(a) Type and vintage. All credits are identified and distinguished in the accounts by originating manufacturer, compliance category, and model year of origin (vintage).
(b) Application of credits. All credits earned and applied are calculated, per 49 U.S.C. 32903(c), in tenths of a mile per gallon by which the average fuel economy of vehicles in a particular compliance category manufactured by a manufacturer in the model year in which the credits are earned exceeds the applicable average fuel economy standard, multiplied by the number of vehicles sold in that compliance category. However, credits that have been traded between credit holders or transferred between compliance categories are valued for compliance purposes using the adjustment factor specified in paragraph (c) of this section, pursuant to the ``total oil savings'' requirement of 49 U.S.C. 32903(f)(1).
(c) Adjustment factor. When traded or transferred and used, fuel economy credits are adjusted to ensure fuel oil savings is preserved. For traded credits, the user (or buyer) must multiply the calculated adjustment factor by the number of its shortfall credits it plans to offset in order to determine the number of equivalent credits to acquire from the earner (or seller). For transferred credits, the user of credits must multiply the calculated adjustment factor by the number of its shortfall credits it plans to offset in order to determine the number of equivalent credits to transfer from the compliance category holding the available credits. The adjustment factor is calculated according to the following formula: [GRAPHIC] [TIFF OMITTED] TR18OC12.016 Where: A = Adjustment factor applied to traded and transferred credits.VMTe = Lifetime vehicle miles traveled as provided in the
following table for the model year and compliance category in
which the credit was earned;VMTu = Lifetime vehicle miles traveled as provided in the
following table for the model year and compliance category in
which the credit is used for compliance; ----------------------------------------------------------------------------------------------------------------
Lifetime vehicle miles traveled (VMT)
Model year ------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017-2025----------------------------------------------------------------------------------------------------------------Passenger Cars................... 150,922 177,238 177,366 178,652 180,497 182,134 195,264Light Trucks..................... 172,552 208,471 208,537 209,974 212,040 213,954 225,865---------------------------------------------------------------------------------------------------------------- MPGse = Required fuel economy standard for the originating
(earning) manufacturer, compliance category, and model year in
which the credit was earned;MPGae = Actual fuel economy for the originating manufacturer,
compliance category, and model year in which the credit was
earned;MPGsu = Required fuel economy standard for the user (buying)
manufacturer, compliance category, and model year in which the
credit is used for compliance; andMPGau = Actual fuel economy for the user manufacturer,
compliance category, and model year in which the credit is
used for compliance. [74 FR 14452, Mar. 30, 2009, as amended at 75 FR 25727, May 7, 2010; 77 FR 64051, Oct. 18, 2012]