[Federal Register Volume 64, Number 66 (Wednesday, April 7, 1999)]
[Rules and Regulations]
[Pages 16860-16862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8580]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Part 533
[Docket No. NHTSA-99-5464]
RIN 2127-AH52
Light Truck Average Fuel Economy Standard, Model Year 2001
AGENCY: National Highway Traffic Safety Administration (NHTSA).
ACTION: Final rule.
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SUMMARY: This final rule establishes the average fuel economy standard
for light trucks manufactured in model year (MY) 2001. The issuance of
the standard is required by statute. As required by section 322 of the
fiscal year (FY) 1999 DOT Appropriations Act, the light truck standard
for MY 2001 is identical to the standard for MY 2000, 20.7 mpg.
DATES: This final rule becomes effective on June 7, 1999.
ADDRESSES: Petitions for reconsideration should be submitted to:
Administrator, National Highway Traffic Safety Administration, 400
Seventh Street, S.W., Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT: For non-legal issues, call Henrietta
Spinner, Office of Consumer Programs, at (202) 366-0846, facsimile
(202) 366-2738, electronic mail hspinner@nhtsa.dot.gov''. For legal
issues, call Otto Matheke, Office of the Chief Counsel, at 202-366-
5263.
SUPPLEMENTARY INFORMATION:
I. Background
In December 1975, during the aftermath of the energy crisis created
by the oil embargo of 1973-74, Congress enacted the Energy Policy and
Conservation Act. The Act established an automotive fuel economy
regulatory program by adding Title V, ``Improving Automotive
Efficiency,'' to the Motor Vehicle Information and Cost Saving Act.
Title V has been amended and recodified without substantive change as
Chapter 329 of Title 49 of the United States Code. Chapter 329 provides
for the issuance of average fuel economy standards for passenger
automobiles and automobiles that are not passenger automobiles (light
trucks).
Section 32902(a) of Chapter 329 states that the Secretary of
Transportation shall prescribe by regulation corporate average fuel
economy (CAFE) standards for light trucks for each model year. That
section also states that ``[e]ach standard shall be the maximum
feasible average fuel economy level that the Secretary decides the
manufacturers can achieve in that model year.'' (The Secretary has
delegated the authority to implement the automotive fuel economy
program to the Administrator of NHTSA. 49 CFR 1.50(f).) Section
32902(f) provides that in determining the maximum feasible average fuel
economy level, we shall consider four criteria: technological
feasibility, economic practicability, the effect of other motor vehicle
standards of the Government on fuel economy, and the need of the United
States to conserve energy. Using this authority, we have set light
truck CAFE standards through MY 2000. See 49 CFR 533.5(a). The standard
for MY 2000 is 20.7 mpg.
We began the process of establishing light truck CAFE standards for
model years after MY 1997 by publishing an Advance Notice of Proposed
Rulemaking (ANPRM) in the Federal Register. 59 FR 16324 (April 6,
1994). The ANPRM outlined the agency's intention to set standards for
some or all of model years 1998 to 2006.
On November 15, 1995, the Department of Transportation and Related
Agencies Appropriations Act for Fiscal Year 1996 was enacted. Pub. L.
104-50. Section 330 of that Act provides:
None of the funds in this Act shall be available to prepare,
propose, or promulgate any regulations . . . prescribing corporate
average fuel economy standards for automobiles . . . in any model
year that differs from standards promulgated for such automobiles
prior to enactment of this section.
We then issued a notice of proposed rulemaking (NPRM) limited to MY
1998, which proposed to set the light truck CAFE standard for that year
at 20.7 mpg, the same standard as had been set for MY 1997. 61 FR 145
(January 3, 1996). This 20.7 mpg standard was adopted by a final rule
issued on March 29, 1996. 61 FR 14680 (April 3, 1996).
On September 30, 1996, the Department of Transportation and Related
Agencies Appropriations Act for Fiscal Year 1997 was enacted. Pub. L.
104-205. Section 323 of that Act provides:
None of the funds in this Act shall be available to prepare,
propose, or promulgate any regulations . . . prescribing corporate
average fuel economy standards for automobiles . . . in any model
year that differs from standards promulgated for such
[[Page 16861]]
automobiles prior to enactment of this section.
On March 31, 1997, we issued a final rule (62 FR 15859)
establishing light truck fuel economy standards for the 1999 model
year. This final rule was not preceded by an NPRM. The agency concluded
that the restriction contained in Section 323 of the FY 1997
Appropriations Act prevented us from issuing any standards other than
the standard set for the 1998 model year. Because we had no other
course of action, we determined that issuing an NPRM was unnecessary
and contrary to the public interest.
On October 27, 1997, the Department of Transportation and Related
Agencies Appropriations Act for Fiscal Year 1998 was enacted. Pub. L.
105-66. Section 322 of that Act provided, as did the corresponding
sections of the FY 1996 and FY 1997 appropriations acts, that none of
the funds appropriated could be used to promulgate any regulations
(including fuel economy standards) that differ from those of a prior
year. On March 30, 1998, we issued a final rule (63 FR 16699)
establishing light truck fuel economy standards for the 2000 model
year. This final rule was also not preceded by an NPRM. The agency
concluded that the restriction contained in Section 322 of the FY 1998
Appropriations Act prevented us from issuing any standards other than
the standard set for the 1999 model year. As was the case in prior
years, we determined that issuing an NPRM was unnecessary and contrary
to the public interest because we had no other course of action.
On October 21, 1998, the Omnibus Consolidated and Emergency
Supplemental Appropriations Act for Fiscal Year 1999 was enacted. Pub.
L. 105-277. This law contained the appropriations provisions for the
Department of Transportation for the 1999 fiscal year. Section 322 of
that Act provides:
None of the funds in this Act shall be available to prepare,
propose, or promulgate any regulations pursuant to title V of the
Motor Vehicle Information and Cost Savings Act prescribing corporate
average fuel economy standards for automobiles, as defined in such
title, in any model year that differs from standards promulgated for
such automobiles prior to enactment of this section.
Because light truck CAFE standards must be set no later than
eighteen months before the beginning of the model year in question, the
deadline for us to set the MY 2001 standard is approximately April 1,
1999. As the agency cannot spend any funds in violation of the terms of
Section 322, it cannot undertake any work in preparation of a standard
for MY 2001 unless it is identical to the MY 2000 standard. Preparation
of any fuel economy standard requires the agency to spend money to
determine what the appropriate fuel economy level would be, to analyze
the costs and benefits of that standard and to prepare documents and
studies regarding the standard. Incurring these costs when the
legislation dictates the fuel economy level would not be a productive
use of resources. Accordingly, the agency is foregoing any analysis of
what the appropriate fuel economy level for MY 2001 might be.
We note that the language contained in Section 322 of the FY 1999
Act is identical to that found in Section 330 of the FY 1996
Appropriations Act and Section 323 of the FY 1997 Appropriations Act.
The adoption of identical language in the FY 1998 Act leads us to
conclude that Congress considered our prior view of this language to be
correct: the limitation precludes NHTSA from setting a light truck
standard that differs from one adopted in the previous year.
As explained above, Section 322 precludes NHTSA from preparing,
proposing, or issuing any CAFE standard that is not identical to those
previously established for MYs 1998, 1999 and 2000. We are therefore
establishing the MY 2001 light truck standard through the issuance of
this final rule. In our view, the express directive in the FY 1999
Omnibus Appropriations Act stops us from considering a new CAFE
standard for the 2001 model year. As we cannot expend any funds to set
the 2001 standard at any level other than the MY 2000 standard, issuing
a notice of proposed rulemaking and providing an opportunity for notice
and comment would be unnecessary and contrary to the public interest.
Accordingly, this final rule sets the MY 2001 light truck CAFE standard
at the MY 2000 level of 20.7 mpg.
II. Correcting Amendment
In a notice published in the Federal Register on April 6, 1994, (59
FR 16313) we established fuel economy standards for light trucks for
the 1996 and 1997 model years. The final rule contained in that notice
also modified the existing fuel economy standards for light trucks by
eliminating the separate category for captive imports and combining all
light trucks into a single category. Because of this, Sec. 533.5(a) of
Part 533 was modified to replace an existing table, table III--which
had a column for captive imports and a column for all other light
trucks. However, the regulatory text was not changed to reflect the
change to a single category for all light trucks. To correct this
oversight, we are amending Sec. 533.5 by adding a new paragraph--
533.5(f)--indicating that for the 1996 model year and all subsequent
model years, that captive imports and other trucks will be combined
into a single category, as shown in table III.
III. Final rule
These regulations are being published as a final rule. Accordingly,
the fuel economy standards in Part 533 are fully in effect 30 days
after the date of the document's publication. No further regulatory
action by the agency is necessary to make these regulations effective.
These regulations have been published as a final rule without prior
issuance of a notice of proposed rulemaking because Section 322 of the
FY 1999 DOT appropriations act prevents us from issuing any fuel
economy standard for the 2001 model year that differs from those in
effect for the 2000 model year. Because of this, providing for prior
notice and opportunity for comment would have been superfluous.
In the agency's view, vehicle manufacturers and other parties will
not be harmed by the agency's decision not to issue an NPRM before
issuing a final rule to establish the MY 2001 light truck fuel economy
standard. The applicable fuel economy standards established in this
final rule do not differ from those established for the prior model
year. As these standards cannot be modified by the agency, use of a
final rule without a prior NPRM has no impact on the positions of any
interested party.
IV. Impact Analyses
A. Economic Impacts
We have not prepared a final economic assessment because of the
restrictions imposed by Section 322 of the FY 1999 DOT Appropriations
Act. All past fuel economy rules, however, have had economic impacts in
excess of $100 million per year. The rule was reviewed by the Office of
Management and Budget under Executive Order 12866 and is considered
significant under the Department's regulatory procedures. Although we
have no discretion under the statute (as well as with respect to the
costs it imposes), we are treating this rule as ``economically
significant'' under Executive Order 12866 and ``major'' under 5 U.S.C.
801.
B. Environmental Impacts
We have not conducted an evaluation of the impacts of this action
under the
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National Environmental Policy Act. There is no requirement for such an
evaluation where Congress has eliminated the agency's discretion by
precluding any action other than the one announced in this document.
C. Impacts on Small Entities
We have not conducted an evaluation of this action pursuant to the
Regulatory Flexibility Act. The agency notes that this final rule,
which was not preceded by a Notice of Proposed Rulemaking, is not a
``rule'' as defined by the Regulatory Flexibility Act and is,
therefore, not subject to its provisions. As Congress has eliminated
the agency's discretion by precluding any action other than the one
taken in this document, we would not be able to take any action in the
event such an analysis supported setting the light truck fuel economy
at a different level. Past evaluations indicate, however, that few, if
any, light truck manufacturers would have been classified as a ``small
business'' under the Regulatory Flexibility Act.
The Regulatory Flexibility Act of 1980 (Public Law 96-354) requires
each agency to evaluate the potential effects of a final rule on small
businesses. Establishment of a fuel economy standard for light trucks
affects motor vehicle manufacturers, few of which are small entities.
The Small Business Administration (SBA) has set size standards for
determining if a business within a specific industrial classification
is a small business. The Standard Industrial Classification code used
by the SBA for Motor Vehicles and Passenger Car Bodies (3711) defines a
small manufacturer as one having 1,000 employees or fewer.
Very few single stage manufacturers of motor vehicles within the
United States have 1,000 or fewer employees. Those that do are not
likely to have sufficient resources to design, develop, produce and
market a light truck. For this reason, we certify that this final rule
would not have a significant economic impact on a substantial number of
small entities.
D. Executive Order 12612 (Federalism)
We have analyzed this final rule in accordance with the principles
and criteria contained in E.O. 12612, and have determined that this
final rule does not have significant Federalism implications to warrant
the preparation of a Federalism Assessment. As a historical matter,
prior light truck standards have not had sufficient Federalism
implications to warrant the preparation of a Federalism Assessment.
E. The Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires
agencies to prepare a written assessment of the costs, benefits and
other effects of proposed or final rules that include a Federal mandate
likely to result in the expenditure by State, local or tribal
governments, in the aggregate, or by the private sector, of more than
$100 million annually.
The agency notes that Section 322 of the FY 1999 DOT Appropriations
Act precludes the agency from the expenditure of any funds to prepare,
propose or promulgate any fuel economy standard that differs from those
currently in effect. This directive forbids NHTSA from studying any
alternative fuel economy standards other than those presently in force.
The agency cannot consider any other alternative standards that may
result in lower costs, lesser burdens, or more cost-effectiveness for
state, local or tribal governments or the private sector. Furthermore,
as we are precluded from expending any funds to prepare an alternative
fuel economy standard, it cannot embark on any studies of such
alternatives. We have therefore not prepared a written assessment of
this final rule for the purposes of the Unfunded Mandates Act.
F. Paperwork Reduction Act
There are no information collection requirements in this final
rule.
G. Department of Energy Review
In accordance with 49 U.S.C. 32902(j), We submitted this final rule
to the Department of Energy for review. That Department did not make
any comments that we have not responded to.
V. Conclusion
Based on the foregoing, we are establishing a combined average fuel
economy standard for non-passenger automobiles (light trucks) for MY
2001 at 20.7 mpg.
List of Subjects in 49 CFR Part 533
Energy conservation, Fuel economy, Motor vehicles.
PART 533--[AMENDED]
In consideration of the foregoing, 49 CFR Part 533 is amended as
follows:
1. The authority citation for part 533 continues to read as
follows:
Authority: 49 U.S.C. 32902; delegation of authority at 49 CFR
1.50.
2. Sec. 533.5 is amended by revising Table IV in paragraph (a) and
by adding paragraph (f) to read as follows:
Sec. 533.5 Requirements.
(a) * * *
Table IV
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Model year Standard
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1996....................................................... 20.7
1997....................................................... 20.7
1998....................................................... 20.7
1999....................................................... 20.7
2000....................................................... 20.7
2001....................................................... 20.7
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(f) For model year 1996 and thereafter, each manufacturer shall
combine its captive imports with its other light trucks and comply with
the average fuel economy standard in paragraph (a) of this section.
Issued on: April 1, 1999.
Ricardo Martinez,
Administrator.
[FR Doc. 99-8580 Filed 4-2-99; 3:19 pm]
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