Temporary Exemption From Motor Vehicle Safety and Bumper Standards

Heidi Renate King
National Highway Traffic Safety Administration
26 December 2018

[Federal Register Volume 83, Number 246 (Wednesday, December 26, 2018)]
[Rules and Regulations]
[Pages 66158-66160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27795]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 555

[Docket No. NHTSA-2018-0103]
RIN 2127-AL97


Temporary Exemption From Motor Vehicle Safety and Bumper 
Standards

AGENCY: National Highway Traffic Safety Administration (NHTSA), 
Department of Transportation (DOT).

ACTION: Final rule.

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SUMMARY: This document amends NHTSA's regulation on temporary exemption 
from the Federal motor vehicle safety standards (FMVSS) and bumper 
standards to expedite the publishing of notices soliciting public 
comment on exemption petitions. It does so by eliminating the provision 
calling for the Agency to determine that a petition is complete before 
the Agency publishes a notice summarizing the petition and soliciting 
public comments on it. As amended, the regulation continues to provide 
that the Agency will, as it does now, determine whether a petition 
contains adequate justification in deciding whether to grant or deny 
the petition. The intended effect of these changes is to enable the 
Agency to solicit public comments more quickly.

DATES: This final rule is effective on January 25, 2019.
    Petitions for reconsideration of this final rule must be received 
not later than February 11, 2019.

ADDRESSES: Petitions for reconsideration of this final rule must refer 
to the docket and notice number set forth above and be submitted to the 
Administrator, National Highway Traffic Safety Administration, 1200 New 
Jersey Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: For questions concerning this final 
rule, contact Stephen Wood, NCC-200, Assistant Chief Counsel for 
Vehicle Rulemaking and Harmonization, National Highway Traffic Safety 
Administration, 1200 New Jersey Avenue SE, Washington, DC 20590; 
telephone (202) 366-5240; email Steve.Wood@dot.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    The National Traffic and Motor Vehicle Safety Act, as amended, 
authorizes the Secretary of Transportation to exempt, on a temporary 
basis, under specified circumstances, and on terms the Secretary deems 
appropriate, motor vehicles from a FMVSS or bumper standard. This 
authority is set forth at 49 U.S.C. 30113. The Secretary has delegated 
the authority for implementing this section to NHTSA.\1\
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    \1\ 49 CFR 1.94.
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    The exercise of NHTSA's authority to grant, in whole or in part, a 
temporary exemption to a vehicle manufacturer is conditioned upon the 
Agency's making specified findings. The Agency must comprehensively 
evaluate the request for exemption and find that the exemption is 
consistent with the public interest and with the objectives of the 
Vehicle Safety Act.\2\ In addition, the Agency must make one of the 
following more focused findings:
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    \2\ 49 U.S.C. 30113(b)(3)(A).

    (i) compliance with the standard[s] [from which exemption is 
sought] would cause substantial economic hardship to a manufacturer 
that has tried to comply with the standard[s] in good faith;
    (ii) the exemption would make easier the development or field 
evaluation of a new motor vehicle safety feature providing a safety 
level at least equal to the safety level of the standard;
    (iii) the exemption would make the development or field 
evaluation of a low-emission motor vehicle easier and would not 
unreasonably lower the safety level of that vehicle; or
    (iv) compliance with the standard would prevent the manufacturer 
from selling a motor vehicle with an overall safety level at least 
equal to the overall safety level of nonexempt vehicles.\3\
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    \3\ 49 U.S.C. 30113(b)(3)(B).

    To provide procedures for implementing these statutory provisions 
concerning temporary exemptions, NHTSA established 49 CFR part 555, 
Temporary Exemption from Motor Vehicle Safety and Bumper Standards. The 
requirements in 49 CFR 555.5 state that a petitioner must set forth the 
basis of its petition by providing the information required under 49 
CFR 555.6, and explaining why the exemption would be in the public 
interest and consistent with the objectives of the Safety Act. In 
addition, the petitioner must submit data and analysis supporting the 
making of one of the four findings specified above.
    Section 555.7 describes the steps that NHTSA is to take after it 
receives an exemption petition. If the Agency determines that a 
petition is complete, it publishes a notice in the Federal Register 
summarizing the petition and inviting public comment on whether it 
should be granted or denied.\4\ However, if NHTSA finds that a petition 
does not

[[Page 66159]]

contain some of types of the information required by part 555, it so 
informs the applicant, pointing out the areas of insufficiency and 
stating that the petition will not receive further consideration until 
the required information is submitted.\5\ If the petitioner submits 
sufficient additional information and analysis to eliminate the ``areas 
of insufficiency,'' the Agency publishes the notice requesting public 
comment.
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    \4\ 49 CFR 555.7(a).
    \5\ Ibid.
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    If, after considering the petition and the public comments, NHTSA 
determines that the petition does not contain ``adequate 
justification,'' the Administrator denies it and notifies the 
petitioner in writing.\6\ The Administrator also publishes in the 
Federal Register a notice of the denial and the reasons for it. 
Alternatively, if the Administrator determines that the petition 
contains adequate justification, the Administrator grants it, and 
notifies the petitioner in writing.\7\ The Administrator also publishes 
in the Federal Register a notice of the grant and the reasons for 
it.\8\
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    \6\ 49 CFR 555.7(d).
    \7\ 49 CFR 555.7(e).
    \8\ Ibid.
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II. Discussion of the Final Rule

    This document amends NHTSA's regulation on temporary exemption from 
Federal motor vehicle safety standards (FMVSS) and bumper standards to 
expedite the publishing of notices soliciting public comment on 
exemption petitions. It does so by eliminating the provision calling 
for the Agency to determine that a petition is complete before 
publishing a notice soliciting public comments on the petition. 
Especially in the context of complex petitions, the difficulty in 
neatly separating ``areas of insufficiency'' from failures to provide 
``adequate justification'' leads to delays in processing petitions. 
Further, while areas of insufficiency would be considered in deciding 
whether to grant or deny petitions, the Vehicle Safety Act does not 
require that determinations of insufficiency be made by the Agency 
before publishing notices of receipt. As amended, the regulation 
continues to provide that the Agency will, as it does now, determine 
whether a petition contains adequate justification in deciding whether 
to grant or deny the petition.

III. Rulemaking Requirements

A. Executive Order 12866 (Regulatory Planning and Review)

    This rulemaking has been determined to be not significant for 
purposes of Executive Order 12866.

B. Executive Order 13771 (Reducing Regulation and Controlling 
Regulatory Costs)

    Executive Order 13771 titled ``Reducing Regulation and Controlling 
Regulatory Costs,'' directs that, unless prohibited by law, whenever an 
executive department or agency publicly proposes for notice and comment 
or otherwise promulgates a new regulation, it shall identify at least 
two existing regulations to be repealed. In addition, any new 
incremental costs associated with new regulations shall, to the extent 
permitted by law, be offset by the elimination of existing costs. Only 
those rules deemed significant under section 3(f) of Executive Order 
12866, ``Regulatory Planning and Review,'' are subject to these 
requirements.
    This rule is not an Executive Order 13771 regulatory action because 
this rule is not significant under Executive Order 12866.

C. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), 
whenever an agency is required by 5 U.S.C. 553 (or any other law) to 
publish a notice of proposed rulemaking (NPRM), the agency must prepare 
and make available for public comment an Initial Regulatory Flexibility 
Analysis, unless the agency certifies under 5 U.S.C. 605(b) that the 
proposed rule, if implemented, will not have a significant economic 
impact on a substantial number of small entities. 5 U.S.C. 603, 605.
    As noted above, NHTSA is not required to publish an NPRM in this 
rulemaking. Further, the change made by this final rule will not have 
not result in a significant economic impact on a substantial number of 
small entities.

D. Executive Order 13132 (Federalism)

    NHTSA has analyzed this immediately adopted final rule under the 
principles and criteria of Executive Order 13132, ``Federalism.'' The 
Agency determined that this action will not have a substantial direct 
effect on the States, or the relationship between the Federal 
Government and the States, or on the distribution of power and 
responsibilities among the various levels of government, and, 
therefore, does not have Federalism implications.

E. Congressional Review Act

    This rule is not a ``rule'' as defined in 5 U.S.C. 804(3), because 
it falls within the exclusion of ``any rule of agency organization, 
procedure, or practice that does not substantially affect the rights or 
obligations of non-agency parties.''

F. Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in an expenditure of $100 million or more 
(in 1995 dollars) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $155 million in lieu of $100 
million.
    This final rule does not contain such a mandate; therefore, the 
requirements of Title II of the Act do not apply.

G. National Technology Transfer and Advancement Act

    The requirements of section 12(d) of the National Technology 
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) are not 
applicable because this rulemaking does not contain provisions 
involving the use of technical standards.
Good Cause for Immediate Adoption
    Section 553(b)(3)(A) of the Administrative Procedure Act (APA) (5 
U.S.C.) authorizes agencies to dispense with notice and comment 
procedures for rules of agency organization, procedure, or practice, 
except when notice or hearing is required by statute. Under this 
section, an agency may issue a final rule without seeking comment prior 
to the rulemaking.
    Additionally, section 553(b)(3)(B) of the APA authorizes agencies 
to dispense with notice and comment procedures for rules when the 
agency for ``good cause'' finds that those procedures are 
``impracticable, unnecessary, or contrary to the public interest.'' 
Under this section, an agency, upon finding good cause, may issue a 
final rule without seeking comment prior to the rulemaking.
    NHTSA finds that notice and public comment to this immediately 
adopted final rule are unnecessary because this rule meets the 
exception of section 553(b)(3)(A). The sole purpose of this rule is to 
eliminate the provision calling for the Agency to determine that a 
petition is complete before the Agency publishes a notice summarizing 
the petition and soliciting public comments

[[Page 66160]]

on it. This rule does not impose any additional requirements on 
exemption applicants or the public. Therefore, NHTSA has determined 
that notice and public comment are unnecessary.
    In consideration of the foregoing, NHTSA amends 49 CFR chapter V as 
follows:

List of Subjects in 49 CFR Part 555

    Motor vehicle safety, Motor vehicles.

PART 555--TEMPORARY EXEMPTION FROM MOTOR VEHICLE SAFETY AND BUMPER 
STANDARDS

0
1. The authority citation for part 555 continues to read as follows:

    Authority: 49 U.S.C. 30113, 32502, Pub. L. 105-277; delegation 
of authority at 49 CFR 1.50.

0
2. Paragraph (a) of Sec.  555.7 is revised to read as follows:


Sec.  555.7  Processing of applications.

    (a) The agency publishes a notice of the application in the Federal 
Register, affording opportunity for comment.
* * * * *

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.95 and 501.5.
Heidi Renate King,
Deputy Administrator.
[FR Doc. 2018-27795 Filed 12-21-18; 8:45 am]
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