[Federal Register Volume 68, Number 116 (Tuesday, June 17, 2003)]
[Proposed Rules]
[Pages 35830-35832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14570]



[[Page 35830]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 86

[FRL-7492-7]
RIN 2060-AJ77


Control of Air Pollution From New Motor Vehicles and New Motor 
Vehicle Engines; Modification of Federal On-Board Diagnostic 
Regulations for: Light-Duty Vehicles, Light-Duty Trucks, Medium-Duty 
Passenger Vehicles, Complete Heavy-Duty Vehicles and Engines Intended 
for Use in Heavy-Duty Vehicles Weighing 14,000 Pounds GVWR or Less; 
Extension of Acceptance of California OBD II Requirements

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: EPA is proposing to amend and revise certain requirements 
associated with the federal on-board diagnostic (OBD) system 
regulations. EPA previously promulgated an OBD rulemaking on December 
22, 1998 (63 FR 70681), which indefinitely extended the provision 
allowing compliance with California OBD II requirements to satisfy 
federal OBD requirements. The California Air Resources Board (CARB) has 
recently revised their OBD II requirements. Accordingly, today's action 
proposes appropriate revisions to federal OBD regulations including: 
updating the reference to the allowed version of the California OBD II 
regulations to the most recently adopted version such that compliance 
with the recently revised California OBD II requirements will satisfy 
certain federal OBD requirements; allowing compliance with California 
OBD II catalyst monitoring requirements; updating the incorporation by 
reference of several recommended practices developed by the Society of 
Automotive Engineers (SAE) and the International Organization for 
Standardization (ISO) to incorporate recently published versions, while 
also incorporating by reference a new standardized protocol developed 
by the International Organization for Standardization (ISO) and 
establishing a future date by which this protocol will be the only 
acceptable protocol; and issuing a technical amendment to the optional 
heavy-duty (HD) vehicle weighing 14,000 pounds GVWR or less chassis 
certification requirements. OBD systems in general provide substantial 
benefits to the environment by diagnosing and alerting operators, 
vehicle inspection and maintenance (I/M) personnel, and service 
providers to deterioration or malfunction of emission control related 
systems.

DATES: Written comments must be received by July 17, 2003, and requests 
for a public hearing must be received by July 2, 2003. If EPA receives 
a request for a public hearing then the hearing will take place on July 
17, 2003, and the written comment period will then close on September 
2, 2003. By July 14, 2003, any person who plans to attend the hearing 
should call Arvon Mitcham at (734) 214-4522 to learn if the hearing 
will be held. If EPA receives a request for a public hearing, EPA will 
hold the public hearing in the first floor conference room at 501 3rd 
Street, NW., Washington, DC.

ADDRESSES: Comments: All comments and materials relevant to today's 
action should be submitted to Public Docket No. A-2002-20 at EPA's Air 
and Radiation Docket and Information Center (Air Docket) at the 
following address: EPA Docket Center (EPA/DC), Public Reading Room, 
Room B102, EPA West Building, 1301 Constitution Avenue, NW., 
Washington, DC 20460. Dockets may be inspected from 8:30 a.m. to 4:30 
p.m., Monday through Friday, except on government holidays. You can 
reach the Air Docket by telephone at (202) 566-1742 and by facsimile at 
(202) 566-1741. You may be charged a reasonable fee for photocopying 
docket materials, as provided in 40 CFR part 2.

FOR FURTHER INFORMATION CONTACT: Arvon Mitcham, U.S. EPA, National 
Vehicle and Fuels Emission Laboratory, Certification and Compliance 
Division, 2000 Traverwood, Ann Arbor MI 48105; telephone (734) 214-
4522, e-mail [email protected].

SUPPLEMENTARY INFORMATION: This document concerns proposed amendments 
and revisions to EPA's OBD regulations. In the ``Rules and 
Regulations'' section of today's Federal Register, we are approving 
these amendments and revisions as a direct final rule without a prior 
proposal because we view this as a noncontroversial action and 
anticipate no adverse comment. We have explained our reasons for this 
approval in the preamble to the direct final rule. This proposal 
incorporates by reference all of the reasoning, explanation and 
regulatory text from the direct final rule. For further information, 
including the regulatory text for this proposal, please refer to the 
direct final rule. If we receive no adverse comment, we will not take 
further action on this proposed rule. If we receive adverse comment on 
one or more distinct amendments, paragraphs, or sections of this 
rulemaking, we will publish a timely withdrawal in the Federal Register 
indicating which provisions are being withdrawn due to adverse comment. 
We may address all adverse comments in a subsequent final rule based on 
this proposed rule. We will not institute a second comment period on 
this action. Any parties interested in commenting must do so at this 
time. Any distinct amendment, paragraph, or section of today's 
rulemaking for which we do not receive adverse comment will become 
effective on August 18, 2003, notwithstanding any adverse comment on 
any other distinct amendment, paragraph, or section of today's rule.

Regulated Entities

    Entities potentially regulated by this action are those which 
manufacture new motor vehicles and engines.

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                                                                                                       SIC codes
               Category                 Examples of regulated entities          NAICS codes a              b
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Industry..............................  New motor vehicle and engine    33611, 336112, 336120........     3711
                                         manufacturers.
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a North American Industry Classification System (NAICS) Code.
b Standard Industrial Classification (SIC) System Code.

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities EPA is now aware could potentially 
be regulated by this action. Other types of entities not listed in the 
table could also be regulated. To determine whether your product is 
regulated by this action, you should carefully examine the 
applicability criteria in Sec.  86.005-17 and Sec.  86.1806-05 of title 
40 of the Code of Federal Regulations. If you have questions regarding 
the applicability of this action to a particular product, consult the 
person listed in the preceding FOR FURTHER INFORMATION CONTACT section.

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Access to Rulemaking Documents Through the Internet

    Today's action is available electronically on the day of 
publication from EPA's Federal Register Internet Web site listed below. 
Electronic copies of this preamble, regulatory language, and other 
documents associated with today's proposal are available from the EPA 
Office of Transportation and Air Quality Web site listed below shortly 
after the rule is signed by the Administrator. This service is free of 
charge, except any cost that you already incur for connecting to the 
Internet.
    EPA Federal Register Web site: http://www.epa.gov/docs/fedrgstr/epa-air/. (Either select a desired date or use the Search feature.)
    On-board diagnostics home page: http://www.epa.gov/otaq/obd.htm.
    Please note that due to differences between the software used to 
develop the document and the software into which the document may be 
downloaded, changes in format, page length, etc., may occur.

Statutory and Executive Order Reviews:

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the 
Agency is required to determine whether this regulatory action would be 
``significant'' and therefore subject to review by the Office of 
Management and Budget (OMB) and the requirements of the Executive 
Order. The order defines a ``significant regulatory action'' as any 
regulatory action that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or state, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or,
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Pursuant to the terms of Executive Order 12866, we have determined 
that this proposed rule is not a ``significant regulatory action.''

B. Paperwork Reduction Act

    Today's action does not impose any new information collection 
burden. The modifications noted above do not change the information 
collection requirements submitted to and approved by OMB in association 
with the OBD final rulemakings (58 FR 9468, February 19, 1993; and 59 
FR 38372, July 28, 1994).

C. Regulatory Flexibility Act

    The RFA generally requires an agency to prepare an initial 
regulatory flexibility analysis of any proposed rule subject to notice 
and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute unless the agency certifies that the rule will 
not have a significant economic impact on a substantial number of small 
entities. Small entities include small businesses, small organizations, 
and small governmental jurisdictions.
    For purposes of assessing the impacts of today's direct final rule 
on small entities, small entity is defined as: (1) Those businesses 
meeting the definition provided by the Small Business Administration; 
(2) a small governmental jurisdiction that is a government of a city, 
county, town, school district or special district with a population of 
less than 50,000; and (3) a small organization that is any not-for-
profit enterprise which is independently owned and operated and is not 
dominant in its field.
    After considering the economic impacts of today's direct final rule 
on small entities, EPA determines that this action will not have a 
significant economic impact on a substantial number of small entities. 
This rulemaking will provide regulatory relief to both large and small 
volume automobile and heavy-duty vehicle and engine manufacturers by 
maintaining consistency with California OBDII requirements. This 
rulemaking will not have a significant impact on businesses that 
manufacture, rebuild, distribute, or sell automotive parts, nor those 
involved in automotive service and repair, as the revisions affect only 
requirements on automobile and heavy-duty truck and engine 
manufacturers. See United Distribution Companies v. FERC, 88 F. 3rd 
1005, 1170 (D.C. Cir. 1996). Most manufacturers have thus far chosen to 
reduce their costs by producing vehicle OBD systems to California 
specifications, thereby avoiding the necessity of developing 
significantly different OBD calibrations meeting the existing federal 
specifications for the non-California markets. Today's continuation of 
the optional compliance option to California's OBDII requirements 
continues this cost reduction.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments, and the private sector. Under section 202 of the UMRA, we 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more for 
any single year. Before promulgating a rule for which a written 
statement is needed, section 205 of the UMRA generally requires us to 
identify and consider a reasonable number of regulatory alternatives 
and adopt the least costly, most cost-effective, or least burdensome 
alternative that achieves the objectives of the rule. The provisions of 
section 205 do not apply when they are inconsistent with applicable 
law. Moreover, section 205 allows us to adopt an alternative that is 
not the least costly, most cost-effective, or least burdensome 
alternative if we provide an explanation in the final rule of why such 
an alternative was adopted.
    Before we establish any regulatory requirement that may 
significantly or uniquely affect small governments, including tribal 
governments, we must develop a small government plan pursuant to 
section 203 of the UMRA. Such a plan must provide for notifying 
potentially affected small governments, and enabling officials of 
affected small governments to have meaningful and timely input in the 
development of our regulatory proposals with significant federal 
intergovernmental mandates. The plan must also provide for informing, 
educating, and advising small governments on compliance with the 
regulatory requirements.
    This proposed rule contains no Federal mandates for State, local, 
or tribal governments as defined by the provisions of title II of the 
UMRA. The proposed rule imposes no enforceable duties on any of these 
governmental entities. Nothing in the proposal will significantly or 
uniquely affect small governments.
    We have determined that this proposed rule does not contain a 
Federal mandate that may result in estimated expenditures of more than 
$100 million to the private sector in any single year.

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E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires us to develop an accountable process to ensure 
``meaningful and timely input by state and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government.''
    Under section 6 of Executive Order 13132, we may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the Federal government provides the funds necessary to pay the direct 
compliance costs incurred by State and local governments, or we consult 
with State and local officials early in the process of developing the 
proposed regulation. We also may not issue a regulation that has 
federalism implications and that preempts State law, unless the Agency 
consults with State and local officials early in the process of 
developing the proposed regulation.
    Section 4 of the Executive Order contains additional requirements 
for rules that preempt State or local law, even if those rules do not 
have federalism implications (i.e., the rules will not have substantial 
direct effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government). Those 
requirements include providing all affected State and local officials 
notice and an opportunity for appropriate participation in the 
development of the regulation. If the preemption is not based on 
express or implied statutory authority, we also must consult, to the 
extent practicable, with appropriate State and local officials 
regarding the conflict between State law and federally protected 
interests within the agency's area of regulatory responsibility.
    This proposed rule does not have federalism implications. It will 
not have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. This proposed rule updates 
provisions of an earlier rule that adopted national standards relating 
to OBD systems and the ability of manufacturers to demonstrate Federal 
compliance based on demonstration of compliance with California OBD II 
regulations. The requirements of the rule will be enforced by the 
Federal government at the national level. Thus, the requirements of 
section 6 of the Executive Order do not apply to this rule.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This proposed rule does not 
have tribal implications, as specified in Executive Order 13175. 
Today's rule would not uniquely affect the communities of American 
Indian tribal governments since the motor vehicle fuel and other 
related requirements for private businesses in today's rule have 
national applicability. Furthermore, today's proposed rule does not 
impose any direct compliance costs on these communities and no 
circumstances specific to such communities exist that will cause an 
impact on these communities beyond those discussed in the other 
sections of today's document.
    This proposed rule does not significantly or uniquely affect the 
communities of Indian tribal governments. As noted above, this rule 
will be implemented at the federal level and imposes compliance 
obligations and options on private industry. Thus, Executive Order 
13175 does not apply to this proposed rule.

G. Executive Order 13045: Protection of Children From Environmental 
Health & Safety Risks

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
to any rule that (1) is determined to be ``economically significant'' 
as defined under Executive Order 12866, and (2) concerns an 
environmental health or safety risk that we have reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, section 5-501 of the Executive Order directs us to 
evaluate the environmental health or safety effects of the planned rule 
on children, and explain why the planned regulation is preferable to 
other potentially effective and reasonably feasible alternatives 
considered by us.
    This proposed rule is not subject to the Executive Order because it 
is not an economically significant regulatory action as defined by 
Executive Order 12866. Furthermore, this proposed rule does not concern 
an environmental health or safety risk that we have reason to believe 
may have a disproportionate effect on children.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This rule is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355 (May 22, 2001)) because it is not a 
significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), section 12(d) of Public Law 104-113, directs us to 
use voluntary consensus standards in our regulatory activities unless 
it would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., materials 
specifications, test methods, sampling procedures, and business 
practices) developed or adopted by voluntary consensus standards 
bodies. The NTTAA directs us to provide Congress, through OMB, 
explanations when we decide not to use available and applicable 
voluntary consensus standards.
    This proposed rule references technical standards adopted by us 
through previous rulemakings. No new technical standards are 
established in today's proposed rule.

Statutory and Legal Authority

    Statutory authority for today's proposed rule comes from the Clean 
Air Act, 42 U.S.C. 7401 et seq., in particular, section 202(m) of the 
Act (42 U.S.C. 7521(m)).

List of Subjects in 40 CFR Part 86

    Environmental protection, Incorporation by reference, 
Administrative practice and procedure, Motor vehicle pollution, On-
board diagnostics.

    Dated: April 25, 2003.
Christine Todd Whitman,
Administrator.
[FR Doc. 03-14570 Filed 6-16-03; 8:45 am]
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