Document ID: EPA-HQ-OAR-2019-0588-0003
Agency: epa
Document Type: Notice
Title: Alternative Method for Calculating Off-Cycle Credits Under the Light-Duty Vehicle Greenhouse Gas Emissions Program: Application: Nissan North America, Inc.
Posted Date: 2021-02-08T05:00Z

[Federal Register Volume 86, Number 24 (Monday, February 8, 2021)]
[Notices]
[Pages 8631-8633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02517]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ- OAR-2019-0588; FRL-10016-40-OAR]

Alternative Method for Calculating Off-Cycle Credits Under the 
Light-Duty Vehicle Greenhouse Gas Emissions Program: Applications From 
Nissan North America, Inc.

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: EPA is requesting comment on applications from Nissan North 
America, Inc., (Nissan) for off-cycle carbon dioxide (CO2) 
credits under

[[Page 8632]]

EPA's light-duty vehicle greenhouse gas emissions standards. ``Off-
cycle'' emission reductions can be achieved by employing technologies 
that result in real-world benefits, but where that benefit is not 
adequately or entirely captured on the test procedures used by 
manufacturers to demonstrate compliance with emission standards. EPA's 
light-duty vehicle greenhouse gas program acknowledges these benefits 
by giving automobile manufacturers several options for generating 
``off-cycle'' carbon dioxide (CO2) credits. Under the 
regulations, a manufacturer may apply for CO2 credits for 
technologies that result in off-cycle benefits. In these cases, a 
manufacturer must provide EPA with a proposed methodology for 
determining the real-world off-cycle benefit. Nissan has submitted 
applications that describe methodologies for determining off-cycle 
credits from low-power-consumption compressor clutch technology. The 
application for compressor clutch technology includes test data to 
establish the 0.3 grams CO2/mile credit value compared to the industry 
standard clutch with similar performance characteristics (circa 2012). 
Nissan's application is limited to 2017 and later model year vehicles. 
Pursuant to applicable regulations, EPA is making descriptions of the 
manufacturers' off-cycle credit calculation methodologies available for 
public comment.

DATES: Comments must be received on or before March 10, 2021.

ADDRESSES: Submit your comments referencing Docket ID No. EPA-HQ- OAR-
2019-0588, to the Federal eRulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or withdrawn. The 
EPA may publish any comment received to its public docket. Do not 
submit electronically any information you consider to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Multimedia submissions (audio, video, etc.) must 
be accompanied by a written comment. The written comment is considered 
the official comment and should include discussion of all points you 
wish to make. The EPA will generally not consider comments or comment 
contents located outside of the primary submission (i.e., on the web, 
cloud, or other file sharing system). For additional submission 
methods, the full EPA public comment policy, information about CBI or 
multimedia submissions, and general guidance on making effective 
comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: David Wright, Environmental Protection 
Specialist, Office of Transportation and Air Quality, Compliance 
Division, U.S. Environmental Protection Agency, 2000 Traverwood Drive, 
Ann Arbor, MI 48105. Telephone: (734) 214-4467. Fax: (734) 214-4869. 
Email address: wright.davida@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    EPA's light-duty vehicle greenhouse gas (GHG) program provides 
three pathways by which a manufacturer may accrue off-cycle carbon 
dioxide (CO2) credits for those technologies that achieve 
CO2 reductions in the real world but where those reductions 
are not adequately or entirely captured on the test used to determine 
compliance with the CO2 standards, and which are not 
otherwise reflected in the standards' stringency. The first pathway is 
a predetermined list of credit values for specific off-cycle 
technologies that may be used beginning in model year 2014.\1\ This 
pathway allows manufacturers to use conservative credit values 
established by EPA for a wide range of technologies, with minimal data 
submittal or testing requirements. In cases where additional laboratory 
testing can demonstrate emission benefits, a second pathway allows 
manufacturers to use a broader array of emission tests (known as ``5-
cycle'' testing because the methodology uses five different testing 
procedures) to demonstrate and justify off-cycle CO2 
credits.\2\ The additional emission tests allow emission benefits to be 
demonstrated over some elements of real-world driving not captured by 
the GHG compliance tests, including high speeds, hard accelerations, 
and cold temperatures. Credits determined according to either of these 
methodologies do not undergo additional public review. The third and 
last pathway allows manufacturers to seek EPA approval to use an 
alternative methodology for determining the off-cycle CO2 
credits.\3\ This option is only available if the benefit of the 
technology cannot be adequately demonstrated using the 5-cycle 
methodology. Manufacturers may also use this option for model years 
prior to 2014 to demonstrate off-cycle CO2 reductions for 
technologies that are on the predetermined list, or to demonstrate 
reductions that exceed those available via use of the predetermined 
list.
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    \1\ See 40 CFR 86.1869-12(b).
    \2\ See 40 CFR 86.1869-12(c).
    \3\ See 40 CFR 86.1869-12(d).
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    Under the regulations, a manufacturer seeking to demonstrate off-
cycle credits with an alternative methodology (i.e., under the third 
pathway described above) must describe a methodology that meets the 
following criteria:
     Use modeling, on-road testing, on-road data collection, or 
other approved analytical or engineering methods;
     Be robust, verifiable, and capable of demonstrating the 
real-world emissions benefit with strong statistical significance;
     Result in a demonstration of baseline and controlled 
emissions over a wide range of driving conditions and number of 
vehicles such that issues of data uncertainty are minimized;
     Result in data on a model type basis unless the 
manufacturer demonstrates that another basis is appropriate and 
adequate.
    Further, the regulations specify the following requirements 
regarding an application for off-cycle CO2 credits:
     A manufacturer requesting off-cycle credits must develop a 
methodology for demonstrating and determining the benefit of the off-
cycle technology, and carry out any necessary testing and analysis 
required to support that methodology.
     A manufacturer requesting off-cycle credits must conduct 
testing and/or prepare engineering analyses that demonstrate the in-use 
durability of the technology for the full useful life of the vehicle.
     The application must contain a detailed description of the 
off-cycle technology and how it functions to reduce CO2 
emissions under conditions not represented on the compliance tests.
     The application must contain a list of the vehicle 
model(s) which will be equipped with the technology.
     The application must contain a detailed description of the 
test vehicles selected and an engineering analysis that supports the 
selection of those vehicles for testing.
     The application must contain all testing and/or simulation 
data required under the regulations, plus any other data the 
manufacturer has considered in the analysis.
    Finally, the alternative methodology must be approved by EPA prior 
to the manufacturer using it to generate credits. As part of the review 
process defined by regulation, the alternative methodology submitted to 
EPA for consideration must be made available for public comment.\4\ EPA 
will consider public comments as part of its final

[[Page 8633]]

decision to approve or deny the request for off-cycle credits.
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    \4\ See 40 CFR 86.1869-12(d)(2).
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II. Off-Cycle Credit Applications

    Using the alternative methodology approach discussed above, Nissan 
is applying for credits for model years 2017 and later. Nissan has 
applied for off-cycle credits using the alternative demonstration 
methodology pathway for the low-power-consumption clutch technology. 
The application covers 2017 model year and later vehicles. The 
methodologies described by Nissan are generally consistent with those 
used by other manufacturers to determine similar credit values. The 
requested credit value is 0.3 grams CO2/mile.

III. EPA Decision Process

    EPA has reviewed the applications for completeness and is now 
making the applications available for public review and comment as 
required by the regulations. The off-cycle credit applications 
submitted by Nissan (with confidential business information redacted) 
have been placed in the public docket (see ADDRESSES section above) and 
on EPA's website at https://www.epa.gov/ve-certification/compliance-information-light-duty-greenhouse-gas-ghg-standards. EPA is providing a 
30-day comment period on the applications for off-cycle credits 
described in this notice, as specified by the regulations. The 
manufacturers may submit a written rebuttal of comments for EPA's 
consideration, or may revise an application in response to comments. 
After reviewing any public comments and any rebuttal of comments 
submitted by manufacturers, EPA will make a final decision regarding 
the credit requests. An EPA decision regarding these off-cycle credit 
requests will only apply to the vehicles and model years specified in 
the applications submitted by each manufacturer. EPA will make its 
decision available to the public by placing a decision document (or 
multiple decision documents) in the docket and on EPA's website at 
https://www.epa.gov/ve-certification/compliance-information-light-duty-greenhouse-gas-ghg-standards. An EPA decision to approve off-cycle 
credit requests would only apply to the manufacturers, model years, 
vehicles, and technologies specified in the credit applications. Such 
decision would not apply to other vehicles or vehicles from other 
manufacturers. While the broad methodologies used by these 
manufacturers could potentially be used for other vehicles and by other 
manufacturers, the vehicle specific data needed to demonstrate the off-
cycle emissions reductions would likely be different. In such cases, a 
new application would be required, including an opportunity for public 
comment.

    Dated: November 10, 2020.
Byron Bunker,
Director, Compliance Division, Office of Transportation and Air 
Quality, Office of Air and Radiation.
[FR Doc. 2021-02517 Filed 2-5-21; 8:45 am]
BILLING CODE 6560-50-P