[Federal Register: June 5, 2002 (Volume 67, Number 108)]
[Rules and Regulations]               
[Page 38703-38749]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05jn02-9]                         


[[Page 38703]]

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Part II





Department of Transportation





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National Highway and Traffic Safety Administration



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49 CFR Parts 571 and 590



Federal Motor Vehicle Safety Standards; Tire Pressure Monitoring 
Systems; Controls and Displays; Final Rule


[[Page 38704]]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Parts 571 and 590

[Docket No. NHTSA 2000-8572]
RIN 2127-AI33

 
Federal Motor Vehicle Safety Standards; Tire Pressure Monitoring 
Systems; Controls and Displays

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

ACTION: Final rule.

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SUMMARY: In response to a mandate in the Transportation Recall 
Enhancement, Accountability, and Documentation (TREAD) Act of 2000, 
this agency is issuing a two-part final rule.
    The first part is contained in this document. It establishes a new 
Federal Motor Vehicle Safety Standard that requires the installation of 
tire pressure monitoring systems (TPMSs) that warn the driver when a 
tire is significantly under-inflated. The standard applies to passenger 
cars, trucks, multipurpose passenger vehicles, and buses with a gross 
vehicle weight rating of 10,000 pounds or less, except those vehicles 
with dual wheels on an axle.
    This document establishes two compliance options for the short-
term, for the period between November 1, 2003, and October 31, 2006. 
Under the first compliance option, a vehicle's TPMS must warn the 
driver when the pressure in any single tire or in each tire in any 
combination of tires, up to a total of four tires, has fallen to 25 
percent or more below the vehicle manufacturer's recommended cold 
inflation pressure for the tires, or a minimum level of pressure 
specified in the standard, whichever pressure is higher. Under the 
second compliance option, a vehicle's TPMS must warn the driver when 
the pressure in any single tire has fallen to 30 percent or more below 
the vehicle manufacturer's recommended cold inflation pressure for the 
tires, or a minimum level of pressure specified in the standard, 
whichever pressure is higher. Compliance with the options would be 
phased in during that period by increasing percentages of production.
    The second part of this final rule will be issued by March 1, 2005, 
and will establish performance requirements for the long-term, i.e., 
for the period beginning on November 1, 2006. In the meantime, the 
agency will leave the rulemaking docket open for the submission of new 
data and analyses concerning the performance of TPMSs. The agency also 
will conduct a study comparing the tire pressures of vehicles without 
any TPMS to the pressures of vehicles with TPMSs, especially TPMSs that 
do not comply with the four-tire, 25 percent compliance option.
    Based on the record now before the agency, NHTSA tentatively 
believes that the four-tire, 25 percent option would best meet the 
mandate in the TREAD Act. However, it is possible that the agency may 
obtain or receive new information that is sufficient to justify a 
continuation of the options established by this first part of this 
rule, or the adoption of some other alternative.

DATES: This final rule is effective August 5, 2002. Under the rule, 
vehicles will be required to comply with the requirements of the 
standard according to a phase-in beginning on November 1, 2003. If you 
wish to submit a petition for reconsideration of this rule, your 
petition must be received by July 22, 2002.

ADDRESSES: Petitions for reconsideration should refer to the docket 
number and be submitted to: Administrator, Room 5220, National Highway 
Traffic Safety Administration, 400 Seventh Street, SW, Washington, DC 
20590.

FOR FURTHER INFORMATION CONTACT: For technical and other non-legal 
issues, you may call Mr. George Soodoo or Mr. Joseph Scott, Office of 
Crash Avoidance Standards (Telephone: 202-366-2720) (Fax: 202-366-
4329).
    For legal issues, you may call Mr. Dion Casey, Office of Chief 
Counsel (Telephone: 202-366-2992) (Fax: 202-366-3820).
    You may send mail to these officials at National Highway Traffic 
Safety Administration, 400 Seventh Street, SW, Washington, DC 20590.
    You may call Docket Management at 202-366-9324. You may visit the 
Docket on the plaza level at 400 Seventh Street, SW, Washington, DC, 
from 10:00 a.m. to 5:00 p.m., Monday through Friday.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Executive Summary
    A. Highlights of the Notice of Proposed Rulemaking
    B. Highlights of the Preliminary Determination About the Final 
Rule
    C. OMB Return Letter
    D. Highlights of the Final Rule
    1. Part One--Phase-in (November 2003 through October 2006)
    2. Part Two--November 2006 and Thereafter
    E. Summary Comparison of the Preliminary Determination and the 
Final Rule
II. Background
    A. The Transportation Recall Enhancement, Accountability, and 
Documentation Act
    B. Previous Rulemaking on Tire Pressure Monitoring Systems
    C. Summary of the Notice of Proposed Rulemaking
    D. Summary of Public Comments on Notice
    1. Vehicles Covered
    2. Phase-In Options and Long-Term Requirements
    a. Definition of ``Significantly Under-Inflated''
    b. Number of Tires Monitored
    3. Lead Time
    4. Reliability
    5. Costs and Benefits Estimates
    E. Submission of Draft Final Rule to OMB
    F. OMB Return Letter
    G. Public Comments on OMB's Return Letter
    H. Congressional Hearing
III. Safety Problem
    A. Infrequent Driver Monitoring of Tire Pressure
    B. Loss of Tire Pressure Due to Natural and Other Causes
    C. Percentage of Motor Vehicles with Under-Inflated Tires
    D. Consequences of Under-Inflation of Tires
    1. Reduced Vehicle Safety--Tire Failures and Increases in 
Stopping Distance
    2. Reduced Tread Life
    3. Reduced Fuel Economy
IV. Tire Pressure Monitoring Systems
    A. Indirect TPMSs
    B. Direct TPMSs
    C. Hybrid TPMSs
V. Summary of Preliminary Determination About the Final Rule
    A. Alternative Long-Term Requirements Analyzed in Making 
Preliminary Determination
    B. Phase-In and Long-Term Requirements
VI. Response to Issues Raised in OMB Return Letter About Preliminary 
Determination
    A. Criteria for Selecting the Long-Term Requirement
    1. Tire Safety and Overall Vehicle Safety
    2. Statutory Mandate
    B. Relative Ability of Direct and Current Indirect TPMSs to 
Detect Under-Inflation
    C. Analysis of a Fourth Alternative Long-Term Requirement: One-
Tire, 30 Percent Under-Inflation Detection
    D. Impact of One-Tire, 30 Percent Alternative on Installation 
Rate of ABS
    E. Overall Safety Effects of ABS
    F. Technical Foundation for NHTSA's Safety Benefit Analyses
VII. The Final Rule
    A. Decision to Issue Two-Part Final Rule
    B. Part One of the Final Rule--November 2003 through October 
2006
    1. Summary
    2. Congressional Intent
    3. Vehicles Covered
    4. Phase-In Options and Requirements
    a. Alternatives Considered
    i. Threshold Level of Under-Inflation
    ii. Number of Tires Monitored
    b. Option One: Four Tires, 25 Percent Under-Inflation
    c. Option Two: One Tire, 30 Percent Under-Inflation

[[Page 38705]]

    d. Special Written Instructions for Option Two TPMSs
    5. Other Requirements
    a. Time Frame for Telltale Illumination
    b. Duration of Warning
    c. Temporary Disablement
    d. System Calibration
    e. Replacement Tires
    f. Monitoring of Spare Tire
    g. Temperature Compensation
    h. Low Tire Pressure Warning Telltale
    i. Color
    ii. Symbol
    iii. Self-Check
    i. General Written Instructions for All TPMSs
    j. Test Conditions
    k. Test Procedures
    6. Lead Time
    C. Study of Effects of TPMSs That Do Not Meet a Four-Tire, 25 
Percent Under-Inflation Requirement
    1. Effect on Tire Pressure
    2. Effect on Number of Significantly Under-Inflated Tires
    D. Part Two of the Final Rule--November 2006 and Thereafter
VIII. Benefits
    A. Tire Safety Benefits
    1. Skidding/Loss of Control
    2. Stopping Distance
    3. Flat Tires and Blowouts
    4. Unquantified Benefits
    B. Non-Tire Safety Benefits
    C. Total Quantified Safety Benefits
    D. Economic Benefits
    1. Fuel Economy
    2. Tread Life
IX. Costs
    A. Indirect TPMSs
    B. Direct TPMSs
    C. Hybrid TPMSs
    D. Vehicle Cost
    E. Maintenance Costs
    F. Testing Costs
    G. Unquantified Costs
    H. ABS Costs
    I. Net Costs and Costs Per Equivalent Life Saved
X. Rulemaking Analyses and Notices

I. Executive Summary

A. Highlights of the Notice of Proposed Rulemaking

    NHTSA initiated this rulemaking with the publication of a Notice of 
Proposed Rulemaking (NPRM)(66 FR 38982, Docket No. NHTSA-2000-8572) on 
July 26, 2001. The NPRM proposed to require passenger cars, light 
trucks, multipurpose passenger vehicles, and buses with a gross vehicle 
weight rating of 10,000 pounds or less, except those vehicles with dual 
wheels on an axle, to be equipped with a tire pressure monitoring 
system (TPMS).
    The agency sought comment on two alternative sets of performance 
requirements for TPMSs and proposed adopting one of them in the final 
rule. The first alternative would have required that the driver be 
warned when the pressure in any single tire or in each tire in any 
combination of tires, up to a total of four tires, had fallen to 20 
percent or more below the vehicle manufacturer's recommended cold 
inflation pressure for the vehicle's tires (the placard pressure), or a 
minimum level of pressure specified in the standard, whichever was 
higher. (This alternative is referred to below as the four-tire, 20 
percent alternative.) The second alternative would have required that 
the driver be warned when the pressure in any single tire or in each 
tire in any combination of tires, up to a total of three tires, had 
fallen to 25 percent or more below the placard pressure, or a minimum 
level of pressure specified in the standard, whichever was higher. 
(This alternative is referred to below as the three-tire, 25 percent 
alternative.) The minimum levels of pressure were the same in both 
proposed alternatives. The adoption of four-tire, 20 percent 
alternative would have required that drivers be warned of under-
inflation sooner and in a greater array of circumstances. It would also 
have narrowed the range of technologies that manufacturers could use to 
comply with the new standard.
    There are two types of TPMSs currently available, direct TPMSs and 
indirect TPMSs. Direct TPMSs have a tire pressure sensor in each tire. 
The sensors transmit pressure information to a receiver. Indirect TPMSs 
do not have tire pressure sensors. Current indirect TPMSs rely on the 
wheel speed sensors in an anti-lock braking system (ABS) to detect and 
compare differences in the rotational speed of a vehicle's wheels. 
Those differences correlate to differences in tire pressure because 
decreases in tire pressure cause decreases in tire diameter that, in 
turn, cause increases in wheel speed.
    To meet the four-tire, 20 percent alternative, vehicle 
manufacturers likely would have had to use direct TPMSs because even 
improved indirect systems would not likely be able to detect loss of 
pressure until pressure has fallen 25 percent and could not detect all 
combinations of significantly under-inflated tires. To meet the three-
tire, 25 percent alternative, vehicle manufacturers would have been 
able to install either direct TPMSs or improved indirect TPMSs, but not 
current indirect TPMSs.

B. Highlights of the Preliminary Determination About the Final Rule

    NHTSA preliminarily determined to issue a final rule that would 
have specified a four-year phase-in schedule\1\ and allowed compliance 
with either of two options during the phase-in, i.e., between November 
1, 2003 and October 31, 2006. Under the first option, a vehicle's TPMS 
would have had to warn the driver when the pressure in one or more of 
the vehicle's tires, up to a total of four tires, was 25 percent or 
more below the placard pressure, or a minimum level of pressure 
specified in the standard, whichever pressure was higher. (This option 
is referred to below as the four-tire, 25 percent option.) Under the 
second option, a vehicle's TPMS would have had to warn the driver when 
the pressure in any one of the vehicle's tires was 30 percent or more 
below the placard pressure, or a minimum level of pressure specified in 
the standard, whichever pressure was higher. (This option is referred 
to below as the one-tire, 30 percent option.) The minimum levels of 
pressure specified in the standard were the same for both compliance 
options.
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    \1\ The phase-in schedule was as follows: 10 percent of a 
manufacturer's affected vehicles would have had to comply with 
either compliance option in the first year; 35 percent in the second 
year; and 65 percent in the third year. In the fourth year, 100 
percent of a manufacturer's affected vehicles would have had to 
comply with the long-term requirements, i.e., the four-tire, 25 
percent compliance option.
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    After the phase-in, i.e., after October 31, 2006, the second option 
would have been terminated, and the provisions of the first option 
would have become mandatory for all new vehicles. Thus, all vehicles 
would have been required to meet a four-tire, 25 percent requirement.

C. OMB Return Letter

    After reviewing the draft final rule, OMB returned it to NHTSA for 
reconsideration, with a letter explaining its reasons for doing so, on 
February 12, 2002. In the letter, OMB stated its belief that the draft 
final rule and accompanying regulatory impact analysis did not 
adequately demonstrate that the agency had selected the best available 
method of improving overall vehicle safety.

D. Highlights of the Final Rule

    In response to the OMB return letter, the agency has decided to 
divide the final rule into two parts. The first part is contained in 
this document, which establishes requirements for vehicles manufactured 
during the first three years, i.e., between November 1, 2003, and 
October 31, 2006, and phases them in by increasing percentages of 
production. The second part will establish requirements for vehicles 
manufactured on or after November 1, 2006.
    The agency has divided the final rule into two parts because it has 
decided to

[[Page 38706]]

defer its decision as to which long-term performance requirements for 
TPMS would best satisfy the mandate of the TREAD Act. This deferral 
will allow the agency's consideration of additional data on the effect 
and performance of TPMSs. From the beginning, the agency has sought to 
comply with the mandate and safety goals of the TREAD Act in a way that 
encourages innovation and allows a range of technologies to the extent 
consistent with providing drivers with sufficient warning of low tire 
pressure under a broad variety of the reasonably foreseeable 
circumstances in which tires become under-inflated.
1. Part One--Phase-in (November 2003 through October 2006)
    NHTSA has decided to require vehicle manufacturers to equip their 
light vehicles (i.e., those with a gross vehicle weight rating (GVWR) 
of 10,000 lbs. or less) with TPMSs and to give them the option for 
complying with either of two sets of performance requirements during 
the period covered by the first part of the final rule, i.e., from 
November 1, 2003 to October 31, 2006. The options are the same as those 
in the preliminary determination about the final rule.
    Under the first set or compliance option, the vehicle's TPMS will 
be required to warn the driver when the pressure in any single tire or 
in each tire in any combination of tires, up to a total of four tires, 
is 25 percent or more below the vehicle manufacturer's recommended cold 
inflation pressure for the tires, or a minimum level of pressure 
specified in the standard, whichever pressure is higher. Under the 
second compliance option, the vehicle's TPMS will be required to warn 
the driver when the pressure in any single tire is 30 percent or more 
below the vehicle manufacturer's recommended cold inflation pressure 
for the tires, or a minimum level of pressure specified in the 
standard, whichever pressure is higher.\2\
    The two compliance options are outgrowths of the alternative sets 
of requirements proposed in the NPRM. In response to comments 
confirming that current indirect TPMSs cannot meet the proposed three-
tire, 25 percent under-inflation requirements, and in order to allow 
those systems to be used during the phase-in, the agency is adopting 
requirements for detection of one-tire, 30 percent under-inflation as 
the first option. For the second option, the agency is adopting 
requirements for detection of 4-tire, 25 percent under-inflation. 
Adopting those requirements, instead of the proposed requirements for 
four-tire, 20 percent under-inflation, will permit manufacturers to use 
either direct TPMSs or hybrid TPMSs, i.e., TPMSs that combine direct 
and indirect TPMS technologies. One TPMS supplier indicated the 
potential for developing and producing hybrid systems, although it also 
indicated that it did not currently have plans for doing so. The agency 
believes that the difference in benefits between TPMSs meeting four-
tire, 20 percent requirements and TPMSs meeting four-tire, 25 percent 
requirements should not be substantial.
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    \2\ The minimum levels of pressure are the same for both 
compliance options.
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    To facilitate compliance with the options, the rule phases them in 
by increasing percentages of production. Ten percent of a vehicle 
manufacturer's light vehicles will be required to comply with either 
compliance option during the first year (November 1, 2003 to October 
31, 2004), 35 percent during the second year (November 1, 2004 to 
October 31, 2005), and 65 percent during the third year (November 1, 
2005 to October 31, 2006). These percentages are the same as those in 
the preliminary determination about the final rule. The agency is 
allowing carry-forward credits for vehicles that are manufactured 
during the phase-in and are equipped with TPMSs that comply with the 
four-tire, 25 percent option. It is not allowing credits for TPMSs 
complying with the other option for the same reason that the agency is 
requiring manufacturers to provide consumers with information about the 
performance limitations of those systems.
    The combination of the two compliance options and the phase-in will 
allow manufacturers to continue to use current indirect TPMSs during 
that period and ease the implementation of the TPMS standard. The 
agency notes that, for vehicles already equipped with ABS, the 
installation of a current indirect TPMS is the least expensive way of 
complying with a TPMS standard. The compliance options and phase-in 
will also give manufacturers the flexibility needed to innovate and 
improve the performance of their TPMSs. This flexibility will improve 
the chances that ways can be found to improve the detection of under-
inflation as well as reduce the costs of doing so.
    The owner's manual for vehicles certified to either compliance 
option will be required to include written information explaining the 
purpose of the low tire pressure warning telltale, the potential 
consequences of driving on significantly under-inflated tires, the 
meaning of the telltale when it is illuminated, and the actions that 
drivers should take when the telltale is illuminated. In addition, the 
owner's manual in vehicles certified to the one-tire, 30 percent option 
will be required to include information on the inherent performance 
limitations of current indirect TPMSs because the agency anticipates 
that most indirect TPMSs installed to comply with that option will 
exhibit those limitations and because a vehicle owner survey indicates 
that a significant majority of drivers would be less concerned, to 
either a great extent or a very great extent, with routinely 
maintaining the pressure of their tires if their vehicle were equipped 
with a TPMS. Under both compliance options, the TPMS will be required 
to have a low tire pressure-warning telltale (yellow).
2. Part Two--November 2006 and Thereafter
    Beginning November 1, 2006, all passenger cars and light trucks, 
multipurpose passenger vehicles, and buses under 10,000 pounds GVWR 
will be required to comply with the requirements in the second part of 
this final rule. The agency will publish the second part of this final 
rule by March 1, 2005, in order to give manufacturers sufficient lead 
time before vehicles must meet the requirements.
    In anticipation of making the decision in part two of this final 
rule about the long-term requirements, the agency will leave the 
rulemaking docket open for the submission of new data and analyses. The 
agency also will conduct a study comparing the tire pressures of 
vehicles without any TPMS to the pressures of vehicles with TPMSs that 
do not comply with the four-tire, 25 percent compliance option. When 
completed, it will be placed in the docket for public examination. 
After consideration of the record compiled to this date, as 
supplemented by the results of the tire pressure study and any other 
new information submitted to the agency, NHTSA will issue the second 
part of this rule by March 1, 2005.
    Based on the record now before the agency, NHTSA tentatively 
believes that the four-tire, 25 percent option would best meet the 
mandate in the TREAD Act. However, it is possible that the agency may 
obtain or receive new information that is sufficient to justify a 
continuation of the compliance options established by the first part of 
this final rule, or the adoption of some other alternative.

[[Page 38707]]

E. Summary Comparison of the Preliminary Determination and the Final 
Rule

    The primary difference between the preliminary determination and 
the final rule is one of timing, instead of substance. The options and 
percentages of production for the phase-in years are unchanged.\3\ The 
final rule does differ from the preliminary determination in the timing 
of the agency's decision about the performance requirements for the 
years following the phase-in period.
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    \3\ The final rule does require that additional information be 
placed in the vehicle's owner manual.

 Summary Comparison of the Preliminary Determination and the Final Rule
------------------------------------------------------------------------
                                      Preliminary
                                     determination         Final rule
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Application...................  Passenger cars,         Same.
                                 trucks, multipurpose
                                 passenger vehicles,
                                 and buses with a GVWR
                                 of 10,000 pounds or
                                 less, except those
                                 vehicles with dual
                                 wheels on an axle.
Short-term (11/1/03--10/31/
 06):
Compliance Options............  Option 1: TPMS must     Same.
                                 warn the driver when
                                 the pressure in any
                                 single tire or in
                                 each tire in any
                                 combination of tires,
                                 up to a total of four
                                 tires, has fallen to
                                 25 percent or more
                                 below the vehicle
                                 manufacturer's
                                 recommended cold
                                 inflation pressure
                                 for the tires, or a
                                 minimum level of
                                 pressure specified in
                                 the standard,
                                 whichever pressure is
                                 higher.
                                Option 2: TPMS must     Same.
                                 warn the driver when
                                 the pressure in any
                                 single tire has
                                 fallen to 30 percent
                                 or more below the
                                 vehicle
                                 manufacturer's
                                 recommended cold
                                 inflation pressure
                                 for the tires, or a
                                 minimum level of
                                 pressure specified in
                                 the standard,
                                 whichever pressure is
                                 higher.
Phase-in Schedule.............  10% of a vehicle        Same.
                                 manufacturer's light
                                 vehicles will be
                                 required to comply
                                 with either
                                 compliance option
                                 during the first year
                                 (November 1, 2003 to
                                 October 31, 2004), 35
                                 percent during the
                                 second year (November
                                 1, 2004 to October
                                 31, 2005), and 65
                                 percent during the
                                 third year (November
                                 1, 2005 to October
                                 31, 2006).
Long-term (11/1/06 &
 thereafter):
Performance Requirements......  TPMS must warn the      Decision to be
                                 driver when the         made by March
                                 pressure in any         1, 2005.
                                 single tire or in
                                 each tire in any
                                 combination of tires,
                                 up to a total of four
                                 tires, has fallen to
                                 25 percent or more
                                 below the vehicle
                                 manufacturer's
                                 recommended cold
                                 inflation pressure
                                 for the tires, or a
                                 minimum level of
                                 pressure specified in
                                 the standard,
                                 whichever pressure is
                                 higher.
------------------------------------------------------------------------

II. Background

A. The Transportation Recall Enhancement, Accountability, and 
Documentation Act

    Congress enacted the TREAD Act on November 1, 2000.\4\ Section 13 
of the TREAD Act mandated the completion of ``a rulemaking for a 
regulation to require a warning system in new motor vehicles to 
indicate to the operator when a tire is significantly under inflated'' 
within one year of the TREAD Act's enactment. Section 13 also requires 
the regulation to take effect within two years of the completion of the 
rulemaking.
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    \4\ Public Law 106-414.
    \5\ Tri-Level Study of the Causes of Traffic Accidents, Treat, 
J.R., et al. (1979) (Contract No. DOT HS 034-3-535), DOT HS 805 099, 
Washington, DC: U.S. Department of Transportation, National Highway 
Traffic Safety Administration.
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B. Previous Rulemaking on Tire Pressure Monitoring Systems

    NHTSA first considered requiring a ``low tire pressure warning'' 
device in 1970. However, the agency determined that the only warning 
device available at that time was an in-vehicle indicator whose cost 
was too high.
    During the 1970s, several manufacturers developed inexpensive, on-
tire warning devices. In addition, the price of in-vehicle warning 
devices dropped significantly.
    As a result, on January 26, 1981, NHTSA published an Advanced 
Notice of Proposed Rulemaking (ANPRM) soliciting public comment on 
whether the agency should propose a new Federal motor vehicle safety 
standard requiring each new motor vehicle to have a low tire pressure 
warning device which would ``warn the driver when the tire pressure in 
any of the vehicle's tires was significantly below the recommended 
operating levels.'' (46 FR 8062.)
    NHTSA noted in the ANPRM that under-inflation increases the rolling 
resistance of tires and, correspondingly, decreases the fuel economy of 
vehicles. Research data at the time indicated that the under-inflation 
of a vehicle's radial tires by 10 pounds per square inch (psi) reduced 
the fuel economy of the vehicle by 3 percent. Because of the worldwide 
oil shortages in the late 1970s and early 1980s, NHTSA was interested 
in finding ways to increase the fuel economy of passenger vehicles 
(i.e., passenger cars and multipurpose passenger vehicles). Since 
surveys by the agency showed that about 50 percent of passenger car 
tires and 13 percent of truck tires were operated at pressures below 
the vehicle manufacturer's recommended (placard) pressure, the agency 
believed that low tire pressure warning devices would encourage drivers 
to maintain their tires at the proper inflation level, thus maximizing 
their vehicles' fuel economy.
    Moreover, a 1977 study by Indiana University concluded that under-
inflated tires were a probable cause of 1.4 percent of all motor 
vehicle crashes.\5\ Based on that figure, and the approximately 18.3 
million motor vehicle crashes then occurring annually in the United 
States, the agency suggested that under-inflated tires were probably 
responsible for 260,000 crashes each year (1.4 percent x 18.3 million 
crashes).
    In the ANPRM, NHTSA sought answers from the public to several 
questions, including:
    (1) What tire pressure level should trigger the warning device?

[[Page 38708]]

    (2) Should the agency specify the type of warning device (i.e., on-
tire or in-vehicle) to be used?
    (3) What would it cost to produce and install an on-tire or in-
vehicle warning device?
    (4) What is the fuel saving potential of low tire pressure warning 
devices?
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    \5\ Tri-Level Study of the Causes of Traffic Accidents, Treat, 
J.R., et al. (1979) (Contract No. DOT HS 034-3-535), DOT HS 805 099, 
Washington, DC: U.S. Department of Transportation, National Highway 
Traffic Safety Administration.
---------------------------------------------------------------------------

    (5) What studies have been performed which would show cause and 
effect relationships between low tire pressure and auto crashes?
    (6) What would be the costs and benefits of a program to educate 
the public on the benefits of maintaining proper tire pressure?
    NHTSA terminated the rulemaking on August 31, 1981, because public 
comments indicated that the low tire pressure warning devices available 
at the time either had not been proven to be accurate and reliable (on-
tire devices) or were too expensive (in-vehicle devices). (46 FR 
43721.) The comments indicated that in-vehicle warning devices had been 
proven to be accurate and reliable, but would have had a retail cost of 
$200 (in 1981 dollars) per vehicle. NHTSA stated, ``Such a cost 
increase cannot be justified by the potential benefits, although those 
benefits might be significant.'' (46 FR 43721.) The comments also 
indicated that on-tire warning devices cost only about $5 (in 1981 
dollars), but they had not been developed to the point where they were 
accurate and reliable enough to be required. The comments also 
suggested that on-tire warning devices were subject to damage by road 
hazards, such as ice and mud, as well as scuffing at curbs. Despite 
terminating the rulemaking, the agency stated that it still believed 
that ``[m]aintaining proper tire inflation pressure results in direct 
savings to drivers in terms of better gas mileage and longer tire life, 
as well as offering increased safety.'' (46 FR 43721.)

C. Summary of the Notice of Proposed Rulemaking

    On July 26, 2001, the agency published the NPRM proposing to 
establish a standard for TPMSs pursuant to section 13 of the TREAD Act. 
(66 FR 38982.) The agency proposed two alternative versions of the 
standard.
    The two alternatives differed in two important respects: in how 
they defined ``significantly under-inflated,'' and in the number of 
significantly under-inflated tires that they would be required to be 
able to detect at any one time. The first alternative (four tires, 20 
percent) would have defined ``significantly under-inflated'' as the 
tire pressure 20 percent or more below the placard pressure, or a 
minimum level of pressure specified in the standard, whichever was 
higher. It would have required the low tire pressure warning telltale 
to illuminate when any tire, or when each tire in any combination of 
tires, on the vehicle became significantly under-inflated.
    The second alternative (three tires, 25 percent) would have defined 
``significantly under-inflated'' as the tire pressure 25 percent or 
more below the placard pressure, or a minimum level of pressure 
specified in the standard, whichever was higher. The minimum levels of 
pressure were the same in both proposed alternatives. The alternative 
would have required the low tire pressure warning telltale to 
illuminate when any tire, or when each tire in any combination of 
tires, up to a total of three tires, became significantly under-
inflated.
    In most other respects, the two alternatives were identical. Both 
would have required passenger cars, multipurpose passenger vehicles, 
trucks, and buses with a GVWR of 4,536 kilograms (10,000 pounds) or 
less, manufactured on or after November 1, 2003, to be equipped with a 
TPMS and a low tire pressure warning telltale (yellow) to alert the 
driver. They would have required the telltale to illuminate within 10 
minutes of driving after any tire on the vehicle became significantly 
under-inflated. They would have required the telltale to remain 
illuminated as long as any of the vehicle's tires remained 
significantly under-inflated, and the key locking system was in the 
``On'' (``Run'') position. They would have required that the telltale 
be deactivatable, manually or automatically, only when the vehicle no 
longer had a tire that was significantly under-inflated. They would 
have required the TPMS in each vehicle to be compatible with all 
replacement or optional tires/rims of the size recommended for that 
vehicle by the vehicle manufacturer, i.e., each TPMS would have been 
required to continue to meet the requirements of the standard when the 
vehicle's original tires were replaced with tires of any optional or 
replacement size(s) recommended for the vehicle by the vehicle 
manufacturer. Finally, they would have required vehicle manufacturers 
to provide written instructions, in the owner's manual if one is 
provided, explaining the purpose of the low tire pressure warning 
telltale, the potential consequences of significantly under-inflated 
tires, and what actions drivers should take when the low tire pressure 
warning telltale is illuminated.
    NHTSA believed that the only currently available TPMSs that would 
have been able to meet the requirements of the four-tire, 20 percent 
alternative were direct TPMSs. There were two reasons for this belief. 
First, currently available indirect TPMSs typically cannot detect 
significant under-inflation until the pressure in one of the vehicle's 
tires is about 30 percent below the pressure in at least some of the 
other tires. Second, they cannot detect when all four tires lose 
inflation pressure equally.
    The agency believed that both currently available direct TPMSs and 
improved indirect TPMSs, but not current indirect TPMSs, would have 
been able to meet the requirements of the three-tire, 25 percent 
alternative.
    In the NPRM, NHTSA anticipated that vehicle manufacturers would 
minimize their costs of complying with the three-tire, 25 percent 
alternative by installing improved indirect TPMSs in vehicles already 
equipped with ABSs and direct TPMSs in vehicles without ABSs. For 
vehicles already equipped with an ABS, the cost of modifying that 
system to serve the additional purpose of indirectly monitoring tire 
pressure would be significantly less than the cost of adding a direct 
TPMS. For vehicles not so equipped, adding a direct TPMS would be 
significantly less expensive than adding ABS to monitor tire pressure.
    For the NPRM, NHTSA had two sets of data, one from Goodyear and 
another from NHTSA's Vehicle Research and Test Center (VRTC), on the 
effect of under-inflated tires on a vehicle's stopping distance. The 
Goodyear data indicated that a vehicle's stopping distance on wet 
surfaces is significantly reduced when its tires are properly inflated, 
as compared to when its tires are significantly under-inflated. The 
VRTC data indicated little or no effect on a vehicle's stopping 
distance. For purposes of the NPRM, NHTSA used the Goodyear data to 
establish an upper bound of benefits and the VRTC data to establish a 
lower bound. The benefit estimates below are the mid-points between 
those upper and lower bounds.
    NHTSA estimated that the four-tire, 20 percent alternative would 
have prevented 10,635 injuries and 79 deaths at an average net cost of 
$23.08 per vehicle.\6\ NHTSA estimated that the

[[Page 38709]]

three-tire, 25 percent alternative would have prevented 6,585 injuries 
and 49 deaths at an average net cost of $8.63 per vehicle.\7\ NHTSA 
estimated that the net cost per equivalent life saved would have been 
$1.9 million for the four-tire, 20 percent alternative and $1.1 million 
for the three-tire, 25 percent alternative.
---------------------------------------------------------------------------

    \6\ 6 The range of injuries prevented was 0 to 21,270, and the 
range of deaths prevented was 0 to 158. These benefit estimates did 
not include deaths and injuries prevented due to reductions in 
crashes caused by blowouts and skidding/loss of control because the 
agency was unable to quantify those benefits at the time the NPRM 
was published. For this final rule, the agency was able to quantify 
those benefits. They are discussed in the Benefits section below. 
Net costs included $66.33 in vehicle costs minus $32.22 in fuel 
savings and $11.03 in tread wear savings. These cost estimates did 
not include maintenance costs. For this final rule, the agency has 
estimated maintenance costs. They are discussed in the Costs section 
below.
    \7\ The range of injuries prevented was 0 to 13,170, and the 
range of deaths prevented was 0 to 97. Net costs included $30.54 in 
vehicle costs minus $16.40 in fuel savings and $5.51 in tread wear 
savings. These estimates did not include maintenance costs. The 
agency has estimated maintenance costs for this final rule.
---------------------------------------------------------------------------

    Finally, the agency requested comments on whether a compliance 
phase-in with carry-forward credits would be appropriate. The agency 
suggested a phase-in period of 35 percent of production in the first 
year (2003), 65 percent in the second year, and 100 percent in the 
third year.

D. Summary of Public Comments on Notice

    The agency received comments from tire, vehicle, and TPMS 
manufacturers, consumer advocacy groups, and the general public. In 
general, the tire manufacturers' comments, including the comments of 
the international tire industry associations European Tyre and Rim 
Technical Organisation (ETRTO), Japan Automobile Tyre Manufacturers 
Association (JATMA), and International Tire & Rubber Association 
(ITRA), echoed the comments of the Rubber Manufacturers Association 
(RMA). In general, the vehicle manufacturers' comments, including the 
comments of the Association of International Automobile Manufacturers 
(AIAM), were similar to the comments of the Alliance of Automobile 
Manufacturers (Alliance).
    The tire manufacturers generally supported the four-tire, 20 
percent alternative. The vehicle manufacturers generally supported 
requirements that would permit both direct and current indirect TPMSs 
to comply. TPMS manufacturers generally supported the alternative that 
would allow the type of system they manufacture. The consumer advocacy 
groups--Consumers Union and Advocates for Highway and Auto Safety 
(Advocates) supported by Public Citizen, Consumer Federation of 
America, and Trauma Foundation--generally supported the four-tire, 20 
percent alternative. The general public was about evenly divided 
between those who supported and those who opposed a Federal standard 
requiring TPMSs.
    The major issues discussed by the commenters are summarized below. 
The comments are addressed in the discussion of the final rule below
1. Vehicles Covered
    The agency proposed to require TPMSs on passenger cars, 
multipurpose passenger vehicles, trucks, and buses with a GVWR of 4,536 
kilograms (10,000 pounds) or less. The agency did not propose to 
require TPMSs on motorcycles, trailers, or low speed vehicles, or on 
medium (10,001-26,000 pounds GVWR) vehicles, or heavy (greater than 
26,000 pounds GVWR) vehicles for reasons explained in the NPRM.
    The Alliance recommended that the agency limit the applicability of 
the standard to these types of vehicles to those having a GVWR of 3,856 
kilograms (8,500 pounds or less). The Alliance stated that the majority 
of vehicles above 8,500 pounds GVWR are used commercially. The Alliance 
argued that those vehicles are maintained on a regular basis and do not 
need a TPMS to assist in maintaining proper inflation pressure in the 
vehicles' tires.
    The Alliance also recommended that the agency explicitly exclude 
incomplete vehicles, i.e., vehicles that are built in more than one 
stage, from the standard. Normally, the first-stage vehicle 
manufacturer is responsible for certifying that all vehicle systems 
that are not directly modified by subsequent-stage manufacturers meet 
all Federal motor vehicle safety standards. The Alliance stated that in 
the case of direct TPMSs, the first-stage manufacturer will be unable 
to guarantee that, even if physically undisturbed, a non-defective TPMS 
will function as designed after vehicle modifications (such as adding 
metal hardware to the vehicle or lengthening its wheelbase) are made by 
subsequent-stage manufacturers.
    Advocates recommended that the agency expand the application of the 
standard to include medium (10,001-26,000 pounds GVWR) and heavy (over 
26,000 pounds) trucks and buses. Advocates stated that tire under-
inflation is a pervasive problem with these vehicles, especially given 
the high percentage of these vehicles that are equipped with re-treaded 
tires.
2. Phase-In Options and Long-Term Requirements
    a. Definition of ``Significantly Under-Inflated''
    RMA recommended that the agency define ``significantly under-
inflated'' as any inflation pressure that is less than the pressure 
required to carry the actual vehicle load on the tire per tire industry 
standards (or any pressure required to carry the maximum vehicle load 
on the tire if the actual load is unknown), or the minimum activation 
pressure specified in the standard, whichever is higher. RMA argued 
that some vehicles have a placard pressure that is barely adequate to 
carry the vehicle's maximum load. If the tire pressure falls 20 or 25 
percent below the placard pressure, the tire pressure will be 
insufficient to carry the load. RMA stated that the definition of 
``significantly under-inflated'' should not be tied to placard pressure 
unless the standard includes a requirement for all vehicles to have a 
reserve in the placard pressure above a specified minimum (e.g., 20 or 
25 percent).
    RMA also recommended that the agency change the minimum activation 
pressures for P-metric standard load tires from 20 to 22 psi and for P-
metric extra load tires from 23 to 22 psi. Finally, RMA recommended 
that the agency change the ``Maximum Pressure'' heading in Table 1 to 
``Maximum or Rated Pressure'' because light truck tires are not subject 
to maximum permissible inflation pressure labeling requirements. RMA 
recommended that the agency change the rated pressure for Load Range E 
tires from 87 to 80 psi. Finally, RMA, supported by the Retread/Repair 
Industry Government Advisory Council (RIGAC),\8\ recommended that the 
agency adopt, in this rulemaking proceeding, an amendment to upgrade 
Standard No. 109, ``New Pneumatic Tires,'' by requiring that ``a tire 
for a particular vehicle must have sufficient inflation and load 
reserve, such that an inflation pressure 20 or 25 percent less than the 
vehicle manufacturer's recommended inflation pressure is sufficient for 
the vehicle maximum load on the tire, as defined by FMVSS-110.'' \9\
---------------------------------------------------------------------------

    \8\ RIGAC consists of representatives from the Tire Association 
of North America (TANA), Tread Rubber Manufacturers Group (TRMG), 
ITRA, and RMA.
    \9\ Standard No. 110 specifies requirements for tire selection 
to prevent tire overloading.
---------------------------------------------------------------------------

    The ITRA recommended that the agency consider only direct TPMSs. 
The ITRA stated that indirect TPMSs have too many limitations, 
including the inability to detect when all four of a vehicle's tires 
are significantly under-inflated. The ITRA claimed that, although 
direct TPMSs are more expensive than indirect TPMSs, their cost is 
minor when compared to their safety, handling, tread wear, and fuel 
economy benefits.
    The Alliance recommended that the agency define ``significantly 
under-inflated'' as any inflation pressure 20 percent below a tire's 
load carrying

[[Page 38710]]

limit, as determined by a tire industry standardizing body (such as the 
Tire and Rim Association) or the minimum activation pressure specified 
in the standard, whichever is higher. The Alliance agreed with the 
agency's minimum activation pressure of 20 psi for P-metric standard 
load tires. The Alliance cited data from tests performed by RMA 
indicating that the average tire was able to operate at high speeds 
(120 and 140 km/h) at load-inflation conditions more extreme than the 
worst case that the Alliance proposal would allow.
    The Alliance also stated that a 25 percent differential from 
placard pressure would be inadequate to allow the use of indirect 
TPMSs. The Alliance claimed that a minimum of 30 percent differential 
is necessary to ensure accuracy with an indirect TPMS and avoid 
excessive nuisance warnings.
    The AIAM recommended that the agency define ``significantly under-
inflated'' as any pressure more than 30 percent below the placard 
pressure. Alternatively, the AIAM suggested that the agency use the 
load-carrying limit of the tire as defined by a tire industry 
standardizing body as the baseline for determining the warning 
threshold.
    Several manufacturers indicated that they are either developing or 
could develop indirect or hybrid TPMSs that perform better than current 
indirect TPMSs. In its comments on the NPRM, TRW Automotive Electronics 
(TRW), which manufactures both direct and indirect TPMSs, stated that 
it could, in concept, combine direct and indirect TPMS technologies to 
produce a hybrid TPMS that performs better than TRW's current indirect 
TPMS. TRW stated this could be accomplished by adding the equivalent of 
two direct pressure-monitoring sensors and a radio frequency receiver 
to an indirect TPMS. TRW suggested that this hybrid TPMS could comply 
detect 25 under-inflation for about 60 percent of the cost of a full 
direct TPMS. However, it did not indicate whether it had any plans to 
develop a hybrid system.
    Sumitomo Rubber Industries, which manufactures indirect TPMSs, 
indicated that indirect TPMSs will be able to detect a 25 percent 
differential in inflation pressure.
    Toyota, which uses an indirect TPMS on its Sienna van, stated that 
its next generation of indirect TPMSs (i.e., TPMSs not available for 
current production) would be able to detect a 20 percent differential 
in tire pressure by monitoring the resonance frequency as well as the 
dynamic radius changes of the tires. However, Toyota stated that this 
performance will be achieved only under ideal conditions, i.e., the 
vehicle is traveling in a relatively straight line at 30 to 60 km/h for 
at least 20 minutes. Thus, Toyota recommended that the agency adopt the 
Alliance proposal of 30 percent under-inflation. Toyota also stated 
that its next generation of indirect TPMSs would be able to detect 
significant under-inflation in all four tires. Toyota was not certain 
when its next generation of indirect TPMSs will be ready for 
implementation.
    Advocates supported the definition of ``significantly under-
inflated'' contained in the four-tire, 20 percent alternative, i.e., 
any pressure 20 percent or more below the placard pressure, or the 
minimum activation pressure specified in the standard. Advocates also 
supported the agency's minimum activation pressures.
    b. Number of Tires Monitored
    Advocates, the ITRA, and RMA recommended that the agency require 
TPMSs to be able to detect when all four of a vehicle's tires become 
significantly under-inflated. RMA argued that it is very likely that 
all four tires will lose air pressure at a similar rate and become 
significantly under-inflated within a six-month period.\10\ RMA stated 
that drivers would rely heavily on TPMSs for tire pressure maintenance, 
which will make this scenario even more likely.
---------------------------------------------------------------------------

    \10\ RMA stated that normal air pressure loss is approximately 1 
to 2 psi per month.
---------------------------------------------------------------------------

    The Alliance and AIAM recommended that the agency require only that 
TPMSs be able to detect significant under-inflation in a single tire. 
The Alliance argued that TPMSs are not meant to replace the normal tire 
maintenance that would detect pressure losses due to natural leakage 
and permeation. Instead, TPMSs are intended to detect a relatively slow 
leak due to a serviceable condition, such as a nail through the tread 
or a leaky valve stem. Since such leaks rarely affect more than one 
tire simultaneously, the Alliance argued, it is sufficient to require 
only that TPMSs be able to detect a single significantly under-inflated 
tire. In further support of this position, the Alliance argued that 
tires do not lose pressure at the same rate.
    As noted above, TRW commented that a hybrid TPMS could be developed 
that would be capable of monitoring all four of a vehicle's tires. 
According to TRW, a hybrid system would involve installing two direct 
pressure sensors, one in a front wheel and one in a back wheel located 
diagonally from each other (e.g., the front left and back right 
wheels), on a vehicle already equipped with an indirect TPMS. The 
pressure sensors would directly monitor the pressure in those two 
tires, while the indirect TPMS would use the wheel speed sensors to 
indirectly monitor the pressure in the other two tires. This would 
solve the problem indirect TPMSs have in detecting when two tires on 
the same axle or the same side of the vehicle become significantly 
under-inflated because a direct pressure sensor will be in a wheel on 
each axle and on each side of the vehicle. It would also solve the 
problem indirect TPMSs have in detecting when all four tires become 
significantly under-inflated.
    Advocates and RMA also recommended that the agency require TPMSs to 
monitor a vehicle's spare tire. RMA argued that the spare tire should 
be monitored to ensure its functionality, if and when it is needed. 
Advocates stated, ``Vehicle owners chronically neglect to maintain 
minimal air pressure in spare tires.''
    The Alliance recommended that the agency require only that TPMSs 
monitor full-size, matching spare tires, and only when they are 
installed on the vehicle (i.e., not when they are stowed). The Alliance 
stated that temporary-use spare tires, including full-size, non-
matching and compact spare tires, are not intended to be part of the 
normal tire rotation cycle for the vehicle. Because these temporary-use 
spare tires degrade the aesthetic appearance of a vehicle or have speed 
and distance limitations, vehicle owners normally replace them quickly. 
Thus, the Alliance recommended that the agency not require TPMSs to 
monitor temporary-use tires, whether stowed or installed on the 
vehicle.
    RMA supported the agency's proposed requirement that TPMSs function 
properly with all replacement tires and rims of the size(s) recommended 
by the vehicle manufacturer. Advocates recommended that the agency 
require TPMSs to function properly with all replacement tires and rims, 
regardless of size.
    The Alliance recommended that the agency require only that TPMSs 
function properly with those tires and rims offered as original or 
optional equipment by the vehicle manufacturer. The Alliance stated 
that there are a large number of replacement brands and types of tires 
and rims with different dynamic rolling radii, size variations, load 
variations, and temperature characteristics. The Alliance argued that 
since vehicle manufacturers do not control tire compliance for 
aftermarket tires and rims, they could not guarantee that the TPMS will 
work, or will work with the same level of precision, in all cases.

[[Page 38711]]

3. Lead Time
    The Alliance and most vehicle manufacturers recommended the 
following four-year phase-in schedule: 15 percent of a manufacturer's 
affected products equipped with a semi- or fully-compliant TPMS in the 
first year; 35 percent in the second year; 70 percent in the third 
year; and 100 percent of a manufacturer's affected products equipped 
with a fully compliant TPMS in the final year. According to the 
Alliance, a semi-compliant TPMS is one that meets all but specified 
interface requirements, i.e., those concerning the display of 
information about under-inflation, and would be allowed only during the 
phase-in period. The Alliance and AIAM also recommended that the agency 
provide credits for early introduction of TPMSs to encourage early 
implementation of the standard.
    TRW supported the agency's four-year phase-in period. TRW stated 
that direct TPMSs are ready so that manufacturers could start 
production to meet such a phase-in. However, TRW stated that the 
improvements in indirect TPMSs that will be necessary to meet the 
requirements of this final rule would make it difficult to meet the 
compliance date of November 1, 2003.
    Ford Motor Company (Ford) commented that its recent experience with 
direct TPMSs demonstrates that this technology still needs a thorough 
prove-out. Ford stated that when it tested 138 direct pressure sensors 
on 30 vehicles, nine sensors experienced a malfunction. This translates 
to a sensor failure rate of 6.5 percent. However, Ford stated that if 
the final rule required five sensors per vehicle (all four tires plus 
the spare tire), nearly 33 percent of vehicles could experience the 
failure of at least one sensor. Ford recommended that the agency adopt 
the phase-in schedule set forth by the Alliance.
    Vehicle Services Consulting, Inc. (VSC), which submitted comments 
on behalf of small volume vehicle manufacturers (i.e., those 
manufacturers who produce fewer than 5,000 vehicles worldwide each 
year), recommended that the agency provide phase-in discretion so that 
small volume manufacturers have until the end of the phase-in period 
before having to comply with the TPMS requirements. VSC claimed that 
small volume manufacturers could not obtain the TPMS technology at the 
same time as large volume manufacturers.
4. Reliability
    In the NPRM, the agency noted that the components of direct TPMSs, 
especially when tires are taken off the rim, might be susceptible to 
damage. The agency requested comments on the likelihood of such damage. 
TRW stated:

    Direct TPMSs are relatively new systems and, therefore, the 
likelihood of damage during driving or maintenance is unknown. 
However, direct TPMS sensors are designed to minimize the likelihood 
of damage during driving or maintenance operations. Most sensors are 
valve-mounted and rest in the drop center well of the rim, and are 
contoured to minimize the likelihood of damage during tire 
servicing. They can be packaged in a high impact plastic material, 
which can withstand high G forces and mechanical vibration/shock 
levels associated with the tire/wheel system. The likelihood of 
damage during operation is also minimized by the selected mounting 
location and the protection offered by the rim during flat 
conditions. These factors, combined with training for service center 
technicians, should reduce the overall likelihood of damage.

    Beru Corporation, which manufacturers direct TPMSs, stated that it 
had sold over 800,000 direct TPMS wheel electronics and had received no 
reports of damage during operation or failures due to mounting error.
    The European Community (EC) supported a rulemaking requiring TPMSs. 
The EC Stated, ``The European Community is convinced (as is the NHTSA) 
of the appropriateness of a regulation in this field, and of its 
justification for the safety of road users.'' The EC stressed ``the 
paramount importance of reliability and accuracy of the technology.'' 
The EC stated that ``a temperature correction device might be a 
necessary feature in order to guarantee the reliability and accuracy of 
the device.''
5. Costs and Benefits Estimates
    The Alliance stated that the benefits NHTSA estimated resulting 
from a reduction in stopping distance were based on three principal 
conclusions: (1) Properly inflated tires result in shorter stopping 
distances than under-inflated tires; (2) these shorter stopping 
distances have equal safety benefits in all types of crashes and under 
all environmental conditions; and (3) the benefits of shorter stopping 
distances associated with properly-inflated tires will be greater for 
direct TPMSs than for indirect TPMSs. The Alliance argued that each of 
these conclusions is highly questionable and not supported by the 
information in the rulemaking record.
    The Alliance noted that in estimating the safety benefits resulting 
from stopping distance reductions, the agency relied on Goodyear data. 
The Alliance argued that these data ``are neither conclusive with 
respect to the effect of under-inflation on stopping distance, nor 
reproducible according to the agency's own study demonstrating that 
there is no significant effect of tire under-inflation on stopping 
distance.'' The Alliance also argued that even if the Goodyear data 
were valid, NHTSA's benefits estimates must be adjusted to claim 
benefits only for vehicles experiencing the same conditions as those in 
the Goodyear tests, i.e., all four of the vehicle's tires are at 17 psi 
or below and on wet pavement.\11\ The Alliance questioned NHTSA's 
assumption that 80 percent of drivers would respond appropriately to a 
direct TPMS, but that only 60 percent of drivers would respond 
appropriately to an indirect TPMS. The Alliance argued that there was 
no evidence in the record supporting this assumption.
---------------------------------------------------------------------------

    \11\ Goodyear conducted its tests on pavement with 0.05 inch 
water on the surface and found significant effects on stopping 
distance only when the pressure in the vehicle's tires was lowered 
to 17 psi.
---------------------------------------------------------------------------

    Finally, the Alliance agreed that TPMSs should produce some of the 
unquantified benefits listed in the NPRM. However, the Alliance stated 
that there was no evidence that these benefits would be greater for 
direct TPMSs than for indirect TPMSs.
    The ITRA stated that when developing training programs, it looks 
closely at tire performance and has the opportunity to analyze a 
significant number of tires that failed in service. They find that the 
single most common cause of tire failure is under-inflation. Thus, the 
ITRA claimed that the agency's benefits estimates may be under-stated.
    TRW stated that current indirect TPMSs would have to be upgraded to 
meet the requirements of the three-tire, 25 percent alternative. TRW 
estimated that these upgrades would increase the cost of indirect TPMSs 
to 60 percent of the cost of a direct TPMS.\12\
---------------------------------------------------------------------------

    \12\ This estimate would apply only to vehicles that were 
already equipped with ABS.
---------------------------------------------------------------------------

    IQ-mobil Electronics, a TPMS manufacturer in Germany, commented 
that it has developed ``a batteryless transponder chip'' that ``costs 
half as much as the battery transmitter it replaces,'' thus reducing 
``high replacement costs for the tire transmitter, and an annual 
environmental burden of millions of batteries.''

E. Submission of Draft Final Rule to OMB

    Since this final rule is considered ``significant'' under Executive 
Order 12866, Regulatory Planning and Review, it was subject to review 
by the Office of Management and Budget (OMB) under that Order. The 
agency submitted a draft

[[Page 38712]]

final rule to OMB on December 18, 2001.
    The draft final rule specified short and long-term performance 
requirements.\13\ For the short term, it specified a phase-in of the 
TPMS requirements beginning November 1, 2003. During the phase-in, the 
draft final rule permitted vehicles to comply with either a four-tire, 
25 percent option, which essentially would have required manufacturers 
to install direct TPMSs or improved indirect TPMSs, or a one-tire, 30 
percent option, which would have permitted manufacturers to install 
either direct TPMSs or any type of indirect TPMSs, including current 
indirect TPMSs. For the long-term, the period beginning November 1, 
2006, the requirements of the four-tire, 25 percent option would have 
become mandatory for all vehicles subject to the TPMS standard.
---------------------------------------------------------------------------

    \13\ The rationales for the provisions of that draft final rule 
are discussed below in section VI.A., ``Summary of Preliminary 
Determination about the Final Rule.''
---------------------------------------------------------------------------

    As explained further below in section V.A. ``Alternative Long-Term 
Requirements Analyzed in Making Preliminary Determination,'' NHTSA 
analyzed three alternatives for the long term requirement in developing 
the draft final rule: a four-tire, 20 percent alternative, a three-
tire, 25 percent alternative, and a four-tire, 25 percent alternative.

F. OMB Return Letter

    After reviewing the draft final rule, OMB returned it to NHTSA for 
reconsideration, with a letter explaining its reasons for doing so, on 
February 12, 2002.\14\
---------------------------------------------------------------------------

    \14\ A copy of the return letter has been placed in the docket 
(Docket No. NHTSA-2000-8572-202). The letter also is available 
electronically at www.whitehouse.gov/omb/inforeg/
dot_revised_tire_rtnltr.pdf.
---------------------------------------------------------------------------

    In the letter, OMB stated its belief that the draft final rule and 
accompanying regulatory impact analysis did not adequately demonstrate 
that the agency had selected the best available method of improving 
overall vehicle safety. OMB said further that: NHTSA should base its 
decision about the final rule on overall vehicle safety, instead of 
just tire safety; while direct TPMSs can detect under-inflation under a 
greater variety of circumstances than indirect TPMSs, the indirect 
system captures a substantial portion of the benefit provided by direct 
systems; NHTSA should consider a fourth alternative for the long-term 
requirement, a one-tire, 30 percent compliance option, indefinitely, 
since it would allow vehicle manufacturers to install current indirect 
TPMSs; NHTSA, in analyzing long-term alternatives, should consider both 
their impact on the availability of ABS as well as the potential safety 
benefits of ABS; and that NHTSA should provide a better explanation of 
the technical foundation for the agency's safety benefits estimates and 
subject those estimates to sensitivity analyses.

G. Public Comments on OMB's Return Letter

    Consumers Union (CU) and Public Citizen (PC) submitted comments on 
the OMB return letter.\15\
---------------------------------------------------------------------------

    \15\ Both letters have been placed in the docket. The CU letter 
is Docket No. NHTSA-2000-8572-204, and the PC letter is Docket No. 
NHTSA-2000-8572-199.
---------------------------------------------------------------------------

    CU stated that direct TPMSs offer significant safety advantages 
over indirect TPMSs. CU recently performed tire air leakage testing and 
found that all four tires on a vehicle will likely lose pressure at a 
similar rate.\16\ CU said that direct TPMSs could detect such pressure 
losses, while indirect TPMSs could not.
---------------------------------------------------------------------------

    \16\ CU tested three samples of 36 tire models over a six-month 
period. CU mounted the tires on new rims and inflated the tires to 
30 psi. Then CU stored the tires indoors at room temperature for six 
months and checked their inflation pressure each month. After six 
months, the average pressure loss was about 4.4 psi. A copy of CU's 
test procedures and the test results has been placed in the docket. 
(Docket No. NHTSA-2000-8572-203.)
---------------------------------------------------------------------------

    CU questioned OMB's returning the TPMS final rule and asking NHTSA 
to consider the potential benefits of ABS in making a final decision on 
TPMS requirements. CU stated:

    We cannot understand the logic of delaying an important safety 
measure like direct tire pressure monitoring systems while NHTSA 
studies issues related to a less effective alternative because that 
alternative might encourage automakers to make ABS more widely 
available.

    Finally, CU stated that, while Congress mandated that NHTSA issue a 
regulation for TPMSs, Congress did not mandate that the agency issue a 
regulation requiring ABS to be installed in all vehicles.
    PC also supported the four-tire, 20 percent alternative. PC argued 
that indirect TPMSs have shortcomings, including:
     They can detect under-inflation only if one tire is more 
than 25 percent less inflated than the other tires.
     They cannot detect when all four tires are equally under-
inflated, a likely scenario if the tires are purchased or checked at 
the same time.
     They also cannot detect when two tires on the same side of 
the vehicle or the same axle are under-inflated, but can detect when 
diagonal tires are under-inflated.
    PC also objected to OMB's returning the TPMS final rule and asking 
NHTSA to consider the potential benefits of ABS in making a final 
decision on TPMS requirements. PC questioned OMB's return letter, 
arguing that it employs

    unproven assumptions about the cost and market effects of 
combining indirect systems with a requirement for anti-lock brakes 
(ABS) (a long-controversial area outside the focus of the agency's 
current rulemaking mandate), which, in turn, has only statistically 
insignificant and highly disputed safety effects.

    PC also questioned the potential benefits of ABS cited by OMB. In 
response to OMB's reliance on a study by Charles Farmer, the PC 
asserted that Mr. Farmer

    found that ABS had no statistically significant effect on crash 
fatalities. [Emphasis original.] Farmer was unable to determine 
whether ABS ultimately saved or cost lives across the vehicle fleet, 
making the ``between 4 and 9 percent reduction'' in crash fatalities 
[cited in the OMB letter] a statistical blip that may actually be 
zero percent.

H. Congressional Hearing

    On February 28, 2002, the House Committee on Energy and Commerce 
held an oversight hearing on the implementation of the TREAD Act. 
During the hearing, several Congressmen discussed their expectations 
for the TPMS rulemaking. Expressing concern about the cumulative damage 
done to a tire that is run while under-inflated, Congressman Tom Sawyer 
asked whether a warning threshold of 25 percent below placard pressure 
was low enough. Given the potential for catastrophic failure of tires 
run too long while under-inflated, the Congressman stated that it was 
important that the TPMS not encourage drivers to drive on under-
inflated tires.
    Congressman Markey, the sponsor of the amendment that added the 
TPMS mandate to the TREAD Act, indicated that the reliance of drivers 
on the TPMS warning light could lead to safety problems if the TPMS 
does not provide sufficient warnings. He acknowledged that, during the 
consideration of the TPMS amendment, he had mentioned a TPMS that was 
then in use (an ABS-based TPMS on the Toyota Sienna). He said that 
while any TPMS was acceptable during the initial implementation period 
for the TPMS requirements, the real intent of the amendment is to 
provide a warning in all instances.

III. Safety Problem

    Many vehicles have significantly under-inflated tires, primarily 
because drivers infrequently check their

[[Page 38713]]

vehicles' tire pressure. Other contributing factors are the difficulty 
of visually detecting when a tire is significantly under-inflated and 
the loss of tire pressure due to natural leakage and seasonal climatic 
changes.

A. Infrequent Driver Monitoring of Tire Pressure

    Surveys have shown that most drivers check the inflation pressure 
in their vehicles' tires infrequently. For example, in September 2000, 
the Bureau of Transportation Statistics (BTS) conducted an omnibus 
survey for NHTSA. One of the questions posed was: ``How often do you, 
or the person who checks your tires, check the air pressure in your 
tires?'' The answers indicated that 29 percent of the respondents 
stated that they check the air pressure in their tires monthly; another 
29 percent stated that they check the air pressure only when one or 
more of their vehicle's tires appears under-inflated; 19 percent stated 
that they only have the air pressure checked when the vehicle is 
serviced; 5 percent stated that they only check the air pressure before 
taking their vehicle on a long trip; and 17 percent stated that they 
check the air pressure on some other occasion. Thus, 71 percent of the 
respondents stated that they check the air pressure in the vehicles' 
tires less than once a month.\17\
---------------------------------------------------------------------------

    \17\ The agency notes that it seems likely that the respondents 
in both of the surveys cited overstated the frequency with which 
they check tire pressure, particularly given the fact that these 
surveys were conducted during the height of publicity about tire 
failures on sport utility vehicles in the late 2000 and early 2001.
---------------------------------------------------------------------------

    In addition, NHTSA's National Center for Statistics and Analysis 
(NCSA) conducted a survey in February 2001. The survey was designed to 
assess the extent to which passenger vehicle drivers are aware of the 
recommended air pressure for their vehicles' tires, if drivers monitor 
air pressure, and to what extent actual tire pressure differs from 
placard pressure.
    Data was collected through the infrastructure of the National 
Accident Sampling System--Crashworthiness Data System (NASS-CDS). The 
NASS-CDS consists of 24 Primary Sampling Units (PSUs) located across 
the country. Within each PSU, a random selection of zip codes was 
obtained from a list of eligible zip codes. Within each zip code, a 
random selection of two gas stations was obtained.
    A total of 11,530 vehicles were inspected at these gas stations. 
This total comprised 6,442 passenger cars, 1,874 sports utility 
vehicles (SUVs), 1,376 vans, and 1,838 pick-up trucks. For analytical 
purposes, the data were divided into three categories: (1) Passenger 
cars; (2) pick-up trucks, SUVs, and vans with P-metric tires; and (3) 
pick-up trucks, SUVs, and vans with either light truck (LT) or 
flotation tires.
    Drivers were asked how often they normally check their tires to 
determine if they are properly inflated. Their answers are in the 
following table:

------------------------------------------------------------------------
                                                   Drivers of pick-up
                                                 trucks, SUVs, and vans
                                    Drivers of             (%)
    How often is tire pressure      passenger  -------------------------
             checked?                cars (%)                   LT or
                                                  P-metric    flotation
                                                   tires        tires
------------------------------------------------------------------------
Weekly...........................         8.76         8.69         8.16
Monthly..........................        21.42        25.19        39.88
When they seem low...............        25.63        23.58        15.59
When serviced....................        30.18        27.72        25.54
For long trip....................         0.99         2.39         2.17
Other............................         6.46         8.27         6.97
Do not check.....................         6.56         4.16         1.69
------------------------------------------------------------------------

    These data indicate that only about 30 percent of drivers of 
passenger cars, 34 percent of drivers of pick-up trucks, SUVs, and vans 
with P-metric tires, and 48 percent of drivers of pick-up trucks, SUVs, 
and vans with either LT or flotation tires claim that they check the 
air pressure in their vehicles' tires at least once a month.

B. Loss of Tire Pressure Due to Natural and Other Causes

    According to data from the tire industry, 85 percent of all tire 
air pressure losses are the result of slow leaks that occur over a 
period of hours, days, or months. Only 15 percent are rapid air losses 
caused by contact with a road hazard, e.g., when a large nail that does 
not end up stuck in the tire punctures a tire.
    Slow leaks may be caused by many factors. Tire manufacturers 
commented that tires typically lose air pressure through natural 
leakage and permeation at a rate of about 1 psi per month. Testing by 
CU supports those comments. In addition, tire manufacturers said that 
seasonal climatic changes result in air pressure losses on the order of 
1 psi for every 10 degree F decrease in the ambient temperature. Slow 
leaks also may be caused by slight damage to a tire, such as a road 
hazard that punctures a small hole in the tire or a nail that sticks in 
the tire. NHTSA has no data indicating how often any of these causes 
results in a slow leak.

C. Percentage of Motor Vehicles With Under-Inflated Tires

    During the February 2001 survey, NASS-CDS crash investigators 
measured tire pressure on each vehicle coming into the gas station and 
compared the measured pressures to the vehicle's placard pressure. They 
found that about 36 percent of passenger cars and about 40 percent of 
light trucks had at least one tire that was at least 20 percent below 
the placard pressure.\18\ About 26 percent of passenger cars and 29 
percent of light trucks had at least one tire that was at least 25 
percent below the placard pressure. The agency notes those levels of 
under-inflation because they are the threshold levels for the low-tire 
pressure warning telltale illumination under the two alternatives the 
agency proposed in the NPRM for TPMSs. (66 FR 38982, July 26, 2001).
---------------------------------------------------------------------------

    \18\ For purposes of this discussion, the agency classified 
pick-up trucks, SUVs, and vans with either P-metric, LT, or 
flotation tires as light trucks.
---------------------------------------------------------------------------

D. Consequences of Under-Inflation of Tires

1. Reduced Vehicle Safety--Tire Failures and Increases in Stopping 
Distance
    When a tire is used while significantly under-inflated, its 
sidewalls flex more and the air temperature inside the tire increases, 
increasing stress and the risk of failure. In addition, a significantly 
under-inflated tire loses lateral traction,

[[Page 38714]]

making handling more difficult. Under-inflation also plays a role in 
crashes due to flat tires and blowouts. Finally, significantly under-
inflated tires can increase a vehicle's stopping distance.
    NHTSA's current crash files do not contain any direct evidence that 
points to low tire pressure as the cause of any particular crash.\19\ 
However, this lack of data does not imply that low tire pressure does 
not cause or contribute to any crashes. The agency believes that it 
simply reflects the fact that measurements of tire pressure are not 
among the vehicle information included in the crash reports received by 
the agency and placed in its crash data bases.\20\
---------------------------------------------------------------------------

    \19\ In response to the TREAD Act, NHTSA has added new tire 
related variables and attributes, including tire make, model, 
recommended tire pressure, actual tire pressure, and tread depth to 
its crash databases. These new variables will provide more specific 
tire data for vehicles involved in crashes.
    \20\ These crash databases are the NASS-CDS and the Fatality 
Analysis Reporting System (FARS).
---------------------------------------------------------------------------

    The only tire-related data element in the agency's crash databases 
is ``flat tire or blowout.'' However, even in crashes for which a flat 
tire or blowout is reported, crash investigators cannot tell whether 
low tire pressure contributed to the tire failure.
    The agency examined its crash files to gather information on tire-
related problems that resulted in crashes. The NASS-CDS has trained 
investigators who collect data on a sample of tow-away crashes around 
the United States. These data can be weighted to generate national 
estimates.
    The NASS-CDS General Vehicle Form contains a value indicating 
vehicle loss of control due to a blowout or flat tire. This value is 
used only when a vehicle's tire went flat, causing a loss of control of 
the vehicle and a crash. The value is not used for cases in which one 
or more of a vehicle's tires were under-inflated, preventing the 
vehicle from performing as well as it could have in an emergency 
situation.
    NHTSA examined NASS-CDS data for 1995 through 1998 and estimated 
that 23,464 tow-away crashes, or 0.5 percent of all crashes, are caused 
by blowouts or flat tires each year. The agency placed the tow-away 
crashes from the NASS-CDS files into two categories: passenger car 
crashes and light truck crashes. Passenger cars were involved in 10,170 
of the tow-away crashes caused by blowouts or flat tires, and light 
trucks were involved in the other 13,294.
    NHTSA also examined data from the Fatality Analysis Reporting 
System (FARS) for evidence of tire problems in fatal crashes. In FARS, 
if tire problems are noted after the crash, the simple fact of their 
existence is all that is noted. No attempt is made to ascribe a role in 
the crash to those problems. Thus, the agency does not know whether the 
noted tire problem caused the crash, influenced the severity of the 
crash, or simply occurred during the crash. For example, a tire may 
have blown out and caused the crash, or it may have blown out during 
the crash when the vehicle struck some object, such as a curb.
    Thus, while an indication of a tire problem in the FARS file gives 
some clue as to the potential magnitude of tire problems in fatal 
crashes, the FARS data cannot give a precise measure of the causal role 
played by those problems. The very existence of tire problems is 
sometimes difficult to detect and code accurately. Further, coding 
practices vary from State to State. Nevertheless, the agency notes 
that, from 1995 to 1998, 1.1 percent of all light vehicles involved in 
fatal crashes were coded as having tire problems. Over 535 fatal 
crashes involved vehicles coded with tire problems.
    Under-inflated tires can contribute to types of crashes other than 
those resulting from blowouts or tire failure, including crashes which 
result from: skidding and/or a loss of control of the vehicle in a 
curve or in a lane change maneuver; an increase in a vehicle's stopping 
distance; or hydroplaning on a wet surface.
    The 1977 Indiana Tri-level study associated low tire pressure with 
loss of control on both wet and dry pavements. The study never defined 
low tire pressure as a ``definite'' (i.e., 95 percent certainty that 
the crash would not have occurred absent this condition) cause of any 
crash, but did identify it as a ``probable'' (80 percent certainty that 
the crash would not have occurred absent this condition) cause of the 
crash in 1.4 percent of the 420 in-depth crash investigations.
    The study divided ``probable'' cause into two levels: a ``causal'' 
factor and a ``severity-increasing'' factor. A ``causal'' factor was 
defined as a factor whose absence would have prevented the accident 
from occurring. A ``severity-increasing'' factor was defined as a 
factor whose presence was not sufficient, by itself, to result in the 
occurrence of the accident, but which resulted in an increase in speed 
of the initial impact. The study determined that under-inflated tires 
were a causal factor in 1.2 percent of the probable cause cases and a 
severity-increasing factor in 0.2 percent of the probable cause cases.
    Note that more than one probable cause could be assigned to a 
crash. In fact, there were a total of 138.8 percent causes listed as 
probable causes (92.4 percent human factors, 33.8 percent environmental 
factors, and 12.6 percent vehicle factors). Thus, tire under-
inflation's part of the total is one percent (1.4/138.8). The agency 
focused solely on the probable cause cases, which represent 0.86 
percent of crashes (1.2/1.4 * 1.0).
    Tires are designed to maximize their performance capabilities at a 
specific inflation pressure. When a tire is under-inflated, the shape 
of its footprint and the pressure it exerts on the road surface are 
both altered, especially on wet surfaces. An under-inflated tire has a 
larger footprint than a properly inflated tire. Although the larger 
footprint results in an increase in rolling resistance on dry road 
surfaces due to increased friction between the tire and the road 
surface, it also reduces the tire load per unit area. On dry road 
surfaces, the countervailing effects of a larger footprint and reduced 
load per unit of area nearly offset each other, with the result that 
the vehicle's stopping distance performance is only mildly affected by 
under-inflation.
    On wet surfaces, however, under-inflation typically increases 
stopping distance for several reasons. First, as noted above, the 
larger tire footprint provides less tire load per area than a smaller 
footprint. Second, since the limits of adhesion are lower and achieved 
earlier on a wet surface than on a dry surface, a tire with a larger 
footprint, given the same load, is likely to slide earlier than the 
same tire with a smaller footprint because of the lower load per 
footprint area. The rolling resistance of an under-inflated tire on a 
wet surface is greater than the rolling resistance of the same tire 
properly-inflated on the same wet surface. This is because the slightly 
larger tire footprint on the under-inflated tire results in more rubber 
on the road and hence more friction to overcome. However, the rolling 
resistance of an under-inflated tire on a wet surface is less than the 
rolling resistance of the same under-inflated tire on a dry surface 
because of the reduced friction caused by the thin film of water 
between the tire and the road surface. The less tire load per area and 
lower limits of adhesion of an under-inflated tire on a wet surface are 
enough to overcome the increased friction caused by the larger 
footprint of the under-inflated tire. Hence, under-inflated tires cause 
longer stopping distance on wet surfaces than properly-inflated tires.

[[Page 38715]]

    The agency has received data from Goodyear indicating that 
significantly under-inflated tires increase a vehicle's stopping 
distance.\21\ The effects of tire under-inflation on vehicle stopping 
distance are discussed in greater detail in the agency's Final Economic 
Analysis (FEA).
---------------------------------------------------------------------------

    \21\ Goodyear submitted these data to the docket in a letter 
dated September 14, 2001. See Docket No. NHTSA-2000-8572-160. OMB 
criticized NHTSA's application of these data to certain vehicle 
types in estimating safety benefits for this rulemaking. The agency 
responds to that criticism below in section VI.F., ``Technical 
Foundation for NHTSA's Safety Benefit Analyses.'' The Alliance also 
questioned NHTSA's use of the Goodyear data. The agency explains its 
use of the Goodyear data below in footnotes 22 and 23, and in the 
agency's Final Economic Analysis (FEA).
---------------------------------------------------------------------------

    As explained in the FEA, the agency did not use the VRTC data or 
the Goodyear data that the agency used to estimate benefits in the NPRM 
because of concerns with the way in which the both tests were 
performed.\22\ The agency believes that the more recent Goodyear test 
methodology adequately addressed these concerns.\23\
---------------------------------------------------------------------------

    \22\ For example, the VRTC only tested new tires, not worn tires 
that are more typical of the tires on most vehicles. In addition, 
the NHTSA track surface is considered to be aggressive in that it 
allows for maximum friction with tire surfaces. It is more 
representative of a new road surface than the worn surfaces 
experienced by the vast majority of road traffic. The previous 
Goodyear tests on wet surfaces were conducted on surfaces with .05 
inch of standing water. This is more than would typically be 
encountered under normal wet road driving conditions. The agency 
expressed concerns with the adequacy of both sets of test data in a 
memo to the docket. (Docket No. NHTSA-2000-8572-81.)
    \23\ For example, in its more recent tests Goodyear tested tires 
with two tread depths: full tread, which is representative of new 
tires, and half tread, which is representative of worn tires. 
Goodyear also conducted wet surface tests on surfaces with .02 inch 
of standing water, which is more representative of typical wet road 
driving conditions.
---------------------------------------------------------------------------

2. Reduced Tread Life
    Unpublished data submitted to the agency by Goodyear indicate that 
when a tire is under-inflated, more pressure is placed on the shoulders 
of the tire, causing the tread to wear incorrectly.\24\ The Goodyear 
data also indicate that the tread on an under-inflated tire wears more 
rapidly than it would if the tire were inflated to the proper pressure.
---------------------------------------------------------------------------

    \24\ Docket No. NHTSA-2000-8572-26.
---------------------------------------------------------------------------

    The Goodyear data indicate that the average tread life of a tire is 
45,000 miles, and the average cost of a tire is $61 (in 2000 dollars). 
Goodyear also estimated that a tire's average tread life would drop to 
68 percent of the expected tread life if tire pressure dropped from 35 
psi to 17 psi and remained there. Goodyear assumed that this 
relationship was linear. Thus, for every 1-psi drop in tire pressure, 
tread life would decrease by 1.78 percent (32 percent/18 psi). This 
loss of tread life would take place over the lifetime of the tire. 
Thus, according to Goodyear's data, if the tire remained under-inflated 
by 1 psi over its lifetime, its tread life would decrease by about 800 
miles (1.78 percent of 45,000 miles).
    As noted above, data from the NCSA tire pressure survey indicate 
that 26 percent of passenger cars had at least one tire that was under-
inflated by at least 25 percent. The average level of under-inflation 
of the four tires on passenger cars with at least one tire under-
inflated by at least 25 percent was 6.8 psi. Thus, on average, these 
passenger cars could lose about 5,440 miles (6.8 psi under-inflation x 
800 miles) of tread life due to under-inflation, if their tires were 
under-inflated to that extent throughout the life of the tires.
    Also as noted above, data from the NCSA tire pressure survey 
indicate that about 29 percent of light trucks had at least one tire 
that was under-inflated by at least 25 percent. The average level of 
under-inflation of the four tires on light trucks with at least one 
tire under-inflated by at least 25 percent was 8.7 psi. Thus, on 
average, these light trucks could lose about 6,960 miles (8.7 psi 
under-inflation x 800 miles) of tread life due to under-inflation, if 
their tires were under-inflated to that extent throughout the life of 
the tires.
3. Reduced Fuel Economy
    Under-inflation increases the rolling resistance of a vehicle's 
tires and, correspondingly, decreases the vehicle's fuel economy. 
According to a 1978 report, fuel efficiency is reduced by one percent 
for every 3.3 psi of under-inflation.\25\ More recent data provided by 
Goodyear indicate that fuel efficiency is reduced by one percent for 
every 2.96 psi of under-inflation.\26\
---------------------------------------------------------------------------

    \25\ The Aerospace Corporation, Evaluation of Techniques for 
Reducing In-use Automotive Fuel Consumption, June 1978.
    \26\ Docket No. NHTSA-2000-8572-26.
---------------------------------------------------------------------------

    NHTSA notes that there is an apparent conflict between these data, 
which indicate that under-inflation increases rolling resistance and 
thus decreases fuel economy and the previously mentioned Goodyear data 
that indicates under-inflated tires increase a vehicle's stopping 
distance. While an under-inflated tire typically has a larger tread 
surface area (i.e., tire footprint) in contact with the road, which 
might be thought to improve its traction during braking, the larger 
tire footprint also reduces the tire load per unit area. The larger 
footprint does result in an increase in rolling resistance on dry road 
surfaces due to increased friction between the tire and the road 
surface. On dry road surfaces, though, the countervailing effects of a 
larger footprint and reduced load per unit of area nearly offset each 
other, with the result that the vehicle's stopping distance performance 
is only mildly affected by under-inflation on those surfaces. However, 
as explained above in section III.D.1., ``Reduced Vehicle Safety--Tire 
Failures and Increases in Stopping Distance,'' on wet surfaces other 
attributes of under-inflation lead to increased stopping distances.

IV. Tire Pressure Monitoring Systems

    There are currently two types of TPMSs: direct and indirect. Other 
types, including hybrid TPMSs that combine aspects of both direct and 
indirect systems, may be developed in the future. Direct TPMSs directly 
measure the pressure in a vehicle's tires, while indirect TPMSs 
estimate differences in pressure by comparing the rotational speed of 
the wheels. To varying degrees, both types can inform the driver when 
the pressure in one or more tires falls below a pre-determined level. 
Unless the TPMS is connected to an automatic inflation system, the 
driver must stop the vehicle and inflate the under-inflated tire(s), 
preferably to the pressure recommended by the vehicle manufacturer. 
Currently, TPMSs are available as original equipment on a few vehicle 
models. They are available also as after-market equipment, but few are 
sold. At this time, NHTSA does not have any information indicating that 
a hybrid TPMS is being planned for production. However, the agency 
received comments from TRW, a TPMS manufacturer, stating its belief 
that such a system could be produced.
    The VRTC evaluated six direct and four indirect TPMSs that are 
currently available.\27\ The VRTC found that the direct TPMSs were 
accurate to within an average of 1.0 psi.\28\ This leads 
the agency to believe that those current TPMSs are more accurate than 
the systems that were available at the time of the agency s 1981 
rulemaking on TPMSs.
---------------------------------------------------------------------------

    \27\ An Evaluation of Existing Tire Pressure Monitoring Systems, 
May 2001. A copy of this report is available in the docket. (Docket 
No. NHTSA-2000-8572-29.)
    \28\ This is not to say that the systems were able to detect a 
1.0 psi drop in pressure. The systems were accurate within 
1.0 psi once tire pressure had fallen by a certain 
percentage.
---------------------------------------------------------------------------

    Following is a description of the two currently available types of 
TPMSs and their capabilities.

[[Page 38716]]

A. Indirect TPMSs

    Current indirect TPMSs work with a vehicle's ABS. The ABS employs 
wheel speed sensors to measure the rotational speed of each of the four 
wheels. As a tire's pressure decreases, the rolling radius decreases, 
and the rotational speed of that wheel increases correspondingly. Most 
current indirect TPMSs compare the sums of the wheel speeds on each 
diagonal (i.e., the sum of the speeds of the right front and left rear 
wheels as compared to the sum of the speeds of the left front and right 
rear wheels). Dividing the difference of the sums by the average of the 
four wheels speeds allows the indirect TPMS to have a ratio that is 
independent of vehicle speed. This ratio is best expressed by the 
following equation: [(RF + LR) - (LF + RR)/Average Speed]. If this 
ratio deviates from a set tolerance, one or more tires must be over- or 
under-inflated. A telltale then indicates to the driver that a tire is 
under-inflated. However, the telltale cannot identify which tire is 
under-inflated. Current vehicles that have indirect TPMSs include the 
Toyota Sienna, Ford Windstar, and Oldsmobile Alero.
    Current indirect TPMSs must compare the average of the speeds of 
the diagonal wheels for several reasons. First, current indirect TPMSs 
cannot compare the speed of one wheel to the speeds of the other three 
wheels individually or to the average speed of the four wheels. During 
any degree of turning, the outside tires must rotate faster than the 
inside tires. Thus, all four wheel speeds deviate significantly when 
the vehicle is in a curve or turn. If a current indirect TPMS compared 
each individual wheel speed to the average of all four wheels speeds, 
the system would provide a false alarm each time the vehicle rounded a 
curve or made a turn. The same would be true if the indirect TPMS 
compared each individual wheel speed to the speed of the other three 
wheels individually. Since the outside wheels would rotate much faster 
than the inside wheels in a curve or turn, each outside tire would 
appear to be under-inflated when compared to an inside tire.
    Current indirect TPMSs also cannot compare the speeds of the front 
wheels to the speeds of the rear wheels because in curves, the front 
and rear wheels (on both sides of the vehicle) rotate at different 
speeds. This is primarily due to the fact that the front axle is 
steerable and follows a different trajectory than the rear axle. As a 
result, current indirect TPMS must compare a tire from each side and a 
tire from the front and rear axles to factor out the speed difference 
caused by curves and turns. Thus, current indirect TPMSs must compare 
the average speed of the diagonal wheels.
    The VRTC tested four current ABS-based indirect TPMSs. None met all 
the requirements of either alternative proposed in the NPRM. All but 
one did not illuminate the low tire pressure warning telltale when the 
pressure in the vehicle's tires decreased to 20 or 25 percent below the 
placard pressure.\29\ The VRTC determined that since reductions in tire 
diameter with reductions in pressure are very slight in the 15-40 psi 
range, most current indirect TPMSs require a 20 to 30 percent drop in 
pressure before they are able to detect under-inflation. The VRTC also 
concluded that those thresholds were highly dependent on tire and 
loading factors.
---------------------------------------------------------------------------

    \29\ The Continental Teves indirect TPMS on the BMW M3 activated 
the warning telltale at pressures between 9 and 21 percent below the 
placard pressure.
---------------------------------------------------------------------------

    The VRTC also found that none of the tested indirect TPMSs were 
able to detect significant under-inflation when all four of the 
vehicle's tires were equally under-inflated, or when two tires on the 
same axle or two tires on the same side of the vehicle were equally 
under-inflated. However, the VRTC did find that indirect TPMSs could 
detect when two tires located diagonally from each other (e.g., the 
front left and back right tires) became significantly under-inflated.

B. Direct TPMSs

    Direct TPMSs use pressure sensors, located in each wheel, to 
directly measure the pressure in each tire. These sensors broadcast 
pressure data via a wireless radio frequency transmitter to a central 
receiver. The data are then analyzed and the results sent to a display 
mounted inside the vehicle. The type of display varies from a simple 
telltale, which is how most vehicles are currently equipped, to a 
display showing the pressure in each tire, sometimes including the 
spare tire. Thus, direct TPMSs can be linked to a display that tells 
the driver which tire is under-inflated. An example of a vehicle 
equipped with a direct system is the Chevrolet Corvette.
    Since direct TPMSs actually measure the pressure in each tire, they 
are able to detect when any tire or when each tire in any combination 
of tires is under-inflated, including when all four of the vehicle's 
tires are equally under-inflated. Direct TPMSs also can detect small 
pressure losses. Some systems can detect a drop in pressure as small as 
1 psi.

C. Hybrid TPMSs

    In their comments on the NPRM, TRW, a manufacturer of both direct 
and indirect TPMSs, stated that in order to meet the proposed 
requirements of the 3-tire, 25 percent alternative, current indirect 
TPMSs would need the equivalent of the addition of two tire pressure 
sensors and a radio frequency receiver. The tire pressure sensors would 
be installed on wheels located diagonally from each other.
    For the following reasons, the agency believes that such a 
``hybrid'' TPMS would be able to overcome the limitations of current 
indirect TPMSs, i.e., the inability to detect when all four tires, or 
two tires on the same axle or same side of the vehicle are under-
inflated. First, a hybrid TPMS would be able to detect when two tires 
on the same axle or the same side of the vehicle were under-inflated 
because one of those tires necessarily would contain a direct pressure 
sensor. Second, a hybrid TPMS would be able to detect when the two 
tires without a direct pressure sensor were under-inflated because they 
would be located diagonally from each other, and, as the VRTC found in 
its review of current TPMSs, current indirect TPMSs are able to detect 
when two tires located diagonally from each other are under-inflated. 
Third, a hybrid TPMS would be able to detect when three or four tires 
were under-inflated because one of those tires necessarily would 
contain a direct pressure sensor.
    However, since the agency does not have any information indicating 
that a hybrid TPMS is currently being planned for production, the 
agency does not know when such a system could be produced.

V. Summary of Preliminary Determination About the Final Rule

    In this section, NHTSA summarizes its preliminary determination 
about the final rule that was submitted to OMB in December 2001.

A. Alternative Long-Term Requirements Analyzed in Making Preliminary 
Determination

    For purposes of the preliminary determination, the agency analyzed 
three alternatives. The first alternative (four tires, 20 percent) 
would have required a vehicle's TPMS to warn the driver when the 
pressure in any single tire or in each tire in any combination of 
tires, up to a total of four tires, fell to 20 percent or more below 
the placard pressure, or a minimum level of pressure specified in the 
standard, whichever pressure was higher. The

[[Page 38717]]

second alternative (three tires, 25 percent) would have required a 
vehicle's TPMS to warn the driver when the pressure in any single tire 
or in each tire in any combination of tires, up to a total of three 
tires, fell to 25 percent or more below the placard pressure, or a 
minimum level of pressure specified in the standard, whichever pressure 
was higher. The third alternative (four tires, 25 percent) combined 
aspects of the first two alternatives. It would have required a 
vehicle's TPMS to warn the driver when the pressure in any single tire 
or in each tire in any combination of tires, up to a total of four 
tires, fell to 25 percent or more below the placard pressure, or a 
minimum level of pressure specified in the standard, whichever pressure 
was higher. The minimum levels of pressure specified in the standard 
would have been the same for all three alternatives.
    The agency estimated that the four-tire, 20 percent alternative 
would have prevented from 141 to 145 fatalities and prevented or 
reduced in severity from 10,271 to 10,611 injuries per year.\30\ The 
agency estimated that the average net cost of this alternative would 
have been from $76.77 to $77.53 per vehicle.\31\ Since approximately 16 
million vehicles are produced for sale in the United States each year, 
the total annual net cost of this alternative would have been from 
$1.228 billion to $1.241 billion. The net cost per equivalent life 
saved would have been from $5.1 million to $5.3 million.
---------------------------------------------------------------------------

    \30\ NHTSA assumed that drivers would respond differently to 
different information displays. To get the upper bound, the agency 
assumed that manufacturers that installed direct TPMSs would also 
install a display showing the pressure of each tire. Currently only 
direct TPMSs are capable of displaying individual tire pressure. The 
agency also assumed that 33 percent of drivers would respond to such 
a display by re-inflating their tires when they became under-
inflated by 10 percent, and that the other 67 percent would respond 
by re-inflating their tires when they became under-inflated by 20 
percent, i.e., when the warning telltale would have been activated. 
To get the lower bound, the agency assumed that manufacturers would 
install only a low tire pressure warning telltale, as would have 
been required. Thus, all drivers would not re-inflate their tires 
until they became under-inflated by 20 percent, and the warning 
telltale was activated.
    \31\ The net cost is the vehicle cost plus the maintenance cost 
minus the fuel and tread wear savings. The difference in costs is 
due to the cost of adding an individual tire pressure display. The 
agency assumed that manufacturers would install direct TPMSs on 
vehicles that are not equipped with ABS because the cost of adding a 
direct TPMS was significantly less than the cost of adding ABS and 
an indirect TPMS.
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    The agency estimated that the three-tire, 25 percent alternative 
would have prevented 110 fatalities and prevented or reduced in 
severity 7,526 injuries per year. The agency estimated that the average 
net cost would have been $63.64 per vehicle, and the total annual net 
cost would have been $1.018 billion. The net cost per equivalent life 
saved would have been $5.8 million.
    The agency estimated that the four-tire, 25 percent alternative 
would have prevented 124 fatalities and prevented or reduced in 
severity 8,722 injuries per year. The agency estimated that the average 
net cost would have been $53.87 per vehicle, and the total annual net 
cost would have been $862 million. The net cost per equivalent life 
saved would have been $4.3 million.
    The agency noted that the vehicle costs of these alternatives could 
be reduced in the future as manufacturers learned how to produce TPMSs 
more efficiently. Moreover, maintenance costs could be significantly 
reduced in the future if manufacturers could mass produce a direct TPMS 
that did not require the pressure sensors to be replaced when the 
batteries are depleted.\32\
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    \32\ One TPMS manufacturer, IQ-mobil Electronics of Germany, 
indicated in its comments that it has developed a pressure sensor 
that does not require a battery.
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    NHTSA considered these three alternatives because the agency 
believed that TPMSs that complied with these alternatives would warn 
drivers of significantly under-inflated tires in a wide variety of 
reasonably foreseeable circumstances, including when more than one tire 
was significantly under-inflated. The agency also believed that 
improved indirect TPMSs could be developed to meet the requirements of 
the three-tire, 25 percent alternative and hybrid TPMSs could be 
developed to meet the three-tire, 25 percent and four-tire, 25 percent 
alternatives. Thus, the agency believed that these alternatives would 
provide an effective warning while striking a reasonable balance 
between encouraging further improvements in TPMS technology and 
stringency of the performance requirements and striking a reasonable 
balance between safety benefits and costs.

B. Phase-In and Long-Term Requirements

    To facilitate compliance, the preliminary determination specified a 
four-year phase-in schedule,\33\ During the phase-in, i.e., between 
November 1, 2003 and October 31, 2006, it would have allowed compliance 
with either of two options: a four-tire, 25 percent option or a one-
tire, 30 percent option. Under the first option, a vehicle's TPMS would 
have had to warn the driver when the pressure in one or more of the 
vehicle's tires, up to a total of four tires, was 25 percent or more 
below the placard pressure, or a minimum level of pressure specified in 
the standard, whichever pressure was higher. Under the second option, a 
vehicle's TPMS would have had to warn the driver when the pressure in 
any one of the vehicle's tires was 30 percent or more below the placard 
pressure, or a minimum level of pressure specified in the standard, 
whichever pressure was higher. The minimum levels of pressure specified 
in the standard were the same for both compliance options.
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    \33\ The phase-in schedule was as follows: 10 percent of a 
manufacturer's affected vehicles would have had to comply with 
either compliance option in the first year; 35 percent in the second 
year; and 65 percent in the third year. In the fourth year, 100 
percent of a manufacturer's affected vehicles would have had to 
comply with the long-term requirements, i.e., the four-tire, 25 
percent compliance option.
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    Under both options, the preliminary determination would have 
required the low tire pressure warning telltale to remain illuminated 
as long as any one of the vehicle's tires remained significantly under-
inflated, and the key locking system was in the ``On'' (``Run'') 
position. The telltale could have been deactivated automatically only 
when all of the vehicle's tires ceased to be significantly under-
inflated, or manually in accordance with the vehicle manufacturer's 
instructions.
    The preliminary determination would have required each TPMS to be 
compatible with all replacement or optional tires (but not rims) of the 
size(s) recommended for use on the vehicle by the vehicle manufacturer. 
It would also have required that the telltale perform a bulb-check at 
vehicle start-up. It specified written instructions explaining the 
purpose of the low tire pressure warning telltale, the potential 
consequences of significantly under-inflated tires, the meaning of the 
telltale when it was illuminated, and what actions drivers should take 
when the telltale is illuminated, to be placed in the vehicle's owner's 
manual.
    The preliminary determination would not have required TPMSs to 
monitor the spare tire, either when the tire was stowed or when it was 
installed on the vehicle. It also would not have required the TPMS to 
indicate a system malfunction.
    The agency created the one-tire, 30 percent option so that vehicle 
manufacturers could continue to install current indirect TPMSs for 
several more years, thus providing additional time and flexibility for 
innovation and technological development. The agency created the other 
option by adjusting the definition of ``significantly under-inflated'' 
for the four-tire option to 25 percent (instead of 20 percent) so that

[[Page 38718]]

improved indirect TPMSs and hybrid TPMSs could be used to comply with 
the TPMS standard. After the phase-in, i.e., after October 31, 2006, 
the second option would have been terminated, and the provisions of the 
first option would have become mandatory for all new vehicles.
    The agency tentatively believed that a four-tire, 25 percent 
requirement was preferable for the long-term because it would require 
TPMSs that warn drivers about all combinations of significantly under-
inflated tires and provide more timely and effective warnings. The 
agency tentatively believed that a one-tire, 30 percent requirement 
would allow TPMSs that do not warn about all combinations of 
significantly under-inflated tires and do not provide warnings until 
the extent of under-inflation reaches 30 percent below the placard 
pressure. Thus, it appeared that a four-tire, 25 percent requirement 
would better fulfill the purposes of the TPMS mandate in the TREAD Act, 
while encouraging further improvements in TPMS technology.

VI. Response to Issues Raised in OMB Return Letter About 
Preliminary Determination

    Pursuant to section 6(a)(3) of Executive Order 12866, NHTSA is 
required to provide a written response to the points made by OMB in its 
February 12 return letter. As noted above, OMB stated in its return 
letter that: NHTSA should base its decision about the final rule on 
overall safety, instead of tire safety; while direct TPMSs can detect 
under-inflation under a greater variety of circumstances than indirect 
TPMSs, the indirect system captures a substantial portion of the 
benefit provided by direct systems; NHTSA should consider a fourth 
alternative for the long-term requirement, a one-tire, 30 percent 
compliance option, indefinitely, since it would allow vehicle 
manufacturers to install current indirect TPMSs; NHTSA, in analyzing 
long-term alternatives, should consider both their impact on the 
availability of ABS as well as the potential safety benefits of ABS; 
and that NHTSA should provide a better explanation of the technical 
foundation for the agency's safety benefits estimates and subject those 
estimates to sensitivity analyses.

A. Criteria for Selecting the Long-Term Requirement

1. Tire Safety and Overall Vehicle Safety
    OMB stated in its return letter that ``a rule permitting indirect 
systems may provide more overall safety than a rule that permits only 
direct or hybrid systems.'' OMB said:

    Although direct systems are capable of detecting low pressure 
under a greater variety of circumstances than indirect systems, the 
indirect system captures a substantial portion of the benefit 
provided by direct systems. Moreover, allowing indirect systems will 
reduce the incremental cost of equipping vehicles with anti-lock 
brakes, thereby accelerating the rate of adoption of ABS technology 
* * *. Both experimental evidence and recent real-world data have 
indicated a modest net safety benefit from anti-lock brakes.

    While NHTSA's general obligation under the Vehicle Safety Act is to 
improve overall vehicle safety, it is mindful that its specific, 
immediate obligation in this rulemaking is to comply with the mandate 
of section 13 of the TREAD Act. The agency is seeking to comply with 
the mandate and safety goals of the TREAD Act in a way that encourages 
innovation and allows a range of technologies to the extent consistent 
with providing drivers with sufficient warning of low tire pressure 
under a broad variety of the reasonably foreseeable circumstances in 
which tires become under-inflated.
2. Statutory Mandate
    Section 13 of the TREAD Act mandated the completion of ``a 
rulemaking for a regulation to require a warning system in new motor 
vehicles to indicate to the operator when a tire is significantly under 
inflated'' within one year of the TREAD Act's enactment. As noted 
below, the agency tentatively believes, based on the current record, 
that a four-tire, 25 percent under-inflation requirement would best 
meet the mandate.

B. Relative Ability of Direct and Current Indirect TPMSs To Detect 
Under-Inflation

    As noted above, current indirect TPMSs work, in part, by adding the 
speeds of diagonal sets of tires and subtracting the sum of one set 
from the sum of the other. As a result, if all four tires are 
significantly under-inflated, and the difference in the tire pressures 
is not 30 percent or greater, current indirect TPMSs will not provide a 
warning. Similarly, if two tires on the same axle or same side of the 
vehicle are significantly under-inflated, current indirect TPMSs will 
not provide a warning.
    These combinations of significantly under-inflated tires occur 
frequently enough that current indirect TPMSs would have provided a 
warning in only about 50 percent of the instances in which NHTSA found 
significant under-inflation in the February 2001 NCSA survey. 
Conversely, current direct TPMSs would have provided warnings in all 
those instances.
    The following figures indicate how often current direct and 
indirect TPMSs would provide warnings when a vehicle has at least one 
tire that is at least 30 percent below the placard pressure.
    Of the 5,967 passenger cars in the February 2001 NCSA survey, 1,199 
(20 percent) had at least one tire that was at least 30 percent below 
the placard pressure. Current direct TPMSs would have provided a 
warning in every case, while current indirect TPMSs would have provided 
a warning in only 653 cases (54 percent).
    Of the 3,950 light trucks in the NCSA survey, 789 (20 percent) had 
at least one tire that was at least 30 percent below the placard 
pressure. Current direct TPMSs would have provided a warning in every 
case, while current indirect TPMSs would have provided a warning in 
only 359 cases (46 percent).
    Thus, of the total 9,917 passenger cars and light trucks in the 
NCSA survey, 1,988 (20 percent) had at least one tire that was at least 
30 percent below the placard pressure. Current direct TPMSs would have 
provided a warning in every case, while current indirect TPMSs would 
have provided a warning in only 1,012 cases (51 percent).
    Current indirect TPMSs would have failed to provide a warning in 
the remainder of the cases for various reasons. Many of the vehicles 
had one tire that was 30 percent below the placard pressure, but not 30 
percent below the pressure in the other tires. As noted above, current 
indirect TPMSs require at least a 30 percent differential in tire 
pressure before providing a warning. Other vehicles had more than one 
tire that was 30 percent below the placard pressure. As noted above, 
current indirect TPMSs cannot detect when all four of a vehicle's 
tires, or two tires on the same side of the vehicle or the same axle, 
are under-inflated.
    The absence of a warning in approximately 50 percent of the 
instances of significant under-inflation is a matter of concern given 
that many drivers will rely on a TPMS instead of regularly checking 
their tire pressure. Data from the July 2001 BTS omnibus survey 
indicate that 65 percent of people would be less concerned, to either a 
great extent or a very great extent, with routinely maintaining the 
pressure of their tires if their vehicle were equipped with a TPMS.\34\
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    \34\ NHTSA notes that in its prepared statement submitted in 
connection with the February 28, 2002 hearing before the House 
Committee on Energy and Commerce on the TREAD Act, OMB stated: The 
1-tire standard will provide warnings when 1 tire is underinflated 
but will not necessarily detect situations when 2 or more tires are 
underinflated. A further weakness of the 1-tire standard is that 
consumers may misperceive that their tires are fine (since the 
warning light is off) when in fact all four of their tires are 
equally underinflated. The 4-tire standard overcomes these problems.

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[[Page 38719]]

C. Analysis of a Fourth Alternative Long-Term Requirement: One-Tire, 30 
Percent Under-Inflation Detection

    As explained above in section V.A., ``Alternative Long-Term 
Requirements Analyzed in Making Preliminary Determination,'' NHTSA 
analyzed three alternatives: a four-tire, 20 percent alternative; a 
three-tire, 25 percent alternative and a four-tire, 25 percent 
alternative.
    OMB recommended that the agency analyze a fourth alternative that 
would require a vehicle's TPMS to warn the driver when the pressure in 
any one of the vehicle's tires is 30 percent or more below the vehicle 
manufacturer's recommended cold inflation pressure for the tires, or a 
minimum level of pressure specified in the standard, whichever pressure 
is higher. (This alternative is referred to below as the ``one-tire, 30 
percent alternative.'') The agency's analysis of the benefits and costs 
of this alternative follows.
    The agency estimates that the one-tire, 30 percent alternative 
would prevent 79 fatalities and prevent or reduce in severity 5,176 
injuries. The agency estimates that the average per vehicle cost of 
this alternative would be $33.34. Since approximately 16 million light 
vehicles are produced for sale in the United States each year, the 
total annual cost of this alternative would be $533 million. The agency 
estimates that the average per vehicle maintenance cost would be 
$13.50,\35\ and that the average per vehicle fuel and tread life 
savings over the lifetime of the vehicle would be $2.06 and $0.65, 
respectively. Thus, the net per vehicle cost of this alternative would 
be $44.13, and the total annual net cost would be $706 million. The net 
cost per equivalent life saved would be $5.8 million.
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    \35\ If the one-tire, 30 percent alternative were the only 
alternative available to vehicle manufacturers, the agency 
anticipates that the approximately \1/3\ of vehicles not equipped 
with ABS would nevertheless comply by means of direct TPMSs. The 
approximately $40.91 of maintenance costs for each of those 
vehicles, if averaged over the entire fleet, is approximately 
$13.50.
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D. Impact of One-Tire, 30 Percent Alternative on Installation Rate of 
ABS

    OMB said that NHTSA should analyze the impact of adopting its long-
term regulatory alternatives as well as an additional long-term 
alternative, a one-tire, 30 percent alternative, on the installation 
rate of ABS. Since the additional alternative is the only one that 
would permit compliance by means of installing current indirect TPMSs, 
and since OMB's suggestion that a TPMS standard could induce increased 
installation of ABS is dependent upon the manufacturers' being able to 
install that type of TPMS, NHTSA's analysis focuses on that 
alternative.
    The agency believes there is no reliable basis for concluding that 
permitting current indirect TPMSs to comply would lead to a significant 
increase in installation of ABS in light vehicles for the following 
reasons.
    First, the final rule does not mandate the installation of ABS. 
Vehicle manufacturers always have the option of providing a measure 
that exceeds NHTSA's standards. However, nothing in the final rule 
requires manufacturers to install ABS.
    Second, the rulemaking record does not contain a reliable basis for 
concluding that manufacturers will voluntarily install ABS in 
significantly more light vehicles in response to being permitted to 
install current indirect TPMSs. When the Alliance addressed the issue 
of increased voluntary installation of ABS in its September 6, 2001 
comments, it said only that a manufacturer ``may well'' opt to make ABS 
standard equipment on models for which optional ABS is currently 
available and is currently in high market demand. Further, only one 
manufacturer, Toyota, indicated that it might make ABS standard 
equipment on more vehicles if indirect TPMSs were allowed. Toyota 
provided this indication not in its written comments, but orally in a 
meeting with the agency. Nothing requires Toyota to make ABS standard 
equipment.
    Third, several manufacturers orally indicated that they would not 
install ABS on their light trucks even if indirect TPMSs were allowed. 
General Motors (GM) and Ford told NHTSA that they would install a 
direct TPMS on their trucks, rather than a four-channel ABS and 
indirect TPMS, because ABS was significantly more expensive. Further, 
the agency notes that in April 2002, GM announced that it would cease 
offering ABS as standard equipment on a number of its less expensive 
models of cars to make those models more price competitive.
    Fourth, it is not economically reasonable for manufacturers to 
install ABS voluntarily on significantly more vehicles in response to 
being permitted to install current indirect TPMSs. In the absence of 
written comments from individual manufacturers indicating that they are 
very likely to increase voluntarily their installation of ABS if 
allowed to install current indirect TPMSs, NHTSA may not simply assume 
that manufacturers will elect to spend $240 per vehicle to install ABS 
to save $53, the difference between the cost of a direct TPMS ($66) and 
an indirect TPMS ($13). The market for ABS has been static for several 
years, with the installation rate at about 63 percent. Absent a market 
demand for more installations, a manufacturer would not gain a market 
advantage by increasing the percentage of its vehicles with ABS.
    In NHTSA's Final Economic Assessment (FEA), the agency states that 
although a manufacturer may elect to increase the installation of ABS, 
it is solely a marketing decision.\36\ The influence, if any, this 
rulemaking might have on their marketing decisions is purely 
speculative. There are many factors that influence a manufacturer's 
decision to install equipment. Cost impact is only one of them.
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    \36\ A copy of the FEA has been placed in the docket.
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E. Overall Safety Effects of ABS

    In addition to recommending that the agency assume that the 
adoption of the one-tire, 30 percent compliance option would induce 
vehicle manufacturers to increase their installation of ABS, OMB also 
recommended that the agency take into account the potential safety 
benefits of ABS when estimating the benefits of that option. OMB 
suggested that ABS could reduce fatalities in light vehicles.
    NHTSA has analyzed ABS and has determined that there is currently 
no statistically reliable basis for concluding that ABS reduces 
fatalities in light vehicles for the following reasons.
    First, NHTSA has analyzed the impacts of ABS on light vehicle 
fatalities for the past decade, with mixed findings.\37\ In general, 
test track results indicate that ABS is a very promising technology 
that enables drivers to keep vehicles under control under adverse road 
conditions. Under some pavement conditions, ABS allows the driver to 
stop a vehicle more rapidly while maintaining steering control, even 
during panic braking.
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