57864 Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Rules and Regulations 

1 Individuals interested in deriving the CPI 

figures used by the agency may visit the Department 

of Labor’s Consumer Price Index home page at 

http://www.bls.gov/cpi/home.htm. Select ‘‘US ALL 

ITEMS 1967=100—CUUR0000AA0’’, select the 

appropriate time frame covering the information 

sought, and select ‘‘Retrieve Data’’ from the menu.

■ 16. Section 73.202(b), the Table of FM 

Allotments under Washington, is 

amended by removing Channel 256C1 

and adding Channel 256C2 at Walla 

Walla.

■ 17. Section 73.202(b), the Table of FM 

Allotments under Wyoming, is amended 

by removing Channel 292C3 and adding 

Channel 292A at Cheyenne.

Federal Communications Commission. 

John A. Karousos, 

Assistant Chief, Audio Division, Media 

Bureau.

[FR Doc. 04–21727 Filed 9–27–04; 8:45 am] 

BILLING CODE 6712–01–P

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety 

Administration 

49 CFR Part 578 

[Docket No. NHTSA–04–17571; Notice 2] 

RIN 2127–AJ32 

Civil Penalties

AGENCY: National Highway Traffic 

Safety Administration (NHTSA), DOT.

ACTION: Final rule.

SUMMARY: This document amends 

NHTSA’s regulation on civil penalties 

by increasing the maximum aggregate 

civil penalties for violations of statutes 

and regulations administered by 

NHTSA pertaining to motor vehicle 

safety, bumper standards, and consumer 

information. This action is taken 

pursuant to the Federal Civil Monetary 

Penalty Inflation Adjustment Act of 

1990, as amended by the Debt 

Collection Improvement Act of 1996, 

which requires us to review and, as 

warranted, adjust penalties based on 

inflation at least every four years.

DATES: This rule is effective on October 

28, 2004. If you wish to submit a 

petition for reconsideration of this rule, 

your petition must be received by 

November 12, 2004.

ADDRESSES: Petitions for reconsideration 

should refer to the docket number and 

be submitted to: Administrator, Room 

5220, National Highway Traffic Safety 

Administration, 400 Seventh Street, 

SW., Washington, DC 20590, with a 

copy to the docket.

FOR FURTHER INFORMATION CONTACT:

Michael Kido, Office of Chief Counsel, 

NHTSA, telephone (202) 366–5263, 

facsimile (202) 366–3820, 400 Seventh 

Street, SW., Washington, DC 20590. 

Anyone is able to search the 

electronic form of all comments 

received into any of our dockets by the 

name of the individual submitting the 

comment (or signing the comment, if 

submitted on behalf of an association, 

business, consumer group, etc.). You 

may review DOT’s complete Privacy Act 

Statement in the Federal Register

published on April 11, 2000 (volume 65, 

number 70; pages 19477–78), or you 

may visit http://dms.dot.gov.

SUPPLEMENTARY INFORMATION:

Background 

In order to preserve the remedial 

impact of civil penalties and to foster 

compliance with the law, the Federal 

Civil Monetary Penalty Inflation 

Adjustment Act of 1990 (28 U.S.C. 2461 

Notes, Pub. L. 101–410), as amended by 

the Debt Collection Improvement Act of 

1996, Pub. L. 104–134 (referred to 

collectively as the ‘‘Adjustment Act’’ or, 

in context, the ‘‘Act’’), requires us and 

other Federal agencies to regularly 

adjust civil penalties for inflation. 

Under the Adjustment Act, following an 

initial adjustment that was capped by 

the Act, these agencies must make 

further adjustments, as warranted, to the 

amounts of penalties in statutes they 

administer at least once every four 

years. 

NHTSA’s initial adjustment of civil 

penalties under the Adjustment Act was 

published on February 4, 1997. 62 FR 

5167. At that time, we codified the 

adjustments in 49 CFR part 578, Civil 

Penalties. On July 14, 1999, we further 

adjusted certain penalties involving 

odometer requirements and disclosure, 

consumer information, motor vehicle 

safety, and bumper standards. 64 FR 

37876. On August 7, 2001, we also 

adjusted certain penalty amounts 

pertaining to odometer requirements 

and disclosure and vehicle theft 

prevention. 66 FR 41149. In addition to 

increases in authorized penalties under 

the Adjustment Act, the Transportation 

Recall Enhancement, Accountability, 

and Documentation (‘‘TREAD’’) Act 

increased penalties under the National 

Traffic and Motor Vehicle Safety Act as 

amended (sometimes referred to as the 

‘‘Motor Vehicle Safety Act’’). We 

codified those amendments in a notice 

published on November 14, 2000. 65 FR 

68108. 

On June 14, 2004, based on our 

review of the amounts of civil penalties 

authorized in part 578, we proposed to 

adjust those penalties where warranted 

under the Adjustment Act. 69 FR 32963. 

Our proposal addressed violations 

pertaining to motor vehicle safety, 

bumper standards, and consumer 

information regarding crashworthiness 

and damage susceptibility. 

Method of Calculation 

Under the Adjustment Act, we 

determine the inflation adjustment for 

each applicable civil penalty by 

increasing the maximum civil penalty 

amount per violation by a cost-of-living 

adjustment, and then applying a 

rounding factor. Section 5(b) of the 

Adjustment Act defines the ‘‘cost-ofliving’’ adjustment as: 

The percentage (if any) for each civil 

monetary penalty by which—

(1) The Consumer Price Index for the 

month of June of the calendar year 

preceding the adjustment exceeds 

(2) The Consumer Price Index for the 

month of June of the calendar year in 

which the amount of such civil 

monetary penalty was last set or 

adjusted pursuant to law. 

Since the adjustment will be effective 

before December 31, 2004, the 

‘‘Consumer Price Index [CPI] for the 

month of June of the calendar year 

preceding the adjustment’’ is the CPI for 

June 2003. This figure, based on the 

Adjustment Act’s requirement of using 

the CPI ‘‘for all-urban consumers 

published by the Department of Labor’’

is 550.4.1 The penalty amounts that 

NHTSA is adjusting based on the Act’s 

requirements were last adjusted in 1999 

for violations related to bumper 

standards and consumer information 

regarding crashworthiness and damage 

susceptibility and in 2000 for violations 

related to motor vehicle safety. The CPI 

figures for June 1999 and June 2000 

were 497.9 and 516.5, respectively. 

Accordingly, the factors that we used in 

calculating the increase are 1.10 (550.4/

497.9) for adjustments to the bumper 

standard and consumer information 

penalties and 1.07 (550.4/516.5) for 

adjustments to the motor vehicle safety 

penalties. Using 1.10 and 1.07 as the 

inflation factors, calculated increases 

under these adjustments are then 

subject to a specific rounding formula 

set forth in section 5(a) of the 

Adjustment Act. 28 U.S.C. 2461, Notes. 

Under that formula:

Any increase shall be rounded to the 

nearest: 

(1) Multiple of $10 in the case of 

penalties less than or equal to $100; 

(2) Multiple of $100 in the case of 

penalties greater than $100 but less than 

or equal to $1,000; 

(3) Multiple of $1,000 in the case of 

penalties greater than $1,000 but less 

than or equal to $10,000; 

Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Rules and Regulations 57865

(4) Multiple of $5,000 in the case of 

penalties greater than $10,000 but less 

than or equal to $100,000; 

(5) Multiple of $10,000 in the case of 

penalties greater than $100,000 but less 

than or equal to $200,000; and 

(6) Multiple of $25,000 in the case of 

penalties greater than $200,000.

Revision of Civil Penalties Prescribed 

by Section 578.6 

In the Notice of Proposed 

Rulemaking, we reviewed penalties in 

section 578.6, calculated updated 

penalties using the appropriate CPI 

figures, considered the nearest higher 

multiple specified in the rounding 

provisions, and proposed that the 

penalties discussed below may be 

increased. 

We received one comment on our 

proposal from a private individual who 

recommended that the agency impose 

no penalty under $500 and that a 

maximum penalty of $150,000,000 be 

imposed on violators of the provisions 

that we proposed to adjust. We are not 

modifying our proposal based on this 

comment because it is inconsistent with 

the penalty provisions in the statutes 

addressed in this notice and with the 

Adjustment Act. We are adjusting the 

penalties as proposed and as addressed 

below. 

Motor Vehicle Safety Act, 49 U.S.C. 

chapter 301 (49 CFR 578.6(a)) 

The maximum civil penalty for a 

related series of violations of sections 

30112, 30115, 30117 through 30122, 

30123(d), 30125(c), 30127, or 30141 

through 30147 of title 49 of the United 

States Code or a regulation thereunder 

is $15,000,000, as specified in 49 CFR 

578.6(a)(1). Likewise, the maximum 

penalty for a related series of daily 

violations of 49 U.S.C. 30166 or a 

regulation thereunder is $15,000,000, as 

specified in 49 CFR 578.6(a)(2). Under 

the rounding formula set by the 

Adjustment Act, any increase in a 

penalty shall be rounded to the nearest 

multiple of $25,000 in the case of 

penalties greater than $200,000. 

Applying the formula using the 

appropriate inflation factor (1.07) and 

the accompanying rounding rules, the 

increase in the penalty amounts would 

be $1,050,000. Accordingly, we are 

amending 49 CFR 578.6(a)(1) and (a)(2) 

to increase the maximum civil penalty 

to $16,050,000 for a related series of 

motor vehicle safety violations. 

However, the maximum civil penalties 

for a single violation will remain at 

$5,000 under 49 CFR 578.6(a) because 

the inflation-adjusted figures are not yet 

at a level to be increased under the 

Adjustment Act. 

Bumper Standards, 49 U.S.C. Chapter 

325 (49 CFR 578.6(c)(2)) 

The agency last adjusted its civil 

penalties for violations of bumper 

requirements under 49 U.S.C. chapter 

325 in 1999. The maximum civil 

penalty for a related series of violations 

of 49 U.S.C. 32506(a) is $925,000, as 

specified in 49 CFR 578.6(c)(2). 

Applying the appropriate inflation 

factor (1.10) to the calculation raises this 

figure to $1,017,500, an increase of 

$92,500. Under the rounding formula, 

any increase in a penalty’s amount shall 

be rounded to the nearest multiple of 

$25,000 in the case of penalties greater 

than $200,000. In this case, the increase 

would be $100,000. Accordingly, we are 

amending section 576.8(c)(2) to increase 

the maximum civil penalty to 

$1,025,000 for a related series of 

violations of the bumper standard 

provisions. However, the maximum 

civil penalty for a single violation 

remains at $1,100 because the inflationadjusted figure is not yet at a level to be 

increased. 

Consumer Information, 49 U.S.C. 

Chapter 323 (Crashworthiness and 

Damage Susceptibility (Section 

578.6(d)) 

The civil penalties related to 

consumer information regarding 

crashworthiness and damage 

susceptibility were last adjusted in 

1999. Under 49 CFR 578.6(d), the 

maximum civil penalty for a related 

series of violations of 49 U.S.C. 32308(a) 

is $450,000. Applying the appropriate 

inflation factor (1.10) raises this figure 

to $495,000, which is an increase of 

$45,000. Under the formula, any 

increase in a penalty’s amount shall be 

rounded to the nearest multiple of 

$25,000 in the case of penalties greater 

than $200,000. In this instance, the 

rounding rules provide for an increase 

of $50,000. Accordingly, we are 

amending section 576.8(d) to increase 

the maximum civil penalty to $500,000 

for a related series of violations that 

pertain to NHTSA’s crashworthiness 

and damage susceptibility consumer 

information provisions. However, the 

maximum penalty for a single violation 

remains at $1,100 because the inflationadjusted figure is not yet at a level to be 

increased. 

Rulemaking Analyses and Notices 

Executive Order 12866 and DOT 

Regulatory Policies and Procedures 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ provides for 

making determinations whether a 

regulatory action is ‘‘significant’’ and 

therefore subject to OMB review and to 

the requirements of the Executive Order. 

The Order defines a ‘‘significant 

regulatory action’’ as one that is likely 

to result in a rule that may:

(1) Have an annual effect on the economy 

of $100 million or more or adversely affect 

in a material way the economy, a sector of 

the economy, productivity, competition, jobs, 

the environment, public health or safety, or 

State, local, or tribal governments or 

communities; 

(2) Create a serious inconsistency or 

otherwise interfere with an action taken or 

planned by another agency; 

(3) Materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or 

(4) Raise novel legal or policy issues 

arising out of legal mandates, the President’s 

priorities, or the principles set forth in the 

Executive Order.

NHTSA has considered the impact of 

this final rule under E.O. 12866 and the 

Department of Transportation’s 

regulatory policies and procedures and 

has determined that it is not significant. 

This action is limited to the adoption of 

statutorily mandated adjustments of 

civil penalties under statutes that the 

agency enforces, raises no novel issues, 

and does not otherwise interfere with 

other actions. This final rule does not 

impose any costs that would exceed the 

$100 million threshold or otherwise 

materially impact entitlements, grants, 

user fees, or loan programs or the rights 

and obligations of recipients thereof. 

The agency has therefore determined 

this final rule to be not ‘‘significant’’

under the Department of 

Transportation’s regulatory policies and 

procedures.

Regulatory Flexibility Act 

We have also considered the impacts 

of this notice under the Regulatory 

Flexibility Act. I certify that this rule 

will not have a significant economic 

impact on a substantial number of small 

entities. The following provides the 

factual basis for this certification under 

5 U.S.C. 605(b). The amendments 

almost entirely potentially affect 

manufacturers of motor vehicles and 

motor vehicle equipment. 

The Small Business Administration’s 

regulations define a small business in 

part as a business entity ‘‘which 

operates primarily within the United 

States.’’ 13 CFR 121.105(a). SBA’s size 

standards were previously organized 

according to Standard Industrial 

Classification Codes (‘‘SIC’’), SIC Code 

3711 ‘‘Motor Vehicles and Passenger Car 

Bodies,’’ which used a small business 

size standard of 1,000 employees or 

fewer. SBA uses size standards based on 

the North American Industry 

Classification System (‘‘NAICS’’), 

57866 Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Rules and Regulations 

2For example, according to the new SBA coding 

system, businesses that manufacture truck trailers, 

travel trailers/campers, carburetors, pistons, piston 

rings, valves, vehicular lighting equipment, motor 

vehicle seating/interior trim, and motor vehicle 

stamping qualify as small businesses if they employ 

500 or fewer employees. Similarly, businesses that 

manufacture gasoline engines, engine parts, 

electrical and electronic equipment (non-vehicle 

lighting), motor vehicle steering/suspension 

components (excluding springs), motor vehicle 

brake systems, transmissions/power train parts, 

motor vehicle air-conditioning, and all other motor 

vehicle parts qualify as small businesses if they 

employ 750 or fewer employees. See http://

www.sba.gov/size/sizetable.pdf for further details.

Subsector 336—Transportation 

Equipment Manufacturing, which 

provides a small business size standard 

of 1,000 employees or fewer for 

automobile manufacturing businesses. 

Other motor vehicle-related industries 

have lower size requirements that range 

between 500 and 750 employees.2

Many small businesses are subject to 

the penalty provisions of 49 U.S.C. 

Chapters 301 (motor vehicle safety), 325 

(bumpers) or 323 (consumer 

information) and therefore may be 

affected by the adjustments made by 

this rule. For example, based on 

comprehensive reporting pursuant to 

the early warning reporting (EWR) rule 

under the Motor Vehicle Safety Act, 49 

CFR part 579, out of 72 reporting we are 

aware of approximately 50 light vehicle 

manufacturers that are small businesses. 

In addition, there are other, relatively 

low production light vehicle 

manufacturers that are not subject to 

comprehensive EWR reporting. 

Additionally, many of the more than 70 

manufacturers of medium-heavy 

vehicles and buses, the more than 150 

trailer manufacturers, and the 12 

motorcycle manufacturers providing 

comprehensive EWR reports are small 

businesses and there are numerous 

others that are below the production 

threshold for comprehensive reporting. 

There are over 6 manufacturers of child 

restraints and 18 tire manufacturers that 

are reporting pursuant to the EWR rule. 

Also, there are numerous other lowvolume specialty tire manufacturers that 

do not provide comprehensive EWR 

reports. Furthermore, there are about 

160 registered importers. Equipment 

manufacturers are also subject to 

penalties under 49 U.S.C. 30165. 

The bumper and consumer 

information statutes addressed by this 

rule cover passenger motor vehicles, 

which are within the compass of the 

Motor Vehicle Safety Act. As a result, 

the discussion of the numbers and sizes 

of light vehicle manufacturers above 

also covers those statutes. As noted 

throughout this preamble, this rule 

increases only the maximum penalty 

amounts that the agency could obtain 

for violations of provisions related to 

motor vehicle safety, bumper standards, 

and certain consumer information. The 

rule does not set the amount of penalties 

for any particular violation or series of 

violations. Under the motor vehicle 

safety and consumer information 

statutes, the penalty provisions require 

the agency to take into account the size 

of a business when determining the 

appropriate penalty in an individual 

case. See 49 U.S.C. 30165(b) (motor 

vehicle safety) and 49 U.S.C. 32308(b)(3) 

(consumer information). While the 

bumper standards penalty provision 

does not specifically require the agency 

to consider the size of the business, the 

agency would consider business size 

under its civil penalty policy when 

determining the appropriate civil 

penalty amount. See 62 FR 37115 (July 

10, 1997) (NHTSA’s civil penalty policy 

under the Small Business Regulatory 

Enforcement Fairness Act (‘‘SBREFA’’)). 

The penalty adjustments in today’s rule 

will not affect our civil penalty policy 

under SBREFA. As a matter of policy, 

we intend to continue to consider the 

appropriateness of the penalty amount 

to the size of the business charged. 

Since this regulation does not 

establish penalty amounts, this rule will 

not have a significant economic impact 

on small businesses. 

Further, small organizations and 

governmental jurisdictions will not be 

significantly affected as the price of 

motor vehicles and equipment ought not 

to change as the result of this rule. As 

explained above, this action is limited 

to the adoption of a statutory directive, 

and has been determined to be not 

‘‘significant’’ under the Department of 

Transportation’s regulatory policies and 

procedures. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1980, as amended, we 

state that there are no requirements for 

information collection associated with 

this rulemaking action. 

National Environmental Policy Act 

We have also analyzed this 

rulemaking action under the National 

Environmental Policy Act and 

determined that it has no significant 

impact on the human environment. 

Executive Order 12612 (Federalism) 

We have analyzed this rule in 

accordance with the principles and 

criteria contained in Executive Order 

12612, and have determined that it has 

no significant federalism implications to 

warrant the preparation of a Federalism 

Assessment. 

Civil Justice Reform 

This rule does not have a retroactive 

or preemptive effect. A petition for 

reconsideration need not be filed prior 

to seeking judicial review, when 

available.

Unfunded Mandates Reform Act of 1995 

The Unfunded Mandates Reform Act 

of 1995, Pub. L. 104–4 requires agencies 

to prepare a written assessment of the 

cost, benefits and other effects of 

proposed or final rules that include a 

Federal mandate likely to result in the 

expenditure by State, local, or tribal 

governments, in the aggregate, or by the 

private sector, of more than $100 

million annually. Because this rule will 

not have a $100 million effect, no 

Unfunded Mandates assessment will be 

prepared.

List of Subjects in 49 CFR Part 578 

Imports, Motor vehicle safety, Motor 

vehicles, Penalties, Rubber and rubber 

products, Tires.

■ 1. The authority citation for 49 CFR 

part 578 continues to read as follows:

Authority: Pub. L. 101–410, Pub. L. 104–

134, 49 U.S.C. 30165, 30170, 30505, 32308, 

32309, 32507, 32709, 32710, 32912, and 

33115; delegation of authority at 49 CFR 1.50.

■ 2. Section 578.6 is amended by 

revising paragraphs (a)(1), (a)(2), (c)(2), 

and (d) to read as follows:

PART 578—CIVIL AND CRIMINAL 

PENALTIES

* * * * *

§ 578.6 Civil penalties for violations of 

specified provisions of Title 49 of the United 

States Code. 

(a)(1) Motor vehicle safety. A person 

who violates any of sections 30112, 

30115, 30117 through 30122, 30123(d), 

30125(c), 30127, or 30141 through 

30147 of Title 49 of the United States 

Code or a regulation prescribed under 

any of those sections is liable to the 

United States Government for a civil 

penalty of not more than $5,000 for each 

violation. A separate violation occurs 

for each motor vehicle or item of motor 

vehicle equipment and for each failure 

or refusal to allow or perform an act 

required by any of those sections. The 

maximum civil penalty under this 

paragraph for a related series of 

violations is $16,050,000. 

(2) Section 30166. A person who 

violates section 30166 of Title 49 of the 

United States Code or a regulation 

prescribed under that section is liable to 

the United States Government for a civil 

penalty for failing or refusing to allow 

or perform an act required under that 

section or regulation. The maximum 

Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Rules and Regulations 57867

1 In general, quarterly reports include information 

on production, incidents involving death or injury, 

numbers of property damage claims, numbers of 

consumer complaints, numbers of warranty claims 

or warranty adjustments, and numbers of field 

reports. See e.g., 49 CFR 579.21 (2003).

penalty under this paragraph is $5,000 

per violation per day. The maximum 

penalty under this paragraph for a 

related series of violations is 

$16,050,000.

* * * * *

(c) Bumper standards. (1) * * * 

(2) The maximum civil penalty under 

this paragraph (c) for a related series of 

violations is $1,025,000. 

(d) Consumer information regarding 

crashworthiness and damage 

susceptibility. A person that violates 49 

U.S.C. 32308(a) is liable to the United 

States Government for a civil penalty of 

not more than $1,100 for each violation. 

Each failure to provide information or 

comply with a regulation in violation of 

49 U.S.C. 32308(a) is a separate 

violation. The maximum penalty under 

this paragraph for a related series of 

violations is $500,000.

* * * * *

Issued on: September 22, 2004. 

Jeffrey W. Runge, 

Administrator.

[FR Doc. 04–21735 Filed 9–27–04; 8:45 am] 

BILLING CODE 4910–59–P

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety 

Administration 

49 CFR Part 579 

[Docket No. NHTSA 2001–8677; Notice 12] 

RIN 2127–AJ41 

Reporting of Information and 

Documents About Potential Defects

AGENCY: National Highway Traffic 

Safety Administration (NHTSA), DOT.

ACTION: Final rule.

SUMMARY: This final rule amends the 

date by which quarterly early warning 

reports are to be submitted to the agency 

from 30 days following the end of a 

calendar quarter to 60 days following 

the end of a calendar quarter. The final 

rule also amends the date by which 

copies of non-dealer field reports are to 

be submitted from 30 days after the 

quarterly reports are due to 15 days after 

those reports are due.

DATES: Effective Date: The effective date 

of this final rule is October 28, 2004. 

Petitions for Reconsideration: Petitions 

for reconsideration of the final rule must 

be received not later than November 12, 

2004.

ADDRESSES: Petitions for reconsideration 

of the final rule should refer to the 

docket and notice number set forth 

above and be submitted to 

Administrator, National Highway 

Traffic Safety Administration, 400 

Seventh Street, SW., Washington, DC 

20590, with a copy to Docket 

Management, Room PL–401, 400 

Seventh Street, SW., Washington, DC 

20590.

FOR FURTHER INFORMATION CONTACT: For 

non-legal issues, contact Jonathan 

White, Office of Defects Investigation, 

NHTSA (phone: 202–366–5226). For 

legal issues, contact Andrew DiMarsico, 

Office of Chief Counsel, NHTSA (phone: 

202–366–5263).

SUPPLEMENTARY INFORMATION:

I. Background 

On July 10, 2002, NHTSA published 

a final rule implementing the early 

warning reporting (EWR) provisions of 

the Transportation Recall Enhancement, 

Accountability, and Documentation 

(TREAD) Act, 49 U.S.C. 30166(m) 67 FR 

45822. The EWR final rule established 

a schedule for the reporting of 

information and submission of copies of 

certain field reports required by the 

rule. The first calendar quarter for 

which reports were required was the 

second calendar quarter of 2003. See 49 

CFR 579.28(a)(2002). For the quarterly 

reporting periods in 2003, the reports 

were due within 60 days after the end 

of the quarter. Thereafter, starting in 

2004, reports were to be due within 30 

days after the end of the quarter. See 49 

CFR 579.28(b) (2002). 

In response to a petition for 

reconsideration of the final rule, on June 

11, 2003, NHTSA amended the 

reporting dates. 68 FR 35145. Under the 

revised rule, the initial reporting period 

for all quarterly data 1 other than 

historical reports and copies of nondealer field reports was the third quarter 

of 2003. Reports covering the last two 

quarters of 2003 and the first quarter of 

2004 were due to NHTSA within 60 

days after the close of the reporting 

period. Thereafter, reports currently are 

due within 30 days after the close of the 

quarter. NHTSA also amended the 

requirements for submission of copies of 

non-dealer field reports. The initial 

reporting period for the submission of 

copies of non-dealer field reports was 

the first calendar quarter of 2004. Under 

that amendment, the dealer field reports 

are due within 30 days after the 

quarterly data are due. 49 CFR 

579.28(b), (n) (2003); see 68 FR 35145.

II. Notice of Proposed Rulemaking 

In response to a petition for 

rulemaking filed by the Alliance of 

Automobile Manufacturers (Alliance), 

on June 29, 2004, NHTSA published a 

proposal to amend the date by which 

quarterly early warning reports are to be 

submitted to the agency from 30 days 

following the end of a calendar quarter 

to 60 days following the end of a 

calendar quarter. In addition, the agency 

proposed to amend the date by which 

copies of non-dealer field reports are to 

be submitted from 30 days after the 

quarterly reports are due to 15 days after 

those reports are due. 69 FR 38860. In 

the NPRM, the agency stated that based 

upon the experience of the Alliance’s 

members, it appeared that 

manufacturers need more than 30 days 

to provide complete and accurate EWR 

reports to NHTSA. The agency further 

explained that complete reports best 

serve its EWR program because its 

analysts use the quarterly reports to 

assist in the identification of possible 

defect trends, and incomplete reports 

would disrupt the analytical process.

We received comments from industry 

trade associations and the public. For 

the industry, the Rubber Manufacturers 

Association (RMA), the Motor & 

Equipment Manufacturers Association 

(MEMA), the Association of 

International Automobile 

Manufacturers, Inc. (AIAM), the 

Alliance, and the Truck Manufacturers 

Association (TMA) submitted 

comments. In general, the industry 

supported the proposal and urged 

NHTSA to adopt it. Specifically, RMA 

indicated that its members report that 

the process of gathering information and 

completing the reports has been more 

complex than anticipated. In addition, 

MEMA commented that some of its 

members are part of large multi-national 

organizations that require more time to 

identify EWR information, translate it to 

English and prepare the applicable EWR 

report. Lastly, the Alliance and AIAM 

stated that the additional time to 

provide reports would ensure that its 

members provide complete and accurate 

reports to NHTSA. 

We also received one comment 

against the proposal from a private 

citizen. That individual commented that 

60 days to report EWR information is 

unreasonable since computers have the 

ability to quickly collate information. 

III. Discussion 

When we issued the EWR final rule, 

and when we postponed the initial 

reporting period on reconsideration, we 

believed that after manufacturers had 

three opportunities to gain experience