[Federal Register Volume 61, Number 25 (Tuesday, February 6, 1996)]
[Rules and Regulations]
[Pages 4369-4370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2331]



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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 531

[Docket No. 95-51; Notice 2]


Passenger Automobile Average Fuel Economy Standards; Final 
Decision

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

ACTION: Final rule; granting an exemption from average fuel economy 
standard and establishing an alternative standard.

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SUMMARY: This decision is issued in response to a petition filed by 
Rolls-Royce Motors, Ltd. (Rolls-Royce) requesting that it be exempted 
from the generally applicable average fuel economy standard of 27.5 
miles per gallon (mpg) for its model year (MY) 1997 passenger 
automobiles, and that lower alternative standards be established for 
it. This decision exempts Rolls-Royce and establishes an alternative 
standard of 15.1 mpg for MY 1997 for Rolls-Royce.

DATES: Effective date: March 22, 1996. This exemption and the 
alternative standards apply to Rolls-Royce for MY 1997.
    Petitions for reconsideration: Petitions for reconsideration must 
be received no later than March 22, 1996.

ADDRESSES: Petitions for reconsideration of this rule should refer to 
the docket number and notice number cited in the heading of this notice 
and must be submitted to: Administrator, National Highway Traffic 
Safety Administration, 400 Seventh Street, SW, Washington DC 20590.

FOR FURTHER INFORMATION CONTACT: Ms. Henrietta Spinner, Office of 
Market Incentives, NHTSA, 400 Seventh Street, SW, Washington DC 20590. 
Ms. Spinner's telephone number is: (202) 366-0846.

SUPPLEMENTARY INFORMATION:

Background

    NHTSA is exempting Rolls-Royce from the generally applicable 
average fuel economy standard for 1997 model year (MY) passenger 
automobiles and establishing alternative standards applicable to Rolls-
Royce for each of these model years. This exemption is issued under the 
authority of section 32902(d) of Chapter 329 of Title 49 of the United 
States Code (formerly section 502(c) of the Motor Vehicle Information 
and Cost Savings Act)(49 U.S.C. 32902(d)). Section 32902(d) provides 
that NHTSA may exempt a low volume manufacturer of passenger 
automobiles from the generally applicable average fuel economy 
standards for passenger automobiles if the agency concludes that those 
standards are more stringent than the maximum feasible average fuel 
economy for that manufacturer and establishes an alternative standard 
for that manufacturer at its maximum feasible level. Under the Act, 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 maximum 

[[Page 4370]]
feasible average fuel economy, the agency is required by section 
32902(f) of the Act 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.

Proposed Decision and Public Comment

    This final decision was preceded by a proposal announcing the 
agency's tentative conclusion that Rolls-Royce should be exempted from 
the generally applicable MY 1997 passenger automobile average fuel 
economy standard of 27.5 mpg, and that an alternative standard of 15.1 
mpg be established for Rolls-Royce for that model year (60 FR 37861; 
July 24, 1995). The agency did not receive any comments in response to 
the proposed decision.

NHTSA Final Determination

    Therefore, 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 Rolls-Royce in 
MY 1997 is 15.1 mpg, that other Federal motor vehicle standards will 
not affect achievable fuel economy beyond the extent considered in the 
proposed decision, and that the national effort to conserve energy will 
not be affected by granting this exemption, NHTSA hereby exempts Rolls-
Royce from the generally applicable passenger automobile average fuel 
economy standard for the 1997 model year and establishes an alternative 
standard of 15.1 mpg for Rolls-Royce for that year.

Regulatory Impacts

    NHTSA has analyzed this decision, and determined that neither 
Executive Order 12866 nor the Department of Transportation's regulatory 
policies and procedures apply, because this decision is not a ``rule,'' 
which term is defined as ``an agency statement of general applicability 
and future effect.'' This exemption is not generally applicable, since 
it applies only to Rolls-Royce. If the Departmental policies and 
procedures were applicable, the agency would have determined that this 
action is not ``significant.'' The principal impact of this exemption 
is that Rolls-Royce will not be required to pay civil penalties if it 
achieves a CAFE level equivalent to the alternative standard 
established in this notice. Since this decision sets an alternative 
standard at the level determined to be Rolls-Royce's maximum feasible 
average fuel economy, no fuel would be saved by establishing a higher 
alternative standard. The impacts for the public at large will be 
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 a vehicle, it must 
pass the emissions standards which limit the amount of emissions per 
mile traveled. Thus, the quality of the air is not affected by this 
exemption and alternative standard. Further, since Rolls-Royce's MY 
1997 automobiles cannot achieve better fuel economy than 15.1 mpg, 
granting this exemption will not affect the amount of gasoline 
consumed.
    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 economic impact 
on a substantial number of small entities. This decision does not 
impose any burdens on Rolls-Royce. It relieves the company from having 
to pay civil penalties for noncompliance with the generally applicable 
standard for MY 1997. Since the price of 1997 Rolls-Royce 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 continues to read as 
follows:

    Authority: 49 U.S.C. 32902, delegation of authority at 49 CFR 
1.50.

    2. In 49 CFR 531.5, the introductory text of paragraph (b) is 
republished and paragraph (b)(2) is revised to read as follows:


Sec. 531.5  Fuel economy standards.

* * * * *
    (b) The following manufacturers shall comply with the standards 
indicated below for the specified model years:
* * * * *
    (2) Rolls-Royce Motors, Inc.

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                                                   Average fuel economy 
                   Model year                      standard (miles per  
                                                         gallon)        
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1978...........................................                     10.7
1979...........................................                     10.8
1980...........................................                     11.1
1981...........................................                     10.7
1982...........................................                     10.6
1983...........................................                      9.9
1984...........................................                     10.0
1985...........................................                     10.0
1986...........................................                     11.0
1987...........................................                     11.2
1988...........................................                     11.2
1989...........................................                     11.2
1990...........................................                     12.7
1991...........................................                     12.7
1992...........................................                     13.8
1993...........................................                     13.8
1994...........................................                     13.8
1995...........................................                     14.6
1996...........................................                     14.6
1997...........................................                     15.1
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* * * * *
    Issued on: January 30, 1996.
Barry Felrice,
Associate Administrator for Safety Performance Standards.
[FR Doc. 96-2331 Filed 2-5-96; 8:45 am]
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