Motor Vehicle Modernization Act of 2026

This bill modernizes the National Highway Traffic Safety Administration's (NHTSA) motor vehicle safety programs. It requires NHTSA to create a priority plan for safety rulemaking and research, reforms the New Car Assessment Program (NCAP), mandates regular reviews of safety standards, and addresses recalls, exemptions, and consumer education on vehicle automation.

Sec. 2, Definitions: Defines key terms including "ADS-equipped vehicle" (a vehicle with an automated driving system capable of performing the entire driving task), "automated driving system" (hardware and software for Level 3-5 automation), and "dynamic driving task" (real-time operational and tactical driving functions).

Sec. 3, Motor vehicle safety rulemaking and research priority plan: Requires the NHTSA Administrator to develop and regularly update a comprehensive priority plan listing planned rulemakings and research priorities for the next 36 months, including details on statutory authority, research status, and expected milestones.

Sec. 4, New Car Assessment Program reform: Establishes an Office of the New Car Assessment Program within NHTSA, led by an Associate Administrator, to administer the NCAP, create implementation roadmaps, report testing results, conduct consumer education, and engage with an advisory committee.

Sec. 5, Review of motor vehicle safety standards: Requires the Administrator to review motor vehicle safety standards every 4 years, considering safety data, technology advances, manufacturer costs, and international developments, and to solicit public feedback before revising or eliminating standards.

Sec. 6, Rulemaking accountability report: Amends existing law to require NHTSA to include in its rulemaking accountability reports a description of substantive activities and milestones completed for covered rulemakings.

Sec. 7, Project schedule management practices: Requires the Administrator to update rulemaking procedures to use recognized project schedule management practices and adhere to federal standards, and mandates a GAO study on implementation within 5 years.

Sec. 8, General exemptions: Directs the Administrator to issue guidance on processes for manufacturers to demonstrate equivalent safety levels for exemptions, increases the exemption eligibility limit from 2,500 to 90,000 vehicles, extends the maximum exemption period to 5 years, and requires a decision on exemption applications within 1 year or the application is deemed approved.

Sec. 9, Testing and evaluation of motor vehicle equipment: Amends existing law to allow testing and evaluation of motor vehicle equipment in addition to motor vehicles.

Sec. 10, Recall rate improvement: Requires a study to identify factors causing low recall completion rates and directs the Administrator to take actions to improve recall service rates, with reports due within 1 and 4 years.

Sec. 11, Modern recall notification procedures: Allows recall notifications to be sent by certified mail, email, or other electronic means, but requires manufacturers to comply with a registered owner's request for certified mail notification.

Sec. 12, Clarification with respect to defects and noncompliance: Specifies that the duty to notify about defects applies only after a manufacturer makes a relevant decision, and that supplier notifications are not determinative of a defect in the vehicle.

Sec. 13, Consumer education on motor vehicle automation: Establishes a working group to recommend education strategies on the differences between vehicles with Level 1-2 systems and ADS-equipped vehicles, considering capabilities, engagement methods, and human-machine interfaces, with a report due within 3 years.

Sec. 14, Study on passenger motor vehicle ownership: Requires a study by the National Academies on trends in average vehicle age and ownership costs, including lifecycle costs, purchase price, insurance, and repair, with a report due within 3 years.

Sec. 15, Automated wheelchair securement systems: Requires a study on the feasibility of incorporating automated wheelchair securement systems into vehicles, consulting with university transportation centers, with a report due within 3 years.

Sec. 16, Study on modernizing vehicle identification numbers: Requires a study on modernizing the VIN system, analyzing its use by various entities, limitations, and recommendations for improvement, with a report due within 2 years.

Sec. 17, Motor vehicle fire rescue working group: Establishes a 15-member working group to advise on safe extraction of occupants post-crash, with members from manufacturers, consumer safety organizations, first responders, universities, battery manufacturers, and fire rescue tool makers.

Sec. 18, Paperwork Reduction Act exemption: Exempts certain NHTSA research and committee information solicitations from the Paperwork Reduction Act.