Interpretation ID: nht79-3.15

DATE: 08/27/79

FROM: AUTHOR UNAVAILABLE; Frank Berndt; NHTSA

TO: Mr. William Lynch

TITLE: FMVSS INTERPRETATION

TEXT: This responds to the questions you raised with Ms. Debra Weiner of my office when you telephoned on June 19 with regard to your intention to establish a business for the manufacture of 53.6 gallon replacement gasoline tanks and for the installation of these tanks in used Cadillac limousines. You specifically asked what Federal law is applicable to your proposed activities and whether any Federal law establishes a maximum allowable capacity for gasoline tanks.

The National Traffic and Motor Vehicle Safety Act of 1966, as amended (the Act) authorizes the National Highway Traffic Safety Administration (NHTSA) to issue Federal Motor Vehicle Safety Standards (FMVSS's) applicable either to entire vehicles or to equipment for installation in vehicles. FMVSS 301-75, Fuel System Integrity, (see enclosed copy) is a vehicle standard applicable to passenger cars and other vehicles which requires that fuel spillage occurring during and after any crash of the vehicle into a fixed or moving barrier not exceed established limits. As explained below, this standard indirectly affects both the installation and manufacture of replacement gasoline tanks.

Section 108(a)(2)(A) of the Act prohibits certain entities and persons from knowingly removing, disconnecting, or reducing the performance of equipment or elements of design installed on a vehicle in accordance with applicable FMVSS's. Specifically, the section provides:

No manufacturer, distributor, dealer or motor vehicle repair business shall knowingly render inoperative, in whole or part, any device or element of design installed on or in a motor vehicle or item of motor vehicle equipment in compliance with an applicable Federal motor vehicle safety standard . . .

A person or entity found to have violated this section would be liable for a civil penalty of up to $ 1,000 for each violation. (Section 109 of the Act).

If a person or entity listed in section 108(a)(2)(A) removes the original gasoline tank from a used vehicle and installs a replacement tank, the section is violated unless the performance (as defined by FMVSS 301-75) of the replacement tank equals or exceeds the performance of the original tank. To determine the relative performance of the replacement tank, a number of issues would have to be examined, including the quality of the replacement tank, the connection of the tank with the filler pipe and fuel lines to the fuel pump, and the location of the tank with respect to surrounding vehicle structures. For example, if unlike the original tank, the replacement tank were sufficiently near surrounding vehicle structures so that those structures might be more readily pushed against or into the replacement tank and cause a rupture in a collision, the performance of the fuel system would have been impermissibly reduced.

Consequently, as a manufacturer of replacement gasoline tanks, you could be liable for a penalty under section 108(a)(2)(A) if you replace the gasoline tank in a used Cadillac limousine with one of your tanks, knowing that the performance of the replacement tank as installed would be inferior to that of the original tank.

Please note that should you decide to install your tanks in new vehicles prior to their first sale for purposes other than resale, you would also be required to certify that the vehicle as altered still complied with all applicable Federal motor vehicle safety standards. Should these provisions become relevant to your business, I would be happy to provide further information.

Sections 151-155 of the Act, which are enclosed, would also apply to your activities as a manufacturer of gasoline tanks. These sections provide that if the agency or you find that your tanks contain a safety-related defect, you would be required to notify purchasers of the hazard and to remedy the defect. Under sections 108(a)(1)(D) and 109(a) of the Act, any person who fails to provide notification of or remedy for a safety defect is liable for a civil penalty of up to $ 1,000 per violation.

I would like to point out that, in addition to the Federal law discussed above, there may be state products liability law applicable to your proposed activities. As a manufacturer of gasoline tanks you could be liable for their design, materials, manufacture or performance. As an installer of gasoline tanks you could be liable for the manner and location in which the tanks are installed. Therefore, you may wish to consult a local lawyer before starting your new business.

Finally, with respect to your inquiry about a maximum allowable capacity for gasoline tanks, neither the National Highway Traffic Safety Administration nor the Department of Transportation as a whole has established such a limit.

I hope that you will find this response helpful.