Document ID: EPA-HQ-OAR-2010-0162-3467
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2011-08-29T04:00Z

From:
david.kayes@daimler.com
 To:
Byron Bunker/AA/USEPA/US@EPA, Coralie.Cooper@dot.gov
 Cc:
brian.burton@daimler.com, donald.keski-hynnila@daimler.com
 Date:
04/20/2011 06:13 PM
 Subject:
Further suggestions re. GHG / FE NPRM:  resolve differences in EPA's and NHTSA's reporting dates and report contents

Byron, Coralie:

Yesterday, in preparing for a presentation about the expected certification paperwork and credit reporting of the GHG / FE rules, I found many differences in the cert apps and paperwork that the agencies propose.  First, the reports require that different types of information be submitted to the agencies at different times through a paperwork-intensive and burdensome set of reports.  Second, the regulations use different language to describe these reports, leading to the possibility of different interpretations, in turn allowing the reporting requirements to diverge and the burden to increase still further.  Such differences in reports and regulatory requirements are counter to the Paperwork Reduction Act and EO 12866.  Although I have raised some of these concerns with the agencies already, I do have two additional recommendations (below).

Here are the reporting requirements, summarizing and excerpting the NPRM:

PRECERTIFICATION OR CERT APPLICATION

Certification application for EPA, 40 CFR §1037.725

(1) A statement that, to the best of your belief, you will not have a negative balance of emission credits for any averaging set when all emission credits are calculated...
(2) Detailed calculations of projected emission credits (positive or negative) based on projected U.S.-directed production volumes.

Pre-certification report for NHTSA, 49 CFR §535.8

For each regulatory subcategory of vocational trucks and truck tractors identify:
(A) The vehicle-family and subfamily designations selected in accordance with 40 CFR part 1037, subpart C;
(B) The fuel consumption standards that would otherwise apply to each vehicle family;
(C) The vehicle family fuel consumption FELs (gallons per 1,000 ton-mile);
(D) The projected final U.S.-directed production volumes for the model year as a total for the subcategory and for each vehicle family;
(E) The useful life value for each vehicle family; and
(F) The calculated projected final surplus or shortfall fuel consumption...

For vehicles in each vehicle family belonging to the vocational vehicle regulatory subcategories identify:
(A) The FEL for each family and the fuel consumption performance for each vehicle in the family.
(B) Intended commercial use.
(C) Gross Vehicle Weight Rating.
(D) Rolling resistance coefficient for the tires.
(E) Any aerodynamic features.
(F) Any weight reduction features.
(G) Any drivetrain (i.e., axles, accessories, and transmission) improvements that reduce emissions and fuel consumption.
(H) Any idle reduction technologies.
(I) Any hybrid powertrains including hydraulic, electric, and plug-in electric.
(J) The model types and projected final production of all alternate and dedicated fueled vehicles.

For vehicles in each vehicle family belonging to the truck tractor regulatory subcategories identify:
(A) The FEL for each family and the fuel consumption performance for each vehicle in the family.
(B) Aerodynamic drag coefficient (Cd).
(C) Steer tire rolling resistance (kg/metric ton).
(D) Drive tire rolling resistance (kg/metric ton).
(E) Weight reduction (lbs).
(F) Extended idle reduction (g/tonmile).
(G) Vehicle speed limiter.

END OF YEAR REPORTS

End of year report #1 for EPA, 40 CFR §1037.250

Due date:  45 days after the end of the model year

Elements:  

Volumes by vehicle configuration
Transmission by vehicle configuration
Axle ratio by vehicle configuration
Engine by vehicle configuration
Subfamily identifiers (meaning Cd, Crr, idle timer, weight reduction, and speed limiter) by vehicle configuration

(So, in reality, this will have to be a vehicle-by-vehicle report of transmission, axle ratio, engine, and all subfamily identifiers.)

End of year report #2 for EPA, 40 CFR §1037.730

Due date:  90 days after the end of the model year

Elements:  By family (really, by vehicle configuration), report the following.

(1) Vehicle-family and subfamily designations.
(2) The emission standards that would otherwise apply to the vehicle family.
(3) The FEL for each pollutant. If you change the FEL after the start of production, identify the date that you started using the new FEL and/or give the vehicle identification number for the first vehicle covered by the new FEL. In this case, identify each applicable FEL and calculate the positive or negative emission credits as specified in § 1037.225.
(4) The projected and actual U.S.-directed production volumes for the model year. If you changed an FEL during the model year, identify the actual production volume associated with each FEL. 
(5) Useful life.
(6) Calculated positive or negative emission credits for the whole vehicle family. Identify any emission credits that you traded, as described in paragraph (d)(1) of this section. 
(7) If you have a negative credit balance for the averaging set in the given model year, specify whether the vehicle family (or certain subfamilies with the vehicle family) have a credit

Plus credit banking or trading information.

End of year report #3 for EPA ("final report"), 40 CFR §1037.730

Due date:  270 days after the end of the model year

Elements:  same as report #2.

End of year report #1 for NHTSA, 49 CFR §535.8

Due date:  "within 90 days after the end of the given model year and no later than April 1 of the next calendar year."  Really this is 90 days after the end of the model year.  For example, in the case of MY 2014, the 90 day date would be early May 2014, far before April 1, 2015.  Why NHTSA introduces different language for the same result is unclear to me, as it can only make the agencies' due dates diverge.  NHTSA should adopt EPA's due date language.

Elements:  

End of year reports and final reports sent to EPA plus the following:

(1) Report and provide a description of the various credit flexibility options that were used to comply with the standards and, if necessary, include the amount of credits the manufacturer acquired from innovative or advanced technologies...

(2) Report the methodology which the manufacturer used to comply with N2O and CH4 emission standards.

This report can be waived if EPA notifies NHTSA.  Such waiver should be the standard procedure.

End of year report #2 for NHTSA ("final report"), 49 CFR §535.8

Due date:  270 days after the end of the model year or October 1, but again this will be 270 days.

Elements:  same as report #1.

Plus there are the exempt vehicle reports...

In other words, the agencies propose two different pre-model year reports and five different end-of-year reports submitted at various different times, reporting similar but not identical information.  I recommend you take into account the conflict between these reporting requirements and the Paperwork Reduction Act requirements for agencies to (1) "reduce information collection burdens on the public," (2) certify that the reports you require of us are not "unnecessarily duplicative of information otherwise reasonably accessible to the agency," and (3) "reduce[ ] to the extent practicable and appropriate the burden on persons who shall provide information to or for [each] agency."  44 U.S.C. §3506.  Moreover, I recommend you take into account (4) the principles of EO 12866 including that each agency "avoid regulations that are inconsistent ... or duplicative with its other regulations or those of other Federal agencies" and (5) the requirement that each agency assess the cost of parties in complying with regulations and explain to the OMB why the agencies' proposed regulation is "preferable to ... potential alternatives" such as the one I have identified, a joint reporting program.  EO 12866 (reaffirmed in January 2011).

Daimler already commented to the agencies that the NPRM's estimate of reporting burden was far short of the actual burden, probably by a factor of about 1/10.  And we already commented that we think the agencies should have the same regulations using, where possible, exactly the same language (for example, in the context of the definitions in 40 CFR §1037.801 and 49 CFR §535.4).  But I am not sure that we have adequately made clear to the agencies that we recommend that the agencies have (firstly) one set of reports submitted jointly to the two agencies and (secondly) exactly the same regulatory language describing those reports.  Unless there is a reason that one agency's regulatory language will not suffice for the other, the one's reg should copy the other's reg word-for-word or should merely say (for example) "Submit to NHTSA the reports required in 40 CFR §1037.xxx on the same day that those reports are due at the EPA."  In other words, EPA and NHTSA should do as was done in the Customs regulations at 19 CFR §12.73, where DHS simply referred to EPA regulations.

Regards,
Dave
-------------------------
David Kayes
Compliance and Regulatory Affairs --- Environmental Compliance
Daimler Trucks
(503) 745-9162 Office
(503) 265-9838 Mobile
David.Kayes@Daimler.com

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