49 CFR Part 535 — Medium- and Heavy-Duty Vehicle Fuel Efficiency Program

PART 535—MEDIUM- AND HEAVY-DUTY VEHICLE FUEL EFFICIENCY PROGRAM Authority: 49 U.S.C. 32902 ; Source: 81 FR 74238, Oct. 25, 2016, unless otherwise noted. § 535.1 Scope. This part establishes fuel consumption standards pursuant to 49 U.S.C. 32902(k) for work trucks and commercial medium- and heavy-duty on-highway vehicles (hereafter referenced as heavy-duty vehicles), and engines manufactured for sale in the United States. This part establishes a credit program that manufacturers may use to comply with standards and requirements for manufacturers to provide reports to the National Highway Traffic Safety Administration regarding their efforts to reduce the fuel consumption of heavy-duty vehicles and engines. [89 FR 18819, Mar. 15, 2024] § 535.2 Purpose. The purpose of this part is to reduce the fuel consumption of new heavy-duty vehicles and engines by establishing maximum levels for fuel consumption standards while providing a flexible credit program to assist manufacturers in complying with standards. § 535.3 Applicability. (a) This part applies to manufacturers that produce complete and incomplete heavy-duty vehicles as defined in 49 CFR part 523, and to the manufacturers of all heavy-duty engines manufactured for use in the applicable vehicles for each given model year. (b) This part also applies to alterers, final stage manufacturers, and intermediate manufacturers producing vehicles and engines or assembling motor vehicles or motor vehicle equipment under special conditions. Manufacturers comply with this part by following the special conditions in 40 CFR 1037.620, 1037.621, and 1037.622 in which EPA allows manufacturer to: (1) Share responsibility for the vehicles they produce. Manufacturers sharing responsibility for complying with emissions and fuel consumption standards must submit to the agencies a joint agreement as specified in 49 CFR 534.8(a); (2) Have certificate holders sell or ship vehicles that are missing certain emission-related components to be installed by secondary vehicle manufacturers; (3) Ship partially complete vehicles to secondary manufacturers; (4) Build electric vehicles; and (5) Build alternative fueled vehicles from all types of heavy duty engine conversions. The conversion manufacturer must: (i) Install alternative fuel conversion systems into vehicles acquired from vehicle manufacturers prior to first retail sale or prior to the vehicle's introduction into interstate commerce. (ii) Be designated by the vehicle manufacturer and EPA to be the certificate holder. (iii) Omit alternative fueled vehicles from compliance with vehicle fuel consumption standards, if— (A) Excluded from EPA emissions standards; and (B) A reasonable technical basis exist that the modified vehicle continues to meet emissions and fuel consumption vehicle standards. (c) Vehicle and engine manufacturers that must comply with this part include manufacturers required to have approved certificates of conformity from EPA as specified in subparts C in 40 CFR parts 1036 and 1037. (d) The following heavy-duty vehicles and engines are excluded from the requirements of this part: (1) Vehicles and engines manufactured prior to January 1, 2014, unless certified early under NHTSA's voluntary provisions in § 535.5. (2) Medium-duty passenger vehicles and other vehicles subject to the light-duty corporate average fuel economy standards in 49 CFR parts 531 and 533. (3) Recreational vehicles, including motor homes manufactured before January 1, 2021, except those produced by manufacturers voluntarily complying with NHTSA's early vocational standards for model years 2013 through 2020. (4) Aircraft vehicles meeting the definition of “motor vehicle”. For example, this would include certain convertible aircraft that can be adjusted to operate on public roads. (5) [Reserved] (6) Engines installed in heavy-duty vehicles that are not used to propel vehicles. Note, this includes engines used to indirectly propel vehicles (such as electrical generator engines that power to batteries for propulsion). (7) The provisions of this part do not apply to engines that are not internal combustion engines. For example, the provisions of this part do not apply to fuel cells. Note that gas turbine engines are internal combustion engines. (e) The following heavy-duty vehicles and engines are exempted from the requirements of this part: (1) Off-road vehicles. (2) Small business manufacturers. (ii) For Phase 2, fuel consumption standards apply on a delayed schedule for manufacturers meeting the small business criteria specified in 13 CFR 121.201 and in 40 CFR 86.1819-14(k)(5), 1036.150, and 1037.150. (A) Qualifying manufacturers of truck tractors, vocational vehicles, heavy duty pickups and vans, and engines are not subject to the fuel consumption standards for vehicles built before January 1, 2022, and engines (such as those engines built by small alternative fuel engine converters) with a date of manufacturer on or after November 14, 2011, and before January 1, 2022. Qualifying manufacturers may choose to voluntarily comply early. (B) Small manufacturers that certify their entire U.S.-directed production volume to the Phase 1 standards for calendar year 2021 may certify to the Phase 1 standards for model year 2022 (instead of the otherwise applicable Phase 2 standards). (iii) Small business manufacturers producing vehicles and engines that run on any fuel other than gasoline, E85, or diesel fuel meeting the criteria specified in 13 CFR 121.201 and in 40 CFR 86.1819-14(k)(5), 1036.150, and 1037.150 may delay complying with every new mandatory standard under this part by one model year. (3) [Reserved] (4) Engines for specialty vehicles. (f) For model year 2021 and later, vocational vehicle manufacturers building custom chassis vehicles ( e.g. (g) The fuel consumption standards in some cases apply differently for spark-ignition and compression-ignition engines or vehicles as specified in 40 CFR parts 1036 and 1037. Engine requirements are similarly differentiated by engine type and by primary intended service class, as described in 40 CFR 1036.140. (h) NHTSA may exclude or exempt vehicles and engines under special conditions allowed by EPA in accordance with 40 CFR parts 85, 86, 1036, 1037, 1039, and 1068. Manufacturers should consult the agencies if uncertain how to apply any EPA provision under the NHTSA fuel consumption program. It is recommend that manufacturers seek clarification before producing a vehicle. Upon notification by EPA of a fraudulent use of an exemption, NHTSA reserves that right to suspend or revoke any exemption or exclusion. (i) In cases where there are differences between the application of this part and the corresponding EPA program regarding whether a vehicle is regulated or not (such as due to differences in applicability resulting from differing agency definitions, etc.), manufacturers should contact the agencies to identify these vehicles and assess the applicability of the agencies' standards. The agencies will provide guidance on how the vehicles can comply. Manufacturers are required to identify these vehicles in their final reports submitted in accordance with § 535.8. [81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18819, Mar. 15, 2024] § 535.4 Definitions. The terms manufacture manufacturer commercial medium-duty on highway vehicle commercial heavy-duty on highway vehicle fuel work truck Adjustable parameter Administrator Advanced technology e.g., Alterer Alternative fuel conversion A to B testing Automated manual transmission Automatic tire inflation system Automatic transmission (AT) Auxiliary power unit Averaging set (1) Heavy-duty pickup trucks and vans. (2) Light heavy-duty (LHD) vehicles. (3) Medium heavy-duty (MHD) vehicles. (4) Heavy heavy-duty (HHD) vehicles. (5) Light heavy-duty engines subject to compression-ignition standards. (6) Medium heavy-duty engines subject to compression-ignition standards. (7) Heavy heavy-duty engines subject to compression-ignition standards. (8) Engines subject to spark-ignition standards. (9) Vehicle types certifying to optional custom chassis standards as specified in § 535.5(b)(6) form separate averaging sets for each vehicle type as specified in § 535.7(c). Axle ratio or Drive axle ratio, ka Basic vehicle frontal area Cab-complete vehicle Carryover Certificate holder Certificate of Conformity Certification Chassis-cab Chief Counsel Class (1) Class 2b vehicles (2) Class 3 through Class 8 vehicles Complete sister vehicle Complete vehicle Compression-ignition (CI) Configuration Container chassis trailer Curb weight Custom chassis vehicle Date of manufacture (1) Where the certificate holder is an engine manufacturer that does not manufacture the complete or incomplete vehicle, the date of manufacture of the vehicle is based on the date assembly of the vehicle is completed. (2) EPA and NHTSA may approve an alternate date of manufacture based on the date on which the certifying (or primary) vehicle manufacturer completes assembly at the place of main assembly, consistent with the provisions of 40 CFR 1037.601 and 49 CFR 567.4. (3) A vehicle manufacturer that completes assembly of a vehicle at two or more facilities may ask to use as the month and year of manufacture, for that vehicle, the month and year in which manufacturing is completed at the place of main assembly, consistent with provisions of 49 CFR 567.4, as the model year. Note that such staged assembly is subject to the provisions of 40 CFR 1068.260(c). NHTSA's allowance of this provision is effective when EPA approves the manufacturer's certificates of conformity for these vehicles. Day cab Defeat device (1) Such conditions are substantially included in the applicable Federal emission test procedure for heavy-duty vehicles and heavy-duty engines described in subpart N of this part; (2) The need for the AECD is justified in terms of protecting the vehicle against damage or accident; (3) The AECD does not go beyond the requirements of engine starting; or (4) The AECD applies only for engines that will be installed in emergency vehicles, and the need is justified in terms of preventing the engine from losing speed, torque, or power due abnormal conditions of the emission control system, or in terms of preventing such abnormal conditions from occurring, during operation related to emergency response. Examples of such abnormal conditions may include excessive exhaust backpressure from an overloaded particulate trap, and running out of diesel exhaust fluid for engines that rely on urea-based selective catalytic reduction. Drayage tractor Dual-clutch transmission (DCT) Dual-fuel Electric vehicle Emergency vehicle Engine configuration Engine family Engine identification number identification number Excluded Exempted Family certification level (FCL) Family emission limit (FEL) Final drive ratio Final-stage manufacturer Flatbed trailer Fleet Fleet average fuel consumption Fleet average fuel consumption standard Flexible-fuel Fuel cell Fuel cell electric vehicle Fuel efficiency Fuel type Gaseous fuel Gear ratio Transmission gear ratio, Good engineering judgment Greenhouse gas Emissions Model (GEM) Gross axle weight rating (GAWR) Gross combination weight rating (GCWR) Gross vehicle weight rating (GVWR) Heavy-duty engine Heavy-duty off-road vehicle Heavy-duty vehicle Heavy-haul tractor Heavy heavy-duty (HHD) vehicle Hybrid Hybrid vehicle Hybrid engine Hybrid powertrain Idle operation Incomplete vehicle Innovative technology Intermediate manufacturer Light heavy-duty (LHD) vehicle Liquefied petroleum gas (LPG) Low rolling resistance tire Manual transmission (MT) Medium heavy-duty (MHD) vehicle Model type Model year (1) For tractors and vocational vehicles with a date of manufacture on or after January 1, 2021, the vehicle's model year (2) For Phase 1 tractors and vocational vehicles with a date of manufacture before January 1, 2021, model year (i) The manufacturer who holds the certificate of conformity for the vehicle must assign the model year based on the date when its manufacturing operations are completed relative to its annual model year period. In unusual circumstances where completion of your assembly is delayed, we may allow you to assign a model year one year earlier, provided it does not affect which regulatory requirements will apply. (ii) Unless a vehicle is being shipped to a secondary manufacturer that will hold the certificate of conformity, the model year must be assigned prior to introduction of the vehicle into U.S. commerce. The certifying manufacturer must re-designate the model year if it does not complete its manufacturing operations within the originally identified model year. A vehicle introduced into U.S. commerce without a model year is deemed to have a model year equal to the calendar year of its introduction into U.S. commerce unless the certifying manufacturer assigns a later date. (3) For engines, model year Motor Vehicle Multi-purpose Natural gas NHTSA Enforcement Neutral coasting Neutral idle Off-cycle technology Party Payload Percent (%) Petroleum Phase 1 Phase 2 Pickup truck Placed into service Plug-in hybrid electric vehicle (PHEV) Power take-off (PTO) Powertrain family 2 Preliminary approval Primary intended service class (1) Divide compression-ignition engines into primary intended service classes based on the following engine and vehicle characteristics: (i) Light heavy-duty “LHD” engines usually are not designed for rebuild and do not have cylinder liners. Vehicle body types in this group might include any heavy-duty vehicle built from a light-duty truck chassis, van trucks, multi-stop vans, and some straight trucks with a single rear axle. Typical applications will include personal transportation, light-load commercial delivery, passenger service, agriculture, and construction. The GVWR of these vehicles is normally below 19,500 pounds. (ii) Medium heavy-duty “MHD” engines may be designed for rebuild and may have cylinder liners. Vehicle body types in this group will typically include school buses, straight trucks with single rear axles, city tractors, and a variety of special purpose vehicles such as small dump trucks, and refuse trucks. Typical applications will include commercial short haul and intra-city delivery and pickup. Engines in this group are normally used in vehicles whose GVWR ranges from 19,500 to 33,000 pounds. (iii) Heavy heavy-duty “HHD” engines are designed for multiple rebuilds and have cylinder liners. Vehicles in this group are normally tractors, trucks, straight trucks with dual rear axles, and buses used in inter-city, long-haul applications. These vehicles normally exceed 33,000 pounds GVWR. (2) Divide spark-ignition engines into primary intended service classes as follows: (i) Spark-ignition engines that are best characterized by paragraph (1)(i) or (ii) of this section are in a separate “spark-ignition” primary intended service class. (ii) Spark-ignition engines that are best characterized by paragraph (1)(iii) of this section share a primary intended service class with compression-ignition heavy heavy-duty engines. Gasoline-fueled engines are presumed not to be characterized by paragraph (1)(iii) of this section; for example, vehicle manufacturers may install some number of gasoline-fueled engines in Class 8 trucks without causing the engine manufacturer to consider those to be heavy heavy-duty engines. (iii) References to “spark-ignition standards” in this part relate only to the spark-ignition engines identified in paragraph (2)(i) of this definition. References to “compression-ignition standards” in this part relate to compression-ignition engines, to spark-ignition engines optionally certified to standards that apply to compression-ignition engines, and to all engines identified under paragraph (2)(ii) of this definition as heavy heavy-duty engines. Rechargeable Energy Storage System (RESS) Refuse hauler Regional Regulatory category Regulatory subcategory (1) Heavy-duty pick-up trucks and vans. (2) Vocational vehicle subcategories have 18 separate vehicle service classes as shown in paragraphs (2)(i) and (ii) of this definition and include vocational tractors. Paragraph (2)(i) of this definition includes vehicles complying with Phase 1 standards. Phase 2 vehicles are included in paragraph (2)(ii) of this definition which have separate subcategories to account for engine characteristics, GVWR, and the selection of duty cycle for vocational vehicles as specified in 40 CFR 1037.510; vehicles may additionally fall into one of the subcategories defined by the custom-chassis standards in § 535.5(b)(6) and 40 CFR 1037.105(h). Manufacturers using the alternate standards in § 535.5(b)(6) and 40 CFR 1037.105(h) should treat each vehicle type as a separate vehicle subcategory. (i) Phase 1 Vocational Vehicle Subcategories. (B) Vocational MHD vehicles. (C) Vocational HHD vehicles. (ii) Phase 2 vocational vehicle subcategories. Engine type Vocational LHD vehicles Vocational MHD vehicles Vocational HHD vehicles CI Urban Urban Urban. CI Multi-Purpose Multi-Purpose Multi-Purpose. CI Regional Regional Regional. SI Urban Urban N/A. SI Multi-Purpose Multi-Purpose N/A. SI Regional Regional N/A. (3) Tractor subcategories are shown in paragraph (3)(i) of this definition for Phase 1 and 2. Paragraph (3)(i) includes 10 separate subcategories for tractors complying with Phase 1 and 2 standards. The heavy-haul tractor subcategory only applies for Phase 2. (i) Phase 1 and 2 truck tractor subcategories. Class 7 Class 8 day cabs Class 8 sleeper cabs Low-roof tractors Low-roof day cab tractors Low-roof sleeper cab tractors. Mid-roof tractors Mid-roof day cab tractors Mid-roof sleeper cab tractors. High-roof tractors High-roof day cab Tractors High-roof sleeper cab tractors. N/A Heavy-haul tractors (applies only to Phase 2 program). (ii) [Reserved] (4) [Reserved] (5) Engine subcategories are shown for each primary intended service class in paragraph (5)(i) of this definition. Paragraph (5)(i) includes 6 separate subcategories for engines which are the same for Phase 1 and 2 standards. (i) Engine subcategories. LHD engines MHD engines HHD engines CI engines for vocational vehicles CI engines for vocational vehicles CI engines for vocational vehicles. N/A CI engines for truck Tractors CI engines for truck tractors. All spark-ignition engines N/A. (ii) [Reserved] Relating to Revoke Roof height (1) Low-roof means a vehicle with a roof height of 120 inches or less. (2) Mid-roof means a vehicle with a roof height between 121 and 147 inches. (3) High-roof means a vehicle with a roof height of 148 inches or more. Round Secondary vehicle manufacturer Service class group (1) Spark-ignition engines, light heavy-duty compression-ignition engines, light heavy-duty vocational vehicles and heavy-duty pickup trucks and vans. (2) Medium heavy-duty compression-ignition engines and medium heavy-duty vocational vehicles and tractors. (3) Heavy heavy-duty compression-ignition engines and heavy heavy-duty vocational vehicles and tractors. Sleeper cab Small business manufacturer Spark-ignition (SI) Standard payload (1) For vocational vehicles: (i) 2.85 tons for light heavy-duty vehicles. (ii) 5.6 tons for medium heavy-duty vehicles. (iii) 7.5 tons for heavy heavy-duty vocational vehicles. (2) For tractors: (i) 12.5 tons for Class 7. (ii) 19 tons for Class 8. (iii) 43 tons for heavy-haul tractors. Standard trailer Stop-start stop-start Subconfiguration 2 Tank trailer Test group The agencies Tire pressure monitoring system (TPMS) Tire rolling resistance level (TRRL) Towing capacity Trade U.S.-directed production volume Useful life Vehicle configuration Vehicle family Vehicle identification number VIN. Vehicle service class vehicle service classes vehicle service classes (1) Phase 1 and Phase 2 tractors are divided based on GVWR into Class 7 tractors and Class 8 tractors. Where provisions apply to both tractors and vocational vehicles, Class 7 tractors are considered medium heavy-duty “MHD” vehicles and Class 8 tractors are considered heavy heavy-duty “HHD” vehicles. This paragraph applies for both hybrid and non-hybrid vehicles. (2) Phase 1 vocational vehicles are divided based on GVWR. Light heavy-duty “LHD” vehicles includes Class 2b through Class 5 vehicles; medium heavy-duty “MHD” vehicles includes Class 6 and Class 7 vehicles; and heavy heavy-duty “HHD” vehicles includes Class 8 vehicles. (3) Phase 2 vocational vehicles with spark-ignition engines are divided based on GVWR. Light heavy-duty “LHD” vehicles includes Class 2b through Class 5 vehicles, and medium heavy-duty “MHD” vehicles includes Class 6 through Class 8 vehicles. (4) Phase 2 vocational vehicles with compression-ignition engines are divided as follows: (i) Class 2b through Class 5 vehicles are considered light heavy-duty “LHD” vehicles. (ii) Class 6 through 8 vehicles are considered heavy heavy-duty “HHD” vehicles if the installed engine's primary intended service class is heavy heavy-duty (see 40 CFR 1036.140), except that Class 8 hybrid vehicles are considered heavy heavy-duty “HHD” vehicles regardless of the engine's primary intended service class. All other Class 6 through Class 8 vehicles are considered medium heavy-duty “MHD” vehicles. (5) Heavy-duty vehicles with no installed propulsion engine, such as electric vehicles, are divided as follows: (i) Class 2b through Class 5 vehicles are considered light heavy-duty “LHD” vehicles. (ii) Class 6 and 7 vehicles are considered medium heavy-duty “MHD” vehicles. (iii) Class 8 vehicles are considered heavy heavy-duty “HHD” vehicles. (6) In certain circumstances, manufacturers may certify vehicles to standards that apply for a different vehicle service class such as allowed in § 535.5(b)(6) and (c)(7). If manufacturers optionally certify vehicles to different standards, those vehicles are subject to all the regulatory requirements as if the standards were mandatory. Vehicle subfamily or subfamily Vocational tractor Zero emissions vehicle [89 FR 18819, Mar. 15, 2024, as amended at 89 FR 52950, June 24, 2024] § 535.5 Standards. (a) Heavy-duty pickup trucks and vans. i.e., (1) Mandatory standards. (2) Subconfiguration target standards. (A) The first alternative allows manufacturers to determine a fixed fuel consumption standard that is constant over the model years; and (B) The second alternative allows manufacturers to determine standards that are phased-in gradually each year. (ii) Calculate the subconfiguration target standards as specified in this paragraph (a)(2)(ii), using the appropriate coefficients from table 1 to paragraph (a)(2)(ii), choosing between the alternatives in paragraph (a)(2)(i) of this section. For electric or fuel cell heavy-duty vehicles, use compression-ignition vehicle coefficients “c” and “d” and for hybrid (including plug-in hybrid), dedicated and dual-fueled vehicles, use coefficients “c” and “d” appropriate for the engine type used. Round each standard to the nearest 0.001 gallons per 100 miles and specify all weights in pounds rounded to the nearest pound. Calculate the subconfiguration target standards using equation: 1 to this paragraph (a)(2)(ii). Equation 1 to Paragraph (a)(2)(ii) Subconfiguration Target Standard (gallons per 100 miles) = [c × (WF)] + d Where: WF = Work Factor = [0.75 × (Payload Capacity + Xwd)] + [0.25 × Towing Capacity] Xwd = 4wd Adjustment = 500 lbs. if the vehicle group is equipped with 4wd and all-wheel drive, otherwise equals 0 lbs. for 2wd. Payload Capacity = GVWR (lbs.) − Curb Weight (lbs.) (for each vehicle group) Towing Capacity = GCWR (lbs.) − GVWR (lbs.) (for each vehicle group) Table 1 to Paragraph ( a ii Model year(s) c d Phase 1 Alternative 1—Fixed Target Standards Compression Ignition (CI) Vehicle Coefficients 2016 to 2018 0.0004322 3.330 2019 to 2020 0.0004086 3.143 SI Vehicle Coefficients 2016 to 2017 0.0005131 3.961 2018 to 2020 0.0004086 3.143 Phase 1 Alternative 2—Phased-in Target Standards CI Vehicle Coefficients 2016 0.0004519 3.477 2017 0.0004371 3.369 2018 to 2020 0.0004086 3.143 SI Vehicle Coefficients 2016 0.0005277 4.073 2017 0.0005176 3.983 2018 to 2020 0.0004951 3.815 Phase 2—Fixed Target Standards CI Vehicle Coefficients 2021 0.0003988 3.065 2022 0.0003880 2.986 2023 0.0003792 2.917 2024 0.0003694 2.839 2025 0.0003605 2.770 2026 0.0003507 2.701 2027 to 2029 0.0003418 2.633 2030 0.00030762 2.370 2031 0.00027686 2.133 2032 0.00024917 1.919 2033 0.00022924 1.766 2034 0.00021090 1.625 2035 0.00019403 1.495 SI Vehicle Coefficients 2021 0.0004827 3.725 2022 0.0004703 3.623 2023 0.0004591 3.533 2024 0.0004478 3.443 2025 0.0004366 3.364 2026 0.0004253 3.274 2027 to 2029 0.0004152 3.196 2030 0.00037368 2.876 2031 0.00033631 2.589 2032 0.00030268 2.330 2033 0.00027847 2.143 2034 0.00025619 1.972 2035 0.00023569 1.814 (3) Fleet average fuel consumption standard. Where: Subconfiguration Target Standard i Volume i (A) A manufacturer may group together subconfigurations that have the same test weight (ETW), GVWR, and GCWR. Calculate work factor and target value assuming a curb weight equal to two times ETW minus GVWR. (B) A manufacturer may group together other subconfigurations if it uses the lowest target value calculated for any of the subconfigurations. (ii) For Phase 1, manufacturers must select an alternative for subconfiguration target standards at the same time they submit the model year 2016 pre-model year Report, specified in § 535.8. Once selected, the decision cannot be reversed and the manufacturer must continue to comply with the same alternative for subsequent model years. (4) Voluntary standards. (ii) A manufacturer must declare its intent to voluntarily comply with fuel consumption standards at the same time it submits a Pre-Model Report, prior to the compliance model year beginning as specified in § 535.8; and, once selected, the decision cannot be reversed and the manufacturer must continue to comply for each subsequent model year for all the vehicles and engines it manufactures in each regulatory category for a given model year. (iii) Calculate separate subconfiguration target standards for compression-ignition and spark-ignition vehicles for model years 2013 through 2015 using the equation in paragraph (a)(2)(ii) of this section, substituting the appropriate values for the coefficients in the following table as appropriate: Table 7—Coefficients for Voluntary Subconfiguration Target Standards Model Year(s) c d CI Vehicle Coefficients 2013 and 14 0.0004695 3.615 2015 0.0004656 3.595 SI Vehicle Coefficients 2013 and 14 0.0005424 4.175 2015 0.0005390 4.152 (iv) Calculate the fleet average fuel consumption standards for model years 2013 through 2015 using the equation in paragraph (a)(3) of this section. (5) Exclusion of vehicles not certified as complete vehicles. (6) Optional certification under this section. (i) For fuel consumption compliance, manufacturers may certify any complete or cab-complete spark-ignition vehicles above 14,000 pounds GVWR and at or below 26,000 pounds GVWR to the fuel consumption standards of this section. (ii) Manufacturers may apply the provisions of this section to cab-complete vehicles based on a complete sister vehicle. In unusual circumstances, manufacturers may ask the agencies to apply these provisions to Class 2b or Class 3 incomplete vehicles that do not meet the definition of cab-complete. (A) Except as specified in paragraph (a)(6)(iii) of this section, for purposes of this section, a complete sister vehicle is a complete vehicle of the same vehicle configuration as the cab-complete vehicle. A manufacturer may not apply the provisions of this paragraph (6) to any vehicle configuration that has a four-wheel rear axle if the complete sister vehicle has a two-wheel rear axle. (B) Calculate the target value for the fleet-average fuel consumption standard under paragraph (a)(3) of this section based on the work factor value that applies for the complete sister vehicle. (C) Test these cab-complete vehicles using the same equivalent test weight and other dynamometer settings that apply for the complete vehicle from which you used the work factor value (the complete sister vehicle). For fuel consumption certification, manufacturers may submit the test data from that complete sister vehicle instead of performing the test on the cab-complete vehicle. (D) Manufacturers are not required to produce the complete sister vehicle for sale to use the provisions of this paragraph (a)(6)(ii). This means the complete sister vehicle may be a carryover vehicle from a prior model year or a vehicle created solely for the purpose of testing. (iii) For fuel consumption purposes, if a cab-complete vehicle is not of the same vehicle configuration as a complete sister vehicle due only to certain factors unrelated to coastdown performance, manufacturers may use the road-load coefficients from the complete sister vehicle for certification testing of the cab-complete vehicle, but it may not use fuel consumption data from the complete sister vehicle for certifying the cab-complete vehicle. (7) Loose engines. (i) For 2020 and earlier model years, the maximum allowable U.S.-directed production volume of engines manufacturers may sell under this paragraph (7) in any given model year is ten percent of the total U.S-directed production volume of engines of that design that the manufacturer produces for heavy-duty applications for that model year, including engines it produces for complete vehicles, cab-complete vehicles, and other incomplete vehicles. The total number of engines a manufacturer may certify under this paragraph (7), of all engine designs, may not exceed 15,000 in any model year. Engines produced in excess of either of these limits are not covered by your certificate. For example, a manufacturer produces 80,000 complete model year 2017 Class 2b pickup trucks with a certain engine and 10,000 incomplete model year 2017 Class 3 vehicles with that same engine, and the manufacturer did not apply the provisions of this paragraph (a)(7) to any other engine designs, it may produce up to 10,000 engines of that design for sale as loose engines under this paragraph (a)(7). If a manufacturer produced 11,000 engines of that design for sale as loose engines, the last 1,000 of them that it produced in that model year 2017 would be considered uncertified. (ii) For model years 2021 through 2023, the U.S.-directed production volume of engines manufacturers sell under this paragraph (a)(7) in any given model year may not exceed 10,000 units. This paragraph (a)(7) does not apply for engines certified to the standards of paragraph (d) of this section and 40 CFR 1036.108. (iii) Vehicles using engines certified under this paragraph (a)(7) are subject to the fuel consumption and emission standards of paragraph (b) of this section and 40 CFR 1037.105 and engine standards in 40 CFR 1036.150(j). (iv) For certification purposes, engines are deemed to have a fuel consumption target values and test result equal to the fuel consumption target value and test result for the complete vehicle in the applicable test group with the highest equivalent test weight, except as specified in paragraph (a)(7)(iv)(B) of this section. Manufacturers use these values to calculate target values and the fleet-average fuel consumption rate. Where there are multiple complete vehicles with the same highest equivalent test weight, select the fuel consumption target value and test result as follows: (A) If one or more of the fuel consumption test results exceed the applicable target value, use the fuel consumption target value and test result of the vehicle that exceeds its target value by the greatest amount. (B) If none of the fuel consumption test results exceed the applicable target value, select the highest target value and set the test result equal to it. This means that the manufacturer may not generate fuel consumption credits from vehicles certified under this paragraph (a)(7). (8) Alternative fuel vehicle conversions. (9) Advanced, innovative, and off-cycle technologies. (10) Useful life. (i) 120,000 miles or 10 years, whichever comes first, for Class 2b through Class 3 heavy-duty pickup trucks and vans certified to Phase 1 standards. (ii) 150,000 miles or 15 years, whichever comes first, for Class 2b through Class 3 heavy-duty pickup trucks and vans certified to Phase 2 standards. (iii) For Phase 1 credits that you calculate based on a useful life of 120,000 miles, multiply any banked credits that you carry forward for use into the Phase 2 program by 1.25. For Phase 1 credit deficits that you generate based on a useful life of 120,000 miles multiply the credit deficit by 1.25 if offsetting the shortfall with Phase 2 credits. (11) Compliance with standards. (b) Heavy-duty vocational vehicles. i.e., (1) Mandatory standards. (i) For model years 2016 to 2020, the heavy-duty vocational vehicle category is subdivided by GVWR into three regulatory subcategories as defined in § 535.4, each with its own assigned standard. (ii) For model years 2021 and later, the heavy-duty vocational vehicle category is subdivided into 15 regulatory subcategories depending upon whether vehicles are equipped with a compression or spark-ignition engine, as defined in § 535.4. Standards also differ based upon vehicle service class and intended vehicle duty cycles. See 40 CFR 1037.140 and 1037.150(z). (iii) For purposes of certifying vehicles to fuel consumption standards, manufacturers must divide their product lines in each regulatory subcategory into vehicle families that have similar emissions and fuel consumption features, as specified by EPA in 40 CFR 1037.230. These families will be subject to the applicable standards. Each vehicle family is limited to a single model year. (A) Vocational vehicles including custom chassis vehicles must use qualified automatic tire inflation systems or tire pressure monitoring systems for wheels on all axles. (B) [Reserved] (2) Voluntary compliance. (ii) A manufacturer must declare its intent to voluntarily comply with fuel consumption standards and identify its plans to comply before it submits its first application for a certificate of conformity for the respective model year as specified in § 535.8; and, once selected, the decision cannot be reversed and the manufacturer must continue to comply for each subsequent model year for all the vehicles and engines it manufacturers in each regulatory category for a given model year. (3) Regulatory subcategory standards for model years 2013 to 2020. Table 8—Phase 1 Vocational Vehicle Fuel Consumption Standards [Gallons per 1000 ton-miles] Regulatory subcategories Vocational Vocational Vocational Model Years 2013 to 2016 Voluntary Standards Standard 38.1139 22.9862 22.2004 Model Years 2017 to 2020 Mandatory Standards Standard 36.6405 22.1022 21.8075 (4) Regulatory subcategory standards for model years 2021 and later. Table 9 to Paragraph (b)(4) [Gallons per 1,000 ton-miles] Model Years 2021 through 2023 Standards for CI Vehicles Duty cycle LHD vocational MHD vocational Vocational HHD Urban 41.6503 29.0766 30.2554 Multi-Purpose 36.6405 26.0314 25.6385 Regional 30.5501 22.9862 20.1375 Model Years 2021 through 2023 Standards for SI Vehicles Duty cycle LHD vocational MHD and HHD N/A Urban 51.8735 36.9078 N/A Multi-Purpose 45.7972 32.9695 N/A Regional 37.6955 29.3687 N/A Model Years 2024 through 2026 Standards for CI Vehicles Duty cycle Vocational LHD vehicles Vocational MHD Vocational HHD Urban 37.8193 26.6208 27.7996 Multi-Purpose 33.7917 24.1650 23.7721 Regional 29.0766 21.7092 19.0570 Model Years 2024 through 2026 Standards for SI Vehicles Duty cycle Vocational LHD vehicles Vocational MHD and HHD vehicles N/A Urban 48.6103 34.8824 N/A Multi-Purpose 43.3217 31.3942 N/A Regional 36.4577 28.2435 N/A Model Years 2027 and later Standards for CI Vehicles Duty cycle Vocational LHD vehicles Vocational MHD Vocational HHD Urban 36.0511 25.3438 26.4244 Multi-Purpose 32.4165 23.0845 22.5933 Regional 28.5855 21.4145 18.5658 Model Years 2027 and later Standards for SI Vehicles Duty cycle Vocational LHD Vocational MHD and N/A Urban 46.4724 33.4196 N/A Multi-Purpose 41.8589 30.1564 N/A Regional 35.8951 27.7934 N/A (5) Subfamily standards. (6) Alternate standards for custom chassis vehicles for model years 2021 and later. Table 10—Phase 2 Custom Chassis Fuel Consumption Standards [Gallon per 1,000 ton-mile] Vehicle type 1 Assigned vehicle service class MY 2021 MY 2027 Coach Bus HHD Vehicle 20.6287 20.1375 Motor Home MDH Vehicle 22.3969 22.2004 School Bus MHD Vehicle 28.5855 26.6208 Other bus HHD Vehicle 29.4695 28.0943 Refuse hauler HHD Vehicle 30.7466 29.2731 Concrete mixer HHD Vehicle 31.3360 31.0413 Mixed-use vehicle HHD Vehicle 31.3360 31.0413 Emergency Vehicle HHD Vehicle 31.8271 31.3360 1 (i) Manufacturers may generate or use fuel consumption credits for averaging to demonstrate compliance with the alternative standards as described in § 535.7(c). This requires that manufacturers specify a Family Emission Limit (FEL) for fuel consumption for each vehicle subfamily. The FEL may not be less than the result of emission modeling as described in this paragraph (b). These FELs serve as the fuel consumption standards for the vehicle subfamily instead of the standards specified in this paragraph (b)(6). Manufacturers may only use fuel consumption credits for vehicles certified to the optional standards in this paragraph (b)(6) as specified in § 535.7(c)(6) through (8) and you may not bank or trade fuel consumption credits from any vehicles certified under this paragraph (b)(6). (ii) For purposes of this paragraph (b)(6), each separate vehicle type identified in Table 10 of this section is in a separate averaging set. (iii) For purposes of emission and fuel consumption modeling under 40 CFR 1037.520, consider motor homes and coach buses to be subject to the Regional duty cycle, and consider all other vehicles to be subject to the Urban duty cycle. (iv) Emergency vehicles are deemed to comply with the standards of this paragraph (6) if manufacturers use tires with TRRL at or below 8.4 kg/ton (8.7 g/ton for model years 2021 through 2026). (v) Concrete mixers are deemed to comply with the standards of this paragraph (6) if manufacturers use tires with TRRL at or below 7.1 kg/ton (7.6 g/ton for model years 2021 through 2026). (vi) Motor homes are deemed to comply with the standards of this paragraph (b)(6) if manufacturers use the following technologies: (A) Tires with TRRL at or below 6.0 kg/ton (6.7 g/ton for model years 2021 through 2026). (B) Automatic tire inflation systems or tire pressure monitoring systems with wheels on all axles. (C) Tire pressure monitoring systems must use low pressure warning and malfunction telltales in clear view of the driver as specified in S4.3 and S4.4 of 49 CFR 571.138. (vii) Small business manufacturers using the alternative standards for custom chassis vehicles under this paragraph (b)(6) may use fuel consumption credits subject to the unique provisions in § 535.7(a)(9). (7) Advanced, innovative and off-cycle technologies. (8) Certifying across service classes. (i) If a manufacturer certifies all its vehicles from a given vehicle service class in a given model year to the standards and useful life that applies for a heavier vehicle service class, it may generate credits as appropriate for the heavier service class. (ii) Class 8 hybrid vehicles with light or medium heavy-duty engines may be certified to compression-ignition standards for the Heavy HDV service class. A manufacturer may generate and use credits as allowed for the Heavy HDV service class. (iii) Except as specified in paragraphs (b)(8)(i) and (ii) of this section, a manufacturer may not generate credits with the vehicle. If you include lighter vehicles in a subfamily of heavier vehicles with an FEL below the standard, exclude the production volume of lighter vehicles from the credit calculation. Conversely, if a manufacturer includes lighter vehicles in a subfamily with an FEL above the standard, it must include the production volume of lighter vehicles in the credit calculation. (9) Off-road exemptions. (i) Qualifying criteria. (A) The vehicle must have affixed components designed to work inherently in an off-road environment (such as hazardous material equipment or off-road drill equipment) or be designed to operate at low speeds such that it is unsuitable for normal highway operation. (B) The vehicle must meet one of the following criteria: ( 1 ( 2 ( 3 ( 4 (ii) Tractors. (iii) Preliminary approval before certification. (iv) Recordkeeping and reporting. (B) A manufacturers must also keep records of the individual exempted vehicles you produce, including the vehicle identification number and a description of the vehicle configuration. (C) Within 90 days after the end of each model year, manufacturers must send to EPA a report as specified in § 535.8(g)(7) and EPA will make the report available to NHTSA. (v) Compliance. (B) In situations where a manufacturer would normally ask for a preliminary approval subject to paragraph (b)(9)(iii) of this section but introduces its vehicle into U.S. commerce without seeking approval first from the agencies, those vehicles violate compliance with the fuel consumption standards of this part and the EPA provisions under 40 CFR 1068.101(a)(1). (C) If at any time, the agencies find new information that contradicts a manufacturer's use of the off-road exemption of this part, the manufacturers vehicles will be determined to be non-compliant with the regulations of this part and the manufacturer may be liable for civil penalties. (10) Useful life. (i) 110,000 miles or 10 years, whichever comes first, for vocational LHD vehicles certified to Phase 1 standards. (ii) 150,000 miles or 15 years, whichever comes first, for vocational LHD vehicles certified to Phase 2 standards. (iii) 185,000 miles or 10 years, whichever comes first, for vocational MHD vehicles for Phase 1 and 2. (iv) 435,000 miles or 10 years, whichever comes first, for vocational HHD vehicles for Phase 1 and 2. (v) For Phase 1 credits calculated based on a useful life of 110,000 miles, multiply any banked credits carried forward for use into the Phase 2 program by 1.36. For Phase 1 credit deficits generated based on a useful life of 110,000 miles multiply the credit deficit by 1.36, if offsetting the shortfall with Phase 2 credits. (11) Recreational vehicles. (12) Loose engines. (13) Compliance with Standards. (c) Truck tractors. i.e., (1) Mandatory standards. (i) Based on the roof height and the design of the cab, the truck tractor category is divided into subcategories as described in § 535.4. The standards that apply to each regulatory subcategory are shown in paragraphs (c)(2) and (3) of this section, each with its own assigned standard. (ii) For purposes of certifying vehicles to fuel consumption standards, manufacturers must divide their product lines in each regulatory subcategory into vehicles subfamilies that have similar emissions and fuel consumption features, as specified by EPA in 40 CFR 1037.230, and these subfamilies will be subject to the applicable standards. Each vehicle subfamily is limited to a single model year. (iii) Standards for truck tractor engines are given in paragraph (d) of this section. (2) Voluntary compliance. (ii) A manufacturer must declare its intent to voluntarily comply with fuel consumption standards and identify its plans to comply before it submits its first application for a certificate of conformity for the respective model year as specified in § 535.8; and, once selected, the decision cannot be reversed and the manufacturer must continue to comply for each subsequent model year for all the vehicles and engines it manufacturers in each regulatory category for a given model year. (3) Regulatory subcategory standards. Table 11—Truck Tractor Fuel Consumption Standards [Gallons per 1,000 ton-miles] Regulatory subcategories Day cab Sleeper cab Heavy-Haul Class 7 Class 8 Class 8 Phase 1—Model Years 2013 to 2015 Voluntary Standards Low Roof 10.5108 7.9568 6.6798 Mid Roof 11.6896 8.6444 7.4656 High Roof 12.1807 9.0373 7.3674 Phase 1—Model Year 2016 Mandatory Standard Low Roof 10.5108 7.9568 6.6798 NA Mid Roof 11.6896 8.6444 7.4656 High Roof 12.1807 9.0373 7.3674 Phase 1—Model Years 2017 to 2020 Mandatory Standards Low Roof 10.2161 7.8585 6.4833 NA Mid Roof 11.2967 8.4479 7.1709 High Roof 11.7878 8.7426 7.0727 Phase 2—Model Years 2021 to 2023 Mandatory Standards Low Roof 10.36346 7.90766 7.10216 5.14735 Mid Roof 11.11984 8.38900 7.66208 High Roof 11.14931 8.40864 7.43615 Phase 2—Model Years 2024 to 2026 Mandatory Standards Low Roof 9.80354 7.48527 6.67976 4.93124 Mid Roof 10.52063 7.94695 7.22004 High Roof 10.47151 7.89784 6.94499 Phase 2—Model Years 2027 and later Mandatory Standards Low Roof 9.44990 7.21022 6.29666 4.74460 Mid Roof 10.15717 7.66208 6.83694 High Roof 9.82318 7.43615 6.31631 (4) Subfamily standards. (5) Alternate standards for tractors at or above 120,000 pounds GCWR. Table 12 to Paragraph (c)(5) [Gallons per 1,000 ton-miles] Regulatory subcategory Model years 2021 through 2023 Model years 2024 through 2026 Model years 2027 and later Heavy Class 8 Low-Roof Day Cab 5.25540 4.99018 4.80354 Heavy Class 8 Low-Roof Sleeper Cab 4.62672 4.37132 4.16503 Heavy Class 8 Mid-Roof Day Cab 5.46169 5.18664 4.99018 Heavy Class 8 Mid-Roof Sleeper Cab 4.87230 4.60707 4.39096 Heavy Class 8 High-Roof Day Cab 5.35363 5.04912 4.77407 Heavy Class 8 High-Roof Sleeper Cab 4.62672 4.34185 4.02750 (6) Advanced, innovative and off-cycle technologies. (7) Certifying across service classes. (i) A manufacturer may optionally certify 4x2 tractors with heavy heavy-duty engines to the standards and useful life for Class 8 tractors, with no restriction on generating or using fuel consumption credits within the Class 8 averaging set. (ii) A manufacturer may optionally certify a Class 7 tractor to the standards and useful life applicable to Class 8 tractors. Credit provisions apply as follows: (A) If a manufacturer certifies all of its Class 7 tractors to Class 8 standards, it may use these Heavy HDV credits without restriction. (B) This paragraph (c)(7)(ii)(B) applies if a manufacturer certifies some Class 7 tractors to Class 8 standards under this paragraph (c)(7)(ii) but not all of them. If a manufacturer includes Class 7 tractors in a subfamily of Class 8 tractors with an FEL below the standard, exclude the production volume of Class 7 tractors from the credit calculation. Conversely, if a manufacturer includes Class 7 tractors in a subfamily of Class 8 tractors with an FEL above the standard, it must include the production volume of Class 7 tractors in the credit calculation. (8) Expanded families. (i) For a Phase 1 vehicle model that straddles a roof-height, cab type, or GVWR division, manufacturers can include all the vehicles in the same vehicle family if it certifies the vehicle family to the more stringent standard. For roof height, the manufacturer must certify to the taller roof standard. For cab-type and GVWR, the manufacturers must certify to the numerically lower standard. (ii) For a Phase 2 vehicle model that includes a range of GVWR values that straddle weight classes, manufacturers may include all the vehicles in the same vehicle family if it certifies the vehicle family to the numerically lower fuel consumption standard from the affected service classes. Vehicles that are optionally certified to a more stringent standard under this paragraph are subject to useful-life and all other provisions corresponding to the weight class with the numerically lower fuel consumption standard. For a Phase 2 tractor model that includes a range of roof heights that straddle subcategories, a manufacturer may include all the vehicles in the same vehicle family if it certifies the vehicle family to the appropriate subcategory as follows: (A) A manufacturer may certify mid-roof tractors as high-roof tractors, but it may not certify high-roof tractors as mid-roof tractors. (B) For tractor families straddling the low-roof/mid-roof division, a manufacturer may certify the family based on the primary roof-height as long as no more than 10 percent of the tractors are certified to the otherwise inapplicable subcategory. For example, if 95 percent of the tractors in the family are less than 120 inches tall, and the other 5 percent are 122 inches tall, a manufacturer may certify the tractors as a single family in the low-roof subcategory. (C) Determine the appropriate aerodynamic bin number based on the actual roof height if the C d d 2 2 (9) Vocational tractors. (10) Small business manufacturers converting to mid roof or high roof configurations. (11) Useful life. (i) 185,000 miles or 10 years, whichever comes first, for vehicles at or below 33,000 pounds GVWR. (ii) 435,000 miles or 10 years, whichever comes first, for vehicles above 33,000 pounds GVWR. (12) Conversion to high-roof configurations. (i) The original low- or mid-roof tractor must be covered by a valid certificate of conformity by EPA. (ii) The modifications may not increase the frontal area of the tractor beyond the frontal area of the equivalent high-roof tractor with the corresponding standard trailer. If a manufacturer cannot use the original manufacturer's roof fairing for the high-roof tractor, use good engineering judgment to achieve similar or better aerodynamic performance. (iii) The agencies may require that these manufacturers submit annual production reports as described in § 535.8 and 40 CFR 1037.250 indicating the original roof height for requalified vehicles. (13) Compliance with standards. (d) Heavy-duty engines. i.e., (1) Mandatory standards. (i) The heavy-duty engine regulatory category is divided into six regulatory subcategories, five compression-ignition subcategories and one spark-ignition subcategory, as shown in Table 14 of this section. (ii) Separate standards exist for engine families manufactured for use in heavy-duty vocational vehicles and in truck tractors. (iii) For purposes of certifying engines to fuel consumption standards, manufacturers must divide their product lines in each regulatory subcategory into engine families. Fuel consumption standards apply each model year to the same engine families used to comply with EPAstandards in 40 CFR 1036.108 and 40 CFR 1037.230. An engine family is designated under the EPA program based upon testing specified in 40 CFR part 1036, subpart F, and the engine family's primary intended service class. Each engine family manufactured for use in a heavy-duty tractor or vocational vehicle must be certified to the primary intended service class that it is designed for in accordance with 40 CFR 1036.108 and 1036.140. (2) Voluntary compliance. (ii) A manufacturer must declare its intent to voluntarily comply with fuel consumption standards and identify its plans to comply before it submits its first application for a certificate of conformity for the respective model year as specified in § 535.8; and, once selected, the decision cannot be reversed and the manufacturer must continue to comply for each subsequent model year for all the vehicles and engines it manufacturers in each regulatory category for a given model year. (3) Regulatory subcategory standards. Table 13 to Paragraph ( d [Gallons per 100 hp-hr] Phase 1—Voluntary Standards Regulatory subcategory CI LHD engines and all other CI MHD engines and all other engines HHD CI engines and all other engines SI engines Application Vocational Vocational Tractor Vocational Tractor All 2015 7.0552 2013 through 2016 5.8939 5.8939 4.9312 5.5697 4.666 Phase 1—Mandatory Standards Regulatory subcategory CI LHD engines and all other CI MHD engines and all other engines CI HHD engines and all other engines SI engines Application Vocational Vocational Tractor Vocational Tractor All 2016 7.0552 2017 through 2020 5.6582 5.6582 4.7839 5.4519 4.5187 7.0552 Phase 2—Mandatory Standards Regulatory subcategory CI LHD engines and all other CI MHD engines and all other engines CI HHD engines and all other engines SI engines (except HHD engines) Application Vocational Vocational Tractor Vocational Tractor All 2021 through 2023 5.5305 5.3536 4.6464 5.0393 4.3910 7.0552 2024 through 2026 5.4519 5.2849 4.5285 4.9705 4.2829 7.0552 2027 and Later 5.4224 5.2554 4.4892 4.9411 4.2436 7.0552 (4) Alternate subcategory standards. (i) Manufacturers entering the voluntary program in model years 2014 through 2016, may choose to certify compression-ignition engine families unable to meet standards provided in paragraph (d)(3) of this section to the alternative fuel consumption standards of this paragraph (d)(4). (ii) Manufacturers may not certify engines to these alternate standards if they are part of an averaging set in which they carry a balance of banked credits. For purposes of this section, manufacturers are deemed to carry credits in an averaging set if they carry credits from advance technology that are allowed to be used in that averaging set in accordance with § 535.7(d)(12). (iii) The emission standards of this section are determined as specified by EPA in 40 CFR 1036.620(a) through (c) and should be converted to equivalent fuel consumption values. (5) Alternate phase-in standards. Table 14—Phase 1 Alternative Phase-In CI Engine Fuel Consumption Standards [Gallons per 100 hp-hr] Tractors LHD engines MHD engines HHD engines Model Years 2013 to 2015 NA 5.0295 4.7642 Model Years 2016 to 2020 † NA 4.7839 4.5187 Vocational LHD engines MHD engines HHD engines Model Years 2013 to 2015 6.0707 6.0707 5.6680 Model Years 2016 to 2020 † 5.6582 5.6582 5.4519 † Note: (6) Alternative fuel conversions. (7) Optional certification under this section. (8) Advanced, innovative and off-cycle technologies. (9) Useful life. (i) 120,000 miles or 11 years, whichever comes first, for CI and SI LHD engines certified to Phase 1 standards. (ii) 150,000 miles or 15 years, whichever comes first, for CI and SI LHD and spark-ignition engines certified to Phase 2 standards. (iii) 185,000 miles or 10 years, whichever comes first, for CI MHD engines certified to Phase 1 and for Phase 2. (iv) 435,000 miles or 10 years, whichever comes first, for CI HHD engines certified to Phase 1 and for Phase 2. (v) For Phase 1 credits that manufacturers calculate based on a useful life of 110,000 miles, multiply any banked credits that it carries forward for use into the Phase 2 program by 1.36. For Phase 1 credit deficits that manufacturers generate based on a useful life of 110,000 miles multiply the credit deficit by 1.36, if offsetting the shortfall with Phase 2 credits. (10) Loose engines. (11) Alternate transition option for Phase 2 engine standards. e.g. (A) 5.3241 gallons per 100 hp-hr for MHD vocational vehicle engines. (B) 4.5874 gallons per 100 hp-hr for MHD tractor engines. (C) 5.0098 gallons per 100 hp-hr for HHD vocational vehicle engines. (D) 4.3418 gallons per 100 hp-hr for HHD tractor engines. (ii) The primary standard in paragraph (d)(3) applies for all manufacturers in model year 2027 and later years. (iii) Manufacturers may apply these provisions separately for medium heavy-duty engines and heavy heavy-duty engines. This election applies to all engines in each segment. For example, if a manufacturer elects this alternate option for its medium heavy-duty engines, all of the manufacturer's medium heavy-duty vocational and tractor engines must comply. Engine fuel consumption credits generated under § 535.7(d) for manufacturers complying early with the model year 2021 standards follow the temporary extended credit life allowance in § 535.7(d)(9). (12) Compliance with Standards. [81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18825, Mar. 15, 2024; 89 FR 52951, June 24, 2024] § 535.6 Measurement and calculation procedures. This part describes the measurement and calculation procedures manufacturers use to determine annual fuel consumption performance results. Manufacturers use the fuel consumption results determined in this part for calculating credit balances specified in § 535.7 and then determine whether they comply with standards as specified in § 535.10. Manufacturers must use EPA emissions test results for deriving NHTSA's fuel consumption performance rates. Consequently, manufacturers conducting testing for certification or annual demonstration testing and providing CO 2 (a) Heavy-duty pickup trucks and vans. (1) For the Phase 1 program, if the manufacturer's fleet includes conventional vehicles (gasoline, diesel and alternative fueled vehicles) and advanced technology vehicles (hybrids with powertrain designs that include energy storage systems, vehicles with waste heat recovery, electric vehicles and fuel cell vehicles), it may divide its fleet into two separate fleets each with its own separate fleet average fuel consumption performance rate. For Phase 2 and later, manufacturers may calculate their fleet average fuel consumption rates for a conventional fleet and separate advanced technology vehicle fleets. Advanced technology vehicle fleets should be separated into plug-in hybrid electric vehicles, electric vehicles and fuel cell vehicles. (2) Vehicles in each fleet should be selected and divided into test groups or subconfigurations according to EPA in 40 CFR 86.1819-14(d). (3) Use the EPA CO 2 (i) Use CO 2 (ii) Use CO 2 (iii) All electric vehicles are deemed to have zero emissions of CO 2 4 2 (iv) Use CO 2 (v) Use CO 2 (vi) Manufacturers can choose to analytically derive CO 2 (4) Calculate equivalent fuel consumption results for all test groups, in gallons per 100 miles, from CO 2 (i) Calculate the equivalent fuel consumption test group results as follows for compression-ignition vehicles and alternative fuel compression-ignition vehicles. CO 2 2 (ii) Calculate the equivalent fuel consumption test group results as follows for spark-ignition vehicles and alternative fuel spark-ignition vehicles. CO 2 −2 (5) Calculate the fleet average fuel consumption result, in gallons per 100 miles, from the equivalent fuel consumption test group results and round the fuel consumption result to the nearest 0.001 gallon per 100 miles. Calculate the fleet average fuel consumption result using the following equation. Where: Fuel Consumption Test Group Result i Volume i (6) Compare the fleet average fuel consumption standard to the fleet average fuel consumption performance. The fleet average fuel consumption performance must be less than or equal to the fleet fuel consumption standard to comply with standards in § 535.5(a). (b) Heavy-duty vocational vehicles and tractors. (1) Select vehicles and vehicle family configurations as specified in 40 CFR 1037.150 and 1037.230 for vehicles that make up each of the manufacturer's regulatory subcategories of vocational vehicles and tractors. For the Phase 2 program, select powertrain, axle and transmission families in accordance with 40 CFR 1037.231 and 1037.232. (2) Follow the EPA testing requirements in 40 CFR 1037.230 and 1037.501 to derive inputs for the Greenhouse gas Emissions Model (GEM). (3) Enter inputs into GEM, in accordance with 40 CFR 1037.520, to derive the emissions and fuel consumption performance results for all vehicles (conventional, alternative fueled and advanced technology vehicles). (4) For Phase 1 and 2, all of the following GEM inputs apply for vocational vehicles and other tractor regulatory subcategories, as follows: (i) Model year and regulatory subcategory (see § 535.3 and 40 CFR 1037.230). (ii) Coefficient of aerodynamic drag (C d d 2 d (iii) Steer and drive tire rolling resistance, as described in 40 CFR 1037.520(c). (iv) Vehicle speed limit, as described in 40 CFR 1037.520(d) (tractors only). (v) Vehicle weight reduction, as described in 40 CFR 1037.520(e) (tractors only for Phase 1). (vi) Automatic engine shutdown systems, as described in 40 CFR 1037.660 (only for Phase 1 Class 8 sleeper cabs). For Phase 1, enter a GEM input value of 5.0 g/ton-mile, or an adjusted value as specified in 40 CFR 1037.660. (5) For Phase 2 vehicles, the GEM inputs described in paragraphs (b)(4)(i) through (v) of this section continue to apply. Note that the provisions related to vehicle speed limiters and automatic engine shutdown systems are available for vocational vehicles in Phase 2. The additional GEM inputs that apply for vocational vehicles and other tractor regulatory subcategories for demonstrating compliance with Phase 2 standards are as follows: (i) Engine characteristics. (ii) Vehicle information. (A) Transmission make, model and type; (B) Drive axle configuration; (C) Drive axle ratio, k a (D) GEM inputs associated with powertrain testing include powertrain family, transmission calibration identifier, test data from 40 CFR 1037.550, and the powertrain test configuration (dynamometer connected to transmission output or wheel hub). (iii) Idle-reduction technologies. (iv) Axle and transmission efficiency. (v) Additional reduction technologies. 2 (A) Intelligent controls (B) Accessory load (C) Tire-pressure systems (D) Extended-idle reduction (E) Additional GEM inputs may apply as follows: ( 1 ( 2 2 ( 3 ( 4 (vi) Vehicles with hybrid power take-off (PTO). (vii) Aerodynamic improvements for vocational vehicles. ΔC d A (viii) Alternate fuels. (ix) Custom chassis vehicles. (6) In unusual circumstances, manufacturers may ask EPA to use weighted average results of multiple GEM runs to represent special technologies for which no single GEM run can accurately reflect. (7) From the GEM results, select the CO 2 (c) [Reserved] (d) Heavy-duty engines. (1) Manufacturers must select emission-data engines representing the tested configuration of each engine family specified in 40 CFR 1036.501 for engines in heavy-duty truck tractors and vocational vehicles that make up each of the manufacturer's regulatory subcategories. (2) Standards in § 535.5(d) apply to the CO2 emissions rates for each emissions-data engine in an engine or powertrain family or sub-family subject to the procedures and equipment specified in 40 CFR part 1036, subpart F. Determine equivalent fuel consumptions rates using CO2 emissions rates in grams per hp-hr measured to at least one more decimal place than that of the applicable EPA standard in 40 CFR 1036.108. (i) Use the CO 2 (ii) Use the CO 2 (iii) Use the CO 2 (iv) All electric vehicles are deemed to have zero emissions of CO 2 (3) For medium HD and heavy HD engines certified as tractor and other long-haul engine families, use the CO2 emissions test results from the steady-state duty cycle, which is referred to as the Supplemental Emission Test (SET), as specified in 40 CFR 1036.510 for each model year; for medium HD and heavy HD engines certified as tractor and vocational engine families, use the CO2 test results from the transient duty cycle, which is referred to as the Federal Test Procedure (FTP) duty cycle, as specified in 40 CFR 1036.512 for each model year; for all other engines (including those certifying to SI standards) use the CO2 emissions test results from the appropriate duty cycle, as specified in 40 CFR 1036.501 for each model year. (i) If a manufacturer certifies an engine family for use both as a vocational engine and as a tractor engine, the manufacturer must split the family into two separate subfamilies in accordance with 40 CFR 1036.230. The manufacturer may assign the numbers and configurations of engines within the respective subfamilies at any time prior to the submission of the end-of-year report required by 40 CFR 1036.730 and § 535.8. The manufacturer must track into which type of vehicle each engine is installed, although EPA may allow the manufacturer to use statistical methods to determine this for a fraction of its engines. (ii) The following engines are excluded from the engine and powertrain families and subfamilies used to determine fuel consumption FCL values and the benefit for these engines is determined as an advanced technology credit under the ABT provisions provided in § 535.7(e); these provisions apply only for the Phase 1 program: (A) Engines certified as hybrid engines or power packs. (B) Engines certified as hybrid engines designed with PTO capability and that are sold with the engine coupled to a transmission. (C) Engines with Rankine cycle waste heat recovery. (4) Manufacturers generating CO 2 (5) Calculate equivalent fuel consumption values from the emissions CO 2 (i) Calculate equivalent fuel consumption FCL values for compression-ignition engines and alternative fuel compression-ignition engines. CO 2 2 (ii) Calculate equivalent fuel consumption FCL values for spark-ignition engines and alternative fuel spark-ignition engines. CO 2 −2 (iii) Manufacturers may carryover fuel consumption data from a previous model year if allowed to carry over emissions data for EPA in accordance with 40 CFR 1036.235. (iv) If a manufacturer uses an alternate test procedure under 40 CFR 1065.10 and subsequently the data is rejected by EPA, NHTSA will also reject the data. [81 FR 74238, Oct. 25, 2016, as amended at 85 FR 25274, Apr. 30, 2020; 89 FR 18828, Mar. 15, 2024; 89 FR 52952, June 24, 2024] § 535.7 Averaging, banking, and trading (ABT) credit program. (a) General provisions. (1) Credits (or fuel consumption credits (FCCs)). (i) Conventional credits. i.e., (ii) Early credits. (iii) Advanced technology credits. i.e., (iv) Innovative and off-cycle technology credits. (2) Averaging. (i) A credit surplus occurs when the net sum of the manufacturer's generated credits for engines or vehicle families or fleets within an averaging set is positive (a zero credit balance is when the sum equals zero). (ii) A credit deficit occurs when the net sum of the manufacturer's generated credits for engines or vehicle families or fleets within an averaging set is negative. (iii) Positive credits, other than advanced technology credits in Phase 1, generated and calculated within an averaging set may only be used to offset negative credits within the same averaging set. (iv) Manufacturers may certify one or more vehicle families (or subfamilies) to an FEL above the applicable fuel consumption standard, subject to any applicable FEL caps and other provisions allowed by EPA in 40 CFR parts 1036 and 1037, if the manufacturer shows in its application for certification to EPA that its projected balance of all FCC transactions in that model year is greater than or equal to zero or that a negative balance is allowed by EPA under 40 CFR 1036.745 and 1037.745. (v) If a manufacturer certifies a vehicle family to an FEL that exceeds the otherwise applicable standard, it must obtain enough FCC to offset the vehicle family's deficit by the due date of its final report required in § 535.8. The emission credits used to address the deficit may come from other vehicle families that generate FCCs in the same model year (or from the next three subsequent model years), from banked FCCs from previous model years, or from FCCs generated in the same or previous model years that it obtained through trading. (vi) Manufacturers may certify a vehicle or engine family using an FEL (as described in § 535.6) below the fuel consumption standard (as described in § 535.5) and choose not to generate conventional fuel consumption credits for that family. Manufacturers do not need to calculate fuel consumption credits for those families and do not need to submit or keep the associated records described in § 535.8 for these families. Manufacturers participating in NHTSA's FCC program must provide reports as specified in § 535.8. (3) Banking. (i) Surplus credits may be banked by the manufacturer for use in future model years, or traded, given the restriction that the credits have an expiration date of five model years after the year in which the credits are generated. For example, banked credits earned in model year 2014 may be utilized through model year 2019. Surplus credits will become banked credits unless a manufacturer contacts NHTSA to expire its credits. (ii) Surplus credits become earned or usable banked FCCs when the manufacturer's final report is approved by both agencies. However, the agencies may revoke these FCCs at any time if they are unable to verify them after reviewing the manufacturer's reports or auditing its records. (iii) Banked FCC retain the designation from the averaging set and model year in which they were generated. (iv) Banked credits retain the designation of the averaging set in which they were generated. (4) Trading. (i) Manufacturers may only trade banked credits to other manufacturers to use for compliance with fuel consumption standards. Traded FCCs, other than advanced technology credits earned in Phase 1, may be used only within the averaging set in which they were generated. Manufacturers may only trade credits to other entities for the purpose of expiring credits. (ii) Advanced technology credits earned in Phase 1 can be traded across different averaging sets. (iii) The agencies may revoke traded FCCs at any time if they are unable to verify them after reviewing the manufacturer's reports or auditing its records. (iv) If a negative FCC balance results from a transaction, both the buyer and seller are liable, except in cases the agencies deem to involve fraud. See § 535.9 for cases involving fraud. EPA also may void the certificates of all vehicle families participating in a trade that results in a manufacturer having a negative balance of emission credits. See 40 CFR 1037.745. (v) [Reserved] (vi) Manufacturers with deficits or projecting deficits before or during a production model year may not trade credits until its available credits exceed the deficit. Manufacturers with a deficit may not trade credits if the deadline to offset that credit deficit has passed. (5) Credit deficit (or credit shortfall). (6) FCC credit plan. (A) Detailed calculations of projected emission and fuel consumption credits (positive or negative) based on projected U.S.-directed production volumes. The agencies may require a manufacturer to include similar calculations from its other engine or vehicle families to project its net credit balances for the model year. If a manufacturer projects negative emission and/or fuel consumption credits for a family, it must state the source of positive emission and/or fuel consumption credits it expects to use to offset the negative credits demonstrating how it plans to resolve any credit deficits that might occur for a model year within a period of up to three model years after that deficit has occurred. (B) Actual emissions and fuel consumption credit balances, credit transactions, and credit trades. (ii) Manufacturers are required to provide updated credit plans after receiving their final verified reports from EPA and NHTSA after the end of each model year. (iii) The agencies may determine that a manufacturer's plan is unreasonable or unrealistic based on a consideration of past and projected use of specific technologies, the historical sales mix of its vehicle models, subsequent failure to follow any submitted plans, and limited expected access to traded credits. (iv) The agencies may also consider the plan unreasonable if the manufacturer's credit deficit increases from one model year to the next. The agencies may require that the manufacturers must send interim reports describing its progress toward resolving its credit deficit over the course of a model year. (v) If NHTSA determines that a manufacturers plan is unreasonable or unrealistic, the manufacturer is deemed as not comply with fuel consumption standards as specified in § 535.10(c) and the manufacturer may be liable for civil penalties. (7) Revoked credits. 2 (8) Transition to Phase 2 standards. (i) Fuel consumption credits a manufacturer generates for light and medium heavy-duty vocational vehicles in model years 2018 through 2021 may be used through model year 2027, instead of being limited to a five-year credit life as specified in this part. Fuel consumption credits that small manufacturers generate for heavy heavy-duty vocational vehicles in model years 2018 through may be used through model year 2027, instead of being limited to a five-year credit life as specified in this part. Fuel consumption credits that a small manufacturer generates for vocational vehicles in model year 2022 that are certified to Phase 1 standards as permitted under § 535.3(e)(2)(ii)(B) may be used through model year 2027. (ii) The manufacturer may use the off-cycle provisions of paragraph (f) of this section to apply technologies to Phase 1 vehicles as follows: (A) A manufacturer may apply an improvement factor of 0.988 for tractors and vocational vehicles with automatic tire inflation systems on all axles. (B) For vocational vehicles with automatic engine shutdown systems that conform with 40 CFR 1037.660, a manufacturer may apply an improvement factor of 0.95. (C) For vocational vehicles with stop-start systems that conform with 40 CFR 1037.660, a manufacturer may apply an improvement factor of 0.92. (D) For vocational vehicles with neutral-idle systems conforming with 40 CFR 1037.660, manufacturers may apply an improvement factor of 0.98. Manufacturers may adjust this improvement factor if we approve a partial reduction under 40 CFR 1037.660(a)(2); for example, if the manufacturer's design reduces fuel consumption by half as much as shifting to neutral, it may apply an improvement factor of 0.99. (9) Credits for small business manufacturers. (i) Small manufacturers may certify their vehicles instead of relying on the exemption of § 535.3. (ii) Use Phase 1 GEM to determine a fuel consumption level for vehicle, then multiply this value by the engine's FCL for fuel consumption and divide by the engine's applicable fuel consumption standard. (iii) Use the value determined in paragraph (ii) in the credit equation specified in part (c) of this section in place of the term (Std − FEL). (iv) The following provisions apply uniquely to small businesses under the custom-chassis standards of § 535.5(b)(6): (A) Manufacturers may use fuel consumption credits generated under paragraph (c) of this section, including banked or traded credits from any averaging set. Such credits remain subject to other limitations that apply under this part. (B) Manufacturers may produce up to 200 drayage tractors in a given model year to the standards described in § 535.5(b)(6) for “other buses”. Treat these drayage tractors as being in their own averaging set. This limit applies with respect to vehicles produced by manufacturers within a control relationship as defined § 534.3. (10) Certifying non-gasoline engines. (11) Fuel consumption credits may not be generated more than once. This means that fuel consumption credits may only be generated once for a given engine or vehicle and fuel consumption credits may not be generated for both a given engine and the vehicle in which the engine is installed. For example, if a manufacturer generates fuel consumption credits for a given hybrid vehicle under this part, no one may generate fuel consumption credits for the associated hybrid engine. This provision, however, does not prevent manufacturers from generating fuel consumption credits for engines that are identical to the given engine in the example if those engines are installed in vehicles for which fuel consumption credits are not generated. This provision does not impact any adjustment factor or multiplier that is applied to the fuel consumption credits as specified or permitted by this part. (b) ABT provisions for heavy-duty pickup trucks and vans. Total MY Fleet FCC (gallons) =(Std−Act) × (Volume) × (UL) × (10 2 Where: Std = Fleet average fuel consumption standard (gal/100 mile). Act = Fleet average actual fuel consumption value (gal/100 mile). Volume = the total U.S.-directed production of vehicles in the regulatory subcategory. UL = the useful life for the regulatory subcategory. The useful life value for heavy- pickup trucks and vans manufactured for model years 2013 through 2020 is equal to the 120,000 miles. The useful life for model years 2021 and later is equal to 150,000 miles. (2) Adjust the fuel consumption performance of subconfigurations with advanced technology for determining the fleet average actual fuel consumption value as specified in paragraph (f)(1) of this section and 40 CFR 86.1819-14(d)(6)(iii). Advanced technology vehicles can be separated in a different fleet for the purpose of applying credit incentives as described in paragraph (f)(1) of this section. (3) Adjust the fuel consumption performance for subconfigurations with innovative technology. A manufacturer is eligible to increase the fuel consumption performance of heavy-duty pickup trucks and vans in accordance with procedures established by EPA set forth in 40 CFR part 600. The eligibility of a manufacturer to increase its fuel consumption performance through use of an off-cycle technology requires an application request made to EPA and NHTSA in accordance with 40 CFR 86.1869-12 and an approval granted by the agencies. For off-cycle technologies that are covered under 40 CFR 86.1869-12, NHTSA will collaborate with EPA regarding NHTSA's evaluation of the specific off-cycle technology to ensure its impact on fuel consumption and the suitability of using the off-cycle technology to adjust fuel consumption performance. NHTSA will provide its views on the suitability of the technology for that purpose to EPA. NHTSA will apply the criteria in section (f) of this section in granting or denying off-cycle requests. (4) Fuel consumption credits may be generated for vehicles certified in model year 2013 to the model year 2014 standards in § 535.5(a). If a manufacturer chooses to generate CO 2 2 (5) Calculate the averaging set credit value by summing together the fleet credits for conventional and advanced technology vehicles including any adjustments for innovative technologies. Manufacturers may sum conventional and innovative technology credits before adding any advanced technology credits in each averaging set. (6) For credits that manufacturers calculate based on a useful life of 120,000 miles, multiply any banked credits carried forward for use in model year 2021 and later by 1.25. For credit deficits that a manufacturer calculates based on a useful life of 120,000 miles and that it offsets with credits originally earned in model year 2021 and later, it multiplies the credit deficit by 1.25. (c) ABT provisions for vocational vehicles and tractors. Vehicle Family FCC (gallons) =(Std−FEL) × (Payload) × (Volume) × (UL) × (10 3 Where: Std = the standard for the respective vehicle family regulatory subcategory (gal/1,000 ton-mile). FEL = family emissions limit for the vehicle family (gal/1,000 ton-mile). Payload = the prescribed payload in tons for each regulatory subcategory as shown in the following table: Table 1 to Paragraph (c)(1) Regulatory subcategory Payload Vocational LHD Vehicles 2.85 Vocational MHD Vehicles 5.60 Vocational HHD Vehicles 7.5 MDH MHD Tractors 12.50 HHD Tractors, other than heavy-haul Tractors 19.00 Heavy-haul Tractors 43.00 Volume = the number of U.S.-directed production volume of vehicles in the corresponding vehicle family. UL = the useful life for the regulatory subcategory (miles) as shown in the following table: Table 2 to Paragraph (c)(1) Regulatory subcategory UL LHD Vehicles 110,000 (Phase 1);150,000 (Phase 2). Vocational MHD Vehicles and tractors at or below 33,000 pounds GVWR 185,000. Vocational HHD Vehicles and tractors at or above 33,000 pounds GVWR 435,000. (i) Calculate the value of credits generated in a model year for each family or subfamily consisting of vehicles with advanced technology vehicles in each averaging set using the equation above and the guidelines provided in paragraph (f)(1) of this section. Manufacturers may generate credits for advanced technology vehicles using incentives specified in paragraph (f)(1) of this section. (ii) Calculate the value of credits generated in a model year for each family or subfamily consisting of vehicles with off-cycle technology vehicles in each averaging set using the equation above and the guidelines provided in paragraph (f)(2) of this section. (2) Manufacturers must sum all negative and positive credits for each vehicle family within each applicable averaging set to obtain the total credit balance for the model year before rounding. The sum of fuel consumptions credits must be rounded to the nearest gallon. Calculate the total credits generated in a model year for each averaging set using the following equation: Total averaging set MY credits = Σ Vehicle family credits within each averaging set (3) Manufacturers can sum conventional and innovative technology credits before adding any advanced technology credits in each averaging set. (4) If a manufacturer chooses to generate CO 2 (i) Fuel consumption credits may be generated for vehicles certified in model year 2013 to the model year 2014 standards in § 535.5(b) and (c). To do so, a manufacturer must certify its entire U.S.-directed production volume of vehicles. The same production volume restrictions specified in 40 CFR 1037.150(a)(1) relating to when test groups are certified apply to the NHTSA early credit provisions. Credits are calculated as specified in paragraph (c)(11) of this section relative to the standards that would apply for model year 2014. Surplus credits generated under this paragraph (c)(4) may be increased by a factor of 1.5 for determining total available credits for banking or trading. For example, if a manufacturer has 10 gallons of surplus credits for model year 2013, it may bank 15 gallons of credits. Credit deficits for an averaging set prior to model year 2014 do not carry over to model year 2014. These credits may be used to show compliance with the standards of this part for 2014 and later model years. Once a manufacturer opts into the NHTSA program they must stay in the program for all of the optional model years and remain standardized with the same implementation approach being followed to meet the EPA CO 2 (ii) A tractor manufacturer may generate fuel consumption credits for the number of additional SmartWay designated tractors (relative to its MY 2012 production), provided that credits are not generated for those vehicles under paragraph (c)(4)(i) of this section. Calculate credits for each regulatory sub-category relative to the standard that would apply in model year 2014 using the equations in paragraph (c)(2) of this section. Use a production volume equal to the number of verified model year 2013 SmartWay tractors minus the number of verified model year 2012 SmartWay tractors. A manufacturer may bank credits equal to the surplus credits generated under this paragraph multiplied by 1.50. A manufacturer's 2012 and 2013 model years must be equivalent in length. Once a manufacturer opts into the NHTSA program they must stay in the program for all of the optional model years and remain standardized with the same implementation approach being followed to meet the EPA CO 2 (5) If a manufacturer generates credits from vehicles certified for advanced technology in accordance with paragraph (e)(1) of this section, a multiplier of 1.5 can be used, but this multiplier cannot be used on the same credits for which the early credit multiplier is used. (6) For model years 2012 and later, manufacturers may generate or use fuel consumption credits for averaging to demonstrate compliance with the alternative standards as described in § 535.5(b)(6) of this part. Manufacturers can specify a Family Emission Limit (FEL) for fuel consumption for each vehicle subfamily. The FEL may not be less than the result of emissions and fuel consumption modeling as described in 40 CFR 1037.520 and § 535.6. These FELs serve as the fuel consumption standards for the vehicle subfamily instead of the standards specified in this § 535.5(b)(6). Manufacturers may not use averaging for motor homes, coach buses, emergency vehicles or concrete mixers meeting standards under § 535.5(b)(5). (7) Manufacturers may not use averaging for vehicles meeting standards § 535.5(b)(6)(iv) through (vi), and manufacturers may not use fuel consumption credits for banking or trading for any vehicles certified under § 535.5(b)(6). (8) Manufacturers certifying any vehicles under § 535.5(b)(6) must consider each separate vehicle type (or group of vehicle types) as a separate averaging set. (d) ABT provisions for heavy-duty engines. Engine Family FCC (gallons) = (Std−FCL) × (CF) ×(Volume) × (UL) × (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: Table 3 to Paragraph ( d Regulatory Subcategory UL SI and CI LHD Engines 120,000 (Phase 1); 150,000 (Phase 2). CI MHD Engines 185,000. CI HHD Engines 435,000. (i) Calculate the value of credits generated in a model year for each family or subfamily consisting of engines with advanced technology vehicles in each averaging set using the equation above and the guidelines provided in paragraph (f)(1) of this section. Manufacturers may generate credits for advanced technology vehicles using incentives specified in paragraph (f)(1) of this section. (ii) Calculate the value of credits generated in a model year for each family or subfamily consisting of engines with off-cycle technology vehicles in each averaging set using the equation above and the guidelines provided in paragraph (f)(2) of this section. (2) Manufacturers shall sum all negative and positive credits for each engine family within the applicable averaging set to obtain the total credit balance for the model year before rounding. The sum of fuel consumptions credits should be rounded to the nearest gallon. Calculate the total credits generated in a model year for each averaging set using the following equation: Total averaging set MY credits = Σ Engine family credits within each averaging set (3) The provisions of this section apply to manufacturers utilizing the compression-ignition engine voluntary alternate standard provisions specified in § 535.5(d)(4) as follows: (i) Manufacturers may not certify engines to the alternate standards if they are part of an averaging set in which they carry a balance of banked credits. For purposes of this section, manufacturers are deemed to carry credits in an averaging set if they carry credits from advance technology that are allowed to be used in that averaging set. (ii) Manufacturers may not bank fuel consumption credits for any engine family in the same averaging set and model year in which it certifies engines to the alternate standards. This means a manufacturer may not bank advanced technology credits in a model year it certifies any engines to the alternate standards. (iii) Note that the provisions of paragraph (d)(10) of this section apply with respect to credit deficits generated while utilizing alternate standards. (4) Where a manufacturer has chosen to comply with the EPA alternative compression-ignition engine phase-in standard provisions in 40 CFR 1036.150(e), and has optionally decided to follow the same path under the NHTSA fuel consumption program, it must certify all of its model year 2013 compression-ignition engines within a given averaging set to the applicable alternative standards in § 535.5(d)(5). Engines certified to these standards are not eligible for early credits under paragraph (d)(14) of this section. Credits are calculated using the same equation provided in paragraph (d)(11) of this section. (5) If a manufacturer chooses to generate early CO 2 2 (6) Manufacturers may generate fuel consumption credits from an engine family subject to spark-ignition standards for exchanging with other engine families only if the engines in the family are gasoline-fueled. (7) Engine credits generated for compression-ignition engines in model year 2020 and earlier may be used in model year 2021 and later as follows: (i) For credit-generating engines certified to the tractor engine standards in § 535.5(d), you may use credits calculated relative to the tractor engine standards. (ii) For credit-generating engines certified to the vocational engine standards in § 535.5(d), you may use credits calculated relative to the following family certification levels (FCLs): (A) Medium Heavy-Duty Engines = 5.4813 gallons/100 hp-hr (B) Heavy Heavy-Duty Engines = 5.1572 gallons/100 hp-hr (C) To transfer Phase 1 credits for use in the Phase 2 fuel consumption program, manufacturers must recalculate credit values for the Phase 1 model years by substituting the FCLs in paragraph (d)(1) of this section with the those in paragraphs (d)(7)(ii)(A) and (B) of this section. (8) Engine families manufacturers certify with a nonconformance penalty under 40 CFR part 86, subpart L, and may not generate fuel consumption credits. (9) Alternate transition option for Phase 2 engine standards. (i) If a manufacturer is eligible to certify all of its model year 2020 engines within the averaging set to the tractor and vocational vehicle engine standards in § 535.5(d)(11) and the requirements applicable to model year 2021 engines, the banked and traded fuel consumption credits generated for model year 2018 through 2024 engines may be used through model year 2030 as specified in paragraph (d)(9)(ii) of this section or through a five-year credit life, whichever is later. (ii) Banked and traded fuel consumption credits generated under this paragraph (d)(9) for model year 2018 through 2024 engines may be used through model year 2030 with the extended credit life values shown in the table: Model year Credit life 2018 12 2019 11 2020 10 2021 9 2022 8 2023 7 2024 6 2025 and later 5 (e) [Reserved] (f) Additional credit provisions Advanced technology credits. 2 6 6 (A) Heavy-duty pickup trucks and vans. (B) Tractors and vocational vehicles. ( 1 ( 2 ( 3 Benefit (gallon/1000 ton mile) = Improvement Factor × GEM Fuel Consumption Result__B Where: Improvement Factor = (Fuel Consumption__A−Fuel Consumption__B)/(Fuel Consumption__A). Fuel Consumption Rates A and B are the gallons per 1000 ton-mile of the conventional and advanced vehicles, respectively as measured under the test procedures specified by EPA. GEM Fuel Consumption Result B is the estimated gallons per 1000 ton-mile rate resulting from emission modeling of the advanced vehicle as specified in 40 CFR 1037.520 and § 535.6(b). ( 4 ( 5 (C) Heavy-duty engines. ( 1 ( 2 ( 3 (D) Credit calculation. (ii) There are no separate credit allowances for advanced technology vehicles in the Phase 2 program. Instead, through model year 2027, vehicle families containing plug-in battery electric hybrids, all-electric, and fuel cell vehicles certifying to Phase 2 vocational and tractor standards may multiply credits by a multiplier of: (A) 3.5 times for plug-in hybrid electric vehicles; (B) 4.5 times for all-electric vehicles; and (C) 5.5 times for fuel cell vehicles. (D) Incentivized credits for vehicles equipped with advanced technologies maintain the same credit flexibilities and restrictions as conventional credits specified in paragraph (a) of this section during the Phase 2 program. (E) For vocational vehicles and tractors subject to Phase 2 standards, create separate vehicle families if there is a credit multiplier for advanced technology; group those vehicles together in a vehicle family if they use the same multiplier. (F) For Phase 2 plug-in hybrid electric vehicles and for fuel cells powered by any fuel other than hydrogen, calculate fuel consumption credits using an FEL based on equivalent emission measurements from powertrain testing. Phase 2 advanced-technology credits do not apply for hybrid vehicles that have no plug-in capability. (G) Advanced technology credits increased with a multiplier in Phase 2, in accordance with § 535.7(f)(1)(ii), cannot be used across averaging sets. (2) Innovative and off-cycle technology credits. 2 (i) For model years 2013 through 2020, manufacturers may generate innovative technology credits for introducing technologies that were not in-common use for heavy-duty tractor, vocational vehicles or engines before model year 2010 and that are not reflected in the EPA specified test procedures. Upon identification and joint approval with EPA, NHTSA will allow equivalent fuel consumption credits into its program to those allowed by EPA for manufacturers seeking to obtain innovative technology credits in a given model year. Such credits must remain within the same regulatory subcategory in which the credits were generated. NHTSA will adopt fuel consumption credits depending upon whether— (A) The technology has a direct impact upon reducing fuel consumption performance; and (B) The manufacturer has provided sufficient information to make sound engineering judgments on the impact of the technology in reducing fuel consumption performance. (ii) For model years 2021 and later, or for model years 2021 through 2029, for heavy-duty pickup trucks and vans manufacturers may generate off-cycle technology credits for introducing technologies that are not reflected in the EPA specified test procedures. Upon identification and joint approval with EPA, NHTSA will allow equivalent FCCs into its program to those allowed by EPA for manufacturers seeking to obtain innovative technology credits in a given model year. Such credits must remain within the same regulatory subcategory in which the credits were generated. NHTSA will adopt FCCs depending upon whether— (A) The technology meets paragraphs (f)(2)(i)(A) and (B) of this section. (B) For heavy-duty pickup trucks and vans, manufacturers using the 5-cycle test to quantify the benefit of a technology are not required to obtain approval from the agencies to generate results. (iii) The following provisions apply to all innovative and off-cycle technologies: (A) Technologies found to be defective, or identified as a part of NHTSA's safety defects program, and technologies that are not performing as intended will have the values of approved off-cycle credits removed from the manufacturer's credit balance. (B) Approval granted for innovative and off-cycle technology credits under NHTSA's fuel efficiency program does not affect or relieve the obligation to comply with the Vehicle Safety Act (49 U.S.C. Chapter 301), including the “make inoperative” prohibition (49 U.S.C. 30122), and all applicable Federal motor vehicle safety standards issued thereunder (FMVSSs) (49 CFR part 571). In order to generate off-cycle or innovative technology credits manufacturers must state— ( 1 ( 2 (C) Manufacturers requesting approval for innovative technology credits are required to provide documentation in accordance with 40 CFR 86.1869-12, 1036.610, and 1037.610. (D) Credits will be accepted on a one-for-one basis expressed in terms of gallons in comparison to those approved by EPA. (E) For the heavy-duty pickup trucks and vans, the average fuel consumption will be calculated as a separate credit amount (rounded to the nearest whole number) using the following equation: Off-cycle FC credits = (CO 2 Where: CO 2 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 (CO 2 (F) NHTSA will not approve innovative technology credits for technology that is related to crash-avoidance technologies, safety critical systems or systems affecting safety-critical functions, or technologies designed for the purpose of reducing the frequency of vehicle crashes. (iv) Manufacturers normally may not calculate off-cycle credits or improvement factors under this section for technologies represented by GEM, but the agencies may allow a manufacturer to do so by averaging multiple GEM runs for special technologies for which a single GEM run cannot accurately reflect in-use performance. For example, if a manufacturer use an idle-reduction technology that is effective 80 percent of the time, the agencies may allow a manufacturer to run GEM with the technology active and with it inactive, and then apply an 80% weighting factor to calculate the off-cycle credit or improvement factor. A may need to perform testing to establish proper weighting factors or otherwise quantify the benefits of the special technologies. (v) [Reserved] (vi) Carry-over Approval. (A) For model years before 2021, manufacturers may continue to use an approved improvement factor or credit for any appropriate engine or vehicle family in future model years through 2020. (B) For model years 2021 and later, or for model years 2021 through 2029 for heavy-duty pickup trucks and vans, manufacturers may not rely on an approval for model years before 2021. Manufacturers must separately request the agencies' approval before applying an improvement factor or credit under this section for 2021 and later engines and vehicle, even if the agencies approve the improvement factor or credit for similar engine and vehicle models before model year 2021. (C) The following restrictions also apply to manufacturers seeking to continue to carryover the improvement factor (not the credit value) if— ( 1 ( 2 ( 3 ( 4 (D) The documentation to carryover credits that would primarily justify the difference in fuel efficiency between real world and compliance protocols is the same for both Phase 1 and Phase 2 compliance protocols. The agencies must approve the justification. If the agencies do not approve the justification, the manufacturer must recertify. [81 FR 74238, Oct. 25, 2016, as amended at 85 FR 25274, Apr. 30, 2020; 89 FR 18829, Mar. 15, 2024; 89 FR 52952, June 24, 2024] § 535.8 Reporting and recordkeeping requirements. (a) General requirements. (1) The information required by this part must be submitted by the deadlines specified in this section and must be based upon all the information and data available to the manufacturer 30 days before submitting information. (2) Manufacturers must submit information electronically through the EPA database system as the single point of entry for all information required for this national program and both agencies will have access to the information. In special circumstances, data may not be able to be received electronically ( i.e., (3) Manufacturers providing incomplete reports missing any of the required information or providing untimely reports are considered as not complying with standards ( i.e., (4) Manufacturers certifying a vehicle or engine family using an FEL or FCL below the applicable fuel consumption standard as described in § 535.5 may choose not to generate fuel consumption credits for that family. In which case, the manufacturer is not required to submit reporting or keep the associated records described in this part for that family. (5) Manufacturers must use good engineering judgment and provide comparable fuel consumption information to that of the information or data provided to EPA under 40 CFR 86.1865, 1036.250, 1036.730, 1036.825 1037.250, 1037.730, and 1037.825. (6) Any information that must be sent directly to NHTSA. In instances in which EPA has not created an electronic pathway to receive the information, the information should be sent through an electronic portal identified by NHTSA or through the NHTSA CAFE database ( i.e., (b) Pre-model year reports. (1) Report deadlines. (2) Contents. (i) A list of each unique subconfiguration in the manufacturer's fleet describing the make and model designations, attribute based-values ( i.e., (ii) The emission and fuel consumption fleet average standard derived from the unique vehicle configurations; (iii) The estimated vehicle configuration, test group and fleet production volumes; (iv) The expected emissions and fuel consumption test group results and fleet average performance; (v) If complying with MY 2013 fuel consumption standards, a statement must be provided declaring that the manufacturer is voluntarily choosing to comply early with the EPA and NHTSA programs. The manufacturers must also acknowledge that once selected, the decision cannot be reversed and the manufacturer will continue to comply with the fuel consumption standards for subsequent model years for all the vehicles it manufacturers in each regulatory category for a given model year; (vi) If complying with MYs 2014, 2015 or 2016 fuel consumption standards, a statement must be provided declaring whether the manufacturer will use fixed or increasing standards in accordance with § 535.5(a). The manufacturer must also acknowledge that once selected, the decision cannot be reversed and the manufacturer must continue to comply with the same alternative for subsequent model years for all the vehicles it manufacturers in each regulatory category for a given model year; (vii) If complying with MYs 2014 or 2015 fuel consumption standards, a statement must be provided declaring that the manufacturer is voluntarily choosing to comply with NHTSA's voluntary fuel consumption standards in accordance with § 535.5(a)(4). The manufacturers must also acknowledge that once selected, the decision cannot be reversed and the manufacturer will continue to comply with the fuel consumption standards for subsequent model years for all the vehicles it manufacturers in each regulatory category for a given model year; (viii) The list of Class 2b and 3 incomplete vehicles (cab-complete or chassis complete vehicles) and the method used to certify these vehicles as complete pickups and vans identifying the most similar complete sister- or other complete vehicles used to derive the target standards and performance test results; (ix) The list of Class 4 and 5 incomplete and complete vehicles and the method use to certify these vehicles as complete pickups and vans identifying the most similar complete or sister vehicles used to derive the target standards and performance test results; (x) List of loose engines included in the heavy-duty pickup and van category and the list of vehicles used to derive target standards and performance test results; (xi) Copy of any notices a vehicle manufacturer sends to the engine manufacturer to notify the engine manufacturers that their engines are subject to emissions and fuel consumption standards and that it intends to use their engines in excluded vehicles; (xii) A fuel consumption credit plan as specified § 535.7(a) identifying the manufacturers estimated credit balances, planned credit flexibilities ( i.e., (xiii) The supplemental information specified in paragraph (h) of this section. Note to paragraph ( b NHTSA may also ask a manufacturer to provide additional information if necessary to verify compliance with the fuel consumption requirements of this section. (c) Applications for certificate of conformity. (1) Submission deadlines. (2) Contents. (i) Equivalent fuel consumption values for emissions CO 2 (ii) Equivalent fuel consumption values for emission CO 2 (iii) Equivalent fuel consumption values for emissions CO 2 (iv) Report modeling results for ten configurations in terms of CO 2 (v) Credit plans including the fuel consumption credit plan described in § 535.7(a). (3) Additional supplemental information. (d) End of the Year (EOY) and Final reports. (1) Report deadlines. (ii) For model year 2013 and later, heavy-duty vehicle and engine manufacturers complying with NHTSA voluntary and mandatory standards must submit final reports through the EPA database including both GHG emissions and fuel consumption information within 270 days after the end of the given model year and no later than September 30 of the next calendar year. (iii) A manufacturer may ask NHTSA and EPA to extend the deadline of a final report by up to 30 days. A manufacturer unable to provide, and requesting to omit an emissions rate or fuel consumption value from a final report must obtain approval from the agencies prior to the submission deadline of its final report. (iv) If a manufacturer expects differences in the information reported between the EOY and the final year report specified in 40 CFR 1036.730 and 1037.730, it must provide the most up-to-date fuel consumption projections in its final report and identify the information as preliminary. (v) If the manufacturer cannot provide any of the required fuel consumption information, it must state the specific reason for the insufficiency and identify the additional testing needed or explain what analytical methods are believed by the manufacturer will be necessary to eliminate the insufficiency and certify that the results will be available for the final report. (2) Contents. (i) Engine and vehicle family designations and averaging sets. (ii) Engine and vehicle regulatory subcategory and fuel consumption standards including any alternative standards used. (iii) Engine and vehicle family FCLs and FELs in terms of fuel consumption. (iv) Production volumes for engines and vehicles. (v) A summary as specified in paragraph (g)(7) of this section describing the vocational vehicles and vocational tractors that were exempted as heavy-duty off-road vehicles. This applies to manufacturers participating and not participating in the ABT program. (vi) A summary describing any advanced or innovative technology engines or vehicles including alternative fueled vehicles that were produced for the model year identifying the approaches used to determinate compliance and the production volumes. (vii) A list of each unique subconfiguration included in a manufacturer's fleet of heavy-duty pickup trucks and vans identifying the attribute based-values (GVWR, GCWR, Curb Weight, and drive configurations) and standards. This provision applies only to manufacturers producing heavy-duty pickup trucks and vans. (viii) The fuel consumption fleet average standard derived from the unique vehicle configurations. This provision applies only to manufacturers producing heavy-duty pickup trucks and vans. (ix) The subconfiguration and test group production volumes. This provision applies only to manufacturers producing heavy-duty pickup trucks and vans. (x) The fuel consumption test group results and fleet average performance. This provision applies only to manufacturers producing heavy-duty pickup trucks and vans. (xi) Manufacturers may correct errors in EOY and final reports as follows: (A) Manufacturers may correct any errors in their end-of-year report when preparing the final report, as long as manufacturers send us the final report by the time it is due. (B) If manufacturers or the agencies determine within 270 days after the end of the model year that errors mistakenly decreased he manufacturer's balance of fuel consumption credits, manufacturers may correct the errors and recalculate the balance of its fuel consumption credits. Manufacturers may not make any corrections for errors that are determined more than 270 days after the end of the model year. If manufacturers report a negative balance of fuel consumption credits, NHTSA may disallow corrections under this paragraph (d)(2)(xi)(B). (C) If manufacturers or the agencies determine any time that errors mistakenly increased its balance of fuel consumption credits, manufacturers must correct the errors and recalculate the balance of fuel consumption credits. (xii) Under limited conditions, NHTSA may also ask a manufacturer to provide additional information directly to the Administrator if necessary to verify the fuel consumption requirements of this regulation. (e) Amendments to applications for certification. (f) Confidential information. public (1) The item is within the scope of 5 U.S.C. 552(b)(4) and 49 U.S.C. 32910(c); (2) The disclosure of the information at issue would cause significant competitive damage; (3) The period during which the item must be withheld to avoid that damage; and (4) How earlier disclosure would result in that damage. (g) Additional required information. (1) Small businesses. (2) Emergency vehicles. (3) Early introduction. (4) NHTSA voluntary compliance model years. (5) Alternative engine standards. (6) Alternate phase-in. (7) Off-road exclusion (tractors and vocational vehicles only). (A) A description of each excluded vehicle configuration, including an explanation of why it qualifies for this exclusion. (B) The number of vehicles excluded for each vehicle configuration. (ii) A manufacturer having an off-road vehicle failing to meet the criteria under the agencies' off-road exclusions will be allowed to request an exclusion of such a vehicle from EPA and NHTSA. The approval will be granted through the certification process for the vehicle family and will be done in collaboration between EPA and NHTSA in accordance with the provisions in 40 CFR 1037.150, 1037.210, and 1037.631. (8) Vocational tractors. (9) Approval of alternate methods to determine drag coefficients (tractors only). (10) Innovative and off-cycle technology credits. Federal Register (11) Credit trades. (i) As the seller, the manufacturer must include the following information: (A) The corporate names of the buyer and any brokers. (B) A copy of any contracts related to the trade. (C) The averaging set corresponding to the engine and powertrain families and subfamilies that generated fuel consumption credits for the trade, including the number of fuel consumption credits from each averaging set. (ii) As the buyer, the manufacturer or entity must include the following information in its report: (A) The corporate names of the seller and any brokers. (B) A copy of any contracts related to the trade. (C) How the manufacturer or entity intends to use the fuel consumption credits, including the number of fuel consumption credits it intends to apply for each averaging set. (D) A copy of the contract with signatures from both the buyer and the seller. (12) Production reports. (13) Transition to engine-based model years. (i) If a manufacturer installs model year 2020 or earlier engines in the manufacturer's vehicles in calendar year 2020, include all those Phase 1 vehicles in its production and ABT reports related to model year 2020 compliance, although the agencies may require the manufacturer to identify these separately from vehicles produced in calendar year 2019. (ii) If a manufacturer installs model year 2020 engines in its vehicles in calendar year 2021, submit production and ABT reports for those Phase 1 vehicles separate from the reports it submits for Phase 2 vehicles with model year 2021 engines. (h) Public information. (i) Information received from EPA. (j) Recordkeeping. (1) Manufacturers must organize and maintain records for NHTSA as described in this section. NHTSA in conjunction or separately from EPA may review a manufacturers records at any time. (2) Keep the records required by this section for at least eight years after the due date for the end-of-year report. Manufacturers may not use fuel consumption credits for any engines if it does not keep all the records required under this section. Manufacturers must therefore keep these records to continue to bank valid credits. Store these records in any electronic format and on any media, as long as the manufacturer can promptly send the agencies organized records in English if the agencies ask for them. Manufacturers must keep these records readily available. NHTSA may review them at any time. (3) Keep a copy of the reports required in § 535.8 and 40 CFR 1036.725,1036.730, 1037.725 and 1037.730. (4) Keep records of the vehicles and engine identification number (usually the serial number) for each vehicle and engine produced that generates or uses fuel consumption credits under the ABT program. Manufacturers may identify these numbers as a range. If manufacturers change the FEL after the start of production, identify the date started using each FEL/FCL and the range of vehicles or engine identification numbers associated with each FEL/FCL. Manufacturers must also identify the purchaser and destination for each vehicle and engine produced to the extent this information is available. (5) The agencies may require manufacturers to keep additional records or to send relevant information not required by this section in accordance with each agency's authority. (6) If collected separately and NHTSA finds that information is provided fraudulent or grossly negligent or otherwise provided in bad faith, the manufacturer may be liable to civil penalties in accordance with each agency's authority. [81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18831, Mar. 15, 2024] § 535.9 Enforcement approach. (a) Compliance. (i) NHTSA may conduct audits or confirmatory testing on any configuration prior to first sale throughout a given model year or after the model year in order to validate data received from manufacturers and will discuss any potential issues with EPA and the manufacturer. NHTSA may perform confirmatory testing. Any such testing would be performed as specified in EPA's regulations at 40 CFR part 1037. Audits may periodically be performed to confirm manufacturers' credit balances, or other credit transactions or other information submitted to EPA and NHTSA. (ii) NHTSA may also conduct field inspections either at manufacturing plants or at new vehicle dealerships to validate data received from manufacturers. Field inspections will be carried out in order to validate the condition of vehicles, engines or technology prior to first commercial sale to verify each component's certified configuration as initially built. NHTSA reserves the right to conduct inspections at other locations but will target only those components for which a violation would apply to OEMs and not the fleets or vehicle owners. Compliance inspections could be carried out through a number of approaches including during safety inspections or during compliance safety testing. (iii) NHTSA will conduct audits and inspections in the same manner and, when possible, in conjunction with EPA. NHTSA will also attempt to coordinate inspections with EPA and share results. (iv) Documents collected under NHTSA safety authority may be used to support fuel efficiency audits and inspections. (v) NHTSA may require a manufacturer to perform selective enforcement audits with respect to any GEM inputs in its application for certification or in the end of the year ABT final reports. Any required selective enforcement audits would be required to be conducted in a manner consistent with EPA's corresponding provisions at 40 CFR 1037.301, 1037.305, and 1037.320. (2) At the end of each model year NHTSA will confirm a manufacturer's fleet or family performance values against the applicable standards and, if a manufacturer uses a credit flexibility, the amount of credits in each averaging set. The averaging set balance is based upon the engines or vehicles performance above or below the applicable regulatory subcategory standards in each respective averaging set and any credits that are traded into or out of an averaging set during the model year. (i) If the balance is positive, the manufacturer is designated as having a credit surplus. (ii) If the balance is negative, the manufacturer is designated as having a credit deficit. (iii) NHTSA will provide notification to each manufacturer confirming its credit balance(s) after the end of each model year directly or through EPA. (3) Manufacturer are required to confirm the negative balance and submit a fuel consumption credit plan as specified in § 535.7(a) along with supporting documentation indicating how it will allocate existing credits or earn (providing information on future vehicles, engines or technologies), and/or acquire credits, or else be liable for a civil penalty as determined in paragraph (b) of this section. The manufacturer must submit the information within 60 days of receiving agency notification. (4) Credit shortfall within an averaging set may be carried forward only three years, and if not offset by earned or traded credits, the manufacturer may be liable for a civil penalty as described in paragraph (b) of this section. (5) Credit allocation plans received from a manufacturer will be reviewed and approved by NHTSA. NHTSA will approve a credit allocation plan unless it determines that the proposed credits are unavailable or that it is unlikely that the plan will result in the manufacturer earning or acquiring sufficient credits to offset the subject credit shortfall. In the case where a manufacturer submits a plan to acquire future model year credits earned by another manufacturer, NHTSA will require a signed agreement by both manufacturers to initiate a review of the plan. If a plan is approved, NHTSA will revise the respective manufacturer's credit account accordingly by identifying which existing or traded credits are being used to address the credit shortfall, or by identifying the manufacturer's plan to earn future credits for addressing the respective credit shortfall. If a plan is rejected, NHTSA will notify the respective manufacturer and request a revised plan. The manufacturer must submit a revised plan within 14 days of receiving agency notification. The agency will provide a manufacturer one opportunity to submit a revised credit allocation plan before it initiates civil penalty proceedings. (6) For purposes of this regulation, NHTSA will treat the use of future credits for compliance, as through a credit allocation plan, as a deferral of civil penalties for non-compliance with an applicable fuel consumption standard. (7) If NHTSA receives and approves a manufacturer's credit allocation plan to earn future credits within the following three model years in order to comply with regulatory obligations, NHTSA will defer levying civil penalties for non-compliance until the date(s) when the manufacturer's approved plan indicates that credits will be earned or acquired to achieve compliance, and upon receiving confirmed CO 2 (8) In the event that NHTSA fails to receive or is unable to approve a plan for a non-compliant manufacturer due to insufficiency or untimeliness, NHTSA may initiate civil penalty proceedings. (9) In the event that a manufacturer fails to report accurate fuel consumption data for vehicles or engines covered under this rule, noncompliance will be assumed until corrected by submission of the required data, and NHTSA may initiate civil penalty proceedings. (10) If EPA suspends or revoke a certificate of conformity as specified in 40 CFR 1036.255 or 1037.255, and a manufacturer is unable to take a corrective action allowed by EPA, noncompliance will be assumed, and NHTSA may initiate civil penalty proceedings or revoke fuel consumption credits. (b) Civil penalties Generally. (2) Initial determination of noncompliance. 2 (3) Numbers of violations and maximum civil penalties. (4) Factors for determining penalty amount. (5) NHTSA enforcement report of determination of non-compliance. (ii) The NHTSA Chief Counsel will review the report prepared by NHTSA Enforcement to determine if there is sufficient information to establish a likely violation. (iii) If the Chief Counsel determines that a violation has likely occurred, the Chief Counsel may issue a Notice of Violation to the party. (iv) If the Chief Counsel issues a Notice of Violation, he or she will prepare a case file with recommended actions. A record of any prior violations by the same party shall be forwarded with the case file. (6) Notice of violation. (A) The name and address of the party; (B) The alleged violation(s) and the applicable fuel consumption standard(s) violated; (C) The amount of the proposed penalty and basis for that amount; (D) The place to which, and the manner in which, payment is to be made; (E) A statement that the party may decline the Notice of Violation and that if the Notice of Violation is declined within 30 days of the date shown on the Notice of Violation, the party has the right to a hearing, if requested within 30 days of the date shown on the Notice of Violation, prior to a final assessment of a penalty by a Hearing Officer; and (F) A statement that failure to either pay the proposed penalty or to decline the Notice of Violation and request a hearing within 30 days of the date shown on the Notice of Violation will result in a finding of violation by default and that NHTSA will proceed with the civil penalty in the amount proposed on the Notice of Violation without processing the violation under the hearing procedures set forth in this subpart. (ii) The Notice of Violation may be delivered to the party by— (A) Mailing to the party (certified mail is not required); (B) Use of an overnight or express courier service; or (C) Facsimile transmission or electronic mail (with or without attachments) to the party or an employee of the party. (iii) At any time after the Notice of Violation is issued, NHTSA and the party may agree to reach a compromise on the payment amount. (iv) Once a penalty amount is paid in full, a finding of “resolved with payment” will be entered into the case file. (v) If the party agrees to pay the proposed penalty, but has not made payment within 30 days of the date shown on the Notice of Violation, NHTSA will enter a finding of violation by default in the matter and NHTSA will proceed with the civil penalty in the amount proposed on the Notice of Violation without processing the violation under the hearing procedures set forth in this subpart. (vi) If within 30 days of the date shown on the Notice of Violation a party fails to pay the proposed penalty on the Notice of Violation, and fails to request a hearing, then NHTSA will enter a finding of violation by default in the case file, and will assess the civil penalty in the amount set forth on the Notice of Violation without processing the violation under the hearing procedures set forth in this subpart. (vii) NHTSA's order assessing the civil penalty following a party's default is a final agency action. (7) Hearing Officer. (ii) The Hearing Officer will be appointed by the NHTSA Administrator, and is solely responsible for the case referred to him or her. The Hearing Officer shall have no other responsibility, direct or supervisory, for the investigation of cases referred for the assessment of civil penalties. The Hearing Officer shall have no duties related to the light-duty fuel economy or medium- and heavy-duty fuel efficiency programs. (iii) The Hearing Officer decides each case on the basis of the information before him or her. (8) Initiation of action before the Hearing Officer. (A) The date, time, and location of the hearing and whether the hearing will be conducted telephonically or at the DOT Headquarters building in Washington, DC; (B) The right to be represented at all stages of the proceeding by counsel as set forth in paragraph (b)(9) of this section; and (C) The right to a free copy of all written evidence in the case file. (ii) On the request of a party, or at the Hearing Officer's direction, multiple proceedings may be consolidated if at any time it appears that such consolidation is necessary or desirable. (9) Counsel. (10) Hearing location and costs. (ii) The Hearing Officer may transfer a case to another Hearing Officer at a party's request or at the Hearing Officer's direction. (iii) A party is responsible for all fees and costs (including attorneys' fees and costs, and costs that may be associated with travel or accommodations) associated with attending a hearing. (11) Hearing procedures. (ii) The material in the case file pertinent to the issues to be determined by the Hearing Officer is presented by the Chief Counsel or his or her designee. (iii) The Chief Counsel may supplement the case file with information prior to the hearing. A copy of such information will be provided to the party no later than three business days before the hearing. (iv) At the close of the Chief Counsel's presentation of evidence, the party has the right to examine respond to and rebut material in the case file and other information presented by the Chief Counsel. In the case of witness testimony, both parties have the right of cross-examination. (v) In receiving evidence, the Hearing Officer is not bound by strict rules of evidence. In evaluating the evidence presented, the Hearing Officer must give due consideration to the reliability and relevance of each item of evidence. (vi) At the close of the party's presentation of evidence, the Hearing Officer may allow the introduction of rebuttal evidence that may be presented by the Chief Counsel. (vii) The Hearing Officer may allow the party to respond to any rebuttal evidence submitted. (viii) After the evidence in the case has been presented, the Chief Counsel and the party may present arguments on the issues in the case. The party may also request an opportunity to submit a written statement for consideration by the Hearing Officer and for further review. If granted, the Hearing Officer shall allow a reasonable time for submission of the statement and shall specify the date by which it must be received. If the statement is not received within the time prescribed, or within the limits of any extension of time granted by the Hearing Officer, it need not be considered by the Hearing Officer. (ix) A verbatim transcript of the hearing will not normally be prepared. A party may, solely at its own expense, cause a verbatim transcript to be made. If a verbatim transcript is made, the party shall submit two copies to the Hearing Officer not later than 15 days after the hearing. The Hearing Officer shall include such transcript in the record. (12) Determination of violations and assessment of civil penalties. (ii) If the Hearing Officer assesses civil penalties in excess of $1,000,000, the Hearing Officer's decision shall contain a statement advising the party of the right to an administrative appeal to the Administrator within a specified period of time. The party is advised that failure to submit an appeal within the prescribed time will bar its consideration and that failure to appeal on the basis of a particular issue will constitute a waiver of that issue in its appeal before the Administrator. (iii) The filing of a timely and complete appeal to the Administrator of a Hearing Officer's order assessing a civil penalty shall suspend the operation of the Hearing Officer's penalty, which shall no longer be a final agency action. (iv) There shall be no administrative appeals of civil penalties assessed by a Hearing Officer of less than $1,000,000. (13) Appeals of civil penalties in excess of $1,000,000. (ii) The Administrator will review the decision of the Hearing Officer de novo, and may affirm the decision of the hearing officer and assess a civil penalty, or (iii) The Administrator may— (A) Modify a civil penalty; (B) Rescind the Notice of Violation; or (C) Remand the case back to the Hearing Officer for new or additional proceedings. (iv) In the absence of a remand, the decision of the Administrator in an appeal is a final agency action. (14) Collection of assessed or compromised civil penalties. (ii) The party must remit payment of any assessed civil penalty to NHTSA within 30 days after receipt of the Hearing Officer's order assessing civil penalties, or, in the case of an appeal to the Administrator, within 30 days after receipt of the Administrator's decision on the appeal. (iii) The party must remit payment of any compromised civil penalty to NHTSA on the date and under such terms and conditions as agreed to by the party and NHTSA. Failure to pay may result in NHTSA entering a finding of violation by default and assessing a civil penalty in the amount proposed in the Notice of Violation without processing the violation under the hearing procedures set forth in this part. (c) Changes in corporate ownership and control. (1) In general, if two manufacturers merge in any way, they must inform NHTSA how they plan to merge their credit accounts. NHTSA will subsequently assess corporate fuel consumption and compliance status of the merged fleet instead of the original separate fleets. (2) If a manufacturer divides or divests itself of a portion of its automobile manufacturing business, it must inform NHTSA how it plans to divide the manufacturer's credit holdings into two or more accounts. NHTSA will subsequently distribute holdings as directed by the manufacturer, subject to provision for reasonably anticipated compliance obligations. (3) If a manufacturer is a successor to another manufacturer's business, it must inform NHTSA how it plans to allocate credits and resolve liabilities per 49 CFR part 534. [81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18831, Mar. 15, 2024] § 535.10 How do manufacturers comply with fuel consumption standards? (a) Pre-certification process. (2) Manufacturers may seek preliminary approvals as specified in 40 CFR 1036.210 and 40 CFR 1037.210 from EPA and NHTSA, if needed. Manufacturers may request to schedule pre-certification meetings with EPA and NHTSA prior to submitting approval requests for certificates of conformity to address any joint compliance issues and gain informal feedback from the agencies. (3) [Reserved] (4) In circumstances in which EPA provides multiple compliance approaches manufacturers must choose the same compliance path to comply with NHTSA's fuel consumption standards that they choose to comply with EPA's greenhouse gas emission standards. (5) Manufacturers may not introduce new vehicles into commerce without a certificate of conformity from EPA. Manufacturers must attest to several compliance standards in order to obtain a certificate of conformity. This includes stating comparable fuel consumption results for all required CO 2 (6) Manufacturers apply the fuel consumption standards specified in § 535.5 to vehicles, engines and components that represent production units and components for vehicle and engine families, subfamilies and configurations consistent with the EPA specifications in 40 CFR 86.1819, 1036.230, and 1037.230. Vehicles required to meet the fuel consumption standards of this part must also comply with the following additional requirements, consistent with CFR 1037.115(a) and (d): (i) Adjustable parameters. (ii) Defeat devices. (7) Only certain vehicles and engines are allowed to comply differently between the NHTSA and EPA programs as detailed in this section. These vehicles and engines must be identified by manufacturers in the ABT and production reports required in § 535.8. (b) Model year compliance. 2 2 (c) End-of-the-year process. (1) For heavy-duty pickup trucks and vans, the manufacturer's fleet average performance, as determined in § 535.6, is less than the fleet average standard; or (2) For truck tractors, vocational vehicles, and engines the manufacturer's fuel consumption performance for each vehicle or engine family (or subfamily), as determined in § 535.6, is lower than the applicable regulatory subcategory standards in § 535.5. (3) [Reserved] (4) NHTSA will use the EPA final verified values as specified in 40 CFR 86.1819, 40 CFR 1036.755, and 1037.755 for making final determinations on whether vehicles and engines comply with fuel consumption standards. (5) A manufacturer fails to comply with fuel consumption standards if its final reports are not provided in accordance with § 535.8 and 40 CFR 86.1865, 1036.730, and 1037.730. Manufacturers not providing complete or accurate final reports or any plans by the required deadlines do not comply with fuel consumption standards. A manufacturer that is unable to provide any emissions results along with comparable fuel consumption values must obtain permission for EPA to exclude the results prior to the deadline for submitting final reports. (6) A manufacturer that would otherwise fail to directly comply with fuel consumption standards as described in paragraphs (c)(1) through (3) of this section may use one or more of the credit flexibilities provided under the NHTSA averaging, banking and trading program, as specified in § 535.7, but must offset all credit deficits in its averaging sets to achieve compliance. (7) A manufacturer failing to comply with the provisions specified in this part may be liable to pay civil penalties in accordance with § 535.9. (8) A manufacturer may also be liable to pay civil penalties if found by EPA or NHTSA to have provided false information as identified through NHTSA or EPA enforcement audits or new vehicle verification testing as specified in § 535.9 and 40 CFR parts 86, 1036, and 1037. [81 FR 74238, Oct. 25, 2016, as amended at 89 FR 18831, Mar. 15, 2024]

Related documents

• 49 CFR Part 537 — Automotive Fuel Economy Reports#511868
• 10 CFR Part 431 — Energy Efficiency Program for Certain Commercial and Industrial Equipment#505072
• 49 CFR Part 533 — Light Truck Fuel Economy Standards#511864
• 7 CFR Part 2903 — Biodiesel Fuel Education Program#504692
• 23 CFR Part 627 — Value Engineering#507197