[Federal Register Volume 65, Number 190 (Friday, September 29, 2000)]
[Rules and Regulations]
[Pages 58483-58484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-23906]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 531

[Docket No. NHTSA-99-6676; Notice 2]


Passenger Automobile Average Fuel Economy Standards; Final 
Decision to Grant Exemption

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

ACTION: Final rule.

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SUMMARY: This final decision responds to a petition filed by DeTomaso 
Automobiles, Ltd. (DeTomaso) requesting that it be exempted from the 
generally applicable average fuel economy standard of 27.5 miles per 
gallon (mpg) for model years (MYs) 2000 and 2001 and that lower 
alternative standards be established. In this document, NHTSA 
establishes an alternative standard for DeTomaso (now operating as the 
Qvale Automotive Group (QAG)) of 22.0 mpg for MYs 2000 and 2001.

DATES: Effective date: November 13, 2000. This exemption and the 
alternative standards apply to QAG for MYs 2000 and 2001.
    Petitions for reconsideration: Petitions for reconsideration must 
be received no later than November 13, 2000.

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: Mr. Sanjay Patel, Office of Planning 
and Consumer Programs, NHTSA, 400 Seventh Street, SW., Washington, DC 
20590. Mr. Patel's telephone number is: (202) 366-0307.
    For legal issues, you may contact Otto Matheke, Office of the Chief 
Counsel, NHTSA, Room 5219, 4000 Seventh Street, SW., Washington, DC 
20590. Mr. Matheke's telephone number is: 202-366-5263.

SUPPLEMENTARY INFORMATION:

Statutory Background

    Pursuant to 49 U.S.C. section 32902(d), 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 United States to conserve energy.
    The statute permits NHTSA to establish alternative average fuel 
economy standards applicable to exempted low volume manufacturers in 
one of three ways: (1) A separate standard for each exempted 
manufacturer; (2) a separate average fuel economy standard applicable 
to each class of exempted automobiles (classes would be based on 
design, size, price, or other factors); or (3) a single standard for 
all exempted manufacturers.

Proposed Decision and Public Comment

    This final decision was preceded by a proposal announcing the 
agency's tentative conclusion that DeTomaso should be exempted from the 
generally applicable MYs 2000 and 2001 passenger automobile average 
fuel economy standard of 27.5 mpg, and that alternative standards of 
22.0 mpg for MY 2000 and MY 2001 be established for DeTomaso. (63 FR 
73476; December 30, 1999). The agency received one comment from a Mr. 
Lance Tunick, a consultant acting on behalf of DeTomaso, supporting the 
establishment of an alternative standard for DeTomaso for MYs 2000 and 
2001 and informing the agency that DeTomaso, which had submitted its 
petition as DeTomaso Automobiles Ltd.

[[Page 58484]]

had changed its name to the Qvale Automotive Group Srl (QAG). 
Accordingly, Mr. Tunick, acting on behalf of DeTomaso/QAG requested 
that the agency, in issuing its final decision, grant the exemption to 
QAG rather than DeTomaso. Accordingly, all references to DeTomaso in 
the proposed decision have been changed in this final decision to 
recognize that the final decision applies to QAG.

NHTSA Final Determination

    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 these conclusions, the maximum 
feasible average fuel economy level for QAG is 22.0 mpg for MY 2000 and 
22.0 mpg for MY 2001. NHTSA has determined 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 QAG from the generally applicable passenger 
automobile average fuel economy standard for the 2000 and 2001 model 
years and establishes an alternative standard of 22.0 for MYs 2000 and 
2001 for QAG.

Regulatory Impact Analyses

    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 
decision would not establish a ``rule,'' which is defined in the 
Executive Order as ``an agency statement of general applicability and 
future effect.'' The decision is not generally applicable, since it 
would apply only to the Qvale Automotive Group Srl., as discussed in 
this notice. Under DOT regulatory policies and procedures, the 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 decision is neither major nor significant. 
The principal impact of this decision is that the exempted company will 
not be required to pay civil penalties if its maximum feasible average 
fuel economy were achieved, and purchasers of those vehicles would not 
have to bear the burden of those civil penalties in the form of higher 
prices. Since this decision sets an alternative standard at the level 
determined to be the maximum feasible levels for QAG for MYs 2000 and 
2001, no fuel would be saved by establishing a higher alternative 
standard. NHTSA finds in the Section on ``The Need of the United States 
to Conserve Energy'' that because of the small size of the QAG fleet, 
that incremental usage of gasoline by QAG's customers would not affect 
the United States's need to conserve gasoline. There are not any 
impacts for the public at large.
    The agency has also considered the environmental implications of 
this decision in accordance with the Environmental Policy Act and 
determined that it does 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 
alternative standards. Further, since the exempted passenger 
automobiles cannot achieve better fuel economy than is proposed herein, 
the decision does 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 economic impact 
on a substantial number of small entities. This decision does not 
impose any burdens on QAG. It relieves the company from having to pay 
civil penalties for noncompliance with the generally applicable 
standard for MYs 2000 and 2001. Since the price of 2000 and 2001 QAG 
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)(14) is 
added 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:
* * * * *

                     (14) Qvale Automotive Group Srl
------------------------------------------------------------------------
                                                               Average
                                                                 fuel
                                                               economy
                         Model year                            standard
                                                              (miles per
                                                               gallon)
------------------------------------------------------------------------
2000.......................................................         22.0
2001.......................................................         22.0
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    Issued on: September 12, 2000.
Stephen R. Kratzke,
Associate Administrator for Safety Performance Standards.
[FR Doc. 00-23906 Filed 9-28-00; 8:45 am]
BILLING CODE 4910-59-P