[Federal Register Volume 61, Number 104 (Wednesday, May 29, 1996)]
[Rules and Regulations]
[Pages 26846-26847]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13278]



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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Part 1039

[STB Ex Parte No. 548] <SUP>1
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    \1\ The notice of proposed rulemaking issued on March 26, 1996 
was designated as STB Ex Parte No. 346 (Sub-No. 8). In a notice 
served on May 2, 1996, the docket number was changed to STB Ex Parte 
No. 548.
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Exemption From Regulation--Boxcar Traffic

AGENCY: Surface Transportation Board, DOT.

ACTION: Final rule.

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SUMMARY: The Surface Transportation Board (the Board) is eliminating an 
obsolete provision of a regulation pertaining to rates on nonferrous 
recyclable commodities by broadening the exemption for traffic moving 
in boxcars.

EFFECTIVE DATE: June 28, 1996.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-7513. [TDD for 
the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: The ICC Termination Act of 1995, Pub. L. No. 
104-88, 109 Stat. 803 (ICCTA) abolished the Interstate Commerce 
Commission (ICC) and established the Board. Section 204 of the ICCTA 
provides that ``[t]he Board shall promptly rescind all regulations 
established by the [ICC] that are based on provisions of law repealed 
and not substantively reenacted by this Act.'' In Removal of Obsolete 
Recyclables Regulations, 1 S.T.B. 7 (1996) (Obsolete Regulations), the 
Board removed, inter alia, obsolete recyclable regulations at 49 CFR 
1134 and 49 CFR 1145, pertaining to discrimination against recyclables 
and rates on recyclables, because Congress repealed former 49 U.S.C. 
10710 and 10731, the statutory bases for these regulations. We stated 
that we would separately consider the disposition of 49 CFR 
1039.14(b)(5), which excludes rates on nonferrous recyclable 
commodities from the exemption of boxcar traffic from rate regulation.
    Consequently, on March 26, 1996, we served a notice of proposed 
rulemaking (NPR) in this proceeding, published at

[[Page 26847]]

61 FR 13146, proposing to remove 49 CFR 1039.14(b)(5) and to 
redesignate paragraphs (6) and (7). The only comment in response to the 
NPR was filed by AAR. Noting the substantial intermodal and intramodal 
competition for nonferrous recyclables, as evidenced by the decline in 
rail market share and the fact that, from 1981 through 1994, revenue 
per ton mile for nonferrous recyclables fell 49 percent in constant 
(inflation-adjusted) dollars, AAR supports the proposal and asks that 
it be adopted expeditiously.
    We will grant the broader exemption by removing the exclusion for 
nonferrous recyclables from the boxcar exemption. The ICC has already 
found that an exemption from rate regulation for transportation by 
boxcars was warranted.
    Now that the special statutory provisions for recyclables traffic 
are gone, there is no basis for excluding it from the exemption. The 
current record, moreover, warrants granting an exemption.
    We find that a broadened exemption will meet the standards of new 
section 10502. Regulation is generally not necessary to carry out the 
transportation policy of new 49 U.S.C. 10101. See 49 U.S.C. 10101 (1), 
(2), (3), (5), and (9). Furthermore, given the competitive nature of 
transportation of nonferrous recyclables, regulation is not necessary 
to protect shippers from abuse of market power.
    The Board certifies that this rule will not have a significant 
economic effect on a substantial number of small entities. This rule 
will reduce regulation; it imposes no new reporting or other 
requirements directly or indirectly on small entities. While there may 
be an impact on some small entities because recyclables no longer will 
be excepted from the boxcar exemption, it appears that such an impact 
will not be significant nor will it likely affect a significant number 
of small entities.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

List of Subjects in 49 CFR Part 1039

    Agricultural commodities, Intermodal transportation, Manufactured 
commodities, Railroads.

    Decided: May 15, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary.

    For the reasons set forth in the preamble and under the authority 
of 49 U.S.C. 721(a), title 49, chapter X of the Code of Federal 
Regulations is amended as set forth below:

PART 1039--EXEMPTIONS

    1. The authority citation for part 1039 continues to read as 
follows:

    Authority: 5 U.S.C. 553 and 49 U.S.C. 721 and 10502.


Sec. 1039.14  [Amended]

    2. Section 1039.14 is amended by removing paragraph (b)(5) and 
redesignating paragraphs (b)(6) and (b)(7) as paragraphs (b)(5) and 
(b)(6).

[FR Doc. 96-13278 Filed 5-28-96; 8:45 am]
BILLING CODE 4915-00-P