To direct the National Highway Traffic Safety Administration to establish a program allowing low volume motor vehicle manufacturers to produce a limited number of vehicles annually within a regulatory system that addresses the unique safety and financial issues associated with limited production, and to direct the Environmental Protection Agency to allow low volume motor vehicle manufacturers to install engines from vehicles that have been issued certificates of conformity.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Low Volume Motor Vehicle 
Manufacturers Act of 2014''.

SEC. 2. EXEMPTION FROM VEHICLE SAFETY STANDARDS FOR LOW VOLUME 
              MANUFACTURERS.

    Section 30114 of title 49, United States Code, is amended--
            (1) by striking ``The'' and inserting ``(a) Vehicles Used 
        for Particular Purposes.--The''; and
            (2) by adding at the end the following new subsection:
    ``(b) Exemption for Low Volume Manufacturers.--
            ``(1) In general.--The Secretary shall--
                    ``(A) exempt from specified standards not more than 
                1,000 replica motor vehicles per year that are 
                manufactured or imported by a low volume manufacturer;
                    ``(B) exempt from specified standards not more than 
                50 non-replica motor vehicles per year that are 
                manufactured or imported by a single low volume 
                manufacturer by requiring each low volume manufacturer 
                to have evidence of a sales contract to be eligible for 
                the exemption; and
                    ``(C) permit a low volume manufacturer to assign 
                vehicle identification numbers.
            ``(2) Cap on non-replica motor vehicles exemptions.--The 
        Secretary may not provide exemptions for more than 1,000 non-
        replica motor vehicles per year under paragraph (1)(B). The 
        Secretary shall provide a fair and reasonable method for 
        annually recording and publicly reporting such exemptions.
            ``(3) Exception.--Except as provided in this subsection, a 
        low volume manufacturer shall be considered a motor vehicle 
        manufacturer for purposes of subtitle VI of this title.
            ``(4) Registration requirement.--To qualify for an 
        exemption under paragraph (1), a low volume manufacturer shall 
        register with the Secretary at such time, in such manner, and 
        under such terms that the Secretary determines appropriate.
            ``(5) Permanent label requirement.--
                    ``(A) In general.--The Secretary shall require a 
                low volume manufacturer to affix a permanent label--
                            ``(i) to a motor vehicle exempted under 
                        paragraph (1) that identifies the specified 
                        standards from which such vehicle is exempt; 
                        and
                            ``(ii) to a replica motor vehicle exempted 
                        under paragraph (1)(A), that designates the 
                        model year such vehicle replicates.
                    ``(B) Written notice.--The Secretary may require a 
                low volume manufacturer of a motor vehicle exempted 
                under paragraph (1) to deliver written notice of the 
                exemption to--
                            ``(i) the dealer; and
                            ``(ii) the first purchaser of the motor 
                        vehicle, if the first purchaser is not an 
                        individual that purchases the motor vehicle for 
                        resale.
                    ``(C) Reporting requirement.--A low volume 
                manufacturer shall annually submit a report to the 
                Secretary including the number and description of the 
                motor vehicles exempted under paragraph (1) and a list 
                of the exemptions described on the label affixed under 
                subparagraph (A).
            ``(6) Notification, recall, and remedy requirements.--If a 
        motor vehicle has any defects related to motor vehicle safety 
        or any nonconformities regarding any standards other than 
        specified standards, a low volume manufacturer of such vehicle 
        is subject to all notification, recall, and remedy requirements 
        set forth in sections 30116 through 30120A of this title.
            ``(7) Definitions.--In this subsection:
                    ``(A) Low volume manufacturer.--The term `low 
                volume manufacturer' means a motor vehicle manufacturer 
                whose annual worldwide production is not more than 
                5,000 motor vehicles.
                    ``(B) Non-replica motor vehicle.--The term `non-
                replica motor vehicle' means any motor vehicle produced 
                by a low volume manufacturer that is not a replica 
                motor vehicle.
                    ``(C) Replica motor vehicle.--The term `replica 
                motor vehicle' means a motor vehicle produced by a low 
                volume manufacturer and 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 subject to being manufactured 
                        under trademark or trade dress or design patent 
                        license, if such exists, from the original 
                        manufacturer or its assignee that is the 
                        current owner of an active, valid, and 
                        subsisting trademark registration or patent as 
                        indicated in the records of the United States 
                        Patent and Trademark Office for the non-
                        functional and ornamental portions of the motor 
                        vehicle that is intended to be replicated.
                    ``(D) Specified standard.--The term `specified 
                standard' means--
                            ``(i) any motor vehicle standard or 
                        obligation described in any of sections 
                        30112(a), 32304, 32502, or 32902 of this title, 
                        or in section 3 of the Automobile Information 
                        Disclosure Act (15 U.S.C. 1232); and
                            ``(ii) does not include any standard 
                        promulgated under section 30112(a) applicable 
                        to motor vehicle equipment.''.

SEC. 3. VEHICLE COMPLIANCE STANDARDS FOR LOW VOLUME MOTOR VEHICLE 
              MANUFACTURERS.

    Part A of title II of the Clean Air Act (42 U.S.C. 7521 et seq.) is 
amended--
            (1) in section 206(a) by adding at the end the following 
        new paragraph:
            ``(5)(A) A motor vehicle engine (including all engine 
        emission controls) from a motor vehicle that has been granted a 
        certificate of conformity by the Administrator, or an engine 
        that has been granted an Executive order subject to regulations 
        promulgated by the California Air Resources Board, may be 
        installed in an exempted specially produced motor vehicle, if--
                    ``(i) the manufacturer of the engine supplies 
                written instructions explaining how to install the 
                engine and maintain functionality of the engine's 
                emission control system and the on-board diagnostic 
                system (commonly known as `OBD II'), except with 
                respect to evaporative emissions diagnostics;
                    ``(ii) the producer of the exempted specially 
                produced motor vehicle installs the engine in 
                accordance with such instructions; and
                    ``(iii) the installation instructions include 
                emission control warranty information from the engine 
                manufacturer in compliance with section 207, including 
                where warranty repairs can be made, emission control 
                labels to be affixed to the vehicle, and the 
                certificate of conformity number for the applicable 
                vehicle in which the engine was originally intended or 
                the applicable Executive order number for the engine.
            ``(B) A motor vehicle containing an engine compliant with 
        the requirements of subparagraph (A) shall be treated as 
        meeting the requirements of section 202 applicable to new 
        vehicles manufactured or imported in the model year in which 
        the exempted specially produced motor vehicle is assembled.
            ``(C) Engine installations that are not performed in 
        accordance with installation instructions provided by the 
        manufacturer and alterations to the engine not in accordance 
        with the installation instructions shall be treated as 
        prohibited acts by the installer under section 203 and subject 
        to penalties under section 205.
            ``(D) The producer of an exempted specially produced motor 
        vehicle that has an engine compliant with the requirements of 
        subparagraph (A) shall provide to the purchaser of such vehicle 
        all information received by the producer from the engine 
        manufacturer, including information regarding emissions 
        warranties from the engine manufacturer and all emissions-
        related recalls by the engine manufacturer.
            ``(E) To qualify to install an engine under this paragraph, 
        a producer of exempted specially produced motor vehicles shall 
        register with the Administrator at such time and in such manner 
        as the Administrator determines appropriate. The producer shall 
        submit an annual report to the Administrator that includes--
                    ``(i) a description of the exempted specially 
                produced motor vehicles produced and engines installed 
                in such vehicles; and
                    ``(ii) the certificate of conformity number issued 
                to the motor vehicle in which the engine was originally 
                intended or the applicable Executive order number for 
                the engine.
            ``(F) Exempted specially produced motor vehicles compliant 
        with this paragraph shall be exempted from--
                    ``(i) motor vehicle certification testing that 
                might otherwise be required under section 206; and
                    ``(ii) vehicle emission control inspection and 
                maintenance programs required under section 110.
            ``(G) A producer of exempted specially produced motor 
        vehicles that is compliant with subparagraphs (A) through (E) 
        of this paragraph is not considered a manufacturer for the 
        purposes of this Act.''; and
            (2) in section 216 by adding at the end the following new 
        paragraph:
            ``(12) Exempted specially produced motor vehicle.--The term 
        `exempted specially produced motor vehicle' means a replica 
        motor vehicle or non-replica motor vehicle that is exempt from 
        specified standards as defined in section 30114(b) of title 49, 
        United States Code.''.

SEC. 4. IMPLEMENTATION.

    Not later than 12 months after the date of the enactment of this 
Act, the Secretary of Transportation and the Administrator of the 
Environmental Protection Agency shall issue such regulations as may be 
necessary to implement sections 2 and 3 of this Act, respectively.

Summary: Low Volume Motor Vehicle Manufacturers Act of 2014 - Directs the Secretary of Transportation (DOT) to exempt from certain federal motor vehicle safety and labeling standards (except any standard relating to motor vehicle equipment) up to: (1) 1,000 replica motor vehicles per year manufactured or imported by a low volume manufacturer, and (2) 50 non-replica motor vehicles per year manufactured or imported by a single low volume manufacturer that has evidence of a sales contract.  Defines the term &quot;low volume manufacturer&quot; to mean a motor vehicle manufacturer who annually produces no more than 5,000 motor vehicles worldwide. Directs the Secretary to permit manufacturers to assign vehicle identification numbers. Requires manufacturers to register with the Secretary to qualify for an exemption. Directs the Secretary to require a manufacturer to affix a permanent label to: (1) an exempt non-replica motor vehicle that identifies the motor vehicle safety and labeling standards from which that vehicle is exempt, and (2) an exempt replica motor vehicle that designates the model year that vehicle replicates. Subjects low-volume manufacturers to all federal motor vehicle safety defect notification, recall, and remedy requirements if a particular motor vehicle has any defects related to motor vehicle safety or any nonconformities regarding any standards other than specified standards. Amends the Clean Air Act to allow a low volume motor vehicle manufacturer to install in an exempted specifically produced replica or non-replica motor vehicle a motor vehicle engine (including engine emission controls) from a motor vehicle that has been issued a certificate of conformity with Environmental Protection Administration (EPA) emission control standards if certain requirements are met.