\[Federal Register: December 28, 2007 (Volume 72, Number 248)\]

\[Rules and Regulations\]

\[Page 73659-73661\]

From the Federal Register Online via GPO Access \[wais.access.gpo.gov\]

\[DOCID:fr28de07-20\]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 225

\[FRA-2007-0018\]

Adjustment of Monetary Threshold for Reporting Rail Equipment

Accidents/Incidents for Calendar Year 2008

AGENCY: Federal Railroad Administration (FRA), Department of

Transportation (DOT).

ACTION: Final rule.

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SUMMARY: This rule increases the rail equipment accident/incident

reporting threshold from \$8,200 to \$8,500 for certain railroad

accidents/incidents involving property damage that occur during

calendar year 2008. This action is needed to ensure that FRA\'s

reporting requirements reflect cost increases that have occurred since

the reporting threshold was last computed for calendar year 2007.

DATES: Effective Date: This regulation is effective January 1, 2008.

FOR FURTHER INFORMATION CONTACT: Arnel B. Rivera, Staff Director,

Office of Safety Analysis, RRS-22, Mail Stop 17, FRA, 1200 New Jersey

Avenue, SE., West Building 3rd Floor, Washington, DC 20590 (telephone

202-493-1331); or Sandra S. Ries, Trial Attorney, Office of Chief

Counsel, RCC-10, Mail Stop 10, FRA, 1200 New Jersey Avenue, SE., West

Building 3rd Floor, Washington, DC 20590 (telephone 202-493-6047).

SUPPLEMENTARY INFORMATION:

Background

A \`\`rail equipment accident/incident\'\' is a collision, derailment,

fire, explosion, act of God, or other event involving the operation of

railroad on-track equipment (standing or moving) that results in

damages to railroad on-track equipment, signals, tracks, track

structures, or roadbed, including labor costs and the costs for

acquiring new equipment and material, greater than the reporting

threshold for the year in which the event occurs. 49 CFR 225.19(c).

Each rail equipment accident/incident must be reported to FRA using the

Rail Equipment Accident/Incident Report (Form FRA F 6180.54). 49 CFR

225.19(b) and (c). Paragraphs (c) and (e) of 49 CFR 225.19 provide that

the dollar figure that constitutes the reporting threshold for rail

equipment accidents/incidents will be adjusted, if necessary, every

year in accordance with the procedures outlined in appendix B to part

225 to reflect any cost increases or decreases. 61 FR 30940 (June 18,

1996); 61 FR 60632 (November 29, 1996); 61 FR 67477 (December 23,

1996); 62 FR 63675 (December 2, 1997); 63 FR 71790 (December. 30,

1998); 64 FR 69193 (December 10, 1999); 65 FR 69884 (November 21,

2000); 66 FR 66346 (December 26, 2001); 67 FR 79533 (December 30,

2002); 70 FR 75414 (December 20, 2005); 72 FR 1184 (January 10, 2007).

New Reporting Threshold

Approximately one year has passed since the rail equipment

accident/incident reporting threshold was revised. 72 FR 1184 (January

10, 2007). Consequently, FRA has recalculated the threshold, as

required by Sec. 225.19(c), based on increased costs for labor and

increased costs for equipment. FRA has determined that the current

reporting threshold of \$8,200, which applies to rail equipment

accidents/incidents that occur during calendar year 2007, should

increase by \$300 to \$8,500 for equipment accidents/incidents occurring
during calendar year 2008, effective January 1, 2008. The specific
inputs to the equation set forth in appendix B (i.e., Tnew = Tprior \*
\[1 + 0.4(Wnew-Wprior)/Wprior + 0.6(Enew-Eprior)/100\]) to part 225 are:

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

Tprior Wnew Wprior Enew Eprior

\$8,200\...\...\... \$21.50323 \$21.45800 175.56667 169.7

Where: Tnew = New threshold; Tprior = Prior threshold (with

reference to the threshold, \`\`prior\'\' refers to the previous

threshold rounded to the nearest \$100, as reported in the Federal

Register); Wnew = New average hourly wage rate, in dollars; Wprior =

Prior average hourly wage rate, in dollars; Enew = New equipment

average PPI value; Eprior = Prior equipment average PPI value. Using

the above figures, the calculated new threshold, (Tnew) is

\$8,495.55, which is rounded to the nearest \$100 for a final new

reporting threshold of \$8,500.

Notice and Comment Procedures

In this rule, FRA has recalculated the monetary reporting threshold

based on the formula discussed in detail and adopted, after notice and

comment, in the final rule published December 20, 2005, 70 FR 75414.

FRA has found that both the current cost data inserted into this pre-

existing formula and the original cost data that they replace were

obtained from reliable Federal government sources. FRA has found that

this rule imposes no additional burden on any person, but rather

provides a benefit by permitting the valid comparison of accident data

over time. Accordingly, finding that notice and comment procedures are

either impracticable, unnecessary, or contrary to the public interest,

FRA is proceeding directly to the final rule.

Regulatory Impact

Executive Order 12866 and DOT Regulatory Policies and Procedures

This rule has been evaluated in accordance with existing policies

and procedures, and determined to be non-significant under both

Executive Order 12866 and DOT policies and procedures (44 FR 11034

(Feb. 26, 1979)).

Regulatory Flexibility Act

The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612) requires

a review of proposed and final rules to assess their impact on small

entities, unless the Secretary certifies that the rule will not have a

significant economic impact on a substantial number of small entities.

Pursuant to Section 312 of the Small Business Regulatory Enforcement

Fairness Act of 1996 (Pub. L. 104-121), FRA has issued a final policy

that formally establishes \`\`small entities\'\' as including railroads

that meet the line-haulage revenue requirements of a Class III

railroad. 49 CFR part 209, app. C. For other entities, the same dollar

limit in revenues governs whether a railroad, contractor, or other

respondent is a small entity. Id.

About 680 of the approximately 718 railroads in the United States

are considered small entities by FRA. FRA certifies that this final

rule will have no significant economic impact on a substantial number

of small entities. To the extent that this rule has any impact on small

entities, the impact will be neutral or insignificant. The frequency of

rail equipment accidents/incidents, and therefore also the frequency of

required reporting, is generally proportional to the size of the

railroad. A railroad that employs thousands of employees and operates

trains millions of miles is exposed to greater risks than one whose

operation is substantially smaller. Small railroads may go for months

at a time without having a reportable occurrence of any type, and even

longer without having a rail equipment accident/incident. For example,

current FRA data indicate that 3,379 rail equipment accidents/incidents

were reported in 2004, with small railroads reporting 307 of them. In

2005, 3,252 rail equipment accidents/incidents were reported, and small

railroads reported 321 of them. Data for 2006 show that 2,935 rail

equipment accidents/incidents were reported, with small railroads

reporting 345 of them. On average for those three calendar years, small

railroads reported about 10% (ranging approximately from 9% to 12%) of

the total number of rail equipment accidents/incidents. FRA notes that

these data are accurate as of the date of issuance of this final rule,

and are subject to minor changes due to additional reporting. Absent

this rulemaking (i.e., any increase in the monetary reporting

threshold), the number of reportable accidents/incidents would

increase, as keeping the 2007 threshold in place would not allow it to

keep pace with the increasing dollar amounts of wages and rail

equipment repair costs. Therefore, this rule will be neutral in effect.

Increasing the reporting threshold will slightly decrease the

recordkeeping burden for railroads over time. Any recordkeeping burden

will not be significant and will affect the large railroads more than

the small entities, due to the higher proportion of reportable rail

equipment accidents/incidents experienced by large entities.

Paperwork Reduction Act

There are no new information collection requirements associated

with this final rule. Therefore, no estimate of a public reporting

burden is required.

Federalism Implications

FRA has analyzed this rule in accordance with Executive Order

13132, which requires an agency to determine whether a rule will have a

substantial direct effect on States, on the relationship between the

National Government and the States, or on the distribution of power and

responsibilities among the various levels of government. FRA has

determined that the rule will not have sufficient federalism

implications to warrant consultation with State and local officials or

the preparation of a federalism assessment. Accordingly, a federalism

assessment has not been prepared.

Environmental Impact

FRA has evaluated this regulation in accordance with its

\`\`Procedures for Considering Environmental Impacts\'\' (FRA\'s
Procedures)

(64 FR 28545, May 26, 1999) as required by the National Environmental

Policy Act (42 U.S.C. 4321 et seq.), other environmental statutes,

Executive Orders, and related regulatory requirements. FRA has

determined that this regulation is not a major FRA action (requiring

the preparation of an environmental impact statement or environmental

assessment) because it is categorically excluded from detailed

environmental review pursuant to section 4(c)(20) of FRA\'s Procedures.

64 FR 28545, 28547, May 26, 1999. In accordance with sections 4(c) and

\(e\) of FRA\'s Procedures, the agency has further concluded that no

extraordinary circumstances exist with respect to this regulation that

might trigger the need for a more detailed environmental review. As a

result, FRA finds that this regulation is not a major Federal action

significantly affecting the quality of the human environment.

Unfunded Mandates Reform Act of 1995

Pursuant to Section 201 of the Unfunded Mandates Reform Act of 1995

(Pub. L. 104-4, 2 U.S.C. 1531), each Federal agency \`\`shall, unless

otherwise prohibited by law, assess the effects of Federal regulatory

actions on State, local, and tribal governments, and the private sector

(other than to the extent that such regulations incorporate

requirements specifically set forth in law).\'\' Section 202 of the Act

(2 U.S.C. 1532) further requires that \`\`before promulgating any
general

notice of proposed rulemaking that is likely to result in the

promulgation of any rule that includes any Federal mandate that may

result in expenditure by State, local, and tribal governments, in the

aggregate, or by the private sector, of \[\$132,300,000 or more (as

adjusted for inflation)\] in any one year, and before promulgating any

final rule for which a general notice of proposed rulemaking was

published, the agency shall prepare a written statement\'\' detailing
the

effect on State, local, and tribal governments and the private sector.

The final rule will not result in the expenditure, in the aggregate, of

\$132,300,000 or more in any one year, and thus preparation of such a

statement is not required.

Energy Impact

Executive Order 13211 requires Federal agencies to prepare a

Statement of Energy Effects for any \`\`significant energy action.\'\'
66

FR 28355 (May 22, 2001). Under the Executive Order, a \`\`significant

energy action\'\' is defined as any action by an agency (normally

published in the Federal Register) that promulgates or is expected to

lead to the promulgation of a final rule or regulation, including

notices of inquiry, advance notices of proposed rulemaking, and notices

of proposed rulemaking: That (1)(i) is a significant regulatory action

under Executive Order 12866 or any successor order, and (ii) is likely

to have a significant adverse effect on the supply, distribution, or

use of energy; or (2) that is designated by the Administrator of the

Office of Information and Regulatory Affairs as a significant energy

action. FRA has evaluated this final rule in accordance with Executive

Order 13211. FRA has determined that this final rule is not likely to

have a significant adverse effect on the supply, distribution, or use

of energy. Consequently, FRA has determined that this regulatory action

is not a \`\`significant energy action\'\' within the meaning of
Executive

Order 13211.

Privacy Act

Anyone is able to search the electronic form of all our comments

received into any of our dockets by the name of the individual

submitting the comment (or signing the comment, if submitted on behalf

of an association, business, labor union, etc.). You may review DOT\'s

complete Privacy Act Statement in the Federal Register published on

April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit

[http://www.regulations.gov](http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov).

List of Subjects in 49 CFR Part 225

Investigations, Penalties, Railroad safety, Reporting and

recordkeeping requirements.

The Rule

-   In consideration of the foregoing, FRA amends part 225 of chapter
    II, subtitle B of title 49, Code of Federal Regulations, as follows:

PART 225\--\[AMENDED\]

-   The authority citation for part 225 continues to read as follows:

Authority: 49 U.S.C. 103, 322(a), 20103, 20107, 20901-02, 21301,

21302, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.49.

-   2\. Amend Sec. 225.19 by revising the first sentence of
    paragraph (c) and revising paragraph (e) to read as follows:

Sec. 225.19 Primary groups of accidents/incidents.

\* \* \* \* \*

\(c\) Group II\--Rail equipment. Rail equipment accidents/incidents

are collisions, derailments, fires, explosions, acts of God, and other

events involving the operation of on-track equipment (standing or

moving) that result in damages higher than the current reporting

threshold (i.e., \$6,700 for calendar years 2002 through 2005, \$7,700

for calendar year 2006, \$8,200 for calendar year 2007, and \$8,500 for

calendar year 2008) to railroad on-track equipment, signals, tracks,

track structures, or roadbed, including labor costs and the costs for

acquiring new equipment and material. \* \* \*

\* \* \* \* \*

\(e\) The reporting threshold is \$6,700 for calendar years 2002

through 2005, \$7,700 for calendar year 2006, \$8,200 for calendar year

2007 and \$8,500 for calendar year 2008. The procedure for determining

the reporting threshold for calendar years 2006 and beyond appears as

paragraphs 1-8 of appendix B to part 225.

\* \* \* \* \*

Issued in Washington, DC, on December 19, 2007.

Joseph H. Boardman,

Administrator.

\[FR Doc. E7-24999 Filed 12-27-07; 8:45 am\]

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