[Federal Register Volume 69, Number 187 (Tuesday, September 28, 2004)]
[Rules and Regulations]
[Pages 57867-57869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-21737]


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

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 579

[Docket No. NHTSA 2001-8677; Notice 12]
RIN 2127-AJ41


Reporting of Information and Documents About Potential Defects

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

ACTION: Final rule.

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

SUMMARY: This final rule amends the date by which quarterly early 
warning reports are to be submitted to the agency from 30 days 
following the end of a calendar quarter to 60 days following the end of 
a calendar quarter. The final rule also amends the date by which copies 
of non-dealer field reports are to be submitted from 30 days after the 
quarterly reports are due to 15 days after those reports are due.

DATES: Effective Date: The effective date of this final rule is October 
28, 2004. Petitions for Reconsideration: Petitions for reconsideration 
of the final rule must be received not later than November 12, 2004.

ADDRESSES: Petitions for reconsideration of the final rule should refer 
to the docket and notice number set forth above and be submitted to 
Administrator, National Highway Traffic Safety Administration, 400 
Seventh Street, SW., Washington, DC 20590, with a copy to Docket 
Management, Room PL-401, 400 Seventh Street, SW., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: For non-legal issues, contact Jonathan 
White, Office of Defects Investigation, NHTSA (phone: 202-366-5226). 
For legal issues, contact Andrew DiMarsico, 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, 49 U.S.C. 
30166(m) 67 FR 45822. The EWR final rule established a schedule for the 
reporting of information and submission of copies of certain field 
reports required by the rule. The first calendar quarter for which 
reports were required was the second calendar quarter of 2003. See 49 
CFR 579.28(a)(2002). For the quarterly reporting periods in 2003, the 
reports were due within 60 days after the end of the quarter. 
Thereafter, starting in 2004, reports were to be due within 30 days 
after the end of the quarter. See 49 CFR 579.28(b) (2002).
    In response to a petition for reconsideration of the final rule, on 
June 11, 2003, NHTSA amended the reporting dates. 68 FR 35145. Under 
the revised rule, the initial reporting period for all quarterly data 
\1\ other than historical reports and copies of non-dealer field 
reports was the third quarter of 2003. Reports covering the last two 
quarters of 2003 and the first quarter of 2004 were due to NHTSA within 
60 days after the close of the reporting period. Thereafter, reports 
currently are due within 30 days after the close of the quarter. NHTSA 
also amended the requirements for submission of copies of non-dealer 
field reports. The initial reporting period for the submission of 
copies of non-dealer field reports was the first calendar quarter of 
2004. Under that amendment, the dealer field reports are due within 30 
days after the quarterly data are due. 49 CFR 579.28(b), (n) (2003); 
see 68 FR 35145.
---------------------------------------------------------------------------

    \1\ In general, quarterly reports include information on 
production, incidents involving death or injury, numbers of property 
damage claims, numbers of consumer complaints, numbers of warranty 
claims or warranty adjustments, and numbers of field reports. See 
e.g., 49 CFR 579.21 (2003).
---------------------------------------------------------------------------

II. Notice of Proposed Rulemaking

    In response to a petition for rulemaking filed by the Alliance of 
Automobile Manufacturers (Alliance), on June 29, 2004, NHTSA published 
a proposal to amend the date by which quarterly early warning reports 
are to be submitted to the agency from 30 days following the end of a 
calendar quarter to 60 days following the end of a calendar quarter. In 
addition, the agency proposed to amend the date by which copies of non-
dealer field reports are to be submitted from 30 days after the 
quarterly reports are due to 15 days after those reports are due. 69 FR 
38860. In the NPRM, the agency stated that based upon the experience of 
the Alliance's members, it appeared that manufacturers need more than 
30 days to provide complete and accurate EWR reports to NHTSA. The 
agency further explained that complete reports best serve its EWR 
program because its analysts use the quarterly reports to assist in the 
identification of possible defect trends, and incomplete reports would 
disrupt the analytical process.
    We received comments from industry trade associations and the 
public. For the industry, the Rubber Manufacturers Association (RMA), 
the Motor & Equipment Manufacturers Association (MEMA), the Association 
of International Automobile Manufacturers, Inc. (AIAM), the Alliance, 
and the Truck Manufacturers Association (TMA) submitted comments. In 
general, the industry supported the proposal and urged NHTSA to adopt 
it. Specifically, RMA indicated that its members report that the 
process of gathering information and completing the reports has been 
more complex than anticipated. In addition, MEMA commented that some of 
its members are part of large multi-national organizations that require 
more time to identify EWR information, translate it to English and 
prepare the applicable EWR report. Lastly, the Alliance and AIAM stated 
that the additional time to provide reports would ensure that its 
members provide complete and accurate reports to NHTSA.
    We also received one comment against the proposal from a private 
citizen. That individual commented that 60 days to report EWR 
information is unreasonable since computers have the ability to quickly 
collate information.

III. Discussion

    When we issued the EWR final rule, and when we postponed the 
initial reporting period on reconsideration, we believed that after 
manufacturers had three opportunities to gain experience

[[Page 57868]]

in making EWR submissions, 30 days after the end of each calendar 
quarter would be a sufficient amount of time for submitting EWR 
information. However, based upon the comments received from the 
industry, we are adopting the proposed revision to section 579.28(b) to 
permit manufacturers to submit EWR quarterly data not later than 60 
days after the end of each calendar quarter.
    As we stated in the NPRM, the EWR rule requires manufacturers to 
submit large amounts of data that are stored in a variety of locations. 
As manufacturers have compiled and reported EWR information, they have 
gained a better understanding of the amount of time it takes them to 
collect, collate, and report the information. Based upon the experience 
of commenters, it appears that, at least for the foreseeable future, 
manufacturers need more than 30 days to collect, collate, and provide 
complete and accurate EWR reports to NHTSA.
    We do not believe that extending the due date for EWR reports will 
be a detriment to the interests of motor vehicle safety. Incomplete or 
inaccurate data would not serve NHTSA well. In fact, incomplete reports 
could lead the agency to fail to identify potential defects or to 
examine issues unnecessarily, thereby wasting agency resources.
    As we have stated in earlier Federal Register notices on the early 
warning reporting program, we plan to begin reviewing the EWR 
regulation after two years of reporting experience. During the course 
of this review, we will assess whether the appropriate time for 
quarterly reporting should be 30, 60 or some other number of days after 
the end of the reporting period.
    Under the current regulations, copies of non-dealer field reports 
are due to NHTSA within 30 days after the other quarterly reports are 
due. 49 CFR 579.28(n) (2003). In essence, beginning with the second 
quarter of 2004, these reports are now due 60 days after the end of the 
quarter. Given the structure of the regulation, which bases the due 
date for non-dealer field reports on the due date for quarterly 
reports, if we were to change the due date for the quarterly reports 
and make no other changes, the non-dealer field reports would be due 90 
days after the end of the quarter. We do not see any need for a delay 
of that length. However, to avoid any possibility that the submission 
of the field reports could interfere with the submission of the 
quarterly data, we proposed to continue to stagger the two dates. We 
proposed a 15 day difference between reporting dates for this purpose. 
We did not receive any comments to the contrary. Therefore, we will 
adopt the proposal to change the language of subsection 579.28(n) to 
require non-dealer field reports to be submitted not later than 15 days 
after the quarterly data is due, which would be 75 days after the end 
of the calendar quarter.

IV. 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.
    Today's final rule was not reviewed under E.O. 12866 or the 
Department of Transportation's regulatory policies and procedures. This 
rulemaking action is not significant under Department of Transportation 
policies and procedures. The impacts of today's final rule are expected 
to be so minimal as not to warrant preparation of a full regulatory 
evaluation because the final rule only revises the time period for 
reporting certain EWR data from 30 days to 60 days after the calendar 
quarter ends and revises the date for submission of certain field 
reports by 15 days. This document does not otherwise change the 
substance of the reports.
    Regulatory Flexibility Act. The Regulatory Flexibility Act of 1980 
(5 U.S.C. 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 EWR final rule and in response to petitions for reconsideration. 
See 67 FR 45870-71 and 69 FR 3292, 3297 respectively. Today's final 
rule simply extends dates for reporting information under the early 
warning program and does not impose any new burdens on small 
businesses. Based on the analyses performed in the EWR final rule (67 
FR 45870-71) and the response to petitions for rulemaking (69 FR 3292, 
3297), I certify that this proposed 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 final 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. Today's final 
rule is a rule that regulates the manufacturers of motor vehicles and 
motor vehicle equipment, which does 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 Order 
13132.
    Civil Justice Reform. This final 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. Today's final rule simply extends the 
reporting period for the submission of EWR data. It does not create new 
information collection requirements, as that term is defined by the 
Office of Management and Budget (OMB) in 5 CFR part 1320. To the extent 
that this final rule implicates the Paperwork Reduction Act, we will 
rely upon our previous clearance from OMB. To obtain a three-year 
clearance for information collection for the EWR rule, 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,

[[Page 57869]]

which will expire on December 31, 2005. The clearance number is 2127-
0616. The amendments adopted by this document do not change the overall 
paperwork burden. They simply extend the dates for reporting certain 
information pursuant to 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. 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 EWR final rule (67 FR 45822), 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 adopted by today's final rule simply 
extends the reporting period for submission of data pursuant to the EWR 
rule and do not have any effects on the quality of the date 
disseminated by the agency.
    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 EWR final rule did 
not have unfunded mandates implications. 67 FR 49263. Today's final 
rule simply extends the reporting period for submission of data 
pursuant to the EWR rule and does 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 C--Reporting of Early Warning Information

0
2. In Sec.  579.28, revise paragraphs (b) and (n) to read as follows:


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

* * * * *
    (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 60 days after the last day of the reporting period.
* * * * *
    (n) Submission of copies of field reports. Copies of field reports 
required under this subpart shall be submitted not later than 15 days 
after reports are due pursuant to paragraph (b) of this section.

    Issued on: September 22, 2004.
Jeffrey W. Runge,
Administrator.
[FR Doc. 04-21737 Filed 9-27-04; 8:45 am]
BILLING CODE 4910-59-P