[House Report 109-537]
[From the U.S. Government Publishing Office]
109th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 109-537
======================================================================
AMENDING CHAPTER 301 OF TITLE 49, UNITED STATES CODE, TO ESTABLISH A
NATIONAL TIRE FUEL EFFICIENCY CONSUMER INFORMATION PROGRAM, AND FOR
OTHER PURPOSES
_______
June 28, 2006.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Barton of Texas, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
[To accompany H.R. 5632]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 5632) to amend Chapter 301 of title 49, United
States Code, to establish a national tire fuel efficiency
consumer information program, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 1
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Hearings......................................................... 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 3
Statement of General Performance Goals and Objectives............ 3
New Budget Authority, Entitlement Authority, and Tax Expenditures 3
Committee Cost Estimate.......................................... 4
Congressional Budget Office Estimate............................. 4
Federal Mandates Statement....................................... 5
Advisory Committee Statement..................................... 6
Constitutional Authority Statement............................... 6
Applicability to Legislative Branch.............................. 6
Section-by-Section Analysis of the Legislation................... 6
Changes in Existing Law Made by the Bill, as Reported............ 7
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. TIRE FUEL EFFICIENCY CONSUMER INFORMATION.
(a) In General.--Chapter 301 of title 49, United States Code, is
amended by inserting after section 30123 the following new section:
``Sec. 30123A. Tire Fuel Efficiency Consumer Information
``(a) Rulemaking.--(1) Not later than 18 months after the date of
enactment of this section, the Secretary of Transportation shall, after
notice and opportunity for comment, promulgate rules establishing a
national tire fuel efficiency consumer information program for tires
designed for use on motor vehicles to educate consumers about the
effect of tires on automobile fuel efficiency.
``(2) The rulemaking shall include each of the following:
``(A) A national tire fuel efficiency rating system for motor
vehicle tires to assist consumers in making more educated tire
purchasing decisions.
``(B) Requirements for providing information to consumers,
including information at the point of sale and other potential
information dissemination methods, including the internet.
``(C) Specifications for test methods for manufacturers to
use in assessing and rating tires to avoid variation among test
equipment and manufacturers.
``(D) A national tire maintenance consumer education program
including, information on tire inflation pressure, alignment,
rotation, and tread wear to maximize fuel efficiency.
``(3) This section shall not apply to tires excluded from coverage
under section 575.104(c) of title 49, Code of Federal Regulations, as
in effect on date of enactment of this section.
``(b) Consultation.--The Secretary shall consult with the Secretary
of Energy and the Administrator of the Environmental Protection Agency
on the means of conveying tire fuel efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct periodic
assessments of the rules promulgated under this section to determine
the utility of such rules to consumers, the level of cooperation by
industry, and the contribution to national goals pertaining to energy
consumption. The Secretary shall transmit periodic reports detailing
the findings of such assessments to the Energy and Commerce Committee
of the House of Representatives and the Commerce, Science, and
Transportation Committee of the Senate.
``(d) Tire Marking.--The Secretary shall not require permanent
labeling of any kind on a tire for the purpose of tire fuel efficiency
information.
``(e) Preemption.--Nothing in this section shall prohibit a State or
political subdivision of a State from enforcing a law or regulation on
tire fuel efficiency consumer information in effect on January 1, 2006.
After a requirement under this section is in effect, a State or
political subdivision of a State may adopt or enforce a law or
regulation on tire fuel efficiency consumer information enacted after
January 1, 2006, only if the law or regulation is identical to that
requirement. Nothing in this section shall be construed to preempt a
State or political subdivision of a State from regulating the fuel
efficiency of tires not otherwise preempted under this chapter.''.
(b) Enforcement.--Section 30165(a) of such chapter is amended by
adding at the end the following:
``(4) Section 30123a.--Any person who fails to comply with
the national tire fuel efficiency consumer information program
under section 30123A is liable to the United States Government
for a civil penalty of not more than $50,000 for each
violation.''.
(c) Table of Contents.--The table of contents for chapter 301 of
title 49, United States Code, is amended by adding the following new
item after the item relating to section 30123:
``30123A. Tire fuel efficiency consumer information.''.
Purpose and Summary
The purpose of H.R. 5632 is to establish a national tire
fuel efficiency consumer information campaign to educate
consumers about the effect of replacement tires on automobile
fuel efficiency.
Background and Need for Legislation
Tires affect vehicle fuel economy mainly through ``rolling
resistance.'' The more surface area of a tire that makes
contact with the road creates more friction, which creates more
resistance, decreasing fuel economy. Therefore, properly
inflated tires achieve less rolling resistance and higher fuel
economy than under inflated ones.
Every year Americans spend approximately $20 billion
replacing some 200 million passenger tires. Motorists choose
among tires varying in price, style, and many aspects of
performance. The tires they purchase will affect not only the
handling, traction, ride comfort, and appearance of their cars,
but also the fuel economy.
According to a 2006 National Academy of Sciences report, a
10 percent reduction in average rolling resistance, if achieved
for the population of passenger vehicles using replacement
tires, could produce a 1 to 2 percent increase in the fuel
economy of these vehicles. About 80 percent of passenger cars
and light trucks are equipped with replacement tires. Holding
the number of miles traveled constant, a 1 to 2 percent
increase in the fuel economy of these vehicles would save
approximately 1 to 2 billion gallons of fuel per year of the
130 billion gallons consumed by the entire passenger vehicle
fleet. This fuel savings is equivalent to the fuel saved by
taking 2 million to 4 million cars and light trucks off the
road.
Today, however, consumers have little, if any, convenient
way of determining how tire choices can affect vehicle fuel
economy. H.R. 5632 would remedy that problem by creating a
national tire fuel efficiency campaign to educate consumers
about the fuel efficiency qualities of different replacement
tires.
Hearings
The Committee on Energy and Commerce has not held hearings
on the legislation.
Committee Consideration
On Tuesday, June 20, 2006, the Committee on Energy and
Commerce met in open markup session and ordered H.R. 5632
reported to the House, amended, by a voice vote, a quorum being
present.
Committee Votes
There were no record votes taken in connection with
ordering H.R. 5632 reported. A motion by Mr. Barton to order
H.R. 5632 reported to the House, amended, was agreed to by a
voice vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has not held oversight
or legislative hearings on this legislation.
Statement of General Performance Goals and Objectives
The goal of H.R. 5632 is to establish a national tire fuel
efficiency consumer information campaign to educate consumers
about the effect of replacement tires on automobile fuel
efficiency.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
5632, would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
June 23, 2006.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5632, a bill to
amend chapter 301 of title 49, United States Code, to establish
a national tire fuel efficiency consumer information program,
and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Gregory
Waring (for Federal costs), Lisa Ramirez-Branum (for the State
and local impact), and Craig Cammarata (for the impact on the
private sector).
Sincerely,
Donald B. Marron,
Acting Director.
Enclosure.
H.R. 5632--A bill to amend chapter 301 of title 49, United States Code,
to establish a national tire fuel efficiency consumer
information program, and for other purposes
CBO estimates that implementing H.R. 5632 would have no
significant impact on federal spending. Enacting the bill would
not affect direct spending, and would have an insignificant
impact on revenues.
Under the bill, the Secretary of Transportation would
require tire manufacturers to inform consumers about the
effects of tire maintenance on a vehicle's fuel economy. In
addition, the Secretary would create a fuel efficiency rating
system for tires and set uniform testing procedures for tire
manufacturers to rate the fuel efficiency of their products.
The National Highway Traffic Safety Administration (NHTSA),
within the Department of Transportation, regulates and tests
vehicles and equipment for highway safety and administers a
fuel economy program. Based on the cost of NHTSA's automotive
safety regulations program, CBO estimates that implementing the
new tire rating program would cost about $3 million over the
2007-2011 period, assuming the availability of appropriated
funds. CBO estimates that any fines assessed on tire
manufacturers for noncompliance would not have a significant
impact on federal revenues.
H.R. 5632 would preempt state and local authority to
implement their own consumer information laws or regulations on
fuel efficiency of tires; that preemption constitutes an
intergovernmental mandate as defined in the Unfunded Mandates
Reform Act (UMRA). CBO estimates, however, that the preemption
would impose insignificant additional costs on state, local, or
tribal governments that would be well below the threshold
established in UMRA ($64 million in 2006, adjusted annually for
inflation).
H.R. 5632 would impose private-sector mandates, as defined
in UMRA, on manufacturers and retailers of motor vehicle tires.
Based on information from government and industry sources, CBO
estimates that the total direct cost of those mandates would
fall below the annual threshold established by UMRA for
private-sector mandates ($128 million in 2006, adjusted
annually for inflation).
The bill would direct the Secretary of Transportation to
implement rules regarding a national fuel efficiency rating
system for tires and the specifications for test methods that
manufacturers must use in assessing and rating the fuel
efficiency of tires. According to industry sources, the
implementation costs for manufacturers associated with testing
and rating tires could amount to about $35 million to cover the
cost of capital investment in equipment, testing existing
products, and the administrative cost of setting up compliance
systems. In the year following implementation, industry sources
estimate that the annual ongoing costs of compliance would fall
significantly.
The bill also would require tire retailers to provide
consumers with information on the fuel efficiency rating of
motor vehicle tires at the point of sale. The requirements of
the mandate would depend upon future decisions made by the
Secretary of Transportation during the rulemaking process.
Industry and government sources suggest, however, that
retailers may likely be required to provide information
brochures to consumers or display some form of signage at the
point of sale. According to industry sources, there are about
40,000 tire retail outlets that may have to distribute
information about the tire efficiency of tens of thousands of
models of tire products. Further, those sources indicate that
brochures could cost as much as 10 cents per copy. Because of
the uncertainty regarding the future rulemaking by the
Secretary, CBO cannot determine the cost of the mandate. Based
on information from industry and government sources, however,
CBO expects the costs of this mandate would be small relative
to the annual threshold established by UMRA.
The CBO staff contacts for this estimate are Gregory Waring
(for Federal costs), Lisa Ramirez-Branum (for the state and
local impact), and Craig Cammarata (for the impact on the
private sector). This estimate was approved by Peter H.
Fontaine, Deputy Assistant Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Tire Fuel Efficiency Consumer Information.
Section 1(a) creates a new section 30123A in Chapter 301 of
title 49.
``Section 30123A. Tire Fuel Efficiency Consumer
Information.''
New section 30123A(a) requires the Secretary of
Transportation (the Secretary) to create rules establishing a
national tire fuel efficiency consumer information program for
replacement tires used on motor vehicles. The rule must include
(a) a national rating system for tires to assist consumers in
making more educated purchasing decisions; (b) requirements for
providing information to consumers, including at the point of
sale and other dissemination methods; (c) specifications for
test methods for tire manufacturers to use in assessing and
rating tires; and (d) a national tire maintenance consumer
education campaign, including tire inflation pressure,
alignment, rotation, and tread wear. This rule shall not apply
to tires excluded from coverage under 49 C.F.R. 575.104(c).
New section 30123A(b) requires the Secretary to consult
with the Secretary of Energy and the Administrator of the
Environmental Protection Agency on the means of conveying tire
fuel efficiency consumer information.
New section 30123A(c) requires the Secretary to
periodically report to Congress on the utility of the tire fuel
efficiency consumer information rules, the level of cooperation
with the tire manufacturing industry, and the contribution of
the rules to the national goals for reducing energy
consumption.
New section 30123A(d) prohibits the Secretary from
requiring any permanent labeling on tires for the purpose of
conveying tire fuel efficiency information.
New section 30123A(e) prohibits a State or political
subdivision of a State from adopting or enforcing any law or
regulation on tire fuel efficiency consumer information not in
effect as of January 1, 2006, that is not identical to the
Department's rule. This language would exempt from preemption
the 2003 California law that requires the California Energy
Commission to develop a comprehensive tire energy efficiency
program. This language in new section 30123A(e) only preempts
rating and consumer education programs. It does not preempt any
State from regulating the fuel efficiency of tires not
otherwise preempted under Chapter 301.
Section 1(b) amends section 30165(a) to include a civil
penalty for failure to comply with the national tire fuel
efficiency consumer information program of not more than
$50,000 per violation.
Section 1(c) amends the table of contents.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
CHAPTER 301 OF TITLE 49, UNITED STATES CODE
CHAPTER 301--MOTOR VEHICLE SAFETY
SUBCHAPTER I--GENERAL
Sec.
30101. Purpose and policy.
* * * * * * *
SUBCHAPTER II--STANDARDS AND COMPLIANCE
30111. Standards.
* * * * * * *
30123A. Tire fuel efficiency consumer information.
* * * * * * *
SUBCHAPTER II--STANDARDS AND COMPLIANCE
* * * * * * *
Sec. 30123A. Tire Fuel Efficiency Consumer Information
(a) Rulemaking.--(1) Not later than 18 months after the date
of enactment of this section, the Secretary of Transportation
shall, after notice and opportunity for comment, promulgate
rules establishing a national tire fuel efficiency consumer
information program for tires designed for use on motor
vehicles to educate consumers about the effect of tires on
automobile fuel efficiency.
(2) The rulemaking shall include each of the following:
(A) A national tire fuel efficiency rating system for
motor vehicle tires to assist consumers in making more
educated tire purchasing decisions.
(B) Requirements for providing information to
consumers, including information at the point of sale
and other potential information dissemination methods,
including the internet.
(C) Specifications for test methods for manufacturers
to use in assessing and rating tires to avoid variation
among test equipment and manufacturers.
(D) A national tire maintenance consumer education
program including, information on tire inflation
pressure, alignment, rotation, and tread wear to
maximize fuel efficiency.
(3) This section shall not apply to tires excluded from
coverage under section 575.104(c) of title 49, Code of Federal
Regulations, as in effect on date of enactment of this section.
(b) Consultation.--The Secretary shall consult with the
Secretary of Energy and the Administrator of the Environmental
Protection Agency on the means of conveying tire fuel
efficiency consumer information.
(c) Report to Congress.--The Secretary shall conduct periodic
assessments of the rules promulgated under this section to
determine the utility of such rules to consumers, the level of
cooperation by industry, and the contribution to national goals
pertaining to energy consumption. The Secretary shall transmit
periodic reports detailing the findings of such assessments to
the Energy and Commerce Committee of the House of
Representatives and the Commerce, Science, and Transportation
Committee of the Senate.
(d) Tire Marking.--The Secretary shall not require permanent
labeling of any kind on a tire for the purpose of tire fuel
efficiency information.
(e) Preemption.--Nothing in this section shall prohibit a
State or political subdivision of a State from enforcing a law
or regulation on tire fuel efficiency consumer information in
effect on January 1, 2006. After a requirement under this
section is in effect, a State or political subdivision of a
State may adopt or enforce a law or regulation on tire fuel
efficiency consumer information enacted after January 1, 2006,
only if the law or regulation is identical to that requirement.
Nothing in this section shall be construed to preempt a State
or political subdivision of a State from regulating the fuel
efficiency of tires not otherwise preempted under this chapter.
* * * * * * *
SUBCHAPTER IV--ENFORCEMENT AND ADMINISTRATIVE
* * * * * * *
Sec. 30165. Civil penalty
(a) Civil Penalties.--
(1) * * *
* * * * * * *
(4) Section 30123a.--Any person who fails to comply
with the national tire fuel efficiency consumer
information program under section 30123A is liable to
the United States Government for a civil penalty of not
more than $50,000 for each violation.
* * * * * * *