Light Truck Average Fuel Economy Standard, Model Year 1988, B

Light Truck Average Fuel Economy Standard, Model Year 1988, B BNUMBER: B-271810.2 DATE: May 7, 1996 TITLE: Light Truck Average Fuel Economy Standard, Model Year 1988, B -271810.2, May 7, 1996 ********************************************************************** B-271810.2 May 7, 1996 The Honorable Larry Pressler Chairman The Honorable Ernest F. Hollings Ranking Minority Member Committee on Commerce, Science, and Transportation United States Senate The Honorable Thomas J. Bliley, Jr. Chairman The Honorable John D. Dingell Ranking Minority Member Committee on Commerce House of Representatives Subject:Light Truck Average Fuel Economy Standard, Model Year 1988 Pursuant to section 801(a)(2)(A) of title 5 United States Code, this is our report on a major rule promulgated by the National Highway Traffic Safety Administration (NHTSA), Department of Transportation, entitled "Light Truck Average Fuel Economy Standard, Model Year 1998" (RIN 2127-AF16). We received the rule on April 22, 1996. It was published in the Federal Register as a final rule on April 3, 1996. 61 Fed. Reg. 14680. Section 32902(a) of title 49, United States Code, requires the Secretary of Transportation to prescribe by regulation, at least 18 months in advance of each model year, average fuel economy standards (known as "Corporate Average Fuel Economy" or "CAFE" standards) for non-passenger automobiles manufactured in that model year. Under subsections 32902(a) and (f), the standard is to be the maximum feasible average fuel economy level that the Secretary decides manufacturers can achieve in that model year taking into consideration technological feasibility, economic practicability, the effect of other Government motor vehicle standards on fuel economy, and the need of the United States to conserve energy.[1] The light truck CAFE standard for model year 1997 was established at 20.7 miles per gallon (mpg). During the development of the CAFE standard for model year 1998, the Department of Transportation and Related Agencies Appropriations Act, 1996, Pub. L. No. 104-50 (Nov. 15, 1995), 109 Stat. 436, was enacted. Section 330 of the Appropriations Act, 109 Stat. 457, provides: "None of the funds in this Act shall be available to prepare, propose, or promulgate any regulations pursuant to title V of the Motor Vehicle Information and Cost Savings Act (49 U.S.C. 32901, et seq.) prescribing corporate average fuel economy standards for automobiles, as defined in such title, in any model year that differs from standards promulgated for such automobiles prior to the enactment of this section." NHTSA interprets section 330 of the Appropriations Act as requiring it to prescribe the same light truck CAFE standard for model year 1998 that applies to model year 1997. Accordingly, the rule continues the 20.7 mpg standard for 1998. Enclosed is our assessment of NHTSA's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. As discussed in the enclosure, NHTSA did not follow many of the steps that ordinarily would apply to the rule, based in part on its interpretation that section 330 of the Appropriations Act required it to fix the 1998 standard at 20.7 mpg and thereby deprived the agency of any discretion over the standard. NHTSA's interpretation of section 330, while not necessarily the only plausible approach, is supported by the language and legislative history of this provision. Nevertheless, we do not view section 330 as exempting the rulemaking from the requirements referred to in 5 U.S.C. sec. 801(a)(B)(i) through (iv), particularly the analysis called for by 49 U.S.C. sec. 32902. If you have any questions about this report, please contact Henry R. Wray, Senior Associate General Counsel, at (202) 512-8581. The official responsible for GAO's evaluation work relating to the Department of Transportation is John H. Anderson, Director of Transportation and Telecommunications Issues. Mr. Anderson can be reached at (202) 512-2834. Sincerely yours, Robert P. Murphy General Counsel Enclosure cc: Ms. Nancy E. McFadden General Counsel Department of Transportation ENCLOSURE ANALYSIS OF NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 1998 LIGHT TRUCK CAFE STANDARD RULE UNDER 5 U.S.C. sec. 801(a)(1)(B)(i)-(iv) (i)Cost-benefit analysis On January 3, 1996, NHTSA published a notice of proposed rulemaking which proposed a 1998 standard of 20.7 mpg. See 61 Fed. Reg. 145. The Supplementary Information accompanying the proposed rule contains a discussion and assessment of the economic impacts of the proposed standard, including its potential costs, benefits, and alternatives.