[Federal Register Volume 68, Number 112 (Wednesday, June 11, 2003)]
[Rules and Regulations]
[Pages 35145-35148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14703]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 579

[Docket No. NHTSA 2001-8677; Notice 6]
RIN 2127-AI92


Reporting of Information and Documents About Potential Defects

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

ACTION: Final rule; partial response to petitions for reconsideration.

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SUMMARY: This document responds to petitions to extend the initial 
period for quarterly reporting and the due date for one-time historical 
reports established by the final rule published on July 10, 2002, and 
implementing the early warning reporting provisions of the 
Transportation Recall Enhancement, Accountability, and Documentation 
(TREAD) Act. Under this rule, motor vehicle and motor vehicle equipment 
manufacturers will continue to be required to report information and to 
submit documents that may assist NHTSA to promptly identify defects 
related to motor vehicle safety.
    This document changes the initial reporting period for quarterly 
incident and statistical data reports from the second quarter of 2003 
to the third quarter of 2003, changes the reporting period for one-time 
historical reports by one quarter, and makes a corresponding change of 
the reporting date for the one-time historical report to December 31, 
2003. The document also defers the initial reporting period for copies 
of non-dealer field reports for two quarters until the first quarter of 
2004, and changes the due dates for the submission of copies of non-
dealer field reports.
    The agency's response to petitions for reconsideration of certain 
other provisions of the final rule appears in another notice separately 
published in the Federal Register.

DATES: Effective Date: The effective date of the amendments made by 
this final rule is July 11, 2003. Applicability Dates: Various 
provisions of this final rule are applicable on the dates stated in the 
regulatory text. Petitions for Reconsideration: Petitions for 
reconsideration of amendments made by this final rule must be received 
not later than July 28, 2003.

ADDRESSES: Petitions for reconsideration of the amendments made by this 
final rule must refer to the docket or Regulatory Identification Number 
(RIN) for this rulemaking, and be addressed to the Administrator, 
National Highway Traffic Safety Administration (NHTSA). You may submit 
a petition by any of the following methods:
    [sbull] Web site: http://dms.dot.gov. Follow the instructions for 
submitting comments on the DOT electronic docket site.
    [sbull] Fax: 1-202-493-2251.
    [sbull] Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-001.
    [sbull] Hand Delivery : Room PL-401 on the plaza level of the 
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 am 
and 5 pm, Monday through Friday, except Federal Holidays.
    [sbull] Federal eRulemaking Portal: Go to http://www.regulations.gov.
    See Section IV ``Privacy Act Statement'' for electronic access and 
filing addresses.

FOR FURTHER INFORMATION CONTACT: For non-legal issues, contact Jonathan 
White, Office of Defects Investigation, NHTSA (phone: 202-366-5226). 
For legal issues, contact Taylor Vinson, Office of Chief Counsel, NHTSA 
(phone: 202-366-5263).

SUPPLEMENTARY INFORMATION:

I. Background

    On July 10, 2002, NHTSA published a final rule implementing the 
early warning reporting (EWR) provisions of the Transportation Recall 
Enhancement, Accountability, and Documentation (TREAD) Act, established 
by 49 U.S.C. 30166(m) (67 FR 45822). The reader is referred to that 
document, and the prior Notice of Proposed Rulemaking (NPRM) (66 FR 
66190) for further information. The reader is also referred to a 
response to some issues raised by other petitions for reconsideration 
of the final rule. 68 FR 18136 (April 15, 2003). We are responding to 
other issues raised by such petitions in a separate notice published in 
the Federal Register.
    The EWR provisions addressed by this notice appear in Subchapter C 
of 49 CFR part 579, Reporting of Information and Documents About 
Potential Defects, specifically Sections 571.21-29. The final rule 
establishes a schedule for the reporting of information and documents 
by calendar quarters. Under that schedule, the first reporting quarter 
is the second quarter of 2003 (April 1-June 30), with reports and 
copies of non-dealer field reports due not later than 60 days after the 
end of the quarter, that is to say, August 29, 2003. See Sections 
579.28(a) and (b). In addition, not later than September 30, 2003, all 
manufacturers of 500 or more motor vehicles annually, manufacturers of 
child restraint systems, and manufacturers of tires must file a one-
time report of historical information on the numbers of warranty claims 
or warranty adjustments and field reports that they received in each 
calendar quarter from April 1, 2000 to March 31, 2003. See Section 
579.28(c), as amended (68 FR 18143 (April 15, 2003)).

II. Petitions for Extension of the Date of Reporting Requirements

    NHTSA has received a number of petitions related to the final rule. 
For example, General Motors Corporation (GM) submitted a petition for 
reconsideration raising issues about the date established by the final 
rule for submission of the one-time historical reports. Thereafter, we 
received a number of related petitions.

[[Page 35146]]

    On November 22, 2002, the National Association of Trailer 
Manufacturers (NATM) filed a ``Petition for Postponement of Compliance 
Date for Certain Trailers.'' NATM sought delayed compliance dates for 
reporting of information. Shortly thereafter, on December 5, 2002, the 
National Truck Equipment Association (NTEA) and the Recreational 
Vehicle Industry Association (RVIA) jointly petitioned NHTSA to 
``extend for a period of six months'' the periods for and the dates 
that manufacturers of motorhomes, multi-stage vehicles, alterers, and 
trailers and trailer equipment would report, or, alternatively, ``all 
affected manufacturers that meet the Small Business Administration's 
definition of `small entities' as stated in 13 CFR Sec. 121.201.'' This 
petition asked that the first quarterly reporting period begin October 
1, 2003, with the first report due not later than February 29, 2004, 
and that the one-time historical report be due on March 31, 2004.
    Finally, on March 18, 2003, the Rubber Manufacturers Association 
(RMA) submitted a petition to postpone the periods for which reporting 
is required until after NHTSA has responded to RMA's timely petition 
for reconsideration of various provisions of the final rule. We are 
responding to RMA's petition for reconsideration in Notice 5.
    We have decided to extend the reporting dates, for the reasons 
discussed below, which we regard as a partial grant of these petitions.

III. Revisions to the Dates in the EWR Regulation

    In the final rule, we addressed how NHTSA plans to handle and 
utilize information submitted under the rule. See 67 FR at 45865. We 
noted that 49 U.S.C. 30166(m)(4)(A)(i) and (ii) require that our early 
warning rule specify how the information reported to us will be used. 
Among other things, we stated that data submitted by manufacturers 
would be entered into a new computer system and data warehouse called 
ARTEMIS--Advanced Retrieval (Tire, Equipment, Motor vehicles) 
Information System. ARTEMIS is being developed for NHTSA's Office of 
Defects Investigation (ODI) under an agreement with the Volpe National 
Transportation Systems Center (Volpe) in Cambridge, Massachusetts. 
ARTEMIS will provide for centralized storage of information, include a 
document management system, use data analysis tools, and facilitate the 
provision of appropriate information to the public.
    There are three basic types of EWR data that will be reported 
quarterly (with slight variations depending on the type of 
manufacturer): (1) Information about incidents involving deaths and 
injuries in claims and notices received by a manufacturer; (2) 
statistical data about the number of items produced, property damage 
claims, consumer complaints, warranty claims,and field reports; and (3) 
copies of non-dealer field reports.
    Numerous interpretation questions have been submitted by 
manufacturers and their associations. The agency has been responding to 
these questions. In addition, our April 15, 2003, notice (Notice 4) 
responding to some issues raised in petitions for reconsideration made 
changes to some requirements, and other changes are being made in the 
response to other issues raised by these petitions (Notice 5). To 
ensure that we have consistent data and that manufacturers have time to 
incorporate all needed changes into their data collection systems, in 
response to these regulatory changes and in light of NHTSA's 
interpretations, we are extending the reporting period one quarter. We 
are correspondingly extending the date these reports are due, to 
Monday, December 1, 2003. (To make it more convenient for manufacturers 
to submit their data and to protect against a possible system overload 
that could occur if every manufacturer tried to submit its data on the 
afternoon of December 1, we plan to work with the larger manufacturers 
to develop a schedule under which their data will be submitted over 
several days at the end of November and/or early December.)
    We are extending the requirement for the submission of copies of 
non-dealer field reports, which must be submitted to ODI pursuant to 
subsection (d) of Sections 579.21-579.25, for a longer period. 
Manufacturers use a myriad of data retention and transmission tools and 
procedures to generate, describe, store, and submit these field 
reports. In view of the different approaches, various issues must be 
addressed before manufacturers transmit these field reports 
electronically to assure that ODI will be able to receive, store, 
access, and effectively utilize these reports. To capture the unique 
attributes of each specific field report and to make the field report 
data retrievable in an effective manner, ODI has decided to create a 
file naming convention that will allow the field reports to be stored 
in a relational and accessible manner. Although we have advised the 
industry that we plan to create such a convention, we have not yet 
notified manufacturers of its specific terms. We anticipate that we 
will be able to do so before the end of the second quarter of 2003.
    Because each non-dealer field report will have to be individually 
reviewed and coded by the manufacturers, to allow manufacturers time to 
become familiar with the file naming convention, we are deferring the 
initial reporting period for the submission of copies of non-dealer 
field reports for two calendar quarters beyond the calendar quarter for 
which numerical reports will be required, i.e., until the first quarter 
of 2004.
    In addition, since transmission of electronic copies of field 
reports will utilize a great deal of bandwidth, which could delay or 
interfere with the transmission of other EWR data, we have decided that 
the submission date for these documents should be different from the 
date that other EWR information is due. Thus, we are amending the 
regulation to provide that copies of these reports will be due 30 days 
after the other quarterly EWR data are due. This amendment will reduce 
the burden on the manufacturers' computer facilities and on ARTEMIS.
    With regard to one-time historic reporting, we understand that the 
September 30, 2003 due date is presenting a challenge to some 
manufacturers, notwithstanding the use of temporary staff. In its 
petition for reconsideration, GM represented that many of the documents 
it maintains exist in uncoded systems, requiring manual retrieval, 
review, and coding into the specified system/component categories, 
concluding that ``GM estimates that it will take multiple labor years--
just to compile the historical report.'' We note that NTEA/RVIA asked 
for a six-month delay in this requirement as well. An extension beyond 
September 30 will ease the burden on manufacturers and will also 
provide ODI with additional time to complete its review of the initial 
quarterly submissions. The period covered by the one-time historical 
report is also adjusted by one quarter (e.g., for motor vehicles, the 
period for which data must be reported begins on July 1, 2000 (rather 
than April 1, 2000), and ends on June 30, 2003 (rather than March 31, 
2003). Therefore, the due date for one-time historical reports 
submitted pursuant to Section 579.28(c), as amended, will be December 
31, 2003.

IV. Privacy Act Statement

    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association,

[[Page 35147]]

business, labor union, etc.). You may review DOT's complete Privacy Act 
Statement in the Federal Register published on April 11, 2000 (65 FR 
19477) or you may visit http://dms.dot.gov.

V. Rulemaking Analyses

    Regulatory Policies and Procedures. Executive Order 12866, 
``Regulatory Planning and Review'' (58 FR 51735, October 4, 1993) 
provides for making determinations whether a regulatory action is 
``significant'' and therefore subject to Office of Management and 
Budget (OMB) review and to the requirements of the Executive Order. The 
Order defines as ``significant regulatory action'' as one that is 
likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or Tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    We have considered the impact of this rulemaking under E.O. 12866 
and the Department of Transportation's regulatory policies and 
procedures. The underlying rulemaking has been determined to be 
significant by the Office of Management and Budget under E.O. 12866 
because of Congressional interest. For the same reason, this action has 
also been determined to be significant under DOT's regulatory policies 
and procedures. A detailed discussion of impacts of the underlying 
rulemaking can be found in the Final Regulatory Evaluation (FRE) that 
the agency has prepared for the rulemaking completed in July 2002 and 
filed in the docket. The changes made by today's rule simply delay the 
reporting and applicability dates of the provisions of the EWR rule. 
Except for this short-term adjustment, they do not change the reporting 
requirements.
    Regulatory Flexibility Act. The Regulatory Flexibility Act of 1980 
(5 U.S.C. Sec.  601 et seq.) requires agencies to evaluate the 
potential effects of their proposed and final rules on small 
businesses, small organizations and small governmental jurisdictions. 
This was addressed in the final rule. 67 FR 45870-71. The changes made 
by today's rule simply delay the reporting and applicability dates of 
the provisions of the EWR rule. Based on the best information available 
to us at this time, I certify that this rule will not have a 
significant economic impact on a substantial number of small entities.
    Executive Order 13132 (Federalism). Executive Order 13132 on 
``Federalism'' requires us to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of ``regulatory policies that have federalism 
implications.'' The Executive Order defines this phrase to include 
regulations ``that have substantial direct effects on the States, on 
the relationship between the national government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government.'' The agency has analyzed this rule in accordance with 
the principles and criteria set forth in Executive Order 13132 and has 
determined that it will not have sufficient federalism implications to 
warrant consultation with State and local officials or the preparation 
of a federalism summary impact statement. This rule regulates the 
manufacturers of motor vehicles and motor vehicle equipment and will 
not have substantial direct effect on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive 13132.
    Civil Justice Reform. This rule will not have a retroactive or 
preemptive effect, and judicial review of it may be obtained pursuant 
to 5 U.S.C. 702. That section does not require that a petition for 
reconsideration be filed prior to seeking judicial review.
    Paperwork Reduction Act. The final rule requires manufacturers of 
motor vehicles and motor vehicle equipment to report information and 
data to NHTSA periodically. Provisions of the final rule, including 
document retention provisions, are considered to be information 
collection requirements, as that term is defined by the Office of 
Management and Budget (OMB) in 5 CFR part 1320. To obtain a three-year 
clearance for information collection, we published a Paperwork 
Reduction Act notice on June 25, 2002 (67 FR 42843) pursuant to the 
requirements of that Act (44 U.S.C. 3501 et seq.). We received 
clearance from OMB on December 20, 2002, which will expire on December 
31, 2005. The clearance number is 2127-0616. The amendments made by 
this rule do not change the overall paperwork burden. They simply delay 
the reporting and applicability dates of the provisions of the EWR 
rule.
    Data Quality Act Section 515 of the FY 2001 Treasury and General 
Government Appropriations Act (Public Law 106-554, Sec.  515, codified 
at 44 U.S.C. Sec.  3516 historical and statutory note), commonly 
referred to as the Data Quality Act, directed OMB to establish 
government-wide standards in the form of guidelines designed to 
maximize the ``quality,'' ``objectivity,'' ``utility,'' and 
``integrity'' of information that Federal agencies disseminate to the 
public. As noted in the final rule, NHTSA has reviewed its data 
collection, generation, and dissemination processes in order to ensure 
that agency information meets the standards articulated in the OMB and 
DOT guidelines. The changes made by today's rule simply delay the 
reporting and applicability dates of the provisions of the EWR rule and 
do not have any effects on data quality.
    Unfunded Mandates Reform Act. The Unfunded Mandates Reform Act of 
1995 (Public Law 104-4) requires agencies to prepare a written 
assessment of the costs, benefits, and other effects of proposed or 
final rules that include a Federal mandate likely to result in 
expenditures by State, local or tribal governments, in the aggregate, 
or by the private sector, of more than $100 million annually (adjusted 
annually for inflation with base year of 1995). The rule did not have 
unfunded mandates implications. 67 FR 49263 (July 30, 2002). The 
changes made by today's rule simply delay the reporting and 
applicability dates of the provisions of the EWR rule and do not create 
any unfunded mandates within the meaning of this Act.

List of Subjects in 49 CFR Part 579

    Imports, Motor vehicle safety, Motor vehicles, Reporting and 
recordkeeping requirements.

0
In consideration of the foregoing, 49 CFR chapter V is amended as 
follows:

PART 579--REPORTING OF INFORMATION AND COMMUNICATIONS ABOUT 
POTENTIAL DEFECTS

0
1. The authority citation for part 579 continues to read as follows:

    Authority: Sec. 3, Pub. L. 106-414, 114 Stat. 1800 (49 U.S.C. 
30102-103, 30112, 30117-121, 30166-167); delegation of authority at 
49 CFR 1.50.

Subpart A--General

0
2. In Sec.  579.5(d), the date of ``April 1, 2003,'' is revised to read 
``July 1, 2003.''

[[Page 35148]]

Subpart C--Reporting of Early Warning Information

0
3. In Sec.  579.28, paragraphs (a), (b), and (c)(1) are revisedm and 
paragraph (n) is added, to read as follows:


Sec.  579.28  Due date of reports and other miscellaneous provisions.

    (a) Initial submission of reports. Except as provided in paragraph 
(n) of this section, the first calendar quarter for which reports are 
required under Sec. Sec.  579.21 through 579.27 of this subpart is the 
third calendar quarter of 2003.
    (b) Due date of reports. Except as provided in paragraph (n) of 
this section, each manufacturer of motor vehicles and motor vehicle 
equipment shall submit each report that is required by this subpart not 
later than 30 days after the last day of the reporting period. 
Notwithstanding the prior sentence, the due date for reports covering 
the third and fourth calendar quarter of 2003 and the first calendar 
quarter of 2004 shall be 60 days after the last day of the reporting 
period.
    (c) One-time reporting of historical information. (1) No later than 
December 31, 2003:
    (i) Each manufacturer of vehicles covered by Sec. Sec.  579.21 
through 579.24 of this part shall file separate reports providing 
information on the numbers of warranty claims recorded in the 
manufacturer's warranty system, and field reports, that it received in 
each calendar quarter from July 1, 2000, to June 30, 2003, for vehicles 
manufactured in model years 1994 through 2003 (including any vehicle 
designated as a 2004 model);
    (ii) Each manufacturer of child restraint systems covered by Sec.  
579.25 of this part shall file separate reports covering the numbers of 
warranty claims recorded in the manufacturer's warranty system and 
consumer complaints (added together), and field reports, that it 
received in each calendar quarter from July 1, 2000, to June 30, 2003, 
for child restraint systems manufactured from July 1, 1998, to June 30, 
2003, and
    (iii) Each manufacturer of tires covered by Sec.  579.26 of this 
part shall file separate reports covering the numbers of warranty 
adjustments recorded in the manufacturer's warranty adjustment system 
for tires that it received in each calendar quarter from July 1, 2000, 
to June 30, 2003, for tires manufactured from July 1, 1998, to June 30, 
2003.
* * * * *
    (n) Submission of copies of field reports. Copies of field reports 
required under this subpart shall be submitted not later than 30 days 
after reports are due pursuant to paragraphs (a) and (b) of this 
section. The first calendar quarter for which copies of field reports 
are required to be submitted under Sec. Sec.  579.21(d), 579.22(d), 
579.23(d), 579.24(d), and 579.25(d) of this subpart is the first 
calendar quarter of 2004.

    Issued on: June 6, 2003.
Jeffrey W. Runge,
Administrator.
[FR Doc. 03-14703 Filed 6-6-03; 4:12 pm]
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