1/22/93

                Clean Fuel Fleet Credit Programs,
           Transportation Control Measure Exemptions,
                      and Related Provisions

                           Final Rule

EPA CONTACT:  
Mr. James G. Bryson    Telephone:  (313) 741-7828
U.S. EPA
Regulation Development and Support Division
2565 Plymouth Rd.
Ann Arbor, MI  48105-2425


The ZIP'd file CFF.ZIP contains the document CFF.W51, which is 
the full final rule, in Word Perfect 5.1 format.


SUMMARY:  Provisions of the Clean Air Act Amendments enacted in 
1990 require the establishment of a Clean Fuel Fleet Program to 
reduce emissions of ozone precursors, especially non-methane 
organic gases and oxides of nitrogen, through the introduction of 
lower-polluting vehicles in specified areas.  Under this program, 
some of the new vehicles purchased by certain fleet owners 
located in covered areas (certain ozone and carbon monoxide 
nonattainment areas) will be required to meet clean-fuel fleet 
vehicle (CFFV) exhaust emission standards.

     As a part of this program, the Clean Air Act (CAA) requires 
EPA to promulgate provisions governing state implementation plans 
(SIPs) that implement a program to grant fleet owners credits for 
exceeding purchase requirements and to exempt clean-fuel fleet 
vehicles from certain transportation control measures (TCMs). 
Proposed regulations governing the states' implementation of the 
credit program and TCM exemptions were published on October 3, 
1991 (56 FR 50196) and are finalized by today's action.  The 
credit program, which is based on additional emission reductions, 
allows fleet owners to earn purchase credits from early or extra 
purchases of CFFVs or by acquiring vehicles which are certified 
to stricter emission standards than required.  A fleet owner may 
bank credits earned to demonstrate compliance with the purchase 
requirement at a later date, or may trade them to another fleet.  
This program will assist the fleet industry in meeting the air 
quality improvement goals of the fleet program in the most 
cost-effective manner possible.

     Today's action also requires that states provide exemptions 
from temporally-based TCMs, established wholly or partially for 
air quality reasons, to all clean-fuel fleet vehicles.  The TCM 
exemptions granted to CFFVs are intended to serve as an incentive 
to fleets participating in the program to exceed their purchases 
beyond the requirements.  In addition, this rule establishes 
provisions for a new subgroup of CFFVs, known as inherently 
low-emission vehicles (ILEVs).  This federal program, which is 
voluntary for both the vehicle manufacturers and the fleet 
industry, will grant expanded TCM exemptions to vehicles in this 
group in recognition of their superior emission characteristics.  
Initially, ILEVs will receive exemptions from high-occupancy 
vehicle (HOV) lane restrictions; EPA will propose additional 
exemptions/incentives later on this year.  These exemptions are 
intended to provide further incentives to fleet owners to 
purchase cleaner vehicles than otherwise required by the statute.  
EPA had also proposed provisions implementing the federal 
facility provisions of section 246(g) of the Act.  EPA has 
decided to finalize this action by guidance instead of 
regulation.