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. 96-085; 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 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 model years (MYs) 1998 and 1999 and that a lower

alternative standard be established. In this document, NHTSA

establishes an alternative standard for Rolls Royce of 16.3 mpg for MYs

1998 and 1999.

DATES: Effective date: May 27, 1997. This exemption and the alternative

standards apply to Rolls Royce for MYs 1998 and 1999.

Petitions for reconsideration: Petitions for reconsideration must

be received no later than May 27, 1997.

ADDRESSES: Petitions for reconsideration of this rule should refer to

the docket

[[Page 17101]]

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: Mr. P.L. Moore, Office of Planning and

Consumer Programs, NHTSA, 400 Seventh Street, SW., Washington, DC

20590. Mr. Moore's telephone number is: (202) 366-5222.

For legal issues: Otto Matheke, Office of the Chief Counsel, NCC-

20, telephone (202) 366-5253, facsimile (202) 366-3820.

SUPPLEMENTARY INFORMATION:

Statutory Background

Pursuant to 49 U.S.C. section 32902(d), 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 United States to conserve energy.

Section 32902(d)(2) permits NHTSA to establish alternative average

fuel economy standards applicable to exempted low volume manufacturers

in one of three ways: (1) A separate standard for each exempted

manufacturer; (2) a separate average fuel economy standard applicable

to each class of exempted automobiles (classes would be based on

design, size, price, or other factors); or (3) a single standard for

all exempted manufacturers.

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 MYs 1998 and 1999 passenger automobile average

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

16.3 mpg be established for Rolls Royce for MYs 1998 and 1999 (61 FR

46756; September 5, 1996). The agency did not receive any comments in

response to the proposed decision.

NHTSA Final Determination

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 is 16.3 mpg for MY

1998 and 16.3 mpg for MY 1999, 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 1998 and 1999 model

years and establishes an alternative standard of 16.3 mpg for MYs 1998

and 1999 for Rolls Royce.

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 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 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 1998

and 1999 model year automobiles cannot achieve better fuel economy than

16.3 mpg for MYs 1998 and 1999, 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 1998 and 1999. Since the price of 1998 and 1999 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 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 Sec. 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

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

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

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

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

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

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

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

1998....................................................... 16.3

1999....................................................... 16.3

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* * * * *

Issued on: April 2, 1997.

L. Robert Shelton,

Associate Administrator for Safety Performance Standards.

[FR Doc. 97-8824 Filed 4-8-97; 8:45 am]

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