81_FR_67022 81 FR 66833 - Exemption From Vehicle Theft Prevention Standard

81 FR 66833 - Exemption From Vehicle Theft Prevention Standard

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration

Federal Register Volume 81, Issue 189 (September 29, 2016)

Page Range66833-66842
FR Document2016-22061

In this rulemaking action, NHTSA is finalizing procedures for obtaining an exemption from the vehicle theft prevention standard for vehicles equipped with immobilizers. An immobilizer is an anti-theft device that combines microchip and transponder technology with engine and fuel immobilizer components that can prevent vehicles from starting unless a verified code is received by the transponder. This final rule streamlines the exemption procedure for immobilizer-equipped vehicles by adding performance criteria for immobilizers. The criteria, which roughly correlate with the types of qualities for which petitioners have been submitting testing and technical design details under existing procedures, closely follow the immobilizer performance requirements in the anti-theft standard of Canada. After this final rule, it would be sufficient for a manufacturer seeking the exemption of some of its vehicles to provide data showing that the device meets the performance criteria, as well as a statement that the device is durable and reliable. Adopting these performance criteria for immobilizers bring the U.S. anti-theft requirements more into line with those of Canada.

Federal Register, Volume 81 Issue 189 (Thursday, September 29, 2016)
[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)]
[Rules and Regulations]
[Pages 66833-66842]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22061]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 543

[Docket No. NHTSA-2014-0007]
RIN 2127-AL08


Exemption From Vehicle Theft Prevention Standard

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

ACTION: Final rule.

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SUMMARY: In this rulemaking action, NHTSA is finalizing procedures for 
obtaining an exemption from the vehicle theft prevention standard for 
vehicles equipped with immobilizers.
    An immobilizer is an anti-theft device that combines microchip and 
transponder technology with engine and fuel immobilizer components that 
can prevent vehicles from starting unless a verified code is received 
by the transponder. This final rule streamlines the exemption procedure 
for immobilizer-equipped vehicles by adding performance criteria for 
immobilizers. The criteria, which roughly correlate with the types of 
qualities for which petitioners have been submitting testing and 
technical design details under existing procedures, closely follow the 
immobilizer performance requirements in the anti-theft standard of 
Canada. After this final rule, it would be sufficient for a 
manufacturer seeking the exemption of some of its vehicles to provide 
data showing that the device meets the performance criteria, as well as 
a statement that the device is durable and reliable. Adopting these 
performance criteria for immobilizers bring the U.S. anti-theft 
requirements more into line with those of Canada.

DATES: Effective Date: This rule is effective November 28, 2016.
    Petitions for Reconsideration: Petitions for reconsideration of 
this final rule must be received not later than November 14, 2016.

ADDRESSES: Petitions for reconsideration of this final rule must refer 
to the docket and notice number set forth above and be submitted to the 
Administrator, National Highway Traffic Safety Administration, 1200 New 
Jersey Avenue, SE., Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: 
    For technical issues: Mr. Hisham Mohamed, Office of Consumer 
Programs, NHTSA, 1200 New Jersey Avenue SE., West Building, Washington, 
DC 20590 (Telephone: (202) 366-0307) (Fax: (202) 493-2990).
    For legal issues: Mr. Ryan Hagen, Office of the Chief Counsel, 
NHTSA, 1200 New Jersey Avenue SE., West Building, Washington, DC 20590 
(Telephone: (202) 366-2992) (Fax: (202) 366-3820).

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Executive Summary
II. Background
    A. Effectiveness of Immobilizers in Reducing or Deterring Theft
    B. U.S. Canada Regulatory Cooperation Council
    C. Canadian Motor Vehicle Safety Standard No. 114
III. Proposed Rule
IV. Overview of Comments
V. Response to Comments and Differences Between the Final Rule and 
NPRM
VI. Costs, Benefits, and Compliance Date
VII. Regulatory Notices and Analyses

I. Executive Summary

    This rulemaking action amends 49 CFR part 543, Exemption from 
Vehicle Theft Prevention Standard, by adding performance criteria for 
immobilizers. The agency has granted many exemptions from the theft 
prevention standard to vehicle lines on the basis that they were 
equipped with immobilizers. In support of petitions for these 
exemptions, manufacturers have provided a substantial amount of data 
seeking to demonstrate the effectiveness of immobilizers in reducing 
motor vehicle theft.
    The criteria, which roughly correlate with the types of qualities 
for which petitioners have been submitting testing and technical design 
details under existing procedures, use the same four performance 
requirements from the Transport Canada standard. For those performance 
requirements, the Canadian standard also sets forth tests that 
manufacturers of vehicles to be sold in Canada must certify to Canadian 
authorities that they have conducted.

[[Page 66834]]

    Adopting these performance criteria would simplify the exemption 
process for manufacturers who installed immobilizers meeting those 
criteria. Currently, in their petitions for exemption, vehicle 
manufacturers describe the testing that they have conducted on the 
immobilizer device and aspects of design of the immobilizer that 
address the areas of performance which the agency has determined are 
important to gauge the effectiveness of the immobilizer in reducing and 
deterring motor vehicle theft. Adding performance criteria for 
immobilizers as another means of qualifying for an exemption from the 
U.S. theft prevention standard will allow manufacturers that are 
installing immobilizers as standard equipment for a line of motor 
vehicles in compliance with Canadian theft prevention standards to more 
easily gain an exemption here. This would reduce the amount of material 
that manufacturers would need to submit to obtain an exemption because 
manufacturers would only be required to indicate and demonstrate that 
the immobilizer met the performance criteria and was durable and 
reliable to be eligible for an exemption.
    This final rule allows manufacturers to obtain an exemption from 
the theft prevention standards by complying with any of the four 
performance criteria currently accepted by Transport Canada. The 
adoption of the performance criteria for immobilizers would bring the 
U.S. anti-theft requirements more into line with those of Canada. This 
harmonization of U.S. and Canadian requirements is being undertaken 
pursuant to ongoing bilateral regulatory cooperation efforts. 
Additionally, two of the performance criteria added by this rule are 
United Nations Economic Commission for Europe (UN/ECE) standards, which 
will allow for greater global harmonization.
    We are retaining the current criteria for gaining an exemption from 
the vehicle theft prevention standard. Therefore, manufacturers would 
still be able to petition the agency to install other anti-theft 
devices as standard equipment in a vehicle line to obtain an exemption 
from the theft prevention standard. While NHTSA has granted many 
petitions for exemption from the theft prevention standard for vehicle 
lines equipped with an immobilizer type anti-theft device, we note that 
a manufacturer is not required to install an immobilizer in order to 
gain an exemption. We note also that this would not increase the number 
of exemptions from the theft prevention standard available to a 
manufacturer.

II. Background

    The Motor Vehicle Theft Law Enforcement Act (the Theft Act), 49 
U.S.C. 33101 et seq., directs NHTSA \1\ to establish theft prevention 
standards for light duty trucks and multipurpose passenger vehicles 
(MPVs) with a gross vehicle weight rating of 6,000 pounds or less and 
passenger cars. The Theft Act also allows NHTSA to exempt one vehicle 
line per model year per manufacturer from the theft prevention standard 
if the vehicle is equipped with an anti-theft device that the agency 
``decides is likely to be as effective in reducing and deterring motor 
vehicle theft as compliance with the [theft prevention] standard.'' 49 
U.S.C. 33106(b). The statute states that in order to obtain an 
exemption, manufacturers must file a petition that describes the anti-
theft device in detail, states the reason that the manufacturer 
believes that the device will be effective in reducing or deterring 
theft, and contains additional information that NHTSA determines is 
necessary to decide whether the anti-theft device ``is likely to be as 
effective in reducing and deterring motor vehicle theft as compliance 
with the [theft prevention] standard.'' \2\
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    \1\ The Secretary of Transportation's responsibilities under the 
Theft Act have been delegated to NHTSA pursuant to 49 CFR 1.95.
    \2\ Id.
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    Pursuant to the Theft Act, NHTSA issued 49 CFR part 541, Federal 
Motor Vehicle Theft Prevention Standard, which requires manufacturers 
of vehicles identified by the agency as likely high-theft vehicle lines 
to inscribe or affix vehicle identification numbers or symbols on 
certain components of new vehicles and replacement parts.\3\ The agency 
refers to this requirement as the parts marking requirement.
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    \3\ Part 541 requires the following major parts to be marked: 
The engine, the transmission, the hood, the right and left front 
fenders, the right and left front doors, the right and left rear 
door (four-door models), the sliding or cargo doors, the decklid, 
tailgate or hatchback (whichever is present), the front and rear 
bumpers, and the right and left quarter panels. The right and left 
side assemblies must be marked on MPVs and the cargo box must be 
marked on light duty trucks.
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    NHTSA promulgated part 543 to establish the process for submitting 
petitions for exemption from the parts marking requirements in the 
theft prevention standard. A manufacturer may petition the agency for 
an exemption from the parts marking requirements for one vehicle line 
per model year if the manufacturer installs an anti-theft device as 
standard equipment on the entire line. In order to be eligible for an 
exemption, part 543 requires manufacturers to submit a petition 
explaining how the anti-theft device will promote activation, attract 
attention to the efforts of unauthorized persons to enter or operate a 
vehicle by means other than a key, prevent defeat or circumvention of 
the device by unauthorized persons, prevent operation of the vehicle by 
unauthorized entrants, and ensure the reliability and durability of the 
device. Based on the materials in the petition, NHTSA decides whether 
to grant the petition in whole or in part or to deny it.
    Under the existing part 543, manufacturers choose how they wish to 
demonstrate to the agency that the anti-theft device they are 
installing in a vehicle line meets the factors listed in Sec.  543.6. 
Manufacturers provide differing levels of detail in their exemption 
petitions. Manufacturers typically provide engineering diagrams of the 
anti-theft device, a description of how the device functions, and 
testing to show that the device is durable and reliable in their 
petitions for exemption. Manufacturers also describe how the design of 
the anti-theft device satisfies the factors listed in Sec.  543.6.

A. Effectiveness of Immobilizers in Reducing or Deterring Theft

    Nearly 700,000 motor vehicle thefts took place in the U.S. in 2013, 
causing a loss of mobility and economic hardship to those affected.\4\ 
The estimated value of motor vehicles stolen in 2011 was $4.1 billion, 
averaging $5,972 per stolen vehicle.\5\ Of the vehicles stolen in the 
United States, nearly 45 percent are never recovered.\6\ While the 
number of motor vehicle thefts fell 3.3 percent from 2012 to 2013, 
vehicle theft remains an ongoing problem in the U.S.\7\ According to 
the FBI, a motor vehicle was stolen every 45 seconds in 2013.\8\
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    \4\ https://www.fbi.gov/about-us/cjis/ucr/crime-in-the-u.s/2013/crime-in-the-u.s.-2013/property-crime/motor-vehicle-theft-topic-page/mvtheftmain_final.pdf (last accessed February 10, 2016).
    \5\ Id.
    \6\ http://www.nhtsa.gov/Vehicle+Safety/Vehicle-Related+Theft/Theft+Prevention (last accessed February 10, 2016).
    \7\ https://www.fbi.gov/about-us/cjis/ucr/crime-in-the-u.s/2013/crime-in-the-u.s.-2013/property-crime/motor-vehicle-theft-topic-page 
(last accessed February 10, 2016).
    \8\ http://www.trafficsafetymarketing.gov/newtsm/VehicleTheftPrevention/11539-VehicleTheftPrevention-FactSheet.pdf 
(last accessed February 10, 2016).
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    An immobilizer is a type of anti-theft device based on microchip 
and transponder technology and combined with engine and fuel 
immobilizer components. When activated, an immobilizer device disables 
the

[[Page 66835]]

vehicle's electrical or fuel systems at several points and prevents the 
vehicle from starting unless the correct code is received by the 
transponder.
    NHTSA is aware of several sources of information demonstrating the 
effectiveness of immobilizer devices in reducing motor vehicle theft. 
In the 1980s, General Motors Corporation (GM) used an early generation 
of microchip devices, which later developed into the rolling code 
transponder device, which is currently installed in GM as well as many 
other vehicles. According to the Highway Loss Data Institute (HLDI), 
immobilizer devices are up to 50 percent effective in reducing vehicle 
theft.\9\ The September 1997 Theft Loss Bulletin from the HLDI reported 
an overall theft decrease of approximately 50 percent for both the Ford 
Mustang and Taurus lines upon installation of an immobilizer device. 
Ford Motor Company claimed that its MY 1997 Mustang vehicle line (with 
an immobilizer) led to a 70 percent reduction in theft compared to its 
MY 1995 Mustang (without an immobilizer).\10\ Chrysler Corporation 
informed the agency that the inclusion of an immobilizer device as 
standard equipment on the MY 1999 Jeep Grand Cherokee resulted in a 52 
percent net average reduction in vehicle thefts.\11\
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    \9\ See http://www.iihs.org/iihs/news/desktopnews/theft-losses-decline-by-half-when-cars-are-equipped-with-immobilizing-antitheft-devices (last accessed February 10, 2016).
    \10\ 77 FR 1974 (January 12, 2012).
    \11\ 76 FR 68262 (November 3, 2011).
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    Mitsubishi Motors Corporation informed the agency that the theft 
rate for its MY 2000 Eclipse vehicle line (with an immobilizer device) 
was almost 42 percent lower than that of its MY 1999 Eclipse (without a 
immobilizer device).\12\ Mazda Motor Corporation reported that a 
comparison of theft loss data showed an average theft reduction of 
approximately 50 percent after an immobilizer device was installed as 
standard equipment in a vehicle line.\13\ In general, the agency has 
granted many petitions for exemptions for installation of 
immobilization-type devices. Manufacturers have provided the agency 
with a substantial amount of information attesting to the reduction of 
thefts for vehicle lines resulting from the installation of 
immobilization devices as standard equipment on those lines.
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    \12\ 77 FR 20486 (April 4, 2012).
    \13\ 76 FR 41558 (July 14, 2011).
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B. U.S. Canada Regulatory Cooperation Council

    On February 4, 2011, the U.S. and the Canadian governments created 
a United States-Canada Regulatory Cooperation Council (RCC), composed 
of senior regulatory, trade and foreign affairs officials from both 
governments. In recognition of the two countries' $1 trillion annual 
trade and investment relationship, the RCC is working together to 
promote economic growth, job creation and benefits to consumers and 
businesses through increased regulatory transparency and 
coordination.\14\
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    \14\ https://www.whitehouse.gov/sites/default/files/omb/oira/irc/us-canada-rcc-joint-forward-plan.pdf (last accessed February 10, 
2016).
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    On December 7, 2011, the RCC established an initial Joint Action 
Plan that identified 29 initiatives where the U.S. and Canada will seek 
greater alignment in their regulatory approaches. The Joint Action Plan 
highlights the areas and initiatives which were identified for initial 
focus. These areas include agriculture and food, transportation, health 
and personal care products and workplace chemicals, environment and 
cross-sectoral issues. One of the topics for regulatory cooperation 
identified in the transportation area is to pursue greater 
harmonization of existing motor vehicle standards. Theft prevention is 
one of the harmonization opportunities identified by the Motor Vehicles 
Working Group.

C. Canadian Motor Vehicle Safety Standard No. 114

    In addition to the theft and rollaway prevention requirements 
included in the U.S. version of the standard, CMVSS No. 114 requires 
the installation of an immobilization system for all new passenger 
vehicles, MPVs and trucks certified to the standard with a gross 
vehicle weight rating (GVWR) of 4,536 kg or less, with some exceptions. 
CMVSS No. 114 contains four different sets of requirements for 
immobilizers. The four sets of requirements are National Standard of 
Canada CAN/ULC-S338-98, Automobile Theft Deterrent Equipment and 
Systems: Electronic Immobilization (May 1998); United Nations Economic 
Commission for Europe (UN/ECE) Regulation No. 97 (ECE R97) in effect 
August 8, 2007, Uniform Provisions Concerning Approval of Vehicle Alarm 
System (VAS) and Motor Vehicles with Regard to Their Alarm System (AS); 
UN/ECE Regulation No. 116 (ECE R116), Uniform Technical Prescriptions 
Concerning the Protection of Motor Vehicles Against Unauthorized Use in 
effect on February 10, 2009; and a set of requirements derived from the 
CAN/ULC 338-98 standard and ECE R97 developed by Transport Canada to 
increase manufacturer design flexibility (in effect March 30, 2011). 
Vehicles certified to CMVSS No. 114 must be equipped with an 
immobilizer meeting one of these four sets of requirements. Used motor 
vehicles imported into Canada must also be equipped with immobilizers 
meeting CMVSS No. 114. This requirement makes it more difficult to 
import into Canada motor vehicles manufactured in the U.S. that are not 
equipped with an immobilizer meeting CMVSS No. 114. In such cases, an 
immobilizer that complies with CMVSS No. 114, usually an aftermarket 
device, must be added to the vehicle before it can be imported into 
Canada.
    CAN/ULC-S338-98 contains design specifications, activation and 
deactivation requirements, durability tests, and tests to assess the 
resistance to physical attack for immobilizers. ECE R97 and ECE R116 
contain design specifications, activation and deactivation 
requirements, durability tests, and tests to assess the resistance to 
physical attack for immobilizers similar to those contained in CAN/ULC-
S338-98. The fourth set of requirements for immobilizers in CMVSS No. 
114 contains design specifications, activation and deactivation 
requirements, and requirements testing the ability of the immobilizer 
to resist deactivation by physical attack derived from the other 
standards. The fourth set of requirements, however, does not include 
the environmental tests and durability requirements that are included 
in CAN/ULC-S338-98, ECE R97 and ECE R116.
    In adopting the fourth set of performance requirements for 
immobilizers contained in CMVSS No. 114, Transport Canada stated that 
some of the environmental and durability requirements for immobilizers 
contained in CAN/ULC-S338-98, ECE R97, and ECE R116 were developed for 
aftermarket immobilizers and should not be applied to immobilizers that 
are installed as original equipment on a vehicle.\15\ Transport Canada 
also stated that those three standards contained requirements specific 
to particular immobilizer designs, had the potential to restrict the 
design of immobilizers, and had the potential to prevent the 
introduction of new and emerging technologies such as keyless vehicle 
technologies, key-replacement technologies and remote starting systems. 
Transport Canada stated that for these reasons it established a set of

[[Page 66836]]

performance requirements without the environmental and durability 
requirements contained in CAN/ULC-S338-98, ECE R97, and ECE R116.
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    \15\ See SOR/2007-246 November, 2007 ``Regulations Amending the 
Motor Vehicle Safety Regulations (Theft Protection and Rollaway 
Prevention--Standard 114)'' 2007-11-14 Canada Gazette Part II, Vol. 
141, No. 23.
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III. Proposed Rule

    The agency proposed to include performance criteria for 
immobilizers in part 543 so that manufacturers may more easily apply 
for exemptions from the parts marking requirements for vehicles lines 
with immobilizers conforming to CMVSS No. 114. NHTSA proposed to add 
performance criteria to part 543 to make our theft prevention standards 
more in line with those of Canada. In order to be eligible for an 
exemption under the proposal, manufacturers would be required to state 
and demonstrate that the immobilizer device they are installing in the 
vehicle line meets the proposed performance criteria and is durable and 
reliable.
    The agency believes that adding performance criteria from CMVSS No. 
114 to part 543 is the simplest way to make our anti-theft regulations 
more in line with that standard and to reduce the burden to 
manufacturers, who are already installing immobilizers in compliance 
with that standard, of applying for an exemption from the parts marking 
requirements. The agency could not add performance requirements for 
immobilizers as part of Federal Motor Vehicle Safety Standard (FMVSS) 
No. 114, Theft Protection and Rollaway Prevention, since doing so would 
require a determination that the additional requirements would be 
consistent with the National Traffic and Motor Vehicle Safety Act 
(Motor Vehicle Safety Act).\16\ Further, the agency is unable to issue 
a theft prevention standard under the Theft Act to require the 
installation of immobilizers because that Act limits the agency's 
standard setting authority to issuing standards that require parts 
marking.\17\ Manufacturers are allowed to install immobilizers in lieu 
of parts marking, but under an exemption from the theft standard, not 
as a compliance alternative included in the theft standard.
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    \16\ 49 U.S.C. 30101 et seq.
    \17\ See 49 U.S.C. 33101(11) (defining ``vehicle theft 
prevention standard'' as a performance standard for identifying 
major vehicle parts by affixing numbers or symbols to those parts).
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    Prior to this final rule, NHTSA had not formally or informally 
adopted any technical performance criteria for anti-theft devices. 
While NHTSA has granted many petitions for exemption from the parts 
marking requirements for vehicle lines equipped with an immobilizer 
anti-theft device, a manufacturer is not required to install an 
immobilizer in order to gain an exemption. The agency proposed to 
retain the current exemption process so that manufacturers would still 
be able to gain an exemption for installing anti-theft devices that do 
not conform to the proposed performance criteria for immobilizers. The 
number of exemptions available to manufacturers would not increase as a 
result of the proposal. Thus, manufacturers will continue to be 
eligible for an exemption from the parts marking requirements for only 
one vehicle line per model year.
    NHTSA proposed only the fourth set of performance criteria for 
immobilizers contained in CMVSS No. 114 for inclusion in part 543. The 
agency proposed to adopt only this one set of performance criteria 
because of the factors articulated by Transport Canada discussed in 
Section C above. Furthermore, the agency proposed adopting only this 
one set of performance criteria as the simplest way to harmonize anti-
theft regulations between the U.S. and Canada. In the proposed rule, 
NHTSA anticipated the possibility that vehicles equipped with 
immobilizers meeting the performance criteria in CAN/ULC-S338-98, ECE 
R97, or ECE R116 would still be able to obtain an exemption from the 
theft prevention standard via a petition filed under the current 
exemption procedures. The agency sought comment on whether it should 
consider including all four performance criteria.
    In its proposal, NHTSA tentatively concluded that immobilizers 
meeting the proposed performance criteria are likely to be as effective 
in reducing and deterring motor vehicle theft as compliance with the 
parts marking requirements in part 541. The agency has granted numerous 
exemptions from the theft prevention standard for vehicle lines 
equipped with immobilizers based on data submitted by manufacturers 
indicating that immobilizers were as effective in reducing and 
deterring motor vehicle theft as compliance with that standard. Several 
studies have also indicated that immobilizers designed to meet 
technical performance criteria are effective in reducing and deterring 
motor vehicle theft. Studies in Australia and Canada on the 
effectiveness of immobilization systems (which meet CAN/ULC-S338-98 or 
ECE R97 and ECE R116) have shown reduced incidence of theft compared to 
vehicles that were not equipped with immobilizers.\18\
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    \18\ See Principles for Compulsory Immobilizer Schemes, prepared 
for the National Motor Vehicle Theft Reduction Council by MM Starrs 
Pty Ltd., ISBN 1 876704 17 9, Melbourne, Australia, October 2002; 
Matthew J Miceli ``A Report on Fatalities and Injuries as a Result 
of Stolen Motor Vehicles (1999-2001),'' prepared for The National 
Committee to Reduce Auto Theft Project #6116 and Transport Canada, 
December 10, 2002.
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    For these reasons, the agency concluded that establishing 
performance criteria for immobilizers as a means of getting an 
exemption from the theft prevention standard is consistent with 49 
U.S.C. 33106 of the Theft Act. That section requires the agency to 
determine that an anti-theft device is likely to be as effective in 
reducing and deterring motor vehicle theft as compliance with the parts 
marking requirements in part 541 in order to grant an exemption from 
those requirements.
    The proposed performance criteria for immobilizers included 
specifications for when the immobilizer should arm after the disarming 
device is removed from the vehicle. The performance criteria state 
that, when armed, the immobilizer should prevent the vehicle from 
moving more than three meters under its own power by inhibiting the 
operation of at least one of the vehicle's electronic control units 
(ECU). Further, the performance criteria state that, when armed, the 
immobilizer should not disable the vehicle's brake system. During the 
disarming process, the immobilizer should send a code to the inhibited 
ECU to allow the vehicle to move under its own power. The immobilizer 
should be configured so that disrupting the device's normal operating 
voltage cannot disarm the immobilizer. Additionally, the immobilizer 
must have a minimum capacity for 50,000 code variants and shall not be 
capable of processing more than 5,000 codes within 24 hours unless the 
immobilizer uses rolling or encrypted codes. The performance criteria 
state that it shall not be possible to replace the immobilizer without 
the use of software. In order to satisfy the performance criteria, the 
immobilizer in a vehicle must be designed so that it is not possible to 
disarm it using common tools within five minutes.
    In order to promote understanding of the new terms used in the 
regulatory text, the agency also proposed definitions for 
``immobilizer'' and ``accessory mode.''
    The agency plans on ensuring that immobilizer devices that 
manufacturers are installing to obtain an exemption conform with the 
proposed performance criteria by requiring manufacturers to state that 
they have certified the immobilizer installed on the vehicle to the 
performance criteria of CMVSS No. 114. Manufacturers must be ready to

[[Page 66837]]

provide Transport Canada with evidence that the immobilizer complies 
with CMVSS No. 114, along with all other applicable Canadian Standards, 
prior to certifying the vehicle under the Canadian Motor Vehicle Safety 
Act.\19\ NHTSA believes that it can rely on the information that 
manufacturers have kept to provide to Transport Canada regarding their 
certification to CMVSS No. 114 to ensure that immobilizers 
manufacturers install in order to obtain an exemption conform to the 
proposed performance criteria. The NPRM proposed that manufacturers 
submit the documentation provided to Transport Canada regarding their 
certification to CMVSS No. 114 to NHTSA as part of a manufacturer's 
petition for exemption. We do not believe that requiring this 
information as part of the petition would place a burden on 
manufacturers because they are already compiling this information to 
provide to Transport Canada, if requested, when certifying their 
vehicles under the Canadian Motor Vehicle Safety Act.
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    \19\ Motor Vehicle Safety Act. R.S.C., ch. 16 section 5(1)(e) 
(1993) (Can.). The Canadian Motor Vehicle Safety Act requires a 
manufacturer to certify that its vehicles comply with all applicable 
Canadian Motor Vehicle Safety Standards before the vehicles can be 
sold in Canada.
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    The proposed regulatory text did not include a requirement that 
manufacturers provide a detailed description of the immobilizer device 
as part of the petition because we believe that the documentation that 
manufacturers are keeping to provide to Transport Canada, and that they 
would be required to provide to NHTSA, describes the immobilizer device 
in sufficient detail for the agency to be able to determine whether the 
device satisfies the performance criteria.
    The proposed performance criteria did not include specifications 
that address the durability and reliability of immobilizers because the 
agency was concerned about the limitations such specifications could 
pose to immobilizer designs. Part 543 currently requires manufacturers 
to explain how the design of their immobilizer device ensures that it 
is durable and reliable in order to be eligible for an exemption.\20\ 
Because the agency believes that it is possible for the durability and 
reliability of an immobilizer to impact its effectiveness, we 
tentatively decided to retain this criterion of eligibility as part of 
the proposed performance criteria. We tentatively concluded that 
requiring manufacturers to submit a statement regarding the durability 
and reliability of the immobilizer is the best way to ensure that 
immobilizers are durable and reliable without impacting the ability of 
manufacturers to create new immobilizer systems. We believe 
manufacturers will submit statements similar to the ones they are 
currently submitting as part of their exemption applications to 
demonstrate that their immobilizers are durable and reliable.
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    \20\ 49 CFR 543.6(a)(3)(v).
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    The agency stated it believes the proposed performance criteria are 
consistent with the following anti-theft device attributes that are 
currently contained in part 543:
     The specification in the proposed performance criteria 
that the immobilizer arm after the disarming device is removed from the 
vehicle will facilitate activation of the immobilizer by the driver and 
prevent unauthorized persons who have entered the vehicle by means 
other than a key from operating the vehicle.\21\
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    \21\ See 49 CFR 543.6(a)(3)(i), (iv) (stating that the 
application for exemption must include an explanation of how the 
anti-theft device facilitates activation by the driver and prevents 
unauthorized persons who have entered the vehicle by means other 
than a key from operating the vehicle).
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     The specification in the proposed performance criteria 
that the immobilizer have certain code processing capabilities and be 
resistant to physical attack will ensure that the immobilizer is 
designed to prevent defeat or circumvention by persons entering the 
vehicle by means other than a key.\22\
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    \22\ See 49 CFR 543.6(a)(3)(iii)(iv) (stating that the 
application for exemption must include an explanation of how the 
anti-theft device prevents defeat or circumvention of the device by 
an someone without the vehicle's key and prevents unauthorized 
persons who have entered the vehicle by means other than a key from 
operating the vehicle).
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    The proposed performance criteria correspond to the aspects of 
performance of immobilizer devices that manufacturers now qualitatively 
describe in their exemption petitions. Manufacturers are currently 
demonstrating the effectiveness of immobilizers by describing the 
testing the immobilizer has been subjected to, how the immobilizer is 
activated, how the immobilizer interacts with the key to allow the 
vehicle to start and the encryption of electronic communications 
between the key and the immobilizer. These characteristics correspond 
to performance criteria in the proposal for how the immobilizer must 
arm, preventing the vehicle from moving under its own power, how the 
immobilizer must disarm to allow the driver to start the vehicle, the 
minimum number of code variants that the immobilizer is able to 
process, and the immobilizer's resistance to manipulation and physical 
attack. The proposed performance criteria simplify the process for 
applying for an exemption because manufacturers would no longer need to 
describe how the immobilizer achieves these aspects of performance. 
Instead, manufacturers would only need to state and demonstrate that 
their immobilizer device conforms to the performance criteria, and is 
durable and reliable.
    In order to allow manufacturers to more easily apply for an 
exemption from the theft prevention standard and to reduce the burden 
to the agency in processing exemption petitions we tentatively decided 
that we will notify manufacturers of decisions to grant or deny 
exemption petitions by notifying them of the agency's decision in 
writing. As proposed, we would not publish notices of our decisions to 
grant or deny exemption petitions from the theft prevention standard 
based on the manufacturer having satisfied the performance criteria in 
the Federal Register. NHTSA would continue to inform the public and law 
enforcement that a particular vehicle line has an exemption based on 
satisfaction of the performance criteria by updating the list of exempt 
vehicle lines in appendix A-I to part 541.

IV. Overview of Comments

    NHTSA received two comments on the proposed rule. Commenters were 
generally supportive of the proposal because it allows for improved 
harmonization with Canada, but expressed concerns about the 
documentation required to obtain an exemption and allowing for more 
compliance options similar to Transport Canada's CMVSS No. 114.
    The Alliance of Automobile Manufacturers (Alliance) expressed a 
procedural concern with the information manufacturers must provide to 
NHTSA in order to obtain an exemption under the proposed regulation. 
Specifically, the Alliance noted that in order to comply with Canadian 
law, manufacturers must certify as complying with all applicable 
CMVSSs--but manufacturers do not routinely provide compliance data to 
Transport Canada to prove compliance. Because of this, the Alliance 
suggested that manufacturers only be required to submit a statement 
that the immobilizer meets the performance requirements noted in the 
proposal. The Alliance suggested that this statement would eliminate 
the proposal's requirement to submit the same documentation that 
demonstrates compliance with CMVSS No. 114.
    Toyota Motor North America, Inc. (Toyota) submitted a comment 
stating

[[Page 66838]]

that it agrees with the comments submitted by the Alliance and that it 
believes immobilizers conforming to any of the four enumerated 
standards in CMVSS No. 114 should be acceptable to obtain an exemption 
under part 543. Toyota suggests that allowing manufacturers to obtain 
an exemption by complying with any of the four accepted standards would 
allow for greater harmonization between the United States and Canada, 
as well as increase manufacturer flexibility.

V. Response to Comments and Differences Between the Final Rule and NPRM

A. Manufacturers Seeking an Exemption Via Compliance With Performance 
Criteria Will Be Required To Submit Data Demonstrating Compliance With 
Standards

    Transport Canada has a certification process that is similar to 
NHTSA's ``self-certification process.'' Under Canada's Motor Vehicle 
Safety Act, the responsibility rests with the vehicle manufacturer or 
importer to certify that all new vehicles offered for sale in Canada 
comply with all applicable safety standards in effect on the date of 
manufacture. Manufacturers or importers certify this by displaying the 
national safety mark. As a prerequisite to obtaining permission to use 
the national safety mark, a manufacturer must maintain records 
demonstrating completion of certification testing. While certification 
test documentation may not be requested by Transport Canada for every 
new or imported vehicle in Canada, the Canadian Motor Vehicle Safety 
Act requires such records be available should Transport Canada request 
them.
    NHTSA believes that providing only a statement of compliance with 
CMVSS No. 114 is insufficient to justify an exemption from the theft 
prevention standard. Moreover, the data NHTSA will require is data 
manufacturers should be keeping in order to facilitate any compliance 
verification requests from Transport Canada.
    The agency currently receives petitions for exemptions from 
manufacturers that present justification for receiving an exemption. 
This application includes an explanation of how the anti-theft device 
will promote activation, attract attention to the efforts of 
unauthorized persons to enter or operate a vehicle by means other than 
a key, prevent defeat or circumvention of the device by unauthorized 
persons, prevent operation of the vehicle by unauthorized persons to 
enter or operate a vehicle by unauthorized entrants, and ensure the 
reliability and durability of the device. On those grounds, the agency 
can evaluate the justification and grant or deny the exemption. This 
rule seeks to streamline the exemption process by using compliance with 
certain standards in lieu of submitting separate justifications for 
exemptions under Part 543. Requiring manufacturers to provide the 
recordkeeping information required by the Transport Canada to 
demonstrate CMVSS No. 114 compliance, should Transport Canada ask for 
the data, allows NHTSA to ensure anti-theft devices installed on 
vehicles meet the same level of performance as would be expected of an 
anti-theft device requested through the prior exemption process. 
Therefore, the agency is finalizing the proposed requirement that 
manufacturers submit compliance data kept for Transport Canada 
compliance in order to prove compliance with CMVSS No. 114 standards.

B. Manufacturers Seeking an Exemption Via Compliance With Performance 
Criteria May Comply With Any of the Four Criteria in CMVSS No. 114

    We sought comments on whether adding the standards in CAN/ULC-S338-
98,\23\ ECE R97, and ECE R116 to the agency's accepted performance 
criteria would better accomplish the agency's goal of harmonizing the 
process for obtaining an exemption with the Canadian theft prevention 
standard. After reconsideration of the proposal and reviewing public 
comments, NHTSA has decided to accept anti-theft devices compliant with 
any of the four performance criteria allowed under CMVSS No. 114 for 
exemptions under part 543. Manufacturers will be required to submit 
statements similar to the ones they are currently submitting as part of 
their exemption applications to demonstrate that immobilizers certified 
to any of the four standards are durable and reliable. The agency 
proposed what it believed to be the simplest method of harmonization 
with Canada; however, after evaluating stakeholder response to this 
issue, we believe that finalizing all four performance criteria will 
simplify compliance and promote harmonization between the United States 
and Canada.
---------------------------------------------------------------------------

    \23\ NHTSA was notified that ULC posted a withdrawal for CAN/
ULC-S338-98 on December 22, 2015. The comment period for this 
withdrawal closed on January 20, 2016. See: https://www.scc.ca/en/standards/work-programs/ulc/standard-for-automobile-theft-deterrent-equipment-and-systems-electronic-immobilization (last accessed 
February 10, 2016).
---------------------------------------------------------------------------

    We proposed Transport Canada's fourth performance criteria because 
Transport Canada determined that the three other standards were 
developed for aftermarket immobilizers and had the potential to 
restrict the design of immobilizers. Finalizing all four performance 
criteria will provide additional flexibility by allowing OEMs and 
aftermarket manufacturers to elect the performance criteria most 
appropriate for their device. It will also improve harmonization with 
the United Nations Economic Commission for Europe (ECE) immobilizer 
performance criteria by allowing manufacturers the option of complying 
with one of two ECE standards and receiving an exemption from the theft 
prevention standard.
    Further, NHTSA believes allowing all four performance standards 
will be as effective in reducing and deterring motor vehicle theft as 
compliance with the parts marking requirements in part 541. Since 2007, 
when Transport Canada began requiring OEMs to install immobilizers 
meeting one of the four performance criteria for most vehicles, theft 
in Canada has decreased more than 50 percent.\24\ As discussed in the 
proposal, the agency believes that based on the effectiveness of 
immobilizers certified to any of the performance criteria in Canada, 
the regulations finalized today are consistent with the Theft Act.
---------------------------------------------------------------------------

    \24\ See ``actual incidents'' of ``total theft of motor 
vehicle'' at http://www5.statcan.gc.ca/cansim/a01?lang=eng (last 
accessed February 10, 2016).
---------------------------------------------------------------------------

    The agency has modified the regulatory text to reflect the 
inclusion of all four performance criteria. As a result of doing so, 
NHTSA has moved the originally proposed criteria from C.R.C, c. 
1038.114, Theft Protection and Rollaway Prevention (in effect March 30, 
2011) to appendix A of part 543.

VI. Costs, Benefits, and Compliance Date

    This rule amends part 543 to add performance criteria for 
immobilizers that are contained in CMVSS No. 114. Because the agency is 
retaining the current exemption process as a means of gaining an 
exemption from the theft prevention standard, the addition of 
performance criteria to part 543 would result in no costs to 
manufacturers. Manufacturers would not be required to make any changes 
to products in order to retain eligibility for an exemption.
    The agency cannot quantify the benefits of this rulemaking. The 
agency does, however, expect some benefits to accrue from making the 
exemption process in part 543 more closely harmonized with CMVSS No. 
114. Additionally, since two of the accepted performance criteria added 
by this rule

[[Page 66839]]

are ECE standards, manufacturers could potentially pay less for 
immobilizer devices if they are able to order higher volumes of parts 
due to harmonization with Canadian and ECE standards.
    Adding the performance criteria would allow manufacturers that are 
installing immobilizers as standard equipment for a line of motor 
vehicles in compliance with CMVSS No. 114 to more easily gain an 
exemption from the parts marking requirements. The agency believes this 
would reduce the cost to manufacturers of applying for an exemption 
from the parts marking requirements. Adding performance criteria to 
part 543 would also result in a reduction in vehicle theft in cases for 
which the rule improves the effectiveness of the anti-theft devices 
chosen by manufacturers.
    If the rule encourages more manufacturers to install immobilizers 
meeting CMVSS No. 114 on vehicles sold in the United States, it could 
result in cost savings to consumers seeking to import used vehicles 
into Canada. Importing used vehicles that already comply with CMVSS No. 
114 into Canada saves consumers from having to pay to have an 
aftermarket immobilizer installed in the vehicle.
    The compliance date will be 60 days after the date of issuance of 
the publication of this final rule.

VIII. Regulatory Notices and Analyses

Executive Order 12866, Executive Order 13563, and DOT Regulatory 
Policies and Procedures

    NHTSA has considered the impact of this rulemaking action under 
Executive Order 12866, Executive Order 13563, and the Department of 
Transportation's regulatory policies and procedures. This rulemaking 
document was not reviewed by the Office of Management and Budget under 
E.O. 12866, ``Regulatory Planning and Review.'' It is not considered to 
be significant under E.O. 12866 or the Department's regulatory policies 
and procedures.
    This rule would amend part 543 to add performance criteria for 
immobilizers that are contained in CMVSS No. 114 to allow manufacturers 
who are installing immobilizers in compliance with that standard to 
more easily obtain an exemption from the theft prevention standard.
    The agency concludes that the impacts of the changes would be so 
minimal that preparation of a full regulatory evaluation is not 
required. This rule would not result in any costs to manufacturers 
because the current exemption process would be left in place. 
Manufacturers would not be required to make any changes to current 
vehicles to retain eligibility for an exemption. It is also possible 
that this rule would result in a reduction in motor vehicle thefts if 
immobilizers meeting the performance criteria are more effective than 
current designs.

Executive Order 13609: Promoting International Regulatory Cooperation

    The policy statement in section 1 of Executive Order 13609 
provides, in part:

    The regulatory approaches taken by foreign governments may 
differ from those taken by U.S. regulatory agencies to address 
similar issues. In some cases, the differences between the 
regulatory approaches of U.S. agencies and those of their foreign 
counterparts might not be necessary and might impair the ability of 
American businesses to export and compete internationally. In 
meeting shared challenges involving health, safety, labor, security, 
environmental, and other issues, international regulatory 
cooperation can identify approaches that are at least as protective 
as those that are or would be adopted in the absence of such 
cooperation. International regulatory cooperation can also reduce, 
eliminate, or prevent unnecessary differences in regulatory 
requirements.

    NHTSA is issuing this rule pursuant to a regulatory cooperation 
agreement between the United States and Canada. This rule would more 
closely harmonize vehicle theft regulations in the United States with 
those in Canada.

National Environmental Policy Act

    We have reviewed this rule for the purposes of the National 
Environmental Policy Act and determined that it would not have a 
significant impact on the quality of the human environment.

Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq., 
as amended by the Small Business Regulatory Enforcement Fairness Act 
(SBREFA) of 1996), whenever an agency is required to publish a notice 
of rulemaking for any proposed or final rule, it must prepare and make 
available for public comment a regulatory flexibility analysis that 
describes the effect of the rule on small entities (i.e., small 
businesses, small organizations, and small governmental jurisdictions). 
The Small Business Administration's regulations at 13 CFR part 121 
define a small business, in part, as a business entity ``which operates 
primarily within the United States.'' 13 CFR 121.105(a). No regulatory 
flexibility analysis is required if the head of an agency certifies the 
rule will not have a significant economic impact on a substantial 
number of small entities.
    NHTSA has considered the effects of the rule under the Regulatory 
Flexibility Act and certifies that this rule would not have a 
significant economic impact on a substantial number of small entities. 
This rule amends part 543 to add performance criteria for immobilizers 
that are contained in CMVSS No. 114 to allow manufacturers who are 
installing immobilizers in compliance with that standard to more easily 
obtain an exemption from the theft prevention standard. This rule would 
not significantly affect any entities because it would leave in place 
the current exemption process so that manufacturers would not need to 
make any changes to products to retain eligibility for an exemption. 
Accordingly, we do not anticipate that this rule would have a 
significant economic impact on a substantial number of small entities.

Executive Order 12988 (Civil Justice Reform)

    With respect to the review of the promulgation of a new regulation, 
section 3(b) of Executive Order 12988, ``Civil Justice Reform'' (61 FR 
4729; Feb. 7, 1996), requires that Executive agencies make every 
reasonable effort to ensure that the regulation: (1) Clearly specifies 
the preemptive effect; (2) clearly specifies the effect on existing 
Federal law or regulation; (3) provides a clear legal standard for 
affected conduct, while promoting simplification and burden reduction; 
(4) clearly specifies the retroactive effect, if any; (5) specifies 
whether administrative proceedings are to be required before parties 
file suit in court; (6) adequately defines key terms; and (7) addresses 
other important issues affecting clarity and general draftsmanship 
under any guidelines issued by the Attorney General. This document is 
consistent with that requirement.
    Pursuant to this Order, NHTSA notes as follows. There is no 
requirement that individuals submit a petition for reconsideration or 
pursue other administrative proceedings before they may file suit in 
court. NHTSA has considered whether this rulemaking would have any 
retroactive effect. This rule does not have any retroactive effect.

Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires Federal agencies to prepare a written assessment of the costs, 
benefits, and other effects of a proposed or final rule that includes a 
Federal mandate likely to result in the expenditure by State, local, or 
tribal governments, in the aggregate, or by the private sector, of

[[Page 66840]]

more than $100 million in any one year (adjusted for inflation with 
base year of 1995).
    Before promulgating a rule for which a written statement is needed, 
section 205 of the UMRA generally requires NHTSA to identify and 
consider a reasonable number of regulatory alternatives and adopt the 
least costly, most cost-effective, or least burdensome alternative that 
achieves the objectives of the rule. The provisions of section 205 do 
not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows NHTSA to adopt an alternative other than the least 
costly, most cost-effective, or least burdensome alternative if the 
agency publishes with the final rule an explanation why that 
alternative was not adopted.
    This rule is not anticipated to result in the expenditure by state, 
local, or tribal governments, in the aggregate, or by the private 
sector in excess of $100 million annually. The cost impact of this rule 
is expected to be $0. Therefore, the agency has not prepared an 
economic assessment pursuant to the Unfunded Mandate Reform Act.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501, et 
seq.), Federal agencies must obtain approval from the Office of 
Management and Budget (OMB) for each collection of information they 
conduct, sponsor, or require through regulations. This rule would 
decrease the materials that a manufacturer would need to submit to the 
agency to obtain an exemption from the vehicle theft prevention 
standard in certain instances.
    Agency: National Highway Traffic Safety Administration (NHTSA).
    Title: 49 CFR part 543, Petitions for Exemption from the Vehicle 
Theft Prevention Standard.
    Type of Request: Revision of a currently approved collection.
    OMB Control Number: 2127-0542.
    Form Number: The collection of this information uses no standard 
form.
    Requested Expiration Date of Approval: Three years from the date of 
approval.
    Summary of the Collection of Information: This collection consists 
of information that motor vehicle manufacturers must submit in support 
of an application for an exemption from the vehicle theft prevention 
standard. Manufacturers wishing to apply for an exemption from the 
parts marking requirement because they have installed immobilizers 
meeting the performance criteria would be required to submit a 
statement that the entire line of vehicles is equipped with an 
immobilizer, as standard equipment, that meets the performance criteria 
contained in that section, a statement that the immobilizer has been 
certified to the Canadian theft prevention standard, documentation 
provided to Transport Canada to demonstrate that the immobilizer was 
certified to the Canadian theft prevention standard, and a statement 
that the immobilizer device is durable and reliable. This rule would 
not change the information that manufacturers would need to submit if 
seeking an exemption in accordance with the current process used for 
petitions seeking an exemption based on the installation of 
immobilizers.
    Description of the Need for the Information and Use of the 
Information: The information is needed to determine whether a vehicle 
line is eligible for an exemption from the vehicle theft prevention 
standard.
    Description of the Likely Respondents (Including Estimated Number, 
and Frequency of Response to the Collection of Information): Currently, 
nineteen manufacturers have one or more car lines exempted. We expect 
that within the three year period covered by this clearance, twelve 
manufacturers would apply for an exemption per year: Nine under the 
current process and three under the performance criteria. Based on 
another analysis of the exemption information NHTSA has received, as 
well as the comments the agency received, NHTSA has made a minor 
adjustment to the estimates provided in the NPRM. In comparison to the 
estimates provided in the NPRM, the agency believes that one more 
manufacturer will use the new process within the next three years. The 
agency thinks it is likely that more manufacturers will migrate to the 
new process over time, however, because many manufacturers have product 
plans covering the next three years that might not happen until the 
agency renews its collection in three years. NHTSA anticipates 
reevaluating this assessment during its next renewal of this 
collection.
    Estimate of the Total Annual Reporting and Recordkeeping Burden 
Resulting from the Collection of Information: We estimate that the 
burden for applying for an exemption under this rule would be 2300 
hours. The burden for applying for an exemption under the current 
process is estimated to be 226 hours x 9 respondents = 2034 hours. The 
burden for apply for an exemption under the performance criteria is 
estimated to be 20 hours x 3 respondents = 60 hours.

National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act (NTTAA) requires NHTSA to evaluate and use existing voluntary 
consensus standards in its regulatory activities unless doing so would 
be inconsistent with applicable law (e.g., the statutory provisions 
regarding NHTSA's vehicle safety authority) or otherwise impractical.
    Voluntary consensus standards are technical standards developed or 
adopted by voluntary consensus standards bodies. Technical standards 
are defined by the NTTAA as ``performance-based or design-specific 
technical specification and related management systems practices.'' 
They pertain to ``products and processes, such as size, strength, or 
technical performance of a product, process or material.''
    Examples of organizations generally regarded as voluntary consensus 
standards bodies include the American Society for Testing and Materials 
(ASTM), the Society of Automotive Engineers (SAE), and the American 
National Standards Institute (ANSI). If NHTSA does not use available 
and potentially applicable voluntary consensus standards, we are 
required by the Act to provide Congress, through OMB, an explanation of 
the reasons for not using such standards.
    We are not aware of any technical performance criteria for 
immobilizers issued by voluntary consensus standards bodies in the 
United States. For the reasons discussed in this notice, the agency has 
determined that the simplest way to harmonize part 543 with Canadian 
theft prevention regulations was to adopt all four performance criteria 
discussed above.

Executive Order 13211

    Executive Order 13211 \25\ applies to any rule that: (1) Is 
determined to be economically significant as defined under E.O. 12866, 
and is likely to have a significant adverse effect on the supply, 
distribution, or use of energy; or (2) that is designated by the 
Administrator of the Office of Information and Regulatory Affairs as a 
significant energy action. If the regulatory action meets either 
criterion, we must evaluate the adverse energy effects of the rule and 
explain why the regulation is preferable to other potentially effective 
and reasonably feasible alternatives considered by NHTSA.
---------------------------------------------------------------------------

    \25\ 66 FR 28355 (May 18, 2001).

---------------------------------------------------------------------------

[[Page 66841]]

    This rule amends part 543 to add performance criteria for 
immobilizers that are contained in CMVSS No. 114 to allow manufacturers 
who are installing immobilizers in compliance with that standard to 
more easily obtain an exemption from the theft prevention standard. 
Therefore, this rule would not have any significant adverse energy 
effects. Accordingly, this rulemaking action is not designated as a 
significant energy action.

Regulation Identifier Number (RIN)

    The Department of Transportation assigns a regulation identifier 
number (RIN) to each regulatory action listed in the Unified Agenda of 
Federal Regulations. The Regulatory Information Service Center 
publishes the Unified Agenda in April and October of each year. You may 
use the RIN contained in the heading at the beginning of this document 
to find this action in the Unified Agenda.

List of Subjects in 49 CFR Part 543

    Imports, Motor vehicle safety, Motor vehicles, Reporting and 
recordkeeping requirements, Tires.

    In consideration of the foregoing, NHTSA amends 49 CFR chapter V as 
follows.

PART 543--EXEMPTION FROM VEHICLE THEFT PREVENTION STANDARD

0
1. The authority citation for part 543 of title 49 is revised to read 
as follows:

    Authority:  49 U.S.C. 322, 33101, 33102, 33103, 33104 and 33105; 
delegation of authority at 49 CFR 1.95.


0
2. Amend Sec.  543.4 by adding, in alphabetical order, definitions for 
``Accessory mode'' and ``Immobilizer'' in paragraph (b) to read as 
follows:


Sec.  543.4  Definitions.

* * * * *
    (b) * * *
    Accessory mode means the ignition switch setting in which certain 
electrical systems (such as the radio and power windows) can be 
operated without the operation of the vehicle's propulsion engine.
    Immobilizer means a device that, when activated, is intended to 
prevent a motor vehicle from being powered by its own propulsion 
system.
* * * * *

0
3. In Sec.  543.5, revise paragraphs (b)(2), (6), and (7) and add 
paragraphs (b)(8) and (9) to read as follows:


Sec.  543.5  Petition: General requirements.

* * * * *
    (b) * * *
    (2) Be submitted in three copies to: Administrator, National 
Highway Traffic Safety Administration, 1200 New Jersey Avenue, SE., 
Washington, DC 20590.
* * * * *
    (6) Identify whether the exemption is sought under Sec.  543.6 or 
Sec.  543.7.
    (7) If the exemption is sought under Sec.  543.6, set forth in full 
the data, views, and arguments of the petitioner supporting the 
exemption, including the information specified in that section.
    (8) If the exemption is sought under Sec.  543.7, submission of the 
information required in that section.
    (9) Specify and segregate any part of the information or data 
submitted that the petitioner requests be withheld from public 
disclosure in accordance with part 512, Confidential Business 
Information, of this chapter.


Sec. Sec.  543.7 through 543.9   [Redesignated as Sec. Sec.  543.8 
through 543.10]

0
 4. Redesignate Sec. Sec.  543.7 through 543.9 as Sec. Sec.  543.8 
through 543.10.

0
 5. Add a new Sec.  543.7 to read as follows:


Sec.  543.7  Petitions based on performance criteria.

    A petition submitted under this section must include:
    (a) A statement that the entire line of vehicles is equipped with 
an immobilizer, as standard equipment, that meets one of the following:
    (1) The performance criteria (subsections 8 through 21) of C.R.C, 
c. 1038.114, Theft Protection and Rollaway Prevention (in effect March 
30, 2011), as excerpted in appendix A of this part;
    (2) National Standard of Canada CAN/ULC-S338-98, Automobile Theft 
Deterrent Equipment and Systems: Electronic Immobilization (May 1998);
    (3) United Nations Economic Commission for Europe (UN/ECE) 
Regulation No. 97 (ECE R97), Uniform Provisions Concerning Approval of 
Vehicle Alarm System (VAS) and Motor Vehicles with Regard to Their 
Alarm System (AS) in effect August 8, 2007; or
    (4) UN/ECE Regulation No. 116 (ECE R116), Uniform Technical 
Prescriptions Concerning the Protection of Motor Vehicles Against 
Unauthorized Use in effect on February 10, 2009.
    (b) Compliance documentation kept to demonstrate the basis for 
certification with the performance criteria specified in paragraph (a) 
of this section.
    (c) A statement that the immobilizer device is durable and 
reliable.

0
6. Amend newly redesignated Sec.  543.8 by revising paragraph (f) and 
adding paragraph (g) to read as follows:


Sec.  543.8  Processing an exemption petition.

* * * * *
    (f) If the petition is sought under Sec.  543.6, NHTSA publishes a 
notice of its decision to grant or deny an exemption petition in the 
Federal Register and notifies the petitioner in writing of the agency's 
decision.
    (g) If the petition is sought under Sec.  543.7, NHTSA notifies the 
petitioner in writing of the agency's decision to grant or deny an 
exemption petition.

0
7. Newly redesignated Sec.  543.9 is revised to read as follows


Sec.  543.9  Duration of exemption.

    Each exemption under this part continues in effect unless it is 
modified or terminated under Sec.  543.10, or the manufacturer ceases 
production of the exempted line.

0
 8. Add appendix A to part 543 to read as follows:

Appendix A to Part 543--Performance Criteria (Subsections 8 Through 21) 
of C.R.C, c. 1038.114 (in Effect March 30, 2011)

    In order to be eligible for an exemption under Sec.  
543.7(a)(1), the entire vehicle line must be equipped with an 
immobilizer meeting the following criteria:
    (1) Subject to paragraph (2) of this appendix, an immobilization 
system shall arm automatically within a period of not more than 1 
minute after the disarming device is removed from the vehicle, if 
the vehicle remains in a mode of operation other than accessory mode 
or on throughout that period.
    (2) If the disarming device is a keypad or biometric identifier, 
the immobilization system shall arm automatically within a period of 
not more than 1 minute after the motors used for the vehicle's 
propulsion are turned off, if the vehicle remains in a mode of 
operation other than accessory mode or on throughout that period.
    (3) The immobilization system shall arm automatically not later 
than 2 minutes after the immobilization system is disarmed, unless:
    (i) Action is taken for starting one or more motors used for the 
vehicle's propulsion;
    (ii) Disarming requires an action to be taken on the engine 
start control or electric motor start control, the engine stop 
control or electric motor stop control, or the ignition switch; or
    (iii) Disarming occurs automatically by the presence of a 
disarming device and the device is inside the vehicle.
    (4) If armed, the immobilization system shall prevent the 
vehicle from moving more than 3 meters (9.8 feet) under its own 
power by inhibiting the operation of at least one electronic control 
unit and shall not have any impact on the vehicle's brake system 
except that it may prevent regenerative braking and the release of 
the parking brake.
    (5) During the disarming process, a code shall be sent to the 
inhibited electronic control unit in order to allow the vehicle to 
move under its own power.

[[Page 66842]]

    (6) It shall not be possible to disarm the immobilization system 
by interrupting its normal operating voltage.
    (7) When the normal starting procedure requires that the 
disarming device mechanically latch into a receptacle and the device 
is physically separate from the ignition switch key, one or more 
motors used for the vehicle's propulsion shall start only after the 
device is removed from that receptacle.
    (8)(i) The immobilization system shall have a minimum capacity 
of 50,000 code variants, shall not be disarmed by a code that can 
disarm all other immobilization systems of the same make and model; 
and
    (ii) subject to paragraph (9) of this appendix, it shall not 
have the capacity to process more than 5,000 codes within 24 hours.
    (9) If an immobilization system uses rolling or encrypted codes, 
it may conform to the following criteria instead of the criteria set 
out in paragraph (8)(ii) of this appendix:
    (i) The probability of obtaining the correct code within 24 
hours shall not exceed 4 per cent; and
    (ii) It shall not be possible to disarm the system by re-
transmitting in any sequence the previous 5 codes generated by the 
system.
    (10) The immobilization system shall be designed so that, when 
tested as installed in the vehicle neither the replacement of an 
original immobilization system component with a manufacturer's 
replacement component nor the addition of a manufacturer's component 
can be completed without the use of software; and it is not possible 
for the vehicle to move under its own power for at least 5 minutes 
after the beginning of the replacement or addition of a component 
referred to in this paragraph (1).
    (11) The immobilization system's conformity to paragraph (10) of 
this appendix shall be demonstrated by testing that is carried out 
without damaging the vehicle.
    (12) Paragraph (10)(i) of this appendix does not apply to the 
addition of a disarming device that requires the use of another 
disarming device that is validated by the immobilization system.
    (13) The immobilization system shall be designed so that it can 
neither be bypassed nor rendered ineffective in a manner that would 
allow a vehicle to move under its own power, or be disarmed, using 
one or more of the tools and equipment listed in paragraph (14) of 
this appendix;
    (i) Within a period of less than 5 minutes, when tested as 
installed in the vehicle; or
    (ii) Within a period of less than 2.5 minutes, when bench-tested 
outside the vehicle.
    (14) During a test referred to in paragraph (13) of this 
appendix, only the following tools or equipment may be used: 
Scissors, wire strippers, wire cutters and electrical wires, a 
hammer, a slide hammer, a chisel, a punch, a wrench, a screwdriver, 
pliers, steel rods and spikes, a hacksaw, a battery operated drill, 
a battery operated angle grinder; and a battery operated jigsaw.

    Note: C.R.C, c. 1038.114, Theft Protection and Rollaway 
Prevention (in effect March 30, 2011). See: SOR/2011-69 March, 2011 
``Regulations Amending the Motor Vehicle Safety Regulations (Theft 
Prevention and Rollaway Prevention--Standard 114)'' 2011-03-30 
Canada Gazette Part II, Vol 145, No. 7.


    Issued in Washington, DC, on September 8, 2016, under authority 
delegated in 49 CFR part 1.95.
Mark R. Rosekind,
Administrator.
[FR Doc. 2016-22061 Filed 9-28-16; 8:45 am]
 BILLING CODE 4910-59-P



                                                                 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations                                        66833

                                                communications essential to providing                    be interoperable across vendors before it               Petitions for Reconsideration:
                                                such services if (and only for so long as)               is marketed or sold. In the alternative,              Petitions for reconsideration of this final
                                                the NGO applicant/licensee:                              manufacturers may employ their own                    rule must be received not later than
                                                *      *     *     *     *                               protocol for verifying compliance with                November 14, 2016.
                                                   (c) All NGO authorizations are                        Project 25 standards and determining                  ADDRESSES: Petitions for reconsideration
                                                conditional. NGOs assume all risks                       that their product is interoperable                   of this final rule must refer to the docket
                                                associated with operating under                          among vendors. In the event that field                and notice number set forth above and
                                                conditional authority. Authorizations                    experience reveals that a transceiver is              be submitted to the Administrator,
                                                issued to NGOs to operate systems in                     not interoperable, the Commission may                 National Highway Traffic Safety
                                                the 769–775 MHz and 799–805 MHz                          require the manufacturer thereof to                   Administration, 1200 New Jersey
                                                frequency bands include the following                    provide evidence of compliance with                   Avenue, SE., Washington, DC 20590.
                                                condition: If at any time the supporting                 this section.                                         FOR FURTHER INFORMATION CONTACT:
                                                governmental entity (see paragraph                       [FR Doc. 2016–22432 Filed 9–28–16; 8:45 am]             For technical issues: Mr. Hisham
                                                (b)(1) of this section) notifies the                     BILLING CODE 6712–01–P                                Mohamed, Office of Consumer
                                                Commission in writing of such                                                                                  Programs, NHTSA, 1200 New Jersey
                                                governmental entity’s termination of its                                                                       Avenue SE., West Building,
                                                authorization of a NGO’s operation of a                  DEPARTMENT OF TRANSPORTATION                          Washington, DC 20590 (Telephone:
                                                system in the 769–775 MHz and 799–                                                                             (202) 366–0307) (Fax: (202) 493–2990).
                                                805 MHz frequency bands, the NGO’s                       National Highway Traffic Safety                         For legal issues: Mr. Ryan Hagen,
                                                application shall be dismissed                           Administration                                        Office of the Chief Counsel, NHTSA,
                                                automatically or, if authorized by the                                                                         1200 New Jersey Avenue SE., West
                                                Commission, the NGO’s authorization                      49 CFR Part 543                                       Building, Washington, DC 20590
                                                shall terminate automatically.                           [Docket No. NHTSA–2014–0007]                          (Telephone: (202) 366–2992) (Fax: (202)
                                                   (d) Paragraphs (a) and (b) of this                                                                          366–3820).
                                                section notwithstanding, no entity is                    RIN 2127–AL08
                                                                                                                                                               SUPPLEMENTARY INFORMATION:
                                                eligible to hold an authorization for a
                                                system operating in the 769–775 MHz                      Exemption From Vehicle Theft                          Table of Contents
                                                and 799–805 MHz frequency bands on                       Prevention Standard
                                                                                                                                                               I. Executive Summary
                                                the basis of services, the sole or                       AGENCY:  National Highway Traffic                     II. Background
                                                principal purpose of which is to protect                 Safety Administration (NHTSA),                           A. Effectiveness of Immobilizers in
                                                the safety of life, health or property, that             Department of Transportation (DOT).                         Reducing or Deterring Theft
                                                such entity makes commercially                           ACTION: Final rule.                                      B. U.S. Canada Regulatory Cooperation
                                                available to the public.                                                                                             Council
                                                                                                         SUMMARY:   In this rulemaking action,                    C. Canadian Motor Vehicle Safety Standard
                                                *      *     *     *     *
                                                                                                         NHTSA is finalizing procedures for                          No. 114
                                                ■ 7. Section 90.535(d) is revised to read                                                                      III. Proposed Rule
                                                as follows:                                              obtaining an exemption from the vehicle
                                                                                                                                                               IV. Overview of Comments
                                                                                                         theft prevention standard for vehicles                V. Response to Comments and Differences
                                                § 90.535 Modulation and spectrum usage                   equipped with immobilizers.                                 Between the Final Rule and NPRM
                                                efficiency requirements.                                    An immobilizer is an anti-theft device             VI. Costs, Benefits, and Compliance Date
                                                *     *       *     *     *                              that combines microchip and                           VII. Regulatory Notices and Analyses
                                                  (d) Transmitters designed to operate                   transponder technology with engine and
                                                                                                         fuel immobilizer components that can                  I. Executive Summary
                                                on the channels listed in paragraphs
                                                (b)(2), (5), (6), and (7) of § 90.531 must               prevent vehicles from starting unless a                 This rulemaking action amends 49
                                                be capable of operating in the voice                     verified code is received by the                      CFR part 543, Exemption from Vehicle
                                                mode at an efficiency of at least one                    transponder. This final rule streamlines              Theft Prevention Standard, by adding
                                                voice path per 12.5 kHz of spectrum                      the exemption procedure for                           performance criteria for immobilizers.
                                                bandwidth.                                               immobilizer-equipped vehicles by                      The agency has granted many
                                                ■ 8. Section 90.548(c) is revised to read
                                                                                                         adding performance criteria for                       exemptions from the theft prevention
                                                as follows:                                              immobilizers. The criteria, which                     standard to vehicle lines on the basis
                                                                                                         roughly correlate with the types of                   that they were equipped with
                                                § 90.548 Interoperability Technical                      qualities for which petitioners have                  immobilizers. In support of petitions for
                                                Standards.                                               been submitting testing and technical                 these exemptions, manufacturers have
                                                *     *     *     *     *                                design details under existing                         provided a substantial amount of data
                                                  (c) Transceivers capable of operating                  procedures, closely follow the                        seeking to demonstrate the effectiveness
                                                on the interoperability channels listed                  immobilizer performance requirements                  of immobilizers in reducing motor
                                                in § 90.531(b)(1) shall not be marketed                  in the anti-theft standard of Canada.                 vehicle theft.
                                                or sold unless the transceiver has                       After this final rule, it would be                      The criteria, which roughly correlate
                                                previously been certified for                            sufficient for a manufacturer seeking the             with the types of qualities for which
                                                interoperability by the Compliance                       exemption of some of its vehicles to                  petitioners have been submitting testing
                                                Assessment Program (CAP)                                 provide data showing that the device                  and technical design details under
                                                administered by the U.S. Department of                   meets the performance criteria, as well               existing procedures, use the same four
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                                                Homeland Security; provided, however,                    as a statement that the device is durable             performance requirements from the
                                                that this requirement is suspended if the                and reliable. Adopting these                          Transport Canada standard. For those
                                                CAP is discontinued. Submission of a                     performance criteria for immobilizers                 performance requirements, the
                                                700 MHz narrowband radio for                             bring the U.S. anti-theft requirements                Canadian standard also sets forth tests
                                                certification will constitute a                          more into line with those of Canada.                  that manufacturers of vehicles to be sold
                                                representation by the manufacturer that                  DATES: Effective Date: This rule is                   in Canada must certify to Canadian
                                                the radio will be shown, by testing, to                  effective November 28, 2016.                          authorities that they have conducted.


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                                                66834            Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations

                                                   Adopting these performance criteria                   II. Background                                           petition explaining how the anti-theft
                                                would simplify the exemption process                        The Motor Vehicle Theft Law                           device will promote activation, attract
                                                for manufacturers who installed                          Enforcement Act (the Theft Act), 49                      attention to the efforts of unauthorized
                                                immobilizers meeting those criteria.                     U.S.C. 33101 et seq., directs NHTSA 1 to                 persons to enter or operate a vehicle by
                                                Currently, in their petitions for                        establish theft prevention standards for                 means other than a key, prevent defeat
                                                exemption, vehicle manufacturers                         light duty trucks and multipurpose                       or circumvention of the device by
                                                describe the testing that they have                      passenger vehicles (MPVs) with a gross                   unauthorized persons, prevent
                                                conducted on the immobilizer device                      vehicle weight rating of 6,000 pounds or                 operation of the vehicle by
                                                and aspects of design of the immobilizer                 less and passenger cars. The Theft Act                   unauthorized entrants, and ensure the
                                                that address the areas of performance                    also allows NHTSA to exempt one                          reliability and durability of the device.
                                                which the agency has determined are                      vehicle line per model year per                          Based on the materials in the petition,
                                                important to gauge the effectiveness of                  manufacturer from the theft prevention                   NHTSA decides whether to grant the
                                                the immobilizer in reducing and                          standard if the vehicle is equipped with                 petition in whole or in part or to deny
                                                deterring motor vehicle theft. Adding                    an anti-theft device that the agency                     it.
                                                performance criteria for immobilizers as                 ‘‘decides is likely to be as effective in                    Under the existing part 543,
                                                another means of qualifying for an                       reducing and deterring motor vehicle                     manufacturers choose how they wish to
                                                exemption from the U.S. theft                            theft as compliance with the [theft                      demonstrate to the agency that the anti-
                                                prevention standard will allow                           prevention] standard.’’ 49 U.S.C.                        theft device they are installing in a
                                                manufacturers that are installing                        33106(b). The statute states that in order               vehicle line meets the factors listed in
                                                immobilizers as standard equipment for                   to obtain an exemption, manufacturers                    § 543.6. Manufacturers provide differing
                                                a line of motor vehicles in compliance                   must file a petition that describes the                  levels of detail in their exemption
                                                with Canadian theft prevention                           anti-theft device in detail, states the                  petitions. Manufacturers typically
                                                standards to more easily gain an                         reason that the manufacturer believes                    provide engineering diagrams of the
                                                exemption here. This would reduce the                    that the device will be effective in                     anti-theft device, a description of how
                                                amount of material that manufacturers                    reducing or deterring theft, and contains                the device functions, and testing to
                                                would need to submit to obtain an                        additional information that NHTSA                        show that the device is durable and
                                                exemption because manufacturers                          determines is necessary to decide                        reliable in their petitions for exemption.
                                                would only be required to indicate and                   whether the anti-theft device ‘‘is likely                Manufacturers also describe how the
                                                demonstrate that the immobilizer met                     to be as effective in reducing and                       design of the anti-theft device satisfies
                                                the performance criteria and was                         deterring motor vehicle theft as                         the factors listed in § 543.6.
                                                durable and reliable to be eligible for an               compliance with the [theft prevention]                   A. Effectiveness of Immobilizers in
                                                exemption.                                               standard.’’ 2                                            Reducing or Deterring Theft
                                                   This final rule allows manufacturers                     Pursuant to the Theft Act, NHTSA
                                                to obtain an exemption from the theft                                                                                Nearly 700,000 motor vehicle thefts
                                                                                                         issued 49 CFR part 541, Federal Motor
                                                prevention standards by complying with                                                                            took place in the U.S. in 2013, causing
                                                                                                         Vehicle Theft Prevention Standard,
                                                any of the four performance criteria                                                                              a loss of mobility and economic
                                                                                                         which requires manufacturers of
                                                currently accepted by Transport Canada.                                                                           hardship to those affected.4 The
                                                                                                         vehicles identified by the agency as
                                                The adoption of the performance criteria                                                                          estimated value of motor vehicles stolen
                                                                                                         likely high-theft vehicle lines to inscribe
                                                for immobilizers would bring the U.S.                                                                             in 2011 was $4.1 billion, averaging
                                                                                                         or affix vehicle identification numbers
                                                anti-theft requirements more into line                                                                            $5,972 per stolen vehicle.5 Of the
                                                                                                         or symbols on certain components of
                                                with those of Canada. This                                                                                        vehicles stolen in the United States,
                                                                                                         new vehicles and replacement parts.3
                                                harmonization of U.S. and Canadian                                                                                nearly 45 percent are never recovered.6
                                                                                                         The agency refers to this requirement as
                                                requirements is being undertaken                                                                                  While the number of motor vehicle
                                                                                                         the parts marking requirement.
                                                pursuant to ongoing bilateral regulatory                    NHTSA promulgated part 543 to                         thefts fell 3.3 percent from 2012 to 2013,
                                                cooperation efforts. Additionally, two of                establish the process for submitting                     vehicle theft remains an ongoing
                                                the performance criteria added by this                   petitions for exemption from the parts                   problem in the U.S.7 According to the
                                                rule are United Nations Economic                         marking requirements in the theft                        FBI, a motor vehicle was stolen every 45
                                                Commission for Europe (UN/ECE)                           prevention standard. A manufacturer                      seconds in 2013.8
                                                standards, which will allow for greater                                                                              An immobilizer is a type of anti-theft
                                                                                                         may petition the agency for an
                                                global harmonization.                                                                                             device based on microchip and
                                                                                                         exemption from the parts marking
                                                   We are retaining the current criteria                                                                          transponder technology and combined
                                                                                                         requirements for one vehicle line per
                                                for gaining an exemption from the                                                                                 with engine and fuel immobilizer
                                                                                                         model year if the manufacturer installs
                                                vehicle theft prevention standard.                                                                                components. When activated, an
                                                                                                         an anti-theft device as standard
                                                Therefore, manufacturers would still be                                                                           immobilizer device disables the
                                                                                                         equipment on the entire line. In order to
                                                able to petition the agency to install                   be eligible for an exemption, part 543                     4 https://www.fbi.gov/about-us/cjis/ucr/crime-in-
                                                other anti-theft devices as standard                     requires manufacturers to submit a                       the-u.s/2013/crime-in-the-u.s.-2013/property-crime/
                                                equipment in a vehicle line to obtain an                                                                          motor-vehicle-theft-topic-page/
                                                exemption from the theft prevention                         1 The Secretary of Transportation’s                   mvtheftmain_final.pdf (last accessed February 10,
                                                standard. While NHTSA has granted                        responsibilities under the Theft Act have been           2016).
                                                many petitions for exemption from the                    delegated to NHTSA pursuant to 49 CFR 1.95.                5 Id.

                                                                                                            2 Id.                                                   6 http://www.nhtsa.gov/Vehicle+Safety/Vehicle-
                                                theft prevention standard for vehicle
                                                                                                            3 Part 541 requires the following major parts to be   Related+Theft/Theft+Prevention (last accessed
                                                lines equipped with an immobilizer                                                                                February 10, 2016).
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                                                                                                         marked: The engine, the transmission, the hood, the
                                                type anti-theft device, we note that a                   right and left front fenders, the right and left front     7 https://www.fbi.gov/about-us/cjis/ucr/crime-in-
                                                manufacturer is not required to install                  doors, the right and left rear door (four-door           the-u.s/2013/crime-in-the-u.s.-2013/property-crime/
                                                an immobilizer in order to gain an                       models), the sliding or cargo doors, the decklid,        motor-vehicle-theft-topic-page (last accessed
                                                exemption. We note also that this would                  tailgate or hatchback (whichever is present), the        February 10, 2016).
                                                                                                         front and rear bumpers, and the right and left             8 http://www.trafficsafetymarketing.gov/newtsm/
                                                not increase the number of exemptions                    quarter panels. The right and left side assemblies       VehicleTheftPrevention/11539-
                                                from the theft prevention standard                       must be marked on MPVs and the cargo box must            VehicleTheftPrevention-FactSheet.pdf (last
                                                available to a manufacturer.                             be marked on light duty trucks.                          accessed February 10, 2016).



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                                                                 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations                                              66835

                                                vehicle’s electrical or fuel systems at                  States-Canada Regulatory Cooperation                    manufacturer design flexibility (in effect
                                                several points and prevents the vehicle                  Council (RCC), composed of senior                       March 30, 2011). Vehicles certified to
                                                from starting unless the correct code is                 regulatory, trade and foreign affairs                   CMVSS No. 114 must be equipped with
                                                received by the transponder.                             officials from both governments. In                     an immobilizer meeting one of these
                                                   NHTSA is aware of several sources of                  recognition of the two countries’ $1                    four sets of requirements. Used motor
                                                information demonstrating the                            trillion annual trade and investment                    vehicles imported into Canada must
                                                effectiveness of immobilizer devices in                  relationship, the RCC is working                        also be equipped with immobilizers
                                                reducing motor vehicle theft. In the                     together to promote economic growth,                    meeting CMVSS No. 114. This
                                                1980s, General Motors Corporation (GM)                   job creation and benefits to consumers                  requirement makes it more difficult to
                                                used an early generation of microchip                    and businesses through increased                        import into Canada motor vehicles
                                                devices, which later developed into the                  regulatory transparency and                             manufactured in the U.S. that are not
                                                rolling code transponder device, which                   coordination.14                                         equipped with an immobilizer meeting
                                                is currently installed in GM as well as                     On December 7, 2011, the RCC                         CMVSS No. 114. In such cases, an
                                                many other vehicles. According to the                    established an initial Joint Action Plan                immobilizer that complies with CMVSS
                                                Highway Loss Data Institute (HLDI),                      that identified 29 initiatives where the                No. 114, usually an aftermarket device,
                                                immobilizer devices are up to 50                         U.S. and Canada will seek greater                       must be added to the vehicle before it
                                                percent effective in reducing vehicle                    alignment in their regulatory                           can be imported into Canada.
                                                theft.9 The September 1997 Theft Loss                    approaches. The Joint Action Plan                          CAN/ULC–S338–98 contains design
                                                Bulletin from the HLDI reported an                       highlights the areas and initiatives                    specifications, activation and
                                                overall theft decrease of approximately                  which were identified for initial focus.                deactivation requirements, durability
                                                50 percent for both the Ford Mustang                     These areas include agriculture and                     tests, and tests to assess the resistance
                                                and Taurus lines upon installation of an                 food, transportation, health and                        to physical attack for immobilizers. ECE
                                                immobilizer device. Ford Motor                           personal care products and workplace                    R97 and ECE R116 contain design
                                                Company claimed that its MY 1997                         chemicals, environment and cross-                       specifications, activation and
                                                Mustang vehicle line (with an                            sectoral issues. One of the topics for                  deactivation requirements, durability
                                                immobilizer) led to a 70 percent                         regulatory cooperation identified in the                tests, and tests to assess the resistance
                                                reduction in theft compared to its MY                    transportation area is to pursue greater                to physical attack for immobilizers
                                                1995 Mustang (without an                                 harmonization of existing motor vehicle                 similar to those contained in CAN/ULC–
                                                immobilizer).10 Chrysler Corporation                     standards. Theft prevention is one of the               S338–98. The fourth set of requirements
                                                informed the agency that the inclusion                   harmonization opportunities identified                  for immobilizers in CMVSS No. 114
                                                of an immobilizer device as standard                     by the Motor Vehicles Working Group.                    contains design specifications,
                                                equipment on the MY 1999 Jeep Grand                                                                              activation and deactivation
                                                Cherokee resulted in a 52 percent net                    C. Canadian Motor Vehicle Safety                        requirements, and requirements testing
                                                average reduction in vehicle thefts.11                   Standard No. 114                                        the ability of the immobilizer to resist
                                                   Mitsubishi Motors Corporation                           In addition to the theft and rollaway                 deactivation by physical attack derived
                                                informed the agency that the theft rate                  prevention requirements included in the                 from the other standards. The fourth set
                                                for its MY 2000 Eclipse vehicle line                     U.S. version of the standard, CMVSS                     of requirements, however, does not
                                                (with an immobilizer device) was                         No. 114 requires the installation of an                 include the environmental tests and
                                                almost 42 percent lower than that of its                 immobilization system for all new                       durability requirements that are
                                                MY 1999 Eclipse (without a immobilizer                   passenger vehicles, MPVs and trucks                     included in CAN/ULC–S338–98, ECE
                                                device).12 Mazda Motor Corporation                       certified to the standard with a gross                  R97 and ECE R116.
                                                reported that a comparison of theft loss                 vehicle weight rating (GVWR) of 4,536                      In adopting the fourth set of
                                                data showed an average theft reduction                   kg or less, with some exceptions.                       performance requirements for
                                                of approximately 50 percent after an                     CMVSS No. 114 contains four different                   immobilizers contained in CMVSS No.
                                                immobilizer device was installed as                      sets of requirements for immobilizers.                  114, Transport Canada stated that some
                                                standard equipment in a vehicle line.13                  The four sets of requirements are                       of the environmental and durability
                                                In general, the agency has granted many                  National Standard of Canada CAN/                        requirements for immobilizers
                                                petitions for exemptions for installation                ULC–S338–98, Automobile Theft                           contained in CAN/ULC–S338–98, ECE
                                                of immobilization-type devices.                          Deterrent Equipment and Systems:                        R97, and ECE R116 were developed for
                                                Manufacturers have provided the                          Electronic Immobilization (May 1998);                   aftermarket immobilizers and should
                                                agency with a substantial amount of                      United Nations Economic Commission                      not be applied to immobilizers that are
                                                information attesting to the reduction of                for Europe (UN/ECE) Regulation No. 97                   installed as original equipment on a
                                                thefts for vehicle lines resulting from                  (ECE R97) in effect August 8, 2007,                     vehicle.15 Transport Canada also stated
                                                the installation of immobilization                       Uniform Provisions Concerning                           that those three standards contained
                                                devices as standard equipment on those                   Approval of Vehicle Alarm System                        requirements specific to particular
                                                lines.                                                   (VAS) and Motor Vehicles with Regard                    immobilizer designs, had the potential
                                                                                                         to Their Alarm System (AS); UN/ECE                      to restrict the design of immobilizers,
                                                B. U.S. Canada Regulatory Cooperation                                                                            and had the potential to prevent the
                                                Council                                                  Regulation No. 116 (ECE R116), Uniform
                                                                                                         Technical Prescriptions Concerning the                  introduction of new and emerging
                                                  On February 4, 2011, the U.S. and the                  Protection of Motor Vehicles Against                    technologies such as keyless vehicle
                                                Canadian governments created a United                    Unauthorized Use in effect on February                  technologies, key-replacement
                                                                                                         10, 2009; and a set of requirements                     technologies and remote starting
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                                                  9 See http://www.iihs.org/iihs/news/desktopnews/
                                                                                                         derived from the CAN/ULC 338–98                         systems. Transport Canada stated that
                                                theft-losses-decline-by-half-when-cars-are-                                                                      for these reasons it established a set of
                                                equipped-with-immobilizing-antitheft-devices (last       standard and ECE R97 developed by
                                                accessed February 10, 2016).                             Transport Canada to increase                               15 See SOR/2007–246 November, 2007
                                                  10 77 FR 1974 (January 12, 2012).
                                                                                                                                                                 ‘‘Regulations Amending the Motor Vehicle Safety
                                                  11 76 FR 68262 (November 3, 2011).                        14 https://www.whitehouse.gov/sites/default/files/   Regulations (Theft Protection and Rollaway
                                                  12 77 FR 20486 (April 4, 2012).
                                                                                                         omb/oira/irc/us-canada-rcc-joint-forward-plan.pdf       Prevention—Standard 114)’’ 2007–11–14 Canada
                                                  13 76 FR 41558 (July 14, 2011).                        (last accessed February 10, 2016).                      Gazette Part II, Vol. 141, No. 23.



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                                                66836            Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations

                                                performance requirements without the                     required to install an immobilizer in                    For these reasons, the agency
                                                environmental and durability                             order to gain an exemption. The agency                concluded that establishing
                                                requirements contained in CAN/ULC–                       proposed to retain the current                        performance criteria for immobilizers as
                                                S338–98, ECE R97, and ECE R116.                          exemption process so that                             a means of getting an exemption from
                                                                                                         manufacturers would still be able to                  the theft prevention standard is
                                                III. Proposed Rule
                                                                                                         gain an exemption for installing anti-                consistent with 49 U.S.C. 33106 of the
                                                   The agency proposed to include                        theft devices that do not conform to the              Theft Act. That section requires the
                                                performance criteria for immobilizers in                 proposed performance criteria for                     agency to determine that an anti-theft
                                                part 543 so that manufacturers may                       immobilizers. The number of                           device is likely to be as effective in
                                                more easily apply for exemptions from                    exemptions available to manufacturers                 reducing and deterring motor vehicle
                                                the parts marking requirements for                       would not increase as a result of the                 theft as compliance with the parts
                                                vehicles lines with immobilizers                         proposal. Thus, manufacturers will                    marking requirements in part 541 in
                                                conforming to CMVSS No. 114. NHTSA                       continue to be eligible for an exemption              order to grant an exemption from those
                                                proposed to add performance criteria to                  from the parts marking requirements for               requirements.
                                                part 543 to make our theft prevention                    only one vehicle line per model year.                    The proposed performance criteria for
                                                standards more in line with those of                        NHTSA proposed only the fourth set                 immobilizers included specifications for
                                                Canada. In order to be eligible for an                   of performance criteria for immobilizers              when the immobilizer should arm after
                                                exemption under the proposal,                            contained in CMVSS No. 114 for                        the disarming device is removed from
                                                manufacturers would be required to                       inclusion in part 543. The agency                     the vehicle. The performance criteria
                                                state and demonstrate that the                           proposed to adopt only this one set of                state that, when armed, the immobilizer
                                                immobilizer device they are installing in                performance criteria because of the                   should prevent the vehicle from moving
                                                the vehicle line meets the proposed                      factors articulated by Transport Canada               more than three meters under its own
                                                performance criteria and is durable and                  discussed in Section C above.                         power by inhibiting the operation of at
                                                reliable.                                                Furthermore, the agency proposed                      least one of the vehicle’s electronic
                                                   The agency believes that adding                       adopting only this one set of                         control units (ECU). Further, the
                                                performance criteria from CMVSS No.                      performance criteria as the simplest way              performance criteria state that, when
                                                114 to part 543 is the simplest way to                   to harmonize anti-theft regulations                   armed, the immobilizer should not
                                                make our anti-theft regulations more in                  between the U.S. and Canada. In the                   disable the vehicle’s brake system.
                                                line with that standard and to reduce                    proposed rule, NHTSA anticipated the                  During the disarming process, the
                                                the burden to manufacturers, who are                     possibility that vehicles equipped with               immobilizer should send a code to the
                                                already installing immobilizers in                       immobilizers meeting the performance                  inhibited ECU to allow the vehicle to
                                                compliance with that standard, of                        criteria in CAN/ULC–S338–98, ECE                      move under its own power. The
                                                applying for an exemption from the                       R97, or ECE R116 would still be able to               immobilizer should be configured so
                                                parts marking requirements. The agency                   obtain an exemption from the theft                    that disrupting the device’s normal
                                                could not add performance                                prevention standard via a petition filed              operating voltage cannot disarm the
                                                requirements for immobilizers as part of                 under the current exemption                           immobilizer. Additionally, the
                                                Federal Motor Vehicle Safety Standard                    procedures. The agency sought                         immobilizer must have a minimum
                                                (FMVSS) No. 114, Theft Protection and                    comment on whether it should consider                 capacity for 50,000 code variants and
                                                Rollaway Prevention, since doing so                      including all four performance criteria.              shall not be capable of processing more
                                                would require a determination that the                      In its proposal, NHTSA tentatively                 than 5,000 codes within 24 hours unless
                                                additional requirements would be                         concluded that immobilizers meeting                   the immobilizer uses rolling or
                                                consistent with the National Traffic and                 the proposed performance criteria are                 encrypted codes. The performance
                                                Motor Vehicle Safety Act (Motor                          likely to be as effective in reducing and             criteria state that it shall not be possible
                                                Vehicle Safety Act).16 Further, the                      deterring motor vehicle theft as                      to replace the immobilizer without the
                                                agency is unable to issue a theft                        compliance with the parts marking                     use of software. In order to satisfy the
                                                prevention standard under the Theft Act                  requirements in part 541. The agency                  performance criteria, the immobilizer in
                                                to require the installation of                           has granted numerous exemptions from                  a vehicle must be designed so that it is
                                                immobilizers because that Act limits the                 the theft prevention standard for vehicle             not possible to disarm it using common
                                                agency’s standard setting authority to                   lines equipped with immobilizers based                tools within five minutes.
                                                issuing standards that require parts                     on data submitted by manufacturers                       In order to promote understanding of
                                                marking.17 Manufacturers are allowed to                  indicating that immobilizers were as                  the new terms used in the regulatory
                                                install immobilizers in lieu of parts                    effective in reducing and deterring                   text, the agency also proposed
                                                marking, but under an exemption from                                                                           definitions for ‘‘immobilizer’’ and
                                                                                                         motor vehicle theft as compliance with
                                                the theft standard, not as a compliance                                                                        ‘‘accessory mode.’’
                                                                                                         that standard. Several studies have also
                                                alternative included in the theft                                                                                 The agency plans on ensuring that
                                                                                                         indicated that immobilizers designed to
                                                standard.                                                                                                      immobilizer devices that manufacturers
                                                   Prior to this final rule, NHTSA had                   meet technical performance criteria are
                                                                                                         effective in reducing and deterring                   are installing to obtain an exemption
                                                not formally or informally adopted any                                                                         conform with the proposed performance
                                                technical performance criteria for anti-                 motor vehicle theft. Studies in Australia
                                                                                                         and Canada on the effectiveness of                    criteria by requiring manufacturers to
                                                theft devices. While NHTSA has granted                                                                         state that they have certified the
                                                many petitions for exemption from the                    immobilization systems (which meet
                                                                                                         CAN/ULC–S338–98 or ECE R97 and                        immobilizer installed on the vehicle to
                                                parts marking requirements for vehicle                                                                         the performance criteria of CMVSS No.
                                                                                                         ECE R116) have shown reduced
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                                                lines equipped with an immobilizer                                                                             114. Manufacturers must be ready to
                                                anti-theft device, a manufacturer is not                 incidence of theft compared to vehicles
                                                                                                         that were not equipped with
                                                                                                                                                               ISBN 1 876704 17 9, Melbourne, Australia, October
                                                  16 49  U.S.C. 30101 et seq.                            immobilizers.18                                       2002; Matthew J Miceli ‘‘A Report on Fatalities and
                                                   17 See 49 U.S.C. 33101(11) (defining ‘‘vehicle                                                              Injuries as a Result of Stolen Motor Vehicles (1999–
                                                theft prevention standard’’ as a performance               18 See Principles for Compulsory Immobilizer        2001),’’ prepared for The National Committee to
                                                standard for identifying major vehicle parts by          Schemes, prepared for the National Motor Vehicle      Reduce Auto Theft Project #6116 and Transport
                                                affixing numbers or symbols to those parts).             Theft Reduction Council by MM Starrs Pty Ltd.,        Canada, December 10, 2002.



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                                                                 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations                                        66837

                                                provide Transport Canada with                            and reliable without impacting the                       proposed performance criteria simplify
                                                evidence that the immobilizer complies                   ability of manufacturers to create new                   the process for applying for an
                                                with CMVSS No. 114, along with all                       immobilizer systems. We believe                          exemption because manufacturers
                                                other applicable Canadian Standards,                     manufacturers will submit statements                     would no longer need to describe how
                                                prior to certifying the vehicle under the                similar to the ones they are currently                   the immobilizer achieves these aspects
                                                Canadian Motor Vehicle Safety Act.19                     submitting as part of their exemption                    of performance. Instead, manufacturers
                                                NHTSA believes that it can rely on the                   applications to demonstrate that their                   would only need to state and
                                                information that manufacturers have                      immobilizers are durable and reliable.                   demonstrate that their immobilizer
                                                kept to provide to Transport Canada                        The agency stated it believes the                      device conforms to the performance
                                                regarding their certification to CMVSS                   proposed performance criteria are                        criteria, and is durable and reliable.
                                                No. 114 to ensure that immobilizers                      consistent with the following anti-theft                    In order to allow manufacturers to
                                                manufacturers install in order to obtain                 device attributes that are currently                     more easily apply for an exemption
                                                an exemption conform to the proposed                     contained in part 543:                                   from the theft prevention standard and
                                                performance criteria. The NPRM                             • The specification in the proposed                    to reduce the burden to the agency in
                                                proposed that manufacturers submit the                   performance criteria that the                            processing exemption petitions we
                                                documentation provided to Transport                      immobilizer arm after the disarming                      tentatively decided that we will notify
                                                Canada regarding their certification to                  device is removed from the vehicle will                  manufacturers of decisions to grant or
                                                CMVSS No. 114 to NHTSA as part of a                      facilitate activation of the immobilizer                 deny exemption petitions by notifying
                                                manufacturer’s petition for exemption.                   by the driver and prevent unauthorized                   them of the agency’s decision in writing.
                                                We do not believe that requiring this                    persons who have entered the vehicle                     As proposed, we would not publish
                                                information as part of the petition                      by means other than a key from                           notices of our decisions to grant or deny
                                                would place a burden on manufacturers                    operating the vehicle.21                                 exemption petitions from the theft
                                                because they are already compiling this                    • The specification in the proposed                    prevention standard based on the
                                                information to provide to Transport                      performance criteria that the                            manufacturer having satisfied the
                                                Canada, if requested, when certifying                    immobilizer have certain code                            performance criteria in the Federal
                                                their vehicles under the Canadian Motor                  processing capabilities and be resistant                 Register. NHTSA would continue to
                                                Vehicle Safety Act.                                      to physical attack will ensure that the                  inform the public and law enforcement
                                                   The proposed regulatory text did not                  immobilizer is designed to prevent                       that a particular vehicle line has an
                                                include a requirement that                               defeat or circumvention by persons                       exemption based on satisfaction of the
                                                manufacturers provide a detailed                         entering the vehicle by means other                      performance criteria by updating the list
                                                description of the immobilizer device as                 than a key.22                                            of exempt vehicle lines in appendix
                                                part of the petition because we believe                    The proposed performance criteria                      A–I to part 541.
                                                that the documentation that                              correspond to the aspects of                             IV. Overview of Comments
                                                manufacturers are keeping to provide to                  performance of immobilizer devices that
                                                Transport Canada, and that they would                    manufacturers now qualitatively                             NHTSA received two comments on
                                                be required to provide to NHTSA,                         describe in their exemption petitions.                   the proposed rule. Commenters were
                                                describes the immobilizer device in                      Manufacturers are currently                              generally supportive of the proposal
                                                sufficient detail for the agency to be able              demonstrating the effectiveness of                       because it allows for improved
                                                to determine whether the device                          immobilizers by describing the testing                   harmonization with Canada, but
                                                satisfies the performance criteria.                      the immobilizer has been subjected to,                   expressed concerns about the
                                                   The proposed performance criteria                     how the immobilizer is activated, how                    documentation required to obtain an
                                                did not include specifications that                      the immobilizer interacts with the key                   exemption and allowing for more
                                                address the durability and reliability of                to allow the vehicle to start and the                    compliance options similar to Transport
                                                immobilizers because the agency was                      encryption of electronic                                 Canada’s CMVSS No. 114.
                                                concerned about the limitations such                                                                                 The Alliance of Automobile
                                                                                                         communications between the key and
                                                specifications could pose to immobilizer                                                                          Manufacturers (Alliance) expressed a
                                                                                                         the immobilizer. These characteristics
                                                designs. Part 543 currently requires                                                                              procedural concern with the
                                                                                                         correspond to performance criteria in
                                                manufacturers to explain how the                                                                                  information manufacturers must
                                                                                                         the proposal for how the immobilizer
                                                design of their immobilizer device                                                                                provide to NHTSA in order to obtain an
                                                                                                         must arm, preventing the vehicle from
                                                ensures that it is durable and reliable in                                                                        exemption under the proposed
                                                                                                         moving under its own power, how the
                                                order to be eligible for an exemption.20                                                                          regulation. Specifically, the Alliance
                                                                                                         immobilizer must disarm to allow the
                                                Because the agency believes that it is                                                                            noted that in order to comply with
                                                                                                         driver to start the vehicle, the minimum
                                                possible for the durability and reliability                                                                       Canadian law, manufacturers must
                                                                                                         number of code variants that the
                                                of an immobilizer to impact its                                                                                   certify as complying with all applicable
                                                                                                         immobilizer is able to process, and the
                                                effectiveness, we tentatively decided to                                                                          CMVSSs—but manufacturers do not
                                                                                                         immobilizer’s resistance to
                                                retain this criterion of eligibility as part                                                                      routinely provide compliance data to
                                                                                                         manipulation and physical attack. The
                                                of the proposed performance criteria.                                                                             Transport Canada to prove compliance.
                                                We tentatively concluded that requiring                    21 See 49 CFR 543.6(a)(3)(i), (iv) (stating that the
                                                                                                                                                                  Because of this, the Alliance suggested
                                                manufacturers to submit a statement                      application for exemption must include an                that manufacturers only be required to
                                                regarding the durability and reliability                 explanation of how the anti-theft device facilitates     submit a statement that the immobilizer
                                                of the immobilizer is the best way to                    activation by the driver and prevents unauthorized       meets the performance requirements
                                                                                                         persons who have entered the vehicle by means
                                                ensure that immobilizers are durable                                                                              noted in the proposal. The Alliance
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                                                                                                         other than a key from operating the vehicle).
                                                                                                           22 See 49 CFR 543.6(a)(3)(iii)(iv) (stating that the   suggested that this statement would
                                                  19 Motor Vehicle Safety Act. R.S.C., ch. 16 section
                                                                                                         application for exemption must include an                eliminate the proposal’s requirement to
                                                5(1)(e) (1993) (Can.). The Canadian Motor Vehicle        explanation of how the anti-theft device prevents        submit the same documentation that
                                                Safety Act requires a manufacturer to certify that its   defeat or circumvention of the device by an
                                                vehicles comply with all applicable Canadian
                                                                                                                                                                  demonstrates compliance with CMVSS
                                                                                                         someone without the vehicle’s key and prevents
                                                Motor Vehicle Safety Standards before the vehicles       unauthorized persons who have entered the vehicle        No. 114.
                                                can be sold in Canada.                                   by means other than a key from operating the                Toyota Motor North America, Inc.
                                                  20 49 CFR 543.6(a)(3)(v).                              vehicle).                                                (Toyota) submitted a comment stating


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                                                66838            Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations

                                                that it agrees with the comments                         ensure the reliability and durability of              three other standards were developed
                                                submitted by the Alliance and that it                    the device. On those grounds, the                     for aftermarket immobilizers and had
                                                believes immobilizers conforming to                      agency can evaluate the justification and             the potential to restrict the design of
                                                any of the four enumerated standards in                  grant or deny the exemption. This rule                immobilizers. Finalizing all four
                                                CMVSS No. 114 should be acceptable to                    seeks to streamline the exemption                     performance criteria will provide
                                                obtain an exemption under part 543.                      process by using compliance with                      additional flexibility by allowing OEMs
                                                Toyota suggests that allowing                            certain standards in lieu of submitting               and aftermarket manufacturers to elect
                                                manufacturers to obtain an exemption                     separate justifications for exemptions                the performance criteria most
                                                by complying with any of the four                        under Part 543. Requiring                             appropriate for their device. It will also
                                                accepted standards would allow for                       manufacturers to provide the                          improve harmonization with the United
                                                greater harmonization between the                        recordkeeping information required by                 Nations Economic Commission for
                                                United States and Canada, as well as                     the Transport Canada to demonstrate                   Europe (ECE) immobilizer performance
                                                increase manufacturer flexibility.                       CMVSS No. 114 compliance, should                      criteria by allowing manufacturers the
                                                                                                         Transport Canada ask for the data,                    option of complying with one of two
                                                V. Response to Comments and                              allows NHTSA to ensure anti-theft                     ECE standards and receiving an
                                                Differences Between the Final Rule and                   devices installed on vehicles meet the                exemption from the theft prevention
                                                NPRM                                                     same level of performance as would be                 standard.
                                                A. Manufacturers Seeking an Exemption                    expected of an anti-theft device                         Further, NHTSA believes allowing all
                                                Via Compliance With Performance                          requested through the prior exemption                 four performance standards will be as
                                                Criteria Will Be Required To Submit                      process. Therefore, the agency is                     effective in reducing and deterring
                                                Data Demonstrating Compliance With                       finalizing the proposed requirement that              motor vehicle theft as compliance with
                                                Standards                                                manufacturers submit compliance data                  the parts marking requirements in part
                                                   Transport Canada has a certification                  kept for Transport Canada compliance                  541. Since 2007, when Transport
                                                process that is similar to NHTSA’s ‘‘self-               in order to prove compliance with                     Canada began requiring OEMs to install
                                                certification process.’’ Under Canada’s                  CMVSS No. 114 standards.                              immobilizers meeting one of the four
                                                Motor Vehicle Safety Act, the                                                                                  performance criteria for most vehicles,
                                                                                                         B. Manufacturers Seeking an Exemption
                                                responsibility rests with the vehicle                                                                          theft in Canada has decreased more than
                                                                                                         Via Compliance With Performance
                                                manufacturer or importer to certify that                                                                       50 percent.24 As discussed in the
                                                                                                         Criteria May Comply With Any of the
                                                all new vehicles offered for sale in                                                                           proposal, the agency believes that based
                                                                                                         Four Criteria in CMVSS No. 114
                                                Canada comply with all applicable                                                                              on the effectiveness of immobilizers
                                                                                                            We sought comments on whether                      certified to any of the performance
                                                safety standards in effect on the date of                adding the standards in CAN/ULC–
                                                manufacture. Manufacturers or                                                                                  criteria in Canada, the regulations
                                                                                                         S338–98,23 ECE R97, and ECE R116 to                   finalized today are consistent with the
                                                importers certify this by displaying the                 the agency’s accepted performance
                                                national safety mark. As a prerequisite                                                                        Theft Act.
                                                                                                         criteria would better accomplish the                     The agency has modified the
                                                to obtaining permission to use the                       agency’s goal of harmonizing the                      regulatory text to reflect the inclusion of
                                                national safety mark, a manufacturer                     process for obtaining an exemption with               all four performance criteria. As a result
                                                must maintain records demonstrating                      the Canadian theft prevention standard.               of doing so, NHTSA has moved the
                                                completion of certification testing.                     After reconsideration of the proposal                 originally proposed criteria from C.R.C,
                                                While certification test documentation                   and reviewing public comments,                        c. 1038.114, Theft Protection and
                                                may not be requested by Transport                        NHTSA has decided to accept anti-theft                Rollaway Prevention (in effect March 30,
                                                Canada for every new or imported                         devices compliant with any of the four                2011) to appendix A of part 543.
                                                vehicle in Canada, the Canadian Motor                    performance criteria allowed under
                                                Vehicle Safety Act requires such records                 CMVSS No. 114 for exemptions under                    VI. Costs, Benefits, and Compliance
                                                be available should Transport Canada                     part 543. Manufacturers will be required              Date
                                                request them.                                            to submit statements similar to the ones                This rule amends part 543 to add
                                                   NHTSA believes that providing only a
                                                                                                         they are currently submitting as part of              performance criteria for immobilizers
                                                statement of compliance with CMVSS
                                                                                                         their exemption applications to                       that are contained in CMVSS No. 114.
                                                No. 114 is insufficient to justify an
                                                                                                         demonstrate that immobilizers certified               Because the agency is retaining the
                                                exemption from the theft prevention
                                                                                                         to any of the four standards are durable              current exemption process as a means of
                                                standard. Moreover, the data NHTSA
                                                                                                         and reliable. The agency proposed what                gaining an exemption from the theft
                                                will require is data manufacturers
                                                                                                         it believed to be the simplest method of              prevention standard, the addition of
                                                should be keeping in order to facilitate
                                                                                                         harmonization with Canada; however,                   performance criteria to part 543 would
                                                any compliance verification requests
                                                                                                         after evaluating stakeholder response to              result in no costs to manufacturers.
                                                from Transport Canada.
                                                                                                         this issue, we believe that finalizing all            Manufacturers would not be required to
                                                   The agency currently receives
                                                                                                         four performance criteria will simplify               make any changes to products in order
                                                petitions for exemptions from
                                                                                                         compliance and promote harmonization                  to retain eligibility for an exemption.
                                                manufacturers that present justification
                                                                                                         between the United States and Canada.                   The agency cannot quantify the
                                                for receiving an exemption. This
                                                                                                            We proposed Transport Canada’s                     benefits of this rulemaking. The agency
                                                application includes an explanation of
                                                                                                         fourth performance criteria because                   does, however, expect some benefits to
                                                how the anti-theft device will promote
                                                                                                         Transport Canada determined that the                  accrue from making the exemption
                                                activation, attract attention to the efforts
                                                                                                                                                               process in part 543 more closely
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                                                of unauthorized persons to enter or                        23 NHTSA was notified that ULC posted a
                                                                                                                                                               harmonized with CMVSS No. 114.
                                                operate a vehicle by means other than                    withdrawal for CAN/ULC–S338–98 on December            Additionally, since two of the accepted
                                                a key, prevent defeat or circumvention                   22, 2015. The comment period for this withdrawal
                                                                                                         closed on January 20, 2016. See: https://             performance criteria added by this rule
                                                of the device by unauthorized persons,
                                                                                                         www.scc.ca/en/standards/work-programs/ulc/
                                                prevent operation of the vehicle by                      standard-for-automobile-theft-deterrent-equipment-      24 See ‘‘actual incidents’’ of ‘‘total theft of motor
                                                unauthorized persons to enter or operate                 and-systems-electronic-immobilization (last           vehicle’’ at http://www5.statcan.gc.ca/cansim/
                                                a vehicle by unauthorized entrants, and                  accessed February 10, 2016).                          a01?lang=eng (last accessed February 10, 2016).



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                                                                 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations                                        66839

                                                are ECE standards, manufacturers could                   required to make any changes to current                  NHTSA has considered the effects of
                                                potentially pay less for immobilizer                     vehicles to retain eligibility for an                 the rule under the Regulatory Flexibility
                                                devices if they are able to order higher                 exemption. It is also possible that this              Act and certifies that this rule would
                                                volumes of parts due to harmonization                    rule would result in a reduction in                   not have a significant economic impact
                                                with Canadian and ECE standards.                         motor vehicle thefts if immobilizers                  on a substantial number of small
                                                   Adding the performance criteria                       meeting the performance criteria are                  entities. This rule amends part 543 to
                                                would allow manufacturers that are                       more effective than current designs.                  add performance criteria for
                                                installing immobilizers as standard                                                                            immobilizers that are contained in
                                                                                                         Executive Order 13609: Promoting                      CMVSS No. 114 to allow manufacturers
                                                equipment for a line of motor vehicles
                                                                                                         International Regulatory Cooperation                  who are installing immobilizers in
                                                in compliance with CMVSS No. 114 to
                                                more easily gain an exemption from the                     The policy statement in section 1 of                compliance with that standard to more
                                                parts marking requirements. The agency                   Executive Order 13609 provides, in part:              easily obtain an exemption from the
                                                believes this would reduce the cost to                                                                         theft prevention standard. This rule
                                                                                                            The regulatory approaches taken by foreign
                                                manufacturers of applying for an                         governments may differ from those taken by            would not significantly affect any
                                                exemption from the parts marking                         U.S. regulatory agencies to address similar           entities because it would leave in place
                                                requirements. Adding performance                         issues. In some cases, the differences                the current exemption process so that
                                                criteria to part 543 would also result in                between the regulatory approaches of U.S.             manufacturers would not need to make
                                                a reduction in vehicle theft in cases for                agencies and those of their foreign                   any changes to products to retain
                                                which the rule improves the                              counterparts might not be necessary and               eligibility for an exemption.
                                                effectiveness of the anti-theft devices                  might impair the ability of American                  Accordingly, we do not anticipate that
                                                                                                         businesses to export and compete                      this rule would have a significant
                                                chosen by manufacturers.
                                                                                                         internationally. In meeting shared challenges         economic impact on a substantial
                                                   If the rule encourages more                           involving health, safety, labor, security,
                                                manufacturers to install immobilizers                                                                          number of small entities.
                                                                                                         environmental, and other issues,
                                                meeting CMVSS No. 114 on vehicles                        international regulatory cooperation can              Executive Order 12988 (Civil Justice
                                                sold in the United States, it could result               identify approaches that are at least as              Reform)
                                                in cost savings to consumers seeking to                  protective as those that are or would be
                                                import used vehicles into Canada.                        adopted in the absence of such cooperation.              With respect to the review of the
                                                Importing used vehicles that already                     International regulatory cooperation can also         promulgation of a new regulation,
                                                comply with CMVSS No. 114 into                           reduce, eliminate, or prevent unnecessary             section 3(b) of Executive Order 12988,
                                                Canada saves consumers from having to                    differences in regulatory requirements.               ‘‘Civil Justice Reform’’ (61 FR 4729; Feb.
                                                pay to have an aftermarket immobilizer                                                                         7, 1996), requires that Executive
                                                                                                           NHTSA is issuing this rule pursuant                 agencies make every reasonable effort to
                                                installed in the vehicle.                                to a regulatory cooperation agreement
                                                   The compliance date will be 60 days                                                                         ensure that the regulation: (1) Clearly
                                                                                                         between the United States and Canada.                 specifies the preemptive effect; (2)
                                                after the date of issuance of the                        This rule would more closely harmonize
                                                publication of this final rule.                                                                                clearly specifies the effect on existing
                                                                                                         vehicle theft regulations in the United               Federal law or regulation; (3) provides
                                                VIII. Regulatory Notices and Analyses                    States with those in Canada.                          a clear legal standard for affected
                                                Executive Order 12866, Executive Order                   National Environmental Policy Act                     conduct, while promoting simplification
                                                13563, and DOT Regulatory Policies and                                                                         and burden reduction; (4) clearly
                                                                                                           We have reviewed this rule for the                  specifies the retroactive effect, if any; (5)
                                                Procedures                                               purposes of the National Environmental                specifies whether administrative
                                                  NHTSA has considered the impact of                     Policy Act and determined that it would               proceedings are to be required before
                                                this rulemaking action under Executive                   not have a significant impact on the                  parties file suit in court; (6) adequately
                                                Order 12866, Executive Order 13563,                      quality of the human environment.                     defines key terms; and (7) addresses
                                                and the Department of Transportation’s                   Regulatory Flexibility Act                            other important issues affecting clarity
                                                regulatory policies and procedures. This                                                                       and general draftsmanship under any
                                                rulemaking document was not reviewed                       Pursuant to the Regulatory Flexibility              guidelines issued by the Attorney
                                                by the Office of Management and                          Act (5 U.S.C. 601 et seq., as amended by              General. This document is consistent
                                                Budget under E.O. 12866, ‘‘Regulatory                    the Small Business Regulatory                         with that requirement.
                                                Planning and Review.’’ It is not                         Enforcement Fairness Act (SBREFA) of                     Pursuant to this Order, NHTSA notes
                                                considered to be significant under E.O.                  1996), whenever an agency is required                 as follows. There is no requirement that
                                                12866 or the Department’s regulatory                     to publish a notice of rulemaking for                 individuals submit a petition for
                                                policies and procedures.                                 any proposed or final rule, it must                   reconsideration or pursue other
                                                  This rule would amend part 543 to                      prepare and make available for public                 administrative proceedings before they
                                                add performance criteria for                             comment a regulatory flexibility                      may file suit in court. NHTSA has
                                                immobilizers that are contained in                       analysis that describes the effect of the             considered whether this rulemaking
                                                CMVSS No. 114 to allow manufacturers                     rule on small entities (i.e., small                   would have any retroactive effect. This
                                                who are installing immobilizers in                       businesses, small organizations, and                  rule does not have any retroactive effect.
                                                compliance with that standard to more                    small governmental jurisdictions). The
                                                easily obtain an exemption from the                      Small Business Administration’s                       Unfunded Mandates Reform Act
                                                theft prevention standard.                               regulations at 13 CFR part 121 define a                  Section 202 of the Unfunded
                                                  The agency concludes that the                          small business, in part, as a business                Mandates Reform Act of 1995 (UMRA)
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                                                impacts of the changes would be so                       entity ‘‘which operates primarily within              requires Federal agencies to prepare a
                                                minimal that preparation of a full                       the United States.’’ 13 CFR 121.105(a).               written assessment of the costs, benefits,
                                                regulatory evaluation is not required.                   No regulatory flexibility analysis is                 and other effects of a proposed or final
                                                This rule would not result in any costs                  required if the head of an agency                     rule that includes a Federal mandate
                                                to manufacturers because the current                     certifies the rule will not have a                    likely to result in the expenditure by
                                                exemption process would be left in                       significant economic impact on a                      State, local, or tribal governments, in the
                                                place. Manufacturers would not be                        substantial number of small entities.                 aggregate, or by the private sector, of


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                                                66840            Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations

                                                more than $100 million in any one year                   is equipped with an immobilizer, as                   National Technology Transfer and
                                                (adjusted for inflation with base year of                standard equipment, that meets the                    Advancement Act
                                                1995).                                                   performance criteria contained in that                   Section 12(d) of the National
                                                   Before promulgating a rule for which                  section, a statement that the                         Technology Transfer and Advancement
                                                a written statement is needed, section                   immobilizer has been certified to the                 Act (NTTAA) requires NHTSA to
                                                205 of the UMRA generally requires                       Canadian theft prevention standard,                   evaluate and use existing voluntary
                                                NHTSA to identify and consider a                         documentation provided to Transport                   consensus standards in its regulatory
                                                reasonable number of regulatory                          Canada to demonstrate that the                        activities unless doing so would be
                                                alternatives and adopt the least costly,                 immobilizer was certified to the                      inconsistent with applicable law (e.g.,
                                                most cost-effective, or least burdensome                 Canadian theft prevention standard, and               the statutory provisions regarding
                                                alternative that achieves the objectives                 a statement that the immobilizer device               NHTSA’s vehicle safety authority) or
                                                of the rule. The provisions of section                   is durable and reliable. This rule would              otherwise impractical.
                                                205 do not apply when they are                           not change the information that                          Voluntary consensus standards are
                                                inconsistent with applicable law.                        manufacturers would need to submit if                 technical standards developed or
                                                Moreover, section 205 allows NHTSA to                    seeking an exemption in accordance                    adopted by voluntary consensus
                                                adopt an alternative other than the least                with the current process used for                     standards bodies. Technical standards
                                                costly, most cost-effective, or least                    petitions seeking an exemption based on               are defined by the NTTAA as
                                                burdensome alternative if the agency                     the installation of immobilizers.                     ‘‘performance-based or design-specific
                                                publishes with the final rule an                            Description of the Need for the                    technical specification and related
                                                explanation why that alternative was                     Information and Use of the Information:               management systems practices.’’ They
                                                not adopted.                                             The information is needed to determine                pertain to ‘‘products and processes,
                                                   This rule is not anticipated to result                whether a vehicle line is eligible for an             such as size, strength, or technical
                                                in the expenditure by state, local, or                   exemption from the vehicle theft                      performance of a product, process or
                                                tribal governments, in the aggregate, or                 prevention standard.                                  material.’’
                                                by the private sector in excess of $100                     Description of the Likely Respondents                 Examples of organizations generally
                                                million annually. The cost impact of                     (Including Estimated Number, and                      regarded as voluntary consensus
                                                this rule is expected to be $0. Therefore,               Frequency of Response to the Collection               standards bodies include the American
                                                the agency has not prepared an                           of Information): Currently, nineteen                  Society for Testing and Materials
                                                economic assessment pursuant to the                      manufacturers have one or more car                    (ASTM), the Society of Automotive
                                                Unfunded Mandate Reform Act.                             lines exempted. We expect that within                 Engineers (SAE), and the American
                                                Paperwork Reduction Act                                  the three year period covered by this                 National Standards Institute (ANSI). If
                                                                                                         clearance, twelve manufacturers would                 NHTSA does not use available and
                                                   Under the Paperwork Reduction Act                     apply for an exemption per year: Nine
                                                of 1995 (PRA) (44 U.S.C. 3501, et seq.),                                                                       potentially applicable voluntary
                                                                                                         under the current process and three                   consensus standards, we are required by
                                                Federal agencies must obtain approval                    under the performance criteria. Based
                                                from the Office of Management and                                                                              the Act to provide Congress, through
                                                                                                         on another analysis of the exemption                  OMB, an explanation of the reasons for
                                                Budget (OMB) for each collection of                      information NHTSA has received, as
                                                information they conduct, sponsor, or                                                                          not using such standards.
                                                                                                         well as the comments the agency                          We are not aware of any technical
                                                require through regulations. This rule                   received, NHTSA has made a minor
                                                would decrease the materials that a                                                                            performance criteria for immobilizers
                                                                                                         adjustment to the estimates provided in               issued by voluntary consensus
                                                manufacturer would need to submit to                     the NPRM. In comparison to the
                                                the agency to obtain an exemption from                                                                         standards bodies in the United States.
                                                                                                         estimates provided in the NPRM, the                   For the reasons discussed in this notice,
                                                the vehicle theft prevention standard in                 agency believes that one more
                                                certain instances.                                                                                             the agency has determined that the
                                                                                                         manufacturer will use the new process                 simplest way to harmonize part 543
                                                   Agency: National Highway Traffic
                                                                                                         within the next three years. The agency               with Canadian theft prevention
                                                Safety Administration (NHTSA).
                                                  Title: 49 CFR part 543, Petitions for                  thinks it is likely that more                         regulations was to adopt all four
                                                Exemption from the Vehicle Theft                         manufacturers will migrate to the new                 performance criteria discussed above.
                                                Prevention Standard.                                     process over time, however, because
                                                                                                         many manufacturers have product plans                 Executive Order 13211
                                                  Type of Request: Revision of a
                                                currently approved collection.                           covering the next three years that might                 Executive Order 13211 25 applies to
                                                  OMB Control Number: 2127–0542.                         not happen until the agency renews its                any rule that: (1) Is determined to be
                                                  Form Number: The collection of this                    collection in three years. NHTSA                      economically significant as defined
                                                information uses no standard form.                       anticipates reevaluating this assessment              under E.O. 12866, and is likely to have
                                                  Requested Expiration Date of                           during its next renewal of this                       a significant adverse effect on the
                                                Approval: Three years from the date of                   collection.                                           supply, distribution, or use of energy; or
                                                approval.                                                   Estimate of the Total Annual                       (2) that is designated by the
                                                  Summary of the Collection of                           Reporting and Recordkeeping Burden                    Administrator of the Office of
                                                Information: This collection consists of                 Resulting from the Collection of                      Information and Regulatory Affairs as a
                                                information that motor vehicle                           Information: We estimate that the                     significant energy action. If the
                                                manufacturers must submit in support                     burden for applying for an exemption                  regulatory action meets either criterion,
                                                of an application for an exemption from                  under this rule would be 2300 hours.                  we must evaluate the adverse energy
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                                                the vehicle theft prevention standard.                   The burden for applying for an                        effects of the rule and explain why the
                                                Manufacturers wishing to apply for an                    exemption under the current process is                regulation is preferable to other
                                                exemption from the parts marking                         estimated to be 226 hours × 9                         potentially effective and reasonably
                                                requirement because they have installed                  respondents = 2034 hours. The burden                  feasible alternatives considered by
                                                immobilizers meeting the performance                     for apply for an exemption under the                  NHTSA.
                                                criteria would be required to submit a                   performance criteria is estimated to be
                                                statement that the entire line of vehicles               20 hours × 3 respondents = 60 hours.                    25 66   FR 28355 (May 18, 2001).



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                                                                 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations                                          66841

                                                   This rule amends part 543 to add                        (2) Be submitted in three copies to:                § 543.8    Processing an exemption petition.
                                                performance criteria for immobilizers                    Administrator, National Highway                       *      *     *     *      *
                                                that are contained in CMVSS No. 114 to                   Traffic Safety Administration, 1200 New                 (f) If the petition is sought under
                                                allow manufacturers who are installing                   Jersey Avenue, SE., Washington, DC                    § 543.6, NHTSA publishes a notice of its
                                                immobilizers in compliance with that                     20590.                                                decision to grant or deny an exemption
                                                standard to more easily obtain an                        *     *      *    *     *                             petition in the Federal Register and
                                                exemption from the theft prevention                        (6) Identify whether the exemption is               notifies the petitioner in writing of the
                                                standard. Therefore, this rule would not                 sought under § 543.6 or § 543.7.                      agency’s decision.
                                                have any significant adverse energy                        (7) If the exemption is sought under                  (g) If the petition is sought under
                                                effects. Accordingly, this rulemaking                    § 543.6, set forth in full the data, views,           § 543.7, NHTSA notifies the petitioner
                                                action is not designated as a significant                and arguments of the petitioner                       in writing of the agency’s decision to
                                                energy action.                                           supporting the exemption, including the               grant or deny an exemption petition.
                                                                                                         information specified in that section.                ■ 7. Newly redesignated § 543.9 is
                                                Regulation Identifier Number (RIN)
                                                                                                           (8) If the exemption is sought under                revised to read as follows
                                                  The Department of Transportation                       § 543.7, submission of the information
                                                assigns a regulation identifier number                                                                         § 543.9    Duration of exemption.
                                                                                                         required in that section.
                                                (RIN) to each regulatory action listed in                  (9) Specify and segregate any part of                 Each exemption under this part
                                                the Unified Agenda of Federal                            the information or data submitted that                continues in effect unless it is modified
                                                Regulations. The Regulatory Information                  the petitioner requests be withheld from              or terminated under § 543.10, or the
                                                Service Center publishes the Unified                     public disclosure in accordance with                  manufacturer ceases production of the
                                                Agenda in April and October of each                      part 512, Confidential Business                       exempted line.
                                                year. You may use the RIN contained in                   Information, of this chapter.                         ■ 8. Add appendix A to part 543 to read
                                                the heading at the beginning of this                                                                           as follows:
                                                document to find this action in the                      §§ 543.7 through 543.9 [Redesignated as
                                                                                                         §§ 543.8 through 543.10]                              Appendix A to Part 543—Performance
                                                Unified Agenda.                                                                                                Criteria (Subsections 8 Through 21) of
                                                                                                         ■ 4. Redesignate §§ 543.7 through 543.9
                                                List of Subjects in 49 CFR Part 543                                                                            C.R.C, c. 1038.114 (in Effect March 30,
                                                                                                         as §§ 543.8 through 543.10.
                                                  Imports, Motor vehicle safety, Motor                                                                         2011)
                                                                                                         ■ 5. Add a new § 543.7 to read as
                                                vehicles, Reporting and recordkeeping                    follows:                                                In order to be eligible for an exemption
                                                requirements, Tires.                                                                                           under § 543.7(a)(1), the entire vehicle line
                                                  In consideration of the foregoing,                     § 543.7 Petitions based on performance                must be equipped with an immobilizer
                                                                                                         criteria.                                             meeting the following criteria:
                                                NHTSA amends 49 CFR chapter V as                                                                                 (1) Subject to paragraph (2) of this
                                                follows.                                                    A petition submitted under this
                                                                                                                                                               appendix, an immobilization system shall
                                                                                                         section must include:                                 arm automatically within a period of not
                                                PART 543—EXEMPTION FROM                                     (a) A statement that the entire line of            more than 1 minute after the disarming
                                                VEHICLE THEFT PREVENTION                                 vehicles is equipped with an                          device is removed from the vehicle, if the
                                                STANDARD                                                 immobilizer, as standard equipment,                   vehicle remains in a mode of operation other
                                                                                                         that meets one of the following:                      than accessory mode or on throughout that
                                                ■ 1. The authority citation for part 543                    (1) The performance criteria                       period.
                                                of title 49 is revised to read as follows:               (subsections 8 through 21) of C.R.C, c.                 (2) If the disarming device is a keypad or
                                                                                                         1038.114, Theft Protection and                        biometric identifier, the immobilization
                                                  Authority: 49 U.S.C. 322, 33101, 33102,                                                                      system shall arm automatically within a
                                                33103, 33104 and 33105; delegation of                    Rollaway Prevention (in effect March 30,              period of not more than 1 minute after the
                                                authority at 49 CFR 1.95.                                2011), as excerpted in appendix A of                  motors used for the vehicle’s propulsion are
                                                ■ 2. Amend § 543.4 by adding, in                         this part;                                            turned off, if the vehicle remains in a mode
                                                alphabetical order, definitions for                         (2) National Standard of Canada CAN/               of operation other than accessory mode or on
                                                ‘‘Accessory mode’’ and ‘‘Immobilizer’’                   ULC–S338–98, Automobile Theft                         throughout that period.
                                                                                                         Deterrent Equipment and Systems:                        (3) The immobilization system shall arm
                                                in paragraph (b) to read as follows:                                                                           automatically not later than 2 minutes after
                                                                                                         Electronic Immobilization (May 1998);
                                                § 543.4   Definitions.                                      (3) United Nations Economic                        the immobilization system is disarmed,
                                                                                                         Commission for Europe (UN/ECE)                        unless:
                                                *      *     *     *     *                                                                                       (i) Action is taken for starting one or more
                                                   (b) * * *                                             Regulation No. 97 (ECE R97), Uniform                  motors used for the vehicle’s propulsion;
                                                   Accessory mode means the ignition                     Provisions Concerning Approval of                       (ii) Disarming requires an action to be
                                                switch setting in which certain                          Vehicle Alarm System (VAS) and Motor                  taken on the engine start control or electric
                                                electrical systems (such as the radio and                Vehicles with Regard to Their Alarm                   motor start control, the engine stop control or
                                                power windows) can be operated                           System (AS) in effect August 8, 2007; or              electric motor stop control, or the ignition
                                                without the operation of the vehicle’s                      (4) UN/ECE Regulation No. 116 (ECE                 switch; or
                                                propulsion engine.                                       R116), Uniform Technical Prescriptions                  (iii) Disarming occurs automatically by the
                                                                                                                                                               presence of a disarming device and the
                                                   Immobilizer means a device that,                      Concerning the Protection of Motor
                                                                                                                                                               device is inside the vehicle.
                                                when activated, is intended to prevent                   Vehicles Against Unauthorized Use in                    (4) If armed, the immobilization system
                                                a motor vehicle from being powered by                    effect on February 10, 2009.                          shall prevent the vehicle from moving more
                                                its own propulsion system.                                  (b) Compliance documentation kept to               than 3 meters (9.8 feet) under its own power
                                                *      *     *     *     *                               demonstrate the basis for certification               by inhibiting the operation of at least one
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                                                ■ 3. In § 543.5, revise paragraphs (b)(2),
                                                                                                         with the performance criteria specified               electronic control unit and shall not have any
                                                                                                         in paragraph (a) of this section.                     impact on the vehicle’s brake system except
                                                (6), and (7) and add paragraphs (b)(8)                                                                         that it may prevent regenerative braking and
                                                and (9) to read as follows:                                 (c) A statement that the immobilizer
                                                                                                         device is durable and reliable.                       the release of the parking brake.
                                                                                                                                                                 (5) During the disarming process, a code
                                                § 543.5   Petition: General requirements.                ■ 6. Amend newly redesignated § 543.8                 shall be sent to the inhibited electronic
                                                *       *     *       *      *                           by revising paragraph (f) and adding                  control unit in order to allow the vehicle to
                                                    (b) * * *                                            paragraph (g) to read as follows:                     move under its own power.



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                                                66842            Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Rules and Regulations

                                                   (6) It shall not be possible to disarm the            Safety Regulations (Theft Prevention and              FOR FURTHER INFORMATION CONTACT:
                                                immobilization system by interrupting its                Rollaway Prevention—Standard 114)’’ 2011–             Roxanna Hinzman, U.S. Fish and
                                                normal operating voltage.                                03–30 Canada Gazette Part II, Vol 145, No. 7.         Wildlife Service, South Florida
                                                   (7) When the normal starting procedure
                                                                                                           Issued in Washington, DC, on September 8,           Ecological Services Field Office, 1339
                                                requires that the disarming device
                                                mechanically latch into a receptacle and the             2016, under authority delegated in 49 CFR             20th Street, Vero Beach, FL 32960;
                                                device is physically separate from the                   part 1.95.                                            telephone 772–562–3909; facsimile
                                                ignition switch key, one or more motors used             Mark R. Rosekind,                                     772–562–4288. Persons who use a
                                                for the vehicle’s propulsion shall start only            Administrator.                                        telecommunications device for the deaf
                                                after the device is removed from that                    [FR Doc. 2016–22061 Filed 9–28–16; 8:45 am]           (TDD) may call the Federal Information
                                                receptacle.                                                                                                    Relay Service (FIRS) at 800–877–8339.
                                                                                                         BILLING CODE 4910–59–P
                                                   (8)(i) The immobilization system shall have                                                                 SUPPLEMENTARY INFORMATION:
                                                a minimum capacity of 50,000 code variants,
                                                shall not be disarmed by a code that can                                                                       Executive Summary
                                                disarm all other immobilization systems of               DEPARTMENT OF THE INTERIOR
                                                the same make and model; and
                                                                                                                                                                  Why we need to publish a rule. Under
                                                   (ii) subject to paragraph (9) of this                 Fish and Wildlife Service                             the Endangered Species Act, a species
                                                appendix, it shall not have the capacity to                                                                    may warrant protection through listing
                                                process more than 5,000 codes within 24                  50 CFR Part 17                                        if it is endangered or threatened
                                                hours.                                                                                                         throughout all or a significant portion of
                                                   (9) If an immobilization system uses rolling          [Docket No. FWS–R4–ES–2015–0137;                      its range. Listing a species as an
                                                or encrypted codes, it may conform to the                4500030113]                                           endangered or threatened species can
                                                following criteria instead of the criteria set                                                                 only be completed by issuing a rule.
                                                                                                         RIN 1018–AZ95
                                                out in paragraph (8)(ii) of this appendix:                                                                        The basis for our action. Under the
                                                   (i) The probability of obtaining the correct
                                                                                                         Endangered and Threatened Wildlife                    Endangered Species Act, we may
                                                code within 24 hours shall not exceed 4 per
                                                cent; and                                                and Plants; Endangered Species                        determine that a species is an
                                                   (ii) It shall not be possible to disarm the           Status for Chamaecrista lineata var.                  endangered or threatened species based
                                                system by re-transmitting in any sequence                keyensis (Big Pine Partridge Pea),                    on any of five factors: (A) The present
                                                the previous 5 codes generated by the system.            Chamaesyce deltoidea ssp. serpyllum                   or threatened destruction, modification,
                                                   (10) The immobilization system shall be               (Wedge Spurge), and Linum arenicola                   or curtailment of its habitat or range; (B)
                                                designed so that, when tested as installed in            (Sand Flax), and Threatened Species                   overutilization for commercial,
                                                the vehicle neither the replacement of an                Status for Argythamnia blodgettii                     recreational, scientific, or educational
                                                original immobilization system component
                                                                                                         (Blodgett’s Silverbush)                               purposes; (C) disease or predation; (D)
                                                with a manufacturer’s replacement
                                                component nor the addition of a                                                                                the inadequacy of existing regulatory
                                                                                                         AGENCY:   Fish and Wildlife Service,
                                                manufacturer’s component can be completed                                                                      mechanisms; or (E) other natural or
                                                                                                         Interior.
                                                without the use of software; and it is not                                                                     manmade factors affecting its continued
                                                                                                         ACTION: Final rule.
                                                possible for the vehicle to move under its                                                                     existence. We have determined that the
                                                own power for at least 5 minutes after the               SUMMARY:   We, the U.S. Fish and                      threats to Chamaecrista lineata var.
                                                beginning of the replacement or addition of                                                                    keyensis, Chamaesyce deltoidea ssp.
                                                a component referred to in this paragraph (1).
                                                                                                         Wildlife Service (Service), determine
                                                                                                         endangered species status under the                   serpyllum, Linum arenicola, and
                                                   (11) The immobilization system’s
                                                                                                         Endangered Species Act of 1973 (Act),                 Argythamnia blodgettii consist
                                                conformity to paragraph (10) of this appendix
                                                shall be demonstrated by testing that is                 as amended, for Chamaecrista lineata                  primarily of:
                                                carried out without damaging the vehicle.                var. keyensis (Big Pine partridge pea),                  • Habitat loss and modification
                                                   (12) Paragraph (10)(i) of this appendix does          Chamaesyce deltoidea ssp. serpyllum                   through urban and agricultural
                                                not apply to the addition of a disarming                 (wedge spurge), and Linum arenicola                   development, and lack of adequate fire
                                                device that requires the use of another                  (sand flax), and threatened species                   management (Factor A); and
                                                disarming device that is validated by the                status for Argythamnia blodgettii                        • The proliferation of nonnative,
                                                immobilization system.
                                                                                                         (Blodgett’s silverbush), all plant species            invasive plants; stochastic events
                                                   (13) The immobilization system shall be                                                                     (hurricanes and storm surge);
                                                designed so that it can neither be bypassed              from south Florida. The rule adds these
                                                                                                         species to the Federal List of                        maintenance practices used on
                                                nor rendered ineffective in a manner that                                                                      roadsides and disturbed sites; and sea
                                                would allow a vehicle to move under its own              Endangered and Threatened Plants.
                                                power, or be disarmed, using one or more of
                                                                                                                                                               level rise (Factor E).
                                                                                                         DATES: This rule is effective October 31,
                                                the tools and equipment listed in paragraph
                                                                                                                                                                  Existing regulatory mechanisms have
                                                                                                         2016.                                                 not been adequate to reduce or remove
                                                (14) of this appendix;
                                                                                                         ADDRESSES: This final rule is available               these threats (Factor D).
                                                   (i) Within a period of less than 5 minutes,
                                                when tested as installed in the vehicle; or              on the Internet at http://                               Peer review and public comment. We
                                                   (ii) Within a period of less than 2.5                 www.regulations.gov. Comments and                     sought comments from independent
                                                minutes, when bench-tested outside the                   materials we received, as well as                     specialists to ensure that our
                                                vehicle.                                                 supporting documentation we used in                   determination is based on scientifically
                                                   (14) During a test referred to in paragraph           preparing this rule, are available for                sound data, assumptions, and analyses.
                                                (13) of this appendix, only the following                public inspection at http://                          We invited these peer reviewers to
                                                tools or equipment may be used: Scissors,                www.regulations.gov. Comments,                        comment on our listing proposal. We
                                                wire strippers, wire cutters and electrical              materials, and documentation that we
                                                wires, a hammer, a slide hammer, a chisel,                                                                     also considered all other comments and
                                                                                                         considered in this rulemaking will be                 information we received during the
                                                a punch, a wrench, a screwdriver, pliers,
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                                                steel rods and spikes, a hacksaw, a battery              available by appointment, during                      comment period.
                                                operated drill, a battery operated angle                 normal business hours at: U.S. Fish and
                                                                                                         Wildlife Service, South Florida                       Previous Federal Actions
                                                grinder; and a battery operated jigsaw.
                                                   Note: C.R.C, c. 1038.114, Theft Protection            Ecological Services Field Office, 1339                  Please refer to the proposed listing
                                                and Rollaway Prevention (in effect March 30,             20th Street, Vero Beach, FL 32960;                    rule for Chamaecrista lineata var.
                                                2011). See: SOR/2011–69 March, 2011                      telephone 772–562–3909; facsimile                     keyensis, Chamaesyce deltoidea ssp.
                                                ‘‘Regulations Amending the Motor Vehicle                 772–562–4288.                                         serpyllum, Linum arenicola, and


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Document Created: 2016-09-29 04:14:40
Document Modified: 2016-09-29 04:14:40
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
ContactFor technical issues: Mr. Hisham Mohamed, Office of Consumer Programs, NHTSA, 1200 New Jersey Avenue SE., West Building, Washington, DC 20590 (Telephone: (202) 366-0307) (Fax: (202) 493-2990).
FR Citation81 FR 66833 
RIN Number2127-AL08
CFR AssociatedImports; Motor Vehicle Safety; Motor Vehicles; Reporting and Recordkeeping Requirements and Tires

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