Office of Transportation                           EPA420-F-04-030
^^ClF*         and Air quality                                April 2004
   Unit 'ri St«!ps                                                   K
   Eiiv'ioiiiix'iitjl Protection   	
                   Final Rulemaking to
                   Update Compliance Fees
                  The U. S. Environmental Protection Agency (EPA) is issuing a final rule
                  to update the Motor Vehicle and Engine Compliance Program (MVECP)
                  fees regulations under which fees are collected for certification and
                  compliance activities related to air pollution control in motor vehicles
                  and engines. This rulemaking updates fees to reflect increased costs of
                  administering the compliance programs within the MVECP and will
                  create a new fee structure for nonroad engine compliance programs.

                  EPA's National Vehicle and Fuel Emissions Laboratory (NVFEL) has
                  administered the MVECP fees program since its adoption in 1992.
                  Under this program, user fees are collected for activities pertaining to:

                    •  Certification
                    •  Fuel Economy
                    *  Selective Enforcement Auditing (SEA)
                    *  In-use Compliance

                  The Clean Air Act, as amended in 1990 and the Independent Offices of
                  Appropriations Act (IOAA), provides the EPA legal authority to collect
                  fees for specific services it provides to manufacturers.

The current fees program applies to manufacturers of light-duty vehicles
and trucks, heavy-duty highway vehicles and engines, and highway
motorcycles. EPA's final rulemaking updates fees for these industries. In
addition, EPA has incorporated a new fees program for nonroad engine
compliance programs that applies to manufacturers of farm and con-
struction equipment, lawn and garden equipment, locomotive engines,
recreational vehicles (including snowmobiles, off-road motorcycles and
all-terrain  vehicles), commercial and recreational marine compression-
ignition engines and other nonroad engines.

The fees established in the rulemaking are based on a cost analysis
recently conducted by the EPA. This  analysis describes the costs in-
curred by the EPA in conducting certification and compliance activities
under the MVECP. In addition, the cost analysis provides an overview
of the methodology used to determine and allocate costs and provides a
description of the new fees.
Key Elements of the Final Rule
  •  EPA is adopting revised fees for existing and new highway motor
     vehicle and engine compliance programs and new fees for nonroad
     engine compliance programs.

  •  Fees recover costs to run compliance activities that support current
     and new regulatory programs.

  •  The impact of the revised fees on industries is reasonable and
     equitable. Fees are based on the amount of EPA certification and
     compliance activity devoted to each industry type. Manufacturers
     pay fees for the services received.

  •  The fees program is estimated to generate $18 million annually
     which will recover the government's costs and make EPA's mobile
     source compliance programs self-sustaining to the fullest extent

  •  The maximum fee per engine family is limited to 1 percent of the
     retail value of the vehicle or engine. This mitigates the cost of fees
     for companies with low volume vehicle and engine sales.

  *  Although EPA does not assess fees on a "per vehicle or engine"
     basis, the average cost per vehicle or engine across all industries is
     less than $2.00. The actual cost per unit will depend of the size of
     the engine family/test group.

Health       Environmental Impacts
This rule implements a fees program and is expected to have no environ-
mental impact on environmental health or safety risks that would affect
the public.
For Additional Information:
Materials relevant to this rulemaking, such as the cost analysis, are
available on the EPA web site at and through
EPA's electronic public docket and comment system, EPA Dockets at The E-docket identification number is OAR-
2002-0023. (Note that the former docket number for this rulemaking was

The docket is located at the EPA Docket Center (EPA/DC), Public Read-
ing Room, Room B102, EPA West Building, 1301 Constitution Avenue,
NW, Washington, D.C. 20460. The EPA Docket Center Public Reading
Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday. The
telephone number for the Air Docket is (202) 566-1742, and by facsimile
at (202) 566-1741.  A reasonable fee  may be charged for copying docket

Additional information on the fees program and fees regulations are
located on the EPA Web site at:

or contact:

     Fees Team-Certification and Compliance Division
     U.S. Environmental Protection Agency
     Office of Transportation and Air Quality
     2000 Traverwood Drive
     Ann Arbor, Michigan 48105