[Federal Register Volume 66, Number 17 (Thursday, January 25, 2001)]
[Notices]
[Pages 7751-7753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-2174]


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ENVIRONMENTAL PROTECTION AGENCY

[AMS-FRL-6937-2]


California State Motor Vehicle Pollution Control Standards; 
Waiver of Federal Preemption--Notice of Within-the-Scope Determination

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice regarding waiver of federal preemption-within-the-scope 
determination.

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SUMMARY: On March 26, 1999, EPA published a Notice of Opportunity for 
Public Hearing and Public Comment (see 64 FR 14715, March 26, 1999), 
regarding California's request to EPA that EPA confirm the California 
Air Resources Board's (CARB's) finding that amendments to its zero-
emission vehicle (ZEV) requirements of the low-emission vehicle (LEV) 
program are within-the-scope of a waiver of federal preemption EPA had 
previously approved (the earlier LEV waiver can be found at 58 FR 4166, 
January 13, 1993).
    EPA is determining that California's amendments to the ZEV 
requirements of the LEV program, including the repeal of ZEV sales 
requirements from 1998 through 2002, are within the scope of previous 
waivers of Federal preemption granted pursuant to section 209(b) of the 
Clean Air Act (Act) to adopt and enforce its revised emission standards 
and accompanying enforcement procedures for 1988 and later model year 
vehicles and engines. In conjunction with the Notice of Opportunity for 
Public Hearing and Public Comment noted above, EPA held a hearing on 
the issues discussed within today's determination, therefore no 
additional opportunity for hearing is offered.

ADDRESSES: At the EPA's Air and Radiation Docket and Information 
Center, there are copies of the decision document containing an 
analysis of CARB's within-the-scope waiver request including: 
Information on standards and procedures and records of documents used 
in the decision document analysis (Docket A-97-20). The Air Docket 
Office is open from 8 to 5:30 p.m. Monday through Friday, room M-1500, 
Waterside Mall, 401 M Street, SW., Washington, DC 20460.
    Electronic copies of this Notice and the accompanying Decision 
Document are available via the Internet on the Office of Transportation 
and Air Quality (OTAQ) website (http://www.epa.gov/OMSWWW). Users can 
finds these documents by accessing the OTAQ website and looking at the 
path entitled ``Regulations.'' This service is free of charge, except 
for any cost you already incur for Internet connectivity. The 
electronic Federal Register version of the Notice is made available on 
the day of publication on the primary website (http://www.epa.gov/docs/fedrgstr/EPA-AIR).
    Please note that due to differences between the software used to 
develop the documents and the software into which the documents may be 
downloaded, changes in format, page length, etc., may occur.

FOR FURTHER INFORMATION CONTACT: David J. Dickinson, Supervisory 
Attorney, Certification and Compliance Division, U.S. Environmental 
Protection Agency, Ariel Rios Building (6405J), 1200 Pennsylvania 
Avenue, NW.,

[[Page 7752]]

Washington, DC 20460. Telephone: (202) 564-9256. Fax: (202) 565-2057. 
E-Mail address: [email protected].

SUPPLEMENTARY INFORMATION:

I. ZEV Amendments Within the Scope Request

A. Procedural History

    On January 13, 1993, EPA published a Notice Regarding Waiver of 
Federal Preemption granting California a waiver of federal preemption 
for the California LEV program. (58 FR 4166). The California LEV waiver 
included California's original ZEV requirements.
    In March 1996, CARB amended the LEV program by eliminating the ZEV 
sales requirement for model years 1998 through 2002 along with several 
other modifications noted above.
    On February 26, 1997, CARB submitted to the Administrator a request 
that EPA confirm the CARB Board's determination that the amendments to 
its regulations are within-the-scope of the existing LEV waiver. CARB 
also entered into, on March 29, 1996, memoranda of agreement (MOAs) 
with the seven largest vehicle manufacturers. These MOAs provide for 
the introduction of a certain number of ZEVs into the California market 
for calendar years 1998 through 2000 and require CARB to perform 
certain tasks.
    When EPA receives new waiver requests from CARB, EPA publishes a 
notice of opportunity for public hearing and comment and then publishes 
a decision in the Federal Register following the public comment period. 
In contrast, when EPA receives within-the-scope waiver requests from 
CARB, EPA traditionally publishes a decision in the Federal Register 
and concurrently invites public comment if an interested party is 
opposed to EPA's decision.
    Because EPA had already received written comment on this within-
the-scope request, EPA held a hearing and invited comment on several 
issues before issuing today's decision. (See 58 FR 14715, 14716, March 
26, 1999). The hearing was held on April 23, 1999. The public comment 
period closed on May 10, 1999.
    Subsequent to the hearing and comment period, the United States 
Court of Appeals for the First Circuit issued a decision regarding the 
State of Massachusetts' adoption of California's MOAs as its own 
regulations, including a ruling on the question of whether the MOAs are 
federally preempted by section 209(a) of the Act. (See Association of 
International Automobile Manufacturers, Inc. v. Commissioner, 
Massachusetts Department of Environmental Protection, 208 F.3d 1 (1st 
Cir. 2000)).

B. Scope of Review

    EPA may consider CARB's amendments or regulations to be within the 
scope of a previously granted waiver if the amendment does not 
undermine California's determination that its standards, in the 
aggregate, are as protective of public health and welfare as comparable 
Federal standards, does not affect the consistency of California's 
requirements with section 202(a) of the Act, and does not raise new 
issues affecting EPA's previous waiver determination.

C. Decision

    I have determined that California's ZEV amendments to its LEV 
regulations as applied in the 1994 model year and beyond are within the 
scope of previous waivers of Federal preemption granted pursuant to 
section 209(b) of the Act. The basis for this determination is 
described in detail in the Decision Document, which can be found in the 
docket for this action. The ZEV amendments to the LEV requirements 
which are applicable under California state law to 1998 through 2002 
model year passenger cars, light-duty trucks, and medium-duty vehicles 
require manufacturers to provide the following:
    (1) The elimination of the requirement upon manufacturers to 
certify, produce, and offer for sale in California ZEVs in amounts 
equal to two percent of their total California sales of passenger cars 
and light-duty trucks weighing less than 3,750 pounds beginning with 
the 1998 model year, increasing to five percent in the 2001 model year 
and ten percent in the 2003 model year (the ten percent ZEV requirement 
for the 2003 model year has been retained by California);
    (2) the creation of multiple ZEV credits for vehicles produced 
prior to the 2003 model year; and
    (3) the creation of test procedures for determining All-Electric 
Vehicle Range.
    In a February 26, 1997 letter to EPA, CARB notified EPA of the 
above-described ZEV amendments to its LEV regulations affecting 1988 
and subsequent model year vehicles, and requested that EPA confirm that 
the ZEV amendments are within the scope of existing waivers of Federal 
preemption. The Executive Officer stated that ``[t]he Board found that 
the amendments covered by this letter will not cause California motor 
vehicle emission standards, in the aggregate, to be less protective of 
public health and welfare than applicable Federal standards.* * *'' \1\
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    \1\ CARB letter at 5.
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    On January 7, 1993, EPA granted a waiver of Federal preemption for 
California's LEV program.\2\ In doing so, EPA found that CARB's 
protectiveness determination was not arbitrary or capricious. As 
explained more fully in the Decision Document, EPA finds that CARB's 
protectiveness determination is not undermined by the ZEV amendments. 
Despite the elimination of the ZEV sales requirements from 1998 to 
2002, CARB's NMOG fleet average standard remains the same and CARB's 
tiered LEV standards are at least as protective as comparable federal 
standards.
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    \2\ 58 FR 4166 (January 13, 1993).
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    In addition, EPA finds that CARB's amendments do not affect their 
consistency with section 202(a) of the Act. The elimination of the ZEV 
sales requirement places no additional burden on the manufacturers; in 
fact, the manufacturers now have additional lead time to develop and 
implement ZEV technology. EPA also finds that the test procedure 
consistency requirement is not adversely affected by the CARB 
amendments as manufacturers of ZEVs are only required to test according 
to CARB's procedures. Finally, the ZEV amendments raise no new issues 
affecting EPA's previous waiver determination. Thus, these amendments 
are within the scope of the previous waiver granted on January 13, 
1993.

II. Significance of MOAs

    Within the initial Federal Register notice regarding CARB's 
request,\3\ EPA sought comment as to ``the significance of the MOAs and 
issues that may arise out of the MOAs and their relevance to the 
within-the-scope waiver request CARB has submitted to EPA, addressing 
how the MOAs and related issues affect EPA's consideration either under 
the within-the-scope or waiver criteria.''
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    \3\ 64 FR 14715, 14716 (March 26, 1999).
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    As more fully explained in the Decision Document, EPA has 
determined that the existence of the MOAs does not affect the within-
the-scope determination. EPA believes that it has the authority and 
discretion to examine the MOAs, and similar methodologies and realities 
in California, to determine whether they have any adverse impact on 
either the waiver or within-the-scope criteria. As noted in the 
Decision Document, no such adverse impact was found in today's 
determination.
    My decision will affect not only persons in California but also the

[[Page 7753]]

manufacturers outside the State who must comply with California's 
requirements in order to produce motor vehicles for sale in California. 
For this reason, I hereby determine and find that this is a final 
action of national applicability.
    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. sec. 601(2). Therefore, EPA has not prepared 
a supporting regulatory flexibility analysis addressing the impact of 
this action on small business entities.
    Finally, the Administrator has delegated the authority to make 
determinations regarding waivers of Federal preemption under section 
209(b) of the Act to the Assistant Administrator for Air and Radiation.

    Dated: January 18, 2001.
Robert Perciasepe,
Assistant Administrator for Air and Radiation.
[FR Doc. 01-2174 Filed 1-24-01; 8:45 am]
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