REGULATORY UPDATE

EPA Finalizes Relief for Aboveground Oil Storage

The Environmental Protection Agency (EPA) has reduced the burden for dealerships storing oil (used oil, bulk motor oil, other bulk lubricants, gasoline, diesel, etc.) in aboveground tanks and containers. Dealership facilities with between 1,320 and 10,000 gallons in aboveground oil storage capacity may now prepare a self-certified Spill Prevention, Control, and Countermeasure (SPCC) plan instead of having a professional engineer (PE) draft and certify one. In order to qualify for this streamlined, less costly approach, facilities also must have a very a good spill history.

The new rule also allows these smaller facilities to comply with tailored facility security and tank integrity inspection requirements without PE certification. Moreover, EPA has clarified the degree to which its rules apply to oil-filled equipment, to product tanks on tank trucks and trailers, and larger motor vehicle fuel tanks.

In a related notice, EPA is proposing to extend the compliance date for preparing or amending and implementing SPCC plans from October 31, 2007, until July 1, 2009, in part to allow the agency more time to issue further regulatory relief. Among other things, EPA plans to propose, for facilities with storage capacities of between 1,320 and 5,000 gallons that a simplified and more streamlined form/checklist certification be allowed in lieu of a self-certified plan.

In addition to issuing detailed guidance on EPA’s SPCC rules, NADA, in early 2007, intends to develop and distribute model dealership self-certifiable SPCC plans. Dealerships can then tailor the model to meet their specific needs.

For more information, go to www.epa.gov/oilspill or contact NADA Regulatory Affairs at regulatoryaffairs@nada.org.

EPA Creates New Mileage Stickers, Fuel-Economy Numbers

Beginning with model year 2008 vehicles, the Environmental Protection Agency (EPA) announced it is mandating the use of a newly designed fuel-economy label, typically found on the Monroney sticker for light-duty vehicles. NADA said it, –generally supports this new label, as it should prove more useful to prospective purchasers making fuel-economy comparisons between vehicles.” Automakers will begin transitioning to the new label next year.

EPA’s new fuel-economy test better reflects factors such as quick starts, high speeds, air conditioning use and cold-temperature driving. Though the new label will show fuel-economy numbers that better approximate in-use driving conditions, consumers should continue to recognize that their actual mileage will vary depending on how they drive and maintain their vehicles. And since no two drivers drive the same or in the same conditions, everyone’s actual mileage will continue to vary.

NADA said dealers are encouraged to send customers to www.MileageWillVary.com, where they can learn more about the new label and become more familiar with factors affecting their MPG. Dealership sales representatives should familiarize themselves with the new labels and with any manufacturer-specific communications on the topic. Since the fuel-economy numbers are expected to change based on EPA’s new test, dealership sales staff should be prepared to caution customers against comparingmodel year2007 with2008 vehicles. For more information on the new label, also visit www.fueleconomy.gov. Also see NADA’s paper –Eight Simple Steps to Lower Fuel Costs.”

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