Products Liability Law Daily Wrap Up, FINAL RULES—TEMPORARY EXEMPTIONS—NHTSA expands discretion over temporary exemptions, (Jul 31, 2026)

By WK Editorial Staff

Exemptions are no longer restricted to vehicles manufactured on or after the exemption’s effective date.

The National Highway Traffic Safety Administration issued an interim final rule amending its regulations governing temporary exemptions from Federal Motor Vehicle Safety Standards (FMVSS) and bumper standards. The rule revises 49 C.F.R. Part 555 to remove language limiting exemptions to vehicles manufactured on or after the effective date of an exemption and aligns the regulation with the agency’s statutory authority to determine which vehicle populations may be covered by a temporary exemption. The rule also eliminates a requirement that exemption applications be submitted in triplicate and instead requires electronic submission. The interim final rule takes effect immediately, although NHTSA is accepting public comments and plans to issue a final rule after reviewing them. Comments are due by August 31, 2026 (NHTSA Interim final rule; request for comments, 91 Fed. Reg. 48307 (July 31, 2026)).

Background. Federal law generally prohibits the manufacture, sale, importation, or introduction into interstate commerce of noncompliant motor vehicles unless a statutory exception applies. Under 49 U.S.C. § 30113, NHTSA may grant temporary exemptions when doing so is consistent with the public interest and the objectives of the National Traffic and Motor Vehicle Safety Act. The agency must also find that at least one statutory criterion is met, such as economic hardship, facilitation of new safety technologies, support for low-emission vehicles, or an overall safety level comparable to nonexempt vehicles.

Exemption authority. The interim final rule amends 49 C.F.R. § 555.7(f), which previously stated that temporary exemptions applied only to vehicles manufactured on and after the effective date of the exemption. NHTSA said that restriction does not reflect the best reading of the governing statute because Congress did not limit the agency’s authority in that manner. The agency said the revision codifies the Administrator’s discretion to exempt previously manufactured vehicles when consistent with statutory requirements. NHTSA is retaining its general policy against using exemptions to excuse prior violations involving noncompliant vehicles. The agency said requests involving previously manufactured vehicles will continue to be reviewed individually.

FAST Act vehicles. The agency noted that the change may be particularly relevant for vehicles operating under a provision of the Fixing America’s Surface Transportation (FAST) Act that allows certain manufacturers to place noncompliant vehicles on public roads for testing or evaluation. NHTSA said manufacturers may seek temporary exemptions for such vehicles, creating a pathway for uses beyond testing and evaluation. If an exemption is granted under Section 30113, the vehicle would no longer be subject to the FAST Act testing restriction and could potentially be used for other purposes, including sale if permitted by the exemption’s terms.

Certification requirements. NHTSA said that existing certification and labeling requirements for exempted vehicles remain unchanged. Vehicles granted exemptions, whether manufactured before or after an exemption becomes effective, must continue to comply with applicable certification and labeling provisions, subject to any specific terms and conditions attached to the exemption. The agency also stated that, for purposes of calculating annual sales limits under an exemption, previously manufactured vehicles will be counted in the 12-month period in which they are sold rather than when they were produced.

Application process. The interim final rule removes the requirement that applicants submit three copies of an exemption petition and instead requires electronic submission by email. NHTSA said the change is intended to reduce paperwork burdens and streamline internal review of exemption requests.

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