National Association of Auto Dealers
on Non-conforming Vans

March 14, 1996

(From): National Automobile Dealers Association 8400 Westpark Drive McLean, VA 22102 Legal & Regulatory Group

(To): Docket Section National Highway Traffic Safety Administration (NHTSA) Room 5109 400 Seventh St., SW Washington, DC 20590

Re: Vans As School Buses; 40 CFR Part 571; Docket No. 95-98-No. 1

The National Automobile Dealers Association (NADA) is a national trade association of 20,000 franchised automobile and truck dealerships involved in the retail sale of new and used motor vehicles, both foreign and domestically produced. NADA members also engage in automotive service, repair and parts sales.

Late last year, NHTSA issued a notice announcing a public meeting on school bus and school transportation issues. 60 Fed. Reg. 66953, et seq. (December 27, 1995). While NADA was able to attend the February 14, 1996, meeting, it was unable to make an oral statement as originally planned. Instead, NADA offers the following comments and suggestions.

Under NHTSA's existing regulations, buses are motor vehicles designed to carry more than 10 persons and school buses are buses sold or introduced into commerce "for purposes that include carrying students to and from school or to related events." 49 CFR Part 571.3. USC 30125; Pub. L. No. 89-563. pp. 201-3, 88 Stat. 1484-5 (1974). While some of NADA's American Truck Dealer members (1,900 medium and heavy duty truck dealers) occasionally are involved in school bus transactions involving larger buses, the Association's primary concerns involve smaller buses, and in particular, vans. These smaller school buses, usually referred to as "Type A," are those with GVWRs of 10,000 lbs. and with 11 to 20 seating positions.

During the more than 20 years this law has been in effect, dealers have played an important role in identifying prospective purchasers or leasees of new large vans having the requisite intent necessary to trigger the use-based "introduction into commerce" school bus restriction. NHTSA has assisted immensely with this task by issuing any number of letter opinions and fact sheets addressing issues such as:

* what is and what is not a "school," * what are and what are not "related events," and * the Federal restriction's application to used vehicles, loaners, daily rentals, etc.

In addition, the three principal chassis suppliers, General Motors (Chevrolet/GMC), Ford, and Chrysler (Dodge), have each issued dealer bulletins through the years outlining the Federal restriction and providing dealers with detailed Type A school bus ordering information. Of course, NADA has made an ongoing effort to inform dealers about the school bus requirements.

Efforts also have been undertaken over the past twenty years by NHTSA, by body builders, and by organizations such as the National Association of Pupil Transportation, the National School Transportation Association, and the National Association of State Directors of Pupil Transportation to educate potential purchasers and/or operators of Type A school buses about the Federal requirement and about applicable state/local procurement and/or operating restrictions. In addition, Highway Safety Program Guideline No. 17, Pupil Transportation Safety, has helped to educate and to promote uniformity as it has evolved through the years.

Over the past twenty years vans (MPVs) and Type 1 school buses have become subject to literally dozens of new safety standards. Partially due to this increased safety stringency, Type A school bus costs have significantly increased. Consequently, some schools (both public and private) are holding onto their Type A buses longer and/or are looking to purchase used regular body vans where they can legally do so. Others claim the new vans they are purchasing will only be used to "transport maintenance workers or teachers to the state convention."

Perhaps NHTSA's recent good faith efforts to carefully scrutinize the appropriateness of applying full, new Standard 201 and 221 requirements to these Type A school buses is in part a recognition of the cost sensitive nature of these vehicles and the need for a reevaluation of what set of safety standards for Type A vehicles likely will ensure that the greatest number of school children are being transported in the safest manner possible.

NADA suggests that two efforts need to be undertaken:

1. An additional, coordinated public relations/education effort aimed at schools (public and private), addressing the Federal restriction and all applicable state and local procurement and operation rules. NHTSA's limited jurisdiction regarding new vehicles certainly do not restrict it from facilitating an effort of this type. Resource constraints can be overcome.

2. A study addressing Type A schoolbuses, vans in particular, covering: * A history of Federal legislation and regulatory standards. * A comprehensive compilation of existing state/local laws. * A detailed twenty year review of production, sales and use trends. * An identification of non-school bus pupil transportation activities and trends, including the use of large vans, smaller vans, and station wagons in lieu of Type A school buses. * An analysis of accident statistics involving Type A school buses v. those involving non-school bus pupil transportation. * An evaluation of the cost effectiveness of Type A standards v. large van (MPV) standards. * Potential measures necessary to enhance the purchase or lease) and use of new Type A school buses, including but not limited to, potential modifications to the applicability of existing Federal safety standards, promotion of stricter and more uniform state and local laws, solutions for legitimate budget constraints, and improved public education efforts.

This study could be done by NHTSA or by some independent entity such as the Transportation Research Board (note that the 1989 school bus study they did pursuant to the Surface Transportation and Uniform Relocation Assistance Act of 1987 serves as at least one precedent).

At the present time, a comprehensive Type A school bus rulemaking does not appear to be necessary. On behalf of NADA, I would like to thank NHTSA for the opportunity to comment on this matter and I look forward to working with the Agency to address these concerns further in the future.

(sgn) Douglas I. Greehaus Director, Environment, Health and Safety