Passenger Automobile Average Fuel Economy Standards; MedNet Incorporated; Final Decision

[[Page 47877]]

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 531

[Docket No. 95-45; Notice 2]

Passenger Automobile Average Fuel Economy Standards; MedNet

Incorporated; Final Decision

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

ACTION: Final decision.

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

SUMMARY: This decision responds to a petition filed by MedNet

Incorporated (MedNet) requesting that it be exempted from the generally

applicable average fuel economy standard of 27.5 miles per gallon (mpg)

for model years 1996 through 1998, and that lower alternative standards

be established for it for each of these model years. This decision

exempts MedNet and establishes an alternative standard of 17.0 mpg for

MY 1996, MY 1997, and MY 1998.

DATES: Effective date: October 30, 1995. This exemption and the

alternative standards apply to MedNet for MYs 1996, 1997, and 1998.

Petitions for reconsideration must be submitted by October 16, 1995.

ADDRESSES: Petitions for reconsideration must be submitted to:

Administrator, NHTSA, 400 Seventh Street SW., Washington, D.C. 20590.

It is requested, but not required, that 10 copies be provided.

FOR FURTHER INFORMATION CONTACT: Ms. Henrietta Spinner, Office of

Market Incentives, NHTSA, 400 Seventh Street SW., Washington, D.C.

20590. Ms. Spinner's telephone number is: (202) 366-4802.

SUPPLEMENTARY INFORMATION: NHTSA is exempting MedNet from the generally

applicable average fuel economy standard for 1996, 1997, and 1998 model

years and establishing alternative standards applicable to MedNet for

each of these model years. This exemption is issued under the authority

of 49 U.S.C. 32902(d), providing that 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 Nation to conserve energy.

This final decision was preceded by a proposed decision announcing

the agency's tentative conclusion that it would not be technologically

feasible and economically practicable for MedNet to improve the fuel

economy of its vehicles in MY 1996 through 1998 above an average of

17.0 mpg for MY 1996, 17.0 mpg for MY 1997, and 17.0 mpg for MY 1998

and that the maximum feasible average fuel economy for MedNet is 17.0

mpg in MY 1996, 17.0 mpg in MY 1997, and 17.0 mpg in MY 1998. (60 FR

31937) No comments were received on the proposed decision.

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 the conclusions that the maximum

feasible average fuel economy level for MedNet in each of MYs 1996,

1997, and 1998 is 17.0 mpg, that other Federal motor vehicle safety

standards will not affect achievable fuel economy beyond the extent

considered in the proposed decision, and that the nation's need to

conserve energy will not be affected by granting this exemption, NHTSA

hereby exempts MedNet from the generally applicable passenger

automobile average fuel economy standard for the 1996, 1997, and 1998

model years and establishes an alternative standard of 17.0 mpg for

MedNet for each of these years.

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

proposal would not establish a ``rule,'' which is defined in the

Executive Order as ``an agency statement of general applicability and

future effect.'' This exemption is not generally applicable, since it

would apply only to MedNet, Inc., as discussed in this decision. Under

DOT regulatory policies and procedures, this 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 proposed action is neither major nor significant.

The principal impact of this exemption is that MedNet will not be

required to pay civil penalties if it achieves a CAFE level equivalent

to the alternative standard published in this notice. Since this

decision sets an alternative standard at the level determined to be

MedNet's maximum feasible level for MYs 1996 through 1998, no fuel

would be saved by establishing a higher alternative standard. The

impacts for the public at large are minimal.

The agency has also considered the environmental implications of

this decision in accordance with the National Environmental Policy Act

and determined that this decision will 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 decision and alternative standards. Further, since

MedNet's MY 1996, 1997, and 1998 automobiles cannot achieve better fuel

economy than 17.0 mpg, granting this exemption will 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 impact on a

substantial number of small entities. This decision does not impose any

burdens on MedNet. It does relieve the company from having to pay civil

penalties for noncompliance with the generally applicable standard for

MY's 1996, 1997, and 1998. Since the price of 1996, 1997, and 1998

MedNet 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)(12) is

added to read as follows:

[[Page 47878]]

Sec. 531.5 Fuel economy standards.

* * * * *

(b) The following manufacturers shall comply with the standards

indicated below for the specified model years:

* * * * *

(12) MedNet, Inc.

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

Average fuel

economy

Model year standard

(miles per

gallon)

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

1996.................................................... 17.0

1997.................................................... 17.0

1998.................................................... 17.0

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

Issued on: September 12, 1995.

Barry Felrice,

Associate Administrator for Safety Performance Standards.

[FR Doc. 95-22998 Filed 9-14-95; 8:45 am]

BILLING CODE: 4910-59-P