[Federal Register Volume 62, Number 68 (Wednesday, April 9, 1997)]
[Rules and Regulations]
[Pages 17100-17102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8824]


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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.

------------------------------------------------------------------------
                                                               Average  
                                                                 fuel   
                                                               economy  
                         Model year                            standard 
                                                              (miles per
                                                               gallon)  
------------------------------------------------------------------------
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

[[Page 17102]]

                                                                        
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]
BILLING CODE 4910-59-P