Light Truck Average Fuel Economy Standard, Model Year 2000
[Federal Register: April 6, 1998 (Volume 63, Number 65)]
[Rules and Regulations]
[Page 16699-16701]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ap98-16]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Part 533
[Docket No. NHTSA-97-3130]
RIN 2127-AG72
Light Truck Average Fuel Economy Standard, Model Year 2000
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) 2000. The issuance of
the standard is required by statute. Pursuant to section 322 of the
fiscal year (FY) 1998 DOT Appropriations Act, the light truck standard
for MY 2000 is 20.7 mpg.
DATES: The amendment is effective May 6, 1998. The standard applies to
the 2000 model year. Petitions for reconsideration must be submitted
within 45 days of publication.
ADDRESSES: Petitions for reconsideration should be submitted to:
Administrator,
[[Page 16700]]
National Highway Traffic Safety Administration, 400 Seventh Street,
S.W., Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT: Mr. Otto G. Matheke, III, Office of
Chief Counsel, National Highway Traffic Safety Administration, 400
Seventh Street SW, Washington, DC 20590 (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, NHTSA 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. Pursuant to this authority, the agency has
set light truck CAFE standards through MY 1999. See 49 CFR 533.5(a).
The standard for MY 1999 is 20.7 mpg.
NHTSA 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.
NHTSA thereafter 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 automobiles
prior to enactment of this section.
On March 31, 1997, NHTSA 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 a Notice of Proposed
Rulemaking (NPRM). The agency concluded that the restriction contained
in Section 323 of the FY 1997 Appropriations Act precluded the issuance
of any standards other than those set for the 1998 model year. Because
it had no discretion, NHTSA determined that issuing a 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 provides:
Sec. 322. 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 NHTSA to set the MY 2000 standard is approximately April
1, 1998. However, the agency cannot promulgate such a standard without
the expenditure of funds, and it may not spend any funds in violation
of the terms of Section 322 of the FY 1998 Appropriations Act.
The agency notes that the language contained in Section 322 of the
FY 1998 Appropriations 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 compels the conclusion that Congress considered the agency's prior
interpretation 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.
Examination of the legislative history of the FY 1998 Act further
supports this view. The language contained in Section 322 remained
unmodified as part of H.R. 2169, which was eventually enacted as the FY
1998 Act. Section 322 was reported by the House Committee on
Appropriations as part of H.R. 2169. The Committee print of the House
Report to accompany H.R. 2169 stated, at page 100, that the section
precluded NHTSA from prescribing CAFE standards that differ from those
set for the 1999 model 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 and 1999. As was the case with the
establishment of the MY 1999 standard, the agency has once again not
issued a Notice of Proposed Rulemaking (NPRM) and has therefore not
offered an opportunity for notice and comment prior to issuance of the
MY 2000 light truck standard. In NHTSA's view, the express directive
contained in the FY 1998 Appropriations Act precludes the agency from
exercising any discretion in setting CAFE standards for the 2000 model
year. As NHTSA cannot expend any funds to set the 2000 standard at any
level other than the MY 1999 standard, providing an opportunity for
notice and comment would be unnecessary and contrary to the public
interest. Accordingly, NHTSA is setting the MY 2000 light truck CAFE
standard at the MY 1999 level of 20.7 mpg.
II. Impact Analyses
A. Economic Impacts
The agency has not prepared a final economic assessment because of
the restrictions imposed by Section 322 of the FY 1998 DOT
Appropriations Act.
[[Page 16701]]
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 the
agency has no discretion under the statute (as well as with respect to
the costs it imposes), NHTSA is treating this rule as ``economically
significant'' under Executive Order 12866 and ``major'' under 5 U.S.C.
801.
B. Environmental Impacts
NHTSA has not conducted an evaluation of the impacts of this action
under the 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 notice.
C. Impacts on Small Entities
NHTSA has 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. Furthermore, as Congress has
eliminated the agency's discretion by precluding any action other than
the one taken in this notice, NHTSA 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, NHTSA certifies that this final
rule would not have a significant economic impact on a substantial
number of small entities.
D. Executive Order 12612 (Federalism)
NHTSA has analyzed this final rule in accordance with the
principles and criteria contained in E.O. 12612, and has determined
that this proposed rule would 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 (Public Law 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 1998 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 the agency is precluded from expending any funds to prepare an
alternative fuel economy standard, it cannot embark on any studies of
such alternatives. NHTSA has therefore not prepared a written
assessment of this rule for the purposes of the Unfunded Mandates Act.
F. Paperwork Reduction Act
There are no information collection requirements in this rule.
G. Department of Energy Review
In accordance with section 49 U.S.C. Sec. 32902(j), NHTSA submitted
this final rule to the Department of Energy for review. That Department
made no unaccommodated comments.
III. Conclusion
Based on the foregoing, the agency is establishing a combined
average fuel economy standard for non-passenger automobiles (light
trucks) for MY 2000 at 20.7 mpg.
List of Subjects in 49 CFR Part 533
Energy conservation, Fuel economy, Motor vehicles.
In consideration of the foregoing, 49 CFR Part 533 is amended as
follows:
PART 533--[AMENDED]
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(a) is amended by revising Table IV 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
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* * * * *
Issued On: March 30, 1998.
Ricardo Martinez,
Administrator.
[FR Doc. 98-8883 Filed 3-31-98; 5:05 pm]
BILLING CODE 4910-59-P
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