I 113th CONGRESS 2d Session H. R. 4013 IN THE HOUSE OF REPRESENTATIVES February 6, 2014 Mr. Campbell (for himself, Mr. Barrow of Georgia , and Mr. Hunter ) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL 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.

1. Short title This Act may be cited as the Low Volume Motor Vehicle Manufacturers Act of 2014 . 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. . 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. . 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.