# Alternative Fuel Transportation Program

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A95-14236

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** June 12, 1995
- **Citation:** 60 FR 30795

## Text

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]

BILLING CODE 6450-01-P

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A95-14236. Public record. Not legal advice.