Document ID: NHTSA-2010-0154-0001
Agency: nhtsa
Document Type: Rule
Title: Applications for Temporary Exemption from Various Requirements: Terrafugia, Inc.
Posted Date: 2010-11-16T05:00Z

[Federal Register Volume 75, Number 220 (Tuesday, November 16, 2010)]
[Notices]
[Pages 70071-70074]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28732]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2010-0154]

Terrafugia, Inc.; Receipt of Application for Temporary Exemption 
From Requirements for Tire Selection and Rims for Motor Vehicles FMVSS 
No. 110, Electronic Stability Control Systems FMVSS No. 126, Glazing 
Materials FMVSS No. 205, and Occupant Crash Protection FMVSS No. 208

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

ACTION: Notice of receipt of petition for temporary exemption and 
request for comments.

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SUMMARY: In accordance with the procedures in 49 CFR Part 555, 
Terrafugia, Inc. (``Terrafugia''), has petitioned the agency for a 
temporary exemption from certain FMVSS requirements for the 
Transition[reg], a Light Sport Aircraft that has road-going capability. 
Terrafugia seeks exemption from the FMVSS requirements for tire 
selection and rims for motor vehicles (FMVSS No. 110), electronic 
stability control systems (FMVSS No. 126), glazing materials (FMVSS No. 
205), and occupant crash protection, specifically advanced air bags 
(FMVSS No. 208). The basis for the application is that compliance would 
cause substantial economic hardship to a manufacturer that has tried in 
good faith to comply with the standard.
    NHTSA is publishing this notice of receipt of an application for 
temporary exemption and providing an opportunity to comment in 
accordance with the requirements of 49 U.S.C. Sec.  30113(b)(2). NHTSA 
has not made any judgment on the merits of the application.

DATES: You should submit your comments not later than December 16, 
2010.

FOR FURTHER INFORMATION CONTACT: William Shakely, Office of the Chief 
Counsel, NCC-112, National Highway Traffic Safety Administration, 1200 
New Jersey Avenue, SE., West Building 4th Floor, Room W41-318, 
Washington, DC 20590. Telephone: (202) 366-2992; Fax: (202) 366-3820.

COMMENTS: We invite you to submit comments on the application described 
above. You may submit comments identified by docket number at the 
heading of this notice by any of the following methods:
     Online: Go to http://www.regulations.gov. Follow the 
instructions for submitting comments on the electronic docket site by 
clicking on ``Help'' or ``FAQs.''
     Fax: 1-202-493-2251.
     Mail: U.S. Department of Transportation, Docket 
Operations, M-30, Room W12-140, 1200 New Jersey Avenue, SE., 
Washington, DC 20590.
     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.
    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. We 
will consider all comments received before the close of business on the 
comment closing date indicated above. To the extent possible, we 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. Telephone: (202) 366-9826.
    Privacy Act: 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, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477-78) or you may visit http://www.dot.gov/privacy.html.
    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 under FOR FURTHER INFORMATION CONTACT. In 
addition, you should submit two copies, from which you have deleted the 
claimed confidential business information, to Docket Operations at the 
address given above. 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).

SUPPLEMENTARY INFORMATION:

[[Page 70072]]

I. Overview of Terrafugia, Inc. and Its Petition for an Economic 
Hardship Exemption

    In accordance with 49 U.S.C. 30113 and the procedures in 49 CFR 
Part 555, Terrafugia has petitioned (dated July 20, 2010) the agency 
for a temporary exemption from certain FMVSS requirements for the 
Transition[supreg], a Light Sport Aircraft that has road-going 
capability. Terrafugia seeks an exemption from requirements for tire 
selection and rims for motor vehicles (FMVSS No. 110), electronic 
stability control systems (FMVSS No. 126), glazing materials (FMVSS No. 
205), and advanced air bags (FMVSS No. 208). The basis for the 
application is that compliance would cause substantial economic 
hardship to the manufacturer who has tried in good faith to comply with 
the standard. Terrafugia has requested a three-year hardship exemption. 
A copy of the petition is available for review and has been placed in 
the docket of this notice.\1\
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    \1\ To view the petition, go to http://www.regulations.gov and 
enter the docket number set forth in the heading of this document. 
The company requested confidential treatment under 49 CFR Part 512 
for certain business and financial information submitted as part of 
its petition for temporary exemption. Accordingly, the information 
placed in the docket does not contain such information that the 
agency has determined to be confidential.
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    According to the petition, Terrafugia is a small, privately held 
company that was incorporated in the state of Delaware in 2006, and 
maintains headquarters in Woburn, Massachusetts. Terrafugia states that 
the company employs ten full-time employees. The company identifies 
itself as a Massachusetts Institute of Technology (MIT) spin-off 
company, but states that it does not have access to MIT's financial 
resources. The company also states that it is not affiliated with any 
other aircraft or automobile manufacturer.
    Terrafugia has designed and built the first prototype of the 
Transition[supreg], which it describes as a ``Roadable Aircraft.'' 
Terrafugia characterizes the Transition[supreg] as a Light Sport 
Aircraft (LSA), as defined by the Federal Aviation Administration 
(FAA), and states that the road-going capability in the aircraft will 
``provide a significant increase in operational functionality and 
safety for the General Aviation pilot community by allowing pilots to 
safely continue their travel plans in the event of inclement weather.'' 
\2\
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    \2\ See Terrafugia Petition, p. 3.
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    To date, Terrafugia has not produced any vehicles for sale, but 
intends to begin delivery of the Transition[supreg] in 2011 and 
anticipates producing 200 aircraft during the three-year requested 
exemption period. Terrafugia states that it expects to remain a low-
volume manufacturer for the foreseeable future, continuing to market 
the Transition[supreg] as an aircraft with road-going capability, not 
as a ``flying car.'' Thus, the primary market for the 
Transition[supreg] will be U.S. pilots.
    The agency has not made any judgment on the eligibility of the 
petitioner or the merits of the application, and is placing a non-
confidential copy of the petition in the docket. In accordance with 49 
U.S.C. 30113(b)(2), NHTSA invites comments on the subject petition as 
discussed in the ``COMMENTS'' section of this notice. After considering 
public comments and other available information, the agency will 
publish a notice of final action on the application in the Federal 
Register.\3\
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    \3\ 49 U.S.C. 30113(g).
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II. Statutory Basis for Requested Part 555 Exemption

    The National Traffic and Motor Vehicle Safety Act, as amended, 
codified as 49 U.S.C. Chapter 301, provides the Secretary of 
Transportation authority to exempt, on a temporary basis and under 
specified circumstances, motor vehicles from a motor vehicle safety 
standard or bumper standard. This authority is set forth at 49 U.S.C. 
30113. The Secretary has delegated the authority for this section to 
NHTSA.\4\
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    \4\ 49 CFR 1.50.
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    NHTSA established part 555, Temporary Exemption from Motor Vehicle 
Safety and Bumper Standards, to implement the statutory provisions 
concerning temporary exemptions. Vehicle manufacturers may apply for 
temporary exemptions on several bases, one of which is that compliance 
would cause substantial economic hardship to a manufacturer that has 
tried in good faith to comply with the standard.
    A petitioner must provide specified information in submitting a 
petition for exemption.\5\ Foremost among these requirements are that 
the petitioner must set forth the basis of the application under Sec.  
555.6, and the reasons why the exemption would be in the public 
interest and, as applicable, consistent with the objectives of 49 
U.S.C. Chapter 301.
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    \5\ 49 CFR 555.5.
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    A manufacturer is eligible to apply for a hardship exemption if its 
total motor vehicle production in its most recent year of production 
did not exceed 10,000 vehicles, as determined by the NHTSA 
Administrator.\6\ In determining whether a manufacturer of a vehicle 
meets that criterion, NHTSA considers whether a second vehicle 
manufacturer also might be deemed the manufacturer of that vehicle.
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    \6\ 49 U.S.C. 30113(d).
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    Finally, while 49 U.S.C. 30113(b) states that exemptions from a 
Federal motor vehicle safety standard prescribed under Chapter 301 are 
to be granted on a ``temporary basis,'' the statute also expressly 
provides for renewal of an exemption on reapplication.\7\ Manufacturers 
are nevertheless cautioned that the agency's decision to grant an 
initial petition in no way predetermines that the agency will 
repeatedly grant renewal petitions. Exempted manufacturers seeking 
renewal must bear in mind that the agency is directed to consider 
financial hardship as but one factor, along with the manufacturer's on-
going good faith efforts to comply with the regulation and the public 
interest among other factors provided in the statute.
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    \7\ 49 U.S.C. 30113(b)(1).
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III. Terrafugia's Petition for an Economic Hardship Exemption

    Terrafugia's basis for the petition is that requiring compliance 
with the stated provisions ``would cause substantial economic hardship 
to a manufacturer that has tried to comply with the standard in good 
faith.'' 49 U.S.C. 30113(b)(3)(B)(i). Terrafugia requests that the 
exemption period begin with the first delivery of the 
Transition[supreg] on or near December 2011 and extend for a period of 
three years. This section broadly discusses Terrafugia's statements of 
economic hardship and public interest. Please refer to the petition in 
the docket for more details.

A. Terrafugia's Statement of Economic Hardship

    Terrafugia states that the denial of the requested exemption will 
result in substantial economic hardship. The Transition's[supreg] dual-
purpose as an aircraft and ground vehicle has necessitated the 
application of both FAA regulations for LSA and the FMVSS established 
by NHTSA and applicable to manufacturers of new motor vehicles and 
motor vehicle equipment. Terrafugia contends that ``it is not always 
possible to completely merge the two regulations without compromising 
safety, incurring prohibitive costs, and/or reducing core 
functionality.'' \8\ For example, in order to comply with the maximum 
weight requirement of the

[[Page 70073]]

FAA for LSA,\9\ Terrafugia calculates that for each pound of weight 
that can be removed from the aircraft to accommodate additional 
equipment in conformity with FMVSS, it costs $14,500 per pound \10\ in 
development costs and adds $4,200 \11\ to the cost of the aircraft.\12\ 
Terrafugia estimates that the denial of this petition for exemption 
would double the price point of the Transition[supreg], significantly 
lowering the demand for the vehicle and, likely, forcing the company to 
abandon LSA certification and the development of the 
Transition[supreg].
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    \8\ Terrafugia Petition, p. 3.
    \9\ Terrafugia obtained a partial grant of exemption from the 
FAA (FAA Docket No. FAA-2009-1087), allowing the Transition[supreg] 
to have a maximum takeoff weight (MTOW) of 1,430 pounds (650 kg) 
instead of the general MTOW requirement of 1,320 pounds (600 kg).
    \10\ Terrafugia explains that this is based on the experience of 
removing weight between the Proof of Concept vehicle to the 
prototype and the fact that as more and more weight must be removed, 
it becomes increasingly more difficult to do so.
    \11\ Terrafugia explains that this figure is based on identified 
cost vs. weight trade-offs, such as material replacement, and a 
minimal margin.
    \12\ Terrafugia notes that there is a physical limitation as to 
how much weight can be removed from the vehicle, at any cost, before 
it is no longer capable of safely performing its function. The 
dollar values provided by Terrafugia are applicable until that limit 
is reached, past which very little can be done at any price and the 
product is no longer viable.
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    Terrafugia states that a grant of the requested exemptions would 
allow the company to continue with LSA certification for the 
Transition[supreg] while pursuing lightweight compliance solutions and 
researching additional ways of reducing the weight of non-safety 
critical systems for the aircraft.

B. Terrafugia's Statement of Public Interest

    Terrafugia asserts that the requested exemptions are in the public 
interest because the Transition[supreg] will increase the safety of 
flight for General Aviation (GA) \13\ in the United States, contribute 
to the advancement of technology for light aircraft and light-weight, 
fuel efficient automobiles, and improve the environment and economy.
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    \13\ Terrafugia explains that General Aviation is the segment of 
the air transportation industry characterized by flight outside of 
the commercial airline system and military operations.
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    According to Terrafugia's petition, one of the most significant 
causes of GA accidents and fatalities is weather, and a leading cause 
of weather-related accidents is when pilots flying primarily on visual 
references find themselves in a situation where those references are 
compromised, get disoriented, and enter an unrecoverable situation that 
results in an often fatal accident.\14\ According to Terrafugia, the 
Transition[supreg] offers a new alternative to pilots, which allows 
them to divert to the nearest airport and continue the trip on the 
ground. Although the trip may take longer, Terrafugia states that the 
Transition[supreg] is expected to eliminate the possibility of an 
indeterminately long delay caused by either retracing the flight route 
to clearer weather or diverting and waiting for the weather to pass. 
Terrafugia expects that the Transition[supreg] will contribute to 
significantly reducing a major source of fatal aviation accidents, 
while also making GA more appealing and accessible to a greater number 
of people. Additionally, because the Transition[supreg] is equipped 
with basic FMVSS occupant crash protection features, it is advancing 
passenger safety technology in light aircraft.
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    \14\ Terrafugia Petition, p. 22.
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    The Transition[supreg] uses an FAA certified, four cylinder, 100 
horsepower, unleaded gasoline-fueled aircraft engine to power the 
vehicle both in the air and on the ground. Terrafugia contends that the 
use of unleaded gasoline will provide ``significant ecological and 
energy benefits,'' as compared to the leaded gasoline used in other GA 
aircraft. Terrafugia also envisions that one day a future version of 
the Transition[supreg] may play a role in reducing highway congestion 
and CO2 emissions by enabling more people to shift from 
highway-based travel to a combination of flight and road use for mid-
range trips. Terrafugia expects that the Transition[supreg] will cruise 
in the air at approximately 105 miles per hour and maintain highway 
speeds on the ground, while attaining between 25 and 40 miles per 
gallon in flight and on the road. Terrafugia anticipates that the 
Transition[supreg] will only be operated on public roadways in 
conjunction with a flight. The company expects that the typical 
recreational owner will operate the vehicle as an aircraft for at least 
65 percent of its engine-on-time, with less than 2,000 miles of road 
driven annually. Terrafugia contends that the combination of low sales 
volume and limited use on roadways limits the Transition's[supreg] 
overall impact on motor vehicle safety.
    Terrafugia also anticipates that by 2015 the production of the 
Transition[supreg] will provide 500 manufacturing, engineering, and 
support jobs to the U.S. economy.

IV. Terrafugia's Requested Temporary Exemptions

    As always, we are concerned about the potential safety implication 
of any temporary exemption granted by this agency. In the present case, 
we are addressing a petition submitted for a temporary exemption from 
FMVSS requirements pertaining to tire and rim selection, electronic 
stability control (ESC), glazing materials, and advanced air bags. 
According to the petition, the three-year requested exemption period 
will give the petitioner, Terrafugia, the needed time and revenue to 
reach compliant solutions.

A. 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, Sections S4.1, 
S4.4 \15\
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    \15\ 49 CFR 571.110.
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    Terrafugia seeks an exemption from the tire and rim requirements of 
FMVSS No. 110 S4.1 (general requirements), S4.4 (rim requirements). 
Terrafugia states that compliance with the tire and rim requirements 
for motor vehicles with a gross weight rating of 4,536 kilograms or 
less would cause substantial economic hardship, and that Terrafugia has 
tried to comply with the standard in good faith. Terrafugia intends on 
using tires and rims with proper load and speed ratings that are 
certified for motorcycle use. See 49 CFR 571.119. The company states 
that the lighter motorcycle tire and rim combination would provide an 
equivalent level of safety as tires certified for traditional passenger 
vehicles, while allowing for a weight savings of 25 pounds (11.3 kg). 
Terrafugia successfully flight tested the proposed tires for takeoff 
and landing operations in spring 2009 and plans to conduct further 
tests to include handling and braking.

B. FMVSS No. 126, Electronic Stability Control Systems \16\
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    \16\ 49 CFR 571.126.
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    Terrafugia seeks an exemption from the electronic stability control 
(ESC) systems requirements of FMVSS No. 126. ESC systems employ 
automatic computer-controlled braking of individual wheels to assist 
the driver in maintaining control in critical driving situations.\17\ 
NHTSA's crash data study shows that ESC systems reduce the number of 
fatal single-vehicle crashes of passenger cars and sport utility 
vehicles (SUVs). NHTSA also estimates that ESC has the potential to 
prevent 70 percent of the fatal passenger car rollovers and 88 percent 
of the fatal SUV rollovers that would otherwise occur in single-vehicle 
crashes.\18\
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    \17\ 73 FR 54526, 54527 (September 22, 2008).
    \18\ Id.
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    Terrafugia states that it faces two challenges with an off-the-
shelf ESC unit. First, an ESC system would add

[[Page 70074]]

6 pounds of weight to the Transition[supreg] (i.e., assuming weight 
could not be removed elsewhere in the vehicle). Second, an ESC system 
poses a flight risk because by design an ESC system may automatically 
cut the engine power when activated in a vehicle, which would create a 
single point failure that could shut down the Transition's[supreg] 
engine in flight. Terrafugia believes that this additional flight risk 
outweighs the benefit of the ESC system to braking performance on the 
ground. Terrafugia states that it currently does not have the technical 
or financial resources to independently develop an ESC system for its 
dual purpose vehicle and, to date, potential vendors have been 
unwilling to provide an ESC system for use on the Transition[supreg] 
because it is an aircraft.

C. FMVSS No. 205, Glazing Materials, Section S5 \19\
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    \19\ 49 CFR 571.205.
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    Terrafugia seeks an exemption from the glazing material 
requirements of FMVSS No. 205, S5 (``Requirements''), which affect the 
Transition's[supreg] windshield and side windows. Terrafugia states 
that installing compliant glazing materials, such as traditional 
laminated safety glass, would result in a weight penalty of 29 pounds 
(13.2 kg). The company contends that it may not be able to remove this 
additional weight without compromising the safety of existing crash 
protection structures. Further, Terrafugia states that traditional 
automotive glazing materials, when subjected to loading similar to a 
bird strike in flight, either shatter, exposing the occupants to the 
free-stream air, or craze to a level that would substantially inhibit 
the pilots view.
    Alternatively, Terrafugia plans to install polycarbonate glazing 
material, which is normally used in aircraft, and withstands aircraft 
bird strikes well. According to the petition, the polycarbonate 
material has passed intrusion tests without cracking, but Terrafugia is 
still pursuing options for scratch-resistant coating that can be 
certified to tier 1 glass.\20\ In the meantime, Terrafugia intends to 
require that the Transition's[supreg] windshield be subject to regular 
inspections and contends that Transition[supreg] owners, as pilots, 
already are accustomed to strict maintenance standards. Terrafugia 
states that the exemption period will allow it to continue working on 
the capacity of modern coated polycarbonate glazing materials to be 
certified to the FMVSS requirements.
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    \20\ We assume Terrafugia is referring to certification as Item 
1 glazing, or traditional laminated safety glass.
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D. FMVSS No. 208, Occupant Crash Protection, Section S14 (Advanced Air 
Bags) \21\
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    \21\ 49 CFR 571.208.
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    Terrafugia seeks an exemption from the advanced air bag 
requirements of FMVSS No. 208 (S14) because the company currently does 
not have the financial resources to design and install an advanced air 
bag system. The company, however, intends to install basic air bags in 
the Transition[supreg]. Terrafugia states that the Transition[supreg] 
also will be equipped with a carbon fiber omega beam ``safety cage'' 
surrounding the passenger compartment, energy-absorbing crush 
structures, seat belts, and other necessary passenger safety equipment 
not traditionally installed in LSA. According to the petition, 
Terrafugia anticipates using the sales revenue to pursue the 
development of an advanced air bag system, ideally one that would be 
able to differentiate between the needs of an automotive crash and an 
aviation crash.

V. Request for Comments

    We are providing a 30-day comment period and instructions for 
submitting comments are described in the ``COMMENTS'' section of this 
notice. As described in Terrafugia's petition, the Transition[supreg] 
offers a pilot an alternative mode of transportation during periods of 
inclement weather, allowing the pilot to drive on roads rather than fly 
the vehicle. Given the safety features for which Terrafugia seeks 
exemption, NHTSA specifically seeks comment on whether the safety 
benefits of reducing weather-related accidents for flights of the 
Transition[supreg] in inclement weather outweigh the safety risks 
associated with road use of the Transition[supreg] in inclement 
weather. NHTSA further seeks comment on the likelihood that a child 
would be a passenger in the Transition[supreg] (i.e., there is one 
front passenger seat and no rear seats) to evaluate the safety risks 
posed by noncompliance with the advanced air bag requirements.

    Issued on: November 9, 2010.
Nathaniel Beuse,
Director, Office of Crash Avoidance Standards.
[FR Doc. 2010-28732 Filed 11-15-10; 8:45 am]
BILLING CODE 4910-59-P