[Federal Register Volume 87, Number 89 (Monday, May 9, 2022)]
[Proposed Rules]
[Pages 27549-27557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09571]


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SURFACE TRANSPORTATION BOARD

49 CFR Part 1249

[Docket No. EP 769]


Uniform Railroad Costing System (URCS) Data Reporting

AGENCY: Surface Transportation Board.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Surface Transportation Board proposes a rule to codify a 
longstanding voluntary practice whereby Class I carriers, through the 
Association of American Railroads (AAR), have annually reported tare 
weight and loss and damage data for use in the Board's Uniform Railroad 
Costing System. Under the Board's proposal, Class I carriers may choose 
whether to provide tare weight and loss and damage data through AAR or 
file the data individually.

DATES: Comments are due by June 13, 2022. Reply comments are due by 
June 28, 2022.

ADDRESSES: Comments and replies may be filed with the Board via e-
filing. Written comments and replies will be posted to the Board's 
website at www.stb.gov.

FOR FURTHER INFORMATION CONTACT: Pedro Ramirez at (202) 245-0333. 
Assistance for the hearing impaired is available through the Federal 
Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: The Board is authorized, under 49 U.S.C. 
11161, to maintain cost accounting rules for rail carriers. In 1989, 
the Board's predecessor, the Interstate Commerce Commission, adopted 
the Uniform Railroad Costing System (URCS) as its general purpose 
costing system. Adoption of the Unif. R.R. Costing Sys. as a Gen. 
Purpose Costing Sys. for All Regul. Costing Purposes, 5 I.C.C.2d 894 
(1989), 54 FR 38910 (September 21, 1989). The Board uses URCS for a 
variety of regulatory functions. URCS is used in rate reasonableness 
proceedings as part of the initial market dominance determination, and 
at later stages is used in parts of the Board's determination as to 
whether the challenged rate is reasonable, and, when warranted, the 
maximum rate prescription. URCS is also used to, among other things, 
develop variable costs for making cost determinations in abandonment 
proceedings, to provide the railroad industry and shippers with a 
standardized costing model, to cost the Board's Carload Waybill Sample 
to develop industry cost information, and to provide interested parties 
with basic cost information regarding railroad industry operations.
    As a longstanding practice, the Association of American Railroads 
(AAR) has collected from Class I carriers, and voluntarily provided 
annually to the Board, tare weight and loss and damage data for use in 
URCS. While the Board appreciates AAR's longstanding voluntary 
practice, to ensure the continued availability of the data, which are 
essential components of URCS,\1\ the Board proposes to formalize that 
reporting requirement and require Class I carriers to provide tare 
weight

[[Page 27550]]

and loss and damage data on an annual basis, as described below. The 
Board has the statutory authority to obtain data from carriers and 
associations under 49 U.S.C. 11144 and 11145.
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    \1\ Tare weights are used in URCS to calculate gross ton-mile 
costs, while loss and damage data are used to calculate the total 
variable shipment costs of each rail movement. The Railroad Cost 
Program User Manual is available on the Board's website at 
www.stb.gov/reports-data/uniform-rail-costing-system/.
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    The Board's proposal is consistent with Class I carriers' current 
and longstanding practice of providing summarized tare weight and loss 
and damage data to the Board through AAR. AAR's practice has been to 
provide the average tare weight by AAR car type code \2\ in tons and 
pounds, as well as the number of cars. Additionally, AAR has 
historically provided summarized annual loss and damage expenses \3\ 
and the number of tons originated by commodity. Class I carriers are 
required to report, quarterly and annually, the number of tons 
originated on their rail lines by commodity through the freight 
commodity statistics (FCS) report. 49 CFR 1248.2. AAR's practice has 
been to provide the Board with its own version of the FCS report that 
aggregates data from the Class I carriers. AAR has also provided the 
loss and damage per ton, which is calculated by dividing loss and 
damage expenses by the number of tons originated by commodity. The 
Board proposes that Class I carriers may continue to provide tare 
weight and loss and damage data in this format.
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    \2\ AAR car type codes include freight car types and intermodal 
equipment:
    A--Equipped box car, B--Unequipped box car, C--Covered hopper 
car, D--Locomotive, E--Equipped gondola, F--Flat car, G--Unequipped 
gondola, H--Unequipped hopper, J--Gondola car, K--Equipped hopper 
car, L--Special type car, M--Maintenance of way, scale, passenger, 
caboose, and end-of-train information systems, P--Conventional 
intermodal car, Q--Lighter weight, low-profile intermodal car, R--
Refrigerator car, S--tack car, T--Tank car, U--Container, V--
Vehicular flat car, Z--Trailer.
    \3\ Historically, AAR has not reported loss and damage expenses 
for Grand Trunk Corporation (including U.S. affiliates of Canadian 
National Railway Company) (CN) and Soo Line Corporation (including 
U.S. affiliates of Canadian Pacific Railway Company) (CP). As 
discussed, the Board's proposed rule would require reporting from 
all Class I carriers either individually or through AAR. The Board's 
collection of loss and damage expenses from CN and CP for inclusion 
in URCS, which uses industry-wide loss and damage information, would 
allow the Board to provide more accurate cost estimates.
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    The Board proposes, as an alternative for Class I carriers, to 
allow those carriers to individually report tare weight and loss and 
damage data directly to the Board. Under this option, Class I carriers 
would provide the tare weight totals by AAR car type code in tons and 
pounds and the number of cars, and the Board would calculate the 
average tare weight. For loss and damage data, Class I carriers would 
provide their total annual loss and damage expenses, number of tons 
originated, and loss and damage per ton by commodity using the specific 
commodity groupings identified in the Annual Report of Loss and Damage 
Data (see App. C), and the Board would consolidate the data to 
calculate the loss and damage per ton for all Class I carriers.
    To ensure the timely availability of data for use in URCS, the 
Board proposes to require Class I carriers, either individually or 
through AAR, to file the annual tare weight and loss and damage data 
with the Board within 60 days after the end of each calendar year. 
Additionally, to facilitate the prompt receipt of 2021 data for use in 
URCS this year, the Board proposes to require Class I carriers, either 
individually or through AAR, to file tare weight and loss and damage 
data for the year 2021 within 30 days of the effective date of the 
final rule. To provide additional guidance, the Board proposes sample 
forms in Appendices B (for reporting through AAR) and C (for reporting 
individually) that Class I carriers may use to file tare weight and 
loss and damage data. The Board's Office of Economics (OE) would make 
technical changes to the format of these forms in the future as 
necessary.\4\
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    \4\ OE would post the revised templates to the Board's website 
and so notify the Class I carriers.
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    The Board invites comments on the proposed rule. Comments will be 
due by June 13, 2022; replies will be due by June 28, 2022.
    Regulatory Flexibility Act. The Regulatory Flexibility Act of 1980 
(RFA), 5 U.S.C. 601-612, generally requires a description and analysis 
of new rules that would have a significant economic impact on a 
substantial number of small entities. In drafting a rule, an agency is 
required to: (1) Assess the effect that its regulation will have on 
small entities, (2) analyze effective alternatives that may minimize a 
regulation's impact, and (3) make the analysis available for public 
comment. Sections 601-604. In its notice of proposed rulemaking, the 
agency must either include an initial regulatory flexibility analysis, 
section 603(a), or certify that the proposed rule would not have a 
``significant impact on a substantial number of small entities,'' 
section 605(b). Because the goal of the RFA is to reduce the cost to 
small entities of complying with Federal regulations, the RFA requires 
an agency to perform a regulatory flexibility analysis of small entity 
impacts only when a rule directly regulates those entities. In other 
words, the impact must be a direct impact on small entities ``whose 
conduct is circumscribed or mandated'' by the proposed rule. White 
Eagle Coop. v. Conner, 553 F.3d 467, 480 (7th Cir. 2009).
    The proposed rule would not have a significant impact on a 
substantial number of small entities within the meaning of the RFA \5\ 
because it is limited to Class I carriers. Accordingly, the Board 
certifies under 5 U.S.C. 605(b) that this rule would not have a 
significant economic impact on a substantial number of small entities 
as defined by the RFA. A copy of this decision will be served upon the 
Chief Counsel for Advocacy, Office of Advocacy, U.S. Small Business 
Administration, Washington, DC 20416.
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    \5\ For purposes of the RFA analysis, the Board defines a small 
entity as only including those rail carriers classified as Class III 
carriers under 49 CFR part 1201, General Instruction 1-1. See Small 
Entity Size Standards Under the Regul. Flexibility Act, EP 719 (STB 
served June 30, 2016), 81 FR 42566 (June 30, 2016) (with Board 
Member Begeman dissenting). Class III carriers have annual operating 
revenues of $20 million or less in 1991 dollars ($40,400,000 when 
adjusted for inflation using 2020 data). Class II carriers have 
annual operating revenues of less than $250 million in 1991 dollars 
($900 million when adjusted for inflation using 2020 data). The 
Board calculates the revenue deflator factor annually and publishes 
the railroad revenue thresholds on its website. 49 CFR part 1201, 
General Instruction 1-1; Indexing the Ann. Operating Revenues of 
R.Rs., EP 748 (STB served July 12, 2021), 86 FR 36590 (July 12, 
2021).
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    Paperwork Reduction Act. Under the Paperwork Reduction Act (PRA), 
44 U.S.C. 3501-3521, Office of Management and Budget (OMB) regulations 
at 5 CFR 1320.8(d), and Appendix C, the Board seeks comment about the 
impact of the new collection for URCS Data Reporting (OMB Control No. 
2140-XXXX), concerning: (1) Whether the proposed collection of 
information, which is further described in the proposed rule below, is 
necessary for the proper performance of the functions of the Board, 
including whether the collection has practical utility; (2) the 
accuracy of the Board's burden estimates; (3) ways to enhance the 
quality, utility, and clarity of the information collected; and (4) 
ways to minimize the burden of the collection of information on the 
respondents, including the use of automated collection techniques or 
other forms of information technology, when appropriate.
    The Board estimates that the proposed new requirements would 
include a total annual hourly burden of 28 hours and a one-time, start-
up hourly burden of 63 hours. There are no non-hourly burdens 
associated with this collection. The Board welcomes comment on the 
estimates of actual time and costs of the collection, as detailed in 
Appendix C below. Other information pertinent to this collection is 
also included in

[[Page 27551]]

Appendix C. The proposed rule will be submitted to OMB for review as 
required under 44 U.S.C. 3507(d) and 5 CFR 1320.11. Comments received 
by the Board regarding the information collection will also be 
forwarded to OMB for its review when the final rule is published.

List of Subjects in 49 CFR Part 1249

    Railroads, Reporting and recordkeeping requirements.

    It is ordered:
    1. The Board requests comments on the proposed rule as set forth in 
this decision. Comments on are due by June 13, 2022; replies are due by 
June 28, 2022.
    2. Notice of the proposed rule will be published in the Federal 
Register.
    3. A copy of this decision will be served upon the Chief Counsel 
for Advocacy, Office of Advocacy, U.S. Small Business Administration.
    4. This decision is effective on its service date.

    Decided: April 29, 2022.

    By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and 
Schultz.
Regena Smith-Bernard,
Clearance Clerk.

0
For the reasons set forth in the preamble, the Surface Transportation 
Board proposes to amend title 49, chapter X, subchapter C, of the Code 
of Federal Regulations by adding part 1249 to read as follows:

PART 1249--REPORTS OF TARE WEIGHT AND LOSS AND DAMAGE DATA

Sec.
1249.1 Annual Report of Tare Weight Data.
1249.2 Annual Report of Loss and Damage Data.

    Authority: 49 U.S.C. 1321, 11144, 11145.


Sec.  1249.1  Annual Report of Tare Weight Data.

    Class I carriers, either individually or through the Association of 
American Railroads (AAR), shall annually file tare weight data, as 
detailed in the Annual Report of Tare Weight Data, with the Surface 
Transportation Board's Office of Economics within 60 days after the end 
of the calendar year. Forms and instructions are available at 
www.stb.gov and may also be obtained by contacting the Office of 
Economics.


Sec.  1249.2  Annual Report of Loss and Damage Data.

    Class I carriers, either individually or through AAR, shall 
annually file loss and damage data, as detailed in the Annual Report of 
Loss and Damage Data, with the Surface Transportation Board's Office of 
Economics within 60 days after the end of the calendar year. Forms and 
instructions are available at www.stb.gov and may also be obtained by 
contacting the Office of Economics.

    Note: The following appendices will not appear in the Code of 
Federal Regulations.

Appendix A

Sample Forms for AAR Reporting

Annual Report of Loss And Damage Data Instructions

    This report is applicable to all Class I railroads.
    1. Update current reporting year.
    2. For each standard transportation commodity code (STCC) 
identified, report total annual loss and damage expenses, the number 
of tons originated, and the loss and damage per ton.
    3. Report the number of tons originated for each commodity for 
all railroads.
    4. The loss and damage per ton is calculated by dividing loss 
and damage expenses by the number of tons originated by commodity. 
Round to the thousandths place.
    5. For Commodity 49 Hazmat, only report data in the loss and 
damage column.
BILLING CODE 3510-22-P

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[GRAPHIC] [TIFF OMITTED] TN09MY22.034

Annual Report of Tare Weight Data Instructions

    1. For each four-digit AAR Car Type Code, report the average 
tare weight for all Class I railroads by tons and pounds, and the 
number of cars.
    2. Report detailed data for freight car types and intermodal 
equipment codes: A, B, C, D, E, F, G, H, J, K, L, M, P, Q, R, S, T, 
U, V, and Z.

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[GRAPHIC] [TIFF OMITTED] TN09MY22.035

Appendix B

Sample Forms for Individual Reporting

Annual Report of Loss And Damage Data Instructions

    This report is applicable to all Class I railroads.
    1. Update current reporting year.
    2. For each standard transportation commodity code (STCC) 
identified, report total annual loss and damage expenses, the number 
of tons originated, and the loss and damage per ton.
    3. Report the number of tons originated for each commodity for 
all railroads.
    4. The loss and damage per ton is calculated by dividing loss 
and damage expenses by the number of tons originated by commodity. 
Round to the thousandths place.
    5. For Commodity 49 Hazmat, only report data in the loss and 
damage column.

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[GRAPHIC] [TIFF OMITTED] TN09MY22.037

Annual Report of Tare Weight Data Instructions

    1. For each four-digit AAR Car Type Code, report the total tare 
weight in tons and pounds, and the number of cars.
    2. Report detailed data for freight car types and intermodal 
equipment codes: A, B, C, D, E, F, G, H, J, K, L, M, P, Q, R, S, T, 
U, V, and Z.

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[GRAPHIC] [TIFF OMITTED] TN09MY22.038

BILLING CODE 3510-22-C

Appendix C

Paperwork Reduction Act Collection

Information Collection

    Title: Annual Reports of Tare Weight and Loss and Damage Data.
    OMB Control Number: 2140-XXXX.
    STB Form Number: None.
    Type of Review: New collection.
    Summary: As part of its continuing effort to reduce paperwork 
burdens, and as required by the Paperwork Reduction Act of 1995, the 
Surface Transportation Board gives notice that it is requesting from 
the Office of Management and Budget approval of a new collection, 
Annual Reports of Tare Weight and Loss and Damage Data, OMB Control 
No. 2140-XXXX. The new collection is necessitated by the notice of 
proposed rulemaking, which proposes to give Class I carriers the 
option to provide tare weight and loss and damage data to the Board 
individually.
    Respondents: Class I railroads.
    Number of Respondents: Seven.
    Estimated Time per Response: Four hours, plus a one-time 
addition of nine start-up hours.
    Frequency: Annual.
    Total Annual Hour Burden: 49 hours (including the additional 21 
hours, which is the estimated 63 start-up hours amortized over the 
three-year approval period).
    Total ``Non-hour Burden'' Cost: There are no non-hourly burden 
costs for this collection. The collections may be filed 
electronically.
    Needs and Uses: This collection will be used by the Board in the 
Uniform Railroad Costing System (URCS). The Board is authorized, 
under 49 U.S.C. 11161, to maintain cost accounting rules for rail 
carriers. In 1989, the Board's predecessor, the Interstate Commerce 
Commission, adopted URCS as its general purpose costing system. 
Adoption of the Unif. R.R. Costing Sys. as a Gen. Purpose Costing 
Sys. for All Regul. Costing Purposes, 5 I.C.C.2d 894 (1989). The 
Board uses URCS for a variety of regulatory functions. URCS is used 
in rate reasonableness proceedings as part of the initial market 
dominance determination, and at later stages is used in parts of the 
Board's determination as to whether the challenged rate is 
reasonable and, when warranted, the maximum rate prescription. URCS 
is also used to, among other things, develop variable costs for 
making cost determinations in abandonment proceedings, to provide 
the railroad industry and shippers with a standardized costing 
model, to cost the Board's Carload Waybill Sample to develop 
industry cost information, and to provide interested parties with 
basic cost information regarding railroad industry operations.

[FR Doc. 2022-09571 Filed 5-6-22; 8:45 am]
BILLING CODE 4915-01-P