82 FR 28376 - Petition for Exemption From the Federal Motor Vehicle Theft Prevention Standard; BMW of North America, LLC

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration

Federal Register Volume 82, Issue 118 (June 21, 2017)

Page Range		28376-28378
FR Document		2017-12882

This document grants in full the BMW of North America, LLC's (BMW) petition for exemption of the X2 vehicle line in accordance with 49 CFR 543, Exemption from the Theft Prevention Standard. This petition is granted because the agency has determined that the antitheft device to be placed on the line as standard equipment is likely to be as effective in reducing and deterring motor vehicle theft as compliance with the parts-marking requirements of 49 CFR 541, Federal Motor Vehicle Theft Prevention Standard (Theft Prevention Standard). BMW also requested confidential treatment for specific information in its petition. While official notification granting or denying its request for confidential treatment will be addressed by separate letter, no confidential information provided for purposes of this document has been disclosed.

Federal Register, Volume 82 Issue 118 (Wednesday, June 21, 2017)

[Federal Register Volume 82, Number 118 (Wednesday, June 21, 2017)]
[Notices]
[Pages 28376-28378]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-12882]


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

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration


Petition for Exemption From the Federal Motor Vehicle Theft 
Prevention Standard; BMW of North America, LLC

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

ACTION: Grant of petition for exemption.

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

SUMMARY: This document grants in full the BMW of North America, LLC's 
(BMW) petition for exemption of the X2 vehicle line in accordance with 
49 CFR 543, Exemption from the Theft

[[Page 28377]]

Prevention Standard. This petition is granted because the agency has 
determined that the antitheft device to be placed on the line as 
standard equipment is likely to be as effective in reducing and 
deterring motor vehicle theft as compliance with the parts-marking 
requirements of 49 CFR 541, Federal Motor Vehicle Theft Prevention 
Standard (Theft Prevention Standard). BMW also requested confidential 
treatment for specific information in its petition. While official 
notification granting or denying its request for confidential treatment 
will be addressed by separate letter, no confidential information 
provided for purposes of this document has been disclosed.

DATES: The exemption granted by this notice is effective beginning with 
the 2018 model year (MY).

FOR FURTHER INFORMATION CONTACT: Ms. Carlita Ballard, Office of 
International Policy, Fuel Economy and Consumer Programs, National 
Highway Traffic Safety Administration, 1200 New Jersey Avenue SE., West 
Building, Room W43-439, Washington, DC 20590. Ms. Ballard's telephone 
number is (202) 366-5222. Her fax number is (202) 493-2990.

SUPPLEMENTARY INFORMATION: In a petition dated March 13, 2017, BMW 
requested an exemption from the parts-marking requirements of the Theft 
Prevention Standard for the X2 vehicle line beginning with MY 2018. The 
petition requested an exemption from parts-marking pursuant to 49 CFR 
543, Exemption from Vehicle Theft Prevention Standard, based on the 
installation of an antitheft device as standard equipment for the 
entire vehicle line.
    Under 49 CFR 543.5(a), a manufacturer may petition NHTSA to grant 
an exemption for one vehicle line per model year. In its petition, BMW 
provided a detailed description and diagram of the identity, design, 
and location of the components of the antitheft device for its X2 
vehicle line. Key features of the antitheft device will include a 
passive immobilizer, a remote control w/mechanical key, ring antenna 
(transponder coil), low frequency antenna (LF) engine control unit 
(DME/DDE) with encoded start release input, and an electronically coded 
vehicle immobilizer/car access system (EWS/CAS) control unit. BMW 
stated that its X2 vehicle line will be installed with a passive 
vehicle immobilizer device as standard equipment and that it will 
prevent the vehicle from being driven away under its own engine power. 
BMW also stated that it will not offer an audible or visible alarm 
feature on the proposed device.
    BMW's submission is considered a complete petition as required by 
49 CFR 543.7, in that it meets the general requirements contained in 
Sec.  543.5 and the specific content requirements of Sec.  543.6.
    In addressing the specific content requirements of Part 543.6, BMW 
provided information on the reliability and durability of its device. 
To ensure reliability and durability of the device, BMW stated that it 
conducted tests on the antitheft device which complied with its own 
specific standards and the device is installed on other vehicle lines 
for which the agency has granted a parts-marking exemption. BMW stated 
that its immobilizer device fulfills the requirements of European 
vehicle insurance companies. BMW further address the reliability and 
durability of its device by providing information on the uniqueness of 
its mechanical keys for the X2 vehicle line. Specifically, BMW stated 
that the vehicle's mechanical keys are unique because they require a 
special key blank, cutting machine and a unique vehicle code to allow 
for key duplication. BMW further stated that the new keys will only be 
issued to authorized persons and will incorporate special guide-way 
millings, making the locks almost impossible to pick and the keys 
impossible to duplicate on the open market.
    BMW stated that activation of its immobilizer device occurs 
automatically when the engine is shut off and the vehicle key is 
removed from the ignition lock cylinder. Specifically, BMW stated that 
its transponder sends key data to the EWS/CAS control unit. The correct 
key data must be recognized by the EWS/CAS control unit in order for 
deactivation to occur and for the vehicle to start. The transponder 
contains a chip which is integrated in the key and powered by a 
battery. The transponder also consists of a transmitter/receiver which 
communicates with the EWS/CAS control unit. The EWS/CAS control unit 
provides the interface to the loop antenna (coil), engine control unit 
and starter. The ignition and fuel supply are only released when a 
correct coded release signal has been sent by the EWS/CAS control unit 
to deactivate the device and allow the vehicle to start. When the EWS/
CAS control unit has sent a correct release signal, and after the 
initial starting value, the release signal becomes a rolling, ever-
changing, random code that is stored in the DME/DDE and EWS/CAS control 
units. The DME/DDE must identify the correct release signal to release 
the ignition signal and fuel supply.
    BMW stated that the vehicle is also equipped with a central-locking 
system that can be operated to lock and unlock all doors or to unlock 
only the driver's door, thereby preventing forced entry into the 
vehicle through the passenger doors. The vehicle can be further secured 
by locking the doors and hood using either the key lock cylinder on the 
driver's door or the remote frequency remote control. BMW stated that 
the frequency for the remote control constantly changes to prevent an 
unauthorized person from opening the vehicle by intercepting the 
signals of its remote control.
    BMW further stated that all of its vehicles are currently equipped 
with antitheft devices as standard equipment, including its X2 vehicle 
line. BMW compared the effectiveness of its antitheft device with 
devices which NHTSA has previously determined to be as effective in 
reducing and deterring motor vehicle theft as would compliance with the 
parts-marking requirements of Part 541. Specifically, BMW has installed 
its antitheft device on its X1 (MPV and passenger cars), X3, X4 and X5 
vehicle lines, as well as its Carline 1, 3, 4, 5, 6, 7, Z4, MINI and 
MINI Countryman vehicle lines, all which have been granted parts-
marking exemptions by the agency. BMW asserts that theft data have 
indicated a decline in theft rates for vehicle lines that have been 
equipped with antitheft devices similar to that which it proposes to 
install on the X2 vehicle line. BMW also stated that for MY/CY 2013, 
the agency's data show that the theft rates for its lines are: 0.34 (1-
series), 0.69 (3-series), 1.26 (5-series), 2.47 (6-series) 1.66 (7-
series), 0.24 (X1), 0.68 (X3), 2.02 (Z4), and 0.32 (MINI Cooper). Using 
an average of 3 MYs data (2011-2013), NHTSA's theft rates for BMW's 1 
series, 3 series, 5 series, 6 series, 7 series, X1, X3, Z4 and MINI 
Cooper vehicle lines are 0.4954, 0.6581, 0.9935, 2.8054, 1.4711, 
0.2356, 0.4961, 1.2843 and 0.3385 respectively, all below the median 
theft rate of 3.5826.
    Based on the supporting evidence submitted by BMW, the agency 
believes that the antitheft device for the BMW X2 vehicle line is 
likely to be as effective in reducing and deterring motor vehicle theft 
as compliance with the parts-marking requirements of the Theft 
Prevention Standard (49 CFR part 541). The agency concludes that the 
device will provide four of the five types of performance listed in 
Sec.  543.6(a)(3): Promoting activation; preventing defeat or 
circumvention of the device by unauthorized persons; preventing

[[Page 28378]]

operation of the vehicle by unauthorized entrants; and ensuring the 
reliability and durability of the device.
    Pursuant to 49 U.S.C. 33106 and 49 CFR 543.7(b), the agency grants 
a petition for exemption from the parts-marking requirements of Part 
541, either in whole or in part, if it determines that, based upon 
supporting evidence, the standard equipment antitheft device is likely 
to be as effective in reducing and deterring motor vehicle theft as 
compliance with the parts-marking requirements of Part 541. The agency 
finds that BMW has provided adequate reasons for its belief that the 
antitheft device for the X2 vehicle line is likely to be as effective 
in reducing and deterring motor vehicle theft as compliance with the 
parts-marking requirements of the Theft Prevention Standard (49 CFR 
part 541). This conclusion is based on the information BMW provided 
about its device.
    For the foregoing reasons, the agency hereby grants in full BMW's 
petition for exemption for the MY 2018 X2 vehicle line from the parts-
marking requirements of 49 CFR part 541. The agency notes that 49 CFR 
541, Appendix A-1, identifies those lines that are exempted from the 
Theft Prevention Standard for a given MY. 49 CFR part 543.7(f) contains 
publication requirements incident to the disposition of all Part 543 
petitions. Advanced listing, including the release of future product 
nameplates, the beginning model year for which the petition is granted 
and a general description of the antitheft device is necessary in order 
to notify law enforcement agencies of new vehicle lines exempted from 
the parts-marking requirements of the Theft Prevention Standard.
    If BMW decides not to use the exemption for this line, it must 
formally notify the agency. If such a decision is made, the line must 
be fully marked as required by 49 CFR parts 541.5 and 541.6 (marking of 
major component parts and replacement parts).
    NHTSA notes that if BMW wishes in the future to modify the device 
on which this exemption is based, the company may have to submit a 
petition to modify the exemption. Part 543.7(d) states that a part 543 
exemption applies only to vehicles that belong to a line exempted under 
this part and equipped with the antitheft device on which the line's 
exemption is based. Further, Sec.  543.9(c)(2) provides for the 
submission of petitions ``to modify an exemption to permit the use of 
an antitheft device similar to but differing from the one specified in 
that exemption.''
    The agency wishes to minimize the administrative burden that part 
543.9(c)(2) could place on exempted vehicle manufacturers and itself. 
The agency did not intend part 543 to require the submission of a 
modification petition for every change to the components or design of 
an antitheft device. The significance of many such changes could be de 
minimis. Therefore, NHTSA suggests that if the manufacturer 
contemplates making any changes the effects of which might be 
characterized as de minimis, it should consult the agency before 
preparing and submitting a petition to modify.

    Issued in Washington, DC, under authority delegated in 49 CFR 
part 1.95.
Raymond R. Posten,
Associate Administrator for Rulemaking.
[FR Doc. 2017-12882 Filed 6-20-17; 8:45 am]
 BILLING CODE 4910-59-P

28376 Federal Register / Vol. 82, No. 118 / Wednesday, June 21, 2017 / Notices

2011 Nissan Cube vehicle line which which the agency has already granted line prior to its introduction into the
was granted a parts-marking exemption exemptions United States commerce for sale.
by the agency on April 14, 2010 (75 FR Based on the supporting evidence If Nissan decides not to use the
19458). The agency notes that the theft submitted by Nissan, the agency exemption for this line, it must formally
rates for the Nissan Cube using an believes that the antitheft device for the notify the agency. If such a decision is
average of 3 MYs data (2012–2014), are (confidential) vehicle line is likely to be made, the line must be fully marked
0.3322, 0.6471 and 2.0373 respectively. as effective in reducing and deterring according to the requirements under 49
Nissan provided data on the motor vehicle theft as compliance with CFR parts 541.5 and 541.6 (marking of
effectiveness of the antitheft device the parts-marking requirements of the major component parts and replacement
installed on its (confidential) vehicle Theft Prevention Standard (49 CFR part parts).
line in support of the belief that its 541). The agency concludes that the NHTSA notes that if Nissan wishes in
antitheft device will be highly effective device will provide four of the five the future to modify the device on
in reducing and deterring theft. Nissan types of performance listed in which this exemption is based, the
referenced the National Insurance Crime § 543.6(a)(3): Promoting activation; company may have to submit a petition
Bureau’s data which it stated showed a preventing defeat or circumvention of to modify the exemption. Part 543.7(d)
70% reduction in theft when comparing the device by unauthorized persons; states that a Part 543 exemption applies
MY 1997 Ford Mustangs (with a preventing operation of the vehicle by only to vehicles that belong to a line
standard immobilizer) to MY 1995 Ford unauthorized entrants; and ensuring the exempted under this part and equipped
Mustangs (without an immobilizer). reliability and durability of the device. with the antitheft device on which the
Nissan also referenced the Highway Pursuant to 49 U.S.C. 33106 and 49 line’s exemption is based. Further, Part
Loss Data Institute’s data which CFR 543.7(b), the agency grants a 543.9(c)(2) provides for the submission
reported that BMW vehicles petition for exemption from the parts- of petitions ‘‘to modify an exemption to
experienced theft loss reductions marking requirements of Part 541 either permit the use of an antitheft device
resulting in a 73% decrease in relative in whole or in part, if it determines that, similar to but differing from the one
claim frequency and a 78% lower based upon substantial evidence, the specified in that exemption.’’
average loss payment per claim for standard equipment antitheft device is The agency wishes to minimize the
vehicles equipped with an immobilizer. likely to be as effective in reducing and administrative burden that Part
Additionally, Nissan stated that theft deterring motor vehicle theft as 543.9(c)(2) could place on exempted
rates for its Pathfinder vehicle compliance with the parts-marking vehicle manufacturers and itself. The
experienced reductions from model year requirements of Part 541. The agency agency did not intend in drafting Part
(MY) 2000 to 2001 with implementation finds that Nissan has provided adequate 543 to require the submission of a
of the engine immobilizer device as reasons for its belief that the antitheft modification petition for every change
standard equipment and further device for the (confidential) vehicle line to the components or design of an
significant reductions subsequent to MY is likely to be as effective in reducing antitheft device. The significance of
2001. Specifically, Nissan noted that the and deterring motor vehicle theft as many such changes could be de
agency’s theft rate data for MY’s 2001 compliance with the parts-marking minimis. Therefore, NHTSA suggests
through 2006 reported theft rates of requirements of the Theft Prevention that if the manufacturer contemplates
1.9146, 1.8011, 1.1482, 0.8102, 1.7298 Standard (49 CFR part 541). This making any changes, the effects of
and 1.3474 respectively for the Nissan conclusion is based on the information which might be characterized as de
Pathfinder. Nissan provided about its device. minimis, it should consult the agency
Nissan compared its device to other For the foregoing reasons, the agency before preparing and submitting a
similar devices previously granted hereby grants in full Nissan’s petition petition to modify.
exemptions by the agency. Specifically, for exemption for the Nissan Issued in Washington, DC, under authority
it referenced the agency’s grant of full (confidential) vehicle line from the delegated in 49 CFR part 1.95.
exemptions to General Motors parts-marking requirements of 49 CFR Raymond R. Posten,
Corporation for its Buick Riviera and part 541. The agency notes that 49 CFR Associate Administrator for Rulemaking.
Oldsmobile Aurora vehicle lines (58 FR part 541, Appendix A–1, identifies [FR Doc. 2017–12881 Filed 6–20–17; 8:45 am]
44872, August 25, 1993) and its Cadillac those lines that are exempted from the BILLING CODE 4910–59–P
Seville vehicle line (62 FR 20058, April Theft Prevention Standard for a given
24, 1997) from the parts-marking model year. 49 CFR part 543.7(f)
requirements of the theft prevention contains publication requirements DEPARTMENT OF TRANSPORTATION
standard. Nissan stated that it believes incident to the disposition of all Part
that since its device is functionally 543 petitions. Advanced listing, National Highway Traffic Safety
equivalent to other comparable including the release of future product Administration
manufacturer’s devices that have nameplates, the beginning model year
already been granted parts-marking for which the petition is granted and a Petition for Exemption From the
exemptions by the agency, along with general description of the antitheft Federal Motor Vehicle Theft Prevention
the evidence of reduced theft rates for device is necessary in order to notify Standard; BMW of North America, LLC
vehicle lines equipped with similar law enforcement agencies of new AGENCY: National Highway Traffic
asabaliauskas on DSKBBXCHB2PROD with NOTICES

devices and advanced technology of vehicle lines exempted from the parts- Safety Administration (NHTSA)
transponder electronic security, the marking requirements of the Theft Department of Transportation (DOT).
Nissan immobilizer device will have the Prevention Standard. As a condition to ACTION: Grant of petition for exemption.
potential to achieve the level of the formal granting of Nissan’s petition
effectiveness equivalent to those for exemption from the parts-marking SUMMARY: This document grants in full
vehicles already exempted by the requirements of 49 CFR part 541 for the the BMW of North America, LLC’s
agency. The agency agrees that the MY 2018 (confidential) vehicle line, the (BMW) petition for exemption of the X2
device is substantially similar to devices agency fully expects Nissan to notify the vehicle line in accordance with 49 CFR
installed on other vehicle lines for agency of the nameplate for the vehicle 543, Exemption from the Theft

VerDate Sep<11>2014 19:12 Jun 20, 2017 Jkt 241001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\21JNN1.SGM 21JNN1

28378 Federal Register / Vol. 82, No. 118 / Wednesday, June 21, 2017 / Notices

operation of the vehicle by which this exemption is based, the permits from the Department of
unauthorized entrants; and ensuring the company may have to submit a petition Transportation’s Hazardous Material
reliability and durability of the device. to modify the exemption. Part 543.7(d) Regulations (49 CFR part 107, subpart
Pursuant to 49 U.S.C. 33106 and 49 states that a part 543 exemption applies B), notice is hereby given that the Office
CFR 543.7(b), the agency grants a only to vehicles that belong to a line of Hazardous Materials Safety has
petition for exemption from the parts- exempted under this part and equipped received the application described
marking requirements of Part 541, either with the antitheft device on which the herein. Each mode of transportation for
in whole or in part, if it determines that, line’s exemption is based. Further, which a particular special permit is
based upon supporting evidence, the § 543.9(c)(2) provides for the submission requested is indicated by a number in
standard equipment antitheft device is of petitions ‘‘to modify an exemption to the ‘‘Nature of Application’’ portion of
likely to be as effective in reducing and permit the use of an antitheft device the table below as follows: 1–Motor
deterring motor vehicle theft as similar to but differing from the one vehicle, 2–Rail freight, 3–Cargo vessel,
compliance with the parts-marking specified in that exemption.’’ 4–Cargo aircraft only, 5–Passenger-
requirements of Part 541. The agency The agency wishes to minimize the carrying aircraft.
finds that BMW has provided adequate administrative burden that part
reasons for its belief that the antitheft DATES: Comments must be received on
543.9(c)(2) could place on exempted
device for the X2 vehicle line is likely or before July 21, 2017.
vehicle manufacturers and itself. The
to be as effective in reducing and agency did not intend part 543 to ADDRESS COMMENTS TO: Record Center,
deterring motor vehicle theft as require the submission of a modification Pipeline and Hazardous Materials Safety
compliance with the parts-marking petition for every change to the Administration, U.S. Department of
requirements of the Theft Prevention components or design of an antitheft Transportation, Washington, DC 20590.
Standard (49 CFR part 541). This device. The significance of many such Comments should refer to the
conclusion is based on the information changes could be de minimis. Therefore, application number and be submitted in
BMW provided about its device. NHTSA suggests that if the triplicate. If confirmation of receipt of
For the foregoing reasons, the agency manufacturer contemplates making any comments is desired, include a self-
hereby grants in full BMW’s petition for changes the effects of which might be addressed stamped postcard showing
exemption for the MY 2018 X2 vehicle characterized as de minimis, it should the special permit number.
line from the parts-marking consult the agency before preparing and
requirements of 49 CFR part 541. The FOR FURTHER INFORMATION CONTACT:
submitting a petition to modify. Ryan Paquet, Director, Office of
agency notes that 49 CFR 541, Appendix
A–1, identifies those lines that are Issued in Washington, DC, under authority Hazardous Materials Approvals and
delegated in 49 CFR part 1.95. Permits Division, Pipeline and
exempted from the Theft Prevention
Standard for a given MY. 49 CFR part Raymond R. Posten, Hazardous Materials Safety
543.7(f) contains publication Associate Administrator for Rulemaking. Administration, U.S. Department of
requirements incident to the disposition [FR Doc. 2017–12882 Filed 6–20–17; 8:45 am] Transportation, East Building, PHH–30,
of all Part 543 petitions. Advanced BILLING CODE 4910–59–P 1200 New Jersey Avenue Southeast,
listing, including the release of future Washington, DC 20590–0001, (202) 366–
product nameplates, the beginning 4535.
model year for which the petition is DEPARTMENT OF TRANSPORTATION SUPPLEMENTARY INFORMATION: Copies of
granted and a general description of the the applications are available for
antitheft device is necessary in order to Pipeline and Hazardous Materials
inspection in the Records Center, East
notify law enforcement agencies of new Safety Administration
Building, PHH–30, 1200 New Jersey
vehicle lines exempted from the parts- Avenue Southeast, Washington, DC, or
Hazardous Materials: Notice of
marking requirements of the Theft at http://regulations.gov.
Applications for Special Permits
Prevention Standard. This notice of receipt of applications
If BMW decides not to use the AGENCY: Pipeline and Hazardous for special permit is published in
exemption for this line, it must formally Materials Safety Administration accordance with Part 107 of the Federal
notify the agency. If such a decision is (PHMSA), DOT. hazardous materials transportation law
made, the line must be fully marked as ACTION: List of applications for special (49 U.S.C. 5117(b); 49 CFR 1.53(b)).
required by 49 CFR parts 541.5 and permits.
541.6 (marking of major component Issued in Washington, DC, on May 3, 2017.
parts and replacement parts). SUMMARY: In accordance with the Donald Burger,
NHTSA notes that if BMW wishes in procedures governing the application Chief, Office of the Special Permits and
the future to modify the device on for, and the processing of, special Approvals.

SPECIAL PERMITS DATA
Application Docket No. Applicant Regulation(s) affected Nature of the special permits thereof
No.

20414–N ....... ......................... Lockheed Martin Cor- 172.101(j) ............................... To authorize the transportation of low production
asabaliauskas on DSKBBXCHB2PROD with NOTICES

poration. batteries aboard cargo-only aircraft. (mode 4.)
20416–N ....... ......................... Aluminum Tank & Tank 177.834(h), 178.700(c)(1) ...... To authorize the manufacture, marking, sale and
Accessories, Inc. use of non-DOT specification metal refueling
tanks containing certain Class 3 liquids. (mode
1.)

VerDate Sep<11>2014 19:12 Jun 20, 2017 Jkt 241001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\21JNN1.SGM 21JNN1

Document Created: 2018-11-14 10:08:36
Document Modified: 2018-11-14 10:08:36

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Grant of petition for exemption.
Dates		The exemption granted by this notice is effective beginning with the 2018 model year (MY).
Contact		Ms. Carlita Ballard, Office of International Policy, Fuel Economy and Consumer Programs, National Highway Traffic Safety Administration, 1200 New Jersey Avenue SE., West Building, Room W43-439, Washington, DC 20590. Ms. Ballard's telephone number is (202) 366-5222. Her fax number is (202) 493-2990.
FR Citation		82 FR 28376

82 FR 28376 - Petition for Exemption From the Federal Motor Vehicle Theft Prevention Standard; BMW of North America, LLC

DEPARTMENT OF TRANSPORTATIONNational Highway Traffic Safety Administration

Federal Register Volume 82, Issue 118 (June 21, 2017)

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration