GAO-02-823R 

United States General Accounting Office

Washington, DC 20548 

B-290641 

June 19, 2002 

The Honorable Ernest F. Hollings 

Chairman 

The Honorable John McCain 

Ranking Minority Member 

Committee on Commerce, Science, and Transportation 

United States Senate 

The Honorable W.J. “Billy” Tauzin 

Chairman 

The Honorable John D. Dingell 

Ranking Minority Member 

Committee on Energy and Commerce 

House of Representatives 

Subject: Department of Transportation, National Highway Traffic Safety 

Administration: Federal Motor Vehicle Safety Standards; Tire Pressure 

Monitoring Systems; Controls and Displays

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a 

major rule promulgated by the Department of Transportation (DOT), National 

Highway Traffic Safety Administration, entitled “Federal Motor Vehicle Safety 

Standards; Tire Pressure Monitoring Systems; Controls and Displays” (RIN: 2127-

AI33). We received the rule on June 3, 2002. It was published in the Federal Register 

as a final rule on June 5, 2002. 67 Fed. Reg. 38704. 

The final rule establishes a new Federal Motor Vehicle Safety Standard that requires 

the installation of tire pressure monitoring systems that warn the driver when a tire 

is significantly under-inflated. 

Enclosed is our assessment of the DOT’s compliance with the procedural steps 

required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. 

Our review indicates that the DOT complied with the applicable requirements. 

If you have any questions about this report, please contact James W. Vickers, 

Assistant General Counsel, at (202) 512-8210. The official responsible for GAO 

evaluation work relating to the subject matter of the rule is John Anderson, 
Page 2 GAO-02-823R 

Managing Director, Physical Infrastructure. Mr. Anderson can be reached at (202) 

512-2834. 

 signed 

Kathleen E. Wannisky 

Managing Associate General Counsel 

Enclosure 

cc: Dion Casey 

Attorney-Advisor 

Department of Transportation 
GAO-02-823R 

ENCLOSURE 

ANALYSIS UNDER 5 U.S.C. § 801(a)(1)(B)(i)-(iv) OF A MAJOR RULE 

ISSUED BY THE 

DEPARTMENT OF TRANSPORTATION, 

NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 

ENTITLED 

"FEDERAL MOTOR VEHICLE SAFETY STANDARDS; TIRE PRESSURE 

MONITORING SYSTEMS; CONTROLS AND DISPLAYS" 

(RIN: 2127-AI33) 

(i) Cost-benefit analysis

DOT conducted a cost-benefit analysis of the final rule and the two compliance 

options permitted. Under the four tires, 25 percent under-inflation option, the cost 

of the rule would be $771 million per year. Under the one tire, 30 percent underinflation option, the cost would be $533 million per year. These figures are based on 

an annual production of 16 million vehicles. 

DOT estimates that the total quantified safety benefits will be 124 fatalities prevented 

and 8,722 injuries prevented or reduced in severity each year, if all light vehicles 

meet the four-tire, 25 percent compliance option. Also, if all light vehicles meet the 

one-tire, 30 percent compliance option, 79 fatalities will be prevented and 5,176 

injuries prevented or reduced in severity each year. 

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C. §§ 603-605, 

607, and 609

The Administrator of the National Highway Traffic Safety Administration has 

certified that the final rule will not have a significant economic impact on a 

substantial number of small entities. 

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform 

Act of 1995, 2 U.S.C. §§ 1532-1535

The final rule contains a mandate, as defined in title II, of more than $100 million in 

any one year on the private sector. There is not an intergovernmental mandate. 

DOT, in the preamble to the final rule, discusses the selection of the alternatives for 

inclusion in the final rule. 
Page 2 GAO-02-823R 

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq. 

The final rule was issued using the notice and comment procedures found at 5 U.S.C. 

553. On July 26, 2001, a Notice of Proposed Rulemaking was published in the 

Federal Register. 66 Fed. Reg. 38982. DOT received comments from tire, vehicle and 

TPMS manufacturers, consumer advocacy groups, and the general public. These 

comments are discussed in the preamble to the final rule. 

Paperwork Reduction Act, 44 U.S.C. §§ 3501-3520 

The final rule contains an information collection that is subject to review by the 

Office of Management and Budget (OMB) under the Paperwork Reduction Act. DOT 

has submitted the required information to OMB for review. 

DOT estimates that the 21 manufacturers will incur a total annual burden of 42 

hours. Since the manufacturers already collect the required data about annual 

production, the annual cost burden will be zero. 

Statutory authorization for the rule 

The final rule is promulgated under the authority contained in section 13 of the 

Transportation Recall Enhancement, Accountability, and Documentation Act, Public 

Law 106-414, November 1, 2000. 

Executive Order No. 12866 

The final rule was reviewed by OMB and found to be an “economically significant”

regulatory action under the order. 

Executive Order No. 13132 (Federalism) 

DOT has determined that the final rule does not have sufficient federalism 

implications to warrant the preparation of federalism summary impact statement.