Defect and Noncompliance Notification |
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Topics: Hitachi
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Mark R. Rosekind
National Highway Traffic Safety Administration
September 14, 2015
[Federal Register Volume 80, Number 177 (Monday, September 14, 2015)]
[Rules and Regulations]
[Pages 55035-55037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-22922]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
49 CFR Part 577
[Docket No. NHTSA-2015-0048]
RIN 2127-AL60
Defect and Noncompliance Notification
AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Final rule.
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SUMMARY: This final rule amends NHTSA's regulation requiring motor
vehicle manufacturers and replacement equipment manufacturers to notify
owners and purchasers of a defect or noncompliance in vehicles or
equipment that they produced. The amendments in this final rule will
clarify that a manufacturer of replacement equipment providing a defect
or noncompliance notification pursuant to this regulation can inform
the purchaser of the replacement equipment of the manufacturer's intent
to remedy the defect or noncompliance by refunding the purchase price
of the replacement equipment. NHTSA is amending this regulation so that
the regulation conforms to changes in the defect and noncompliance
remedy provisions in the National Traffic and Motor Vehicle Safety Act
(Safety Act) contained in the Moving Ahead for Progress in the 21st
Century Act (MAP-21).
DATES: Effective date: This final rule is effective November 13, 2015.
Petitions for reconsideration: Petitions for reconsideration of
this final rule must be received not later than October 29, 2015.
ADDRESSES: Any petitions for reconsideration should refer to the docket
number of this document and be submitted to: Administrator, National
Highway Traffic Safety Administration, 1200 New Jersey Avenue SE., West
Building, Ground Floor, Docket Room W12-140, Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT: Thomas Healy, Office of Chief Counsel,
NHTSA, 1200 New Jersey Avenue SE., Washington, DC 20590. Mr. Healy's
telephone number is (202) 366-2992. His fax number is (202) 493-3820.
[[Page 55036]]
SUPPLEMENTARY INFORMATION:
I. Background
The Safety Act requires manufacturers of motor vehicles or items of
replacement equipment to notify NHTSA and owners and purchasers of the
vehicles or equipment if the manufacturer determines that a motor
vehicle or item of motor vehicle equipment contains a defect related to
motor vehicle safety or does not comply with an applicable motor
vehicle safety standard and to remedy the defect or noncompliance
without charge. 49 U.S.C. 30118(c), 30120. Manufacturers must provide
notification pursuant to the procedures set forth in section 30119 of
the Safety Act. Section 30119 sets forth the contents of the
notification, which includes a clear description of the defect or
noncompliance, the timing of the notification, means of providing
notification and when a second notification is required. 49 U.S.C.
30119.
Section 30120 of the Safety Act provides a list of permissible
remedies from which manufacturers must choose when determining how to
remedy at defect. Section 30120 contains different remedy provisions
for manufacturers of motor vehicles and manufacturers of replacement
equipment. Section 30120 allows manufacturers of motor vehicles to
remedy a defect or noncompliance ``by repairing the vehicle; . . . by
replacing the vehicle with an identical or reasonably equivalent
vehicle; or . . . by refunding the purchase price, less a reasonable
allowance for depreciation.'' 49 U.S.C. 30120(a)(1)(A). Prior to MAP-
21, Section 30120 allowed manufacturers of replacement equipment to
remedy a defect or noncompliance by ``repairing the equipment or
replacing the equipment with identical or reasonable equivalent
equipment.'' 49 U.S.C. 30120(a)(1)(B) (2011). MAP-21 amended section
30120 by expanding the list of permissible remedies available to
replacement equipment manufacturers to include refunding the purchase
price of the equipment.\1\
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\1\ Public Law 112-141, 126 Stat. 771 (2012), Section 31311.
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The conduct of a recall notification campaign, including how and
when owners, dealers, and distributors are notified, is addressed by
regulation in 49 CFR part 577, Defect and Noncompliance Notification.
Section 577.5 specifies the required content and structure of the owner
notifications. Section 577.6 specifies the required content and
structure of the notification if the owner notification is sent
pursuant to an order by the NHTSA Administrator. Section 577.5 and
577.6 both specify that that the owner notification must include a
statement notifying the owner of the vehicle or replacement equipment
how the manufacturer intends to remedy the defect or noncompliance.
This final rule amends Sec. Sec. 577.5 and 577.6 of 49 CFR part
577 so that the requirements for the statement notifying owners or
purchasers of replacement equipment how the manufacturer intends to
remedy a defect or noncompliance reflect the MAP-21 amendment allowing
manufacturers of replacement equipment to remedy a defect or
noncompliance by refunding the purchase price.
II. Public Comment
NHTSA did not issue an NPRM prior to this final rule. While the
Administrative Procedure Act (APA) requires that agencies publish a
general NPRM in the Federal Register prior to issuing a final rule, an
agency is not required to publish an NPRM if the agency is able to make
and makes a good cause finding that notice and public comment is
``impracticable, unnecessary, or contrary to the public interest.'' \2\
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\2\ 5 U.S.C. 553.
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NHTSA finds that notice and public comment prior to issuing this
final rule is unnecessary. The DC Circuit has held that the notice and
public comment requirements of APA are unnecessary when the ``rule is a
routine determination, insignificant in nature and impact, and
inconsequential to the industry and to the public.'' \3\ The amendments
in this final rule do not create any new rights or obligations not
already present in 49 U.S.C. 30120. The amendments in this final rule
update the notification requirements in 49 CFR 577.5 and 577.6 to
reflect that the option to refund the purchase price of the replacement
equipment is available to manufacturers as a remedy for a defect or
noncompliance. Furthermore, these changes were made by statutory
amendment. Therefore, the amendments contained in this final rule do
not involve the exercise of discretion on the part of the agency.
Because this final rule does not create any rights or obligations not
already present in 49 U.S.C. 30120 or involve the exercise of
discretion by the agency, the impacts of this rule are insignificant
and inconsequential to industry and the public making notice and public
comment unnecessary.
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\3\ Mack Trucks, Inc. v. E.P.A. 682 F.3d 87, 92 (D.C. Cir. 2012)
(quoting Util. Solid Waste Activities Grp. v. E.P.A., 236 F.3d 749,
754 (D.C. Cir. 2001).
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III. Regulatory Notices and Analyses
A. Executive Order 12866, Executive Order 13563, and DOT Regulatory
Policies and Procedures
NHTSA has considered the impact of this rulemaking action under
Executive Order 12866, Executive Order 13563, and the DOT's regulatory
policies and procedures. This final rule was not reviewed by the Office
of Management and Budget (OMB) under E.O. 12866, ``Regulatory Planning
and Review.'' It is not considered to be significant under E.O. 12866
or the Department's regulatory policies and procedures.
This regulation amends 49 CFR part 577 to include refund of the
purchase price of replacement equipment as a remedy available to
replacement equipment manufacturers remedying a defect or
noncompliance. This final rule does not require replacement equipment
manufacturers to take any actions that they are not otherwise already
required to take. Because there are not any costs or savings associated
with this rulemaking, we have not prepared a separate economic analysis
for this rulemaking.
B. Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act, 5 U.S.C. 601 et
seq., NHTSA has evaluated the effects of this action on small entities.
I hereby certify that this rule would not have a significant impact on
a substantial number of small entities. The final rule affects
manufacturers of motor vehicle replacement equipment some of which
qualify as small businesses. However, this final rule does not
significantly affect these entities because it does not require any
additional actions on the part of equipment manufacturers not already
required by 49 CFR part 577.
C. Executive Order 13132
NHTSA has examined this rule pursuant to Executive Order 13132 (64
FR 43255, August 10, 1999) and concluded that no additional
consultation with States, local governments or their representatives is
mandated beyond the rulemaking process. The agency has concluded that
the rulemaking would not have sufficient federalism implications to
warrant consultation with State and local officials or the preparation
of a federalism summary impact statement. The final rule would not have
``substantial direct effects on the States, on the relationship between
the national government and the States, or on the
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distribution of power and responsibilities among the various levels of
government.'' This final rule also will not preempt any state law.
D. National Environmental Policy Act
NHTSA has analyzed this final rule for the purposes of the National
Environmental Policy Act. The agency has determined that implementation
of this action will not have any significant impact on the quality of
the human environment.
E. Paperwork Reduction Act
Under the procedures established by the Paperwork Reduction Act of
1995, a person is not required to respond to a collection of
information by a Federal agency unless the collection displays a valid
OMB control number. The information collection requirements for 49 CFR
part 577, Defect and Noncompliance Notification, are covered by OMB
control number 2127-0004. The amendments in this final rule have no
impact on the burden associated with this information collection.
F. National Technology Transfer and Advancement Act
Under the National Technology Transfer and Advancement Act of 1995
(NTTAA) (Pub. L. 104-113), ``all Federal agencies and departments shall
use technical standards that are developed or adopted by voluntary
consensus standards bodies, using such technical standards as a means
to carry out policy objectives or activities determined by the agencies
and departments.'' The amendments in this final rule consist of minor
revisions to the required content of letters that manufacturers of
replacement equipment for motor vehicles must sent to purchasers and
owners to notify them of a defect or noncompliance and do not involve
any voluntary consensus standards.
G. Civil Justice Reform
With respect to the review of the promulgation of a new regulation,
section 3(b) of Executive Order 12988, ``Civil Justice Reform'' (61 FR
4729, February 7, 1996) requires that Executive agencies make every
reasonable effort to ensure that the regulation: (1) Clearly specifies
the preemptive effect; (2) clearly specifies the effect on existing
Federal law or regulation; (3) provides a clear legal standard for
affected conduct, while promoting simplification and burden reduction;
(4) clearly specifies the retroactive effect, if any; (5) adequately
defines key terms; and (6) addresses other important issues affecting
clarity and general draftsmanship under any guidelines issued by the
Attorney General. This document is consistent with that requirement.
Pursuant to this Order, NHTSA notes as follows. The preemptive
effect of this final rule is discussed above. NHTSA notes further that
there is no requirement that individuals submit a petition for
reconsideration or pursue other administrative proceeding before they
may file suit in court.
H. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 requires agencies to
prepare a written assessment of the costs, benefits and other effects
of proposed or final rules that include a Federal mandate likely to
result in the expenditure by State, local or tribal governments, in the
aggregate, or by the private sector, of more than $100 million annually
(adjusted for inflation with base year of 1995). This final rule would
not result in expenditures by State, local or tribal governments, in
the aggregate, or by the private sector in excess of $100 million
annually.
I. Executive Order 13211
Executive Order 13211 (66 FR 28355, May 18, 2001) applies to any
rulemaking that: (1) Is determined to be economically significant as
defined under E.O. 12866, and is likely to have a significantly adverse
effect on the supply of, distribution of, or use of energy; or (2) that
is designated by the Administrator of the Office of Information and
Regulatory Affairs as a significant energy action. This rulemaking is
not subject to E.O. 13211.
J. Regulation Identifier Number (RIN)
The Department of Transportation assigns a regulation identifier
number (RIN) 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. You may
use the RIN contained in the heading at the beginning of this document
to find this action in the Unified Agenda.
List of Subjects in 49 CFR Part 577
Imports, Motor vehicle safety, Motor vehicles, Tires, Reporting and
recordkeeping requirements.
In consideration of the foregoing, NHTSA amends 49 CFR part 577 as
follows:
PART 577--DEFECT AND NONCOMPLIANCE NOTIFICATION
0
1. The authority citation for part 577 continues to read as follows:
Authority: 49 U.S.C. 30102, 30103, 30116-30121, 30166;
delegation of authority at 49 CFR 1.95 and 49 CFR 501.8.
0
2. Section 577.5 is amended by revising paragraphs (g)(1)(i) and (vi)
to read as follows:
Sec. 577.5 Notification pursuant to a manufacturer's decision.
* * * * *
(g) * * *
(1) * * *
(i) A statement that he will cause such defect to be remedied
without charge, and whether such remedy will be by repair, replacement,
or refund of the purchase price (in the case of remedy of a vehicle,
less depreciation).
* * * * *
(vi) In the case of a remedy of a vehicle by refund of purchase
price, the method or basis for the manufacturer's assessment of
depreciation.
* * * * *
0
3. Section 577.6 is amended by revising paragraph (b)(9)(i)(B) to read
as follows:
Sec. 577.6 Notification pursuant to Administrator's decision.
* * * * *
(b) * * *
(9) * * *
(i) * * *
(B) A statement of the method of remedy. If the manufacturer has
not yet determined the method of remedy, he will select either repair,
replacement with an equivalent vehicle or item of replacement
equipment, or refund of the purchase price (in the case of remedy of a
vehicle, less depreciation); and
* * * * *
Issued in Washington, DC, on September 2, 2015 under authority
delegated in 49 CFR part 1.95.
Mark R. Rosekind,
Administrator.
[FR Doc. 2015-22922 Filed 9-11-15; 8:45 am]
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