[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]



[[Page 8329]]

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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  

[[Page 8330]]



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.

-----------------------------------------------------------------------

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

[[Page 8331]]

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,

[[Page 8332]]

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.

[[Page 8333]]

    [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.

[[Page 8334]]

    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