[Federal Register Volume 62, Number 64 (Thursday, April 3, 1997)]
[Rules and Regulations]
[Pages 15859-15860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8519]



[[Page 15859]]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 533

[Docket No. 97-15; Notice 1]
RIN 2127-AG64


Light Truck Average Fuel Economy Standard, Model Year 1999

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) 1999. The issuance of 
the standard is required by statute. Pursuant to section 323 of the 
fiscal year (FY) 1997 DOT Appropriations Act, the light truck standard 
for MY 1999 is 20.7 mpg.

DATES: The amendment is effective May 5, 1997. The standard applies to 
the 1999 model year. Petitions for reconsideration must be submitted 
within 45 days of publication.

ADDRESSES: Petitions for reconsideration should be submitted to: 
Administrator, 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 1998. See 49 CFR 533.5(a). 
The standard for MY 1998 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 final rule limited to MY 1998, which 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 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.

    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 1999 standard is approximately April 
1, 1997, a date falling within FY 1997. Since the issuance of a 
standard requires the expenditure of funds, the agency's ability to 
promulgate a standard for MY 1999 at a level other than the level 
specified for MY 1998 is prohibited by the terms of section 323 of the 
FY 1997 Appropriations Act.
    The language contained in Section 323 of the FY 1997 Appropriations 
Act is identical to that found in Section 330 of the FY 1996 
Appropriations Act. The adoption of identical language in the FY 1997 
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 1997 Act further 
supports this view. The language contained in Section 323 remained 
unmodified as part of H.R. 3675, which was eventually enacted as the FY 
1997 Act. Section 323 was reported by the House Committee on 
Appropriations as part of H.R. 3675. The Committee print of the House 
Report to accompany H.R. 3675 stated that the section precluded NHTSA 
from prescribing CAFE standards that differ from those set for the 1998 
model year.
    As explained above, section 323 precludes NHTSA from preparing, 
proposing, or issuing any CAFE standard that is not identical to those 
previously established for MY 1998. In NHTSA's view, the express 
directive contained in the FY 1997 Appropriations Act precludes the 
agency from exercising any discretion in setting CAFE standards for the 
1999 model year. The agency has 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 1999 light truck 
standard. As NHTSA cannot expend any funds to set the 1999 standard at 
any level other than the MY 1998 standard, providing an opportunity for 
notice and comment would be superfluous. Accordingly, NHTSA is setting 
the MY 1999 light truck CAFE standard at the MY 1998 level of 20.7 mpg.

II. Impact Analyses

A. Economic Impacts

    All past fuel economy rules have had economic impacts in excess of 
$100 million per year. 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.

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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. As Congress has eliminated the agency's 
discretion by precluding any action other than the one taken in this 
notice, such an evaluation is unnecessary. Past evaluations indicate, 
however, that few, if any, light truck manufacturers would have been 
classified as a ``small business'' under the Regulatory Flexibility 
Act.

D. Impact of Federalism

    This action has not been analyzed in accordance with the principles 
and criteria contained in Executive Order 12612. The preparation of a 
Federalism Assessment is not required where Congress has precluded any 
action other than the one published in this notice. As a historical 
matter, prior light truck standards have not had sufficient Federalism 
implications to warrant the preparation of a Federalism Assessment.

E. 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 1999 at 20.7 mpg.

List of Subjects in 49 CFR Part 533

    Energy conservation, Motor vehicles.

PART 533--[AMENDED]

    In consideration of the foregoing, 49 CFR part 533 is amended as 
follows:
    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.

* * * * *

                                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
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    Issued on: March 31, 1997.
Philip R. Recht,
Deputy Administrator.
[FR Doc. 97-8519 Filed 3-31-97; 1:44 pm]
BILLING CODE 4910-59-P