Interpretation ID: nht93-7.36

DATE: October 22, 1993

FROM: John Womack -- Acting Chief Counsel, NHTSA

TO: Richard A. Wennerberg -- Vice President, Marketing Services, American Gas Association

TITLE: None

ATTACHMT: Letter dated 8/19/93 from Richard A. Wennerberg to John Womack (OCC-9019)

TEXT:

This responds to your request for a letter explaining the status of Federal regulations applicable to compressed natural gas (CNG) containers for motor vehicles and CNG fueled motor vehicles. As you stated, representatives of the National Highway Traffic Safety Administration (NHTSA), an agency of the United States Department of Transportation, met with the American Gas Association (AGA) on August 16, 1993 to clarify your understanding of this agency's statutory authority with respect to the notice of proposed rulemaking for CNG fuel containers and vehicles using CNG as a fuel. (58 FR 5323, January 21, 1993) This letter, which you plan to forward to State officials interested in CNG fueled motor vehicles, summarizes this information.

By way of background information, NHTSA is authorized under the National Traffic and Motor Vehicle Safety Act (15 U.S.C. S1381 et seq.; Safety Act) to issue Federal motor vehicle safety standards that set performance requirements for new motor vehicles and items of motor vehicle equipment. The Research and Special Programs Administration (RSPA), another agency of the U.S. Department of Transportation, is authorized by Congress to issue standards for containers, including CNG containers, used to transport hazardous materials. RSPA does not have the statutory authority to issue a standard for CNG containers that are used to fuel a motor vehicle. Therefore, if the Federal government were to issue a standard applicable to the manufacture of CNG containers designed to fuel a motor vehicle, NHTSA is the only Federal agency authorized to do so.

At present, NHTSA has not issued any standard applicable to CNG containers, CNG fueled vehicles or any regulation dealing with the conversion of vehicles to be equipped with such containers. Therefore, until such time as a standard is issued, a manufacturer is not required to comply with any NHTSA or Department of Transportation safety standard related to CNG fuel systems.

Nevertheless, manufacturers of CNG containers and vehicles are subject to the requirements in sections 151-159 of the Safety Act concerning the recall and remedy of products with defects related to motor vehicle safety. In the event that NHTSA or the manufacturer of the container or vehicle determines that the product contains a safety-related defect, the manufacturer would be responsible for notifying purchasers of the defective equipment and remedying the problem free of charge.

In addition, NHTSA has certain restrictions on vehicle fuel system conversions, depending on who does the conversion and when the work is done.

I have enclosed a discussion that sets forth the implications under our present regulations of converting new and used gasoline-powered vehicles to use propane or other gas (such as CNG). That discussion addresses NHTSA's vehicle alterer requirements (49 CFR S567.7) which apply to work on new vehicles, and the Safety Act's "render inoperative" provision (S108(a)(2)(A)), which applies to work on new and used vehicles. Section 108(a)(2)(A) prohibits vehicle manufacturers, distributors, dealers and repair businesses from "knowingly rendering inoperative, in whole or in part, any device or element of design installed ... in compliance" with any FMVSS. If the agency were to ultimately decide to adopt the proposal, it would be necessary for NHTSA to revisit the "render inoperative" issues that relate to vehicle conversions. For example, if NHTSA were to issue a safety standard for CNG containers, all containers manufactured after the effective date of the standard would be required to comply with its requirements, whether they are placed on new vehicles or on new or used vehicles converted to CNG fuel.

In addition to these current regulatory provisions, as mentioned above, NHTSA issued a proposed rule for CNG containers and vehicles using CNG as a fuel. As we explained at the August 16, 1993 meeting, the agency is currently reviewing the comments to the proposal for CNG containers and vehicles using CNG as a fuel. We expect our next regulatory decision in early 1994. As we explained, the January 1993 notice was a proposal and does not necessarily reflect the precise requirements that will be contained in the final rule, assuming that a rule is issued.

If a Standard is issued, each manufacturer would be responsible for certifying that its products meet with the requirements of that standard. This is so because the "Safety Act" establishes a "self-certification" process under which each manufacturer is responsible for certifying that its products meet all applicable safety standards. NHTSA does not, however, approve or certify any vehicles or items of equipment. NHTSA also investigates safety-related defects in motor vehicles and items of motor vehicle equipment.

You should also be aware that the Federal Highway Administration (FHWA) of this Department has operational and equipment requirements for commercial vehicles used in interstate commerce. For information about possible FHWA requirements affecting your conversions, you can contact that agency's Chief Counsel's office at (202) 366-0650.

I hope you find this information helpful. If you have any other questions, please contact Marvin Shaw at this address or by phone at (202) 366-2992.