[Federal Register Volume 87, Number 129 (Thursday, July 7, 2022)]
[Notices]
[Pages 40585-40588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-14464]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2022-0057]


Czinger Vehicles--Receipt of Petition for Temporary Exemption

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

ACTION: Notice of receipt of petition for temporary exemption; request 
for public comment.

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SUMMARY: Czinger Vehicles (Czinger) has petitioned NHTSA for a 
temporary exemption from windshield requirements in Federal motor 
vehicle safety standard (FMVSS) No. 205, Glazing materials. Czinger is 
a low volume start-up manufacturer and seeks the exemption on the basis 
that compliance with the standard would cause substantial economic 
hardship. NHTSA is publishing this document in accordance with 
statutory and administrative provisions and requests comment on the 
merits of Czinger's exemption petition. NHTSA has made no judgement at 
this time on the merits of the petition.

DATES: Comments must be received on or before August 8, 2022.

FOR FURTHER INFORMATION CONTACT: Callie Roach, Office of the Chief 
Counsel, National Highway Traffic Safety Administration, 1200 New 
Jersey Avenue SE, Washington, DC 20590. Telephone: 202-366-2992; Fax: 
202-366-3820.
    Comments: NHTSA invites you to submit comments on the petition 
described herein and the questions posed below. You may submit comments 
identified by docket number in the heading of this notice by any of the 
following methods:
    <bullet> Fax: 202-493-2251.
    <bullet> Mail: U.S. Department of Transportation, Docket 
Operations, M-30, Room W12-140, 1200 New Jersey Avenue, SE, Washington, 
DC 20590.
    <bullet> Hand Delivery: 1200 New Jersey Avenue, SE, West Building 
Ground Floor, Room W12-140, Washington, DC, between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal Holidays. To be sure someone is 
there to help you, please call (202) 366-9322 before coming.
    <bullet> Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
    Instructions: All submissions must include the agency name and 
docket number. 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 discussion below. 
NHTSA will consider all comments received before the close of business 
on the comment closing date indicated above. To the extent possible, 
NHTSA will also consider comments filed after the closing date.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov at any time or to 
1200 New Jersey Avenue, SE, West Building Ground Floor, Room W12-140, 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal Holidays. To be sure someone is there to help you, 
please call (202) 366-9322 before coming.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits 
comments from the public to better inform its rulemaking process. DOT 
posts these comments, without edit, to www.regulations.gov, as 
described in the system of records notice, DOT/ALL-14 FDMS, accessible 
through www.dot.gov/privacy. In order to facilitate comment tracking 
and response, we encourage commenters to provide their name, or the 
name of their organization; however, submission of names is completely 
optional. Whether or not commenters identify themselves, all timely 
comments will be fully considered. If you wish to provide comments 
containing proprietary or confidential information, please contact the 
agency for alternate submission instructions.
    Confidential Business Information: If you wish to submit any 
information under a claim of confidentiality, see the detailed 
instructions given under the Public Participation heading of the 
Supplementary Information section of this document.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Requirements

    NHTSA is responsible for promulgating and enforcing FMVSS designed 
to improve motor vehicle safety. Generally, a manufacturer may not 
manufacture for sale, sell, offer for sale, or introduce or deliver for 
introduction into interstate commerce a vehicle that does not comply 
with all applicable FMVSS.\1\ There are limited exceptions to this 
general prohibition.\2\ One path permits manufacturers to petition 
NHTSA for an exemption for noncompliant vehicles under specified set of 
statutory bases.\3\
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    \1\ 49 U.S.C. 30112(a)(1).
    \2\ 49 U.S.C. 30112(b); 49 U.S.C. 30113; 49 U.S.C. 30114.
    \3\ 49 U.S.C. 30113.
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    The National Traffic and Motor Vehicle Safety Act (Safety Act), 
codified at 49 U.S.C. Chapter 301, authorizes the Secretary of 
Transportation to exempt, on a temporary basis and under specified 
circumstances, and on terms the Secretary considers appropriate, motor 
vehicles from a FMVSS or bumper standard. This authority is set forth 
at 49 U.S.C. 30113. The Secretary has delegated the authority for 
implementing this section to NHTSA.\4\
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    \4\ 49 CFR 1.94.
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    The Safety Act authorizes NHTSA (by delegation) to grant, in whole 
or in part, a temporary exemption to a vehicle manufacturer if certain 
specified findings are made.\5\ The agency must find that the exemption 
is consistent with the public interest and the objectives of the Safety 
Act.\6\ In addition, exemptions under Sec.  30113 must meet one of the 
following bases:
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    \5\ 49 U.S.C. 30113(b)(3).
    \6\ 49 U.S.C. 30113(b)(3)(A).
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    (i) Compliance with the standard[s] [from which exemption is 
sought] would cause substantial economic hardship to a manufacturer 
that has tried to comply with the standard[s] in good faith;
    (ii) the exemption would make easier the development or field 
evaluation of a new motor vehicle safety feature providing a safety 
level at least equal to the safety level of the standard;
    (iii) the exemption would make the development or field evaluation 
of a low-emission motor vehicle easier and would not unreasonably lower 
the safety level of that vehicle; or
    (iv) compliance with the standard would prevent the manufacturer 
from

[[Page 40586]]

selling a motor vehicle with an overall safety level at least equal to 
the overall safety level of nonexempt vehicles.\7\
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    \7\ 49 U.S.C. 30113(b)(3)(B).
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    Czinger submitted its petition under the first of these bases, 
asserting that compliance with the standard would cause it substantial 
economic hardship and it has tried in good faith to comply with the 
standard.
    NHTSA established 49 CFR part 555, Temporary Exemption from Motor 
Vehicle Safety and Bumper Standards, to implement the statutory 
provisions concerning temporary exemptions. The requirements in 49 CFR 
555.5 state that the petitioner must set forth the basis of the 
petition by providing the information required under 49 CFR 555.6, and 
the reasons why the exemption would be in the public interest and 
consistent with the objectives of the Safety Act. A petition submitted 
under the substantial economic hardship basis must include the 
following information, as specified in 49 CFR 555.6(a):
    (1) Engineering and financial information demonstrating in detail 
how compliance or failure to obtain an exemption would cause 
substantial economic hardship, including--
    (i) A list or description of each item of motor vehicle equipment 
that would have to be modified in order to achieve compliance;
    (ii) The itemized estimated cost to modify each such item of motor 
vehicle equipment if compliance were to be achieved--
    (A) As soon as possible,
    (B) At the end of a 1-year exemption period (if the petition is for 
1 year or more),
    (C) At the end of a 2-year exemption period (if the petition is for 
2 years or more),
    (D) At the end of a 3-year exemption period (if the petition is for 
3 years),
    (iii) The estimated price increase per vehicle to balance the total 
costs incurred pursuant to paragraph (a)(1)(ii) of this section and a 
statement of the anticipated effect of each such price increase;
    (iv) Corporate balance sheets and income statements for the three 
fiscal years immediately preceding the filing of the application;
    (v) Projected balance sheet and income statement for the fiscal 
year following a denial of the application; and
    (vi) A discussion of any other hardships (e.g., loss of market, 
difficulty of obtaining goods and services for compliance) that the 
petitioner desires the agency to consider.
    (2) A description of its efforts to comply with the standards, 
including--
    (i) A chronological analysis of such efforts showing its 
relationship to the rulemaking history of the standard from which 
exemption is sought;
    (ii) A discussion of alternate means of compliance considered and 
the reasons for rejection of each;
    (iii) A discussion of any other factors (e.g., the resources 
available to the petitioner, inability to procure goods and services 
necessary for compliance following a timely request) that the 
petitioner desires the NHTSA to consider in deciding whether the 
petitioner tried in good faith to comply with the standard;
    (iv) A description of the steps to be taken, while the exemption is 
in effect, and the estimated date by which full compliance will be 
achieved either by design changes or termination of production of 
nonconforming vehicles; and
    (v) The total number of motor vehicles produced by or on behalf of 
the petitioner in the 12-month period prior to filing the petition, and 
the inclusive dates of the period. (49 U.S.C. 30113(d) limits 
eligibility for exemption on the basis of economic hardship to 
manufacturers whose total motor vehicle production in the year 
preceding the filing of their applications does not exceed 10,000.)

II. Czinger's Petition

    The following discussion provides: An overview of Czinger's 
petition; a brief summary of the information Czinger submitted to 
demonstrate that compliance would cause it substantial economic 
hardship, the efforts Czinger has made to comply with the standard, and 
Czinger's arguments that granting the petition would be in the public 
interest. Because Czinger has sought confidential treatment of some 
aspects of its petition, a redacted version of its petition is included 
in the docket referenced at the beginning of this notice. NHTSA notes 
that any of the descriptions provided in this section were provided by 
Czinger in its petition and do not necessarily reflect the views of 
NHTSA.

A. Overview of the Czinger's Petition

    On December 12, 2021, Czinger submitted a petition for exemption 
under 49 CFR part 555 for a temporary exemption from parts of FMVSS No. 
205, Glazing materials. Specifically, Czinger is requesting an 
exemption from requirements for glazing to be used in windshields of 
Czinger's 21C model on the basis that compliance with the standard 
would cause substantial economic hardship.\8\ Czinger is seeking a 
temporary exemption for three years to allow Czinger to produce 55 
noncompliant vehicles. Czinger states that all glazing on the 21C will 
be compliant with FMVSS No. 205 with the exception of the 
windshield.\9\ Czinger states that it believes that the only 
requirements with which the windshield will not comply are those 
regarding abrasion resistance.\10\ As described in Czinger's petition, 
the windshield for the 21C is made from polycarbonate to accommodate 
the windshield's unique shape.\11\
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    \8\ Czinger petition at page 4.
    \9\ Id.
    \10\ Id. Czinger notes in their petition that the abrasion 
requirements may still be met as development is ongoing.
    \11\ Id. at page 9.
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    Czinger states that it is a very small volume start-up producer of 
innovative sports cars and has not yet started manufacturing.\12\ Once 
production starts in 2023, Czinger states that it will produce 
approximately 50 cars per year worldwide.\13\ The forecasted production 
and US sales estimates provided by Czinger indicate that, for the three 
years for which Czinger is requesting a temporary exemption, Czinger 
expects to sell a total of 55 vehicles to the U.S. market.\14\ Czinger 
states that its 21C model vehicle is presently under development and 
describes it as a Hypercar comprised of lightweight materials and a 
power-dense production internal combustion engine.\15\ Czinger further 
explains that the vehicle is produced using Additive Manufacturing (AM) 
technology (the industrial production name for 3D printing), which 
Czinger asserts requires less material, less energy, and less 
infrastructure than current, widely used, production techniques.\16\
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    \12\ Id. at page 3.
    \13\ Id.
    \14\ Id. at page 6. Czinger's forecasted production for Model 
Years 2023, 2024, and 2025 is 20 vehicles, 50 vehicles, and 10 
vehicles respectively, with an estimated 10 vehicles, 35 vehicles, 
and 10 vehicles sold in the U.S. in those years.
    \15\ Id. at page 3.
    \16\ Id.
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B. Substantial Economic Hardship

    To be eligible for a temporary exemption under the substantial 
economic hardship basis, the petitioner's total motor vehicle 
production in the most recent year of production must be not more than 
10,000 vehicles.\17\ To demonstrate compliance with this requirement, 
and pursuant to 49 CFR 555.6(a)(2)(v),

[[Page 40587]]

Czinger stated that it has not produced any motor vehicles to date.\18\
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    \17\ 49 U.S.C. 30113(d).
    \18\ Czinger petition at page 4.
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    In support of its claim that compliance with the windshield 
requirements would cause substantial economic hardship, Czinger states 
that it is experiencing substantial economic hardship, which would be 
exacerbated by the denial of its exemption petition.\19\ Czinger states 
that it has 35 employees and has been operating since 2021 without any 
sales.\20\ Czinger states that, in a best-case scenario, the company 
will have two additional years with high expenses and no sales while 
product development for the 21C is completed.\21\
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    \19\ Id. at page 6.
    \20\ Id.
    \21\ Id.
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    Czinger states that compliance with the standard will result in an 
extra loss of $38 million.\22\ Czinger explains that the additional 
loss would result from an additional $3.7 million in research in 
development costs, a 6-month delay bringing their product to market, 
and a 15% loss of 21C sales due to the car's modified aesthetics 
(necessitated by a laminated windshield).\23\
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    \22\ Id. at page 7.
    \23\ Id.
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    In further support of its petition, Czinger notes that it has been 
enduring the pandemic and supply chain issues which, Czinger states, 
are straining even established OEMs.\24\ As a startup, Czinger states 
that it needs flexibility to endure these challenges.\25\
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    \24\ Id. at page 8.
    \25\ Id.
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C. Good Faith Efforts To Comply

    Pursuant to 49 CFR 555.6(a)(2), a petition for a temporary 
exemption made under the substantial economic hardship basis must 
include a description of the petitioner's efforts to comply with the 
standard for which the exemption is sought. In support of its petition, 
Czinger asserts that it has put considerable good faith efforts into 
FMVSS compliance.\26\
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    \26\ Id.
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    Czinger states that the 21C has been designed with in-line seating 
for two occupants.\27\ The central seating position, Czinger explains, 
allows for an extremely streamlined frontal profile, reducing drag and 
improving fuel economy, as well as improving performance.\28\ Czinger 
states that this ``fighter jet'' design has been highly regarded by 
media, and more significantly, prospective clients.\29\
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    \27\ Id.
    \28\ Id.
    \29\ Id.
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    Czinger states that the wrap-around cockpit is realized by a unique 
double curvature windscreen, which during prototype stage, was produced 
in polycarbonate by a supplier in Europe, Iscolima.\30\ Czinger states 
that the hard polycarbonate material passes European requirements in 
accordance with ECE R43, including impact performance and abrasion haze 
resistance.\31\ Czinger states that because of the extreme size and 
shape of the 21C windshield, its supplier, Iscolima, has informed 
Czinger that the windshield must be produced in polycarbonate.\32\
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    \30\ Id.
    \31\ Id.
    \32\ Id. at page 9.
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    Czinger also states that at an early stage in the development of 
the 21C, their supplier Isoclima indicated that it believed the 
polycarbonate windshield would meet regulatory requirements for the USA 
market.\33\ Czinger states that, based on this information, Czinger 
proceeded with the polycarbonate windshield development.\34\
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    \33\ Id.
    \34\ Id.
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    Czinger also states that, despite Iscolima's opinion that the shape 
of the 21C windshield could not be produced in laminated glass, Czinger 
invested time and money trying to develop, with the help of multiple 
suppliers, the planned windshield shape in laminated glass.\35\ These 
efforts, Czinger states, have not been successful.\36\
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    \35\ Id.
    \36\ Id.
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D. Czinger's Public Interest Argument

    Czinger asserts that granting their petitions is consistent with 
the public interest and the Safety Act for the following reasons:
    1. The 21C model range will comply with all FMVSS other than the 
windshield requirements in FMVSS 205.\37\
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    \37\ Id. at page 10.
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    2. The exempted cars will have a windshield that meets all EU 
requirements.\38\
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    \38\ Id.
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    3. The exempted cars will not present an unacceptable safety 
risk.\39\
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    \39\ Id. at pages 10-11.
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    4. The 21C will be produced in the US in very low numbers and will 
not be used daily due to its unconventional design.\40\
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    \40\ Id. at page 11.
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    5. The denial of the exemption request could have a negative effect 
on US employment.\41\
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    \41\ Id.
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    6. The 21C's innovative technology is a benefit to the public.\42\
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    \42\ Id at page 12.
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III. Agency's Review of Czinger's Petition

    NHTSA has not yet made any judgment on the merits of Czinger's 
petition nor on the adequacy of the information submitted. NHTSA will 
assess the merits of the petition and consider public comments on the 
petition, as well as any additional information that the agency 
receives from Czinger. NHTSA is placing a non-confidential copy of the 
petition in the docket in accordance with statutory and administrative 
provisions.

IV. Public Participation

A. Request for Comment and Comment Period

    The agency seeks comment from the public on the merits of Czinger's 
petition for a temporary exemption from portions of FMVSS No. 205.
    NHTSA is providing a 30-day comment period. After conducting a 
review of the adequacy for the justification for the petition and 
considering public comments, NHTSA will publish a decision notice 
regarding the petition in the Federal Register.

B. Instructions for Submitting Comments

How long do I have to submit comments?
    Please see DATES section at the beginning of this document.
How do I prepare and submit comments?
    <bullet> Your comments must be written in English.
    <bullet> To ensure that your comments are correctly filed in the 
Docket, please include the Docket Number shown at the beginning of this 
document in your comments.
    <bullet> If you are submitting comments electronically as a PDF 
(Adobe) File, NHTSA asks that the documents be submitted using the 
Optical Character Recognition (OCR) process, thus allowing NHTSA to 
search and copy certain portions of your submissions. Comments may be 
submitted to the docket electronically by logging onto the Docket 
Management System website at http://www.regulations.gov. Follow the 
online instructions for submitting comments.
    <bullet> You may also submit two copies of your comments, including 
the attachments, to Docket Management at the address given above under 
ADDRESSES.
    Please note that pursuant to the Data Quality Act, in order for 
substantive data to be relied upon and used by the agency, it must meet 
the information

[[Page 40588]]

quality standards set forth in the OMB and DOT Data Quality Act 
guidelines. Accordingly, we encourage you to consult the guidelines in 
preparing your comments. OMB's guidelines may be accessed at http://www.whitehouse.gov/omb/fedreg/reproducible.html. DOT's guidelines may 
be accessed at http://www.bts.gov/programs/statistical_policy_and_research/data_quality_guidelines.
How do I submit confidential business information?
    If you wish to submit any information under a claim of 
confidentiality, you should submit three copies of your complete 
submission, including the information you claim to be confidential 
business information, to the Chief Counsel, NHTSA, at the address given 
above under FOR FURTHER INFORMATION CONTACT. In addition, you should 
submit two copies, from which you have deleted the claimed confidential 
business information, to Docket Management at the address given above 
under ADDRESSES. When you send a comment containing information claimed 
to be confidential business information, you should include a cover 
letter setting forth the information specified in our confidential 
business information regulation. (49 CFR part 512). To facilitate 
social distancing during COVID-19, NHTSA is temporarily accepting 
confidential business information electronically. Please see https://www.nhtsa.gov/coronavirus/submission-confidential-business-information 
for details.
Will the Agency consider late comments?
    We will consider all comments that Docket Management receives 
before the close of business on the comment closing date indicated 
above under DATES. To the extent possible, we will also consider 
comments that Docket Management receives after that date.
How can I read the comments submitted by other people?
    You may see the comments on the internet. To read the comments on 
the internet, go to http://www.regulations.gov. Follow the online 
instructions for accessing the dockets.
    Please note that, even after the comment closing date, we will 
continue to file relevant information in the Docket as it becomes 
available. Further, some people may submit late comments. Accordingly, 
we recommend that you periodically check the Docket for new material.

    Authority: 49 U.S.C. 30113 and 49 U.S.C. 30166; delegations of 
authority at 49 CFR 1.95 and 49 CFR 501.5.

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.95 and 501.8.
Steven S. Cliff,
Administrator.
[FR Doc. 2022-14464 Filed 7-6-22; 8:45 am]
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