[Federal Register Volume 63, Number 65 (Monday, April 6, 1998)]
[Rules and Regulations]
[Pages 16699-16701]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8883]


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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