15 USC 2002, fuel within the meaning of the term 'fuel' if he determines that such inclusion is consistent with the need of the Nation to conserve energy. "(6) The term 'fuel economy' means the average number of miles traveled by an automobile per gallon of gasoline (or equivalent amount of other fuel) consumed, as determined by the EPA Administator in accordance with procedures established under section 503 (d). "(7) The term 'average fuel economy standard' means a performance standard which specifies a minimum level of average fuel economy which is applicable to a manufacturer in a model year. "(8) The term 'manufacturer' means any person engaged in the business of manufacturing automobiles. The Secretary shall prescribe rules for determining, in cases where more than one person is the manufacturer of an automobile, which person is to be treated as the manufacturer of such automobile for purposes of this part. "(9) The term 'manufacturer' (except for purposes of section 502(c)) means to produce or assemble in the customs territory of the United States, or to import. "(10) The term 'import' means to import into the customs territory of the United States. "(11) The term 'model type' means a particular class of automobile as determined, by rule, by the EPA Administrator, after consultation and coordination with the Secretary. "(12) The term 'model year', with reference to any specific calendar year, means a manufacturer's annual production period (as determined by the EPA Administrator) which includes January 1 of such calendar year. If a manufacturer has no annual production period, the term 'model year' means the calendar year. "(13) The term 'Secretary' means the Secretary of Transportation. "(14) The term ‘EPA Administrator' means the Administrator of the Environmental Protection Agency. AVERAGE FUEL ECONOMY STANDARDS APPLICABLE TO EACH MANUFACTURER "SEC. 502. (a) (1) Except as otherwise provided in paragraph (4) or in subsection (c) or (d), the average fuel economy for passenger automobiles manufactured by any manufacturer in any model year after model year 1977 shall not be less than the number of miles per gallon established for such model year under the following table: "Model year: Average fuel economy standard (in miles per gallon) Transmittal to Congress, publication in Federal "(2) Not later than January 15 of each year, beginning in 1977, the Secretary shall transmit to each House of Congress, and publish in the Federal Register, a review of average fuel economy standards under this part. The review required to be transmitted not later than January 15, 1979, shall include a comprehensive analysis of the program required by this part. Such analysis shall include an assessment of the ability of manufacturers to meet the average fuel economy standard for model year 1985 as specified in paragraph (1) of this subsection, and any legislative recommendations the Secretary or the EPA Administrator may have for improving the program required by this part. "(3) Not later than July 1, 1977, the Secretary shall prescribe, by rule, average fuel economy standards for passenger automobiles manufactured in each of the model years 1981 through 1984. Any such standard shall apply to each manufacturer (except as provided in subsection (c)), and shall be set for each such model year at a level which the Secretary determines (A) is the maximum feasible average fuel economy level, and (B) will result in steady progress toward meeting the average fuel economy standard established by or pursuant to this subsection for model year 1985. "(4) The Secretary may, by rule, amend the average fuel economy standard specified in paragraph (1) for model year 1985, or for any subsequent model year, to a level which he determines is the maximum feasible average fuel economy level for such model year, except that any amendment which has the effect of increasing an average fuel economy standard to a level in excess of 27.5 miles per gallon, or of decreasing any such standard to a level below 26.0 miles per gallon, shall be submitted to the Congress in accordance with section 551 of the Energy Policy and Conservation Act, and shall not take effect if either House of the Congress disapproves such amendment in accordance with the procedures specified in such section. "(5) For purposes of considering any modification which is submitted to the Congress under paragraph (4), the 5 calendar days specified in section 551 (f) (4) (A) of the Energy Policy and Conservation Act shall be lengthened to 20 calendar days, and the 15 calendar days specified in section 551 (c) and (d) of such Act shall be lengthened to 60 calendar days. "(b) The Secretary shall, by rule, prescribe average fuel economy standards for automobiles which are not passenger automobiles and which are manufactured by any manufacturer in each model year which begins more than 30 months after the date of enactment of this title. Such rules may provide for separate standards for different classes of such automobiles (as determined by the Secretary), and shall be set at a level which the Secretary determines is the maximum feasible average fuel economy level which such manufacturers are able to achieve in each model year to which this subsection applies. Any standard applicable to a model year under this subsection shall be prescribed at least 18 months prior to the beginning of such model year. "(c) On application of a manufacturer who manufactured (whether or not in the United States) fewer than 10,000 passenger automobiles in the second model year preceding the model year for which the application is made, the Secretary may, by rule, exempt such manufacturer from subsection (a). An application for such an exemption shall be submitted to the Secretary, and shall contain such information as the Secretary may require by rule. Such exemption may only be granted if the Secretary determines that the average fuel economy standard otherwise applicable under subsection (a) is more stringent than the maximum feasible average fuel economy level which such manufacturer can attain. The Secretary may not issue exemptions with respect to a model year unless he establishes, by rule, alternative average fuel economy standards for passenger automobiles manufactured by manu Application. 63-559 O-75-3 Definitions, facturers which receive exemptions under this subsection. Such standards may be established for an individual manufacturer, for all automobiles to which this subsection applies, or for such classes of such automobiles as the Secretary may define by rule. Each such standard shall be set at a level which the Secretary determines is the maximum feasible average fuel economy level for the manufacturers to which the standard applies. An exemption under this subsection shall apply to a model year only if the manufacturer manfactures (whether or not in the United States) fewer than 10,000 passenger automobiles in such model year. "(d) (1) Any manufacturer may apply to the Secretary for modification of an average fuel economy standard applicable under subsection (a) to such manufacturer for model year 1978, 1979, or 1980. Such application shall contain such information as the Secretary may require by rule, and shall be submitted to the Secretary within 24 months before the beginning of the model year for which such modification is requested. "(2)(A) If a manufacturer demonstrates and the Secretary finds that "(i) a Federal standards fuel economy reduction is likely to exist for such manufacturer for the model year to which the application relates, and (ii) such manufacturer applied a reasonably selected technology, the Secretary shall, by rule, reduce the average fuel economy standard applicable under subsection (a) to such manufacturer by the amount of such manufacturer's Federal standards fuel economy reduction, rounded off to the nearest one-tenth mile per gallon (in accordance with rules of the Secretary). To the maximum extent practicable, prior to making a finding under this paragraph with respect to an application, the Secretary shall request, and the EPA Administrator shall supply, test results collected pursuant to section 503 (d) of this Act for all automobiles covered by such application. "(B) (i) If the Secretary does not find that a Federal standards fuel economy reduction is likely to exist for a manufacturer who filed an application under paragraph (1), he shall deny the application of such manufacturer. "(ii) If the Secretary "(I) finds that a Federal standards fuel economy reduction is likely to exist for a manufacturer who filed an application under paragraph (1), and "(II) does not find that such manufacturer applied a reasonably selected technology, the average fuel economy standard applicable under subsection (a) to such manufacturer shall, by rule, be reduced by an amount equal to the Federal standards fuel economy reduction which the Secretary finds would have resulted from the application of a reasonably selected technology. "(3) For purposes of this subsection: "(A) The term 'reasonably selected technology' means a technology which the Secretary determines it was reasonable for a manufacturer to select, considering (i) the Nation's need to improve the fuel economy of its automobiles, and (ii) the energy savings, economic costs, and lead-time requirements associated with alternative technologies practicably available to such manufacturer. "(B) The term 'Federal standards fuel economy reduction' means the sum of the applicable fuel economy reductions determined under subparagraph (C). "(C) The term 'applicable fuel economy reduction' means a number of miles per gallon equal to— "(i) the reduction in a manufacturer's average fuel econ- "(D) Each of the following is a category of Federal standards; Air Act, and emissions standards applicable by reason of 42 USC 1857f-1. section 209 (b) of such Act. "(ii) Motor vehicle safety standards under the National Traffic and Motor Vehicle Safety Act of 1966. 42 USC 1857f-6a. 15 USC 1381 "(iii) Noise emission standards under section 6 of the note. Noise Control Act of 1972. "(iv) Property loss reduction standards under title I of this Act. "(E) In making the determination under this subparagraph, the Secretary (in accordance with such methods as he shall prescribe by rule) shall assume a production mix for such manufacturer which would have achieved the average fuel economy standard for such model year had standards described in subparagraph (D) applicable to model year 1975 remained the only standards in effect. "(4) The Secretary may, for the purposes of conducting a proceeding under this subsection, consolidate one or more applications filed under this subsection. "(e) For purposes of this section, in determining maximum feasible average fuel economy, the Secretary shall consider "(1) technological feasibility; 66 (2) economic practicability; "(3) the effect of other Federal motor vehicle standards on fuel economy; and "(4) the need of the Nation to conserve energy. "(f) (1) The Secretary may, by rule, from time to time, amend any average fuel economy standard prescribed under subsection (a) (3), (b), or (c), so long as such standard, as amended, meets the requirements of subsection (a) (3), (b), or (c), as the case may be. (2) Any amendment prescribed under this section which has the effect of making any average fuel economy standard more stringent shall be "(A) promulgated, and "(B) if required by paragraph (4) of subsection (a), submitted to the Congress, at least 18 months prior to the beginning of the model year to which such amendment will apply. "(g) Proceedings under subsection (a) (4) or (d) shall be conducted in accordance with section 553 of title 5, United States Code, except that interested persons shall be entitled to make oral as well as written presentations. A transcript shall be taken of any oral presentations. 42 USC 4905. 15 USC 2003. Definitions. "DETERMINATION OF AVERAGE FUEL ECONOMY "SEC. 503. (a) (1) Average fuel economy for purposes of section 502 (a) and (c) shall be calculated by the EPA Administrator by dividing (A) the total number of passenger automobiles manufactured in a given model year by a manufacturer, by "(B) a sum of terms, each term of which is a fraction created by dividing "(i) the number of passenger automobiles of a given model type manufactured by such manufacturer in such model year, by "(ii) the fuel economy measured for such model type. "(2) Average fuel economy for purposes of section 502(b) shall be calculated in accordance with rules of the EPA Administrator. "(b) (1) In calculating average fuel economy under subsection (a)(1), the EPA Administrator shall separate the total number of passenger automobiles manufactured by a manufacturer into the following two categories: "(A) Passenger automobiles which are domestically manufactured by such manufacturer (plus, in the case of model year 1978 and model year 1979, passenger automobiles which are within the includable base import volume of such manufacturer). "(B) Passenger automobiles which are not domestically manufactured by such manufacturer (and which, in the case of model year 1978 and model year 1979, are not within the includable base import volume of such manufacturer). The EPA Administrator shall calculate the average fuel economy of each such separate category, and each such category shall be treated as if manufactured by a separate manufacturer for purposes of this part. "(2) For purposes of this subsection: "(A) The term 'includable base import volume', with respect to any manufacturer in model year 1978 or 1979, as the case may be, is a number of passenger automobiles which is the lesser of"(i) the manufacturer's base import volume, or "(ii) the number of passenger automobiles calculated by multiplying "(I) the quotient obtained by dividing such manufacturer's base import volume by such manufacturer's base base production volume, times "(II) the total number of passenger automobiles manufactured by such manufacturer during such model "(B) The term 'base import volume' means one-half the sum of year. "(i) the total number of passenger automobiles which were not domestically manufactured by such manufacturer during model year 1974 and which were imported by such manufacturer during such model year, plus "(ii) 133 percent of the total number of passenger automobiles which were not domestically manufactured by such manufacturer during the first 9 months of model year 1975 and which were imported by such manufacturer during such 9-month period. "(C) The term 'base production volume' means one-half the sum of |