View Rule
View EO 12866 Meetings | Printer-Friendly Version Download RIN Data in XML |
DOE/ENDEP | RIN: 1901-AB55 | Publication ID: Fall 2024 |
Title: Advanced Technology Vehicles Manufacturing Incentive Program | |
Abstract:
The U.S. Department of Energy (DOE) Loan Programs Office (LPO) proposes to revise its regulations at 10 CFR part 611, which provides the criteria and requirements, application requirements, and procedures for administering direct loans under the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, authorized by section 136 of the Energy Independence and Security Act of 2007 (ATVM statue), as amended (42 U.S.C. 17013). In this rulemaking, DOE proposes to update the performance criteria requirements and to define the additional categories of advanced technology vehicles (ATV) added to the ATVM statute by the Infrastructure Investment and Jobs Act of 2021 (IIJA) and the Inflation Reduction Act (IRA). Note, DOE recently published a related direct final rule (RIN 1901-AB60) that incorporated, without substantive change, the statutory amendments in the IIJA and IRA to the ATVM statute and associated appropriations provisions and authorities. DOE is also proposing, based on experience gained through implementing the ATVM Loan Program, amendments to certain provisions in 10 CFR part 611 that would further improve the administration of the program.
On May 19, 2024, DOE issued a request for information seeking public feedback on issues related to the eligibility criteria for the additional ATV categories permitted to receive ATVM direct loans, as provided by the IIJA and IRA. |
|
Agency: Department of Energy(DOE) | Priority: Section 3(f)(1) Significant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Proposed Rule Stage |
Major: Yes | Unfunded Mandates: No |
CFR Citation: 10 CFR 611 | |
Legal Authority: 42 U.S.C. 17013(e) |
Legal Deadline:
None |
|||||||||||||||
Statement of Need: This rulemaking is necessary to establish definitions for the categories of ATVs added to the ATVM statute by IIJA and IRA. Establishing defined terms provides clarity to potential applicant and their eligibility for ATVM financing. This rulemaking is also necessary to amend the emission performance criteria to address the requirements in the IRA. |
|||||||||||||||
Summary of the Legal Basis: Section 136 of the Energy Independence and Security Act of 2007 (EISA), P.L. 110-140 as amended, provides the authority of LPO to issue loans to support the development of manufacturing facilities for advanced technology vehicles and qualifying components (42 U,S,C, 17013). Section 40401(b) of the IIJA amended section 136 of the EISA to add the following categories of vehicles within the statutory definition of ATVs: a medium-duty vehicle or a heavy-duty vehicle that exceeds 125 percent of the greenhouse gas emissions and fuel efficiency standards established by the final rule of the Environmental Protection Agency entitled Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles-Phase 2 (81 FR 73478 (October 25, 2016)); a train or locomotive; a maritime vessel; an aircraft; and hyperloop technology. Section 50142 of the IRA provides the Secretary with the authority to use funds appropriated by the IRA for the costs of providing direct loans to the categories of ATVs added to the definition of ATV by the IIJA and also provides that, with respect to trains or locomotives; maritime vessels; aircraft; and hyperloop technology, such funds may be used for that purpose only if the relevant advanced technology vehicles emit, under any possible operational mode or condition, low or zero exhaust emissions of greenhouse gases. |
|||||||||||||||
Alternatives: The alternative is to take no action, rely on the existing regulations, and update publicly available guidance. |
|||||||||||||||
Anticipated Costs and Benefits: DOE anticipates that the new ATV classes will produce two to four loan applications per year following the effectiveness of this rule. At the same time, DOE expects a natural decrease in the number of applications from the prior ATV categories, as many parties planning projects under those categories have already applied to the ATVM Program, leaving the overall volume of ATVM Program applications steady over the next few years. Given the number of loan applications generated by non-road vehicle technologies, DOE does not anticipate requiring additional resources, personnel, or staff time compared to its baseline to process applications in new ATV categories. To the extent any of the loan applications for non-road technology classes introduced by this rulemaking are successful, without additional information on the size of the loan requests at this stage DOE would anticipate a similar level of transfer. DOE does not anticipate any greater administrative costs to the Federal Government resulting from this rulemaking.
While the ATVM Program has no application fee, each applicant would incur the following costs: costs by DOE’s independent advisors in connection with the applicant’s project, currently estimated at approximately $4 million; and a fee at the time of closing of a loan, equal to 10 basis points (0.1%) of the principal amount of the loan. The interest rate associated with an ATVM Program loan is equal to the U.S. Treasury-equivalent yield curve with zero credit spread.
The anticipated benefits of this rulemaking derive from facilitating applications for statutorily eligible projects under the ATVM Program. Under the existing part 611 and over the course of the ATVM Program, DOE has financed facilities for the manufacturing of advanced automobiles, as well as more recently for the manufacturing of electric vehicle batteries, battery-grade critical materials, and efficient electronic components. |
|||||||||||||||
Risks: Optional - no response provided. |
|||||||||||||||
Timetable:
|
Regulatory Flexibility Analysis Required: Undetermined | Government Levels Affected: Undetermined |
Federalism: No | |
Included in the Regulatory Plan: Yes | |
RIN Data Printed in the FR: No | |
Related RINs: Related to 1901-AB60 | |
Agency Contact: Rebecca Limmer Chief Counsel Department of Energy 1000 Independence Avenue SW, Washington, DC 20585 Phone:202 586-1174 Email: rebecca.limmer@hq.doe.gov |