Alternative Fuel Transportation Program

SUMMARY: On February 28, 1995, the Department of Energy (DOE) published

a notice of proposed rulemaking (60 FR 10970) to implement statutorily

required alternative fueled vehicle acquisition requirements applicable

to certain alternative fuel providers and State government fleets under

sections 501 and 507(o) of the Energy Policy Act of 1992 (Act),

respectively. Public hearings were held in three cities and the 60-day

public comment period closed on May 1, 1995. The purpose of this notice

is to reopen the comment period for 30 days in order to solicit

comments on options being given consideration in light of the many

comments for and against altering the dates of the statutory vehicle

acquisition schedules.

DATES: Written comments (11 copies) on the issues presented in this

notice must be received by the Department on or before July 12, 1995.

ADDRESSES: Written comments (11 copies) should be addressed to: U.S.

Department of Energy, Office of Energy Efficiency and Renewable Energy,

EE-33, Docket No. EE-RM-95-110A, 1000 Independence Ave., SW,

Washington, DC 20585, (202-586-3012).

Docket: Supporting information used in developing the proposed rule

and written comments received on the Notice of Proposed Rulemaking are

contained in Docket No. EE-RM-95-110A. This Docket is available for

examination in DOE's Freedom of Information Reading Room, 1E-090,

Forrestal Building, 1000 Independence Avenue, S.W., Washington, D.C.

20585, 202-586-6020, between 9 a.m. and 4 p.m., Monday through Friday,

except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mr. Kenneth R. Katz, Program Manager,

Office of Energy Efficiency and Renewable Energy (EE-33), U.S.

Department of Energy, 1000 [[Page 30796]] Independence Avenue, S.W.,

Washington, DC 20585, (202) 586-6116.

SUPPLEMENTARY INFORMATION: In the February 28, 1995, notice of proposed

rulemaking, DOE described the statutory provisions of the Act that

impose the alternative fueled vehicle acquisition schedules and provide

for a starting date of September 1, 1995 (the beginning of model year

1996). Among other things, DOE pointed out that, with respect to the

acquisition requirements applicable to alternative fuel providers in

model years 1997 and thereafter, section 501(b) of the Act authorizes

DOE to reduce the percentage to no less than 20 percent and to extend

the deadlines for up to two years. 42 U.S.C. 13251(b). DOE indicated

that it did not intend to exercise its discretion under section 501(b),

but requested comment on the conditions that should be the basis for

such action. DOE also pointed out that, with respect to the statutory

vehicle acquisition schedule applicable to State government fleets,

section 507(o) does not contain a provision similar to section 501(b),

and therefore, does not explicitly authorize DOE to amend the

percentages or deadlines in the statutory schedule. 60 FR 10970-1.

DOE received a significant amount of comment on the desirability of

a delay of the vehicle acquisition schedules. Some of the comments

argue that DOE should delay the acquisition schedules so as to provide

the same amount of lead time as the Act contemplates between the

statutory deadlines for promulgation of final regulations (January 1,

1994, for alternative fuel providers and April 24, 1994, for State

fleets) and the date the vehicle acquisition requirements take effect

(September 1, 1995). Others argue for a one or two-year delay of the

vehicle acquisition requirements for both alternative fuel providers

and State fleets. A one-year delay would shift the starting point for

both vehicle acquisition schedules to the beginning of model year 1997

on September 1, 1996. A two-year delay would shift the starting point

for both vehicle acquisition schedules to the beginning of model year

1998 on September 1, 1997. In making a case for delay, some comments

have argued that a hiatus between the date of promulgation and the date

the vehicle acquisition requirements become effective is needed so that

those who are subject to the regulations can take necessary actions to

comply and suppliers of alternative fuel and alternative fueled

vehicles can adjust to the requirements. Moreover, some State officials

have argued that a delay is necessary because section 507(o)(2)(A) of

the Act provides for a 12-month period after promulgation of final

regulations during which the State can submit an Alternative State

Plan.

Other commenters argue against any modification of the statutory

schedule, claiming that such a delay would be detrimental to those who

planned and acted in light of the September 1, 1995, beginning date.

They argue that the exemption process is adequate to provide relief to

those who cannot comply for good cause.

DOE recognizes that it is appropriate to provide for lead time

between the date the final regulations are promulgated and the date the

vehicle acquisition requirements are enforced. Lead time could be

provided by amending the statutory vehicle acquisition schedule,

staying enforcement, or some combination of amending the schedule and

staying enforcement. However, DOE must act within the constraints on

its delegated authority under the Act to modify the statutory vehicle

acquisition schedules. In this connection, DOE invites comment on the

legal implications of: (1) The omission from section 501(b) of explicit

authority to modify the model year 1996 percentage applicable to

alternative fuel providers; and (2) the lack of any explicit authority

in section 507(o) to change the scheduled percentages applicable to

State government fleets for model year 1996 or any model year

thereafter. The Act does not provide any restrictions on DOE's

enforcement discretion.

DOE also seeks comment on options for staying enforcement of the

vehicle acquisition requirements in order to provide lead time. Relying

on its broad enforcement discretion, DOE could modify proposed

Sec. 490.605 to provide for a stay of enforcement for both alternative

fuel providers and State government fleets. Proposed Secs. 490.201 (the

requirements for State government fleets) and 490.302 (the requirements

for alternative fuel providers) would be modified to be ``subject to

Sec. 490.605.''

DOE seeks comment on several options being considered for

redrafting proposed Sec. 490.605. One option would provide in substance

that DOE: (1) Shall not enforce during the lead time period; and (2)

thereafter shall enforce as if the statutory vehicle acquisition

schedules had been amended to begin after the end of the lead time

period. For example, if DOE chose to provide for one model year of lead

time, this approach would provide for no enforcement in model year 1996

and enforcement of the model year 1996 requirements in model year 1997,

and so on. Another option would only provide that DOE shall not enforce

during the lead time period, but would not affect the enforcement

requirements for later model years. The difference between these

options is that under the latter option, after expiration of the lead

time period, enforcement would begin at the applicable percentage set

forth in the statutory vehicle acquisition schedule rather than at the

percentage applicable for model year 1996.

The options being considered for the duration of the lead time

period include one model year, two model years, or the lead time

specifically provided by section 501 and 507(o) (20 months and 16

months, respectively). However, DOE is open to other suggestions.

A stay of enforcement would not preclude modifying the alternative

fuel providers' vehicle acquisition schedule for model year 1997 and

thereafter consistent with section 501(b) of the Act. Neither would it

preclude processing of exemption requests under the criteria set forth

in sections 501(a)(5) and 507(i) of the Act.

Options involving a stay of enforcement would have the virtue of

leaving intact the statutory provision to acquire alternative fueled

vehicles in model year 1996 and future years. Those who may have acted

in reliance on the dates in the statutory schedule, such as the major

domestic automobile manufacturers, could benefit from the stimulus to

purchase that the program would still provide. In this connection, it

is worth noting that Ford and Chrysler have indicated their plans to

accept orders for alternative fuel vehicles during the second half of

model year 1995 with delivery starting during the first half of model

year 1996. They, as well as the General Motors Corporation, have also

indicated that they have model year 1997 plans to broaden their product

offerings.

DOE urges interested members of the public to comment on the

important issue discussed in this notice.

Issued in Washington, DC on June 2, 1995.

Brian T. Castelli,

Chief-of-Staff, Energy Efficiency and Renewable Energy.

[FR Doc. 95-14236 Filed 6-9-95; 8:45 am]

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