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for public and agency review and project was approximately 36 miles in DEPARTMENT OF TRANSPORTATION comment prior to the public hearings. length. National Highway Traffic Safety To ensure that the full range of issues The project as described in the Administration related to this proposed action are December 18, 2001 Draft Environmental identified and taken into account, Impact Statement (DEIS) was proposed [Docket No. NHTSA–2010–0069] comments and suggestions are invited to improve the regional transportation from all interested parties. Comments system in the area. ; Grant of and questions concerning the proposed Application for Temporary Exemption action should be directed to the FHWA Since the original Draft From Advanced Air Bag Requirements contact person identified above at the Environmental Impact was approved, of FMVSS No. 208 address provided above. the alternative development and screening process for the project has AGENCY: National Highway Traffic (Catalog of Federal Domestic Assistance Safety Administration (NHTSA), Program Number 20.205, Highway Planning continued through a Context Sensitive and Construction. The regulations Solution Process (CSS). This CSS Department of Transportation (DOT). implementing Executive Order 12372 process identified new alternatives to ACTION: Notice of grant of petition for regarding intergovernmental consultation on follow the general alignment of the temporary exemption from certain Federal programs and activities apply to this Orange alternative, but had been shifted provisions of Federal Motor Vehicle proposed program). at various locations based on input from Safety Standard (FMVSS) No. 208, Charles J. O’Neill, the CSS process. In addition, the Occupant Crash Protection. number and type of access points along Planning & Program Mgmt. Team Leader, SUMMARY: This notice grants the petition Nashville, TN. the route have been modified. The of Fisker Automotive Corporation [FR Doc. 2010–23527 Filed 9–20–10; 8:45 am] purpose of the SDEIS was to study and (Fisker) from certain advanced air bag BILLING CODE 4910–22–P develop the new alternatives. The No- requirements of FMVSS No. 208, for the Build and three Build Alternatives were Karma model. The basis for the proposed to be studied in the SDEIS. application is that compliance would DEPARTMENT OF TRANSPORTATION Revised traffic projections show a cause substantial economic hardship to Federal Highway Administration much lower level of traffic using the a manufacturer that has tried in good new proposed Route 475 (Knoxville faith to comply with the standard. This Notice To Rescind a Notice of Intent To Parkway) and a smaller diversion of action follows our publication in the Prepare a Supplemental Environmental traffic from Interstate 40 and Interstate Federal Register of a document Impact Statement (SEIS): Route 475 75 than was originally projected. In announcing receipt of Fisker’s petition (Knoxville Parkway), From Interstate 75 addition, the estimated cost of and soliciting public comments. South of Knoxville to Interstate 75 approximately one billion dollars was DATES: The exemption is effective North of Knoxville, Loudon, Knox, and determined to be prohibitive. immediately and remains in effect until Anderson Counties, TN September 21, 2011. To ensure that the full range of issues FOR FURTHER INFORMATION CONTACT: AGENCY: Federal Highway related to this proposed action are Administration (FHWA), DOT. identified and taken into account, Edward Glancy, Office of the Chief Counsel, NCC–112, National Highway ACTION: Notice of intent. comments and suggestions are invited from all interested parties. Comments Traffic Safety Administration, 1200 New Jersey Avenue, SE., West Building 4th SUMMARY: The Federal Highway and questions concerning the proposed Floor, Room W41–326, Washington, DC Administration (FHWA) is issuing this action should be directed to the FHWA 20590. Telephone: (202) 366–2992; Fax: notice to advise the public that the contact person identified above at the (202) 366–3820. Notice of Intent published on November address provided above. 4, 2005 to prepare a SEIS for the SUPPLEMENTARY INFORMATION: (Catalog of Federal Domestic Assistance proposed Route 475 (Knoxville Program Number 20.205, Highway Planning I. Advanced Air Bag Requirements and Parkway) from Interstate 75 south of and Construction. The regulations Small Volume Manufacturers Knoxville to Interstate 75 north of implementing Executive Order 12372 In 2000, NHTSA upgraded the Knoxville, Loudon, Knox, and Anderson regarding intergovernmental consultation on Counties, Tennessee, is being rescinded. requirements for air bags in passenger Federal programs and activities apply to this cars and light trucks, requiring what are FOR FURTHER INFORMATION CONTACT: Mr. proposed program.) commonly known as ‘‘advanced air Charles J. O’Neill, Planning and 1 Charles J. O’Neill, bags.’’ The upgrade was designed to Program Management Team Leader, meet the goals of improving protection Federal Highway Administration— Planning and Program Mgmt., Team Leader, for occupants of all sizes, belted and Nashville, TN. Tennessee Division Office, 404 BNA unbelted, in moderate-to-high-speed Drive, Suite 508, Nashville, TN 37217. [FR Doc. 2010–23525 Filed 9–20–10; 8:45 am] crashes, and of minimizing the risks 615–781–5770. BILLING CODE 4910–22–P posed by air bags to infants, children, SUPPLEMENTARY INFORMATION: The and other occupants, especially in low- FHWA, in cooperation with the speed crashes. Tennessee Department of The advanced air bag requirements Transportation, is rescinding the notice were a culmination of a comprehensive of intent to prepare a SEIS for the plan that the agency announced in 1996 proposed Route 475 (Knoxville to address the adverse effects of air bags. Parkway) from Interstate 75 south of This plan also included an extensive Knoxville to Interstate 75 north of consumer education program to Knoxville, Loudon, Knox, and Anderson Counties, Tennessee. The proposed 1 See 65 FR 30680 (May 12, 2000).

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encourage the placement of children in Vehicle manufacturers may apply for efforts to comply with the regulation, rear seats. temporary exemptions on several bases, the public interest, consistency with the The new requirements were phased in one of which is that compliance would Safety Act, generally, as well as other beginning with the 2004 model year. cause substantial economic hardship to such matters provided in the statute. Small volume manufacturers were not a manufacturer that has tried in good III. Fisker’s Petition subject to the advanced air bag faith to comply with the standard. requirements until September 1, 2006. A petitioner must provide specified Fisker submitted a petition for In recent years, NHTSA has addressed information in submitting a petition for exemption from certain requirements of a number of petitions for exemption exemption. These requirements are FMVSS No. 208, Occupant Crash from the advanced air bag requirements specified in 49 CFR 555.5, and include Protection, pursuant to 49 CFR part 555, of FMVSS No. 208. The majority of a number of items. Foremost among Temporary Exemption from Motor these requests have come from small them are that the petitioner must set Vehicle Safety and Bumper Standards. manufacturers which have petitioned on forth the basis of the application under Specifically, the petition requested an the basis of substantial economic § 555.6, and the reasons why the exemption from paragraphs S14, S15, hardship to a manufacturer that has exemption would be in the public S17, S19, S21, S23, and S25 of FMVSS tried in good faith to comply with the interest and consistent with the No. 208, which relate to the advanced standard. NHTSA has granted a number objectives of 49 U.S.C. Chapter 301. air bag requirements. However, the of these petitions, usually in situations A manufacturer is eligible to apply for petitioner stated that it will be where the manufacturer is supplying a hardship exemption if its total motor compliant with S14.5.1(b), barrier test standard air bags in lieu of advanced air vehicle production in its most recent requirements using belted 50th bags.2 In addressing these petitions, year of production did not exceed percentile adult male dummies. The NHTSA has recognized that small 10,000 vehicles, as determined by the basis of the petition was substantial manufacturers may face particular NHTSA Administrator (49 U.S.C. economic hardship to a manufacturer difficulties in acquiring or developing 30113). that has tried in good faith to comply advanced air bag systems. In determining whether a with the standard. The agency has carefully tracked manufacturer of a vehicle meets that In its petition, Fisker requested an occupant fatalities resulting from air bag criterion, NHTSA considers whether a exemption for the Karma model ‘‘for a deployment. Our data indicate that the second vehicle manufacturer also might period of one year from the date of agency’s efforts in the area of consumer be deemed the manufacturer of that NHTSA approval or until May 24, 2011, education and manufacturers’ providing vehicle. The statutory provisions by which time Fisker will be able to depowered air bags were successful in governing motor vehicle safety (49 fully comply with the requirements of reducing air bag fatalities even before U.S.C. Chapter 301) do not state that a Federal Motor Vehicle Safety Standard advanced air bag requirements were manufacturer has substantial 208.’’ In a submission dated July 30, implemented. responsibility as manufacturer of a 2010, Fisker 4 stated that due to delays As always, we are concerned about vehicle simply because it owns or in vehicle availability for air bag system the potential safety implication of any controls a second manufacturer that development and testing, it was temporary exemption granted by this assembled that vehicle. However, the requesting that the exemption be for ‘‘a agency. In the present case, we are agency considers the statutory period of one year from the date of ‘‘ ’’ addressing a petition for a temporary definition of manufacturer (49 U.S.C. NHTSA approval, by which time Fisker exemption from the advanced air bag 30102) to be sufficiently broad to will be able to fully comply with the requirements submitted by a include sponsors, depending on the requirements of Federal Motor Vehicle circumstances. Thus, NHTSA has stated manufacturer of a plug-in hybrid Safety Standard 208.’’ that a manufacturer may be deemed to electric car. The basis of the petition According to the petition, Fisker is a be a sponsor and thus a manufacturer of was substantial economic hardship to a privately held company incorporated in a vehicle assembled by a second manufacturer that has tried in good faith the State of , with headquarters manufacturer if the first manufacturer to comply with the standard. in . Its total motor vehicle had a substantial role in the production during the 12 months II. Statutory Basis for Requested Part development and manufacturing preceding the filing of the petition was 555 Exemption process of that vehicle. 0 vehicles. We note that Fisker Finally, while 49 U.S.C. 30113(b) The National Traffic and Motor Automotive was established in states that exemptions from a Safety Act Vehicle Safety Act, codified as 49 U.S.C. September 2007 as a joint venture of standard are to be granted on a Chapter 301, provides the Secretary of , LLC and Quantum ‘‘temporary basis,’’ 3 the statute also Transportation authority to exempt, on Fuel System Technologies Worldwide, expressly provides for renewal of an a temporary basis and under specified Inc. circumstances, motor vehicles from a exemption on reapplication. The petitioner stated that the Fisker motor vehicle safety standard or bumper Manufacturers are nevertheless Karma is a completely new passenger standard. This authority is set forth at cautioned that the agency’s decision to car model. Design and development of 49 U.S.C. 30113. The Secretary has grant an initial petition in no way the Karma began in late 2007. The delegated the authority for this section predetermines that the agency will Karma is being designed and developed to NHTSA. repeatedly grant renewal petitions, to meet all applicable FMVSS and EEC NHTSA established part 555, thereby imparting semi-permanent regulations, including the installation of Temporary Exemption from Motor exemption from a safety standard. eight air bags on the coupe version and Vehicle Safety and Bumper Standards, Exempted manufacturers seeking six air bags on the version. to implement the statutory provisions renewal must bear in mind that the Fisker stated the air bag system is being concerning temporary exemptions. agency is directed to consider financial developed through cooperation with hardship as but one factor, along with 2 See, e.g., grant of petition to , 72 FR 28759 the manufacturer’s on-going good faith 4 The July 30. 2010 submission was submitted on (May 22, 2007), or grant of petition to Koenigsegg, behalf of Fisker by Global Vehicle Services 72 FR 17608 (April 9, 2007). 3 49 U.S.C. 30113(b)(1). Corporation.

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Takata, Tass, and Bosch, which have V. Agency Analysis and Decision statutory 10,000 vehicle limit by been granted contracts to complete the In this section we provide our engaging in joint ventures with small development of the air bag systems. The companies and having the small analysis and decision regarding Fisker’s 6 petitioner stated that these companies temporary exemption request company submit the petition. Valmet is a company which is known were retained in 2008/2009 and are concerning advanced air bag as a contract manufacturer of specialty continuing the efforts to develop an air requirements of FMVSS No. 208. cars. Among other things, it has bag system that is fully compliant with As discussed below, we are granting manufactured the Boxster and Cayman the requirements of FMVSS No. 208. Fisker’s petition for the Karma to be Fisker stated that it subcontracted the for Porsche. exempted, for a period of one year, from advanced air bag system development to Fisker introduced the Karma in S14 (apart from S14.5.1(b)), S15, S17, experienced outside companies, and January 2008 at the North American S19, S21, S23, and S25 of FMVSS No. that the air bag development costs International Auto Show in Detroit. In 208. In addition to certifying represent a very significant expenditure July 2008, Valmet issued a press release compliance with the belted 50th to the company. It provided information titled ‘‘ announces a percentile adult male dummy barrier to show that its costs total $7,714,857. Letter of Intent for an Assembly impact requirements in S14.5.1(b), Fisker stated that without a temporary Contract with Fisker Automotive.’’ The Fisker must certify to the unbelted 50th exemption, which would enable the press release indicated that Valmet was percentile adult male dummy barrier company to generate funds through the chosen as the engineering and impact test requirement that applied sale of vehicles, it may not be able to manufacturing supplier for Fisker after prior to September 1, 2006 (S5.1.2(a)). sustain the air bag and vehicle an extensive global search. In November For purposes of this exemption, the development programs, causing 2008, Valmet issued a press release unbelted sled test in S13 is an substantial economic hardship to the titled ‘‘Valmet Automotive and Fisker acceptable option for that requirement. company. Automotive have signed the cooperation The petitioner stated that if the a. Issues Related to Eligibility agreement.’’ exemption petition is approved, the As noted above, Fisker stated in its As discussed above, a manufacturer is Karma models sold under the petition that the Karma is a completely eligible to apply for an economic exemption will be compliant with all new passenger car model. According to hardship exemption if its total motor FMVSSs, with the exception of certain the petitioner, the chassis, body, and vehicle production in its most recent sections of FMVSS No. 208. Fisker powertrain are being designed and year of production did not exceed stated that the coupe version will be developed by Fisker with assistance 10,000 vehicles, as determined by the equipped with eight functional air bags from a large number of suppliers, which NHTSA Administrator (49 U.S.C. (front, side, knee and curtain air bags), include EDAG, , 30113). Moreover, in determining and the convertible version will be Quantum Technologies, TRW, Tass, whether a manufacturer of a vehicle equipped with six functional air bags Lear, , Rousch, Global Vehicle meets that criterion, NHTSA considers (front, side and knee air bags). Both Services, , ESG, and whether a second vehicle manufacturer versions will include seat belts with Takata Holdings. also might be deemed the manufacturer pretensioners and load limiters. Also, Based on the available information, of that vehicle. according to the petitioner, both models we believe that Valmet’s role with the While Fisker developed the Karma, will be compliant with the 50th Karma is primarily that of an assembly the vehicle will be assembled in percentile adult male dummy unbelted contractor, i.e., Valmet did not play a by Valmet Automotive (Valmet). The test requirements contained in section significant role in the development of petitioner can be considered a 13 of the standard. the vehicle at issue. We also note that, Fisker argued that sales of the Karma manufacturer of the Karma as a as indicated above, the petitioner stated ‘‘ ’’ are in the public interest. It stated that sponsor, even though the vehicle will that the Karma is a completely new the Karma ‘‘is leading the way towards be assembled by Valmet. passenger car model. the introduction of advanced low- In considering the issue of eligibility Given the above, we believe Fisker emission vehicle technologies to the US in the present situation, Fisker does not should be considered eligible to apply and world markets.’’ Fisker stated that currently manufacture any vehicles. for an economic hardship exemption the Karma will be the first plug-in Therefore, there is no issue as to without regard to the circumstances of hybrid passenger car available for whether it manufactures vehicles other Valmet. While Valmet is also considered purchase by the general public. It also than the Karma. a manufacturer of the Karma by virtue cited benefits of employment We next consider whether persons of assembling it, the role of an assembly opportunities. other than Fisker can be considered to contractor is a relatively limited one in manufacture the Karma. The answer is the overall production of a vehicle. We IV. Notice of Receipt yes. Valmet will be a manufacturer of believe that this particular situation On June 2, 2010 we published in the the Karma by virtue of assembling it. does not raise concerns along the lines Federal Register (75 FR 30900) a notice See 49 U.S.C. 30102(a)(5). of a large manufacturer potentially of receipt of Fisker’s petition for Given that both Fisker and Valmet can avoiding the statutory 10,000 vehicle temporary exemption, and provided an be considered manufacturers of the limit by engaging in a joint venture with opportunity for public comment. We Karma, there are a number of potential a small company and having the small did not receive any substantive issues concerning how the agency company submit the petition. comments.5 should analyze the petition, e.g., It is not necessary in responding to whether to consider one or both this petition to resolve all potential 5 submitted a comment noting that the companies with respect to the 10,000 issues related to eligibility that may petition from Fisker was not posted in the docket vehicle limitation for eligibility, arise in a situation where more than one until late in the comment period, and requested a hardship, good faith efforts, etc. We ‘‘nominal amount of time (<10 business days)’’ to company can be considered a fully consider the petition and finalize comments. note, for example, that we have in the However, Chrysler did not subsequently submit a past cited the possible situation of large 6 See grant of petition to Tesla Motors, Inc., 73 FR substantive comment. manufacturers potentially avoiding the 4944, 4948 (Jan. 28, 2008).

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manufacturer of a vehicle that is the bag system that is fully compliant with development of fuel-efficient and subject of an economic hardship the requirements of FMVSS No. 208. alternative-energy vehicles, and exemption. We will address these issues Fisker stated that it subcontracted the providing additional employment as necessary in the context of a specific advanced air bag system development to opportunities. We believe that all three petition or contemplated manufacturer experienced outside companies, and of these public interest considerations relationship that is brought before us. that the air bag development costs would be served by granting Fisker’s represent a very significant expenditure petition. b. Economic Hardship to the company. It provided information We note that on April 23, 2010, the As noted earlier, Fisker stated that it to show that its costs total $7,714,857. Department of Energy (DOE) issued a subcontracted the advanced air bag Fisker stated that without a temporary press release announcing the closing of system development to experienced exemption, which would enable the a $529 million loan to Fisker for the outside companies, and that the air bag company to generate funds through the development and production of two development costs represent a very sale of vehicles, it may not be able to lines of plug-in hybrid electric vehicles significant expenditure to the company. sustain the air bag and vehicle (PHEV). DOE stated that ‘‘the loan will It provided information to show that its development programs, causing support the Karma, a full-size, four-door costs total $7,714,857. Fisker stated that substantial financial economic hardship sports , and a line of family without a temporary exemption, which to the company. oriented models being developed under would enable the company to generate After reviewing Fisker’s petition, we the company’s Project NINA program.’’ funds through the sale of vehicles, it believe that company has made good DOE stated that Fisker expects to may not be able to sustain the air bag faith efforts to comply with the manufacture the Karma and Project and vehicle development programs, advanced air bag requirements. Fisker is NINA lines at a recently shuttered causing substantial financial economic a new company, and the Karma is a General Motors (GM) factory in hardship to the company. completely new passenger car model. Wilmington, Delaware, and that the While the company is designing and company anticipates that it will employ Fisker estimated that if the exemption developing the Karma to comply with 2,000 American assembly workers. is approved, it would have net income all of the FMVSSs, it is requesting a one- Industry experts expect that domestic (loss) of $ (21,724,141) in 2011 and net year exemption from the advanced air parts suppliers and service providers income of $ 188,768,234 in 2012. The bag requirements to enable it to begin also will increase employment petitioner estimated that without the manufacturing and selling vehicles substantially. exemption, it would have net income while it completes the design and According to the DOE press release: (loss) of $ (50,592,209) in 2011 and net development programs necessary to • Fisker’s plug-in hybrid products income (loss) of $ (132,268,961) in 2012. meet the advanced air bag requirements. will be among the first to market and After reviewing the financial and We note that Fisker has contracts in will help to accelerate the introduction other information provided by Fisker, place for this development. of fuel-saving electrified vehicles in the we believe that company has shown We also note that Fisker has made U.S. substantial economic hardship. Without significant financial investments in the • Initially, Fisker will use the the exemption, Fisker will not be able Karma, including the occupant proceeds of the loan for qualifying to begin manufacturing and selling the protection system. Fisker stated if the engineering integration costs as it works Karma during the one-year period it exemption petition is approved, the with primarily U.S. suppliers to needs to complete the design and Karma models sold under the incorporate components into the development programs necessary to exemption will be compliant with all Karma’s design. The engineering meet the advanced air bag requirements. FMVSSs with the exception of the integration work will be conducted in Moreover, the company does not have advanced air bag provisions. The coupe Irvine, California, where engineers will any other models to sell. Considering version will be equipped with eight design tools and equipment and develop the overall circumstances of the functional air bags (front, side, knee and manufacturing processes. The Karma is company, the financial impacts would curtain air bags). The convertible scheduled to appear in showrooms in represent substantial economic version will be equipped with six late 2010. The second stage will involve hardship. functional air bags (front, side and knee the purchase and retooling of the former c. Good Faith Efforts To Comply air bags). Both versions will include seat GM plant to manufacture the Project belts with pretensioners and load NINA line of PHEVs, which is expected As noted earlier, the petitioner stated limiters. According to the petitioner, to begin rolling off the assembly line in that the is a completely both models with be compliant with the late 2012. new passenger car model. Design and 50th percentile male unbelted test • Fisker automobiles are driven by development of the Karma began in late requirements contained in S13 of electric motors that get their power from 2007. The Karma is being designed and FMVSS No. 208. a rechargeable Lithium-ion battery, or, developed to meet all applicable In sum, we believe that considering when that is depleted, by a generator FMVSSs and European Economic Fisker’s overall situation, the efforts that driven by an efficient gas-powered Community (EEC) regulations, including company has made to date, the plans it engine. The Karma and Project NINA the installation of eight air bags on the has in place, and the fact that it intends models will have an all-electric, coupe version and six air bags on the to fully comply with the advanced air tailpipe-emission-free range of 40 to 50 convertible version. Fisker stated the air bag requirements within one year, miles on a full charge, more than most bag system is being developed through Fisker has made good faith efforts to Americans drive each day. The battery cooperation with Takata, Tass, and comply with those requirements. can be charged at home overnight. Using Bosch, which have been granted gas and electric power, Fisker plug-in contracts to complete the development d. Public Interest Considerations hybrids are expected to have a cruising of the air bag systems. The petitioner NHTSA has traditionally found that range of up to 300 miles. stated that these companies were the public interest is served by affording While some of the items discussed in retained in 2008/2009 and are consumers a wider variety of motor the DOE press release are longer-term, continuing the efforts to develop an air vehicles, by encouraging the the granting of Fisker’s petition will

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enable it to begin the manufacture and pursuant to NHTSA Exemption No. The exemption is for the Karma and sale of the Karma earlier than it could lllll.’’ This label notifies shall remain in effect for one year as otherwise. This will provide additional prospective purchasers about the indicated in the DATES section of this consumer choice in selecting a motor exemption and its subject. Under document. vehicle, encourage the development of § 555.9(c), this information must also be (49 U.S.C. 30113; delegations of authority fuel-efficient and alternative-energy included on the vehicle’s certification at 49 CFR 1.50. and 501.8) vehicles, and provide additional label. Issued on: September 15, 2010. employment opportunities. It will also The text of § 555.9 does not expressly enable Fisker to generate funds through indicate how the required statement on David L. Strickland, the sale of vehicles, which will help it the two labels should read in situations Administrator. sustain vehicle development plans, where an exemption covers part but not [FR Doc. 2010–23472 Filed 9–20–10; 8:45 am] including meeting the advanced air bag all of a FMVSS. In this case, we believe BILLING CODE 4910–59–P requirements. that a statement that the vehicle has We have also considered safety issues been exempted from Standard No. 208 related to the exemption requested by generally, without an indication that the DEPARTMENT OF TRANSPORTATION Fisker. With respect to transporting exemption is limited to the specified children, Fisker noted that the Karma is advanced air bag provisions, could be Surface Transportation Board equipped with two rear seats. Each rear misleading. A consumer might [STB Docket No. CU 159] seat is equipped with a child seat incorrectly believe that the vehicle has LATCH system.7 Fisker stated that child been exempted from all of Standard No. Indexing the Annual Operating seats may be safely placed in these rear 208’s requirements. Moreover, we Revenues of Railroads seat positions. The Karma will also have believe that the addition of a reference The Surface Transportation Board ‘‘ to such provisions by number without the permanently affixed sun visor air (STB) is publishing the annual inflation- bag warning label’’ and a removable an indication of its subject matter would adjusted index factors for 2009. These ‘‘warning label on the dashboard’’ that be of little use to consumers, since they factors are used by the railroads to NHTSA developed/requires for vehicles would not know the subject of those adjust their gross annual operating without advanced air bags. Thus, specific provisions. For these reasons, revenues for classification purposes. parents and others will be able to we believe the two labels should read in This indexing methodology insures that transport children in the rear seats of relevant part, ‘‘except for S14 (apart railroads are classified based on real the Karma without exposing them to the from S14.5.1(b)), S15, S17, S19, S21, business expansion and not from the risks of air bags, and the vehicles will S23, and S25 (Advanced Air Bag affects of inflation. Classification is have warning labels concerning the Requirements) of Standard No. 208, important because it determines the risks of air bags. This helps minimize Occupant Crash Protection, exempted extent to which individual railroads any safety disbenefits of the vehicle not pursuant to * * *.’’ We note that the must comply with STB reporting meeting requirements for advanced air phrase ‘‘Advanced Air Bag Requirements’’ is an abbreviated form of requirements. bags. The STB’s annual inflation-adjusted We also note again that the coupe the title of S14 of Standard No. 208. We factors are based on the annual average version of the Karma will be equipped believe it is reasonable to interpret Railroad’s Freight Price Index which is with eight functional air bags (front, § 555.9 as requiring this language. developed by the Bureau of Labor side, knee and curtain air bags). The e. Decision Statistics (BLS). The STB’s deflator convertible version will be equipped factor is used to deflate revenues for with six functional air bags (front, side In consideration of the foregoing, we comparison with established revenue and knee air bags). Both versions will conclude that compliance with the thresholds. include seat belts with pretensioners advanced air bag requirements of FMVSS No. 208, Occupant Crash The base year for railroads is 1991. and load limiters. The inflation index factors are presented Given the relatively small number of Protection, would cause substantial as follows: vehicles that will be produced during economic hardship to a manufacturer the one-year exemption and the above that has tried in good faith to comply STB RAILROAD INFLATION-ADJUSTED discussion, we believe that the with the standard. We further conclude INDEX AND DEFLATOR FACTOR TABLE requested exemption would have a that granting of an exemption would be in the public interest and consistent negligible effect on motor vehicle safety. Year Index Deflator We note that, as explained below, with the objectives of traffic safety. In accordance with 49 U.S.C. prospective purchasers will be notified 1991 ...... 409.50 1100.00 that the vehicle is exempted from the 30113(b)(3)(B)(i), Fisker is granted 1992 ...... 411.80 99.45 specified advanced air bag requirements NHTSA Temporary Exemption No. EX 1993 ...... 415.50 98.55 of Standard No. 208. Under § 555.9(b), 10–01, from S14 (apart from S14.5.1(b)), 1994 ...... 418.80 97.70 a manufacturer of an exempted S15, S17, S19, S21, S23, and S25 of 1995 ...... 418.17 97.85 passenger car must affix securely to the FMVSS No. 208. In addition to 1996 ...... 417.46 98.02 windshield or side window of each certifying compliance with the belted 1997 ...... 419.67 97.50 50th percentile adult male dummy 1998 ...... 424.54 96.38 exempted vehicle a label containing a 1999 ...... 423.01 96.72 statement that the vehicle conforms to barrier impact requirements in S14.5.1(b), Fisker must certify to the all applicable FMVSSs in effect on the 1 Montana Rail Link, Inc., and Wisconsin Central date of manufacture ‘‘except for unbelted 50th percentile adult male Ltd., Joint Petition For Rulemaking With Respect To Standard Nos. [listing the standards by dummy barrier impact test requirement 49 CFR Part 1201, 8 I.C.C. 2d 625 (1992) raised the number and title for which an that applied prior to September 1, 2006 revenue classification level for Class I railroads (S5.1.2(a)). For purposes of this from $50 million (1978 dollars) to $250 million exemption has been granted] exempted (1991 dollars), effective for the reporting year exemption, the unbelted sled test in S13 beginning January 1, 1992. The Class II threshold 7 Lower Anchors and Tethers for Children is an acceptable option for that was also raised from $10 million (1978 dollars) to (LATCH) Restraint System. requirement. $20 million (1991 dollars).

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