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Petroleum-Equivalent Fuel Economy Calculation rule (2024)

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The Petroleum-Equivalent Fuel Economy Calculation is a significant rule issued by the Office of Energy Efficiency and Renewable Energy, Department of Energy (DOE), effective June 12, 2024, that revises regulations for calculating petroleum-equivalency factor for electric vehicles.[1]

HIGHLIGHTS
  • Name: Petroleum-Equivalent Fuel Economy Calculation
  • Agency: Department of Energy (DOE)
  • Action: Final rule
  • Type of significant rule: Other significant rule

    • Timeline

    The following timeline details key rulemaking activity:

    Background

    The Energy Policy and Conservation Act of 1975, grants the Department of Energy DOE the authority to establish and enforce energy efficiency standards for various consumer products and industrial equipment, as well as to set fuel economy standards for automobiles. Additionally, it authorizes the DOE to conduct research and development initiatives aimed at promoting energy conservation and reducing dependence on foreign oil.[1]

    Summary of the rule

    The following is a summary of the rule from the rule's entry in the Federal Register:[1]

    “

    The U.S. Department of Energy (DOE) publishes a final rule that revises the value for the petroleum-equivalency factor (PEF). This final rule revises DOE's regulations regarding procedures for calculating a value for the petroleum-equivalent fuel economy of electric vehicles (EVs). The PEF is used by the Environmental Protection Agency (EPA) in calculating light-duty vehicle manufacturers' compliance with the Department of Transportation's (DOT) Corporate Average Fuel Economy (CAFE) standards.[2]

    		”

    Summary of provisions

    The following is a summary of the provisions from the rule's entry in the Federal Register:[1]

    “

    After considering comments, DOE is modifying the methodology as initially proposed in the 2023 NOPR in the following ways:

    Updating the grid mix projection from the 2021 National Renewable Energy Laboratory (NREL) “95 by 2050” Scenario to the more current electricity generation forecast in the 2022 NREL “Standard Scenario Mid-Case,” which accounts for the latest technology and policies.

    Changing the method of calculating the PEF value from using an average of annual PEF values between MY 2027 to MY 2031 to calculating a PEF value based on the survivability-weighted lifetime mileage schedule of the fleet of vehicles sold during the regulatory period.

    Phasing-out the use of the fuel content factor between MY 2027 and MY 2030 rather than removing it from the PEF equation as of the effective date of the rule, as proposed in the 2023 NOPR.[2]

    		”

    Significant impact

    See also: Significant regulatory action

    Executive Order 12866, issued by President Bill Clinton (D) in 1993, directed the Office of Management and Budget (OMB) to determine which agency rules qualify as significant rules and thus are subject to OMB review.

    Significant rules have had or might have a large impact on the economy, environment, public health, or state or local governments. These actions may also conflict with other rules or presidential priorities. Executive Order 12866 further defined an economically significant rule as a significant rule with an associated economic impact of $100 million or more. Executive Order 14094, issued by President Joe Biden (D) on April 6, 2023, made changes to Executive Order 12866, including referring to economically significant rules as section 3(f)(1) significant rules and raising the monetary threshold for economic significance to $200 million or more.[1]


    The text of the Petroleum-Equivalent Fuel Economy Calculation rule states that OMB deemed this rule significant, but not economically significant:

    “

    Section 6(a) of E.O. 12866 also requires agencies to submit “significant regulatory actions” to the OIRA for review. OIRA has determined that this action constitutes a significant regulatory action within the scope of section 3(f) of E.O. 12866.[2]

    		”

    Text of the rule

    The full text of the rule is available below:[1]

    See also

    External links

    Footnotes

    1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Federal Register, “Petroleum-Equivalent Fuel Economy Calculation,” March 29, 2024
    2. ↑ 2.0 2.1 2.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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