Clean Fuel Fleet Program

[Federal Register: April 23, 1998 (Volume 63, Number 78)]
[Rules and Regulations]
[Page 20103-20107]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23ap98-19]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 88

[FRL-5994-5]
RIN 2060-AH56

Clean Fuel Fleet Program

AGENCY: Environmental Protection Agency.

ACTION: Direct final rule; delay of implementation date.

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SUMMARY: The provisions of subpart C of Title II of the Clean Air Act
require states with certain ozone and carbon monoxide (CO)
nonattainment areas to revise their State Implementation Plans (SIP) to
incorporate a Clean Fuel Fleet

[[Page 20104]]

Program. Under this program, specified percentages of new vehicles
acquired by covered fleet operators in certain ozone and CO
nonattainment areas must meet EPA's clean-fuel vehicle (CFV) emissions
standards. Today's action delays by one model year, the requirement
that a covered area's State Implementation Plan implement a Clean Fuel
Fleet Program (CFFP) fleet operator purchase requirement. As a result,
EPA may approve a CFFP SIP revision which provides that covered fleet
operators must include a certain percentage of CFVs in their fleet
vehicle purchases each year beginning with model year 1999. This action
is intended to ensure successful implementation of the CFFP, and to
ensure that an adequate supply of appropriate vehicles is available for
fleet operators to purchase and use once the program is underway, so
that compliance with the mandatory purchase requirements will be
possible and economically feasible for covered fleet operators.

DATES: This rule will become effective on June 8, 1998 unless the
Agency receives relevant adverse comment by May 26, 1998. Should the
Agency receive such comments, it will publish notification withdrawing
this rule.

ADDRESSES: Interested parties may submit written comments in response
to this rule (in duplicate if possible) to Public Docket No. A-97-53.
It is requested that a duplicate copy may be submitted to Sally
Newstead at the address in the FOR FURTHER INFORMATION CONTACT section
below. The docket is located at the Air Docket, Room M-1500 (6102),
Waterside Mall SW, Washington, DC 20460. The docket may be inspected
between 8:00 a.m. and 5:30 p.m. on weekdays, excluding holidays. A
reasonable fee may be charged for copying docket material.

FOR FURTHER INFORMATION CONTACT: Sally Newstead, Office of Mobile
Sources, National Vehicle and Fuel Emissions Laboratory, 2565 Plymouth
Road, Ann Arbor, Michigan 48105. Telephone (734) 668-4474.

SUPPLEMENTARY INFORMATION:

Statutory Authority

The statutory authority for this action is provided by sections 246
and 301 of the Clean Air Act.

Background

EPA is publishing this rule without prior proposal because the
Agency views this as a noncontroversial action and anticipates no
adverse comments. However, in the proposed rules section of this
Federal Register publication, EPA is publishing a separate document
that will serve as the proposal for this action should relevant adverse
comments be filed. This rule will be effective June 8, 1998 without
further notice unless the Agency receives relevant adverse comments by
May 26, 1998. If EPA receives such comments, EPA will publish a
document withdrawing this final rule and informing the public that the
rule did not take effect. All public comments received will then be
addressed in a subsequent final rule based on the proposed rule. EPA
will not institute a second comment period on the proposed rule.
The Clean Air Act, as amended in 1990 (``CAA'' or ``the Act''),
requires certain states to adopt and submit to EPA a State
Implementation Plan (SIP) containing a CFFP for nonattainment areas
with 1980 populations greater than 250,000 that are classified as
serious or worse for ozone, or with a design value of at least 16.0 ppm
for carbon monoxide (CO). The nonattainment areas currently covered by
the requirement to adopt and submit a CFFP are Atlanta, Washington DC
metropolitan area, Chicago-Gary-Lake Counties, Milwaukee-Racine, Baton
Rouge, and Denver-Boulder.1
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\1\ States with covered nonattainment areas may opt out of the
CFFP with an adequate substitute program. See CAA Section
182(c)(4)(B). Eleven states have opted out of the CFFP pursuant to
this provision. Areas reclassified for ozone, that have a 1980
population of at least 250,000, must also submit a SIP revision with
a CFFP within one year of such reclassification. See CAA Section
246(a)(3).
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Section 246 of the CAA provides that a states' SIP submission must
require fleet operators with 10 or more vehicles that are centrally
fueled or capable of being centrally fueled, to include a specified
percentage of clean-fuel vehicles (CFVs) in their new vehicle purchases
each year. In addition, states CFFP SIP submissions must comply with
other specifications in Section 246, including the requirement that
covered fleet operators must operate their CFVs in covered
nonattainment areas on a clean alternative fuel, defined as a fuel on
which the vehicle meets EPA's CFV standards when using such fuel. EPA
promulgated emissions standards for CFVs in September 1994. See 40 CFR
Part 88. EPA estimates that demand for CFVs by covered fleets in model
year 2 1998 would be approximately 47,000 light duty
vehicles and 12,000 heavy duty vehicles.
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\2\ A ``model year'' for purposes of fleet operators' compliance
with CFFP purchase requirements, and as used in this notice, is not
the same as ``model year'' as defined for purposes of motor vehicle
production. The definition of ``model year'' for the CFFP means
September 1 of the preceding year through August 31 of the named
year. Therefore, model year 1998 for the CFFP runs from September 1,
1997 through August 31, 1998. See 40 CFR 88.302-94.
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Start Date for CFFP Purchase Requirement

Section 246(c) of the CAA provides that the specified percentage of
new light duty vehicle purchases by covered fleet operators that must
be CFVs in a given model year shall be 30% in model year 1998, 50% in
model year 1999, and 70% in model year 2000 and later years, if certain
categories of new vehicles (light duty trucks (LDTs) below 6000 lbs
gross vehicle weight rating (GVWR) and light duty vehicles (LDVs))
certified to the Phase II CFV exhaust emissions standards are offered
for sale in California.3 In March 1993, EPA stated its
expectation that the vehicles specified in Section 246(c) would be
offered for sale in California by model year 1997, and therefore
states' SIP submissions should provide for implementation of the CFFP
purchase requirement beginning in model year 1998. EPA also stated its
intent to delay this implementation date if it later determined that
the requisite vehicles would not be offered for sale in California in
model year 1997. See 58 FR 11888 (March 1, 1993).
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\3\ The Phase II CFV exhaust emissions standards are found in
CAA Section 243(a)(2) and 243(b)(2), and include standards for non-
methane organic gases (NMOG), CO, oxides of nitrogen
(NO_X), particulate matter (PM), and formaldehyde that are
identical to California's Low Emission Vehicle (LEV) exhaust
emissions standards.
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EPA cannot mandate that vehicle manufacturers produce CFVs for
fleets to purchase to meet the CFFP requirements--Congress intended
that the creation of a market for CFVs would provide an incentive for
vehicle manufacturers to produce and sell such vehicles outside
California, ultimately resulting in broader market penetration. The
specification in section 246 (c) that certain vehicles meeting CFV
exhaust emissions standards must be available for sale in California
for implementation of the CFFP purchase requirement to begin in model
year 1998 was intended to provide a minimum level of reasonable
assurance that complying vehicle technology was available and being
produced.4 Without some such evidence of vehicle
availability, fleet operators cannot realistically be expected to
comply with the CFFP purchase requirements. However, Section 246 is not
clear on the issue of how many of the vehicles specified in Section
246(c) must be offered for sale in California before triggering

[[Page 20105]]

implementation of the CFFP purchase requirements.
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\4\ See A Legislative History of the Clean Air Act Amendments of
1990, Volume 1 at 903.
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In today's action, EPA is delaying the start date that the SIP must
contain for implementation of the CFFP purchase requirements from model
year 1998 to model year 1999, and intends to approve state SIP
submissions with CFFPs that start in model year 1999. EPA has received
information from various stakeholders, including states, covered fleet
operators, and vehicle manufacturers on this issue, and has concluded
that a delay until model year 1999 will result in a successful,
effective fleet program that advances the penetration of CFVs and clean
alternative fuels into the national market, and is consistent with the
provisions of Section 246(c) and with Congress' intent in adopting the
CFFP provisions of the Act.
The legislative history of the 1990 amendments to the CAA indicates
that, in adopting the CFFP, Congress made a clear choice between two
alternatives: requiring auto manufacturers to produce and sell CFVs, or
creating a market for CFVs and for clean alternative fuels by requiring
fleet operators to purchase such vehicles and operate on such fuels. In
choosing the latter option, Congress attempted to minimize the burden
on fleet operators by requiring some evidence of vehicle availability
in California as a precondition to implementation of the purchase
requirement before model year 2001. However, the Act does not provide a
clear indication of Congressional intent regarding the number of
vehicles in each weight category specified in Section 246(c) that must
be offered for sale in California to trigger the fleet operators'
purchase requirement. Because the CAA is silent on this particular
issue, and in the absence of a clear indication of Congressional
intent, it is appropriate for EPA to reasonably exercise its discretion
in a way that furthers the goals of the CFFP provisions, and determine
whether a sufficient number of requisite vehicle models are offered for
sale in California to require that other states SIPs implement the CFFP
in MY1998.
Auto manufacturers have certified a number of vehicle models to the
LEV standards in California on California reformulated gasoline, and
EPA expects these vehicles could be certified as federal CFVs. However,
because of the Act's requirement that fleet operators operate CFVs on
clean alternative fuels, as defined in Section 241(b), fleet operators
who purchase such CFVs to meet CFFP purchase requirements may have to
operate these vehicles on California reformulated gasoline, which is
generally not available outside California. EPA cannot conclude at this
time that federal reformulated gasoline or federal conventional
gasoline qualify as clean alternative fuels for CFVs certified to LEV
standards on California reformulated gasoline, due to potential
emissions differences resulting from differences in fuel composition
between California reformulated gasoline and federal fuels. EPA expects
that manufacturers could certify LEVs that have been certified to
California LEV standards on California reformulated gasoline as federal
CFVs on federal fuels--if manufacturers did so, fleet operators could
purchase such vehicles to meet CFFP purchase requirements, and operate
them on federal fuels in covered nonattainment areas without violating
the fuel use requirement of the CFFP. Certain new light duty trucks
(LDTs) below 6000 pounds GVWR and new light duty vehicles (LDVs)
certified to LEV exhaust emissions standards are currently being
offered for sale in California. However, only a limited number of LDTs
below 6000 lbs. GVWR were certified to California's LEV standards and
offered for sale in California in MY1997 as indicated in the following
chart.

List of Certified CA LEVs Offered for Sale in California in MY97
[As of April 1997]
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Manufacturer Certification number Models Type Standard Fuel
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Ford.............................. FORD-LDV-97-01-00......... Escort, Escort Wagon...... LDV LEV CA RFG.
FORD-LDV-97-38-00......... Sable, Sable Wagon, LDV LEV CA RFG.
Taurus, Taurus Wagon.
General Motors.................... GM-LDT-97-29-00........... Astro AWD (C&P)* Passenger LDT LEV CA RFG.
GM-LDT-97-40-00........... Safari AWD (P), Astro AWD LDT LEV CA RFG.
(C&P).
Honda............................. HONDA-LDV-97-19-00........ Civic, del Sol............ LDV LEV CA RFG.
HONDA-LDV-97-20-00........ Civic..................... LDV LEV CA RFG.
HONDA-LDV-97-21-00........ Civic, del Sol............ LDV LEV CA RFG.
HONDA-LDV-97-22-00........ Civic..................... LDV LEV CA RFG.
Nissan............................ NISSN-LDV-97-06-00........ Sentra/200SX.............. LDV LEV CA RFG.
Suzuki............................ SUZUK-LDV-97-05-00........ Metro..................... LDV LEV CA RFG.
SUZUK-LDV-97-06-00........ Metro, Swift.............. LDV LEV CA RFG.
Toyota............................ TOYOT-LDV-97-11-00........ Camry..................... LDV LEV CA RFG.
TOYOT-LDV-97-12-00........ Camry..................... LDV LEV CA RFG.
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* P=Passenger, C=Cargo.

In order to meet the MY98 purchase requirements, fleet operators
must have placed vehicle orders in April, 1997; however, the supply of
federally certified CFVs at this time was limited. Based on the limited
numbers of light duty vehicles and trucks offered for sale in
California in MY1997, and particularly the limited number of LDTs <6000
pounds GVWR, EPA believes that a short delay of the required
implementation date of the CFFP for one model year is reasonable to
avoid the potential for serious disruption of the initial
implementation of this program from an inadequate supply of vehicles.
Given the list of current federally certified CFVs, the available
choices for passenger cars, pick-up trucks, vans and sport utility
vehicles is limited to the following:

[[Page 20106]]

List of Certified CFVs Offered for Sale in MY97
[As of April 30, 1997]
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Manufacturer Certification number Models Type Standard Fuel
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Light Duty
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IMPCO Tech........................ IMPCO-LDCNGT-97-01........ Sierra C Pickup.......... LDT LEV CNG.
Chrysler.......................... CHRYSLER-LDCLT-97-01-00... Caravan(2WD), LDCLT ILEV+ULEV CNG.
Voyager(2WD).
CHRYS-ZEV-97-01........... Caravan(2WD), LDT ZEV Electricity.
Voyager(2WD).
Ford.............................. FORD-LDCNGV-97-01......... Crown Victoria........... LDV ILEV+ULEV CNG.
FORD-LDCNGT-97-01......... F250(2WD)................ LDT ILEV+ULEV CNG.
FORD-LDCNGT-97-02......... E250(2WD), E350(2WD)..... LDT ILEV+ULEV CNG.
General Motors.................... GM-ZEV-97-01.............. EV1...................... LDV ILEV+ZEV Electricity.
GN-ZEV-LDT-97-01.......... S10 Pickup............... LDT ILEV+ZEV Electricity.
Honda............................. HN-ZEV-97-01.............. EV Plus.................. LDV ILEV+ZEV Electricity.
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Manufacturer Certification number Models Standard Fuel
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Heavy Duty
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Cummins........................... CUMMINS-NGE (MHDD)-97-18............ B5.9-195G....................... LEV CNG.
CUMMINS-NGE (MHDD)-97-19............ B5.9-195F....................... LEV CNG.
CUMMINS-NGE (MHDD)-97-22............ C8.3-250G....................... LEV CNG.
CUMMINS-NGE (MHDE)-97-01............ B5.9-195G....................... ULEV CNG.
Detroit Diesel.................... DDC-NGE (LHDDE)-97-01............... Series 30G...................... LEV CNG.
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SIP Revisions

In light of this action, states with adopted CFFP SIPs may revise
their SIPs to provide for a model year 1999 start date for the CFFP
purchase requirements. Fleet operators may still earn credits for early
purchase of CFVs that meet all applicable requirements, including the
requirement that fleet operators operate their CFVs on clean
alternative fuels when in the covered nonattainment area. The EPA
believes this action will provide states and fleet owners the necessary
flexibility in those areas that are unable to meet the CFF purchase
requirements cited in the CAAA.

Administrative Requirements

A. Administrative Designation

Under Executive Order 12866, (58 FR 51735 (October 4, 1993)) the
Agency must determine whether the regulatory action is ``significant''
and therefore subject to Office of Management and Budget (OMB) review
and the requirements of the Executive Order. The Order defines
``significant regulatory action'' as one that is likely to result in a
rule that may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities;
(2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another Agency;
(3) Materially alter the budget impact of entitlement, grants, user
fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
Pursuant to the terms of Executive Order 12866, EPA believes that
this final action is not a significant regulatory action and therefore
not subject to OMB review. Approvals of SIP submittals under section
110 and subchapter I, part D of the Clean Air Act do not create any new
requirements but simply approve requirements that the State is already
imposing. This action simply revises regulations governing the
requirements states' CFFP SIP submissions must meet. It serves to delay
states' required implementation of CFFP purchase requirements.
Therefore, it has been determined that this action does not constitute
a ``major'' regulation.

B. Reporting and Recordkeeping Requirement

There are no information requirements in this direct final rule
which require the approval of the Office of Management and Budget under
the Paperwork Reduction Act 44 U.S.C. 3501 et seq.

C. Regulatory Flexibility

EPA has determined that it is not necessary to prepare a regulatory
flexibility analysis in connection with this final rule. EPA has also
determined that this rule will not have significant economic impact on
a substantial number of small entities. This is based on the fact that
this action does not impose any new requirements, but simply delays the
applicable start date of the CFFP purchase requirements that must be
included in certain state's SIPs, pursuant to the CAA. Thus, the impact
created by the proposed action does not increase the preexisting burden
of the existing rules which this proposal seeks to amend.

D. Submission to Congress

The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. This rule is not a
``major rule'' as defined by 5 U.S.C. 804(2).

[[Page 20107]]

E. Unfunded Mandates Act

Under section 202 of the Unfunded Mandates Reform Act of 1995
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA
must prepare a budgetary impact statement to accompany any proposed or
final rule where the estimated costs to State, local, or tribal
governments, or to the private sector, will be $100 million or more.
Under section 205, EPA must select the most cost-effective and least
burdensome alternative that achieves the objective of the rule and is
consistent with statutory requirements. Section 203 requires EPA to
establish a plan for informing and advising any small governments that
may be significantly impacted by the rule. To the extent that the rules
being adopted in this action would impose any mandate at all as defined
in section 101 of the Unfunded Mandates Act upon the state, local, or
tribal governments, or the private sector, as explained above, this
rule is not estimated to impose costs in excess of $100 million. EPA
has determined that today's action simply delays the purchase
requirements under state CFFPs and does not impose additional costs or
regulatory burdens. In fact, the one-year delay of implementation of
the purchase requirements is expected to reduce costs of compliance and
ease regulatory burdens.

List of Subjects in 40 CFR Part 88

Environmental protection, Labeling, Motor vehicle pollution,
Reporting and recordkeeping requirements.

Dated: April 3, 1998.
Carol M. Browner,
Administrator.

For the reasons set out in the preamble, 40 CFR part 88 is amended
as follows:

PART 88--[AMENDED]

1. The authority citation for part 88 continues to read as follows:

Authority: 42 U.S.C. 7410, 7418, 7581, 7582, 7583, 7584, 7586,
7588, 7589, 7601(a).

2. Section 88.308.94 is amended by designating the existing text as
paragraph (a) and by adding paragraph (b) to read as follows:

Sec. 88.308.94 Programmatic requirements for clean-fuel fleet
vehicles.

* * * * *
(b) Program start date. The SIP revision shall provide that the
clean fuel vehicle purchase requirements begin to apply no later than
model year 1999.

[FR Doc. 98-10151 Filed 4-22-98; 8:45 am]
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