Air Pollution Control: Amendments To Regulations Governing the Importation of Nonconforming Vehicles

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 85 and 600

[FRL-4854-7]

Air Pollution Control: Amendments To Regulations Governing the

Importation of Nonconforming Vehicles

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: EPA is proposing to amend 40 CFR part 85, subpart P to permit

the importation of certain motor vehicles and motor vehicle engines

from Canada without obtaining a certificate of conformity from EPA.

Such vehicles will be allowed entry into the United States provided a

commercial importer proves they are identical, in all material

respects, to a vehicle certified for sale in the United States. EPA is

proposing this change because it believes that many vehicles produced

by manufacturers for sale in Canada are identical to their United

States certified counterparts.

In addition to the changes in subpart P which affect commercial

importers of vehicles produced for the Canadian market, this proposal

also addresses other issues relating to the importation of

nonconforming vehicles. EPA is proposing to: Formalize a longstanding

EPA policy regarding the importation of individually owned vehicles

that are proven to be identical, in all material respects, to a vehicle

certified for sale in the United States, establish new emission

standards applicable to imported nonconforming vehicles, clarify the

regulatory language at 40 CFR part 85, subparts P and R, which concern

the exclusion or exemption of motor vehicles and motor vehicle engines

from meeting Federal emission requirements, and provide several minor

clarifications to the existing regulations.

EPA is proposing that implementation of these regulations take

place 30 days after publication of the final rule.

This preamble is abbreviated from a larger supplementary document

which expands upon the issues discussed here and which may be found in

the Docket No. A-89-20 described below.

DATES: If requested, EPA will conduct a public hearing on this Notice

of Proposed Rulemaking on April 25, 1994. The hearing will convene at

10:00 a.m. and will adjourn at such time as necessary to complete the

testimony. Written comments on this notice will be accepted for 30 days

following the hearing, until May 23, 1994. Any party desiring to

present oral testimony for the record at the public hearing, instead

of, or in addition to, written comments, must notify EPA by 5:00 p.m.

EST on April 8, 1994. If no party informs EPA that it wishes to

testify, no hearing will be held and EPA will address only written

submissions.

ADDRESSES: The hearing, if requested, will take place at the EPA

Education Center, Waterside Mall, 401 M Street, SW., Washington, DC

20460. Any person wishing to attend should call the EPA contact person

listed below to determine if the hearing will be held.

Materials relevant to this rulemaking are contained in the EPA Air

Docket LE-131, Attention: Docket No. A-89-20, located at the Air Docket

Section, U.S. Environmental Protection Agency, Room M-1500, 401 M

Street, SW., Washington, DC 20460 telephone (202) 260-7548. The docket

may be reviewed on weekdays between the hours of 8:30 a.m. to 12 noon

and from 1:30 to 3:30 p.m. As provided in 40 CFR part 2, a reasonable

fee may be charged for copying services.

FOR FURTHER INFORMATION CONTACT: This notice of proposed rulemaking

provides a brief description of the changes that EPA is proposing. For

a more complete explanation, including proposed regulatory language,

refer to the EPA Air Docket at A-89-20. Any questions or comments

should be directed to: Leonard D. Lazarus, Investigation/Imports

Section, Manufacturers Operations Division (6405J), U.S. Environmental

Protection Agency, 401 M Street, SW., Washington, DC 20460. Telephone

(202) 233-9250.

SUPPLEMENTARY INFORMATION:

I. Statutory Authority

Today's proposal discusses several regulatory programs administered

by EPA which provide for the importation of vehicles into the United

States. Section 203 of the Clean Air Act (Act), 42 U.S.C. 7522,

provides the statutory authority for regulations relating to the

importation of new motor vehicles\1\ and motor vehicle engines which

are not covered by a certificate of conformity. Sections 203(a)(1) and

203(b)(2) provide the statutory authority for the regulations in

today's proposal. Generally, section 203(a)(1) prohibits the

importation of vehicles not covered by a certificate of conformity by

any person except as provided by regulation of the Administrator. The

exception for regulations of the Administrator in section 203(a)(1)

refers to the grant of authority in section 203(b)(2), which states

that a vehicle not covered by a certificate of conformity and offered

for importation shall be refused admission into the United States

unless the Administrator, by regulation, provides for deferring final

determination regarding admission of the vehicle offered for

importation upon such terms and conditions as may appear appropriate to

insure that any imported vehicle will be brought into conformity with

applicable standards, requirements and limitations.

---------------------------------------------------------------------------

\1\The word ``vehicle'' hereinafter refers to a motor vehicle

and motor vehicle engine.

---------------------------------------------------------------------------

To implement section 203(b)(2), EPA has established procedures

regarding the importation of vehicles not covered by a certificate of

conformity. EPA first promulgated regulations on November 15, 1972 (37

FR 24314) which allowed individuals to import vehicles and perform

modifications subsequent to importation. This regulatory structure was

replaced on July 1, 1988 with a new regulatory program promulgated on

September 25, 1987. This program established the independent commercial

importer (ICI) as the entity responsible for the importation of

nonconforming vehicles. The primary purpose of this NPRM is to propose

additional provisions regarding the importation of vehicles intended

for sale in Canada but identical to U.S. certified configurations. See

section II for a discussion of the importation of Canadian vehicles.

This proposal also includes amendments to the procedures governing the

importation of nonconforming vehicles generally.

In addition to the regulations administering the importation of

vehicles pursuant to section 203(b)(2), EPA is proposing amendments to

regulations which implement section 203(b)(1) of the Act. Section

203(b)(1) states, ``[t]he Administrator may exempt any new motor

vehicle or new motor vehicle engine * * * upon such terms and

conditions as he may find necessary for the purpose of research,

investigations, studies, demonstrations, or training or for reasons of

national security.'' To implement this section of the Act, regulations

were initially promulgated on September 10, 1974 (39 FR 32609),

codified at 40 CFR part 85, subpart R, to provide for a program

allowing manufacturers to apply for and receive exemptions for vehicles

that were used for the purposes specified in section 203(b)(1) of the

Act. These regulations were amended on March 3, 1980 (45 FR 13733) to

extend the availability of exemptions under section 203(b)(1) to

individuals and other non-manufacturers. On July 14, 1982 (47 FR 30482)

these regulations were amended to reduce the information required in a

manufacturer's exemption application. The regulations were also amended

on August 27, 1985 (50 FR 34797) to require that a claim of

confidentiality accompany information submitted to EPA that is covered

by such a claim.

The proposed amendments to the regulations, codified at 40 CFR

85.1703, implement section 203(b)(1) of the Act to address the

definition of a motor vehicle; to clarify the definition of a

precertification vehicle in contrast to a vehicle subject to a testing

exemption; and, to revise the regulations regarding obtaining a display

exemption pursuant to 40 CFR 85.1511(b)(4) and 85.1707. These proposed

changes are discussed in section V, Proposed Amendments to subpart R.

II. Background for Canadian Importations

The framework of EPA's current Imports regulations establishes,

with some limited exceptions, that only independent commercial

importers (ICIs) holding a valid certificate of conformity may import

nonconforming vehicles into the United States. An ICI bears the

responsibility not only for performing all necessary modifications and

testing, but also for ensuring that the vehicle it imports complies

with United States emission requirements for the vehicle's useful life.

In effect, this imposes on the ICI the same emission requirements the

Act imposed on original equipment manufacturers (OEMs).

On November 24, 1987, potential importers of Canadian vehicles for

resale in the U.S. petitioned EPA\2\ to reconsider the regulations as

they apply to the commercial importation of vehicle models originally

designed and built for sale in Canada which are identical to vehicles

certified by EPA for sale in the United States. The petitioners

maintained that, although these vehicles may not be labeled by the OEM

as meeting United States emission requirements, the vehicles do not

have to be mechanically modified to comply with such requirements and

do not present air quality concerns similar to those presented by other

imported nonconforming vehicles.

---------------------------------------------------------------------------

\2\A copy of the petition may be found in the docket at A-89-20.

---------------------------------------------------------------------------

The evidence available to EPA suggests that an overwhelming

majority of the vehicle models manufactured for sale in Canada are not

configurations unique to the Canadian market, but are mechanically

identical to their corresponding United States version regarding

emissions compliance, except for EPA's labeling and warranty

requirements. Given this situation, EPA believes that it is not

necessary to require individuals and commercial importers to obtain

separate certificates of conformity from EPA for those vehicles that

are mechanically identical to their corresponding United States version

regarding emissions compliance.

On June 29, 1988, EPA granted the petition for reconsideration (the

document granting the petition may be found in the docket at A-89-20),

and agreed to commence this rulemaking to address the unique issues

surrounding Canadian vehicles.

Today's action proposes formal revisions to EPA's regulations for

importing vehicles from Canada. It also clarifies or changes certain

other provisions contained in the existing regulations.

A. EPA's Proposal

EPA's proposal would allow only commercial importers with

designated Canadian importer status approved by EPA to import vehicles

from Canada both for which the title has previously been transferred to

an ultimate purchaser and for which the title has not yet been

transferred to an ultimate purchaser, for the purpose of resale. The

designated Canadian importers would be permitted to import only those

vehicles which were previously proven to be identical, in all material

respects, to their United States certified counterparts. In addition to

making the showing of identical in all material respects, a designated

Canadian importer must agree to: (1) Label each vehicle for fuel

economy and emissions compliance purposes; (2) fulfill emission

warranty and recall obligations, and notify owners of recalls and

available warranty coverage; (3) maintain adequate records; (4) pay any

applicable Gas Guzzler Taxes, and Corporate Average Fuel Economy

penalties (49 CFR 531, 533); (5) submit applications for final

admission to EPA; (6) hold vehicles for a period of five working days

(or less if approved by EPA on a case-by-case basis) for EPA inspection

before transfer to an ultimate purchaser or dealer; and (7) submit to

inspections conducted by EPA enforcement officers.

B. Importations by Individuals

Today's proposal also addresses the importation of vehicles by

individual owners. Often an individual moving to the United States from

Canada wishes to import his/her vehicle for personal use. In many of

these cases, the vehicle is identical, except for labeling, to its

United States certified counterpart. The few vehicles which are not

identical to their United States certified counterparts, typically

require only minor modifications to make them identical. For these

reasons, EPA believes that the special circumstances associated with an

individual moving to the United States from Canada also warrant

consideration in this rulemaking. EPA believes that similar

circumstances may also apply to some individuals importing vehicles

from other countries. Consequently, this proposal addresses vehicle

importations by individuals moving to the United States from other

countries, as well.

EPA's current policy permits entry to certain vehicles on a case-

by-case basis. EPA proposes to formalize this policy to grant

exemptions to individual owners (individuals and businesses) to import

their personal vehicles (i.e., vehicles not imported for the purpose of

resale), provided they have proven that their vehicles were: (1)

Originally manufactured to be identical, in all material respects, to a

vehicle described in an OEM's application for certification, or (2)

modified to be identical in all material respects to a vehicle

described in an OEMs application for certification. EPA is not

proposing to change individual vehicle owners' responsibility for

payment of any Gas Guzzler taxes applicable to vehicles they import.

EPA's proposal also offers individual importers the option of

having an ICI import their vehicle or engine for the purpose of

modifying it to be identical in all material respects to a vehicle or

motor vehicle engine certified by the OEM for sale in the United

States. Vehicles imported under this option must be modified by the ICI

according to OEM instructions, but do not have to be tested. EPA is

confident that detailed instructions provided by an OEM specifying

parts to be installed and adjustments to be performed will be

sufficient to make a vehicle or engine identical in all material

respects to a certified vehicle or engine, because these modifications

will result in the vehicle or engine having the same parts and

parameters as are described in the OEM's application for certification,

which describes the vehicles or engines produced by the OEM within a

given certified engine family. Individual vehicle owners who might

otherwise have to incur the greater expense of ICI testing for a

vehicle they wish to import may benefit from this option, if

modification instructions can be obtained from the OEM.

C. Emission Standards

Today, EPA is proposing to delete the requirement that

nonconforming light-duty vehicles and light-duty trucks imported

pursuant to 40 CFR 85.1505 or 85.1509 meet current year emission

standards.\3\ Instead of meeting current year emission standards, these

vehicles will be allowed to meet emission standards (with applicable

deterioration factors applied) that were in effect at the time of

original vehicle production, with a few exceptions. These vehicles

must, however, meet such emission standards using the currently

applicable testing procedures, and must meet all applicable current

model year fuel economy requirements. EPA is not proposing to change

ICIs' status as small volume manufacturers and they must comply with

corporate average fuel economy (CAFE) requirements as imposed by the

Department of Transportation (DOT). This revision would give owners of

older motor vehicles a way to import their vehicles. Many of these

vehicles are now effectively excluded from importation due to the high

cost of modification to meet current model year standards, which may be

greater than the value of the vehicle involved.

---------------------------------------------------------------------------

\3\This proposal does not change the emission standards for new

motor vehicles imported by the original equipment manufacturers.

This proposal changes only the emission standards for motor vehicles

that were originally produced in earlier years than the model year

of importation.

---------------------------------------------------------------------------

EPA would continue, as under current regulations, to define the

useful life of imported nonconforming vehicles as a period of time or

mileage of use in the United States, beginning with the date and

mileage at the time of a vehicle's release to the owner or purchaser.

Consequently, this proposal would not affect the warranty and recall

requirements pursuant to 40 CFR 85.1508 and 85.1510 or any other

requirement under that subpart.

D. Other Issues

(1) Precertification Exemption

Today's proposal revises the precertification exemption available

to ICIs pursuant to 40 CFR 85.1511(b)(3) for the importation of

nonconforming prototype vehicles for use in certification. Presently,

the ICI must obtain written approval from the Administrator prior to

importing such nonconforming motor vehicles, must use the vehicle to

obtain a certificate of conformity, and must obtain a certificate of

conformity within 180 days of importation. In this rulemaking, EPA

retains these provisions, and proposes additional requirements

regarding the number of precertification exemptions given to an ICI at

any given time and EPA's criteria for granting precertification

exemptions pursuant to 40 CFR 85.1511(b)(3) while other

precertification exemptions are pending. In addition, a provision is

made for extension of the 180 day time limit under certain

circumstances. A precertification exemption allows an ICI to bring a

vehicle or engine into the U.S. for the purpose of obtaining a

certificate of conformity.

EPA is concerned with granting, or with the need for granting,

precertification exemptions when the ICI has failed to complete the

certification process and obtain certificates of conformity for other

prototype vehicles previously entered under this exemption. EPA is also

concerned about the technical capability of some ICIs, that the ICIs

successfully modify the pending precertification vehicles, and that the

ICIs continue to comply with all requirements of the Imports

regulations. Therefore, EPA is proposing limits to precertification

exemptions.

EPA is proposing an automatic limit of no more than three

precertification exemptions to an ICI at any one time except upon a

case-by-case determination that the ICI has demonstrated an ability to

meet the EPA technical and time requirements for the additional

prototype vehicle as well as for all other vehicles it has already

imported. Absent such approval, the ICI will not be granted another

precertification exemption until a certificate for the existing

prototype vehicle(s) is obtained or the vehicle(s) unable to be brought

into conformity with Federal emission requirements has been exported.

Secondly, regardless of the number of outstanding precertification

exemptions, EPA also would not grant another precertification exemption

if the ICI is in noncompliance with the Imports regulations for any

other vehicle already imported until the noncompliance situation is

resolved. When determining whether to grant approval of additional

exemptions, EPA will consider such factors as an ICI's previously

demonstrated success in obtaining certificates of conformity in a

timely manner, accurate and efficient compliance with all certification

procedures, extent of progress on other outstanding precertification

exemptions, and whether the ICI is and will likely be in compliance

with all requirements of the Imports regulations for other vehicles it

has already imported. EPA is also proposing the following

clarifications to the precertification process to eliminate confusion

associated with the final admission of prototype vehicles. The

prototype vehicle is the first vehicle imported and tested under the

certificate of conformity for the purposes of testing every third (or

fifth) vehicle under 40 CFR 85.1505.

Under current regulations, an ICI must obtain a certificate of

conformity within 180 days of the date of entry of the prototype

vehicle. If not, then either the total amount of the bond is forfeited

or the vehicle is exported. EPA recognizes there are limited instances

when it is not possible to obtain a certificate of conformity within

180 days. Therefore, EPA is proposing that an extension of the 180 day

requirement may be granted by the Administrator. The length of the

extension will be determined by EPA on a case-by-case basis considering

the needs of each ICI. The ICI must request such an extension prior to

the expiration of the 180 days. EPA expects to grant such requests only

under unique circumstances. For example, EPA would expect to grant an

extension to an ICI who has completed all modifications for the vehicle

and certification testing is pending, but circumstances beyond the

ICI's control have led to failure to obtain the certificate of

conformity within the required 180 days. EPA specifically will not

grant an extension for situations such as (but not limited to) when an

ICI allows a significant amount of time to elapse in which significant

progress was not made on the vehicle, or when an ICI fails to submit in

a timely manner the application for certification (or applicable parts,

thereof) to EPA.

The ICI must comply with all requirements of Subpart P once the

certification process is complete, including the submittal of final

admission forms as stated in 40 CFR 85.1505, the recordkeeping

requirements and labeling requirements of 40 CFR 85.1706 and any other

requirements of 40 CFR 85.1501 et seq.

(2) Racing Exclusion

According to 40 CFR 85.1511(e), a racing vehicle may be imported by

any person provided the vehicle meets one or more of the exclusion

criteria set forth in 40 CFR 85.1703. Presently, EPA policy will allow

such a vehicle to be imported only with a prior written EPA

determination that the vehicle meets these exclusion criteria. The

purpose of this policy is to ensure that vehicles which may be legally

operated or are capable of being legally operated on the streets and

highways will not be imported as racing vehicles. EPA proposes to

incorporate this practice into the regulations.

(3) Warranty/Insurance

When the current Imports program was initially implemented in 1988,

EPA discovered that ICIs were not capable of obtaining the independent

insurance coverage as required in 40 CFR 85.1510(b)(2). As a result,

EPA proposes to amend the existing regulations to allow an ICI to

obtain prepaid independent insurance coverage less than that required

by the regulations, with the ICI retaining full responsibility for the

remaining warranty coverage. The prepaid insurance policy, underwritten

by an independent insurance company, shall at a minimum provide

coverage for emission related components installed or modified by the

ICI and to the maximum extent possible, the emission related components

installed by the OEM.

This change does not alter the requirement that the ICI provide an

emissions warranty as required by section 207 (a) and (b) of the Act.

(4) Minor Clarifications

EPA is also proposing the following minor clarifications and

changes: (1) Adding a definition of fifteen working day hold period

(and five working day hold period) (40 CFR 85.1502), (2) clarifying

that the fifteen (or five) working day hold period begins the first

working day after the application for final admission is received by

the Manufacturers Operations Division (40 CFR 85.1505 and 85.1509), (3)

providing for the transfer of control of a nonconforming motor vehicle

between ICIs after conditional admission (40 CFR 85.1504), (4) adding a

requirement that vehicles be stored within 50 miles of the test

facility during the fifteen working day hold period (importers wishing

to use storage facilities not meeting this criterion must obtain EPA's

prior written approval) (40 CFR 85.1505 and 85.1509), (5) providing for

the acceptance of alternative dates in lieu of the date of original

manufacture, if it is unobtainable (40 CFR 85.1507), (6) clarifying the

repair and alteration exemption (40 CFR 85.1511), (7) clarifying the

exclusion for methanol-fueled vehicles produced prior to the 1990 model

year (40 CFR 85.1511), (8) clarifying the catalyst control programs and

other requirements for United States version vehicles driven overseas

(40 CFR 85.1512), (9) clarifying that the ICI must retain control of

each vehicle until final admission is granted by EPA (40 CFR 85.1513),

(10) adding a requirement that to be eligible to modify and test six-

year old or older vehicles under 40 CFR 85.1509, an ICI must have a

currently valid certificate of conformity for the same vehicle type

(i.e., light-duty gasoline-fueled vehicle/truck, heavy-duty diesel

engine, or motorcycle) (40 CFR 85.1509), (11) clarify that unless all

requirements of 40 CFR 85.1505 or 85.1509 have been met, final

admission status will not be granted (40 CFR 85.1505 and 85.1509), (12)

delete the requirement that a vehicle greater than 20 original

production (OP) years old which is ineligible for exclusion, must be

imported by an ICI (40 CFR 85.1511), (13) clarify that vehicles

returning to the United States may be imported under bond for

restoration of any missing, damaged, or disabled emission-related parts

(40 CFR 85.1512), (14) modify existing regulatory language to

accurately reflect recent changes in the Act regarding useful life and

civil penalties (40 CFR 85.1507, 85.1508, 85.1510, and 85.1513), (15)

clarify that a conditionally admitted vehicle or engine must comply

with EPA requirements at the time that the application for final

admission is submitted to EPA (40 CFR Sec. 85.1513), (16) clarify that

the recordkeeping requirements for maintaining a list of vehicle

modifications includes all part numbers and calibration changes (40 CFR

85.1507), and (17) clarify that a vehicle that is emission tested in

order to obtain final admission must satisfy all of the applicable

testing requirements of part 86 (40 CFR 85.1502, 85.1505, 85.1507,

85.1509, 85.1513, 85.1516).

III. Proposed Amendments To Subpart R

A. Application of Section 216(2)

Section 216(2) of the Act defines the term ``motor vehicle'' as ``*

* * any self-propelled vehicle designed for transporting persons or

property on a street or highway.'' Generally, EPA proposes to amend

section 40 CFR 85.1703 to provide additional guidance on when a vehicle

is not a ``motor vehicle'' under section 216 of the Act.

To provide further guidance to the regulated industry, EPA proposes

to: (1) Amend this exclusion provision to reflect EPA's policy that the

use of a governor to limit a vehicle's speed to 25 mph is unacceptable

unless the speed control device cannot easily be removed, disabled, or

circumvented; (2) amend 40 CFR 85.1703(a)(2) by deleting the reference

to safety features required by Federal law; (3) revise 40 CFR

85.1703(a)(3) to state that the Federal Interstate Highway limitations

will be used to determine if a vehicle is of ``inordinate size''; (4)

include a new provision reflecting the Agency's policy that racing and

other vehicles which are not capable of safe and practical street or

highway use will not be considered motor vehicles under section 216 of

the Act; and (5) include a new provision to specify when a motorcycle

(as defined at 40 CFR 86.402-78) will be deemed to not be a motor

vehicle.

It is important to note that converting a non-motor vehicle into a

motor vehicle, and operating it on a public street or highway may be

considered to be manufacturing and introduction into commerce of an

uncertified motor vehicle. This is a violation of section 203(a)(1) of

the Act and may subject the manufacturer to civil penalties under

section 205 of the Act.

B. Precertification Exemption

EPA proposes to amend 40 CFR 85.1702(a) (3) and (4), to clarify the

distinction between a ``Precertification motor vehicle or motor vehicle

engine'' and a motor vehicle or motor vehicle engine subject to a

testing exemption (40 CFR 85.1705).

EPA further proposes to revise 40 CFR 85.1702(a) (3) and (4) by

substituting the terms ``Manufacturer-owned vehicle'' and

``Manufacturer-owned vehicle engine'' for the terms ``Precertification

vehicle'' and ``Precertification vehicle engine'' respectively.

Finally, EPA proposes to rename 40 CFR 85.1706 ``Manufacturer-owned

exemption''. For purposes of this provision, this substitution does not

expand the meaning of the subject terms, but only distinguishes them

from the exemptions provided to ICIs under Subpart P in order to

eliminate possible confusion created by the current use of the terms.

C. Display Exemption

EPA is also proposing a revision to the display exemption found at

40 CFR 85.1511(b)(4) and 85.1707. Presently, EPA will grant a temporary

display exemption for uncertified motor vehicles under certain

conditions. Although the exemption will be retained, EPA is proposing

several clarifications. These clarifications include incorporating

EPA's policy of granting the display exemption for business or public

display purposes only; and establishing a time limit for the display

exemption. In addition, the language in the display exemption in 40 CFR

85.1511(b)(4) and 40 CFR 85.1707 will be reconciled so that both

provisions will prohibit use on public streets and highways except for

purposes incident and necessary to the display purpose.

IV. Administrative Requirements

A. Administrative Designation and Regulatory Analysis Executive Order

12866

Under Executive Order 12866, [58 FR 51,735 (October 4, 1993)] the

Agency must determine whether the regulatory action is ``significant''

and therefore subject to OMB review and the requirements of the

Executive Order. The Order defines ``significant regulatory action'' as

one 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.

It has been determined that this rule is not a ``significant

regulatory action'' under the terms of Executive Order 12866 and is

therefore not subject to OMB review.

B. Paperwork Reduction Act

The information collection requirements in this proposed rule have

been submitted for approval to the Office of Management and Budget

(OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. An

Information Collection Request document has been prepared by EPA (OMB

control number 2060-0095, ICR No. 10.06) and a copy may be obtained

from Sandy Farmer, Information Policy Branch,; EPA; 401 M St., SW.

(Mail Code 2136); Washington, DC 20460 or by calling (202) 260-2740.

This collection of information has an estimated reporting burden

averaging 0.5 hours per response and an estimated annual recordkeeping

burden averaging 0.3 hours per respondent. These estimates include time

for reviewing instructions, searching existing data sources, gathering

and maintaining the data needed, and completing and reviewing the

collection of information.

Send comments regarding the burden estimate or any other aspect of

this collection of information, including suggestions for reducing this

burden to Chief, Information Policy Branch; EPA; 401 M St., SW. (Mail

Code 2136); Washington, DC 20460; and to the Office of Information and

Regulatory Affairs, Office of Management and Budget, Washington, DC

20503, marked ``Attention: Desk Officer for EPA.'' The final Rule will

respond to any OMB or public comments on the information collection

requirements contained in this proposal.

C. Impact on Small Entities

The Regulatory Flexibility Act of 1980 requires federal agencies to

identify potentially adverse impacts of federal regulations upon small

entities. In instances where significant impacts are possible on a

substantial number of these entities, agencies are required to perform

a Regulatory Flexibility Analysis.

There will not be a significant impact on a substantial number of

small business entities because the proposed rule benefits the small

businesses that import nonconforming vehicles into the United States,

allowing them additional options for importing these vehicles and

minimizing their costs.

Therefore, as required under section 605 of the Regulatory

Flexibility Act, 5 U.S.C. 601 et. seq., the Administrator certifies

that this regulation does not have a significant impact on a

substantial number of small entities.

D. Statutory Authority

Subpart P--Secs. 203, 206, 207, 208, 301 and 307, Clean Air Act, as

amended (42 U.S.C. 7522, 7525, 7541, 7542, 7601 and 7607).

Subpart R--Secs. 203(b)(1), 216(2), 301 and 307, Clean Air Act, as

amended (42 U.S.C. 7522(b)(1), 7550(2), 7601 and 7607).

List of Subjects

40 CFR Part 85

Imports labeling, Motor vehicle pollution, Reporting and

recordkeeping requirements, Research, Warranties.

40 CFR Part 600

Electric power, Energy conservation, Gasoline, Labeling,

Administrative practice and procedure, Fuel economy.

Dated: March 17, 1994.

Carol M. Browner,

Administrator.

[FR Doc. 94-6949 Filed 3-23-94; 8:45 am]

BILLING CODE 6560-50-P