Automotive Fuel Economy; Semi-Annual Reports

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 537

[Docket No. 96-38, Notice 01]

RIN 2127-AG00

Automotive Fuel Economy; Semi-Annual Reports

AGENCY: National Highway Traffic Safety Administration (NHTSA),

Department of Transportation.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This notice proposes various revisions to the required form

and contents of the semi-annual reports which automobile manufacturers

are statutorily required to submit under the Federal automotive fuel

economy program. It is intended that these revisions will reduce the

paperwork burdens imposed on manufacturers without inhibiting the

agency's ability to comply with its statutory requirements. NHTSA

undertakes this action as part of its effort to implement the

President's Regulatory Reinvention Initiative to make regulations

easier to understand and apply.

ADDRESSES: Comments should refer to the docket and notice number set

forth above and be submitted to: Docket

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Section, Room 5109, National Highway Traffic Safety Administration, 400

Seventh Street, SW, Washington, D.C. 20590.

DATES: Comments on this notice must be received by July 12, 1996. The

final rule would apply to reports submitted for model years beginning

after publication of the final rule.

FOR FURTHER INFORMATION CONTACT: Alan Berkowitz, Office of Planning and

Consumer Programs, Safety Performance Standards, NHTSA, 400 7th St.,

SW., Washington DC 20590. Telephone: (202) 366-4795.

SUPPLEMENTARY INFORMATION:

President's Regulatory Reinvention Initiative

Pursuant to the March 4, 1995, directive ``Regulatory Reinvention

Initiative'' from the President to the heads of departments and

agencies, NHTSA undertook a review of its regulations and directives.

During the course of this review, the agency identified rules that it

could propose to eliminate as unnecessary or to amend to improve their

comprehensibility, usefulness, and appropriateness. NHTSA has

identified the Semi-Annual Reports for Automotive Fuel Economy as a

candidate for review.

Background

Section 32907 of Chapter 329 of Title 49 of the U.S. Code (49

U.S.C. 32901 et seq.) requires each automobile manufacturer (other than

those small manufacturers which have been granted an alternative fuel

economy standard under section 32902(d)) to submit semi-annual reports

to the agency relating to that manufacturers' efforts to comply with

average fuel economy standards. One report is due during the 30-day

period preceding the beginning of each model year (the ``pre-model year

report'') and the other is due during the 30-day period beginning on

the 180th day of the model year (the ``mid-model year report'').

Since the various manufacturers have different annual production

periods, the agency determined in 42 FR 62374 (December 12, 1977) that

there was no single model year designation applicable to all companies.

Therefore, in accordance with section 32901(a)(15) of Chapter 329, the

agency determined that the calendar year should serve as the ``model

year'' for purposes of section 32907, making the pre-model year report

for any year due in December of the prior year and the mid-model year

report for any year due in July of that year. For the major domestic

manufacturers, this means that the pre-model year report is submitted

well into their actual production period and the mid-model year report

is due near the end of that period.

Section 32907(a)(1) of Chapter 329 provides that each report must

contain a statement as to whether the manufacturer will comply with

average fuel economy standards for that year, a plan describing the

steps the manufacturer has taken or will take to comply with the

standards, and any other information the agency may require. Whenever a

manufacturer determines that a plan it has submitted in one of its

reports is no longer adequate to assure compliance, it must submit a

revised plan. Section 32907(a)(1)(C) of Chapter 329 also permits the

agency to issue rules prescribing the form and content of reports.

Proposed Revisions

The revised text for 49 CFR Part 537 presented in this notice

proposes to reduce the amount of detailed specification data required

of manufacturers in their reports to the agency. Specifically, the

agency is asking for data to be consolidated at the model level instead

of the configuration level. This would reduce the volume of information

that must be submitted. The proposed revision provides the data in a

form that more closely matches the format of information that the

agency uses in analyzing the manufacturers' fleets for purposes of its

annual report to the Congress and special reports and studies of fuel

economy standards. The format of the report is revised to delete some

items that the agency has not used in recent years, i.e., engine code,

emission control system, existence of overdrive, axle ratio, existence

of temporary living quarters, expansion of cargo carrying capacity by

removal of seats, and frontal area.

The proposed text also changes the time of submission of the

detailed specification information from the pre-model year report to

the mid-model year report. This will result in the manufacturers

providing more complete and correct data as the data will be assembled

near the end of the typical production period for each model. The data

will still be provided to the agency in time for incorporation in the

annual report to the Congress.

Finally, the text description for supplementary reports

(Sec. 537.8) is deleted. Manufacturers have not been furnishing this

report to the agency, nor has the agency been requesting it. Its

purpose, to explain how a fleet that is below the average fuel economy

standard will be brought into compliance, can be fulfilled by the

addition of an appropriate statement in either the pre- model year or

mid-model year report. Some manufacturers currently use this procedure.

That statement is specified in the revised text in Sec. 537.7(b)(4).

Impact Analyses

1. Economic Impacts

This notice of proposed rulemaking (NPRM) was not reviewed under

Executive Order 12866 (Regulatory Planning and Review). NHTSA has

analyzed the impact of this request for comment and determined that it

is not ``significant'' within the meaning of the Department of

Transportation's regulatory policies and procedures. The agency

anticipates, if a final rule should result from this NPRM, new

requirements would not be imposed on manufacturers.

2. Impacts on Small Entities

Pursuant to the Regulatory Flexibility Act, the agency has

considered the impact this rulemaking would have on small entities.

Few, if any, automobile manufacturers subject to the proposed rule

would be classified as a ``small business'' under the Regulatory

Flexibility Act. I certify that this action would not have a

significant economic impact on a substantial number of small entities.

3. Impact of Federalism

This action has been analyzed in accordance with the principles and

criteria contained in Executive Order 12612, and it has been determined

that the proposed rule would not have sufficient Federalism

implications to warrant the preparation of a Federalism Assessment.

4. Paperwork Reduction Act

Information collection requirements contained in this NPRM

represent an amendment to those approved by the Office of Management

and Budget under the provisions of the Paperwork Reduction Act (Pub. L.

96-511) and assigned OMB Control Number 2127-0019. The agency believes

that the changes proposed in this notice will result in a small

reduction in the paperwork burden of this reporting requirement. The

agency solicits comment on the expected change in paperwork burden that

this proposal would entail.

5. National Environmental Policy Act

The agency has analyzed this rule for the purpose of the National

Environmental Policy Act and determined that it would not have any

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significant impact on the quality of the human environment.

6. Civil Justice Reform

This proposed rule would not have any retroactive effect and it

does not preempt any State law. 49 U.S.C. 32909 sets forth a procedure

for judicial review of automobile fuel economy regulations. That

section does not require submission of a petition for reconsideration

or other administrative proceedings before parties may file suit in

court.

Comments

NHTSA is providing a comment period, ending on July 12, 1996 for

interested parties to present data and views on the issues raised in

this notice, as well as any other issues commenters believe are

relevant to this proceeding. It is requested but not required that 10

copies be submitted.

Comments must not exceed 15 pages in length (49 CFR 553.21).

Necessary attachments may be appended to these submissions without

regard to the 15-page limit. This limitation is intended to encourage

commenters to detail their primary arguments in a concise fashion.

If a commenter wishes to submit certain information under claim of

confidentiality, three copies of the complete submission, including

purportedly confidential business information, should be submitted to

the Chief counsel, NHTSA, at the street address given above, and seven

copies from which the purportedly confidential information has been

deleted should be submitted to the Docket Section. A request for

confidentiality should be accompanied by a cover letter setting forth

the information specified in the agency's confidential business

information regulation. 49 CFR part 512.

All comments received before the close of business on the comment

closing date indicated above for the proposal will be considered, and

will be available for examination in the docket at the above address

both before and after that date. To the extent possible, comments filed

after the closing date will also be considered. Comments received too

late for consideration in regard to the final rule will be considered

as suggestions for further rulemaking action. Comments on the proposal

will be available for inspection in the docket. NHTSA will continue to

file relevant information as it becomes available in the docket after

the closing date, and it is recommended that interested persons

continue to examine the docket for new material.

Those persons desiring to be notified upon receipt of their

comments in the rules docket should enclose a self-addressed, stamped

postcard with their comments. Upon receiving the comments, the docket

supervisor will return the postcard by mail.

List of Subjects in 49 CFR Part 537

Fuel economy, Reporting and recordkeeping requirements.

In consideration of the foregoing, 49 CFR Part 537 would be revised

to read as follows:

PART 537--AUTOMOTIVE FUEL ECONOMY REPORTS

Sec.

537.1 Scope.

537.2 Purpose.

537.3 Applicability.

537.4 Definitions.

537.5 General requirements for reports.

537.6 General content of reports.

537.7 Pre-model year and mid-model year reports.

537.8 [Reserved].

537.9 Determination of fuel economy values and average fuel

economy.

537.10 Incorporation by reference.

537.11 Public Inspection of Information.

537.12 Confidential Information.

Authority: 49 U.S.C. 32907; 49 CFR 1.50.

Sec. 537.1 Scope.

This part establishes requirements for automobile manufacturers to

submit reports to the National Highway Traffic Safety Administration

regarding their efforts to improve automotive fuel economy.

Sec. 537.2 Purpose.

The purpose of this part is to obtain information to aid the

National Highway Traffic Safety Administration in valuating automobile

manufacturers' plans for complying with average fuel economy standards

and in preparing an annual review of the average fuel economy

standards.

Sec. 537.3 Applicability.

This part applies to automobile manufacturers, except for

manufacturers subject to an alternate fuel economy standard under 49

U.S.C. 32902(d).

Sec. 537.4 Definitions.

(a) Statutory terms. (1) The terms average fuel economy standard,

fuel, manufacture, and model year are used as defined in 49 U.S.C.

32901.

(2) The term manufacturer is used as defined in 49 U.S.C. 32901 and

in accordance with Part 529 of this chapter.

(3) The terms average fuel economy, fuel economy, and model type

are used as defined in Subpart A of 40 CFR Part 600.

(4) The terms automobile, automobile capable of off-highway

operation, and passenger automobile are used as defined in 49 U.S.C.

32901 and in accordance with the determinations in Part 523 of this

chapter.

(b) Other terms. (1) The term loaded vehicle weight is used as

defined in Subpart A of 40 CFR Part 86.

(2) The terms base level, body style, car line, combined fuel

economy, equivalent test weight, inertia weight, transmission class,

and vehicle configuration are used as defined in Subpart A of 40 CFR

Part 600.

(3) The term light truck is used as defined in Part 523 of this

chapter and in accordance with determinations in that part.

(4) The terms approach angle, axle clearance, breakover angle,

cargo-carrying volume, departure angle, passenger-carrying volume, and

running clearance are used as defined in Part 523 of this chapter.

(5) The term incomplete automobile manufacturer is used as defined

in Part 529 of this chapter.

(6) As used in this part, unless otherwise required by the context:

(i) Administrator means the Administrator of the National Highway

Traffic Safety Administration or the Administrator's delegate.

(ii) Current model year means:

(A) In the case of a pre-model year report, the full model year

immediately following the period during which that report is required

by 537.5(b) to be submitted.

(B) In the case of a mid-model year report, the model year during

which that report is required by 537.5(b) to be submitted.

(iii) Average means a production weighted harmonic average.

(iv) Total drive ratio means the ratio of an automobile's engine

rotational speed (in revolutions per minute) to the automobile's

forward speed (in miles per hour).

Sec. 537.5 General requirements for reports.

(a) For each current model year, each manufacturer shall submit a

pre-model year report and a mid-model year report.

(b)(1) The pre-model year report required by this part for each

current model year must be submitted during the month of December

(e.g., the pre-model year report for the 1997 model year must be

submitted during December, 1996).

(2) The mid-model year report required by this part for each

current model year must be submitted during the month of July (e.g.,

the mid-model year report for the 1997 model year must be submitted

during July 1997).

(c) Each report required by this part must:

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(1) Identify the report as a pre-model year report or mid-model

year report;

(2) Identify the manufacturer submitting the report;

(3) State the full name, title, and address of the official

responsible for preparing the report;

(4) Be submitted in 10 copies to: Administrator, National Highway

Traffic Safety Administration, 400 Seventh Street SW., Washington, DC

20590;

(5) Identify the current model year;

(6) Be written in the English language; and

(7)(i) Specify any part of the information or data in the report

that the manufacturer believes should be with held from public

disclosure as trade secret or other confidential business information.

(ii) With respect to each item of information or data requested by

the manufacturer to be withheld under 5 U.S.C. 552(b)(4) and 15 U.S.C.

2005(d)(1), the manufacturer shall:

(A) Show that the item is within the scope of sections 552(b)(4)

and 2005(d)(1);

(B) Show that disclosure of the item would result in significant

competitive damage;

(C) Specify the period during which the item must be withheld to

avoid that damage; and

(D) Show that earlier disclosure would result in that damage.

(d) Each report required by this part must be based upon all

information and data available to the manufacturer 30 days before the

report is submitted to the Administrator.

Sec. 537.6 General content of reports.

(a) Pre-model year and mid-model year reports. Except as provided

in paragraph (b) of this section, each pre-model year report and the

mid-model year report for each model year must contain the information

required by 537.7(a).

(b) Exceptions. The pre-model year report and the mid-model year

report submitted by an incomplete automobile manufacturer for any model

year are not required to contain the information specified in 537.7

(c)(4)(xix) (A) and (B)(1), (3), and (4) and (c)(5). The information

provided by the incomplete automobile manufacturer under 537.7(c) shall

be according to base level instead of model type or car line.

Sec. 537.7 Pre-model year and mid-model year reports.

Each manufacturer submitting a report shall:

(a)(1) Provide the information required by paragraphs (b) and (c)

of this section for the manufacturer's passenger automobiles for the

current model year.

(2) After providing the information required by paragraph (a)(1) of

this section provide the information required by paragraphs (b) and (c)

of this section for the manufacturer's light trucks for the current

model year.

(b) Projected average Fuel economy. (1) State the projected average

fuel economy for the manufacturer's automobiles determined in

accordance with 537.9 and based upon the fuel economy values and

projected sales figures provided under paragraph (c)(2) of this

section.

(2) State the projected final average fuel economy that the

manufacturer anticipates having if changes implemented during the model

year will cause that average to be different from the average fuel

economy projected under paragraph (b)(1) of this section.

(3) State whether the manufacturer believes that the projection it

provides under paragraph (b)(2) of this section, or if it does not

provide an average under that paragraph, the projection it provides

under paragraph (b)(1) of this section sufficiently represents the

manufacturer's average fuel economy for the current model year for the

purposes of the statute. In the case of a manufacturer that believes

that the projection is not sufficiently representative for those

purposes, state the reason for the insufficiency and the specific

additional testing or derivation of fuel economy values by analytical

methods believed by the manufacturer necessary to eliminate the

insufficiency and any plans of the manufacturer to undertake that

testing or derivation voluntarily and submit the resulting data to the

Environmental Protection Agency under 40 CFR 600.509.

(4) If the projected average fuel economy provided under section

(b)(1) or (b)(2) of this section does not comply with the applicable

average fuel economy standard, state what actions the manufacturer has

taken or intends to take to comply with the standard and whether those

actions are sufficient to ensure compliance.

(c) Model type fuel economy and technical information. (1) For each

model type of the manufacturer's automobiles, provide the information

specified in paragraph (c)(2) of this section in tabular form. List the

model types in order of increasing equivalent test weight from top to

bottom down the left side of the table and list the information

categories in the order specified in paragraph (c)(2) of this section

from left to right across the top of the table.

(2)(i) Combined fuel economy for each model type and CAFE for the

fleet; and (ii) Projected production for the current model year and

total production of all model types.

(3) (Mid-model report only.) For each model type provide the

information specified in paragraph (c)(4) at this section either in

tabular form or preferably as a database formatted computer disk. If a

tabular form is used then list the vehicle model types in the order

listed under paragraph (c)(2) of this section from top to bottom down

the left of the table and list the information categories across the

top of the table from left to right in the order specified in paragraph

(c)(4) of this section. Other formats (such as copies of EPA reports),

which contain all the required information in a readily identifiable

form, are also acceptable. If a computer disk is used, any NHTSA

approved database structure may be used, but each model type record

should identify the manufacturer, model type, and for light trucks the

drive wheel code, e.g. 2- or 4- wheel drive. At least the information

categories specified here and in paragraph (c)(4) must be provided, but

if preferred, the disk may contain any additional categories. Each

computer disk record must contain all the required categories of

information to enable direct reading and interpretation in the database

format that was approved. Parameters that vary within the model type

(e.g., loaded vehicle weight) should be weighted by the production

share of each distinct value.

(4)(i) Loaded vehicle weight;

(ii) Equivalent test weight;

(iii) Engine displacement, liters;

(iv) Number of engine cylinders;

(v) SAE net rated power, kilowatts;

(vi) Type of fuel injection;

(vii) Transmission class;

(viii) Number of forward speeds;

(ix) Total drive ratio (N/V);

(x) Combined fuel economy, mpg;

(xi) Projected production for the current model year;

(xii) Road load power at 50 miles per hour;

(xiii) (A) In the case of passenger automobiles:

(1) Interior volume index, determined in accordance with Subpart D

of 40 CFR Part 600, and

(2) Body style;

(B) In the case of light trucks:

(1) Passenger-carrying volume; and

(2) Cargo-carrying volume.

(5) For each model type of automobile which is classified as an

automobile capable of off-highway operation under Part 523 of this

chapter, provide the following data:

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(i) Approach angle;

(ii) Departure angle;

(iii) Breakover angle;

(iv) Axle clearance;

(v) Minimum running clearance; and

(vi) Existence of 4-wheel drive (indicate yes or no).

(6) The fuel economy values provided under paragraphs (c) (2) and

(4) of this section shall be determined in accordance with Sec. 537.9.

Sec. 537.8 [Reserved]

Sec. 537.9 Determination of fuel economy values and average fuel

economy.

(a) Base level and model type fuel economy values. For each base

level and model type, the manufacturer shall submit a fuel economy

value based on the vehicle configuration values that have been

determined and approved under 40 CFR part 600, or, if such a value does

not exist, a value based on a comparable test or analysis, and

calculated in the same manner as base level and model type fuel economy

values are calculated for use under Subpart F of 40 CFR part 600.

(b) Average fuel economy. Average fuel economy must be based upon

fuel economy values calculated under paragraph (a) of this section for

each model type and must be calculated in accordance with 40 CFR

600.506, using the configurations specified in 40 CFR 600.506(a)(2),

except that fuel economy values for running changes and for new base

levels are required only for those changes made or base levels added

before the average fuel economy is required to be submitted under this

part.

Sec. 537.10 Incorporation by reference.

(a) A manufacturer may incorporate by reference in a report

required by this part any document other than a report, petition, or

application, or portion thereof submitted to any Federal department or

agency more than two model years before the current model year.

(b) A manufacturer that incorporates by references a document not

previously submitted to the National Highway Traffic Safety

Administration shall append that document to the report.

(c) A manufacturer that incorporates by reference a document shall

clearly identify the document and, in the case of a document previously

submitted to the National Highway Traffic Safety Administration,

indicate the date on which and the person by whom the document was

submitted to this agency.

Sec. 537.11 Public inspection of information.

Except as provided in Sec. 537.12, any person may inspect the

information and data submitted by a manufacturer under this part in the

docket section of the National Highway Traffic Safety Administration.

Any person may obtain copies of the information available for

inspection under this section in accordance with the regulations of the

Secretary of Transportation in Part 7 of this title.

Sec. 537.12 Confidential information.

(a) Information made available under Sec. 537.11 for public

inspection does not include information for which confidentiality is

requested under Sec. 537.5(c)(7), is granted in accordance with section

32910(c) of Chapter 329 and section 552(b) of Title 5 of the United

States Code, and is not subsequently released under paragraph (c) of

this section in accordance with section 32910 of Chapter 329.

(b) Denial of confidential treatment. When the Administrator denies

a manufacturer's request under Sec. 537.5(c)(7) for confidential

treatment of information, the Administrator gives the manufacturer

written notice of the denial and reasons for it. Public disclosures of

the information is not made until after the ten-day period immediately

following the giving of the notice.

(c) Release of confidential information. After giving written

notice to a manufacturer and allowing ten days, when feasible, for the

manufacturer to respond, the Administrator may make available for

public inspection any information submitted under this part that is

relevant to a proceeding under the Act, including information that was

granted confidential treatment by the Administrator pursuant to a

request by the manufacturer under Sec. 537.5(c)(7).

Issued on: May 7, 1996.

Barry Felrice,

Associate Administrator for Safety Performance Standards.

[FR Doc. 96-11720 Filed 5-10-96; 8:45 am]

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