[Federal Register Volume 85, Number 4 (Tuesday, January 7, 2020)]
[Proposed Rules]
[Pages 792-823]
[FR Doc No: 2019-27211]

Vol. 85

Tuesday,

No. 4

January 7, 2020

Part II

Department of Transportation

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 National Highway Traffic Safety Administration

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49 CFR Parts 565, 566, 567, et al.

Replica Motor Vehicles; Vehicle Identification Number (VIN)
Requirements; Manufacturer Identification; Certification; Proposed Rule

Federal Register / Vol. 85 , No. 4 / Tuesday, January 7, 2020 /
Proposed Rules

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Parts 565, 566, 567, and 586

[Docket No. NHTSA-2019-0121]
RIN 2127-AL77

Replica Motor Vehicles; Vehicle Identification Number (VIN)
Requirements; Manufacturer Identification; Certification

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: Section 24405 of the Fixing America's Surface Transportation
Act (FAST Act) amended the National Traffic and Motor Vehicle Safety
Act (Safety Act) to direct the Secretary of Transportation (NHTSA by
delegation) to exempt annually a limited number of replica motor
vehicles manufactured or imported by low-volume manufacturers from
Federal motor vehicle safety standards (FMVSS) that apply to motor
vehicles, but not standards that apply to motor vehicle equipment. To
implement the exemption program and the procedural mandates of the FAST
Act, NHTSA is proposing, in a new Part 586, requirements for
registering as a replica manufacturer, submitting annual reports,
providing consumer disclosures, and labeling. NHTSA is proposing
procedures to exempt replica vehicles produced by registrants from all
the FMVSS that apply to new motor vehicles. This Notice of Proposed
Rulemaking (NPRM) also proposes changes to Part 565, to require
manufacturers to encode specific information into each replica
vehicle's VIN, and to Parts 566 and 567 for manufacturer identification
and vehicle certification, respectively.

DATES: You should submit your comments early enough to ensure that the
docket receives them not later than February 6, 2020. In compliance
with the Paperwork Reduction Act, NHTSA is also seeking comment on a
new information collection and revisions to existing information
collections. For additional information, see the Paperwork Reduction
Act section under the Regulatory Notices and Analyses section below.
All comments relating to the information collection requirements should
be submitted to NHTSA and to the Office of Management and Budget (OMB)
at the address listed in the ADDRESSES section on or before February 6,
2020.

ADDRESSES: You may submit comments to the docket number identified in
the heading of this document by any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting
comments.
     Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: 1200 New Jersey Avenue SE, West
Building Ground Floor, Room W12-140, between 9 a.m. and 5 p.m. ET,
Monday through Friday, except Federal holidays.
     Fax:<PHONE_NUMBER>.

Regardless of how you submit your comments, please be sure to mention
the docket number of this document.
    Comments on the proposed information collection requirements should
be submitted to: Office of Management and Budget, Office of Information
and Regulatory Affairs, Washington, DC 20503, Attn: Desk Officer for
NHTSA. It is requested that comments sent to the OMB also be sent to
the NHTSA rulemaking docket identified in the heading of this document.
    Instructions: For detailed instructions on submitting comments and
additional information on the rulemaking process, see the Public
Participation section of this document. Note that all comments received
will be posted without change to http://www.regulations.gov, including
any personal information provided. Please see the Privacy Act heading
under Rulemaking Notices and Analyses regarding documents submitted to
the agency's dockets.
    Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov or the street
address listed above. Follow the online instructions for accessing the
dockets.

FOR FURTHER INFORMATION CONTACT: For technical issues and information
concerning the information collections, you may contact Ms. Mary
Versailles, Office of Rulemaking, by telephone at<PHONE_NUMBER>. For
legal issues, you may contact Ms. Callie Roach, Office of the Chief
Counsel, by telephone at<PHONE_NUMBER>. The mailing address of both
officials is: National Highway Traffic Safety Administration, 1200 New
Jersey Avenue SE, West Building, Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Executive Summary
II. Background--Summary of Significant FAST Act Provisions
III. NHTSA's Proposed Replica Vehicle Program--Basics
    a. Overview
    b. Number of Exempted Vehicles Permitted
    c. Low-Volume Manufacturer Requirement
    d. Vehicles Built in Two or More Stages
IV. Relevant Definitions
    a. Low-Volume Manufacturer
    b. Replica Motor Vehicle
    1. Requirement To Resemble the Replicated Vehicle
    2. Requirement To Manufacture Under License Agreement for
Intellectual Property Rights
V. Safety Requirements
    a. Equipment FMVSS
    b. Considered Requirements
    c. Safety-Related Defects
VI. Registration Requirements
VII. Other Administrative Requirements
    a. Manufacturer Identification Requirements (49 CFR Part 566)
    b. Manufacturer Identifier
    c. Vehicle Identification Number (VIN)
    d. Certification
    e. Importation
VIII. Labels and Other Consumer Disclosures
    a. Permanent Label
    b. Written Notice to Dealers and First Purchasers
    c. Temporary Label
IX. Reporting
X. Revocation of Registrations
XI. Overview of Benefits and Costs
XII. Effective Date
XIII. Regulatory Notices and Analyses
XIV. Public Participation

I. Executive Summary

    The National Traffic and Motor Vehicle Safety Act (``Safety Act'')
(49 U.S.C. Chapter 301, Motor Vehicle Safety (49 U.S.C. 30101 et seq.))
authorizes and directs the Secretary of Transportation (NHTSA by
delegation) to prescribe Federal motor vehicle safety standards (FMVSS)
to reduce traffic accidents and deaths and injuries resulting
therefrom.\1\ Under section 30112(a) of the Safety Act, a person may
not manufacture for sale, sell, offer for sale, introduce or deliver
for introduction into interstate commerce, or import into the United
States, any new motor vehicle or motor vehicle equipment unless the
vehicle or equipment complies with all applicable FMVSS in effect on
the date of manufacture.
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    \1\ The Secretary of Transportation has delegated the
responsibility to promulgate regulations under 49 U.S.C. Chapter
301, Motor Vehicle Safety (49 U.S.C. 30101 et seq.) to NHTSA. See,
49 CFR 1.95.
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    Pursuant to the Safety Act, NHTSA has issued FMVSS to protect the
public against unreasonable risk of crashes occurring because of the
design, construction, or performance of a vehicle and against
unreasonable risk of death or injury in a crash. Some of the

FMVSS are ``vehicle'' standards that apply only to new completed
vehicles as a unit and not to aftermarket components, some are
``equipment'' standards that apply to original and aftermarket items of
equipment, and a few are both vehicle and equipment standards. Section
30115 of the Safety Act requires that the manufacturer or distributor
of a motor vehicle or motor vehicle equipment subject to the FMVSS
certify at delivery that the vehicle or equipment complies with all
applicable FMVSS.
    The Safety Act provides limited authority to NHTSA to exempt motor
vehicles from section 30112(a). Section 30113 authorizes NHTSA to
exempt motor vehicles from a motor vehicle safety standard on a
temporary basis and under tightly defined circumstances. Section 30114
sets forth ``special exemptions'' for motor vehicles and motor vehicle
equipment from section 30112(a). Until the Fixing America's Surface
Transportation Act (FAST Act), exemptions under section 30114 were
limited to those necessary for research, investigations,
demonstrations, training, competitive racing events, show, or display.
    On December 4, 2015, Congress enacted the FAST Act (Pub. L. 114-
94). Section 24405 of the FAST Act amended section 30114 of the Safety
Act by, among other things, adding a subsection (b)(1)(A) that directs
NHTSA by delegation to ``exempt from section 30112(a) of this title not
more than 325 replica motor vehicles per year that are manufactured or
imported by a low-volume manufacturer.'' Section 30114(b)(1)(B) states
that exemptions are available from FMVSS for motor vehicles (i.e.,
vehicle standards), but not from FMVSS for motor vehicle equipment
(i.e., equipment standards).\2\
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    \2\ Using the above example, the FAST Act exempts the vehicle
from meeting the FMVSS in effect on January 1, 2018 applying to
passenger cars that are ``vehicle'' standards, such as the standards
for braking systems, advanced frontal air bags, side impact head
protection, ejection mitigation, roof crush resistance, fuel system
crash integrity, and electronic stability control. The equipment
used in the manufacture of a replica vehicle would still need to
meet any applicable ``equipment'' standards in effect when the
equipment was manufactured, such as those for lamps, glazing
materials, and tires.
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    Under the delegation in 49 CFR 1.95 and pursuant to section 24405
of the FAST Act, NHTSA is proposing to adopt a regulation, 49 CFR part
586, and amend others to implement the low-volume manufacturer replica
vehicle program. The FAST Act contains specific procedural requirements
for the registration of low-volume manufacturers, labeling of replica
vehicles, reporting, and other matters related to the exemption
program. To implement the program and the procedural mandates of the
FAST Act, NHTSA is proposing a new Part 586 to set forth requirements
for registration, labeling, providing consumer disclosures, submitting
annual reports, and other requirements needed for the administration of
the program. This NPRM also proposes changes to Part 565 to require
manufacturers to encode specific information into each replica
vehicle's VIN, and to Parts 566 and 567 for manufacturer identification
and vehicle certification, respectively.
    NHTSA highlights the following aspects of the replica vehicle
exemption program.
    1. Low-volume manufacturers registering for this program would be
conditionally exempt from section 30112(a)'s prohibitions on
manufacturing, selling, and importing noncomplying motor vehicles for
325 replica motor vehicles per year (``covered replica vehicles'') per
manufacturer. The exemption for replica vehicles would be conditioned
on the manufacturer complying with all requirements of the program.\3\
The covered replica vehicles would be exempt from complying with the
``vehicle'' standards in effect on the date of manufacture of the
replica that apply to new vehicles of the replica's type (e.g.,
passenger car, multipurpose passenger vehicle) and configuration, but
would not be exempt from the ``equipment'' standards. That is, any
equipment to which equipment standards apply that is installed on the
covered replica vehicles would need to meet all applicable equipment
standards in effect on the equipment's date of manufacture.
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    \3\ If a manufacturer produces vehicles that do not qualify as
replica vehicles, the vehicles would be non-exempt vehicles and
would be required to comply with all applicable FMVSS. For example,
NHTSA is proposing requirements to ensure that replica vehicles
resemble the original vehicle. If a manufacturer submits design
plans and NHTSA approves the registration, a deviation from those
plans that results in vehicles that do not resemble the original
would render those vehicles non-exempt.
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    2. NHTSA emphasizes that a replica vehicle manufacturer's obtaining
of an exemption from the FMVSS applicable to vehicles would have no
effect on the manufacturer's obligation under the Safety Act to recall
and remedy its vehicles if they are found by the manufacturer or NHTSA
to contain a defect that creates an unreasonable risk to safety.
Further, in such instance, manufacturers of covered replica vehicles
must comply with the requirements of 49 U.S.C. 30116 through 30120A
relating to defect reporting and notification.\4\ In addition, the FAST
Act specifies that a low-volume manufacturer's registration in the
program may be revoked if the manufacturer fails to comply with
requirements or if its vehicles are found to contain a safety-related
defect or if the manufacturer engages in unlawful conduct that poses a
significant safety risk.\5\
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    \4\ 49 U.S.C. 30114(b)(8).
    \5\ 49 U.S.C. 30114(b)(5).
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II. Background--Summary of Significant FAST Act Provisions

    On December 4, 2015, Congress enacted the FAST Act. Section 24405,
``Treatment of Low-Volume Manufacturers,'' provides a framework to
exempt replica vehicles manufactured by low-volume manufacturers from
certain vehicle safety standards. Section 24405 amends 49 U.S.C. 30114
by adding a new subsection.\6\
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    \6\ The FAST Act replica motor vehicle provision is not self-
executing, i.e., the Secretary must take steps to implement it. The
provision states that the Secretary (NHTSA by delegation) ``shall
exempt'' the vehicles. Further, the provision requires low-volume
manufacturers to ``register with the Secretary at such time, in such
manner, and under such terms that the Secretary determines
appropriate'' in order ``[t]o qualify for an exemption.'' NHTSA is
proposing to establish 49 CFR part 586 to set forth those
determinations in order to implement the program.
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    Section 30114(b)(1)(A) directs NHTSA to exempt ``325 replica motor
vehicles per year that are manufactured or imported by a low-volume
manufacturer'' from 49 U.S.C. 30112(a). Under 49 U.S.C. 30112(a), a
person may not manufacture for sale, sell, offer for sale, introduce or
deliver for introduction in interstate commerce, or import into the
United States, any motor vehicle or motor vehicle equipment
manufactured on or after the date an applicable motor vehicle safety
standard prescribed under this chapter takes effect unless the vehicle
or equipment complies with the standard and is covered by a
certification issued under section 30115 of this title. The exemption,
as provided in section 30114(b)(1)(B), is limited to the ``Federal
Motor Vehicle Safety Standards applicable to motor vehicles and not
motor vehicle equipment.''
    The FAST Act defines ``low-volume manufacturer'' at 49 U.S.C.
30114(b)(7)(A) as a manufacturer ``whose annual worldwide production,
including by a parent or subsidiary of the manufacturer, if applicable,
is not more than 5,000 motor vehicles.'' The definition also
specifically excludes persons who are registered as importers under 49
U.S.C. 30141.

    The Act defines ``replica motor vehicle'' at section 30114(b)(7)(B)
as a motor vehicle produced by a low-volume manufacturer that ``is
intended to resemble the body of another motor vehicle that was
manufactured not less than 25 years before the manufacture of the
replica motor vehicle'' and further specifies that the replica motor
vehicle must be ``manufactured under a license for the product
configuration, trade dress, trademark, or patent, for the motor vehicle
that is intended to be replicated from the original manufacturer, its
successors or assignees, or current owner of such product
configuration, trade dress, trademark, or patent rights.''
    To obtain an exemption, the FAST Act requires that a low-volume
manufacturer, pursuant to section 30114(b)(2), ``register with [NHTSA]
at such time, in such manner, and under such terms that [NHTSA]
determines appropriate'' and requires that NHTSA establish terms to
``ensure that no person may register as a low-volume manufacturer if
the person is registered as an importer under 49 U.S.C. 30141.''
    Under section 30114(b)(5), NHTSA has 90 days to review and approve
or deny a low-volume manufacturer's registration. If the agency
determines that any such registration is incomplete, the agency has an
additional 30 days for review. Any registration not approved or denied
within 90 days after initial submission, or 120 days if the
registration submission is incomplete, is deemed approved. Under
section 30114(b)(5), NHTSA is authorized to revoke an existing
registration based on a failure to comply with the requirements or a
finding by the agency of a safety-related defect or unlawful conduct
under this chapter that poses a significant safety risk. NHTSA must
provide the registrant a reasonable opportunity to correct all
deficiencies, if deemed correctable, at the sole discretion of NHTSA.
An exemption granted by NHTSA may not be transferred to any other
person, and expires at the end of the calendar year in which it was
granted with respect to any volume authorized by the exemption that was
not produced by the low-volume manufacturer. The Act directs NHTSA to
maintain an up-to-date list of registrants and a list of the make and
model of motor vehicles exempted on at least an annual basis and
publish such list in the Federal Register or on a website operated by
NHTSA.
    The FAST Act requires, at section 30114(b)(3), that NHTSA require
low-volume manufacturers to affix permanent labels to the exempted
motor vehicles that identify the specified standards and regulations
for which such vehicle is exempt from section 30112(a), state that the
vehicle is a replica, and designate the model year such vehicle
replicates. The provision also provides an option, under section
30114(b)(3)(B), for the agency to require low-volume manufacturers to
deliver written notice of the exemption to the dealer and the first
purchaser of the motor vehicle if the first purchaser is not an
individual that purchases the motor vehicle for resale.
    Further, under section 30114(b)(3)(C), low-volume manufacturers
``shall annually submit a report to [NHTSA] including the number and
description of the motor vehicles exempted'' under the exemption for
replica vehicles and the list of exemptions described on the required
label.
    Section 24405 of the FAST Act also exempts replica motor vehicles
from 49 U.S.C. 32304, 32502, and 32902 and from section 3 of the
Automobile Information Disclosure Act (15 U.S.C. 1232). That is,
replica motor vehicles will be exempt from passenger motor vehicle
country of origin labeling requirements, bumper standards, average fuel
economy standards, and vehicle labeling and safety rating disclosure
requirements.
    Section 30114(b)(8) provides that aside from the express exemptions
provided, manufacturers of replica motor vehicles ``shall be considered
a motor vehicle manufacturer for purposes of parts A and C of subtitle
VI'' of title 49. The FAST Act also expressly states that ``[n]othing
shall be construed to exempt a registrant from complying with the
requirements under sections 30116 through 30120A.'' Sections 30116
through 30120A provide the requirements for defects and noncompliance
reporting, notification and remedies.
    Section 30114(b)(9) states that nothing in section 30114(b) ``shall
be construed to preempt, affect, or supersede any State titling or
registration law or regulation for a replica motor vehicle, or exempt a
person from complying with such law or regulation.''
    Further, section 24405(b) of the FAST Act amends the Clean Air Act
to provide a framework for replica motor vehicles (referred to as
exempted specially produced motor vehicles) to be exempt from vehicle
certification testing and vehicle emission control inspection and
maintenance requirement.\7\ Among other requirements, the FAST Act
directs manufacturers of replica motor vehicles to register with the
Administrator of the Environmental Protection Agency and provides
requirements for installing engines in exempted replica vehicles.
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    \7\ The exemption program is limited to light-duty vehicles and
light-duty trucks. 42 U.S.C. 7525(a)(5)(H)(i).
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III. NHTSA's Proposed Replica Vehicle Program--Basics

a. Overview

    NHTSA proposes the following provisions to implement the low-volume
manufacturer replica vehicle program. Comments are requested on all
aspects of the proposal.
    The FAST Act contains specific definitions pertinent to the program
and has numerous substantive and procedural requirements related to the
exemption program. To implement the program and the procedural mandates
of the FAST Act, we propose to establish Part 586 to specify
definitions, procedural requirements for registration, labeling,
consumer disclosures, submitting annual reports, and other matters
needed for the administration of the program. This NPRM also proposes
changes to Part 565 to require manufacturers to encode specific
information into each replica vehicle's VIN, and to Parts 566 and 567
for manufacturer identification and vehicle certification,
respectively.

b. Number of Exempted Vehicles Permitted

    Under the FAST Act, the exemption program is limited to ``not more
than 325 replica motor vehicles per year that are manufactured or
imported by a low-volume manufacturer'' that registers with NHTSA.\8\
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    \8\ See section 30114(b)(1) and (2).
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    NHTSA has interpreted the FAST Act to allow NHTSA to grant each
registered low-volume manufacturer exemptions to produce up to 325
replica vehicles per calendar year.

c. Low-Volume Manufacturer Requirement

    Congress specified that replica vehicles must be ``manufactured or
imported by a low-volume manufacturer.'' NHTSA interprets this to mean
that the vehicles must be produced by a ``low-volume manufacturer,''
and that replica vehicles may only be imported by their fabricating
low-volume manufacturer.\9\ This means that replica vehicles

fabricated by a foreign low-volume manufacturer may only be imported by
that specific registered low-volume manufacturer (and each low-volume
manufacturer would be limited to importing 325 replica vehicles per
year, regardless of the calendar year of manufacture).\10\
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    \9\ Interpreting the statute to allow replicas to be produced by
foreign manufacturers that do not qualify as low-volume
manufacturers and then imported by low-volume manufacturers is
contrary to Congress's intent to create an exemption program
designed to address the unique financial challenges small
manufacturers face.
    \10\ A low-volume manufacturer would not be permitted to import
326 replica vehicles into the U.S. in a single calendar year,
regardless of whether those vehicles were fabricated over the course
of two calendar years.
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    NHTSA interprets the FAST Act provision in the same way NHTSA has
interpreted the hardship exemption provision in 49 U.S.C. 30113, i.e.,
as not authorizing the agency to grant hardship exemptions to entities
that seek to import vehicles they did not produce.\11\ NHTSA believes
interpreting section 24405 of the FAST Act in the same manner is
appropriate because both provisions recognize that small manufacturers
are faced with unique financial challenges in meeting the FMVSS and
provide exemptions to alleviate this burden.
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    \11\ See letter to Mr. Bill Cox (March 24, 1997) available at
https://isearch.nhtsa.gov/files/kill.ztv.html.
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    Although the Safety Act includes importers in the definition of
manufacturer,\12\ importers are not always treated the same as
fabricating manufacturers. For example, fabricating manufacturers bear
the primary responsibility for meeting the FMVSS and certifying to
those standards. For this reason, NHTSA does not believe limiting the
exemption to fabricating manufacturers is contrary to the statute.
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    \12\ 49 U.S.C. 30102.
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    This proposed requirement would mean that an entity seeking to
import replica motor vehicles could not register as a low-volume
manufacturer of replica vehicles unless it is also the entity
fabricating the replica vehicles. NHTSA's interpretation ensures that
small importers are not permitted to import replica vehicles that are
manufactured by large foreign manufacturers.
    NHTSA requests comment on NHTSA's interpretation.

d. Vehicles Built in Two or More Stages

    NHTSA requests comment on whether the replica vehicle program
should exclude vehicles manufactured in two or more stages. As
discussed below, some of the requirements that NHTSA is proposing may
be impossible to meet unless the replica vehicle is manufactured in a
single stage. This exclusion would provide clarity to manufacturers and
ensure that incomplete, intermediate, and final-stage manufacturers do
not attempt to become low-volume manufacturers of replica vehicles and
later, after expending resources, realize they cannot comply with all
the procedural requirements.
    NHTSA seeks comment on excluding vehicles manufactured in two or
more stages from the exemption program for the following reasons.
    First, NHTSA wishes to ensure replica vehicles are properly
identified as replicas in their VINs, which could be a problem with
replica vehicles manufactured in two or more stages. NHTSA's proposed
VIN requirements would stipulate that each replica vehicle must have
the identification of its low-volume manufacturer and a designation
that the vehicle is a replica encoded in its VIN. The VIN would also be
required to indicate the make, model, and model year of the replicated
vehicle. Those requirements could not be met by vehicles produced in
two or more stages because under NHTSA's VIN regulation, each vehicle
manufactured in two or more stages has a VIN assigned by the incomplete
vehicle manufacturer.\13\ The VIN of an incomplete vehicle may not be
able to meet the proposed VIN requirements because the incomplete
manufacturer may not know the make, model, and model year of the
vehicle being replicated.
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    \13\ 49 CFR 565.13(a). See also 49 CFR 567.3 for definitions of
``incomplete vehicle,'' ``incomplete vehicle manufacturer,''
``final-stage manufacturer,'' and other terms relevant to this
discussion.
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    NHTSA is proposing a requirement that replica vehicle VINs
designate the vehicle as a replica, what year it was manufactured, what
vehicle it intends to replicate, the year of the original vehicle, and
the identification of the manufacturer responsible for certifying the
vehicle's compliance. Although that information may be provided on the
certification label, including the information within the VIN provides
an easier and more reliable way of verifying the characteristics of the
vehicle. Including this information in the VIN and would also allow
NHTSA to search its databases for crashes involving replica vehicles
and better evaluate the safety of replica vehicles.
    Second, NHTSA does not believe that the replica program is
conducive to the multi-stage manufacture of replica vehicles as a
practical matter. The FAST Act emphasizes that the replica vehicle
exemption program is designed for ``low-volume manufacturers.'' The
program is set forth in section 24405 of the FAST Act, which is
entitled, ``Treatment of Low-Volume Manufacturers.'' The statute
repeatedly describes the ``exemption'' as one for ``low-volume
manufacturers'' and specifically exempts replica motor vehicles ``that
are manufactured or imported by a low-volume manufacturer.'' NHTSA
interprets this language to mean that if we were to permit the
manufacture of replica vehicles produced in two or stages, each of the
manufacturers, at all stages, would need to be a low-volume
manufacturer. To our knowledge, incomplete vehicle manufacturers are
typically not low-volume manufacturers. As a practical matter,
therefore, it is likely that vehicles made in two or more stages would
not qualify for the program because of the size of their
manufacturer(s).\14\
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    \14\ NHTSA believes problems with program administration could
also result if incomplete vehicle manufacturers do not need to be
low-volume manufacturers. NHTSA's VIN regulation requires vehicles
manufactured in one stage to have the type of vehicle and bus body
information encoded into the VIN. For vehicles manufactured in two
or more stages, the VIN only identifies the incomplete vehicle
manufacturer. If the incomplete vehicle manufacturer were not a low-
volume manufacturer and the vehicle was completed as a replica motor
vehicle by a final-stage manufacturer which was registered as a low-
volume manufacturer of replica vehicles, the replica vehicle's VIN
would not be encoded to identify the vehicle as a replica vehicle.
This would be a problem because, as noted above, the replica vehicle
information included in the VIN identifies what standards are
applicable to the vehicle.
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    As an alternative to excluding multi-stage manufacturing from the
exemption program, NHTSA is considering allowing joint registration
submissions from two or more manufacturers wishing to manufacture
replica vehicles. This would allow an incomplete vehicle manufacturer,
a final-stage manufacturer, and any intermediate-stage manufacturers to
jointly manufacture up to 325 replica vehicles annually. As a
condition, however, any manufacturer with a joint registration would
not be permitted to participate in the manufacture of any replica
vehicles not covered by that registration. Under a joint registration
program, the incomplete vehicle manufacturers would be required to code
the information about the finished replica vehicle into its VIN. At the
onset of manufacturing, the incomplete vehicle would know, as specified
in the registration submission, the make, model, and model year of the
vehicle the replica resembles.
    NHTSA requests comment on whether the replica vehicle exemption
program should exclude vehicles made in two or more stages or allow
those vehicles to be manufactured under joint registrations from the
incomplete

vehicle manufacturer, final-stage manufacturer and any intermediate
manufacturers. Although NHTSA has concerns about administering the
program to allow multi-stage manufacturing, NHTSA believes either
proposals will ensure that Congress's goal of limiting the exemption to
325 vehicles per manufacturer per year is not circumvented.

IV. Relevant Definitions

a. Low-Volume Manufacturer

    Section 30114(b)(7)(A) defines ``low-volume manufacturer'' as: ``a
motor vehicle manufacturer, other than a person who is registered as an
importer under section 30141 of this title, whose annual worldwide
production, including by a parent or subsidiary of the manufacturer, if
applicable, is not more than 5,000 motor vehicles.'' NHTSA is proposing
to use the term ``replica motor vehicle manufacturer'' in the proposed
Part 586 rather than ``low-volume manufacturer'' to identify the
manufacturers exempted by Part 586 because the latter term is used and
defined differently in several other NHTSA regulations. For example,
``low-volume manufacturer'' is defined in the VIN regulation (Part 565)
as a manufacturer of fewer than 1,000 vehicles of a given type.
    For proposed Part 586, the term ``replica motor vehicle
manufacturer'' would be defined as a low-volume manufacturer that is
registered as a replica motor vehicle manufacturer pursuant to the
requirements in Part 586. The regulation would specify that ``low-
volume manufacturer'' is defined in 49 U.S.C. 30114(b)(7). (Hereinafter
in this NPRM, NHTSA will use the terms ``replica motor vehicle
manufacturer,'' ``replica manufacturer,'' and ``registrant'' to mean a
low-volume manufacturer that is registered under Part 586.)

b. Replica Motor Vehicle

    Section 30114(b)(7)(B) defines ``replica motor vehicle'' as
follows: A motor vehicle produced by a low-volume manufacturer that (i)
is intended to resemble the body of another motor vehicle that was
manufactured not less than 25 years before the manufacture of the
replica motor vehicle; and (ii) is manufactured under a license for the
product configuration, trade dress, trademark, or patent, for the motor
vehicle that is intended to be replicated from the original
manufacturer, its successors or assignees, or current owner of such
product configuration, trade dress, trademark, or patent rights.
    NHTSA is proposing requirements that would provide clarifications
to the definition. First, ``replica motor vehicle'' would be defined,
in part, as a motor vehicle that is produced by a manufacturer meeting
the definition of replica motor vehicle manufacturer under Part 586
that has not yet manufactured 325 replica motor vehicles in that
calendar year. This emphasizes the limit of 325 vehicles. Second, we
propose requirements that will ensure that a replica vehicle meets the
requirement that it be intended to resemble the original vehicle.
Third, we address the provision about the manufacture of the vehicle
pursuant to certain agreements for the intellectual property rights
associated with the original vehicle that is being replicated. The
second and third aspects are discussed below.
1. Requirement To Resemble the Replicated Vehicle
    The FAST Act states that a replica vehicle is a vehicle that is
``intended to resemble the body'' of another motor vehicle that was
manufactured at least 25 years before the replica. NHTSA is proposing
requirements that replica manufacturers demonstrate objective
manifestations of intent.
    To balance objectivity, feasibility, and enforceability, NHTSA is
proposing a requirement that manufacturers submit documentation to
support the assertion that the replica vehicle is intended to resemble
the original. The documentation must demonstrate that the replica
vehicle has the same length, width, and height as the original and must
include images of the original vehicle and design plans for the replica
vehicle.
    One way to ensure that a vehicle is intended to resemble another
vehicle would be to require the measurements and shape of the replica
motor vehicle body to be identical to those of the replicated vehicle.
NHTSA has tentatively decided not to propose requiring replica vehicles
to have the exact same specifications as the original vehicles. All of
the specifications for the original may not be available and some
adjustments may be necessary (e.g., to accommodate modern safety
features). That being said, our research shows that information
regarding the dimensions of popular car models is available. Therefore,
NHTSA believes that requiring the replica vehicles to have the same
height, width, and length of original would be a reasonable and
objective requirement that would help ensure that replica vehicles are
intended to resemble the replicated vehicle.
    In addition to the dimension and shape requirement, NHTSA is
proposing a requirement that each replica vehicle have the same outward
appearance or exterior as the original vehicle. This would mean that
each replica must have the same body styling, shape, and exterior
features as the original. Compliance with this requirement would be
determined based primarily on the location, size, and shape of exterior
features and the overall shape of the body of the vehicle.
    We interpret the Act's reference to ``body'' to mean any part of
the vehicle that is not part of the chassis or frame. Therefore, NHTSA
interprets ``body'' to include, but not be limited to: The exterior
sheet metal and trim, the passenger compartment, trunk, bumpers,
fenders, grill, hood, interior trim, lights and glazing. In making this
interpretation, NHTSA looked at, among other things, its concept of
``body type'' as defined at 49 CFR 565.12. ``Body type'' is defined as
the general configuration or shape of a vehicle distinguished by such
characteristics as the number of doors or windows, cargo-carrying
features and the roofline (e.g., sedan fastback, hatchback). This
definition helped NHTSA identify vehicle features and components that
are part of the vehicle body. Because the definition includes reference
to the shape of the vehicle as well as both exterior and interior
features, NHTSA interprets the concept of ``body'' to include both
exterior and interior characteristics. Although a replica vehicle must
be the same body type as the original vehicle, merely replicating the
number of doors and windows, cargo-carrying features, and the roofline
is not sufficient.
    In each manufacturer's annual report, the manufacturer would
submit: Images of the original vehicle, images of the replica produced,
and full and complete descriptive information, views, and arguments
sufficient to establish that the replica motor vehicles, as
manufactured, resemble the body of the original vehicle.
    Deviations in the appearance of the exterior would be considered
carefully. While reasonable allowances would be made to accommodate
safety equipment, NHTSA would consider any unjustified exterior changes
(e.g., not for safety) as potential indications that the vehicle is not
a replica. If a replica manufacturer wants to make deviations to the
exterior of the vehicle to accommodate safety features, it would be
required to highlight those deviations for NHTSA's consideration.
    To be clear, the statute provides for the creation of an exemption
program

designed to allow old models to be replicated in a less costly way for
low-volume manufacturers. It does not allow manufacturers to experiment
with new motor vehicle designs or produce vehicles that do not resemble
vehicles made not less than 25 years before the replica motor vehicle's
manufacture.
    As the statutory definition refers specifically to the ``body'' of
the original vehicle, we propose that the interior of the replica
vehicle does not need to ``resemble'' that of the original vehicle.
NHTSA believes this approach would allow low-volume manufacturers to
update the interiors to provide modern amenities and safety
improvements.
    NHTSA does not interpret the resemblance or licensing provisions in
the FAST Act as requiring replica vehicle manufacturers to obtain
rights to put all logos and emblems that were on the original vehicle
on the replica vehicle. Although separate from body styling, the logos
and emblems are part of the distinctive external appearance of a
vehicle. Whether vehicle logos and emblems are required to appear as
part of the requirements to produce a vehicle that resembles an
original vehicle is a separate concern from whether replica
manufacturers are required to obtain licenses from rights holders to
use the logos and emblems. NHTSA addresses intellectual property rights
requirements in the next section. In this section, NHTSA requests
comment on whether replica production under these requirements should
mandate the use of the actual logos, emblems and vehicle model names
that appear originally or if something less or different in this area
should apply. To be clear, NHTSA is not proposing to require the use of
vehicle logos and emblems as a requirement of resemblance under the
statute at this time.
    NHTSA considered a provision requiring replica vehicles to resemble
the body of the original vehicle not only cosmetically, but also with
respect to the vehicle's conformance with the ``vehicle'' FMVSS that
applied to the original vehicle. This provision would require at a
minimum, the replica vehicle's body to include the safety features
incorporated in the original vehicle to meet the vehicle FMVSS. The
section titled ``Considered Requirements'' below discusses this further
and the reasons NHTSA decided not to take this approach.
    Because we interpret ``body'' not to include chassis or frame
components, the replica would not need to have the same engine,
transmission or drive axles, or drive train as the original vehicle.
For example, a replica vehicle could be a battery electric vehicle,
while the original vehicle was powered by an internal combustion
engine.
    Further, we propose that the replica vehicle must resemble the body
of another motor vehicle that was manufactured ``for consumer sale''
not less than 25 years before the manufacture of the replica motor
vehicle. The provision ``for consumer sale'' is intended to make clear
that the proposed replica vehicle exemption program does not apply to
prototype or concept vehicles that were never sold to consumers. NHTSA
intends to prevent the replication of prototypes because the vehicles
were never intended for sale to the public. Further, a prototype would
not be eligible for replication under this provision because the Safety
Act defines motor vehicle as a vehicle driven or drawn by mechanical
power and manufactured primarily for use on public streets, roads, and
highways, but does not include a vehicle operated only on a rail
line.\15\ A prototype not intended for sale to the public does not meet
the definition of a vehicle manufactured for use on public streets,
roads, and highways. Therefore, as the FAST Act provision requires that
the replica vehicle resemble another motor vehicle, a vehicle
replicating a prototype would not qualify for the exemption provided by
section 30114(b).
---------------------------------------------------------------------------

    \15\ 49 U.S.C. 30102(a)(7).
---------------------------------------------------------------------------

    NHTSA requests comment on the requirement for replica vehicles to
have the same dimensions and outward appearance as the original vehicle
and whether the logos and emblems from the original vehicle should be
reproduced on each replica vehicle. We also seek comment on the
requirement that manufacturers submit images of the both the original
vehicle and design plans or images of a representative replica vehicle
in the registration submission and requirement to submit images of the
replica vehicle(s) in the annual report.
2. Requirement To Manufacture Under License Agreement for Intellectual
Property Rights
    The FAST Act states that a replica motor vehicle ``is manufactured
under a license for the product configuration, trade dress, trademark,
or patent, for the motor vehicle that is intended to be replicated from
the original manufacturer, its successors or assignees, or current
owner of such product configuration, trade dress, trademark, or patent
rights.'' NHTSA views this provision as requiring replica vehicles
manufactured under this program to be licensed products. This means
that the manufacturer must obtain all legal rights necessary to produce
the replica vehicle from the original manufacturer, its successes or
assignees, or current owner of such intellectual property rights. As is
clear from the comprehensive listing of the type of rights that might
apply in such an effort, while creating an exemption for replica
manufacturers, Congress also sought to protect the rights of the
original manufacturers and their successors.
    NHTSA is defining legal rights to be primarily based on the
external appearance of the vehicle. Under the statute, replica
manufacturers are defined as producing vehicles that are intended to
resemble the body of another motor vehicle. NHTSA is not applying the
definition to require that manufacturers also obtain rights associated
with vehicle mechanics, electronic components or other interior aspects
of a vehicle, unless implicated by the reproduction or otherwise
necessary to ensure that the outward facing appearance of the replica
vehicle resembles the original vehicle. While it is clear that such
rights might exist, in our view, it is not necessary in most situations
to obtain those rights for the purpose of producing a replica. However,
we accept that some types of replica production may require
intellectual property rights to components or other parts that are
separate from the outward facing appearance of a vehicle.
    In this document, NHTSA is not identifying any specific
intellectual property rights that must be obtained by a replica
manufacturer. However, as noted above, the FAST Act includes a
definition of replica vehicle that identifies specifically ``product
configuration, trade dress, trademark, or patent'' as intellectual
property rights that might be licensed from a current rights holder
prior to production. Based on this, replica manufacturers should
consider what intellectual property rights are needed for production
and obtain such rights prior to seeking registration with NHTSA.
    For example, the FAST Act expressly includes trademarks as part of
the rights that a manufacturer would obtain from an original
manufacturer to produce a replica. Trademarks may cover vehicle make
and model names or logos. Since NHTSA is requiring that replica
manufacturers identify the original vehicle(s) it intends to replicate
by make and model name and certify that the replica is intended to
resemble and replicate the original, the manufacturer should consider
whether it is necessary to obtain these rights. Certifying that a

vehicle is intended to resemble another vehicle could implicate
intellectual property rights for trademarked, or otherwise protected,
make or model names. However, NHTSA is not proposing any specific
requirement at this time that replica manufactures affirmatively obtain
these rights in connection with the manufacture of replica vehicles.
NHTSA seeks comment on whether the replica vehicle manufacturer must
obtain a license to use the original vehicle's make and model names and
reserves the right to add a requirement based on the nature of the
comments received.
    NHTSA's role is to ensure that the manufacturers who register under
this program meet the statutory requirements set forth in the FAST Act.
Although NHTSA will review registration applications, NHTSA will not
determine what intellectual property is required to produce a replica
vehicle. Manufacturers remain responsible for performing the due
diligence necessary to determine what rights are needed, and to obtain
relevant rights. In areas of dispute, where the rights of a replica
manufacturer are questioned, NHTSA plans to allow general legal
procedures to take place without involvement.
    That being said, NHTSA wants to ensure that manufacturers seeking
registration under the statute have the legal basis to produce the
replica vehicle. In order to protect rights holders and to mitigate the
chance that lawsuits will emerge from this process, NHTSA is proposing
that, when submitting its registration, manufacturers must provide a
binding certification that attests that they can legally produce each
replica vehicle model they propose to make. This requirement means that
manufacturers must certify that they have determined the legal rights
required and that they have obtained all licenses or permissions
necessary to produce the replica vehicle. Applications that contain a
missing or incomplete certification would be disapproved.
    In addition to the required certification, the manufacturer also
must provide supporting documentation that sets forth a description of
the types of intellectual property that are necessary to produce the
replica vehicle, addressing the status of each of those rights. If the
manufacturer has a license for particular rights, it should provide
documentation to that effect. If intellectual property rights for the
original vehicle are no longer protected, the manufacturer should
include a statement briefly stating the basis for concluding that no
license is required. As an example,\16\ a manufacturer seeking to
replicate a Shelby Cobra must be able to state that it has the legal
right to produce its distinctive body styling or explain why the body
styling is no longer protected and provide support for this position.
The information submitted also must address the fact that ``Shelby''
and ``Cobra'' are both trademarked and that permission may be required
from both Carroll Shelby International and Ford Motor Company to
manufacture the replica vehicle. As shown in the example above, the
intellectual property of one vehicle may be owned by multiple
individuals or entities. In those situations, licenses would need to be
obtained from each one.
---------------------------------------------------------------------------

    \16\ Please note that this example is provided for illustrative
purposes only. The types of intellectual property rights discussed
for the Shelby Cobra are not meant to be authoritative or
exhaustive. It is merely provided as an example of some of the types
of intellectual property rights a prospective replica manufacturer
should look to when obtaining licenses to manufacture a replica.
---------------------------------------------------------------------------

    NHTSA is also proposing clarifying an aspect of the requirement
that replica motor vehicles be manufactured under licensing agreements
for the intellectual property rights of the original vehicles. The
statute is ambiguous concerning the treatment of current owners of
intellectual property rights that wish to manufacture replica vehicles.
That is, the statute could arguably be read to require license
agreements even when the current owner of the intellectual property
also intends to manufacture the replica vehicles. NHTSA believes this
creates an unnecessary step for current rights holders and does not
meet Congress' intent with these requirements. Accordingly, NHTSA
interprets the licensing requirement to apply only when a manufacturer
intending to produce replica vehicles does not own the intellectual
property rights to the original vehicle (which is being replicated).

V. Safety Requirements

a. Equipment FMVSS

    The FMVSS apply to motor vehicles and/or motor vehicle equipment
that are manufactured on or after the effective date of the
standard.\17\ The covered replica vehicles would be exempt from
complying with the ``vehicle'' standards in effect on the date of
manufacture of the replica that apply to new vehicles of the replica's
type (e.g., passenger car, multipurpose passenger vehicle) and
configuration. However, equipment on a replica vehicle would not be
exempt from the ``equipment'' standards in effect on the equipment's
date of manufacture that apply to equipment items on or in the vehicle.
Equipment to which an FMVSS applies must meet the applicable standard
in effect on the equipment's date of manufacture, regardless of whether
it is installed on a conforming vehicle or a vehicle granted a replica
vehicle exemption.
---------------------------------------------------------------------------

    \17\ 49 CFR 571.7(a).
---------------------------------------------------------------------------

    Whether an FMVSS is a ``vehicle'' standard or an ``equipment''
standard is determined by the ``Application'' section of the standard.
If vehicle types are listed in the section, such as ``passenger cars,
multipurpose passenger vehicle, trucks, and buses,'' \18\ the standard
is considered a ``vehicle'' standard. If equipment items are listed in
the section, the standard is an ``equipment'' standard.\19\ A standard
that lists both motor vehicles and equipment items in its applicability
section is considered both a vehicle and an equipment standard.\20\
Replica vehicles would be exempt from any standard or portion of a
standard that applies only to vehicles.
---------------------------------------------------------------------------

    \18\ See e.g., FMVSS No. 101, ``Controls and displays,'' S3,
``Application.''
    \19\ E.g., FMVSS No. 209, ``Seat belt assemblies,'' S2,
``Application,'' states: ``This standard applies to seat belt
assemblies for use in passenger cars, multipurpose passenger
vehicles, trucks, and buses.''
    \20\ E.g., FMVSS No. 205, ``Glazing materials,'' S3,
``Application,'' states, in relevant part: ``This standard applies
to passenger cars, multipurpose passenger vehicles, trucks, buses,
motorcycles, slide-in campers, pickup covers designed to carry
persons while in motor and low speed vehicles, and to glazing
materials for use in those vehicles.''
---------------------------------------------------------------------------

    If an FMVSS that is both a vehicle and an equipment standard has
requirements that apply to vehicles that are vehicle-specific, separate
from requirements that apply to the equipment items, in NHTSA's view
the replica motor vehicles are exempt from the vehicle-specific
requirements but the requirements applying to the motor vehicle
equipment would continue to apply. For example, for FMVSS No. 108,
``Lamps, reflective devices, and associated equipment,'' while the
replica vehicle would not need to comply with vehicle-specific
requirements specifying where lamps must be placed on the vehicle, the
replica vehicle's lamps must meet the applicable portions of the
standard that apply to lamps as equipment items on the date that the
lamps were manufactured. Compliance with the vehicle portion of FMVSS
No. 108 may be difficult or impossible when trying to produce a vehicle
that resembles the appearance of an older vehicle, e.g., the number
and/or location of headlamps and/or tail lamps on the replica might not
meet the specifications of FMVSS No. 108.

    Another notable standard that is both a vehicle and an equipment
standard is FMVSS No. 208, ``Occupant crash protection.'' FMVSS No. 208
is mainly thought of as a vehicle standard requiring the installation
of air bags and seat belts and specifying vehicle crash tests to
evaluate the protective capabilities of those devices. However, section
S9, ``Pressure vessels and explosive devices,'' applies to vessels
designed to contain a pressurized fluid or gas, and to explosive
devices, for use in covered motor vehicles as part of a system designed
to provide protection to occupants in the event of a crash.\21\ If a
replica motor vehicle has a pressure vessel or explosive device, it
must meet the requirements of S9 of FMVSS No. 208.
---------------------------------------------------------------------------

    \21\ 49 CFR 571.208, S9.
---------------------------------------------------------------------------

    To assist the reader, the following is a list of current equipment
FMVSS that would apply to motor vehicle equipment manufactured on
today's date for installation in replica motor vehicles \22\ if the
program were in place today:
---------------------------------------------------------------------------

    \22\ These are the FMVSS applying now to equipment only and to
both vehicles and equipment. This list is provided here for
illustration purposes only and not for purposes of establishing
compliance. The list is also subject to change and/or correction.
Manufacturers are responsible for ensuring the compliance of their
vehicles and/or equipment with all applicable FMVSS and for keeping
current with the FMVSS that apply to their vehicles and/or
equipment.
---------------------------------------------------------------------------

    FMVSS No. 106, Brake hoses;
    FMVSS No. 108, Lamps, reflective devices, and associated equipment;
    FMVSS No. 109, New pneumatic and certain specialty tires;
    FMVSS No. 110, Tire selection and rims and motor home/recreation
vehicle trailer load carrying capacity information for motor vehicles
with a GVWR of 4,536 kilograms (10,000 pounds) or less;
    FMVSS No. 116, Motor vehicle brake fluids;
    FMVSS No. 117, Retreaded pneumatic tires;
    FMVSS No. 119, New pneumatic tires for motor vehicles with a GVWR
of more than 4,536 kilograms (10,000 pounds) and motorcycles;
    FMVSS No. 120, Tire selection and rims and motor home/recreation
vehicle trailer load carrying capacity information for motor vehicles
with a GVWR of more than 4,536 kilograms (10,000 pounds);
    FMVSS No. 125, Warning devices;
    FMVSS No. 129, New non-pneumatic tires for passenger cars;
    FMVSS No. 139, New pneumatic radial tires for light vehicles;
    FMVSS No. 205, Glazing materials;
    FMVSS No. 208, Occupant crash protection, for pressure vessels and
explosive devices;
    FMVSS No. 209, Seat belt assemblies;
    FMVSS No. 213, Child restraint systems;
    FMVSS No. 218, Motorcycle helmets;
    FMVSS No. 223, Rear impact guards;
    FMVSS No. 304, Compressed natural gas fuel container integrity; and
    FMVSS No. 403 Platform lift systems for motor vehicles.

b. Considered Requirements

    In drafting this proposed rulemaking, NHTSA considered adding
requirements to ensure that replicas provide a minimum level of vehicle
safety beyond the performance of discrete equipment items. At this
time, NHTSA is not proposing any additional safety requirements, but
comments are requested to inform future agency action.
    One considered approach would require replica vehicles to resemble
the body of the original vehicle not only cosmetically, but also with
respect to the safety designs and components incorporated into the body
of the original vehicle to meet the vehicle FMVSS applying to that
original vehicle. Features that meet a more current version of a
standard would also be permitted under this approach.\23\
---------------------------------------------------------------------------

    \23\ Note that, as explained above, regarding equipment items
for which an FMVSS applies, the replica vehicle would be required to
have the equipment that met the equipment FMVSS when it was
manufactured.
---------------------------------------------------------------------------

    The language of the FAST Act directs NHTSA to exempt covered
replica vehicles but to limit that exemption only to the current
``vehicle'' FMVSS that apply today to contemporary, newly completed
vehicles. The Act defines ``replica motor vehicle'' in relevant
part,\24\ as ``a motor vehicle produced by a low-volume manufacturer
and that . . . is intended to resemble the body of another motor
vehicle that was manufactured not less than 25 years before the
manufacture of the replica motor vehicle.'' The agency is considering
whether replica vehicles should be required to resemble the body of the
original vehicle not just superficially but also structurally with
respect to designs that met the vehicle FMVSS applying to the original,
but is not proposing to do so at this time.
---------------------------------------------------------------------------

    \24\ 49 U.S.C. 30114(b)(7)(B).
---------------------------------------------------------------------------

c. Safety-Related Defects

    NHTSA emphasizes that a replica vehicle manufacturer's obtaining of
an exemption from the FMVSS applicable to vehicles would have no effect
on the manufacturer's obligation under the Safety Act to recall and
remedy its vehicles if they are found by the manufacturer or NHTSA to
contain a defect that creates an unreasonable risk to safety. Further,
in such instance, manufacturers of covered replica vehicles must comply
with the requirements of 49 U.S.C. 30116 through 30120A relating to
defect reporting and notification. In addition, the FAST Act specifies
that a low-volume manufacturer's registration in the program may be
revoked if the manufacturer fails to comply with requirements or if its
vehicles are found to contain a safety-related defect or if the
manufacturer engages in unlawful conduct that poses a significant
safety risk.

VI. Registration Requirements

    This NPRM proposes requirements to implement the amendments made by
section 24405 of the FAST Act to 49 U.S.C. 30114. Each manufacturer
wishing to manufacture replica motor vehicles under this program must
register, according the requirements in Part 586, as a replica motor
vehicle manufacturer for the calendar year in which the replica motor
vehicle is manufactured. Under 49 U.S.C. 30114(b)(2), low-volume
manufacturers must be registered ``[t]o qualify for an exemption.''
    NHTSA would determine whether a manufacturer is eligible and
permitted to manufacture replica motor vehicles based on the
information the manufacturer provides in its registration documents. We
propose that manufacturers would register using the NHTSA Product
Information Catalog and Vehicle Listing (vPIC) platform (https://vpic.nhtsa.dot.gov/). We request comment on whether submissions should
be allowed to be submitted by mail as well.
    We propose that manufacturers must submit information sufficient to
establish that their annual world-wide production, including by a
parent or subsidiary of the manufacturer, if applicable, is not more
than 5,000 motor vehicles, and a statement certifying to that effect,
including the total number of motor vehicles produced by or on behalf
of the registrant in the 12-month prior to filing the registration.
    NHTSA proposes requiring that each manufacturer provide
information, in its registration submission, about the replica vehicle
it intends to manufacture, including a statement identifying the
original vehicle(s) the manufacturer intends to replicate by make,
model, and model year. The manufacturer must submit images of the

front, rear, and side views of the original vehicle's exterior.
    The manufacturer would also need to provide documents showing that
it has obtained the intellectual property rights to produce the replica
vehicle, documents to support that it has done so, and a statement
certifying to that effect. Proof of such rights could be shown by
furnishing a license for the product configuration, trade dress,
trademark, or patent, for the motor vehicle that is intended to be
replicated from the original manufacturer, its successors or assignees,
or the current owner of such product configuration, trade dress,
trademark, or patent. As discussed above this documentation could also
include a statement as to why obtaining licenses for certain
intellectual property is not required.
    The manufacturer would also need to certify that it will not
manufacture more than the number of replica motor vehicles covered by
the requested exemption, a number not more than 325 replica motor
vehicles in a calendar year. NHTSA interprets this limitation to mean
that a manufacturer is limited to 325 replica vehicles, regardless of
whether it is manufacturing replicas of different makes and models of
vehicles. NHTSA also interprets this limitation to apply to
manufacturers under common ownership. For example, if a parent company
or individual owns two low-volume manufacturers, the 325-limit would
apply to all manufacturers under common ownership. Each low-volume
manufacturer would not be permitted to manufacture 325 replicas.
Instead, the two manufacturers under common ownership would need to
submit one registration submission and collectively cannot manufacture
more than 325 replica vehicles in any given calendar year. NHTSA
interprets the statute this way to ensure that the 325-replica limit
set by Congress is not circumvented.
    Further, the manufacturer would need to submit information required
by other administrative regulations, including all information required
by 49 CFR part 566 to identify itself to NHTSA as a replica motor
vehicle manufacturer (see below for proposed amendments to Part 566),
VIN-deciphering information required by 49 CFR part 565, and a
designation of a permanent resident of the United States as its agent
for service of process if the manufacturer is not located in the United
States (49 CFR part 551, subpart D). (NHTSA does not believe that any
changes to the regulation at 49 CFR part 551, subpart D for
manufacturers of replica motor vehicles are needed.)
    49 U.S.C. 30114(b)(5) specifies that NHTSA has 90 days to review
and approve or deny a registration. This new subsection also provides
an additional 30 days if the registration is determined to be
incomplete. We anticipate setting up the program so that registration
under Part 586 on the vPIC portal provides an acknowledgment of receipt
of the registration to the manufacturer when the registration is
submitted. As some of the information will be provided by the
manufacturer in attachments, NHTSA will review the submission,
including attachments, within 90 days of acknowledging receipt to
ensure that the registration is complete. If the registration is
incomplete, NHTSA will inform the manufacturer that the registration is
incomplete via email. NHTSA is proposing to give manufacturer 60 days
from the date of NHTSA's email to submit the necessary information to
complete the registration. If the necessary information is not
submitted within 60 days, the registration will be denied. NHTSA
requests comment on whether this 60-day period to respond is
appropriate. The manufacturer may resubmit the denied registration
(presumably, the resubmitted registration will include the information
NHTSA identified as missing from the prior application) but the 90-day
clock will reset.\25\
---------------------------------------------------------------------------

    \25\ Repetitious incomplete or inadequate registrations will be
denied. For example, if a manufacturer submits the same, previously-
denied registration in identical form a second time, NHTSA may deny
it without going through the step of asking for more information.
---------------------------------------------------------------------------

    A manufacturer may submit additional information to supplement its
registration per NHTSA's notification of an incomplete registration
(within 60 days of receipt of such notice), or may submit additional
information on its own initiative. In these instances, NHTSA will have
30 additional days to review the amended registration. That is, these
30 days will be added to any remaining days from the initial 90-day
review period. If the submission is still incomplete, NHTSA will deny
the registration.
    On receipt of a complete registration, NHTSA will review and
approve or deny the registration. 49 U.S.C. 30114(b)(5) states that any
registration not approved or denied within 90 days after initial
submission, or 120 days if the registration submitted is incomplete,
shall be deemed approved.
    We propose that a low-volume manufacturer is not considered
registered with NHTSA unless the manufacturer receives confirmation
from NHTSA that its registration is approved. A manufacturer whose
registration is not approved or denied within the allotted time, who
believes its registration is thus deemed approved, must obtain
confirmation of the approval from NHTSA. When NHTSA confirms the
approval, NHTSA would add the manufacturer to the up-to-date list of
registrants.
    The reason for requiring that manufacturers obtain confirmation of
approvals in the circumstances describe above is to better safeguard
the integrity of the exemption program against confusion and fraud.
This approach would avoid situations in which a manufacturer might
assume its registration was deemed to be approved when in fact it was
never received by NHTSA. An up-to-date list of registrants will show
the ``deemed to be approved'' registrants, and the confirmation process
better establishes a means of communication between NHTSA and the
manufacturer to achieve this end. The list will be important to enable
members of the public to check whether the low-volume manufacturer they
are dealing with in fact qualifies for an exemption under this replica
vehicle program and which vehicles are covered by the exemption. The
list will also provide NHTSA with a strong enforcement mechanism to
monitor if manufacturers are lawfully presenting themselves as
registrants and to check which vehicles they are offering for sale, a
mechanism that would better ensure that only vehicles covered by
approved and deemed to be approved registrations are being manufactured
and sold.
    NHTSA is proposing that, in the case that a registration is deemed
approved, NHTSA may request additional information from a ``deemed
approved'' replica manufacturer when the registration submission is
incomplete or does not meet the requirements in the new Part 586. NHTSA
is proposing that, when notified of the submission's shortcomings, the
manufacturer would have 60 days to submit information to correct and/or
complete the registration. If the manufacturer fails to submit the
requisite information, NHTSA may revoke the registration.
    NHTSA requests comment on requirement for ``deemed approved''
replica manufacturers to respond within 60 days. NHTSA also requests
comment on what actions NHTSA should take in regards to revoking a
``deemed approved'' replica manufacturer. For purposes of this NPRM,
NHTSA is proposing to revoke a registration if the manufacturer fails
to respond within the allotted time. At NHTSA's discretion, additional
time may be provided if the deficiencies of the registration are deemed
correctable. And, consideration would be provided for the length of
time that NHTSA took to identify the

deficiency and the extent that the manufacturer should have been aware
that the registration did not comply with the requirements.
    49 U.S.C. 30114(b)(5) specifies that NHTSA has the authority to
revoke a registration based on a failure to comply with requirements or
a finding of a safety-related defect or unlawful conduct.
    Section 30114(b)(5) also states that an exemption granted to a low-
volume manufacturer may not be transferred to any other person, and
expires at the end of the calendar year for which it was granted with
respect to any volume authorized by the exemption that was not applied
by the manufacturer to vehicles built during that calendar year. NHTSA
understands 49 U.S.C. 30114(b)(5) to address the vehicles that could
have been made under an exemption in a calendar year but which were
not, and not as requiring that manufacturers must re-register (renew
their registrations) annually. NHTSA has tentatively decided that
registrants may carry forward their registration by informing NHTSA in
an annual report (discussed below) of their intent to continue
manufacturing the vehicles covered by the approved registration, and
need not formally re-register annually at the end of the calendar year
concerning those covered vehicles. If an approved replica manufacturer
wishes to manufacture a different replica vehicle or make modifications
to a replica covered by an existing registration, the registrant must
submit an update to their existing registration with all necessary
supporting documentation. 49 U.S.C. 30114(b)(5) specifies that NHTSA
must maintain an up-to-date list of registrants and a list of the make
and model of exempted motor vehicles on at least an annual basis and
publish such list in the Federal Register or on a website operated by
NHTSA. We anticipate posting such a list on NHTSA's website where it
can be easily accessed and updated.

VII. Other Administrative Requirements

a. Manufacturer Identification Requirements (49 CFR Part 566)

    NHTSA is proposing an amendment to Part 566 to list replica motor
vehicles among the types of vehicles manufactured. Manufacturers who
have already submitted information under Part 566 would be required to
update their information as required by Sec.  566.6 before
manufacturing replica vehicles.
    The addition of replica motor vehicles to the types of vehicles is
merely for identifying the vehicle as a replica and does not supplant
the vehicle's type for application of FMVSS. The manufacturer of a
replica vehicle would determine which standards the replica vehicle is
exempt from by looking at the standards for a vehicle of that body type
and the VIN and certification labels would reflect that the vehicle is
a replica of a specific body type (e.g., replica passenger car).
    In addition, NHTSA is proposing to update \26\ Sec.  566.5 to
indicate that the required information for all manufacturers may either
be submitted via mail or the vPIC portal.\27\ Replica motor vehicle
manufacturers, however, would be required under Sec.  586.6 to submit
the required Part 566 information via vPIC. Due to the potential for
delay when filing outside the vPIC portal, either due to errors or
delivery delays, most, if not all Part 566 manufacturer identification
entries are currently being submitted on vPIC.
---------------------------------------------------------------------------

    \26\ The existing address in this section is an out-of-date
address for NHTSA.
    \27\ https://vpic.nhtsa.dot.gov/.
---------------------------------------------------------------------------

b. Manufacturer Identifier

    Replica motor vehicle manufacturers would need to obtain a
manufacturer identifier in this program, like other manufacturers are
currently required to do. Currently, a manufacturer that intends to
manufacture motor vehicles for sale or introduction into interstate
commerce in the United States must obtain a manufacturer identifier
from SAE International. The manufacturer identifier is incorporated
into the vehicle's VIN (see section below). NHTSA has a contract with
SAE International to assign manufacturer identifiers to manufacturers
in the United States. Manufacturers would contact SAE International
directly (and not NHTSA) to request the assignment of a manufacturer
identifier. They would do so by telephoning<PHONE_NUMBER> or by writing
to: SAE International, 400 Commonwealth Avenue, Warrendale, PA 15096,
Attention: WMI Coordinator.

c. VIN

    NHTSA's regulations at 49 CFR part 565 require, among other things,
a motor vehicle manufacturer to assign each motor vehicle manufactured
for sale in the United States a 17-character VIN that uniquely
identifies the vehicle. Under regulations administered by NHTSA, a
vehicle identification number is ``a series of Arabic numbers and Roman
letters that is assigned to a motor vehicle for identification
purposes.'' (49 CFR 565.12(r)).
    VINs serve a variety of public safety purposes. One of the original
purposes of the VIN requirements was to enhance public safety by
deterring vehicle theft based on the assumption that drivers of stolen
vehicles are more likely to operate those vehicles unsafety and thus be
involved in vehicle crashes.\28\ The current VIN system continues to
serve this purpose and, as stated in Part 565, also serves ``to
increase the accuracy and efficiency of vehicle recall campaigns.''
\29\ The VIN has also become the key identifier in data systems that
track such things as compliance with Federal importation regulations,
vehicle registrations, insurance coverage, and motor vehicle crashes.
Entities that today utilize VINs in data systems include NHTSA, state
motor vehicle departments, law enforcement agencies, insurance
companies, organizations involved in motor vehicle research, and
manufacturers.\30\
---------------------------------------------------------------------------

    \28\ 73 FR 23367-01, September 30, 2008.
    \29\ 49 CFR 565.10.
    \30\ 73 FR 23367-01, September 30, 2008.
---------------------------------------------------------------------------

    NHTSA has considered whether changes are required to the
regulations at 49 CFR part 565 for replica motor vehicles. The first
section of the VIN (positions 1-3) uniquely identifies the manufacturer
and type of the motor vehicle if the manufacturer is a high-volume
manufacturer. If the manufacturer is a low-volume manufacturer,
positions one through three along with positions twelve through
fourteen in the VIN must uniquely identify the manufacturer and the
type of the motor vehicle. The manufacturer identifier occupies the
first three characters of the VIN for manufacturers that produce 1,000
or more vehicles of a specified type within a model year, and positions
1, 2, 3, 12, 13, and 14 of VINs assigned by manufacturers that produce
less than 1,000 vehicles of a specified type of motor vehicle per model
year. Because this proposal would create a new vehicle type for replica
motor vehicles in Part 565 and each manufacturer is limited to
manufacturing 325 replica vehicles per year, all manufacturers of
replica vehicles would need to obtain new manufacturer identifiers that
contain six characters. Therefore, even existing manufacturers who are
manufacturing passenger cars would need to obtain new manufacturer
identifier to manufacture replica passenger cars. However, the same
identifier could be used for manufacturing different vehicle types. The
vehicle type of the replica vehicles (e.g., passenger car, MPV) would
be

indicated in positions four through eight.
    The second section of the VIN (positions 4-8) is known as the
``Vehicle Descriptor Section.'' This section contains information on
vehicle attributes, which vary based on the vehicle's type
classification (i.e., passenger car, multipurpose passenger vehicle,
truck, bus, trailer, motorcycle, low speed vehicle).
    The third section (position 9) is a check digit, used to determine
whether the remainder of the VIN is properly configured.
    The fourth section (positions 10-17) contains a variety of
information. Position 10 represents the vehicle's model year. NHTSA
interprets model year for the purposes of this replica vehicle program
as the calendar year in which the vehicle was manufactured, and not, in
the case of replica motor vehicles, the year the vehicle being
replicated was originally manufactured. While these vehicles will be
exempt from vehicle FMVSS, this information will be important for
enforcement purposes. As discussed below, NHTSA is also required to
include reporting requirements in this regulation, and NHTSA has
proposed requirements that distinguish the year of manufacture from the
year the replicated vehicle was manufactured.
    Position 11 is the plant code, assigned by the manufacturer and
reported to NHTSA.
    For manufacturers of replica motor vehicles, positions 12-14 will
be the remainder of the manufacturer identifier, which, with the
characters in positions 1-3 of the VIN, uniquely identify the
manufacturer and vehicle type for manufacturers that produce less than
1,000 vehicles of that type per model year. Positions 15-17 are the
numbers sequentially assigned by the manufacturer during the production
process.
    NHTSA is proposing to amend the second section (Vehicle Descriptor
Section), positions 4-8, of the VIN to include specific vehicle
attributes for replica vehicles. Within positions 4-8, the manufacturer
must identify, in addition to the attributes specified in table I of
Part 565 for the vehicle's type classification (i.e., passenger car,
multipurpose passenger vehicle, truck bus) that the vehicle is a
replica.
    This information would be important to NHTSA for tracking the
safety of the replica motor vehicles and for other purposes. It also
may be desirable to the States, which are permitted to regulate these
vehicles under the provisions of the FAST Act.
    NHTSA is also proposing amendments to Table I of Sec.  565.15 which
would require replica manufacturers to encode the make, model, and
model year of the original replicated vehicle into the replica
vehicle's VIN.
    NHTSA is requesting comment on the proposed VIN requirements for
replica motor vehicles.

d. Certification

    Section 30114(b)(3)(a) directs NHTSA to require low-volume
manufacturers to affix permanent labels to the exempted vehicles that
identify the specified standards and regulations for which the vehicle
is exempt, states that the vehicle is a replica, and designates the
model year such vehicle replicates. NHTSA considered whether the label
should be conspicuous or whether it should be in the same location as
the certification labels required under 49 CFR part 567. While NHTSA
believes that consumers should be provided a conspicuous warning label,
NHTSA believes that aim is better accomplished by a requirement that
manufacturers affix a temporary label, as discussed below.
    To satisfy the requirement to have a permanent label, NHTSA is
proposing requirements similar to those for certification labels that
are required under 49 CFR part 567. NHTSA believes these labels will
provide necessary information about the safety of the replica vehicle
without detracting from the customer experience. NHTSA requests
comments regarding the permanent label's placement and content
requirements.
    49 CFR part 567 includes permanent labeling requirements for motor
vehicles to implement the certification requirements of 49 U.S.C.
30115. This NPRM proposes amendments to Part 567 to include a specific
provision for certifying replica vehicles. Most of the requirements
would be the same as those for non-replica vehicles.
    For example, NHTSA is first proposing that Sec.  567.4(a) be
amended to include ``replica motor vehicles'' in the list of vehicles
that are exempt from those requirements. Section 567.3 would be amended
to include a definition of ``replica motor vehicles'' as discussed
above. Next, new requirements for replica motor vehicles would be added
in a similar format to the existing requirements. NHTSA is proposing to
include the requirements in a new Sec.  567.8. Many of the requirements
would be the same or similar to those for other vehicles, such as the
location on the vehicle where the label is to be affixed, as well as
the contents of the label, including manufacturer name, month and year
of manufacture, VIN, GVWR, vehicle type classification, and gross
vehicle and gross axle weight ratings.
    However, as amended by the FAST Act, 49 U.S.C. 30114(b)(3)(A)
specifies that NHTSA shall require low-volume manufacturers to affix a
permanent label to motor vehicles produced pursuant to a replica
vehicle exemption. The label must identify the specified standards and
regulations from which the replica vehicle is exempt under 49 U.S.C.
30112(a), state that the vehicle is a replica, and designate the model
year such vehicle replicates. NHTSA is proposing that the requirements
for permanent labeling be incorporated into the requirements for
certification labels under 49 CFR part 567. NHTSA is proposing to
incorporate the permanent label requirements for replica motor vehicles
in the certification section to avoid duplicative requirements.
    Details of the proposed permanent label requirements are discussed
in a section below.

e. Importation of Replica Motor Vehicles

    Imported replica vehicles will be subject to requirements in Part
591, Importation of Vehicles and Equipment Subject to Federal Safety,
Bumper and Theft Prevention Standards. Section 591.5, Declarations
required for importation, requires importers to file declarations and
documentations with U.S. Customs and Border Protection at the time
vehicles or items of motor vehicle equipment are imported. Consistent
with NHTSA's treatment of vehicles that are subject to exemptions under
Part 555, Temporary Exemption from Motor Vehicle Safety and Bumper
Standards, replica vehicles will be permitted to be imported pursuant
to 49 CFR 591.5(b). This means that importers will mark box ``2A'' on
NHTSA's HS-7 declaration form, Importation of Motor Vehicles and Motor
Vehicle Equipment Subject to Federal Motor Vehicle Safety, Bumper when
importing a replica motor vehicle. NHTSA requests comment on whether
the agency should amend 49 CFR 591.5 to provide clarity and include
specific language that states that replica vehicles may be imported
pursuant to a declaration under 49 CFR 591.5(b).

VIII. Labels and Other Consumer Disclosures

a. Permanent Label

    As amended by the FAST Act, 49 U.S.C. 30114(b)(3)(A) specifies that
NHTSA shall require low-volume manufacturers to affix a permanent label
to motor vehicles produced pursuant to

a replica vehicle exemption. NHTSA is proposing that the requirements
for replica labeling be incorporated into the requirements for
certification labels under 49 CFR part 567 because Part 567 includes
permanent labeling requirements for motor vehicles pertaining to
certification to the FMVSS.
    Part 567 currently requires manufacturers to certify that the
vehicle conforms to all applicable FMVSS. This NPRM proposes a
different statement for replica vehicles. For replicas, the label would
state that the vehicle is a replica, and designate the model year such
vehicle replicates. The label would state that the vehicle is exempt
from FMVSS that apply to a vehicle of its type and include a list of
all vehicle FMVSS and regulations the vehicle does not meet.

b. Written Notice to Dealers and First Purchasers

    The FAST Act permits NHTSA to require registrants to provide
``written notice of the exemption'' to dealers and first purchasers of
replica vehicles.\31\ Accordingly, NHTSA proposes to require a written
disclosure to dealers and first purchasers of these vehicles which
would consist of a list of the FMVSS and regulations from which the
vehicle is exempt. To better inform consumers, NHTSA is proposing that
the manufacturers provide a ``purpose'' statement for each standard and
regulation from which the vehicle is exempt. The purpose statement
would assist consumers in understanding the safety implications of the
exemptions.
---------------------------------------------------------------------------

    \31\ 49 U.S.C. 30114(b)(3)(B).
---------------------------------------------------------------------------

    NHTSA has proposed purpose statements for each of the standards and
regulations covered by the replica vehicle exemptions for inclusion in
a table to Part 586. NHTSA is proposing using slight revisions of the
existing ``purpose'' statements set forth at the beginning of each
NHTSA regulation and standard in the CFR. NHTSA is asking for comments
about whether the statements are easy to understand. The agency also
requests comment on whether the table is needed or desirable.
Registrants could research the CFR and provide the purpose statements
on their own without NHTSA's intervention and without the need for
NHTSA to conduct rulemaking to amend the table as necessary.

c. Temporary Label

    To draw the potential purchaser's attention to the written
disclosure and to better inform consumers about the safety implications
of their purchasing decisions, NHTSA is proposing a requirement that
each replica vehicle have a temporary label on the dashboard or
steering wheel hub, similar to the temporary air bag warning required
by 49 CFR 571.208 S4.5.1(e) when the vehicle is offered for sale. NHTSA
is proposing that the label conform to the color and size requirements
of 49 CFR 571.208 S4.5.1(e)(1)(i) and (ii), and include the following
statement in at least 20-point font: ``This motor vehicle does not
conform to all applicable Federal motor vehicle safety standards. Refer
to the written disclosures provided for further information.'' Comments
are requested on whether there are more effective means of warning
consumers about the replica vehicles' nonconformance with the
applicable FMVSS, such as whether the warning should also be provided
on advertisements and other marketing materials for the vehicles. NHTSA
also requests comment on the appropriate minimum lettering size for the
temporary warning label. Specifically, NHTSA requests comment on
whether the requirement that the warning statement be in 20-point font
or larger is appropriate to ensure legibility and conspicuity.

IX. Reporting

    Under 49 U.S.C. 30114(b)(3)(C), NHTSA must require replica
manufacturers to submit an annual report providing the number and
description of motor vehicles exempted as replica motor vehicles,
including a list of the exemptions included on the mandatory label
described above. Because of this requirement, NHTSA is proposing to
specify that ``replica model year'' for replica motor vehicles must
correspond to the calendar year in which the replica was manufactured.
This would differ from ``Original model year of a replicated vehicle,''
which would be the year in which the vehicle being replicated was
originally manufactured.
    NHTSA is also proposing that annual reports must be submitted
within 60 days of the end of the calendar year. Because these vehicles
would be produced in limited quantities, NHTSA believes that the
information for the report could be entered after each vehicle is
manufactured and that meeting a 60-day deadline for submitting the
report at the end of the calendar year is therefore reasonable.
    NHTSA is proposing to require that annual reports include:

--Manufacturer's legal name;
--Manufacturer's address and phone number and email address;
--The calendar year for which the annual report is submitted (replica
model year) and the total number of replica vehicles manufactured
during that year.
--List of the different versions of replica motor vehicles produced by
make, model, and original model year of replicated vehicle.
--List of the FMVSS and regulations from which each version of replica
vehicle (by make, model, and original model year of replicated vehicle)
is exempt.
--Images of the front, rear, and side views of the original vehicle(s)
replicated, of both the vehicle's exterior, and images of the same
views of a representative replica manufactured to resemble each
original vehicle.
--Full complete descriptive information, views, and arguments
sufficient to establish that the replica motor vehicles, as
manufactured, resemble the body of the original vehicle;
--The complete Vehicle Identification Number (VIN) of each replica
vehicle manufactured.
--Statement as to whether the replica vehicle contains any of the
following vehicle safety features:
    [cir] Air bags
    [cir] Seat belts
    [cir] Advanced safety systems/passive safety systems (listed w/
locations)
    [cir] Electronic Stability Control
    [cir] Rear visibility camera system

    Statement of whether to the registrant will be manufacturing the
same replica motor vehicle(s) in the next calendar year and if so, how
many vehicles it will be manufacturing.\32\ If the manufacturer intends
to continue manufacturing replica motor vehicle(s), the manufacturer
must also submit information sufficient to establish that their annual
world-wide production, including by a parent or subsidiary of the
manufacturer, if applicable, is not more than 5,000 motor vehicles, and
a statement certifying to that effect, including the total number of
motor vehicles produced by or on behalf of the registrant in the 12-
month prior to filing the registration.
---------------------------------------------------------------------------

    \32\ Section 30114(b)(5) states that an exemption shall expire
at the end of the calendar year for which it was granted with
respect to any volume authorized by the exemption that was not
applied by the low-volume manufacturer to vehicles built during that
calendar year. NHTSA has tentatively decided not to require
manufacturers to re-register (renew their registrations) annually,
but instead may carry forward their registration by informing NHTSA
in the annual report of their intent to continue manufacturing the
vehicles covered by the approved registration.
---------------------------------------------------------------------------

    NHTSA is proposing that the annual report must be submitted using
the NHTSA Product Information Catalog and Vehicle Listing (vPIC). The
website

would be updated to accommodate the submission of the annual replica
vehicle reports. NHTSA believes that the use of the online portal would
be less burdensome than requiring manufacturers to submit their annual
reports by mail. Online submission of the annual reports would also
assist NHTSA in complying with the FAST Act requirement that NHTSA
maintain a list of manufacturers of replica motor vehicles and the make
and model of exempted vehicles being produced. NHTSA intends to
maintain this list on its website as allowed by new subsection (b)(5)
added to 49 U.S.C. 30114 by Sec. 24405(a) of the FAST Act. NHTSA
requests comments on whether vPIC should be mandated for annual reports
or whether manufacturers should have the option of sending them by
mail.
    NHTSA is proposing requiring a list of the complete VINs of all
replica vehicles to be included in the annual report. This requirement
will assist NHTSA in enforcing the annual limit of 325 replica vehicles
per manufacturer. And, as manufacturers already maintain lists of all
VINs manufactured in a given year, the burden should be very
minimal.\33\
---------------------------------------------------------------------------

    \33\ Although manufacturers keep lists for business purposes, it
is also required by 49 CFR part 573, Defect and Non-Compliance
Responsibility and Reports.
---------------------------------------------------------------------------

X. Revocation of Registrations

    New subsection (b)(5) added to 49 U.S.C. 30114 by Sec. 24405 of the
FAST Act specifies that NHTSA has the authority to revoke a
registration ``based on a failure to comply with requirements set forth
in this subsection [of the FAST Act] or a finding by the Secretary of a
safety-related defect or unlawful conduct under this chapter that poses
a significant safety risk.'' NHTSA is including this provision in the
proposed Part 586 regulation.\34\
---------------------------------------------------------------------------

    \34\ As stated in section 30114(b)(8), a low-volume manufacturer
shall be considered a motor vehicle manufacturer for purposes of
Title 49 subtitle VI parts A and C except as expressly provided.
Therefore, replica manufacturers are subject to the same
requirements as other manufacturers unless there is an express
provision that exempts them, as replica manufacturers, from the
requirement. Designation as a low-volume manufacturer under section
30114(b)(8) only applies in the context of exemptions for
manufacturers of replica motor vehicles. Section 30114(b)(8) states
that replica manufacturers will not be exempt from the requirements
of 49 U.S.C. 30116 through 30120A which provide requirements for
defects and noncompliance reporting, notification and remedies.
NHTSA is not proposing any regulatory changes based on this
provision. NHTSA requests comments about whether regulatory changes
are necessary for clarification. If commenters believe regulatory
changes are desirable, NHTSA requests that commenters provide
details on what changes should be made.
---------------------------------------------------------------------------

    NHTSA would like to emphasize that revocation of registrations is
not NHTSA's only means of enforcement. NHTSA's defect and recall
authority under 49 U.S.C. 30116 through 30120A continues to apply.

XI. Overview of Benefits and Costs

    NHTSA has developed a Preliminary Regulatory Evaluation (PRE) that
discusses the potential costs, benefits and other impacts of this
regulatory action. The PRE is available in the docket for this NPRM and
may be obtained by downloading it or by contacting Docket Management at
the address or telephone number provided at the beginning of this
document.
    The table below provides a summary of the various benefits and
costs that may accrue from this rule, as well as the various factors
that define the range of possible outcomes.

       Table 1--Ranges of Outcomes for Benefit and Cost Categories
------------------------------------------------------------------------
            Element                  Low case            High case
------------------------------------------------------------------------
Benefits:
    Incremental consumer        Not estimated:     Not estimated: If
     surplus.                    Incremental        replicas
                                 consumer surplus   manufactured under
                                 would be low if    the rule differ
                                 substitutes such   greatly in price and/
                                 as luxury sports   or transaction cost
                                 cars and kit       from luxury sports
                                 cars are viable    cars and kit cars--
                                 alternatives for   thus behave more
                                 consumers.         like a unique
                                                    product--incremental
                                                    consumer surplus
                                                    could be high.
    Incremental fatalities,     Estimated:         Estimated: Fatalities
     injuries and property       Fatalities would   would be higher if:
     damage.                     be lower if:       Voluntary compliance
                                 Voluntary          is low; production
                                 compliance with    is high; and if VMT
                                 safety standards   is high. Not
                                 is high;           Estimated:
                                 production of      Fatalities would be
                                 replicas is on     higher if replicas
                                 the low end; and   function as a new
                                 VMT by replicas    market that attracts
                                 is also low. Not   new consumers--
                                 Estimated:         implying
                                 Fatalities will    substitution from
                                 be lower if        more compliant
                                 replicas           vehicles--or, if
                                 primarily          replica vehicle
                                 function as a      drivers choose to
                                 substitute for     increase their VMT
                                 kit cars.          specifically to
                                                    enjoy the replica
                                                    vehicle, rather than
                                                    as a substitute for
                                                    mileage driven in
                                                    substitute vehicles.
    Innovation................  Not Estimated:     Not Estimated:
                                 The proposed       Manufacturers
                                 rule is            producing under the
                                 primarily used     proposed rule seek
                                 to replicate old   to incorporate some
                                 technology.        newer technologies
                                                    into replica
                                                    vehicles. Could lead
                                                    to innovation to
                                                    make technology fit
                                                    into older designs.
                                                    (e.g.,
                                                    miniaturization).
    Incremental employment      Not Estimated:     Not Estimated: If kit
     impacts.                    Job losses from    car production
                                 contractors and    remains relatively
                                 small businesses   stable and replica
                                 that assemble      car production
                                 kit cars are       increases
                                 around or equal    significantly
                                 to the job gains   (consistent with
                                 for small          case where replicas
                                 replica            are a new and
                                 manufacturers.     separate product
                                                    category),
                                                    employment effects
                                                    would be greater.
Costs:
    Mitigated compliance costs  Estimated:         Not Estimated: Would
                                 Captures the       consider the avoided
                                 cost of            costs of forcing
                                 installing         required safety
                                 required safety    technologies into
                                 technologies on    older vehicle
                                 an average         designs.
                                 modern car.
    Incremental fuel use......  Not Estimated:     Not Estimated:
                                 Reflects low VMT.  Reflects high VMT.
    Reporting costs...........  Estimated:         Estimated: Reflects
                                 Reflects low       high bound of
                                 bound of           production.
                                 production.
------------------------------------------------------------------------

    NHTSA requests comment on the framework for the benefit cost
analysis and preliminary estimates included in the analysis.

XII. Effective Date

    NHTSA proposes to make the changes discussed in this NPRM effective
immediately upon publication of the final rule in the Federal Register.
The Administrative Procedure Act (APA) states that a rule cannot be
made effective less than 30 days after publication, unless the rule
falls under one of three enumerated exceptions. One of these exceptions
is for a rule that ``grants or recognizes an exemption or relieves a
restriction.'' \35\ This rule would fall under this exception because
it would create a process through which manufacturers could obtain
exemptions to manufacture replica vehicles.
---------------------------------------------------------------------------

    \35\ 5 U.S.C. 553(d)(1).
---------------------------------------------------------------------------

XIII. Regulatory Notices and Analyses

Executive Orders 12866 and 13563 and DOT Regulatory Policies and
Procedures

    OMB has determined that this rule is nonsignificant. The amendments
proposed by this NPRM implement an exemption program mandated by
section 24405 of the FAST Act for low-volume manufacturers involving a
relatively small number of motor vehicles. Potential benefits include
costs avoided by low-volume manufacturers when producing replica
vehicles that would not be required to meet all the Federal regulations
and FMVSS applicable to new motor vehicles. Potential benefits could
also include increased consumer surplus, reduced barriers to
innovation, and increased incremental employment impacts among small
manufacturers. Safety impacts could result from crashes if replica
vehicles do not meet certain safety standards. However, we expect the
program to have no significant effect on the national economy, due to
the small number of vehicles affected by this program.

Regulatory Reform (E.O. 13771 and E.O. 13783)

    NHTSA has reviewed this proposed rule for compliance with E.O.
13771 (``Reducing Regulation and Controlling Regulatory Costs''), which
requires Federal agencies to offset the number and costs of new
regulations through the repeal, revocation, and revision of existing
regulations. As provided in OMB Memorandum M-17-21 (``Implementing E.O.
13771''), a ``regulatory action'' subject to E.O. is a significant
regulatory action as defined in section 3(f) of E.O. 12866 that has
been finalized and that imposes total costs greater than zero.
    For the reasons identified in the previous sections, this proposed
rule is not a significant regulatory action under E.O. 12866 and is a
``deregulatory action'' under E.O. 13771 because its total costs to
manufacturers will be less than zero.
    Details on the estimated cost savings of this proposed rule are
presented in the Preliminary Regulatory Evaluation. The document
evaluates the economic impact, in terms of benefits and costs, on
Federal, State, and local governments, as well as private entities
regulated under this action and the public, as required by E.O. 12866
and E.O. 13563.

National Environmental Policy Act

    The National Environmental Policy Act of 1969 (NEPA) (42 U.S.C.
4321-4347) requires Federal agencies to consider the environmental
impacts of proposed major Federal actions significantly affecting the
quality of the human environment, as well as the impacts of
alternatives to the proposed action.\36\ The FAST Act requires NHTSA to
establish an exemption program for replica vehicles, and this action
implements that exemption program and the procedural mandates in the
Act. The aspects of the program under the jurisdiction of NHTSA that
could have environmental impacts include the exemption from the FMVSS
(including those that may affect motor vehicle fuel economy) and the
exemption from average fuel economy standards that are both
specifically prescribed by statute. Although the PRE considers the
impacts of this proposal, NHTSA does not have the authority to consider
alternatives that would subject replica vehicles covered under this
program to the FMVSS or the average fuel economy standards in 49 U.S.C.
32902. Therefore, NHTSA is precluded from considering the environmental
and safety impacts of those aspects of the replica vehicle exemption
program in its rulemaking and is not required to address them in its
Environmental Assessment.
---------------------------------------------------------------------------

    \36\ 42 U.S.C. 4332(2)(C).
---------------------------------------------------------------------------

    When a Federal agency prepares an environmental assessment, the
Council on Environmental Quality (CEQ) NEPA implementing regulations
(40 CFR parts 1500 through 1508) require it to ``include brief
discussions of the need for the proposal, of alternatives [. . .], of
the environmental impacts of the proposed action and alternatives, and
a listing of agencies and persons consulted.'' \37\ This section serves
as the agency's Draft Environmental Assessment (Draft EA) for those
aspects of the program for which NHTSA may exercise discretion. NHTSA
invites public comments on the contents and tentative conclusions of
this Draft EA.
---------------------------------------------------------------------------

    \37\ 40 CFR 1508.9(b).
---------------------------------------------------------------------------

    This document sets forth the purpose of and need for this action.
The purpose of this rulemaking is to implement the exemption program
and the procedural mandates described in Section 24405 of the FAST Act,
which directs NHTSA to exempt annually a limited number of replica
motor vehicles manufactured or imported by low-volume manufacturers
from the FMVSS that apply to motor vehicles, but not standards that
apply to motor vehicle equipment. In addition, replica vehicles will be
exempt from the requirements of 49 U.S.C. 32304, 32502, and 32902, as
well as from section 3 of the Automobile Information Disclosure Act (15
U.S.C. 1232). This action is needed to implement a program to grant
exemptions, as directed by Congress, for the manufacture of replica
vehicles. NHTSA is also proposing labeling, consumer disclosure, and
registration requirements to ensure adequate public awareness and
agency oversight over these vehicles.
    NHTSA seeks comment on all aspects of its proposal, including
limitations on importers, application to vehicles manufactured in two
or more stages, the use of vehicle logos and emblems as a requirement
of resemblance, the requirement to have the same dimensions and outward
appearance as the original vehicle, labeling requirements, and more.
The above requests for public comment specifically describe alternative
approaches to regulation that are being considered by the agency. NHTSA
will consider all substantive public comments received and
recommendations on alternatives in its final rule.
    The aspects of the program over which NHTSA has the most
discretion, including labeling requirements and registration, are not
anticipated to have anything other than de minimis environmental
impacts. These aspects of the program are largely ministerial in nature
for replica vehicle manufacturers and importers and are not likely to
result in a significant change in sales volumes. Further, NHTSA assumes
that 40 low-volume manufacturers will produce between 4,000 and 8,000
replica vehicles annually, and the vehicles are expected to be driven,
on average, no more than 2,280 miles per year. With regard to all
aspects of the replica vehicle exemption program

(including the exemption from the FMVSS and average fuel economy
standards), these vehicles represent an extremely small fraction of
overall motor vehicle sales and on-road VMT that will be disbursed
throughout the country. As a result, they are unlikely to cause
environmental impacts that could rise to any level of significance.
NHTSA seeks comments on this analysis and whether there are any
environmental impacts it has not considered that are relevant to a
reasoned choice by the decisionmaker.
    NHTSA and DOT have consulted with EPA in developing this proposal.
    NHTSA has reviewed the information presented in this Draft EA and
concludes that the proposed action and alternatives it may consider
would have nothing more than de minimis impacts on the quality of the
human environment. Based on the information in this Draft EA and
assuming no additional information or changed circumstances, NHTSA
expects to issue a Finding of No Significant Impact (FONSI). Such a
finding will be made only after careful review of all public comments
received. A Final EA and a FONSI, if appropriate, will be issued as
part of the final rule.

Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.,
as amended by the Small Business Regulatory Enforcement Fairness Act
(SBREFA) of 1996), whenever an agency is required to publish an NPRM or
final rule, generally it must prepare and make available for public
comment a regulatory flexibility analysis that describes the effect of
the rule on small entities (i.e., small businesses, small
organizations, and small governmental jurisdictions). The Small
Business Administration's regulations at 13 CFR part 121 define a small
business, in part, as a business entity ``which operates primarily
within the United States.'' (13 CFR 121.105(a)). A regulatory
flexibility analysis is not required if the head of the agency
certifies that the action would not have a significant economic impact
on a substantial number of small entities. The Regulatory Flexibility
Act requires Federal agencies to provide a statement of the factual
basis for certifying that a proposal would not have a significant
economic impact on a substantial number of small entities.
    In compliance with the Regulatory Flexibility Act, NHTSA has
evaluated the effects of this proposed rule on small entities and has
prepared an Initial Regulatory Flexibility Analysis (IRFA).
    This proposed rule would directly impact low-volume manufacturers
that choose to produce replica vehicles and that would fall under North
American Industry Classification System (NAICS) Nos. 336111, 336112,
and 336120 for Automobile Manufacturing, Light Truck and Utility
Vehicle Manufacturing, and Heavy Duty Truck Manufacturing. According to
13 CFR 121.201, the Small Business Administration's size standards
regulations used to define small business concerns, entities in these
industries are small business concerns if they have 1,500 or fewer
employees. NHTSA expects that most, if not all, replica manufacturers
will have 1,500 employees or fewer. NHTSA estimates that up to 40
manufacturers will register as low-volume manufacturers of replica
vehicles. However, as the Small Business Administration's regulations
define a small business, in part, as a business entity ``which operates
primarily within the United States,'' foreign manufacturers that
participate in the replica vehicle program are not considered small
businesses for the purposes of the Regulatory Flexibility Act.\38\ Of
the expected 40 such manufacturers, 10 of them are assumed to be
foreign replica manufacturers.\39\ Therefore, this proposed rule is
expected to impact 30 small entities.
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    \38\ 13 CFR 121.105(a).
    \39\ This assumption is based on the percent of all passenger
cars sold in the US but are manufactured outside the U.S. Between
January and August 2018, 76.1% of vehicles sold in the U.S. were
produced domestically and 23.9% were imported. ``U.S. light-vehicle
sales by nameplate, August & 8 months.'' Automotive News. September
10, 2018, pp. 56-7.
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    Until the FAST Act was enacted, all low-volume manufacturers of
replica vehicles were subject to virtually the same Vehicle Safety Act
requirements as the largest manufacturers when producing new motor
vehicles. Occasionally, small manufacturers are given more time to
comply with new FMVSS requirements, such as by having longer phase-in
timelines to comply with new requirements, and can also petition for
exemptions from certain FMVSS for limited periods of time on certain
specific grounds.\40\ However, notwithstanding the flexibility
regarding compliance dates and limited-period exemptions, until the
FAST Act, low-volume manufacturers of replica vehicles had the same
responsibilities as larger manufacturers to certify their vehicles as
complying with all FMVSS applying to the vehicle that were in effect on
the day of manufacture of the vehicle. These FMVSS comprise standards
applying to ``equipment'' and standards applying to the ``vehicle'' as
a unit.
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    \40\ Pursuant to 49 CFR part 555, a manufacturer may petition
for a temporary exemption on the bases of substantial economic
hardship, making easier the development or field evaluation of new
motor vehicle safety or impact protection, or low-emission vehicle
features, or that compliance with a standard would prevent it from
selling a vehicle with an overall level of safety or impact
protection at least equal to that of nonexempted vehicles.
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    The FAST Act allows low-volume manufacturers of replica vehicles
registered in the proposed exemption program to manufacture vehicles
that are exempt from meeting the ``vehicle'' FMVSS. NHTSA estimates
that involvement in the proposed Part 586 exemption program would save
low-volume manufacturers of replica passenger cars and light trucks,
MPVs, and buses (LTVs) between $3.4 million and $17.2 million at a
three-percent discount rate (between $3.3 million and $16.8 million at
a seven-percent discount rate) annually resulting from the elimination
of the requirement to comply with the vehicle FMVSS, fuel economy
standards, bumper standards, and labeling requirements.\41\ This means
that each replica vehicle manufacture would, on average, experience
cost savings of between $85,000 and $430,000 annually at a three-
percent discount rate and between $82,000 and $420,000 annually at a
seven-percent discount rate.\42\ NHTSA expects this cost savings would
have a significant positive economic impact on the 30 regulated small
entities.
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    \41\ Additional detail on these estimates is provided in the
Preliminary Regulatory Evaluation.
    \42\ NHTSA divided the total cost savings by 40 because these
estimates are based on NHTSA's assumption that there will be a total
of 40 replica manufacturers producing, on average, 200 vehicles per
year. In addition to the 30 replica manufacturers that NHTSA expects
to be considered small businesses by SBA, the total cost savings
also include savings to an estimated 10 replica manufacturers that
would not be considered small businesses by SBA.
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    According to guidance provided by the SBA's Office of Advocacy, to
determine whether the number of small entities significantly impacted
is substantial, an agency may need to look not only at the number of
significantly impacted entities, but also at the percentage of affected
small entities so impacted.\43\ In view of the fact that the proposal
is expected to significantly economically impact 100 percent of the 30
regulated small entities, this would be a substantial number.
Therefore, the replica vehicle program is expected to significantly
economically impact a substantial number of small entities.

Accordingly, NHTSA has prepared this Initial Regulatory Flexibility Act
Analysis.
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    \43\ U.S. Small Business Administration Office of Advocacy, A
Guide for Government Agencies: How to Comply with the Regulatory
Flexibility Act, 21-22 (August 2017), available at https://www.sba.gov/sites/default/files/advocacy/How-to-Comply-with-the-RFA-WEB.pdf (last accessed Oct. 15, 2018).
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Overview of the Objectives of and Legal Basis for the Proposed Rule
    NHTSA is proposing requirements in this NPRM to implement a program
mandated under the National Traffic and Motor Vehicle Safety Act
(Vehicle Safety Act), as amended by the Fixing America's Surface
Transportation Act (the FAST Act). The FAST Act directs the NHTSA by
delegation to exempt not more than 325 replica motor vehicles per year
that are manufactured or imported by a low-volume manufacturer. The
exemption must be limited to the FMVSS applicable to motor vehicles,
not motor vehicle equipment.
    NHTSA is issuing this NPRM proposing to establish 49 CFR part 586
to implement the replica motor vehicle exemption program.\44\ NHTSA is
proposing a new 49 CFR part 586 to establish the requirements and
procedures for the registration of low-volume manufacturers as replica
motor vehicle manufacturers and establishes the duties of the
manufacturers.
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    \44\ The FAST Act replica motor vehicle provision is not self-
executing. That is, the Secretary must take steps to implement it.
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Description and Estimate of the Number of Small Entities to Which the
Rule, if Made Final, Will Apply; Compliance Impacts
    This proposed rule would affect manufacturers who have a total
annual worldwide production of 5,000 vehicles or less. According to 13
CFR 121.201, the Small Business Administration's size standards
regulations used to define small business concerns, vehicle
manufacturers would fall under North American Industry Classification
(NAICS) No. 336111, Automobile Manufacturing, which has a size standard
of 1,000 employees. Using the size of 1,000 employees or fewer, NHTSA
estimates that most, if not all, of the manufacturers that would
produce replica vehicles would be small businesses. NHTSA estimates
that there will be approximately 40 manufacturers that will take
advantage of this program and manufacture replica vehicles under the
replica vehicle exemption program.
    Although this proposed rule would affect small manufacturers, we do
not anticipate that the proposed rule would have a significant negative
economic impact. Instead, this proposed rule should reduce compliance
costs for the small businesses that produce replica vehicles under the
exemption program. NHTSA estimates that manufacturers will save between
$3.4 million and $17.2 million at a three-percent discount rate
(between $3.3 million and $16.8 million at a seven-percent discount
rate) annually. The cost savings result from low-volume manufacturers
no longer having to conform their vehicles to the ``vehicle'' FMVSS.
A Description of the Projected Reporting, Record Keeping and Other
Compliance Requirements of the Proposed Rule, Including an Estimate of
the Classes of Small Entities Which Will Be Subject to the Requirement
and the Type of Professional Skills Necessary for Preparation of the
Report or Record
    The proposed rule contains reporting, record keeping and other
compliance requirements to implement the replica vehicle program. All
the proposed reporting and record keeping requirements discussed below
are mandated or contemplated by the FAST Act or are essential to
carrying out the statute.
    First, in accordance with the FAST Act, low-volume manufacturers
wishing to qualify for an exemption must register with NHTSA in
accordance with this proposed regulation. The FAST Act mandates this
registration requirement in section 30114(b)(1)(B)(2), specifying that
``a low-volume manufacturer shall register with [NHTSA] at such time,
in such manner, and under such terms that [NHTSA] determines
appropriate.'' NHTSA estimates that it would take each manufacturer 10
hours to draft and compile the submission. At an estimated cost of
$48.47 per hour,\45\ this burden would cost each manufacturer $484.70
one time for each original vehicle the manufacturer seeks to replicate.
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    \45\ The hourly wage is estimated to be $33.98 per hour.
National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019. The Bureau of Labor Statistics estimates that
wages represent 70.1 percent of total compensation to private
workers, on average. Bureau of Labor Statistics (2019). Employer
Costs for Employee Compensation--March 2019. https://www.bls.gov/news.release/ecec.t04.htm, last accessed July 10, 2019. Therefore,
NHTSA estimates the total hourly compensation cost to be $48.47.
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    Second, in accordance with the FAST Act, manufacturers of replica
vehicles would be required to submit annual reports. The annual reports
are required by section 30114(b)(1)(C), which specifies that the annual
report include the number and description of the motor vehicles
exempted and a list of the exemptions described on a permanent label
required by section 30114(b)(3)(A) (described below). The agency
proposes that the annual report would be submitted online. In lieu of a
requirement that registrants renew their registrations, the NPRM
proposes only to require registrants to report to NHTSA if they will be
producing the same replica motor vehicles the following calendar year.
NHTSA estimates that compiling and submitting the annual report would
take two hours and would involve primarily administrative skills. NHTSA
estimates that labor to compile the report would cost $48.47 per hour,
for a total cost to compile the report of $96.94.\46\
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    \46\ The hourly wage is estimated to be $33.98 per hour.
National Industry-Specific Occupational Employment and Wage
Estimates NAICS 336100--Motor Vehicle Manufacturing, May 2018,
https://www.bls.gov/oes/current/naics4_336100.htm#47-0000, last
accessed July 1, 2019. The Bureau of Labor Statistics estimates that
wages represent 70.1 percent of total compensation to private
workers, on average. Bureau of Labor Statistics (2019). Employer
Costs for Employee Compensation--March 2019. https://www.bls.gov/news.release/ecec.t04.htm, last accessed July 10, 2019. Therefore,
NHTSA estimates the total hourly compensation cost to be $48.47.
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    Third, in accordance with the FAST Act, the proposed rule would
also require the registrants to disclose information to consumers.
Because the replica vehicles would be exempt from complying with
current FMVSS, it is important that the consumer understand the reduced
level of safety provided by the vehicle. In accordance with a mandate
in section 30114(b)(3)(A), the NPRM would require registrants to affix
a permanent label to the vehicle identifying the specified standards