[Federal Register Volume 61, Number 24 (Monday, February 5, 1996)]
[Proposed Rules]
[Pages 4249-4252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2330]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Parts 525, 541, 555, 571, and 581
[Docket No. 95-95, Notice 1]
Exemptions From Average Fuel Economy Standards; Federal Motor
Vehicle Theft Prevention Standard; Federal Motor Vehicle Safety
Standards; Bumper Standard
AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.
ACTION: Notice of public meeting; request for comments.
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SUMMARY: This notice announces a public meeting at which NHTSA will
seek information from small volume manufacturers and the public on
regulatory problems of such manufacturers. Previously, NHTSA announced
that it is interested in developing a legislative package tailored to
reduce the burden of its requirements
[[Page 4250]]
on small businesses and manufacturers. NHTSA is requesting suggestions
for actions with respect to NHTSA's Corporate Average Fuel Economy
(CAFE) regulations, Theft Prevention Standard, Federal Motor Vehicle
Safety Standards, and Bumper Standard, that govern the compliance and
exemption of such vehicles. This notice also invites written comments
on the same subjects.
DATES: The public meeting will be held on Wednesday, March 13, 1996, at
9:00 a.m. An agenda for the meeting will be made based on the number of
persons wishing to make oral presentations and will be available on the
day of the meeting. Those wishing to make oral presentations at the
meeting should contact Taylor Vinson, at the address or telephone
number listed below, by the close of business Monday, February 26,
1996. Written comments may be submitted at any time before or after the
meeting, but not later than April 4, 1996.
ADDRESSES: Public meeting: The public meeting will be held in Rooms
6244-6248, Nassif Building (DOT headquarters), 400 Seventh Street, SW,
Washington, DC.
Written comments: Written comments should be sent to the Docket
Section, National Highway Traffic Safety Administration, Room 5109, 400
7th Street, SW., Washington, DC 20590, ATTN: Docket No. 95-95; Notice
1.
FOR FURTHER INFORMATION CONTACT: Taylor Vinson, Office of Chief
Counsel, NHTSA, 400 7th Street, SW, Washington, DC 20590 (telephone
202-366-5263).
SUPPLEMENTARY INFORMATION:
Regulatory Reform
Calling for a new approach to the way Government regulates the
private sector, President Clinton has asked Executive Branch agencies
to improve the regulatory process. Specifically, the President
requested that agencies (1) cut obsolete regulations; (2) create
grassroots partnerships by meeting with those affected by regulations
and other interested parties; and (3) make more frequent use of
consensual rulemaking such as regulatory negotiation.
This is the second of NHTSA's announced meetings to create
grassroots partnerships with regulated industries that do not deal with
NHTSA on a daily basis. By meeting with these groups, NHTSA believes
that it can derive a better understanding of their needs and concerns.
Other groups that the agency plans to meet with are manufacturers of
school buses, heavy trucks, child seats, and lamps and reflectors. The
agency met on December 12, 1995, with manufacturers of multistage
vehicles.
As part of its contribution towards regulatory reform to reduce
unnecessary regulatory burdens, NHTSA has announced that it plans to
develop a legislative package tailored to reduce the burden of its
requirements on small manufacturers. Such a package could include
longer leadtimes for small manufacturers and greater flexibility in
granting small-manufacturer exemptions. NHTSA recognizes that small
volume manufacturers are faced with somewhat different problems than
manufacturers who produce in larger quantities. Therefore, the agency
has decided to hold a public meeting to receive the comments of this
group and the public on how the regulatory process might be improved
without any diminution of regulatory goals.
Small-Volume Manufacturers
Under the current statutes and regulations administered by NHTSA,
there is no specific definition of ``small-volume manufacturer''.
However, eligibility for application for exemption from average fuel
economy standards and motor vehicle safety standards is statutorily
predicated upon the volume of production. This statutory criterion is
reflected in the agency's regulations. Under 49 CFR Part 525 Exemptions
From Average Fuel Economy Standards, a manufacturer who produces fewer
than 10,000 passenger automobiles may apply for an exemption.
Similarly, under 49 CFR Part 555 Temporary Exemption From Motor Vehicle
Safety Standards, a manufacturer whose total motor vehicle production
(passenger cars and all other types) does not exceed 10,000 may apply
for an exemption on grounds that compliance would cause it substantial
economic hardship. Thus, at present, a manufacturer whose annual motor
vehicle production does not reach 10,000 units can apply for regulatory
relief that is not available to manufacturers whose yearly production
is greater. NHTSA, therefore, considers any manufacturer of motor
vehicles that which fabricates not more than 10,000 units a year to be
a ``small-volume manufacturer'' within the meaning of its outreach
program, regardless of whether it has petitioned for exemption under
Part 525 or Part 555.
Importers of vehicles for resale are statutorily treated as
``manufacturers'' for most purposes and required to comply with
obligations of fabricating manufacturers. Aside from factory-owned
U.S.-based concerns importing certified vehicles, importers of vehicles
for resale generally import vehicles originally intended for sale in a
country other than the United States and thus not manufactured to
conform to Federal requirements. Such importers are treated as
``registered importers'' (RIs) in the agency's authorizing statute and
under 49 CFR Part 592. None imports more than 10,000 units a year. The
agency is well aware of the problems faced by RIs in qualifying
nonconforming vehicles for entry and modifying them after entry.
However, these problems are of a different nature than those faced by
small manufacturers actually involved in fabrication. For this reason,
the agency does not intend to include non-fabricating small-volume
manufacturers in the agenda for this meeting.
The following paragraphs briefly describe the existing statutory
provisions regarding the establishing of standards and the NHTSA
regulations implementing those provisions.
Corporate Average Fuel Economy (CAFE)
The CAFE standards originate in 49 U.S.C. Chapter 329--Automobile
Fuel Economy. This chapter requires passenger automobiles to meet a
CAFE standard of 27.5 miles per gallon for each model year. Under 49
U.S.C. 32902(d)(1), a manufacturer may apply for a CAFE exemption if it
produced less than 10,000 passenger automobiles in the model year 2
years before the model year for which application is made. An exemption
for the model year may be granted if the agency finds that the
applicable CAFE standard is more stringent than the maximum feasible
average fuel economy level that the manufacturer can achieve, and then
prescribes an alternative standard that is based upon the finding.
The exemption provisions of Chapter 329 have been implemented by 49
C.F.R. Part 525 Exemptions From Average Fuel Economy Standards. This
regulation sets out the contents of applications and the application
procedures. Exempted manufacturers and their individual CAFE standards
are listed at 49 C.F.R. 531.5(b).
Theft Prevention Standard
The agency's efforts to reduce the theft of motor vehicles are
governed by 49 U.S.C. Chapter 331--Theft Prevention. Under Sec. 33102,
NHTSA is required to issue a theft prevention standard that applies to
parts of vehicles that have been designated high theft lines. Sec.
33103 requires NHTSA to extend the standard to vehicle lines that have
not been designated high theft. Sec. 33106 allows manufacturers to
apply for exemption for passenger motor vehicles equipped with
antitheft
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devices. However, the right to apply is independent of the quantity of
vehicles produced by the applicant. Sec. 33114 prohibits the
importation of either a motor vehicle or replacement part covered by a
theft standard unless it conforms to the standard. The prohibition is
absolute and does not provide for importing noncomplying vehicles or
parts and subsequently bringing them into compliance with the theft
prevention standard.
Chapter 331 has been implemented in pertinent part by 49 C.F.R.
Part 541 Federal Motor Vehicle Theft Prevention Standard and Part 543
Exemption From Vehicle Theft Prevention Standard. Part 541 requires the
marking of parts in the manner prescribed. Part 543 contains the
procedures for applying for theft prevention standard exemptions.
Vehicles with antitheft devices that are exempted in their entirety
from the standard are listed in Appendix A of Part 541. Some of them
are produced by small-volume manufacturers within the meaning of this
notice.
Federal Motor Vehicle Safety Standards
49 U.S.C. Chapter 301--Motor Vehicle Safety is the authority for
the regulations published under 49 C.F.R. Part 571 Federal Motor
Vehicle Safety Standards. Every motor vehicle must meet all applicable
Federal motor vehicle safety standards by virtue of Sec. 30112(a),
except as provided elsewhere in Sec. 30112, and in Secs. 30113 and
30114. Sec. 30113(d) provides that a manufacturer whose annual motor
vehicle production is 10,000 units or less is eligible to apply for an
exemption under Sec. 30113(b)(3)(B)(i), on the basis that compliance
would cause substantial economic hardship to a manufacturer that has
tried to comply with the standard in good faith.
Some small-volume manufacturers have petitioned for temporary
exemption from the safety standards on grounds other than substantial
economic hardship, principally electric vehicle manufacturers who argue
that an exemption would facilitate the development and field evaluation
of a low-emission vehicle, a basis allowed by Sec. 30113(b)(3)(B)(iii).
Eligibility to apply is not predicated upon limited production volume.
This and the remaining categories of exemptions (innovative safety
devices, equivalent overall level of safety) are available to all
manufacturers regardless of production (though only 2,500 vehicles per
year can be exempted). Nevertheless, the agency intends to include all
four categories of statutory exemption in this review, even though they
affect all manufacturers and not just those whose volume is limited.
Sec. 30113 General exemptions has been implemented by 49 C.F.R.
Part 555 Temporary Exemption From Motor Vehicle Safety Standards. Under
the authority of this regulation, in effect since 1973, over 100
applications have been considered, and the greater part of them
granted.
Sec. 30114 Special exemptions provides NHTSA with the authority to
exempt a motor vehicle or an item of motor vehicle equipment on terms
that the agency decides are necessary ``for research, investigations,
demonstrations, training, or competitive racing events.'' Since its
original enactment in P.L. 100-562, The Imported Vehicle Safety Act of
1988, Sec. 30114 has been implemented solely with respect to the
importation of vehicles and equipment, in 49 C.F.R. Sec. 591.5(j)(i).
However, that statutory provision appears to have other applications as
well, such as permitting manufacturers to operate non-conforming
prototype vehicles on the public roads.
Bumper Standards
Reduction of damage from motor vehicle accidents is the purpose of
49 U.S.C. Chapter 325--Bumper Standards. Sec. 32502 requires NHTSA to
promulgate bumper standards for passenger motor vehicles as defined by
the statute. A limited exemption authority is provided to NHTSA by Sec.
32502(c) to exempt from any part of a standard a multipurpose passenger
vehicle or a make, model, or class of a passenger motor vehicle
manufactured for a special use, if the standard would interfere
unreasonably with the special use of the vehicle. However, this
exemption authority is silent as to the right of a manufacturer to
petition for relief. At the most, a manufacturer could petition only
for relief of a class and not for relief on an individual basis, no
matter what the volume of the manufacturer's production.
The statutory requirement for a standard has been implemented by 49
C.F.R. Part 581--Bumper Standard. The regulation is silent on exemption
procedures.
Comments
The agency believes that it would be helpful to have comments on
the following topics, with respect to the statutory authority and
regulations discussed above--
Expansion or addition of exemption authority.
Administrative/compliance burdens.
Deferred compliance until end of phase-in period for
phased-in regulations.
Cost effectiveness.
Costs to consumers of the existing regulation and the
changes suggested by the commenter.
Costs to regulated parties of testing or certification.
Effects on fuel economy, theft prevention, safety, or
property damage.
Effects on small business.
Enforceability.
Whether the statute or regulation reflects a ``common
sense'' approach to solving the problem.
Written statements should be arranged by the CFR Part numbers
addressed, be as specific as possible and provide the best available
supporting information. Suggestions should be accompanied by a
rationale for the suggested action and a forecast of the expected
consequences of that action. Statements also should specify whether any
change recommended in the regulatory process would require a
legislative change in NHTSA's authority.
Procedural Matters
The agency intends to conduct the meeting informally so as to allow
for maximum participation by all who attend. Interested persons may ask
questions or provide comments during any period after a person has
completed his or her presentation on a time allowed basis, as
determined by the presiding official. If time permits, persons who did
not ask prior to the meeting for an opportunity to speak, but would
like to make a statement, will be afforded an opportunity to do so.
Those speaking at the public meeting should limit their
presentations to 20 minutes. If the presentation will include slides,
motion pictures, or other visual aids, please so inform the contact
person identified above so that the proper equipment may be made
available. Presenters should bring at least one copy of their
presentation to the meeting so that NHTSA can readily include the
material in the public record.
A schedule of participants making oral presentations will be
available in the designated meeting room before the beginning of the
meeting. NHTSA will place a copy of any written statement in Docket No.
95-95; Notice 1. The public may inspect the Docket for comments and
statements which may be received before or after the meeting. A
verbatim transcript of the meeting will be prepared and also placed in
the NHTSA docket as soon as possible after the meeting.
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Participation in the meeting is not a prerequisite for the
submission of written comments. NHTSA invites written comments from all
interested parties. It is requested but not required that 10 copies be
submitted.
If a commenter wishes to submit certain information under a claim
of confidentiality, three copies of the complete submission, including
purportedly confidential business information, should be submitted to
the Chief Counsel, NHTSA, Room 5219, at the street address given above,
and copies from which the purportedly confidential information has been
deleted should be submitted to the Docket Section. A request for
confidentiality should be accompanied by a cover letter setting forth
the information specified in the agency's confidential business
information regulation (49 CFR Part 512.)
All comments received before the close of business on March 21,
1996, will be considered in formulating a decision on the issues
raised. After the closing date, NHTSA will continue to file relevant
comments and information in the docket as it becomes available. It is
therefore recommended that interested persons continue to examine the
docket for new material.
Issued: January 30, 1996.
Barry Felrice,
Associate Administrator for Safety Performance Standards.
[FR Doc. 96-2330 Filed 2-2-96; 8:45 am]
BILLING CODE 4910-59-P
