# Presentation: 766147

## Fees for the Motor Vehicle and Engine Compliance Program (MVECP)

- Presented by

**Dan Harrison**
**Lynn Sohacki **
- and** Joe Lapka**

- 29 August 2001

- United States Environmental Protection Agency
- Office of Transportation and Air Quality

## Purpose -- Provide advance notice of upcoming fees rule
Briefing covers:
Activities and industries covered by fees
EPA’s need to update fees regulation
Who will be covered
Proposed fee schedule
Fee waivers
Projected timeline for rulemaking

- Briefing covers:
- Activities and industries covered by fees
- EPA’s need to update fees regulation
- Who will be covered
- Proposed fee schedule
- Fee waivers
- Projected timeline for rulemaking

- Agenda

**Notes:**
Before Announcing Agenda:
Announce location of restrooms, vending machines, feel free to get up at any time.

Announce that there are people on the conference lines

Hold all detailed questions until the end of the presentation.  Questions for clarification acceptable at any time.

Ask callers to press the # key to indicate that they have a question

## Introduction

## Authority
CAA - Section 217

Independent Offices Appropriations Act

Office of Management and Budget Circular A-25

1992 fees rule
Light-duty cars and trucks
Heavy-duty vehicles and engines
On-road motorcycles

- CAA - Section 217
- Independent Offices Appropriations Act
- Office of Management and Budget Circular A-25
- 1992 fees rule
- Light-duty cars and trucks
- Heavy-duty vehicles and engines
- On-road motorcycles

- Establishment of Fees

## CAP2000 updated fees in 1999
Updated provisions for fees
Reflect changes in the costs of the compliance program

Fees amendment published March 7, 2000
OEMs and aftermarket conversion manufacturers
Fee waiver for small volume Alt. fueled vehicles for MY 2000-2003

- Updated provisions for fees
- Reflect changes in the costs of the compliance program
- Fees amendment published March 7, 2000
- OEMs and aftermarket conversion manufacturers
- Fee waiver for small volume Alt. fueled vehicles for MY 2000-2003

- Minor Amendments

## Need to Update the Fees Rule

## Increased costs due to:
New emissions standards
New compliance programs
Increased emphasis on heavy-duty in-use
Heavy-duty nonroad, marine, small nonroad, locomotives, recreational vehicles
Inflation and increased costs

- New emissions standards
- New compliance programs
- Increased emphasis on heavy-duty in-use
- Heavy-duty nonroad, marine, small nonroad, locomotives, recreational vehicles
- Inflation and increased costs

- Changes Since 1992

## Slide 8

**Notes:**
Put emphasis on things we have accomplished.

Talk about 1990 standards and how they have changed.

Despite our best efforts to keep our costs to a minimum, they have gone up

## Update the schedule of fees
Account for additional costs
Incorporate new compliance industries
Equity

Procedures for waivers, refunds, and payments remain largely the same

- Account for additional costs
- Incorporate new compliance industries
- Equity
- Procedures for waivers, refunds, and payments remain largely the same

- Effects of Proposed Rule

## Compliance Industries and Activities

## Current fees program applies to LD, HD, and MC industries

- Industries

- The proposed fees will apply to manufacturers and ICIs of all of the following:

- LD vehicles
- HD Hwy engines
- Locomotives
- Small nonroad engines
- Recreational vehicles

- Motorcycles
- HD nonroad engines
- Marine engines
- Large nonroad engines
- HD Hwy Evap

## Compliance Services:
Pre-production certification
Confirmatory testing
Certification compliance audits and investigations
SEA/Production line testing review
Laboratory correlation
In-use testing
Fuel Economy selection, testing, and labeling
Fuel Economy CAFE calculations
Review of credit averaging, banking, and trading

- Pre-production certification
- Confirmatory testing
- Certification compliance audits and investigations
- SEA/Production line testing review
- Laboratory correlation
- In-use testing
- Fuel Economy selection, testing, and labeling
- Fuel Economy CAFE calculations
- Review of credit averaging, banking, and trading

- Activities Currently
- Covered by Fees

## OTAQ services such as:
Development of regulations
Determination of emission factors
Air quality assessment
Inspection and maintenance programs

- Development of regulations
- Determination of emission factors
- Air quality assessment
- Inspection and maintenance programs

- Activities Not Currently Covered by Fees

## Draft Cost Studyand Fee Schedule

## Compliance related activities

Recoverable direct and indirect costs
Based on FY2001 OTAQ budget
Actual time spent on compliance activities

Industries grouped by services received
Cost per group divided by number of certificates

- Recoverable direct and indirect costs
- Based on FY2001 OTAQ budget
- Actual time spent on compliance activities
- Industries grouped by services received
- Cost per group divided by number of certificates

- Basis for the Fees

## Describes the method used to determine costs and set fees
Identifies compliance activities
Distinguishes between recoverable & nonrecoverable
Distinguishes between direct & indirect
Workforce and resource allocation
Breakdown of costs for each industry group
Calculates fees

- Identifies compliance activities
- Distinguishes between recoverable & nonrecoverable
- Distinguishes between direct & indirect
- Workforce and resource allocation
- Breakdown of costs for each industry group
- Calculates fees

- Draft Cost Study

**Notes:**
A draft version of the cost study will be available on September 12 and can be viewed by visiting the Fees Information Page.  The address for that page will be given to you at the end of the presentation.

## Draft Findings

- EPA Revised Costs by Fee Category

## Draft Proposed Fees

- *Amounts represent the fee per certificate

## Fee Waivers

## Part 1
Similar to current waiver
Reduce the fee to 1% of the retail sales value of all vehicles or engines under certificate
Available to all manufacturers
Vehicles for sale in the US
Considering expanding waiver provisions
Some reduction beyond the 1% waiver
Complete details available in the NPRM

- Similar to current waiver
- Reduce the fee to 1% of the retail sales value of all vehicles or engines under certificate
- Available to all manufacturers
- Vehicles for sale in the US
- Considering expanding waiver provisions
- Some reduction beyond the 1% waiver
- Complete details available in the NPRM

- Draft Partial Fee Waiver

## Potential Rulemaking Timeline

## Fees Rule Timeline

- Publish NPRM -- Fall, 2001
- NPRM comment period -- late Fall, 2001
- Promulgate final rule -- as early as August, 2002
- New fee schedule implemented -- as early as September, 2002
- New fees may apply to some MY 03 certificate applications received after the implementation date

## Visit the MVECP Fees Information Page at www.epa.gov/otaq/fees.htm
Announcements
Cost Study, NPRM
Existing and Proposed Rules

E-mail otaqfees@epa.gov

- Announcements
- Cost Study, NPRM
- Existing and Proposed Rules
- E-mail otaqfees@epa.gov

- Additional Information

## Dan Harrison
phone: 734-214-4281
e-mail: harrison.dan@epa.gov
Lynn Sohacki
phone: 734-214-4851
e-mail: sohacki.lynn@epa.gov
Trina Vallion
phone: 734-214-4449
e-mail: vallion.trina@epa.gov

- phone: 734-214-4281
- e-mail: harrison.dan@epa.gov
- Lynn Sohacki
- phone: 734-214-4851
- e-mail: sohacki.lynn@epa.gov
- Trina Vallion
- phone: 734-214-4449
- e-mail: vallion.trina@epa.gov

- Contact Information

## Questions