E.O. 11990 and requires that transportation projects ``located in or
having an impact on wetlands'' should be conducted to assure protection
of the Nation's wetlands. If a project does have a significant impact
on wetlands, an EIS must be prepared.
    NHTSA is not undertaking or providing assistance for new
construction located in wetlands. NHTSA therefore concludes that these
Orders do not apply to this NPRM. NHTSA has, however, conducted a
review of the alternatives on potentially affected resources, including
wetlands, in its Draft EIS.
9. Migratory Bird Treaty Act (MBTA), Bald and Golden Eagle Protection
Act (BGEPA), Executive Order 13186
    The MBTA (16 U.S.C. 703-712) provides for the protection of certain
migratory birds by making it illegal for anyone to ``pursue, hunt,
take, capture, kill, attempt to take, capture, or kill, possess, offer
for sale, sell, offer to barter, barter, offer to purchase, purchase,
deliver for shipment, ship, export, import, cause to be shipped,
exported, or imported, deliver for transportation, transport or cause
to be transported, carry or cause to be carried, or receive for
shipment, transportation, carriage, or export'' any migratory bird
covered under the statute.\699\
---------------------------------------------------------------------------

    \699\ 16 U.S.C. 703(a).
---------------------------------------------------------------------------

    The BGEPA (16 U.S.C. 668-668d) makes it illegal to ``take, possess,
sell, purchase, barter, offer to sell, purchase or barter, transport,
export or import'' any bald or golden eagles.\700\ E.O. 13186,
``Responsibilities of Federal Agencies to Protect Migratory Birds,''
helps to further the purposes of the MBTA by requiring a Federal agency
to develop an MOU with FWS when it is taking an action that has (or is
likely to have) a measurable negative impact on migratory bird
populations.
---------------------------------------------------------------------------

    \700\ 16 U.S.C. 668(a).
---------------------------------------------------------------------------

    NHTSA concludes that the MBTA, BGEPA, and E.O. 13186 do not apply
to this NPRM because there is no disturbance, take, measurable negative
impact, or other covered activity involving migratory birds or bald or
golden eagles involved in this rulemaking.
10. Department of Transportation Act (Section 4(f))
    Section 4(f) of the Department of Transportation Act of 1966 (49
U.S.C. 303), as amended, is designed to preserve publicly owned park
and recreation lands, waterfowl and wildlife refuges, and historic
sites. Specifically, section 4(f) provides that DOT agencies cannot
approve a transportation program or project that requires the use of
any publicly owned land from a public park, recreation area, or
wildlife or waterfowl refuge of national, State, or local significance,
unless a determination is made that:
    (1) There is no feasible and prudent alternative to the use of
land, and
    (2) The program or project includes all possible planning to
minimize harm to the property resulting from the use.
    These requirements may be satisfied if the transportation use of a
section 4(f)

property results in a de minimis impact on the area.
    NHTSA concludes that section 4(f) does not apply to this NPRM
because this rulemaking is not an approval of a transportation program
nor project that requires the use of any publicly owned land.
11. Department of Transportation Act (Section 4(f))
    E.O. 12898, ``Federal Actions to Address EJ in Minority Populations
and Low-Income Populations'' (Feb. 16, 1994), directs Federal agencies
to promote nondiscrimination in federal programs substantially
affecting human health and the environment, and provide minority and
low-income communities access to public information on, and an
opportunity for public participation in, matters relating to human
health or the environment. E.O. 12898 also directs agencies to identify
and consider any disproportionately high and adverse human health or
environmental effects that their actions might have on minority and
low-income communities and provide opportunities for community input in
the NEPA process. CEQ has provided agencies with general guidance on
how to meet the requirements of the E.O. as it relates to NEPA. E.O.
14096, ``Revitalizing Our Nation's Commitment to Environmental Justice
for All,'' (April 21, 2023), builds on and supplements E.O. 12898, and
further directs Federal agencies to prioritize EJ initiatives in their
core missions.
    Additionally, the 2021 DOT Order 5610.2C, ``U.S. Department of
Transportation Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations'' (May 16, 2021), describes the
process for DOT agencies to incorporate EJ principles in programs,
policies, and activities. The DOT's EJ Strategy specifies that EJ and
fair treatment of all people means that no population be forced to bear
a disproportionate burden due to transportation decisions, programs,
and policies. It also defines the terms minority and low-income in the
context of DOT's EJ analyses. Minority is defined as a person who is
Black, Hispanic or Latino, Asian American, American Indian or Alaskan
Native, or Native Hawaiian or other Pacific Islander. Low-income is
defined as a person whose household income is at or below the
Department of Health and Human Services poverty guidelines. Low-income
and minority populations may live in geographic proximity or be
geographically dispersed/transient. In 2021, DOT reviewed and updated
its EJ strategy to ensure that it continues to reflect its commitment
to EJ principles and integrate those principles into DOT programs,
policies, and activities.
    Section VI and the Draft EIS discuss NHTSA's consideration of EJ
issues associated with this proposal.
12. Executive Order 13045
    This action is subject to E.O. 13045 (62 FR 19885, Apr. 23, 1997)
because it is an economically significant regulatory action as defined
by E.O. 12866, and NHTSA has reason to believe that the environmental
health and safety risks related to this action, although small, may
have a disproportionate effect on children. Specifically, children are
more vulnerable to adverse health effects related to mobile source
emissions, as well as to the potential long-term impacts of climate
change. Pursuant to E.O. 13045, NHTSA must prepare an evaluation of the
environmental health or safety effects of the planned action on
children and an explanation of why the planned action is preferable to
other potentially effective and reasonably feasible alternatives
considered by NHTSA. Further, this analysis may be included as part of
any other required analysis.
    All of the action alternatives would reduce CO2
emissions relative to the baseline and thus have positive effects on
mitigating global climate change, and thus environmental and health
effects associated with climate change. While environmental and health
effects associated with criteria pollutant and toxic air pollutant
emissions vary over time and across alternatives, negative effects,
when estimated, are extremely small. This preamble and the Draft EIS
discuss air quality, climate change, and their related environmental
and health effects. In addition, Section V of this preamble explains
why NHTSA believes that the proposed standards are preferable to other
alternatives considered. Together, this preamble and Draft EIS satisfy
NHTSA's responsibilities under E.O. 13045.
E. Regulatory Flexibility Act
    Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.,
as amended by the Small Business Regulatory Enforcement Fairness Act
(SBREFA) of 1996), whenever an agency is required to publish an NPRM or
final rule, it must prepare and make available for public comment a
regulatory flexibility analysis that describes the effect of the rule
on small entities (i.e., small businesses, small organizations, and
small governmental jurisdictions). No regulatory flexibility analysis
is required if the head of an agency certifies the rule will not have a
significant economic impact on a substantial number of small entities.
SBREFA amended the Regulatory Flexibility Act to require Federal
agencies to provide a statement of the factual basis for certifying
that a rule will not have a significant economic impact on a
substantial number of small entities.
    NHTSA has considered the impacts of this proposed rule under the
Regulatory Flexibility Act and the head of NHTSA certifies that this
proposed rule will not have a significant economic impact on a
substantial number of small entities. The following is NHTSA's
statement providing the factual basis for this certification pursuant
to 5 U.S.C. 605(b).
    Small businesses are defined based on the North American Industry
Classification System (NAICS) code.\701\ One of the criteria for
determining size is the number of employees in the firm. For
establishments primarily engaged in manufacturing or assembling
automobiles, including HDPUVs, the firm must have less than 1,500
employees to be classified as a small business. This rulemaking would
affect motor vehicle manufacturers. As shown in Table VII-1, NHTSA has
identified fourteen small manufacturers that produce passenger cars,
light trucks, SUVs, HD pickup trucks, and vans of electric, hybrid, and
ICEs. NHTSA acknowledges that some very new manufacturers may
potentially not be listed. However, those new manufacturers tend to
have transportation products that are not part of the LD and HDPUV
vehicle fleet and have yet to start production of relevant vehicles.
Moreover, NHTSA does not believe that there are a ``substantial
number'' of these companies.\702\
---------------------------------------------------------------------------

    \701\ Classified in NAICS under Subsector 336--Transportation
Equipment Manufacturing for Automobile and Light Duty Motor Vehicle
Manufacturing (336110) and Heavy Duty Truck Manufacturing (336120).
Available at: https://www.sba.gov/document/support-table-size-standards. (Accessed: May 31, 2023).
    \702\ 5 U.S.C. 605(b).

                                    Table VII-1--Small Domestic Manufacturers
----------------------------------------------------------------------------------------------------------------
                                                                                Estimated annual
                        Manufacturers                            Founded     Employees \703\    Production \704\
----------------------------------------------------------------------------------------------------------------
BXR Motors...................................................         2007               < 20              < 100
Canoo (HDPUV)................................................         2018                812                  0
Falcon Motorsports...........................................         2009               < 10              < 100
Faraday Future (HDPUV).......................................         2014                600                  0
Fisker (HDPUV)...............................................         2016                455              < 500
Lordstown (HDPUV)............................................         2018                260              < 100
Lucra Cars...................................................         2005               < 10              < 100
Lyons Motor Car..............................................         2012                 12              < 100
Panoz........................................................         1988               < 50              < 100
Rezvani Motors...............................................         2014                 10              < 100
Rossion Automotive...........................................         2007               < 20              < 100
Saleen.......................................................         1984                 81              < 100
Shelby American..............................................         1962              < 200              < 100
Workhorse Group (HDPUV)......................................         2007                331              < 100
----------------------------------------------------------------------------------------------------------------

    NHTSA believes that the proposed rulemaking would not have a
significant economic impact on small vehicle manufacturers, because
under 49 CFR part 525 passenger car manufacturers building less than
10,000 vehicles per year can petition NHTSA to have alternative
standards determined for them. Listed manufacturers producing ICE
vehicles do not currently meet the standard and must already petition
NHTSA for relief. If the standard is raised, it has no meaningful
impact on these manufacturers--they still must go through the same
process and petition for relief. Given there already is a mechanism for
relieving burden on small businesses, a regulatory flexibility analysis
was not prepared.
---------------------------------------------------------------------------

    \703\ Estimated number of employees as of December 2022, source:
linkedin.com, zoominfo.com, rocketreach.co, and datanyze.com.
    \704\ Rough estimate of LDV production for MY 2022.
---------------------------------------------------------------------------

    All HDPUV manufacturers listed in Table VII-1 build BEVs which far
exceed the fuel economy standards. NHTSA has researched the HDPUV
manufacturing industry and found no small manufacturers of ICE vehicles
that would be impacted by the proposed rulemaking. NHTSA welcomes
comment on any information regarding small business HDPUV manufacturers
that have may been omitted.
    Further, small manufacturers of EVs would not face a significant
economic impact. The method for earning credits applies equally across
manufacturers and does not place small entities at a significant
competitive disadvantage. In any event, even if the rulemaking had a
``significant economic impact'' on these small EV manufacturers, the
number of these companies is not ``a substantial number.'' \705\ For
these reasons, their existence does not alter NHTSA's analysis of the
applicability of the Regulatory Flexibility Act.
---------------------------------------------------------------------------

    \705\ 5 U.S.C. 605.
---------------------------------------------------------------------------

F. Executive Order 13132 (Federalism)

    E.O. 13132 requires Federal agencies to develop an accountable
process to ensure ``meaningful and timely input by State and local
officials in the development of regulatory policies that have
federalism implications.'' The order defines the term ``[p]olicies that
have federalism implications'' to include regulations that 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.'' Under
the order, agencies may not issue a regulation that has federalism
implications, that imposes substantial direct compliance costs, unless
the Federal Government provides the funds necessary to pay the direct
compliance costs incurred by the State and local governments, or the
agencies consult with State and local officials early in the process of
developing the proposed regulation.
    Similar to the CAFE preemption final rule,\706\ NHTSA does not
believe that this proposal implicates E.O. 13132, because it neither
imposes substantial direct compliance costs on State, local, or Tribal
governments, nor does it preempt State law. Thus, this proposal does
not implicate the consultation procedures that E.O. 13132 imposes on
agency regulations that would either preempt State law or impose
substantial direct compliance costs on State, local, or Tribal
governments, because the only entities subject to this proposal are
vehicle manufacturers. Nevertheless, NHTSA has complied with the
Order's requirements and consulted directly with the CARB in developing
a number of elements of this proposal.
---------------------------------------------------------------------------

    \706\ See 86 FR 74236, 74365 (Dec. 29, 2021).
---------------------------------------------------------------------------

G. Executive Order 12988 (Civil Justice Reform)

    Pursuant to E.O. 12988, ``Civil Justice Reform'' (61 FR 4729, Feb.
7, 1996), NHTSA has considered whether this proposal would have any
retroactive effect. This proposal does not have any retroactive effect.

H. Executive Order 13175 (Consultation and Coordination With Indian
Tribal Governments)

    This proposal does not have tribal implications, as specified in
E.O. 13175 (65 FR 67249, Nov. 9, 2000). This proposal would be
implemented at the Federal level and would impose compliance costs only
on vehicle manufacturers. Thus, E.O. 13175, which requires consultation
with Tribal officials when agencies are developing policies that have
``substantial direct effects'' on Tribes and Tribal interests, does not
apply to this proposal.

I. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires Federal agencies to prepare a written assessment of the costs,
benefits, and other effects of a proposed or final rule that includes a
Federal mandate likely to result in the expenditure by State, local, or
Tribal governments, in the aggregate, or by the private sector, of more
than $100 million in any one year (adjusted for inflation with base
year of 1995). Adjusting this amount by the implicit gross domestic
product price deflator for 2021 results in $166 million (118.895/71.823
= 1.66).\707\ Before

promulgating a rule for which a written statement is needed, section
205 of UMRA generally requires NHTSA to identify and consider a
reasonable number of regulatory alternatives and adopt the least
costly, most cost-effective, or least burdensome alternative that
achieves the objective of the rule. The provisions of section 205 do
not apply when they are inconsistent with applicable law. Moreover,
section 205 allows NHTSA to adopt an alternative other than the least
costly, most cost-effective, or least burdensome alternative if NHTSA
publishes with the rule an explanation of why that alternative was not
adopted.
---------------------------------------------------------------------------

    \707\ BEA. 2023. National Income and Product Accounts, Table
1.1.9: Implicit Price Deflators for Gross Domestic Product.
Available at: https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey. (Accessed: May 31,
2023).
---------------------------------------------------------------------------

    This rulemaking will not result in the expenditure by State, local,
or Tribal governments, in the aggregate, of more than $166 million
annually, but it will result in the expenditure of that magnitude by
vehicle manufacturers and/or their suppliers. In developing this
proposed rule, we considered a range of alternative fuel economy and
fuel efficiency standards. As explained in detail in Section V of the
preamble above, NHTSA tentatively concludes that our selected
alternatives are the maximum feasible alternatives that achieve the
objectives of this rulemaking, as required by EPCA/EISA.

J. Regulation Identifier Number

    The DOT assigns a regulation identifier number (RIN) to each
regulatory action listed in the Unified Agenda of Federal Regulations.
The Regulatory Information Service Center publishes the Unified Agenda
in April and October of each year. The RIN contained in the heading at
the beginning of this document may be used to find this action in the
Unified Agenda.

K. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act (NTTAA) requires NHTSA evaluate and use existing voluntary
consensus standards in its regulatory activities unless doing so would
be inconsistent with applicable law (e.g., the statutory provisions
regarding NHTSA's vehicle safety authority) or otherwise
impractical.\708\
---------------------------------------------------------------------------

    \708\ 15 U.S.C. 272.
---------------------------------------------------------------------------

    Voluntary consensus standards are technical standards developed or
adopted by voluntary consensus standards bodies. Technical standards
are defined by the NTTAA as ``performance-based or design-specific
technical specification and related management systems practices.''
They pertain to ``products and processes, such as size, strength, or
technical performance of a product, process or material.''
    Examples of organizations generally regarded as voluntary consensus
standards bodies include the American Society for Testing and
Materials, International, the SAE, and the American National Standards
Institute (ANSI). If NHTSA does not use available and potentially
applicable voluntary consensus standards, it is required by the Act to
provide Congress, through OMB an explanation of reasons for not using
such standards. There are currently no consensus standards that NHTSA
administers relevant to these proposed CAFE standards.

L. Department of Energy Review

    In accordance with 49 U.S.C. 32902(j)(2), NHTSA submitted this
proposal to the DOE for review. That agency did not make any comments
that NHTSA did not address.

M. Paperwork Reduction Act

    Under the procedures established by the Paperwork Reduction Act of
1995 (PRA) (44 U.S.C. 3501, et. seq.), Federal agencies must obtain
approval from the OMB for each collection of information they conduct,
sponsor, or require through regulations. A person is not required to
respond to a collection of information by a Federal Agency unless the
collection displays a valid OMB control number. This NPRM proposes
changes that relate to an information collection that is subject to the
PRA, but the changes are not expected to increase the burden associated
with the information collection. Additional details about NHTSA's
information collection for its Corporate Average Fuel Economy (CAFE)
program (OMB control number 2127-0019) and how NHTSA estimated burden
for this collection are available in the supporting statements for the
currently approved collection.\709\
---------------------------------------------------------------------------

    \709\ Office of Information and Regulatory Affairs. 2022.
Supporting Statements: Part A, Corporate Average Fuel Economy
Reporting. OMB 2127-0019. Available at: https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202210-2127-003. (Accessed: May
31, 2023).
---------------------------------------------------------------------------

N. Privacy Act

    In accordance with 5 U.S.C. 553(c), NHTSA is soliciting comments
from the public to inform the rulemaking process better. These comments
will post, without edit, to https://www.regulations.gov, as described
in DOT's systems of records notice, DOT/ALL-14 FDMS, accessible through
https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices. In order to facilitate comment tracking and response,
NHTSA encourages commenters to provide their names or the names of
their organizations; however, submission of names is completely
optional.

IX. Regulatory Text

List of Subjects in 49 CFR Parts 531, 533, 535, and 537

    Fuel economy, Reporting and recordkeeping requirements.

    For the reasons discussed in the preamble, NHTSA proposes to amend
49 CFR parts 531, 533, 535, and 537 as follows:

PART 531--PASSENGER AUTOMOBILE AVERAGE FUEL ECONOMY STANDARDS

0
1. The authority citation for Part 531 continues to read as follows:

    Authority:  49 U.S.C. 32902; delegation of authority at 49 CFR
1.95.

0
2. Revise Sec.  531.1 to read as follows:

Sec.  531.1  Scope.

    This part establishes average fuel economy standards pursuant to 49
U.S.C. 32902 for passenger automobiles.
0
3. Revise Sec.  531.4 to read as follows:

Sec.  531.4  Definitions.

    (a) Statutory terms. (1) The terms average fuel economy,
manufacture, manufacturer, and model year are used as defined in 49
U.S.C. 32901.
    (2) The terms automobile and passenger automobile are used as
defined in 49 U.S.C. 32901 and in accordance with the determination in
part 523 of this chapter.
    (b) Other terms. As used in this part, unless otherwise required by
the context--
    (1) The term domestically manufactured passenger automobile means
the vehicle is deemed to be manufactured domestically under 49 U.S.C.
32904(b)(3) and 40 CFR 600.511-08.
    (2) [Reserved]
0
4. Amend Sec.  531.5 by revising paragraphs (a) through (d) to read as
follows:

Sec.  531.5  Fuel economy standards.

    (a) Except as provided in paragraph (e) of this section, each
manufacturer of passenger automobiles shall comply with the fleet
average fuel economy standards in table 1 to this paragraph (a),
expressed in miles per gallon, in the model year specified as
applicable:

                        Table 1 to Paragraph (a)
------------------------------------------------------------------------
                                                           Average fuel
                                                              economy
                       Model year                            standard
                                                            (miles per
                                                              gallon)
------------------------------------------------------------------------
1978....................................................            18.0
1979....................................................            19.0
1980....................................................            20.0
1981....................................................            22.0
1982....................................................            24.0
1983....................................................            26.0
1984....................................................            27.0
1985....................................................            27.5
1986....................................................            26.0
1987....................................................            26.0
1988....................................................            26.0
1989....................................................            26.5
1990-2010...............................................            27.5
------------------------------------------------------------------------

    (b) Except as provided in paragraph (e) of this section, for model
year 2011, a manufacturer's passenger automobile fleet shall comply
with the fleet average fuel economy level calculated for that model
year according to figure 1 and the appropriate values in table 2 to
this paragraph (b).
[GRAPHIC] [TIFF OMITTED] TP17AU23.111

Where:

N is the total number (sum) of passenger automobiles produced by a
manufacturer;
Ni is the number (sum) of the ith passenger automobile
model produced by the manufacturer; and
Ti is the fuel economy target of the ith model passenger
automobile, which is determined according to the following formula,
rounded to the nearest hundredth:
[GRAPHIC] [TIFF OMITTED] TP17AU23.114

Where:

Parameters a, b, c, and d are defined in table 2 to this paragraph
(b);
e = 2.718; and
x = footprint (in square feet, rounded to the nearest tenth) of the
vehicle model.

             Table 2 to Paragraph (b)--Parameters for the Passenger Automobile Fuel Economy Targets
----------------------------------------------------------------------------------------------------------------
                                                                      Parameters
             Model year              ---------------------------------------------------------------------------
                                           a (mpg)            b (mpg)        c (gal/mi/ft\2\)      d (gal/mi)
----------------------------------------------------------------------------------------------------------------
2011................................              31.20              24.00              51.41               1.91
----------------------------------------------------------------------------------------------------------------

    (c) Except as provided in paragraph (e) of this section, for model
years 2012-2032, a manufacturer's passenger automobile fleet shall
comply with the fleet average fuel economy level calculated for that
model year according to this figure 2 and the appropriate values in
this table 3 to this paragraph (c).

Figure 2 to paragraph (c)
[GRAPHIC] [TIFF OMITTED] TP17AU23.112

Where:

CAFErequired is the fleet average fuel economy standard for a given
fleet (domestic passenger automobiles or import passenger
automobiles);
Subscript i is a designation of multiple groups of automobiles,
where each group's designation, i.e., i = 1, 2, 3, etc., represents
automobiles that share a unique model type and footprint within the
applicable fleet, either domestic passenger automobiles or import
passenger automobiles;
Productioni is the number of passenger automobiles produced for sale
in the United States within each ith designation, i.e., which share
the same model type and footprint;

TARGETi is the fuel economy target in miles per gallon (mpg)
applicable to the footprint of passenger automobiles within each ith
designation, i.e., which share the same model type and footprint,
calculated according to Figure 3 and rounded to the nearest
hundredth of a mpg, i.e., 35.455 = 35.46 mpg, and the summations in
the numerator and denominator are both performed over all models in
the fleet in question.

Figure 3 to Paragraph (c)
[GRAPHIC] [TIFF OMITTED] TP17AU23.113

Where:

TARGET is the fuel economy target (in mpg) applicable to vehicles of
a given footprint (FOOTPRINT, in square feet);
Parameters a, b, c, and d are defined in table 3 to this paragraph
(c); and
The MIN and MAX functions take the minimum and maximum,
respectively, of the included values.

             Table 3 to Paragraph (c)--Parameters for the Passenger Automobile Fuel Economy Targets
                                                 [MYs 2012-2032]
----------------------------------------------------------------------------------------------------------------
                                                                            Parameters
                                                 ---------------------------------------------------------------
                   Model year                                                       c (gal/mi/
                                                      a (mpg)         b (mpg)         ft\2\)        d (gal/mi)
----------------------------------------------------------------------------------------------------------------
2012............................................           35.95           27.95       0.0005308        0.006057
2013............................................           36.80           28.46       0.0005308        0.005410
2014............................................           37.75           29.03       0.0005308        0.004725
2015............................................           39.24           29.90       0.0005308        0.003719
2016............................................           41.09           30.96       0.0005308        0.002573
2017............................................           43.61           32.65       0.0005131        0.001896
2018............................................           45.21           33.84       0.0004954        0.001811
2019............................................           46.87           35.07       0.0004783        0.001729
2020............................................           48.74           36.47       0.0004603        0.001643
2021............................................           49.48           37.02        0.000453         0.00162
2022............................................           50.24           37.59        0.000447         0.00159
2023............................................           51.00           38.16        0.000440         0.00157
2024............................................           55.44           41.48        0.000405         0.00144
2025............................................           60.26           45.08        0.000372         0.00133
2026............................................           66.95           50.09        0.000335         0.00120
2027............................................           68.32           51.12         0.00033         0.00117
2028............................................           69.71           52.16         0.00032         0.00115
2029............................................           71.14           53.22         0.00032         0.00113
2030............................................           72.59           54.31         0.00031         0.00110
2031............................................           74.07           55.42         0.00030         0.00108
2032............................................           75.58           56.55         0.00030         0.00106
----------------------------------------------------------------------------------------------------------------

    (d) In addition to the requirements of paragraphs (b) and (c) of
this section, each manufacturer, other than manufacturers subject to
standards in paragraph (e) of this section, shall also meet the minimum
fleet standard for domestically manufactured passenger automobiles
expressed in table 4 to this paragraph (d):

      Table 4 to Paragraph (d)--Minimum Fuel Economy Standards for
             Domestically Manufactured Passenger Automobiles
                             [MYs 2011-2032]
------------------------------------------------------------------------
                                                               Minimum
                         Model year                            standard
------------------------------------------------------------------------
2011.......................................................         27.8
2012.......................................................         30.7
2013.......................................................         31.4
2014.......................................................         32.1
2015.......................................................         33.3
2016.......................................................         34.7
2017.......................................................         36.7
2018.......................................................         38.0
2019.......................................................         39.4
2020.......................................................         40.9
2021.......................................................         39.9
2022.......................................................         40.6
2023.......................................................         41.1
2024.......................................................         44.3
2025.......................................................         48.1
2026.......................................................         53.5
2027.......................................................         54.1
2028.......................................................         55.3
2029.......................................................         56.4
2030.......................................................         57.5
2031.......................................................         58.7
2032.......................................................         59.9
------------------------------------------------------------------------

* * * * *
0
4. Amend Sec.  531.6 by revising paragraph (b) to read as follows:

Sec.  531.6  Measurement and calculation procedures.

* * * * *
    (b) For model years 2017 and later, a manufacturer is eligible to
increase the fuel economy performance of passenger cars in accordance
with procedures established by the Environmental

Protection Agency (EPA) set forth in 40 CFR part 600, subpart F,
including adjustments to fuel economy for fuel consumption improvements
related to air conditioning (AC) efficiency and off-cycle technologies.
Manufacturers must provide reporting on these technologies as specified
in Sec.  537.7 of this chapter by the required deadlines.
    (1) Efficient AC technologies. A manufacturer may increase its
fleet average fuel economy performance through the use of technologies
that improve the efficiency of AC systems pursuant to the requirements
in 40 CFR 86.1868-12. Fuel consumption improvement values resulting
from the use of those AC systems must be determined in accordance with
40 CFR 600.510-12(c)(3)(i). Starting in MY 2027, fuel consumption
improvement values may only increase the fuel economy of vehicles
propelled by internal combustion engines (ICEs) and, therefore, will be
calculated based only on the number of vehicles with internal
combustion vehicles that are equipped with the technologies.
    (2) Off-cycle technologies on EPA's predefined list. A manufacturer
may increase its fleet average fuel economy performance through the use
of off-cycle technologies pursuant to the requirements in 40 CFR
86.1869-12for predefined off-cycle technologies in accordance with 40
CFR 86.1869-12(b). The fuel consumption improvement is determined in
accordance with 40 CFR 600.510-12(c)(3)(ii). Starting in MY 2027, fuel
consumption improvement values may only increase the fuel economy of
vehicles propelled by ICEs and, therefore, will be calculated based
only on the number of vehicles with internal combustion vehicles that
are equipped with the technologies.
    (3) Off-cycle technologies using 5-cycle testing. Through MY 2027,
a manufacturer may increase its fleet average fuel economy performance
through the use of off-cycle technologies tested using the EPA's 5-
cycle methodology in accordance with 40 CFR 86.1869-12(c). The fuel
consumption improvement is determined in accordance with 40 CFR
600.510-12(c)(3)(ii).
    (4) Off-cycle technologies using the alternative EPA-approved
methodology. Through MY 2027, a manufacturer may seek to increase its
fuel economy performance through use of an off-cycle technology
requiring an application request made to the EPA in accordance with 40
CFR 86.1869-12(d).
    (i) Eligibility under the Corporate Average Fuel Economy (CAFE)
program requires compliance with paragraphs (b)(4)(i)(A) through (C) of
this section. Paragraphs (b)(4)(i)(A), (B) and (D) of this section
apply starting in model year 2024. Paragraph (b)(4)(i)(E) of this
section applies starting in MY 2025.
    (A) A manufacturer seeking to increase its fuel economy performance
using the alternative methodology for an off-cycle technology, should
submit a detailed analytical plan to EPA prior to the applicable model
year. The detailed analytical plan may include information, such as
planned test procedure and model types for demonstration. The plan will
be approved or denied in accordance with 40 CFR 86.1869.12(d).
    (B) A manufacturer seeking to increase its CAFE program fuel
economy performance using the alternative methodology for an off-cycle
technology must submit an official credit application to EPA and obtain
approval in accordance with 40 CFR 86.1869.12(e) prior to September of
the given model year.
    (C) A manufacturer's plans, applications and requests approved by
the EPA must be made in consultation with NHTSA. To expedite NHTSA's
consultation with the EPA, a manufacturer must concurrently submit its
application to NHTSA if the manufacturer is seeking off-cycle fuel
economy improvement values under the CAFE program for those
technologies. For off-cycle technologies that are covered under 40 CFR
86.1869-12(d), NHTSA will consult with the EPA regarding NHTSA's
evaluation of the specific off-cycle technology to ensure its impact on
fuel economy and the suitability of using the off-cycle technology to
adjust the fuel economy performance.
    (D) A manufacturer may request an extension from NHTSA for more
time to obtain an EPA approval. Manufacturers should submit their
requests 30 days before the deadlines in paragraphs (b)(4)(i)(A)
through (C) of this section. Requests should be submitted to NHTSA's
Director of the Office of Vehicle Safety Compliance at [email protected].
    (E) For MYs 2025 and 2026, a manufacturer must respond within 60-
days to any requests from EPA or NHTSA for additional information or
clarifications to submissions provided pursuant to paragraphs
(b)(4)(i)(A) and (B) of this section. Failure to respond within 60 days
may result in denial of the manufacturer's request to increase its fuel
economy performance through use of an off-cycle technology requests
made to the EPA in accordance with 40 CFR 86.1869-12(d).
    (ii) Review and approval process. NHTSA will provide its views on
the suitability of the technology for that purpose to the EPA. NHTSA's
evaluation and review will consider:
    (A) Whether the technology has a direct impact upon improving fuel
economy performance;
    (B) Whether the technology is related to crash-avoidance
technologies, safety critical systems or systems affecting safety-
critical functions, or technologies designed for the purpose of
reducing the frequency of vehicle crashes;
    (C) Information from any assessments conducted by the EPA related
to the application, the technology and/or related technologies; and
    (D) Any other relevant factors.
    (iii) Safety. (A) Technologies found to be defective or non-
compliant, subject to recall pursuant to part 573 of this chapter,
Defect and Noncompliance Responsibility and Reports, due to a risk to
motor vehicle safety, will have the values of approved off-cycle
credits removed from the manufacturer's credit balance or adjusted to
the population of vehicles the manufacturer remedies as required by 49
U.S.C. chapter 301. NHTSA will consult with the manufacturer to
determine the amount of the adjustment.
    (B) Approval granted for innovative and off-cycle technology
credits under NHTSA's fuel efficiency program does not affect or
relieve the obligation to comply with the Vehicle Safety Act (49 U.S.C.
chapter 301), including the ``make inoperative'' prohibition (49 U.S.C.
30122), and all applicable Federal motor vehicle safety standards
(FMVSSs) issued thereunder (part 571 of this chapter). In order to
generate off-cycle or innovative technology credits manufacturers must
state--
    (1) That each vehicle equipped with the technology for which they
are seeking credits will comply with all applicable FMVSS(s); and
    (2) Whether or not the technology has a fail-safe provision. If no
fail-safe provision exists, the manufacturer must explain why not and
whether a failure of the innovative technology would affect the safety
of the vehicle.

PART 533--LIGHT TRUCK FUEL ECONOMY STANDARDS

0
5. The authority citation for part 533 continues to read as follows:

    Authority:  49 U.S.C. 32902; delegation of authority at 49 CFR
1.95.

0
6. Revise Sec.  533.1 to read as follows:

Sec.  533.1  Scope.

    This part establishes average fuel economy standards pursuant to 49
U.S.C. 32902 for light trucks.
0
7. Revise Sec.  533.4 to read as follows:

Sec.  533.4  Definitions.

    (a) Statutory terms. (1) The terms average fuel economy, average
fuel economy standard, fuel economy, import, manufacture, manufacturer,
and model year are used as defined in 49 U.S.C. 32901.
    (2) The term automobile is used as defined in 49 U.S.C. 32901 and
in accordance with the determinations in part 523 of this chapter.
    (b) Other terms. As used in this part, unless otherwise required by
the context--
    (1) Light truck is used in accordance with the determinations in
part 523 of this chapter.
    (2) Captive import means with respect to a light truck, one which
is not domestically manufactured, as defined in section 502(b)(2)(E) of
the Motor Vehicle Information and Cost Savings Act, but which is
imported in the 1980 model year or thereafter by a manufacturer whose
principal place of business is in the United States.
    (3) 4-wheel drive, general utility vehicle means a 4-wheel drive,
general purpose automobile capable of off-highway operation that has a
wheelbase of not more than 280 centimeters, and that has a body shape
similar to 1977 Jeep CJ-5 or CJ-7, or the 1977 Toyota Land Cruiser.
    (4) Basic engine means a unique combination of manufacturer, engine
displacement, number of cylinders, fuel system (as distinguished by
number of carburetor barrels or use of fuel injection), and catalyst
usage.
    (5) Limited product line light truck means a light truck
manufactured by a manufacturer whose light truck fleet is powered
exclusively by basic engines which are not also used in passenger
automobiles.
0
8. Amend Sec.  533.5 by revising table 7 to paragraph (a) and paragraph
(j) to read as follows:

Sec.  533.5  Requirements.

    (a) * * *

                                  Table 7 to Paragraph (a)--Parameters for the Light Truck Fuel Economy Targets for MYs
                                                                       [2017-2032]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Parameters
                                                                 ---------------------------------------------------------------------------------------
                           Model year                                                c (gal/mi/                                  g (gal/mi/
                                                                  a (mpg)  b (mpg)     ft\2\)     d (gal/mi)  e (mpg)  f (mpg)     ft\2\)     h (gal/mi)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2017............................................................    36.26    25.09    0.0005484     0.005097    35.10    25.09    0.0004546     0.009851
2018............................................................    37.36    25.20    0.0005358     0.004797    35.31    25.20    0.0004546     0.009682
2019............................................................    38.16    25.25    0.0005265     0.004623    35.41    25.25    0.0004546     0.009603
2020............................................................    39.11    25.25    0.0005140     0.004494    35.41    25.25    0.0004546     0.009603
2021............................................................    39.71    25.63     0.000506      0.00443       NA       NA           NA           NA
2022............................................................    40.31    26.02     0.000499      0.00436       NA       NA           NA           NA
2023............................................................    40.93    26.42     0.000491      0.00429       NA       NA           NA           NA
2024............................................................    44.48    26.74     0.000452      0.00395       NA       NA           NA           NA
2025............................................................    48.35    29.07     0.000416      0.00364       NA       NA           NA           NA
2026............................................................    53.73    32.30     0.000374      0.00327       NA       NA           NA           NA
2027............................................................    55.96    33.64      0.00036      0.00314       NA       NA           NA           NA
2028............................................................    58.30    35.05      0.00034      0.00302       NA       NA           NA           NA
2029............................................................    60.73    36.51      0.00033      0.00289       NA       NA           NA           NA
2030............................................................    63.26    38.03      0.00032      0.00278       NA       NA           NA           NA
2031............................................................    65.89    39.61      0.00031      0.00267       NA       NA           NA           NA
2032............................................................    68.64    41.26      0.00029      0.00256       NA       NA           NA           NA
--------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * *
    (j) For model years 2017-2032, a manufacturer's light truck fleet
shall comply with the fleet average fuel economy standard calculated
for that model year according to figures 2 and 4 to paragraph (a) of
this section and the appropriate values in table 7 to paragraph (a) of
this section.
0
9. Amend Sec.  533.6 by:
0
a. Revising paragraphs (c) introductory text, (c)(1) and (3);
0
b. Redesignating paragraph (c)(4) as (c)(5);
0
c. Adding a new paragraph (c)(4); and
0
d. Revising newly redesignated paragraph (c)(5).
    The revisions and addition read as follows:

Sec.  533.6  Measurement and calculation procedures.

* * * * *
    (c) For model years 2017 and later, a manufacturer is eligible to
increase the fuel economy performance of light trucks in accordance
with procedures established by the Environmental Protection Agency
(EPA) set forth in 40 CFR part 600, subpart F, including adjustments to
fuel economy for fuel consumption improvements related to air
conditioning (AC) efficiency, off-cycle technologies, and hybridization
and other performance-based technologies for full-size pickup trucks
that meet the requirements specified in 40 CFR 86.1803. Manufacturers
must provide reporting on these technologies as specified in Sec.
537.7 of this chapter by the required deadlines.
    (1) Efficient AC technologies. A manufacturer may seek to increase
its fleet average fuel economy performance through the use of
technologies that improve the efficiency of AC systems pursuant to the
requirements in 40 CFR 86.1868-12. Fuel consumption improvement values
resulting from the use of those AC systems must be determined in
accordance with 40 CFR 600.510-12(c)(3)(i). Starting in MY 2027, fuel
consumption improvement values may only increase the fuel economy of
vehicles propelled by internal combustion engines (ICEs) and,
therefore, will be calculated based only on the number of vehicles with
internal combustion vehicles that are equipped with the technologies.
* * * * *
    (3) Off-cycle technologies on EPA's predefined list. A manufacturer
may seek to increase its fleet average fuel economy performance through
the use of off-cycle technologies pursuant to the requirements in 40
CFR 86.1869-12 for predefined off-cycle technologies in accordance with
40 CFR 86.1869-12(b). The fuel consumption improvement is determined in
accordance with 40 CFR 600.510-12(c)(3)(ii). Starting in MY 2027, fuel
consumption improvement values may only increase the fuel economy of
vehicles propelled by ICEs and, therefore, will be calculated based

only on the number of vehicles with internal combustion vehicles that
are equipped with the technologies.
    (4) Off-cycle technologies using 5-cycle testing. Through MY 2027,
a manufacturer may increase its fleet average fuel economy performance
through the use of off-cycle technologies tested using the EPA's 5-
cycle methodology in accordance with 40 CFR 86.1869-12(c). The fuel
consumption improvement is determined in accordance with 40 CFR
600.510-12(c)(3)(ii).
    (5) Off-cycle Technologies using the alternative EPA-approved
methodology. Through MY 2027, a manufacturer may seek to increase its
fuel economy performance through use of an off-cycle technology
requiring an application request made to the EPA in accordance with 40
CFR 86.1869-12(d).
    (i) Eligibility under the Corporate Average Fuel Economy (CAFE)
program requires compliance with paragraphs (c)(5)(i)(A) through (C) of
this section. Paragraphs (c)(5)(i)(A), (B) and (D) of this section
apply starting in model year 2024. Paragraph (b)(5)(i)(E) of this
section applies starting in MY 2025.
    (A) A manufacturer seeking to increase its fuel economy performance
using the alternative methodology for an off-cycle technology, should
submit a detailed analytical plan to EPA prior to the applicable model
year. The detailed analytical plan may include information such as,
planned test procedure and model types for demonstration. The plan will
be approved or denied in accordance with 40 CFR 86.1869.12(d).
    (B) A manufacturer seeking to increase its fuel economy performance
using the alternative methodology for an off-cycle technology must
submit an official credit application to EPA and obtain approval in
accordance with 40 CFR 86.1869.12(e) prior to September of the given
model year.
    (C) A manufacturer's plans, applications and requests approved by
the EPA must be made in consultation with NHTSA. To expedite NHTSA's
consultation with the EPA, a manufacturer must concurrently submit its
application to NHTSA if the manufacturer is seeking off-cycle fuel
economy improvement values under the CAFE program for those
technologies. For off-cycle technologies that are covered under 40 CFR
86.1869-12(d), NHTSA will consult with the EPA regarding NHTSA's
evaluation of the specific off-cycle technology to ensure its impact on
fuel economy and the suitability of using the off-cycle technology to
adjust the fuel economy performance.
    (D) A manufacturer may request an extension from NHTSA for more
time to obtain an EPA approval. Manufacturers should submit their
requests 30 days before the deadlines above. Requests should be
submitted to NHTSA's Director of the Office of Vehicle Safety
Compliance at [email protected].
    (E) For MYs 2025 and 2026, a manufacturer must respond within 60-
days to any requests from EPA or NHTSA for additional information or
clarifications to submissions provided pursuant to paragraphs
(b)(4)(i)(A) and (B) of this section. Failure to respond within 60 days
may result in denial of the manufacturer's request to increase its fuel
economy performance through use of an off-cycle technology requests
made to the EPA in accordance with 40 CFR 86.1869-12(d).
    (ii) Review and approval process. NHTSA will provide its views on
the suitability of the technology for that purpose to the EPA. NHTSA's
evaluation and review will consider:
    (A) Whether the technology has a direct impact upon improving fuel
economy performance;
    (B) Whether the technology is related to crash-avoidance
technologies, safety critical systems or systems affecting safety-
critical functions, or technologies designed for the purpose of
reducing the frequency of vehicle crashes;
    (C) Information from any assessments conducted by the EPA related
to the application, the technology and/or related technologies; and
    (D) Any other relevant factors.
    (E) NHTSA will collaborate to host annual meetings with EPA at
least once by July 30th before the model year begins to provide general
guidance to the industry on past off-cycle approvals.
    (iii) Safety. (A) Technologies found to be defective or non-
compliant, subject to recall pursuant to part 573 of this chapter,
Defect and Noncompliance Responsibility and Reports, due to a risk to
motor vehicle safety, will have the values of approved off-cycle
credits removed from the manufacturer's credit balance or adjusted to
the population of vehicles the manufacturer remedies as required by 49
U.S.C. chapter 301. NHTSA will consult with the manufacturer to
determine the amount of the adjustment.
    (B) Approval granted for innovative and off-cycle technology
credits under NHTSA's fuel efficiency program does not affect or
relieve the obligation to comply with the Vehicle Safety Act (49 U.S.C.
chapter 301), including the ``make inoperative'' prohibition (49 U.S.C.
30122), and all applicable Federal motor vehicle safety standards
issued thereunder (FMVSSs) (part 571 of this chapter). In order to
generate off-cycle or innovative technology credits manufacturers must
state--
    (1) That each vehicle equipped with the technology for which they
are seeking credits will comply with all applicable FMVSS(s); and
    (2) Whether or not the technology has a fail-safe provision. If no
fail-safe provision exists, the manufacturer must explain why not and
whether a failure of the innovative technology would affect the safety
of the vehicle.

PART 535--MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM

0
10. The authority citation for part 535 continues to read as follows:

    Authority:  49 U.S.C. 32902 and 30101; delegation of authority
at 49 CFR 1.95.

0
11. Amend Sec.  535.4 by revising the introductory text, removing the
definition for ``Alterers'', and adding the definition for ``Alterer'',
in alphabetical order, to read as follows:

Sec.  535.4  Definitions.

    The terms manufacture, manufacturer, commercial medium-duty on
highway vehicle, commercial heavy-duty on highway vehicle, fuel, and
work truck are used as defined in 49 U.S.C. 32901. See 49 CFR 523.2 for
general definitions related to NHTSA's fuel efficiency programs.
* * * * *
    Alterer means a manufacturer that modifies an altered vehicle as
defined in 49 CFR 567.3
* * * * *
0
12. Amend Sec.  535.5 by revising paragraphs (a) introductory text,
(a)(1), (2) and (9) to read as follows:

Sec.  535.5  Standards.

    (a) Heavy-duty pickup trucks and vans. Each manufacturer's fleet of
heavy-duty pickup trucks and vans (HDPUVs) shall comply with the fuel
consumption standards in this paragraph (a) expressed in gallons per
100 miles. Each vehicle must be manufactured to comply for its full
useful life. For the Phase 1 program, if the manufacturer's fleet
includes conventional vehicles (gasoline, diesel and alternative fueled
vehicles) and advanced technology vehicles (hybrids with powertrain
designs that include energy storage systems, vehicles with waste heat
recovery, EVs and fuel cell vehicles), it may divide its fleet into two
separate fleets each with its own separate fleet average fuel
consumption standard which the manufacturer must comply with the
requirements of this paragraph (a). For Phase 2 and later,

manufacturers may calculate their fleet average fuel consumption
standard for a conventional fleet and multiple advanced technology
vehicle fleets. Advanced technology vehicle fleets should be separated
into plug-in hybrid electric vehicles, electric vehicles and fuel cell
vehicles. NHTSA standards correspond to the same requirements for the
Environmental Protection Agency (EPA) as specified in 40 CFR 86.1819-
14.
    (1) Mandatory standards. For model years 2016 and later, each
manufacturer must comply with the fleet average standard derived from
the unique subconfiguration target standards (or groups of
subconfigurations approved by EPA in accordance with 40 CFR 86.1819) of
the model types that make up the manufacturer's fleet in a given model
year. Each subconfiguration has a unique attribute-based target
standard, defined by each group of vehicles having the same payload,
towing capacity and whether the vehicles are equipped with a 2-wheel or
4-wheel drive configuration. Phase 1 target standards apply for model
years 2016 through 2020. Phase 2 target standards apply for model year
2021 through 2029. NHTSA's Phase 3 HDPUVs apply for model year 2030 and
later.
    (2) Subconfiguration target standards. (i) Two alternatives exist
for determining the subconfiguration target standards for Phase 1. For
each alternative, separate standards exist for compression-ignition and
spark-ignition vehicles:
    (A) The first alternative allows manufacturers to determine a fixed
fuel consumption standard that is constant over the model years; and
    (B) The second alternative allows manufacturers to determine
standards that are phased-in gradually each year.
    (ii) Calculate the subconfiguration target standards as specified
in this paragraph (a)(2)(ii), using the appropriate coefficients from
table 1 to paragraph (a)(2)(ii), choosing between the alternatives in
paragraph (a)(2)(i) of this section. For electric or fuel cell heavy-
duty vehicles, use compression-ignition vehicle coefficients ``c'' and
``d'' and for hybrid (including plug-in hybrid), dedicated and dual-
fueled vehicles, use coefficients ``c'' and ``d'' appropriate for the
engine type used. Round each standard to the nearest 0.001 gallons per
100 miles and specify all weights in pounds rounded to the nearest
pound. Calculate the subconfiguration target standards using the
following equation:

Subconfiguration Target Standard (gallons per 100 miles) = [c x (WF)] +
d

Where:

WF = Work Factor = [0.75 x (Payload Capacity + Xwd)] + [0.25 x
Towing Capacity]
Xwd = 4wd Adjustment = 500 lbs. if the vehicle group is equipped
with 4wd and all-wheel drive, otherwise equals 0 lbs. for 2wd.
Payload Capacity = GVWR (lbs.)--Curb Weight (lbs.) (for each vehicle
group) Towing Capacity = GCWR (lbs.)--GVWR (lbs.) (for each vehicle
group)

       Table 1 to Paragraph (a)(2)(ii)--Coefficients for Mandatory
                    Subconfiguration Target Standards
------------------------------------------------------------------------

------------------------------------------------------------------------
              Phase 1 Alternative 1--Fixed Target Standards
------------------------------------------------------------------------
Compression Ignition (CI) Vehicle Coefficients
------------------------------------------------------------------------
Model Year(s)                                                 c        d
------------------------------------------------------------------------
    2016 to 2018...................................   0.0004322    3.330
    2019 to 2020...................................   0.0004086    3.143
SI Vehicle Coefficients
    2016 to 2017...................................   0.0005131    3.961
    2018 to 2020...................................   0.0004086    3.143
------------------------------------------------------------------------
            Phase 1 Alternative 2--Phased-in Target Standards
------------------------------------------------------------------------
CI Vehicle Coefficients
    2016...........................................   0.0004519    3.477
    2017...........................................   0.0004371    3.369
    2018 to 2020...................................   0.0004086    3.143
SI Vehicle Coefficients
    2016...........................................   0.0005277    4.073
    2017...........................................   0.0005176    3.983
    2018 to 2020...................................   0.0004951    3.815
------------------------------------------------------------------------
                     Phase 2--Fixed Target Standards
------------------------------------------------------------------------
CI Vehicle Coefficients
    2021...........................................   0.0003988    3.065
    2022...........................................   0.0003880    2.986
    2023...........................................   0.0003792    2.917
    2024...........................................   0.0003694    2.839
    2025...........................................   0.0003605    2.770
    2026...........................................   0.0003507    2.701
    2027 to 2029...................................   0.0003418    2.633
    2030...........................................   0.0003076    2.370
    2031...........................................   0.0002769    2.133
    2032...........................................   0.0002492    1.919
    2033...........................................   0.0002243    1.728
    2034...........................................   0.0002018    1.555
    2035...........................................   0.0001816    1.399
SI Vehicle Coefficients
    2021...........................................   0.0004827    3.725
    2022...........................................   0.0004703    3.623
    2023...........................................   0.0004591    3.533
    2024...........................................   0.0004478    3.443
    2025...........................................   0.0004366    3.364
    2026...........................................   0.0004253    3.274
    2027 to 2029...................................   0.0004152    3.196
    2030...........................................   0.0003737    2.876
    2031...........................................   0.0003363    2.589
    2032...........................................   0.0003027    2.330
    2033...........................................   0.0002724    2.097
    2034...........................................   0.0002452    1.887
    2035...........................................   0.0002207    1.698
------------------------------------------------------------------------

* * * * *
    (9) Advanced, innovative and off-cycle technologies. For vehicles
subject to Phase 1 standards, manufacturers may generate separate
credit allowances for advanced and innovative technologies as specified
in Sec.  535.7(f)(1) and (2). For vehicles subject to Phase 2
standards, manufacturers may generate separate credits allowance for
off-cycle technologies in accordance with Sec.  535.7(f)(2). Separate
credit allowances for advanced technology vehicles cannot be generated;
instead, manufacturers may use the credit m specified in Sec.
535.7(f)(1)(ii) through model year 2026.
* * * * *
0
13. Amend Sec.  535.6 by revising paragraph (a)(1) to read as follows:

Sec.  535.6  Measurement and calculation procedures.

* * * * *
    (a) * * *
    (1) For the Phase 1 program, if the manufacturer's fleet includes
conventional vehicles (gasoline, diesel and alternative fueled
vehicles) and advanced technology vehicles (hybrids with powertrain
designs that include energy storage systems, vehicles with waste heat
recovery, electric vehicles and fuel cell vehicles), it may divide its
fleet into two separate fleets each with its own separate fleet average
fuel consumption performance rate. For Phase 2 and later, manufacturers
may calculate their fleet average fuel consumption rates for a
conventional fleet and separate advanced technology vehicle fleets.
Advanced technology vehicle fleets should be separated into plug-in
hybrid electric vehicles, electric vehicles and fuel cell vehicles.
* * * * *
0
14. Amend Sec.  535.7 by revising paragraphs (a)(1)(iii) and (iv),
(a)(2)(iii), (a)(4)(i) and (ii), (b)(2), (f)(1)(ii), (f)(2)
introductory text, (f)(2)(ii), and (f)(2)(vi)(B) to read as follows:

Sec.  535.7  Averaging, banking, and trading (ABT) credit program.

    (a) * * *
    (1) * * *
    (iii) Advanced technology credits. Credits generated by vehicle or
engine families or subconfigurations containing vehicles with advanced
technologies (i.e., hybrids with regenerative braking, vehicles
equipped with Rankine-cycle engines, electric and fuel cell vehicles).
    (iv) Innovative and off-cycle technology credits. Credits can be
generated by vehicle or engine families or subconfigurations having
fuel consumption reductions resulting from technologies not reflected
in the GEM

simulation tool or in the Federal Test Procedure (FTP) chassis
dynamometer and that were not in common use with heavy-duty vehicles or
engines before model year 2010 that are not reflected in the specified
test procedure. Manufacturers should prove that these technologies were
not in common use in heavy-duty vehicles or engines before model year
2010 by demonstrating factors such as the penetration rates of the
technology in the market. NHTSA will not approve any request if it
determines that these technologies do not qualify. The approach for
determining innovative and off-cycle technology credits under this fuel
consumption program is described in paragraph (f)(2) of this section
and by the Environmental Protection Agency (EPA) under 40 CFR 86.1819-
14(d)(13), 1036.610, and 1037.610. Starting in model year 2030,
manufacturers certifying vehicles under Sec.  535.5(a) may not earn
off-cycle technology credits under 40 CFR 86.1819-14(d)(13).
    (2) * * *
    (iii) Positive credits, other than advanced technology credits in
Phase 1, generated and calculated within an averaging set may only be
used to offset negative credits within the same averaging set.
* * * * *
    (4) * * *
    (i) Manufacturers may only trade banked credits to other
manufacturers to use for compliance with fuel consumption standards.
Traded FCCs, other than advanced technology credits earned in Phase 1,
may be used only within the averaging set in which they were generated.
Manufacturers may only trade credits to other entities for the purpose
of expiring credits.
    (ii) Advanced technology credits earned in Phase 1 can be traded
across different averaging sets.
* * * * *
    (b) * * *
    (2) Adjust the fuel consumption performance of subconfigurations
with advanced technology for determining the fleet average actual fuel
consumption value as specified in paragraph (f)(1) of this section and
40 CFR 86.1819-14(d)(6)(iii). Advanced technology vehicles can be
separated in a different fleet for the purpose of applying credit
incentives as described in paragraph (f)(1) of this section.
* * * * *
    (f) * * *
    (1) * * *
    (ii) There are no separate credit allowances for advanced
technology vehicles in the Phase 2 program. Instead, vehicle families
containing plug-in battery electric hybrids, all-electric, and fuel
cell vehicles certifying to Phase 2 standards may multiply credits by a
multiplier of:
    (A) 3.5 times for plug-in hybrid electric vehicles;
    (B) 4.5 times for all-electric vehicles; and
    (C) 5.5 times for fuel cell vehicles.
* * * * *
    (2) Innovative and off-cycle technology credits. This provision
allows fuel saving innovative and off-cycle engine and vehicle
technologies to generate fuel consumption credits (FCCs) comparable to
CO2 emission credits consistent with the provisions of 40
CFR 86.1819-14(d)(13) (for heavy-duty pickup trucks and vans), 40 CFR
1036.610 (for engines), and 40 CFR 1037.610 (for vocational vehicles
and tractors) through MY 2029.
* * * * *
    (ii) For model years 2021 through 2029, manufacturers may generate
off-cycle technology credits for introducing technologies that are not
reflected in the EPA specified test procedures. Upon identification and
joint approval with EPA, NHTSA will allow equivalent FCCs into its
program to those allowed by EPA for manufacturers seeking to obtain
innovative technology credits in a given model year. Such credits must
remain within the same regulatory subcategory in which the credits were
generated. NHTSA will adopt FCCs depending upon whether--
    (A) The technology meets paragraphs (f)(2)(i)(A) and (B) of this
section.
    (B) For heavy-duty pickup trucks and vans, manufacturers using the
5-cycle test to quantify the benefit of a technology are not required
to obtain approval from the agencies to generate results.
* * * * *
    (vi) * * *
    (B) For model years 2021 through 2029, manufacturers may not rely
on an approval for model years before 2021. Manufacturers must
separately request the agencies' approval before applying an
improvement factor or credit under this section for 2021 through 2029
engines and vehicle, even if the agencies approve the improvement
factor or credit for similar engine and vehicle models before model
year 2021.
* * * * *

PART 537--AUTOMOTIVE FUEL ECONOMY REPORTS

0
15. The authority citation for part 537 continues to read as follows:

    Authority:  49 U.S.C. 32907; delegation of authority at 49 CFR
1.95.

0
16. Revise Sec.  537.2 to read as follows:

Sec.  537.2  Purpose.

    The purpose of this part is to obtain information to aid the
National Highway Traffic Safety Administration in evaluating automobile
manufacturers' plans for complying with average fuel economy standards
and in preparing an annual review of the average fuel economy
standards.
0
17. Revise Sec.  537.3 to read as follows:

Sec.  537.3  Applicability.

    This part applies to automobile manufacturers, except for
manufacturers subject to an alternate fuel economy standard under 49
U.S.C. 32902(d).
0
18. Revise Sec.  537.4 to read as follows:

Sec.  537.4  Definitions.

    (a) Statutory terms. (1) The terms average fuel economy standard,
fuel, manufacture, and model year are used as defined in 49 U.S.C.
32901.
    (2) The term manufacturer is used as defined in 49 U.S.C. 32901and
in accordance with part 529 of this chapter.
    (3) The terms average fuel economy, fuel economy, and model type
are used as defined in subpart A of 40 CFR part 600.
    (4) The terms automobile, automobile capable of off-highway
operation, and passenger automobile are used as defined in 49 U.S.C.
32901 and in accordance with the determinations in part 523 of this
chapter.
    (b) Other terms. (1) The term loaded vehicle weight is used as
defined in subpart A of 40 CFR part 86.
    (2) The terms axle ratio, base level, body style, car line,
combined fuel economy, engine code, equivalent test weight, gross
vehicle weight, inertia weight, transmission class, and vehicle
configuration are used as defined in subpart A of 40 CFR part 600.
    (3) The term light truck is used as defined in part 523 of this
chapter and in accordance with determinations in that part.
    (4) The terms approach angle, axle clearance, brakeover angle,
cargo carrying volume, departure angle, passenger carrying volume,
running clearance, and temporary living quarters are used as defined in
part 523 of this chapter.
    (5) The term incomplete automobile manufacturer is used as defined
in part 529 of this chapter.
    (6) As used in this part, unless otherwise required by the context:
    (i) Administrator means the Administrator of the National Highway
Traffic Safety Administration or the Administrator's delegate.

    (ii) Current model year means:
    (A) In the case of a pre-model year report, the full model year
immediately following the period during which that report is required
by Sec.  537.5(b) to be submitted.
    (B) In the case of a mid-model year report, the model year during
which that report is required by Sec.  537.5(b) to be submitted.
    (iii) Average means a production-weighted harmonic average.
    (iv) Total drive ratio means the ratio of an automobile's engine
rotational speed (in revolutions per minute) to the automobile's
forward speed (in miles per hour).
0
19. Amend Sec.  537.7 by revising paragraphs (c)(7)(i) through (iii) to
read as follows:

Sec.  537.7  Pre-model year and mid-model year reports.

* * * * *
    (c) * * *
    (7) * * *
    (i) Provide a list of each air conditioning (AC) efficiency
improvement technology utilized in your fleet(s) of vehicles for each
model year for which the manufacturer qualifies for fuel consumption
improvement values under 49 CFR 531.6 or 533.6. For each technology
identify vehicles by make and model types that have the technology,
which compliance category those vehicles belong to and the number of
vehicles for each model equipped with the technology. For each
compliance category (domestic passenger car, import passenger car, and
light truck), report the AC fuel consumption improvement value in
gallons/mile in accordance with the equation specified in 40 CFI00.510-
12(c)(3)(i).
    (ii) Manufacturers must provide a list of off-cycle efficiency
improvement technologies utilized in its fleet(s) of vehicles for each
model year that is pending or approved by the Environmental Protection
Agency (EPA) for which the manufacturer qualifies for fuel consumption
improvement values under 49 CFR 531.6 or 533.6. For each technology,
manufacturers must identify vehicles by make and model types that have
the technology, which compliance category those vehicles belong to, the
number of vehicles for each model equipped with the technology, and the
associated off-cycle credits (grams/mile) available for each
technology. For each compliance category (domestic passenger car,
import passenger car, and light truck), manufacturers must calculate
the fleet off-cycle fuel consumption improvement value in gallons/mile
in accordance with the equation specified in 40 CFR 600.510-
12(c)(3)(ii).
    (iii) For model years up to 2024, manufacturers must provide a list
of full-size pickup trucks in its fleet that meet the mild and strong
hybrid vehicle definitions. For each mild and strong hybrid type,
manufacturers must identify vehicles by make and model types that have
the technology, the number of vehicles produced for each model equipped
with the technology, the total number of full-size pickup trucks
produced with and without the technology, the calculated percentage of
hybrid vehicles relative to the total number of vehicles produced, and
the associated full-size pickup truck credits (grams/mile) available
for each technology. For the light truck compliance category,
manufacturers must calculate the fleet pickup truck fuel consumption
improvement value in gallons/mile in accordance with the equation
specified in 40 CFR 600.510-12(c)(3)(iii).

    Issued on July 28, 2023, in Washington, DC, under authority
delegated in 49 CFR 1.95.
Ann Carlson,
Acting Administrator.
[FR Doc. 2023-16515 Filed 8-16-23; 8:45 am]
BILLING CODE 4910-59-P


[Federal Register Volume 83, Number 66 (Thursday, April 5, 2018)]
[Notices]
[Pages 14703-14705]
[FR Doc No: 2018-06912]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82969; File No. SR-NASDAQ-2018-024]

Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Clarify the Requirements for Delivery of a Contrary Exercise Advice

March 30, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 20, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend the rules of the Nasdaq Options
Market LLC (``NOM''), at Chapter VIII, Exercises and Deliveries.
    The text of the proposed rule change is available on the Exchange's
website at http://nasdaq.cchwallstreet.com, at the principal office of
the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to correct Chapter VIII, Exercises and
Deliveries, Section 1, Exercise of Options Contracts, to clarify the
requirements for delivery of a Contrary Exercise Advice. Section 1(b)
currently provides that option holders desiring to exercise or not
exercise expiring options must either (i) take no action and allow
exercise determinations to be made in accordance with the Options
Clearing Corporation's Ex-by-Ex procedure where applicable, or (ii)
submit a ``Contrary Exercise Advice'' to the Options Clearing
Corporation through the participant's clearing firm. In actual
practice, however, an option holder delivers a Contrary Exchange Advice
to the Exchange, not to the Options Clearing Corporation. The Exchange
therefore proposes to replace the words ``Options Clearing Corporation
through the participants clearing firm'' in Section 1(b)(ii) with a
reference to the Exchange and make similar, conforming changes to
Section 1(e)(i). As amended, Section 1(b) would be consistent with
Nasdaq ISE Rule 1100(b) which directs option holders to submit Contrary
Exercise Advices to the Exchange (not to the Options Clearing
Corporation).
    The Exchange proposes to further replace the words ``by the
deadline specified in paragraph (d) below'' with the words ``as
specified in paragraph (d) below'' given that paragraph (d) contains a
number of requirements associated with submission of Contrary Exercise
Advices in addition to the deadline. As revised, Section (b)(ii) tracks
the language of ISE Rule 1100(b)(ii) which permits an options holder
desiring to exercise or not

exercise expiring options to ``submit a ``Contrary Exercise Advice'' to
the Exchange as specified in paragraph (d) . . . .'' (which, like the
counterpart NOM paragraph (d) rule, specifies various requirements
associated with submitting Contrary Exercise Advices).
    Finally, the Exchange proposes to make a number of nonsubstantive
revisions to Chapter VIII which are designed simply to facilitate
administration of the rules. References to ``NOM'' and to ``Nasdaq
Regulation'' are proposed to be replaced with references to ``the
Exchange.'' \3\ Substituting the word ``Exchange'' for NOM in various
places will provide the Exchange flexibility to determine the most
appropriate department or individual within the Exchange to oversee the
particular rule, and will also facilitate the incorporation by
reference of the amended rule into the rules of NOM's affiliated
exchanges in the future.\4\
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    \3\ The changes are proposed to be made in Section 1(b), (d),
(e), (f), (g), (h), (i) (k) and (l), as well as in Section 2(a) and
(b), of Chapter VIII. The Exchange notes that Chapter 11, Exercises
and Deliveries, of the ISE Rulebook likewise uses the generic term
``the Exchange'' throughout that chapter.
    \4\ Recently, the Exchange added a shell structure to its
Rulebook with the purpose of improving efficiency and readability
and to align its rules closer to those of its five sister exchanges,
Nasdaq BX, Inc.; Nasdaq PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC;
and Nasdaq MRX, LLC (``Affiliated Exchanges''). See Securities
Exchange Act Release No. 82175 (November 29, 2017), 82 FR 57494
(December 5, 2017) (SR-NASDAQ-2017-125). The changes proposed herein
are being made in connection with that effort, to align the NOM
rules with those of the Affiliated Exchanges more closely.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\6\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest,
by identifying the correct entity to which option holders must deliver
Contrary Exercise Advices and by substituting the word ``Exchange'' for
NOM in various places which will enable the amended rule to be
incorporated by reference into rules of affiliated exchanges in the
future, which should enhance the ability of members of NOM and
affiliated exchanges to understand and comply with a uniform set of
rules across the exchanges.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule changes will
apply equally to all option holders desiring to exercise options under
the NOM rules. Further, the proposed changes merely correct an
incorrect reference to OCC and conform the wording of the rule more
closely to that of a NOM rule for the sake of administrative
convenience. The Exchange does not intend for or expect that such
changes will have any impact on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-NASDAQ-2018-024 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NASDAQ-2018-024. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NASDAQ-2018-024, and should be submitted
on or before April 26, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Eduardo Aleman,
Assistant Secretary.
[FR Doc. 2018-06912 Filed 4-4-18; 8:45 am]
 BILLING CODE 8011-01-P