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[Federal Register Volume 72, Number 98 (Tuesday, May 22, 2007)]
[Rules and Regulations]
[Pages 28619-28620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9867]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 531

[Docket No. NHTSA-2006-25593]

Exemptions From Average Fuel Economy Standards; Passenger 
Automobile Average Fuel Economy Standards

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

ACTION: Final decision to grant exemption.

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SUMMARY: This final decision responds to a petition filed by Spyker 
Automobielen B.V. (Spyker) requesting that it be exempted from the 
generally applicable average fuel economy standard of 27.5 miles per 
gallon (mpg) for model years 2006 and 2007, and that, for Spyker, lower 
alternative standards be established. In this document, NHTSA 
establishes an alternative average fuel economy standard for Spyker of 
18.9 mpg for MYs 2006 and 2007.

DATES: Effective Date: June 21, 2007.
    This exemption and the alternative standards apply to Spyker for 
MYs 2006 and 2007.
    Petitions for reconsideration: Petitions for reconsideration must 
be received no later than June 21, 2007.

ADDRESSES: You may submit comments by any of the following methods:
     Web Site: http://dms.dot.gov. Follow the instructions for 
submitting comments on the DOT electronic docket site.
     Fax: 1-202-493-2251.
     Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-001.
     Hand Delivery: Room PL-401 on the plaza level of the 
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
    Instructions: All submissions must include the agency name and 
docket number or Regulatory Identification Number (RIN) for this 
rulemaking. For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the Request for 
Comments heading of the Supplementary Information section of this 
document. Note that all comments received will be posted without change 
to http://dms.dot.gov, including any personal information provided. 
Please see the Privacy Act heading under Rulemaking Analyses and 
Notices.
    Docket: For access to the docket to read background documents or 
comments received, go to http://dms.dot.gov at any time or to Room PL-
401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For technical issues, contact Ken 
Katz, Lead Engineer, Fuel Economy Division, Office of International 
Vehicle, Fuel Economy, and Consumer Standards, at (202) 366-0846, 
facsimile (202) 493-2290, electronic mail [email protected]. For 
legal issues, contact Stephen Wood of the Office of the Chief Counsel, 
at (202) 366-2992.

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

[[Page 28620]]

    (4) The need of the United States to conserve energy.
    The statute 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 Spyker should be exempted from the 
generally applicable MY 2006 and 2007 passenger automobile average fuel 
economy of 27.5 mpg and that alternative standards of 18.9 mpg for MYs 
2006 and 2007 be established for Spyker. (71 FR 49407; August 23, 
2006). The agency received only one comment, from a Ms. Barb Sachau, 
who argued that all vehicles should get higher gas mileage and that the 
exemption for Spyker should not be granted unless Spyker's vehicles 
were able to obtain 100 mpg.
    NHTSA has decided not to adopt Ms. Sachau's recommendation. NHTSA's 
proposed decision presented several reasons why it would not be 
technologically feasible or economically practicable for Spyker to 
improve the fuel economy of its MY 2006 and 2007 vehicles above an 
average of 18.9 mpg. Ms. Sachau did not refute the agency's reasoning 
or provide a technical evaluation of how a standard of 100 mpg for MYs 
2006 and 2007 would be technologically feasible or economically 
practicable for Spyker. Thus, the agency has no basis to adopt Ms. 
Sachau's recommendation.

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 these conclusions, 
the maximum average fuel economy for Spyker is 18.9 mpg for MYs 2006 
and 2007. NHTSA has determined 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 Spyker from the generally applicable MY 2006 and 2007 
passenger automobile average fuel economy of 27.5 mpg and establishes 
an alternative standard of 18.9 mpg for MYs 2006 and 2007 for Spyker.

Regulatory Impact Analyses

    NHTSA has analyzed this decision and determined that neither 
Executive Order 12866 nor the Department of Transportation's regulatory 
policies and procedures apply. Under Executive Order 12866, the 
decision would not establish a ``rule,'' which is defined in the 
Executive Order as ``an agency statement of general applicability and 
future effect.'' Since this decision would apply only to Spyker, as 
discussed in this notice, it is not a ``rule'' under the definition. 
Under DOT regulatory policies and procedures, the decision is not a 
``significant regulation.'' If Departmental policies and procedures 
were applicable, the agency would have determined that this decision is 
not significant. The principal impact of this decision is that the 
exempted company will not be required to pay civil penalties if its 
maximum feasible average fuel economy were achieved, and that 
purchasers of those vehicles would not have to bear the burden of those 
civil penalties in the form of higher prices. Since this decision sets 
an alternative standard at the level determined to be the maximum 
feasible for Spyker for MYs 2006 and 2007, no fuel would be saved by 
establishing a higher alternative standard.
    NHTSA finds in the Section on ``The Need of the United States to 
Conserve Energy'' that because of the small size of the Spyker fleet, 
that incremental usage of gasoline by Spyker's customers would not 
affect the United States' need to conserve gasoline. Spyker plans to 
import a maximum of 112 vehicles to the U.S. market by MY 2007. Given 
that over 8,350,000 passenger cars were produced for sale in the U.S. 
market in MY 2006, Spyker's importation of these vehicles would amount 
to .001% of the U.S. market. Thus, the impact for the public at large 
is minimal.
    The agency has also considered the environmental implications of 
this decision in accordance with the National Environmental Policy Act 
(NEPA) and determined that it does not significantly affect the human 
environment. Regardless of the fuel economy of the exempted vehicles, 
they must pass the emissions standards which measure the amount of 
emissions per mile traveled. Thus, the quality of the air is not 
affected by the alternative standards. Further, since the exempted 
passenger automobiles cannot achieve better fuel economy than provided, 
the decision does not affect the amount of fuel used.

List of Subjects in 49 CFR Part 531

    Energy conservation, Gasoline, Imports, Motor Vehicles.

0
In consideration of the foregoing, 49 CFR part 531 is amended as 
follows:

PART 531--[AMENDED]

0
1. The authority citation for part 531 is revised to read as follows:

    Authority: 49 U.S.C. 32902, delegation of authority at 49 CFR 
1.50.

0
2. Section 531.5 is amended by adding paragraph (b) (15) to read as 
follows:

Sec.  531.5  Fuel economy standards.

* * * * *
    (b) * * *
    (15) Spyker Automobielen B.V.

                      Average Fuel Economy Standard
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                                                              Miles per
                         Model year                             gallon
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2006.......................................................         18.9
2007.......................................................         18.9
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    Issued on: May 17, 2007.
Stephen R. Kratzke,
Associate Administrator for Rulemaking.
[FR Doc. E7-9867 Filed 5-21-07; 8:45 am]
BILLING CODE 4910-59-P
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