
required under Sec.  600.507.
    (d) Minimum data requirements for the manufacturer's average fuel 
economy and average carbon-related exhaust emissions. For the purpose 
of calculating the manufacturer's average fuel economy and average 
carbon-related exhaust emissions under Sec.  600.510, the manufacturer 
shall submit FTP (city) and HFET (highway) test data representing at 
least 90 percent of the manufacturer's actual model year production, by 
configuration, for each category identified for calculation under Sec.  
600.510-08(a) or Sec.  600.510-12(a)(1).

0
28. Newly redesignated Sec.  600.011 is revised to read as follows:

Sec.  600.011  Incorporation by reference.

    (a) Certain material is incorporated by reference into this part 
with the approval of the Director of the Federal Register under 5 
U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that 
specified in this section, the Environmental Protection Agency must 
publish a notice of the change in the Federal Register and the material 
must be available to the public. All approved material is available for 
inspection at U.S. EPA, Air and Radiation Docket and Information 
Center, 1301 Constitution Ave., NW., Room B102, EPA West Building, 
Washington, DC 20460, (202) 202-1744, and is available from the sources 
listed below. It is also available for inspection at the National 
Archives and Records Administration (NARA). For information on the 
availability of this material at NARA, call 202-741-6030, or go to: 
http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html and is available from the sources 
listed below:
    (b) American Society for Testing and Materials, 100 Barr Harbor 
Drive, P.O. Box C700, West Conshohocken, PA, 19428-2959, (610) 832-
9585, http://www.astm.org/.
    (1) ASTM D975-11 Standard Specification for Diesel Fuel Oils, 
approved March 1, 2011, IBR approved for Sec.  600.107-08(b).
    (2) ASTM D 1298-99 (Reapproved 2005) Standard Practice for Density, 
Relative Density (Specific Gravity), or API Gravity of Crude Petroleum 
and Liquid Petroleum Products by Hydrometer Method, approved

[[Page 39531]]

November 1, 2005, IBR approved for Sec. Sec.  600.113-08(f) and (g), 
600.113-12(f) and (g), 600.510-08(g), and 600.510-12(g).
    (3) ASTM D 1945-03 (Reapproved 2010) Standard Test Method for 
Analysis of Natural Gas By Gas Chromatography, approved January 1, 
2010, IBR approved for Sec. Sec.  600.113-08(f) and 600.113-12(f).
    (4) ASTM D 3338/D 3338M -09 Standard Test Method for Estimation of 
Net Heat of Combustion of Aviation Fuels, approved April 15, 2009, IBR 
approved for Sec. Sec.  600.113-08(f) and 600.113-12(f).
    (5) ASTM D 3343-05 (Reapproved 2010) Standard Test Method for 
Estimation of Hydrogen Content of Aviation Fuels, approved October 1, 
2010, IBR approved for Sec. Sec.  600.113-08(f) and 600.113-12(f).
    (c) Society of Automotive Engineers, 400 Commonwealth Dr., 
Warrendale, PA 15096-0001, (877) 606-7323 (U.S. and Canada) or (724) 
776-4970 (outside the U.S. and Canada), http://www.sae.org.
    (1) Motor Vehicle Dimensions--Recommended Practice SAE 1100a 
(Report of Human Factors Engineering Committee, Society of Automotive 
Engineers, approved September 1973 as revised September 1975), IBR 
approved for Sec.  600.315-08(c).
    (2) SAE J1634, Electric Vehicle Energy Consumption and Range Test 
Procedure, Cancelled October 2002, IBR approved for Sec. Sec.  600.116-
12(a) and 600.311-12(j) and (k).
    (3) SAE J1711, Recommended Practice for Measuring the Exhaust 
Emissions and Fuel Economy of Hybrid-Electric Vehicles, Including Plug-
In Hybrid Vehicles, June 2010, IBR approved for Sec. Sec.  600.116-
12(b) and 600.311-12(d), (j), and (k).
    (d) International Organization for Standardization, Case Postale 
56, CH-1211 Geneva 20, Switzerland, (41) 22749 0111, http://www.iso.org, or central@iso.org.
    (1) ISO/IEC 18004:2006(E), Information technology--Automatic 
identification and data capture techniques--QR Code 2005 bar code 
symbology specification, Second Edition, September 1, 2006, IBR 
approved for Sec.  600.302-12(b).
    (2) [Reserved]

Subpart B--Fuel Economy and Carbon-Related Exhaust Emission Test 
Procedures

0
29. The heading for subpart B is revised as set forth above.

Sec. Sec.  600.101-08, 600.101-12, 600.101-86, 600.101-93, 600.102-78, 
600.103-78, 600.104-78, 600.105-78, 600.106-78, 600.107-78, 600.107-93, 
600.109-78, 600.110-78, 600.111-80, 600.111-93, 600.112-78, 600.113-78, 
600.113-88, and 600.113-93  [Removed]

0
30. Subpart B is amended by removing the following sections:

Sec.  600.101-08.  

    Sec.  600.101-12.
    Sec.  600.101-86.
    Sec.  600.101-93.
    Sec.  600.102-78.
    Sec.  600.103-78.
    Sec.  600.104-78.
    Sec.  600.105-78.
    Sec.  600.106-78.
    Sec.  600.107-78.
    Sec.  600.107-93.
    Sec.  600.109-78.
    Sec.  600.110-78.
    Sec.  600.111-80.
    Sec.  600.111-93.
    Sec.  600.112-78.
    Sec.  600.113-78.
    Sec.  600.113-88
    Sec.  600.113-93.

0
31. Section Sec.  600.106-08 is revised to read as follows:

Sec.  600.106-08  Equipment requirements.

    The requirements for test equipment to be used for all fuel economy 
testing are given in subparts B and C of part 86 of this chapter.

0
32. Section Sec.  600.107-08 is revised to read as follows:

Sec.  600.107-08  Fuel specifications.

    (a) The test fuel specifications for gasoline, diesel, methanol, 
and methanol-petroleum fuel mixtures are given in Sec.  86.113 of this 
chapter, except for cold temperature FTP fuel requirements for diesel 
and alternative fuel vehicles, which are given in paragraph (b) of this 
section.
    (b)(1) Diesel test fuel used for cold temperature FTP testing must 
comprise a winter-grade diesel fuel as specified in ASTM D975 
(incorporated by reference in Sec.  600.011). Alternatively, EPA may 
approve the use of a different diesel fuel, provided that the level of 
kerosene added shall not exceed 20 percent.
    (2) The manufacturer may request EPA approval of the use of an 
alternative fuel for cold temperature FTP testing.
    (c) Test fuels representing fuel types for which there are no 
specifications provided in Sec.  86.113 of this chapter may be used if 
approved in advance by the Administrator.

Sec.  600.108-78  [Redesignated as Sec.  600.108-08]

0
33. Redesignate Sec.  600.108-78 as Sec.  600.108-08.

0
34. Section Sec.  600.109-08 is amended by revising paragraph (b)(3) to 
read as follows:

Sec.  600.109-08  EPA driving cycles.

* * * * *
    (b) * * *
    (3) A graphic representation of the range of acceptable speed 
tolerances is found in Sec.  86.115 of this chapter.
* * * * *

0
35. Section 600.111-08 is revised to read as follows:

Sec.  600.111-08  Test procedures.

    This section provides test procedures for the FTP, highway, US06, 
SC03, and the cold temperature FTP tests. Testing shall be performed 
according to test procedures and other requirements contained in this 
part 600 and in part 86 of this chapter, including the provisions of 
part 86, subparts B, C, and S.
    (a) FTP testing procedures. The test procedures to be followed for 
conducting the FTP test are those prescribed in Sec. Sec.  86.127 
through 86.138 of this chapter, as applicable, except as provided for 
in paragraph (b)(5) of this section. (The evaporative loss portion of 
the test procedure may be omitted unless specifically required by the 
Administrator.)
    (b) Highway fuel economy testing procedures. (1) The Highway Fuel 
Economy Dynamometer Procedure (HFET) consists of a preconditioning 
highway driving sequence and a measured highway driving sequence.
    (2) The HFET is designated to simulate non-metropolitan driving 
with an average speed of 48.6 mph and a maximum speed of 60 mph. The 
cycle is 10.2 miles long with 0.2 stop per mile and consists of warmed-
up vehicle operation on a chassis dynamometer through a specified 
driving cycle. A proportional part of the diluted exhaust emission is 
collected continuously for subsequent analysis of hydrocarbons, carbon 
monoxide, carbon dioxide using a constant volume (variable dilution) 
sampler. Diesel dilute exhaust is continuously analyzed for 
hydrocarbons using a heated sample line and analyzer. Methanol and 
formaldehyde samples are collected and individually analyzed for 
methanol-fueled vehicles (measurement of methanol and formaldehyde may 
be omitted for 1993 through 1994 model year methanol-fueled vehicles 
provided a HFID calibrated on methanol is used for measuring HC plus 
methanol).

[[Page 39532]]

Methanol, ethanol, formaldehyde, and acetaldehyde samples are collected 
and individually analyzed for ethanol fueled vehicles.
    (3) Except in cases of component malfunction or failure, all 
emission control systems installed on or incorporated in a new motor 
vehicle must be functioning during all procedures in this subpart. The 
Administrator may authorize maintenance to correct component 
malfunction or failure.
    (4) The provisions of Sec.  86.128 of this chapter apply for 
vehicle transmission operation during highway fuel economy testing 
under this subpart.
    (5) Section 86.129 of this chapter applies for determination of 
road load power and test weight for highway fuel economy testing. The 
test weight for the testing of a certification vehicle will be that 
test weight specified by the Administrator under the provisions of part 
86 of this chapter. The test weight for a fuel economy data vehicle 
will be that test weight specified by the Administrator from the test 
weights covered by that vehicle configuration. The Administrator will 
base his selection of a test weight on the relative projected sales 
volumes of the various test weights within the vehicle configuration.
    (6) The HFET is designed to be performed immediately following the 
Federal Emission Test Procedure, Sec. Sec.  86.127 through 86.138 of 
this chapter. When conditions allow, the tests should be scheduled in 
this sequence. In the event the tests cannot be scheduled within three 
hours of the Federal Emission Test Procedure (including one hour hot 
soak evaporative loss test, if applicable) the vehicle should be 
preconditioned as in paragraph (b)(6)(i) or (ii) of this section, as 
applicable.
    (i) If the vehicle has experienced more than three hours of soak 
(68 [deg]F-86 [deg]F) since the completion of the Federal Emission Test 
Procedure, or has experienced periods of storage outdoors, or in 
environments where soak temperature is not controlled to 68 [deg]F-86 
[deg]F, the vehicle must be preconditioned by operation on a 
dynamometer through one cycle of the EPA Urban Dynamometer Driving 
Schedule, Sec.  86.115 of this chapter.
    (ii) EPA may approve a manufacturer's request for additional 
preconditioning in unusual circumstances.
    (7) Use the following procedure to determine highway fuel economy:
    (i) The dynamometer procedure consists of two cycles of the Highway 
Fuel Economy Driving Schedule (Sec.  600.109-08(b)) separated by 15 
seconds of idle. The first cycle of the Highway Fuel Economy Driving 
Schedule is driven to precondition the test vehicle and the second is 
driven for the fuel economy measurement.
    (ii) The provisions of Sec.  86.135 of this chapter, except for the 
overview and the allowance for practice runs, apply for highway fuel 
economy testing.
    (iii) Only one exhaust sample and one background sample are 
collected and analyzed for hydrocarbons (except diesel hydrocarbons 
which are analyzed continuously), carbon monoxide, and carbon dioxide. 
Methanol and formaldehyde samples (exhaust and dilution air) are 
collected and analyzed for methanol-fueled vehicles (measurement of 
methanol and formaldehyde may be omitted for 1993 through 1994 model 
year methanol-fueled vehicles provided a HFID calibrated on methanol is 
used for measuring HC plus methanol). Methanol, ethanol, formaldehyde, 
and acetaldehyde samples are collected and analyzed for ethanol fueled 
vehicles.
    (iv) The fuel economy measurement cycle of the test includes two 
seconds of idle indexed at the beginning of the second cycle and two 
seconds of idle indexed at the end of the second cycle.
    (8) If the engine is not running at the initiation of the highway 
fuel economy test (preconditioning cycle), the start-up procedure must 
be according to the manufacturer's recommended procedures. False starts 
and stalls during the preconditioning cycle must be treated as in Sec.  
86.136 of this chapter. If the vehicle stalls during the measurement 
cycle of the highway fuel economy test, the test is voided, corrective 
action may be taken according to Sec.  86.1834 of this chapter, and the 
vehicle may be rescheduled for testing. The person taking the 
corrective action shall report the action so that the test records for 
the vehicle contain a record of the action.
    (9) The following steps must be taken for each test:
    (i) Place the drive wheels of the vehicle on the dynamometer. The 
vehicle may be driven onto the dynamometer.
    (ii) Open the vehicle engine compartment cover and position the 
cooling fan(s) required. Manufacturers may request the use of 
additional cooling fans or variable speed fan(s) for additional engine 
compartment or under-vehicle cooling and for controlling high tire or 
brake temperatures during dynamometer operation. With prior EPA 
approval, manufacturers may perform the test with the engine 
compartment closed, e.g. to provide adequate air flow to an intercooler 
(through a factory installed hood scoop). Additionally, the 
Administrator may conduct fuel economy testing using the additional 
cooling set-up approved for a specific vehicle.
    (iii) Preparation of the CVS must be performed before the 
measurement highway driving cycle.
    (iv) The provisions of Sec.  86.137-94(b)(3) through (6) of this 
chapter apply for highway fuel economy test, except that only one 
exhaust sample collection bag and one dilution air sample collection 
bag need to be connected to the sample collection systems.
    (v) Operate the vehicle over one Highway Fuel Economy Driving 
Schedule cycle according to the dynamometer driving schedule specified 
in Sec.  600.109-08(b).
    (vi) When the vehicle reaches zero speed at the end of the 
preconditioning cycle, the driver has 17 seconds to prepare for the 
emission measurement cycle of the test.
    (vii) Operate the vehicle over one Highway Fuel Economy Driving 
Schedule cycle according to the dynamometer driving schedule specified 
in Sec.  600.109-08(b) while sampling the exhaust gas.
    (viii) Sampling must begin two seconds before beginning the first 
acceleration of the fuel economy measurement cycle and must end two 
seconds after the end of the deceleration to zero. At the end of the 
deceleration to zero speed, the roll or shaft revolutions must be 
recorded.
    (10) For alcohol-based dual fuel automobiles, the procedures of 
Sec.  600.111-08(a) and (b) shall be performed for each of the fuels on 
which the vehicle is designed to operate.
    (c) US06 Testing procedures. The test procedures to be followed for 
conducting the US06 test are those prescribed in Sec.  86.159 of this 
chapter, as applicable.
    (d) SC03 testing procedures. The test procedures to be followed for 
conducting the SC03 test are prescribed in Sec. Sec.  86.160 and 86.161 
of this chapter, as applicable.
    (e) Cold temperature FTP procedures. The test procedures to be 
followed for conducting the cold temperature FTP test are generally 
prescribed in subpart C of part 86 of this chapter, as applicable. For 
the purpose of fuel economy labeling, diesel vehicles are subject to 
cold temperature FTP testing, but are not required to measure 
particulate matter, as described in Sec.  86.210 of this chapter.

[[Page 39533]]

    (f) Special test procedures. The Administrator may prescribe test 
procedures, other than those set forth in this subpart B, for any 
vehicle which is not susceptible to satisfactory testing and/or testing 
results by the procedures set forth in this part. For example, special 
test procedures may be used for advanced technology vehicles, 
including, but not limited to fuel cell vehicles, hybrid electric 
vehicles using hydraulic energy storage, and vehicles equipped with 
hydrogen internal combustion engines. Additionally, the Administrator 
may conduct fuel economy and carbon-related exhaust emission testing 
using the special test procedures approved for a specific vehicle.

0
36. Section 600.113-08 is amended by revising paragraph (f) to read as 
follows:

Sec.  600.113-08  Fuel economy calculations for FTP, HFET, US06, SC03 
and cold temperature FTP tests.

* * * * *
    (f)(1) Gasoline test fuel properties shall be determined by 
analysis of a fuel sample taken from the fuel supply. A sample shall be 
taken after each addition of fresh fuel to the fuel supply. 
Additionally, the fuel shall be resampled once a month to account for 
any fuel property changes during storage. Less frequent resampling may 
be permitted if EPA concludes, on the basis of manufacturer-supplied 
data, that the properties of test fuel in the manufacturer's storage 
facility will remain stable for a period longer than one month. The 
fuel samples shall be analyzed to determine the following fuel 
properties:
    (i) Specific gravity per ASTM D 1298 (incorporated by reference in 
Sec.  600.011).
    (ii) Carbon weight fraction per ASTM D 3343 (incorporated by 
reference in Sec.  600.011).
    (iii) Net heating value (Btu/lb) per ASTM D 3338/D 3338M 
(incorporated by reference in Sec.  600.011).
    (2) Methanol test fuel shall be analyzed to determine the following 
fuel properties:
    (i) Specific gravity using ASTM D 1298 (incorporated by reference 
in Sec.  600.011). You may determine specific gravity for the blend, or 
you may determine specific gravity for the gasoline and methanol fuel 
components separately before combining the results using the following 
equation:

SG = SGgx volume fraction gasoline + SGmx volume 
fraction methanol.

    (ii)(A) Carbon weight fraction using the following equation:

CWF= CWFgx MFg+ 0.375 x MFm

Where:

CWFg= Carbon weight fraction of gasoline portion of blend 
per ASTM D 3343 (incorporated by reference in Sec.  600.011).
MFg = Mass fraction gasoline = (G x SGg)/(G x 
SGg+ M x SGm)
MFm = Mass fraction methanol = (M x SGm)/(G x 
SGg+ M x SGm)

Where:

G = Volume fraction gasoline.
M = Volume fraction methanol.
SGg = Specific gravity of gasoline as measured by ASTM D 
1298 (incorporated by reference in Sec.  600.011).
SGm = Specific gravity of methanol as measured by ASTM D 
1298 (incorporated by reference in Sec.  600.011).

    (B) Upon the approval of the Administrator, other procedures to 
measure the carbon weight fraction of the fuel blend may be used if the 
manufacturer can show that the procedures are superior to or equally as 
accurate as those specified in this paragraph (f)(2)(ii).
    (3) Natural gas test fuel shall be analyzed to determine the 
following fuel properties:
    (i) Fuel composition per ASTM D 1945 (incorporated by reference in 
Sec.  600.011).
    (ii) Specific gravity (based on fuel composition per ASTM D 1945 
(incorporated by reference in Sec.  600.011).
    (iii) Carbon weight fraction based on the carbon contained only in 
the HC constituents of the fuel = weight of carbon in HC constituents 
divided by the total weight of fuel.
    (iv) Carbon weight fraction of fuel = total weight of carbon in the 
fuel (i.e., includes carbon contained in HC and in CO2) 
divided by total weight of fuel.
* * * * *

0
37. Section 600.113-12 is revised to read as follows:

Sec.  600.113-12  Fuel economy, CO2 emissions, and carbon-
related exhaust emission calculations for FTP, HFET, US06, SC03 and 
cold temperature FTP tests.

    The Administrator will use the calculation procedure set forth in 
this paragraph for all official EPA testing of vehicles fueled with 
gasoline, diesel, alcohol-based or natural gas fuel. The calculations 
of the weighted fuel economy and carbon-related exhaust emission values 
require input of the weighted grams/mile values for total hydrocarbons 
(HC), carbon monoxide (CO), and carbon dioxide (CO2); and, 
additionally for methanol-fueled automobiles, methanol 
(CH3OH) and formaldehyde (HCHO); and, additionally for 
ethanol-fueled automobiles, methanol (CH3OH), ethanol 
(C2H5OH), acetaldehyde 
(C2H4O), and formaldehyde (HCHO); and 
additionally for natural gas-fueled vehicles, non-methane hydrocarbons 
(NMHC) and methane (CH4). For manufacturers selecting the 
fleet averaging option for N2O and CH4 as allowed 
under Sec.  86.1818 of this chapter the calculations of the carbon-
related exhaust emissions require the input of grams/mile values for 
nitrous oxide (N2O) and methane (CH4). Emissions 
shall be determined for the FTP, HFET, US06, SC03 and cold temperature 
FTP tests. Additionally, the specific gravity, carbon weight fraction 
and net heating value of the test fuel must be determined. The FTP, 
HFET, US06, SC03 and cold temperature FTP fuel economy and carbon-
related exhaust emission values shall be calculated as specified in 
this section. An example fuel economy calculation appears in Appendix 
II of this part.
    (a) Calculate the FTP fuel economy as follows:
    (1) Calculate the weighted grams/mile values for the FTP test for 
CO2, HC, and CO, and where applicable, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC, 
N2O and CH4 as specified in Sec.  86.144-94(b) of 
this chapter. Measure and record the test fuel's properties as 
specified in paragraph (f) of this section.
    (2) Calculate separately the grams/mile values for the cold 
transient phase, stabilized phase and hot transient phase of the FTP 
test. For vehicles with more than one source of propulsion energy, one 
of which is a rechargeable energy storage system, or vehicles with 
special features that the Administrator determines may have a 
rechargeable energy source, whose charge can vary during the test, 
calculate separately the grams/mile values for the cold transient 
phase, stabilized phase, hot transient phase and hot stabilized phase 
of the FTP test.
    (b) Calculate the HFET fuel economy as follows:
    (1) Calculate the mass values for the highway fuel economy test for 
HC, CO and CO2, and where applicable, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC, 
N2O and CH4 as specified in Sec.  86.144-94(b) of 
this chapter. Measure and record the test fuel's properties as 
specified in paragraph (f) of this section.
    (2) Calculate the grams/mile values for the highway fuel economy 
test for HC, CO and CO2, and where applicable 
CH3OH, C2H5OH, 
C2H4O, HCHO, NMHC, N2O and 
CH4 by dividing the mass values obtained in paragraph (b)(1) 
of this section, by the actual driving distance, measured in miles, as 
specified in Sec.  86.135 of this chapter.
    (c) Calculate the cold temperature FTP fuel economy as follows:
    (1) Calculate the weighted grams/mile values for the cold 
temperature FTP test

[[Page 39534]]

for HC, CO and CO2, and where applicable, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC, 
N2O and CH4 as specified in Sec.  86.144-94(b) of 
this chapter. For 2008 through 2010 diesel-fueled vehicles, HC 
measurement is optional.
    (2) Calculate separately the grams/mile values for the cold 
transient phase, stabilized phase and hot transient phase of the cold 
temperature FTP test in Sec.  86.244 of this chapter.
    (3) Measure and record the test fuel's properties as specified in 
paragraph (f) of this section.
    (d) Calculate the US06 fuel economy as follows:
    (1) Calculate the total grams/mile values for the US06 test for HC, 
CO and CO2, and where applicable, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC, 
N2O and CH4 as specified in Sec.  86.144-94(b) of 
this chapter.
    (2) Calculate separately the grams/mile values for HC, CO and 
CO2, and where applicable, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC, 
N2O and CH4, for both the US06 City phase and the 
US06 Highway phase of the US06 test as specified in Sec.  86.164 of 
this chapter. In lieu of directly measuring the emissions of the 
separate city and highway phases of the US06 test according to the 
provisions of Sec.  86.159 of this chapter, the manufacturer may, with 
the advance approval of the Administrator and using good engineering 
judgment, optionally analytically determine the grams/mile values for 
the city and highway phases of the US06 test. To analytically determine 
US06 City and US06 Highway phase emission results, the manufacturer 
shall multiply the US06 total grams/mile values determined in paragraph 
(d)(1) of this section by the estimated proportion of fuel use for the 
city and highway phases relative to the total US06 fuel use. The 
manufacturer may estimate the proportion of fuel use for the US06 City 
and US06 Highway phases by using modal CO2, HC, and CO 
emissions data, or by using appropriate OBD data (e.g., fuel flow rate 
in grams of fuel per second), or another method approved by the 
Administrator.
    (3) Measure and record the test fuel's properties as specified in 
paragraph (f) of this section.
    (e) Calculate the SC03 fuel economy as follows:
    (1) Calculate the grams/mile values for the SC03 test for HC, CO 
and CO2, and where applicable, CH3OH, 
C2H5OH, C2H4O, HCHO, NMHC, 
N2O and CH4 as specified in Sec.  86.144-94(b) of 
this chapter.
    (2) Measure and record the test fuel's properties as specified in 
paragraph (f) of this section.
    (f) Analyze and determine fuel properties as follows:
    (1) Gasoline test fuel properties shall be determined by analysis 
of a fuel sample taken from the fuel supply. A sample shall be taken 
after each addition of fresh fuel to the fuel supply. Additionally, the 
fuel shall be resampled once a month to account for any fuel property 
changes during storage. Less frequent resampling may be permitted if 
EPA concludes, on the basis of manufacturer-supplied data, that the 
properties of test fuel in the manufacturer's storage facility will 
remain stable for a period longer than one month. The fuel samples 
shall be analyzed to determine the following fuel properties:
    (i) Specific gravity measured using ASTM D 1298 (incorporated by 
reference in Sec.  600.011).
    (ii) Carbon weight fraction measured using ASTM D 3343 
(incorporated by reference in Sec.  600.011).
    (iii) Net heating value (Btu/lb) determined using ASTM D 3338/D 
3338M (incorporated by reference in Sec.  600.011).
    (2) Methanol test fuel shall be analyzed to determine the following 
fuel properties:
    (i) Specific gravity using ASTM D 1298 (incorporated by reference 
in Sec.  600.011). You may determine specific gravity for the blend, or 
you may determine specific gravity for the gasoline and methanol fuel 
components separately before combining the results using the following 
equation:

SG = SGg x volume fraction gasoline + SGm x volume fraction methanol.

    (ii)(A) Carbon weight fraction using the following equation:

CWF = CWFg x MFg+ 0.375 x MFm

Where:

CWFg = Carbon weight fraction of gasoline portion of blend measured 
using ASTM D 3343 (incorporated by reference in Sec.  600.011).
MFg = Mass fraction gasoline = (G x SGg)/(G x SGg + M x SGm)
MFm = Mass fraction methanol = (M x SGm)/(G x SGg + M x SGm)

Where:

G = Volume fraction gasoline.
M = Volume fraction methanol.
SGg = Specific gravity of gasoline as measured using ASTM D 1298 
(incorporated by reference in Sec.  600.011).
SGm = Specific gravity of methanol as measured using ASTM D 1298 
(incorporated by reference in Sec.  600.011).

    (B) Upon the approval of the Administrator, other procedures to 
measure the carbon weight fraction of the fuel blend may be used if the 
manufacturer can show that the procedures are superior to or equally as 
accurate as those specified in this paragraph (f)(2)(ii).
    (3) Natural gas test fuel shall be analyzed to determine the 
following fuel properties:
    (i) Fuel composition measured using ASTM D 1945 (incorporated by 
reference in Sec.  600.011).
    (ii) Specific gravity measured as based on fuel composition per 
ASTM D 1945 (incorporated by reference in Sec.  600.011).
    (iii) Carbon weight fraction, based on the carbon contained only in 
the hydrocarbon constituents of the fuel. This equals the weight of 
carbon in the hydrocarbon constituents divided by the total weight of 
fuel.
    (iv) Carbon weight fraction of the fuel, which equals the total 
weight of carbon in the fuel (i.e., includes carbon contained in 
hydrocarbons and in CO2) divided by the total weight of 
fuel.
    (4) Ethanol test fuel shall be analyzed to determine the following 
fuel properties:
    (i) Specific gravity using ASTM D 1298 (incorporated by reference 
in Sec.  600.011). You may determine specific gravity for the blend, or 
you may determine specific gravity for the gasoline and methanol fuel 
components separately before combining the results using the following 
equation:

SG = SGg x volume fraction gasoline + SGe x volume fraction ethanol.

    (ii)(A) Carbon weight fraction using the following equation:

CWF = CWFg x MFg + 0.521 x MFe

Where:

CWFg = Carbon weight fraction of gasoline portion of blend measured 
using ASTM D 3343 (incorporated by reference in Sec.  600.011).
MFg = Mass fraction gasoline = (G x SGg)/(G x SGg + E x SGe)
MFe = Mass fraction ethanol = (E x SGe)/(G x SGg + E x SGe)

Where:

G = Volume fraction gasoline.
E = Volume fraction ethanol.
SGg = Specific gravity of gasoline as measured using ASTM D 1298 
(incorporated by reference in Sec.  600.011).
SGe = Specific gravity of ethanol as measured using ASTM D 1298 
(incorporated by reference in Sec.  600.011).

    (B) Upon the approval of the Administrator, other procedures to 
measure the carbon weight fraction of the fuel blend may be used if the 
manufacturer can show that the procedures are superior to or equally as 
accurate as those specified in this paragraph (f)(4)(ii).

[[Page 39535]]

    (g) Calculate separate FTP, highway, US06, SC03 and Cold 
temperature FTP fuel economy and carbon-related exhaust emissions from 
the grams/mile values for total HC, CO, CO2 and, where 
applicable, CH3OH, C2H5OH, 
C2H4O, HCHO, NMHC, N2O, and 
CH4, and the test fuel's specific gravity, carbon weight 
fraction, net heating value, and additionally for natural gas, the test 
fuel's composition.
    (1) Emission values for fuel economy calculations. The emission 
values (obtained per paragraph (a) through (e) of this section, as 
applicable) used in the calculations of fuel economy in this section 
shall be rounded in accordance with Sec.  86.1837 of this chapter. The 
CO2 values (obtained per this section, as applicable) used 
in each calculation of fuel economy in this section shall be rounded to 
the nearest gram/mile.
    (2) Emission values for carbon-related exhaust emission 
calculations. (i) If the emission values (obtained per paragraph (a) 
through (e) of this section, as applicable) were obtained from testing 
with aged exhaust emission control components as allowed under Sec.  
86.1823 of this chapter, then these test values shall be used in the 
calculations of carbon-related exhaust emissions in this section.
    (ii) If the emission values (obtained per paragraph (a) through (e) 
of this section, as applicable) were not obtained from testing with 
aged exhaust emission control components as allowed under Sec.  86.1823 
of this chapter, then these test values shall be adjusted by the 
appropriate deterioration factor determined according to Sec.  86.1823 
of this chapter before being used in the calculations of carbon-related 
exhaust emissions in this section. For vehicles within a test group, 
the appropriate NMOG deterioration factor may be used in lieu of the 
deterioration factors for CH3OH, 
C2H5OH, and/or C2H4O 
emissions.
    (iii) The emission values determined in paragraph (g)(2)(i) or (ii) 
of this section shall be rounded in accordance with Sec.  86.1837 of 
this chapter. The CO2 values (obtained per this section, as 
applicable) used in each calculation of carbon-related exhaust 
emissions in this section shall be rounded to the nearest gram/mile.
    (iv) For manufacturers complying with the fleet averaging option 
for N2O and CH4 as allowed under Sec.  86.1818 of 
this chapter, N2O and CH4 emission values for use 
in the calculation of carbon-related exhaust emissions in this section 
shall be the values determined according to paragraph (g)(2)(iv)(A), 
(B), or (C) of this section.
    (A) The FTP and HFET test values as determined for the emission 
data vehicle according to the provisions of Sec.  86.1835 of this 
chapter. These values shall apply to all vehicles tested under this 
section that are included in the test group represented by the emission 
data vehicle and shall be adjusted by the appropriate deterioration 
factor determined according to Sec.  86.1823 of this chapter before 
being used in the calculations of carbon-related exhaust emissions in 
this section, except that in-use test data shall not be adjusted by a 
deterioration factor.
    (B) The FTP and HFET test values as determined according to testing 
conducted under the provisions of this subpart. These values shall be 
adjusted by the appropriate deterioration factor determined according 
to Sec.  86.1823 of this chapter before being used in the calculations 
of carbon-related exhaust emissions in this section, except that in-use 
test data shall not be adjusted by a deterioration factor.
    (C) For the 2012 through 2014 model years only, manufacturers may 
use an assigned value of 0.010 g/mi for N2O FTP and HFET 
test values. This value is not required to be adjusted by a 
deterioration factor.
    (3) The specific gravity and the carbon weight fraction (obtained 
per paragraph (f) of this section) shall be recorded using three places 
to the right of the decimal point. The net heating value (obtained per 
paragraph (f) of this section) shall be recorded to the nearest whole 
Btu/lb.
    (4) For the purpose of determining the applicable in-use 
CO2 exhaust emission standard under Sec.  86.1818 of this 
chapter, the combined city/highway carbon-related exhaust emission 
value for a vehicle subconfiguration is calculated by arithmetically 
averaging the FTP-based city and HFET-based highway carbon-related 
exhaust emission values, as determined in paragraphs (h) through (n) of 
this section for the subconfiguration, weighted 0.55 and 0.45 
respectively, and rounded to the nearest tenth of a gram per mile.
    (h)(1) For gasoline-fueled automobiles tested on a test fuel 
specified in Sec.  86.113 of this chapter, the fuel economy in miles 
per gallon is to be calculated using the following equation and rounded 
to the nearest 0.1 miles per gallon:

mpg = (5174 x 10\4\ x CWF x SG)/[((CWF x HC) + (0.429 x CO) + (0.273 x 
CO2)) x ((0.6 x SG x NHV) + 5471)]

Where:

HC = Grams/mile HC as obtained in paragraph (g)(1) of this section.
CO = Grams/mile CO as obtained in paragraph (g)(1) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(1) of this section.
CWF = Carbon weight fraction of test fuel as obtained in paragraph 
(f)(1) of this section and rounded according to paragraph (g)(3) of 
this section.
NHV = Net heating value by mass of test fuel as obtained in 
paragraph (f)(1) of this section and rounded according to paragraph 
(g)(3) of this section.
SG = Specific gravity of test fuel as obtained in paragraph (f)(1) 
of this section and rounded according to paragraph (g)(3) of this 
section.

    (2)(i) For 2012 and later model year gasoline-fueled automobiles 
tested on a test fuel specified in Sec.  86.113 of this chapter, the 
carbon-related exhaust emissions in grams per mile is to be calculated 
using the following equation and rounded to the nearest 1 gram per 
mile:

CREE = (CWF/0.273xHC) + (1.571xCO) + CO2

Where:

CREE means the carbon-related exhaust emissions as defined in Sec.  
600.002.
HC = Grams/mile HC as obtained in paragraph (g)(2) of this section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
CWF = Carbon weight fraction of test fuel as obtained in paragraph 
(f)(1) of this section and rounded according to paragraph (g)(3) of 
this section.

    (ii) For manufacturers complying with the fleet averaging option 
for N2O and CH4 as allowed under Sec.  86.1818 of 
this chapter, the carbon-related exhaust emissions in grams per mile 
for 2012 and later model year gasoline-fueled automobiles tested on a 
test fuel specified in Sec.  86.113 of this chapter is to be calculated 
using the following equation and rounded to the nearest 1 gram per 
mile:

CREE = [(CWF/0.273) x NMHC] + (1.571 x CO) + CO2 + (298 x 
N2O) + (25 x CH4)

Where:

CREE means the carbon-related exhaust emissions as defined in Sec.  
600.002.
NMHC = Grams/mile NMHC as obtained in paragraph (g)(2) of this 
section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
N2O = Grams/mile N2O as obtained in paragraph 
(g)(2) of this section.
CH4 = Grams/mile CH4 as obtained in paragraph 
(g)(2) of this section.
CWF = Carbon weight fraction of test fuel as obtained in paragraph 
(f)(1) of this section and rounded according to paragraph (g)(3) of 
this section.

[[Page 39536]]

    (i)(1) For diesel-fueled automobiles, calculate the fuel economy in 
miles per gallon of diesel fuel by dividing 2778 by the sum of three 
terms and rounding the quotient to the nearest 0.1 mile per gallon:
    (i)(A) 0.866 multiplied by HC (in grams/miles as obtained in 
paragraph (g)(1) of this section), or
    (B) Zero, in the case of cold FTP diesel tests for which HC was not 
collected, as permitted in Sec.  600.113-08(c);
    (ii) 0.429 multiplied by CO (in grams/mile as obtained in paragraph 
(g)(1) of this section); and
    (iii) 0.273 multiplied by CO2 (in grams/mile as obtained 
in paragraph (g)(1) of this section).
    (2)(i) For 2012 and later model year diesel-fueled automobiles, the 
carbon-related exhaust emissions in grams per mile is to be calculated 
using the following equation and rounded to the nearest 1 gram per 
mile:

CREE = (3.172 x HC) + (1.571 x CO) + CO2

Where:

CREE means the carbon-related exhaust emissions as defined in Sec.  
600.002.
HC = Grams/mile HC as obtained in paragraph (g)(2) of this section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.

    (ii) For manufacturers complying with the fleet averaging option 
for N2O and CH4 as allowed under Sec.  86.1818 of 
this chapter, the carbon-related exhaust emissions in grams per mile 
for 2012 and later model year diesel-fueled automobiles is to be 
calculated using the following equation and rounded to the nearest 1 
gram per mile:

CREE = (3.172 x NMHC) + (1.571 x CO) + CO2 + (298 x 
N2O) + (25 x CH4)

Where:

CREE means the carbon-related exhaust emissions as defined in Sec.  
600.002.
NMHC = Grams/mile NMHC as obtained in paragraph (g)(2) of this 
section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
N2O = Grams/mile N2O as obtained in paragraph 
(g)(2) of this section.
CH4 = Grams/mile CH4 as obtained in paragraph 
(g)(2) of this section.

    (j)(1) For methanol-fueled automobiles and automobiles designed to 
operate on mixtures of gasoline and methanol, the fuel economy in miles 
per gallon is to be calculated using the following equation:

mpg = (CWF x SG x 3781.8)/((CWFexHC x HC) + (0.429 x CO) + 
(0.273 x CO2) + (0.375 x CH3OH) + (0.400 x HCHO))

Where:

CWF = Carbon weight fraction of the fuel as determined in paragraph 
(f)(2)(ii) of this section and rounded according to paragraph (g)(3) 
of this section.
SG = Specific gravity of the fuel as determined in paragraph 
(f)(2)(i) of this section and rounded according to paragraph (g)(3) 
of this section.
CWFexHC = Carbon weight fraction of exhaust hydrocarbons 
= CWF as determined in paragraph (f)(2)(ii) of this section and 
rounded according to paragraph (g)(3) of this section (for M100 
fuel, CWFexHC= 0.866).
HC = Grams/mile HC as obtained in paragraph (g)(1) of this section.
CO = Grams/mile CO as obtained in paragraph (g)(1) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(1) of this section.
CH3OH = Grams/mile CH3OH (methanol) as 
obtained in paragraph (g)(1) of this section.
HCHO = Grams/mile HCHO (formaldehyde) as obtained in paragraph 
(g)(1) of this section.

    (2)(i) For 2012 and later model year methanol-fueled automobiles 
and automobiles designed to operate on mixtures of gasoline and 
methanol, the carbon-related exhaust emissions in grams per mile is to 
be calculated using the following equation and rounded to the nearest 1 
gram per mile:

CREE = (CWFexHC/0.273 x HC) + (1.571 x CO) + (1.374 x 
CH3OH) + (1.466 x HCHO) + CO2

Where:

CREE means the carbon-related exhaust emission value as defined in 
Sec.  600.002.
CWFexHC = Carbon weight fraction of exhaust hydrocarbons 
= CWF as determined in paragraph (f)(2)(ii) of this section and 
rounded according to paragraph (g)(3) of this section (for M100 
fuel, CWFexHC= 0.866).
HC = Grams/mile HC as obtained in paragraph (g)(2) of this section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
CH3OH = Grams/mile CH3OH (methanol) as 
obtained in paragraph (g)(2) of this section.
HCHO = Grams/mile HCHO (formaldehyde) as obtained in paragraph 
(g)(2) of this section.

    (ii) For manufacturers complying with the fleet averaging option 
for N2O and CH4 as allowed under Sec.  86.1818 of 
this chapter, the carbon-related exhaust emissions in grams per mile 
for 2012 and later model year methanol-fueled automobiles and 
automobiles designed to operate on mixtures of gasoline and methanol is 
to be calculated using the following equation and rounded to the 
nearest 1 gram per mile:

CREE = [(CWFexHC/0.273) x NMHC] + (1.571 x CO) + (1.374 x 
CH3OH) + (1.466 x HCHO) + CO2 + (298 x 
N2O) + (25 x CH4)

Where:

CREE means the carbon-related exhaust emission value as defined in 
Sec.  600.002.
CWFexHC = Carbon weight fraction of exhaust hydrocarbons 
= CWF as determined in paragraph (f)(2)(ii) of this section and 
rounded according to paragraph (g)(3) of this section (for M100 
fuel, CWFexHC = 0.866).
NMHC = Grams/mile HC as obtained in paragraph (g)(2) of this 
section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
CH3OH = Grams/mile CH3OH (methanol) as 
obtained in paragraph (g)(2) of this section.
HCHO = Grams/mile HCHO (formaldehyde) as obtained in paragraph 
(g)(2) of this section.
N2O = Grams/mile N2O as obtained in paragraph 
(g)(2) of this section.
CH4 = Grams/mile CH4 as obtained in paragraph 
(g)(2) of this section.

    (k)(1) For automobiles fueled with natural gas, the fuel economy in 
miles per gallon of natural gas is to be calculated using the following 
equation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.013

Where:

mpge = miles per gasoline gallon equivalent of natural 
gas.
    CWFHC/NG = carbon weight fraction based on the 
hydrocarbon constituents in the natural gas fuel as obtained in 
paragraph (f)(3) of this section and rounded according to paragraph 
(g)(3) of this section.
DNG = density of the natural gas fuel [grams/ft\3\ at 68 
[deg]F (20 [deg]C) and 760 mm Hg (101.3 kPa)] pressure as obtained 
in paragraph (g)(3) of this section.
CH4, NMHC, CO, and CO2 = weighted mass exhaust 
emissions [grams/mile] for methane, non-methane HC, carbon

[[Page 39537]]

monoxide, and carbon dioxide as obtained in paragraph (g)(2) of this 
section.
CWFNMHC = carbon weight fraction of the non-methane HC 
constituents in the fuel as determined from the speciated fuel 
composition per paragraph (f)(3) of this section and rounded 
according to paragraph (g)(3) of this section.
CO2NG = grams of carbon dioxide in the natural gas fuel 
consumed per mile of travel.
CO2NG = FCNG x DNG x WFCO2

Where:
[GRAPHIC] [TIFF OMITTED] TR06JY11.014

= cubic feet of natural gas fuel consumed per mile
Where:

CWFNG = the carbon weight fraction of the natural gas 
fuel as calculated in paragraph (f)(3) of this section.
WFCO2 = weight fraction carbon dioxide of the natural gas 
fuel calculated using the mole fractions and molecular weights of 
the natural gas fuel constituents per ASTM D 1945 (incorporated by 
reference in Sec.  600.011).

    (2)(i) For automobiles fueled with natural gas, the carbon-related 
exhaust emissions in grams per mile is to be calculated for 2012 and 
later model year vehicles using the following equation and rounded to 
the nearest 1 gram per mile:

CREE = 2.743 x CH4 + CWFNMHC/0.273 x NMHC + 1.571 
x CO + CO2

Where:

CREE means the carbon-related exhaust emission value as defined in 
Sec.  600.002.
CH4 = Grams/mile CH4 as obtained in paragraph 
(g)(2) of this section.
NMHC = Grams/mile NMHC as obtained in paragraph (g)(2) of this 
section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
CWFNMHC = carbon weight fraction of the non-methane HC 
constituents in the fuel as determined from the speciated fuel 
composition per paragraph (f)(3) of this section and rounded 
according to paragraph (f)(3) of this section.

    (ii) For manufacturers complying with the fleet averaging option 
for N2O and CH4 as allowed under Sec.  86.1818 of 
this chapter, the carbon-related exhaust emissions in grams per mile 
for 2012 and later model year automobiles fueled with natural gas is to 
be calculated using the following equation and rounded to the nearest 1 
gram per mile:

CREE = (25 x CH4)+ [(CWFNMHC/0.273) x NMHC] + 
(1.571 x CO) + CO2 + (298 x N2O)

Where:

CREE means the carbon-related exhaust emission value as defined in 
Sec.  600.002.
CH4 = Grams/mile CH4 as obtained in paragraph 
(g)(2) of this section.
NMHC = Grams/mile NMHC as obtained in paragraph (g)(2) of this 
section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
CWFNMHC = carbon weight fraction of the non-methane HC 
constituents in the fuel as determined from the speciated fuel 
composition per paragraph (f)(3) of this section and rounded 
according to paragraph (f)(3) of this section.
N2O = Grams/mile N2O as obtained in paragraph 
(g)(2) of this section.

    (l)(1) For ethanol-fueled automobiles and automobiles designed to 
operate on mixtures of gasoline and ethanol, the fuel economy in miles 
per gallon is to be calculated using the following equation:

mpg = (CWF x SG x 3781.8)/((CWFexHC x HC) + (0.429 x CO) + 
(0.273 x CO2) + (0.375 x CH3OH) + (0.400 x HCHO) 
+ (0.521 x C2H5OH) + (0.545 x 
C2H4O))

Where:

CWF = Carbon weight fraction of the fuel as determined in paragraph 
(f)(4) of this section and rounded according to paragraph (f)(3) of 
this section.
SG = Specific gravity of the fuel as determined in paragraph (f)(4) 
of this section and rounded according to paragraph (f)(3) of this 
section.
CWFexHC= Carbon weight fraction of exhaust hydrocarbons = 
CWF as determined in paragraph (f)(4) of this section and rounded 
according to paragraph (f)(3) of this section.
HC = Grams/mile HC as obtained in paragraph (g)(1) of this section.
CO = Grams/mile CO as obtained in paragraph (g)(1) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(1) of this section.
CH3OH = Grams/mile CH3OH (methanol) as 
obtained in paragraph (g)(1) of this section.
HCHO = Grams/mile HCHO (formaldehyde) as obtained in paragraph 
(g)(1) of this section.
C2H5OH = Grams/mile 
C2H5OH (ethanol) as obtained in paragraph 
(g)(1) of this section.
C2H4O = Grams/mile C2H4O 
(acetaldehyde) as obtained in paragraph (g)(1) of this section.

    (2)(i) For 2012 and later model year ethanol-fueled automobiles and 
automobiles designed to operate on mixtures of gasoline and ethanol, 
the carbon-related exhaust emissions in grams per mile is to be 
calculated using the following equation and rounded to the nearest 1 
gram per mile:

CREE = (CWFexHC/0.273 x HC) + (1.571 x CO) + (1.374 x 
CH3OH) + (1.466 x HCHO) + (1.911 x 
C2H5OH) + (1.998 x C2H4O) + 
CO2Where:
CREE means the carbon-related exhaust emission value as defined in 
Sec.  600.002.
CWFexHC = Carbon weight fraction of exhaust hydrocarbons 
= CWF as determined in paragraph (f)(4) of this section and rounded 
according to paragraph (f)(3) of this section.
HC = Grams/mile HC as obtained in paragraph (g)(2) of this section.
CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
CH3OH = Grams/mile CH3OH (methanol) as 
obtained in paragraph (g)(2) of this section.
HCHO = Grams/mile HCHO (formaldehyde) as obtained in paragraph 
(g)(2) of this section.
C2H5OH = Grams/mile 
C2H5OH (ethanol) as obtained in paragraph 
(g)(2) of this section.
C2H4O = Grams/mile C2H4O 
(acetaldehyde) as obtained in paragraph (g)(2) of this section.

    (ii) For manufacturers complying with the fleet averaging option 
for N2O and CH4 as allowed under Sec.  86.1818 of 
this chapter, the carbon-related exhaust emissions in grams per mile 
for 2012 and later model year ethanol-fueled automobiles and 
automobiles designed to operate on mixtures of gasoline and ethanol is 
to be calculated using the following equation and rounded to the 
nearest 1 gram per mile:

CREE = [(CWFexHC/0.273) x NMHC] + (1.571 x CO) + (1.374 x 
CH3OH) + (1.466 x HCHO) + (1.911 x 
C2H5OH) + (1.998 x C2H4O) + 
CO2 + (298 x N2O) + (25 x CH4)

Where:

CREE means the carbon-related exhaust emission value as defined in 
Sec.  600.002.
CWFexHC = Carbon weight fraction of exhaust hydrocarbons 
= CWF as determined in paragraph (f)(4) of this section and rounded 
according to paragraph (f)(3) of this section.
NMHC = Grams/mile HC as obtained in paragraph (g)(2) of this 
section.

[[Page 39538]]

CO = Grams/mile CO as obtained in paragraph (g)(2) of this section.
CO2 = Grams/mile CO2 as obtained in paragraph 
(g)(2) of this section.
CH3OH = Grams/mile CH3OH (methanol) as 
obtained in paragraph (g)(2) of this section.
HCHO = Grams/mile HCHO (formaldehyde) as obtained in paragraph 
(g)(2) of this section.
C2H5OH = Grams/mile 
C2H5OH (ethanol) as obtained in paragraph 
(g)(2) of this section.
C2H4O = Grams/mile C2H4O 
(acetaldehyde) as obtained in paragraph (g)(2) of this section.
N2O= Grams/mile N2O as obtained in paragraph 
(g)(2) of this section.
CH4= Grams/mile CH4 as obtained in paragraph 
(g)(2) of this section.

    (m) Manufacturers shall determine CO2 emissions and 
carbon-related exhaust emissions for electric vehicles, fuel cell 
vehicles, and plug-in hybrid electric vehicles according to the 
provisions of this paragraph (m). Subject to the limitations on the 
number of vehicles produced and delivered for sale as described in 
Sec.  86.1866 of this chapter, the manufacturer may be allowed to use a 
value of 0 grams/mile to represent the emissions of fuel cell vehicles 
and the proportion of electric operation of a electric vehicles and 
plug-in hybrid electric vehicles that is derived from electricity that 
is generated from sources that are not onboard the vehicle, as 
described in paragraphs (m)(1) through (3) of this section. For 
purposes of labeling under this part, the CO2 emissions for 
electric vehicles shall be 0 grams per mile. Similarly, the 
CO2 emissions for plug-in hybrid electric vehicles shall be 
0 grams per mile for the proportion of electric operation that is 
derived from electricity that is generated from sources that are not 
onboard the vehicle.
    (1) For 2012 and later model year electric vehicles, but not 
including fuel cell vehicles, the carbon-related exhaust emissions in 
grams per mile is to be calculated using the following equation and 
rounded to the nearest one gram per mile:

CREE = CREEUP-CREEGAS

Where:

CREE means the carbon-related exhaust emission value as defined in 
Sec.  600.002, which may be set equal to zero for eligible 2012 
through 2016 model year electric vehicles for a certain number of 
vehicles produced and delivered for sale as described in Sec.  
86.1866-12(a) of this chapter.
[GRAPHIC] [TIFF OMITTED] TR06JY11.015

 , andWhere:

EC = The vehicle energy consumption in watt-hours per mile, 
determined according to procedures established by the Administrator 
under Sec.  600.111-08(f).
GRIDLOSS = 0.93 (to account for grid transmission losses).
AVGUSUP = 0.642 (the nationwide average electricity greenhouse gas 
emission rate at the powerplant, in grams per watt-hour).
TargetCO2 = The CO2 Target Value determined 
according to Sec.  86.1818 of this chapter for passenger automobiles 
and light trucks, respectively.

(2) For 2012 and later model year plug-in hybrid electric vehicles, the 
carbon-related exhaust emissions in grams per mile is to be calculated 
using the following equation and rounded to the nearest one gram per 
mile:

CREE = (ECF x CREECD) + [(1-ECF) x CREECS],

Where:

CREE means the carbon-related exhaust emission value as defined in 
Sec.  600.002;
CREECS = The carbon-related exhaust emissions determined 
for charge-sustaining operation according to procedures established 
by the Administrator under Sec.  600.116; and
CREECD = CREECDEC + CREECDGAS

Where:

CREECDEC = The carbon-related exhaust emissions 
determined for electricity consumption during charge-depleting 
operation determined according to paragraph (m)(1) of this section; 
and
CREECDGAS = The carbon-related exhaust emissions 
determined for charge-depleting operation determined according to 
the provisions of this section for the applicable fuel according to 
procedures established by the Administrator under Sec.  600.116; and
ECF = Electricity consumption factor as determined by the 
Administrator.

    (3) For 2012 and later model year fuel cell vehicles, the 
carbon-related exhaust emissions in grams per mile shall be 
calculated using the method specified in paragraph (m)(1) of this 
section, except that CREEUP shall be determined according 
to procedures established by the Administrator under Sec.  600.111-
08(f). As described in Sec.  86.1866 of this chapter the value of 
CREE may be set equal to zero for a certain number of 2012 through 
2016 model year fuel cell vehicles.

    (n) Equations for fuels other than those specified in paragraphs 
(h) through (l) of this section may be used with advance EPA approval. 
Alternate calculation methods for fuel economy and carbon-related 
exhaust emissions may be used in lieu of the methods described in this 
section if shown to yield equivalent or superior results and if 
approved in advance by the Administrator.

0
38. Section 600.114-12 is added to read as follows:

Sec.  600.114-12  Vehicle-specific 5-cycle fuel economy and carbon-
related exhaust emission calculations.

    Paragraphs (a) through (f) of this section apply to data used for 
fuel economy labeling under subpart D of this part. Paragraphs (d) 
through (f) of this section are used to calculate 5-cycle carbon-
related exhaust emission values for the purpose of determining optional 
credits for CO2-reducing technologies under Sec.  86.1866 of 
this chapter and to calculate 5-cycle CO2 values for the 
purpose of fuel economy labeling under subpart D of this part.
    (a) City fuel economy. For each vehicle tested under Sec.  600.010-
08(a), (b), or (c), as applicable, determine the 5-cycle city fuel 
economy using the following equation:

[[Page 39539]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.016

    (2) Terms used in the equations in this paragraph (a) are defined 
as follows:

Bag Y FEX = the fuel economy in miles per gallon of fuel 
during bag Y of the FTP test conducted at an ambient temperature X of 
75 [deg]F or 20 [deg]F.
SC03 FE = fuel economy in mile per gallon over the SC03 test.
US06 City FE = fuel economy in miles per gallon over the ``city'' 
portion of the US06 test.

    (b) Highway fuel economy. (1) For each vehicle tested under Sec.  
600.010-08(a), (b), or (c), as applicable, determine the 5-cycle 
highway fuel economy using the following equation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.017

    (2) If the condition specified in Sec.  600.115-08(b)(2)(iii)(B) is 
met, in lieu of using the calculation in paragraph (b)(1) of this 
section, the manufacturer may optionally determine the highway fuel 
economy using the following modified 5-cycle equation which utilizes 
data from FTP, HFET, and US06 tests, and applies mathematic

[[Page 39540]]

adjustments for Cold FTP and SC03 conditions:
    (i) Perform a US06 test in addition to the FTP and HFET tests.
    (ii) Determine the 5-cycle highway fuel economy according to the 
following formula:
[GRAPHIC] [TIFF OMITTED] TR06JY11.018

    (3) Terms used in the equations in this paragraph (b) are defined 
as follows:

Bag Y FEX = the fuel economy in miles per gallon of fuel 
during bag Y of the FTP test conducted at an ambient temperature X of 
75 [deg]F or 20 [deg]F.
HFET FE = fuel economy in miles per gallon over the HFET test.
SC03 FE = fuel economy in mile per gallon over the SC03 test.
US06 Highway FE = fuel economy in miles per gallon over the highway 
portion of the US06 test.
US06 FE = fuel economy in miles per gallon over US06 test.

    (c) Fuel economy calculations for hybrid electric vehicles. Under 
the requirements of Sec.  86.1811, hybrid electric vehicles are subject 
to California test methods which require FTP emission sampling for the 
75 [deg]F FTP test over four phases (bags) of the UDDS (cold-start, 
transient, warm-start, transient). Optionally, these four phases may be 
combined into two phases (phases 1 + 2 and phases 3 + 4). Calculations 
for these sampling methods follow.
    (1) Four-bag FTP equations. If the 4-bag sampling method is used, 
manufacturers may use the equations in paragraphs (a) and (b) of this 
section to determine city and highway fuel economy estimates. If this 
method is chosen, it must be used to determine both city and highway 
fuel economy. Optionally, the following calculations may be used, 
provided that they are used to determine both city and highway fuel 
economy:
    (i) City fuel economy.

[[Page 39541]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.019

    (ii) Highway fuel economy.
    [GRAPHIC] [TIFF OMITTED] TR06JY11.020
    

[[Page 39542]]

    (2) Two-bag FTP equations. If the 2-bag sampling method is used for 
the 75 [deg]F FTP test, it must be used to determine both city and 
highway fuel economy. The following calculations must be used to 
determine both city and highway fuel economy:
    (i) City fuel economy.
    [GRAPHIC] [TIFF OMITTED] TR06JY11.021
    
    (ii) Highway fuel economy.
    [GRAPHIC] [TIFF OMITTED] TR06JY11.022
    

[[Page 39543]]

    (3) For hybrid electric vehicles using the modified 5-cycle highway 
calculation in paragraph (b)(2) of this section, the equation in 
paragraph (b)(2)(ii)(A) of this section applies except that the 
equation for Start Fuel75 will be replaced with one of the 
following:
    (i) The equation for Start Fuel75 for hybrids tested 
according to the 4-bag FTP is:
[GRAPHIC] [TIFF OMITTED] TR06JY11.023

    (ii) The equation for Start Fuel75 for hybrids tested 
according to the 2-bag FTP is:
[GRAPHIC] [TIFF OMITTED] TR06JY11.024

    (4) Terms used in the equations in this paragraph (b) are defined 
as follows:

Bag X/Y FE75 = fuel economy in miles per gallon of fuel 
during combined phases X and Y of the FTP test conducted at an ambient 
temperature of 75 [deg]F.
Bag Y FEX = the fuel economy in miles per gallon of fuel 
during bag Y of the FTP test conducted at an ambient temperature X of 
75 [deg]F or 20 [deg]F.
HFET FE = fuel economy in miles per gallon over the HFET test.
SC03 FE = fuel economy in mile per gallon over the SC03 test.
US06 City FE = fuel economy in miles per gallon over the city portion 
of the US06 test.
US06 Highway FE = fuel economy in miles per gallon over the highway 
portion of the US06 test.

    (d) City CO2 emissions and carbon-related exhaust emissions. For 
each vehicle tested, determine the 5-cycle city CO2 
emissions and carbon-related exhaust emissions using the following 
equation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.025

    (2) To determine the City CO2 emissions, use the 
appropriate CO2 grams/mile values instead of CREE values in 
the equations in this paragraph (d).
    (3) Terms used in the equations in this paragraph (d) are defined 
as follows:

Bag Y CREEX = the carbon-related exhaust emissions in grams 
per mile during bag Y of the FTP test conducted at an ambient 
temperature X of 75 [deg]F or 20 [deg]F.
US06 City CREE = carbon-related exhaust emissions in grams per mile 
over the city portion of the US06 test.
SC03 CREE = carbon-related exhaust emissions in grams per mile over the 
SC03 test.

    (e) Highway CO2 emissions and carbon-related exhaust emissions. (1) 
For each vehicle tested, determine the 5-cycle highway carbon-related 
exhaust emissions using the following equation:

[[Page 39544]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.026

    (2) If the condition specified in Sec.  600.115-08(b)(2)(iii)(B) is 
met, in lieu of using the calculation in paragraph (e)(1) of this 
section, the manufacturer may optionally determine the highway carbon-
related exhaust emissions using the following modified 5-cycle equation 
which utilizes data from FTP, HFET, and US06 tests, and applies 
mathematic adjustments for Cold FTP and SC03 conditions:
    (i) Perform a US06 test in addition to the FTP and HFET tests.
    (ii) Determine the 5-cycle highway carbon-related exhaust emissions 
according to the following formula:
[GRAPHIC] [TIFF OMITTED] TR06JY11.027

    (3) To determine the Highway CO2 emissions, use the 
appropriate CO2 grams/mile values instead of CREE values in 
the equations in this paragraph (e).
    (4) Terms used in the equations in this paragraph (e) are defined 
as follows:

A = 8,887 for gasoline-fueled vehicles, 10,180 for diesel-fueled 
vehicles, or an appropriate value specified by the Administrator for 
other fuels.
Bag Y CREEX = the carbon-related exhaust emissions in grams 
per mile during bag Y of the FTP test conducted at an ambient 
temperature X of 75 [deg]F or 20 [deg]F.
US06 Highway CREE = carbon-related exhaust emissions in grams per mile 
over the highway portion of the US06 test.
US06 CREE = carbon-related exhaust emissions in grams per mile over the 
US06 test.
HFET CREE = carbon-related exhaust emissions in grams per mile over the 
HFET test.

[[Page 39545]]

SC03 CREE = carbon-related exhaust emissions in grams per mile over the 
SC03 test.

    (f) CO2 and carbon-related exhaust emissions calculations for 
hybrid electric vehicles. Hybrid electric vehicles shall be tested 
according to California test methods which require FTP emission 
sampling for the 75 [deg]F FTP test over four phases (bags) of the UDDS 
(cold-start, transient, warm-start, transient). Optionally, these four 
phases may be combined into two phases (phases 1 + 2 and phases 3 + 4). 
Calculations for these sampling methods follow.
    (1) Four-bag FTP equations. If the 4-bag sampling method is used, 
manufacturers may use the equations in paragraphs (a) and (b) of this 
section to determine city and highway CO2 and carbon-related 
exhaust emissions values. If this method is chosen, it must be used to 
determine both city and highway CO2 emissions and carbon-
related exhaust emissions. Optionally, the following calculations may 
be used, provided that they are used to determine both city and highway 
CO2 and carbon-related exhaust emissions values:
    (i) City CO2 emissions and carbon-related exhaust emissions.
    [GRAPHIC] [TIFF OMITTED] TR06JY11.028
    
    (ii) Highway CO2 emissions and carbon-related exhaust emissions.

[[Page 39546]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.030

    (2) Two-bag FTP equations. If the 2-bag sampling method is used for 
the 75 [deg]F FTP test, it must be used to determine both city and 
highway CO2 emissions and carbon-related exhaust emissions. 
The following calculations must be used to determine both city and 
highway CO2 emissions and carbon-related exhaust emissions:
    (i) City CO2 emissions and carbon-related exhaust emissions.
    [GRAPHIC] [TIFF OMITTED] TR06JY11.031
    
    (ii) Highway CO2 emissions and carbon-related exhaust emissions.

[[Page 39547]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.032

    (3) For hybrid electric vehicles using the modified 5-cycle highway 
calculation in paragraph (e)(2) of this section, the equation in 
paragraph (e)(2)(ii)(A) of this section applies except that the 
equation for Start CREE75 will be replaced with one of the 
following:
    (i) The equation for Start CREE75 for hybrids tested 
according to the 4-bag FTP is:

Start CREE75= 3.6 x (Bag 1 CREE75 - Bag 3 
CREE75 + 3.9 x (Bag 2 CREE75 - Bag 4 
CREE75)

    (ii) The equation for Start CREE75 for hybrids tested 
according to the 2-bag FTP is:

Start CREE75= 7.5 x (Bag \1/2\ CREE75 - Bag \3/4\ 
CREE75)

    (4) To determine the City and Highway CO2 emissions, use 
the appropriate CO2 grams/mile values instead of CREE values 
in the equations in paragraphs (f)(1) through (3) of this section.
    (5) Terms used in the equations in this paragraph (e) are defined 
as follows:

Bag Y CREEX = the carbon-related exhaust emissions in grams 
per mile during bag Y of the FTP test conducted at an ambient 
temperature X of 75 [deg]F or 20 [deg]F.US06 City CREE = carbon-related 
exhaust emissions in grams per mile over the City portion of the US06 
test.
SC03 CREE = carbon-related exhaust emissions in grams per mile over the 
SC03 test.
US06 Highway CREE = carbon-related exhaust emissions in grams per mile 
over the Highway portion of the US06 test.
HFET CREE = carbon-related exhaust emissions in grams per mile over the 
HFET test.
Bag X/Y CREE75 = carbon-related exhaust emissions in grams 
per mile of fuel during combined phases X and Y of the FTP test 
conducted at an ambient temperature of 75 [deg]F.

Sec.  600.115-08  [Redesignated as Sec.  600.115-11]

0
39. Section 600.115-08 is redesignated as Sec.  600.115-11 and is 
revised to read as follows:

Sec.  600.115-11  Criteria for determining the fuel economy label 
calculation method.

    This section provides the criteria to determine if the derived 5-
cycle method for determining fuel economy label values, as specified in 
Sec.  600.210-08(a)(2) or (b)(2) or Sec.  600.210-12(a)(2) or (b)(2), 
as applicable, may be used to determine label values. Separate criteria 
apply to city and highway fuel economy for each test group. The 
provisions of this section are optional. If this option is not chosen, 
or if the criteria provided in this section are not met, fuel economy 
label values must be determined according to the vehicle-specific 5-
cycle method specified in Sec.  600.210-08(a)(1) or (b)(1) or Sec.  
600.210-12(a)(1) or (b)(1), as applicable. However, dedicated 
alternative-fuel vehicles, dual fuel vehicles when operating on the 
alternative fuel, plug-in hybrid electric vehicles, MDPVs, and vehicles 
imported by Independent Commercial Importers may use the derived 5-
cycle method for determining fuel economy label values whether or not 
the criteria provided in this section are met.
    (a) City fuel economy criterion. (1) For each test group certified 
for emission compliance under Sec.  86.1848 of this chapter, the FTP, 
HFET, US06, SC03 and Cold FTP tests determined to be official under 
Sec.  86.1835 of this chapter are used to calculate the vehicle-
specific 5-cycle city fuel economy which is then compared to the 
derived 5-cycle city fuel economy, as follows:
    (i) The vehicle-specific 5-cycle city fuel economy from the 
official FTP, HFET, US06, SC03 and Cold FTP tests for the test group is 
determined according to the provisions of Sec.  600.114-08(a) or (c) or 
Sec.  600.114-12(a) or (c) and rounded to the nearest one tenth of a 
mile per gallon.
    (ii) Using the same FTP data as used in paragraph (a)(1)(i) of this 
section, the corresponding derived 5-cycle city fuel economy is 
calculated according to the following equation:

[[Page 39548]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.033

Where:

City Intercept = Intercept determined by the Administrator. See 
Sec.  600.210-08(a)(2)(iii) or Sec.  600.210-12(a)(2)(iii).
City Slope = Slope determined by the Administrator. See Sec.  
600.210-08(a)(2)(iii) or Sec.  600.210-12(a)(2)(ii).
FTP FE = the FTP-based city fuel economy from the official test used 
for certification compliance, determined under Sec.  600.113-08(a), 
rounded to the nearest tenth.

    (2) The derived 5-cycle fuel economy value determined in paragraph 
(a)(1)(ii) of this section is multiplied by 0.96 and rounded to the 
nearest one tenth of a mile per gallon.
    (3) If the vehicle-specific 5-cycle city fuel economy determined in 
paragraph (a)(1)(i) of this section is greater than or equal to the 
value determined in paragraph (a)(2) of this section, then the 
manufacturer may base the city fuel economy estimates for the model 
types covered by the test group on the derived 5-cycle method specified 
in Sec.  600.210-08(a)(2) or (b)(2) or Sec.  600.210-12(a)(2) or 
(b)(2), as applicable.
    (b) Highway fuel economy criterion. The determination for highway 
fuel economy depends upon the outcome of the determination for city 
fuel economy in paragraph (a)(3) of this section for each test group.
    (1) If the city determination for a test group made in paragraph 
(a)(3) of this section does not allow the use of the derived 5-cycle 
method, then the highway fuel economy values for all model types 
represented by the test group are likewise not allowed to be determined 
using the derived 5-cycle method, and must be determined according to 
the vehicle-specific 5-cycle method specified in Sec.  600.210-08(a)(1) 
or (b)(1) or Sec.  600.210-12(a)(1) or (b)(1), as applicable.
    (2) If the city determination made in paragraph (a)(3) of this 
section allows the use of the derived 5-cycle method, a separate 
determination is made for the highway fuel economy labeling method as 
follows:
    (i) For each test group certified for emission compliance under 
Sec.  86.1848 of this chapter, the FTP, HFET, US06, SC03 and Cold FTP 
tests determined to be official under Sec.  86.1835 of this chapter are 
used to calculate the vehicle-specific 5-cycle highway fuel economy, 
which is then compared to the derived 5-cycle highway fuel economy, as 
follows:
    (A) The vehicle-specific 5-cycle highway fuel economy from the 
official FTP, HFET, US06, SC03 and Cold FTP tests for the test group is 
determined according to the provisions of Sec.  600.114-08(b)(1) or 
Sec.  600.114-12(b)(1) and rounded to the nearest one tenth of a mile 
per gallon.
    (B) Using the same HFET data as used in paragraph (b)(2)(i)(A) of 
this section, the corresponding derived 5-cycle highway fuel economy is 
calculated using the following equation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.034

Where:
Highway Intercept = Intercept determined by the Administrator. See 
Sec.  600.210-08(a)(2)(iii) or Sec.  600.210-12(a)(2)(iii).
Highway Slope = Slope determined by the Administrator. See Sec.  
600.210-08(a)(2)(iii) or Sec.  600.210-12(a)(2)(iii).
HFET FE = the HFET-based highway fuel economy determined under Sec.  
600.113-08(b), rounded to the nearest tenth.

    (ii) The derived 5-cycle highway fuel economy calculated in 
paragraph (b)(2)(i)(B) of this section is multiplied by 0.95 and 
rounded to the nearest one tenth of a mile per gallon.
    (iii) (A) If the vehicle-specific 5-cycle highway fuel economy of 
the vehicle tested in paragraph (b)(2)(i)(A) of this section is greater 
than or equal to the value determined in paragraph (b)(2)(ii) of this 
section, then the manufacturer may base the highway fuel economy 
estimates for the model types covered by the test group on the derived 
5-cycle method specified in Sec.  600.210-08(a)(2) or (b)(2) or Sec.  
600.210-12(a)(2) or (b)(2), as applicable.
    (B) If the vehicle-specific 5-cycle highway fuel economy determined 
in paragraph (b)(2)(i)(A) of this section is less than the value 
determined in paragraph (b)(2)(ii) of this section, the manufacturer 
may determine the highway fuel economy for the model types covered by 
the test group on the modified 5-cycle equation specified in Sec.  
600.114-08(b)(2) or Sec.  600.114-12(b)(2).
    (c) The manufacturer will apply the criteria in paragraph (a) and 
(b) of this section to every test group for each model year.
    (d) The tests used to make the evaluations in paragraphs (a) and 
(b) of this section will be the procedures for official test 
determinations under Sec.  86.1835. Adjustments and/or substitutions to 
the official test data may be made with advance approval of the 
Administrator.

0
40. Section 600.116-12 is added to subpart B to read as follows:

Sec.  600.116-12  Special procedures related to electric vehicles and 
plug-in hybrid electric vehicles.

    (a) Determine fuel economy label values for electric vehicles as 
specified in Sec. Sec.  600.210 and 600.311 using the procedures of SAE 
J1634 (incorporated by reference in Sec.  600.011), with the following 
clarifications and modifications:
    (1) Use one of the following approaches to define end-of-test 
criteria for vehicles whose maximum speed is less than the maximum 
speed specified in the driving schedule, where the vehicle's maximum 
speed is determined, to the nearest 0.1 mph, from observing the highest 
speed over the first duty cycle (FTP, HFET, etc.):
    (i) If the vehicle can follow the driving schedule within the speed 
tolerances specified in Sec.  86.115 of this chapter up to its maximum 
speed, the end-of-test criterion is based on the point at which the 
vehicle can no longer meet the specified speed tolerances up to and 
including its maximum speed.
    (ii) If the vehicle cannot follow the driving schedule within the 
speed tolerances specified in Sec.  86.115 of this chapter up to its 
maximum speed, the end-of-test criterion is based on the following 
procedure:
    (A) Measure and record the vehicle's speed (to the nearest 0.1 mph) 
while making a best effort to follow the specified driving schedule.

[[Page 39549]]

    (B) This recorded sequence of driving speeds becomes the driving 
schedule for the test vehicle. Apply the end-of-test criterion based on 
the point at which the vehicle can no longer meet the specified speed 
tolerances over this new driving schedule. The driving to establish the 
new driving schedule may be done separately, or as part of the 
measurement procedure.
    (2) Soak time between repeat duty cycles (four-bag FTP, HFET, etc.) 
may be up to 30 minutes. No recharging may occur during the soak time.
    (3) Recharging the vehicle's battery must start within three hours 
after the end of testing.
    (4) Do not apply the C coefficient adjustment specified in Section 
4.4.2.
    (5) We may approve alternate measurement procedures with respect to 
electric vehicles if they are necessary or appropriate for meeting the 
objectives of this part.
    (b) Determine performance values for plug-in hybrid electric 
vehicles as specified in Sec. Sec.  600.210 and 600.311 using the 
procedures of SAE J1711 (incorporated by reference in Sec.  600.011), 
with the following clarifications and modifications:
    (1) To determine fuel economy and CREE values to demonstrate 
compliance with CAFE and GHG standards, calculate composite values 
representing combined operation during charge-deplete and charge-
sustain operation using the following utility factors except as 
specified in this paragraph (b):

 Table 1 of Sec.   600.116-12--Fleet Utility Factors for Urban ``City''
                                 Driving
------------------------------------------------------------------------
                                                 Cumulative   Sequential
     Schedule range for UDDS phases, miles           UF           UF
------------------------------------------------------------------------
3.59..........................................        0.125        0.125
7.45..........................................        0.243        0.117
11.04.........................................        0.338        0.095
14.90.........................................        0.426        0.088
18.49.........................................        0.497        0.071
22.35.........................................        0.563        0.066
25.94.........................................        0.616        0.053
29.80.........................................        0.666        0.049
33.39.........................................        0.705        0.040
37.25.........................................        0.742        0.037
40.84.........................................        0.772        0.030
44.70.........................................        0.800        0.028
48.29.........................................        0.822        0.022
52.15.........................................        0.843        0.021
55.74.........................................        0.859        0.017
59.60.........................................        0.875        0.016
63.19.........................................        0.888        0.013
67.05.........................................        0.900        0.012
70.64.........................................        0.909        0.010
------------------------------------------------------------------------

 Table 2 of Sec.   600.116-12--Fleet Utility Factors for Highway Driving
------------------------------------------------------------------------
                                                 Cumulative   Sequential
        Schedule range for HFET, miles               UF           UF
------------------------------------------------------------------------
10.3..........................................        0.123        0.123
20.6..........................................        0.240        0.117
30.9..........................................        0.345        0.105
41.2..........................................        0.437        0.092
51.5..........................................        0.516        0.079
61.8..........................................        0.583        0.067
72.1..........................................        0.639        0.056
------------------------------------------------------------------------

     (2) To determine fuel economy and CO2 emission values 
for labeling purposes, calculate composite values representing combined 
operation during charge-deplete and charge-sustain operation using the 
following utility factors except as specified in this paragraph (b):

 Table 3 of Sec.   600.116-12--Multi-Day Individual Utility Factors for
                         Urban ``City'' Driving
------------------------------------------------------------------------
                                    Equivalent
 Schedule range for UDDS phases,     5-cycle     Cumulative   Sequential
              miles                 distance,        UF           UF
                                      miles
------------------------------------------------------------------------
3.59.............................         2.51         0.08         0.08
7.45.............................         5.22         0.15         0.08
11.04............................         7.73         0.22         0.06
14.90............................        10.43         0.28         0.06
18.49............................        12.94         0.33         0.05
22.35............................        15.65         0.38         0.05
25.94............................        18.16         0.43         0.04
29.80............................        20.86         0.47         0.04
33.39............................        23.37         0.50         0.04
37.25............................        26.08         0.54         0.04
40.84............................        28.59         0.57         0.03
44.70............................        31.29         0.60         0.03
48.29............................        33.80         0.62         0.02
52.15............................        36.51         0.65         0.02
55.74............................        39.02         0.67         0.02
59.60............................        41.72         0.69         0.02
63.19............................        44.23         0.71         0.02
67.05............................        46.94         0.72         0.02
70.64............................        49.45         0.74         0.01
74.50............................        52.15         0.75         0.01
78.09............................        54.66         0.78         0.03
81.95............................        57.37         0.79         0.01
85.54............................        59.88         0.80         0.01
89.40............................        62.58         0.81         0.01
92.99............................        65.09         0.82         0.01
------------------------------------------------------------------------

 Table 4 of Sec.   600.116-12--Multi-Day Individual Utility Factors for
                             Highway Driving
------------------------------------------------------------------------
                                    Equivalent
 Schedule range for HFET phases,     5-cycle     Cumulative   Sequential
              miles                 distance,        UF           UF
                                      miles
------------------------------------------------------------------------
10.30............................         7.21         0.21         0.21

[[Page 39550]]

 
20.60............................        14.42         0.36         0.16
30.90............................        21.63         0.48         0.12
41.20............................        28.84         0.57         0.09
51.50............................        36.05         0.64         0.07
61.80............................        43.26         0.70         0.06
72.10............................        50.47         0.75         0.04
82.40............................        57.68         0.78         0.04
92.70............................        64.89         0.81         0.03
103.00...........................        72.10         0.83         0.02
113.30...........................        79.31         0.85         0.02
------------------------------------------------------------------------

    (3) You may calculate performance values under paragraphs (b)(1) 
and (2) of this section by combining phases during FTP testing. For 
example, you may treat the first 7.45 miles as a single phase by adding 
the individual utility factors for that portion of driving and 
assigning emission levels to the combined phase. Do this consistently 
throughout a test run.
    (4) Instead of the utility factors specified in paragraphs (b)(1) 
and (2) of this section, calculate utility factors using the following 
equation for vehicles whose maximum speed is less than the maximum 
speed specified in the driving schedule, where the vehicle's maximum 
speed is determined, to the nearest 0.1 mph, from observing the highest 
speed over the first duty cycle (FTP, HFET, etc.):
[GRAPHIC] [TIFF OMITTED] TR06JY11.035

Where:

UFi = the utility factor for phase i. Let UF0 = 0.
j = a counter to identify the appropriate term in the summation 
(with terms numbered consecutively).
k = the number of terms in the equation (see Table 3 of this 
section).
di = the distance driven in phase i.
ND = the normalized distance. Use 399 for both FTP and HFET 
operation.
Cj = the coefficient for term j from the following table:

   Table 5 of Sec.   600.116-12--City/Highway Specific Utility Factor
                              Coefficients
------------------------------------------------------------------------
                                         Fleet values for     Multi-day
                                        CAFE and GHG values   individual
                                      ----------------------  value for
             Coefficient                                       labeling
                                                            ------------
                                          City     Highway     City or
                                                               highway
------------------------------------------------------------------------
1....................................      14.86        4.8         13.1
2....................................      2.965         13        -18.7
3....................................     -84.05        -65         5.22
4....................................      153.7        120         8.15
5....................................     -43.59    -100.00         3.53
6....................................     -96.94      31.00        -1.34
7....................................      14.47  .........        -4.01
8....................................      91.70  .........        -3.90
9....................................     -46.36  .........        -1.15
10...................................  .........  .........         3.88
------------------------------------------------------------------------

n = the number of test phases (or bag measurements) before the 
vehicle reaches the end-of-test criterion.

    (5) The end-of-test criterion is based on a 1 percent Net Energy 
Change as specified in Section 3.8. The Administrator may approve 
alternate Net Energy Change tolerances as specified in Section 3.9.1 or 
Appendix C if the 1 percent threshold is insufficient or inappropriate 
for marking the end of charge-deplete operation.
    (6) Use the vehicle's Actual Charge-Depleting Range, 
Rcda, as specified in Section 6.1.3 for evaluating the end-
of-test criterion.
    (7) Measure and record AC watt-hours throughout the recharging 
procedure. Position the measurement appropriately to account for any 
losses in the charging system.
    (8) We may approve alternate measurement procedures with respect to 
plug-in hybrid electric vehicles if they are necessary or appropriate 
for meeting the objectives of this part.

Subpart C--Procedures for Calculating Fuel Economy and Carbon-
related Exhaust Emission Values

0
41. The heading for subpart C is revised as set forth above.

[[Page 39551]]

Sec. Sec.  600.201-08, 600.201-12, 600.201-86, 600.201-93, 600.202-77, 
600.203-77, 600.204-77, 600.205-77, 600.206-86, 600.206-93, 600.207-86, 
600.207-93, 600.208-77, 600.209-85, 600.209-95, and 600.211-
08  [Removed]

0
42. Subpart C is amended by removing the following sections:
    Sec.  600.201-08.
    Sec.  600.201-12.
    Sec.  600.201-86.
    Sec.  600.201-93.
    Sec.  600.202-77.
    Sec.  600.203-77.
    Sec.  600.204-77.
    Sec.  600.205-77.
    Sec.  600.206-86.
    Sec.  600.206-93.
    Sec.  600.207-86.
    Sec.  600.207-93.
    Sec.  600.208-77.
    Sec.  600.209-85.
    Sec.  600.209-95.
    Sec.  600.211-08.

0
43. Section 600.206-12 is revised to read as follows:

Sec.  600.206-12  Calculation and use of FTP-based and HFET-based fuel 
economy, CO2 emissions, and carbon-related exhaust emission 
values for vehicle configurations.

    (a) Fuel economy, CO2 emissions, and carbon-related 
exhaust emissions values determined for each vehicle under Sec.  
600.113-08(a) and (b) and as approved in Sec.  600.008 (c), are used to 
determine FTP-based city, HFET-based highway, and combined FTP/Highway-
based fuel economy, CO2 emissions, and carbon-related 
exhaust emission values for each vehicle configuration for which data 
are available. Note that fuel economy for some alternative fuel 
vehicles may mean miles per gasoline gallon equivalent and/or miles per 
unit of fuel consumed. For example, electric vehicles will determine 
miles per kilowatt-hour in addition to miles per gasoline gallon 
equivalent, and fuel cell vehicles will determine miles per kilogram of 
hydrogen.
    (1) If only one set of FTP-based city and HFET-based highway fuel 
economy values is accepted for a vehicle configuration, these values, 
rounded to the nearest tenth of a mile per gallon, comprise the city 
and highway fuel economy values for that configuration. If only one set 
of FTP-based city and HFET-based highway CO2 emissions and 
carbon-related exhaust emission values is accepted for a vehicle 
configuration, these values, rounded to the nearest gram per mile, 
comprise the city and highway CO2 emissions and carbon-
related exhaust emission values for that configuration.
    (2) If more than one set of FTP-based city and HFET-based highway 
fuel economy and/or carbon-related exhaust emission values are accepted 
for a vehicle configuration:
    (i) All data shall be grouped according to the subconfiguration for 
which the data were generated using sales projections supplied in 
accordance with Sec.  600.208-12(a)(3).
    (ii) Within each group of data, all fuel economy values are 
harmonically averaged and rounded to the nearest 0.0001 of a mile per 
gallon and all CO2 emissions and carbon-related exhaust 
emission values are arithmetically averaged and rounded to the nearest 
tenth of a gram per mile in order to determine FTP-based city and HFET-
based highway fuel economy, CO2 emissions, and carbon-
related exhaust emission values for each subconfiguration at which the 
vehicle configuration was tested.
    (iii) All FTP-based city fuel economy, CO2 emissions, 
and carbon-related exhaust emission values and all HFET-based highway 
fuel economy and carbon-related exhaust emission values calculated in 
paragraph (a)(2)(ii) of this section are (separately for city and 
highway) averaged in proportion to the sales fraction (rounded to the 
nearest 0.0001) within the vehicle configuration (as provided to the 
Administrator by the manufacturer) of vehicles of each tested 
subconfiguration. Fuel economy values shall be harmonically averaged, 
and CO2 emissions and carbon-related exhaust emission values 
shall be arithmetically averaged. The resultant fuel economy values, 
rounded to the nearest 0.0001 mile per gallon, are the FTP-based city 
and HFET-based highway fuel economy values for the vehicle 
configuration. The resultant CO2 emissions and carbon-
related exhaust emission values, rounded to the nearest tenth of a gram 
per mile, are the FTP-based city and HFET-based highway CO2 
emissions and carbon-related exhaust emission values for the vehicle 
configuration.
    (3)(i) For the purpose of determining average fuel economy under 
Sec.  600.510, the combined fuel economy value for a vehicle 
configuration is calculated by harmonically averaging the FTP-based 
city and HFET-based highway fuel economy values, as determined in 
paragraph (a)(1) or (2) of this section, weighted 0.55 and 0.45 
respectively, and rounded to the nearest 0.0001 mile per gallon. A 
sample of this calculation appears in Appendix II of this part.
    (ii) For the purpose of determining average carbon-related exhaust 
emissions under Sec.  600.510, the combined carbon-related exhaust 
emission value for a vehicle configuration is calculated by 
arithmetically averaging the FTP-based city and HFET-based highway 
carbon-related exhaust emission values, as determined in paragraph 
(a)(1) or (2) of this section, weighted 0.55 and 0.45 respectively, and 
rounded to the nearest tenth of gram per mile.
    (4) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles the procedures of paragraphs (a)(1) or (2) of this section, 
as applicable, shall be used to calculate two separate sets of FTP-
based city, HFET-based highway, and combined values for fuel economy, 
CO2 emissions, and carbon-related exhaust emissions for each 
configuration.
    (i) Calculate the city, highway, and combined fuel economy, 
CO2 emissions, and carbon-related exhaust emission values 
from the tests performed using gasoline or diesel test fuel.
    (ii) Calculate the city, highway, and combined fuel economy, 
CO2 emissions, and carbon-related exhaust emission values 
from the tests performed using alcohol or natural gas test fuel.
    (b) If only one equivalent petroleum-based fuel economy value 
exists for an electric vehicle configuration, that value, rounded to 
the nearest tenth of a mile per gallon, will comprise the petroleum-
based fuel economy for that configuration.
    (c) If more than one equivalent petroleum-based fuel economy value 
exists for an electric vehicle configuration, all values for that 
vehicle configuration are harmonically averaged and rounded to the 
nearest 0.0001 mile per gallon for that configuration.

0
44. Section 600.207-12 is added to read as follows:

Sec.  600.207-12  Calculation and use of vehicle-specific 5-cycle-based 
fuel economy and CO2 emission values for vehicle 
configurations.

    (a) Fuel economy and CO2 emission values determined for 
each vehicle under Sec.  600.114 and as approved in Sec.  600.008(c), 
are used to determine vehicle-specific 5-cycle city and highway fuel 
economy and CO2 emission values for each vehicle 
configuration for which data are available.
    (1) If only one set of 5-cycle city and highway fuel economy and 
CO2 emission values is accepted for a vehicle configuration, 
these values, where fuel economy is rounded to the nearest 0.0001 of a 
mile per gallon and the CO2 emission value in grams per mile 
is rounded to the nearest tenth of a gram per mile, comprise the city 
and highway fuel economy and CO2 emission values for that 
configuration.
    (2) If more than one set of 5-cycle city and highway fuel economy 
and CO2

[[Page 39552]]

emission values are accepted for a vehicle configuration:
    (i) All data shall be grouped according to the subconfiguration for 
which the data were generated using sales projections supplied in 
accordance with Sec.  600.209-12(a)(3).
    (ii) Within each subconfiguration of data, all fuel economy values 
are harmonically averaged and rounded to the nearest 0.0001 of a mile 
per gallon in order to determine 5-cycle city and highway fuel economy 
values for each subconfiguration at which the vehicle configuration was 
tested, and all CO2 emissions values are arithmetically 
averaged and rounded to the nearest tenth of gram per mile to determine 
5-cycle city and highway CO2 emission values for each 
subconfiguration at which the vehicle configuration was tested.
    (iii) All 5-cycle city fuel economy values and all 5-cycle highway 
fuel economy values calculated in paragraph (a)(2)(ii) of this section 
are (separately for city and highway) averaged in proportion to the 
sales fraction (rounded to the nearest 0.0001) within the vehicle 
configuration (as provided to the Administrator by the manufacturer) of 
vehicles of each tested subconfiguration. The resultant values, rounded 
to the nearest 0.0001 mile per gallon, are the 5-cycle city and 5-cycle 
highway fuel economy values for the vehicle configuration.
    (iv) All 5-cycle city CO2 emission values and all 5-
cycle highway CO2 emission values calculated in paragraph 
(a)(2)(ii) of this section are (separately for city and highway) 
averaged in proportion to the sales fraction (rounded to the nearest 
0.0001) within the vehicle configuration (as provided to the 
Administrator by the manufacturer) of vehicles of each tested 
subconfiguration. The resultant values, rounded to the nearest 0.1 
grams per mile, are the 5-cycle city and 5-cycle highway CO2 
emission values for the vehicle configuration.
    (3) [Reserved]
    (4) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles the procedures of paragraphs (a)(1) and (2) of this section 
shall be used to calculate two separate sets of 5-cycle city and 
highway fuel economy and CO2 emission values for each 
configuration.
    (i) Calculate the 5-cycle city and highway fuel economy and 
CO2 emission values from the tests performed using gasoline 
or diesel test fuel.
    (ii) Calculate the 5-cycle city and highway fuel economy and 
CO2 emission values from the tests performed using alcohol 
or natural gas test fuel, if 5-cycle testing has been performed. 
Otherwise, the procedure in Sec.  600.210-12(a)(3) or (b)(3) applies.
    (b) If only one equivalent petroleum-based fuel economy value 
exists for an electric configuration, that value, rounded to the 
nearest tenth of a mile per gallon, will comprise the petroleum-based 
5-cycle fuel economy for that configuration.
    (c) If more than one equivalent petroleum-based 5-cycle fuel 
economy value exists for an electric vehicle configuration, all values 
for that vehicle configuration are harmonically averaged and rounded to 
the nearest 0.0001 mile per gallon for that configuration.

0
45. Section 600.208-12 is revised to read as follows:

Sec.  600.208-12  Calculation of FTP-based and HFET-based fuel economy, 
CO2 emissions, and carbon-related exhaust emissions for a 
model type.

    (a) Fuel economy, CO2 emissions, and carbon-related 
exhaust emissions for a base level are calculated from vehicle 
configuration fuel economy, CO2 emissions, and carbon-
related exhaust emissions as determined in Sec.  600.206-12(a), (b), or 
(c) as applicable, for low-altitude tests.
    (1) If the Administrator determines that automobiles intended for 
sale in the State of California and in section 177 states are likely to 
exhibit significant differences in fuel economy, CO2 
emissions, and carbon-related exhaust emissions from those intended for 
sale in other states, she will calculate fuel economy, CO2 
emissions, and carbon-related exhaust emissions for each base level for 
vehicles intended for sale in California and in section 177 states and 
for each base level for vehicles intended for sale in the rest of the 
states.
    (2) In order to highlight the fuel efficiency, CO2 
emissions, and carbon-related exhaust emissions of certain designs 
otherwise included within a model type, a manufacturer may wish to 
subdivide a model type into one or more additional model types. This is 
accomplished by separating subconfigurations from an existing base 
level and placing them into a new base level. The new base level is 
identical to the existing base level except that it shall be 
considered, for the purposes of this paragraph, as containing a new 
basic engine. The manufacturer will be permitted to designate such new 
basic engines and base level(s) if:
    (i) Each additional model type resulting from division of another 
model type has a unique car line name and that name appears on the 
label and on the vehicle bearing that label;
    (ii) The subconfigurations included in the new base levels are not 
included in any other base level which differs only by basic engine 
(i.e., they are not included in the calculation of the original base 
level fuel economy values); and
    (iii) All subconfigurations within the new base level are 
represented by test data in accordance with Sec.  600.010(c)(1)(ii).
    (3) The manufacturer shall supply total model year sales 
projections for each car line/vehicle subconfiguration combination.
    (i) Sales projections must be supplied separately for each car 
line-vehicle subconfiguration intended for sale in California and each 
car line/vehicle subconfiguration intended for sale in the rest of the 
states if required by the Administrator under paragraph (a)(1) of this 
section.
    (ii) Manufacturers shall update sales projections at the time any 
model type value is calculated for a label value.
    (iii) The provisions of paragraph (a)(3) of this section may be 
satisfied by providing an amended application for certification, as 
described in Sec.  86.1844 of this chapter.
    (4) Vehicle configuration fuel economy, CO2 emissions, 
and carbon-related exhaust emissions, as determined in Sec.  600.206-
12(a), (b) or (c), as applicable, are grouped according to base level.
    (i) If only one vehicle configuration within a base level has been 
tested, the fuel economy, CO2 emissions, and carbon-related 
exhaust emissions from that vehicle configuration will constitute the 
fuel economy, CO2 emissions, and carbon-related exhaust 
emissions for that base level.
    (ii) If more than one vehicle configuration within a base level has 
been tested, the vehicle configuration fuel economy values are 
harmonically averaged in proportion to the respective sales fraction 
(rounded to the nearest 0.0001) of each vehicle configuration and the 
resultant fuel economy value rounded to the nearest 0.0001 mile per 
gallon; and the vehicle configuration CO2 emissions and 
carbon-related exhaust emissions are arithmetically averaged in 
proportion to the respective sales fraction (rounded to the nearest 
0.0001) of each vehicle configuration and the resultant carbon-related 
exhaust emission value rounded to the nearest tenth of a gram per mile.
    (5) The procedure specified in paragraph (a)(1) through (4) of this 
section will be repeated for each base level, thus establishing city, 
highway, and combined fuel economy, CO2

[[Page 39553]]

emissions, and carbon-related exhaust emissions for each base level.
    (6) [Reserved]
    (7) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the procedures of paragraphs (a)(1) through (6) of this 
section shall be used to calculate two separate sets of city, highway, 
and combined fuel economy, CO2 emissions, and carbon-related 
exhaust emissions for each base level.
    (i) Calculate the city, highway, and combined fuel economy, 
CO2 emissions, and carbon-related exhaust emissions from the 
tests performed using gasoline or diesel test fuel.
    (ii) Calculate the city, highway, and combined fuel economy, 
CO2 emissions, and carbon-related exhaust emissions from the 
tests performed using alcohol or natural gas test fuel.
    (b) For each model type, as determined by the Administrator, a 
city, highway, and combined fuel economy value, CO2 emission 
value, and a carbon-related exhaust emission value will be calculated 
by using the projected sales and values for fuel economy, 
CO2 emissions, and carbon-related exhaust emissions for each 
base level within the model type. Separate model type calculations will 
be done based on the vehicle configuration fuel economy, CO2 
emissions, and carbon-related exhaust emissions as determined in Sec.  
600.206-12(a), (b) or (c), as applicable.
    (1) If the Administrator determines that automobiles intended for 
sale in the State of California and in section 177 states are likely to 
exhibit significant differences in fuel economy, CO2 
emissions, and carbon-related exhaust emissions from those intended for 
sale in other states, he or she will calculate values for fuel economy, 
CO2 emissions, and carbon-related exhaust emissions for each 
model type for vehicles intended for sale in California and in section 
177 states and for each model type for vehicles intended for sale in 
the rest of the states.
    (2) The sales fraction for each base level is calculated by 
dividing the projected sales of the base level within the model type by 
the projected sales of the model type and rounding the quotient to the 
nearest 0.0001.
    (3)(i) The FTP-based city fuel economy values of the model type 
(calculated to the nearest 0.0001 mpg) are determined by dividing one 
by a sum of terms, each of which corresponds to a base level and which 
is a fraction determined by dividing:
    (A) The sales fraction of a base level; by
    (B) The FTP-based city fuel economy value for the respective base 
level.
    (ii) The FTP-based city carbon-related exhaust emission value of 
the model type (calculated to the nearest gram per mile) are determined 
by a sum of terms, each of which corresponds to a base level and which 
is a product determined by multiplying:
    (A) The sales fraction of a base level; by
    (B) The FTP-based city carbon-related exhaust emission value for 
the respective base level.
    (iii) The FTP-based city CO2 emissions of the model type 
(calculated to the nearest gram per mile) are determined by a sum of 
terms, each of which corresponds to a base level and which is a product 
determined by multiplying:
    (A) The sales fraction of a base level; by
    (B) The FTP-based city CO2 emissions for the respective 
base level.
    (4) The procedure specified in paragraph (b)(3) of this section is 
repeated in an analogous manner to determine the highway and combined 
fuel economy, CO2 emissions, and carbon-related exhaust 
emissions for the model type.
    (5) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the procedures of paragraphs (b)(1) through (4) of this 
section shall be used to calculate two separate sets of city, highway, 
and combined fuel economy values and two separate sets of city, 
highway, and combined CO2 and carbon-related exhaust 
emission values for each model type.
    (i) Calculate the city, highway, and combined fuel economy, 
CO2 emissions, and carbon-related exhaust emission values 
from the tests performed using gasoline or diesel test fuel.
    (ii) Calculate the city, highway, and combined fuel economy, 
CO2 emissions, and carbon-related exhaust emission values 
from the tests performed using alcohol or natural gas test fuel.

0
46. Section 600.209-12 is added to read as follows:

Sec.  600.209-12  Calculation of vehicle-specific 5-cycle fuel economy 
and CO2 emission values for a model type.

    (a) Base level. 5-cycle fuel economy and CO2 emission 
values for a base level are calculated from vehicle configuration 5-
cycle fuel economy and CO2 emission values as determined in 
Sec.  600.207 for low-altitude tests.
    (1) If the Administrator determines that automobiles intended for 
sale in the State of California are likely to exhibit significant 
differences in fuel economy and CO2 emissions from those 
intended for sale in other states, he will calculate fuel economy and 
CO2 emission values for each base level for vehicles 
intended for sale in California and for each base level for vehicles 
intended for sale in the rest of the states.
    (2) In order to highlight the fuel efficiency and CO2 
emissions of certain designs otherwise included within a model type, a 
manufacturer may wish to subdivide a model type into one or more 
additional model types. This is accomplished by separating 
subconfigurations from an existing base level and placing them into a 
new base level. The new base level is identical to the existing base 
level except that it shall be considered, for the purposes of this 
paragraph, as containing a new basic engine. The manufacturer will be 
permitted to designate such new basic engines and base level(s) if:
    (i) Each additional model type resulting from division of another 
model type has a unique car line name and that name appears on the 
label and on the vehicle bearing that label;
    (ii) The subconfigurations included in the new base levels are not 
included in any other base level which differs only by basic engine 
(i.e., they are not included in the calculation of the original base 
level fuel economy values); and
    (iii) All subconfigurations within the new base level are 
represented by test data in accordance with Sec.  600.010(c)(i)(ii).
    (3) The manufacturer shall supply total model year sales 
projections for each car line/vehicle subconfiguration combination.
    (i) Sales projections must be supplied separately for each car 
line-vehicle subconfiguration intended for sale in California and each 
car line/vehicle subconfiguration intended for sale in the rest of the 
states if required by the Administrator under paragraph (a)(1) of this 
section.
    (ii) Manufacturers shall update sales projections at the time any 
model type value is calculated for a label value.
    (iii) The provisions of this paragraph (a)(3) may be satisfied by 
providing an amended application for certification, as described in 
Sec.  86.1844 of this chapter.
    (4) 5-cycle vehicle configuration fuel economy and CO2 
emission values, as determined in Sec.  600.207-12(a), (b), or (c), as 
applicable, are grouped according to base level.
    (i) If only one vehicle configuration within a base level has been 
tested, the fuel economy and CO2 emission values from that 
vehicle configuration constitute the fuel economy and CO2 
emission values for that base level.
    (ii) If more than one vehicle configuration within a base level has 
been tested, the vehicle configuration

[[Page 39554]]

fuel economy values are harmonically averaged in proportion to the 
respective sales fraction (rounded to the nearest 0.0001) of each 
vehicle configuration and the resultant fuel economy value rounded to 
the nearest 0.0001 mile per gallon.
    (iii) If more than one vehicle configuration within a base level 
has been tested, the vehicle configuration CO2 emission 
values are arithmetically averaged in proportion to the respective 
sales fraction (rounded to the nearest 0.0001) of each vehicle 
configuration and the resultant CO2 emission value rounded 
to the nearest 0.1 gram per mile.
    (5) The procedure specified in Sec.  600.209-12(a) will be repeated 
for each base level, thus establishing city and highway fuel economy 
and CO2 emission values for each base level.
    (6) [Reserved]
    (7) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles, the procedures of paragraphs (a)(1) through (6) of this 
section shall be used to calculate two separate sets of city, highway, 
and combined fuel economy and CO2 emission values for each 
base level.
    (i) Calculate the city and highway fuel economy and CO2 
emission values from the tests performed using gasoline or diesel test 
fuel.
    (ii) If 5-cycle testing was performed on the alcohol or natural gas 
test fuel, calculate the city and highway fuel economy and 
CO2 emission values from the tests performed using alcohol 
or natural gas test fuel.
    (b) Model type. For each model type, as determined by the 
Administrator, city and highway fuel economy and CO2 
emissions values will be calculated by using the projected sales and 
fuel economy and CO2 emission values for each base level 
within the model type. Separate model type calculations will be done 
based on the vehicle configuration fuel economy and CO2 
emission values as determined in Sec.  600.207, as applicable.
    (1) If the Administrator determines that automobiles intended for 
sale in the State of California are likely to exhibit significant 
differences in fuel economy and CO2 emissions from those 
intended for sale in other states, he will calculate fuel economy and 
CO2 emission values for each model type for vehicles 
intended for sale in California and for each model type for vehicles 
intended for sale in the rest of the states.
    (2) The sales fraction for each base level is calculated by 
dividing the projected sales of the base level within the model type by 
the projected sales of the model type and rounding the quotient to the 
nearest 0.0001.
    (3)(i) The 5-cycle city fuel economy values of the model type 
(calculated to the nearest 0.0001 mpg) are determined by dividing one 
by a sum of terms, each of which corresponds to a base level and which 
is a fraction determined by dividing:
    (A) The sales fraction of a base level; by
    (B) The 5-cycle city fuel economy value for the respective base 
level.
    (ii) The 5-cycle city CO2 emissions of the model type 
(calculated to the nearest tenth of a gram per mile) are determined by 
a sum of terms, each of which corresponds to a base level and which is 
a product determined by multiplying:
    (A) The sales fraction of a base level; by
    (B) The 5-cycle city CO2 emissions for the respective 
base level.
    (4) The procedure specified in paragraph (b)(3) of this section is 
repeated in an analogous manner to determine the highway and combined 
fuel economy and CO2 emission values for the model type.
    (5) For alcohol dual fuel automobiles and natural gas dual fuel 
automobiles the procedures of paragraphs (b)(1) through (4) of this 
section shall be used to calculate two separate sets of city and 
highway fuel economy and CO2 emission values for each model 
type.
    (i) Calculate the city and highway fuel economy and CO2 
emission values from the tests performed using gasoline or diesel test 
fuel.
    (ii) Calculate the city, highway, and combined fuel economy and 
CO2 emission values from the tests performed using alcohol 
or natural gas test fuel, if 5-cycle testing was performed on the 
alcohol or natural gas test fuel. Otherwise, the procedure in Sec.  
600.210-12(a)(3) or (b)(3) applies.

0
47. Section 600.210-08 is amended by adding paragraph (f) to read as 
follows:

Sec.  600.210-08  Calculation of fuel economy values for labeling.

* * * * *
    (f) Sample calculations. An example of the calculation required in 
this subpart is in Appendix III of this part.

0
48. Section Sec.  600.210-12 is added to read as follows:

Sec.  600.210-12  Calculation of fuel economy and CO2 
emission values for labeling.

    (a) General labels. Except as specified in paragraphs (d) and (e) 
of this section, fuel economy and CO2 emissions for general 
labels may be determined by one of two methods. The first is based on 
vehicle-specific model-type 5-cycle data as determined in Sec.  
600.209-12(b). This method is available for all vehicles and is 
required for vehicles that do not qualify for the second method as 
described in Sec.  600.115 (other than electric vehicles). The second 
method, the derived 5-cycle method, determines fuel economy and 
CO2 emissions values from the FTP and HFET tests using 
equations that are derived from vehicle-specific 5-cycle model type 
data, as determined in paragraph (a)(2) of this section. Manufacturers 
may voluntarily lower fuel economy values and raise CO2 
values if they determine that the label values from any method are not 
representative of the fuel economy or CO2 emissions for that 
model type.
    (1) Vehicle-specific 5-cycle labels. The city and highway model 
type fuel economy determined in Sec.  600.209-12(b), rounded to the 
nearest mpg, and the city and highway model type CO2 
emissions determined in Sec.  600.209-12(b), rounded to the nearest 
gram per mile, comprise the fuel economy and CO2 emission 
values for general fuel economy labels, or, alternatively;
    (2) Derived 5-cycle labels. Derived 5-cycle city and highway label 
values are determined according to the following method:
    (i)(A) For each model type, determine the derived five-cycle city 
fuel economy using the following equation and coefficients determined 
by the Administrator:
[GRAPHIC] [TIFF OMITTED] TR06JY11.036

Where:

City Intercept = Intercept determined by the Administrator based on 
historic vehicle-specific 5-cycle city fuel economy data.
City Slope = Slope determined by the Administrator based on historic 
vehicle-specific 5-cycle city fuel economy data.

[[Page 39555]]

MT FTP FE = the model type FTP-based city fuel economy determined 
under Sec.  600.208-12(b), rounded to the nearest 0.0001 mpg.

    (B) For each model type, determine the derived five-cycle city 
CO2 emissions using the following equation and coefficients 
determined by the Administrator:

Derived 5-cycle City CO2 = ({City Intercept{time}  x A) + 
({City Slope{time}  x MT FTP CO2)

Where:
A = 8,887 for gasoline-fueled vehicles, 10,180 for diesel-fueled 
vehicles, or an appropriate value specified by the Administrator for 
other fuels.
City Intercept = Intercept determined by the Administrator based on 
historic vehicle-specific 5-cycle city fuel economy data.
City Slope = Slope determined by the Administrator based on historic 
vehicle-specific 5-cycle city fuel economy data.
MT FTP CO2 = the model type FTP-based city CO2 
emissions determined under Sec.  600.208-12(b), rounded to the 
nearest 0.1 grams per mile.

    (ii)(A) For each model type, determine the derived five-cycle 
highway fuel economy using the equation below and coefficients 
determined by the Administrator:
[GRAPHIC] [TIFF OMITTED] TR06JY11.037

Where:

Highway Intercept = Intercept determined by the Administrator based 
on historic vehicle-specific 5-cycle highway fuel economy data.
Highway Slope = Slope determined by the Administrator based on 
historic vehicle-specific 5-cycle highway fuel economy data.
MT HFET FE = the model type highway fuel economy determined under 
Sec.  600.208-12(b), rounded to the nearest 0.0001 mpg.

    (B) For each model type, determine the derived five-cycle highway 
CO2 emissions using the equation below and coefficients 
determined by the Administrator:

Derived 5-cycle Highway CO2 = ({Highway Intercept{time}  x 
A) + ({Highway Slope{time}  x MT HFET CO2)

Where:

A = 8,887 for gasoline-fueled vehicles, 10,180 for diesel-fueled 
vehicles, or an appropriate value specified by the Administrator for 
other fuels.
Highway Intercept = Intercept determined by the Administrator based 
on historic vehicle-specific 5-cycle highway fuel economy data.
Highway Slope = Slope determined by the Administrator based on 
historic vehicle-specific 5-cycle highway fuel economy data.
MT HFET CO2 = the model type highway CO2 
emissions determined under Sec.  600.208-12(b), rounded to the 
nearest 0.1 grams per mile.
(iii) Unless and until superseded by written guidance from the 
Administrator, the following intercepts and slopes shall be used in 
the equations in paragraphs (a)(2)(i) and (ii) of this section:
City Intercept = 0.003259.
City Slope = 1.1805.
Highway Intercept = 0.001376.
Highway Slope = 1.3466.

    (iv) The Administrator will periodically update the slopes and 
intercepts through guidance and will determine the model year that the 
new coefficients must take effect. The Administrator will issue 
guidance no later than six months prior to the earliest starting date 
of the effective model year (e.g., for 2011 models, the earliest start 
of the model year is January 2, 2010, so guidance would be issued by 
July 1, 2009.) Until otherwise instructed by written guidance from the 
Administrator, manufacturers must use the coefficients that are 
currently in effect.
    (3) General alternate fuel economy and CO2 emissions 
label values for dual fuel vehicles.
    (i)(A) City and Highway fuel economy label values for dual fuel 
alcohol-based and natural gas vehicles when using the alternate fuel 
are separately determined by the following calculation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.038

Where:

FEalt = The unrounded FTP-based model-type city or HFET-
based model-type highway fuel economy from the alternate fuel, as 
determined in Sec.  600.208-12(b)(5)(ii).
5cycle FEgas = The unrounded vehicle-specific or derived 
5-cycle model-type city or highway fuel economy, as determined in 
paragraph (a)(1) or (2) of this section.
FEgas = The unrounded FTP-based city or HFET-based model 
type highway fuel economy from gasoline (or diesel), as determined 
in Sec.  600.208-12(b)(5)(i).

    The result, rounded to the nearest whole number, is the alternate 
fuel label value for dual fuel vehicles.
    (B) City and Highway CO2 label values for dual fuel 
alcohol-based and natural gas vehicles when using the alternate fuel 
are separately determined by the following calculation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.039

Where:

CO2alt = The unrounded FTP-based model-type city or HFET-
based model-type CO2 emissions value from the alternate 
fuel, as determined in Sec.  600.208-12(b)(5)(ii).
5cycle CO2gas = The unrounded vehicle-specific or derived 
5-cycle model-type city or highway CO2 emissions value, 
as determined in paragraph (a)(1) or (2) of this section.
CO2gas = The unrounded FTP-based city or HFET-based model 
type highway CO2 emissions value from gasoline (or 
diesel), as determined in Sec.  600.208-12(b)(5)(i).

    The result, rounded to the nearest whole number, is the 
alternate fuel CO2 emissions label value for dual fuel 
vehicles.

    (ii) Optionally, if complete 5-cycle testing has been performed 
using the alternate fuel, the manufacturer may choose to use the 
alternate fuel label city or highway fuel economy and CO2 
emission values determined in Sec.  600.209-12(b)(5)(ii), rounded to 
the nearest whole number.
    (4) General alternate fuel economy and CO2 emissions 
label values for electric vehicles. Determine FTP-based city and HFET-
based highway fuel economy label values for electric

[[Page 39556]]

vehicles as described in Sec.  600.116. Convert W-hour/mile results to 
miles per kW-hr and miles per gasoline gallon equivalent. 
CO2 label information is based on tailpipe emissions only, 
so CO2 emissions from electric vehicles are assumed to be 
zero.
    (5) General alternate fuel economy and CO2 emissions 
label values for fuel cell vehicles. Determine FTP-based city and HFET-
based highway fuel economy label values for electric vehicles using 
procedures specified by the Administrator. Convert kilograms of 
hydrogen/mile results to miles per kilogram of hydrogen and miles per 
gasoline gallon equivalent. CO2 label information is based 
on tailpipe emissions only, so CO2 emissions from fuel cell 
vehicles are assumed to be zero.
    (b) Specific labels. Except as specified in paragraphs (d) and (e) 
of this section, fuel economy and CO2 emissions for specific 
labels may be determined by one of two methods. The first is based on 
vehicle-specific configuration 5-cycle data as determined in Sec.  
600.207. This method is available for all vehicles and is required for 
vehicles that do not qualify for the second method as described in 
Sec.  600.115 (other than electric vehicles). The second method, the 
derived 5-cycle method, determines fuel economy and CO2 
emissions values from the FTP and HFET tests using equations that are 
derived from vehicle-specific 5-cycle configuration data, as determined 
in paragraph (b)(2) of this section. Manufacturers may voluntarily 
lower fuel economy values and raise CO2 values if they 
determine that the label values from either method are not 
representative of the fuel economy or CO2 emissions for that 
model type.
    (1) Vehicle-specific 5-cycle labels. The city and highway 
configuration fuel economy determined in Sec.  600.207, rounded to the 
nearest mpg, and the city and highway configuration CO2 
emissions determined in Sec.  600.207, rounded to the nearest gram per 
mile, comprise the fuel economy and CO2 emission values for 
specific fuel economy labels, or, alternatively;
    (2) Derived 5-cycle labels. Specific city and highway label values 
from derived 5-cycle are determined according to the following method:
    (i)(A) Determine the derived five-cycle city fuel economy of the 
configuration using the equation below and coefficients determined by 
the Administrator:
[GRAPHIC] [TIFF OMITTED] TR06JY11.040

Where:

City Intercept = Intercept determined by the Administrator based on 
historic vehicle-specific 5-cycle city fuel economy data.
City Slope = Slope determined by the Administrator based on historic 
vehicle-specific 5-cycle city fuel economy data.
Config FTP FE = the configuration FTP-based city fuel economy 
determined under Sec.  600.206, rounded to the nearest 0.0001 mpg.

    (B) Determine the derived five-cycle city CO2 emissions 
of the configuration using the equation below and coefficients 
determined by the Administrator:

Derived 5-cycle City CO2 = {City Intercept{time}  + {City 
Slope{time}  x Config FTP CO2
Where:

City Intercept = Intercept determined by the Administrator based on 
historic vehicle-specific 5-cycle city fuel economy data.
City Slope = Slope determined by the Administrator based on historic 
vehicle-specific 5-cycle city fuel economy data.
Config FTP CO2 = the configuration FTP-based city 
CO2 emissions determined under Sec.  600.206, rounded to 
the nearest 0.1 grams per mile.

    (ii)(A) Determine the derived five-cycle highway fuel economy of 
the configuration using the equation below and coefficients determined 
by the Administrator:
[GRAPHIC] [TIFF OMITTED] TR06JY11.041

Where:

Highway Intercept = Intercept determined by the Administrator based 
on historic vehicle-specific 5-cycle highway fuel economy data.
Highway Slope = Slope determined by the Administrator based on 
historic vehicle-specific 5-cycle highway fuel economy data.
Config HFET FE = the configuration highway fuel economy determined 
under Sec.  600.206, rounded to the nearest tenth.

    (B) Determine the derived five-cycle highway CO2 
emissions of the configuration using the equation below and 
coefficients determined by the Administrator:

Derived 5-cycle city Highway CO2 = {Highway Intercept{time}  
+ {Highway Slope{time}  x Config HFET CO2

Where:

Highway Intercept = Intercept determined by the Administrator based 
on historic vehicle-specific 5-cycle highway fuel economy data.
Highway Slope = Slope determined by the Administrator based on 
historic vehicle-specific 5-cycle highway fuel economy data.
Config HFET CO2 = the configuration highway fuel economy 
determined under Sec.  600.206, rounded to the nearest tenth.

    (iii) The slopes and intercepts of paragraph (a)(2)(iii) of this 
section apply.
    (3) Specific alternate fuel economy and CO2 emissions 
label values for dual fuel vehicles. (i)(A) Specific city and highway 
fuel economy label values for dual fuel alcohol-based and natural gas 
vehicles when using the alternate fuel are separately determined by the 
following calculation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.042

Where:

FEalt = The unrounded FTP-based configuration city or 
HFET-based configuration highway fuel economy from the alternate 
fuel, as determined in Sec.  600.206.
5cycle FEgas = The unrounded vehicle-specific or derived 
5-cycle configuration

[[Page 39557]]

city or highway fuel economy as determined in paragraph (b)(1) or 
(2) of this section.
FEgas = The unrounded FTP-based city or HFET-based 
configuration highway fuel economy from gasoline, as determined in 
Sec.  600.206.
    The result, rounded to the nearest whole number, is the 
alternate fuel label value for dual fuel vehicles.

    (B) Specific city and highway CO2 emission label values 
for dual fuel alcohol-based and natural gas vehicles when using the 
alternate fuel are separately determined by the following calculation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.043

Where:

CO2alt = The unrounded FTP-based configuration city or 
HFET-based configuration highway CO2 emissions value from 
the alternate fuel, as determined in Sec.  600.206.
5cycle CO2gas = The unrounded vehicle-specific or derived 
5-cycle configuration city or highway CO2 emissions value 
as determined in paragraph (b)(1) or (b)(2) of this section.
CO2gas = The unrounded FTP-based city or HFET-based 
configuration highway CO2 emissions value from gasoline, 
as determined in Sec.  600.206.

    The result, rounded to the nearest whole number, is the 
alternate fuel CO2 emissions label value for dual fuel 
vehicles.

    (ii) Optionally, if complete 5-cycle testing has been performed 
using the alternate fuel, the manufacturer may choose to use the 
alternate fuel label city or highway fuel economy and CO2 
emission values determined in Sec.  600.207-12(a)(4)(ii), rounded to 
the nearest whole number.
    (4) Specific alternate fuel economy and CO2 emissions 
label values for electric vehicles. Determine FTP-based city and HFET-
based highway fuel economy label values for electric vehicles as 
described in Sec.  600.116. Determine these values by running the 
appropriate repeat test cycles. Convert W-hour/mile results to miles 
per kW-hr and miles per gasoline gallon equivalent. CO2 
label information is based on tailpipe emissions only, so 
CO2 emissions from electric vehicles are assumed to be zero.
    (5) Specific alternate fuel economy and CO2 emissions 
label values for fuel cell vehicles. Determine FTP-based city and HFET-
based highway fuel economy label values for fuel cell vehicles using 
procedures specified by the Administrator. Convert kilograms of 
hydrogen/mile results to miles per kilogram of hydrogen and miles per 
gasoline gallon equivalent. CO2 label information is based 
on tailpipe emissions only, so CO2 emissions from fuel cell 
vehicles are assumed to be zero.
    (c) Calculating combined fuel economy. (1) For the purposes of 
calculating the combined fuel economy for a model type, to be used in 
displaying on the label and for determining annual fuel costs under 
subpart D of this part, the manufacturer shall use one of the following 
procedures:
    (i) For gasoline-fueled, diesel-fueled, alcohol-fueled, and natural 
gas-fueled automobiles, and for dual fuel automobiles that can operate 
on gasoline or diesel fuel, harmonically average the unrounded city and 
highway fuel economy values, determined in paragraphs (a)(1) or (2) of 
this section and (b)(1) or (2) of this section, weighted 0.55 and 0.45 
respectively. Round the result to the nearest whole mpg. (An example of 
this calculation procedure appears in Appendix II of this part).
    (ii) For alcohol dual fuel and natural gas dual fuel automobiles 
operated on the alternate fuel, harmonically average the unrounded city 
and highway values from the tests performed using the alternative fuel 
as determined in paragraphs (a)(3) and (b)(3) of this section, weighted 
0.55 and 0.45 respectively. Round the result to the nearest whole mpg.
    (iii) For electric vehicles, calculate the combined fuel economy, 
in miles per kW-hr and miles per gasoline gallon equivalent, by 
harmonically averaging the unrounded city and highway values, weighted 
0.55 and 0.45 respectively. Round miles per kW-hr to the nearest 0.001 
and round miles per gasoline gallon equivalent to the nearest whole 
number.
    (iv) For plug-in hybrid electric vehicles, calculate a combined 
fuel economy value, in miles per gasoline gallon equivalent as follows:
    (A) Determine city and highway fuel economy values for vehicle 
operation after the battery has been fully discharged (``gas only 
operation'' or ``charge-sustaining mode'') as described in paragraphs 
(a) and (b) of this section.
    (B) Determine city and highway fuel economy values for vehicle 
operation starting with a full battery charge (``all-electric 
operation'' or ``gas plus electric operation'', as appropriate, or 
``charge-depleting mode'') as described in Sec.  600.116. For battery 
energy, convert W-hour/mile results to miles per gasoline gallon 
equivalent or miles per diesel gallon equivalent, as applicable. Note 
that you must also express battery-based fuel economy values in miles 
per kW-hr for calculating annual fuel cost as described in Sec.  
600.311.
    (C) Calculate a composite city fuel economy value and a composite 
highway fuel economy value by combining the separate results for 
battery and engine operation using the procedures described in Sec.  
600.116). Apply the derived 5-cycle adjustment to these composite 
values. Use these values to calculate the vehicle's combined fuel 
economy as described in paragraph (c)(1)(i) of this section.
    (v) For fuel cell vehicles, calculate the combined fuel economy, in 
miles per kilogram and miles per gasoline gallon equivalent, by 
harmonically averaging the unrounded city and highway values, weighted 
0.55 and 0.45 respectively. Round miles per kilogram to the nearest 
whole number and round miles per gasoline gallon equivalent to the 
nearest whole number.
    (2) For the purposes of calculating the combined CO2 
emissions value for a model type, to be used in displaying on the label 
under subpart D of this part, the manufacturer shall:
    (i) For gasoline-fueled, diesel-fueled, alcohol-fueled, and natural 
gas-fueled automobiles, and for dual fuel automobiles that can operate 
on gasoline or diesel fuel, arithmetically average the unrounded city 
and highway values, determined in

[[Page 39558]]

paragraphs (a)(1) or (2) of this section and (b)(1) or (2) of this 
section, weighted 0.55 and 0.45 respectively, and round to the nearest 
whole gram per mile; or
    (ii) For alcohol dual fuel and natural gas dual fuel automobiles 
operated on the alternate fuel, arithmetically average the unrounded 
city and highway CO2 emission values from the tests 
performed using the alternative fuel as determined in paragraphs (a)(3) 
and (b)(3) of this section, weighted 0.55 and 0.45 respectively, and 
round to the nearest whole gram per mile.
    (iii) CO2 label information is based on tailpipe 
emissions only, so CO2 emissions from electric vehicles and 
fuel cell vehicles are assumed to be zero.
    (iv) For plug-in hybrid electric vehicles, calculate combined 
CO2 emissions as follows:
    (A) Determine city and highway CO2 emission rates for 
vehicle operation after the battery has been fully discharged (``gas 
only operation'' or ``charge-sustaining mode'') as described in 
paragraphs (a) and (b) of this section.
    (B) Determine city and highway CO2 emission rates for 
vehicle operation starting with a full battery charge (``all-electric 
operation'' or ``gas plus electric operation'', as appropriate, or 
``charge-depleting mode'') as described in Sec.  600.116. Note that 
CO2 label information is based on tailpipe emissions only, 
so CO2 emissions from electricity are assumed to be zero.
    (C) Calculate a composite city CO2 emission rate and a 
composite highway CO2 emission rate by combining the 
separate results for battery and engine operation using the procedures 
described in Sec.  600.116. Use these values to calculate the vehicle's 
combined fuel economy as described in paragraph (c)(1)(i) of this 
section.
    (d) Calculating combined fuel economy and CO2 emissions. 
(1) If the criteria in Sec.  600.115-11(a) are met for a model type, 
both the city and highway fuel economy and CO2 emissions 
values must be determined using the vehicle-specific 5-cycle method. If 
the criteria in Sec.  600.115-11(b) are met for a model type, the city 
fuel economy and CO2 emissions values may be determined 
using either method, but the highway fuel economy and CO2 
emissions values must be determined using the vehicle-specific 5-cycle 
method (or modified 5-cycle method as allowed under Sec.  600.114-
12(b)(2)).
    (2) If the criteria in Sec.  600.115 are not met for a model type, 
the city and highway fuel economy and CO2 emission label 
values must be determined by using the same method, either the derived 
5-cycle or vehicle-specific 5-cycle.
    (3) Manufacturers may use any of the following methods for 
determining 5-cycle values for fuel economy and CO2 
emissions for electric vehicles:
    (i) Generate 5-cycle data as described in paragraph (a)(1) of this 
section.
    (ii) Decrease fuel economy values by 30 percent and increase 
CO2 emission values by 30 percent relative to data generated 
from 2-cycle testing.
    (iii) Manufacturers may ask the Administrator to approve adjustment 
factors for deriving 5-cycle fuel economy results from 2-cycle test 
data based on operating data from their in-use vehicles. Such data 
should be collected from multiple vehicles with different drivers over 
a range of representative driving routes and conditions. The 
Administrator may approve such an adjustment factor for any of the 
manufacturer's vehicle models that are properly represented by the 
collected data.
    (e) Fuel economy values and other information for advanced 
technology vehicles. (1) The Administrator may prescribe an alternative 
method of determining the city and highway model type fuel economy and 
CO2 emission values for general, unique or specific fuel 
economy labels other than those set forth in this subpart C for 
advanced technology vehicles including, but not limited to fuel cell 
vehicles, hybrid electric vehicles using hydraulic energy storage, and 
vehicles equipped with hydrogen internal combustion engines.
    (2) For advanced technology vehicles, the Administrator may 
prescribe special methods for determining information other than fuel 
economy that is required to be displayed on fuel economy labels as 
specified in Sec.  600.302-12(e).
    (f) Sample calculations. An example of the calculation required in 
this subpart is in Appendix III of this part.

Subpart D--Fuel Economy Labeling

0
49. The heading for subpart D is revised as set forth above.

Sec. Sec.  600.301-08, 600.301-12, 600.301-86, 600.301-95, 600.302-77, 
600.303-77, 600.304-77, 600.305-77, 600.306-86, 600.307-86, 600.307-95, 
600.310-86, 600.311-86, 600.313-86, 600.314-01, 600.314-86, and 
600.315-82  [Removed]

0
50. Subpart D is amended by removing the following sections:
    Sec.  600.301-08.
    Sec.  600.301-12.
    Sec.  600.301-86.
    Sec.  600.301-95.
    Sec.  600.302-77.
    Sec.  600.303-77.
    Sec.  600.304-77.
    Sec.  600.305-77.
    Sec.  600.306-86.
    Sec.  600.307-86.
    Sec.  600.307-95.
    Sec.  600.310-86.
    Sec.  600.311-86.
    Sec.  600.313-86.
    Sec.  600.314-01.
    Sec.  600.314-86.
    Sec.  600.315-82.

Sec.  600.306-08  [Redesignated as Sec.  600.301]

Sec.  600.307-08  [Redesignated as Sec.  600.302-08]

Sec.  600.312-86  [Redesignated as Sec.  600.312-08]

Sec.  600.313-01  [Redesignated as Sec.  600.313-08]

Sec.  600.316-78  [Redesignated as Sec.  600.316-08]

0
51. Redesignate specific sections in subpart D as follows:

 
                       old section                          new section
 
600.306-08..............................................         600.301
600.307-08..............................................      600.302-08
600.312-86..............................................      600.312-08
600.313-01..............................................      600.313-08
600.316-78..............................................      600.316-08
 

0
52. Newly redesignated Sec.  600.301 is revised to read as follows:

Sec.  600.301  Labeling requirements.

    (a) Prior to being offered for sale, each manufacturer shall affix 
or cause to be affixed and each dealer shall maintain or cause to be 
maintained on each automobile:
    (1) A general fuel economy label (initial, or updated as required 
in Sec.  600.314) as described in Sec.  600.302 or:
    (2) A specific label, for those automobiles manufactured or 
imported before the date that occurs 15 days after general labels have 
been determined by the manufacturer, as described in Sec.  600.210-
08(b) or Sec.  600.210-12(b).
    (i) If the manufacturer elects to use a specific label within a 
model type (as defined in Sec.  600.002, he shall also affix specific 
labels on all automobiles within this model type, except on those 
automobiles manufactured or imported before the date that labels are 
required to bear range values as required by paragraph (b) of this 
section, or determined by the Administrator, or as permitted under 
Sec.  600.310.
    (ii) If a manufacturer elects to change from general to specific 
labels or vice versa within a model type, the manufacturer shall, 
within five calendar days, initiate or discontinue as applicable, the 
use of specific labels on all vehicles within a model type at all 
facilities where labels are affixed.

[[Page 39559]]

    (3) For any vehicle for which a specific label is requested which 
has a combined FTP/HFET-based fuel economy value, as determined in 
Sec.  600.513, at or below the minimum tax-free value, the following 
statement must appear on the specific label:
    ``[Manufacturer's name] may have to pay IRS a Gas Guzzler Tax on 
this vehicle because of the low fuel economy.''
    (4)(i) At the time a general fuel economy value is determined for a 
model type, a manufacturer shall, except as provided in paragraph 
(a)(4)(ii) of this section, relabel, or cause to be relabeled, vehicles 
which:
    (A) Have not been delivered to the ultimate purchaser, and
    (B) Have a combined FTP/HFET-based model type fuel economy value 
(as determined in Sec.  600.208-08(b) or Sec.  600.208-12(b) of 0.1 mpg 
or more below the lowest fuel economy value at which a Gas Guzzler Tax 
of $0 is to be assessed.
    (ii) The manufacturer has the option of re-labeling vehicles during 
the first five working days after the general label value is known.
    (iii) For those vehicle model types which have been issued a 
specific label and are subsequently found to have tax liability, the 
manufacturer is responsible for the tax liability regardless of whether 
the vehicle has been sold or not or whether the vehicle has been 
relabeled or not.
    (b) The manufacturer shall include the current range of fuel 
economy of comparable automobiles (as described in Sec. Sec.  600.311 
and 600.314) in the label of each vehicle manufactured or imported more 
than 15 calendar days after the current range is made available by the 
Administrator.
    (1) Automobiles manufactured or imported before a date 16 or more 
calendar days after the initial label range is made available under 
Sec.  600.311 shall include the range from the previous model year.
    (2) Automobiles manufactured or imported more than 15 calendar days 
after the label range is made available under Sec.  600.311 shall be 
labeled with the current range of fuel economy of comparable 
automobiles as approved for that label.
    (c) The fuel economy label must be readily visible from the 
exterior of the automobile and remain affixed until the time the 
automobile is delivered to the ultimate consumer.
    (1) It is preferable that the fuel economy label information be 
incorporated into the Automobile Information Disclosure Act label, 
provided that the prominence and legibility of the fuel economy label 
is maintained. For this purpose, all fuel economy label information 
must be placed on a separate section in the Automobile Information 
Disclosure Act label and may not be intermixed with that label 
information, except for vehicle descriptions as noted in Sec.  600.303-
08(d)(1).
    (2) The fuel economy label must be located on a side window. If the 
window is not large enough to contain both the Automobile Information 
Disclosure Act label and the fuel economy label, the manufacturer shall 
have the fuel economy label affixed on another window and as close as 
possible to the Automobile Information Disclosure Act label.
    (3) The manufacturer shall have the fuel economy label affixed in 
such a manner that appearance and legibility are maintained until after 
the vehicle is delivered to the ultimate consumer.
    (d) The labeling requirements specified in this subpart for 2008 
model year vehicles continue to apply through the 2011 model year. In 
the 2012 model year, manufacturers may label their vehicles as 
specified in this subpart for either 2008 or 2012 model years. The 
labeling requirements specified in this subpart for 2012 model year 
vehicles are mandatory for 2013 and later model years.

Sec.  600.302-08  [Amended]

0
53. Newly redesignated Sec.  600.302-08 is amended by removing and 
reserving paragraphs (h) through (j).

0
54. Section Sec.  600.302-12 is added to subpart D to read as follows:

Sec.  600.302-12  Fuel economy label--general provisions.

    This section describes labeling requirements and specifications 
that apply to all vehicles. The requirements and specifications in this 
section and those in Sec. Sec.  600.304 through 600.310 are illustrated 
in Appendix VI of this part.
    (a) Basic format. Fuel economy labels must be rectangular in shape 
with a minimum width of 174 mm and a minimum height of 114 mm. The 
required label can be divided into three fields separated and outlined 
by a continuous border, as described in paragraphs (b) through (e) of 
this section.
    (b) Border. Create a continuous black border to outline the label 
and separate the three information fields. Include the following 
information in the top and bottom portions of the border:
    (1) In the left portion of the upper border, include ``EPA'' and 
``DOT'' with a horizontal line in between (``EPA divided by DOT'').
    (2) Immediately to the right of the Agency names, include the 
heading ``Fuel Economy and Environment''.
    (3) Identify the vehicle's fuel type on the right-most portion of 
the upper border in a blue-colored field as follows:
    (i) For vehicles designed to operate on a single fuel, identify the 
appropriate fuel. For example, identify the vehicle as ``Gasoline 
Vehicle'', ``Diesel Vehicle'', ``Compressed Natural Gas Vehicle'', 
``Hydrogen Fuel Cell Vehicle'', etc. This includes hybrid electric 
vehicles that do not have plug-in capability. Include a logo 
corresponding to the fuel to the left of this designation as follows:
    (A) For gasoline, include a fuel pump logo.
    (B) For diesel fuel, include a fuel pump logo with a ``D'' 
inscribed in the base of the fuel pump.
    (C) For natural gas, include the established CNG logo.
    (D) For hydrogen fuel cells, include the expression 
``H2''.
    (ii) Identify flexible-fuel vehicles and dual-fuel vehicles as 
``Flexible-Fuel Vehicle Gasoline-Ethanol (E85)'', ``Flexible-Fuel 
Vehicle Diesel-Natural Gas'', etc. Include a fuel pump logo or a 
combination of logos to the left of this designation as appropriate. 
For example, for vehicles that operate on gasoline or ethanol, include 
a fuel pump logo and the designation ``E85''.
    (iii) Identify plug-in hybrid electric vehicles as ``Plug-In Hybrid 
Vehicle Electricity-Gasoline'' or ``Plug-In Hybrid Vehicle Electricity-
Diesel''. Include a fuel pump logo as specified in paragraph (b)(3)(i) 
of this section and an electric plug logo to the left of this 
designation.
    (iv) Identify electric vehicles as ``Electric Vehicle''. Include an 
electric plug logo to the left of this designation.
    (4) Include the following statement in the upper left portion of 
the lower border: ``Actual results will vary for many reasons, 
including driving conditions and how you drive and maintain your 
vehicle. The average new vehicle gets a MPG and costs $b to fuel over 5 
years. Cost estimates are based on c miles per year at $d per gallon. 
MPGe is miles per gasoline gallon equivalent. Vehicle emissions are a 
significant cause of climate change and smog.'' For a, b, c, and d, 
insert the appropriate values established by EPA, including 
consideration of the type of fuel that is required for the vehicle. See 
Sec. Sec.  600.303 through 600.310 for alternate statements that apply 
for vehicles that use a fuel other than gasoline or diesel fuel.
    (5) In the lower left portion of the lower border, include the Web 
site reference, ``fueleconomy.gov'', and the following statement: 
``Calculate

[[Page 39560]]

personalized estimates and compare vehicles''.
    (6) Include a field in the right-most portion of the lower border 
to allow for accessing interactive information with mobile electronic 
devices. To do this, include an image of a QR code that will direct 
mobile electronic devices to an EPA-specified Web site with fuel 
economy information. Generate the QR code as specified in ISO/IEC 18004 
(incorporated by reference in Sec.  600.011). To the left of the QR 
code, include the vertically oriented caption ``Smartphone QR 
Code\TM\''.
    (7) Along the lower edge of the lower border, to the left of the 
field with the QR Code, include the logos for EPA, the Department of 
Transportation, and the Department of Energy.
    (c) Fuel economy and cost values. Include the following elements in 
the field at the top of the label:
    (1) The elements specified in this paragraph (c)(1) for vehicles 
that run on gasoline or diesel fuel with no plug-in capability. See 
Sec. Sec.  600.304 through 600.310 for specifications that apply for 
other vehicles.
    (i) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (ii) The combined fuel economy value as determined in Sec.  600.311 
below the heading. Include the expression ``combined city/hwy'' below 
this number.
    (iii) The fuel pump logo to the left of the combined fuel economy 
value. For diesel fuel, include a fuel pump logo with a ``D'' inscribed 
in the base of the fuel pump.
    (iv) The units identifier and specific fuel economy values to the 
right of the combined fuel economy rating as follows:
    (A) Include the term ``MPG'' in the upper portion of the designated 
space.
    (B) Include the city fuel economy value determined in Sec.  600.311 
in the lower left portion of the designated space. Include the 
expression ``city'' below this number.
    (C) Include the highway fuel economy value determined in Sec.  
600.311 in the lower right portion of the designated space. Include the 
expression ``highway'' below this number.
    (v) The fuel consumption rate determined in Sec.  600.311, below 
the combined fuel economy value, followed by the expression ``gallons 
per 100 miles''.
    (2) In the upper middle portion of the field, include the following 
statement: ``------ range from x to y MPG. The best vehicle rates z 
MPGe.'' Fill in the blank with the appropriate vehicle class (such as 
Small SUVs). For x, y, and z, insert the appropriate values established 
by EPA.
    (3) Include one of the following statements in the right side of 
the field:
    (i) For vehicles with calculated fuel costs higher than the average 
vehicle as specified in Sec.  600.311: ``You spend $x more in fuel 
costs over 5 years compared to the average new vehicle.'' Complete the 
statement by including the calculated increase in fuel costs as 
specified in Sec.  600.311.
    (ii) For all other vehicles: ``You save $x in fuel costs over 5 
years compared to the average new vehicle.'' Complete the statement by 
including the calculated fuel savings as specified in Sec.  600.311. 
Note that this includes fuel savings of $0.
    (d) Annual fuel cost. Include the following statement in the field 
in the lower left portion of the label: ``Annual fuel cost $x''. 
Complete this statement using the value for annual fuel cost determined 
in Sec.  600.311.
    (e) Performance ratings. Include the following information in the 
field in the lower left portion of the label:
    (1) The heading, ``Fuel Economy and Greenhouse Gas Rating (tailpipe 
only)'' in the top left corner of the field.
    (2) A slider bar below the heading in the left portion of the field 
to characterize the vehicle's fuel economy and greenhouse gas ratings, 
as determined in Sec.  600.311. Position a box with a downward-pointing 
wedge above the slider bar positioned to show where that vehicle's fuel 
economy rating falls relative to the total range; include the vehicle's 
fuel economy rating inside the box. If the greenhouse gas rating from 
Sec.  600.311 is different than the fuel economy rating, position a 
second box with an upward-pointing wedge below the slider bar 
positioned to show where that vehicle's greenhouse gas rating falls 
relative to the total range; include the vehicle's greenhouse gas 
rating inside the box. Include the expression ``CO2'' to the 
left of the box with the greenhouse gas rating and add the expression 
MPG to the left of the box with the fuel economy rating. Include the 
number 1 inside the border at the left end of the slider bar. Include 
the number 10 inside the border at the right end of the slider bar and 
add the term ``Best'' below the slider bar, directly under the number. 
EPA will periodically calculate and publish updated rating values as 
described in Sec.  600.311. Add color to the slider bar such that it is 
blue at the left end of the range, white at the right end of the range, 
and shaded continuously across the range.
    (3) The heading, ``Smog Rating (tailpipe only)'' in the top right 
corner of the field.
    (4) Insert a slider bar in the right portion of the field to 
characterize the vehicle's level of emission control for ozone-related 
air pollutants relative to that of all vehicles. Position a box with a 
downward-pointing wedge above the slider bar positioned to show where 
that vehicle's emission rating falls relative to the total range. 
Include the vehicle's emission rating (as described in Sec.  600.311) 
inside the box. Include the number 1 in the border at the left end of 
the slider bar and add the expression ``Smog Rating'' under the slider 
bar, directly below the number. Include the number 10 in the border at 
the right end of the slider bar and add the term ``Best'' below the 
slider bar, directly under the number. EPA will periodically calculate 
and publish updated range values as described in Sec.  600.311. Add 
color to the slider bar such that it is blue at the left end of the 
range, white at the right end of the range, and shaded continuously 
across the range.
    (5) The following statements below the slider bars: ``This vehicle 
emits x grams CO2 per mile. The best emits 0 grams per mile 
(tailpipe only). Producing and distributing fuel also create emissions; 
learn more at fueleconomy.gov.'' For x, insert the vehicle's composite 
CO2 emission rate as described in Sec.  600.311. See 
Sec. Sec.  600.308 and 600.310 for specifications that apply for 
vehicles powered by electricity.
    (f) Vehicle description. Where the fuel economy label is physically 
incorporated with the Motor Vehicle Information and Cost Savings Act 
label, no further vehicle description is needed. If the fuel economy 
label is separate from the Automobile Information Disclosure Act label, 
describe the vehicle in a location on the label that does not interfere 
with the other required information. In cases where the vehicle 
description may not easily fit on the label, the manufacturer may 
request Administrator approval of modifications to the label format to 
accommodate this information. Include the following items in the 
vehicle description, if applicable:
    (1) Model year.
    (2) Vehicle car line.
    (3) Engine displacement, in cubic inches, cubic centimeters, or 
liters whichever is consistent with the customary description of that 
engine.
    (4) Transmission class.
    (5) Other descriptive information, as necessary, such as number of 
engine cylinders, to distinguish otherwise identical model types or, in 
the case of

[[Page 39561]]

specific labels, vehicle configurations, as approved by the 
Administrator.
    (g) [Reserved]
    (h) Gas guzzler provisions. For vehicles requiring a tax statement 
under Sec.  600.513, add the phrase ``$x gas guzzler tax'', where $x is 
the value of the tax. The tax value required by this paragraph (h) is 
based on the combined fuel economy value for the model type calculated 
according to Sec.  600.513 and rounded to the nearest 0.1 mpg.
    (i) Alternative label provisions for special cases. The 
Administrator may approve modifications to the style guidelines if 
space is limited. The Administrator may also prescribe special label 
format and information requirements for vehicles that are not 
specifically described in this subpart, such as hydrogen-fueled 
internal combustion engines or hybrid electric vehicles that have 
engines operating on fuels other than gasoline or diesel fuel. The 
Administrator may also approve alternate wording of statements on the 
label if that is necessary or appropriate for a given fuel or 
combination of fuels. The revised labeling specifications will conform 
to the principles established in this subpart, with any appropriate 
modifications or additions to reflect the vehicle's unique 
characteristics. See 49 U.S.C. 32908(b)(1)(F).
    (j) Rounding. Unless the regulation specifies otherwise, do not 
round intermediate values, but round final calculated values identified 
in this subpart to the nearest whole number.
    (k) Updating information. EPA will periodically publish updated 
information that is needed to comply with the labeling requirements in 
this subpart. This includes the annual mileage rates and fuel-cost 
information, the ``best and worst'' values needed for calculating 
relative ratings for individual vehicles, and the various rating 
criteria as specified in Sec.  600.311.

0
55. Section 600.303-12 is added to subpart D to read as follows:

Sec.  600.303-12  Fuel economy label--special requirements for 
flexible-fuel vehicles.

    Fuel economy labels for flexible-fuel vehicles must meet the 
specifications described in Sec.  600.302, the modifications described 
in this section. This section describes how to label vehicles equipped 
with gasoline engines. If the vehicle has a diesel engine, all the 
references to ``gas'' or ``gasoline'' in this section are understood to 
refer to ``diesel'' or ``diesel fuel'', respectively.
    (a) For qualifying vehicles, include the following additional 
sentence in the statement identified in Sec.  600.302-12(b)(4): ``This 
is a dual fueled automobile.'' See the definition of ``dual fueled 
automobile'' in Sec.  600.002.
    (b) You may include fuel economy information as described in Sec.  
600.302-12(c)(1), or you may include the following elements instead:
    (1) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (2) The combined fuel economy value as determined in Sec.  600.311 
below the heading. Include the expression ``combined city/hwy'' below 
this number.
    (3) The fuel pump logo and other logos as specified in Sec.  
600.302-12(b)(3)(ii) to the left of the combined fuel economy value.
    (4) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (i) Include the term ``MPG'' in the upper portion of the designated 
space.
    (ii) Include the city fuel economy value determined in Sec.  
600.311 in the lower left portion of the designated space. Include the 
expression ``city'' below this number.
    (iii) Include the highway fuel economy value determined in Sec.  
600.311 in the lower right portion of the designated space. Include the 
expression ``highway'' below this number.
    (5) The fuel consumption rate determined in Sec.  600.311, to the 
right of the fuel economy information. Include the expression ``gallons 
per 100 miles'' below the numerical value.
    (6) The sub-heading ``Driving Range'' below the combined fuel 
economy value, with range bars below this sub-heading as follows:
    (i) Insert a horizontal range bar nominally 80 mm long to show how 
far the vehicle can drive from a full tank of gasoline. Include a 
vehicle logo at the right end of the range bar. Include the following 
left-justified expression inside the range bar: ``Gasoline: x miles''. 
Complete the expression by identifying the appropriate value for total 
driving range from Sec.  600.311.
    (ii) Insert a second horizontal range bar as described in paragraph 
(b)(7)(i) of this section that shows how far the vehicle can drive from 
a full tank with the second fuel. Establish the length of the line 
based on the proportion of driving ranges for the different fuels. 
Identify the appropriate fuel in the range bar.
    (c) Add the following statement after the statements described in 
Sec.  600.302-12(c)(2): ``Values are based on gasoline and do not 
reflect performance and ratings based on E85.'' Adjust this statement 
as appropriate for vehicles designed to operate on different fuels.

0
56. Section 600.304-12 is added to subpart D to read as follows:

Sec.  600.304-12  Fuel economy label--special requirements for hydrogen 
fuel cell vehicles.

    Fuel economy labels for hydrogen fuel cell vehicles must meet the 
specifications described in Sec.  600.302, with the following 
modifications:
    (a) Include the following statement instead of the statement 
specified in Sec.  600.302-12(b)(4): ``Actual results will vary for 
many reasons, including driving conditions and how you drive and 
maintain your vehicle. The average new vehicle gets a MPG and costs $b 
to fuel over 5 years. Cost estimates are based on c miles per year at 
$d per kilogram of hydrogen. Vehicle emissions are a significant cause 
of global warming and smog.'' For a, b, c, and d, insert the 
appropriate values established by EPA.
    (b) Include the following elements instead of the information 
identified in Sec.  600.302-12(c)(1):
    (1) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (2) The combined fuel economy value as determined in Sec.  600.311 
below the heading. Include the expression ``combined city/hwy'' below 
this number.
    (3) The logo specified in Sec.  600.302-12(b)(3)(ii) to the left of 
the combined fuel economy value.
    (4) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (i) Include the term ``MPGe'' in the upper portion of the 
designated space.
    (ii) Include the city fuel economy value determined in Sec.  
600.311 in the lower left portion of the designated space. Include the 
expression ``city'' below this number.
    (iii) Include the highway fuel economy value determined in Sec.  
600.311 in the lower right portion of the designated space. Include the 
expression ``highway'' below this number.
    (5) The fuel consumption rate determined in Sec.  600.311, to the 
right of the fuel economy information. Include the expression ``kg 
H2 per 100 miles'' below the numerical value.
    (6) The sub-heading ``Driving Range'' below the combined fuel 
economy value. Below this sub-heading, insert a horizontal range bar 
nominally 80 mm long to show how far the vehicle can drive when fully 
fueled. Include a vehicle logo at the right end of the range bar. 
Include the following left-justified expression inside the range bar: 
``When fully fueled, vehicle can travel about

[[Page 39562]]

* * *''. Below the right end of the range bar, include the expression 
``x miles''; complete the expression by identifying the appropriate 
value for total driving range from Sec.  600.311. Include numbers below 
the bar showing the scale, with numbers starting at 0 and increasing in 
equal increments. Use good engineering judgment to divide the range bar 
into four, five, or six increments.

0
57. Section 600.306-12 is added to subpart D to read as follows:

Sec.  600.306-12  Fuel economy label--special requirements for 
compressed natural gas vehicles.

    Fuel economy labels for dedicated natural gas vehicles must meet 
the specifications described in Sec.  600.302, with the following 
modifications:
    (a) Include the following statement instead of the statement 
specified in Sec.  600.302-12(b)(4): ``Actual results will vary for 
many reasons, including driving conditions and how you drive and 
maintain your vehicle. The average new vehicle gets a MPG and costs $b 
to fuel over 5 years. Cost estimates are based on c miles per year at 
$d per gasoline gallon equivalent. Vehicle emissions are a significant 
cause of global warming and smog.'' For a, b, c, and d, insert the 
appropriate values established by EPA.
    (b) Include the following elements instead of the information 
identified in Sec.  600.302-12(c)(1):
    (1) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (2) The combined fuel economy value as determined in Sec.  600.311 
below the heading. Include the expression ``combined city/hwy'' below 
this number.
    (3) The logo specified in Sec.  600.302-12(b)(3)(ii) to the left of 
the combined fuel economy value.
    (4) The units identifier and specific fuel economy ratings to the 
right of the combined fuel economy value as follows:
    (i) Include the term ``MPGe'' in the upper portion of the 
designated space.
    (ii) Include the city fuel economy value determined in Sec.  
600.311 in the lower left portion of the designated space. Include the 
expression ``city'' below this number.
    (iii) Include the highway fuel economy value determined in Sec.  
600.311 in the lower right portion of the designated space. Include the 
expression ``highway'' below this number.
    (5) The fuel consumption rate determined in Sec.  600.311, to the 
right of the fuel economy information. Include the expression 
``equivalent gallons per 100 miles'' below the numerical value.
    (6) The sub-heading ``Driving Range'' below the combined fuel 
economy value. Below this sub-heading, insert a horizontal range bar 
nominally 80 mm long to show how far the vehicle can drive when fully 
fueled. Include a vehicle logo at the right end of the range bar. 
Include the following left-justified expression inside the range bar: 
``When fully fueled, vehicle can travel about * * *''''. Below the 
right end of the range bar, include the expression ``x miles''; 
complete the expression by identifying the appropriate value for total 
driving range from Sec.  600.311. Include numbers below the bar showing 
the scale, with numbers starting at 0 and increasing in equal 
increments. Use good engineering judgment to divide the range bar into 
four, five, or six increments.

0
58. Section 600.308-12 is added to subpart D to read as follows:

Sec.  600.308-12  Fuel economy label format requirements--plug-in 
hybrid electric vehicles.

    Fuel economy labels for plug-in hybrid electric vehicles must meet 
the specifications described in Sec.  600.302, with the exceptions and 
additional specifications described in this section. This section 
describes how to label vehicles equipped with gasoline engines. If the 
vehicle has a diesel engine, all the references to ``gas'' or 
``gasoline'' in this section are understood to refer to ``diesel'' or 
``diesel fuel'', respectively.
    (a) Include the following statement instead of the statement 
specified in Sec.  600.302-12(b)(4): ``Actual results will vary for 
many reasons, including driving conditions and how you drive and 
maintain your vehicle. The average new vehicle gets a MPG and costs $b 
to fuel over 5 years. Cost estimates are based on c miles per year at 
$d per gallon and $e per kW-hr. Vehicle emissions are a significant 
cause of global warming and smog.'' For a, b, c, d, and e, insert the 
appropriate values established by EPA. For qualifying vehicles, include 
the following additional sentence: ``This is a dual fueled 
automobile.'' See the definition of ``dual fueled automobile in Sec.  
600.002.
    (b) Include the following elements instead of the information 
identified in Sec.  600.302-12(c)(1):
    (1) The heading ``Fuel Economy'' near the top left corner of the 
field. Include the statement specified in Sec.  600.312-12(c)(2) to the 
right of the heading.
    (2) An outlined box below the heading with the following 
information:
    (i) The sub-heading ``Electricity'' if the vehicle's engine starts 
only after the battery is fully discharged, or ``Electricity + 
Gasoline'' if the vehicle uses combined power from the battery and the 
engine before the battery is fully discharged.
    (ii) The expression ``Charge Time: x hours (240V)'' below the sub-
heading, where x is the time to charge the battery as specified in 
Sec.  600.311. Change the specified voltage if appropriate as specified 
in Sec.  600.311.
    (iii) The combined fuel economy value for the charge-depleting mode 
of operation as determined in Sec.  600.311 below the charge time. 
Include the expression ``combined city/highway'' below this number.
    (iv) An electric plug logo to the left of the combined fuel economy 
value. For vehicles that use combined power from the battery and the 
engine before the battery is fully discharged, also include the fuel 
pump logo.
    (v) The units identifier and consumption ratings to the right of 
the combined fuel economy value as follows:
    (A) Include the term ``MPGe'' in the upper portion of the 
designated space.
    (B) If the vehicle's engine starts only after the battery is fully 
discharged, identify the vehicle's electricity consumption rate as 
specified in Sec.  600.311. Below the number, include the expression: 
``kW-hrs per 100 miles''.
    (C) If the vehicle uses combined power from the battery and the 
engine before the battery is fully discharged, identify the vehicle's 
gasoline consumption rate as specified in Sec.  600.311; to the right 
of this number, include the expression: ``gallons per 100 miles''. 
Below the gasoline consumption rate, identify the vehicle's electricity 
consumption rate as specified in Sec.  600.311; to the right of this 
number, include the expression: ``kW-hrs per 100 miles''.
    (3) A second outlined box to the right of the box described in 
paragraph (b)(2) of this section with the following information:
    (i) The sub-heading ``Gasoline Only''.
    (ii) The combined fuel economy value for operation after the 
battery is fully discharged as determined in Sec.  600.311 below the 
sub-heading. Include the expression ``combined city/highway'' below 
this number.
    (iii) A fuel pump logo to the left of the combined fuel economy 
value.
    (iv) The units identifier and consumption rating to the right of 
the combined fuel economy value as follows:
    (A) Include the term ``MPG'' in the upper portion of the designated 
space.
    (B) Identify the vehicle's gasoline consumption rate as specified 
in Sec.  600.311.

[[Page 39563]]

    Below this number, include the expression: ``gallons per 100 
miles''.
    (4) Insert a horizontal range bar below the boxes specified in 
paragraphs (b)(2) and
    (3) of this section that shows how far the vehicle can drive before 
the battery is fully discharged, and also how far the vehicle can drive 
before running out of fuel, as described in Sec.  600.311. Scale the 
range bar such that the driving range at the point of fully discharging 
the battery is directly between the two boxes. Identify the driving 
range up to fully discharging the battery underneath that point on the 
range bar (e.g., ``50 miles''). Use solid black for the gasoline-only 
portion of the range bar. Include the left-justified expression 
``Gasoline only'' in the gasoline-only portion of the range bar. 
Similarly, in the electric portion of the range bar, include the left-
justified expression ``All electric range'' if the vehicle's engine 
starts only after the battery is fully discharged, or ``Electricity + 
Gasoline'' if the vehicle uses combined power from the battery and the 
engine before the battery is fully discharged. Include a vehicle logo 
at the right end of the range bar. Extend an arrow from the battery 
portion of the range bar up to the right side of the box described in 
paragraph (b)(2) of this section. Similarly, extend an arrow from the 
gasoline-only portion of the range bar up to the left side of the box 
described in paragraph (b)(3) of this section. Include numbers below 
the bar showing the scale, with at least three evenly spaced increments 
to cover operation before the battery is fully discharged. Include one 
more increment using that same scale into the gasoline-only portion of 
the range bar. Indicate a broken line toward the right end of the range 
bar, followed by the vehicle's total driving distance before running 
out of fuel, as described in Sec.  600.311. Adjust the scale and length 
of the range bar if the specifications in this paragraph (a)(5) do not 
work for your vehicle. Include a left-justified heading above the range 
bar with the expression: ``Driving Range''. For vehicles that use 
combined power from the battery and the engine before the battery is 
fully discharged, add the following statement below the range bar 
described in this paragraph (b)(4): ``All electric range = x miles''; 
complete the expression by identifying the appropriate value for 
driving range starting from a full battery before the engine starts as 
described in Sec.  600.311.
    (c) Include the following statement instead of the one identified 
in Sec.  600.302-12(c)(5): ``This vehicle emits x grams CO2 
per mile. The best emits 0 grams per mile (tailpipe only). Producing 
and distributing fuel and electricity also create emissions; learn more 
at fueleconomy.gov.'' For x, insert the vehicle's composite 
CO2 emission rate as described in Sec.  600.311.

0
59. Section 600.310-12 is added to subpart D to read as follows:

Sec.  600.310-12  Fuel economy label format requirements--electric 
vehicles.

    Fuel economy labels for electric vehicles must meet the 
specifications described in Sec.  600.302, with the following 
modifications:
    (a) Include the following statement instead of the statement 
specified in Sec.  600.302-12(b)(4): ``Actual results will vary for 
many reasons, including driving conditions and how you drive and 
maintain your vehicle. The average new vehicle gets a MPG and costs $b 
to fuel over 5 years. Cost estimates are based on c miles per year at 
$d per kW-hr. Vehicle emissions are a significant cause of global 
warming and smog.'' For a, b, c, and d, insert the appropriate values 
established by EPA.
    (b) Include the following elements instead of the information 
identified in Sec.  600.302-12(c)(1):
    (1) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (2) The combined fuel economy value as determined in Sec.  600.311 
below the heading. Include the expression ``combined city/hwy'' below 
this number.
    (3) An electric plug logo to the left of the combined fuel economy 
value.
    (4) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (i) Include the term ``MPGe'' in the upper portion of the 
designated space.
    (ii) Include the city fuel economy value determined in Sec.  
600.311 in the lower left portion of the designated space. Include the 
expression ``city'' below this number.
    (iii) Include the highway fuel economy value determined in Sec.  
600.311 in the lower right portion of the designated space. Include the 
expression ``highway'' below this number.
    (5) The fuel consumption rate determined in Sec.  600.311, to the 
right of the fuel economy information. Include the expression ``kW-hrs 
per 100 miles'' below the numerical value.
    (6) The sub-heading ``Driving Range'' below the combined fuel 
economy value. Below this sub-heading, insert a horizontal range bar 
nominally 80 mm long to show how far the vehicle can drive when fully 
fueled. Include a vehicle logo at the right end of the range bar. 
Include the following left-justified expression inside the range bar: 
``When fully charged, vehicle can travel about * * *''. Below the right 
end of the range bar, include the expression ``x miles''; complete the 
expression by identifying the appropriate value for total driving range 
from Sec.  600.311. Include numbers below the bar showing the scale, 
with numbers starting at 0 and increasing in equal increments. Use good 
engineering judgment to divide the range bar into four, five, or six 
increments.
    (7) Below the driving range information, the expression ``Charge 
Time: x hours (240V)'', where x is the time to charge the battery as 
specified in Sec.  600.311. Change the specified voltage if appropriate 
as specified in Sec.  600.311.
    (c) Include the following statement instead of the one identified 
in Sec.  600.302-12(c)(5): ``This vehicle emits x grams CO2 
per mile. The best emits 0 grams per mile (tailpipe only). Does not 
include emissions from generating electricity; learn more at 
fueleconomy.gov.'' For x, insert the vehicle's composite CO2 
emission rate as described in Sec.  600.311.

0
60. Section 600.311-12 is added to subpart D to read as follows:

Sec.  600.311-12  Determination of values for fuel economy labels.

    (a) Fuel economy. Determine city and highway fuel economy values as 
described in Sec.  600.210-12(a) and (b). Determine combined fuel 
economy values as described in Sec.  600.210-12(c). Note that the label 
for plug-in hybrid electric vehicles requires separate values for 
combined fuel economy for vehicle operation before and after the 
vehicle's battery is fully discharged; we generally refer to these 
modes as ``Blended Electric+Gas'' (or ``Electric Only'', as applicable) 
and ``Gas only''.
    (b) CO2 emission rate. Determine the engine-related CO2 
emission rate as described in Sec.  600.210-12(d).
    (c) Fuel consumption rate. Calculate the fuel consumption rate as 
follows:
    (1) For vehicles with engines that are not plug-in hybrid electric 
vehicles, calculate the fuel consumption rate in gallons per 100 miles 
(or gasoline gallon equivalent per 100 miles for fuels other than 
gasoline or diesel fuel) with the following formula, rounded to the 
first decimal place:

Fuel Consumption Rate = 100/MPG

Where:

MPG = The unrounded value for combined fuel economy from Sec.  
600.210-12(c).

    (2) For plug-in hybrid electric vehicles, calculate two separate 
fuel consumption rates as follows:
    (i) Calculate the fuel consumption rate based on engine operation 
after the

[[Page 39564]]

battery is fully discharged as described in paragraph (c)(1) of this 
section.
    (ii) Calculate the fuel consumption rate during operation before 
the battery is fully discharged in kW-hours per 100 miles as described 
in SAE J1711 (incorporated by reference in Sec.  600.011), as described 
in Sec.  600.116.
    (3) For electric vehicles, calculate the fuel consumption rate in 
kW-hours per 100 miles with the following formula, rounded to the 
nearest whole number:

Fuel Consumption Rate = 100/MPG

Where:

MPG = The combined fuel economy value from paragraph (a) of this 
section, in miles per kW-hour.

    (4) For hydrogen fuel cell vehicles, calculate the fuel consumption 
rate in kilograms of hydrogen per 100 miles with the following formula, 
rounded to the nearest whole number:

Fuel Consumption Rate = 100/MPG

Where:

MPG = The combined fuel economy value from paragraph (a) of this 
section, in miles per kilogram of hydrogen.

    (d) Fuel economy and greenhouse gas ratings. Determine a vehicle's 
fuel economy and greenhouse gas ratings as follows:
    (1) For gasoline-fueled vehicles that are not plug-in hybrid 
electric vehicles (including flexible fuel vehicles that operate on 
gasoline), establish a single rating based only on the vehicle's 
combined fuel economy from paragraph (a) of this section. For all other 
vehicles, establish a fuel economy rating based on the vehicle's 
combined fuel economy and establish a separate greenhouse gas rating 
based on combined CO2 emission rates from paragraph (b) of 
this section.
    (2) We will establish the fuel economy rating based on fuel 
consumption values specified in paragraph (c) of this section. We will 
establish the value dividing the 5 and 6 ratings based on the fuel 
consumption corresponding to the projected achieved Corporate Average 
Fuel Economy level for the applicable model year. This is intended to 
prevent below-average vehicles from getting an above-average fuel 
economy rating for the label. We will establish the remaining cutpoints 
based on a statistical evaluation of available information from the 
certification database for all model types. Specifically, the mean 
value plus two standard deviations will define the point between the 1 
and 2 ratings. The mean value minus two standard deviations will define 
the point between the 9 and 10 ratings. The 1 rating will apply for any 
vehicle with higher fuel consumption rates than the 2 rating; 
similarly, the 10 rating will apply for any vehicle with lower fuel 
consumption rates than the 9 rating. We will calculate range values for 
the remaining intermediate ratings by dividing the range into equal 
intervals. We will convert the resulting range intervals to equivalent 
miles-per-gallon values. We will define the greenhouse gas ratings by 
converting the values from the fuel economy rating intervals to 
equivalent CO2 emission rates using the conventional 
conversion factor for gasoline (8887 g CO2 per gallon of 
consumed fuel).
    (e) Annual fuel cost. Calculate annual fuel costs as follows:
    (1) Except as specified in paragraph (e)(3) of this section, 
calculate the total annual fuel cost with the following formula, 
rounded to nearest $50:

Annual Fuel Cost = Fuel Price/MPG x Average Annual Miles

W

here:Fuel Price = The estimated fuel price provided by EPA for the 
type of fuel required for the vehicle. The units are dollars per 
gallon for gasoline and diesel fuel, dollars per gasoline gallon 
equivalent for natural gas, dollars per kW-hr for plug-in 
electricity, and dollars per kilogram of hydrogen for hydrogen fuel 
cell vehicles.
MPG = The combined fuel economy value from paragraph (a) of this 
section. The units are miles per gallon for gasoline and diesel 
fuel, miles per gasoline gallon equivalent for natural gas, miles 
per kW-hr for plug-in electricity, and miles per kilogram of 
hydrogen for hydrogen fuel cell vehicles.
Average Annual Miles = The estimated annual mileage figure provided 
by EPA, in miles.

    (2) For dual fuel vehicles and flexible fuel vehicles, disregard 
operation on the alternative fuel.
    (3) For plug-in hybrid electric vehicles, calculate annual fuel 
cost as described in this paragraph (e)(3). This description applies 
for vehicles whose engine starts only after the battery is fully 
discharged. Use good engineering judgment to extrapolate this for 
calculating annual fuel cost for vehicles that use combined power from 
the battery and the engine before the battery is fully discharged. 
Calculate annual fuel cost as follows:
    (i) Determine the charge-depleting ranges for city and highway 
operation as described in paragraph (j)(4)(i) of this section. Adjust 
each of these values for 5-cycle operation.
    (ii) Calculate multi-day individual utility factors (UF) as 
described in Sec.  600.116 corresponding to the driving ranges from 
paragraph (e)(3)(i) of this section.
    (iii) Calculate values for the vehicle's average fuel economy over 
the charge-depleting range (in miles per kW-hr) for city and highway 
operation as described in Sec.  600.210. Adjust each of these values 
for 5-cycle operation. Convert these to $/mile values by dividing the 
appropriate fuel price from paragraph (e)(1) of this section by the 
average fuel economy determined in this paragraph (e)(3)(iii).
    (iv) Calculate values for the vehicle's average fuel economy over 
the charge-sustaining range (in miles per gallon) for city and highway 
operation as described in Sec.  600.210-12. Adjust each of these values 
for 5-cycle operation. Convert these to $/mile values by dividing the 
appropriate fuel price from paragraph (e)(1) of this section by the 
average fuel economy determined in this paragraph (e)(3)(iv).
    (v) Calculate a composite $/mile value for city driving using the 
following equation:

$/mile = $/mileCD x UF + $/mileCS x (1-UF)

    (vi) Repeat the calculation in paragraph (e)(3)(v) of this section 
for highway driving.
    (vii) Calculate the annual fuel cost based the combined values for 
city and highway driving using the following equation:

Annual fuel cost = ($/milecity x 0.55 + $/milehwy 
x 0.45) x Average Annual Miles

    (f) Fuel savings. Calculate an estimated five-year cost increment 
relative to an average vehicle by multiplying the unrounded annual fuel 
cost from paragraph (e) of this section by 5 and subtracting this value 
from the average five-year fuel cost. We will calculate the average 
five-year fuel cost from the annual fuel cost equation in paragraph (e) 
of this section based on a gasoline-fueled vehicle with a mean fuel 
economy value, consistent with the value dividing the 5 and 6 ratings 
under paragraph (d) of this section. The average five-year fuel cost 
for model year 2012 is $12,600 for a 22-mpg vehicle that drives 15,000 
miles per year with gasoline priced at $3.70 per gallon. We may 
periodically update this five-year reference fuel cost for later model 
years to better characterize the fuel economy for an average vehicle. 
Round the calculated five-year cost increment to the nearest $50. 
Negative values represent a cost increase compared to the average 
vehicle.
    (g) Smog rating. Establish a rating for exhaust emissions other 
than CO2 based on the applicable emission standards as shown 
in Table 2 of this section. For

[[Page 39565]]

Independent Commercial Importers that import vehicles not subject to 
Tier 2 emission standards, the vehicle's smog rating is 1. If EPA or 
California emission standards change in the future, we may revise the 
emission levels corresponding to each rating for future model years as 
appropriate to reflect the changed standards. If this occurs, we would 
publish the revised ratings as described in Sec.  600.302-12(k), 
allowing sufficient lead time to make the changes; we would also expect 
to initiate a rulemaking to update the smog rating in the regulation.

   Table 1 to Sec.   600.311-12--Criteria for Establishing Smog Rating
------------------------------------------------------------------------
                                                       California Air
            Rating               U.S. EPA Tier 2    Resources Board LEV
                                emission standard   II emission standard
------------------------------------------------------------------------
1.............................  --...............  ULEV &LEV II large
                                                    trucks
2.............................  Bin 8............  SULEV II large trucks
3.............................  Bin 7............  --
4.............................  Bin 6............  LEV II, option 1
5.............................  Bin 5............  LEV II
6.............................  Bin 4............  ULEV II
7.............................  Bin 3............  --
8.............................  Bin 2............  SULEV II
9.............................  --...............  PZEV
10............................  Bin 1............  ZEV
------------------------------------------------------------------------

     (h) Ranges of fuel economy and CO2 emission values. We 
will determine the range of combined fuel economy and CO2 
emission values for each vehicle class identified in Sec.  600.315. We 
will generally update these range values before the start of each model 
year based on the lowest and highest values within each vehicle class. 
We will also use this same information to establish a range of fuel 
economy values for all vehicles. Continue to use the most recently 
published numbers until we update them, even if you start a new model 
year before we publish the range values for the new model year.
    (i) [Reserved]
    (j) Driving range. Determine the driving range for certain vehicles 
as follows:
    (1) For vehicles operating on nonpressurized liquid fuels, 
determine the vehicle's driving range in miles by multiplying the 
combined fuel economy described in paragraph (a) of this section by the 
vehicle's usable fuel storage capacity, rounded to the nearest whole 
number.
    (2) For electric vehicles, determine the vehicle's overall driving 
range as described in Section 8 of SAE J1634 (incorporated by reference 
in Sec.  600.011), as described in Sec.  600.116. Determine separate 
range values for FTP-based city and HFET-based highway driving, then 
calculate a combined value by arithmetically averaging the two values, 
weighted 0.55 and 0.45 respectively, and rounding to the nearest whole 
number.
    (3) For natural gas vehicles, determine the vehicle's driving range 
in miles by multiplying the combined fuel economy described in 
paragraph (a) of this section by the vehicle's usable fuel storage 
capacity (expressed in gasoline gallon equivalents), rounded to the 
nearest whole number.
    (4) For plug-in hybrid electric vehicles, determine the battery 
driving range and overall driving range as described in SAE J1711 
(incorporated by reference in Sec.  600.011), as described in Sec.  
600.116, as follows:
    (i) Determine the vehicle's Actual Charge-Depleting Range, 
Rcda. Determine separate range values for FTP-based city and 
HFET-based highway driving, then calculate a combined value by 
arithmetically averaging the two values, weighted 0.55 and 0.45 
respectively, and rounding to the nearest whole number. Precondition 
the vehicle as needed to minimize engine operation for consuming stored 
fuel vapors in evaporative canisters; for example, you may purge the 
evaporative canister or time a refueling event to avoid engine starting 
related to purging the canister. For vehicles that use combined power 
from the battery and the engine before the battery is fully discharged, 
also use this procedure to establish an all electric range by 
determining the distance the vehicle drives before the engine starts, 
rounded to the nearest mile. You may represent this as a range of 
values. We may approve adjustments to these procedures if they are 
necessary to properly characterize a vehicle's all electric range.
    (ii) Use good engineering judgment to calculate the vehicle's 
operating distance before the fuel tank is empty when starting with a 
full fuel tank and a fully charged battery, consistent with the 
procedure and calculation specified in this paragraph (j), rounded to 
the nearest 10 miles.
    (5) For hydrogen fuel cell vehicles, determine the vehicle's 
driving range in miles by multiplying the combined fuel economy 
described in paragraph (a) of this section by the vehicle's usable fuel 
storage capacity (expressed in kilograms of hydrogen), rounded to the 
nearest whole number.
    (k) Charge time. For electric vehicles, determine the time it takes 
to fully charge the battery from a 240 volt power source to the point 
that the battery meets the manufacturer's end-of-charge criteria, 
consistent with the procedures specified in SAE J1634 (incorporated by 
reference in Sec.  600.011) for electric vehicles and in SAE J1711 
(incorporated by reference in Sec.  600.011) for plug-in hybrid 
electric vehicles, as described in Sec.  600.116. This value may be 
more or less than the 12-hour minimum charging time specified for 
testing. You must alternatively specify the charge time based on a 
standard 120 volt power source if the vehicle cannot be charged at the 
higher voltage.
    (l) California-specific values. If the Administrator determines 
that automobiles intended for sale in California are likely to exhibit 
significant differences in fuel economy or other label values from 
those intended for sale in other states, the Administrator will compute 
separate values for each class of automobiles for California and for 
the other states.

0
61. Section 600.314-08 is revised to read as follows:

Sec.  600.314-08  Updating label values, annual fuel cost, Gas Guzzler 
Tax, and range of fuel economy for comparable automobiles.

    (a) The label values established in Sec.  600.312 shall remain in 
effect for the model year unless updated in accordance with paragraph 
(b) of this section.
    (b)(1) The manufacturer shall recalculate the model type fuel 
economy values for any model type containing

[[Page 39566]]

base levels affected by running changes specified in Sec.  600.507.
    (2) For separate model types created in Sec.  600.209-08(a)(2) or 
Sec.  600.209-12(a)(2), the manufacturer shall recalculate the model 
type values for any additions or deletions of subconfigurations to the 
model type. Minimum data requirements specified in Sec.  600.010(c) 
shall be met prior to recalculation.
    (3) Label value recalculations shall be performed as follows:
    (i) The manufacturer shall use updated total model year projected 
sales for label value recalculations.
    (ii) All model year data approved by the Administrator at the time 
of the recalculation for that model type shall be included in the 
recalculation.
    (iii) Using the additional data under this paragraph (b), the 
manufacturer shall calculate new model type city and highway values in 
accordance with Sec.  600.210 except that the values shall be rounded 
to the nearest 0.1 mpg.
    (iv) The existing label values, calculated in accordance with Sec.  
600.210, shall be rounded to the nearest 0.1 mpg.
    (4)(i) If the recalculated city or highway fuel economy value in 
paragraph (b)(3)(iii) of this section is less than the respective city 
or highway value in paragraph (b)(3)(iv) of this section by 1.0 mpg or 
more, the manufacturer shall affix labels with the recalculated model 
type values (rounded to the nearest whole mpg) to all new vehicles of 
that model type beginning on the day of implementation of the running 
change.
    (ii) If the recalculated city or highway fuel economy value in 
paragraph (b)(3)(iii) of this section is higher than the respective 
city or highway value in paragraph (b)(3)(iv) of this section by 1.0 
mpg or more, then the manufacturer has the option to use the 
recalculated values for labeling the entire model type beginning on the 
day of implementation of the running change.
    (c) For fuel economy labels updated using recalculated fuel economy 
values determined in accordance with paragraph (b) of this section, the 
manufacturer shall concurrently update all other label information 
(e.g., the annual fuel cost, range of comparable vehicles and the 
applicability of the Gas Guzzler Tax as needed).
    (d) The Administrator shall periodically update the range of fuel 
economies of comparable automobiles based upon all label data supplied 
to the Administrator.
    (e) The manufacturer may request permission from the Administrator 
to calculate and use label values based on test data from vehicles 
which have not completed the Administrator-ordered confirmatory testing 
required under the provisions of Sec.  600.008-08(b). If the 
Administrator approves such a calculation the following procedures 
shall be used to determine if relabeling is required after the 
confirmatory testing is completed.
    (1) The Administrator-ordered confirmatory testing shall be 
completed as quickly as possible.
    (2) Using the additional data under paragraph (e)(1) of this 
section, the manufacturer shall calculate new model type city and 
highway values in accordance with Sec. Sec.  600.207 and 600.210 except 
that the values shall be rounded to the nearest 0.1 mpg.
    (3) The existing label values, calculated in accordance with Sec.  
600.210, shall be rounded to the nearest 0.1 mpg.
    (4) The manufacturer may need to revise fuel economy labels as 
follows:
    (i) If the recalculated city or highway fuel economy value in 
paragraph (b)(3)(iii) of this section is less than the respective city 
or highway value in paragraph (b)(3)(iv) of this section by 0.5 mpg or 
more, the manufacturer shall affix labels with the recalculated model 
type MPG values (rounded to the nearest whole number) to all new 
vehicles of that model type beginning 15 days after the completion of 
the confirmatory test.
    (ii) If both the recalculated city or highway fuel economy value in 
paragraph (b)(3)(iii) of this section is less than the respective city 
or highway value in paragraph (b)(3)(iv) of this section by 0.1 mpg or 
more and the recalculated gas guzzler tax rate determined under the 
provisions of Sec.  600.513-08 is larger, the manufacturer shall affix 
labels with the recalculated model type values and gas guzzler tax 
statement and rates to all new vehicles of that model type beginning 15 
days after the completion of the confirmatory test.
    (5) For fuel economy labels updated using recalculated fuel economy 
values determined in accordance with paragraph (e)(4) of this section, 
the manufacturer shall concurrently update all other label information 
(e.g., the annual fuel cost, range of comparable vehicles and the 
applicability of the Gas Guzzler Tax if required by Department of 
Treasury regulations).

0
62. Section 600.315-08 is amended by revising paragraphs (a)(2) and (c) 
introductory text to read as follows:

Sec.  600.315-08  Classes of comparable automobiles.

    (a) * * *
    (2) The Administrator will classify light trucks (nonpassenger 
automobiles) into the following classes: Small pickup trucks, standard 
pickup trucks, vans, minivans, and SUVs. Starting in the 2013 model 
year, SUVs will be divided between small sport utility vehicles and 
standard sport utility vehicles. Pickup trucks and SUVs are separated 
by car line on the basis of gross vehicle weight rating (GVWR). For a 
product line with more than one GVWR, establish the characteristic GVWR 
value for the product line by calculating the arithmetic average of all 
distinct GVWR values less than or equal to 8,500 pounds available for 
that product line. The Administrator may determine that specific light 
trucks should be most appropriately placed in a different class or in 
the special purpose vehicle class as provided in paragraphs (a)(3)(i) 
and (ii) of this section, based on the features and characteristics of 
the specific vehicle, consumer information provided by the 
manufacturer, and other information available to consumers.
    (i) Small pickup trucks. Pickup trucks with a GVWR below 6,000 
pounds.
    (ii) Standard pickup trucks. Pickup trucks with a GVWR at or above 
6,000 pounds and at or below 8,500 pounds.
    (iii) Vans.
    (iv) Minivans.
    (v) Small sport utility vehicles. Sport utility vehicles with a 
GVWR below 6,000 pounds.
    (vi) Standard sport utility vehicles. Sport utility vehicles with a 
GVWR at or above 6,000 pounds and at or below 10,000 pounds.
* * * * *
    (c) All interior and cargo dimensions are measured in inches to the 
nearest 0.1 inch. All dimensions and volumes shall be determined from 
the base vehicles of each body style in each car line, and do not 
include optional equipment. The dimensions H61, W3, W5, L34, H63, W4, 
W6, L51, H201, L205, L210, L211, H198, W201, and volume V1 are to be 
determined in accordance with the procedures outlined in Motor Vehicle 
Dimensions SAE 1100a (incorporated by reference in Sec.  600.011), 
except as follows:
* * * * *

0
63. Newly redesignated Sec.  600.316-08 is revised to read as follows:

Sec.  600.316-08  Multistage manufacture.

    Where more than one person is the manufacturer of a vehicle, the 
final stage manufacturer (as defined in 49 CFR 529.3) is treated as the 
vehicle manufacturer for purposes of compliance with this subpart.

[[Page 39567]]

Subpart E--Dealer Availability of Fuel Economy Information

0
64. The heading for subpart E is revised as set forth above.

Sec. Sec.  600.401-77, 600.402-77, 600.403-77, 600.404-77, 600.405-77, 
600.406-77, 600.407-77  [Removed]

0
65. Subpart E is amended by removing the following sections:
    Sec.  600.401-77.
    Sec.  600.402-77.
    Sec.  600.403-77.
    Sec.  600.404-77.
    Sec.  600.405-77.
    Sec.  600.406-77.
    Sec.  600.407-77.

Subpart F--Procedures for Determining Manufacturer's Average Fuel 
Economy and Manufacturer's Average Carbon-related Exhaust Emissions

0
66. The heading for subpart F is revised as set forth above.

Sec. Sec.  600.501-12, 600.501-85, 600.501-86, 600.501-93, 600.503-78, 
600.504-78, 600.505-78, 600.507-86, 600.510-86, 600.510-93, 600.512-01, 
600.512-86, 600.513-81, 600.513-91  [Removed]

0
67. Subpart F is amended by removing the following sections:
    Sec.  600.501-12.
    Sec.  600.501-85.
    Sec.  600.501-86.
    Sec.  600.501-93.
    Sec.  600.503-78.
    Sec.  600.504-78.
    Sec.  600.505-78.
    Sec.  600.507-86.
    Sec.  600.510-86.
    Sec.  600.510-93.
    Sec.  600.512-01.
    Sec.  600.512-86.
    Sec.  600.513-81.
    Sec.  600.513-91.

Sec.  600.502-81  [Redesignated as Sec.  600.502]

0
68. Redesignate Sec.  600.502-81 as Sec.  600.502.

0
69. Newly redesignated Sec.  600.502 is revised to read as follows:

Sec.  600.502  Definitions.

    The following definitions apply to this subpart in addition to 
those in Sec.  600.002:
    (a) The Declared value of imported components shall be:
    (1) The value at which components are declared by the importer to 
the U.S. Customs Service at the date of entry into the customs 
territory of the United States; or
    (2) With respect to imports into Canada, the declared value of such 
components as if they were declared as imports into the United States 
at the date of entry into Canada; or
    (3) With respect to imports into Mexico, the declared value of such 
components as if they were declared as imports into the United States 
at the date of entry into Mexico.
    (b) Cost of production of a car line shall mean the aggregate of 
the products of:
    (1) The average U.S. dealer wholesale price for such car line as 
computed from each official dealer price list effective during the 
course of a model year, and
    (2) The number of automobiles within the car line produced during 
the part of the model year that the price list was in effect.
    (c) Equivalent petroleum-based fuel economy value means a number 
representing the average number of miles traveled by an electric 
vehicle per gallon of gasoline.

0
70. Section 600.507-12 is amended by revising paragraph (a) 
introductory text and paragraph (c) to read as follows:

Sec.  600.507-12  Running change data requirements.

    (a) Except as specified in paragraph (d) of this section, the 
manufacturer shall submit additional running change fuel economy and 
carbon-related exhaust emissions data as specified in paragraph (b) of 
this section for any running change approved or implemented under Sec.  
86.1842 of this chapter, which:
* * * * *
    (c) The manufacturer shall submit the fuel economy data required by 
this section to the Administrator in accordance with Sec.  600.314.
* * * * *

Sec.  600.509-86  [Redesignated as Sec.  600.509-08]

0
71. Redesignate Sec.  600.509-86 as Sec.  600.509-08.

0
72. Section 600.510-08 is amended by revising paragraph (g)(1)(ii) to 
read as follows:

Sec.  600.510-08  Calculation of average fuel economy.

* * * * *
    (g) * * *
    (1) * * *
    (ii)(A) The net heating value for alcohol fuels shall be 
premeasured using a test method which has been approved in advance by 
the Administrator.
    (B) The density for alcohol fuels shall be determined per ASTM D 
1298 (incorporated by reference at Sec.  600.011).
* * * * *
    73. Section 600.510-12 is amended by revising paragraphs (b)(2) 
introductory text, (b)(3) introductory text, (c)(2)(iv)(B), (g)(1), (i) 
introductory text (and equation), and (j)(2) to read as follows:

Sec.  600.510-12  Calculation of average fuel economy and average 
carbon-related exhaust emissions.

* * * * *
    (b) * * *
    (2) The combined city/highway fuel economy and carbon-related 
exhaust emission values will be calculated for each model type in 
accordance with Sec.  600.208 except that:
* * * * *
    (3) The fuel economy and carbon-related exhaust emission values for 
each vehicle configuration are the combined fuel economy and carbon-
related exhaust emissions calculated according to Sec.  600.206-
12(a)(3) except that:
* * * * *
    (c) * * *
    (2) * * *
    (iv) * * *
    (B) The combined model type fuel economy value for operation on 
alcohol fuel as determined in Sec.  600.208-12(b)(5)(ii) divided by 
0.15 provided the requirements of paragraph (g) of this section are 
met; or
* * * * *
    (g)(1) Alcohol dual fuel automobiles and natural gas dual fuel 
automobiles must provide equal or greater energy efficiency while 
operating on alcohol or natural gas as while operating on gasoline or 
diesel fuel to obtain the CAFE credit determined in paragraphs 
(c)(2)(iv) and (v) of this section or to obtain the carbon-related 
exhaust emissions credit determined in paragraphs (j)(2)(ii) and (iii) 
of this section. The following equation must hold true:

Ealt/Epet = 1

Where:

Ealt= [FEalt/(NHValtx 
Dalt)] x 10\6\ = energy efficiency while operating on 
alternative fuel rounded to the nearest 0.01 miles/million BTU.
Epet= [FEpet/(NHVpetx 
Dpet)] x 10\6\ = energy efficiency while operating on 
gasoline or diesel (petroleum) fuel rounded to the nearest 0.01 
miles/million BTU.
FEalt is the fuel economy [miles/gallon for liquid fuels 
or miles/100 standard cubic feet for gaseous fuels] while operated 
on the alternative fuel as determined in Sec.  600.113-12(a) and 
(b).
FEpet is the fuel economy [miles/gallon] while operated 
on petroleum fuel (gasoline or diesel) as determined in Sec.  
600.113-12(a) and (b).
NHValt is the net (lower) heating value [BTU/lb] of the 
alternative fuel.
NHVpet is the net (lower) heating value [BTU/lb] of the 
petroleum fuel.

[[Page 39568]]

Dalt is the density [lb/gallon for liquid fuels or lb/100 
standard cubic feet for gaseous fuels] of the alternative fuel.
    Dpet is the density [lb/gallon] of the petroleum 
fuel.

    (i) The equation must hold true for both the FTP city and HFET 
highway fuel economy values for each test of each test vehicle.
    (ii)(A) The net heating value for alcohol fuels shall be 
premeasured using a test method which has been approved in advance by 
the Administrator.
    (B) The density for alcohol fuels shall be premeasured using ASTM D 
1298 (incorporated by reference at Sec.  600.011).
    (iii) The net heating value and density of gasoline are to be 
determined by the manufacturer in accordance with Sec.  600.113.
* * * * *
    (i) For model years 2012 through 2015, and for each category of 
automobile identified in paragraph (a)(1) of this section, the maximum 
decrease in average carbon-related exhaust emissions determined in 
paragraph (j) of this section attributable to alcohol dual fuel 
automobiles and natural gas dual fuel automobiles shall be calculated 
using the following formula, and rounded to the nearest tenth of a gram 
per mile:
[GRAPHIC] [TIFF OMITTED] TR06JY11.044

Where:

FltAvg = The fleet average CREE value in grams per mile, rounded to 
the nearest whole number, for passenger automobiles or light trucks 
determined for the applicable model year according to paragraph (j) 
of this section, except by assuming all alcohol dual fuel and 
natural gas dual fuel automobiles are operated exclusively on 
gasoline (or diesel) fuel.
MPGMAX = The maximum increase in miles per gallon 
determined for the appropriate model year in paragraph (h) of this 
section.
* * * * *
    (j) * * *
    (2) A sum of terms, each of which corresponds to a model type 
within that category of automobiles and is a product determined by 
multiplying the number of automobiles of that model type produced by 
the manufacturer in the model year by:
    (i) For gasoline-fueled and diesel-fueled model types, the carbon-
related exhaust emissions value calculated for that model type in 
accordance with paragraph (b)(2) of this section; or
    (ii)(A) For alcohol-fueled model types, for model years 2012 
through 2015, the carbon-related exhaust emissions value calculated for 
that model type in accordance with paragraph (b)(2) of this section 
multiplied by 0.15 and rounded to the nearest gram per mile, except 
that manufacturers complying with the fleet averaging option for 
N2O and CH4 as allowed under Sec.  86.1818 of 
this chapter must perform this calculation such that N2O and 
CH4 values are not multiplied by 0.15; or
    (B) For alcohol-fueled model types, for model years 2016 and later, 
the carbon-related exhaust emissions value calculated for that model 
type in accordance with paragraph (b)(2) of this section; or
    (iii)(A) For natural gas-fueled model types, for model years 2012 
through 2015, the carbon-related exhaust emissions value calculated for 
that model type in accordance with paragraph (b)(2) of this section 
multiplied by 0.15 and rounded to the nearest gram per mile, except 
that manufacturers complying with the fleet averaging option for 
N2O and CH4 as allowed under Sec.  86.1818 of 
this chapter must perform this calculation such that N2O and 
CH4 values are not multiplied by 0.15; or
    (B) For natural gas-fueled model types, for model years 2016 and 
later, the carbon-related exhaust emissions value calculated for that 
model type in accordance with paragraph (b)(2) of this section; or
    (iv) For alcohol dual fuel model types, for model years 2012 
through 2015, the arithmetic average of the following two terms, the 
result rounded to the nearest gram per mile:
    (A) The combined model type carbon-related exhaust emissions value 
for operation on gasoline or diesel fuel as determined in Sec.  
600.208-12(b)(5)(i); and
    (B) The combined model type carbon-related exhaust emissions value 
for operation on alcohol fuel as determined in Sec.  600.208-
12(b)(5)(ii) multiplied by 0.15 provided the requirements of paragraph 
(g) of this section are met, except that manufacturers complying with 
the fleet averaging option for N2O and CH4 as 
allowed under Sec.  86.1818 of this chapter must perform this 
calculation such that N2O and CH4 values are not 
multiplied by 0.15; or
    (v) For natural gas dual fuel model types, for model years 2012 
through 2015, the arithmetic average of the following two terms; the 
result rounded to the nearest gram per mile:
    (A) The combined model type carbon-related exhaust emissions value 
for operation on gasoline or diesel as determined in Sec.  600.208-
12(b)(5)(i); and
    (B) The combined model type carbon-related exhaust emissions value 
for operation on natural gas as determined in Sec.  600.208-
12(b)(5)(ii) multiplied by 0.15 provided the requirements of paragraph 
(g) of this section are met, except that manufacturers complying with 
the fleet averaging option for N2O and CH4 as 
allowed under Sec.  86.1818 of this chapter must perform this 
calculation such that N2O and CH4 values are not 
multiplied by 0.15.
    (vi) For alcohol dual fuel model types, for model years 2016 and 
later, the combined model type carbon-related exhaust emissions value 
determined according to the following formula and rounded to the 
nearest gram per mile:

CREE = (F x CREEalt) + ((1 - F) x CREEgas)

Where:

F = 0.00 unless otherwise approved by the Administrator according to 
the provisions of paragraph (k) of this section;
CREEalt = The combined model type carbon-related exhaust 
emissions value for operation on alcohol fuel as determined in Sec.  
600.208-12(b)(5)(ii); and
CREEgas = The combined model type carbon-related exhaust 
emissions value for operation on gasoline or diesel fuel as 
determined in Sec.  600.208-12(b)(5)(i).

    (vii) For natural gas dual fuel model types, for model years 2016 
and later, the combined model type carbon-related exhaust emissions 
value determined according to the following formula and rounded to the 
nearest gram per mile:

    CREE = (F x CREEalt) + ((1 - F) x CREEgas)

Where:

    F = 0.00 unless otherwise approved by the Administrator 
according to the provisions of paragraph (k) of this section;

[[Page 39569]]

CREEalt = The combined model type carbon-related exhaust 
emissions value for operation on natural gas as determined in Sec.  
600.208-12(b)(5)(ii); and
CREEgas = The combined model type carbon-related exhaust 
emissions value for operation on gasoline or diesel fuel as 
determined in Sec.  600.208-12(b)(5)(i).
* * * * *

Sec.  600.511-80  [Redesignated as Sec.  600.511-08]

0
74. Redesignate Sec.  600.511-80 as Sec.  600.511-08.

0
75. Section 600.512-12 is amended by revising paragraph (c) to read as 
follows:

Sec.  600.512-12  Model year report.

* * * * *
    (c) The model year report must include the following information:
    (1)(i) All fuel economy data used in the FTP/HFET-based model type 
calculations under Sec.  600.208, and subsequently required by the 
Administrator in accordance with Sec.  600.507;
    (ii) All carbon-related exhaust emission data used in the FTP/HFET-
based model type calculations under Sec.  600.208, and subsequently 
required by the Administrator in accordance with Sec.  600.507;
    (2) (i) All fuel economy data for certification vehicles and for 
vehicles tested for running changes approved under Sec.  86.1842 of 
this chapter;
    (ii) All carbon-related exhaust emission data for certification 
vehicles and for vehicles tested for running changes approved under 
Sec.  86.1842 of this chapter;
    (3) Any additional fuel economy and carbon-related exhaust emission 
data submitted by the manufacturer under Sec.  600.509;
    (4)(i) A fuel economy value for each model type of the 
manufacturer's product line calculated according to Sec.  600.510-
12(b)(2);
    (ii) A carbon-related exhaust emission value for each model type of 
the manufacturer's product line calculated according to Sec.  600.510-
12(b)(2);
    (5)(i) The manufacturer's average fuel economy value calculated 
according to Sec.  600.510-12(c);
    (ii) The manufacturer's average carbon-related exhaust emission 
value calculated according to Sec.  600.510-12(j);
    (6) A listing of both domestically and nondomestically produced car 
lines as determined in Sec.  600.511 and the cost information upon 
which the determination was made; and
    (7) The authenticity and accuracy of production data must be 
attested to by the corporation, and shall bear the signature of an 
officer (a corporate executive of at least the rank of vice-president) 
designated by the corporation. Such attestation shall constitute a 
representation by the manufacturer that the manufacturer has 
established reasonable, prudent procedures to ascertain and provide 
production data that are accurate and authentic in all material 
respects and that these procedures have been followed by employees of 
the manufacturer involved in the reporting process. The signature of 
the designated officer shall constitute a representation by the 
required attestation.
    (8) [Reserved]
    (9) The ``required fuel economy level'' pursuant to 49 CFR parts 
531 or 533, as applicable. Model year reports shall include information 
in sufficient detail to verify the accuracy of the calculated required 
fuel economy level, including but is not limited to, production 
information for each unique footprint within each model type contained 
in the model year report and the formula used to calculate the required 
fuel economy level. Model year reports shall include a statement that 
the method of measuring vehicle track width, measuring vehicle 
wheelbase and calculating vehicle footprint is accurate and complies 
with applicable Department of Transportation requirements.
    (10) The ``required fuel economy level'' pursuant to 49 CFR parts 
531 or 533 as applicable, and the applicable fleet average 
CO2 emission standards. Model year reports shall include 
information in sufficient detail to verify the accuracy of the 
calculated required fuel economy level and fleet average CO2 
emission standards, including but is not limited to, production 
information for each unique footprint within each model type contained 
in the model year report and the formula used to calculate the required 
fuel economy level and fleet average CO2 emission standards. 
Model year reports shall include a statement that the method of 
measuring vehicle track width, measuring vehicle wheelbase and 
calculating vehicle footprint is accurate and complies with applicable 
Department of Transportation and EPA requirements.
    (11) A detailed (but easy to understand) list of vehicle models and 
the applicable in-use CREE emission standard. The list of models shall 
include the applicable carline/subconfiguration parameters (including 
carline, equivalent test weight, road-load horsepower, axle ratio, 
engine code, transmission class, transmission configuration and basic 
engine); the test parameters (ETW and a, b, c, dynamometer 
coefficients) and the associated CREE emission standard. The 
manufacturer shall provide the method of identifying EPA engine code 
for applicable in-use vehicles.

0
76. Sec.  600.513-08 is revised to read as follows:

Sec.  600.513-08  Gas Guzzler Tax.

    (a) This section applies only to passenger automobiles sold after 
December 27, 1991, regardless of the model year of those vehicles. For 
alcohol dual fuel and natural gas dual fuel automobiles, the fuel 
economy while such automobiles are operated on gasoline will be used 
for Gas Guzzler Tax assessments.
    (1) The provisions of this section do not apply to passenger 
automobiles exempted for Gas Guzzler Tax assessments by applicable 
Federal law and regulations. However, the manufacturer of an exempted 
passenger automobile may, in its discretion, label such vehicles in 
accordance with the provisions of this section.
    (2) For 1991 and later model year passenger automobiles, the 
combined FTP/HFET-based model type fuel economy value determined in 
Sec.  600.208 used for Gas Guzzler Tax assessments shall be calculated 
in accordance with the following equation, rounded to the nearest 0.1 
mpg:

FEadj = FE[((0.55 x ag x c) + (0.45 x c) + 
(0.5556 x ag) + 0.4487)/((0.55 x ag) + 0.45)] + 
IWg

Where:

FEadj = Fuel economy value to be used for determination 
of gas guzzler tax assessment rounded to the nearest 0.1 mpg.
FE = Combined model type fuel economy calculated in accordance with 
Sec.  600.208, rounded to the nearest 0.0001 mpg.
ag = Model type highway fuel economy, calculated in 
accordance with Sec.  600.208, rounded to the nearest 0.0001 mpg 
divided by the model type city fuel economy calculated in accordance 
with Sec.  600.208, rounded to the nearest 0.0001 mpg. The quotient 
shall be rounded to 4 decimal places.
c = gas guzzler adjustment factor = 1.300 x 10\-3\ for the 1986 and 
later model years.
IWg = (9.2917 x 10\-3\x 
SF3IWCGFE3IWCG) - (3.5123 x 10\-3\x 
SF4ETWG x FE4IWCG).

    Note: Any calculated value of IW less than zero shall be set 
equal to zero.

SF3IWCG = The 3000 lb. inertia weight class sales in the 
model type divided by the total model type sales; the quotient shall 
be rounded to 4 decimal places.
SF4ETWG = The 4000 lb. equivalent test weight sales in 
the model type divided by the total model type sales, the quotient 
shall be rounded to 4 decimal places.

[[Page 39570]]

FE3IWCG = The 3000 lb. inertial weight class base level 
combined fuel economy used to calculate the model type fuel economy 
rounded to the nearest 0.0001 mpg.
FE4IWCG = The 4000 lb. inertial weight class base level 
combined fuel economy used to calculate the model type fuel economy 
rounded to the nearest 0.001 mpg.

    (b)(1) For passenger automobiles sold after December 31, 1990, with 
a combined FTP/HFET-based model type fuel economy value of less than 
22.5 mpg (as determined in Sec.  600.208), calculated in accordance 
with paragraph (a)(2) of this section and rounded to the nearest 0.1 
mpg, each vehicle fuel economy label shall include a Gas Guzzler Tax 
statement pursuant to 49 U.S.C. 32908(b)(1)(E). The tax amount stated 
shall be as specified in paragraph (b)(2) of this section.
    (2) For passenger automobiles with a combined general label model 
type fuel economy value of:

------------------------------------------------------------------------
                                                   the Gas Guzzler Tax
         At least * * *             but less     statement shall show a
                                   than * * *         tax of * * *
------------------------------------------------------------------------
(i) 22.5........................  ............                       $0
(ii) 21.5.......................         22.5                    $1,000
(iii) 20.5......................         21.5                    $1,300
(iv) 19.5.......................         20.5                    $1,700
(v) 18.5........................         19.5                    $2,100
(vi) 17.5.......................         18.5                    $2,600
(vii) 16.5......................         17.5                    $3,000
(viii) 15.5.....................         16.5                    $3,700
(ix) 14.5.......................         15.5                    $4,500
(x) 13.5........................         14.5                    $5,400
(xi) 12.5.......................         13.5                    $6,400
(xii) --........................         12.5                    $7,700
------------------------------------------------------------------------

0
77. The heading for Appendix I to Part 600 is revised to read as 
follows:

Appendix I to Part 600--Highway Fuel Economy Driving Schedule

* * * * *

0
78. Appendix II to Part 600 is amended by revising paragraph (b)(4) to 
read as follows:

Appendix II to Part 600--Sample Fuel Economy Calculations

* * * * *
    (b) * * *
    (4) Assume that the same vehicle was tested by the Federal 
Highway Fuel Economy Test Procedure and a calculation similar to 
that shown in (b)(3) of this section resulted in a highway fuel 
economy of MPGh of 36.9. According to the procedure in 
Sec.  600.210-08(c) or Sec.  600.210-12(c), the combined fuel 
economy (called MPGcomb) for the vehicle may be 
calculated by substituting the city and highway fuel economy values 
into the following equation:
[GRAPHIC] [TIFF OMITTED] TR06JY11.045

0
79. The heading for Appendix IV to Part 600 is revised to read as 
follows:

Appendix IV to Part 600--Sample Fuel Economy Labels for 2008 Through 
2012 Model Year Vehicles

0
80. The heading for Appendix V to Part 600 is revised to read as 
follows:

Appendix V to Part 600--Fuel Economy Label Style Guidelines for 2008 
Through 2012 Model Year Vehicles

0
81. Appendix VI to Part 600 is added to read as follows:

Appendix VI to Part 600--Sample Fuel Economy Labels and Style 
Guidelines for 2013 and Later Model Years

    This appendix illustrates label content and format for 2013 and 
later model years. Manufacturers must make a good faith effort to 
conform to these templates and follow these formatting 
specifications. EPA will make available electronic files for 
creating labels.

A. Gasoline-Fueled Vehicles, Including Hybrid Gasoline-Electric 
Vehicles With No Plug-In Capabilities

[[Page 39571]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.046

B. Gasoline-Fueled Vehicles, Including Hybrid Gasoline-Electric 
Vehicles with No Plug-In Capabilities, with Gas Guzzler Tax
[GRAPHIC] [TIFF OMITTED] TR06JY11.047

C. Diesel-Fueled Vehicles, Including Hybrid Diesel-Electric Vehicles 
with No Plug-In Capabilities

[[Page 39572]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.048

D. Dual Fuel Vehicle Label (Ethanol/Gasoline)
[GRAPHIC] [TIFF OMITTED] TR06JY11.049

E. Dual Fuel Vehicle Label (Ethanol/Gasoline) with Optional Display of 
Driving Range Values

[[Page 39573]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.050

F. Hydrogen Fuel Cell Vehicle Label
[GRAPHIC] [TIFF OMITTED] TR06JY11.051

G. Natural Gas Vehicle Label

[[Page 39574]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.052

H. Plug-in Hybrid Electric Vehicle Label, Series PHEV
[GRAPHIC] [TIFF OMITTED] TR06JY11.053

I. Plug-in Hybrid Electric Vehicle Label, Blended PHEV

[[Page 39575]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.054

J. Electric Vehicle Label
[GRAPHIC] [TIFF OMITTED] TR06JY11.055

K. Style Guidelines

    (a) Fuel economy labels must be printed on white or very light 
paper. Any label markings for which colors are not specified must be 
in black and white as shown. Some portions of the label must be 
filled with a blue or blue-shaded color as specified in subpart D of 
this part. Use the color blue defined in CMYK values of 40c-10m-0y-
0k, or it may be specified as Pantone 283.
    (b) Use a Univers font from Adobe or another source that 
properly reproduces the labels as shown in the samples. Use Light 
(L), Roman (R), Bold (B) or Black (Bl) font weights as noted. Font 
size is shown in points, followed by leading specifications in 
points to indicate line spacing (if applicable). Use white 
characters in black fields; use black characters in all other 
places. Unless noted otherwise, text is left-justified with a 1.6 
millimeter margin. Some type may need tracking adjustments to fit in 
the designated space.

[[Page 39576]]

    (c) Use the following conventions for lines and borders:
    (1) Narrow lines defining the border or separating the main 
fields are 1.6 millimeter thick.
    (2) Each rectangular shape or area, including the overall label 
outline, has an upper left corner that is square (0 radius). All 
other corners have a 3.2 millimeter radius.
    (d) Fuel and vehicle icons, range and slider bars, and agency 
names and logos are available electronically.
    (e) The following figures illustrate the formatting 
specifications:
BILLING CODE 6560-50-P
[GRAPHIC] [TIFF OMITTED] TR06JY11.056

[[Page 39577]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.057

BILLING CODE 6560-50-C

Appendix VIII to Part 600--[Removed]

0
82. Appendix VIII to Part 600 is removed.

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Chapter V

    In consideration of the foregoing, under the authority of 15 U.S.C. 
1232 and 49 U.S.C. 32908 and delegation of authority at 49 CFR 1.50, 
NHTSA amends 49 CFR Chapter V as follows:

PART 575--CONSUMER INFORMATION

0
1. The authority citation for part 575 is revised to read as follows:

    Authority: 49 U.S.C. 32302, 32304A, 30111, 30115, 30117, 30166, 
32908, and 20168, Pub. L. 104-414, 114 Stat. 1800, Pub. L. 109-59, 
119 Stat. 1144, 15 U.S.C. 1232(g), Pub. L. 110-140, 121 Stat. 1492; 
delegation of authority at 49 CFR 1.50.

0
2. In part 575, Subpart E, consisting of Sec.  575.401, is added to 
read as follows:

Subpart E--Energy Independence and Security Act; Consumer 
Information

Sec.  575.401  Vehicle labeling of fuel economy, greenhouse gas, and 
other pollutant emissions information.

    (a) Purpose and scope. The purpose of this section is to aid 
potential purchasers in the selection of new passenger cars and light 
trucks by providing them with information about vehicles' performance 
in terms of fuel economy, greenhouse gas (GHG), and other air pollutant 
emissions. Manufacturers of passenger cars and light trucks are 
required to include this information on the label described in this 
section. Although this information will also be available through means 
such as postings at http://www.fueleconomy.gov, the additional label 
information is intended to provide consumers with this information at 
the point of sale, and to help them compare between vehicles.
    (b) Application. This section applies to passenger cars and light 
trucks manufactured in model year 2013 and later. Manufacturers may 
optionally comply with this section during model year 2012.
    (c) Definitions.
    (1) Data element means a piece of information required or permitted 
to be included on the fuel economy and environment label.
    (2) Fuel economy and environment label means the label with 
information about automobile performance in terms of fuel economy, 
greenhouse gases, and other emissions and with rating systems for fuel 
economy, greenhouse gases, and other emissions that also indicate the 
automobile(s) with the highest fuel economy and lowest greenhouse gas 
emissions, as specified at 49 U.S.C. 32908(g).
    (3) Miles per gasoline gallon equivalent (MPGe) is a measure of 
distance traveled per unit of energy consumed, and functions as a 
recognizable equivalent to, e.g., kilowatt-hours per mile (kW-hr/mile).

[[Page 39578]]

    (4) Monroney label means the label placed on new automobiles with 
the manufacturer's suggested retail price and other consumer 
information, as specified at 15 U.S.C. 1231-1233 (also known as the 
``Automobile Information Disclosure Act label'').
    (5) Other air pollutants or other emissions means those tailpipe 
emissions, other than carbon dioxide (CO2), for which 
manufacturers must provide EPA with emissions rates for all new light 
duty vehicles each model year under EPA's Tier 2 light duty vehicle 
emissions standards requirements (40 CFR Part 86, Subpart S) or the 
parallel requirements for those vehicles certified instead to the 
California emissions standards. These air pollutants include non-
methane organic gases (NMOG), nitrogen oxides (NOX), 
particulate matter (PM), carbon monoxide (CO), and formaldehyde (HCHO).
    (6) Slider bar means a horizontal rating scale with a minimum value 
at one end and a maximum value at the other end that can accommodate a 
designation of a specific value between those values with a box or 
arrow. The actual rating value would be printed (displayed) at the 
proper position on the scale representing the vehicle's actual rating 
value relative to the two end values.
    (d) Required label. Prior to being offered for sale, each 
manufacturer must affix or cause to be affixed and each dealer must 
maintain or cause to be maintained on each passenger car or light truck 
a label that meets the requirements specified in this section, and 
conforms in content, format, and sequence to the sample labels depicted 
in the appendix to this section. The manufacturer must have the fuel 
economy label affixed in such a manner that appearance and legibility 
are maintained until after the vehicle is delivered to the ultimate 
consumer.
    (e) Required label information and format--general provisions--(1) 
Location. It is preferable that the fuel economy and environment label 
information be incorporated into the Monroney label, provided that the 
prominence and legibility of the fuel economy and environment label is 
maintained. If the fuel economy and environment label is incorporated 
into the Monroney label, it must be placed on a separate section in the 
Monroney label and must not be intermixed with that label information, 
except for vehicle descriptions as noted in 40 CFR 600.302-08(d)(1). If 
the fuel economy and environment label is not incorporated into the 
Monroney label, it must be located on a side window, and as close as 
possible to the Monroney label. If the window is not large enough to 
accommodate both the Monroney label and the fuel economy and 
environment label, the latter must be located on another window as 
close as physically possible to the Monroney label.
    (2) Size and legibility. The fuel economy and environment label 
must be readily visible from the exterior of the vehicle and presented 
in a legible and prominent fashion. The label must be rectangular in 
shape with a minimum height of 4.5 inches (114 mm) and a minimum length 
of 7.0 inches (177 mm) as specified in the appendix to this section.
    (3) Basic appearance. Fuel economy and environment labels must be 
printed on white or very light paper with the color specified in this 
section; any label markings for which a color is not specified here 
must be in black and white. The label can be divided into three 
separate fields outlined by a continuous border, as described in the 
appendix to this section. Manufacturers must make a good faith effort 
to conform to the formats illustrated in the appendix to this section. 
Label templates are available for download at http://www.nhtsa.gov/fuel-economy/.
    (4) Border. Create a continuous black border to outline the label 
and separate the three information fields. Include the following 
information in the upper and lower portions of the border:
    (i) Upper border, label name. (A) In the left portion of the upper 
border, the words ``EPA'' and ``DOT'' must be in boldface, capital 
letters that are light in color and left-justified, with a horizontal 
line in between them as shown in the appendix to this section.
    (B) Immediately to the right of the agency names, the heading 
``Fuel Economy and Environment'' must be in boldface letters that are 
light in color.
    (ii) Upper border, vehicle fuel type. In the right portion of the 
upper border, identify the vehicle's fuel type in black font on a blue-
colored field as follows:
    (A) For vehicles designed to operate on a single fuel, identify the 
appropriate fuel. For example, identify the vehicle with the words 
``Gasoline Vehicle,'' ``Diesel Vehicle,'' ``Compressed Natural Gas 
Vehicle,'' ``Hydrogen Fuel Cell Vehicle,'' etc. This includes hybrid 
electric vehicles that do not have plug-in capability. Include a logo 
corresponding to the fuel to the left of this designation as follows:
    (1) For gasoline, include a fuel pump logo.
    (2) For diesel fuel, include a fuel pump logo with a ``D'' 
inscribed in the base of the fuel pump.
    (3) For natural gas, include the established CNG logo.
    (4) For hydrogen fuel cells, include the expression 
``H2.''
    (B) Identify dual-fueled (``flexible-fueled'') vehicles with the 
words ``Flexible-Fuel Vehicle Gasoline-Ethanol (E85),'' ``Flexible-Fuel 
Vehicle Diesel-Natural Gas,'' etc. Include a fuel pump logo or a 
combination of logos to the left of this designation as appropriate. 
For example, for vehicles that operate on gasoline or ethanol, include 
a fuel pump logo and the designation ``E85,'' as shown in the appendix 
to this section.
    (C) Identify plug-in hybrid electric vehicles with the words 
``Plug-In Hybrid Vehicle Electricity-Gasoline'' or ``Plug-In Hybrid 
Vehicle Electricity-Diesel.'' Include a fuel pump logo to the lower 
left of this designation and an electric plug logo to the upper left of 
this designation.
    (D) Identify electric vehicles with the words ``Electric Vehicle.'' 
Include an electric plug logo to the left of this designation.
    (iii) Lower border, left side: (A) In the upper left portion of the 
lower border, include the statement ``Actual results will vary for many 
reasons, including driving conditions and how you drive and maintain 
your vehicle. The average new vehicle gets a MPG and costs $b to fuel 
over 5 years. Cost estimates are based on c miles per year at $d per 
gallon. MPGe is miles per gasoline gallon equivalent. Vehicle emissions 
are a significant cause of climate change and smog.'' For the value of 
a, insert the average new vehicle combined MPG value for that model 
year established by EPA. For the value of b, insert the estimated five 
year fuel cost value established by EPA for the average new vehicle in 
that model year. For the value of c, insert the annual mileage rate 
established by EPA. For the value of d, insert the estimated cost per 
gallon established by EPA for gasoline or diesel fuel, as appropriate. 
See paragraphs (f) through (j) below for alternate statements that 
apply for vehicles that use a fuel other than gasoline or diesel fuel.
    (B) In the lower left portion of the lower border, include the Web 
site reference, ``fueleconomy.gov,'' and include the following 
statement: ``Calculate personalized estimates and compare vehicles'' 
beneath it.
    (iv) Lower border, right side: Include a field in the right-most 
portion of the lower border to allow for accessing interactive 
information with mobile electronic devices as set forth in 40 CFR 
600.302-12(b)(6).
    (v) Lower border, center: Along the lower edge of the lower border, 
to the

[[Page 39579]]

left of the field described in paragraph (e)(4)(iv) of this section, 
include the logos for the Environmental Protection Agency, the 
Department of Transportation, and the Department of Energy as shown in 
the appendix to this section.
    (5) Fuel economy performance and fuel cost values. To the left side 
in the white field at the top of the label, include the following 
elements for vehicles that run on gasoline or diesel fuel with no plug-
in capability:
    (i) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (ii) The vehicle's combined fuel economy determined as set forth in 
40 CFR 600.210-12(c) in large font, with the words ``combined city/
hwy'' below the number in smaller font.
    (iii) A fuel pump logo to the left of the combined fuel economy 
value (for diesel fuel, include a fuel pump logo with a ``D'' inscribed 
in the base of the fuel pump).
    (iv) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (A) Include the word ``MPG'' to the upper right of the combined 
fuel economy value.
    (B) Include the value for the city and highway fuel economy 
determined as set forth in 40 CFR 600.210-12(a) and (b) to the right of 
the combined fuel economy value in smaller font, and below the word 
``MPG.'' Include the expression ``city'' in smaller font below the city 
fuel economy value, and the expression ``highway'' in smaller font 
below the highway fuel economy value.
    (v) Below the fuel economy performance values set forth in 
paragraphs (e)(5)(ii) and (iv) of this section, include the value for 
the fuel consumption rate required by EPA and determined as set forth 
in 40 CFR 600.302-12(c)(1).
    (vi) To the right of the word ``MPG'' described in paragraph 
(e)(5)(iv)(A) of this section, include the information about the range 
of fuel economy of comparable vehicles as required by EPA and set forth 
in 40 CFR 600.302-12(c)(2) and below that information, include the 
expression ``The best vehicle rates 99 MPGe.''
    (6) Comparative five-year fuel costs/savings. To the right side in 
the white field at the top of the label, include the information 
required by EPA at 40 CFR 600.302-12(c)(3).
    (7) Annual fuel cost value. In the field in the lower left portion 
of the label, include the information on annual fuel cost as required 
by EPA and set forth in 40 CFR 600.302-12(d).
    (8) Fuel economy and environment slider bar ratings. In the field 
in the lower right portion of the label,
    (i) Include the heading ``Fuel Economy & Greenhouse Gas Rating 
(tailpipe only)'' in the top left corner of the field.
    (ii) Include a slider bar in the left portion of the field as shown 
in the appendix to this section to characterize the vehicle's fuel 
economy and CO2 emission rating relative to the range of 
fuel economy and CO2 emission rates for all vehicles. 
Position a black box with a downward-pointing wedge above the slider 
bar positioned to show where that vehicle's fuel economy and 
CO2 emission rating falls relative to the total range. 
Include the vehicle's fuel economy and CO2 emission rating 
determined as set forth in 40 CFR 600.311-12(d) inside the box in white 
text. If the fuel economy and CO2 emission ratings are 
different, the black box with a downward-pointing wedge above the 
slider bar must contain the fuel economy rating, with a second upward-
pointing wedge below the slider bar containing the CO2 
emission rating. Include the number ``1'' in white text in the black 
border at the left end of the slider bar, and include the number ``10'' 
in white text in the black border at the right end of the slider bar, 
with the expression ``Best'' in black text under the slider bar 
directly below the ``10.'' Add color to the slider bar such that it is 
blue at the left end of the range, white at the right end of the range, 
and shaded continuously across the range.
    (iii) Include the heading ``Smog Rating (tailpipe only)'' in the 
top right corner of the field.
    (iv) Include a slider bar in the right portion of the field to 
characterize the vehicle's level of emission control for other air 
pollutants relative to that of all vehicles. Position a black box with 
a downward-pointing wedge above the slider bar positioned to show where 
that vehicle's emission rating falls relative to the total range. 
Include the vehicle's emission rating determined as set forth in 40 CFR 
600.311-12(g) inside the box in white text. Include the number ``1'' in 
white text in the black border at the left end of the slider bar, and 
include the number ``10'' in white text in the black border at the 
right end of the slider bar, with the expression ``Best'' in black text 
under the slider bar directly below the ``10.'' Add color to the slider 
bar such that it is blue at the left end of the range, white at the 
right end of the range, and shaded continuously across the range.
    (v) Below the slider bars described in paragraphs (e)(8)(ii) and 
(e)(8)(iv) to this section, include the statement, ``This vehicle emits 
e grams CO2 per mile. The best emits 0 grams per mile 
(tailpipe only). Producing and distributing fuel also creates 
emissions; learn more at fueleconomy.gov.'' For the value of e, insert 
the vehicle's specific tailpipe CO2 emission rating 
determined as set forth in 40 CFR 600.210-12(d).
    (9) Rounding. Round all numerical values identified in this section 
to the nearest whole number unless otherwise specified.
    (10) Other label information required by EPA. Manufacturers must 
include any additional labeling information required by EPA at 40 CFR 
600.302-12 on the fuel economy and environment label.
    (f) Required label information and format--flexible-fuel vehicles. 
(1) Fuel economy and environment labels for flexible-fuel vehicles must 
meet the specifications described in paragraph (e) of this section, 
with the exceptions and additional specifications described in this 
paragraph (f). This section describes how to label vehicles with 
gasoline engines. If the vehicle has a diesel engine, all the 
references to ``gas'' or ``gasoline'' in this section are understood to 
refer to ``diesel'' or ``diesel fuel,'' respectively.
    (2) For qualifying vehicles, include the following additional 
expression in the statement identified in paragraph (e)(iv)(3)(A) of 
this section as shown in the appendix to this section: ``This is a dual 
fueled automobile.''
    (3) Include the following elements instead of the information 
identified in paragraph (e)(5) of this section:
    (i) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (ii) The vehicle's combined fuel economy as set forth in 40 CFR 
600.210-12(c) in large font, with the words ``combined city/hwy'' below 
the number in smaller font.
    (iii) A fuel pump logo and other logos as specified in paragraph 
(e)(4)(ii)(A) of this section to the left of the combined fuel economy 
value.
    (iv) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (A) Include the word ``MPG'' to the upper right of the combined 
fuel economy value.
    (B) Include the value for the city and highway fuel economy 
determined as set forth in 40 CFR 600.210-12(a) and (b) to the right of 
the combined fuel economy value in smaller font, and below the word 
``MPG.'' Include the expression ``city'' in smaller font below the city 
fuel economy value, and the expression ``highway'' in smaller font 
below the highway fuel economy value.

[[Page 39580]]

    (v) Below the fuel economy performance value set forth in paragraph 
(f)(iii)(2) of this section, include the value for the fuel consumption 
rate required by EPA and determined as set forth in 40 CFR 600.302-
12(c)(1).
    (vi) To the right of the word ``MPG'' described in paragraph 
(e)(5)(iv)(A) of this section, include the information about the range 
of fuel economy of comparable vehicles as required by EPA and set forth 
in 40 CFR 600.302-12(c)(2), and below that information, include the 
expression ``The best vehicle rates 99 MPGe. Values are based on 
gasoline and do not reflect performance and ratings based on E85.'' 
Adjust this statement as appropriate for vehicles designed to operate 
on different fuels.
    (vii) Below the combined fuel economy value, the manufacturer may 
include information on the vehicle's driving range as shown in the 
appendix to this section, with the sub-heading ``Driving Range,'' and 
with range bars below this sub-heading as required by EPA and set forth 
in 40 CFR 600.303-12(b)(6).
    (g) Required label information and format--special requirements for 
hydrogen fuel cell vehicles. (1) Fuel economy and environment labels 
for hydrogen fuel cell vehicles must meet the specifications set forth 
in paragraph (e) of this section, with the exceptions and additional 
specifications described in this paragraph (g).
    (2) Include the following statement in the upper left portion of 
the lower border instead of the statement specified in paragraph 
(e)(4)(iii)(A) of this section: ``Actual results will vary for many 
reasons, including driving conditions and how you drive and maintain 
your vehicle. The average new vehicle gets a MPG and costs $b to fuel 
over 5 years. Cost estimates are based on c miles per year at $d per 
kilogram of hydrogen. MPGe is miles per gasoline gallon equivalent. 
Vehicle emissions are a significant cause of climate change and smog.'' 
For the value of a, insert the average new vehicle combined MPG value 
for that model year established by EPA. For the value of b, insert the 
estimated five year fuel cost value established by EPA for the average 
new vehicle in that model year. For the value of c, insert the annual 
mileage rate established by EPA. For the value of d, insert the 
estimated cost per kilogram established by EPA for hydrogen.
    (3) Include the following elements instead of the information 
identified above in paragraph (e)(5) of this section:
    (i) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (ii) The vehicle's combined fuel economy determined as set forth in 
40 CFR 600.210-12(c) in large font, with the words ``combined city/
hwy'' below the number in smaller font.
    (iii) The ``H2'' logo as specified in paragraph 
(e)(4)(ii)(A) of this section to the left of the combined fuel economy 
value.
    (iv) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (A) Include the word ``MPGe'' to the upper right of the combined 
fuel economy value.
    (B) Include the value for the city and highway fuel economy 
determined as set forth in 40 CFR 600.311-12(a) and (b) to the right of 
the combined fuel economy value in smaller font, and below the word 
``MPG.'' Include the expression ``city'' in smaller font below the city 
fuel economy value, and the expression ``highway'' in smaller font 
below the highway fuel economy value.
    (v) To the right of the fuel economy performance values set forth 
in paragraph (iv)(B) of this section, include the value for the fuel 
consumption rate required by EPA and determined as set forth in 40 CFR 
600.302-12(c)(1).
    (vi) To the right of the word ``MPGe'' described in paragraph 
(g)(3)(iv)(A) of this section, include the information about the range 
of fuel economy of comparable vehicles as required by EPA and set forth 
in 40 CFR 600.302-12(c)(2) and below that information, include the 
expression ``The best vehicle rates 99 MPGe.''
    (vii) Below the combined fuel economy value, include information on 
the vehicle's driving range as shown in the appendix to this section, 
as required by EPA and set forth in 40 CFR 600.304-12(b)(6)
    (h) Required label information and format--special requirements for 
compressed natural gas vehicles. (1) Fuel economy and environment 
labels for compressed natural gas vehicles must meet the specifications 
described in paragraph (e) of this section, with the exceptions and 
additional specifications described in this paragraph (h).
    (2) Include the following statement in the upper left portion of 
the lower border instead of the statement specified in paragraph 
(e)(4)(iii)(A) of this section: ``Actual results will vary for many 
reasons, including driving conditions and how you drive and maintain 
your vehicle. The average new vehicle gets a MPG and costs $b to fuel 
over 5 years. Cost estimates are based on c miles per year at $d per 
gasoline gallon equivalent. MPGe is miles per gasoline gallon 
equivalent. Vehicle emissions are a significant cause of climate change 
and smog.'' For the value of a, insert the average new vehicle combined 
MPG value for that model year established by EPA. For the value of b, 
insert the estimated five year fuel cost value established by EPA for 
the average new vehicle in that model year. For the value of c, insert 
the annual mileage rate established by EPA. For the value of d, insert 
the estimated cost per gasoline gallon equivalent established by EPA 
for natural gas.
    (3) Include the following elements instead of the information 
identified in paragraph (e)(5) of this section:
    (i) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (ii) The vehicle's combined fuel economy determined as set forth in 
40 CFR 600.210-12(c) in large font, with the words ``combined city/
hwy'' below the number in smaller font.
    (iii) The compressed natural gas logo as specified in paragraph 
(e)(4)(ii)(A) of this section to the left of the combined fuel economy 
value.
    (iv) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (A) Include the word ``MPGe'' to the upper right of the combined 
fuel economy value.
    (B) Include the value for the city and highway fuel economy 
determined as set forth in 40 CFR 600.311-12(a) and (b) to the right of 
the combined fuel economy value in smaller font, and below the word 
``MPGe.'' Include the expression ``city'' in smaller font below the 
city fuel economy value, and the expression ``highway'' in smaller font 
below the highway fuel economy value.
    (v) To the right of the fuel economy performance values described 
in paragraph (h)(3)(iv)(B) of this section, include the value for the 
fuel consumption rate required by EPA and determined as set forth in 40 
CFR 600.302-12(c)(1).
    (vi) To the right of the word ``MPGe'' described in paragraph 
(g)(3)(iv)(A) of this section, include the information about the range 
of fuel economy of comparable vehicles as required by EPA and set forth 
in 40 CFR 600.302-12(c)(2), and below that information, include the 
expression ``The best vehicle rates 99 MPGe.''
    (vii) Below the combined fuel economy value, include information on 
the vehicle's driving range as shown in the appendix to this section, 
as required by EPA and set forth in 40 CFR 600.306-12(b)(6).
    (i) Required label information and format--special requirements for 
plug-in hybrid electric vehicles. (1) Fuel

[[Page 39581]]

economy and environment labels for plug-in hybrid electric vehicles 
must meet the specifications described in paragraph (e) of this 
section, with the exceptions and additional specifications described in 
this paragraph (i). This paragraph (i) describes how to label vehicles 
equipped with gasoline engines. If a vehicle has a diesel engine, all 
the references to ``gas'' or ``gasoline'' in this section are 
understood to refer to ``diesel'' or ``diesel fuel,'' respectively.
    (2) Include the following statement in the upper left portion of 
the lower border instead of the statement specified in paragraph 
(e)(4)(iii)(A) of this section: ``Actual results will vary for many 
reasons, including driving conditions and how you drive and maintain 
your vehicle. The average new vehicle gets a MPG and costs $b to fuel 
over 5 years. Cost estimates are based on c miles per year at $d per 
gallon and $e per kW-hr. This is a dual fueled automobile. MPGe is 
miles per gasoline gallon equivalent. Vehicle emissions are a 
significant cause of climate change and smog.'' For the value of a, 
insert the average new vehicle combined MPG value for that model year 
established by EPA. For the value of b, insert the estimated five year 
fuel cost value established by EPA for the average new vehicle in that 
model year. For the value of c, insert the annual mileage rate 
established by EPA. For the value of d, insert the estimated cost per 
gallon established by EPA for gasoline. For the value of e, insert the 
estimated cost per kW-hr of electricity established by EPA.
    (3) Include the following elements instead of the information 
identified above in paragraph (e)(5):
    (i) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (ii) An outlined box below the heading with the following 
information:
    (A) The sub-heading ``Electricity'' if the vehicle's engine starts 
only after the battery is fully discharged, or the sub-heading 
``Electricity + Gasoline'' if the vehicle uses combined power from the 
battery and the engine before the battery is fully discharged.
    (B) The expression ``Charge Time: x hours (240 V),'' as required by 
EPA and as set forth in 40 CFR 600.308-12(b)(2)(ii).
    (C) The vehicle's combined fuel economy determined as set forth in 
40 CFR 600.210-12(c) in large font, with the words ``combined city/
hwy'' below the number in smaller font.
    (D) An electric plug logo as specified in paragraph (e)(4)(ii)(A) 
of this section to the left of the combined fuel economy value. For 
vehicles that use combined power from the battery and the engine before 
the battery is fully discharged, also include the fuel pump logo as 
shown in the appendix to this section.
    (E) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (1) Include the word ``MPGe'' to the upper right of the combined 
fuel economy value.
    (2) If the vehicle's engine starts only after the battery is fully 
discharged, identify the vehicle's electricity consumption rate as 
required by EPA and determined as set forth in set forth in 40 CFR 
600.308-12(b)(2)(v).
    (3) If the vehicle uses combined power from the battery and the 
engine before the battery is fully discharged, identify the vehicle's 
gasoline and electricity consumption rates as required by EPA and 
determined as set forth in 40 CFR 600.308-12(b)(2)(v).
    (iii) A second outlined box to the right of the box described in 
paragraph (i)(3)(ii) of this section with the following information:
    (A) The sub-heading ``Gasoline Only.''
    (B) The vehicle's combined fuel economy determined as set forth in 
40 CFR 600.210-12(c) in large font, with the words ``combined city/
hwy'' below the number in smaller font.
    (C) A fuel pump logo to the left of the combined fuel economy 
value.
    (D) The units identifier and consumption values to the right of the 
combined fuel economy value as follows:
    (1) Include the word ``MPGe'' to the upper right of the combined 
fuel economy value.
    (2) Identify the vehicle's gasoline consumption rate required by 
EPA and determined as set forth in 40 CFR 600.308-12(b)(3).
    (iv) Below the boxes specified in paragraphs (i)(3)(ii) and (iii) 
of this section, include information on the vehicle's driving range as 
shown in the appendix to this section, as required by EPA and as set 
forth in 40 CFR 600.308-12(b)(4).
    (v) To the right of the heading ``Fuel Economy'' described in 
paragraph (i)(3)(i) of this section, include the information about the 
range of fuel economy of comparable vehicles as required by EPA and set 
forth in 40 CFR 600.302-12(c)(2) and to the right of that information, 
include the expression ``The best vehicle rates 99 MPGe.''
    (4) Include the following statement instead of the statement 
identified in paragraph (e)(8)(v) of this section: ``This vehicle emits 
f grams CO2 per mile. The best emits 0 grams per mile 
(tailpipe only). Producing and distributing fuel & electricity also 
creates emissions; learn more at fueleconomy.gov.'' For the value of f, 
insert the vehicle's specific tailpipe CO2 emission rating 
determined as set forth in 40 CFR 600.210-12(d).
    (j) Required label information and format--special requirements for 
electric vehicles. (1) Fuel economy and environment labels for electric 
vehicles must meet the specifications described in paragraph (e) of 
this section, with the exceptions and additional specifications 
described in this section.
    (2) Include the following statement in the upper left portion of 
the lower border instead of the statement specified above in paragraph 
(e)(4)(iii)(A) of this section: ``Actual results will vary for many 
reasons, including driving conditions and how you drive and maintain 
your vehicle. The average new vehicle gets a MPG and costs $b to fuel 
over 5 years. Cost estimates are based on c miles per year at $e per 
kW-hr. MPGe is miles per gasoline gallon equivalent. Vehicle emissions 
are a significant cause of climate change and smog.'' For the value of 
a, insert the average new vehicle combined MPG value for that model 
year established by EPA. For the value of b, insert the estimated five 
year fuel cost value established by EPA for the average new vehicle in 
that model year. For the value of c, insert the annual mileage rate 
established by EPA. For the value of e, insert the estimated cost per 
kW-hr of electricity established by EPA.
    (3) Include the following elements instead of the information 
identified in paragraph (e)(5) of this section:
    (i) The heading ``Fuel Economy'' near the top left corner of the 
field.
    (ii) The vehicle's combined fuel economy determined as set forth in 
40 CFR 600.210-12(c) in large font, with the words ``combined city/
hwy'' below the number in smaller font.
    (iii) The electric plug logo as specified in paragraph 
(e)(4)(ii)(A) of this section to the left of the combined fuel economy 
value.
    (iv) The units identifier and specific fuel economy values to the 
right of the combined fuel economy value as follows:
    (A) Include the word ``MPGe'' to the upper right of the combined 
fuel economy value.
    (B) Include the value for the city and highway fuel economy 
determined as set forth in 40 CFR 600.311-12(a) and (b) to the right of 
the combined fuel economy value in smaller font, and below the word 
``MPGe.'' Include the expression ``city'' in smaller font below the 
city fuel economy value, and the expression ``highway'' in smaller font 
below the highway fuel economy value.
    (v) To the right of the fuel economy performance values described 
in

[[Page 39582]]

paragraph (iv)(B) of this section, include the value for the fuel 
consumption rate required by EPA and determined as set forth in 40 CFR 
600.310-12(b)(5).
    (vi) Below the combined fuel economy value, include information on 
the vehicle's driving range as shown in the appendix to this section, 
as required by EPA and as set forth in 40 CFR 600.310-12(b)(6).
    (vii) Below the driving range information and left-justified, 
include information on the vehicle's charge time, as required by EPA 
and as set forth in 40 CFR 600.310-12(b)(7).
    (4) Include the following statement instead of the statement 
identified in paragraph (e)(8)(v) of this section: ``This vehicle emits 
0 grams CO2 per mile. The best emits 0 grams per mile 
(tailpipe only). Does not include emissions from generating 
electricity; learn more at fueleconomy.gov.''

Appendix to Sec.  575.401
[GRAPHIC] [TIFF OMITTED] TR06JY11.058

[[Page 39583]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.059

[GRAPHIC] [TIFF OMITTED] TR06JY11.060

[[Page 39584]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.061

[GRAPHIC] [TIFF OMITTED] TR06JY11.062

[[Page 39585]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.063

[GRAPHIC] [TIFF OMITTED] TR06JY11.064

[[Page 39586]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.065

[GRAPHIC] [TIFF OMITTED] TR06JY11.066

[[Page 39587]]

[GRAPHIC] [TIFF OMITTED] TR06JY11.067

BILLING CODE 6560-50-C

    Dated: May 25, 2011.
Ray LaHood,
Secretary, Department of Transportation.
    Dated: May 25, 2011.
Lisa P. Jackson,
Administrator, Environmental Protection Agency.
[FR Doc. 2011-14291 Filed 7-5-11; 8:45 am]
BILLING CODE 6560-50-P