98-4038. Manufactured Home Tires, Parts and Accessories Necessary for Safe Operation; and Manufactured Home Construction and Safety Standards  

  • [Federal Register Volume 63, Number 32 (Wednesday, February 18, 1998)]
    [Rules and Regulations]
    [Pages 8330-8340]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-4038]
    
    
    
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    Part VI
    
    
    
    
    
    Department of Transportation
    
    
    
    
    
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    Federal Highway Administration
    
    
    
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    49 CFR Part 393
    
    
    
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    Department of Housing and Urban Development
    
    
    
    
    
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    Office of the Assistant Secretary for Housing--Federal Housing 
    Commissioner
    
    
    
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    24 CFR Part 3280
    
    
    
    Manufactured Home Tires, Parts and Accessories Necessary for Safe 
    Operation, and Manufactured Home Construction and Safety Standards; 
    Final Rule
    
    Federal Register / Vol. 63, No. 32 / Wednesday, February 18, 1998 / 
    Rules and Regulations
    
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    DEPARTMENT OF TRANSPORTATION
    
    Federal Highway Administration
    
    49 CFR Part 393
    
    [FHWA Docket No. MC-95-1; FHWA-97-2341]
    
    DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
    
    Office of the Assistant Secretary for Housing--Federal Housing 
    Commissioner
    
    24 CFR Part 3280
    
    [Docket No. FR-3943-F-02]
    FHWA RIN 2125-AD41; HUD RIN 2502-AG54
    
    
    Manufactured Home Tires, Parts and Accessories Necessary for Safe 
    Operation; and Manufactured Home Construction and Safety Standards
    
    AGENCIES: Federal Highway Administration (FHWA), DOT; Office of the 
    Assistant Secretary for Housing, Federal Housing Commissioner, 
    Department of Housing and Urban Development (HUD).
    
    ACTION: Final rule and HUD interpretative bulletin.
    
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    SUMMARY: The FHWA and HUD are amending the Federal Motor Carrier Safety 
    Regulations and an interpretation of the Manufactured Home Construction 
    and Safety Standards concerning the transportation of manufactured 
    homes. The FHWA and HUD are reducing the amount of tire overloading 
    allowed (currently up to 50 percent above the tire manufacturer's load 
    rating) on tires used to transport manufactured homes. As a result of 
    this rulemaking the amount of the load on a manufactured home tire will 
    be reduced so that it cannot exceed the tire manufacturer's load rating 
    by more than 18 percent. Manufactured homes transported on tires 
    overloaded by 9 percent or more may not be operated at speeds exceeding 
    80 km/hr (50 mph). Eighteen-percent tire overloading will be allowed 
    for a two-year period. The two-year period will begin on November 16, 
    1998, effective date of this final rule. Because the agencies have 
    sufficient data indicating that overloading is potentially unsafe, 
    unless both agencies are persuaded that 18 percent overloading does not 
    pose a risk to the traveling public, or have an adverse impact on 
    safety or the ability of motor carriers to transport manufactured 
    homes, any overloading of tires beyond their design capacity will be 
    prohibited at the end of this two-year period.
    
    EFFECTIVE DATE: The effective date for this rule is November 16, 1998.
    
    FOR FURTHER INFORMATION CONTACT: For FHWA: Mr. Larry W. Minor, Office 
    of Motor Carrier Research and Standards, HCS-10, (202) 366-4009; or Mr. 
    Charles E. Medalen, Office of the Chief Counsel, HCC-20, (202) 366-
    1354, Federal Highway Administration, 400 Seventh Street, SW., 
    Washington, D.C. 20590. Office hours are from 7:45 a.m. to 4:15 p.m., 
    (eastern time), Monday through Friday, except Federal holidays.
        For HUD: Mr. David R. Williamson, Director, Office of Consumer and 
    Regulatory Affairs, Department of Housing and Urban Development, 451 
    Seventh Street, SW., Room 9158, Washington, DC 20410-8000. Telephones: 
    (voice) (202) 708-6401; (TTY) (202) 708-4594. Alternately, Mr. Richard 
    A. Mendlen, Office of Consumer and Regulatory Affairs, Manufactured 
    Housing and Standards Division, Department of Housing and Urban 
    Development, 451 Seventh Street, SW., Room 9152, Washington, DC 20410-
    8000. Telephones: (voice) (202) 708-6423; (TTY) (202) 708-4594.
        The phone numbers provided for further information are not toll-
    free numbers.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        On March 4, 1995, the President directed all agencies to remove 
    obsolete and unnecessary regulations, and to revise and improve the 
    remaining regulations. As part of HUD's and FHWA's review of their 
    respective regulations, each agency identified its regulations 
    applicable to the transportation of manufactured homes as inconsistent 
    with one another. In accordance with the President's directive to 
    improve regulations and the principles of Executive Order 12866 (which 
    directs agencies to avoid regulations that are inconsistent with 
    regulations of other agencies), HUD and the FHWA published a notice of 
    proposed rulemaking (NPRM) to eliminate inconsistencies between their 
    regulations concerning the transportation of manufactured homes (61 FR 
    18014; April 23, 1996).
    
    A. HUD Manufactured Home Construction and Safety Standards
    
        The National Manufactured Housing Construction and Safety Standards 
    Act of 1974 (Act), 42 U.S.C. 5401 et seq., authorizes the Secretary of 
    Housing and Urban Development (HUD) to establish and amend the Federal 
    Manufactured Home Construction and Safety Standards (the FMHCSS or the 
    Standards), 24 CFR Part 3280. Subpart J of the Standards covers the 
    general requirements for designing the manufactured home to fully 
    withstand the adverse effects of transportation shock and vibration 
    without damaging the integrated structure or its components.
        One of its components is the running gear assembly which is defined 
    in 24 CFR 3280.902 to include the subsystem consisting of suspension 
    springs, axles, bearings, wheels, hubs, tires, and brakes, with their 
    related hardware. On December 7, 1976 (41 FR 53626), the Department of 
    Housing and Urban Development issued Interpretative Bulletin J-1-76 
    which permits the overloading of manufactured home tires by up to 50 
    percent.
    
    B. FHWA Federal Motor Carrier Safety Regulations
    
        The FHWA's Federal Motor Carrier Safety Regulations (FMCSRs) are 
    based on a series of statutes starting with the Motor Carrier Act of 
    1935 and are codified at Subchapter B of Chapter III, Title 49 of the 
    Code of Federal Regulations. The FMCSRs provide requirements for the 
    operation of commercial motor vehicles in interstate commerce. The 
    FMCSRs define a commercial motor vehicle, in part, as any self-
    propelled or towed vehicle used on public highways in interstate 
    commerce to transport passengers or property when the vehicle has a 
    gross vehicle weight rating or gross combination weight rating of 4,536 
    or more kilograms (10,001 or more pounds) (49 CFR 390.5). Under this 
    definition, a manufactured home transported in interstate commerce is 
    considered a commercial motor vehicle and is subject to the FMCSRs.
        Section 393.75(f) of the FMCSRs prohibits the operation of 
    commercial motor vehicles on tires that carry a weight greater than 
    that specified in publications of certain standard-setting 
    organizations listed by the National Highway Traffic Safety 
    Administration in 49 CFR 571.119 (S5.1(b)) unless:
        (1) The vehicle is being operated under the terms of a special 
    permit issued by the State, and
        (2) The vehicle is being operated at a reduced speed that is 
    appropriate to compensate for tire loading in excess of the 
    manufacturer's normal rated capacity.
        Under the Motor Carrier Safety Assistance Program (MCSAP), the FHWA 
    provides financial assistance to States to enforce the FMCSRs or 
    compatible State regulations pertaining to commercial motor vehicle 
    safety (see 49 CFR part 350). State enforcement
    
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    officials have expressed concerns about the safety of certain practices 
    of carriers transporting manufactured homes. Their principal concern is 
    the movement of manufactured homes on overloaded tires. In certain 
    cases, vehicles with tires loaded 50 percent above their load ratings 
    are operated at highway speeds. These practices are inconsistent with 
    the FMCSRs.
    
    II. Publication of the Proposed Rule
    
        On April 23, 1996, the FHWA and HUD jointly published a notice of 
    proposed rulemaking to amend Sec. 393.75(f) and HUD's interpretative 
    bulletin concerning tire overloading (61 FR 18014). Because the 
    agencies have sufficient data indicating that overloading is 
    potentially unsafe, the agencies proposed limiting the overloading of 
    manufactured home tires to 18 percent now and phasing out the 
    overloading of manufactured home tires up to 18 percent within two 
    years. It was proposed that during the two-year period, both agencies 
    would review test and other technical data concerning the relative 
    performance of tires which are overloaded by 18 percent versus no tire 
    overloading. Any overloading of tires beyond their design capacity 
    would be prohibited after two years from the effective date of the 
    final rule unless both agencies are persuaded that 18 percent 
    overloading at a reduced speed of 80 kilometers per hour (km/hour) (50 
    miles per hour (mph)) does not pose a risk to the traveling public or 
    have an adverse impact on the safety or the ability of motor carriers 
    to transport manufactured homes.
    
    III. Analysis of Comments Received
    
        The FHWA and HUD received 14 comments from a variety of 
    organizations and individuals. The commenters were: Advocates for 
    Highway and Auto Safety (Advocates); the Alabama Public Service 
    Commission (Alabama PSC); Association for Regulatory Reform (ARR); 
    Dilo, Inc.; Mr. Kevin Edens, a port-of-entry officer with the Colorado 
    Department of Revenue; Mr. Robert S. Evans, a truck driver; The 
    Goodyear Tire & Rubber Company (Goodyear); Home Builders Company, Titan 
    Homes Division (Titan Homes); Jim Tim, Inc.; the Manufactured Housing 
    Institute (MHI); the New York Department of Transportation (New York 
    DOT); the North Carolina Manufactured Housing Institute (the North 
    Carolina MHI); Utah Department of Transportation (Utah DOT); and, the 
    Wisconsin Department of Transportation (Wisconsin DOT).
        Eight commenters either supported the proposal as published, 
    supported the proposal with certain suggested changes, or offered 
    general comments about common industry practices for transporting 
    manufactured housing units. The remaining commenters opposed the 
    rulemaking. The issues raised by the commenters have been organized 
    into two general categories: comments in support of the proposed 
    changes; and, comments in opposition to the proposed changes.
    
    A. Comments in Support of the Proposed Changes
    
        The Alabama PSC, Dilo, Inc., Goodyear, Jim Tim, Inc., the MHI, New 
    York DOT, North Carolina MHI, and Utah DOT supported the proposal to 
    reduce the amount of tire overloading. Some of these commenters also 
    suggested certain changes to the proposal. The suggested changes to the 
    language to be used in the interpretative bulletin and 49 CFR 393.75 
    are discussed in a separate section in this notice.
        The Alabama PSC stated that ``the safety of mobile home 
    transportation is poor and is getting worse.'' The Alabama PSC believes 
    regulations on mobile home transportation are necessary, and are in 
    need of revisions and improvements. The Alabama PSC supports the 
    reduction in the amount of overloading and ``the expansion of this 
    proceeding to include improvements in brake performance and enforcement 
    of standards on used tire conditions.'' The Alabama PSC stated:
        Mobile home transportation is now a common experience, but the 
    safety of these movements is worsening. Improvements in the regulations 
    to stop excessive overloading of tires, to improve braking performance, 
    and to improve enforcement are even more critical with the recent 
    increase of the speed of the vehicles sharing the road with mobile 
    homes.
        The Utah DOT stated:
        We have long felt that the allowance for overloading of mobile/
    manufactured home tires by 50% and up to 3,000 pounds was unsafe and 
    unwise. Our agents, at eight fixed facilities throughout the state have 
    diligently enforced the requirement, but have for years expressed 
    safety and operability concerns about the too liberal tire, axle and 
    braking system requirements for these behemoth loads. We do see a large 
    number of roadside tire changing which impede traffic flow and create 
    safety hazards and we wonder why more accidents and incidents have not 
    resulted.
        The Utah DOT believes that allowing 18 percent overloading for a 
    two-year period is a good compromise and that the plan to study the 
    issue is reasonable.
        The MHI, North Carolina MHI, and Jim Tim, Inc. were among industry 
    supporters of the proposed standards. The MHI stated that ``[i]t is the 
    consensus of MHI members that the proposed regulatory revisions should 
    be implemented, with key revisions recommended * * *.'' The MHI also 
    discussed its willingness to work with the FHWA and HUD during the two-
    year period during which 18 percent overloading would be allowed. The 
    MHI stated:
        Regarding the number of reported tire failures, discussed on page 
    18018 [61 FR 18018], industry believes that less than 25 percent of 
    reported tire failures can be attributed to tire overloading. 
    Therefore, during the two-year trial period for the 18-percent overload 
    rule, industry intends to gather data on the causes of tire failures, 
    to be shared with HUD and FHWA. Industry intends to provide test and 
    other technical data, in response to the request for information on 
    page 18021 [61 FR 18021], regarding the absence of information on this 
    subject. In this regard, MHI will explore with HUD officials the 
    possibility of conducting joint transportation studies under the 
    current partnership agreement for Action Item No. 25 of the National 
    Homeownership Strategy. Part of such studies should be the 
    establishment of a protocol to measure the level of safety on the 
    highways.
        The MHI expressed concerns about the automatic expiration of the 
    two-year period for 18 percent tire overloading. The MHI stated:
        It is generally conceded that current data pertinent to the 
    performance of manufactured home tires under varying conditions is 
    limited, outdated, and subject to a broad range of variables 
    insufficiently documented in a controlled environment. For this reason, 
    the industry supports the proposed two-year trial period, but the 
    industry further asserts that upon the submission of any tests and 
    other technical data by the industry and tire manufacturers during this 
    term, the term should be automatically extended beyond the two-year 
    expiration date now proposed while the agencies are reviewing them. In 
    other words, the industry submits that the proposed rule allowing for 
    the overloading of tires should not automatically expire at the end of 
    two years, provided tests and other technical data has been submitted 
    during such term for review by both agencies.
        The North Carolina MHI stated:
        We believe that these new regulations will mean that homes will be 
    moving slower, with reduced stress on larger,
    
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    stronger tires. Consequently, we believe that these new regulations 
    will mean safer highway driving conditions for other motorists, and 
    ensure more reliable delivery of our products to customers. That's a 
    win, win for everyone involved.
        Jim Tim, Inc., a transporter of manufactured housing units, 
    believes that the proposed standards will ``create a safer situation, 
    due to the fact that this will make it mandatory for the factories to 
    increase the number of axles they install on a manufactured home.''
    
    B. FHWA and HUD Response to Commenters Supporting the Rulemaking
    
        In response to comments requesting that the FHWA and HUD expand the 
    scope of the rulemaking to address issues such as axle and braking 
    requirements, the agencies will work together to determine whether 
    there is a need for a rulemaking(s) on these issues.
        Currently Subpart J of the Manufactured Home Construction and 
    Safety Standards requires that the braking systems on the manufactured 
    home and the towing vehicle must be capable of stopping the home 
    traveling at 32.2 km/hour (20 mph) in a distance of 12.2 meters (40 
    feet). The number of braking axles necessary to meet this performance 
    standard must be documented by engineering analysis, transportation 
    tests, or by acceptable documented transportation experience.
        The HUD-approved Design Approval Primary Inspection Agencies 
    (DAPIAs) make the final determination of the adequacy of the 
    manufacturer's compliance with these sections of the HUD standards. 
    After discussion with the DAPIAs and other interested parties, HUD will 
    assess if further changes are needed to address the percentage of axles 
    that must be equipped with brakes.
        With regard to the MHI's request that the agencies allow 18 percent 
    overloading of tires to continue beyond the proposed two-year period, 
    the FHWA and HUD believe the proposed automatic expiration date is 
    appropriate. The automatic expiration date will impose upon the 
    regulated industry and both Federal agencies a deadline that will force 
    all parties to move quickly toward the collection and analysis of 
    relevant data. The FHWA and HUD will work closely with the MHI and, if 
    warranted by technical data submitted well in advance of the expiration 
    date, consider publishing in the Federal Register a notice proposing 
    the extension of the current expiration date.
    
    C. Comments in Opposition to the Proposed Changes
    
        The Advocates for Highway and Auto Safety (Advocates), Association 
    for Regulatory Reform (ARR), Kevin Edens, Robert Evans, Titan Homes, 
    and Wisconsin DOT opposed the proposed changes to the FMCSRs and the 
    interpretative bulletin. The opposition was divided among those who 
    supported the continuation of 50 percent tire overloading and those who 
    advocated no tire overloading.
        Advocates expressed concern that the FHWA and HUD do not have 
    sufficient data to support allowing 18 percent overloading of the 
    tires. The AHAS stated:
        Although Advocates recognizes that the goals of this rulemaking are 
    well-intentioned, the amendments as proposed fail to meet minimum 
    informal rulemaking burdens pursuant to the Administrative Procedure 
    Act and prevailing case law. Neither the FHWA nor HUD has marshalled 
    adequate evidence in the rulemaking record to justify the proposed 
    amendments and, further, they have argued a two-year trial period for 
    the use of overloaded manufactured home tires that unwarrantedly 
    experiments with the safety of the travelling public.
        The agencies have not carried their burdens of supplying an 
    administrative record which properly ventilates the prime issue behind 
    their joint action, viz., whether overinflated tires on manufactured 
    homes present an unacceptable accident risk, whether in the past they 
    have resulted in untoward frequencies and numbers of crashes, and 
    whether both the operators of commercial vehicles transporting 
    manufactured homes as well as other members of the travelling public, 
    have been injured or killed by unacceptable industry practices.
        [T]he FHWA/HUD proposal of an 18 percent overload ceiling is also 
    not supported by any data or information on what the expected rate of 
    failures may be despite the fact that this level of overloading is 
    lower than many of the excessive levels prevalent in the manufactured 
    home industry. Given the advent of increasingly higher speed limits 
    posted on both Interstate and other state arterial and collector 
    highways, it is evident that the agencies really have no capability of 
    accurately predicting the failure rates and the associated increased 
    probability of accidents of an 18 percent overload ceiling. Indeed 
    nothing in the preamble of this proposed rule nor in the docket file in 
    the offices of the FHWA indicate why the FHWA and HUD have selected 18 
    percent as a tolerable overloading level or, in fact, why any 
    overloading is acceptable. This need to justify why an 18 percent 
    figure was arrived at is especially acute given the assertion of the 
    preamble that because of concerns about the safety of the travelling 
    public on increasingly crowded highways, HUD has concluded that the 
    current overloading of manufactured home tires is no long[er] 
    defensible. Id. 18020 [61 FR 18020]. Yet, the preoccupation of the 
    agencies is not with the projected failure rates and consequent 
    accident risks of an 18 percent tire overload threshold, but with the 
    cost burdens to the industry that result from changing tire types and 
    axles in order to avoid the acute problem of excessive overloading, 
    sometimes 50 to 60 percent.
        The ARR also expressed concerns that the FHWA and HUD do not have 
    sufficient data to support the proposed revisions to the FMCSRs and the 
    interpretative bulletin. However, the ARR opposed lowering the present 
    50-percent limit on tire overloading.
        The ARR expressed concern about the economic impacts that the 
    rulemaking would have on consumers and small businesses. The ARR 
    stated:
        ARR's members are primarily small to medium-sized manufacturers. 
    Due to their smaller size and correspondingly lower levels of 
    capitalization, such businesses are disproportionately affected by 
    excessive and/or inappropriate regulation and related compliance costs. 
    Indeed, in a federally-regulated industry such as manufactured housing, 
    the financial health of producers and other industry participants is 
    directly dependent upon sensible, practical and cost-effective 
    administrative standards.
        Cost-effective regulation is also important for consumers. Although 
    manufactured housing now accounts for more than 30% of all new single-
    family home starts, and the industry generates some $23 billion in 
    economic activity annually, manufactured home-buyers tend to be either 
    lower or middle-income families or persons living on a fixed income. 
    For such purchasers, the difference of only a few dollars in the final 
    sale price of a home (especially when compounded by higher taxes and 
    higher fees) could spell the difference between obtaining a mortgage 
    and not qualifying for financing. Accordingly, it is particularly 
    important, in the case of manufactured homes, for proposed rules to be 
    both objectively justifiable, in terms of their substance, and cost-
    justifiable, in the sense that the rule returns more in benefits than 
    it costs, and does not unduly burden manufactured home purchasers.
    
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        [T]he rule change contemplated by the Joint Docket does not appear 
    to be justified by the minimal available data regarding the failures. 
    Moreover, the proposed change is substantive, rather than 
    interpretative, and would, in effect, convert the relevant portion of 
    the HUD Code from a performance standard to a prescriptive standard. In 
    addition, there is no concrete evidence to support the change sought by 
    the issuing agencies, and inadequate consideration has been given by 
    HUD to the cost impact of the rule upon manufactured home purchasers--
    particularly when combined with the effects of other recent changes to 
    the standards.
        Titan Homes opposed the rulemaking because it believes ``there is 
    no objective, empirical reason to make a change.'' Titan Homes stated:
        The 50% rule has been in effect since 1976 and has worked to reduce 
    costs while not compromising the safety of the toter [towing unit] with 
    the manufactured home, or the other vehicles they interface on the 
    road. It has been my experience that the transporters of manufactured 
    housing have an exemplary safety record when compared with other types 
    of transporters and/or four wheeled vehicles. Your [FHWA and HUD's] own 
    statistics should verify these facts quite easily.
        The Wisconsin DOT also opposed the proposed changes to the FMCSRs 
    and the interpretative bulletin. The Wisconsin DOT stated:
        Although it is a two year study the major concern remains the safe 
    operation of the manufactured homes. Every effort should be made to use 
    tires whose manufactured weight rating is not exceeded. Although the 
    proposed weight limit increase does not seem to be large (18%), when 
    operated at reduced speeds, there is really no justification other than 
    the cost factor per unit.
        Wisconsin oversize permits do not require reduced speeds to 
    transport manufactured homes; therefore, there is no real way to assure 
    operation at a reduced speed as proposed. Recent changes to federal and 
    state laws have increased speed limits; therefore creating the 
    possibility of these units being operated at higher speeds rather than 
    the lower speed, putting more stress on the tires.
        The Wisconsin Department of Transportation has some real safety 
    concerns about the operation of these units on tires that are rated at 
    less than the weight of the unit.
    
    D. FHWA and HUD Response to Commenters Opposed to the Rulemaking
    
        In response to concerns expressed by AHAS and ARR regarding a lack 
    of data to support this rulemaking, the FHWA and HUD emphasize that 
    this more stringent standard, reducing the amount of permissible 
    overloading from 50 percent to 18 percent and establishing a speed 
    restriction of 80 km/hour (50 mph) when the tires are overloaded, was 
    developed based on technical data reviewed by the FHWA and HUD and 
    information provided by commenters which suggest that most tire 
    failures attributable, in whole or in part, to tire overloading are 
    associated with overloading in excess of 18 percent. Consequently, the 
    FHWA and HUD have concluded that tire failures attributed to 
    overloading will be substantially reduced when transporters of 
    manufactured homes are required to comply with the new restrictions.
        As part of the effort to gather data on the number of reported 
    failures of new and used tires during the transportation of 
    manufactured homes, HUD obtained information from three companies which 
    transport large numbers of manufactured homes. The three companies 
    collectively transport more than 30 percent of the manufactured homes 
    produced in the United States and in the case of the largest 
    transporter, nearly 50,000 manufactured homes per year.
        The three companies differed in the reported overall rate of tire 
    failure for shipment of manufactured homes. The failure rate for new 
    tires ranged from 4 percent to 7 percent. The used tire failure rate 
    was 9 percent. According to the MHI, roughly 55 percent of the tires 
    sold to manufactured housing producers in 1994 were used tires.
        Since the data from one company represented a large share of the 
    market and transportation experience in a large number of States, HUD 
    believes that the company's failure rate of 7 percent is the most 
    representative of actual conditions. Therefore, the FHWA and HUD used a 
    failure rate of 7 percent for new tires and 9 percent for used tires 
    with an overall average failure rate of 8 percent in the notice of 
    proposed rulemaking. Since each section of a manufactured home usually 
    contains 6 tires, a tire will fail on about 40 percent of the sections 
    shipped each year. Multiple failures of tires are less common but are 
    known to occur.
        There was also substantial variability among these three companies 
    concerning the causes of tire failure. One company indicated that 
    foreign objects were the cause of 99 percent of tire failures, while 
    the other companies indicated that substandard tires and tire 
    overloading were the chief causes of tire failure. The other companies 
    also noted that operating at excessive speed and other causes were less 
    significant factors in tire failure.
        There are no separate data as to the rate of failure due to tire 
    overloading in relation to other factors, such as substandard tires, 
    improper inflation, excessive heat, etc. The risk of tire failure due 
    to overloading can be increased by operating the tire at reduced 
    inflation, the heat of the pavement, high speeds, mounting procedures 
    and other practices which, if combined, may virtually assure tire 
    failure. Hence, determining the percentage of failures attributable 
    solely to tire overloading is difficult.
        Data from one tire recycler, however, indicated that up to 70 
    percent of tires which are damaged can be recycled and reused after 
    repair. This would suggest that foreign objects may have been the 
    principal cause of tire failure rather than blow-outs due to 
    overloading or other causes. The damage associated with blow-outs or 
    causes other than foreign objects is generally too extensive to be 
    repaired.
        Based on the available information, the FHWA and HUD estimate that 
    25 percent of reported failures can be attributed partly to tire 
    overloading. The FHWA and HUD reduced this estimate by half to account 
    for failures due in part to aggravating factors, such as improper 
    inflation or mounting. At the time the NPRM was published, the agencies 
    assumed that 450,000 sections of manufactured homes would be shipped in 
    1996 and that the tire overloading would be responsible for at least 
    22,500 blowouts (450,000 shipments  x  0.40 (factor for shipments with 
    at least one tire failure)  x  0.125 (percentage attributable to tire 
    overloading)). The FHWA and HUD have increased the estimate of the 
    number of manufactured home shipments to 500,000 per year. As a result, 
    tire overloading is now believed to be responsible for at least 25,000 
    blow-outs.
        The estimate of 500,000 shipments was derived by assuming an annual 
    estimate of 340,000 manufactured homes produced, with a 53 percent 
    distribution, or 180,200 shipments, of single sections and a 47 percent 
    distribution, or 319,600 shipments, of multiple sections. The total 
    number of shipments calculated in this manner is 499,800, or about 
    500,000. The actual 1997 projections are expected to be somewhat 
    higher.
    
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        The conflicting claims from State governments and manufacturers 
    concerning the incidence of tire failure varied from a conclusion that 
    it is a relatively uncommon occurrence (1-2 percent of trips) to an 
    estimate by one State official that many transporters are suffering 
    tire failures on most trips. None of the State agencies contacted while 
    the FHWA and HUD were developing the NPRM, and none of the commenters 
    responding to the NPRM, provided information indicating that tire 
    failures during the transportation of manufactured homes have resulted 
    in collisions between the transported unit and other vehicles, or 
    collisions between the manufactured housing unit and fixed objects. 
    However, the FHWA and HUD believe that the current level of tire 
    failures must be substantially reduced to prevent potential accidents.
        With regard to Advocates' uncertainty about how the FHWA and HUD 
    selected the 18-percent overloading limit, this decision making process 
    was explained in the April 23, 1996, NPRM. Pages 18018 through 18020 
    discuss the regulatory options that the FHWA and HUD considered.
        The FHWA and HUD examined the cost-effectiveness of four 
    alternatives in the NPRM that would substantially alleviate or 
    eliminate the problem of tire overloading. All of the alternatives used 
    the 3,000-pound-per-tire load limit in HUD's Interpretative Bulletin J-
    1-76. The first two options involved limiting the amount of tire 
    overloading and would have the net effect of requiring the use of 
    specific upgraded tires corresponding to the amount of overloading. The 
    other options involved prohibiting tire overloading. Compliance with 
    the prohibition on overloading would have required the use of either 
    upgraded tires, or upgraded tires and an additional axle(s).
        The first option involved limiting the amount of overloading to 18 
    percent which corresponds to the amount of overloading that would occur 
    if manufactured home transporters switched from 7-14.5, 8 ply tires 
    (Series D) to 8-14.5, 10 ply tires (Series E). The 8-14.5, 10 ply tires 
    have a load rating of 1,152 kg (2,540 pounds). The notice indicated 
    that this option would have resulted in an average wholesale cost 
    increase of approximately $60 per manufactured home.
        The second option the agencies considered was to reduce the amount 
    of overloading to 8 percent which corresponds to the amount of 
    overloading if 8-14.5, 12 ply tires (Series F) are used. The 8-14.5, 12 
    ply tires have a load rating of 1,266 kg (2,790 pounds). This option 
    would have resulted in an average wholesale cost increase of $84 per 
    manufactured home transported.
        The third option was the elimination of tire overloading. 
    Manufacturers could accomplish this by adding an axle and using 8-14.5, 
    10 ply tires (Series E). The average wholesale cost increase for this 
    option would have been $287 per manufactured home transported.
        The fourth option was to eliminate overloading through the use of 
    9-14.5, 12 ply tires (Series E or F). These tires have a load rating of 
    1,334 kg and 1,465 kg (2,940 pounds and 3,230 pounds), respectively. 
    The average wholesale cost increase for this option was estimated to be 
    $265 per manufactured home transported.
        The FHWA and HUD proposed using the first option because, based 
    upon the available information, it appeared to be the most cost 
    effective way to substantially reduce the number of tire failures. 
    After reviewing the public comments received in response to the NPRM, 
    the FHWA and HUD have concluded that the first option continues to 
    represent the most cost effective approach.
        The FHWA and HUD disagree with Advocates' assertion that the 
    agencies have not fulfilled the requirements of the Administrative 
    Procedure Act. The agencies have reviewed information and data 
    currently available and comments from all interested parties. Because 
    FHWA and HUD have sufficient data indicating that overloading is 
    potentially unsafe, they are reducing the amount of tire overloading 
    allowed to 18 percent and phasing out overloading up to 18 percent 
    within two years unless both agencies are persuaded that the 18 percent 
    overloading is safe. The information contained in the rulemaking docket 
    supports the actions taken by the agencies. The interim 18-percent tire 
    overloading established through this process represents a reasonable 
    compromise among the possible alternatives. Furthermore, the period 
    during which 18 percent overloading will be permitted is limited to 2 
    years. Unless both agencies are persuaded that 18 percent overloading 
    does not pose a risk to the traveling public or adversely impact the 
    safe transportation of manufactured homes, overloading of tires would 
    be prohibited.
        In response to the ARR's comments about the economic impact of this 
    rulemaking, HUD obtained its cost information directly from tire 
    suppliers and from the MHI Transportation Task Force which includes 
    transporters, manufacturers, and tire suppliers. The cost information 
    obtained from all sources was very similar and the FHWA and HUD believe 
    the cost information is reasonably accurate.
        The number of additional tires and/or axles required to satisfy 
    this rule is a function of the size and weight of the home. Because of 
    this, manufacturers will have differing cost impacts. Also, some 
    manufacturers may already be using additional axles or upgraded tires, 
    so the cost impact may be negligible.
        In order to obtain current information and to fully evaluate the 
    economic impact of this rule, HUD has examined a number of current 
    manufactured housing designs. The financial impact of the final rule 
    has been determined to be approximately $17 million per year. This 
    amounts to $50 for each of the approximately 340,000 manufactured homes 
    shipped each year. The FHWA and HUD do not consider this cost to be 
    unreasonable or to adversely affect low and moderate-income consumers' 
    ability to purchase manufactured homes.
        The MHI provided HUD and the FHWA with a copy of a report on the 
    life-cycle costs and benefits of various manufactured home 
    transportation systems. The report included an analysis of the benefits 
    and costs of upgrading the tires used in the transportation of 
    manufactured homes. A copy of the report, ``Manufactured Home 
    Transportation Systems Research,'' prepared by the Trucking Research 
    Institute under contract to the MHI, is included in the docket. The 
    report indicates that $3,207,634 in ``accident costs'' per year could 
    be saved by upgrading tires. The authors believe that tire failure 
    costs (e.g., repairing the flat tire and repairing other components 
    damaged as a result of the flat tire) would be reduced by $21,447,115 
    per year. Complications experienced by site installers would be reduced 
    and result in an additional savings of $2,866,500 per year. The total 
    benefits of upgrading tires were estimated to be $27,521,249.
        The FHWA and HUD consider the estimates in the MHI's report to be 
    reasonable. The information was gathered from producers of manufactured 
    homes, transporters, axle manufacturers, axle and tire recyclers, 
    manufactured home retailers and site installers. The MHI estimates that 
    the rulemaking will save the industry and consumers more than $2.5 
    million per year while improving highway safety. A more detailed 
    discussion of the economic impact of this rulemaking is provided in 
    section VI of this document.
        In response to the ARR's argument that the changes to 
    Interpretative Bulletin J-1-76 would convert the relevant portion of 
    HUD's regulations
    
    [[Page 8335]]
    
    from a performance-based standard to a prescriptive requirement, both 
    agencies disagree. The new requirements are performance-based in that 
    transporters of manufactured homes may use any type of manufactured 
    home tire as long as the amount of overloading does not exceed 18 
    percent. If the tires are loaded in excess of the manufacturers' load 
    ratings by 9 percent or more, the speed at which the manufactured home 
    may be transported is limited to 80 km/hour (50 mph). The FHWA and HUD 
    have established safety performance criteria and left to the discretion 
    of the manufacturers and transporters of manufactured homes the choice 
    of tire types and sizes, and the number of axles needed to meet the 
    performance criteria.
    
    IV. Discussion of Additional Issues Raised by Commenters
    
    A. Speed Restriction
    
        The New York DOT expressed concerns about the proposed speed 
    restrictions for manufactured homes transported on tires overloaded by 
    9 percent or more of the load rating. The New York DOT stated:
        Enforcement of a speed restriction on any vehicle with overloaded 
    tires would be difficult. Most law enforcement agencies have dedicated 
    staff for weight enforcement. This staff is a minor part of agency 
    manpower and is usually not involved in speed enforcement. The standard 
    officer on road patrol would not stop a manufactured home if it was 
    within the speed limit. If a manufactured home did reduce its speed to 
    less than 50 MPH, it would create a speed differential hazard, 
    especially on interstate highways. It is the speed differential, not 
    just the pure speed, which creates unsafe conditions.
        Given the two above observations about speeds, please consider 
    them. That is, speed restrictions that are just set to be cautious may 
    be counter productive. Speed restrictions should be made only where 
    there is good data indicating real safety benefits outweighing their 
    costs.
        The FHWA and HUD have concluded that the 80 km/hour (50 mph) speed 
    restriction proposed for 49 CFR 393.75 is necessary for cases in which 
    the amount of overloading is 9 percent or more of the load rating for 
    the tire. The FHWA and HUD have reviewed the Tire and Rim Association, 
    Inc., Year Book, an authoritative source concerning tire loading. The 
    Year Book indicates that the speed at which a tire is operated should 
    not exceed 80 km/hour (50 mph) for tires overloaded by up to 9 percent.
        The Tire and Rim Year Book does not encourage the overloading of 
    tires but the recommended limitation of the speed to 80 km/hour (50 
    mph) suggests that the operation of the manufactured home at the 
    reduced speed will improve the safety of operation of manufactured 
    homes transported on overloaded tires. Based upon the agencies' 
    experience with the transportation of manufactured homes, the FHWA and 
    HUD have concluded that the 80 km/hour (50 mph) speed restriction is 
    necessary.
        The FHWA and HUD are aware that many States have increased the 
    speed limits on their highways and that traffic may move at speeds up 
    to 120 km/hour (75 mph). Transporters of manufactured homes that 
    operate on such high-speed routes are strongly encouraged to select 
    tires and axles so that overloading is not necessary. The speed 
    restriction does not apply to the movement of all manufactured homes, 
    only those that are operated on tires overloaded by 9 percent or more.
    
    B. Availability of 8-14.5 Tires
    
        Only one tire manufacturer provided comments in response to the 
    NPRM. Goodyear stated:
        The NPRM notes a 1994 letter from Goodyear to the Florida 
    Manufactured Housing Association which stated that for an expected 
    demand at that time of 2.4 million tires, Goodyear could only supply 20 
    % of that demand in the 8-14.5MH LR-E size. That situation has changed. 
    There is or will be enough capacity in the industry to supply the 8-
    14.5MH LR-E [tires] by the time this rulemaking is issued as a final 
    rule with an effective date set for nine months thereafter.
        Based upon the information provided by Goodyear, the FHWA and HUD 
    believe the supply of tires necessary to comply with the requirements 
    of this rule is presently, or soon will be, sufficient to meet the 
    needs of manufactured home producers and transporters. The agencies do 
    not expect that motor carriers will have difficulty obtaining the 8-
    14.5 MH tires or that cost for such tires will escalate as a result of 
    the increased demand. However, the agencies believe that the 9-month 
    delay in the effective date will minimize the short-term economic 
    impact on the affected parties.
    
    V. Discussion of Implementation Schedule and Final Rule
    
        After reviewing all of the comments received in response to the 
    NPRM, the FHWA and HUD have determined that limiting the overloading of 
    manufactured home tires to 18 percent is the most cost-effective 
    approach to substantially reduce the number of tire failures attributed 
    to tire overloading. Shipments of manufactured homes continue to 
    increase and both agencies will work together to ensure highway safety 
    and prevent disruptions of the delivery of manufactured homes, and 
    adverse economic impacts on consumers and producers of manufactured 
    homes.
    
    A. Implementation Schedule
    
        Based upon the public comments and other information, the FHWA and 
    HUD are following the proposed phase-in schedule which will result in 
    the final rule and interpretative bulletin taking effect 9 months after 
    publication in the Federal Register. The purpose of the 9-month period 
    is to minimize the possibility of tire shortages and cost distortions 
    due to the changeover to higher load rated tires.
        For the purposes of HUD requirements, the revised interpretative 
    bulletin is applicable to manufactured homes which are labeled on or 
    after the effective date. HUD's authority to prescribe construction 
    standards is limited to the first sale of the manufactured home. HUD 
    does not have the authority to prescribe how homes previously built and 
    certified to the HUD standards should be retrofitted with tires and 
    axles if they are subsequently moved after the first sale of the unit. 
    Also, since there is no current mechanism for the purchaser to complete 
    an engineering analysis or other acceptable method of complying with 
    the law, the FHWA and HUD believe that this final rule should be 
    mandatory only for homes manufactured on or after the effective date of 
    the final rule.
        For the purposes of the FHWA's regulations, the tires on any 
    manufactured home, new or used, transported in interstate commerce on 
    or after the effective date of this rule must meet the requirements of 
    49 CFR 393.75.
    
    B. Revisions to the Wording of the Final Rule and Interpretative 
    Bulletin
    
        In response to the public comments, the FHWA and HUD are using 
    information from the latest edition (1997) of the Tire and Rim 
    Association, Inc. Year Book--the tire load limits for manufactured 
    (mobile) homes have not been changed from the 1994 Year Book used in 
    developing the proposed rule. The Year Book also provides that the load 
    and cold inflation pressure on the wheels and rims should not exceed 
    the manufacturer's recommendation even if the tire has been approved 
    for a higher loading. The FHWA and HUD agree with this recommendation 
    and this requirement has been included in the
    
    [[Page 8336]]
    
    amended Interpretative Bulletin and in 49 CFR 393.75.
        The FHWA and HUD note that the MHI recommended that the FHWA 
    include in its regulations a definition of the term ``special permit.'' 
    However, the FHWA and HUD have concluded that there is no readily 
    apparent need to define the term. The term is not used with regard to 
    the transportation of manufactured homes, and is only used in relation 
    to allowing overloading of tires on commercial motor vehicles other 
    than manufactured housing units. In addition, the States are 
    responsible for issuing permits for oversize and overweight vehicles. 
    The States have the latitude to establish permitting and other 
    requirements appropriate for the traffic conditions present in their 
    State. If the meaning of the term special permit becomes a significant 
    issue in the future, the FHWA will consider proposing a definition at 
    that time.
        Both the interpretative bulletin and 49 CFR 393.75 reference 49 CFR 
    571.119, paragraph S5.1(b), which lists the Tire and Rim Association, 
    Inc., Year Book along with several technical references recognized in 
    other countries. Given the production of tires in other countries, 
    FHWA/HUD have concluded that the final rule should be consistent with 
    this section.
        Finally, the FHWA has revised the regulatory language that is to be 
    included in 49 CFR 393.75(g). Section 393.75(g) now includes a clause 
    indicating that the FHWA and HUD will review industry and other data 
    submitted concerning this matter.
    
    C. Changes to Interpretative Bulletin J-1-76 of the Manufactured 
    Housing Standards
    
        The Department of Housing and Urban Development's authority to 
    issue interpretative bulletins is provided by 42 U.S.C. 3535(d) and 
    5424. HUD has determined that the following changes should be made to 
    Interpretative Bulletin J-1-76:
        1. Section C--``Axles'' is deleted in its entirety.
        2. Section D--``Tires, Wheels, and Rims'' is revised in its 
    entirety to reflect the preceding discussions in the preamble.
    
    D. Amendments to the FMCSRs
    
        The FHWA is amending 49 CFR 393.75 to make the FMCSRs consistent 
    with HUD's amendments to Interpretative Bulletin J-1-76. Section 
    393.75(f)(1)(i) and (ii) have been redesignated as Sec. 393.75(f)(1) 
    and (2), respectively. The redesignated paragraphs would address all 
    commercial motor vehicles with the exception of manufactured homes. 
    Section 393.75(f)(2) establishes a speed restriction of 80 km/hour (50 
    mph) on commercial motor vehicles operated on overloaded tires.
        Section 393.75(g) allows 18 percent overloading of manufactured 
    home tires for a period of two years after the effective date of the 
    final rule. Manufactured homes operating on tires overloaded by 9 
    percent or more would be restricted to a maximum speed of 80 km/hr (50 
    mph).
        Tire pressure and inflation requirements currently found at 
    Sec. 393.75(f)(2) and (3), are included in a new paragraph, 
    Sec. 393.75(h).
    
    VI. Cost Analysis of Regulation
    
        The Administration's policy in Executive Order 12866, Regulatory 
    Planning and Review, provides that ``Agencies should assess costs and 
    benefits, both quantifiable and non-quantifiable and choose the 
    approach with the maximum net benefits.'' As discussed in the NPRM 
    (pages 18018 through 18020, and repeated, in part, in Section III, D of 
    this document), the FHWA and HUD estimated the costs of various 
    alternatives, ranging from 18 percent overloading to no tire 
    overloading, and estimated the cost per manufactured home transported 
    for each of the alternatives.
    
    A. Examination of the ``Cost Impact'' of Upgraded Tires and Axles
    
        HUD has obtained updated cost information for the various types of 
    tires used on manufactured homes. The cost estimates assume that each 
    transportable section uses 6 tires; the cost information is shown in 
    Table A:
    
                                                         Table A                                                    
    ----------------------------------------------------------------------------------------------------------------
                                                                   Wholesale    Wholesale                           
                                                                   cost of 8-   cost of 7-  Increase in     Total   
                            Type of tire                          14.5 10 ply   14.5 8 ply   wholesale   incremental
                                                                   (Series E)   (Series D)      cost       cost per 
                                                                                                           section  
    ----------------------------------------------------------------------------------------------------------------
    NEW.........................................................          $43          $35           $8          $48
    USED........................................................           30           26            4           24
    ----------------------------------------------------------------------------------------------------------------
    
        As shown in Table A, the cost for upgraded tires is relatively 
    modest. It results in an average wholesale cost increase of 
    approximately $50 per manufactured home shipped. The determination of 
    the average cost per home is based on the usage patterns of new versus 
    used tires (45 percent new, 55 percent used); the relative percentage 
    of single section (53 percent) and multi-section (47 percent) homes; 
    and the use of 6 tires per section; and is calculated as follows:
    
    (0.45)[$8 x 6 x (.53)+2 x $8 x 6(.47)]+
    (0.55)[$6 x 6 x (.53)+2 x $6 x 6 x (.47)]=$51.15 or about $50.
    
    B. Examination of Manufacturer Approved Designs
    
        Manufactured home designs have substantially changed in the last 
    several years due to consumer demand, changes in the HUD construction 
    standards and the evolution of manufactured housing. For manufacturers 
    already using additional axles or upgraded tires, the cost impact of 
    this final rule would be reduced.
        The information gathered at the time of preparation of the proposed 
    rule did not reflect these new designs. Accordingly, HUD has undertaken 
    a technical review of manufacturer design packages to see the changes 
    in weight due to heavier exterior coverings, additional framing and 
    shear wall requirement, and other changes.
        Based upon a review of design packages, HUD has estimated that 
    approximately 25 percent of all homes produced were affected by the 
    1994 standards changes and that the increase in weight for those homes 
    was estimated at 5 percent. Therefore, there will be some manufacturers 
    which have already upgraded their transportation systems through the 
    addition of axles, upgraded tires or both.
        Also, in reviewing the design packages, HUD has determined that 
    many manufacturers design their axles for weights substantially greater 
    than the actual gross weight of the home. For example, a manufacturer 
    may be using
    
    [[Page 8337]]
    
    4 axles when an engineering analysis of the design indicates that only 
    3 axles are actually needed. Engineering review of several packages 
    indicated that the decrease in the permissible level of tire 
    overloading would not necessarily require an additional axle, since the 
    number of axles is already in excess of what is required to handle the 
    dead load.
        Furthermore, the use of 8-14.5 Series E tires with a load rating of 
    2,540 lbs. could even reduce manufacturer costs as the upgraded load 
    capacity of the tires may reduce the number of axles needed. In several 
    cases, the reduction in the number of axles would more than offset the 
    differential cost for upgraded tires, thus reducing the manufacturer's 
    overall cost. Manufacturers have indicated that they expect that the 
    use of upgraded tires would reduce the number of blowouts and the 
    expenses and damage to the home that might result.
        The financial impact of the final rule has been determined to be 
    approximately $17 million per year. This amounts to $50 for each of the 
    approximately 340,000 manufactured homes shipped each year.
    
    C. Examination of the Costs of Service Calls and Tire Failure
    
        The research report submitted by the MHI indicates that 
    transporters reported an average of one tire failure for every 2.038 
    sections moved from the home manufacturer to the retailer. Site 
    installers reported an average of one tire failure for every 11.182 
    sections moved from retailer to home site. Using these tire failure 
    rates, and HUD's revised estimate of 500,000 shipments per year, there 
    are approximately 245,338 tire failures per year for movements between 
    the manufacturer and the retailer and 44,714 tire failures per year for 
    movements between the retailer and the home site. The authors of the 
    report believe that the tire failure rate could be reduced by \2/3\ 
    (193,174) if the 8-14.5 MH tires are used. This does not, however, mean 
    that there are 193,174 failures caused by tire overloading.
        A cost of $123.36 per failure was calculated. The decrease in the 
    transporters' costs could be more than $23 million per year based upon 
    the estimates in the MHI's report. Preventing tire blowouts would also 
    reduce site installation problems associated with damage to the running 
    gear and chassis. The benefits for reducing site installation problems 
    are estimated by the MHI to be $2.8 million.
        The MHI also estimates that using upgraded tires would result in a 
    reduction in damage claims (i.e., transportation shock and vibration 
    damage to the manufactured home structure caused by tire failures) and 
    traffic congestion caused when manufactured homes break down. Those 
    benefits are estimated to be approximately $4.3 million and $5.2 
    million, respectively.
        In the FHWA and HUD's joint NPRM the agencies estimated (based upon 
    450,000 shipments per year) the number of tire failures caused by tire 
    overloading is at least 22,500. The agencies used a failure rate of 7 
    percent for new tires and 9 percent for used tires with an overall 
    average failure rate of 8 percent. The agencies estimated that a tire 
    will fail on about 40 percent of the sections shipped each year. Using 
    current figures on the number of manufactured home shipments, the FHWA 
    and HUD estimate that tire overloading causes approximately 25,000 tire 
    blowouts per year. This represents a conservative estimate.
        In a number of cases, the tire failure is corrected by the 
    transporter and therefore, the associated costs are included in the per 
    mile cost or other charges assessed by the transporters. Where the 
    manufacturer has to send service personnel, the data obtained from 
    manufactured home service managers indicates that the average repair 
    cost is $180.
        If 25 percent of the tire blowouts require road site service, the 
    costs to manufacturers would be approximately $1.1 million to 1.3 
    million per year. Therefore, the total estimated costs of tire failures 
    caused by overloading is more than $36 million per year and it is 
    likely that much of this cost, disruption of transportation and even 
    damage to the home can be abated through the use of upgraded tires.
        Other potential benefits from the adoption of this final rule 
    include increased safety on the nation's highways and a decreased 
    likelihood of accidents, injuries, and property damage losses resulting 
    from tire failures. In addition, the FHWA and HUD expect benefits in 
    the form of reduced insurance costs, more on-time deliveries and 
    reduced likelihood of injuries that can occur because of changing blown 
    tires.
        In summary, it is expected that there will be substantial cost 
    savings by reducing the number of tire failures through the use of 
    upgraded tires and axles. While there are some manufacturers that may 
    have to increase the number of axles, a review of manufactured home 
    designs indicates that existing number of axles in the approved designs 
    may be adequate, despite the reduction in tire overloading.
        Other manufacturers may actually reduce their overall costs by 
    using upgraded tires in conjunction with fewer axles. Finally, this 
    reduction in tire overloading will increase highway safety, and the 
    final rule provides the maximum benefits at the least additional cost 
    of all of the alternatives included in the proposed rule.
    
    VII. Rulemaking Analysis and Notices
    
    Executive Order 12866 (Regulatory Planning and Review) and DOT 
    Regulatory Policies and Procedures
    
        The FHWA and HUD have determined that this action is a significant 
    regulatory action within the meaning of Executive Order 12866 because 
    it involves a significant amount of public interest. In addition, the 
    FHWA has determined that this action is significant within the meaning 
    of Department of Transportation regulatory policies and procedures. 
    This action has undergone a formal review by the Office of Management 
    and Budget. Any changes to the rule resulting from this review are 
    available for public inspection in the docket referenced at the 
    beginning of this document.
        This rule establishes tire loading limitations for manufactured 
    homes transported in interstate commerce and eliminates the 
    inconsistency between the FHWA and HUD requirements for manufactured 
    homes. The FHWA and HUD have evaluated the economic impact of the 
    changes to the regulatory requirements concerning the safe 
    transportation of manufactured homes and determined that the standard 
    is reasonable, appropriate, and the least costly and intrusive approach 
    for the resolution of this issue (see section VII of this notice). The 
    financial impact of the final rule has been determined to be 
    approximately $17 million per year. This amounts to $50 for each of the 
    approximately 340,000 manufactured homes shipped each year. The total 
    economic benefits are estimated to be more than $36 million per year. 
    Therefore, the FHWA and HUD estimate that the final rule has a net 
    benefit of approximately $19 million per year. Other options examined 
    by the FHWA would have significant increases in the costs while 
    providing only a marginal increase in the estimated benefits.
    
    Regulatory Flexibility Act
    
        In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
    612), the FHWA and HUD have evaluated the potential effects of this 
    final rule on small entities and determined that the proposed standard 
    is reasonable, appropriate, and the least costly and
    
    [[Page 8338]]
    
    intrusive approach for the resolution of this issue. The FHWA and HUD 
    certify that this rulemaking does not have a significant economic 
    impact on a substantial number of small entities.
        The FHWA and HUD obtained cost information directly from tire 
    suppliers and from the MHI Task Force which includes transporters, 
    manufacturers, and tire suppliers. The cost information obtained from 
    all sources was very similar and the FHWA and HUD believe the data are 
    reasonably accurate.
        The number of additional tires and/or axles required to satisfy 
    this rule is a function of the size and weight of the manufactured 
    home. Because of this, manufacturers will have differing cost impacts. 
    Also, some manufacturers may already be using additional axles or 
    upgraded tires thereby greatly reducing the costs.
        Based upon the information reviewed by the FHWA and HUD, and the 
    information provided by commenters, the agencies do not believe the 
    costs per manufactured home for small entities to comply with this rule 
    will be significantly greater than the costs per manufactured home for 
    larger manufacturers and transporters. Therefore, the costs per 
    manufactured home for small entities to comply with this rule are not 
    expected to exceed $50.
        A small manufacturer, for example, producing 5 manufactured homes 
    per week, would have to spend approximately $250 per week or $13,000 
    annually. However, most, if not all, of the costs would be factored 
    into the prices of the manufactured homes produced. If all of the costs 
    are factored into the manufactured homes produced, the price for a new 
    manufactured home would increase by approximately $50, plus any 
    additional mark-up by the manufacturers and retailers.
        The FHWA and HUD note that the AAR stated that it believes ``the 
    action contemplated by the NPRM could cost consumers $600 per home or 
    more.'' The FHWA and HUD have carefully reviewed the estimates of the 
    economic impact of this rulemaking and the information provided by 
    other commenters to the docket and believe the AAR's estimate of the 
    impact on small entities and consumers is far in excess of the cost 
    estimates presented by the MHI. According to the MHI, its members 
    produce 65 percent of the manufactured homes built each year in the 
    United States. The MHI indicated that approximately 339,601 
    manufactured homes were produced by 92 member companies in 285 plants. 
    The FHWA and HUD believe the experiences of the MHI's members provide a 
    sound basis for estimating the costs for small entities and consumers 
    and consider the estimates presented by the FHWA and HUD in the final 
    rule to be consistent with the MHI's.
    
    Executive Order 12612 (Federalism Assessment)
    
        The FHWA has analyzed this rulemaking in accordance with the 
    principles and criteria contained in Executive Order 12612, Federalism, 
    and determined that this final rule does not have sufficient federalism 
    implications to warrant the preparation of a Federalism Assessment. 
    Under this rule, certain commercial motor vehicles will be prohibited 
    from traveling at speeds exceeding 80 km/hour (50 mph), but the FHWA 
    does not believe this requirement preempts State law nor does the 
    agency believe this requirement will significantly affect the States' 
    ability to discharge traditional State governmental functions. The FHWA 
    also notes that several State agencies commented to the docket in 
    support of this rulemaking.
        The General Counsel of HUD, as the Designated Official under 
    Section 6(a) of Executive Order 12612, has determined that the policies 
    contained in this final rule are covered by section 604(d) of the 
    National Manufactured Housing Construction and Safety Standards Act of 
    1974, which provides: ``Whenever a Federal manufactured home 
    construction and safety standard established under this title is in 
    effect, no State or political subdivision of a State shall have any 
    authority either to establish, or to continue in effect, with respect 
    to any manufactured home covered, any standard regarding construction 
    or safety applicable to the same aspect of performance of such 
    manufactured home which is not identical to the Federal manufactured 
    home construction and safety standard.''
    
    Executive Order 12372 (Intergovernmental Review)
    
        The regulations implementing Executive Order 12372 regarding 
    intergovernmental consultation on Federal programs and activities do 
    not apply to this program.
    
    (Catalog of Federal Domestic Assistance Program Number 20.217, Motor 
    Carrier Safety)
    
    Executive Order 13045, Protection of Children From Environmental Health 
    Risks and Safety Risks
    
        This rule will not pose an environmental health risk or safety risk 
    to children.
    
    Unfunded Mandates Reform Act
    
        This rule does not impose a Federal mandate that will result in the 
    expenditure by state, local, and tribal governments, in the aggregate, 
    or by the private sector, of $100 million or more in any one year (2 
    U.S.C. 1532).
    
    Paperwork Reduction Act
    
        The proposal in this document does not contain information 
    collection requirements [44 U.S.C. 3501 et seq.].
    
    National Environmental Policy Act
    
        The FHWA has analyzed this action for the purpose of the National 
    Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
    determined that this action would not have any effect on the quality of 
    the environment.
        A Finding of No Significant Impact with respect to the environment 
    was prepared for the proposed rule in accordance with HUD regulations 
    in 24 CFR part 50 that implement section 102(2)(C) of the National 
    Environmental Policy Act of 1969. Because the proposed rule is adopted 
    by this final rule without significant change, the initial Finding of 
    No Significant Impact remains applicable, and is available for public 
    inspection between 7:30 a.m. and 5:30 p.m. weekdays in the office of 
    the Rules Docket Clerk at the above address.
    
    Regulation Identification Numbers
    
        A regulation identification number (RIN) is assigned to each 
    regulatory action listed in the Unified Agenda of Federal Regulations. 
    The Regulatory Information Service Center publishes the Unified Agenda 
    in April and October of each year. The RINs contained in the heading of 
    this document can be used to cross reference this action with the 
    Unified Agenda.
    
    List of Subjects
    
    24 CFR Part 3280
    
        Fire prevention, Housing standards, Manufactured homes.
    
    49 CFR Part 393
    
        Highway safety, Highways and roads, Motor carriers, Motor vehicle 
    safety.
    
        In consideration of the forgoing, the Department of Housing and 
    Urban Development, under 42 U.S.C. 3535(d), is amending Interpretative 
    Bulletin J-1-76, and the Department of Transportation, Federal Highway 
    Administration is amending title 49, Code of Federal Regulations, 
    Chapter III, part 393 as follows:
    
    [[Page 8339]]
    
    Department of Housing and Urban Development
    
        Note: HUD Interpretative Bulletin J-1-76 does not and the 
    amendments to it will not appear in the Code of Federal Regulations.
    
        1. HUD Interpretative Bulletin J-1-76 is amended by removing and 
    reserving Section C and by revising Section D, as follows:
    
    Interpretative Bulletin J-1-76, Transportation--Subpart J of Part 
    3280
    
    * * * * *
    C. [Reserved]
    D. Section 3280.904(b)(8)--Tires, Wheels, and Rims
    [This Section D is effective November 16, 1998.] Manufactured homes 
    that are labeled on or after the effective date must comply with this 
    Section D. This provision will expire November 20, 2000, unless 
    extended by mutual consent of the Federal Highway Administration and 
    HUD during any subsequent rulemaking.]
        Tires and rims shall be sized and fitted to axles in accordance 
    with the gross axle weight rating determined by the manufactured home 
    manufacturer. The permissible tire loading may be increased up to a 
    maximum of 18 percent over the rated load capacity of the manufactured 
    home tire marked on the sidewall of the tire or increased up to a 
    maximum of 18 percent over the rated load capacity specified for the 
    tire in any of the publications of any of the organizations listed in 
    Federal Motor Vehicle Safety Standard (FMVSS) No. 119 (49 CFR 571.119, 
    S5.1(b)).
        Used tires may also be sized in accordance with the above criteria 
    whenever the tread depth is at least \2/32\ of an inch as determined by 
    a tread wear indicator. The determination as to whether a particular 
    used tire is acceptable shall also include a visual inspection of 
    thermal and structural defects (e.g., dry rotting, excessive tire 
    sidewall splitting, etc.). Wheels and rims shall be sized in accordance 
    with the tire manufacturer's recommendations as suitable for use with 
    the tires selected.
        The load and cold inflation pressure imposed on the rim or wheel 
    must not exceed the rim and wheel manufacturer's instructions even if 
    the tire has been approved for a higher load or inflation. Tire cold 
    inflation pressure limitations and the inflation pressure measurement 
    correction for heat shall be as specified in 49 CFR 393.75(h).
    * * * * *
    
    Federal Highway Administration
    
    49 CFR CHAPTER III
    
    PART 393--PARTS AND ACCESSORIES NECESSARY FOR SAFE OPERATION
    
        2. The authority citation at the end of Sec. 393.75 is removed and 
    the authority citation for 49 CFR Part 393 continues to read as 
    follows:
    
        Authority: Section 1041(b) of Pub. L. 102-240, 105 Stat. 1914, 
    1993 (1991), 49 U.S.C. 31136 and 31502; 49 CFR 1.48.
    
        3. Section 393.5 is amended by adding the definitions of 
    ``manufactured home,'' ``length of a manufactured home,'' and ``width 
    of a manufactured home,'' placing them in alphabetical order, to read 
    as follows:
    
    
    Sec. 393.5  Definitions.
    
    * * * * *
        Length of a manufactured home. The largest exterior length in the 
    traveling mode, including any projections which contain interior space. 
    Length does not include bay windows, roof projections, overhangs, or 
    eaves under which there is no interior space, nor does it include 
    drawbars, couplings or hitches.
    * * * * *
        Manufactured home means a structure, transportable in one or more 
    sections, which in the traveling mode, is eight body feet or more in 
    width or forty body feet or more in length, or, when erected on site, 
    is three hundred twenty or more square feet, and which is built on a 
    permanent chassis and designed to be used as a dwelling with or without 
    a permanent foundation when connected to the required utilities, and 
    includes the plumbing, heating, air-conditioning, and electrical 
    systems contained therein. Calculations used to determine the number of 
    square feet in a structure will be based on the structure's exterior 
    dimensions measured at the largest horizontal projections when erected 
    on site. These dimensions will include all expandable rooms, cabinets, 
    and other projections containing interior space, but do not include bay 
    windows. This term includes all structures which meet the above 
    requirements except the size requirements and with respect to which the 
    manufacturer voluntarily files a certification pursuant to 24 CFR 
    3282.13 and complies with the standards set forth in 24 CFR part 3280.
    * * * * *
        Width of a manufactured home. The largest exterior width in the 
    traveling mode, including any projections which contain interior space. 
    Width does not include bay windows, roof projections, overhangs, or 
    eaves under which there is no interior space.
        4. Section 393.75 is amended by revising paragraph (f), and by 
    adding paragraphs (g) and (h) to read as follows:
    
    
    Sec. 393.75  Tires.
    
    * * * * *
        (f) Tire loading restrictions. With the exception of manufactured 
    homes, no motor vehicle shall be operated with tires that carry a 
    weight greater than that marked on the sidewall of the tire or, in the 
    absence of such a marking, a weight greater than that specified for the 
    tires in any of the publications of any of the organizations listed in 
    Federal Motor Vehicle Safety Standard No. 119 (49 CFR 571.119, S5.1(b)) 
    unless:
        (1) The vehicle is being operated under the terms of a special 
    permit issued by the State; and
        (2) The vehicle is being operated at a reduced speed to compensate 
    for the tire loading in excess of the manufacturer's rated capacity for 
    the tire. In no case shall the speed exceed 80 km/hr (50 mph).
        (g) Tire loading restrictions for manufactured homes. Effective 
    November 16, 1998, tires used for the transportation of manufactured 
    homes (i.e., tires marked or labeled 7-14.5MH and 8-14.5MH) may be 
    loaded up to 18 percent over the load rating marked on the sidewall of 
    the tire or, in the absence of such a marking, 18 percent over the load 
    rating specified in any of the publications of any of the organizations 
    listed in FMVSS No. 119 (49 CFR 571.119, S5.1(b)). Manufactured homes 
    which are labeled (24 CFR 3282.7(r)) on or after November 16, 1998 
    shall comply with this section. Manufactured homes transported on tires 
    overloaded by 9 percent or more must not be operated at speeds 
    exceeding 80 km/hr (50 mph). This provision will expire November 20, 
    2000 unless extended by mutual consent of the FHWA and the Department 
    of Housing and Urban Development after review of appropriate tests or 
    other data submitted by the industry or other interested parties.
        (h) Tire inflation pressure. (1) No motor vehicle shall be operated 
    on a tire which has a cold inflation pressure less than that specified 
    for the load being carried.
        (2) If the inflation pressure of the tire has been increased by 
    heat because of the recent operation of the vehicle, the cold inflation 
    pressure shall be estimated by subtracting the inflation buildup factor 
    shown in Table 1 from the measured inflation pressure.
    
    [[Page 8340]]
    
    
    
                              Table 1.--Inflation Pressure Measurement Correction for Heat                          
    ----------------------------------------------------------------------------------------------------------------
                                                             Minimum inflation pressure buildup                     
     Average speed of vehicle  in the ------------------------------------------------------------------------------
              previous hour            Tires with 1,814 kg (4,000 lbs.) maximum load     Tires with over 1,814 kg   
                                                       rating or less                    (4,000 lbs.) load rating   
    ----------------------------------------------------------------------------------------------------------------
    66-88.5 km/hr (41-55 mph)........  34.5 kPa (5 psi).............................  103.4 kPa (15 psi).           
    ----------------------------------------------------------------------------------------------------------------
    
        Issued on: February 11, 1998.
    Kenneth R. Wykle,
    Federal Highway Administrator.
    
    Nicolas P. Retsinas,
    Assistant Secretary for Housing-Federal Housing Commissioner.
    [FR Doc. 98-4038 Filed 2-17-98; 8:45 am]
    BILLING CODE 4910-22-P
    
    
    

Document Information

Effective Date:
11/16/1998
Published:
02/18/1998
Department:
Housing and Urban Development Department
Entry Type:
Rule
Action:
Final rule and HUD interpretative bulletin.
Document Number:
98-4038
Dates:
The effective date for this rule is November 16, 1998.
Pages:
8330-8340 (11 pages)
Docket Numbers:
FHWA Docket No. MC-95-1, FHWA-97-2341, Docket No. FR-3943-F-02
PDF File:
98-4038.pdf
CFR: (2)
49 CFR 393.5
49 CFR 393.75