Dailey Body Company; Application for Temporary Exemption From Federal Motor Vehicle Safety Standard No. 121

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA 99-5287; Notice 1]

Dailey Body Company; Application for Temporary Exemption From

Federal Motor Vehicle Safety Standard No. 121

We are asking comments from the public on the application by Dailey

Body Company of Oakland, California, that five trailers be exempted

from Motor Vehicle Safety Standard No. 121 Air Brake Systems. The

statutory basis for this request is that ``compliance would cause

substantial economic hardship to a manufacturer that has tried in good

faith to comply with the standard.'' 49 U.S.C. 30113.

We are publishing this notice of receipt of the application in

accordance with our regulations on temporary exemptions. This does not

represent any judgment by us about the merits of the application.

The discussion below is based upon the information that Dailey

provided in its application.

Why Dailey Needs an Exemption

Dailey is requesting an exemption for five ``special reel hauling''

trailers that it was unable to complete before March 1, 1998, because

of changes requested by its customer, Pacific Gas & Electric Co.,

(PG&E) during construction of the trailers. On March 1, 1998, an

amendment to Federal Motor Vehicle Safety Standard No. 121 Air Brake

[[Page 13844]]

Systems became effective, requiring these trailers to be equipped with

an anti-lock brake system. According to the company, there is no after

market kit available to convert the air-over-hydraulic brake system to

meet the new requirements of S5.1.6.

Why Compliance Would Cause Dailey Substantial Economic Hardship

Since there is no aftermarket kit available to convert the trailers

to a conforming brake system, Dailey would be unable to sell them

absent an exemption. It has $250,000 of its operating capital tied up

in the trailers, and would have to absorb the loss. This figure is

almost equal to its combined net income for the years 1996 and 1997,

$252,519.

How Dailey Tried in Good Faith to Comply With Standard No. 121

Dailey's total trailer production in the 12-month period preceding

the filing of its application was 43. It was also the final-stage

manufacturer and certifier of 938 ``chassis with bodies.'' Other than

the five trailers for which it requests exemption, its trailers

manufactured since March 1, 1998, comply with Standard No. 121.

Why an Exemption for Dailey Would Be in the Public Interest and

Consistent With the Objectives of Motor Vehicle Safety

Dailey believes that it would be in the public interest ``to keep

from imposing a hardship, that could adversely affect employment, on a

company that has been successfully building truck body equipment for

over 50 years.'' Because only five trailers will be exempted, the risk

to the public will be small. The trailers were manufactured to conform

with regulations that existed at the time production was scheduled.

How To Comment on Dailey's Application

We invite written comments on Dailey's application. Please send

them in two copies, referring to the docket and notice number, to:

Docket Management, National Highway Traffic Safety Administration, room

PL-401, 400 Seventh Street, SW, Washington, DC 20590. We shall consider

all comments received before the close of business on the comment

closing date below. Comments will be available for examination in the

docket at the above address both before and after that date, between

the hours of 10 a.m. and 5 p.m. To the extent possible, we will also

consider comments filed after the closing date. When the Administrator

has made a decision, we shall publish it in the Federal Register.

Comment closing date: April 21, 1999.

Authority: 49 U.S.C. 30113; delegations of authority at 49 CFR

1.50 and 501.4.

Issued on: March 16, 1999.

L. Robert Shelton,

Associate Administrator for Safety Performance Standards.

[FR Doc. 99-6845 Filed 3-19-99; 8:45 am]

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