[Federal Register Volume 67, Number 235 (Friday, December 6, 2002)]
[Rules and Regulations]
[Pages 72821-72826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30843]



Federal Register / Vol. 67, No. 235 / Friday, December 6, 2002 / 
Rules and Regulations

[[Page 72821]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 86

[AMS-FRL-7416-7]
RIN 2060-AI23


Control of Air Pollution From New Motor Vehicles: Amendments to 
the Tier 2 Motor Vehicle Emission Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to clarify and revise 
certain provisions of the Tier 2/Gasoline Sulfur regulations 
(hereinafter referred to as the Tier 2 rule). Today's action makes 
minor revisions to clarify the regulations governing compliance with 
the Tier 2 rule, and it modifies the Tier 2 program to provide for the 
certification of cleaner diesel engines than were anticipated during 
the interim Tier 2 program (through the 2006 model year).

DATES: This direct final rule is effective on March 6, 2003, without 
further notice, unless we receive adverse comments by January 6, 2003, 
or if we receive a request for a public hearing by December 23, 2002. 
Should we receive any adverse comments on this direct final rule, we 
will publish a timely withdrawal in the Federal Register informing the 
public that this rule will not take effect.

ADDRESSES: Comments: All comments and materials relevant to today's 
action should be submitted to Public Docket No. A-97-10 at the 
following address: Environmental Protection Agency, EPA Docket Center 
(EPA/DC), Air and Radiation Docket, Mail Code 6102T, 1200 Pennsylvania 
Avenue, NW., Washington, DC 20460.
    Docket: Materials relevant to this rulemaking are contained in 
Public Docket Number A-97-10 at the following address: EPA Docket 
Center (EPA/DC), Public Reading Room, Room B102, EPA West Building, 
1301 Constitution Avenue, NW., Washington DC. The EPA Docket Center 
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, except on government holidays. You can reach the Reading Room 
by telephone at (202) 566-1742, and by facsimile at (202) 566-1741. The 
telephone number for the Air Docket is (202) 566-1742. You may be 
charged a reasonable fee for photocopying docket materials, as provided 
in 40 CFR part 2.

FOR FURTHER INFORMATION CONTACT: Roberts French, U.S. EPA, National 
Vehicle and Fuel Emissions Laboratory, Assessment and Standards 
Division, 2000 Traverwood Drive, Ann Arbor, MI 48105; telephone (734) 
214-4380, fax (734) 214-4050, e-mail [email protected].

SUPPLEMENTARY INFORMATION: EPA is publishing this rule without a prior 
proposal because we view this action as noncontroversial and anticipate 
no adverse comment. However, in the ``Proposed Rules'' section of 
today's Federal Register publication, we are publishing a separate 
document that will serve as the proposal to adopt the provisions in 
this Direct Final Rule if adverse comments are filed. This rule will be 
effective on March 6, 2003, without further notice unless we receive 
adverse comment by January 6, 2003, or a request for a public hearing 
by December 23, 2002. If we receive adverse comment on one or more 
distinct amendments, paragraphs, or sections of this rulemaking, we 
will publish a timely withdrawal in the Federal Register indicating 
which provisions are being withdrawn due to adverse comment. We may 
address all adverse comments in a subsequent final rule based on the 
proposed rule. We will not institute a second comment period on this 
action. Any parties interested in commenting must do so at this time. 
Any distinct amendment, paragraph, or section of today's rulemaking for 
which we do not receive adverse comment will become effective on the 
date set out above, notwithstanding any adverse comment on any other 
distinct amendment, paragraph, or section of today's rule.

Access to Rulemaking Documents Through the Internet

    Today's action is available electronically on the date of 
publication from EPA's Federal Register Internet web site listed below. 
Electronic copies of this preamble, regulatory language, and other 
documents associated with today's final rule are available from the EPA 
Office of Transportation and Air Quality Web site listed below shortly 
after the rule is signed by the Administrator. This service is free of 
charge, except any cost that you already incur for connecting to the 
Internet.
    EPA Federal Register Web site: http://www.epa.gov/docs/fedrgstr/epa-air/ (either select a desired date or use the Search feature).
    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.

Regulated Entities

    Entities potentially affected by this action are those that 
manufacture and sell motor vehicles in the United States. The table 
below gives some examples of entities that may have to comply with the 
regulations. However, since these are only examples, you should 
carefully examine these and other existing regulations in 40 CFR part 
80. If you have any questions, please call the person listed in the FOR 
FURTHER INFORMATION CONTACT section above.

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                                                         Examples of
             Category               NAICS     SIC        potentially
                                   codes a  codes b   regulated entities
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Industry.........................   336111     3711  Automobile and
                                    336112            light truck
                                                      manufacturers.
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a North American Industry Classification System (NAICS).
b Standard Industrial Classification (SIC) system code.

I. Overview of Technical Amendments

    The technical amendments described below pertain to the Tier 2/
Gasoline Sulfur regulations finalized by EPA on February 10, 2000 (65 
FR 6698), hereafter referred to as the Tier 2 rule or the Tier 2 
program. Although we attempt to provide some context in the following 
discussions, the emission control program that we are amending is very 
complex and detailed and cannot be described completely in this direct 
final rule. Readers are advised to consult the documents associated 
with this rulemaking if they require more information than is provided 
in this direct final rule. Information regarding the Tier 2 rule that 
readers may be interested in consulting may be found on the EPA Web 
site at http://www.epa.gov/otaq/tr2home.htm.
    The Tier 2/Gasoline Sulfur program is designed to significantly 
reduce the

[[Page 72822]]

emissions from new passenger cars and light trucks, including pickup 
trucks, vans, minivans, and sport-utility vehicles. The program is a 
comprehensive regulatory initiative that treats vehicles and fuels as a 
system, combining requirements for much cleaner vehicles with 
requirements for much lower levels of sulfur in gasoline. The program, 
which begins in model year 2004, phases in a single set of exhaust 
emission standards that will, for the first time, apply to all 
passenger cars, light trucks, and larger passenger vehicles operated on 
any fuel. To enable the very clean Tier 2 vehicle emission control 
technology to be introduced and to maintain its effectiveness, the Tier 
2 program also requires reduced gasoline sulfur levels nationwide. The 
Tier 2 program did not require similar changes for diesel fuel sulfur 
levels, but a separate rule mandated the reduction of highway diesel 
fuel sulfur levels beginning in September, 2006 (66 FR 5001, January 
18, 2001). The program will bring about major reductions in annual 
emissions responsible for ozone and particulate matter problems.

A. Light-duty Diesel Provisions Under the Interim Tier 2 Program

    The Tier 2 rule when fully phased in contains eight emission 
standards ``bins'' (bins 1 through 8). Each bin is a set of emission 
standards to which manufacturers can certify their vehicles, provided 
that each manufacturer meets a specified fleet average NOX 
standard. Two additional bins--bins 9 and 10--are available only during 
the interim program (2004 through the 2006 model year for light-duty 
vehicles (LDVs) and light light-duty trucks (LLDTs), and through the 
2008 model year for heavy light-duty trucks (HLDTs) and medium-duty 
passenger vehicles (MDPVs)).\1\ \2\ This direct final rule clarifies 
some aspects of the interim program requirements for light-duty diesel 
vehicles certifying to bins 9 and 10.
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    \1\ One additional temporary bin (bin 11) is available that 
applies only to MDPVs through the 2008 model year.
    \2\ ``Light-duty vehicle'' means a passenger car or a derivative 
of a passenger car, seating 12 persons or less. ``Light-duty truck'' 
means a vehicle with a gross vehicle weight rating of up to 8500 
pounds and a curb weight of up to 6000 pounds that is designed 
primarily for transportation of property or more than 12 persons, or 
that has off-road capabilities. ``Light light-duty truck'' means a 
light-duty truck'' with a gross vehicle weight rating of to 6000 
pounds, and a ``heavy light-duty truck'' is a light-duty truck with 
a gross vehicle weight rating of more than 6000 pounds. A ``medium-
duty passenger vehicle'' is a new class of vehicle introduced in the 
Tier 2 program that includes sport-utility vehicles and passenger 
vans rated at between 8500 and 10,000 pounds gross vehicle weight 
rating.
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    In addition to bins of exhaust emission standards for the Federal 
Test Procedure (FTP), the Tier 2 rule also established exhaust emission 
standards for the Supplemental Federal Test Procedure (SFTP). The SFTP 
procedures are intended to control emissions that occur during types of 
driving that are not well-represented on the FTP, including rapid 
accelerations and decelerations, high speed driving, and driving with 
the air conditioner operating.
    With the exception of some adjustments to the interim program to 
account for the lack of availability of low sulfur diesel fuel, an 
overarching principle of the Tier 2 program is the applicability of the 
same Tier 2 standards to all LDVs and LDTs, regardless of the fuel they 
are designed to use. Diesel powered LDVs and LDTs tend to be used in 
the same applications as their gasoline counterparts, and we believe 
that they should therefore meet the same standards. We stated in the 
Tier 2 final rule that major technological innovations will not be 
required for gasoline vehicles to meet the Tier 2 standards, but that 
the standards will be especially challenging for diesel vehicles and 
will likely require the application of advanced aftertreatment 
technologies. These aftertreatment technologies are dependent on the 
availability of clean diesel fuel, without which they are not effective 
and may be susceptible to damage. For this reason, we included some 
provisions in the initial years of the Tier 2 program to enable diesels 
to meet the interim requirements without the availability of low sulfur 
diesel fuel. We also allowed manufacturers to certify vehicles to an 
interim bin 10 during the initial years of the program. We stated that 
we believed diesel engines could meet the full useful life requirements 
in bin 10 without the need for low sulfur diesel fuel (65 FR 6739). 
Beyond the interim program, however, we have provided for the 
availability of clean diesel fuel starting in mid-2006 (66 FR 5001, 
January 18, 2001), and thus the program was structured so that diesels 
will be treated no differently than gasoline vehicles when the final 
Tier 2 program is effective and applicable to the entire fleet.
    Section IV.B.4.a of the Tier 2 rule preamble (65 FR 6740) briefly 
explains the bin 10 provisions as they relate to diesel vehicles. 
Specifically, we stated that diesel vehicles ``may opt not to meet the 
intermediate life standards associated with this bin.'' In addition, a 
footnote to the table of Tier 2 intermediate useful life standards for 
the Federal Test Procedure (FTP) reads ``Intermediate life standards 
are optional for diesels certified to bin 10'' (65 FR 6741). Although 
not specifically stated in this language, it was EPA's intent to exempt 
diesel vehicles from the intermediate life standards of both the FTP 
and SFTP. As was noted in the Tier 2 rule, low sulfur diesel fuel may 
be needed for diesels to meet the intermediate useful life standards of 
the interim Tier 2 program, yet low sulfur diesel fuel will not be 
widely available during the time frame of the interim program (65 FR 
6740). This exemption was intended to apply only for the temporary 
duration of bin 10. The Tier 2 rule provided the option for diesels of 
opting out of the intermediate life standards of bin 10 in order to 
enable light-duty diesels to continue to be manufactured in the absence 
of low sulfur fuel, while their gasoline-fueled counterparts will 
already be able to enjoy the advantages of clean low sulfur fuel in 
meeting the interim standards. Further, the intermediate useful life 
standards for diesels certifying to bin 10 during the interim program 
are not necessary because diesel engine-out emissions (e.g., emissions 
from diesel vehicles not equipped with aftertreatment emission control 
devices) are typically stable or decreasing as mileage is accumulated.
    Although we intended to make optional for diesels the FTP 
intermediate useful life standards, the SFTP 4,000-mile standards, and 
the SFTP intermediate useful life standards during the interim program, 
the regulatory language does not capture this intent and requires 
diesel vehicles certifying to bin 10 to comply with full useful life 
SFTP standards and either the 4,000-mile or intermediate life SFTP 
standards. Specifically, the regulations currently require that all 
vehicles subject to SFTP standards must meet a 4,000-mile standard and 
a full useful life standard. The regulations currently provide that 
diesel vehicles have the option of complying with an intermediate 
useful life standard instead of the 4,000-mile standard through the 
2006 model year.
    In this direct final rule, we are amending the regulations to be 
consistent with the original intent that for diesel vehicles certifying 
to bin 10, compliance with the intermediate useful life standards of 
both the FTP and the SFTP be optional. This optional compliance will 
only be available as long as bin 10 is available. In the case of the 
SFTP standards, this means that, like the FTP, diesel vehicles will 
only be required to meet a full useful life standard. This change 
primarily applies to NOX emissions, as there is no

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intermediate useful life standard for particulate matter (PM) on either 
the FTP or SFTP.\3\
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    \3\ In general, limits or emissions of other regulated 
pollutants (e.g., HC, CO) are not as significant a challenge for 
diesel vehicles as are NOX and PM standards.
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    This direct final rule also revises the regulations applicable to 
diesel vehicles certified to bin 9 so that the intermediate useful life 
FTP and SFTP standards will also be optional for bin 9 diesel vehicles. 
When the Tier 2 rule was finalized more than two years ago, we limited 
the diesel intermediate life option to bin 10 because the information 
available at the time suggested that it would be challenging for diesel 
vehicles to meet the bin 10 standards in the absence of low sulfur 
diesel fuel, and no vehicle manufacturers were predicting that diesels 
would be able to meet the standards of more stringent bins during the 
interim program. However, in the time since the finalization of the 
Tier 2 rule we have learned that light-duty diesel vehicles are under 
development that are capable of meeting the bin 9 exhaust emission 
standards and could be introduced during the interim Tier 2 program. 
One manufacturer of these vehicles has therefore requested that the 
regulations be modified such that the bin 9 requirements for diesels 
mirror those of bin 10 by providing diesels the option of opting out of 
meeting the intermediate useful life standards. Certification to the 
bin 9 standards would be a significant achievement in the advancement 
of light-duty diesel technology in the initial years of the Tier 2 
program, as the NOX standard is one-half that of the bin 10 
NOX standard (0.3 grams per mile for bin 9 and 0.6 grams per 
mile for bin 10). Further, the PM standard for bin 9 is 0.06 grams per 
mile, whereas the bin 10 PM standard is 0.08 grams per mile. If we had 
anticipated at the time of finalizing the Tier 2 rule that diesels 
would be capable of meeting the bin 9 standards in the absence of low 
sulfur diesel fuel, we would have extended the intermediate life opt-
out option to diesels certifying to both bin 9 and bin 10 standards.
    Therefore, in this direct final rule we are modifying the 
provisions of the Tier 2 interim program such that the bin 9 provisions 
are consistent with bin 10. We are doing this by extending the 
intermediate life opt-out option to diesels certifying to bin 10 or bin 
9. Diesel vehicles require this additional flexibility for bin 9 during 
the interim period for the same reasons that this option was provided 
for bin 10, as discussed above (i.e., the lack of availability of low 
sulfur diesel fuel). As discussed, this option would allow diesel 
light-duty vehicles to comply with only the full useful life standards 
of both the FTP and SFTP during the interim program. This change will 
likely result in the introduction of cleaner diesels than otherwise 
would be the case (during the interim period), and furthermore, we view 
the possibility of diesels being able to certify to the bin 9 standards 
as a great success story for clean diesels that will facilitate the 
transition of diesel vehicles to successfully meeting the Tier 2 
standards. We believe this revision will encourage development and 
application of diesel engines with engine-out emissions even lower than 
initially expected when the Tier 2 rule was promulgated. This could 
stimulate implementation of technological advances that may reduce 
diesel emissions in future years.

B. Definition of Small Volume Manufacturer

    The Tier 2 rule added a new definition to 40 CFR part 86, subpart S 
for ``U.S. Sales.'' This new definition specifies that the term means 
sales in the United States, excluding sales in California and in states 
that have adopted the California emissions control program for motor 
vehicles under section 177 of the Clean Air Act. This new definition 
became necessary to ensure that vehicles sold in states not subject to 
the federal emissions control program would not be included in the 
determination of a manufacturer's fleet average emissions level. 
However, the new definition inadvertently changed the intended use of 
the term in some other sections of the Tier 2 regulations. In 
particular, the term ``U.S. sales'' is used to determine the 
eligibility of manufacturers for provisions applicable to small volume 
manufacturers (see 40 CFR 86.1801-01(d), 86.1838-01(b)(1), and 86.1838-
01(b)(2)). Applying the new definition of U.S. sales in these cases 
could result in an incorrect determination of eligibility for small 
volume manufacturer provisions, because the small volume provisions 
intended to use the term to mean sales in all U.S. states and 
territories, including California and the section 177 states. 
Therefore, this direct final rule is amending 40 CFR 86.1801-01(d), 
86.1838-01(b)(1), and 86.1838-01(b)(2) such that the term ``U.S. 
sales'' is replaced with ``sales in all states and territories of the 
United States.'' The word ``state'' is used in this context 
consistently with the definition of ``State'' in section 302(d) of the 
Clean Air Act, and includes the District of Columbia, Puerto Rico, and 
other parts of the United States that are not formally considered to be 
states.

C. Supplemental Federal Test Procedure Requirements for Interim Non-
Tier 2 Vehicles

    40 CFR 86.1811-04(f)(4) currently states that ``[i]nterim non-Tier 
2 gasoline, diesel and flexible-fueled LDV/LLDTs certified to bin 10 
FTP exhaust emission standards * * * may meet the gasoline Tier 1 SFTP 
requirements found at Sec.  86.1811-01(b).'' The effect of the language 
in the current regulations is to apply the Tier 1 SFTP standards for 
LDVs to LDT1s and LDT2s (since LLDT encompasses both LDT1s and LDT2s). 
However, the Tier 1 SFTP regulations applicable to LDT2s are different 
from the SFTP standards applicable to LDVs and LDT1s. In addition, the 
Tier 1 SFTP emission standards in Sec.  86.1811-01(b) are applicable 
only to LDVs. The Tier 1 standards for LDT1s are in 86.1812-01, and 
those for LDT2s are in Sec.  86.1813-01. The intent of paragraph 40 CFR 
86.1811-04(f)(4) was to, in the specific cases noted in the paragraph, 
provide the option of meeting the Tier 1 SFTP standards in a manner 
consistent with the type and definition of the vehicle. Therefore, in 
this direct final rule we are amending 40 CFR 86.1811-04(f)(4) to 
state, in its entirety:

    Interim non-Tier 2 gasoline, diesel and flexible-fueled LDV/
LLDTs certified to bin 10 FTP exhaust emission standards from Table 
S04-1 in paragraph (c) of this section may meet the gasoline Tier 1 
SFTP requirements found at Sec. Sec.  86.1811-01(b), 86.1812-01(b), 
86.1813-01(b), for LDVs, LDT1s, and LDT2s, respectively.

II. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the 
Agency is required to determine whether this regulatory action would be 
``significant'' and therefore subject to review by the Office of 
Management and Budget (OMB) and the requirements of the Executive 
Order. The order defines a ``significant regulatory action'' as any 
regulatory action that is likely to result in a rule that may:
    [sbull] Have an annual effect on the economy of $100 million or 
more or adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or state, local, or tribal governments or 
communities;

[[Page 72824]]

    [sbull] Create a serious inconsistency or otherwise interfere with 
an action taken or planned by another agency;
    [sbull] Materially alter the budgetary impact of entitlements, 
grants, user fees, or loan programs or the rights and obligations of 
recipients thereof; or,
    [sbull] Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Pursuant to the terms of Executive Order 12866, we have determined 
that this final rule is not a ``significant regulatory action.''

B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1980, 44 U.S.C. 3501 et seq., and 
implementing regulations, 5 CFR part 1320, do not apply to this action 
as it does not involve the collection of information as defined 
therein.

C. Regulatory Flexibility Act

    EPA has determined that it is not necessary to prepare a regulatory 
flexibility analysis in connection with this final rule. EPA has also 
determined that this rule will not have a significant economic impact 
on a substantial number of small entities.
    For purposes of assessing the impacts of today's direct final rule 
on small entities, small entity is defined as: (1) A motor vehicle 
manufacturer with fewer than 1000 employees; (2) a small governmental 
jurisdiction that is a government of a city, county, town, school 
district or special district with a population of less than 50,000; and 
(3) a small organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field. 
After considering the economic impacts of today's direct final rule on 
small entities, we have determined that this action will not have a 
significant economic impact on a substantial number of small entities. 
This direct final rule will not have any adverse economic impact on 
small entities. Today's rule revises certain provisions of the Tier 2 
rule (65 FR 6698, February 10, 2000), such that regulated entities will 
find it easier to comply with the requirements of the Tier 2 rule. More 
specifically, today's action makes minor revisions to clarify the 
regulations governing compliance with the Tier 2 rule.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for federal agencies to assess the 
effects of their regulatory actions on state, local, and tribal 
governments, and the private sector. Under section 202 of the UMRA, we 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``federal mandates'' that 
may result in expenditures to state, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more for 
any single year. Before promulgating a rule for which a written 
statement is needed, section 205 of the UMRA generally requires us to 
identify and consider a reasonable number of regulatory alternatives 
and adopt the least costly, most cost-effective, or least burdensome 
alternative that achieves the objectives of the rule. The provisions of 
section 205 do not apply when they are inconsistent with applicable 
law. Moreover, section 205 allows us to adopt an alternative that is 
not the least costly, most cost-effective, or least burdensome 
alternative if we provide an explanation in the final rule of why such 
an alternative was adopted.
    Before we establish any regulatory requirement that may 
significantly or uniquely affect small governments, including tribal 
governments, we must develop a small government plan pursuant to 
section 203 of the UMRA. Such a plan must provide for notifying 
potentially affected small governments, and enabling officials of 
affected small governments to have meaningful and timely input in the 
development of our regulatory proposals with significant federal 
intergovernmental mandates. The plan must also provide for informing, 
educating, and advising small governments on compliance with the 
regulatory requirements.
    This rule contains no federal mandates for state, local, or tribal 
governments as defined by the provisions of Title II of the UMRA. The 
rule imposes no enforceable duties on any of these governmental 
entities. Nothing in the rule will significantly or uniquely affect 
small governments.
    We have determined that this rule does not contain a federal 
mandate that may result in estimated expenditures of more than $100 
million to the private sector in any single year. This action has the 
net effect of revising certain provisions of the Tier 2 rule. 
Therefore, the requirements of the UMRA do not apply to this action.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires us to develop an accountable process to ensure 
``meaningful and timely input by state and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government.
    Under section 6 of Executive Order 13132, we may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the federal government provides the funds necessary to pay the direct 
compliance costs incurred by state and local governments, or we 
consults with state and local officials early in the process of 
developing the proposed regulation. We also may not issue a regulation 
that has federalism implications and that preempts state law, unless 
the Agency consults with state and local officials early in the process 
of developing the proposed regulation.
    Section 4 of the Executive Order contains additional requirements 
for rules that preempt state or local law, even if those rules do not 
have federalism implications (i.e., the rules will not have substantial 
direct effects on the states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government). Those 
requirements include providing all affected state and local officials 
notice and an opportunity for appropriate participation in the 
development of the regulation. If the preemption is not based on 
express or implied statutory authority, we also must consult, to the 
extent practicable, with appropriate state and local officials 
regarding the conflict between state law and federally protected 
interests within the Agency's area of regulatory responsibility.
    This rule does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government, as 
specified in Executive Order 13132. This rule revises certain 
provisions of earlier rules that adopted national standards to control 
vehicle emissions and gasoline fuel sulfur levels. The requirements of 
the rule will be enforced by the federal government at the national 
level. Thus, the requirements of section 6 of the Executive Order do 
not apply to this rule.

[[Page 72825]]

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This final rule does not have 
tribal implications, as specified in Executive Order 13175. Today's 
rule does not uniquely affect the communities of American Indian tribal 
governments since the motor vehicle requirements for private businesses 
in today's rule will have national applicability. Furthermore, today's 
rule does not impose any direct compliance costs on these communities 
and no circumstances specific to such communities exist that will cause 
an impact on these communities beyond those discussed in the other 
sections of today's document. Thus, Executive Order 13175 does not 
apply to this rule.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
to any rule that (1) is determined to be ``economically significant'' 
as defined under Executive Order 12866, and (2) concerns an 
environmental health or safety risk that we have reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, section 5-501 of the Executive Order directs us to 
evaluate the environmental health or safety effects of the planned rule 
on children, and explain why the planned regulation is preferable to 
other potentially effective and reasonably feasible alternatives 
considered by us.
    This rule is not subject to the Executive Order because it is not 
an economically significant regulatory action as defined by Executive 
Order 12866. Furthermore, this rule does not concern an environmental 
health or safety risk that we have reason to believe may have a 
disproportionate effect on children.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This rule is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355, May 22, 2001) because it is not a 
significant regulatory action under Executive Order 12866.

I. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), section 12(d) of Public Law 104-113, directs us to 
use voluntary consensus standards in our regulatory activities unless 
it would be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., materials 
specifications, test methods, sampling procedures, and business 
practices) developed or adopted by voluntary consensus standards 
bodies. The NTTAA directs us to provide Congress, through OMB, 
explanations when we decide not to use available and applicable 
voluntary consensus standards.
    This rule references technical standards adopted by us through 
previous rulemakings. No new technical standards are established in 
today's rule. The standards referenced in today's rule involve the 
measurement of gasoline fuel parameters and motor vehicle emissions.

J. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, 
generally provides that before a rule may take effect, the agency 
promulgating the rule must submit a rule report, which includes a copy 
of the rule, to Congress and the comptroller General of the United 
States. We will submit a report containing this rule and other required 
information to the U.S. Senate, the U.S. House of Representatives, and 
the Comptroller General of the United States prior to publication of 
the rule in the Federal Register. A major rule cannot take effect until 
60 days after it is published in the Federal Register. This action is 
not a ``major rule'' as defined by 5 U.S.C. 804(2). This rule will be 
effective March 6, 2003.

III. Statutory Provisions and Legal Authority

    Statutory authority for today's final rule is found in the Clean 
Air Act, 42 U.S.C. 7401 et seq., in particular, section 202 of the Act, 
42 U.S.C. 7521. This rule is being promulgated under the administrative 
and procedural provisions of Clean Air Act section 307(d), 42 U.S.C. 
7607(d).

List of Subjects in 40 CFR Part 86

    Environmental protection, Administrative practice and procedure, 
Motor vehicle pollution.

    Dated: November 26, 2002.
Christine Todd Whitman,
Administrator.
    For the reasons set forth in the preamble, chapter I, title 40 of 
the Code of Federal Regulations is amended as follows:

PART 86--CONTROL OF EMISSIONS FROM NEW AND IN-USE HIGHWAY VEHICLES 
AND ENGINES

    1. The authority citation for part 86 is revised to read as 
follows:

    Authority: 42 U.S.C. 7401-7671q.

Subpart S--[Amended]

    2. Section 86.1801-01 is amended by revising paragraph (d) to read 
as follows:


Sec.  86.1801-01  Applicability.

* * * * *
    (d) Small volume manufacturers. Special certification procedures 
are available for any manufacturer whose projected or actual combined 
sales in all states and territories of the United States of light-duty 
vehicles, light-duty trucks, heavy-duty vehicles, and heavy-duty 
engines in its product line (including all vehicles and engines 
imported under the provisions of 40 CFR 85.1505 and 85.1509) are fewer 
than 15,000 units for the model year in which the manufacturer seeks 
certification. The small volume manufacturer's light-duty vehicle and 
light-duty truck certification procedures and described in Sec.  
86.1838-01.
* * * * *
    3. Section 86.1811-04 is amended by:

    a. Revising paragraph (c)(4)(iv);
    b. Revising Table S04-2 in paragraph (c)(6);
    c. Revising paragraph (f)(4); and
    d. Adding paragraph (f)(7).
    The revisions and additions read as follows:


Sec.  86.1811-04  Emission standards for light-duty vehicles, light-
duty trucks and medium-duty passenger vehicles.

* * * * *
    (c) * * *
    (4) * * *
    (iv) For diesel vehicles certified to bin 9 or bin 10, intermediate 
life standards are optional regardless of whether the manufacturer 
certifies the test group to a full useful life of 120,000 miles or 
150,000 miles.
* * * * *

[[Page 72826]]

    (6) * * *

                   Table S04-2.--Tier 2 and Interim Non-Tier 2 Intermediate Useful Life (50,000 mile) Exhaust Mass Emission Standards
                                                                    [grams per mile]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Bin No.                          NOX          NMOG           CO          HCHO           PM                     Notes
--------------------------------------------------------------------------------------------------------------------------------------------------------
11..............................................        0.6            0.195        5.0           0.022  ..........  a c f h
10..............................................        0.4      0.125/0.160    3.4/4.4     0.015/0.018  ..........  a b d f g h
9...............................................        0.2      0.075/0.140        3.4           0.015  ..........  a b c f g h
8...............................................        0.14     0.100/0.125        3.4           0.015  ..........  b f h i
7...............................................        0.11           0.075        3.4           0.015  ..........  f h
6...............................................        0.08           0.075        3.4           0.015  ..........  f h
5...............................................        0.05           0.075        3.4           0.015  ..........  f h
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a\ This bin deleted at end of 2006 model year (end of 2008 model year for HLDTs and MDPVs).
\b\ Higher NMOG, CO and HCHO values apply for HLDTs and MDPVs only.
\c\ This bin is only for MDPVs.
\d\ Optional NMOG standard of 0.195 g/mi applies for qualifying LDT4s and qualifying MDPVs only.
\e\ Optional NMOG standard of 0.100 g/mi applies for qualifying LDT2s only.
\f\ The full useful life PM standards from Table S04-1 also apply at intermediate useful life.
\g\ Intermediate life standards of this bin are optional for diesels.
\h\ Intermediate life standards are optional for vehicles certified to a useful life of 150,000 miles.
\i\ Higher NMOG standard deleted at end of 2008 model year.

    (f) * * *
    (4) Interim non-Tier 2 gasoline, diesel and flexible-fueled LDV/
LLDTs certified to bin 10 FTP exhaust emission standards from Table 
S04-1 in paragraph (c) of this section may meet the gasoline Tier 1 
SFTP requirements found at Sec. Sec.  86.1811-01(b), 86.1812-01(b), 
86.1813-01(b), for LDVs, LDT1s, and LDT2s, respectively.
* * * * *
    (7) For diesel vehicles certified to the bin 9 or bin 10 standards 
of paragraph (c) of this section, 4000 mile SFTP and intermediate life 
SFTP standards are optional regardless of whether the manufacturer 
certifies the test group to a full useful life of 120,000 miles or 
150,000 miles.
* * * * *

    4. Section 86.1838-01 is amended by revising paragraphs (b)(1)(i), 
(b)(1)(ii), and (b)(2)(i) to read as follows:


Sec.  86.1838-01  Small volume manufacturer certification procedures.

* * * * *
    (b) * * *
    (1) * * *
    (i) The optional small-volume manufacturers certification 
procedures apply to LDV/Ts and MDPVs produced by manufacturers with 
sales in all states and territories of the United States, including all 
vehicles and engines imported under provisions of 40 CFR 85.1505 and 
85.1509 (for the model year in which certification is sought) of fewer 
than 15,000 units (LDV/Ts, MDPVs, heavy-duty vehicles and heavy-duty 
engines combined).
    (ii) If the aggregated sales in all states and territories of the 
United States of the manufacturer, as determined in paragraph (b)(3) of 
this section are fewer than 15,000 units, the manufacturer (or each 
manufacturer in the case of manufacturers in an aggregated 
relationship) may certify under the provisions of paragraph (c) of this 
section.
    (2) * * *
    (i) If the aggregated sales in all states and territories of the 
United States, as determined in paragraph (b)(3) of this section are 
equal to or greater than 15,000 units, then the manufacturer (or each 
manufacturer in the case of manufacturers in an aggregated 
relationship) will be allowed to certify a number of units under the 
small volume test group certification procedures in accordance with the 
criteria identified in paragraphs (b)(2)(ii) through (iv) of this 
section.
* * * * *
[FR Doc. 02-30843 Filed 12-5-02; 8:45 am]
BILLING CODE 6560-50-P