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[House Report 115-1073]
[From the U.S. Government Publishing Office]

115th Congress     }                                 {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                 {       115-1073

======================================================================

 
         RECOGNIZING THE PROTECTION OF MOTORSPORTS ACT OF 2017

                                _______
                                

 December 11, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Walden, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 350]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 350) to exclude vehicles used solely for 
competition from certain provisions of the Clean Air Act, and 
for other purposes, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Committee Action.................................................     2
Committee Votes..................................................     2
Oversight Findings and Recommendations...........................     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Congressional Budget Office Estimate.............................     5
Federal Mandates Statement.......................................     8
Statement of General Performance Goals and Objectives............     8
Duplication of Federal Programs..................................     8
Committee Cost Estimate..........................................     8
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     8
Disclosure of Directed Rule Makings..............................     8
Advisory Committee Statement.....................................     8
Applicability to Legislative Branch..............................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     9
Dissenting Views.................................................    14

                          Purpose and Summary

    H.R. 350, Recognizing the Protection of Motorsports Act of 
2017, was introduced by Representative Patrick McHenry (R-NC) 
on January 6, 2017. It would clarify that the anti-tampering 
provisions in the Clean Air Act do not apply to motor vehicles 
used exclusively for competition.

                  Background and Need for Legislation

    Congress did not intend for racing vehicles to be regulated 
as ``motor vehicles'' under title II of the Clean Air Act 
(CAA).\1\ Accordingly, the Environmental Protection Agency 
(EPA) has never taken an enforcement action with regard to EPA 
certified vehicles modified solely for racing. However, on July 
13, 2015, the EPA's proposed rule on medium- and heavy-duty 
truck greenhouse gas emissions standards included provisions 
that would have reversed the agency's longstanding practice 
allowing for the modification of vehicles to be used solely for 
competition. After receiving public comment on the proposed 
rule, the EPA decided to eliminate this language from the final 
rule, but in doing so asserted it to be a restatement of the 
agency's position, leaving a cloud of legal uncertainty over 
the competitive racing industry. H.R. 350 clarifies that the 
CAA Title II anti-tampering provisions applicable to motor 
vehicles do not apply to vehicles used solely for competition.
---------------------------------------------------------------------------
    \1\House Consideration of the Report of the Conference Committee 
(Dec. 18, 1970), reprinted in A Legislative History of the Clean Air 
Act Amendments of 1970, Vol. 1, U.S. GAO (1974), Serial No. 93-18, at 
p. 117
---------------------------------------------------------------------------

                            Committee Action

    On September 13, 2017, the Subcommittee on Environment held 
a hearing on H.R. 350. The Subcommittee received testimony 
from:
          Ryan Parker, President and CEO, Endicott Clay 
        Products;
          Vincent Brisini, Director of Environmental Affairs, 
        Olympus Power, LLC, on behalf of Anthracite Region 
        Independent Power Producers Association (ARIPPA);
          Frank Moore, President, Hardy Manufacturing Company, 
        Inc.;
          Steve Page, President and General Manager, Sonoma 
        Raceway;
          Alexandra E. Teitz, Principal, AT Strategies, LLC, on 
        behalf of Sierra Club; and
          Rebecca Bascom, Professor, Penn State College of 
        Medicine, on behalf of American Thoracic Society.
    On November 15, 2017, the Subcommittee on Environment met 
in open markup session and forwarded H.R. 350, without 
amendment, to the full Committee by a record vote of 13 yeas 
and 9 nays. On December 6, 2017, the full Committee on Energy 
and Commerce met in open markup session and ordered H.R. 350, 
without amendment, favorably reported to the House by a record 
vote of 33 yeas and 21 nays.

                            Committee Votes

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. The following reflects the record votes taken during 
the Committee consideration:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held a hearing and made findings that 
are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 350 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, the following is 
the cost estimate provided by the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 22, 2018.
Hon. Greg Walden,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 350, the RPM Act 
of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 350--RPM Act of 2017

    Summary: H.R. 350 would amend the Clean Air Act (CAA) to 
prohibit the Environmental Protection Agency (EPA) from 
regulating emissions from motor vehicles that are modified 
solely for motorsports competition. Specifically, H.R. 350 
would amend the CAA's definition of a motor vehicle to exclude 
vehicles that are modified solely for competition, and it would 
make the manufacture, sale, installation, and use of ``defeat 
devices'' that bypass emissions controls legal only for 
competitive motorsports. CBO estimates that the agency would 
spend about $500,000 over the 2018-2022 period to revise 
regulations; such spending would be subject to the availability 
of appropriated funds.
    Because the bill would shift the legal focus of enforcement 
cases to how a motor vehicle is ultimately used, it would 
significantly increase the burden on EPA to prove that 
manufacturers and sellers are complicit in the use of defeat 
devices for purposes other than competition. As a result, CBO 
estimates that enacting H.R. 350 would reduce penalties (which 
are recorded as revenues) by $18 million over the 2018-2027 
period.
    Because enacting H.R. 350 would affect revenues, pay-as-
you-go procedures apply. Enacting the bill would not affect 
direct spending.
    CBO estimates that enacting H.R. 350 would not affect 
direct spending and would not increase on-budget deficits by 
more than $5 billion in any of the four consecutive 10-year 
periods beginning in 2028.
    H.R. 350 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 350 is shown in the following table. 
The costs of this legislation fall within budget function 300 
(natural resources and environment).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  DECREASES IN REVENUES
 
Revenues..........................................       0      -2      -2      -2      -2      -2      -2      -2      -2      -2         -8        -18
--------------------------------------------------------------------------------------------------------------------------------------------------------
In addition CBO estimates that implementing the bill would cost less than $500,000, subject to the availability of appropriated funds.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
350 will be enacted near the end of 2018.

Spending subject to appropriation

    To implement the bill, EPA also would need to revise some 
regulations. Using information from EPA, CBO estimates that the 
agency would spend about $500,000 over the 2018-2022 period to 
revise regulations; such spending would be subject to the 
availability of appropriated funds. That amount includes 
personnel and contract costs required to develop and issue a 
proposal, to receive and respond to public comments, and to 
issue a final rule for the revision.

Revenues

    Under the CAA, EPA prescribes emissions standards for new 
motor vehicles and engines and may enforce civil penalties 
against any motor vehicle manufacturer, seller, or person who 
illegally modifies (or tampers with) a vehicle to bypass its 
emissions control system.
    H.R. 350 would amend the CAA to prohibit EPA from 
regulating emissions from motor vehicles that are modified 
solely for motorsports competition. Under current law, EPA may 
impose penalties against any company that manufactures or sells 
illegal parts, such as defeat devices, that can bypass 
emissions controls. H.R. 350 would amend the CAA's definition 
of a motor vehicle to exclude vehicles that are modified solely 
for competition, and it would make the manufacture, sale, 
installation, and use of defeat devices legal for competitive 
motorsports.
    According to officials in EPA's Office of Civil 
Enforcement, the agency currently focuses its efforts on 
manufacturers and sellers of defeat devices that affect 
emissions from vehicles that are operated on public roads. 
Although, EPA has the legal authority under current law to 
pursue such violations for any motor vehicle--including those 
converted for use in motorsports--the agency has historically 
neither enforced that rule nor collected penalties from the 
motorsports industry.
    Because the bill would shift the legal focus of enforcement 
cases to how a motor vehicle is ultimately used, it would 
significantly increase the burden on EPA's enforcement 
officials to prove that manufacturers and sellers are complicit 
in the use of defeat devices for purposes other than 
competition.
    Based on information from EPA, CBO expects that enacting 
the bill would probably lead to the agency shifting enforcement 
resources away from manufacturers and sellers and toward 
individual users and installers of defeat devices that are not 
used in competition and for which end-use violations would be 
easier to demonstrate under law.
    Over the 2013-2017 period, EPA settled 13 cases--mostly 
against manufacturers--for CAA violations related to defeat 
devices, resulting in the collection of $14 million in 
penalties. Over the same period, the agency collected a nominal 
amount in penalties from installers and users of defeat 
devices. CBO estimates that enactment of H.R. 350 would reduce 
collections by about $2 million a year over the 2018-2027 
period, because the agency's enforcement would no longer be 
focused on manufacturers. The effect on collections in any 
particular year during that period could be higher or lower 
depending the details of individual cases that occur in each 
year.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in revenues that are subject to those 
pay-as-you-go procedures are shown in the following table.

        CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 350, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON DECEMBER 6, 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact....................       0      -2      -2      -2      -2      -2      -2      -2      -2      -2         -8        -18
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting H.R. 350 would not affect direct 
spending and would not increase on-budget deficits by more than 
$5 billion in any of the four consecutive 10-year periods 
beginning in 2028.
    Mandates: H.R. 350 contains no intergovernmental or 
private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Costs: Jon Sperl; Mandates: 
Zach Byrum.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to clarify 
that the anti-tampering provisions in the Clean Air Act do not 
apply to motor vehicles used exclusively for competition.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 350 is known to be duplicative of another Federal program, 
including any program that was included in a report to Congress 
pursuant to section 21 of Public Law 111-139 or the most recent 
Catalog of Federal Domestic Assistance.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 350 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, the Committee finds 
that the following directed rule makings are contained in H.R. 
350:
           Section 5 requires the Administrator of the 
        Environmental Protection Agency to finalize any 
        regulations necessary to implement the amendments made 
        by H.R. 350.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section provides the short title of the ``Recognizing 
the Protection of Motorsports Act of 2017.''

Section 2. Findings

    This section states four congressional findings related to 
vehicles used solely for competition and EPA regulatory actions 
under the Clean Air Act.

Section 3. Exclusion of vehicles used solely for competition from the 
        anti-tampering provisions of the Clean Air Act

    This section amends section 203 of the CAA to allow any 
action with respect to any device or element of design if the 
action is for the purpose of modifying a motor vehicle into a 
vehicle to be used solely for competition.

Section 4. Exclusion of vehicles used solely for competition from the 
        definition of motor vehicle in the Clean Air Act

    This section amends section 216 to exclude vehicles used 
solely for competition from the definition of ``motor vehicle'' 
in the CAA.

Section 5. Implementation

    This section directs the Administrator of the EPA to 
finalize any regulations necessary to implement the amendments 
made by this Act not later than 12 months after the date of 
enactment of this Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                             CLEAN AIR ACT

           *       *       *       *       *       *       *
TITLE II--EMISSION STANDARDS FOR MOVING SOURCES

           *       *       *       *       *       *       *

Part A--Motor Vehicle Emission and Fuel Standards

           *       *       *       *       *       *       *

                            prohibited acts

  Sec. 203. (a) The following acts and the causing thereof are 
prohibited--
          (1) in the case of a manufacturer of new motor 
        vehicles or new motor vehicle engines for distribution 
        in commerce, the sale, or the offering for sale, or the 
        introduction, or delivery for introduction, into 
        commerce, or (in the case of any person, except as 
        provided by regulation of the Administrator), the 
        importation into the United States, of any new motor 
        vehicle or new motor vehicle engine, manufactured after 
        the effective date of regulations under this part which 
        are applicable to such vehicle or engine unless such 
        vehicle or engine is covered by a certificate of 
        conformity issued (and in effect) under regulations 
        prescribed under this part or part C in the case of 
        clean-fuel vehicles (except as provided in subsection 
        (b));
          (2)(A) for any person to fail or refuse to permit 
        access to or copying of records or to fail to make 
        reports or provide information required under section 
        208;
          (B) for any person to fail or refuse to permit entry, 
        testing or inspection authorized under section 206(c) 
        or section 208;
          (C) for any person to fail or refuse to perform 
        tests, or have tests performed as required under 
        section 208;
          (D) for any manufacturer to fail to make information 
        available as provided by regulation under section 
        202(m)(5);
          (3)(A) for any person to remove or render inoperative 
        any device or element of design installed on or in a 
        motor vehicle or motor vehicle engine in compliance 
        with regulations under this title prior to its sale and 
        delivery to the ultimate purchaser, or for any person 
        knowingly to remove or render inoperative any such 
        device or element of design after such sale and 
        delivery to the ultimate purchaser; or
          (B) for any person to manufacture or sell, or offer 
        to sell, or install, any part or component intended for 
        use with, or as part of, any motor vehicle or motor 
        vehicle engine, where a principal effect of the part or 
        component is to bypass, defeat, or render inoperative 
        any device or element of design installed on or in a 
        motor vehicle or motor vehicle engine in compliance 
        with regulations under this title, and where the person 
        knows or should know that such part or component is 
        being offered for sale or installed for such use or put 
        to such use; or
          (4) for any manufacturer of a new motor vehicle or 
        new motor vehicle engine subject to standards 
        prescribed under section 202 or Part C--
                  (A) to sell or lease any such vehicle or 
                engine unless such manufacturer has complied 
                with (i) the requirements of section 207 (a) 
                and (b) with respect to such vehicle or engine, 
                and unless a label or tag is affixed to such 
                vehicle or engine in accordance with section 
                207(c)(3), or (ii) the corresponding 
                requirements of part C in the case of clean 
                fuel vehicles unless the manufacturer has 
                complied with the corresponding requirements of 
                part C
                  (B) to fail or refuse to comply with the 
                requirements of section 207 (c) or (e), or the 
                corresponding requirements of part C in the 
                case of clean fuel vehicles
                  (C) except as provided in subsection (c)(3) 
                of section 207 and the corresponding 
                requirements of part C in the case of clean 
                fuel vehicles, to provide directly or 
                indirectly in any communication to the ultimate 
                purchaser or any subsequent purchaser that the 
                coverage of any warranty under this Act is 
                conditioned upon use of any part, component, or 
                system manufactured by such manufacturer or any 
                person acting for such manufacturer or under 
                his control, or conditioned upon service 
                performed by any such person, or
                  (D) to fail or refuse to comply with the 
                terms and conditions of the warranty under 
                section 207 (a) or (b) or the corresponding 
                requirements of part C in the case of clean 
                fuel vehicles with respect to any vehicle; or
          (5) for any person to violate section 218, 219, or 
        part C of this title or any regulations under section 
        218, 219, or part C.
No action with respect to any element of design referred to in 
paragraph (3) (including any adjustment or alteration of such 
element) shall be treated as a prohibited act under such 
paragraph (3) if such action is in accordance with section 215. 
Nothing in paragraph (3) shall be construed to require the use 
of manufacturer parts in maintaining or repairing any motor 
vehicle or motor vehicle engine. For the purposes of the 
preceding sentence, the term ``manufacturer parts'' means, with 
respect to a motor vehicle engine, parts produced or sold by 
the manufacturer of the motor vehicle or motor vehicle engine. 
No action with respect to any device or element of design 
referred to in paragraph (3) shall be treated as a prohibited 
act under that paragraph if (i) the action is for the purpose 
of repair or replacement of the device or element, or is a 
necessary and temporary procedure to repair or replace any 
other item and the device or element is replaced upon 
completion of the procedure, and (ii) such action thereafter 
results in the proper functioning of the device or element 
referred to in paragraph (3). No action with respect to any 
device or element of design referred to in paragraph (3) shall 
be treated as a prohibited act under that paragraph if the 
action is for the purpose of a conversion of a motor vehicle 
for use of a clean alternative fuel (as defined in this title) 
and if such vehicle complies with the applicable standard under 
section 202 when operating on such fuel, and if in the case of 
a clean alternative fuel vehicle (as defined by rule by the 
Administrator), the device or element is replaced upon 
completion of the conversion procedure and such action results 
in proper functioning of the device or element when the motor 
vehicle operates on conventional fuel. No action with respect 
to any device or element of design referred to in paragraph (3) 
shall be treated as a prohibited act under that paragraph if 
the action is for the purpose of modifying a motor vehicle into 
a vehicle to be used solely for competition.
  (b)(1) The Administrator may exempt any new motor vehicle or 
new motor vehicle engine from subsection (a), upon such terms 
and conditions as he may find necessary for the purpose of 
research, investigations, studies, demonstrations, or training, 
or for reasons of national security.
  (2) A new motor vehicle or new motor vehicle engine offered 
for importation or imported by any person in violation of 
subsection (a) shall be refused admission into the United 
States, but the Secretary of the Treasury and the Administrator 
may, by joint regulation, provide for deferring final 
determination as to admission and authorizing the delivery of 
such a motor vehicle or engine offered for import to the owner 
or consignee thereof upon such terms and conditions (including 
the furnishing of a bond) as may appear to them appropriate to 
insure that any such motor vehicle or engine will be brought 
into conformity with the standards, requirements, and 
limitations applicable to it under this part. The Secretary of 
the Treasury shall, if a motor vehicle or engine is finally 
refused admission under this paragraph, cause disposition 
thereof in accordance with the customs laws unless it is 
exported, under regulations prescribed by such Secretary, 
within ninety days of the date of notice of such refusal or 
such additional time as may be permitted pursuant to such 
regulations, except that disposition in accordance with the 
customs laws may not be made in such manner as may result, 
directly or indirectly, in the sale, to the ultimate consumer, 
of a new motor vehicle or new motor vehicle engine that fails 
to comply with applicable standards of the Administrator under 
this part.
  (3) A new motor vehicle or new motor vehicle engine intended 
solely for export, and so labeled or tagged on the outside of 
the container and on the vehicle or engine itself, shall be 
subject to the provisions of subsection (a), except that if the 
country which is to receive such vehicle or engine has emission 
standards which differ from the standards prescribed under 
section 202, then such vehicle or engine shall comply with the 
standards of such country which is to receive such vehicle or 
engine.

           *       *       *       *       *       *       *

                         definitions for part a

  Sec. 216. As used in this part--
          (1) The term ``manufacturer'' as used in sections 
        202, 203, 206, 207, and 208 means any person engaged in 
        the manufacturing or assembling of new motor vehicles, 
        new motor vehicle engines, new nonroad vehicles or new 
        nonroad engines, or importing such vehicles or engines 
        for resale, or who acts for and is under the control of 
        any such person in connection with the distribution of 
        new motor vehicles, new motor vehicle engines, new 
        nonroad vehicles or new nonroad engines, but shall not 
        include any dealer with respect to new motor vehicles, 
        new motor vehicle engines, new nonroad vehicles or new 
        nonroad engines received by him in commerce.
          (2) The term ``motor vehicle'' means any self-
        propelled vehicle designed for transporting persons or 
        property on a street or highway[.] and that is not a 
        vehicle used solely for competition, including any 
        vehicle so used that was converted from a motor 
        vehicle.
          (3) Except with respect to vehicles or engines 
        imported or offered for importation, the term ``new 
        motor vehicle'' means a motor vehicle the equitable or 
        legal title to which has never been transferred to an 
        ultimate purchaser; and the term ``new motor vehicle 
        engine'' means an engine in a new motor vehicle or a 
        motor vehicle engine the equitable or legal title to 
        which has never been transferred to the ultimate 
        purchaser; and with respect to imported vehicles or 
        engines, such terms mean a motor vehicle and engine, 
        respectively, manufactured after the effective date of 
        a regulation issued under section 202 which is 
        applicable to such vehicle or engine (or which would be 
        applicable to such vehicle or engine had it been 
        manufactured for importation into the United States).
          (4) The term ``dealer'' means any person who is 
        engaged in the sale or the distribution of new motor 
        vehicles or new motor vehicle engines to the ultimate 
        purchaser.
          (5) The term ``ultimate purchaser'' means, with 
        respect to any new motor vehicle or new motor vehicle 
        engine, the first person who in good faith purchases 
        such new motor vehicle or new engine for purposes other 
        than resale.
          (6) The term ``commerce'' means (A) commerce between 
        any place in any State and any place outside thereof; 
        and (B) commerce wholly within the District of 
        Columbia.
          (7) Vehicle curb weight, gross vehicle weight rating, 
        light-duty truck, light-duty vehicle, and loaded 
        vehicle weight.--The terms ``vehicle curb weight'', 
        ``gross vehicle weight rating'' (GVWR), ``light-duty 
        truck'' (LDT), light-duty vehicle, and ``loaded vehicle 
        weight'' (LVW) have the meaning provided in regulations 
        promulgated by the Administrator and in effect as of 
        the enactment of the Clean Air Act Amendments of 1990. 
        The abbreviations in parentheses corresponding to any 
        term referred to in this paragraph shall have the same 
        meaning as the corresponding term.
          (8) Test weight.--The term ``test weight'' and the 
        abbreviation ``tw'' mean the vehicle curb weight added 
        to the gross vehicle weight rating (gvwr) and divided 
        by 2.
          (9) Motor vehicle or engine part manufacturer.--The 
        term ``motor vehicle or engine part manufacturer'' as 
        used in sections 207 and 208 means any person engaged 
        in the manufacturing, assembling or rebuilding of any 
        device, system, part, component or element of design 
        which is installed in or on motor vehicles or motor 
        vehicle engines.
          (10) Nonroad engine.--The term ``nonroad engine'' 
        means an internal combustion engine (including the fuel 
        system) that is not used in a motor vehicle or a 
        vehicle used solely for competition, or that is not 
        subject to standards promulgated under section 111 or 
        section 202.
          (11) Nonroad vehicle.--The term ``nonroad vehicle'' 
        means a vehicle that is powered by a nonroad engine and 
        that is not a motor vehicle or a vehicle used solely 
        for competition.

           *       *       *       *       *       *       *

                            DISSENTING VIEWS

    H.R. 350, the Recognizing the Protection of Motorsports 
(RPM) Act of 2017, creates a large loophole in the Clean Air 
Act (CAA) that could result in a massive increase in dangerous 
air pollution by modified vehicles that are used on public 
roadways. H.R. 350 undermines the Environmental Protection 
Agency's (EPA) enforcement authority to prevent widespread 
tampering with the emission control equipment of motor 
vehicles.

        AMATEUR RACING IS ALREADY PROTECTED BY THE CLEAN AIR ACT

    Amateur racing is a popular, long-standing activity 
throughout the nation. The CAA establishes no legal barrier to 
racing a motor vehicle. However, many amateur racers frequently 
modify their vehicles for use as race cars by installing 
aftermarket products to improve a vehicle's racing performance. 
Some of these products are emissions control defeat devices 
that disable or impair the proper function of a vehicle's 
emissions controls, resulting in increased pollution; these 
would be prohibited under the CAA. As a practical matter, 
operation of these modified vehicles is not always limited to 
the race track, meaning they are also emitting illegal levels 
of pollution when they are driven on streets and highways.
    The CAA requires EPA to certify that vehicles, and engines 
meet specific emissions standards designed to control dangerous 
air pollution--including particulate matter, nitrogen oxides, 
carbon monoxide, volatile organic compounds--and prohibits 
anyone from removing or disabling these emissions control 
systems, or from selling or installing parts that would 
``bypass, defeat, or render inoperative'' a vehicle's emissions 
controls.\1\ Vehicle manufacturers have invested millions of 
dollars and many years in systems to reduce emissions and 
improve the environmental performance of the vehicles on our 
roadways. The CAA exempts figni such requirements vehicles 
manufactured and used solely for professional competition.\2\
---------------------------------------------------------------------------
    \1\The Clean Air Act Sec. 203(b)(3).
    \2\40 CFR Sec. Sec. 1042620 and 1068.235.
---------------------------------------------------------------------------

 H.R. 350 UNNECESSARILY CREATES A CLEAN AIR LOOPHOLE THAT COULD RESULT 
                   IN TREMENDOUS AMOUNTS OF POLLUTION

    The RPM Act goes much further than ``clarifying'' the law 
with respect to vehicles that have been modified into dedicated 
racing vehicles with the installation of a defeat device. The 
bill creates an exclusion from the Act's anti-tampering 
prohibition. It also amends the definition of a motor vehicle 
in section 216 to exclude vehicles ``used solely for 
competition'' and vehicles ``converted from a motor vehicle.''
    Proponents argue that Congress must pass legislation to 
protect amateur racing from EPA enforcement against individuals 
who have converted their vehicles into race cars. These 
concerns are misplaced. EPA has never enforced this provision 
of the CAA against individual vehicle owners, nor does it have 
sufficient resources to make this an enforcement priority. EPA 
has initiated enforcement cases against manufacturers of defeat 
devices for use in motor vehicles not exclusively used for 
racing and continue to operate on public roads. Such uses of 
defeat devices and modified vehicles are not, and should not, 
be permitted.
    While we support amateur racing, we cannot support a bill 
that would enable the manufacture, sale, installation or use of 
defeat devices for vehicles that continue to operate on public 
roadways. Any vehicle modified with a defeat device for the 
purpose of conversion to a dedicated racing vehicle should no 
longer be legal to operate on the road.
    EPA reviewed H.R. 350 and indicated that it created 
ambiguity in the CAA's definition of a ``motor vehicle'' and, 
if enacted, the bill would undermine its authority to control 
the illegal sale of aftermarket defeat devices and keep 
polluting vehicles off the public roads. EPA's technical 
assistance also requested changes to the bill, clarifying that 
the only motor vehicles eligible for an exemption from the 
CAA's anti-tampering provisions are those that have been 
permanently converted to competition use only.
    Ultimately, the RPM Act creates a loophole in the CAA that 
blocks EPA's ability to enforce against those manufacturing or 
selling emissions control defeat devices, regardless of how 
they are used. The bill grants immunity to manufacturers of 
defeat devices, so long as the manufacturer says the product is 
intended for racing. But, the intent of the manufacturer is not 
predictive of, nor does it impact how consumers will use these 
products. Once they are installed EPA will have little ability 
to penalize those using a product beyond its intent. By 
preventing EPA from enforcing against the manufacture and sale 
of defeat devices, this bill takes away an important tool for 
stopping illegal vehicle pollution.
    Without this EPA enforcement authority, there is no 
assurance that motor vehicles modified with defeat devices 
would, in fact, be used solely for competition. Previous EPA 
enforcement cases suggest that marketing and sales of defeat 
devices can be widespread and difficult to control, and the 
additional pollution released is significant. In fact, this is 
the same authority EPA recently used to detect that a company, 
H&S Performance, had been manufacturing and selling products 
resulted in nearly double the illegal NOx emissions of the 
Volkswagen diesel scandal.\3\ EPA must retain meaningful 
enforcement authority to prevent widespread tampering that will 
undermine air quality and harm public health.
---------------------------------------------------------------------------
    \3\Union of Concerned Scientists, Is Your Representative Setting Us 
Up for Another Dieselgate? (Oct. 5, 2017) (blog.ucsusa.org/jonna-
hamilton/is-your-representative-setting-us-up-for-another-dieselgate).
---------------------------------------------------------------------------

         CONGRESS CAN PROTECT AMATEUR RACERS AND PUBLIC HEALTH

    At the December 6, 2017, Full Committee Markup, 
Representative Dingell (D-MI) offered an amendment to ensure 
vehicles modified for racing remained off the public roadways, 
and that EPA retains necessary enforcement authority against 
bad actor.\4\ Representative Dingell's amendment was consistent 
with technical assistance provided by EPA. The amendment also 
reflected witness testimony and bipartisan Members' statements 
agreeing that any CAA exemption should only apply to dedicated 
racing vehicles, not to vehicles used on public roadways.\5\ 
However, the amendment was not accepted.
---------------------------------------------------------------------------
    \4\House Committee on Energy and Commerce, Full Committee Markup of 
H.R. 350, The Recognizing the Protection of Motorsports Act of 2017, 
115th Cong, Dec. 6, 2017.
    \5\House Committee on Energy and Commerce, Subcommittee on 
Environment, Hearing on Big Relief for Small Business: Legislation 
Reducing Regulatory Burdens on Small Manufacturers and Other Job 
Creators, 115th Cong, Sept. 13, 2017.
---------------------------------------------------------------------------
    It is unfortunate the Majority insisted on rushing H.R. 350 
through the Committee process before a compromise could be 
reached with all interested Members and stakeholders. In its 
current form, the RPM Act does not provide the narrowly 
tailored CAA exemption the amateur racing community requested. 
Rather, it creates a massive loophole in the law. H.R. 350 will 
lead to the legalization of widespread vehicle tampering, and 
only serves to significantly increase air pollution. We believe 
there is a reasonable compromise that would enable an amateur 
racer to convert a motor vehicle into a dedicated racing 
vehicle without facilitating widespread violation of the CAA. 
We remain open to finding that compromise.
    For these reasons, we oppose H.R. 350 in its current form.

                                   Frank Pallone, Jr.,
                                           Ranking Member, Committee on 
                                               Energy and Commerce.
                                   Paul D. Tonko,
                                           Ranking Member, Subcommittee 
                                               on Environment.

                                  [all]
```