[Federal Register Volume 61, Number 177 (Wednesday, September 11, 1996)]
[Rules and Regulations]
[Pages 47825-47826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-22949]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 575

[Docket No. 96-88; Notice 1]
RIN 2127-AG54


Consumer Information Regulations; Fees for Course Monitoring 
Tires

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

ACTION: Final rule.

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SUMMARY: This rule amends NHTSA's consumer information regulations on 
uniform tire quality grading by reducing the fee for the purchase of 
treadwear course monitoring tires that are sold by the agency at its 
Uniform Tire Quality Grading Test Facility in San Angelo, Texas. The 
purchase fee has been reduced to eliminate charges for testing the 
tires to establish their base course wear rate. This testing will no 
longer be performed by NHTSA in view of the agency's decision to fix 
the base course wear rate at its current value for all course 
monitoring tires that are sold in the future.

DATES: The amendment established by this final rule will become 
effective on October 11, 1996.
    Any petitions for reconsideration must be received by NHTSA not 
later than October 28, 1996.

ADDRESSES: Any petitions for reconsideration should refer to the docket 
and notice numbers above and be submitted to: Docket Section, National 
Highway Traffic Safety Administration, 400 Seventh Street, S.W., 
Washington, D.C. 20590. Docket hours are 9:30 a.m. to 4 p.m., Monday 
through Friday.

FOR FURTHER INFORMATION CONTACT: Mr. Clive Van Orden, Office of Vehicle 
Safety Compliance, National Highway Traffic Safety Administration, 400 
Seventh Street, S.W., Washington, D.C. 20590, (202-366-2830).

SUPPLEMENTARY INFORMATION: In a final rule published on August 2, 1995 
at 60 FR 39269, NHTSA established fees for the purchase of treadwear 
course monitoring tires and for the use of the traction skid pads at 
the agency's Uniform Tire Quality Grading Test Facility in San Angelo, 
Texas. The rule noted that under uniform tire quality grading (UTQG) 
standards at 49 CFR 575.104, tires must be labeled with information 
indicating their relative performance in the areas of treadwear, 
traction, and temperature resistance. For the purpose of evaluating 
treadwear performance, NHTSA established a 400 mile roadway course near 
San Angelo, Texas, which is designed to produce treadwear rates that 
are generally representative of those encountered by tires in public 
use. Under the UTQG standards, the projected mileage obtained for 
tested tires must be corrected to account for environmental and other 
variations that occur during testing on the course. This is done by 
comparing the performance of the tested tires to that of course 
monitoring tires run in the same convoy. The course monitoring tires 
are specially manufactured under controlled conditions so that they can 
be used as a grading standard, and are made available by NHTSA for 
purchase at the San Angelo test facility.
    The rule further noted that an audit conducted by the Department of 
Transportation's Office of Inspector General (OIG) concluded that NHTSA 
was not recovering the full cost of the course monitoring tires that it 
sells at San Angelo, contrary to the

[[Page 47826]]

requirements of Office of Management and Budget (OMB) Circular A-25, 
which establishes Federal policy regarding fees assessed for Government 
services and for the sale or use of Government goods or resources. To 
address these deficiencies, the rule established $379.00 as the fee for 
each course monitoring tire that NHTSA sells at San Angelo. This amount 
was the minimum necessary for NHTSA to recover the direct and indirect 
costs that it incurs in furnishing these tires. It was derived by 
performing the following calculation for the 700 course monitoring 
tires that are purchased annually by NHTSA:

Purchase price of course monitoring tires....................   $175,000
General facility costs relating to tires.....................      3,400
Warehouse storage fees.......................................     24,000
Salaries relating to tires...................................     29,825
Testing fees to establish base course wear rate for tires....     32,800
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      Total..................................................   $265,025
                                                                        

    Number of tires purchased annually=700
    $265,025700=$378.61 cost per tire.

    Through a final rule published elsewhere in this issue of the 
Federal Register, NHTSA has amended the UTQG Standards to revise 
treadwear test procedures so that the base course wear rate of course 
monitoring tires is fixed at its current value of 1.34 mils per 
thousand miles. As a result of this amendment, NHTSA will no longer 
perform testing to establish a base course wear rate for newly procured 
batches of course monitoring tires.
    So that the government recovers no more than the costs that it 
actually incurs in providing these tires, testing expenses are being 
eliminated from the formula used to calculate the tires' purchase 
price. As shown in the above calculation, testing expenses to establish 
a base course wear rate amount to $32,800 for the 700 tires that are 
purchased annually by NHTSA. By eliminating these expenses, the price 
that is charged for each tire may be reduced by $47.00 
($32,800700=$46.85). NHTSA is adding one dollar to the purchase 
price of each tire to cover shipping expenses it incurs for the 
delivery of these tires to the San Angelo test facility. These expenses 
amount to $880.00 for each lot of 700 tires that the agency receives 
($880.00700=$1.26). With these adjustments, the purchase price 
for each course monitoring tire that NHTSA sells at San Angelo has now 
been set at $333.00 ($379.00-$47.00+$1.00=$333.00).

Rulemaking Analyses and Notices

1. Executive Order 12866 (Federal Regulatory Planning and Review) and 
DOT Regulatory Policies and Procedures

    This rulemaking action was not reviewed under E.O. 12866. NHTSA has 
analyzed this rulemaking action and determined that it is not 
``significant'' within the meaning of the Department of 
Transportation's regulatory policies and procedures.

2. Regulatory Flexibility Act

    In accordance with the Regulatory Flexibility Act, NHTSA has 
evaluated the effects of this action on small entities. Based upon this 
evaluation, I certify that the amendment resulting from this rulemaking 
will not have a significant economic impact on a substantial number of 
small entities. Accordingly, the agency has not prepared a regulatory 
flexibility analysis.
    The agency believes that motor vehicle and tire manufacturers and 
tire brand owners typically do not qualify as small entities. This 
amendment may affect small businesses, small organizations, and small 
governmental units to the extent that these entities purchase vehicles 
and tires.
    However, because this amendment is reducing the fee that NHTSA 
charges for course monitoring tires, it can only have a beneficial 
effect on these entities.

3. Executive Order 12612 (Federalism)

    This action has been analyzed in accordance with the principles and 
criteria contained in Executive Order 12612, and it has been determined 
that this rule does not have sufficient Federalism implications to 
warrant preparation of a Federalism Assessment. No State laws will be 
affected.

4. National Environmental Policy Act

    The agency has considered the environmental implications of this 
rule in accordance with the National Environmental Policy Act of 1969 
and determined that it will not significantly affect the human 
environment.

5. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980, P.L. 96-
511, the agency notes that there are no information collection 
requirements associated with this rulemaking action.

6. Civil Justice Reform

    This rule does not have any retroactive effect. Under section 
103(d) of the National Traffic and Motor Vehicle Safety Act (49 U.S.C. 
30111), whenever a Federal motor vehicle safety standard is in effect, 
a state may not adopt or maintain a safety standard applicable to the 
same aspect of performance which is not identical to the Federal 
standard. Section 105 of the Act (49 U.S.C. 30161) sets forth a 
procedure for judicial review of final rules establishing, amending or 
revoking Federal motor vehicle safety standards. That section does not 
require submission of a petition for reconsideration or other 
administrative proceedings before parties may file suit in court.

7. Notice and Comment

    NHTSA finds that prior notice and opportunity for comment are 
unnecessary under 5 U.S.C. 553(b)(3)(B) because affected members of the 
public can only benefit from the fee reduction that is accomplished by 
this amendment.

List of Subjects in 49 CFR Part 575

    Consumer protection, Labeling, Motor vehicle safety, Motor 
vehicles, Rubber and rubber products, Tires.

    In consideration of the foregoing, Sec. 575.104, Uniform tire 
quality grading standards, in Title 49 of the Code of Federal 
Regulations at Part 575, is amended as follows:

PART 575--[AMENDED]

    1. The authority citation for Part 575 will continue to read as 
follows:

    Authority: 49 U.S.C. 322, 30111, and 30123; delegation of 
authority at 49 CFR 1.50

    2. Appendix D to Sec. 575.104 is amended by revising paragraph 1 to 
read as follows:


Sec. 575.104  Uniform tire quality grading standards.

* * * * *

Appendix D--User Fees

    1. Course Monitoring Tires: A fee of $333.00 will be assessed for 
each course monitoring tire purchased from NHTSA at Goodfellow Air 
Force Base, San Angelo, Texas. This fee is based upon the direct and 
indirect costs attributable to: (a) the purchase of course monitoring 
tires by NHTSA, (b) a pro rata allocation of salaries and general 
facility costs associated with maintenance of the tires, and (c) 
warehouse storage fees for the tires.
* * * * *
    Issued on: August 6, 1996.
Ricardo Martinez,
Administrator.
[FR Doc. 96-22949 Filed 9-10-96; 8:45 am]
BILLING CODE 4910-59-P