United States             Air and Radiation         EPA420-F-97-047
                   Environmental Protection                          December 1997
                   Agency

                   Office of Mobile Sources
&EPA        Regulatory
                   Announcement
                    Final  Rule for the National Low
                    Emission Vehicle Program
                   The Environmental Protection Agency (EPA) is issuing a final rule
                   representing the next step in establishing a voluntary nationwide
                   program to make new cars significantly cleaner burning than today's
                   current cars. The National Low Emission Vehicle (LEV) program
                   represents an alternative, more effective method of regulatory
                   development through extensive interaction between EPA and
                   stakeholders. When implemented, this program will achieve substantial
                   air pollution reductions nationwide while providing the automotive
                   industry flexibility to meet the new requirements in the most efficient
                   manner.
                   Overview of Rulemaking

                   The National LEV program was developed through an unprecedented,
                   cooperative effort by the Ozone Transport Commission (OTC) states,
                   auto manufacturers, environmentalists, fuel providers, EPA and other
                   interested parties. The OTC states and environmentalists provided the
                   opportunity for this cooperative effort by pushing for adoption of the
                   California Low Emission Vehicle (CAL LEV) program throughout the
                   northeast Ozone Transport Region. Under EPA's leadership, the states,
                   auto manufacturers, environmentalists, and other interested parties then
                   embarked on a process to develop a voluntary National LEV program, a
                   process marked by extensive public participation and a focus on joint
                   problem solving.
                                                            I Printed on Recycled Paper

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This rule finalizes the regulations for the National LEV program. It is
now up to the OTC states and the auto manufacturers to determine
whether the program will come into effect. Under the National LEV
program, auto manufacturers will have the option of agreeing to comply
with tailpipe standards that are more stringent than EPA can mandate
prior to model year (MY) 2004. Once manufacturers commit to the
program, the standards will be enforceable in the same manner that other
federal motor vehicle emissions control requirements are enforceable.
Manufacturers have indicated their willingness to volunteer to meet
these tighter emissions standards if EPA and the OTC states agree to
certain conditions, including providing manufacturers with regulatory
stability and reducing regulatory burdens by harmonizing federal and
California motor vehicle emissions standards. The program will  go into
effect nationwide two model years after it begins in the Northeast.
Health and Environmental Benefits
National LEV vehicles will be 70 percent cleaner than today's models.
The National LEV program will result in substantial reductions in non-
methane organic gases (NMOG) and oxides of nitrogen (NOx), which
contribute to unhealthy levels of smog in many areas across the country.
Emission reduction estimates are based on a start date of MY1999 in the
Northeast and MY 2001 nationwide:

• NOx will be reduced by 496 tons per day in 2007.
• NMOG will be  reduced by 311 tons per day in 2007.

The National LEV program will also result in reductions in toxic  air
pollutants such as  benzene, formaldehyde, acetaldehyde, and 1,3 butadi-
ene. Benzene is classified as a human carcinogen, while the others are
considered probable carcinogens.
Affect on Industry

This voluntary program provides auto manufacturers flexibility in
meeting the associated standards as well as the opportunity to harmonize
their production lines and build vehicles more efficiently.

EPA currently estimates that National LEV vehicles will cost an addi-
tional $95 above the price of vehicles available today, but it is expected
that, due to factors such as economies of scale and historical trends

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related to emission control costs, the actual per vehicle cost will be even
lower. This incremental cost is less than 0.5 percent of the price of an
average new car.

This rule does not affect existing individual state mandates for electric
vehicles, which continues to remain a state/auto issue. The parties have
decided to resolve this issue outside of the National LEV process.
Furthermore, the National LEV program will not require any change in
the types of fuel currently available in the marketplace.
Assisting the States
When the Northeastern States and auto manufacturers opt into the
program, the resulting program will provide substantial emission reduc-
tions to the Northeast states that otherwise would only be available
through individual state-by-state adoption of California's motor vehicle
regulations. When implemented, the National LEV program will help
states improve the air quality in ozone nonattainment areas, which affect
102 million citizens. In addition, the program will reduce pressure to
make further, more costly emission reductions from stationary industrial
sources.
For More Information
For further information on the National LEV Program, please contact
Karl Simon at:

  U.S. Environmental Protection Agency
  Office of Mobile Sources (6401)
  401 M Street SW
  Washington, DC 20460
  (202) 260-3623
  simon.karl@epamail.epa.gov

The final rule and other documents on the National LEV Program are
available electronically from the EPA Internet server at:

  http:/www. epa. gov/OM S WWW/1 ev-nl ev. htm

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