Passenger Automobile Average Fuel Economy Standards; Final Decision to Grant Exemption

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 531

[Docket No. 96-067; Notice 2]

Passenger Automobile Average Fuel Economy Standards; Final

Decision to Grant Exemption

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

ACTION: Final decision.

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SUMMARY: This final decision responds to a joint petition filed by

Vector Aeromotive Corporation (Vector) and Automobili Lamborghini

S.p.A. (Lamborghini) requesting that each company be exempted from the

generally applicable average fuel economy standard of 27.5 miles per

gallon (mpg) for model years (MYs) 1995 through 1997, and that lower

alternative standards be established. In this document, NHTSA is

establishing alternative standards of 12.8 mpg for MY 1995, 12.6 mpg

for MY 1996, and 12.5 mpg for MY 1997, for Lamborghini and Vector.

DATES: Effective date: February 6, 1997. Applicability dates: This

exemption and the alternative standards apply to Lamborghini and Vector

for MYs 1995, 1996 and 1997.

Petitions for reconsideration: Petitions for reconsideration must

be received no later than February 6, 1997.

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

Planning and Consumer Programs, NHTSA, 400 Seventh Street, SW,

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

SUPPLEMENTARY INFORMATION:

Background

NHTSA is exempting Lamborghini and Vector from the generally

applicable average fuel economy standard for 1995, 1996 and 1997 model

year passenger automobiles and establishing alternative standards

applicable to Lamborghini and Vector 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

[[Page 67492]]

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 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 Lamborghini and Vector should be

exempted from the generally applicable MY 1995, 1996 and 1997 passenger

automobile average fuel economy standard of 27.5 mpg, and that an

alternative standard of 12.8 mpg for MY 1995, 12.6 mpg for MY 1996, and

12.5 mpg for MY 1997 be established for Lamborghini and Vector (61 FR

39429; July 29, 1996). 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 Lamborghini

and Vector is 12.8 mpg for MY 1995, 12.6 mpg for MY 1996, and 12.5 mpg

for MY 1997, 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 Lamborghini

and Vector from the generally applicable passenger automobile average

fuel economy standard for the 1995, 1996 and 1997 model year and

establishes an alternative standard of 12.8 mpg for MY 1995, 12.6 mpg

for MY 1996, and 12.5 mpg for MY 1997 for Lamborghini and Vector.

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 Lamborghini and Vector. 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 Lamborghini and Vector will not be required to pay

civil penalties if they achieve 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 Lamborghini

and Vector'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 Lamborghini and

Vector's 1995, 1996 and 1997 model year automobiles cannot achieve

better fuel economy than 12.8 mpg for MY 1995, 12.6 mpg for MY 1996,

and 12.5 mpg for MY 1997, 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 Lamborghini and Vector. It relieves the company

from having to pay civil penalties for noncompliance with the generally

applicable standard for MY 1995, 1996 and 1997. Since the price of

1995, 1996 and 1997 Lamborghini and Vector 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 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 section 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:

Sec. 531.5 Fuel economy standards.

* * * * *

(b) The following manufacturers shall comply with the standards

indicated below for the specified model years:

* * * * *

(10) Automobili Lamborghini S.p.A./Vector Aeromotive Corporation.

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

Average

fuel

economy

Model year standard

(miles

per

gallon)

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

1995......................................................... 12.8

1996......................................................... 12.6

1997......................................................... 12.5

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

* * * * *

Issued on: December 18, 1996.

L. Robert Shelton,

Associate Administrator for Safety Performance Standards.

[FR Doc. 96-32546 Filed 12-20-96; 8:45 am]

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