```

[Federal Register Volume 90, Number 3 (Monday, January 6, 2025)]
[Notices]
[Pages 642-643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31128]

-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2023-0292; FRL-11010-02-OAR]

California State Motor Vehicle and Engine Pollution Control 
Standards; Advanced Clean Cars II; Waiver of Preemption; Notice of 
Decision

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of decision.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (``EPA'') is providing 
notice of its decision granting the California Air Resources Board's 
(``CARB's'') request for a waiver of Clean Air Act preemption for its 
Advanced Clean Cars II (``ACC II'') regulations. EPA's decision was 
issued under the authority of the Clean Air Act (``CAA'' or ``Act'') 
section 209.

DATES: Petitions for review must be filed by March 7, 2025.

ADDRESSES: EPA has established a docket for this action under Docket ID 
EPA-HQ-OAR-2023-0292. All documents relied upon in making this 
decision, including those submitted to EPA by CARB, are contained in 
the public docket. Publicly available docket materials are available 
either electronically through www.regulations.gov or in hard copy at 
the EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution 
Avenue NW, Washington, DC 20004. The Docket Center's hours of operation 
are 8:30 a.m. to 4:30 p.m.; generally, it is open Monday through 
Friday, except Federal holidays. The electronic mail (email) address 
for the EPA Docket Center is: [email protected]. An electronic 
version of the public docket is available through the Federal 
government's electronic public docket and comment system. You may 
access EPA dockets at http://www.regulations.gov. After opening the 
www.regulations.gov website, enter EPA-HQ-OAR-2023-0292 in the ``Enter 
Keyword or ID'' fill-in box to view documents in the record. Although a 
part of the official docket, the public docket does not include 
Confidential Business Information (``CBI'') or other information whose 
disclosure is restricted by statute.
    EPA's Office of Transportation and Air Quality (``OTAQ'') maintains 
a web page that contains general information on its review of 
California waiver and authorization requests. Included on that page are 
links to prior waiver Federal Register notices, some of which are cited 
in this notice; the page can be accessed at: https://www.epa.gov/state-and-local-transportation/vehicle-emissions-california-waivers-and-authorizations.

FOR FURTHER INFORMATION CONTACT: Michael Olechiw, Office of 
Transportation and Air Quality, U.S. Environmental Protection Agency, 
2000 Traverwood Drive, Ann Arbor, MI 48105. Telephone: 734-214-4297. 
Email: [email protected].

SUPPLEMENTARY INFORMATION: On December 26, 2023, EPA published a 
Federal Register notice announcing its receipt of CARB's waiver 
request. In that notice, EPA invited public comment on California's 
waiver request and an opportunity to present testimony at a public 
hearing.\1\ EPA held a public hearing on January 10, 2024, and the 
written comment period closed on February 27, 2024.\2\ EPA has 
considered all comments submitted to the public docket on this matter.
---------------------------------------------------------------------------

    \1\ 88 FR 88908 (December 26, 2023).
    \2\ A transcript of the public hearing is located at EPA-HQ-OAR-
2023-0292-0056 and all written comments are also located at 
regulations.gov at EPA-HQ-OAR-2023-0292.
---------------------------------------------------------------------------

    On December 17, 2024, I signed a Decision Document granting 
California a waiver of preemption pursuant to section 209(b) of the 
CAA, as amended, 42 U.S.C. 7543(b), for regulations applicable to new 
2026 and subsequent model year (MY) California on-road light- and 
medium-duty vehicles, hereafter the Advanced Clean Cars II (``ACC II'') 
regulations.\3\ The ACC II program includes a series of requirements 
regarding California's low emission vehicle (``LEV'') IV regulation and 
a series of requirements regarding its zero-emission vehicle (``ZEV'') 
program.\4\ The LEV IV requirements include, for example, applying 
exhaust and evaporative emission fleet-average standards solely to 
vehicles powered by internal combustion engines and excluding ZEVs from 
the fleet calculation. The LEV IV requirements reduce the maximum 
allowed exhaust and evaporative emission rates from

[[Page 643]]

vehicles under the existing fleet-average standard and aim to reduce 
cold-start emissions by applying the emissions standards to a broader 
range of in-use driving conditions. The ZEV requirements of ACC II 
include, for example, a requirement for vehicle manufacturers to sell 
increasing percentages of ZEVs beginning with the 2026 MY. 
Manufacturers can meet up to 20 percent of their sales requirements 
using plug-in hybrid vehicles (PHEVs) that meet specified requirements. 
A comprehensive description of California's ACC II program can be found 
in the Decision Document for this waiver and in materials submitted to 
the Docket by CARB.
---------------------------------------------------------------------------

    \3\ EPA's Decision Document can be found at EPA-HQ-OAR-2023-
0292. In addition to the Decision Document, EPA prepared a 
Supplemental Response to Comments document that is also part of the 
Administrator's waiver decision. The Supplemental Response to 
Comments document can also be found at EPA-HQ-OAR-2023-0292.
    \4\ EPA's waiver decision includes the entire ACC II regulatory 
text that can be found in Attachment 7 to CARB's May 22, 2023, ACC 
II waiver request (the ACC II Waiver Support Document) found at EPA-
HQ-OAR-2023-0292-0034. (CARB's entire waiver submission to EPA is 
found at EPA-HQ-OAR-2023-0292). The specific regulatory provisions 
under EPA's waiver consideration can be found at footnote 36 to the 
ACC II Waiver Support Document.
---------------------------------------------------------------------------

    Section 209(b) of the Act provides that the Administrator, after 
notice and opportunity for public hearing, shall waive Federal 
preemption for California to enforce new motor vehicle emission 
standards and accompanying enforcement procedures unless certain 
criteria are met. The criteria for denying such a waiver include 
consideration of whether California arbitrarily and capriciously 
determined that its standards are, in the aggregate, at least as 
protective of public health and welfare as the applicable Federal 
standards; whether California does not need such State standards to 
meet compelling and extraordinary conditions; and whether such State 
standards and accompanying enforcement procedures are not consistent 
with section 202(a) of the Act.
    CARB determined that these standards and accompanying enforcement 
procedures do not cause California's standards, in the aggregate, to be 
less protective to public health and welfare than the applicable 
Federal standards. The administrative record, including information 
presented to me by parties opposing California's waiver, did not 
demonstrate that California arbitrarily or capriciously reached this 
protectiveness determination. Therefore, based on the record, I cannot 
find California's determination to be arbitrary and capricious under 
section 209(b)(1)(A).
    CARB has demonstrated the existence of compelling and extraordinary 
conditions justifying the need for such State standards. The 
administrative record, including information presented to me by parties 
opposing California's waiver request, did not demonstrate that 
California does not need such State standards to meet compelling and 
extraordinary conditions. Thus, based on the record, I cannot deny the 
waiver based on section 209(b)(1)(B).
    CARB has submitted information that its emission standards and test 
procedures are technologically feasible, present no inconsistency with 
Federal requirements, and are consistent with section 202(a) of the 
Act. The administrative record, including information presented to me 
by parties opposing California's waiver request, did not satisfy the 
burden of persuading EPA that the standards are not consistent with 
section 202(a). Thus, based on the record, I cannot deny the waiver 
based on section 209(b)(1)(C).
    Accordingly, I hereby granted the waiver requested by California.
    Section 307(b)(1) of the CAA governs judicial review of final 
actions by the EPA. Petitions for review must be filed by March 7, 
2025.
    As with past waiver decisions, this action is not a rule as defined 
by Executive Order 12866. Therefore, it is exempt from review by the 
Office of Management and Budget as required for rules and regulations 
by Executive Order 12866.
    In addition, this action is not a rule as defined in the Regulatory 
Flexibility Act, 5 U.S.C. 601(2). Therefore, EPA has not prepared a 
supporting regulatory flexibility analysis addressing the impact of 
this action on small business entities.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, does not 
apply because this action is not a rule, for purposes of 5 U.S.C. 
804(3).

Michael S. Regan,
Administrator.
[FR Doc. 2024-31128 Filed 1-3-25; 8:45 am]
BILLING CODE 6560-50-P
```