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[House Report 109-537]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-537

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 AMENDING CHAPTER 301 OF TITLE 49, UNITED STATES CODE, TO ESTABLISH A 
  NATIONAL TIRE FUEL EFFICIENCY CONSUMER INFORMATION PROGRAM, AND FOR 
                             OTHER PURPOSES

                                _______
                                

 June 28, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Barton of Texas, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5632]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5632) to amend Chapter 301 of title 49, United 
States Code, to establish a national tire fuel efficiency 
consumer information program, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Statement of General Performance Goals and Objectives............     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Federal Mandates Statement.......................................     5
Advisory Committee Statement.....................................     6
Constitutional Authority Statement...............................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     7

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.

  (a) In General.--Chapter 301 of title 49, United States Code, is 
amended by inserting after section 30123 the following new section:

``Sec. 30123A. Tire Fuel Efficiency Consumer Information

  ``(a) Rulemaking.--(1) Not later than 18 months after the date of 
enactment of this section, the Secretary of Transportation shall, after 
notice and opportunity for comment, promulgate rules establishing a 
national tire fuel efficiency consumer information program for tires 
designed for use on motor vehicles to educate consumers about the 
effect of tires on automobile fuel efficiency.
  ``(2) The rulemaking shall include each of the following:
          ``(A) A national tire fuel efficiency rating system for motor 
        vehicle tires to assist consumers in making more educated tire 
        purchasing decisions.
          ``(B) Requirements for providing information to consumers, 
        including information at the point of sale and other potential 
        information dissemination methods, including the internet.
          ``(C) Specifications for test methods for manufacturers to 
        use in assessing and rating tires to avoid variation among test 
        equipment and manufacturers.
          ``(D) A national tire maintenance consumer education program 
        including, information on tire inflation pressure, alignment, 
        rotation, and tread wear to maximize fuel efficiency.
  ``(3) This section shall not apply to tires excluded from coverage 
under section 575.104(c) of title 49, Code of Federal Regulations, as 
in effect on date of enactment of this section.
  ``(b) Consultation.--The Secretary shall consult with the Secretary 
of Energy and the Administrator of the Environmental Protection Agency 
on the means of conveying tire fuel efficiency consumer information.
  ``(c) Report to Congress.--The Secretary shall conduct periodic 
assessments of the rules promulgated under this section to determine 
the utility of such rules to consumers, the level of cooperation by 
industry, and the contribution to national goals pertaining to energy 
consumption. The Secretary shall transmit periodic reports detailing 
the findings of such assessments to the Energy and Commerce Committee 
of the House of Representatives and the Commerce, Science, and 
Transportation Committee of the Senate.
  ``(d) Tire Marking.--The Secretary shall not require permanent 
labeling of any kind on a tire for the purpose of tire fuel efficiency 
information.
  ``(e) Preemption.--Nothing in this section shall prohibit a State or 
political subdivision of a State from enforcing a law or regulation on 
tire fuel efficiency consumer information in effect on January 1, 2006. 
After a requirement under this section is in effect, a State or 
political subdivision of a State may adopt or enforce a law or 
regulation on tire fuel efficiency consumer information enacted after 
January 1, 2006, only if the law or regulation is identical to that 
requirement. Nothing in this section shall be construed to preempt a 
State or political subdivision of a State from regulating the fuel 
efficiency of tires not otherwise preempted under this chapter.''.
  (b) Enforcement.--Section 30165(a) of such chapter is amended by 
adding at the end the following:
          ``(4) Section 30123a.--Any person who fails to comply with 
        the national tire fuel efficiency consumer information program 
        under section 30123A is liable to the United States Government 
        for a civil penalty of not more than $50,000 for each 
        violation.''.
  (c) Table of Contents.--The table of contents for chapter 301 of 
title 49, United States Code, is amended by adding the following new 
item after the item relating to section 30123:

``30123A. Tire fuel efficiency consumer information.''.

                          Purpose and Summary

    The purpose of H.R. 5632 is to establish a national tire 
fuel efficiency consumer information campaign to educate 
consumers about the effect of replacement tires on automobile 
fuel efficiency.

                  Background and Need for Legislation

    Tires affect vehicle fuel economy mainly through ``rolling 
resistance.'' The more surface area of a tire that makes 
contact with the road creates more friction, which creates more 
resistance, decreasing fuel economy. Therefore, properly 
inflated tires achieve less rolling resistance and higher fuel 
economy than under inflated ones.
    Every year Americans spend approximately $20 billion 
replacing some 200 million passenger tires. Motorists choose 
among tires varying in price, style, and many aspects of 
performance. The tires they purchase will affect not only the 
handling, traction, ride comfort, and appearance of their cars, 
but also the fuel economy.
    According to a 2006 National Academy of Sciences report, a 
10 percent reduction in average rolling resistance, if achieved 
for the population of passenger vehicles using replacement 
tires, could produce a 1 to 2 percent increase in the fuel 
economy of these vehicles. About 80 percent of passenger cars 
and light trucks are equipped with replacement tires. Holding 
the number of miles traveled constant, a 1 to 2 percent 
increase in the fuel economy of these vehicles would save 
approximately 1 to 2 billion gallons of fuel per year of the 
130 billion gallons consumed by the entire passenger vehicle 
fleet. This fuel savings is equivalent to the fuel saved by 
taking 2 million to 4 million cars and light trucks off the 
road.
    Today, however, consumers have little, if any, convenient 
way of determining how tire choices can affect vehicle fuel 
economy. H.R. 5632 would remedy that problem by creating a 
national tire fuel efficiency campaign to educate consumers 
about the fuel efficiency qualities of different replacement 
tires.

                                Hearings

    The Committee on Energy and Commerce has not held hearings 
on the legislation.

                        Committee Consideration

    On Tuesday, June 20, 2006, the Committee on Energy and 
Commerce met in open markup session and ordered H.R. 5632 
reported to the House, amended, by a voice vote, a quorum being 
present.

                            Committee Votes

    There were no record votes taken in connection with 
ordering H.R. 5632 reported. A motion by Mr. Barton to order 
H.R. 5632 reported to the House, amended, was agreed to by a 
voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has not held oversight 
or legislative hearings on this legislation.

         Statement of General Performance Goals and Objectives

    The goal of H.R. 5632 is to establish a national tire fuel 
efficiency consumer information campaign to educate consumers 
about the effect of replacement tires on automobile fuel 
efficiency.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5632, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                        Committee Cost Estimate

    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.

                  Congressional Budget Office Estimate

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

                                                     June 23, 2006.
Hon. Joe Barton,
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. 5632, a bill to 
amend chapter 301 of title 49, United States Code, to establish 
a national tire fuel efficiency consumer information program, 
and for other purposes.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Gregory 
Waring (for Federal costs), Lisa Ramirez-Branum (for the State 
and local impact), and Craig Cammarata (for the impact on the 
private sector).
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 5632--A bill to amend chapter 301 of title 49, United States Code, 
        to establish a national tire fuel efficiency consumer 
        information program, and for other purposes

    CBO estimates that implementing H.R. 5632 would have no 
significant impact on federal spending. Enacting the bill would 
not affect direct spending, and would have an insignificant 
impact on revenues.
    Under the bill, the Secretary of Transportation would 
require tire manufacturers to inform consumers about the 
effects of tire maintenance on a vehicle's fuel economy. In 
addition, the Secretary would create a fuel efficiency rating 
system for tires and set uniform testing procedures for tire 
manufacturers to rate the fuel efficiency of their products.
    The National Highway Traffic Safety Administration (NHTSA), 
within the Department of Transportation, regulates and tests 
vehicles and equipment for highway safety and administers a 
fuel economy program. Based on the cost of NHTSA's automotive 
safety regulations program, CBO estimates that implementing the 
new tire rating program would cost about $3 million over the 
2007-2011 period, assuming the availability of appropriated 
funds. CBO estimates that any fines assessed on tire 
manufacturers for noncompliance would not have a significant 
impact on federal revenues.
    H.R. 5632 would preempt state and local authority to 
implement their own consumer information laws or regulations on 
fuel efficiency of tires; that preemption constitutes an 
intergovernmental mandate as defined in the Unfunded Mandates 
Reform Act (UMRA). CBO estimates, however, that the preemption 
would impose insignificant additional costs on state, local, or 
tribal governments that would be well below the threshold 
established in UMRA ($64 million in 2006, adjusted annually for 
inflation).
    H.R. 5632 would impose private-sector mandates, as defined 
in UMRA, on manufacturers and retailers of motor vehicle tires. 
Based on information from government and industry sources, CBO 
estimates that the total direct cost of those mandates would 
fall below the annual threshold established by UMRA for 
private-sector mandates ($128 million in 2006, adjusted 
annually for inflation).
    The bill would direct the Secretary of Transportation to 
implement rules regarding a national fuel efficiency rating 
system for tires and the specifications for test methods that 
manufacturers must use in assessing and rating the fuel 
efficiency of tires. According to industry sources, the 
implementation costs for manufacturers associated with testing 
and rating tires could amount to about $35 million to cover the 
cost of capital investment in equipment, testing existing 
products, and the administrative cost of setting up compliance 
systems. In the year following implementation, industry sources 
estimate that the annual ongoing costs of compliance would fall 
significantly.
    The bill also would require tire retailers to provide 
consumers with information on the fuel efficiency rating of 
motor vehicle tires at the point of sale. The requirements of 
the mandate would depend upon future decisions made by the 
Secretary of Transportation during the rulemaking process. 
Industry and government sources suggest, however, that 
retailers may likely be required to provide information 
brochures to consumers or display some form of signage at the 
point of sale. According to industry sources, there are about 
40,000 tire retail outlets that may have to distribute 
information about the tire efficiency of tens of thousands of 
models of tire products. Further, those sources indicate that 
brochures could cost as much as 10 cents per copy. Because of 
the uncertainty regarding the future rulemaking by the 
Secretary, CBO cannot determine the cost of the mandate. Based 
on information from industry and government sources, however, 
CBO expects the costs of this mandate would be small relative 
to the annual threshold established by UMRA.
    The CBO staff contacts for this estimate are Gregory Waring 
(for Federal costs), Lisa Ramirez-Branum (for the state and 
local impact), and Craig Cammarata (for the impact on the 
private sector). This estimate was approved by Peter H. 
Fontaine, 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.

                      Advisory Committee Statement

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

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  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. Tire Fuel Efficiency Consumer Information.

    Section 1(a) creates a new section 30123A in Chapter 301 of 
title 49.
    ``Section 30123A. Tire Fuel Efficiency Consumer 
Information.''
    New section 30123A(a) requires the Secretary of 
Transportation (the Secretary) to create rules establishing a 
national tire fuel efficiency consumer information program for 
replacement tires used on motor vehicles. The rule must include 
(a) a national rating system for tires to assist consumers in 
making more educated purchasing decisions; (b) requirements for 
providing information to consumers, including at the point of 
sale and other dissemination methods; (c) specifications for 
test methods for tire manufacturers to use in assessing and 
rating tires; and (d) a national tire maintenance consumer 
education campaign, including tire inflation pressure, 
alignment, rotation, and tread wear. This rule shall not apply 
to tires excluded from coverage under 49 C.F.R. 575.104(c).
    New section 30123A(b) requires the Secretary to consult 
with the Secretary of Energy and the Administrator of the 
Environmental Protection Agency on the means of conveying tire 
fuel efficiency consumer information.
    New section 30123A(c) requires the Secretary to 
periodically report to Congress on the utility of the tire fuel 
efficiency consumer information rules, the level of cooperation 
with the tire manufacturing industry, and the contribution of 
the rules to the national goals for reducing energy 
consumption.
    New section 30123A(d) prohibits the Secretary from 
requiring any permanent labeling on tires for the purpose of 
conveying tire fuel efficiency information.
    New section 30123A(e) prohibits a State or political 
subdivision of a State from adopting or enforcing any law or 
regulation on tire fuel efficiency consumer information not in 
effect as of January 1, 2006, that is not identical to the 
Department's rule. This language would exempt from preemption 
the 2003 California law that requires the California Energy 
Commission to develop a comprehensive tire energy efficiency 
program. This language in new section 30123A(e) only preempts 
rating and consumer education programs. It does not preempt any 
State from regulating the fuel efficiency of tires not 
otherwise preempted under Chapter 301.
    Section 1(b) amends section 30165(a) to include a civil 
penalty for failure to comply with the national tire fuel 
efficiency consumer information program of not more than 
$50,000 per violation.
    Section 1(c) amends the table of contents.

         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, existing law in which no change is 
proposed is shown in roman):

              CHAPTER 301 OF TITLE 49, UNITED STATES CODE

                   CHAPTER 301--MOTOR VEHICLE SAFETY

                          SUBCHAPTER I--GENERAL

Sec.
30101.  Purpose and policy.
     * * * * * * *

                 SUBCHAPTER II--STANDARDS AND COMPLIANCE

30111.  Standards.
     * * * * * * *
30123A.   Tire fuel efficiency consumer information.

           *       *       *       *       *       *       *

SUBCHAPTER II--STANDARDS AND COMPLIANCE

           *       *       *       *       *       *       *

Sec. 30123A. Tire Fuel Efficiency Consumer Information

  (a) Rulemaking.--(1) Not later than 18 months after the date 
of enactment of this section, the Secretary of Transportation 
shall, after notice and opportunity for comment, promulgate 
rules establishing a national tire fuel efficiency consumer 
information program for tires designed for use on motor 
vehicles to educate consumers about the effect of tires on 
automobile fuel efficiency.
  (2) The rulemaking shall include each of the following:
          (A) A national tire fuel efficiency rating system for 
        motor vehicle tires to assist consumers in making more 
        educated tire purchasing decisions.
          (B) Requirements for providing information to 
        consumers, including information at the point of sale 
        and other potential information dissemination methods, 
        including the internet.
          (C) Specifications for test methods for manufacturers 
        to use in assessing and rating tires to avoid variation 
        among test equipment and manufacturers.
          (D) A national tire maintenance consumer education 
        program including, information on tire inflation 
        pressure, alignment, rotation, and tread wear to 
        maximize fuel efficiency.
  (3) This section shall not apply to tires excluded from 
coverage under section 575.104(c) of title 49, Code of Federal 
Regulations, as in effect on date of enactment of this section.
  (b) Consultation.--The Secretary shall consult with the 
Secretary of Energy and the Administrator of the Environmental 
Protection Agency on the means of conveying tire fuel 
efficiency consumer information.
  (c) Report to Congress.--The Secretary shall conduct periodic 
assessments of the rules promulgated under this section to 
determine the utility of such rules to consumers, the level of 
cooperation by industry, and the contribution to national goals 
pertaining to energy consumption. The Secretary shall transmit 
periodic reports detailing the findings of such assessments to 
the Energy and Commerce Committee of the House of 
Representatives and the Commerce, Science, and Transportation 
Committee of the Senate.
  (d) Tire Marking.--The Secretary shall not require permanent 
labeling of any kind on a tire for the purpose of tire fuel 
efficiency information.
  (e) Preemption.--Nothing in this section shall prohibit a 
State or political subdivision of a State from enforcing a law 
or regulation on tire fuel efficiency consumer information in 
effect on January 1, 2006. After a requirement under this 
section is in effect, a State or political subdivision of a 
State may adopt or enforce a law or regulation on tire fuel 
efficiency consumer information enacted after January 1, 2006, 
only if the law or regulation is identical to that requirement. 
Nothing in this section shall be construed to preempt a State 
or political subdivision of a State from regulating the fuel 
efficiency of tires not otherwise preempted under this chapter.

           *       *       *       *       *       *       *

SUBCHAPTER IV--ENFORCEMENT AND ADMINISTRATIVE

           *       *       *       *       *       *       *

Sec. 30165. Civil penalty

  (a) Civil Penalties.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Section 30123a.--Any person who fails to comply 
        with the national tire fuel efficiency consumer 
        information program under section 30123A is liable to 
        the United States Government for a civil penalty of not 
        more than $50,000 for each violation.

           *       *       *       *       *       *       *

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