53442 Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Proposed Rules

States Coast Guard, and local or state glider vehicles would be found not to other file sharing system). For law enforcement vessels, are prohibited constitute ‘‘new motor vehicles’’ within additional submission methods, the full from entering the restricted area without the meaning of CAA section 216(3), EPA public comment policy, permission from the USAF 81st Security glider engines would be found not to information about CBI or multimedia Forces Anti-Terrorism Office, KAFB or constitute ‘‘new motor vehicle engines’’ submissions, and general guidance on its authorized representative. within the meaning of CAA section making effective comments, please visit (2) The restricted area is in effect 216(3), and glider kits would not be http://www.epa.gov/dockets/ twenty-four hours per day and seven treated as ‘‘incomplete’’ new motor commenting-epa-dockets. days a week (24/7). vehicles. Under this proposed Docket: All documents in the docket (3) Should warranted access into the interpretation, EPA would lack are listed on the www.regulations.gov restricted navigation area be needed, all authority to regulate glider vehicles, Web site. Although listed in the index, entities are required to contact the glider engines, and glider kits under some information is not publicly USAF 81st Security Forces Anti- CAA section 202(a)(1). available, e.g., confidential business Terrorism Office, KAFB, Biloxi, DATES: information or other information whose Mississippi, or its authorized Comments: Comments on all aspects disclosure is restricted by statute. representative. of this proposal must be received on or Certain other material, such as (c) Enforcement. The regulation in before January 5, 2018. copyrighted material, is not placed on this section shall be enforced by the Public Hearing: EPA will hold a the Internet and will be publicly USAF 81st Security Forces Anti- public hearing on Monday, December 4, available only in hard copy form. Terrorism Office, KAFB and/or such 2017. The hearing will be held at EPA’s Publicly available docket materials are agencies or persons as that office may Washington, DC campus located at 1201 available either electronically through designate. Constitution Avenue NW., Washington, www.regulations.gov or in hard copy at Dated: November 9, 2017. DC. The hearing will start at 10:00 a.m. the following location: Thomas P. Smith, local time and continue until everyone Air and Radiation Docket and Chief, Operations and Regulatory Division, has had a chance to speak. More details Information Center, EPA Docket Center, Directorate of Civil Works. concerning the hearing can be found at EPA/DC, EPA WJC West Building, 1301 [FR Doc. 2017–24892 Filed 11–15–17; 8:45 am] https://www.epa.gov/regulations- Constitution Ave. NW., Room 3334, BILLING CODE 3720–58–P emissions-vehicles-and-engines/ Washington, DC. The Public Reading regulations-greenhouse-gas-emissions- Room is open from 8:30 a.m. to 4:30 commercial-. p.m., Monday through Friday, excluding ENVIRONMENTAL PROTECTION ADDRESSES: Submit your comments, legal holidays. The telephone number AGENCY identified by Docket ID No. EPA–HQ– for the Public Reading Room is (202) OAR–2014–0827, at http:// 566–1744, and the telephone number for 40 CFR Parts 1037 and 1068 www.regulations.gov. Follow the online the Air Docket is (202) 566–1742. instructions for submitting comments. [EPA–HQ–OAR–2014–0827; FRL–9970–61– FOR FURTHER INFORMATION CONTACT: Julia Once submitted, comments cannot be OAR] MacAllister, Office of Transportation edited or removed from Regulations.gov. and Air Quality, Assessment and RIN 2060–AT79 The EPA may publish any comment Standards Division, Environmental received to its public docket. Do not Protection Agency, 2000 Traverwood Repeal of Emission Requirements for submit electronically any information Drive, Ann Arbor, MI 48105; telephone Glider Vehicles, Glider Engines, and you consider to be Confidential number: 734–214–4131; email address: Glider Kits Business Information (CBI) or other [email protected]. AGENCY: Environmental Protection information whose disclosure is Agency (EPA). restricted by statute. Multimedia SUPPLEMENTARY INFORMATION: ACTION: Proposed rule. submissions (audio, video, etc.) must be Does this action apply to me? accompanied by a written comment. SUMMARY: The Environmental Protection The written comment is considered the This action relates to a previously Agency (EPA) is proposing to repeal the official comment and should include promulgated final rule that affects emission standards and other discussion of all points you wish to companies that manufacture, sell, or requirements for heavy-duty glider make. The EPA will generally not import into the United States glider vehicles, glider engines, and glider kits consider comments or comment vehicles. Proposed categories and based on a proposed interpretation of contents located outside of the primary entities that might be affected include the Clean Air Act (CAA) under which submission (i.e., on the Web, cloud, or the following:

Category NAICS code a Examples of potentially affected entities

Industry ...... 336110, 336111, 336112, 333618, Motor Vehicle Manufacturers, Engine Manufacturers, Engine Parts 336120, 441310. Manufacturers, Manufacturers, Automotive Parts and Acces- sories Dealers. Note: a North American Industry Classification System (NAICS).

This table is not intended to be types of entities not listed in the table questions regarding the applicability of exhaustive, but rather provides a guide could also be regulated. To determine this action to the persons listed in the for readers regarding entities likely whether your activities are regulated by preceding FOR FURTHER INFORMATION covered by these rules. This table lists this action, you should carefully CONTACT section. the types of entities that we are aware examine the applicability criteria in the may be regulated by this action. Other referenced regulations. You may direct

VerDate Sep<11>2014 14:41 Nov 15, 2017 Jkt 244001 PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 E:\FR\FM\16NOP1.SGM 16NOP1 nshattuck on DSK9F9SC42PROD with PROPOSALS Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Proposed Rules 53443

I. Introduction Manufacturers Ass’n. v. State Farm transporting persons or property on a The basis for the proposed repeal of Mutual Automobile Insurance Co., 463 street or highway.’’ 42 U.S.C. 7550(2). A those provisions of the final rule U.S. 29, 59 (1983) (Rehnquist, J., ‘‘new motor vehicle’’ is defined in CAA entitled Greenhouse Gas Emissions and concurring in part and dissenting in section 216(3) to mean, as is relevant Fuel Efficiency Standards for Medium- part). here, a ‘‘motor vehicle the equitable or and Heavy-Duty Engines and Vehicles— After reconsidering the statutory legal title to which has never been Phase 2 (the Phase 2 rule) 1 that apply language, EPA proposes to adopt a transferred to an ultimate purchaser.’’ to glider vehicles, glider engines, and reading of the relevant provisions of the 42 U.S.C. 7550(3) (emphasis added). A glider kits is EPA’s proposed CAA under which the Agency would ‘‘new motor vehicle engine’’ is similarly interpretation of CAA section 202(a)(1) lack authority under CAA section defined as an ‘‘engine in a new motor and sections 216(2) and 216(3), which is 202(a)(1) to impose requirements on vehicle’’ or a ‘‘motor vehicle engine the discussed below. Under this proposed glider vehicles, glider engines, and equitable or legal title to which has interpretation: (1) Glider vehicles would glider kits and therefore proposes to never been transferred to the ultimate 3 not be treated as ‘‘new motor vehicles,’’ remove the relevant rule provisions. At purchaser.’’ Id. (2) glider engines would not be treated the same time, under CAA section Comments submitted to EPA during as ‘‘new motor vehicle engines,’’ and (3) 202(a)(3)(D), EPA is authorized to the Phase 2 rulemaking stated that ‘‘prescribe requirements to control’’ the gliders are approximately 25% less glider kits would not be treated as 4 ‘‘incomplete’’ new motor vehicles. ‘‘practice of rebuilding heavy-duty expensive than new trucks, which engines,’’ including ‘‘standards makes them popular with small Based on this proposed interpretation, 5 EPA would lack authority to regulate applicable to emissions from any rebuilt businesses and owner-operators. In glider vehicles, glider engines, and heavy-duty engines.’’ 42 U.S.C. contrast to an older vehicle, a glider 7521(a)(3)(D).2 If the interpretation requires less maintenance and yields glider kits under CAA section 202(a)(1). 6 This proposed interpretation is a being proposed here were to be less downtime. A glider has the same departure from the position taken by finalized, EPA’s authority to address braking, lane drift devices, dynamic EPA in the Phase 2 rule. There, EPA heavy-duty engine rebuilding practices cruise control, and blind spot detection interpreted the statutory definitions of under CAA section 202(a)(3)(D) would devices that are found on current model ‘‘new motor vehicle’’ and ‘‘new motor not be affected. year heavy-duty trucks, making it a safer vehicle engines’’ in CAA section 216(3) vehicle to operate, compared to the II. Background 7 as including glider vehicles and glider older truck that it is replacing. engines, respectively. The proposed A. Factual Context Some commenters questioned EPA’s interpretation also departs from EPA’s authority to regulate glider vehicles as A glider vehicle (sometimes referred ‘‘new motor vehicles,’’ to treat glider position in the Phase 2 rule that CAA to simply as a ‘‘glider’’) is a truck that section 202(a)(1) authorizes the Agency engines as ‘‘new motor vehicle utilizes a previously owned powertrain engines,’’ or to impose requirements on to treat glider kits as ‘‘incomplete’’ new (including the engine, the , motor vehicles. glider kits. Commenters also pointed out and usually the rear ) but which has what they described as the overall It is settled law that EPA has inherent new body parts. When these new body authority to reconsider, revise, or repeal environmental benefits of gliders. For parts (which generally include the instance, one commenter stated that past decisions to the extent permitted by tractor chassis with frame, front axle, law so long as the Agency provides a ‘‘rebuilding an engine and transmission , and cab) are put together to form uses 85% less energy than reasoned explanation. This authority the ‘‘shell’’ of a truck, the assemblage of manufacturing them new.’’ 8 Another exists in part because EPA’s parts is referred to collectively as a commenter noted that the use of glider interpretations of the statutes it ‘‘glider kit.’’ The final manufacturer of vehicles ‘‘improves utilization and administers ‘‘are not carved in stone.’’ the glider vehicle, i.e., the entity that reduces the number of trucks required Chevron U.S.A. Inc. v. NRDC, Inc. 467 takes the assembled glider kit and to haul the same tonnage of freight.’’ 9 U.S. 837, 863 (1984). If an agency is to combines it with the used powertrain This same commenter further asserted ‘‘engage in informed rulemaking,’’ it salvaged from a ‘‘donor’’ truck, is that glider vehicles utilizing ‘‘newly ‘‘must consider varying interpretations typically a different manufacturer than rebuilt engines’’ produce less and the wisdom of its policy on a the original manufacturer of the glider ‘‘particulate, NO , and GHG emissions continuing basis.’’ Id. at 863–64. This is kit. See 81 FR 73512–13 (October 25, X true when, as is the case here, review is 2016). 3 undertaken ‘‘in response to . . . a The definitions of both ‘‘new motor vehicle’’ B. Statutory and Regulatory Context and ‘‘new motor vehicle engine’’ are contained in change in administration.’’ National the same paragraph (3), reflecting the fact that Cable & Telecommunications Ass’n v. Section 202(a)(1) of the CAA directs ‘‘[w]henever the statute refers to ‘new motor Brand X Internet Services, 545 U.S. 967, that EPA ‘‘shall by regulation vehicle’ the phrase is followed by ‘or new motor vehicle engine.’ ’’ See Motor and Equipment 981 (2005). A ‘‘change in administration prescribe,’’ in ‘‘accordance with the Manufacturers Ass’n v. EPA, 627 F.2d 1095, 1102 brought about by the people casting provisions’’ of section 202, ‘‘standards n.5 (D.C. Cir. 1979). As Title II currently reads, the their votes is a perfectly reasonable applicable to the emission of any air term ‘‘new motor vehicle’’ appears some 32 times, basis for an executive agency’s pollutant from any . . . new motor and in all but two instances, the term is accompanied by ‘‘new motor vehicle engine,’’ reappraisal of the costs and benefits of vehicles or new motor vehicle engines.’’ indicating that, at the inception of Title II, Congress its programs and regulations,’’ and so 42 U.S.C. 7521(a)(1). CAA section 216(2) understood that the regulation of engines was long as an agency ‘‘remains within the defines ‘‘motor vehicle’’ to mean ‘‘any essential to control emissions from ‘‘motor bounds established by Congress,’’ the self-propelled vehicle designed for vehicles.’’ agency ‘‘is entitled to assess 4 Response to Comments for Joint Rulemaking, EPA–426–R–16–901 (August 2016) at 1846. 2 EPA has adopted regulations that address engine administrative records and evaluate 5 EPA–HQ–OAR–2014–0827–1964. rebuilding practices. See, e.g., 40 CFR 1068.120. priorities in light of the philosophy of 6 EPA is not proposing in this action to adopt EPA–HQ–OAR–2014–0827–1005. the administration.’’ Motor Vehicle additional regulatory requirements pursuant to 42 7 Id. U.S.C. 7521(a)(3)(D) that would apply to rebuilt 8 EPA–HQ–OAR–2014–0827–1964. 1 81 FR 73478 (October 25, 2016). engines installed in glider vehicles. 9 EPA–HQ–OAR–2014–0827–1005.

VerDate Sep<11>2014 14:41 Nov 15, 2017 Jkt 244001 PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\16NOP1.SGM 16NOP1 nshattuck on DSK9F9SC42PROD with PROPOSALS 53444 Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Proposed Rules

. . . compared to [a] worn oil burning standards.’’ Id. In support, the indicated that it had ‘‘decided to revisit engine which is beyond its useful petitioners included as an exhibit to the provisions in the Phase 2 Rule that life.’’ 10 their petition a letter from the President relate to gliders,’’ and that the Agency In the Phase 2 rule, EPA found that it of the Tennessee Technological ‘‘intends to develop and issue a Federal was ‘‘reasonable’’ to consider glider University (‘‘Tennessee Tech’’), which Register notice of proposed rulemaking vehicles to be ‘‘new motor vehicles’’ described a study recently conducted by on this matter, consistent with the under the definition in CAA section Tennessee Tech. This study, according requirements of the Clean Air Act.’’ 13 216(3). See 81 FR 73514 (October 25, to the petitioners, had ‘‘analyz[ed] the III. Basis for the Proposed Repeal 2016). Likewise, EPA found that the NOX, PM, and carbon monoxide . . . previously owned engines utilized by emissions from both remanufactured A. Statutory Analysis glider vehicles should be considered to and OEM engines,’’ and ‘‘reached a EPA is proposing that the statutory be ‘‘new motor vehicle engines’’ within contrary conclusion’’ regarding glider interpretations on which the Phase 2 the statutory definition. Based on these vehicle emissions. Petition at 5. rule predicated its regulation of glider interpretations, EPA determined that it The petitioners maintained that the vehicles, glider engines, and glider kits had authority under CAA section 202(a) results of the study ‘‘showed that were incorrect. EPA proposes an to subject glider vehicles and glider remanufactured engines from model interpretation of the relevant language engines to the requirements of the Phase years between 2002 and 2007 performed 2 rule. As for glider kits, EPA found that roughly on par with OEM ‘certified’ of the CAA under which glider vehicles if glider vehicles are new motor engines,’’ and ‘‘in some instances even are excluded from the statutory term vehicles, then the Agency was out-performed the OEM engines.’’ Id. ‘‘new motor vehicles’’ and glider authorized to regulate glider kits as The petitioners further claimed that the engines are excluded from the statutory ‘‘incomplete’’ new motor vehicles. Id. Tennessee Tech research ‘‘ ‘showed that term ‘‘new motor vehicle engines,’’ as remanufactured and OEM engines both terms are defined in CAA section C. Petition for Reconsideration experience parallel decline in emissions 216(3). Consistent with this Following promulgation of the Phase efficiency with increased mileage.’ ’’ Id., interpretation of the scope of ‘‘new 2 rule, EPA received from quoting Tennessee Tech letter at 2. motor vehicle,’’ EPA is further representatives of the glider industry a Based on the Tennessee Tech study, the proposing that it has no authority to joint petition requesting that the Agency petitioners asserted that ‘‘glider vehicles treat glider kits as ‘‘incomplete’’ new reconsider the application of the Phase would emit less than 12% of the total motor vehicles under CAA section 202(a)(1). 2 rule to glider vehicles, glider engines, NOX and PM emissions for all Class 8 and glider kits.11 The petitioners made heavy duty vehicles . . . not 33% as the As was noted, a ‘‘new motor vehicle’’ three principal arguments in support of Phase 2 Rule suggests.’’ Id., citing 81 FR is defined by CAA section 216(3) to their petition. First, they argued that 73943. mean, in relevant part, a ‘‘motor vehicle EPA is not authorized by CAA section Further, the petitioners complained the equitable or legal title to which has 202(a)(1) to regulate glider kits, glider that the Phase 2 rule had ‘‘failed to never been transferred to an ultimate vehicles, or glider engines. Petition at consider the significant environmental purchaser.’’ 42 U.S.C. 7550(3). In basic 3–4. Second, the petitioners contended benefits that glider vehicles create.’’ terms, a glider vehicle consists of the that in the Phase 2 rule EPA ‘‘relied Petition at 6 (emphasis in original). new components that make up a glider upon unsupported assumptions to ‘‘Glider vehicle GHG emissions are less kit, into which a previously owned arrive at the conclusion that immediate than those of OEM vehicles,’’ the powertrain has been installed. Prior to regulation of glider vehicles was petitioners contended, ‘‘due to gliders’ the time a completed glider vehicle is warranted and necessary.’’ Id. at 4. greater fuel efficiency,’’ and the ‘‘carbon sold, it can be said that the vehicle’s Third, the petitioners asserted that footprint of gliders is further reduced by ‘‘equitable or legal title’’ has yet to be reconsideration was warranted under the savings created by recycling ‘‘transferred to an ultimate purchaser.’’ Executive Order 13783. Id. at 6. materials.’’ Id. The petitioners It is on this basis that the Phase 2 rule The petitioners took particular issue represented that ‘‘[g]lider assemblers found that a glider vehicle fits within with what they characterized as EPA’s reuse approximately 4,000 pounds of the definition of ‘‘new motor vehicle.’’ having ‘‘assumed that the nitrogen oxide cast steel in the remanufacturing 81 FR 73514 (October 25, 2016). EPA’s rationale for applying this (‘NOX’) and particulate matter (‘PM’) process,’’ including ‘‘3,000 pounds for emissions of glider vehicles using pre- the engine assembly alone.’’ Id. The reading of the statutory language was 2007 engines’’ would be ‘‘at least ten petitioners pointed out that ‘‘[r]eusing that ‘‘[g]lider vehicles are typically times higher than emissions from these components avoids the marketed and sold as ‘brand new’ equivalent vehicles being produced environmental impact of casting steel, trucks.’’ 81 FR 73514 (October 25, 2016). EPA took note of one glider kit with brand new engines.’’ Petition at 5, including the significant associated NOX citing 81 FR 73942. According to the emissions.’’ Id. This ‘‘fact,’’ the manufacturer’s own advertising petitioners, EPA had ‘‘relied on no petitioners argued, is something that materials that represented that the actual data to support this conclusion,’’ EPA should have been considered but company had ‘‘ ‘mastered the process of but had ‘‘simply relied on the pre-2007 was ‘‘not considered in the development taking the ‘Glider Kit’ and installing the of the Phase 2 rule.’’ Id. components to work seamlessly with the 10 Id. EPA responded to the glider industry new truck.’ ’’ Id. (emphasis added in 11 See Petition for Reconsideration of Application representatives’ joint petition by original). EPA stated that the ‘‘purchaser of the Final Rule Entitled ‘‘Greenhouse Gas separate letters on August 17, 2017, of a ‘new truck’ necessarily takes initial Emissions and Fuel Efficiency Standards for title to that truck.’’ Id. (citing statements Medium- and Heavy-Duty Engines and Vehicles— stating that the petition had ‘‘raise[d] Phase 2 Final Rule’’ to Gliders, from Fitzgerald significant questions regarding the Glider Kits, LLC; Harrison Truck Centers, Inc.; and Fitzgerald Glider Kits (Aug. 17, 2017). Available in EPA’s authority under the Clean Air Act the rulemaking docket, EPA–HQ–OAR–2014–0827, Indiana Phoenix, Inc. (July 10, 2017) (Petition). 12 Available in the rulemaking docket, EPA–HQ– to regulate gliders.’’ EPA further and at https://www.epa.gov/sites/production/files/ OAR–2014–0827, and at https://www.epa.gov/sites/ 2017-08/documents/hd-ghg-phase2-ttma-ltr-2017- production/files/2017-07/documents/hd-ghg-fr- 12 See, e.g., Letter from E. Scott Pruitt, EPA 08-17.pdf. fitzgerald-recons-petition-2017-07-10.pdf. Administrator, to Tommy C. Fitzgerald, President, 13 Id.

VerDate Sep<11>2014 14:41 Nov 15, 2017 Jkt 244001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\16NOP1.SGM 16NOP1 nshattuck on DSK9F9SC42PROD with PROPOSALS Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Proposed Rules 53445

on the glider kit manufacturer’s Web Assessed in light of these principles, Amendments of 1965, Public Law 89– site). EPA rejected arguments raised in it is clear that EPA’s reading of the 272 (1965 CAA). Included in the 1965 comments that ‘‘this ‘new truck’ statutory definition of ‘‘new motor CAA was a brand new Title II, the terminology is a mere marketing ploy.’’ vehicle’’ in the Phase 2 rule fell short. ‘‘Motor Vehicle Air Pollution Control Id. Rather, EPA stated, ‘‘it obviously First, that reading failed to account for Act,’’ the structure and language of reflects reality.’’ Id. the fact that, at the time this definition which largely mirrored key provisions In proposing a new interpretation of of ‘‘new motor vehicle’’ was enacted, it of Title II as it exists today. Section the relevant statutory language, EPA is likely that Congress did not have in 202(a) of the 1965 CAA provided that now believes that its prior reading was mind that the definition would be the ‘‘Secretary [of what was then the not the best reading, and that the construed as applying to a vehicle Department of Health, Education and Agency failed to consider adequately comprised of new body parts and a Welfare] shall by regulation, giving the most important threshold previously owned powertrain. The appropriate consideration to consideration: i.e., whether or not manufacture of glider vehicles to technological feasibility and economic Congress, in defining ‘‘new motor salvage the usable powertrains of trucks costs, prescribe . . . standards vehicle’’ for purposes of Title II, had a wrecked in accidents goes back a applicable to the emission of any kind specific intent to include within the number of years.14 But only more of substance, from any class or classes statutory definition such a thing as a recently—after the enactment of Title of new motor vehicles or new motor glider vehicle—a vehicle comprised II—have glider vehicles been produced vehicle engines, which in his judgment both of new and previously owned in any great number. cause or contribute to, or are likely to components. See Chevron, 467 U.S. at Furthermore, the concept of deeming cause or to contribute to, air pollution 843 n.9 (Where the ‘‘traditional tools of a motor vehicle to be ‘‘new’’ based on which endangers the health or welfare statutory construction’’ allow one to its ‘‘equitable or legal title’’ not having of any persons . . . .’’ Public Law 89– ‘‘ascertain[ ] that Congress had an been transferred to an ‘‘ultimate 272, 79 Stat. 992 (emphasis added). intention on the precise question at purchaser’’ appears to have originated Section 208 of the 1965 CAA defined issue,’’ that ‘‘intention is the law and with an otherwise unrelated federal ‘‘motor vehicle’’ in terms identical to must be given effect.’’). Where statute that predated Title II by a few those in the CAA today: ‘‘any self- ‘‘Congress has not directly addressed years—i.e., the Automobile Information propelled vehicle designed for the precise question at issue,’’ and the Disclosure Act of 1958, Public Law 85– transporting persons or property on a ‘‘statute is silent or ambiguous with 506 (Disclosure Act).15 The history of street or highway.’’ Public Law 89–272, respect to the specific issue,’’ it is left Title II’s initial enactment and 79 Stat. 995. The 1965 CAA defined to the agency charged with subsequent development indicates that, ‘‘new motor vehicle’’ and ‘‘new motor implementing the statute to provide an in adopting a definition of ‘‘new motor vehicle engine’’ to mean, as relevant ‘‘answer based on a permissible vehicle’’ for purposes of the Clean Air here, ‘‘a motor vehicle the equitable or construction of the statute.’’ Id. at 843. Act, Congress drew on the approach it legal title to which has never been Focusing solely on that portion of the had taken originally with the Disclosure transferred to an ultimate purchaser; statutory definition that provides that a Act. and the term ‘new motor vehicle motor vehicle is considered ‘‘new’’ prior Among other things, the Disclosure engine’ ’’ to mean ‘‘an engine in a new to the time its ‘‘equitable or legal title’’ Act requires that a label be affixed to the motor vehicle or a motor vehicle engine has been ‘‘transferred to an ultimate windshield or side window of new the equitable or legal title to which has purchaser,’’ a glider vehicle would automobiles, with the label providing never been transferred to the ultimate appear to qualify as ‘‘new.’’ As the such information as the Manufacturer’s purchaser.’’ Id. Again, in relevant part, Supreme Court has repeatedly Suggested Retail Price. See 15 U.S.C. the 1965 CAA definitions of these terms counseled, however, that is just the 1232 (‘‘Every manufacturer of new were identical to those that currently beginning of a proper interpretive automobiles distributed in commerce appear in CAA section 216(3). analysis. The ‘‘definition of words in shall, prior to the delivery of any new While the legislative history of the isolation,’’ the Court has noted, ‘‘is not automobile to any dealer, or at or prior 1965 CAA does not expressly indicate necessarily controlling in statutory to the introduction date of new models that Congress based its definition of construction.’’ See Dolan v. United delivered to a dealer prior to such ‘‘new motor vehicle’’ on the definition States Postal Service, 546 U.S. 481, 486 introduction date, securely affix to the of ‘‘new automobile’’ first adopted by (2006). Rather, the ‘‘interpretation of a windshield, or side window of such the Automobile Information Disclosure word or phrase depends upon reading automobile a label . . . .’’) (emphases Act of 1958, it seems clear that such was the whole statutory text, considering the added). The Disclosure Act defines the the case. The statutory language of the purpose and context of the statute,’’ and term ‘‘automobile’’ to ‘‘include[ ] any two provisions is identical in all ‘‘consulting any precedents or passenger or station wagon,’’ and pertinent respects,16 and there appears authorities that inform the analysis.’’ Id. defines the term ‘‘new automobile’’ to to be no other federal statute, in Similarly, in seeking to ‘‘determine mean ‘‘an automobile the equitable or existence prior to enactment of the 1965 congressional intent, using traditional legal title to which has never been tools of statutory construction,’’ the transferred by a manufacturer, 16 Further, the 1965 CAA’s definition of ‘‘ultimate ‘‘starting point is the language of the distributor, or dealer to an ultimate purchaser,’’ as set forth in section 208(5), for the statute.’’ See Dole v. United purchaser.’’ See 15 U.S.C. 1231(c), (d). most part tracks the Disclosure Act’s earlier-enacted Steelworkers of America, 494 U.S. 26, In 1965, Congress amended the then- definition: ‘‘The term ‘ultimate purchaser’ means, 35 (1990) (emphasis added) (internal with respect to any new automobile, the first existing Clean Air Act, and for the first person, other than a dealer purchasing in his citation omitted). At the same time, ‘‘in time enacted provisions directed at the capacity as a dealer, who in good faith purchases expounding a statute,’’ one is not to be control of air pollution from motor such new automobile for purposes other than ‘‘guided by a single sentence or member vehicles. See Clean Air Act resale.’’ Compare 1965 CAA section 208(5), Public of a sentence,’’ but is to ‘‘look to the Law 89–272, 79 Stat. 995 with 15 U.S.C. 1231(g). Such is the case, too, with respect to the 1965 provisions of the whole law, and to its 14 EPA–HQ–OAR–2014–0827–1964. CAA’s definition of ‘‘manufacturer.’’ Compare 1965 object and policy.’’ Id. (internal citations 15 The provisions of the Disclosure Act are set CAA section 208(1), Public Law 89–272, 79 Stat. omitted). forth at 15 U.S.C. 1231–1233. 994–995 with 15 U.S.C. 1231(a).

VerDate Sep<11>2014 14:41 Nov 15, 2017 Jkt 244001 PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 E:\FR\FM\16NOP1.SGM 16NOP1 nshattuck on DSK9F9SC42PROD with PROPOSALS 53446 Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Proposed Rules

CAA, from which Congress could have minimum, ambiguity exists. This leaves As to the first circumstance, a glider derived that terminology. EPA with the task of providing an engine is installed in a glider kit, which Subsequently, the statutory language ‘‘answer based on a permissible in itself is not a ‘‘motor vehicle.’’ A from the 1965 CAA, defining the terms construction of the statute.’’ Chevron, glider kit becomes a ‘‘motor vehicle’’ ‘‘motor vehicle,’’ ‘‘new motor vehicle,’’ 467 U.S. at 843. only after an engine (and the balance of ‘‘new motor vehicle engine,’’ ‘‘ultimate the powertrain) has been installed. But purchaser,’’ and ‘‘manufacturer’’ was 1. Glider Vehicles while adding a previously owned incorporated verbatim in the Air Quality EPA is proposing to interpret ‘‘new engine to a glider kit may result in the Act of 1967 (1967 AQA). See Public Law motor vehicle,’’ as defined in CAA creation of a ‘‘motor vehicle,’’ the 148, 81 Stat. 503. The Clean Air Act § 216(3), as not including glider assertion that the previously owned Amendments of 1970 (1970 CAAA) did vehicles. This is a reasonable engine thereby becomes a ‘‘new motor not change those definitions, except to interpretation—and commonsense vehicle engine’’ within the meaning of add the language regarding ‘‘vehicles or would agree—insofar as it takes account CAA section 216(3), due to the engine’s engines imported or offered for of the reality that significant elements of now being in a ‘‘new motor vehicle,’’ importation’’ that currently appears in a glider vehicle (i.e., the powertrain reflects circular thinking. It presupposes CAA section 216(3). See Public Law 91– elements, including the engine and the that the installation of a (previously 604, 84 Stat. 1694, 1703.17 transmission) are previously owned owned) engine in a glider kit creates not The fact that Congress, in first components. Under the Phase 2 rule’s just a ‘‘motor vehicle’’ but a ‘‘new motor devising the CAA’s definition of ‘‘new interpretation, in contrast, the act of vehicle.’’ EPA is proposing to interpret motor vehicle’’ for purposes of Title II, installing a previously owned the relevant statutory language in a drew on the pre-existing definition of powertrain into a glider kit—i.e., manner that rejects the Agency’s prior ‘‘new automobile’’ in the Automobile something that, as is explained further reliance on the view that (1) installing Information Disclosure Act of 1958 below, is not a ‘‘motor vehicle’’ as a previously owned engine in a glider serves to illuminate congressional defined by the CAA—results in the kit transforms the glider kit into a ‘‘new intent. As with the Disclosure Act, creation of a new ‘‘motor vehicle.’’ EPA motor vehicle,’’ and (2) that, thereafter, Congress in the 1965 CAA selected the believes that Congress, in adopting a the subsequent presence of that point of first transfer of ‘‘equitable or definition of ‘‘new motor vehicle’’ for previously owned engine in the legal title’’ to serve as a bright line—i.e., purposes of Title II, never had in mind supposed ‘‘new motor vehicle’’ to distinguish between those ‘‘new’’ that the statutory language would admit transforms that engine into a ‘‘new vehicles (and engines) that would be of such a counterintuitive result. motor vehicle engine’’ within the subject to emission standards adopted In other words, EPA now believes meaning of CAA section 216(3). pursuant to CAA section 202(a)(1) and those existing vehicles that would not that, in defining ‘‘new motor vehicle,’’ 3. Glider Kits be subject. Insofar as the 1965 CAA Congress did not intend that a vehicle Under EPA’s proposed interpretation, definition of ‘‘new motor vehicle’’ was comprised of a new outer shell EPA would have no authority to based on the Disclosure Act definition conjoined to a previously owned regulate glider kits under CAA section of ‘‘new automobile,’’ it would seem powertrain should be treated as a ‘‘new’’ 202(a)(1). If glider vehicles are not ‘‘new clear that Congress intended, for vehicle, based solely on the fact that the motor vehicles,’’ which is the purposes of Title II, that a ‘‘new motor vehicle may have been assigned a new interpretation of CAA section 216(3) vehicle’’ would be understood to mean title following assembly. In this regard, that EPA is proposing here, then the something equivalent to a ‘‘new insofar as Title II’s regulatory regime Agency lacks authority to regulate glider automobile’’—i.e., a true ‘‘showroom was at its inception directed at the kits as ‘‘incomplete’’ new motor emissions produced by new vehicle vehicles. Further, given that a glider kit new’’ vehicle. It is implausible that 18 Congress would have had in mind that engines, it is not at all clear that lacks a powertrain, a glider kit does not a ‘‘new motor vehicle’’ might also Congress intended that Title II’s reach explicitly meet the definition of ‘‘motor include a vehicle comprised of new should extend to a vehicle whose outer vehicle,’’ which, in relevant part, is body parts and a previously owned parts may be ‘‘new’’ but whose engine defined to mean ‘‘any self-propelled powertrain. was previously owned. vehicle.’’ 42 U.S.C. 7550(2) (emphasis Given this, EPA does not believe that 2. Glider Engines added). It is not obvious that a vehicle congressional intent as to the meaning without a motor could constitute a of the term ‘‘new motor vehicle’’ can be EPA proposes to find that, since a ‘‘motor vehicle.’’ clearly ascertained on the basis of an glider vehicle does not meet the 4. Issues for Which EPA Seeks Comment isolated reading of a few words in the statutory definition of a ‘‘new motor statutory definition, where that reading vehicle,’’ it necessarily follows that a EPA believes that its proposed is divorced from the structure and glider engine is not a ‘‘new motor interpretation is the most reasonable history of the CAA as a whole. Based on vehicle engine’’ within the meaning of reading of the relevant statutory that structure and history, it seems CAA section 216(3). Under that language, and that its proposed likely that Congress understood a ‘‘new provision, a motor vehicle engine is determination, based on this motor vehicle,’’ as defined in CAA deemed to be ‘‘new’’ in either of two interpretation, that regulation of glider § 216(3), to be a vehicle comprised circumstances: (1) The engine is ‘‘in a vehicles, glider engines, and glider kits entirely of new parts and certainly not new motor vehicle,’’ or (2) the is not authorized by CAA section a vehicle with a used engine. At a ‘‘equitable or legal title’’ to the engine 202(a)(1) is also reasonable. EPA seeks has ‘‘never been transferred to the comment on this interpretation. 17 The legislative history of both the 1967 AQA ultimate purchaser.’’ The second of Comments submitted in the Phase 2 and 1977 CAAA is silent with respect to the origin these circumstances can never apply to rulemaking docket lead EPA to believe of Title II’s definitions of ‘‘new motor vehicle,’’ a glider engine, which is invariably an that a glider vehicle is often a suitable ‘‘new motor vehicle engine,’’ ‘‘ultimate purchaser,’’ engine that has been previously owned. and ‘‘manufacturer,’’ which further underscores option for those small businesses and that Congress had originally derived those independent operators who cannot definitions from the Disclosure Act. 18 See footnote 3, supra. afford to purchase a new vehicle, but

VerDate Sep<11>2014 14:41 Nov 15, 2017 Jkt 244001 PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 E:\FR\FM\16NOP1.SGM 16NOP1 nshattuck on DSK9F9SC42PROD with PROPOSALS Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Proposed Rules 53447

who wish to replace an older vehicle Based on this proposed interpretation, 2. Submitting CBI with a vehicle that is equipped with up- EPA is proposing to repeal those Do not submit this information to EPA to-date safety features. EPA solicits provisions of the Phase 2 rule applicable through www.regulations.gov or email. comment and further information as to to glider vehicles, glider engines, and Clearly mark the part or all of the this issue. EPA also solicits comment glider kits. information that you claim to be CBI. and information on whether limiting the IV. Public Participation For CBI information in a disk or CD– availability of glider vehicles could ROM that you mail to EPA, mark the result in older, less safe, more-polluting We request comment by January 5, outside of the disk or CD–ROM as CBI trucks remaining on the road that much 2018 on all aspects of this proposal. and then identify electronically within longer. EPA particularly seeks This section describes how you can the disk or CD–ROM the specific information and analysis addressing the participate in this process. information that is claimed as CBI). In question whether glider vehicles addition to one complete version of the produce significantly fewer emissions Materials related to the Heavy-Duty comment that includes information overall compared to the older trucks Phase 2 rulemaking are available in the claimed as CBI, a copy of the comment they would replace. public docket noted above and at: EPA also seeks comment on the https://www.epa.gov/regulations- that does not contain the information matter of the anticipated purchasing emissions-vehicles-and-engines/ claimed as CBI must be submitted for behavior on the part of the smaller regulations-greenhouse-gas-emissions- inclusion in the public docket. trucking operations and independent commercial-trucks. Information so marked will not be drivers if the regulatory provisions at disclosed except in accordance with 1. How do I prepare and submit procedures set forth in 40 CFR part 2. issue were to repealed. Further, EPA information? seeks comment on the relative expected 3. Tips for Preparing Your Comments emissions impacts if the regulatory Direct your submittals to Docket ID When submitting comments, requirements at issue here were to be No. EPA–HQ–OAR–2014–0827. EPA’s remember to: repealed or were to be left in place. policy is that all submittals received • Identify the action by docket Finally, EPA seeks comment on will be included in the public docket number and other identifying whether, if the Agency were to without change and may be made information (subject heading, Federal determine not to adopt the available online at www.regulations.gov, Register date and page number). interpretation of CAA sections 202(a)(1) including any personal information • Explain why you agree or disagree; and 216(3) being proposed here, EPA provided, unless the submittal includes suggest alternatives and substitute should nevertheless revise the ‘‘interim information claimed to be Confidential language for your requested changes. provisions’’ of Phase 2 rule, 40 CFR Business Information (CBI) or other • Describe any assumptions and 1037.150(t)(1)(ii), to increase the information whose disclosure is provide any technical information and/ exemption available for small restricted by statute. manufacturers above the current limit of or data that you used. Do not submit information to the • If you estimate potential costs or 300 glider vehicles per year. EPA seeks docket that you consider to be CBI or input on how large an increase would burdens, explain how you arrived at otherwise protected through your estimate in sufficient detail to be reasonable, were the Agency to www.regulations.gov. The increase the limit in taking final action. allow for it to be reproduced. www.regulations.gov Web site is an • Provide specific examples to Further, EPA seeks comment on ‘‘anonymous access’’ system, which whether, if the Agency were to illustrate your concerns, and suggest means EPA will not know your identity determine not to adopt the statutory alternatives. or contact information unless you • Explain your views as clearly as interpretation being proposed here, EPA provide it in the body of your submittal. should nevertheless extend by some possible, avoiding the use of profanity If you submit an electronic submittal, period of time the date for compliance or personal threats. EPA recommends that you include your • Make sure to submit your for glider vehicles, glider engines, and name and other contact information in glider kits set forth in 40 CFR 1037.635. comments by the comment period the body of your submittal and with any DATES EPA seeks comment on what would be deadline identified in the section disk or CD–ROM you submit. Electronic a reasonable extension of the above. files should avoid the use of special compliance date. V. Statutory and Executive Order characters, any form of encryption, and Reviews B. Conclusion be free of any defects or viruses. For EPA has a fundamental obligation to additional information about EPA’s (1) Executive Order 12866: Regulatory ensure that the regulatory actions it public docket visit the EPA Docket Planning and Review and Executive takes are authorized by Congress, and Center homepage at http:// Order 13563: Improving Regulation and that the standards and requirements that www.epa.gov/epahome/dockets.htm. Regulatory Review it would impose on the regulatory EPA will hold a public hearing on the This action is a significant regulatory community have a sound and date and at the location stated in the action that was submitted to the Office reasonable basis in law. EPA is now DATES Section. To attend the hearing, of Management and Budget (OMB) for proposing to find that the most individuals will need to show review. Any changes made in response reasonable reading of the relevant appropriate ID to enter the building. The to OMB recommendations have been provisions of the CAA, including CAA hearing will start at 10:00 a.m. local documented in the docket. sections 202(a)(1), 216(2), and 216(3) is time and continue until everyone has that glider vehicles should not be had a chance to speak. More details (2) Executive Order 13771: Reducing regulated as ‘‘new motor vehicles,’’ that concerning the hearing can be found at Regulations and Controlling Regulatory glider engines should not be regulated https://www.epa.gov/regulations- Costs as ‘‘new motor vehicle engines,’’ and emissions-vehicles-and-engines/ This action is expected to be an that glider kits should not be regulated regulations-greenhouse-gas-emissions- Executive Order 13771 deregulatory as ‘‘incomplete’’ new motor vehicles. commercial-trucks. action. This proposed rule is expected

VerDate Sep<11>2014 14:41 Nov 15, 2017 Jkt 244001 PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 E:\FR\FM\16NOP1.SGM 16NOP1 nshattuck on DSK9F9SC42PROD with PROPOSALS 53448 Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Proposed Rules

to provide meaningful burden reduction (8) Executive Order 13045: Protection of (11) Executive Order 12898: Federal by eliminating regulatory requirements Children From Environmental Health Actions To Address Environmental for glider manufacturers. Risks and Safety Risks Justice in Minority Populations, and Low-Income Populations (3) Paperwork Reduction Act (PRA) This action is not subject to Executive Order 13045 because it is not an Pursuant to Executive Order 12898 This action does not impose an economically significant regulatory (59 FR 7629, February 16, 1994), EPA information collection burden under the action as defined by Executive Order considered environmental justice PRA because it does not contain any 12866. However, the Emission concerns of the final HD Phase 2 rule. information collection activities. It Requirements for Glider Vehicles, EPA’s evaluation of human health and would only eliminate regulatory Glider Engines, and Glider Kits was environmental effects on minority, low- requirements for glider manufacturers. anticipated to lower ambient income or indigenous populations for the final HD Phase 2 rule is presented (4) Regulatory Flexibility Act (RFA) concentrations of PM2.5 and some of the benefits of reducing these pollutants in the Preamble, Section VIII.A.8 and 9 (81 FR 73844–7, October 25, 2016). We I certify that this action will not have may have accrued to children. Our have not evaluated the impacts on a significant economic impact on a evaluation of the environmental health minority, low-income or indigenous substantial number of small entities or safety effects of these risks on under the RFA. In making this populations that may occur as a result children is presented in Section XIV.H. of the proposed action to rescind determination, the impact of concern is of the HD Phase 2 Rule.19 Some of the any significant adverse economic emissions requirements for heavy-duty benefits for children’s health as glider vehicles and engines. EPA impact on small entities. An agency may described in that analysis would be lost certify that a rule will not have a likewise has not considered the as a result of this action. economic and employment impacts of significant economic impact on a this rule specifically as they relate to or substantial number of small entities if In general, current expectations about future emissions of pollution from these might impact minority, low-income and the rule relieves regulatory burden, has indigenous populations. no net burden, or otherwise has a trucks is difficult to forecast given positive economic effect on the small uncertainties in future technologies, fuel List of Subjects in 40 CFR Parts 1037 entities subject to the rule. Small glider prices, and the demand for trucking. and 1068 manufacturers would be allowed to Furthermore, the proposed action does Environmental protection, produce glider vehicles without meeting not affect the level of public health and Administrative practice and procedure, new motor vehicle emission standards. environmental protection already being provided by existing NAAQS and other Air pollution control, Confidential We have therefore concluded that this business information, Labeling, Motor action will have no adverse regulatory mechanisms in the CAA. This proposed action does not affect applicable local, vehicle pollution, Reporting and impact for any directly regulated small recordkeeping requirements, entities. state, or federal permitting or air quality management programs that will Warranties. (5) Unfunded Mandates Reform Act continue to address areas with degraded Dated: November 9, 2017. (UMRA) air quality and maintain the air quality E. Scott Pruitt, in areas meeting current standards. This action does not contain any Administrator. Areas that need to reduce criteria air unfunded mandate as described in For the reasons set out in the pollution to meet the NAAQS will still UMRA, 2 U.S.C. 1531–1538, and does preamble, title 40, chapter I of the Code need to rely on control strategies to not significantly or uniquely affect small of Federal Regulations is proposed to be reduce emissions. To the extent that governments. The action imposes no amended as set forth below. states use other mechanisms in order to enforceable duty on any state, local, or comply with the NAAQS, and still tribal governments. PART 1037—CONTROL OF EMISSIONS achieve the criteria pollution reductions FROM NEW HEAVY-DUTY MOTOR (6) Executive Order 13132: Federalism that would have occurred under the VEHICLES CPP, this proposed rescission will not This action does not have federalism have a disproportionate adverse effect ■ 1. The authority for part 1037 implications. It will not have substantial on children’s health. continues to read as follows: direct effects on the states, on the relationship between the national (9) Executive Order 13211: Actions Authority: 42 U.S.C. 7401–7671q. Concerning Regulations That government and the states, or on the Subpart B—[Amended] distribution of power and Significantly Affect Energy Supply, responsibilities among the various Distribution, or Use ■ 2. Section 1037.150 is amended by levels of government. This action is not a ‘‘significant removing and reserving paragraph (t) as (7) Executive Order 13175: Consultation energy action’’ because it is not likely to follows: and Coordination With Indian Tribal have a significant adverse effect on the § 1037.150 Interim provisions. Governments supply, distribution, or use of energy. * * * * * This action does not have tribal (10) National Technology Transfer and (t) [Reserved] implications as specified in Executive Advancement Act (NTTAA) * * * * * Order 13175. This proposed rule will be implemented at the Federal level and This rulemaking does not involve Subpart G—[Amended] affects glider manufacturers. Thus, technical standards. § 1037.635 [Removed] Executive Order 13175 does not apply to this action. 19 81 FR 73478 (October 25, 2016). ■ 3. Section 1037.635 is removed.

VerDate Sep<11>2014 14:41 Nov 15, 2017 Jkt 244001 PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 E:\FR\FM\16NOP1.SGM 16NOP1 nshattuck on DSK9F9SC42PROD with PROPOSALS Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Proposed Rules 53449

Subpart I—[Amended] definition. New motor vehicles may be Authority: 42 U.S.C. 7401–7671q. complete or incomplete. ■ 4. Section 1037.801 is amended by (1) A motor vehicle for which the Subpart B—[Amended] removing the definitions ‘‘glider kit’’ ultimate purchaser has never received and ‘‘glider vehicle’’ and revising the the equitable or legal title is a new ■ 6. Section 1068.120 is amended by definitions of ‘‘manufacturer’’ and ‘‘new motor vehicle. This kind of vehicle revising paragraph (f)(5) to read as motor vehicle’’ to read as follows: might commonly be thought of as follows: ‘‘brand new’’ although a new motor § 1037.801 Definitions. vehicle may include previously used § 1068.120 Requirements for rebuilding * * * * * parts. Under this definition, the vehicle engines. Manufacturer has the meaning given is new from the time it is produced until * * * * * in section 216(1) of the Act. In general, the ultimate purchaser receives the title (f) * * * this term includes any person who or places it into service, whichever (5) The standard-setting part may manufactures or assembles a vehicle comes first. apply further restrictions to situations (including a trailer or another (2) An imported heavy-duty motor incomplete vehicle) for sale in the vehicle originally produced after the involving installation of used engines to United States or otherwise introduces a 1969 model year is a new motor vehicle. repower equipment. new motor vehicle into commerce in the * * * * * * * * * * United States. This includes importers [FR Doc. 2017–24884 Filed 11–15–17; 8:45 am] who import vehicles for resale. PART 1068—GENERAL COMPLIANCE BILLING CODE 6560–50–P * * * * * PROVISIONS FOR HIGHWAY, STATIONARY, AND NONROAD New motor vehicle has the meaning PROGRAMS given in the Act. It generally means a motor vehicle meeting the criteria of ■ 5. The authority for part 1068 either paragraph (1) or (2) of this continues to read as follows:

VerDate Sep<11>2014 14:41 Nov 15, 2017 Jkt 244001 PO 00000 Frm 00018 Fmt 4702 Sfmt 9990 E:\FR\FM\16NOP1.SGM 16NOP1 nshattuck on DSK9F9SC42PROD with PROPOSALS