Standard.............................                  38.1139                  22.9862                  22.2004
----------------------------------------------------------------------------------------------------------------
                                  Model Years 2017 to 2020 Mandatory Standards
----------------------------------------------------------------------------------------------------------------
Standard.............................                  36.6405                  22.1022                  21.8075
----------------------------------------------------------------------------------------------------------------

    (4) Regulatory subcategory standards for model years 2021 and
later. The mandatory fuel consumption standards for heavy-duty
vocational vehicles are given in the following table:
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BILLING CODE 4910-59-C
    (5) Subfamily standards. Manufacturers may specify a family
emission limit (FEL) in terms of fuel consumption for each vehicle
subfamily. The FEL may not be less than the result of fuel consumption
modeling from 40 CFR 1037.520. The FELs is the fuel consumption
standards for the vehicle subfamily instead of the standards specified
in paragraph (b)(3) and (4) of this section and can be used for
calculating fuel consumption credits in accordance with Sec.  535.7.
    (6) Alternate standards for custom chassis vehicles for model years
2021 and later. Manufacturers may elect to certify certain vocational
vehicles to the alternate standards for custom chassis vehicles
specified in this paragraph (b)(6) instead of the standards specified
in paragraph (b)(4) of this section. Note that, although these
standards were established for custom chassis vehicles, manufacturers
may apply these provisions to any qualifying vehicle even though these
standards were established for custom chassis vehicles. For example,
large diversified vehicle manufacturers may certify vehicles to the
refuse hauler standards of this section as long as the manufacturer
ensures that those vehicles qualify as refuse haulers when placed into
service. GEM simulates vehicle operation for each type of vehicle based
on an assigned vehicle service class, independent of the vehicle's
actual characteristics, as shown in Table 10 of this section; however,
standards apply for the vehicle's useful life based on its actual
characteristics as specified in paragraph (b)(10) of this section.
Vehicles certified to these alternative standards must use engines
certified to requirements under paragraph (d) of this section and 40
CFR part 1036 for the appropriate model year, except that motor homes
and emergency vehicles may use engines certified with the loose-engine
provisions of paragraph

(a)(7) of this section and 40 CFR 1037.150(m). This also applies for
vehicles meeting standards under paragraphs (a)(6)(iv) through (vi) of
this section. The fuel consumption standards for custom chassis
vehicles are given in the following table:

                           Table 10--Phase 2 Custom Chassis Fuel Consumption Standards
                                           [Gallon per 1,000 ton-mile]
----------------------------------------------------------------------------------------------------------------
               Vehicle type \1\                  Assigned vehicle service class       MY 2021         MY 2027
----------------------------------------------------------------------------------------------------------------
School Bus....................................  MHD Vehicle.....................         28.5855         26.6208
Motor Home....................................  MHD Vehicle.....................         22.3969         22.2004
Coach Bus.....................................  HHD Vehicle.....................         20.6287         20.1375
Other bus.....................................  HHD Vehicle.....................         29.4695         28.0943
Refuse hauler.................................  HHD Vehicle.....................         30.7466         29.2731
Concrete mixer................................  HHD Vehicle.....................         31.3360         31.0413
Mixed-use vehicle.............................  HHD Vehicle.....................         31.3360         31.0413
Emergency Vehicle.............................  HHD Vehicle.....................         31.8271         31.3360
----------------------------------------------------------------------------------------------------------------
\1\ Vehicle types are generally defined in Sec.   535.3. ``Other bus'' includes any bus that is not a school bus
  or a coach bus. A ``mixed-use vehicle'' is one that meets at least one of the criteria specified in 40 CFR
  1037.631(a)(1) or at least one of the criteria in 40 CFR 1037.631(a)(2), but not both.

    (i) Manufacturers may generate or use fuel consumption credits for
averaging to demonstrate compliance with the alternative standards as
described in Sec.  535.7(c). This requires that manufacturers specify a
Family Emission Limit (FEL) for fuel consumption for each vehicle
subfamily. The FEL may not be less than the result of emission modeling
as described in this paragraph (b). These FELs serve as the fuel
consumption standards for the vehicle subfamily instead of the
standards specified in this paragraph (b)(6). Manufacturers may only
use fuel consumption credits for vehicles certified to the optional
standards in this paragraph (b)(6) as specified in Sec.  535.7(c)(6)
through (8) and you may not bank or trade fuel consumption credits from
any vehicles certified under this paragraph (b)(6).
    (ii) For purposes of this paragraph (b)(6), each separate vehicle
type identified in Table 10 of this section is in a separate averaging
set.
    (iii) For purposes of emission and fuel consumption modeling under
40 CFR 1037.520, consider motor homes and coach buses to be subject to
the Regional duty cycle, and consider all other vehicles to be subject
to the Urban duty cycle.
    (iv) Emergency vehicles are deemed to comply with the standards of
this paragraph (b)(6) if manufacturers use tires with TRRL at or below
8.4 kg/ton (8.7 g/ton for model years 2021 through 2026).
    (v) Concrete mixers are deemed to comply with the standards of this
paragraph (b)(6) if manufacturers use tires with TRRL at or below 7.1
kg/ton (7.6 g/ton for model years 2021 through 2026).
    (vi) Motor homes are deemed to comply with the standards of this
paragraph (b)(6) if manufacturers use the following technologies:
    (A) Tires with TRRL at or below 6.0 kg/ton (6.7 g/ton for model
years 2021 through 2026).
    (B) Automatic tire inflation systems or tire pressure monitoring
systems with wheels on all axles.
    (C) Tire pressure monitoring systems must use low pressure warning
and malfunction telltales in clear view of the driver as specified in
S4.3 and S4.4 of 49 CFR 571.138.
    (vii) Small business manufacturers using the alternative standards
for custom chassis vehicles under this paragraph (b)(6) may use fuel
consumption credits subject to the unique provisions in Sec.
535.7(a)(9).
    (7) Advanced, innovative and off-cycle technologies. For vocational
vehicles subfamilies subject to Phase 1 standards, manufacturers must
create separate vehicle subfamilies for vehicles that contain advanced
or innovative technologies and group those vehicles together in a
vehicle subfamily if they use the same advanced or innovative
technologies. Manufacturers may generate separate credit allowances for
advanced and innovative technologies as specified in Sec.  535.7(f)(1)
and (2). For vehicle subfamilies subject to Phase 2 standards,
manufacturers may generate separate credit allowances for off-cycle
technologies in accordance with Sec.  535.7(f)(2). Separate credit
allowances for advanced technology vehicles cannot be generated but
instead manufacturers may use the credit multipliers specified in Sec.
535.7(f)(1)(iv) through model year 2026.
    (8) Certifying across service classes. A manufacturer may
optionally certify vocational vehicle subfamilies to the standards and
useful life applicable to a heavier vehicle service class (such as MHD
vocational vehicles instead of LHD vocational vehicles). Provisions
related to generating fuel consumption credits apply as follows:
    (i) If a manufacturer certifies all its vehicles from a given
vehicle service class in a given model year to the standards and useful
life that applies for a heavier vehicle service class, it may generate
credits as appropriate for the heavier service class.
    (ii) Class 8 hybrid vehicles with light or medium heavy-duty
engines may be certified to compression-ignition standards for the
Heavy HDV service class. A manufacturer may generate and use credits as
allowed for the Heavy HDV service class.
    (iii) Except as specified in paragraphs (b)(8)(i) and (ii) of this
section, a manufacturer may not generate credits with the vehicle. If
you include lighter vehicles in a subfamily of heavier vehicles with an
FEL below the standard, exclude the production volume of lighter
vehicles from the credit calculation. Conversely, if a manufacturer
includes lighter vehicles in a subfamily with an FEL above the
standard, it must include the production volume of lighter vehicles in
the credit calculation.
    (9) Off-road exemptions. This section provides an exemption for
heavy-duty vocational vehicle subfamilies, including vocational
tractors that are intended to be used extensively in off-road
environments such as forests, oil fields, and construction sites from
the fuel consumption standards in this paragraph (b). Vehicle exempted
by this part do not comply with vehicle standards in this paragraph
(b), but the engines in these vehicles must meet the engine
requirements of paragraph (d) of this section. Note that manufacturers
may not include these exempted vehicles in any credit calculations
under this part.

    (i) Qualifying criteria. Vocational vehicles intended for off-road
use are exempt without request, subject to the provisions of this
section, if they are primarily designed to perform work off-road (such
as in oil fields, mining, forests, or construction sites), and they
meet at least one of the criteria of paragraph (b)(9)(i)(A) of this
section and at least one of the criteria of paragraph (b)(9)(i)(B) of
this section. See paragraph (b)(6) of this section for alternate
standards that apply for vehicles meeting only one of these sets of
criteria.
    (A) The vehicle must have affixed components designed to work
inherently in an off-road environment (such as hazardous material
equipment or off-road drill equipment) or be designed to operate at low
speeds such that it is unsuitable for normal highway operation.
    (B) The vehicle must meet one of the following criteria:
    (1) Have an axle that has a gross axle weight rating (GAWR) at or
above 29,000 pounds.
    (2) Have a speed attainable in 2.0 miles of not more than 33 mi/hr.
    (3) Have a speed attainable in 2.0 miles of not more than 45 mi/hr,
an unloaded vehicle weight that is not less than 95 percent of its
gross vehicle weight rating, and no capacity to carry occupants other
than the driver and operating crew.
    (4) Have a maximum speed at or below 54 mi/hr. A manufacturer may
consider the vehicle to be appropriately speed-limited if engine speed
at 54 mi/hr is at or above 95 percent of the engine's maximum test
speed in the highest available gear. A manufacturer may alternatively
limit vehicle speed by programming the engine or vehicle's electronic
control module in a way that is tamper-resistant.
    (ii) Tractors. The provisions of this section may apply for
tractors only if each tractor qualifies as a vocational tractor under
paragraph (c)(9) of this section or is granted approval for the
exemption as specified in paragraph (b)(9)(iii) of this section.
    (iii) Preliminary Approval before Certification. If a manufacturer
has unusual circumstances where it may be questionable whether its
vehicles qualify for the off-road exemption of this part, the
manufacturer may send the agencies information before finishing its
application for certification (see 40 CFR 1037.205) for the applicable
vehicles and ask for a preliminary informal approval. The agencies will
review the request and make an appropriate determination in accordance
with 40 CFR 1037.210. The agencies will generally not reverse a
decision where they have given a manufacturer preliminary approval,
unless the agencies find new information supporting a different
decision. However, the agencies will normally not grant relief in cases
where the vehicle manufacturer has credits or can otherwise comply with
the applicable standards.
    (iv) Recordkeeping and reporting. (A) A manufacturer must keep
records to document that its exempted vehicle configurations meet all
applicable requirements of this section. Keep these records for at
least eight years after you stop producing the exempted vehicle model.
The agencies may review these records at any time.
    (B) A manufacturer must also keep records of the individual
exempted vehicles you produce, including the vehicle identification
number and a description of the vehicle configuration.
    (C) Within 90 days after the end of each model year, manufacturers
must send to EPA a report as specified in Sec.  535.8(g)(7) and EPA
will make the report available to NHTSA.
    (v) Compliance. (A) Manufacturers producing vehicles meeting the
off-road exemption criteria in paragraph (b)(9)(i) of this section or
that are granted a preliminary approval comply with the standards of
this part.
    (B) In situations where a manufacturer would normally ask for a
preliminary approval subject to paragraph (b)(9)(iii) of this section
but introduces its vehicle into U.S. commerce without seeking approval
first from the agencies, those vehicles violate compliance with the
fuel consumption standards of this part and the EPA provisions under 40
CFR 1068.101(a)(1).
    (C) If at any time, the agencies find new information that
contradicts a manufacturer's use of the off-road exemption of this
part, the manufacturers vehicles will be determined to be non-compliant
with the regulations of this part and the manufacturer may be liable
for civil penalties.
    (10) Useful life. The following useful life values apply for the
standards of this section:
    (i) 110,000 miles or 10 years, whichever comes first, for
vocational LHD vehicles certified to Phase 1 standards.
    (ii) 150,000 miles or 15 years, whichever comes first, for
vocational LHD vehicles certified to Phase 2 standards.
    (iii) 185,000 miles or 10 years, whichever comes first, for
vocational MHD vehicles for Phase 1 and 2.
    (iv) 435,000 miles or 10 years, whichever comes first, for
vocational HHD vehicles for Phase 1 and 2.
    (v) For Phase 1 credits calculated based on a useful life of
110,000 miles, multiply any banked credits carried forward for use into
the Phase 2 program by 1.36. For Phase 1 credit deficits generated
based on a useful life of 110,000 miles multiply the credit deficit by
1.36, if offsetting the shortfall with Phase 2 credits.
    (11) Recreational vehicles. Recreational vehicles manufactured
after model year 2020 must comply with the fuel consumption standards
of this section. Manufacturers producing these vehicles may also
certify to fuel consumption standards from 2014 through model year
2020. Manufacturers may earn credits retroactively for early compliance
with fuel consumption standards. Once selected, a manufacturer cannot
reverse the decision and the manufacturer must continue to comply for
each subsequent model year for all the vehicles it manufacturers in
each regulatory subcategory for a given model year.
    (12) Loose engines. Manufacturers may certify certain spark-
ignition engines along with chassis-certified heavy-duty vehicles where
there are identical engines used in those vehicles as described in 40
CFR 86.1819(k)(8) and 40 CFR 1037.150(m). Vehicles in which those
engines are installed are subject to standards under this part.
    (13) Compliance with standards. A manufacturer complies with the
standards of this part as described in Sec.  535.10.
    (c) Truck tractors. Each manufacturer building truck tractors,
except vocational tractors or vehicle constructed in accordance with
Sec.  571.7(e), with a GVWR above 26,000 pounds shall comply with the
fuel consumption standards in this paragraph (c) expressed in gallons
per 1000 ton-miles. Manufacturers must apply the fuel consumption
standards in this paragraph (c) to the same vehicles using the same
options used to comply with EPA in 40 CFR 1037.106. Engines used in
heavy-duty truck tractors vehicles shall comply with the standards in
paragraph (d) of this section. Each vehicle must be manufactured to
comply for its full useful life. Standards apply to the vehicle
subfamilies within each of the tractor vehicle regulatory subcategories
in accordance with Sec.  535.4 and 40 CFR 1037.230 and based upon the
applicable modeling and testing specified in Sec.  535.6. Determine the
vehicles in each regulatory subcategory in accordance with 40 CFR
1037.140.

    (1) Mandatory standards. For model years 2016 and later, each
manufacturer's truck tractor subfamilies must comply with the fuel
consumption standards in paragraph (c)(3) of this section.
    (i) Based on the roof height and the design of the cab, the truck
tractor category is divided into subcategories as described in Sec.
535.4. The standards that apply to each regulatory subcategory are
shown in paragraphs (c)(2) and (3) of this section, each with its own
assigned standard.
    (A) When calculating a vehicle's roof height and trailer's length
should be determined from nominal design specifications, as provided in
40 CFR 1037.140.
    (B) Specify design values for roof height and trailer length to the
nearest inch.
    (ii) For purposes of certifying vehicles to fuel consumption
standards, manufacturers must divide their product lines in each
regulatory subcategory into vehicles subfamilies that have similar
emissions and fuel consumption features, as specified by EPA in 40 CFR
1037.230, and these subfamilies will be subject to the applicable
standards. Each vehicle subfamily is limited to a single model year.
    (iii) Standards for truck tractor engines are given in paragraph
(d) of this section.
    (2) Voluntary compliance. (i) For model years 2013 through 2015, a
manufacturer may choose voluntarily to comply early with the fuel
consumption standards provided in paragraph (c)(3) of this section. For
example, a manufacturer may choose to comply early in order to begin
accumulating credits through over-compliance with the applicable
standards. A manufacturer choosing early compliance must comply with
all the vehicles and engines it manufacturers in each regulatory
category for a given model year.
    (ii) A manufacturer must declare its intent to voluntarily comply
with fuel consumption standards and identify its plans to comply before
it submits its first application for a certificate of conformity for
the respective model year as specified in Sec.  535.8; and, once
selected, the decision cannot be reversed and the manufacturer must
continue to comply for each subsequent model year for all the vehicles
and engines it manufacturers in each regulatory category for a given
model year.
    (3) Regulatory subcategory standards. The fuel consumption
standards for truck tractors, except for vocational tractors, are given
in the following table:
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BILLING CODE 4910-59-C

    (4) Subfamily standards. Manufacturers may generate or use fuel
consumption credits for averaging, banking, and trading as described in
Sec.  535.7(c). This requires that manufacturers calculate a credit
quantity if they specify a family emission limit (FEL) that is
different than the standard specified in this section. The FEL may not
be less than the result of emission and fuel consumption modeling from
40 CFR 1037.520. These FELs serve as the emission standards for the
specific vehicle subfamily instead of the standards specified in
paragraph (c)(2) of this section.
    (5) Alternate standards for tractors at or above 120,000 pounds
GCWR. Manufacturers may certify tractors at or above 120,000 pounds
GCWR to the following fuel consumption standards in the following
table:

   Table 12--Alternate Fuel Consumption Standards for Tractors Above 120,000 Pounds GCWR for 2021 MY and Later
                                          [Gallons per 1,000 ton-miles]
----------------------------------------------------------------------------------------------------------------
                                                                    Model years     Model years     Model years
                     Regulatory subcategory                          2021-2023       2024-2026    2026 and later
----------------------------------------------------------------------------------------------------------------
Heavy Class 8 Low-Roof Day Cab..................................         5.25540         4.99018         4.80354
Heavy Class 8 Low-Roof Sleeper Cab..............................         4.62672         4.37132         4.16503
Heavy Class 8 Mid-Roof Day Cab..................................         5.46169         5.18664         4.99018
Heavy Class 8 Mid-Roof Sleeper Cab..............................         4.87230         4.60707         4.39096
Heavy Class 8 High-Roof Day Cab.................................         5.35363         5.04912         4.77407
Heavy Class 8 High-Roof Sleeper Cab.............................         4.62672         4.34185         4.02750
----------------------------------------------------------------------------------------------------------------

    (6) Advanced, innovative and off-cycle technologies. For tractors
subject to Phase 1 standards, manufacturers must create separate
vehicle subfamilies for vehicles that contain advanced or innovative
technologies and group those vehicles together in a vehicle subfamily
if they use the same advanced or innovative technologies. 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 but instead manufacturers may use the
credit multipliers specified in Sec.  535.7(f)(1)(iv) through model
year 2026.
    (7) Certifying across service classes. Manufacturers may certify
Class 7 tractors to Class 8 tractors standards as follows:
    (i) A manufacturer may optionally certify 4x2 tractors with heavy
heavy-duty engines to the standards and useful life for Class 8
tractors, with no restriction on generating or using fuel consumption
credits within the Class 8 averaging set.
    (ii) A manufacturer may optionally certify a Class 7 tractor to the
standards and useful life applicable to Class 8 tractors. Credit
provisions apply as follows:
    (A) If a manufacturer certifies all of its Class 7 tractors to
Class 8 standards, it may use these Heavy HDV credits without
restriction.
    (B) This paragraph (c)(7)(ii)(B) applies if a manufacturer
certifies some Class 7 tractors to Class 8 standards under this
paragraph (c)(7)(ii) but not all of them. If a manufacturer includes
Class 7 tractors in a subfamily of Class 8 tractors with an FEL below
the standard, exclude the production volume of Class 7 tractors from
the credit calculation. Conversely, if a manufacturer includes Class 7
tractors in a subfamily of Class 8 tractors with an FEL above the
standard, it must include the production volume of Class 7 tractors in
the credit calculation.
    (8) Expanded families. Manufacturers may combine dissimilar
vehicles into single vehicle subfamilies for applying standards and for
testing in special circumstances as follows:
    (i) For a Phase 1 vehicle model that straddles a roof-height, cab
type, or GVWR division, manufacturers can include all the vehicles in
the same vehicle family if it certifies the vehicle family to the more
stringent standard. For roof height, the manufacturer must certify to
the taller roof standard. For cab-type and GVWR, the manufacturers must
certify to the numerically lower standard.
    (ii) For a Phase 2 vehicle model that includes a range of GVWR
values that straddle weight classes, manufacturers may include all the
vehicles in the same vehicle family if it certifies the vehicle family
to the numerically lower fuel consumption standard from the affected
service classes. Vehicles that are optionally certified to a more
stringent standard under this paragraph are subject to useful-life and
all other provisions corresponding to the weight class with the
numerically lower fuel consumption standard. For a Phase 2 tractor
model that includes a range of roof heights that straddle
subcategories, a manufacturer may include all the vehicles in the same
vehicle family if it certifies the vehicle family to the appropriate
subcategory as follows:
    (A) A manufacturer may certify mid-roof tractors as high-roof
tractors, but it may not certify high-roof tractors as mid-roof
tractors.
    (B) For tractor families straddling the low-roof/mid-roof division,
a manufacturer may certify the family based on the primary roof-height
as long as no more than 10 percent of the tractors are certified to the
otherwise inapplicable subcategory. For example, if 95-percent of the
tractors in the family are less than 120 inches tall, and the other 5
percent are 122 inches tall, a manufacturer may certify the tractors as
a single family in the low-roof subcategory.
    (C) Determine the appropriate aerodynamic bin number based on the
actual roof height if the CdA value is measured. However,
use the GEM input for the bin based on the standards to which the
manufacturer certifies. For example, of a manufacturer certifies as mid
roof tractors some low-roof tractors with a measured CdA
value of 4.2 m\2\, it qualifies as Bin IV; and must input into GEM the
mid-roof Bin IV value of 5.85 m\2\.
    (9) Vocational tractors. Tractors meeting the definition of
vocational tractors in 49 CFR 523.2 must comply with requirements for
heavy-duty vocational vehicles specified in paragraphs (b) and (d) of
this section. For Phase 1, Class 7 and Class 8 tractors certified or
exempted as vocational tractors are limited in production to no more
than 21,000 vehicles in any three consecutive model years. If a
manufacturer is determined as not applying this allowance in good faith
by

EPA in its applications for certification in accordance with 40 CFR
1037.205 and 1037.610, a manufacturer must comply with the tractor fuel
consumption standards in paragraph (c)(3) of this section. No
production limit applies for vocational tractors subject to Phase 2
standards.
    (10) Small business manufacturers converting to mid roof or high
roof configurations. Small manufacturers are to allowed convert low and
mid roof tractors to high roof configurations without recertification,
provided it is for the purpose of building a custom sleeper tractor or
conversion to a natural gas tractor as specified in 40 CFR 1037.150(r).
    (11) Useful life. The following useful life values apply for the
standards of this section:
    (i) 185,000 miles or 10 years, whichever comes first, for vehicles
at or below 33,000 pounds GVWR.
    (ii) 435,000 miles or 10 years, whichever comes first, for vehicles
above 33,000 pounds GVWR.
    (12) Conversion to high-roof configurations. Secondary vehicle
manufacturers that qualify as small manufacturers may convert low- and
mid-roof tractors to high-roof configurations without recertification
for the purpose of building a custom sleeper tractor or converting it
to run on natural gas, as follows:
    (i) The original low- or mid-roof tractor must be covered by a
valid certificate of conformity by EPA.
    (ii) The modifications may not increase the frontal area of the
tractor beyond the frontal area of the equivalent high-roof tractor
with the corresponding standard trailer. If a manufacturer cannot use
the original manufacturer's roof fairing for the high-roof tractor, use
good engineering judgment to achieve similar or better aerodynamic
performance.
    (iii) The agencies may require that these manufacturers submit
annual production reports as described in Sec.  535.8 and 40 CFR
1037.250 indicating the original roof height for requalified vehicles.
    (13) Compliance with standards. A manufacturer complies with the
standards of this part as described in Sec.  535.10.
    (d) Heavy-duty engines. Each manufacturer of heavy-duty engines
shall comply with the fuel consumption standards in this paragraph (d)
expressed in gallons per 100 horsepower-hour. Manufacturers must apply
the fuel consumption standards in this paragraph (d) to the same
engines using the same options used to comply with EPA in 40 CFR
1036.108. Each engine must be manufactured to comply for its full
useful life, expressed in service miles, operating hours, or calendar
years, whatever comes first. The provisions of this part apply to all
new 2014 model year and later heavy-duty engines fueled by conventional
and alternative fuels and manufactured for use in heavy-duty tractors
or vocational vehicles. Standards apply to the engine and powertrain
families and sub-families based upon the primary intended service
classes within each of the engine regulatory subcategories as described
inSec.  535.4 and based upon the applicable modeling and testing
specified in Sec.  535.6.
    (1) Mandatory standards. Manufacturers of heavy-duty engine
families shall comply with the mandatory fuel consumption standards in
paragraphs (d)(3) through (6) of this section for model years 2017 and
later for compression-ignition engines and for model years 2016 and
later for spark-ignition engines.
    (i) The heavy-duty engine regulatory category is divided into six
regulatory subcategories, five compression-ignition subcategories and
one spark-ignition subcategory, as shown in Table 14 of this section.
    (ii) Separate standards exist for engine families manufactured for
use in heavy-duty vocational vehicles and in truck tractors.
    (iii) For purposes of certifying engines to fuel consumption
standards, manufacturers must divide their product lines in each
regulatory subcategory into engine families. Fuel consumption standards
apply each model year to the same engine families used to comply with
EPA standards in 40 CFR 1036.108 and 40 CFR 1037.230. An engine family
is designated under the EPA program based upon testing specified in 40
CFR part 1036, subpart F, and the engine family's primary intended
service class. Each engine family manufactured for use in a heavy-duty
tractor or vocational vehicle must be certified to the primary intended
service class that it is designed for in accordance with 40 CFR
1036.108 and 1036.140.
    (2) Voluntary compliance. (i) For model years 2013 through 2016 for
compression-ignition engine families, and for model year 2015 for
spark-ignition engine families, a manufacturer may choose voluntarily
to comply with the fuel consumption standards provided in paragraphs
(d)(3) through (5) of this section. For example, a manufacturer may
choose to comply early in order to begin accumulating credits through
over-compliance with the applicable standards. A manufacturer choosing
early compliance must comply with all the vehicles and engines it
manufacturers in each regulatory category for a given model year except
in model year 2013 the manufacturer may comply with individual engine
families as specified in 40 CFR 1036.150(a)(2).
    (ii) A manufacturer must declare its intent to voluntarily comply
with fuel consumption standards and identify its plans to comply before
it submits its first application for a certificate of conformity for
the respective model year as specified in Sec.  535.8; and, once
selected, the decision cannot be reversed and the manufacturer must
continue to comply for each subsequent model year for all the vehicles
and engines it manufacturers in each regulatory category for a given
model year.
    (3) Regulatory subcategory standards. The primary fuel consumption
standards for heavy-duty engine families are given in the following
table:
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BILLING CODE 4910-59-C

    (4) Alternate subcategory standards. The alternative fuel
consumption standards for heavy-duty compression-ignition engine
families are as follows:
    (i) Manufacturers entering the voluntary program in model years
2014 through 2016, may choose to certify compression-ignition engine
families unable to meet standards provided in paragraph (d)(3) of this
section to the alternative fuel consumption standards of this paragraph
(d)(4).
    (ii) Manufacturers may not certify engines to these alternate
standards if they are part of an averaging set in which they carry a
balance of banked credits. For purposes of this section, manufacturers
are deemed to carry credits in an averaging set if they carry credits
from advance technology that are allowed to be used in that averaging
set in accordance with Sec.  535.7(d)(12).
    (iii) The emission standards of this section are determined as
specified by EPA in 40 CFR 1036.620(a) through (c) and should be
converted to equivalent fuel consumption values.
    (5) Alternate phase-in standards. Manufacturers have the option to
comply with EPA emissions standards for compression-ignition engine
families using an alternative phase-in schedule that correlates with
EPA's OBD standards. If a manufacturer chooses to use the alternative
phase-in schedule for meeting EPA standards and optionally chooses to
comply early with the NHTSA fuel consumption program, it must use the
same phase-in schedule beginning in model year 2013 for fuel
consumption standards and must remain in the program for each model
year thereafter until model year 2020. The fuel consumption standard
for each model year of the alternative phase-in schedule is provided in
Table 15 of this section. Note that engine families certified to these
standards are not eligible for early credits under Sec.  535.7.
BILLING CODE 4910-59-P
[GRAPHIC] [TIFF OMITTED] TP13SE22.006

BILLING CODE 4910-59-C
    (6) Alternative fuel conversions. Engines that have been converted
to operate on alternative fuels may demonstrate compliance with the
standards of this part or other alternative compliance approaches
allowed by EPA in 40 CFR 85.525.
    (7) Optional certification under this section. Manufacturers
certifying spark-ignition engines to the compression-ignition standards
for EPA must treat those engines as compression-ignition engines for
all the provisions of this part.
    (8) Advanced, innovative and off-cycle technologies. For engines
subject to Phase 1 standards, manufacturers must create separate engine
families for engines that contain advanced or innovative technologies
and group those engines together in an engine family if they use the
same advanced or innovative technologies. Manufacturers may generate
separate credit allowances for advanced and innovative technologies as
specified in Sec.  535.7(f)(1) and (2). For engines subject to Phase 2
standards, manufacturers may generate separate credits allowance for
off-cycle technologies in accordance with Sec.  535.7(f)(2). Credit
incentives for advanced technology engines do not apply during the
Phase 2 period.
    (9) Useful life. The exhaust emission standards of this section
apply for the full useful life, expressed in service miles, operating
hours, or calendar years, whichever comes first. The following useful
life values apply for the standards of this section:
    (i) 120,000 miles or 11 years, whichever comes first, for CI and SI
LHD engines certified to Phase 1 standards.

    (ii) 150,000 miles or 15 years, whichever comes first, for CI and
SI LHD and spark-ignition engines certified to Phase 2 standards.
    (iii) 185,000 miles or 10 years, whichever comes first, for CI MHD
engines certified to Phase 1 and for Phase 2.
    (iv) 435,000 miles or 10 years, whichever comes first, for CI HHD
engines certified to Phase 1 and for Phase 2.
    (v) For Phase 1 credits that manufacturers calculate based on a
useful life of 110,000 miles, multiply any banked credits that it
carries forward for use into the Phase 2 program by 1.36. For Phase 1
credit deficits that manufacturers generate based on a useful life of
110,000 miles multiply the credit deficit by 1.36, if offsetting the
shortfall with Phase 2 credits.
    (10) Loose engines. This paragraph (d)(10) describes alternate
emission and fuel consumption standards for loose engines certified
under. The standards of this paragraph (d) and 1036.108 do not apply
for loose engines certified under paragraph (a) of this section and 40
CFR 86.1819- 14(k)(8). The standards in 40 CFR 1036.150(j) apply for
the emissions and equivalent fuel consumption measured with the engine
installed in a complete vehicle consistent with the provisions of 40
CFR 86.1819-14(k)(8)(vi).
    (11) Alternate transition option for Phase 2 engine standards. (i)
Manufacturers may optionally elect to comply with the model year 2021
primary (Phase 2) vocational vehicle and tractor engine standards in
paragraph (d)(3) of this section beginning in model year 2020 (e.g.,
comply with the more stringent standards one year early). The model
year 2021 standard would apply to these manufacturers for model years
2020 through 2023. Manufacturers that voluntarily certify their engines
to model year 2021 standards early would then be eligible for less
stringent engine tractor standards in model years 2024 through 2026, as
follows:
    (A) 5.3242 gallons per 100 hp-hr for MHD vocational vehicle
engines.
    (B) 4.5874 gallons per 100 hp-hr for MHD tractor engines.
    (C) 5.0098 gallons per 100 hp-hr for HHD vocational vehicle
engines.
    (D) 4.3418 gallons per 100 hp-hr for HHD tractor engines.
    (ii) The primary standard in paragraph (d)(3) of this section
applies for all manufacturers in model year 2027 and later years.
    (iii) Manufacturers may apply these provisions separately for
medium heavy-duty engines and heavy heavy-duty engines. This election
applies to all engines in each segment. For example, if a manufacturer
elects this alternate option for its medium heavy-duty engines, all of
the manufacturer's medium heavy-duty vocational and tractor engines
must comply. Engine fuel consumption credits generated under Sec.
535.7(d) for manufacturers complying early with the model year 2021
standards follow the temporary extended credit life allowance in Sec.
535.7(d)(9).
    (12) Compliance with standards. A manufacturer complies with the
standards of this part as described in Sec.  535.10.

Sec.  535.6  Measurement and calculation procedures.

    This part describes the measurement and calculation procedures
manufacturers use to determine annual fuel consumption performance
results. Manufacturers use the fuel consumption results determined in
this part for calculating credit balances specified in Sec.  535.7 and
then determine whether they comply with standards as specified in Sec.
535.10. Manufacturers must use EPA emissions test results for deriving
NHTSA's fuel consumption performance rates. Consequently, manufacturers
conducting testing for certification or annual demonstration testing
and providing CO2 emissions data to EPA must also provide
equivalent fuel consumption results to NHTSA for all values. NHTSA and
EPA reserve the right to verify separately or in coordination the
results of any testing and measurement established by manufacturers in
complying with the provisions of this program and as specified in 40
CFR 1037.301 and Sec.  535.9. Any carry over data from the Phase 1
program may be carried into the Phase 2 only with approval from EPA and
by using good engineering judgment considering differences in testing
protocols between test procedures.
    (a) Heavy-duty pickup trucks and vans. This section describes the
method for determining the fuel consumption performance rates for test
groups and for fleets of complete heavy-duty pickup trucks and vans
each model year. The NHTSA heavy-duty pickup truck and van fuel
consumption performance rates correspond to the same requirements for
EPA as specified in 40 CFR 86.1819-14.
    (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, 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.
    (2) Vehicles in each fleet should be selected and divided into test
groups or subconfigurations according to EPA in 40 CFR 86.1819-14(d).
    (3) Use the EPA CO2 emissions test results for each test group, in
grams per mile, for the selected vehicles.
    (i) Use CO2 emissions test results for vehicles fueled
by conventional and alternative fuels, including dedicated and dual-
fueled (multi-fuel and flexible-fuel) vehicles using each fuel type as
specified in 40 CFR 86.1819-14(d)(10).
    (ii) Use CO2 emissions test results for dual-fueled
vehicles using a weighted average of the manufacturer's emission
results as specified in 40 CFR 600.510-12(k) for light-duty trucks.
    (iii) All electric vehicles are deemed to have zero emissions of
CO2, CH4, and N2O. No emission testing
is required for such electric vehicles. Assign the fuel consumption
test group result to a value of zero gallons per 100 miles in paragraph
(a)(4) of this section.
    (iv) Use CO2 emissions test results for cab-complete and
incomplete vehicles based upon the applicable complete sister vehicles
as determined in 40 CFR 1819-14(j)(2).
    (v) Use CO2 emissions test results for loose engines
using applicable complete vehicles as determined in 40 CFR 86.1819-
14(k)(8).
    (vi) Manufacturers can choose to analytically derive CO2
emission rates (ADCs) for test groups or subconfigurations. Use ADCs
for test groups or subconfigurations in accordance with 40 CFR 86.1819-
14 (d) and (g).
    (4) Calculate equivalent fuel consumption results for all test
groups, in gallons per 100 miles, from CO2emissions test
group results, in grams per miles, and round to the nearest 0.001
gallon per 100 miles.
    (i) Calculate the equivalent fuel consumption test group results as
follows for compression-ignition vehicles and alternative fuel
compression-ignition vehicles. CO2 emissions test group
result (grams per mile)/10,180 grams per gallon of diesel fuel) x
(10\2\) = Fuel consumption test group result (gallons per 100 mile).

    (ii) Calculate the equivalent fuel consumption test group results
as follows for spark-ignition vehicles and alternative fuel spark-
ignition vehicles. CO2emissions test group result (grams per
mile)/8,877 grams per gallon of gasoline fuel) x (10\2\) = Fuel
consumption test group result (gallons per 100 mile).
    (5) Calculate the fleet average fuel consumption result, in gallons
per 100 miles, from the equivalent fuel consumption test group results
and round the fuel consumption result to the nearest 0.001 gallon per
100 miles. Calculate the fleet average fuel consumption result using
the following equation.
[GRAPHIC] [TIFF OMITTED] TP13SE22.001

Where:
Fuel Consumption Test Group Resulti = fuel consumption performance
for each test group as defined in 49 CFR 523.4.
Volumei = production volume of each test group.

    (6) Compare the fleet average fuel consumption standard to the
fleet average fuel consumption performance. The fleet average fuel
consumption performance must be less than or equal to the fleet fuel
consumption standard to comply with standards in Sec.  535.5(a).
    (b) Heavy-duty vocational vehicles and tractors. This section
describes the method for determining the fuel consumption performance
rates for vehicle families of heavy-duty vocational vehicles and
tractors. The NHTSA heavy-duty vocational vehicle and tractor fuel
consumption performance rates correspond to the same requirements for
EPA as specified in 40 CFR 1037, subpart F.
    (1) Select vehicles and vehicle family configurations as specified
in 40 CFR 1037.150 and 1037.230 for vehicles that make up each of the
manufacturer's regulatory subcategories of vocational vehicles and
tractors. For the Phase 2 program, select powertrain, axle and
transmission families in accordance with 40 CFR 1037.231 and 1037.232.
    (2) Follow the EPA testing requirements in 40 CFR 1037.230 and
1037.501 to derive inputs for the Greenhouse gas Emissions Model (GEM).
    (3) Enter inputs into GEM, in accordance with 40 CFR 1037.520, to
derive the emissions and fuel consumption performance results for all
vehicles (conventional, alternative fueled and advanced technology
vehicles).
    (4) For Phase 1 and 2, all of the following GEM inputs apply for
vocational vehicles and other tractor regulatory subcategories, as
follows:
    (i) Model year and regulatory subcategory (see Sec.  535.3 and 40
CFR 1037.230).
    (ii) Coefficient of aerodynamic drag (CdA) or drag area,
as described in 40 CFR 1037.520(b), 40 CFR 1037.525, 1037.527 and
1037.528. Alternatively, manufacturers may use CdA values as
specified in 40 CFR 1037.530, 1037.532 or 1037.534 if used for
determining CO2 compliance for EPA. Manufacturers must use
the same compliance approach for determining CdA values in
GEM for the NHTSA and EPA programs.
    (iii) Steer and drive tire rolling resistance, as described in 40
CFR 1037.520(c).
    (iv) Vehicle speed limiters, as described in 40 CFR 1037.520(d)
(tractors only).
    (v) Vehicle weight reduction, as described in 40 CFR 1037.520(e)
(tractors only for Phase 1).
    (vi) Automatic engine shutdown systems, as described in 40 CFR
1037.660 (only for Phase 1 Class 8 sleeper cabs). For Phase 1, enter a
GEM input value of 5.0 g/ton-mile, or an adjusted value as specified in
40 CFR 1037.660.
    (5) For Phase 2 vehicles, the GEM inputs described in paragraphs
(b)(4)(i) through (v) of this section continue to apply. Note that the
provisions related to vehicle speed limiters and automatic engine
shutdown systems are available for vocational vehicles in Phase 2. The
additional GEM inputs that apply for vocational vehicles and other
tractor regulatory subcategories for demonstrating compliance with
Phase 2 standards are as follows:
    (i) Engine characteristics. Enter information from the engine
manufacturer to describe the installed engine and its operating
parameters as described in 40 CFR 1036.503 and 1037.520(f).
    (ii) Vehicle information. Enter information in accordance with 40
CFR 1037.520(g) for the vehicle and its operating parameters including:
    (A) Transmission make, model and type;
    (B) Drive axle configuration;
    (C) Drive axle ratio, ka;
    (D) For Phase 2, GEM inputs associated with powertrain testing
include powertrain family, transmission calibration identifier, test
data from 40 CFR 1037.550 and 1037.551, and the powertrain test
configuration (dynamometer connected to transmission output or wheel
hub). Test Phase 1 hybrid systems according to 40 CFR 1037.555 to
determine GEM inputs.
    (iii) Idle-reduction technologies. Identify whether the
manufacturer's vehicle has qualifying idle- reduction technologies,
subject to the qualifying criteria in 40 and 1037.660 and enter values
for stop start and neutral idle technologies as specified in 40 CFR
1037.520(h).
    (iv) Axle and transmission efficiency. Manufacturers may use axle
efficiency maps as described in 40 CFR 1037.560 and transmission
efficiency maps as described in 40 CFR 1037.565 to replace the default
values in GEM.
    (v) Additional reduction technologies. Enter input values in GEM as
follows to characterize the percentage CO2 emission
reduction corresponding to certain technologies and vehicle
configurations, or enter 0 as specified in 40 CFR 1037.520(j):
    (A) Intelligent controls
    (B) Accessory load
    (C) Tire-pressure systems
    (D) Extended-idle reduction
    (E) Additional GEM inputs may apply as follows:
    (1) Enter 1.7 and 0.9, respectively, for school buses and coach
buses that have at least seven available forward gears.
    (2) If the agencies approve an off-cycle technology under Sec.
535.7(f) and 40 CFR 1037.610 in the form of an improvement factor,
enter the improvement factor expressed as a percentage reduction in
CO2 emissions. (Note: In the case of approved off-cycle
technologies whose benefit is quantified as a g/ton-mile credit, apply
the credit to the GEM result, not as a GEM input value.)
    (3) Manufacturers may use values to characterize torque converters
as inputs to GEM as specified in the procedure defined in 40 CFR
1037.570.
    (4) Vocational vehicle manufacturers may optionally use values for
neutral coasting in GEM as in 40 CFR 1037.520

    (vi) Vehicles with hybrid power take-off (PTO). For vocational
vehicles, determine the delta PTO emission result of the manufacturer's
engine and hybrid power take-off system as described in 40 CFR
1037.540.
    (vii) Aerodynamic improvements for vocational vehicles. For
vocational vehicles certified using the Regional duty cycle,
enter[Delta]CdAvalues to account for using rear fairings and
a reduced minimum frontal area as specified in 40 CFR 1037.520(m) and
1037.527.
    (viii) Alternate fuels. For fuels other than those identified in
GEM, perform the simulation by identifying the vehicle as being diesel-
fueled if the engine is subject to the compression-ignition standard,
or as being gasoline-fueled if the engine is subject to the spark-
ignition standards. Correct the engine or powertrain fuel map for mass-
specific net energy content as described in 40 CFR 1036.535(b).
    (ix) Custom Chassis Vehicles. A simplified version of GEM applies
for custom chassis vehicle subject Sec.  535.5(b)(6) in accordance with
40 CFR 1037.520(a)(2)(ii).
    (6) In unusual circumstances, manufacturers may ask EPA to use
weighted average results of multiple GEM runs to represent special
technologies for which no single GEM run can accurately reflect.
    (7) From the GEM results, select the CO2 family
emissions level (FEL) and equivalent fuel consumption values for
vocational vehicle and tractor families in each regulatory subcategory
for each model year. Equivalent fuel consumption FELs are derived in
GEM and expressed to the nearest 0.0001 gallons per 1000 ton-mile. For
families containing multiple subfamilies, identify the FELs for each
subfamily.
    (8) The fuel consumption of electric vehicles (as defined in Sec.
1037.801) are deemed to be zero. No emission testing is required for
electric vehicles. Use good engineering judgment to apply other
requirements of this part to electric vehicles.
    (c) [Reserved]
    (d) Heavy-duty engines. This section describes the method for
determining equivalent fuel consumption family certification level
(FCL) values for engine and powertrain families and subfamilies of
heavy-duty truck tractors and vocational vehicles. The NHTSA heavy-duty
engine fuel consumption FCLs are determined from the EPA FCLs tested in
accordance with 40 CFR 1036, subpart F. Each engine and powertrain
family must use the same primary intended service class as designated
for EPA in accordance with 40 CFR 1036.140.
    (1) Manufacturers must select emission-data engines representing
the tested configuration of each engine family specified in 40 CFR
1036.501 for engines in heavy-duty truck tractors and vocational
vehicles that make up each of the manufacturer's regulatory
subcategories.
    (2) Standards in Sec.  535.5(d) apply to the CO2
emissions rates for each emissions-data engine in an engine or
powertrain family subject to the procedures and equipment specified in
40 CFR part 1036, subpart F. Determine equivalent fuel consumptions
rates using CO2 emissions rates in grams per hp-hr measured
to at least one more decimal place than that of the applicable EPA
standard in 40 CFR 1036.108.
    (i) Use the CO2 emissions test results for engines
running on each fuel type for conventional, dedicated, multi -fueled
(dual-fuel, and flexible-fuel) engines as specified in 40 CFR part
1036, subpart F.
    (ii) Use the CO2 emissions result for multi-fueled
engines using the same weighted fuel mixture emission results as
specified in 40 CFR 1036.235 and 40 CFR part 1036, subpart F.
    (iii) Use the CO2 emissions test results for hybrid
engines as described in 40 CFR 1036.525.
    (iv) All electric vehicles are deemed to have zero emissions of
CO2 and zero fuel consumption. No emission or fuel
consumption testing is required for such electric vehicles.
    (3) Use the CO2 emissions test results for medium and
heavy heavy-duty engines certified as tractor and other line haul
engine families using the steady-state duty cycle specified in Sec.
1036.501 (referred to as the Supplementary Emissions Test, or SET) and
as both tractor and vocational engines using the steady-state duty
cycle and the transient duty cycle (sometimes referred to as the FTP
engine cycle)-for each model year. Use the CO2 emissions
test results for all other engines (including engines meeting spark-
ignition standards) using the appropriate transient duty cycle
specified in 40 CFR 1036.501.
    (i) If a manufacturer certifies an engine family for use both as a
vocational engine and as a tractor engine, the manufacturer must split
the family into two separate subfamilies in accordance with 40 CFR
1036.230. The manufacturer may assign the numbers and configurations of
engines within the respective subfamilies at any time prior to the
submission of the end-of-year report required by 40 CFR 1036.730 and
Sec.  535.8. The manufacturer must track into which type of vehicle
each engine is installed, although EPA may allow the manufacturer to
use statistical methods to determine this for a fraction of its
engines.
    (ii) The following engines are excluded from the engine and
powertrain families and subfamilies used to determine fuel consumption
FCL values and the benefit for these engines is determined as an
advanced technology credit under the ABT provisions provided in Sec.
535.7(e); these provisions apply only for the Phase 1 program:
    (A) Engines certified as hybrid engines or power packs.
    (B) Engines certified as hybrid engines designed with PTO
capability and that are sold with the engine coupled to a transmission.
    (C) Engines with Rankine cycle waste heat recovery.
    (4) Manufacturers generating CO2 emissions rates to
demonstrate compliance to EPA vehicle standards for model years 2021
and later, using engine fuel maps determined in accordance with 40 CFR
1036.535 and 1036.540 or engine powertrain results in accordance with
40 CFR 1036.630 and 40 CFR 1037.550 for each engine configuration, must
use the same compliance pathway and model years for certifying under
the NHTSA program. Manufacturers may omit providing equivalent fuel
consumption FCLs under this section if all of its engines will be
installed in vehicles that are certified based on powertrain testing as
described in 40 CFR 1037.550.
    (5) Calculate equivalent fuel consumption values from the emissions
CO2 FCLs levels for certified engines, in gallons per 100
hp-hr and round each fuel consumption value to the nearest 0.0001
gallon per 100 hp-hr.
    (i) Calculate equivalent fuel consumption FCL values for
compression-ignition engines and alternative fuel compression-ignition
engines. CO2 FCL value (grams per hp-hr)/10,180 grams per
gallon of diesel fuel) x (10\2\) = Fuel consumption FCL value (gallons
per 100 hp-hr).
    (ii) Calculate equivalent fuel consumption FCL values for spark-
ignition engines and alternative fuel spark-ignition engines.
CO2 FCL value (grams per hp-hr)/8,877 grams per gallon of
gasoline fuel) x (10\2\) = Fuel consumption FCL value (gallons per 100
hp-hr).
    (iii) Manufacturers may carryover fuel consumption data from a
previous model year if allowed to carry over emissions data for EPA in
accordance with 40 CFR 1036.235.
    (iv) If a manufacturer uses an alternate test procedure under 40
CFR 1065.10

and subsequently the data is rejected by EPA, NHTSA will also reject
the data.

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

    (a) General provisions. After the end of each model year,
manufacturers must comply with the fuel consumption standards in Sec.
535.5 for averaging, banking and trading credits. Manufacturers comply
with standards if the sum of averaged, banked and traded credits
generate a ``zero'' credit balance or a credit surplus within an
averaging set of vehicles or engines. Manufacturers fail to comply with
standards if the sum of the credit flexibilities generate a credit
deficit (or shortfall) in an averaging set. Credit shortfalls must be
offset by banked or traded credits within three model years after the
shortfall is incurred. These processes are hereafter referenced as the
NHTSA ABT credit program. The following provisions apply to all fuel
consumption credits.
    (1) Credits (or fuel consumption credits (FCCs)). Credits in this
part mean a calculated weighted value representing the difference
between the fuel consumption performance and the standard of a vehicle
or engine family or fleet within a particular averaging set. Positive
credits represent cases where a vehicle or engine family or fleets
perform better than the applicable standard (the fuel consumption
performance is less than the standard) whereas negative credits
represent underperforming cases. The value of a credit is calculated
according to paragraphs (b) through (e) of this section. FCCs are only
considered earned or useable for averaging, banking or trading after
EPA and NHTSA have verified the information in a manufacturer's final
reports required in Sec.  535.8. Types of FCCs include the following:
    (i) Conventional credits. Credits generated by vehicle or engine
families or fleets containing conventional vehicles (i.e., gasoline,
diesel and alternative fueled vehicles).
    (ii) Early credits. Credits generated by vehicle or engine families
or fleets produced for model year 2013. Early credits are multiplied by
an incentive factor of 1.5 times.
    (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)
and incentivized under this ABT credit program in paragraph (f)(1) of
this section and by EPA under 40 CFR 86.1819-14(d)(7), 1036.615, and
1037.615.
    (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 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 EPA
under 40 CFR 86.1819-14(d)(13), 1036.610, and 1037.610.
    (2) Averaging. Averaging is the summing of a manufacturer's
positive and negative FCCs for engines or vehicle families or fleets
within an averaging set. The principle averaging sets are defined in
Sec.  535.4.
    (i) A credit surplus occurs when the net sum of the manufacturer's
generated credits for engines or vehicle families or fleets within an
averaging set is positive (a zero-credit balance is when the sum equals
zero).
    (ii) A credit deficit occurs when the net sum of the manufacturer's
generated credits for engines or vehicle families or fleets within an
averaging set is negative.
    (iii) Positive credits, other than advanced technology credits,
generated and calculated within an averaging set may only be used to
offset negative credits within the same averaging set.
    (iv) Manufacturers may certify one or more vehicle families (or
subfamilies) to an FEL above the applicable fuel consumption standard,
subject to any applicable FEL caps and other provisions allowed by EPA
in 40 CFR parts 1036 and 1037, if the manufacturer shows in its
application for certification to EPA that its projected balance of all
FCC transactions in that model year is greater than or equal to zero or
that a negative balance is allowed by EPA under 40 CFR 1036.745 and
1037.745.
    (v) If a manufacturer certifies a vehicle family to an FEL that
exceeds the otherwise applicable standard, it must obtain enough FCC to
offset the vehicle family's deficit by the due date of its final report
required in Sec.  535.8. The emission credits used to address the
deficit may come from other vehicle families that generate FCCs in the
same model year (or from the next three subsequent model years), from
banked FCCs from previous model years, or from FCCs generated in the
same or previous model years that it obtained through trading.
    (vi) Manufacturers may certify a vehicle or engine family using an
FEL (as described in Sec.  535.6) below the fuel consumption standard
(as described in Sec.  535.5) and choose not to generate conventional
fuel consumption credits for that family. Manufacturers do not need to
calculate fuel consumption credits for those families and do not need
to submit or keep the associated records described in Sec.  535.8 for
these families. Manufacturers participating in NHTSA's FCC program must
provide reports as specified in Sec.  535.8.
    (3) Banking. Banking is the retention of surplus FCC in an
averaging set by the manufacturer for use in future model years for the
purpose of averaging or trading.
    (i) Surplus credits may be banked by the manufacturer for use in
future model years, or traded, given the restriction that the credits
have an expiration date of five model years after the year in which the
credits are generated. For example, banked credits earned in model year
2014 may be utilized through model year 2019. Surplus credits will
become banked credits unless a manufacturer contacts NHTSA to expire
its credits.
    (ii) Surplus credits become earned or usable banked FCCs when the
manufacturer's final report is approved by both agencies. However, the
agencies may revoke these FCCs at any time if they are unable to verify
them after reviewing the manufacturer's reports or auditing its
records.
    (iii) Banked FCC retain the designation from the averaging set and
model year in which they were generated.
    (iv) Banked credits retain the designation of the averaging set in
which they were generated.
    (4) Trading. Trading is a transaction that transfers banked family
regulatory subcategory or averaging set fuel consumption credits.
Tractor, vocational vehicle and engine manufacturers may trade credits
generated for vehicle or engine families or subfamilies while
manufacturers of heavy-duty pickup trucks and vans certified as
complete vehicles may trade credit credits generated for averaging
sets. A manufacturer may use traded FCCs for

averaging, banking, or further trading transactions.
    (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, 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 can be traded across different
averaging sets.
    (iii) The agencies may revoke traded FCCs at any time if they are
unable to verify them after reviewing the manufacturer's reports or
auditing its records.
    (iv) If a negative FCC balance results from a transaction, both the
buyer and seller are liable, except in cases the agencies deem to
involve fraud. See Sec.  535.9 for cases involving fraud. EPA also may
suspend, revoke or void the certificates of all vehicle families
participating in a trade that results in a manufacturer having a
negative balance of emission credits. See 40 CFR 1037.745 and Sec.
535.3(j).
    (v) Manufacturers with deficits or projecting deficits before or
during a production model year may not trade credits until its
available credits exceed the deficit. Manufacturers with a deficit may
not trade credits if the deadline to offset that credit deficit has
passed.
    (5) Credit deficit (or credit shortfall). A credit shortfall or
deficit occurs when the sum of the manufacturer's generated credits for
engines or vehicle families or fleets within an averaging set is
negative. Credit shortfalls must be offset by an available credit
surplus within three model years after the shortfall was incurred. If
the shortfall cannot be offset, the manufacturer is liable for civil
penalties as discussed in Sec.  535.9.
    (6) FCC credit plan. (i) Each model year manufacturers submit
credit plan in their certificates of conformity as required in 40 CFR
1036.725(b)(2) and 40 CFR 1037.725(b)(2). The plan is required to
contain equivalent fuel consumption information in accordance Sec.
535.8(c). The plan must include:
    (A) Detailed calculations of projected emission and fuel
consumption credits (positive or negative) based on projected U.S.-
directed production volumes. The agencies may require a manufacturer to
include similar calculations from its other engine or vehicle families
to project its net credit balances for the model year. If a
manufacturer projects negative emission and/or fuel consumption credits
for a family, it must state the source of positive emission and/or fuel
consumption credits it expects to use to offset the negative credits
demonstrating how it plans to resolve any credit deficits that might
occur for a model year within a period of up to three model years after
that deficit has occurred.
    (B) Actual emissions and fuel consumption credit balances, credit
transactions, and credit trades.
    (i) Manufacturers are required to provide updated credit plans
after receiving their final verified reports from EPA and NHTSA after
the end of each model year.
    (ii) The agencies may determine that a manufacturer's plan is
unreasonable or unrealistic based on a consideration of past and
projected use of specific technologies, the historical sales mix of its
vehicle models, subsequent failure to follow any submitted plans, and
limited expected access to traded credits.
    (iii) The agencies may also consider the plan unreasonable if the
manufacturer's credit deficit increases from one model year to the
next. The agencies may require that the manufacturers must send interim
reports describing its progress toward resolving its credit deficit
over the course of a model year.
    (iv) If NHTSA determines that a manufacturers plan is unreasonable
or unrealistic, the manufacturer is deemed as not comply with fuel
consumption standards as specified in Sec.  535.10(c) and the
manufacturer may be liable for civil penalties.
    (7) Revoked credits. NHTSA may revoke fuel consumption credits if
unable to verify any information after auditing reports or records or
conducting confirmatory testing. In the cases where EPA revokes
emissions CO2 credits, NHTSA will revoke the equivalent
amount of fuel consumption credits.
    (8) Transition to Phase 2 standards. The following provisions allow
for enhanced use of fuel consumption credits from Phase 1 tractors and
vocational vehicles for meeting the Phase 2 standards:
    (i) Fuel consumption credits a manufacturer generates for light and
medium heavy-duty vocational vehicles in model years 2018 through 2021
may be used through model year 2027, instead of being limited to a
five-year credit life as specified in this part.
    (ii) The manufacturer may use the off-cycle provisions of paragraph
(f) of this section to apply technologies to Phase 1 vehicles as
follows:
    (A) A manufacturer may apply an improvement factor of 0.988 for
tractors and vocational vehicles with automatic tire inflation systems
on all axles.
    (B) For vocational vehicles with automatic engine shutdown systems
that conform with 40 CFR 1037.660, a manufacturer may apply an
improvement factor of 0.95.
    (C) For vocational vehicles with stop-start systems that conform
with 40 CFR 1037.660, a manufacturer may apply an improvement factor of
0.92.
    (D) For vocational vehicles with neutral-idle systems conforming
with 40 CFR 1037.660, manufacturers may apply an improvement factor of
0.98. Manufacturers may adjust this improvement factor if we approve a
partial reduction under 40 CFR 1037.660(a)(2); for example, if the
manufacturer's design reduces fuel consumption by half as much as
shifting to neutral, it may apply an improvement factor of 0.99.
    (9) Credits for small business manufacturers. Small manufacturers
may generate fuel consumption credits for natural gas-fueled vocational
vehicles as follows:
    (i) Small manufacturers may certify their vehicles instead of
relying on the exemption of Sec.  535.3.
    (ii) Use Phase 1 GEM to determine a fuel consumption level for
vehicle, then multiply this value by the engine's FCL for fuel
consumption and divide by the engine's applicable fuel consumption
standard.
    (iii) Use the value determined in paragraph (a)(ii) of this section
in the credit equation specified in paragraph (c) of this section in
place of the term (Std -FEL)
    (iv) The following provisions apply uniquely to small businesses
under the custom-chassis standards of Sec.  535.5(b)(6):
    (A) Manufacturers may use fuel consumption credits generated under
paragraph (c) of this section, including banked or traded credits from
any averaging set. Such credits remain subject to other limitations
that apply under this part.
    (B) Manufacturers may produce up to 200 drayage tractors in a given
model year to the standards described in Sec.  535.5(b)(6) for ``other
buses''. Treat these drayage tractors as being in their own averaging
set. This limit applies with respect to vehicles produced by the parent
manufacturer and its owned subordinate companies.
    (10) Certifying non-gasoline engines. A manufacturer producing non-
gasoline engines complying with model year 2021 or later medium heavy-
duty spark-ignition standards may not generate fuel consumption
credits. Only manufacturers producing gasoline engines certifying to
spark-ignition standards can generate fuel

consumption credits under paragraph (d) of this section.
    (11) Unless the regulations explicitly allow it, manufacturers may
not calculate Phase 1 fuel consumption credits more than once for
compliance. For example, if a manufacturer generates Phase 1 fuel
consumption credits for a given hybrid vehicle under this part, no one
may generate fuel consumption credits for the associated hybrid engine
under 40 CFR part 1036. However, Phase 1 credits could be generated for
identical engines used in vehicles that did not generate engine
credits.
    (b) ABT provisions for heavy-duty pickup trucks and vans. (1)
Calculate fuel consumption credits in a model year for one fleet of
conventional heavy-duty pickup trucks and vans and if designated by the
manufacturer another consisting of advance technology vehicles for the
averaging set as defined in Sec.  535.4. Calculate credits for each
fleet separately using the following equation:

Total MY Fleet FCC (gallons) = (Std-Act) x (Volume) x (UL) x (10\2\)

Where:

Std = Fleet average fuel consumption standard (gal/100 mile).
Act = Fleet average actual fuel consumption value (gal/100 mile).
Volume = the total U.S.-directed production of vehicles in the
regulatory subcategory.
UL = the useful life for the regulatory subcategory.

    The useful life value for heavy- pickup trucks and vans
manufactured for model years 2013 through 2020 is equal to the 120,000
miles. The useful life for model years 2021 and later is equal to
150,000 miles.
    (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)(7). 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.
    (3) Adjust the fuel consumption performance for subconfigurations
with innovative technology. A manufacturer is eligible to increase the
fuel consumption performance of heavy-duty pickup trucks and vans in
accordance with procedures established by EPA set forth in 40 CFR part
600. The eligibility of a manufacturer to increase its fuel consumption
performance through use of an off-cycle technology requires an
application request made to EPA and NHTSA in accordance with 40 CFR
86.1869-12 and an approval granted by the agencies. For off-cycle
technologies that are covered under 40 CFR 86.1869-12, NHTSA will
collaborate with EPA regarding NHTSA's evaluation of the specific off-
cycle technology to ensure its impact on fuel consumption and the
suitability of using the off-cycle technology to adjust fuel
consumption performance. NHTSA will provide its views on the
suitability of the technology for that purpose to EPA. NHTSA will apply
the criteria in paragraph (f)(2) of this section in granting or denying
off- cycle requests.
    (4) Fuel consumption credits may be generated for vehicles
certified in model year 2013 to the model year 2014 standards in Sec.
535.5(a). If a manufacturer chooses to generate CO2 emission
credits under EPA's provisions in 40 CFR part 86, it may also
voluntarily generate early credits under the NHTSA fuel consumption
program. To do so, a manufacturer must certify its entire U.S.-directed
production volume of vehicles in its fleet. The same production volume
restrictions specified in 40 CFR 1037.150(a)(2) relating to when test
groups are certified apply to the NHTSA early credit provisions.
Credits are calculated as specified in paragraph (b)(3) of this section
relative to the fleet standard that would apply for model year 2014
using the model year 2013 production volumes. Surplus credits generated
under this paragraph (b)(4) are available for banking or trading.
Credit deficits for an averaging set prior to model year 2014 do not
carry over to model year 2014. These credits may be used to show
compliance with the standards of this part for 2014 and later model
years. Once a manufacturer opts into the NHTSA program, they must stay
in the program for all of the optional model years and remain
standardized with the same implementation approach being followed to
meet the EPA CO2 emission program.
    (5) Calculate the averaging set credit value by summing together
the fleet credits for conventional and advanced technology vehicles
including any adjustments for innovative technologies. Manufacturers
may sum conventional and innovative technology credits before adding
any advanced technology credits in each averaging set.
    (6) For credits that manufacturers calculate based on a useful life
of 120,000 miles, multiply any banked credits carried forward for use
in model year 2021 and later by 1.25. For credit deficits that a
manufacturer calculates based on a useful life of 120,000 miles and
that it offsets with credits originally earned in model year 2021 and
later, it multiplies the credit deficit by 1.25.
    (c) ABT provisions for vocational vehicles and tractors. (1)
Calculate the fuel consumption credits in a model year for each
participating family or subfamily consisting of conventional vehicles
in each averaging set (as defined in Sec.  535.4) using the equation in
this section. Each designated vehicle family or subfamily has a
``family emissions limit'' (FEL) that is compared to the associated
regulatory subcategory standard. An FEL that falls below the regulatory
subcategory standard creates ``positive credits,'' while fuel
consumption level of a family group above the standard creates a
``negative credits.'' The value of credits generated for each family or
subfamily in a model year is calculated as follows and must be rounded
to nearest whole number:

Vehicle Family FCC (gallons) = (Std-FEL) x (Payload) x (Volume) x (UL)
x (10\3\)

Where:

Std = the standard for the respective vehicle family regulatory
subcategory (gal/1000 ton-mile).
FEL = family emissions limit for the vehicle family (gal/1000 ton-
mile).
Payload = the prescribed payload in tons for each regulatory
subcategory as shown in the following table:

------------------------------------------------------------------------
               Regulatory subcategory                   Payload (tons)
------------------------------------------------------------------------
Vocational LHD Vehicles.............................                2.85
Vocational MHD Vehicles.............................                5.60
Vocational HHD Vehicles.............................                 7.5
MDH MHD Tractors....................................               12.50
HHD Tractors, other than heavy-haul Tractors........               19.00
Heavy-haul Tractors.................................               43.00
------------------------------------------------------------------------

Volume = the number of U.S.-directed production volume of vehicles
in the corresponding vehicle family.
UL = the useful life for the regulatory subcategory (miles) as shown
in the following table:

------------------------------------------------------------------------
        Regulatory subcategory                     UL (miles)
------------------------------------------------------------------------
LHD Vehicles..........................  110,000 (Phase 1).
                                        150,000 (Phase 2).
Vocational MHD Vehicles and tractors    185,000.
 at or below 33,000 pounds GVWR.
Vocation HHD Vehicles and tractors at   435,000.
 or above 33,000 pounds GVWR.
------------------------------------------------------------------------

    (i) Calculate the value of credits generated in a model year for
each family or subfamily consisting of vehicles with advanced
technology vehicles in each averaging set using the equation above and
the guidelines provided in paragraph (f)(1) of this section.
Manufacturers may generate credits for advanced technology vehicles
using incentives specified in paragraph (f)(1) of this section.
    (ii) Calculate the value of credits generated in a model year for
each family or subfamily consisting of vehicles with off-cycle
technology vehicles in each averaging set using the equation above and
the guidelines provided in paragraph (f)(2) of this section.
    (2) Manufacturers must sum all negative and positive credits for
each vehicle family within each applicable averaging set to obtain the
total credit balance for the model year before rounding. The sum of
fuel consumptions credits must be rounded to the nearest gallon.
Calculate the total credits generated in a model year for each
averaging set using the following equation:

Total averaging set MY credits = [Sigma] Vehicle family credits within
each averaging set

    (3) Manufacturers can sum conventional and innovative technology
credits before adding any advanced technology credits in each averaging
set.
    (4) If a manufacturer chooses to generate CO2 emission
credits under EPA provisions of 40 CFR 1037.150(a), it may also
voluntarily generate early credits under the NHTSA fuel consumption
program as follows:
    (i) Fuel consumption credits may be generated for vehicles
certified in model year 2013 to the model year 2014 standards in Sec.
535.5(b) and (c). To do so, a manufacturer must certify its entire
U.S.-directed production volume of vehicles. The same production volume
restrictions specified in 40 CFR 1037.150(a)(1) relating to when test
groups are certified apply to the NHTSA early credit provisions.
Credits are calculated as specified in paragraph (c)(11) of this
section relative to the standards that would apply for model year 2014.
Surplus credits generated under this paragraph (c)(4) may be increased
by a factor of 1.5 for determining total available credits for banking
or trading. For example, if a manufacturer has 10 gallons of surplus
credits for model year 2013, it may bank 15 gallons of credits. Credit
deficits for an averaging set prior to model year 2014 do not carry
over to model year 2014. These credits may be used to show compliance
with the standards of this part for 2014 and later model years. Once a
manufacturer opts into the NHTSA program they must stay in the program
for all of the optional model years and remain standardized with the
same implementation approach being followed to meet the EPA
CO2 emission program.
    (ii) A tractor manufacturer may generate fuel consumption credits
for the number of additional SmartWay designated tractors (relative to
its MY 2012 production), provided that credits are not generated for
those vehicles under paragraph (c)(4)(i) of this section. Calculate
credits for each regulatory sub-category relative to the standard that
would apply in model year 2014 using the equations in paragraph (c)(2)
of this section. Use a production volume equal to the number of
verified model year 2013 SmartWay tractors minus the number of verified
model year 2012 SmartWay tractors. A manufacturer may bank credits
equal to the surplus credits generated under this paragraph multiplied
by 1.50. A manufacturer's 2012 and 2013 model years must be equivalent
in length. Once a manufacturer opts into the NHTSA program they must
stay in the program for all of the optional model years and remain
standardized with the same implementation approach being followed to
meet the EPA CO2 emission program.
    (5) If a manufacturer generates credits from vehicles certified for
advanced technology in accordance with paragraph (e)(1) of this
section, a multiplier of 1.5 can be used, but this multiplier cannot be
used on the same credits for which the early credit multiplier is used.
    (6) For model years 2012 and later, manufacturers may generate or
use fuel consumption credits for averaging to demonstrate compliance
with the alternative standards as described in Sec.  535.5(b)(6) of
this part. Manufacturers can specify a Family Emission Limit (FEL) for
fuel consumption for each vehicle subfamily. The FEL may not be less
than the result of emissions and fuel consumption modeling as described
in 40 CFR 1037.520 and Sec.  535.6. These FELs serve as the fuel
consumption standards for the vehicle subfamily instead of the
standards specified in this Sec.  535.5(b)(6). Manufacturers may not
use averaging for motor homes, coach buses, emergency vehicles or
concrete mixers meeting standards under Sec.  535.5(b)(5).
    (7) Manufacturers may not use averaging for vehicles meeting
standards Sec.  535.5(b)(6)(iv) through (vi), and manufacturers may not
use fuel consumption credits for banking or trading for any vehicles
certified under Sec.  535.5(b)(6).
    (8) Manufacturers certifying any vehicles under Sec.  535.5(b)(6)
must consider each separate vehicle type (or group of vehicle types) as
a separate averaging set.
    (d) ABT provisions for heavy-duty engines. (1) Calculate the fuel
consumption credits in a model year for each participating family or
subfamily consisting of engines in each averaging set (as defined in
Sec.  535.4) using the equation in this section. Each designated engine
family has a ``family certification level'' (FCL) which is compared to
the associated regulatory subcategory standard. A FCL that falls below
the regulatory subcategory standard creates ``positive credits,'' while
fuel consumption level of a family group above the standard creates a
``credit shortfall.'' The value of credits generated in a model year
for each engine family or subfamily is calculated as follows and must
be rounded to nearest whole number:

Engine Family FCC (gallons) = (Std-FCL) x (CF) x (Volume) x (UL) x
(10\2\)

Where:

Std = the standard for the respective engine regulatory subcategory
(gal/100 hp-hr).
FCL = family certification level for the engine family (gal/100 hp-
hr).
CF= a transient cycle conversion factor in hp-hr/mile which is the
integrated total cycle horsepower-hour divided by the equivalent
mileage of the applicable test cycle. For engines subject to spark-
ignition heavy-duty standards, the equivalent mileage is 6.3 miles.
For engines subject to compression-ignition heavy-duty standards,
the equivalent mileage is 6.5 miles.
Volume = the number of engines in the corresponding engine family.
UL = the useful life of the given engine family (miles) as shown in
the following table:

------------------------------------------------------------------------
        Regulatory subcategory                     UL  (miles)
------------------------------------------------------------------------
SI and CI LHD Engines.................  120,000 (Phase 1).
                                        150,000 (Phase 2).
CI MHD Engines........................  185,000.
CI HHD Engines........................  435,000.
------------------------------------------------------------------------

    (i) Calculate the value of credits generated in a model year for
each family or subfamily consisting of engines with advanced technology
vehicles in each averaging set using the equation above and the
guidelines provided in paragraph (f)(1) of this section. Manufacturers
may generate credits for advanced technology vehicles using incentives
specified in paragraph (f)(1) of this section.
    (ii) Calculate the value of credits generated in a model year for
each family or subfamily consisting of engines with off-cycle
technology vehicles in each averaging set using the equation above and
the guidelines provided in paragraph (f)(2) of this section.
    (2) Manufacturers shall sum all negative and positive credits for
each engine family within the applicable averaging set to obtain the
total credit balance for the model year before rounding. The sum of
fuel consumptions credits should be rounded to the nearest gallon.
    Calculate the total credits generated in a model year for each
averaging set using the following equation:

Total averaging set MY credits = [Sigma] Engine family credits within
each averaging set

    (3) The provisions of this section apply to manufacturers utilizing
the compression-ignition engine voluntary alternate standard provisions
specified in Sec.  535.5(d)(4) as follows:
    (i) Manufacturers may not certify engines to the alternate
standards if they are part of an averaging set in which they carry a
balance of banked credits. For purposes of this section, manufacturers
are deemed to carry credits in an averaging set if they carry credits
from advance technology that are allowed to be used in that averaging
set.
    (ii) Manufacturers may not bank fuel consumption credits for any
engine family in the same averaging set and model year in which it
certifies engines to the alternate standards. This means a manufacturer
may not bank advanced technology credits in a model year it certifies
any engines to the alternate standards.
    (iii) Note that the provisions of paragraph (d)(10) of this section
apply with respect to credit deficits generated while utilizing
alternate standards.
    (4) Where a manufacturer has chosen to comply with the EPA
alternative compression-ignition engine phase-in standard provisions in
40 CFR 1036.150(e), and has optionally decided to follow the same path
under the NHTSA fuel consumption program, it must certify all of its
model year 2013 compression-ignition engines within a given averaging
set to the applicable alternative standards in Sec.  535.5(d)(5).
Engines certified to these standards are not eligible for early credits
under paragraph (d)(14) of this section. Credits are calculated using
the same equation provided in paragraph (d)(11) of this section.
    (5) If a manufacturer chooses to generate early CO2
emission credits under EPA provisions of 40 CFR 1036.150, it may also
voluntarily generate early credits under the NHTSA fuel consumption
program. Fuel consumption credits may be generated for engines
certified in model year 2013 (2015 for spark-ignition engines) to the
standards in Sec.  535.5(d). To do so, a manufacturer must certify its
entire U.S.-directed production volume of engines except as specified
in 40 CFR 1036.150(a)(2). Credits are calculated as specified in
paragraph (d)(11) of this section relative to the standards that would
apply for model year 2014 (2016 for spark-ignition engines). Surplus
credits generated under this paragraph (d)(3) may be increased by a
factor of 1.5 for determining total available credits for banking or
trading. For example, if a manufacturer has 10 gallons of surplus
credits for model year 2013, it may bank 15 gallons of credits. Credit
deficits for an averaging set prior to model year 2014 (2016 for spark-
ignition engines) do not carry over to model year 2014 (2016 for spark-
ignition engines). These credits may be used to show compliance with
the standards of this part for 2014 and later model years. Once a
manufacturer opts into the NHTSA program they must stay in the program
for all of the optional model years and remain standardized with the
same implementation approach being followed to meet the EPA
CO2 emission program.
    (6) Manufacturers may generate fuel consumption credits from an
engine family subject to spark-ignition standards for exchanging with
other engine families only if the engines in the family are gasoline-
fueled.
    (7) Engine credits generated for compression-ignition engines in
the 2020 and earlier model years may be used in model year 2021 and
later as follows:
    (i) For credit-generating engines certified to the tractor engine
standards in Sec.  535.5(d), you may use credits calculated relative to
the tractor engine standards.
    (ii) For credit-generating engines certified to the vocational
engine standards in Sec.  535.5(d), you may use credits calculated
relative to the following fuel consumption levels:
    (A) Medium Heavy-Duty Engines = 5.4813 gallons/100 hp-hr.
    (B) Heavy Heavy-Duty Engines = 5.1572 gallons/100 hp-hr.
    (C) To transfer Phase 1 credits for use in the Phase 2 fuel
consumption program, manufacturers must recalculate credit values for
the Phase 1 model years by substituting the standards in paragraphs
(d)(7)(ii)(A) and (B) of this section in the credit equation specified
in Sec.  535.5(d)(1).
    (8) Engine families manufacturers certify with a nonconformance
penalty under 40 CFR part 86, subpart L, and may not generate fuel
consumption credits.
    (9) Alternate transition option for Phase 2 engine standards. The
following provisions allow for enhanced generation and use of fuel
consumption credits for manufacturers complying

with engines standards in accordance with Sec.  535.7(d)(11):
    (i) If a manufacturer is eligible to certify all of its model year
2020 engines within the averaging set to the tractor and vocational
vehicle engine standards in Sec.  535.5(d)(11) and the requirements
applicable to model year 2021 engines, the banked and traded fuel
consumption credits generated for model year 2018 through 2024 engines
may be used through model year 2030 as specified in paragraph
(d)(9)(ii) of this section or through a five-year credit life,
whichever is later.
    (ii) Banked and traded fuel consumption credits generated under
this paragraph (d)(9) for model year 2018 through 2024 engines may be
used through model year 2030 with the extended credit life values shown
in the table:

------------------------------------------------------------------------
                                                     Credit life for
                                                  transition option for
                   Model year                        Phase 2  engine
                                                    standards  (years)
------------------------------------------------------------------------
2018...........................................                       12
2019...........................................                       11
2020...........................................                       10
2021...........................................                        9
2022...........................................                        8
2023...........................................                        7
2024...........................................                        6
2025 and later.................................                        5
------------------------------------------------------------------------

    (e) Additional credit provisions.
    (1) Advanced technology credits.
    (i) For the Phase 1 program, manufacturers of heavy-duty pickup
trucks and vans, vocational vehicles, tractors and the associated
engines showing improvements in CO2 emissions and fuel
consumption using hybrid vehicles with regenerative braking, vehicles
equipped with Rankine-cycle engines, electric vehicles and fuel cell
vehicles are eligible for advanced technology credits. Manufacturers
shall use sound engineering judgment to determine the performance of
the vehicle or engine with advanced technology. Advanced technology
credits for vehicles or engines complying with Phase 1 standards may be
increased by a 1.5 multiplier. Manufacturers may not apply this
multiplier in addition to any early-credit multipliers. The maximum
amount of credits a manufacturer may bring into the service class group
that contains the heavy-duty pickup and van averaging set is
5.89[middot]10\6\ gallons (for advanced technology credits based upon
compression-ignition engines) or 6.76[middot]10\6\ gallons (for
advanced technology credits based upon spark-ignition engines) per
model year as specified in 40 CFR part 86 for heavy-duty pickup trucks
and vans, 40 CFR 1036.740 for engines and 40 CFR 1037.740 for tractors
and vocational vehicles. The specified limit does not cap the amount of
advanced technology credits that can be used across averaging sets
within the same service class group. Advanced technology credits can be
used to offset negative credits in the same averaging set or other
averaging sets. A manufacturer must first apply advanced technology
credits to any deficits in the same averaging set before applying them
to other averaging.
    (A) Heavy-duty pickup trucks and vans. For advanced technology
systems (hybrid vehicles with regenerative braking, vehicles equipped
with Rankine-cycle engines and fuel cell vehicles), calculate fleet-
average performance rates consistent with good engineering judgment and
the provisions of 40 CFR 86.1819-14 and 86.1865.
    (B) Tractors and vocational vehicles. For advanced technology
system (hybrid vehicles with regenerative braking, vehicles equipped
with Rankine-cycle engines and fuel cell vehicles), calculate the
advanced technology credits as follows:
    (1) Measure the effectiveness of the advanced system by conducting
A to B testing a vehicle equipped with the advanced system and an
equivalent conventional system in accordance with 40 CFR 1037.615.
    (2) For purposes of this paragraph (e), a conventional vehicle is
considered to be equivalent if it has the same footprint, intended
vehicle service class, aerodynamic drag, and other relevant factors not
directly related to the advanced system powertrain. If there is no
equivalent vehicle, the manufacturer may create and test a prototype
equivalent vehicle. The conventional vehicle is considered Vehicle A,
and the advanced technology vehicle is considered Vehicle B.
    (3) The benefit associated with the advanced system for fuel
consumption is determined from the weighted fuel consumption results
from the chassis tests of each vehicle using the following equation:

Benefit (gallon/1000 ton mile) = Improvement Factor x GEM Fuel
Consumption Result_B

Where:

Improvement Factor = (Fuel Consumption_A-Fuel Consumption_B)/(Fuel
Consumption_A)

    Fuel Consumption Rates A and B are the gallons per 1000 ton-mile
of the conventional and advanced vehicles, respectively as measured
under the test procedures specified by EPA. GEM Fuel Consumption
Result B is the estimated gallons per 1000 ton-mile rate resulting
from emission modeling of the advanced vehicle as specified in 40
CFR 1037.520 and Sec.  535.6(b).

    (4) Calculate the benefit in credits using the equation in
paragraph (c) of this section and replacing the term (Std-FEL) with the
benefit.
    (5) For electric vehicles calculate the fuel consumption credits
using an FEL of 0 g/1000ton-mile.
    (C) Heavy-duty engines. This section specifies how to generate
advanced technology-specific fuel consumption credits for hybrid
powertrains that include energy storage systems and regenerative
braking (including regenerative engine braking) and for engines that
include Rankine-cycle (or other bottoming cycle) exhaust energy
recovery systems.
    (1) Pre-transmission hybrid powertrains are those engine systems
that include features that recover and store energy during engine
motoring operation but not from the vehicle wheels. These powertrains
are tested using the hybrid engine test procedures of 40 CFR part 1065
or using the post-transmission test procedures.
    (2) Post-transmission hybrid powertrains are those powertrains that
include features that recover and store energy from braking at the
vehicle wheels. These powertrains are tested by simulating the chassis
test procedure applicable for hybrid vehicles under 40 CFR 1037.550.
    (3) Test engines that include Rankine-cycle exhaust energy recovery
systems according to the test procedures specified in 40 CFR part 1036,
subpart F, unless EPA approves the manufacturer's alternate procedures.
    (D) Credit calculation. Calculate credits as specified in paragraph
(c) of this section. Credits generated from engines and powertrains
certified under this section may be used in other averaging sets as
described in 40 CFR 1036.740(d).
    (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 vocational and tractor 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.
    (D) Incentivized credits for vehicles equipped with advanced
technologies maintain the same credit flexibilities and restrictions as
conventional credits

specified in paragraph (a) of this section during the Phase 2 program.
    (E) For vocational vehicles and tractors subject to Phase 2
standards, create separate vehicle families if there is a credit
multiplier for advanced technology; group those vehicles together in a
vehicle family if they use the same multiplier.
    (F) For Phase 2 plug-in hybrid electric vehicles and for fuel cells
powered by any fuel other than hydrogen, calculate fuel consumption
credits using an FEL based on equivalent emission measurements from
powertrain testing. Phase 2 advanced-technology credits do not apply
for hybrid vehicles that have no plug-in capability.
    (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 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).
    (i) For model years 2013 through 2020, manufacturers may generate
innovative technology credits for introducing technologies that were
not in-common use for heavy-duty tractor, vocational vehicles or
engines before model year 2010 and that are not reflected in the EPA
specified test procedures. Upon identification and joint approval with
EPA, NHTSA will allow equivalent fuel consumption credits 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 fuel consumption credits depending upon
whether--
    (A) The technology has a direct impact upon reducing fuel
consumption performance; and
    (B) The manufacturer has provided sufficient information to make
sound engineering judgments on the impact of the technology in reducing
fuel consumption performance.
    (ii) For model years 2021 and later, 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 fuel consumption
credits 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 fuel consumption
credits depending upon whether--
    (A) The technology meets paragraph (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.
    (iii) The following provisions apply to all innovative and off-
cycle technologies:
    (A) Technologies found to be defective, or identified as a part of
NHTSA's safety defects program, and technologies that are not
performing as intended will have the values of approved off-cycle
credits removed from the manufacturer's credit balance.
    (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) (49 CFR part 571). 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.
    (C) Manufacturers requesting approval for innovative technology
credits are required to provide documentation in accordance with 40 CFR
86.1869-12, 1036.610, and 1037.610.
    (D) Credits will be accepted on a one-for-one basis expressed in
terms of gallons in comparison to those approved by EPA.
    (E) For the heavy-duty pickup trucks and vans, the average fuel
consumption will be calculated as a separate credit amount (rounded to
the nearest whole number) using the following equation:

Off-cycle FC credits = (CO2 Credit/CF) x 100 x Production x
VLM

Where:

CO2 Credits = the credit value in grams per mile
determined in 40 CFR 86.1869-12(c)(3), (d)(1), (d)(2) or (d)(3).
CF = conversion factor, which for spark-ignition engines is 8,887
and for compression-ignition engines is 10,180.
Production = the total production volume for the applicable category
of vehicles.
VLM = vehicle lifetime miles, which for 2b-3 vehicles shall be
150,000 for the Phase 2 program.

    The term (CO2 Credit/CF) should be rounded to the
nearest 0.0001

    (F) NHTSA will not approve innovative technology credits for
technology that 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.
    (iv) Manufacturers normally may not calculate off-cycle credits or
improvement factors under this section for technologies represented by
GEM, but the agencies may allow a manufacturer to do so by averaging
multiple GEM runs for special technologies for which a single GEM run
cannot accurately reflect in-use performance. For example, if a
manufacturer use an idle-reduction technology that is effective 80
percent of the time, the agencies may allow a manufacturer to run GEM
with the technology active and with it inactive, and then apply an 80%
weighting factor to calculate the off-cycle credit or improvement
factor. A may need to perform testing to establish proper weighting
factors or otherwise quantify the benefits of the special technologies.
    (vi) Carry-over Approval. Manufacturers may carry-over these
credits into future model years as described below:
    (A) For model years before 2021, manufacturers may continue to use
an approved improvement factor or credit for any appropriate engine or
vehicle family in future model years through 2020.
    (B) For model years 2021 and later, 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 and later engines and vehicle, even
if the agencies approve the improvement factor or credit for similar
engine and vehicle models before model year 2021.
    (C) The following restrictions also apply to manufacturers seeking
to continue to carryover the improvement factor (not the credit value)
if--
    (1) The FEL is generated by GEM or 5-cycle testing;
    (2) The technology is not changed or paired with any other off-
cycle technology;
    (3) The improvement factor only applies to approved vehicle or
engine families;

    (4) The agencies do not expect the technology to be incorporated
into GEM at any point during the Phase 2 program; and
    (D) The documentation to carryover credits that would primarily
justify the difference in fuel efficiency between real world and
compliance protocols is the same for both Phase 1 and Phase 2
compliance protocols. The agencies must approve the justification. If
the agencies do not approve the justification, the manufacturer must
recertify.

Sec.  535.8  Reporting and recordkeeping requirements.

    (a) General requirements. Manufacturers producing heavy-duty
vehicles and engines applicable to fuel consumption standards in Sec.
535.5, for each given model year, must submit the required information
as specified in paragraphs (b) through (h) of this section.
    (1) The information required by this part must be submitted by the
deadlines specified in this section and must be based upon all the
information and data available to the manufacturer 30 days before
submitting information.
    (2) Manufacturers must submit information electronically through
the EPA database system as the single point of entry for all
information required for this national program and both agencies will
have access to the information. In special circumstances, data may not
be able to be received electronically (i.e., during database system
development work). The agencies will inform manufacturer of the
alternatives can be used for submitting information. The format for the
required information will be specified by EPA in coordination with
NHTSA.
    (3) Manufacturers providing incomplete reports missing any of the
required information or providing untimely reports are considered as
not complying with standards (i.e., if good-faith estimates of U.S.-
directed production volumes for EPA certificates of conformity are not
provided) and are liable to pay civil penalties in accordance with 49
U.S.C. 32912.
    (4) Manufacturers certifying a vehicle or engine family using an
FEL or FCL below the applicable fuel consumption standard as described
in Sec.  535.5 may choose not to generate fuel consumption credits for
that family. In which case, the manufacturer is not required to submit
reporting or keep the associated records described in this part for
that family.
    (5) Manufacturers must use good engineering judgment and provide
comparable fuel consumption information to that of the information or
data provided to EPA under 40 CFR 86.1865, 1036.250, 1036.730, 1036.825
1037.250, 1037.730, and 1037.825.
    (6) Any information that must be sent directly to NHTSA. In
instances in which EPA has not created an electronic pathway to receive
the information, the information should be sent through an electronic
portal identified by NHTSA or through the NHTSA CAFE database (i.e.,
information on fuel consumption credit transactions). If hardcopy
documents must be sent, the information should be sent to the Associate
Administrator of Enforcement at 1200 New Jersey Avenue SE, NVS-200,
Office W45-306EOY, Washington, DC 20590.
    (b) Pre-model year reports. Manufacturers producing heavy-duty
pickup trucks and vans must submit reports in advance of the model year
providing early estimates demonstrating how their fleet(s) would comply
with GHG emissions and fuel consumption standards. Note, the agencies
understand that early model year reports contain estimates that may
change over the course of a model year and that compliance information
manufacturers submit prior to the beginning of a new model year may not
represent the final compliance outcome. The agencies view the necessity
for requiring early model reports as a manufacturer's good faith
projection for demonstrating compliance with emission and fuel
consumption standards.
    (1) Report deadlines. For model years 2013 and later, manufacturer
of heavy-duty pickup trucks and vans complying with voluntary and
mandatory standards must submit a pre-model year report for the given
model year as early as the date of the manufacturer's annual
certification preview meeting with EPA and NHTSA, or prior to
submitting its first application for a certificate of conformity to EPA
in accordance with 40 CFR 86.1819-14(d). For example, a manufacturer
choosing to comply in model year 2014 could submit its pre-model year
report during its precertification meeting which could occur before
January 2, 2013, or could provide its pre-model year report any time
prior to submitting its first application for certification for the
given model year.
    (2) Contents. Each pre-model year report must be submitted
including the following information for each model year.
    (i) A list of each unique subconfiguration in the manufacturer's
fleet describing the make and model designations, attribute based-
values (i.e., GVWR, GCWR, Curb Weight and drive configurations) and
standards;
    (ii) The emission and fuel consumption fleet average standard
derived from the unique vehicle configurations;
    (iii) The estimated vehicle configuration, test group and fleet
production volumes;
    (iv) The expected emissions and fuel consumption test group results
and fleet average performance;
    (v) If complying with MY 2013 fuel consumption standards, a
statement must be provided declaring that the manufacturer is
voluntarily choosing to comply early with the EPA and NHTSA programs.
The manufacturers must also acknowledge that once selected, the
decision cannot be reversed and the manufacturer will continue to
comply with the fuel consumption standards for subsequent model years
for all the vehicles it manufacturers in each regulatory category for a
given model year;
    (vi) If complying with MYs 2014, 2015 or 2016 fuel consumption
standards, a statement must be provided declaring whether the
manufacturer will use fixed or increasing standards in accordance with
Sec.  535.5(a). The manufacturer must also acknowledge that once
selected, the decision cannot be reversed and the manufacturer must
continue to comply with the same alternative for subsequent model years
for all the vehicles it manufacturers in each regulatory category for a
given model year;
    (vii) If complying with MYs 2014 or 2015 fuel consumption
standards, a statement must be provided declaring that the manufacturer
is voluntarily choosing to comply with NHTSA's voluntary fuel
consumption standards in accordance with Sec.  535.5(a)(4). The
manufacturers must also acknowledge that once selected, the decision
cannot be reversed and the manufacturer will continue to comply with
the fuel consumption standards for subsequent model years for all the
vehicles it manufacturers in each regulatory category for a given model
year;
    (viii) The list of Class 2b and 3 incomplete vehicles (cab-complete
or chassis complete vehicles) and the method used to certify these
vehicles as complete pickups and vans identifying the most similar
complete sister- or other complete vehicles used to derive the target
standards and performance test results;
    (ix) The list of Class 4 and 5 incomplete and complete vehicles and
the method use to certify these vehicles as complete pickups and vans
identifying the most similar complete or

sister vehicles used to derive the target standards and performance
test results;
    (x) List of loose engines included in the heavy-duty pickup and van
category and the list of vehicles used to derive target standards and
performance test results;
    (xi) Copy of any notices a vehicle manufacturer sends to the engine
manufacturer to notify the engine manufacturers that their engines are
subject to emissions and fuel consumption standards and that it intends
to use their engines in excluded vehicles;
    (xii) A fuel consumption credit plan as specified Sec.  535.7(a)
identifying the manufacturers estimated credit balances, planned credit
flexibilities (i.e., credit balances, planned credit trading,
innovative, advanced and early credits and etc.) and if needed a credit
deficit plan demonstrating how it plans to resolve any credit deficits
that might occur for a model year within a period of up to three model
years after that deficit has occurred; and
    (xiii) The supplemental information specified in paragraph (h) of
this section. [Note: NHTSA may also ask a manufacturer to provide
additional information, if necessary, to verify compliance with the
fuel consumption requirements of this regulation.]
    (c) Applications for certificate of conformity. Manufacturers
producing vocational vehicles, tractors and heavy-duty engines are
required to submit applications for certificates of conformity to EPA
in accordance with 40 CFR 1036.205 and 1037.205 in advance of
introducing vehicles for commercial sale. Applications contain early
model year information demonstrating how manufacturers plan to comply
with GHG emissions. For model years 2013 and later, manufacturers of
vocational vehicles, tractors and engine complying with NHTSA's
voluntary and mandatory standards must submit applications for
certificates of conformity in accordance through the EPA database
including both GHG emissions and fuel consumption information for each
given model year.
    (1) Submission deadlines. Applications are primarily submitted in
advance of the given model year to EPA but cannot be submitted any
later than December 31 of the given model year.
    (2) Contents. Each application for certificates of conformity
submitted to EPA must include the following equivalent fuel
consumption.
    (i) Equivalent fuel consumption values for emissions CO2
FCLs values used to certify each engine family in accordance with 40
CFR 1036.205(e). This provision applies only to manufacturers producing
heavy-duty engines.
    (ii) Equivalent fuel consumption values for emission CO2
data engines used to comply with emission standards in 40 CFR 1036.108.
This provision applies only to manufacturers producing heavy-duty
engines.
    (iii) Equivalent fuel consumption values for emissions
CO2 FELs values used to certify each vehicle families or
subfamilies in accordance with 40 CFR 1037.205(k). This provision
applies only to manufacturers producing vocational vehicles and
tractors.
    (iv) Report modeling results for ten configurations in terms of
CO2 emissions and equivalent fuel consumption results in
accordance with 40 CFR 1037.205(o). Include modeling inputs and
detailed descriptions of how they were derived. This provision applies
only to manufacturers producing vocational vehicles and tractors.
    (v) Credit plans including the fuel consumption credit plan
described in Sec.  535.7(a).
    (3) Additional supplemental information. Manufacturers are required
to submit additional information as specified in paragraph (h) of this
section for the NHTSA program before or at the same time it submits its
first application for a certificate of conformity to EPA. Under limited
conditions, NHTSA may also ask a manufacturer to provide additional
information directly to the Administrator, if necessary, to verify the
fuel consumption requirements of this regulation.
    (d) End of the Year (EOY) and Final reports. Heavy-duty vehicle and
engine manufacturers participating in the ABT program are required to
submit EOY and final reports containing information for NHTSA as
specified in paragraph (d)(2) of this section and in accordance with 40
CFR 86.1865, 1036.730, and 1037.730. Only manufacturers without credit
deficits may decide not to participate in the ABT or may waive the
requirement to send an EOY report. The EOY and final reports are used
to review a manufacturer's preliminary or final compliance information
and to identify manufacturers that might have a credit deficit for the
given model year. For model years 2013 and later, heavy-duty vehicle
and engine manufacturers complying with NHTSA's voluntary and mandatory
standards must submit EOY and final reports through the EPA database
including both GHG emissions and fuel consumption information for each
given model year.
    (1) Report deadlines. (i) For model year 2013 and later, heavy-duty
vehicle and engine manufacturers complying with NHTSA voluntary and
mandatory standards must submit EOY reports through the EPA database
including both GHG emissions and fuel consumption information within 90
days after the end of the given model year and no later than March 31
of the next calendar year.
    (ii) For model year 2013 and later, heavy-duty vehicle and engine
manufacturers complying with NHTSA voluntary and mandatory standards
must submit final reports through the EPA database including both GHG
emissions and fuel consumption information within 270 days after the
end of the given model year and no later than September 30 of the next
calendar year.
    (iii) A manufacturer may ask NHTSA and EPA to extend the deadline
of a final report by up to 30 days. A manufacturer unable to provide
and requesting to omit an emissions rate or fuel consumption value from
a final report must obtain approval from the agencies prior to the
submission deadline of its final report.
    (iv) If a manufacturer expects differences in the information
reported between the EOY and the final year report specified in 40 CFR
1036.730 and 1037.730, it must provide the most up-to-date fuel
consumption projections in its final report and identify the
information as preliminary.
    (v) If the manufacturer cannot provide any of the required fuel
consumption information, it must state the specific reason for the
insufficiency and identify the additional testing needed or explain
what analytical methods are believed by the manufacturer will be
necessary to eliminate the insufficiency and certify that the results
will be available for the final report.
    (2) Contents. Each EOY and final report must be submitted including
the following fuel consumption information for each model year. EOY
reports contain preliminary final estimates and final reports must
include the manufacturer's final compliance information.
    (i) Engine and vehicle family designations and averaging sets.
    (ii) Engine and vehicle regulatory subcategory and fuel consumption
standards including any alternative standards used.
    (iii) Engine and vehicle family FCLs and FELs in terms of fuel
consumption.
    (iv) Production volumes for engines and vehicles.
    (v) A summary as specified in paragraph (g)(7) of this section
describing the vocational vehicles and vocational tractors that were
exempted

as heavy-duty off-road vehicles. This applies to manufacturers
participating and not participating in the ABT program.
    (vi) A summary describing any advanced or innovative technology
engines or vehicles including alternative fueled vehicles that were
produced for the model year identifying the approaches used to
determinate compliance and the production volumes.
    (vii) A list of each unique subconfiguration included in a
manufacturer's fleet of heavy-duty pickup trucks and vans identifying
the attribute based-values (GVWR, GCWR, Curb Weight, and drive
configurations) and standards. This provision applies only to
manufacturers producing heavy-duty pickup trucks and vans.
    (viii) The fuel consumption fleet average standard derived from the
unique vehicle configurations. This provision applies only to
manufacturers producing heavy-duty pickup trucks and vans.
    (ix) The subconfiguration and test group production volumes. This
provision applies only to manufacturers producing heavy-duty pickup
trucks and vans.
    (x) The fuel consumption test group results and fleet average
performance. This provision applies only to manufacturers producing
heavy-duty pickup trucks and vans.
    (xi) Manufacturers may correct errors in EOY and final reports as
follows:
    (A) Manufacturers may correct any errors in their end-of-year
report when preparing the final report, as long as manufacturers send
us the final report by the time it is due.
    (B) If manufacturers or the agencies determine within 270 days
after the end of the model year that errors mistakenly decreased he
manufacturer's balance of fuel consumption credits, manufacturers may
correct the errors and recalculate the balance of its fuel consumption
credits. Manufacturers may not make any corrections for errors that are
determined more than 270 days after the end of the model year. If
manufacturers report a negative balance of fuel consumption credits,
NHTSA may disallow corrections under this paragraph (d)(2)(xi)(B).
    (C) If manufacturers or the agencies determine any time that errors
mistakenly increased its balance of fuel consumption credits,
manufacturers must correct the errors and recalculate the balance of
fuel consumption credits.
    (xii) Under limited conditions, NHTSA may also ask a manufacturer
to provide additional information directly to the Administrator, if
necessary, to verify the fuel consumption requirements of this
regulation.
    (e) Amendments to applications for certification. At any time, a
manufacturer modifies an application for certification in accordance
with 40 CFR 1036.225 and 1037.225, it must submit GHG emissions changes
with equivalent fuel consumption values for the information required in
paragraphs (b) through (e) and (h) of this section.
    (f) Confidential information. Manufacturers must submit a request
for confidentiality with each electronic submission specifying any part
of the for information or data in a report that it believes should be
withheld from public disclosure as trade secret or other confidential
business information. Information submitted to EPA should follow EPA
guidelines for treatment of confidentiality. Requests for confidential
treatment for information submitted to NHTSA must be filed in
accordance with the requirements of 49 CFR part 512, including
submission of a request for confidential treatment and the information
for which confidential treatment is requested as specified by part 512.
For any information or data requested by the manufacturer to be
withheld under 5 U.S.C. 552(b)(4) and 49 U.S.C. 32910(c), the
manufacturer shall present arguments and provide evidence in its
request for confidentiality demonstrating that--
    (1) The item is within the scope of 5 U.S.C. 552(b)(4) and 49
U.S.C. 32910(c);
    (2) The disclosure of the information at issue would cause
significant competitive damage;
    (3) The period during which the item must be withheld to avoid that
damage; and
    (4) How earlier disclosure would result in that damage.
    (g) Additional required information. The following additional
information is required to be submitted through the EPA database. NHTSA
reserves the right to ask a manufacturer to provide additional
information, if necessary, to verify the fuel consumption requirements
of this regulation.
    (1) Small businesses. For model years 2013 through 2020, vehicles