resources, including wetlands, in its Draft EIS.
9. Migratory Bird Treaty Act (MBTA), Bald and Golden Eagle Protection
Act (BGEPA), Executive Order 13186
    The MBTA (16 U.S.C. 703-712) provides for the protection of certain
migratory birds by making it illegal for anyone to ``pursue, hunt,
take, capture, kill, attempt to take, capture, or kill, possess, offer
for sale, sell, offer to barter, barter, offer to purchase, purchase,
deliver for shipment, ship, export, import, cause to be shipped,
exported, or imported, deliver for transportation, transport or cause
to be transported, carry or cause to be carried, or receive for
shipment, transportation, carriage, or export'' any migratory bird
covered under the statute.\939\
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    \939\ 16 U.S.C. 703(a).
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    The BGEPA (16 U.S.C. 668-668d) makes it illegal to ``take, possess,
sell, purchase, barter, offer to sell, purchase or barter, transport,
export or import'' any bald or golden eagles.\940\ Executive Order
13186, ``Responsibilities of Federal Agencies to Protect Migratory
Birds,'' helps to further the purposes of the MBTA by requiring a
Federal agency to develop a Memorandum of Understanding (MOU) with the
Fish and Wildlife Service when it is taking an action that has (or is
likely to have) a measurable negative impact on migratory bird
populations.
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    \940\ 16 U.S.C. 668(a).
---------------------------------------------------------------------------

    The agencies conclude that the MBTA, BGEPA, and Executive Order
13186 do not apply to this proposal because there is no disturbance,
take, measurable negative impact, or other covered activity involving
migratory birds or bald or golden eagles involved in this rulemaking.
10. Department of Transportation Act (Section 4(f))
    Section 4(f) of the Department of Transportation Act of 1966 (49
U.S.C. 303), as amended, is designed to preserve publicly owned park
and recreation lands, waterfowl and wildlife refuges, and historic
sites. Specifically, Section 4(f) provides that DOT agencies cannot
approve a transportation program or project that requires the use of
any publicly owned land from a public park, recreation area, or
wildlife or waterfowl refuge of national, State, or local significance,
or any land from a historic site of national, State, or local
significance, unless a determination is made that:
    (1) There is no feasible and prudent alternative to the use of
land, and
    (2) The program or project includes all possible planning to
minimize harm to the property resulting from the use.
    These requirements may be satisfied if the transportation use of a
Section 4(f) property results in a de minimis impact on the area.
    NHTSA concludes that Section 4(f) is not applicable to its proposal
because this rulemaking is not an approval of a transportation program
or project that requires the use of any publicly owned land.
11. Executive Order 12898: ``Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations''
    Executive Order (E.O.) 12898 (59 FR 7629 (Feb. 16, 1994))
establishes federal executive policy on environmental justice. Its main
provision directs federal agencies, to the greatest extent practicable
and permitted by law, to make environmental justice part of their
mission by identifying and addressing, as appropriate,
disproportionately high and adverse human health or environmental
effects of their programs, policies, and activities on minority
populations and low-income populations in the United States.
    With respect to GHG emissions, EPA has determined that this final
rule will not have disproportionately high and adverse human health or
environmental effects on minority or low-income populations because it
impacts the level of environmental protection for all affected
populations without having any disproportionately high and adverse
human health or environmental effects on any population, including any
minority or low-income population. The increases in CO2 and
other GHGs associated with the standards will affect climate change
projections, and EPA has estimated marginal increases in projected
global mean surface temperatures and sea-level rise in this NPRM.
Within settlements experiencing climate change, certain parts of the
population may be especially vulnerable; these include the poor, the
elderly, those already in poor health, the disabled, those living
alone, and/or indigenous populations dependent on one or a few
resources. However, the potential increases in climate change impacts
resulting from this rule are so small that the impacts are not
considered ``disproportionately high and adverse'' on these
populations.
    For non-GHG co-pollutants such as ozone, PM2.5, and
toxics, EPA has concluded that reductions in downstream emissions would
have beneficial human health or environmental effects on near-road
populations. Therefore, the proposed rule would not result in
``disproportionately high and adverse''

human health or environmental effects regarding these pollutants on
minority and/or low income populations.
    NHTSA has also evaluated whether its proposal would have
disproportionately high and adverse human health or environmental
effects on minority or low-income populations. The agency includes its
analysis in Section 7.5 (Environmental Justice) of its Draft EIS.
12. Executive Order 13045: ``Protection of Children from Environmental
Health Risks and Safety Risks''
    This action is subject to E.O. 13045 (62 FR 19885, April 23, 1997)
because it is an economically significant regulatory action as defined
by E.O. 12866, and the agencies have reason to believe that the
environmental health or safety risks related to this action may have a
disproportionate effect on children. Specifically, children are more
vulnerable to adverse health effects related to mobile source
emissions, as well as to the potential long-term impacts of climate
change. Pursuant to E.O. 13045, NHTSA and EPA must prepare an
evaluation of the environmental health or safety effects of the planned
regulation on children and an explanation of why the planned regulation
is preferable to other potentially effective and reasonably feasible
alternatives considered by the agencies. Further, this analysis may be
included as part of any other required analysis.
    This preamble and NHTSA's Draft EIS discuss air quality, climate
change, and their related environmental and health effects, noting
where these would disproportionately affect children. The Administrator
has also discussed the impact of climate-related health effects on
children in the Endangerment and Cause or Contribute Findings for
Greenhouse Gases Under Section 202(a) of the Clean Air Act (74 FR
66496, December 15, 2009). Additionally, this preamble explains why the
agencies' proposal is preferable to other alternatives considered.
Together, this preamble and NHTSA's Draft EIS satisfy the agencies'
responsibilities under E.O. 13045.

F. Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.,
as amended by the Small Business Regulatory Enforcement Fairness Act
(SBREFA) of 1996), whenever an agency is required to publish a notice
of proposed rulemaking or final rule, it must prepare and make
available for public comment a regulatory flexibility analysis that
describes the effect of the rule on small entities (i.e., small
businesses, small organizations, and small governmental jurisdictions).
No regulatory flexibility analysis is required if the head of an agency
certifies the proposal will not have a significant economic impact on a
substantial number of small entities. SBREFA amended the Regulatory
Flexibility Act to require Federal agencies to provide a statement of
the factual basis for certifying that a proposal will not have a
significant economic impact on a substantial number of small entities.
    The agencies considered the impacts of this notice under the
Regulatory Flexibility Act and certify that this rule would not have a
significant economic impact on a substantial number of small entities.
The following is the agencies' statement providing the factual basis
for this certification pursuant to 5 U.S.C. 605(b).
    Small businesses are defined based on the North American Industry
Classification System (NAICS) code.\941\ One of the criteria for
determining size is the number of employees in the firm. For
establishments primarily engaged in manufacturing or assembling
automobiles, as well as light duty trucks, the firm must have less than
1,500 employees to be classified as a small business. This proposed
rule would affect motor vehicle manufacturers. There are 14 small
manufacturers of passenger cars and SUVs of electric, hybrid, and
internal combustion engines.
---------------------------------------------------------------------------

    \941\ Classified in NAICS under Subsector 336--Transportation
Equipment Manufacturing for Automobile Manufacturing (336111), Light
Truck (336112), and Heavy Duty Truck Manufacturing (336120). https://www.sba.gov/document/support-table-size-standards.

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[GRAPHIC] [TIFF OMITTED] TP24AU18.304

    NHTSA believes that the rulemaking would not have a significant
economic impact on the small vehicle manufacturers because under 49 CFR
part 525, passenger car manufacturers making less than 10,000 vehicles
per year can petition NHTSA to have alternative standards set for those
manufacturers. These manufacturers do not currently meet the 27.5 mpg
standard and must already petition the agency for relief. If the
standard is raised, it has no meaningful impact on these
manufacturers--they still must go through the same process and petition
for relief. Given there already is a mechanism for relieving burden on
small businesses, which is the purpose of the Regulatory Flexibility
Act, a regulatory flexibility analysis was not prepared.
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    \942\ Number of employees as of March 2018, source:
Linkedin.com.
    \943\ Rough estimate for model year 2017.
---------------------------------------------------------------------------

    EPA believes this rulemaking would not have a significant economic
impact on a substantial number of small entities under the Regulatory
Flexibility Act, as amended by the Small Business Regulatory
Enforcement Fairness Act. EPA is exempting from the CO2
standards any manufacturer, domestic or foreign, meeting SBA's size
definitions of small business as described in 13 CFR 121.201. EPA
adopted the same type of exemption for small businesses in the 2017 and
later rulemaking. EPA estimates that small entities comprise less than
0.1% of total annual vehicle sales and exempting them will have a
negligible impact on the CO2 emissions reductions from the
standards. Because EPA is exempting small businesses from the
CO2 standards, we are certifying that the rule will not have
a significant economic impact on a substantial number of small
entities. Therefore, EPA has not conducted a Regulatory Flexibility
Analysis or a SBREFA SBAR Panel for the rule.
    EPA regulations allow small businesses to voluntarily waive their
small business exemption and optionally certify to the CO2
standards. This allows small entity manufacturers to earn
CO2 credits under the CO2 program, if their
actual fleetwide CO2 performance is better than their
fleetwide CO2 target standard. However, the exemption waiver
is optional for small entities and thus we believe that manufacturers
opt into the CO2 program if it is economically advantageous
for them to do so, for example in order to generate and sell
CO2 credits. Therefore, EPA believes this voluntary option
does not affect EPA's determination that the standards will impose no
significant adverse impact on small entities.

G. Executive Order 13132 (Federalism)

    Executive Order 13132 requires federal agencies to develop an
accountable process to ensure ``meaningful and timely input by State
and local officials in the development of regulatory policies that have
federalism implications.'' The Order defines the term ``Policies that
have federalism implications'' to include regulations that have
``substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.'' Under
the Order, agencies may not issue a regulation that has federalism
implications, that imposes substantial direct compliance costs, unless
the Federal government provides the funds necessary to pay the direct
compliance costs incurred by State and local governments, or the
agencies consult with State and local officials early in the process of
developing the proposed regulation. The agencies complied with Order's
requirements.
    See Section VI above for further detail on the agencies' assessment
of the federalism implications of this proposal.

H. Executive Order 12988 (Civil Justice Reform)

    Pursuant to Executive Order 12988, ``Civil Justice Reform,'' \944\
NHTSA has considered whether this rulemaking would have any retroactive
effect. This proposed rule does not have any retroactive effect.
---------------------------------------------------------------------------

    \944\ 61 FR 4729 (Feb. 7, 1996).
---------------------------------------------------------------------------

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

    This proposed rule does not have tribal implications, as specified
in Executive Order 13175 (65 FR 67249, November 9, 2000). This rule
will be implemented at the Federal level and impose compliance costs
only on vehicle manufacturers. Thus, Executive Order 13175 does not
apply to this rule.

J. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires Federal agencies to prepare a written assessment of the costs,
benefits, and other effects of a proposed or final rule that includes a
Federal mandate likely to result in the expenditure by State, local, or
tribal governments, in the aggregate, or by the private sector, of more
than $100 million in any one year (adjusted for inflation with base
year of 1995). Adjusting this amount by the implicit gross domestic
product price deflator for 2016 results in $148 million (111.416/75.324
= 1.48).\945\ Before promulgating a rule for which a written statement
is needed, section 205 of UMRA generally requires NHTSA and EPA to
identify and consider a reasonable number of regulatory alternatives
and adopt the least costly, most cost-effective, or least burdensome
alternative that achieves the objective of the rule. The provisions of
section 205 do not apply when they are inconsistent with applicable
law. Moreover, section 205 allows NHTSA and EPA to adopt an alternative
other than the least costly, most cost-effective, or least burdensome
alternative if the agency publishes with the proposed rule an
explanation of why that alternative was not adopted.
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    \945\ Bureau of Economic Analysis, National Income and Product
Accounts (NIPA), Table 1.1.9 Implicit Price Deflators for Gross
Domestic Product. https://bea.gov/iTable/index_nipa.cfm.
---------------------------------------------------------------------------

    This proposed rule will not result in the expenditure by State,
local, or tribal governments, in the aggregate, of more than $148
million annually, but it will result in the expenditure of that
magnitude by vehicle manufacturers and/or their suppliers. In
developing this proposal, NHTSA and EPA considered a variety of
alternative average fuel economy standards lower and higher than those
proposed. The proposed fuel economy standards for MYs 2021-2026 are the
least costly, most cost-effective, and least burdensome alternative
that achieve the objective of the rule.

K. Regulation Identifier Number

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

L. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act (NTTAA) requires NHTSA and EPA to evaluate and use existing
voluntary consensus standards in its regulatory activities unless doing
so would be inconsistent with applicable law (e.g., the statutory
provisions regarding NHTSA's vehicle safety authority, or EPA's testing
authority) or otherwise impractical.\946\
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    \946\ 15 U.S.C. 272.
---------------------------------------------------------------------------

    Voluntary consensus standards are technical standards developed or
adopted by voluntary consensus standards bodies. Technical standards
are defined by the NTTAA as ``performance-based or design-specific
technical specification and related management systems practices.''
They pertain to ``products and processes, such as size, strength, or
technical performance of a product, process or material.''
    Examples of organizations generally regarded as voluntary consensus
standards bodies include the American Society for Testing and Materials
(ASTM), the Society of Automotive Engineers (SAE), and the American
National Standards Institute (ANSI). If the agencies do not use
available and potentially applicable voluntary consensus standards, we
are required by the Act to provide Congress, through OMB, an
explanation of the reasons for not using such standards.
    For CO2 emissions, EPA is proposing to collect data over
the same tests that are used for the MY 2012-2016 CO2
standards and for the CAFE program. This will minimize the amount of
testing done by manufacturers, since manufacturers are already required
to run these tests. For A/C credits, EPA is proposing to use a
consensus methodology developed by the Society of Automotive Engineers
(SAE) and also a new A/C test. EPA knows of no consensus standard
available for the A/C test.
    There are currently no voluntary consensus standards that NHTSA
administers relevant to today's proposed CAFE standards.

M. Department of Energy Review

    In accordance with 49 U.S.C. 32902(j)(1), NHTSA submitted this
proposed rule to the Department of Energy for review.

N. Paperwork Reduction Act

    The Paperwork Reduction Act (PRA) of 1995, Public Law 104-13,\947\
gives the Office of Management and Budget (OMB) authority to regulate
matters regarding the collection, management, storage, and
dissemination of certain information by and for the Federal government.
It seeks to reduce the total amount of paperwork handled by the
government and the public. The PRA requires Federal agencies to place a
notice in the Federal Register seeking public comment on the proposed
collection of information. NHTSA strives to reduce the public's
information collection burden hours each fiscal year by streamlining
external and internal processes.
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    \947\ Codified at 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------

    To this end, NHTSA seeks to continue to collect information to
ensure compliance with its CAFE program. NHTSA intends to reinstate its
previously-approved collection of information for Corporate Average
Fuel Economy (CAFE) reports specified in 49 CFR part 537 (OMB control
number 2127-0019), add the additional burden for reporting changes
adopted in the October 15, 2012 final rule that recently came into
effect (see 77 FR 62623), and account for the change in burden as
proposed in this rule as well as for other CAFE reporting provisions
required by Congress and NHTSA. NHTSA is also changing the name of this
collection to more accurately represent the breadth of all CAFE
regulatory reporting. Although NHTSA seeks to add additional burden
hours to its CAFE report requirement in 49 CFR 537, the agency believes
there will be a reduction in burden due to the standardization of data
and the streamlined process. NHTSA is seeking public comment on this
collection.
    In compliance with the PRA, this notice announces that the
information collection request (ICR) abstracted below has been
forwarded to OMB for review and comment. The ICR describes

the nature of the information collection and its expected burden.
    Title: Corporate Average Fuel Economy.
    Type of Request: Reinstatement and amendment of a previously
approved collection.
    OMB Control Number: 2127-0019.
    Form Numbers: NHTSA Form 1474 (CAFE Projections Reporting Template)
and NHTSA Form 1475 (CAFE Credit Template).
    Requested Expiration Date of Approval: Three years from date of
approval.
    Summary of the collection of information: As part of this
rulemaking, NHTSA is reinstating and modifying its previously-approved
collection for CAFE-related collections of information. NHTSA and EPA
have coordinated their compliance and reporting requirements in an
effort not to impose duplicative burden on regulated entities. This
information collection contains three different components: Burden
related NHTSA's CAFE reporting requirements, burden related to CAFE
compliance, but not via reporting requirements, and information
gathered by NHTSA to help inform CAFE analyses. All templates
referenced in this section will be available in the rulemaking docket
for comment.

1. CAFE Compliance Reports

    NHTSA seeks to reinstate \948\ its collection related to the
reporting requirements in 49 U.S.C. 32907 ``Reports and tests of
manufacturers.'' In that section, manufacturers are statutorily
required to submit CAFE compliance reports to the Secretary of
Transportation.\949\ The reports must state if a manufacturer will
comply with its applicable fuel economy standard(s), what actions the
manufacturer intends to take to comply with the standard(s), and
include other information as required by NHTSA. Manufacturers are
required to submit two CAFE compliance reports--a pre-model year report
(PMY) and mid-model year (MMY) reporter--each year. In the event a
manufacturer needs to correct previously-submitted information, a
manufacturer may need to file additional reports.\950\
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    \948\ This collection expired on April 30, 2016.
    \949\ 49 U.S.C. 32907 (delegated to the NHTSA Administrator at
49 CFR 1.95). Because of this delegation, for purposes of
discussion, statutory references to the Secretary of Transportation
in this section will discussed in terms of NHTSA or the NHTSA
administrator.
    \950\ Specifically, a manufacturer shall submit a report
containing the information during the 30 days before the beginning
of each model year, and during the 30 days beginning the 180th day
of the model year. When a manufacturer decides that actions reported
are not sufficient to ensure compliance with that standard, the
manufacturer shall report additional actions it intends to take to
comply with the standard and include a statement about whether those
actions are sufficient to ensure compliance.
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    To implement this statute, NHTSA issued 49 CFR part 537,
``Automotive Fuel Economy Reports,'' which adds additional definition
to Sec.  32907. The first report, the PMY report must be submitted to
NHTSA before December 31 of the calendar year prior to the
corresponding model year and contain manufacturers' projected
information for that upcoming model year. The second report, the MMY
report must be submitted by July 31 of the given model year and contain
updated information from manufacturers based upon actual and projected
information known midway through the model year. Finally, the last
report, a supplementary report, is required to be submitted anytime a
manufacture needs to correct information previously submitted to NHTSA.
    Compliance reports must include information on passenger and non-
passenger automobiles (trucks) describing the projected and actual fuel
economy standards, fuel economy performance values, production sales
volumes and information on vehicle design features (e.g., engine
displacement and transmission class) and other vehicle attribute
characteristics (e.g., track width, wheel base and other light truck
off-road features). Manufacturers submit confidential and non-
confidential versions of these reports to NHTSA. Confidential reports
differ by including estimated or actual production sales information,
which is withheld from public disclosure to protect each manufacturer's
competitive sales strategies. NHTSA uses the reports as the basis for
vehicle auditing and testing, which helps manufacturers correct
reporting errors prior to the end of the model year and facilitate
acceptance of their final CAFE report by the Environmental Protection
Agency (EPA). The reports also help the agency, as well as the
manufacturers who prepare them, anticipate potential compliance issues
as early as possible, and help manufacturers plan their compliance
strategies.
    Further, NHTSA is modifying this collection to account for
additional information manufacturers are required to include in their
reports. In the 2017 and beyond final rule,\951\ NHTSA allowed for
manufacturers to gain additional fuel economy benefits by installing
certain technologies on their vehicles beginning with MY 2017.\952\
These technologies include air-conditioning systems with increased
efficiency, off-cycle technologies whose benefits are not adequately
captured on the Federal Test Procedure and/or the Highway Fuel Economy
Test,\953\ and hybrid electric technologies installed on full-size
pickup trucks. Prior to MY 2017, manufacturers were unable to earn a
fuel economy benefit for these technologies, so NHTSA's reporting
requirements did not include an opportunity to report them. Now,
manufacturers must provide information on these technologies in their
CAFE reports. NHTSA requires manufacturers to provide detailed
information on the model types using these technologies to gain fuel
economy benefits. These details are necessary to facilitate NHTSA's
technical analyses and to ensure the agency can perform random
enforcement audits when necessary.
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    \951\ 77 FR 62623 (Oct. 15, 2012).
    \952\ These technologies were not included in the burden for
part 537 at the time as the additional reporting requirements would
not take effect until years later.
    \953\ E.g., engine idle stop-start systems, active transmission
warmup systems, etc.
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    In addition to a list of all fuel consumption improvement
technologies utilized in their fleet, 49 CFR 537 requires manufacturers
to report the make, model type, compliance category, and production
volume of each vehicle equipped with each technology and the associated
fuel consumption improvement value (FCIV). NHTSA is proposing to add
the reporting and enforcement burden hours and cost for these new
incentives to this collection. Manufacturers can also petition the EPA
and NHTSA, in accordance with 40 CFR 86.1868-12 or 40 CFR 86.1869-12,
to gain additional credits based upon the improved performance of any
of the new incentivized technologies allowed for model year 2017. EPA
approves these petitions in collaboration with NHTSA and any
adjustments are taken into account for both programs. As a part the
agencies' coordination, NHTSA provides EPA with an evaluation of each
new technology to ensure its direct impact on fuel economy and an
assessment on the suitability of each technology for use in increasing
a manufacturer's fuel economy performance. Furthermore, at times, NHTSA
may independently request additional information from a manufacturer to
support its evaluations. This information along with any research
conclusions shared with EPA and NHTSA in the petitions is required to
be submitted in manufacturer's CAFE reports.

    NHTSA is seeking to change the burden hours for its CAFE reporting
requirements in 49 CFR part 537. NHTSA plans to reduce the total amount
of time spent collecting the required reporting information by
standardizing the required data and streamlining the collection process
using a standardized reporting template. The standardized template will
be used by manufacturers to collect all the required CAFE information
under 49 CFR 537.7(b) and (c) and provides a format which ensures
accuracy, completeness and better alignment with the final data
provided to EPA.
2. Other CAFE Compliance Collections
    NHTSA is proposing a new standardized template for manufacturers
buying CAFE credits and for manufacturers submitting credit
transactions in accordance with 49 CFR part 536. In 49 CFR part
536.5(d), NHTSA is required to assess compliance with fuel economy
standards each year, utilizing the certified and reported CAFE data
provided by the Environmental Protection Agency for enforcement of the
CAFE program pursuant to 49 U.S.C. 32904(e). Credit values are
calculated based on the CAFE data from the EPA. If a manufacturer's
vehicles in a particular compliance category performs better than its
required fuel economy standard, NHTSA adds credits to the
manufacturer's account for that compliance category. If a
manufacturer's vehicles in a particular compliance category performs
worse than the required fuel economy standard, NHTSA will add a credit
deficit to the manufacturer's account and will provide written
notification to the manufacturer concerning its failure to comply. The
manufacturer will be required to confirm the shortfall and must either:
Submit a plan indicating how it will allocate existing credits or earn,
transfer and/or acquire credits or pay the equivalent civil penalty.
The manufacturer must submit a plan or payment within 60 days of
receiving notification from NHTSA.
    NHTSA is proposing for manufacturers to use the credit transaction
template any time a credit transaction request is sent to NHTSA. For
example, manufacturers that purchase credits and want to apply them to
their credit accounts will use the credit transaction template. The
template NHTSA is proposing is a simple spreadsheet that trading
parties fill out. When completed, parties will be able to click a
button on the spreadsheet to generate a joint transaction letter for
the parties to sign and submit to NHTSA, along with the spreadsheet.
NHTSA believes these changes will significantly reduce the burden on
manufacturers in managing their CAFE credit accounts.
    Finally, NHTSA is accounting for the additional burden due to
existing CAFE program elements. In 49 CFR part 525, small volume
manufacturers submit petitions to NHTSA for exemption from an
applicable average fuel economy standard and to request to comply with
a less stringent alternative average fuel economy standard. In 49 CFR
part 534, manufacturers are required to submit information to NHTSA
when establishing a corporate controlled relationship with another
manufacturer. A controlled relationship exists between manufacturers
that control, are controlled by, or are under common control with, one
or more other manufacturers. Accordingly, manufacturers that have
entered into written contracts transferring rights and responsibilities
to other manufacturers in controlled relationships for CAFE purposes
are required to provide reports to NHTSA. There are additional
reporting requirements for manufacturers submitting carry back plans
and when manufacturers split apart from controlled relationships and
must designate how credits are to be allocated between the
parties.\954\ Manufacturers with credit deficits at the end of the
model year, can carry back future earned credits up to three model
years in advance of the deficit to resolve a current shortfall. The
carryback plan proving the existence of a manufacturers future earned
credits must be submitted and approved by NHTSA, pursuant to 49 U.S.C.
32903(b).
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    \954\ See 49 CFR part 536.
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3. Analysis Fleet Composition
    As discussed in Section II., in setting CAFE standards, NHTSA
creates an analysis fleet from which to model potential future economy
improvements. To compose this fleet, the agency uses a mixture of
compliance data and information from other sources to best replicate
the fleet from a recent model year. While refining the analysis fleet,
NHTSA occasionally asks manufacturers for information that is similar
to information submitted as part of EPA's final model year report
(e.g., final model year vehicle volumes). Periodically, NHTSA may ask
manufacturers for more detailed information than what is required for
compliance (e.g., what engines are shared across vehicle models).
Often, NHTSA requests this information from manufacturers after
manufacturers have submitted their final model year reports to EPA, but
before EPA processes and releases final model year reports.
    Information like this, which is used to verify and supplement the
data used to create the analysis fleet, is tremendously valuable to
generating an accurate analysis fleet, and setting maximum feasible
standards. The more accurate the analysis fleet is, the more accurate
the modeling of what technologies could be applied will be. Therefore,
NHTSA is accounting for the burden on manufacturers to provide the
agency with this additional information. In almost all instances,
manufacturers already have the information NHTSA seeks, but it might
need to be reformatted or recompiled. Because of this, NHTSA believes
the burden to provide this information will often be minimal.
    Affected Public: Respondents are manufacturers of engines and
vehicles within the North American Industry Classification System
(NAICS) and use the coding structure as defined by NAICS including
codes 33611, 336111, 336112, 33631, 33631, 33632, 336320, 33635, and
336350 for motor vehicle and parts manufacturing.
    Respondent's obligation to respond: Regulated entities required to
respond to inquiries covered by this collection. 49 U.S.C. 32907. 49
CFR part 525, 534, 536, and 537.
    Frequency of response: Variable, based on compliance obligation.
Please see PRA supporting documentation in the docket for more detailed
information.
    Average burden time per response: Variable, based on compliance
obligation. Please see PRA supporting documentation in the docket for
more detailed information.
    Number of respondents: 23.
4. Estimated Total Annual Burden Hours and Costs

[GRAPHIC] [TIFF OMITTED] TP24AU18.305

O. Privacy Act

    In accordance with 5 U.S.C. 553(c), the agencies solicit comments
from the public to better inform the rulemaking process. These comments
are posted, without edit, to www.regulations.gov, as described in DOT's
system of records notice, DOT/ALL-14 FDMS, accessible through
www.transportation.gov/privacy. In order to facilitate comment tracking
and response, we encourage commenters to provide their name, or the
name of their organization; however, submission of names is completely
optional.

List of Subjects

49 CFR Parts 523, 531, and 533

    Fuel economy.

49 CFR Parts 536 and 537

    Fuel economy, Reporting and recordkeeping requirements.

Regulatory Text

    In consideration of the foregoing, under the authority of 49 U.S.C.
32901, 32902, and 32903, and delegation of authority at 49 CFR 1.95,
NHTSA proposes to amend 49 CFR Chapter V as follows:

PART 523--VEHICLE CLASSIFICATION

0
1. The authority citation for part 523 continues to read as follows:

    Authority: 49 U.S.C 32901, delegation of authority at 49 CFR
1.95.

0
2. Amend Sec.  523.2 by revising the definitions of ``Curb weight'' and
``Full-size pickup truck'' to read as follows:

Sec.  523.2  Definitions.

* * * * *
    Curb weight has the meaning given in 40 CFR 86.1803.
* * * * *
    Full-size pickup truck means a light truck or medium duty passenger
vehicle that meets the requirements specified in 40 CFR 86.1803.
* * * * *

PART 531--PASSENGER AUTOMOBILE AVERAGE FUEL ECONOMY STANDARDS

0
3. The authority citation for part 531 continues to read as follows:

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

0
4. Amend Sec.  531.5 by revising Table III to paragraph (c), and
paragraph (d), deleting paragraph (e), and redesignating paragraph (f)
as paragraph (e) to read as follows:

Sec.  531.5  Fuel economy standards.

* * * * *
    (c) * * *
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[GRAPHIC] [TIFF OMITTED] TP24AU18.307

[GRAPHIC] [TIFF OMITTED] TP24AU18.308

    (d) In addition to the requirements of paragraphs (b) and (c) of
this section, each manufacturer shall also meet the minimum fleet
standard for domestically manufactured passenger automobiles expressed
in Table IV:

[GRAPHIC] [TIFF OMITTED] TP24AU18.309

[GRAPHIC] [TIFF OMITTED] TP24AU18.310

BILLING CODE 4910-59-C
* * * * *
0
5. Amend Sec.  531.6 by revising paragraphs (a) and (b) to read as
follows:

Sec.  531.6  Measurement and calculation procedures.

    (a) The fleet average fuel economy performance of all passenger
automobiles that are manufactured by a manufacturer in a model year
shall be determined in accordance with procedures established by the
Administrator of the Environmental Protection Agency under 49 U.S.C.
32904 and set forth in 40 CFR part 600. For model years 2017 to 2026, a
manufacturer is eligible to increase the fuel economy performance of
passenger cars in accordance with procedures established by EPA set
forth in 40 CFR 600, Subpart F, including any adjustments to fuel
economy EPA allows, such as for fuel consumption improvements related
to air conditioning efficiency and off-cycle technologies.
    (1) A manufacturer that seeks to increase its fleet average fuel
economy performance through the use of technologies that improve the
efficiency of air conditioning systems must follow the requirements in
40 CFR 86.1868-12. Fuel consumption improvement values resulting from
the use of those air conditioning systems must be determined in
accordance with 40 CFR 600.510-12(c)(3)(i).
    (2) A manufacturer that seeks to increase its fleet average fuel
economy performance through the use of off-cycle technologies must
follow the requirements in 40 CFR 86.1869-12. A manufacturer is
eligible to gain fuel consumption improvements for predefined off-cycle
technologies in accordance with 40 CFR 86.1869-12(b) or for
technologies tested using EPA's 5-cycle methodology in accordance with
40 CFR 86.1869-12(c). The fuel consumption improvement is determined in
accordance with 40 CFR 600.510-12(c)(3)(ii).
    (b) A manufacturer is eligible to increase its fuel economy
performance through use of an off-cycle technology requiring an
application request made to EPA in accordance with 40 CFR 86.1869-
12(d). The request must be approved by EPA in consultation with NHTSA.
To expedite NHTSA's consultation with EPA, a manufacturer shall
concurrently submit its application to NHTSA if the manufacturer is
seeking off-cycle fuel economy improvement values under the CAFE
program for those technologies. For off-cycle technologies that are
covered under 40 CFR 86.1869-12(d), NHTSA will consult with EPA
regarding NHTSA's evaluation of the specific off-cycle technology to
ensure its impact on fuel economy and the suitability of using the off-
cycle technology to adjust the fuel economy performance. NHTSA will
provide its views on the suitability of the technology for that purpose
to EPA. NHTSA's evaluation and review will consider:
    (1) Whether the technology has a direct impact upon improving fuel
economy performance;
    (2) Whether the technology is related to crash-avoidance
technologies, safety critical systems or systems affecting safety-
critical functions, or technologies designed for the purpose of
reducing the frequency of vehicle crashes;
    (3) Information from any assessments conducted by EPA related to
the application, the technology and/or related technologies; and
    (4) Any other relevant factors.
* * * * *
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6. Add Sec.  531.7 to read as follows:

Sec.  531.7  Preemption.

    (a) General. When an average fuel economy standard prescribed under
this chapter is in effect, a State or a political subdivision of a
State may not adopt or

enforce a law or regulation related to fuel economy standards or
average fuel economy standards for automobiles covered by an average
fuel economy standard under this chapter.
    (b) Requirements Must Be Identical. When a requirement under
section 32908 of this title is in effect, a State or a political
subdivision of a State may adopt or enforce a law or regulation on
disclosure of fuel economy or fuel operating costs for an automobile
covered by section 32908 only if the law or regulation is identical to
that requirement.
    (c) State and Political Subdivision Automobiles. A State or a
political subdivision of a State may prescribe requirements for fuel
economy for automobiles obtained for its own use.
0
7. Redesignate Appendix to Part 531--Example of Calculating Compliance
under Sec.  531.5(c) as Appendix A to Part 531--Example of Calculating
Compliance under Sec.  531.5(c) and amend newly redesignated Appendix A
by removing all all references to ``Appendix'' and adding in their
place, ``Appendix A.''
0
8. Add Appendix B to Part 531 to read as follows:

Appendix B to Part 531--Preemption

    (a) Express Preemption:
    (1) To the extent that any state law or regulation regulates or
prohibits tailpipe carbon dioxide emissions from automobiles, such a
law or regulation relates to average fuel economy standards within
the meaning of 49 U.S.C. 32919.
    (A) Automobile fuel economy is directly and substantially
related to automobile tailpipe emissions of carbon dioxide;
    (B) Carbon dioxide is the natural by-product of automobile fuel
consumption;
    (C) The most significant and controlling factor in making the
measurements necessary to determine the compliance of automobiles
with the fuel economy standards in this Part is their rate of
tailpipe carbon dioxide emissions;
    (D) Almost all technologically feasible reduction of tailpipe
emissions of carbon dioxide is achievable through improving fuel
economy, thereby reducing both the consumption of fuel and the
creation and emission of carbon dioxide;
    (E) Accordingly, as a practical matter, regulating fuel economy
controls the amount of tailpipe emissions of carbon dioxide, and
regulating the tailpipe emissions of carbon dioxide controls fuel
economy.
    (2) As a state law or regulation related to fuel economy
standards, any state law or regulation regulating or prohibiting
tailpipe carbon dioxide emissions from automobiles is expressly
preempted under 49 U.S.C. 32919.
    (3) A state law or regulation having the direct effect of
regulating or prohibiting tailpipe carbon dioxide emissions or fuel
economy is a law or regulation related to fuel economy and expressly
preempted under 49 U.S.C. 32919.
    (b) Implied Preemption:
    (1) A state law or regulation regulating tailpipe carbon dioxide
emissions from automobiles, particularly a law or regulation that is
not attribute-based and does not separately regulate passenger cars
and light trucks, conflicts with:
    (A) The fuel economy standards in this Part;
    (B) The judgments made by the agency in establishing those
standards; and
    (C) The achievement of the objectives of the statute (49 U.S.C.
Chapter 329) under which those standards were established, including
objectives relating to reducing fuel consumption in a manner and to
the extent consistent with manufacturer flexibility, consumer
choice, and automobile safety.
    (2) Any state law or regulation regulating or prohibiting
tailpipe carbon dioxide emissions from automobiles is impliedly
preempted under 49 U.S.C. Chapter 329.
    (3) A state law or regulation having the direct effect of
regulating or prohibiting tailpipe carbon dioxide emissions or fuel
economy is impliedly preempted under 49 U.S.C. Chapter 329.

PART 533--LIGHT TRUCK FUEL ECONOMY STANDARDS

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

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

0
10. Amend Sec.  533.5 by revising Table VII to paragraph (a) to read as
follows and removing paragraph (k).

Sec.  533.5  Requirements.

    (a) * * *
BILLING CODE 4910-59-P

[GRAPHIC] [TIFF OMITTED] TP24AU18.311

[GRAPHIC] [TIFF OMITTED] TP24AU18.312

BILLING CODE 4910-59-C
* * * * *
0
11. Amend Sec.  533.6 by revising paragraphs (b) and (c) as follows:

Sec.  533.6  Measurement and calculation procedures.

* * * * *
    (b) The fleet average fuel economy performance of all light trucks
that are manufactured by a manufacturer in a model year shall be
determined in accordance with procedures established by the
Administrator of the Environmental Protection Agency under 49 U.S.C.
32904 and set forth in 40 CFR part 600. For model years 2017 to 2026, a
manufacturer is eligible to increase the fuel economy performance of
light trucks in accordance with procedures established by EPA set forth
in 40 CFR part 600, subpart F, including any adjustments to fuel
economy EPA allows, such as for fuel consumption improvements related
to air conditioning efficiency, off-cycle technologies, and
hybridization and other performance-based technologies for full-size
pickup trucks that meet the requirements specified in 40 CFR 86.1803.
    (1) A manufacturer that seeks to increase its fleet average fuel
economy performance through the use of technologies that improve the
efficiency of air conditioning systems must follow the requirements in
40 CFR 86.1868-12. Fuel consumption improvement values resulting from
the use of those air conditioning systems must be determined in
accordance with 40 CFR 600.510-12(c)(3)(i).
    (2) A manufacturer that seeks to increase its fleet average fuel
economy performance through the use of off-cycle technologies must
follow the requirements in 40 CFR 86.1869-12. A manufacturer is
eligible to gain fuel consumption improvements for predefined off-cycle
technologies in accordance with 40 CFR 86.1869-12(b) or for
technologies tested using the EPA's 5-cycle methodology in accordance
with 40 CFR 86.1869-12(c). The fuel consumption improvement is
determined in accordance with 40 CFR 600.510-12(c)(3)(ii).
    (3) The eligibility of a manufacturer to increase its fuel economy
using hybridized and other performance-based technologies for full-size
pickup trucks must follow 40 CFR 86.1870-12 and the fuel consumption
improvement of these full-size pickup truck technologies must be
determined in accordance with 40 CFR 600.510-12(c)(3)(iii).
    (c) A manufacturer is eligible to increase its fuel economy
performance through use of an off-cycle technology requiring an
application request made to EPA in accordance with 40 CFR 86.1869-
12(d). The request must be approved by EPA in consultation with NHTSA.
To expedite NHTSA's consultation with EPA, a manufacturer shall
concurrently submit its application to NHTSA if the manufacturer is
seeking off-cycle fuel economy improvement values under the CAFE
program for those technologies. For off-cycle technologies that are
covered under 40 CFR 86.1869-12(d), NHTSA will consult with EPA
regarding NHTSA's evaluation of the specific off-cycle technology to
ensure its impact on fuel economy and the suitability of using the off-
cycle technology to adjust the fuel economy performance. NHTSA will
provide its views on the suitability of the technology for that purpose
to EPA. NHTSA's evaluation and review will consider:
    (1) Whether the technology has a direct impact upon improving fuel
economy performance;

    (2) Whether the technology is related to crash-avoidance
technologies, safety critical systems or systems affecting safety-
critical functions, or technologies designed for the purpose of
reducing the frequency of vehicle crashes;
    (3) Information from any assessments conducted by EPA related to
the application, the technology and/or related technologies; and
    (4) Any other relevant factors.
* * * * *
0
12. Add Sec.  533.7 to read as follows:

Sec.  533.7  Preemption.

    (a) General. When an average fuel economy standard prescribed under
this chapter is in effect, a State or a political subdivision of a
State may not adopt or enforce a law or regulation related to fuel
economy standards or average fuel economy standards for automobiles
covered by an average fuel economy standard under this chapter.
    (b) Requirements Must Be Identical. When a requirement under
section 32908 of this title is in effect, a State or a political
subdivision of a State may adopt or enforce a law or regulation on
disclosure of fuel economy or fuel operating costs for an automobile
covered by section 32908 only if the law or regulation is identical to
that requirement.
    (c) State and Political Subdivision Automobiles.--A State or a
political subdivision of a State may prescribe requirements for fuel
economy for automobiles obtained for its own use.
0
13. Redesignate Appendix to Part 533--Example of Calculating Compliance
under Sec.  533.5(i) as Appendix A to Part 533--Example of Calculating
Compliance under Sec.  533.5(i) and amend newly redesignated Appendix A
by removing all references to ``Appendix'' and adding in their place,
``Appendix A''.
0
14. Add Appendix B to Part 533 to read as follows:

Appendix B to Part 533--Preemption

    (a) Express Preemption:
    (1) To the extent that any state law or regulation regulates or
prohibits tailpipe carbon dioxide emissions from automobiles, such a
law or regulation relates to average fuel economy standards within the
meaning of 49 U.S.C. 32919.
    (A) Automobile fuel economy is directly and substantially related
to automobile tailpipe emissions of carbon dioxide;
    (B) Carbon dioxide is the natural by-product of automobile fuel
consumption;
    (C) The most significant and controlling factor in making the
measurements necessary to determine the compliance of automobiles with
the fuel economy standards in this Part is their rate of tailpipe
carbon dioxide emissions;
    (D) Almost all technologically feasible reduction of tailpipe
emissions of carbon dioxide is achievable through improving fuel
economy, thereby reducing both the consumption of fuel and the creation
and emission of carbon dioxide;
    (E) Accordingly, as a practical matter, regulating fuel economy
controls the amount of tailpipe emissions of carbon dioxide, and
regulating the tailpipe emissions of carbon dioxide controls fuel
economy.
    (2) As a state law or regulation related to fuel economy standards,
any state law or regulation regulating or prohibiting tailpipe carbon
dioxide emissions from automobiles is expressly preempted under 49
U.S.C. 32919.
    (3) A state law or regulation having the direct effect of
regulating or prohibiting tailpipe carbon dioxide emissions or fuel
economy is a law or regulation related to fuel economy and expressly
preempted under 49 U.S.C. 32919.
    (b) Implied Preemption:
    (1) A state law or regulation regulating tailpipe carbon dioxide
emissions from automobiles, particularly a law or regulation that is
not attribute-based and does not separately regulate passenger cars and
light trucks, conflicts with:
    (A) The fuel economy standards in this Part;
    (B) The judgments made by the agency in establishing those
standards; and
    (C) The achievement of the objectives of the statute (49 U.S.C.
Chapter 329) under which those standards were established, including
objectives relating to reducing fuel consumption in a manner and to the
extent consistent with manufacturer flexibility, consumer choice, and
automobile safety.
    (2) Any state law or regulation regulating or prohibiting tailpipe
carbon dioxide emissions from automobiles is impliedly preempted under
49 U.S.C. Chapter 329.
    (3) A state law or regulation having the direct effect of
regulating or prohibiting tailpipe carbon dioxide emissions or fuel
economy is impliedly preempted under 49 U.S.C. Chapter 329.

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

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

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

0
16. Amend Sec.  535.6 by revising paragraph (a)(4)(ii) to read as
follows:
* * * * *
    (a) * * *
    (4) * * *
    (ii) Calculate the equivalent fuel consumption test group results
as follows for spark-ignition vehicles and alternative fuel spark-
ignition vehicles. CO2 emissions test group result (grams
per mile)/8,887 grams per gallon of gasoline fuel) x (10\2\) = Fuel
consumption test group result (gallons per 100 mile).
* * * * *
0
16. Amend Sec.  535.6 by revising paragraphs (a)(4)(ii) and (d)(5)(ii)
to read as follows:
* * * * *
    (a) * * *
    (4) * * *
    (ii) Calculate the equivalent fuel consumption test group results
as follows for spark-ignition vehicles and alternative fuel spark-
ignition vehicles. CO2 emissions 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).
* * * * *
    (d) * * *
    (5) * * *
    (ii) Calculate equivalent fuel consumption FCL values for spark-
ignition engines and alternative fuel spark-ignition engines.
CO2 FCL value (grams per hp-hr)/8,887 grams per gallon of
gasoline fuel) x (10-2) = Fuel consumption FCL value
(gallons per 100 hp-hr).
* * * * *
0
17. Amend Sec.  535.7 by revising the equations in paragraphs (b)(1),
(c)(1), (d)(1), (e)(2) and (f)(2)(iii)(E) to read as follows:

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

* * * * *
    (b) * * *
    (1) * * *

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.
* * * * *

    (c) * * *
    (1) * * *

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:
[GRAPHIC] [TIFF OMITTED] TP24AU18.313

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:
[GRAPHIC] [TIFF OMITTED] TP24AU18.314

* * * * *
    (d) * * *
    (1) * * *

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:
[GRAPHIC] [TIFF OMITTED] TP24AU18.315

* * * * *
    (e) * * *
    (2) * * *
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 = 10 tons for short box vans and 19 tons for other trailers.
Volume = the number of U.S.-directed production volume of vehicles
in the corresponding vehicle family.
UL = the useful life for the regulatory subcategory. The useful life
value for heavy-duty trailers is equal to the 250,000 miles.

* * * * *
    (f) * * *
    (2) * * *
    (iii) * * *
    (E) * * *

Off-cycle FC credits = (CO2 Credit/CF) 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.
* * * * *

PART 536--TRANSFER AND TRADING OF FUEL ECONOMY CREDITS

0
18. The authority citation for part 536 continues to read as follows:

    Authority: 49 U.S.C. 32903; delegation of authority at 49 CFR
1.95.

0
19. Amend Sec.  536.4 by revising paragraph (c) to read as follows:

Sec.  536.4  Credits.

* * * * *
    (c) Adjustment factor. When traded or transferred and used, fuel
economy credits are adjusted to ensure fuel oil savings is preserved.
For traded credits, the user (or buyer) must multiply the calculated
adjustment factor by the number of its shortfall credits it plans to
offset in order to determine the number of equivalent credits to
acquire from the earner (or seller). For transferred credits, the user
of credits must multiply the calculated adjustment factor by the number
of its shortfall credits it plans to offset in order to determine the
number of equivalent credits to transfer from the compliance category
holding the available credits. The adjustment factor is calculated
according to the following formula:
[GRAPHIC] [TIFF OMITTED] TP24AU18.316

Where:

A = Adjustment factor applied to traded and transferred credits when
they are applied to an existing credit shortfall. The quotient shall
be rounded to 4 decimal places;

* * * * *
0
20. Amend Sec.  536.5 by redesignating paragraphs (c)(1) and (c)(2) as
paragraphs (c)(2) and (c)(3), respectively, adding paragraph (c)(1),
and revising paragraph (d)(6) to read as follows:

Sec.  536.5  Trading infrastructure.

* * * * *
    (c) * * *
    (1) Entities trading credits must generate and submit trade
documents using the NHTSA Credit Template (OMB Control No. 2127-0019,
NHTSA Form 1475). Entities shall fill out the NHTSA Credit Template and
use it to generate a credit trade summary and credit trade
confirmation, the latter of which shall be signed by both trading
entities. The credit trade confirmation serves as an acknowledgement
that the parties have agreed to trade credits, and does not dictate
terms, conditions, or other business obligations. Managers legally
authorized to obligate the sale and purchase of the traded credits must
sign the trade confirmation. The completed credit trade summary and a
PDF copy of the signed trade confirmation must be submitted to NHTSA.
The NHTSA Credit Template is available for download at http://www.nhtsa.gov.
* * * * *
    (d) * * *
    (6) Credit allocation plans received from a manufacturer will be
reviewed and approved by NHTSA. Use the NHTSA Credit Template (OMB
Control No. 2127-0019, NHTSA Form 1475) to record the credit
transactions requested in the credit allocation plan. The template is a
fillable form that has an option for recording and calculating credit
transactions for credit allocation plans. The template calculates the
required adjustments to the credits. The credit allocation plan and the
completed transaction template must be submitted to NHTSA. NHTSA will
approve the credit allocation plan unless it finds that the proposed
credits are unavailable or that it is unlikely that the plan will
result in the manufacturer earning sufficient credits to offset the
subject credit shortfall. If the plan is approved, NHTSA will revise
the respective manufacturer's credit account accordingly. If the plan
is rejected, NHTSA will notify the respective manufacturer and request
a revised plan or payment of the appropriate fine.
* * * * *

PART 537--AUTOMOTIVE FUEL ECONOMY REPORTS

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

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

0
24. Amend Sec.  537.5 by revising paragraph (d) and adding paragraph
(e) to read as follows:

Sec.  537.5  General requirements for reports.

* * * * *
    (d) Beginning with MY 2019, each manufacturer shall generate
reports required by this part using the NHTSA CAFE Projections
Reporting Template (OMB Control No. 2127-0019, NHTSA Form 1474). The
template is a fillable form.
    (1) Select the option to identify the report as a pre-model year
report, mid-model year report, or supplementary report as appropriate;
    (2) Complete all required information for the manufacturer and for
all vehicles produced for the current model year required to comply
with CAFE standards. Identify the manufacturer submitting the report,
including the full name, title, and address of the official responsible
for preparing the report and a point of contact to answer questions
concerning the report.
    (3) Use the template to generate confidential and non-confidential
reports for all the domestic and import passenger cars and light truck
fleet produced by the manufacturer for the current model year.
Manufacturers must submit a request for confidentiality in accordance
with 49 CFR 512 to withhold projected production sales volume estimates
from public disclosure. If the request is granted, NHTSA will withhold
the projected production sales volume estimates from public disclose
until all the vehicles produced by the manufacturer have been made
available for sale (usually one year after the current model year).
    (4) Submit confidential reports and requests for confidentiality to
NHTSA on CD-ROM in accordance with Part 537.12. Email copies of non-
confidential

(i.e., redacted) reports to NHTSA's secure email address: [email protected].
Requests for confidentiality must be submitted in a PDF or MS Word
format. Submit 2 copies of the CD-ROM to: Administrator, National
Highway Traffic Administration, 1200 New Jersey Avenue SW, Washington,
DC 20590, and submit emailed reports electronically to the following
secure email address: [email protected];
    (5) Confidentiality Requests.
    (i) Manufacturers can withhold information on projected production
sales volumes under 5 U.S.C. 552(b)(4) and 15 U.S.C. 2005(d)(1). In
accordance, the manufacturer must:
    (A) Show that the item is within the scope of sections 552(b)(4)
and 2005(d)(1);
    (B) Show that disclosure of the item would result in significant
competitive damage;
    (C) Specify the period during which the item must be withheld to
avoid that damage; and
    (D) Show that earlier disclosure would result in that damage.
    (ii) [Reserved]
    (e) Each report required by this part must be based upon all
information and data available to the manufacturer 30 days before the
report is submitted to the Administrator.
0
23. Amend Sec.  537.6 by revising paragraphs (b) and (c) to read as
follows:

Sec.  537.6  General content of reports.

* * * * *
    (b) Supplementary report. Except as provided in paragraph (c) of
this section, each supplementary report for each model year must
contain the information required by and Sec.  537.7(b) and (c) in
accordance with Sec.  537.8(b)(1), (2), (3), and (4) as appropriate.
    (c) Exceptions. The pre-model year report, mid-model year report,
and supplementary report(s) submitted by an incomplete automobile
manufacturer for any model year are not required to contain the
information specified in Sec.  537.7(c)(4)(xv) through (xviii) and
(c)(5). The information provided by the incomplete automobile
manufacturer under Sec.  537.7(c) shall be according to base level
instead of model type or carline.
0
24. Amend Sec.  537.7 by revising paragraphs (a)(2) and (3) as follows:

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

    (a) * * *
    (2) Provide a report with the information required by paragraph
(a)(1) of this section by each domestic and import passenger automobile
fleet, as specified in part 531 of this chapter, and by each the light
truck fleet, as specified in part 533 of this chapter, for the current
model year.
    (3) Provide the information required by paragraph (a)(1) for pre-
and mid-model year reports using the NHTSA CAFE Projections Reporting
Template, OMB Control No. 2127-0019, NHTSA Form 1474. The required
reporting template can be downloaded from http://www.nhtsa.gov.
* * * * *
0
25. Amend Sec.  537.7 by revising paragraphs (b)(3), (b)(4), (b)(5),
(c)(1), (c)(2), (c)(3) and (c)(7)(i), (c)(7)(ii) and (c)(7)(iii) to
read as follows:
* * * * *
    (b) * * *
    (3) State the projected required fuel economy for the
manufacturer's passenger automobiles and light trucks determined in
accordance with 49 CFR 531.5(c) and 49 CFR 533.5 and based upon the
projected sales figures provided under paragraph (c)(2) of this
section. For each unique model type and footprint combination of the
manufacturer's automobiles, provide the information specified in
paragraph (b)(3)(i) and (ii) of this section and the CAFE Projections
Reporting Template, OMB Control No. 2127-0019, NHTSA Form 1474.
    (i) In the case of passenger automobiles:
    (A) Beginning model year 2013, base tire as defined in 49 CFR
523.2,
    (B) Beginning model year 2013, front axle, rear axle and average
track width as defined in 49 CFR 523.2,
    (C) Beginning model year 2013, wheelbase as defined in 49 CFR
523.2, and
    (D) Beginning model year 2013, footprint as defined in 49 CFR
523.2.
    (E) The fuel economy target value for each unique model type and
footprint entry listed in accordance with the equation provided in 49
CFR parts 531.
    (4) State the projected final required fuel economy that the
manufacturer anticipates having if changes implemented during the model
year will cause the targets to be different from the target fuel
economy projected under paragraph (b)(3) of this section.
    (5) State whether the manufacturer believes that the projections it
provides under paragraphs (b)(2) and (b)(4) of this section, or if it
does not provide an average or target under those paragraphs, the
projections it provides under paragraphs (b)(1) and (b)(3) of this
section, sufficiently represent the manufacturer's average and target
fuel economy for the current model year for purposes of the Act. In the
case of a manufacturer that believes that the projections are not
sufficiently representative for those purposes, state the specific
nature of any reason for the insufficiency and the specific additional
testing or derivation of fuel economy values by analytical methods
believed by the manufacturer necessary to eliminate the insufficiency
and any plans of the manufacturer to undertake that testing or
derivation voluntarily and submit the resulting data to the
Environmental Protection Agency under 40 CFR 600.509.
    (c) * * *
    (1) For each model type of the manufacturer's automobiles, provide
the information specified in paragraph (c)(2) of this section in the
NHTSA CAFE Projections Reporting Template (OMB Control No. 2127-0019,
NHTSA Form 1474) and list the model types in order of increasing
average inertia weight from top to bottom.
    (2)(i) Combined fuel economy; and
    (ii) Projected sales for the current model year and total sales of
all model types.
    (3) For each vehicle configuration whose fuel economy was used to
calculate the fuel economy values for a model type under paragraph
(c)(2) of this section, provide the information specified in paragraph
(c)(4) of this section in the NHTSA CAFE Projections Reporting Template
(OMB Control No. 2127-0019, NHTSA Form 1474).
* * * * *
    (7) * * *
    (i) Provide a list of each air conditioning efficiency improvement
technology utilized in your fleet(s) of vehicles for each model year.
For each technology identify vehicles by make and model types that have
the technology, which compliance category those vehicles belong to and
the number of vehicles for each model equipped with the technology. For
each compliance category (domestic passenger car, import passenger car
and light truck) report the air conditioning fuel consumption
improvement value in gallons/mile in accordance with the equation
specified in 40 CFR 600.510-12(c)(3)(i).
    (ii) Provide a list of off-cycle efficiency improvement
technologies utilized in your fleet(s) of vehicles for each model year
that is pending or approved by EPA. For each technology identify
vehicles by make and model types that have the technology, which
compliance category those vehicles belong to, the number of vehicles
for each model equipped with the technology, and the associated off-
cycle credits (grams/mile) available for each technology. For each
compliance

category (domestic passenger car, import passenger car and light truck)
calculate the fleet off-cycle fuel consumption improvement value in
gallons/mile in accordance with the equation specified in 40 CFR
600.510-12(c)(3)(ii).
    (iii) Provide a list of full-size pick-up trucks in your fleet that
meet the mild and strong hybrid vehicle definitions. For each mild and
strong hybrid type, identify vehicles by make and model types that have
the technology, the number of vehicles produced for each model equipped
with the technology, the total number of full size pick-up trucks
produced with and without the technology, the calculated percentage of
hybrid vehicles relative to the total number of vehicles produced and
the associated full-size pickup truck credits (grams/mile) available
for each technology. For the light truck compliance category calculate
the fleet Pick-up Truck fuel consumption improvement value in gallons/
mile in accordance with the equation specified in 40 CFR 600.510-
12(c)(3)(iii).
* * * * *
0
26. Amend Sec.  537.8 by revising paragraphs (a)(3), paragraph
(b)(3)(i) and (ii), and paragraph (c)(1) and adding paragraphs (a)(4)
and (b)(4) to read as follows:

Sec.  537.8  Supplementary reports.

    (a) * * *
    (3) Each manufacturer whose pre- or mid-model year report omits any
of the information specified in Sec.  537.7(b) or (c) shall file a
supplementary report containing the information specified in paragraph
(b)(3) of this section.
    (4) Each manufacturer whose pre- or mid-model year report omits any
of the information specified in Sec.  537.5(c) shall file a
supplementary report containing the information specified in paragraph
(b)(4) of this section.
    (b) * * *
    (3) * * *
    (i) All of the information omitted from the pre- or mid-model year
report under Sec.  537.7(b) and (c); and
    (ii) Such revisions of and additions to the information submitted
by the manufacturer in its pre-model year report regarding the
automobiles produced during the current model year as are necessary to
reflect the information provided under paragraph (b)(3)(i) of this
section.
    (4) The supplementary report required by paragraph (a)(4) of this
section must contain:
    (i) All information omitted from the pre-model year report under
Sec.  537.6(c)(2); and
    (ii) Such revisions of and additions to the information submitted
by the manufacturer in its pre-model year report regarding the
automobiles produced during the current model year as are necessary to
reflect the information provided under paragraph (b)(4)(i) of this
section.
    (c)(1) Each report required by paragraph (a)(1), (2), (3), or (4)
of this section must be submitted in accordance with Sec.  537.5(c) not
more than 45 days after the date on which the manufacturer determined,
or could have determined with reasonable diligence, that a report is
required under paragraph (a)(1), (2), (3), or (4) of this section.
* * * * *

Environmental Protection Agency

List of Subjects

40 CFR Part 85

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

40 CFR Part 86

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

    For the reasons stated in the preamble, the Environmental
Protection Agency proposes to amend 40 CFR parts 85 and 86 as follows:

PART 85--CONTROL OF AIR POLLUTION FROM MOBILE SOURCES

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

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

Subpart F--[Amended]

0
28. Amend Sec.  85.525 by revising paragraphs (b)(1)(iii) and
(b)(1)(iv) to read as follows:

Sec.  85.525  Applicable standards.

* * * * *
    (b) * * *
    (1) * * *
    (iii) If the OEM complied with the nitrous oxide (N2O)
and methane (CH4) standards and provisions set forth in 40
CFR 86.1818-12(f)(1) or (3), and the fuel conversion CO2
measured value is lower than the in-use CO2 exhaust emission
standard, you also have the option through model year 2020 to convert
the difference between the in-use CO2 exhaust emission
standard and the fuel conversion CO2 measured value into GHG
equivalents of CH4 and/or N2O, using 298 g
CO2 to represent 1 g N2O and 25 g CO2
to represent 1 g CH4. You may then subtract the applicable
converted values from the fuel conversion measured values of
CH4 and/or N2O to demonstrate compliance with the
CH4 and/or N2O standards. This option may not be
used for model year 2021 or later.
    (iv) Optionally, through model year 2020, compliance with
greenhouse gas emission requirements may be demonstrated by comparing
emissions from the vehicle prior to the fuel conversion to the
emissions after the fuel conversion. This comparison must be based on
FTP test results from the emission data vehicle (EDV) representing the
pre-conversion test group. The sum of CO2, CH4,
and N2O shall be calculated for pre- and post-conversion FTP
test results, where CH4 and N2O are weighted by
their global warming potentials of 25 and 298, respectively. The post-
conversion sum of these emissions must be lower than the pre-conversion
conversion greenhouse gas emission results. CO2 emissions
are calculated as specified in 40 CFR 600.113-12. If statements of
compliance are applicable and accepted in lieu of measuring
N2O, as permitted by EPA regulation, the comparison of the
greenhouse gas results also need not measure or include N2O
in the before and after emission comparisons. This option may not be
used for model year 2021 or later.
* * * * *

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

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

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

0
30. Amend Sec.  86.1818-12 as follows:
0
a. Revise paragraphs (c)(2)(i)(A) through (C);
0
b. Revise paragraphs (c)(3)(i)(A), (B) and (D);
0
c. Revise paragraph (f) introductory text; and paragraphs (f)(1)
through (3).
    The revisions read as follows:

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

* * * * *
    (c) * * *
    (2) * * *
    (i) * * *
    (A) For passenger automobiles with a footprint of less than or
equal to 41 square feet, the gram/mile CO2 target value
shall be selected for the

appropriate model year from Table 1 to Paragraph (c)(2)(i)(A).
BILLING CODE 4910-59-P
[GRAPHIC] [TIFF OMITTED] TP24AU18.317

    (B) For passenger automobiles with a footprint of greater than 56
square feet, the gram/mile CO2 target value shall be
selected for the appropriate model year from Table 1 to Paragraph
(c)(2)(i)(B).

[GRAPHIC] [TIFF OMITTED] TP24AU18.318

    (C) For passenger automobiles with a footprint that is greater than
41 square feet and less than or equal to 56 square feet, the gram/mile
CO2 target value shall be calculated using the following
equation and rounded to the nearest 0.1 grams/mile, except that for any
vehicle footprint the maximum CO2 target value shall be the
value specified for the same model year in paragraph (c)(2)(i)(B) of
this section:

Target CO2 = [a x [fnof]] + b

Where:

[fnof] is the vehicle footprint, as defined in Sec.  86.1803; and
a and b are selected from Table 1 to Paragraph (c)(2)(i)(C):

[GRAPHIC] [TIFF OMITTED] TP24AU18.319

* * * * *
    (3) * * *
    (i) * * *
    (A) For light trucks with a footprint of less than or equal to 41
square feet, the gram/mile CO2 target value shall be
selected for the appropriate model year from Table 1 to Paragraph Table
1 to Paragraph (c)(3)(i)(A):
BILLING CODE 4910-59-C

[GRAPHIC] [TIFF OMITTED] TP24AU18.320

    (B) For light trucks with a footprint that is greater than 41
square feet and less than or equal to the maximum footprint value
specified in the table below for each model year, the gram/mile
CO2 target value shall be calculated using the following
equation and rounded to the nearest 0.1 grams/mile, except that for any
vehicle footprint the maximum CO2 target value shall be the
value specified for the same model year in paragraph (c)(3)(i)(D) of
this section:

Target CO2 = (a x [fnof]) + b

Where:

[fnof] is the footprint, as defined in Sec.  86.1803; and
a and b are selected from Table 1 to Paragraph Table 1 to Paragraph
(c)(3)(i)(B): For the appropriate model year:

[GRAPHIC] [TIFF OMITTED] TP24AU18.321

* * * * *
    (D) For light trucks with a footprint greater than the minimum
value specified in the table below for each model year, the gram/mile
CO2 target value shall be selected for the appropriate model
year from Table 1 to Paragraph Table 1 to Paragraph (c)(3)(i)(D):

[GRAPHIC] [TIFF OMITTED] TP24AU18.322

* * * * *
    (f) Nitrous oxide (N2O) and methane (CH4) exhaust emission
standards for passenger automobiles and light trucks. Each
manufacturer's fleet of combined passenger automobile and light trucks
must comply with N2O and CH4 standards using
either the provisions of paragraph (f)(1), or, through model year 2020,
provisions of paragraphs (f)(2) or (3) of this section. Except with
prior EPA approval, a manufacturer may not use the provisions of both
paragraphs (f)(1) and (2) of this section in a model year. For example,
a manufacturer may not use the provisions of paragraph (f)(1) of this
section for their passenger automobile fleet and the provisions of
paragraph (f)(2) for their light truck fleet in the same model year.
The manufacturer may use the provisions of both paragraphs (f)(1) and
(through model year 2020) (3) of this section in a model year. For
example, a manufacturer may meet the N2O standard in
paragraph (f)(1)(i) of this section and an alternative CH4
standard determined under paragraph (f)(3) of this section. Vehicles
certified using the N2O data submittal waiver provisions of
Sec.  86.1829(b)(1)(iii)(G) are not required to be tested for
N2O under the in-use testing programs required by Sec.
86.1845 and Sec.  86.1846.
    (1) Standards applicable to each test group. (i) Exhaust emissions
of nitrous oxide (N2O) shall not exceed 0.010 grams per mile
at full useful life, as measured according to the Federal Test
Procedure (FTP) described in subpart B of this part. Through model year
2020, manufacturers may optionally determine an alternative
N2O standard under paragraph (f)(3) of this section. This
option may not be used for model year 2021 or later. (ii) Exhaust
emissions of methane (CH4) shall not exceed 0.030 grams per
mile at full useful life, as measured according to the Federal Test
Procedure (FTP) described in subpart B of this part. Through model year
2020, manufacturers may optionally determine an alternative
CH4 standard under paragraph (f)(3) of this section. This
option may not be used for model year 2021 or later.
    (2) Include N2O and CH4 in fleet averaging program. Through model
year 2020, manufacturers may elect to not meet the emission standards
in paragraph (f)(1) of this section. This option may not be used for
model year 2021 or later. Manufacturers making this election shall
include N2O and CH4 emissions in the
determination of their fleet average carbon-related exhaust emissions,
as calculated in 40 CFR part 600, subpart F. Manufacturers using this
option must include both N2O and CH4 full useful
life values in the fleet average calculations for passenger automobiles
and light trucks. Use of this option will account for N2O
and CH4 emissions within the carbon-related exhaust emission
value determined for each model type according to the provisions of 40
CFR part 600. This option requires the determination of full useful
life emission values for both the Federal Test Procedure and the
Highway Fuel Economy Test. Manufacturers selecting this option are not
required to demonstrate compliance with the standards in paragraph
(f)(1) of this section.
    (3) Optional use of alternative N2O and/or CH4 standards. Through
model

year 2020, manufacturers may select an alternative standard applicable
to a test group, for either N2O or CH4, or both.
This option may not be used for model year 2021 or later. For example,
a manufacturer may choose to meet the N2O standard in
paragraph (f)(1)(i) of this section and an alternative CH4
standard in lieu of the standard in paragraph (f)(1)(ii) of this
section. The alternative standard for each pollutant must be greater
than the applicable exhaust emission standard specified in paragraph
(f)(1) of this section. Alternative N2O and CH4
standards apply to emissions measured according to the Federal Test
Procedure (FTP) described in Subpart B of this part for the full useful
life, and become the applicable certification and in-use emission
standard(s) for the test group. Manufacturers using an alternative
standard for N2O and/or CH4 must calculate
emission debits according to the provisions of paragraph (f)(4) of this
section for each test group/alternative standard combination. Debits
must be included in the calculation of total credits or debits
generated in a model year as required under Sec.  86.1865-12(k)(5). For
flexible fuel vehicles (or other vehicles certified for multiple fuels)
you must meet these alternative standards when tested on any applicable
test fuel type.
* * * * *
0
31. Revise Sec.  86.1867-12 to read as follows:

Sec.  86.1867-12  CO2 credits for reducing leakage of air conditioning
refrigerant.

    Through model year 2020, manufacturers may generate credits
applicable to the CO2 fleet average program described in
Sec.  86.1865-12 by implementing specific air conditioning system
technologies designed to reduce air conditioning refrigerant leakage
over the useful life of their passenger automobiles and/or light
trucks. Manufacturers may not generate these credits for model year
2021 or later. Credits shall be calculated according to this section
for each air conditioning system that the manufacturer is using to
generate CO2 credits. Manufacturers may also generate early
air conditioning refrigerant leakage credits under this section for the
2009 through 2011 model years according to the provisions of Sec.
86.1871-12(b).

    Issued on August 1, 2018, in Washington, DC, under authority
delegated in 49 CFR 1.95 and 501.5.
Heidi R. King,
Deputy Administrator, National Highway Traffic Safety Administration.

Andrew R. Wheeler,
Acting Administrator, Environmental Protection Agency.
[FR Doc. 2018-16820 Filed 8-23-18; 8:45 am]
 BILLING CODE 4910-59-P


Dear White House Council on Environmental Quality (CEQ) and the White House Environmental Justice Advisory Council (WHEJAC):
My name is Jerimiah Sanders, and I am the Field Environmental Officer for U.S. Department of Housing and Urban Development's (HUD) Region 8. I have served in this position since June of 2016. Prior to my current position in HUD's Region 8 office, I was in HUD's Office of Environment and Energy in HUD Headquarters for nine years and focused on National Environmental Policy Act (NEPA) and related compliance as well. I appreciate President Biden, Vice President Harris, Secretary Fudge, and the rest of the Administration taking on these longstanding problems and issues, and I look forward to helping in any way I can. Over the years, my current and former colleagues and I have had concerns in the following areas. I submit these comments in my individual capacity.
Lack of Meaningful Public Participation: Under 24 CFR Part 50, where HUD performs the environmental reviews itself, there is no required public notice or comment period for Environmental Assessments (EA) or Findings of Significant Impacts (FONSI). This means that the day HUD completes the review that construction contracts and activities can commence. This includes the mortgage insurance guarantees amounting to often more than $100 million per project or vouchers being placed for decades into new construction activities. While the reviews are now posted online upon completion, it is unclear how anyone would be aware of the review being posted without prior knowledge, and furthermore, it is unclear how the comment can be meaningfully considered when the project is already being constructed the same day the Environmental Review Record (ERR) is made public. Is this appropriate?
Lack of Monitoring and Accountability: In addition to 24 CFR Part 50, HUD has 24 CFR Part 58. This regulation codifies a provision of the Housing and Community Development Act of 1974 at Section 104(g) that allows Tribal, state, and local governments to perform NEPA reviews for certain HUD programs. The only program office with any dedicated environmental monitoring is the Office of Community Planning and Development (CPD), which contains the NEPA office, the Office of Environment and Energy. As a member of this office, I routinely monitor grantees that were last monitored 15 to 18 years ago with significant issues, including floodplains and site contamination. Some programs, such as the Self-Help Homeownership Opportunity Program (SHOP) and all programs within the Office of Public Housing (OPH) including Project-based Vouchers under Section 8, do not have regular environmental monitoring. This means that none of these projects or public housing agencies are monitored at all unless they are in a CPD entitlement community or otherwise receiving other CPD assistance from the state. This means that thousands of public housing agencies' units go unmonitored, including those built prior to our regulations on floodways and site contamination. This is especially problematic given that significant amounts of public housing were constructed on polluted sites.
Within the last 5 years, I have seen the records of two housing agencies that were obviously noncompliant. I received one through an error and the other through a reporter's Freedom of Information Act (FOIA) requests. I was told that it is not the policy of the Office of Public Housing to follow-up on known violations. I am not sure how this meets our statutory obligations. These public housing agencies are in two communities that are not subject to my regular monitoring. We had previously made some progress on some of these known issues, but unfortunately, we then started to backslide. Please see the HUD Office of Inspector General (OIG) report on known issues with NEPA and OPH: https://www.hudoig.gov/reports-publications/report/hud-did-not-adequately-implement-or-provide-adequate-oversight-ensure
Furthermore, I recently encountered a situation where tenants in HUD-assisted public housing units were (and possibly are still) being knowingly exposed to radon for nearly two years at this point. HUD failed to act until the housing authority requested approval for roof repairs on the units, and HUD informed the city that it could not certify that the units were free of radioactive gas when there was a radon professional on the local news indicating that there are known radon exposures. It is unclear how or why HUD would knowingly continue to support units with Federal funds that do not comply with state implied warranties of habitability or our regulatory obligation to keep HUD programs free of radioactive substances and gases under 24 CFR 58.5(i)(2). It is also unclear why the news story and tenants' testimony did not trigger HUD's obligations under 24 CFR 982.405(g) or the requirement to re-evaluate the environmental review due to a change in an environmental condition under 24 CFR 58.47(a)(2). I recently received notice that the entire complex was tested, but I have not received confirmation that mitigation repairs have occurred. These issues were also the subject of a HUD OIG investigation listed below after several news reports. HUD was tasked by Congress to ensure that public housing was free of radon in the Stewart B. McKinney Homeless Assistance Amendments Act of 1988. The links below document its failure to do so, including a Government Accountability Office (GAO) Report from 1991 stating that HUD has failed to implement testing and mitigation as established by the Environmental Protection Agency (EPA) and required by statute.
      "Cancer Cloud: Government Ignores Radon Risks in Public Housing," The Oregonian: https://projects.oregonlive.com/radon/?fbclid=IwAR1JqNCKWcwfi8YAnlA59qpB-p0APMTyrD--qWLyFBqZGGvKwWCXQCunpvM
      "CBS4 Investigation Finds Dangerous Radon Levels In Public Housing," CBS Denver: https://denver.cbslocal.com/2020/02/25/dangerous-radon-levels-public-housing-colorado-denver/
      "Denver Housing Authority To Begin Testing All Of Its Public Housing Complexes For Radon," CBS Denver: https://denver.cbslocal.com/2021/04/07/denver-housing-authority-testing-public-housing-complexes-radon/
      "`Critical for HUD to act': agency watchdog says public housing tenants need radon protections," The Oregonian: https://www.oregonlive.com/politics/2021/04/critical-for-hud-to-act-agency-watchdog-says-public-housing-tenants-need-radon-protections.html
      "HUD Resists Public Housing Radon Safeguards," PEER.org: https://peer.org/hud-resists-public-housing-radon-safeguards/
      "HUD Program Offices' Policies and Approaches for Radon," HUD Office of Inspector General: https://www.hudoig.gov/reports-publications/report/hud-program-offices-policies-and-approaches-radon
      "Radon Testing in Federal Buildings Needs Improvement and HUD's Radon Policy Needs Strengthening," Government Accountability Office: https://www.gao.gov/assets/t-rced-91-48.pdf
HUD seemingly codified its neglect into a statute in the Economic Growth, Regulatory Relief, and Consumer Protection Act. OPH staff has not been able to inform me of any remaining provisions to protect tenants in housing with known adverse environmental and health impacts but subject to this exemption, and it remains unclear how 24 CFR 982.405(g) is being applied for indoor air pollution from chemical vapor intrusions or radon. The statutory provision was written under the assumption that NEPA and the related laws and authorities are a regulatory burden without considering that NEPA and the related laws are the agency's operational tool for public health issues. At minimum, there should be a provision for the Secretary to reinstitute or reapply the NEPA regulations on a project or grantee-specific basis if there are public health threats or threats to historic and cultural resources, including and especially concerning those of Native American Tribes. At this time, it does not appear that HUD has a means to address units exposed to toxic and radioactive gases if the units are subject to this exemption. What are an agency's obligations to re-evaluate known exposures to contaminants?
Small PHA Exemption Regulatory Notice: https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-04004.pdf?utm_campaign=pi+subscription+mailing+list&utm_source=federalregister.gov&utm_medium=email
Contract Renewals and Environmental Reviews: Often, HUD will renew contracts for assistance that will last over decades, and HUD renews these contracts by simply updating the reviews from years ago. Should a new review be performed when renewing these contracts for twenty years and typically, without ever having received a public notice and comment period? What are an agency's responsibilities to ensure its contracts provide for the enforcement of its NEPA regulations including necessary re-evaluations due to known or suspected public health threats?
Thank you for your time and expertise. I am very grateful for this opportunity to offer these comments and this outlet to address environmental justice concerns throughout the country.
Sincerely,
Jerimiah Sanders