United States              Air and Radiation         EPA420-F-98-016
                    Environmental Protection                          April 1998
                    Agency

                    Office of Mobile Sources
v/EPA        Regulatory
                   Announcement
                    Proposed  Compliance Assurance
                    Program (CAP 2000)
                    The U.S. Environmental Protection Agency (EPA) is proposing
                    regulations that will reinvent the federal programs on evaluating
                    emissions control compliance of new light-duty vehicles (LDVs) and
                    light-duty trucks (LDTs). This proposal redirects both the Agency's and
                    the manufacturers'efforts from pre-production demonstrations to
                    verification of actual in-use performance. The program should result in a
                    net cost savings of about 55 million dollars per year for vehicle
                    manufacturers, while gathering valuable compliance information for
                    EPA on in-use cars and trucks.
                    Background

                    The existing vehicle certification program requires manufacturers to
                    demonstrate that new LDVs and LDTs meet the required emission
                    standards prior to every model year. EPA then issues a certificate permit-
                    ting the sale of those vehicles. Given the generally stable state of emis-
                    sion control technology on today's cars and trucks, coupled with in-use
                    compliance programs, it was believed that certification requirements
                    could now be streamlined substantially, with greater emphasis placed on
                    in-use performance.

                    EPA developed this proposal during a three-year discussion process with
                    manufacturers, the  California Air Resources Board and other interested
                    parties. In  1996, these parties signed a Statement of Principles commit-
                    ting to work together to improve future in-use emissions control perfor-
                    mance of LDVs and LDTs while reducing overall compliance demon-
                    stration burdens. This proposal reflects their efforts.
                                                             > Printed on Recycled Paper

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Overview of the Proposal

The new compliance assurance program,
known as CAP 2000 (since manufacturers
may opt-in for model year 2000), stream-
lines the existing vehicle certification
program, enabling manufacturers to save
significant time and money.  In addition, it
requires manufacturers to test customer-
owned in-use vehicles for model year 2001
and beyond.  This enhances the ability to
catch and fix problem vehicles early on,
and encourages manufacturers to design
future vehicles which are cleaner and more
durable. The CAP 2000 program also
assures that the  emissions of in-use ve-
hicles remain at levels below the current
emissions standards.

The proposal contains a broad-based
restructuring and streamlining of the pre-
production light- duty emission certifica-
tion program, including many administra-
tive burden reductions.  Savings would
result from reduced reporting and pre-
production durability and emission testing
requirements. The proposal contains a new
requirement  for manufacturers to test some
in-use customer vehicles after about one
year and four years of service. The pro-
gram also contains a requirement that if
non-complying  vehicles are identified, the
manufacturer must test more vehicles for
the purpose of determining if an  emissions
recall is necessary.  EPA would likewise
use the in-use data to make independent
evaluations about the need to pursue
emissions recalls.

This proposal also supports EPA's Rein-
venting Environmental Information Action
Plan by significantly cutting the vehicle
certification reporting burden: at least 50
percent reduction in burden, resulting in
thousands of pages of paper saved. Elec-
tronic submissions are highly encouraged
which could result in even more savings.
In addition, EPA's new certification regula-
tions would be shorter, easier to read, and
better organized.
Flexibility for Industry

If adopted as proposed, the CAP 2000
program would significantly change the
way EPA and automotive manufacturers do
business together. This program would
allow vehicle manufacturers more flexibil-
ity in the timing for obtaining a certificate
of conformity, and in the way vehicles are
tested for certification compliance. For
example:

  •  Technical decisions previously made
     by EPA would be delegated to manu-
     facturers. Manufacturers would be
     given more control over their certifi-
     cation schedules (which are closely
     linked to production schedules) with
     less EPA oversight.

  •  Manufacturers' testing burden would
     be significantly reduced: the number
     of durability test vehicles is projected
     to be reduced by 75 percent and the
     number of emission data test vehicles
     by about 50 percent.

  •  Manufacturers would demonstrate in-
     use emission performance by testing
     more than two thousand in-use ve-
     hicles per year. EPA would use the
     data to identify possible in-use com-

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    pliance problems. The in-use test
    data, which has never before been
    collected by EPA in this large scale,
    would confirm that the streamlined
    certification process is effective at
    predicting the emissions performance
    of in-use vehicles. EPA would also be
    able to more effectively target non-
    complying vehicles for potential recall
    actions. The in-use testing portion of
    the proposal would add some costs
    (the cost of procuring and testing in-
    use vehicles), but the savings from the
    certification streamlining will more
    than offset this.
For More Information
For further information on this proposed
rule, please contact Linda Hormes at:

  U.S. Environmental Protection Agency
  Office of Mobile Sources
  2565 Plymouth Road
  Ann Arbor, MI 48105
  (734)668-4502
  email: hormes.linda@epa.gov

Additional documents on light-duty ve-
hicle certification are available electroni-
cally at the Internet site given above.
Public Participation
Opportunities
EPA desires full public participation in
arriving at final rulemaking decisions. The
Agency solicits comments from all inter-
ested parties. Wherever applicable, full
supporting data and detailed analysis
should also be submitted to allow EPA to
make maximum use of the comments.
Commenters are especially encouraged to
provide specific suggestions for changes to
any aspects of the proposal that they
believe need to be modified or improved.

For instructions on submitting written
comments, please see the Federal Register
notice. It is available from the EPA Air and
Radiation Docket by calling 202-260-7548;
please  refer to Docket No. A-96-50. In
addition, the proposed rule and related
documents are available electronically via
the EPA Internet  server at:
  http ://www. epa.gov/OMSWWW

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