Passenger Automobile Average Fuel Economy Standards; Final Decision

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 531

[Docket No. 95-51; Notice 2]

Passenger Automobile Average Fuel Economy Standards; Final

Decision

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

ACTION: Final rule; granting an exemption from average fuel economy

standard and establishing an alternative standard.

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SUMMARY: This decision is issued in response to a petition filed by

Rolls-Royce Motors, Ltd. (Rolls-Royce) requesting that it be exempted

from the generally applicable average fuel economy standard of 27.5

miles per gallon (mpg) for its model year (MY) 1997 passenger

automobiles, and that lower alternative standards be established for

it. This decision exempts Rolls-Royce and establishes an alternative

standard of 15.1 mpg for MY 1997 for Rolls-Royce.

DATES: Effective date: March 22, 1996. This exemption and the

alternative standards apply to Rolls-Royce for MY 1997.

Petitions for reconsideration: Petitions for reconsideration must

be received no later than March 22, 1996.

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: Ms. Henrietta Spinner, Office of

Market Incentives, NHTSA, 400 Seventh Street, SW, Washington DC 20590.

Ms. Spinner's telephone number is: (202) 366-0846.

SUPPLEMENTARY INFORMATION:

Background

NHTSA is exempting Rolls-Royce from the generally applicable

average fuel economy standard for 1997 model year (MY) passenger

automobiles and establishing alternative standards applicable to Rolls-

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

authority of section 32902(d) of Chapter 329 of Title 49 of the United

States Code (formerly section 502(c) of the Motor Vehicle Information

and Cost Savings Act)(49 U.S.C. 32902(d)). Section 32902(d) provides

that NHTSA may exempt a low volume manufacturer of passenger

automobiles from the generally applicable average fuel economy

standards for passenger automobiles if the agency concludes that those

standards are more stringent than the maximum feasible average fuel

economy for that manufacturer and establishes an alternative standard

for that manufacturer at its maximum feasible level. Under the Act, 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 maximum

[[Page 4370]]

feasible average fuel economy, the agency is required by section

32902(f) of the Act 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.

Proposed Decision and Public Comment

This final decision was preceded by a proposal announcing the

agency's tentative conclusion that Rolls-Royce should be exempted from

the generally applicable MY 1997 passenger automobile average fuel

economy standard of 27.5 mpg, and that an alternative standard of 15.1

mpg be established for Rolls-Royce for that model year (60 FR 37861;

July 24, 1995). The agency did not receive any comments in response to

the proposed decision.

NHTSA Final Determination

Therefore, 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 Rolls-Royce in

MY 1997 is 15.1 mpg, 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 Rolls-

Royce from the generally applicable passenger automobile average fuel

economy standard for the 1997 model year and establishes an alternative

standard of 15.1 mpg for Rolls-Royce for that year.

Regulatory Impacts

NHTSA has analyzed this decision, and determined that neither

Executive Order 12866 nor the Department of Transportation's regulatory

policies and procedures apply, because this decision is not a ``rule,''

which term is defined as ``an agency statement of general applicability

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

it applies only to Rolls-Royce. If the Departmental policies and

procedures were applicable, the agency would have determined that this

action is not ``significant.'' The principal impact of this exemption

is that Rolls-Royce will not be required to pay civil penalties if it

achieves a CAFE level equivalent to the alternative standard

established in this notice. Since this decision sets an alternative

standard at the level determined to be Rolls-Royce's maximum feasible

average fuel economy, no fuel would be saved by establishing a higher

alternative standard. The impacts for the public at large will be

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 a vehicle, it must

pass the emissions standards which limit the amount of emissions per

mile traveled. Thus, the quality of the air is not affected by this

exemption and alternative standard. Further, since Rolls-Royce's MY

1997 automobiles cannot achieve better fuel economy than 15.1 mpg,

granting this exemption will not affect the amount of gasoline

consumed.

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 Rolls-Royce. It relieves the company from having

to pay civil penalties for noncompliance with the generally applicable

standard for MY 1997. Since the price of 1997 Rolls-Royce 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 continues to read as

follows:

Authority: 49 U.S.C. 32902, delegation of authority at 49 CFR

1.50.

2. In 49 CFR 531.5, the introductory text of paragraph (b) is

republished and paragraph (b)(2) is revised 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:

* * * * *

(2) Rolls-Royce Motors, Inc.

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Average fuel economy

Model year standard (miles per

gallon)

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1978........................................... 10.7

1979........................................... 10.8

1980........................................... 11.1

1981........................................... 10.7

1982........................................... 10.6

1983........................................... 9.9

1984........................................... 10.0

1985........................................... 10.0

1986........................................... 11.0

1987........................................... 11.2

1988........................................... 11.2

1989........................................... 11.2

1990........................................... 12.7

1991........................................... 12.7

1992........................................... 13.8

1993........................................... 13.8

1994........................................... 13.8

1995........................................... 14.6

1996........................................... 14.6

1997........................................... 15.1

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* * * * *

Issued on: January 30, 1996.

Barry Felrice,

Associate Administrator for Safety Performance Standards.

[FR Doc. 96-2331 Filed 2-5-96; 8:45 am]

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