
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC32904]

 
                        TITLE 49--TRANSPORTATION
 
             SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS
 
            PART C--INFORMATION, STANDARDS, AND REQUIREMENTS
 
                  CHAPTER 329--AUTOMOBILE FUEL ECONOMY
 
Sec. 32904. Calculation of average fuel economy

    (a) Method of Calculation.--(1) The Administrator of the 
Environmental Protection Agency shall calculate the average fuel economy 
of a manufacturer subject to--
        (A) section 32902(a) of this title in a way prescribed by the 
    Administrator; and
        (B) section 32902(b)-(d) of this title by dividing--
            (i) the number of passenger automobiles manufactured by the 
        manufacturer in a model year; by
            (ii) the sum of the fractions obtained by dividing the 
        number of passenger automobiles of each model manufactured by 
        the manufacturer in that model year by the fuel economy measured 
        for that model.

    (2)(A) In this paragraph, ``electric vehicle'' means a vehicle 
powered primarily by an electric motor drawing electrical current from a 
portable source.
    (B) If a manufacturer manufactures an electric vehicle, the 
Administrator shall include in the calculation of average fuel economy 
under paragraph (1) of this subsection equivalent petroleum based fuel 
economy values determined by the Secretary of Energy for various classes 
of electric vehicles. The Secretary shall review those values each year 
and determine and propose necessary revisions based on the following 
factors:
        (i) the approximate electrical energy efficiency of the vehicle, 
    considering the kind of vehicle and the mission and weight of the 
    vehicle.
        (ii) the national average electrical generation and transmission 
    efficiencies.
        (iii) the need of the United States to conserve all forms of 
    energy and the relative scarcity and value to the United States of 
    all fuel used to generate electricity.
        (iv) the specific patterns of use of electric vehicles compared 
    to petroleum-fueled vehicles.

    (b) Separate Calculations for Passenger Automobiles Manufactured 
Domestically and Not Domestically.--(1)(A) Except as provided in 
paragraphs (6) and (7) of this subsection, the Administrator shall make 
separate calculations under subsection (a)(1)(B) of this section for--
        (i) passenger automobiles manufactured domestically by a 
    manufacturer (or included in this category under paragraph (5) of 
    this subsection); and
        (ii) passenger automobiles not manufactured domestically by that 
    manufacturer (or excluded from this category under paragraph (5) of 
    this subsection).

    (B) Passenger automobiles described in subparagraph (A)(i) and (ii) 
of this paragraph are deemed to be manufactured by separate 
manufacturers under this chapter.
    (2) In this subsection (except as provided in paragraph (3)), a 
passenger automobile is deemed to be manufactured domestically in a 
model year if at least 75 percent of the cost to the manufacturer is 
attributable to value added in the United States or Canada, unless the 
assembly of the automobile is completed in Canada and the automobile is 
imported into the United States more than 30 days after the end of the 
model year.
    (3)(A) In this subsection, a passenger automobile is deemed to be 
manufactured domestically in a model year, as provided in subparagraph 
(B) of this paragraph, if at least 75 percent of the cost to the 
manufacturer is attributable to value added in the United States, 
Canada, or Mexico, unless the assembly of the automobile is completed in 
Canada or Mexico and the automobile is imported into the United States 
more than 30 days after the end of the model year.
    (B) Subparagraph (A) of this paragraph applies to automobiles 
manufactured by a manufacturer and sold in the United States, regardless 
of the place of assembly, as follows:
        (i) A manufacturer that began assembling automobiles in Mexico 
    before model year 1992 may elect, during the period from January 1, 
    1997, through January 1, 2004, to have subparagraph (A) of this 
    paragraph apply to all automobiles manufactured by that manufacturer 
    beginning with the model year that begins after the date of the 
    election.
        (ii) For a manufacturer that began assembling automobiles in 
    Mexico after model year 1991, subparagraph (A) of this paragraph 
    applies to all automobiles manufactured by that manufacturer 
    beginning with the model year that begins after January 1, 1994, or 
    the model year beginning after the date the manufacturer begins 
    assembling automobiles in Mexico, whichever is later.
        (iii) A manufacturer not described in clause (i) or (ii) of this 
    subparagraph that assembles automobiles in the United States or 
    Canada, but not in Mexico, may elect, during the period from January 
    1, 1997, through January 1, 2004, to have subparagraph (A) of this 
    paragraph apply to all automobiles manufactured by that manufacturer 
    beginning with the model year that begins after the date of the 
    election. However, if the manufacturer begins assembling automobiles 
    in Mexico before making an election under this subparagraph, this 
    clause does not apply, and the manufacturer is subject to clause 
    (ii) of this subparagraph.
        (iv) For a manufacturer that does not assemble automobiles in 
    the United States, Canada, or Mexico, subparagraph (A) of this 
    paragraph applies to all automobiles manufactured by that 
    manufacturer beginning with the model year that begins after January 
    1, 1994.
        (v) For a manufacturer described in clause (i) or (iii) of this 
    subparagraph that does not make an election within the specified 
    period, subparagraph (A) of this paragraph applies to all 
    automobiles manufactured by that manufacturer beginning with the 
    model year that begins after January 1, 2004.

    (C) The Secretary of Transportation shall prescribe reasonable 
procedures for elections under subparagraph (B) of this paragraph.
    (4) In this subsection, the fuel economy of a passenger automobile 
that is not manufactured domestically is deemed to be equal to the 
average fuel economy of all passenger automobiles manufactured by the 
same manufacturer that are not manufactured domestically.
    (5)(A) A manufacturer may submit to the Secretary of Transportation 
for approval a plan, including supporting material, stating the actions 
and the deadlines for taking the actions, that will ensure that the 
model or models referred to in subparagraph (B) of this paragraph will 
be manufactured domestically before the end of the 4th model year 
covered by the plan. The Secretary promptly shall consider and act on 
the plan. The Secretary shall approve the plan unless--
        (i) the Secretary finds that the plan is inadequate to meet the 
    requirements of this paragraph; or
        (ii) the manufacturer previously has submitted a plan approved 
    by the Secretary under this paragraph.

    (B) If the plan is approved, the Administrator shall include under 
paragraph (1)(A)(i) and exclude under paragraph (1)(A)(ii) of this 
subsection, for each of the 4 model years covered by the plan, not more 
than 150,000 passenger automobiles manufactured by that manufacturer but 
not qualifying as domestically manufactured if--
        (i) the model or models involved previously have not been 
    manufactured domestically;
        (ii) at least 50 percent of the cost to the manufacturer of each 
    of the automobiles is attributable to value added in the United 
    States or Canada;
        (iii) the automobiles, if their assembly was completed in 
    Canada, are imported into the United States not later than 30 days 
    after the end of the model year; and
        (iv) the model or models are manufactured domestically before 
    the end of the 4th model year covered by the plan.

    (6)(A) A manufacturer may file with the Secretary of Transportation 
a petition for an exemption from the requirement of separate 
calculations under paragraph (1)(A) of this subsection if the 
manufacturer began automobile production or assembly in the United 
States--
        (i) after December 22, 1975, and before May 1, 1980; or
        (ii) after April 30, 1980, if the manufacturer has engaged in 
    the production or assembly in the United States for at least one 
    model year ending before January 1, 1986.

    (B) The Secretary of Transportation shall grant the exemption unless 
the Secretary finds that the exemption would result in reduced 
employment in the United States related to motor vehicle manufacturing 
during the period of the exemption. An exemption under this paragraph is 
effective for 5 model years or, if requested by the manufacturer, a 
longer period provided by the Secretary in the order granting the 
exemption. The exemption applies to passenger automobiles manufactured 
by that manufacturer during the period of the exemption.
    (C) Before granting an exemption, the Secretary of Transportation 
shall provide notice of, and reasonable opportunity for, written or oral 
comment about the petition. The period for comment shall end not later 
than 60 days after the petition is filed, except that the Secretary may 
extend the period for not more than another 30 days. The Secretary shall 
decide whether to grant or deny the exemption, and publish notice of the 
decision in the Federal Register, not later than 90 days after the 
petition is filed, except that the Secretary may extend the time for 
decision to a later date (not later than 150 days after the petition is 
filed) if the Secretary publishes notice of, and reasons for, the 
extension in the Federal Register. If the Secretary does not make a 
decision within the time provided in this subparagraph, the petition is 
deemed to have been granted. Not later than 30 days after the end of the 
decision period, the Secretary shall submit a written statement of the 
reasons for not making a decision to the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on Commerce of the 
House of Representatives.
    (7)(A) A person adversely affected by a decision of the Secretary of 
Transportation granting or denying an exemption may file, not later than 
30 days after publication of the notice of the decision, a petition for 
review in the United States Court of Appeals for the District of 
Columbia Circuit. That court has exclusive jurisdiction to review the 
decision and to affirm, remand, or set aside the decision under section 
706(2)(A)-(D) of title 5.
    (B) A judgment of the court under this subparagraph may be reviewed 
by the Supreme Court under section 1254 of title 28. Application for 
review by the Supreme Court must be made not later than 30 days after 
entry of the court's judgment.
    (C) A decision of the Secretary of Transportation on a petition for 
an exemption under this paragraph may be reviewed administratively or 
judicially only as provided in this paragraph.
    (8) Notwithstanding section 32903 of this title, during a model year 
when an exemption under this paragraph is effective for a manufacturer--
        (A) credit may not be earned under section 32903(a) of this 
    title by the manufacturer; and
        (B) credit may not be made available under section 32903(b)(2) 
    of this title for the manufacturer.

    (c) Testing and Calculation Procedures.--The Administrator shall 
measure fuel economy for each model and calculate average fuel economy 
for a manufacturer under testing and calculation procedures prescribed 
by the Administrator. However, except under section 32908 of this title, 
the Administrator shall use the same procedures for passenger 
automobiles the Administrator used for model year 1975 (weighted 55 
percent urban cycle and 45 percent highway cycle), or procedures that 
give comparable results. A measurement of fuel economy or a calculation 
of average fuel economy (except under section 32908) shall be rounded 
off to the nearest .1 of a mile a gallon. The Administrator shall decide 
on the quantity of other fuel that is equivalent to one gallon of 
gasoline. To the extent practicable, fuel economy tests shall be carried 
out with emissions tests under section 206 of the Clean Air Act (42 
U.S.C. 7525).
    (d) Effective Date of Procedure or Amendment.--The Administrator 
shall prescribe a procedure under this section, or an amendment (except 
a technical or clerical amendment) in a procedure, at least 12 months 
before the beginning of the model year to which the procedure or 
amendment applies.
    (e) Reports and Consultation.--The Administrator shall report 
measurements and calculations under this section to the Secretary of 
Transportation and shall consult and coordinate with the Secretary in 
carrying out this section.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1062; Pub. L. 103-
429, Sec. 6(36), Oct. 31, 1994, 108 Stat. 4380; Pub. L. 104-287, 
Sec. 5(63), Oct. 11, 1996, 110 Stat. 3395.)

                                          Historical and Revision Notes
                                                 Pub. L. 103-272
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
32904(a)(1)...........................  15:2003(a)(1), (2).              Oct. 2
0, 1972, Pub. L. 92-513, 86 Stat.
                                                                          947, 
Sec.  503(a)(1), (2), (d)-(f);
                                                                          added
 Dec. 22, 1975, Pub. L. 94-163,
                                                                          Sec. 
 301, 89 Stat. 906, 907.
32904(a)(2)...........................  15:2003(a)(3).                   Oct. 2
0, 1972, Pub. L. 92-513, 86 Stat.
                                                                          947, 
Sec.  503(a)(3); added Jan. 7,
                                                                          1980,
 Pub. L. 96-185, Sec.  18
                                                                          (rela
ted to Sec.  503(a)(3) of Motor
                                                                          Vehic
le Information and Cost Savings
                                                                          Act),
 93 Stat. 1336.
32904(b)(1)...........................  15:2003(b)(2).                   Oct. 2
0, 1972, Pub. L. 92-513, 86 Stat.
                                                                          947, 
Sec.  503(b)(1), (2); added Dec.
                                                                          22, 1
975, Pub. L. 94-163, Sec.  301,
                                                                          89 St
at. 906; Oct. 10, 1980, Pub. L.
                                                                          96-42
5, Secs.  4(c)(2), (3), 8(e), 94
                                                                          Stat.
 1824, 1829.
32904(b)(2)...........................  15:2003(b)(1).
32904(b)(3)...........................  15:2003(b)(4).                   Oct. 2
0, 1972, Pub. L. 92-513, 86 Stat.
                                                                          947, 
Sec.  503(b)(4); added Oct. 10,
                                                                          1980,
 Pub. L. 96-425, Sec.  4(b), 94
                                                                          Stat.
 1824.
32904(b) (4)-(6)......................  15:2003(b)(3).                   Oct. 2
0, 1972, Pub. L. 92-513, 86 Stat.
                                                                          947, 
Sec.  503(b)(3); added Oct. 10,
                                                                          1980,
 Pub. L. 96-425, Sec.  4(a)(1),
                                                                          94 St
at. 1822; Nov. 8, 1984, Pub. L.
                                                                          98-62
0, Sec.  402(18), 98 Stat. 3358.
32904(c)..............................  15:2003(d)(1) (1st-3d
                                         sentences), (2), (e).
32904(d)..............................  15:2003(d)(3).
32904(e)..............................  15:2003(d)(1) (last sentence),
                                         (f).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a)(1), before clause (A), the words ``of a 
manufacturer subject to'' are substituted for ``for the purposes of'' 
for clarity. In clause (B)(ii), the words ``the sum of the fractions 
obtained by'' are substituted for ``a sum of terms, each term of which 
is a fraction created by'' to eliminate unnecessary words.
    Subsection (a)(2)(A) is substituted for ``as defined in section 
2012(b)(2) of this title'' for clarity.
    In subsection (a)(2)(B), before clause (i), the words ``the 
Administrator shall include in the calculation of average fuel economy'' 
are substituted for ``the average fuel economy will be calculated . . . 
to include'' for clarity. The text of 15:2003(a)(3)(B) is omitted as 
executed. The words ``determine and propose'' are substituted for 
``propose'' for clarity and consistency with the authority of the 
Secretary under the source provisions. The words ``based on the 
following factors'' are substituted for ``Determination of these fuel 
economy values will take into account the following parameters'' for 
clarity and to eliminate unnecessary words. The factors in clauses (i)-
(iv) are applied to revisions in fuel economy values for clarity and 
consistency with the authority of the Secretary under the source 
provisions. In clause (iv), the words ``patterns of use'' are 
substituted for ``driving patterns'' for clarity.
    In subsection (b)(1), before clause (A), the text of 
15:2003(b)(2)(A)-(D) is omitted as executed. In clause (A), the words 
``is imported . . . more than 30 days after'' are substituted for ``is 
not imported . . . prior to the expiration of 30 days following'' for 
clarity and for consistency in the revised chapter. The words ``The EPA 
Administrator may prescribe rules for purposes of carrying out this 
subparagraph'' are omitted as surplus because of the authority of the 
Administrator to prescribe regulations under section 32910(d) of the 
revised title. The term ``regulations'' is used in section 32910(d) 
instead of ``rules'' for consistency in the revised title and because 
the terms are synonymous. In clause (B), the words ``which is imported 
by a manufacturer in model year 1978 or any subsequent year, as the case 
may be, and'' are omitted as surplus.
    In subsection (b)(2)(A), before clause (i), the words ``Except as 
provided in paragraphs (4) and (5) of this subsection'' are added for 
clarity. The words ``the Administrator shall make separate 
calculations'' are substituted for ``In calculating average fuel economy 
. . . the EPA Administrator shall separate the total number of passenger 
automobiles manufactured by a manufacturer into the following two 
categories'' and ``The EPA Administrator shall calculate the average 
fuel economy of each such separate category'' to eliminate unnecessary 
words. In clauses (i) and (ii), the reference in the parenthetical to 
paragraph (3) is substituted for the reference in the source to 
paragraph (3), which apparently should have been a reference to 
paragraph (4). The text of 15:2003(b)(1)(A) (words in parentheses) and 
(B) (words in parentheses) is omitted as executed.
    Subsection (b)(2)(B) is substituted for 15:2003(b)(1) (words after 
last comma) because of the restatement.
    In subsection (b)(3)(A), before clause (i), the word ``deadlines'' 
is substituted for ``dates'' for clarity. The text of 15:2003(b)(4)(C) 
is omitted as executed.
    In subsection (b)(4)(A), before clause (i), the words ``A 
manufacturer may file with the Secretary of Transportation a petition 
for an exemption from the requirement of separate calculations under 
paragraph (2)(A) of this subsection'' are substituted for ``petition . . 
. for an exemption from the provisions of paragraph (1) filed by a 
manufacturer, the Secretary'' for clarity.
    In subsection (b)(5)(B), the words ``judgment of the court under 
this subparagraph may be reviewed'' are substituted for ``judgment of 
the court affirming, remanding, or setting aside, in whole or in part, 
any such decision shall be final, subject to review'' to eliminate 
unnecessary words.
    In subsection (b)(5)(C), the words ``Notwithstanding any other 
provision of law'' are omitted as surplus. The words ``a petition for'' 
are added for consistency.
    In subsection (c), the words ``of a model type'' and ``of a 
manufacturer'' are omitted as surplus. The words ``by rule'' are omitted 
as surplus because of the authority of the Administrator to prescribe 
regulations under section 32910(d) of the revised title. The term 
``regulations'' is used in section 32910(d) instead of ``rules'' for 
consistency in the revised title and because the terms are synonymous. 
The words ``However . . . the Administrator shall use the same 
procedures for passenger automobiles the Administrator used'' are 
substituted for ``Procedures so established with respect to passenger 
automobiles . . . shall be the procedures utilized by the EPA 
Administrator'' for clarity. The words ``(in accordance with rules of 
the EPA Administrator)'' are omitted as surplus. The words ``fuel 
economy tests shall be carried out with'' are substituted for 
``Procedures under this subsection . . . shall require that fuel economy 
tests be conducted in conjunction with'' to eliminate unnecessary words.
    In subsection (d), the words ``The Administrator shall prescribe a 
procedure under this section, or an amendment . . . at least'' are 
substituted for ``Testing and calculation procedures applicable to a 
model year and any amendment to such procedures . . . shall be 
promulgated not less than'' to eliminate unnecessary words.
    In subsection (e), the words ``his duties under'' are omitted as 
surplus.


                     Pub. L. 103-429, Sec. 6(36)(A)

    This makes conforming amendments necessary because of the 
restatement of 15:2003(b)(2)(G) as 49:32904(b)(3) by section 6(36)(B) of 
the bill.

                                         Pub. L. 103-429, Sec.  6(36)(B)
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
32904(b)..............................  15:2003(b)(2)(E), (G).           Oct. 2
0, 1972, Public Law 92-513, Sec.
                                                                          503(b
)(2)(E), (G), as amended Dec. 8,
                                                                          1993,
 Pub. L. 103-182, Sec.  371, 107
                                                                          Stat.
 2127.
-------------------------------------------------------------------------------
---------------------------------

    The text of 49:32904(b)(1) is the text of 49:32904(b)(2), as enacted 
by section 1 of the Act of July 5, 1994 (Public Law 103-272, 108 Stat. 
1063), with conforming changes made in the cited cross-references.
    The text of subsection (b)(2) is the text of 49:32904(b)(1)(A), as 
enacted by section 1 of the Act of July 5, 1994 (Public Law 103-272, 108 
Stat. 1063), with the amendments of the underlying source provisions of 
49:32904(b)(1)(A) made by section 371(b)(1) of the North American Free 
Trade Implementation Act (Public Law 103-182, 107 Stat. 2128). The words 
``(except as provided in paragraph (3))'' are substituted for ``Except 
as provided in subparagraph (G)'' because of the restatement of 
15:2003(b)(2)(G) as 49:32904(b)(3).
    In subsection (b)(3)(A), the words ``is imported . . . more than 30 
days after'' are substituted for ``is not imported . . . prior to the 
expiration of 30 days following'' for clarity and consistency with title 
49, United States Code.
    In subsection (b)(3)(C), the words ``and the EPA Administrator may 
prescribe rules for purposes of carrying out this subparagraph'' are 
omitted as surplus because of the authority of the Administrator to 
prescribe regulations under 49:32910(d). The amendment made by section 
371(b)(2) of the North American Free Trade Implementation Act (Public 
Law 103-182, 107 Stat. 2128) is not given effect because the last 
sentence of section 503(b)(2)(E) of the Motor Vehicle and Cost Savings 
Act (Public Law 92-513, 86 Stat. 947) was omitted in the restatement of 
title 49 because of the authority of the Administrator to prescribe 
regulations under 49:32910(d).
    The text of subsection (b)(4) is the text of 49:32904(b)(1)(B), as 
enacted by section 1 of the Act of July 5, 1994 (Public Law 103-272, 108 
Stat. 1063).


                   Pub. L. 103-429, Sec. 6(36)(C), (D)

    This makes conforming amendments necessary because of the 
restatement of 15:2003(b)(2)(G) as 49:32904(b)(3) by section 6(36)(B) of 
the bill.


                               Amendments

    1996--Subsec. (b)(6)(C). Pub. L. 104-287 substituted ``Committee on 
Commerce'' for ``Committee on Energy and Commerce''.
    1994--Subsec. (b)(1). Pub. L. 103-429, Sec. 6(36)(B), added par. (1) 
and struck out former par. (1) which read as follows: ``In this 
subsection--
        ``(A) a passenger automobile is deemed to be manufactured 
    domestically in a model year if at least 75 percent of the cost to 
    the manufacturer is attributable to value added in the United States 
    or Canada, unless the assembly of the automobile is completed in 
    Canada and the automobile is imported into the United States more 
    than 30 days after the end of the model year; and
        ``(B) the fuel economy of a passenger automobile that is not 
    manufactured domestically is deemed to be equal to the average fuel 
    economy of all passenger automobiles manufactured by the same 
    manufacturer that are not manufactured domestically.''
    Subsec. (b)(2). Pub. L. 103-429, Sec. 6(36)(B), added par. (2) and 
struck out former par. (2) which read as follows:
    ``(2)(A) Except as provided in paragraphs (4) and (5) of this 
subsection, the Administrator shall make separate calculations under 
subsection (a)(1)(B) of this section for--
        ``(i) passenger automobiles manufactured domestically by a 
    manufacturer (or included in this category under paragraph (3) of 
    this subsection); and
        ``(ii) passenger automobiles not manufactured domestically by 
    that manufacturer (or excluded from this category under paragraph 
    (3) of this subsection).
    ``(B) Passenger automobiles described in subparagraph (A)(i) and 
(ii) of this paragraph are deemed to be manufactured by separate 
manufacturers under this chapter.''
    Subsec. (b)(3), (4). Pub. L. 103-429, Sec. 6(36)(B), added pars. (3) 
and (4). Former pars. (3) and (4) redesignated (5) and (6), 
respectively.
    Subsec. (b)(5). Pub. L. 103-429, Sec. 6(36)(A), redesignated par. 
(3) as (5). Former par. (5) redesignated (7).
    Subsec. (b)(5)(B). Pub. L. 103-429, Sec. 6(36)(C), substituted 
``paragraph (1)(A)(i) and exclude under paragraph (1)(A)(ii)'' for 
``paragraph (2)(A)(i) and exclude under paragraph (2)(A)(ii)'' in 
introductory provisions.
    Subsec. (b)(6). Pub. L. 103-429, Sec. 6(36)(A), redesignated par. 
(4) as (6). Former par. (6) redesignated (8).
    Subsec. (b)(6)(A). Pub. L. 103-429, Sec. 6(36)(D), substituted 
``paragraph (1)(A)'' for ``paragraph (2)(A)'' in introductory 
provisions.
    Subsec. (b)(7), (8). Pub. L. 103-429, Sec. 6(36)(A), redesignated 
pars. (5) and (6) as (7) and (8), respectively.

                  Section Referred to in Other Sections

    This section is referred to in sections 32901, 32905, 32906, 32909, 
32910, 32911, 32912, 32916 of this title; title 15 section 2512.
