[Federal Register Volume 64, Number 174 (Thursday, September 9, 1999)]
[Notices]
[Pages 49047-49049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23427]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
[Docket No. NHTSA-99-5683; Notice 2]
Dan Hill & Associates, Inc.; Grant of Application for Renewal of
Temporary Exemption From Federal Motor Vehicle Safety Standard No. 224
For the reasons explained below, we are granting the application by
Dan Hill & Associates, Inc. (``Dan Hill''), of Norman, Oklahoma, for a
renewal of its existing temporary exemption from Motor Vehicle Safety
Standard No. 224, Rear Impact Protection. As it did in applying for the
existing exemption, Dan Hill asserts that compliance would cause
substantial economic hardship and that it has tried in good faith to
comply with the standard.
We published notice of receipt of the application in the Federal
Register on May 19, 1999, and afforded an opportunity for comment 64 FR
27353). No comments were received.
We granted Dan Hill a 1-year temporary exemption from Standard No.
224 on January 26, 1998 (63 FR 3784). The exemption was to expire on
February 1, 1999, but Dan Hill filed a timely application for renewal.
Under 49 CFR 555.8(e), the timely filing of a renewal application had
the effect of automatically extending the exemption until we make a
decision on the application. The company has requested an extension of
this exemption until February 1, 2001.
The information below is based on material from Dan Hill's original
and renewal applications.
[[Page 49048]]
Why Dan Hill Says That it Needs to Renew its Exemption.
Dan Hill manufactures and sells a horizontal discharge trailer
(``Flow Boy'') that is used in the road construction industry to
deliver asphalt and other road building materials to the construction
site. The Flow Boy is designed to connect with and latch onto various
paving machines (``pavers''). The Flow Boy, with its hydraulically
controlled horizontal discharge system, discharges hot mix asphalt at a
controlled rate into a paver which overlays the road surface with
asphalt material.
Standard No. 224 required, effective January 26, 1998, that all
trailers with a GVWR of 4536 Kg or more, including Flow Boy trailers,
be fitted with a rear impact guard that conforms to Standard No. 223,
Rear impact guards. Installation of the rear impact guard will prevent
the Flow Boy from connecting to the paver. Thus, Flow Boy trailers will
no longer be functional and contractors will be forced to use standard
dump body trucks or trailers with their inherent limitations and safety
risks.
Why Dan Hill Says That Compliance Would Cause it Substantial
Economic Hardship and That it has Tried in Good Faith to Comply
With Standard No. 224.
At the time of its application for the existing exemption, Dan Hill
told us that it had manufactured 81 Flow Boy trailers in 1996 (plus 21
other trailers). Its production in the 12-month period preceding its
application for renewal was ``130 units for the domestic market and 35
units for the international market.''
Dan Hill originally asked for a year's exemption in order to
explore the feasibility of a rear impact guard that would allow the
Flow Boy trailer to connect to a conventional paver. It has
concentrated its efforts this past year in investigating the
feasibility of a retractable rear impact guard, which will enable Flow
Boys to continue to connect to pavers.
In the absence of an exemption, Dan Hill originally asserted that
approximately 60 percent of its work force would have to be laid off;
it now argues that failure to extend its exemption would ultimately
cause a lay off of ``approximately 70 percent'' of its work force. If
the exemption were not renewed, Dan Hill's gross sales would decrease
by $8,273,117. Its cumulative net income after taxes for the fiscal
years 1995, 1996, and 1997 was $303,303. It projected a net income of
$356,358 for fiscal year 1998.
At the time of its original application, its studies show that the
placement of the retractable rear impact guard would likely catch
excess asphalt as it was discharged into the pavement hopper. Further,
the increased cost of the Flow Body would likely cause contractors to
choose the cheaper alternative of dump trucks. Finally, the increased
weight of the retractable rear impact guard would significantly
decrease the payload of the Flow Boy.
Dan Hill sent its Product Specialist to Germany in 1994 to view
underride protection guards installed by a German customer on Flow Boy
trailers but the technology proved inapplicable because of differences
between German and American pavers. Manufacturers of paving machines
are not interested in redesigning their equipment to accommodate a Flow
Boy with a rear impact guard. Dan Hill contacted a British manufacturer
of a retractable rear impact guard but the information received by the
time of its initial application did not look encouraging.
During the time that the exemption has been in effect, Dan Hill has
continued its efforts to locate a source for a retractable rear impact
guard, locating one in Europe which ``was in the process of designing a
retractable guard that would meet Standard No. 223 specifications and
attach to the Flow Boy trailer while allowing the Flow Boy to attach to
a paver.'' However, the European retractable rear impact guard, which
was of a ``swing out'' design, raised problems of worker safety,
reduced payload because of the guard's weight, accumulation of asphalt
paving material on the guard, and prohibitive costs.
Dan Hill is now examining the feasibility of a ``swing in'' guard.
It is working with an English source to develop a guard that will
comply with Standard No. 223. Dan Hill will then install the guard on
several Flow Boy trailers to determine whether further design
modifications are required. It anticipates full compliance at the end
of a further exemption of 2 years.
Why Dan Hill Says That a Temporary Exemption Would be in the Public
Interest and Consistent With Objectives of Motor Vehicle Safety
Dan Hill believes that an exemption would be in the public interest
and consistent with traffic safety objectives because the Flow Boy aids
in the construction of the national road system. Flow Boy spends very
little of its operating life on the highway and the likelihood of its
being involved in a rear-end collision is minimal. In addition, the
design of the Flow Boy is such that the rear tires act as a buffer and
reduce the likelihood of impact with the trailer.
Our Findings and Decision
As the exemption renewal petitions by Dan Hill and by Red River
Manufacturing, Inc. (see 64 FR 10737) demonstrate, manufacturers of
horizontal discharge trailers continue to find it difficult to develop
a retractable rear impact guard that complies with Standard No. 223,
and to fit it to its trailers to comply with Standard No. 224. During
the past year, Dan Hill has investigated the feasibility of a ``swing-
out'' design, which presented problems of an accumulation of asphalt
paving material on the guard. Presently, it is examining a ``swing-in''
guard, and working with an English source to develop it. It anticipates
full compliance by February 1, 2001. Dan Hill's yearly net income is
substantially less than half a million dollars under the best of
circumstances. Were the exemption denied, its estimated loss of gross
sales exceeding $8,273,117 would appear to create a net loss of some
magnitude.
Given the fact that Dan Hill and its principal competitor Red River
dominate the horizontal asphalt discharge trailer market, and that both
are experiencing the same difficulties in achieving compliance, it is
in the public interest to maintain the existing level of competition by
affording equal treatment to both companies. We note, also, that the
risk to safety is minimized to the extent that road construction
trailers spend comparatively little of their operating life traveling
on the highways.
Accordingly, for the reasons set forth above, we hereby find that
compliance with Standard No. 224 would cause substantial economic
hardship to a manufacturer that has tried in good faith to comply with
Standard No. 224, and that an exemption would be in the public interest
and consistent with the objectives of traffic safety. NHTSA Temporary
Exemption No. 98-1 from Federal Motor Vehicle Safety Standard No. 224,
Rear Impact Protection, applicable to Flow Boy horizontal discharge
construction trailers, is hereby extended to expire on February 1,
2001. That date is slightly more than five years after Standard No. 224
was issued, and NHTSA does not anticipate providing further extensions
of exemptions from compliance with Standard No. 224.
Authority: 49 U.S.C. 30113; delegations of authority at 49 CFR
1.50 and 501.4.
[[Page 49049]]
Issued on September 1, 1999.
Ricardo Martinez,
Administrator.
[FR Doc. 99-23427 Filed 9-8-99; 8:45 am]
BILLING CODE 4910-59-P