[Federal Register Volume 60, Number 179 (Friday, September 15, 1995)]
[Rules and Regulations]
[Pages 47876-47878]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22998]



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[[Page 47877]]


DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 531

[Docket No. 95-45; Notice 2]


Passenger Automobile Average Fuel Economy Standards; MedNet 
Incorporated; Final Decision

AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.

ACTION: Final decision.

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SUMMARY: This decision responds to a petition filed by MedNet 
Incorporated (MedNet) requesting that it be exempted from the generally 
applicable average fuel economy standard of 27.5 miles per gallon (mpg) 
for model years 1996 through 1998, and that lower alternative standards 
be established for it for each of these model years. This decision 
exempts MedNet and establishes an alternative standard of 17.0 mpg for 
MY 1996, MY 1997, and MY 1998.

DATES: Effective date: October 30, 1995. This exemption and the 
alternative standards apply to MedNet for MYs 1996, 1997, and 1998. 
Petitions for reconsideration must be submitted by October 16, 1995.

ADDRESSES: Petitions for reconsideration must be submitted to: 
Administrator, NHTSA, 400 Seventh Street SW., Washington, D.C. 20590. 
It is requested, but not required, that 10 copies be provided.

FOR FURTHER INFORMATION CONTACT: Ms. Henrietta Spinner, Office of 
Market Incentives, NHTSA, 400 Seventh Street SW., Washington, D.C. 
20590. Ms. Spinner's telephone number is: (202) 366-4802.

SUPPLEMENTARY INFORMATION: NHTSA is exempting MedNet from the generally 
applicable average fuel economy standard for 1996, 1997, and 1998 model 
years and establishing alternative standards applicable to MedNet for 
each of these model years. This exemption is issued under the authority 
of 49 U.S.C. 32902(d), providing that NHTSA may exempt a low volume 
manufacturer of passenger automobiles from the generally applicable 
average fuel economy standards if NHTSA concludes that those standards 
are more stringent than the maximum feasible average fuel economy for 
that manufacturer and if NHTSA establishes an alternative standard for 
that manufacturer at its maximum feasible level. Under the statute, a 
low volume manufacturer is one that manufactured (worldwide) fewer than 
10,000 passenger automobiles in the second model year before the model 
year for which the exemption is sought (the affected model year) and 
that will manufacture fewer than 10,000 passenger automobiles in the 
affected model year. In determining the maximum feasible average fuel 
economy, the agency is required under 49 U.S.C. 32902(f) to consider:
    (1) Technological feasibility
    (2) Economic practicability
    (3) The effect of other Federal motor vehicle standards on fuel 
economy, and
    (4) The need of the Nation to conserve energy.
    This final decision was preceded by a proposed decision announcing 
the agency's tentative conclusion that it would not be technologically 
feasible and economically practicable for MedNet to improve the fuel 
economy of its vehicles in MY 1996 through 1998 above an average of 
17.0 mpg for MY 1996, 17.0 mpg for MY 1997, and 17.0 mpg for MY 1998 
and that the maximum feasible average fuel economy for MedNet is 17.0 
mpg in MY 1996, 17.0 mpg in MY 1997, and 17.0 mpg in MY 1998. (60 FR 
31937) No comments were received on the proposed decision.
    The agency is adopting the tentative conclusions set forth in the 
proposed decision as its final conclusions, for the reasons set forth 
in the proposed decision. Based on the conclusions that the maximum 
feasible average fuel economy level for MedNet in each of MYs 1996, 
1997, and 1998 is 17.0 mpg, that other Federal motor vehicle safety 
standards will not affect achievable fuel economy beyond the extent 
considered in the proposed decision, and that the nation's need to 
conserve energy will not be affected by granting this exemption, NHTSA 
hereby exempts MedNet from the generally applicable passenger 
automobile average fuel economy standard for the 1996, 1997, and 1998 
model years and establishes an alternative standard of 17.0 mpg for 
MedNet for each of these years.
    NHTSA has analyzed this decision and determined that neither 
Executive Order 12866 nor the Department of Transportation's regulatory 
policies and procedures apply. Under Executive Order 12866, the 
proposal would not establish a ``rule,'' which is defined in the 
Executive Order as ``an agency statement of general applicability and 
future effect.'' This exemption is not generally applicable, since it 
would apply only to MedNet, Inc., as discussed in this decision. Under 
DOT regulatory policies and procedures, this decision is not a 
``significant regulation.'' If the Executive Order and the Departmental 
policies and procedures were applicable, the agency would have 
determined that this proposed action is neither major nor significant. 
The principal impact of this exemption is that MedNet will not be 
required to pay civil penalties if it achieves a CAFE level equivalent 
to the alternative standard published in this notice. Since this 
decision sets an alternative standard at the level determined to be 
MedNet's maximum feasible level for MYs 1996 through 1998, no fuel 
would be saved by establishing a higher alternative standard. The 
impacts for the public at large are minimal.
    The agency has also considered the environmental implications of 
this decision in accordance with the National Environmental Policy Act 
and determined that this decision will not significantly affect the 
human environment. Regardless of the fuel economy of the exempted 
vehicles, they must pass the emissions standards which measure the 
amount of emissions per mile traveled. Thus, the quality of the air is 
not affected by the decision and alternative standards. Further, since 
MedNet's MY 1996, 1997, and 1998 automobiles cannot achieve better fuel 
economy than 17.0 mpg, granting this exemption will not affect the 
amount of fuel used.
    Since the Regulatory Flexibility Act may apply to a decision 
exempting a manufacturer from a generally applicable standard, I 
certify that this decision will not have a significant impact on a 
substantial number of small entities. This decision does not impose any 
burdens on MedNet. It does relieve the company from having to pay civil 
penalties for noncompliance with the generally applicable standard for 
MY's 1996, 1997, and 1998. Since the price of 1996, 1997, and 1998 
MedNet automobiles will not be affected by this decision, the 
purchasers will not be affected.

List of Subjects in 49 CFR Part 531

    Energy conservation, Gasoline, Imports, Motor Vehicles.
    In consideration of the foregoing, 49 CFR part 531 is amended to 
read as follows:

PART 531--[AMENDED]

    1. The authority citation for part 531 is revised to read as 
follows:

    Authority: 49 U.S.C. 32902; Delegation of authority at 49 CFR 
1.50.

    2. In Sec. 531.5, the introductory text of paragraph (b) is 
republished for the convenience of the reader and paragraph (b)(12) is 
added to read as follows: 

[[Page 47878]]



Sec. 531.5  Fuel economy standards.

* * * * *
    (b) The following manufacturers shall comply with the standards 
indicated below for the specified model years:
* * * * *
    (12) MedNet, Inc.

------------------------------------------------------------------------
                                                           Average fuel 
                                                              economy   
                       Model year                            standard   
                                                            (miles per  
                                                              gallon)   
------------------------------------------------------------------------
1996....................................................            17.0
1997....................................................            17.0
1998....................................................            17.0
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    Issued on: September 12, 1995.
Barry Felrice,
Associate Administrator for Safety Performance Standards.
[FR Doc. 95-22998 Filed 9-14-95; 8:45 am]
BILLING CODE: 4910-59-P