Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules 33409

301.9100–3T and adding entries in

numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 301.9100–1 also issued under 26

U.S.C. 6081;

Section 301.9100–2 also issued under 26

U.S.C. 6081;

Section 301.9100–3 also issued under 26

U.S.C. 6081; * * *

Par. 2. Sections 301.9100–1 and

301.9100–1T through 301.9100–3T are

removed.

Par. 3. Sections 301.9100–1 through

301.9100–3 are added to read as follows:

§ 301.9100–1 Extensions of time to make

elections.

§ 301.9100–2 Automatic extensions.

§ 301.9100–3 Other extensions.

[The text of these above proposed

sections are the same as the text of

§§ 301.9100–1T through 301.9100–3T

published elsewhere in this issue of the

Federal Register.]

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96–16377 Filed 6–26–96; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF DEFENSE

Department of the Army

32 CFR Part 619

Program for Qualifying DOD, Motor

Common Carriers of Perishable

Subsistence and Bulk Fuel

AGENCY: Military Traffic Management

Command, DOD.

ACTION: Proposed rule.

SUMMARY: This action revises the

qualifications standards to the basic

agreement between the Military Traffic

Management Command and Motor

Common Carriers for Approval to

Transport General Commodities for and

on behalf of U.S. Department of Defense.

This action also updates the basic

agreement between the Military Traffic

Management Command and Motor

Common Carriers for Governing the

Transportation of Hazardous Material

other than Class A and B Explosives for

and on Behalf of the U.S. Department of

Defense. The proposal to amend those

qualifications, where appropriate, are

submitted to be consistent with the

program qualifications for DOD Motor

Common Carriers of Perishable

Subsistence and Bulk Fuel.

DATES: Comments must be received by

July 29, 1996.

ADDRESSES: Headquarters, Military

Traffic Management Command, ATTN:

MTOP–Q, 5611 Columbia Pike, Falls

Church, Virginia 22041–5050.

FOR FURTHER INFORMATION CONTACT:

Mr. Rick Wirtz at (703) 681–6393;

Headquarters, Military Traffic

Management Command, ATTN: MTOP–

QQ, 5611 Columbia Pike, Falls Church,

Virginia 22041–5050.

SUPPLEMENTARY INFORMATION: Basic

information on the Carrier Qualification

Program was previously published in

the Federal Register, 53 FR 17970, 54

FR 17070, 54 FR 27667, 55 FR 7361, 55

FR 52976, 56 FR 45895, and 57 FR

11376.

Executive Order 12219

This proposed rule was reviewed

under Executive Order 12219 and the

Secretary of the Army has classified this

action as non major. The effect of the

rule on the economy will be less than

$100 million.

Regulatory Flexibility Act

This rule has been reviewed with

regard to the requirements of the

Regulatory Flexibility Act of 1980 and

the Secretary of the Army has certified

that this action does not have a

significant impact on a substantial

number of small entities. The objective

of the program is to ensure that DOD

obtains safe, dependable and reliable

transportation services. The

requirements are not designed to

preclude participation by small

business. Rather, they are part of a

mechanism designed to ensure that the

traffic offered to small businesses does

not exceed their capabilities. The

program’s reporting and record keeping

requirements are essentially

administrative in nature and do not

demand significant expenditures of

resources such as personnel, computer

equipment, or software. No professional

or technical training is necessary to

comply with these requirements.

Alternatives to facilitate entry of small

businesses have been identified and

implemented.

Paperwork Reduction Act

This rule has been approved by the

Office of Management and Budget as

required under the requirements of the

Paperwork Reduction Act of 1980 (44

U.S.C. 3507).

List of Subjects in 32 CFR Part 619

Common carriers, Freight, Motor

vehicle, Safety, Shipping, and Trucks.

Accordingly, Title 32, Part 619, of the

Code of Federal Regulations is amended

by the following changes:

PART 619 [AMENDED]

1. The authority citation for part 619

continues to read as follows:

Authority: 49 U.S.C. 1801–1813, 2503,

2505, and 2509.

2. In § 619.4, the Insurance—Public

liability and cargo text is amended by

revising paragraphs (b), introductory

text, (b) (3) and (4) as follows:

§ 619.4 Insurance—public liability and

cargo.

* * * * *

(b) Cargo. Motor common carriers,

surface freight forwarders, shipper

agents and air freight forwarders must

have their insurance company provide a

certificate of insurance form. The

deductible portion will be shown on the

certificate. The insurance underwriter

must have a policyholder’s rating in the

Best’s Insurance Guide, listed in the

Fiscal Service Treasury Department

Circular 570, Listing of Surety

Companies or specifically approved by

HQMTMC. DOD’s minimum cargo

insurance requirements are listed below.

* * * * *

(3) Perishables carriers—$10,000 per

shipment.

(4) Bulk Fuel carriers—$10,000 per

shipment.

* * * * *

3. Appendix A to Part 619 is revised

to read as follows:

Appendix A to Part 619—Basic

Agreement Between the Military Traffic

Management Command and Motor

Common Carriers for Approval To

Transport General Commodities for

and on Behalf of U.S. Department of

Defense.

1. The undersigned, who is duly

authorized and empowered to act on behalf

of llllll (Name of Company, Typed or

Legibly Printed), hereinafter called the

carrier, as a prerequisite for approval to

transport general commodities for the

account of the Department of Defense (DOD)

and the Military Traffic Management

Command (MTMC), hereinafter called the

Government, agree to comply with all

additional requirements, terms and

conditions as set forth in this Agreement.

This Agreement governs the transportation of

all DOD general commodity freight

administered by the Carrier Qualification

Division, MTMC (except used household

goods). Noncompliance by the carrier with

any provision of this Agreement may result

in MTMC taking action against the carrier

under the Carrier Performance Program,

governed by MTMC Regulation 15–1, and

revoking approval to participate in this

traffic. If the carrier’s approval is revoked, the

carrier may be disqualified from further

participation in any DOD Freight Traffic.

2. Approval and Revocation. a. Carrier

understands that its initial approval and
33410 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules

retention of approval are contingent upon

establishing and maintaining, to MTMC’s

satisfaction, sufficient resources to support

its propose scope of operations and services.

Sufficient resources include equipment,

personnel facilities, and finances to handle

traffic anticipated by DOD/MTMC under the

carrier’s proposed scope of operations in

accordance with the service requirements of

the shipper.

b. The carrier understands that MTMC may

revoke approval at any time upon discovery

of grounds for ineligibility or

disqualification. The carrier further

understands that it is not authorized to

submit tenders for shipments requiring a

Transportation Protective Service (TPS) until

it has served DOD in an approved status for

12 continuous months. Prior to being allowed

to handle shipments which require a TPS or

classes A & B explosives, the carrier must

first meet any additional requirements in

effect at the time.

c. In addition to the initial evaluation, the

carrier agrees that it will cooperate with

MTMC follow-up evaluations at any time

subsequent to signing this Agreement to

confirm continued eligibility.

d. The carrier certifies that neither the

owners, company, corporate officials, nor any

affiliation or subsidiary thereof are currently

debarred or suspended, disqualified by a

MTMC General Freight Board, or placed in

non-use by MTMC from doing business with

DOD.

3. Lawful Performance.

a. Carrier agrees to comply with all

applicable Federal, State, municipal, and

other local laws and regulations governing

the safe, proper, and lawful operation of

motor vehicles, to include Title 49 Code of

Federal Regulations (CFR) 386–397. Intrastate

carriers are required to comply with all

applicable state or federal regulations,

whichever are more stringent.

b. No fines, charges, or assessments for

overload vehicles or other violations of

applicable laws and regulations will be

passed to or be paid by any agency of the

Federal Government.

4. Operating Authority. Carrier agrees to

maintain valid motor common carrier

operating certificates for its scope of

operations. Any carrier found to be involved

in brokerage, as defined by the Interstate

Commerce Commission (ICC), of DOD freight

traffic will have its approval revoked.

5. Insurance. a. Minimum public liability

insurance requirements are prescribed in title

49 of the Code of Federal Regulations (CFR)

5387.9. Carrier agrees to ensure that the ICC

is provided proof of their public liability

insurance, in the form of a BMC 91 or 91–

X, or MCS 90, in accordance with sections 29

and 30 of the Motor Carrier Act of 1980.

Further, the motor carrier agrees to provide

MTMC with a certificate of insurance form.

The certificate holder block of the form will

indicate that MTMC, 5611 Columbia Pike,

Falls Church, Virginia 22041–5050, ATTN:

MTOP–QQ, will be notified in writing, 30

days in advance of any change or

cancellation. The deductible portion will be

shown on the certificate. The insurance

underwriter must have a policy holder’s

rating of ‘‘Excellent’’ or better in the Best’s

Key Rating Guide.

(1) The carrier agrees to also file with

MTMC proof of: $750,000 per vehicle for

property (excluding hazardous) and

$1,000,000 per vehicle for oil, hazardous

wastes, hazardous materials and hazardous

substances defined in 49 Code of Federal

Regulations (CFR) 171.8 and listed in 49 CFR

172.101.

(2) Public liability insurance Intrastate

Carriers—Public liability insurance shall be

that as required by the state, except that for

deregulated states, public liability shall be

the same as that required of interstate

carriers.

(3) Cargo insurance. Cargo insurance in the

minimum $150,000 for loss and damages of

government freight per vehicle and/or

$20,000 per vehicle and/or $20,000 per

vehicle transported (e.g. automobile

transporters or vehicles in haulaway service)

must be maintained. Perishable carriers will

maintain, as a minimum, cargo insurance in

the amount of $10,000 per shipment and bulk

petroleum carriers will maintain $10,000 per

shipment.

b. The insurance, carrier in the name of the

carrier, will be in force at all times while this

Agreement is in effect or until such time as

the carrier cancels all tenders. The carrier

agrees to ensure that the policies include a

provision requiring the insurer to notify

MTMC prior to any performance of service

for the carrier. Charges, renewals, and

cancellation notices must also be sent to

MTMC, 5611 Columbia Pike, Falls Church,

Virginia 22041–5050, ATTN: MTOP–QQ.

This requirement applies to both interstate

and intrastate carriers. Carrier’s insurance

policy(s) must cover all equipment used to

transport DOD freight.

6. Performance Bond. a. Carrier agrees to

provide MTMC with a Performance Bond.

The bond secures performance and

fulfillment of the carrier obligation to deliver

DOD freight to destination. It will cover DOD

re-procurement costs as a result of carrier

default, abandoned shipments, or

bankruptcy. The bond will not be utilized for

operational problems such as late pick up or

delivery, excessive transit time, refusals, no

shows, improper/inadequate equipment or

claims for lost or damaged cargo. The bond

must be issued by a surety company listed in

the Fiscal Service Treasury Department

Circular No. 570. The bond must be

completed on the form provided by MTMC.

The bond will be continuous until canceled.

MTMC will be notified in writing 30 days in

advance of any change or cancellation. A

letter of intent by the surety company is

required with the initial application package.

Upon MTMC approval, the carrier agrees to

submit the Performance Bond before the

Tender of Service will be accepted.

b. The sum of the bond will be determined

as follows:

(1) Carriers having done business in their

own name with DOD for 3 years or more will

be required to submit a Performance Bond in

the amount of 2.5% of their total DOD

revenue, taken from the Freight Information

Systems Report (FINS), for the previous 12

months, not to exceed $100,000 and not less

than $25,000.

(2) New carriers and those carriers having

done business in their own name with the

DOD for less than 3 years will be required to

submit a Performance Bond based on areas of

service they offer. Areas of service will be

computed as both origins and destinations

served. 1 state (including intrastate)—

$25,000; 2 to 3 states—$50,000; 4 or more

states—$100,000.

(3) Once a carrier has been doing business

with the DOD for 3 years, their bond

requirement will change from area of service

to percent revenue.

c. Bulk fuel carriers and Perishable carriers

will be required to submit a $25,000

Performance Bond.

d. Local drayage and commercial zone

carriers are exempt from the bond

requirement.

e. If carrier has secured the Performance

Bond as a result of qualifying under

Ammunition and Explosive, Classes A and B

program or hazardous materials, other than

ammunition and explosives, Classes A and B

program no additional Performance Bond is

required.

7. Safety. a. Carrier will not have an

‘‘unsatisfactory’’ safety rating with the

Federal Highway Administration,

Department of Transportation, and, if it is an

intrastate motor carrier, with the appropriate

state agency. The carrier further agrees to

permit unannounced safety inspections of its

facilities, terminals, equipment, employees,

and procedures by DOD civilian, military

personnel, or DOD contract employees. The

inspection may include in-transit

surveillance of vehicles and drivers. The

carrier agrees to provide evidence that fulfills

the requirement set forth in 49 Code of

Federal Regulations parts 390 through 396.

Inspection of carrier equipment, drivers’

records, route plans and inspection reports

will be permitted during both the pickup and

delivery of shipments and in coordination

with local police or other authorities while

in transit. Carrier also agrees to allow

inspection of carrier records and individual

driver qualification files. When requested,

carrier agrees to provide adequate evidence

of an active driver safety, security training

and evaluation program. Upon request, the

information to permit MTMC to verify or

inspect carrier and driver records.

b. The carrier agrees to have in place a

company-wide safety management program.

Carrier safety program will comply with

applicable Federal, State, and local statutes

or requirements. Safety programs at the

company-wide level may be subject to

evaluation by DOD representatives.

c. The carrier agrees to notify, within 24

hours, the consignor and consignee named by

the Government Bill of Lading (GBL) or

Commercial Bill of Lading (CBL) of cargo

loss, damage, or unusual delay. Information

reported will include origin/destination,

GBL/CBL number, shipping paper and other

pertinent accident details. When requested,

carrier agrees to furnish MTMC a copy of

accident reports submitted to the Department

of Transportation on Form MCS 50–T

(Property).

8. Drivers Requirement. a. The carrier

agrees to ensure that any driver used by the

carrier to transport DOD freight possesses a

valid commercial driver’s license (in

compliance with Federal Commercial Motor
Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules 33411

Vehicle Safety Act of 1986) issued by his or

her state of domicile. Drivers must have a

minimum 1 year of driving experience

driving equipment similar to that used to

transport DOD freight, or have proof of

graduation from an accredited trade truck

motor driving school, operating the

aforementioned equipment.

b. The carrier agrees to further ensure that

driver carry a company picture identification

card to verify affiliation with the carrier

named on the Government Bill of Lading.

9. Equipment. The carrier is prohibited

from using trip-leased equipment or drivers,

except upon prior approval from MTMC.

Leases of less than 30 days are considered

trip-leases. In order to trip-lease, a carrier

must apply for approval under MTMC’s triplease program. In order to trip-lease, a carrier

must apply for approval under MTMC’s triplease program.

10. Shipment. The carrier agrees to

provide, at no additional cost to the

government, the status of any shipment

within 24 hours after an inquiry is made.

Further, the carrier agrees to not divulge any

information to unauthorized persons

concerning the nature and movement of any

DOD shipment.

11. Documentation. a. The carrier agrees to

accept GBLs and CBLs on which freight

charges will be paid by the Government, and

be bound by all terms stated on the SF 1103,

Government Bill of Lading, regardless of the

type of bill of lading tendered.

b. The carrier agrees to comply with the

documentation prelodge procedures in effect

at Military Ocean Terminals or the

installation, when cargo is consigned for

further movement overseas. (Prelodging is

the submission of advance shipment

documents which identifies the shipment to

the Military Ocean Terminal prior to delivery

of the cargo at the terminal.) Instructions will

be provided by the consignor to furnish

certain data at least 24 hours in advance of

cargo delivery to the terminal.

12. Loss of Damage. The carrier agrees to

be liable for loss or damage to cargo in

accordance with the provisions of 49 U.S.C.

11707 (the Carmack Amendment to the

Interstate Commerce Act). Carrier agrees to

promptly settle uncontested claims for loss or

damage.

13. Standard Tender of Service. a. The

carrier agrees to comply with the preparation

and filing instructions in applicable freight

traffic rules publications issued by MTMC.

Carrier understands that MTMC will reject

tenders not in compliance with these

instructions.

b. Carrier agrees to provide a street address

where the company office is located in lieu

of a post office box number. Carrier agrees to

provide the address prior to or in conjunction

with submission of any tenders or other rate

schedules. The carrier agrees to also advise

MTMC of any change in address prior to the

effective date of the change. Failure to do so

is grounds to discontinue use of the carriers.

c. Carrier understands that tenders

inadvertently accepted and distributed for

use and not in compliance with this

agreement, the provisions contained in the

Standard Tender of Freight Services (MT

Form 364–R), or the applicable MTMC

Freight Traffic Rules Publication, and

supplements thereof, will be subject to

immediate removal or non-use until

corrections are made. The issuing carrier

tender will be placed in an inactive status.

14. Rates. a. Carrier agrees to transport

Government shipments at the lowest tender

rate specifically applicable to the department

or agency involved.

b. Carrier agrees to publish guaranteed

through rates for at least 30 days. These rates

must be filed with MTMC, HQ, Eastern Area,

ATTN: MTE–IN, Bayonne, New Jersey

07002–5302. The carrier must publish all

rates, charges, and accessorial services on a

MTMC approved form, and must comply

with the tender preparation instructions.

(Only services annotated with a charge in the

tender will be paid by the shipper.)

15. Carrier Performance. Carrier agrees that

carrier’s equipment, performance, and

standards of service will conform with its

obligations under Federal, State and local

law and regulation as well as with the

guidelines found in the Defense Traffic

Management Regulation (DTMR) and this

Agreement. The carrier fully understands its

obligation to remain current in its knowledge

of service standards. The carrier accepts the

government’s right to revoke approval,

declare ineligible, non-use, or disqualify the

carrier for unsatisfactory service for any

operating deficiency, noncompliance with

terms of this Agreement or terms of any

negotiated agreements, tariffs, tenders, bills

of lading or similar arrangements

determining the relationship of the parties, or

for the publications or assessment of

unreasonable rates, charges, rules,

descriptions classifications, practices, or

other unreasonable provisions of tariffs/

tenders. Rules governing the Carrier

Performance Program are found in MTMC

Regulation 15–1, and Army Regulation 55–

355, DTMR. If a carrier is removed or

disqualified for 6 months or more, it will

have to be re-qualified.

16. General Provisions. The carrier agrees

to possess a valid Standard Carrier Alpha

Code (SCAC). When a company holding the

appropriate authority has operating divisions

each with its own unique SCAC, each such

division is required to execute a separate

agreement with MTMC governing the

transportation of protected commodities.

17. Terms of the Agreement. a. The terms

of this Agreement will be applicable to each

shipment.

b. This agreement shall be effective from

the date of approval by MTMC, until

terminated. Termination is effective upon

receipt of written notice by either party.

c. Nothing in this Agreement will be

construed as a guarantee by the Government

of any particular volume of traffic.

d. The carrier agrees to immediately notify

MTMC of any changes in ownership, in

affiliations, executive officers, and/or board

members, and carrier name. Carrier

understands that failure to notify MTMC

shall be grounds for immediate revocation of

the carrier’s approval and their participation

in the movement of DOD freight.

18. Additional Specialized Requirements.

The terms of this Agreement will not prevent

different or additional requirements with

respect to negotiated agreements or added

requirements for other types of service and/

or commodities.

19. Inquiries. Inquiries may be referred to:

Commander, Military Traffic Management

Command, ATTN: MTOP–QQ, 5611

Columbia Pike, Falls Church, VA 22041–

5050.

20. Carrier Acknowledgment and

Acceptance. The certifying carrier official

agrees to ensure that the appropriate

company officials and employees are familiar

with the requirements, terms, and conditions

of this Agreement and are in full compliance

with the applicable provisions herein. Any

information found to be falsely represented

in the Motor Carrier Qualification Form, the

attachments or during the qualification

procedures, to include additional

requirements of this Agreement, shall be

grounds for automatic revocation of this

Agreement and immediate non-use of the

carrier, the affiliated companies, divisions

and entities.

I, llllllllllllllllllll

(Typed Name and Title of Carrier Official)

verify under penalty of perjury under the

laws of the United States of America, that the

information contained in the carrier

qualification application packet and this

Agreement is true, correct and complete. If

representing a company or organization, I

certify that I am qualified and authorized to

offer this information. I know that willful

misstatements or omissions of material facts

constitute Federal criminal violations

punishable under 18 U.S.C. 1001 by up to 5

years imprisonment and fines up to $10,000

for each offense, or punishable as perjury

under 18 U.S.C. 1621 by fines up to $2,000

or imprisonment up to 5 years for each

offense. Further I understand the

requirements of this Agreement and on

behalf of

lllllllllllllllllllll

(Typed Name of Carrier and MC Number)

agree to comply with the terms and

conditions contained herein. Signature of

Carrier Official and Title

lllllllllllllllllllll

Date

lllllllllllllllllllll

Carrier Address

lllllllllllllllllllll

Telephone number

lllllllllllllllllllll

24 hr Emergency Number

(llll, llll) Interstate Operating

Authority Certificate Number—MC

lllllllllllllllllllll

Intrastate Operating Authority

4. Appendix C to part 619 is revised

as follows:

Appendix C to Part 619—Agreement

Between the Military Traffic

Management Command and Motor

Common Carriers Governing the

Transportation of Hazardous Material

Other Than Class A and B Explosives

for and on Behalf of the U.S.

Department of Defense.

1. I, the undersigned, who is duly

authorized and empowered to act on behalf
33412 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules

of

llllllllllllllllllll,

hereinafter called the carrier to transport

hazardous materials, (other than class A and

B explosives), as defined in 49 Code of

Federal Regulations (CFR) 172.3. Hazardous

commodities in bulk include, but not limited

to, such items as gasoline, kerosene,

lubricating oil, turbine fuel and fuel oil, for

the account for the DOD and the Military

Traffic Management Command (MTMC),

hereinafter called the Government, agrees to

comply with all additional requirements,

terms and conditions as set forth in this

Agreement. If the carrier wishes to

participate in DOD traffic, which requires a

protective service, the carrier must also be a

party to and in full compliance with

requirements contained in the Agreement

governing shipments which required a

Transportation Protective Service (TPS).

Noncompliance by the carrier with any

provision of this or any other Agreement it

is a party to will be sufficient grounds for

immediate revocation of the carrier’s

approval to participate in the movement of

hazardous materials. This carrier may also be

subject to further action under the carrier

Performance Program, governed by MTMC

Regulation 15–1, which could result in

nationwide disqualification on all DOD

freight shipments.

2. Approval and Revocation. a. Carrier

understands that its initial approval and

retention of approval are contingent upon

establishing and maintaining to MTMC’s

satisfaction, sufficient resources to support

its proposed scope of operations and

services. Sufficient resources include

equipment, personnel, facilities, and finances

to handle traffic anticipated by DOD/MTMC

under the carrier’s proposed scope of

operations in accordance with the service

requirements of the shipper.

b. The carrier understands that MTMC may

revoke approval at any time upon discovery

of grounds for ineligibility or

disqualification. The carrier further

understands that it is not authorized to

submit tenders for shipments requiring a TPS

until it has served DOD in an approved status

for 12 continuous months. Prior to being

allowed to handle shipments which require

a TPS or class A and B explosives, the carrier

must first meet any additional requirements

in effect at that time.

c. In addition to the initial evaluation, the

carrier agrees that it will cooperate with

MTMC follow-up evaluations at any time

subsequent to signing this agreement to

confirm continued eligibility.

d. The carrier certifies that neither the

owners, company, corporate officials, nor any

affiliation or subsidiary thereof are currently

debarred or suspended, disqualified by a

MTMC General Freight Board, or placed in

non-use by MTMC from doing business with

DOD.

3. Lawful Performance. a. Carrier agrees to

comply with all applicable Federal, State,

municipal, and other local law and

regulations governing the safe, proper, and

lawful operation of motor vehicles, to

include Title 49 Code of Federal Regulations

(CFR) 177 and 386 through 397. Provisions

for exempt intricate operations as defined in

49 CFR will not apply to the transpiration of

explosives for the DOD. Intrastate carries are

required to comply with all applicable state

or federal regulations, whichever are more

stringent.

b. No fines, charges, or assessments for

overloaded vehicles or other violations of

applicable laws and regulations will be

passed to or be paid by any agency of the

Federal Government.

4. Operating Authority. Carrier agrees to

maintain valid Motor Common Carrier

operating certificates for its scope of

operations which is not restricted against the

handling and transport of hazardous

materials or ammunition and explosives,

class A and B. Any carrier found to be

involved in brokerage, as defined by the

Interstate Commerce Commission (ICC), of

DOD freight traffic will have its approval

revoked.

5. Insurance. a. Minimum public liability

insurance requirements are prescribed in title

49 of the Code of Federal Regulations (CFR)

387.9. Carrier agrees to ensure that the ICC

is provided proof of their public liability

insurance, in the form of a BMC 91 or 91–

X, or MCS 90, in accordance with sections 29

and 30 of the Motor Carrier Act of 1980.

Further, the Motor carrier agrees to provide

MTMC with a certificate of insurance form.

The certificate holder block of the form will

indicate that MTMC, ATTN: MTOP–QQ, will

be notified in writing, 30 days in advance of

any change or cancellation. The deductible

portion will be shown on the certificate. The

insurance underwriter must have a policy

holder’s rating in the Best’s Insurance Guide,

listed in the Fiscal Service Treasury

Department Circular 570, Listing of surety

companies.

b. The carrier agrees to also file with

MTMC proof of:

(1) Interstate Public Liability. Carrier will

ensure that its insurance company(s) file

with MTMC proof of public liability and

property damage insurance for the

transportation of hazardous commodities in

the minimum and amounts prescribed in 49

CFR 387.9.

(2) Intrastate Public Liability. Carrier will

ensure that its insurance company(s) file

with MTMC proof of insurance which meets

the estate requirements for public liability

and property damage for the transportation of

hazardous materials.

(3) Cargo Insurance. Carrier will also file

with MTMC proof of $150,000 per incident

minimum cargo insurance for loss and bulk

fuel which is set at $10,000.

c. The insurance, carried in the name of the

carrier, will be in force at all times while this

Agreement is in effect or until such time as

the carrier cancels all tenders. The carrier

agrees to ensure that the policies include a

provision requiring the insurer to notify

MTMC prior to any performance of service by

the carrier. Changes, renewals, and

cancellation notices must be also sent to:

MTMC, ATTN: MTOP–QQ. This requirement

applies to both interstate and intrastate

carriers. Carrier’s insurance policy(s) must

cover all equipment used to transport DOD

freight.

6. Performance Bond. a. Carrier agrees to

provide MTMC with a Performance Bond.

The bond secures performance and

fulfillment of the carrier obligation to deliver

DOD freight to destination. It will cover DOD

reprocurement costs as a result of carrier

default, abandoned shipments, or bankruptcy

by the carrier. The bond will not be utilized

for operational problems such as late pick up

or delivery, excessive transit time, refusals,

no shows, improper/inadequate equipment

or claims for lost or damaged cargo. The bond

must be issued by a surety company listed in

the Fiscal Service Treasury Department

Circular No. 570. The bond must be

completed on the form provided by MTMC.

The bond will be continuous until canceled.

MTMC will be notified in writing, 30 days in

advance of any change or cancellation. A

letter of intent, by the surety company, is

required with the initial application package.

Upon MTMC approval, the carrier agrees to

submit the performance bond before the

Tender of Service will be accepted.

b. The sum of the bond will be determined

as follows:

(1) Carriers having done business in their

own name with DOD for 3 years or more will

be required to submit a Performance Bond in

the amount of 2.5% of their total DOD

revenue, taken from the Freight Information

Systems Report (FINS), for the previous 12-

months, not to exceed $100,000 and not less

than $10,000.

(2) New carriers and those carriers having

done business in their own name with the

DOD for less than 3 years will be required to

submit a Performance Bond based on areas of

service they offer. Areas of service will be

computed as both origins and destinations

served.

1 state (including intrastate)—$10,000;

2 to 3 states—$50,000; and

4 or more states—$100,000.

(3) Once a carrier has been doing business

with the DOD for 3 years, their bond

requirement will change from areas of service

to percent revenue.

c. Bulk fuel carriers will be required to

submit a $10,000 performance bond.

d. Local drayage and commercial zone

carriers are exempt from the bond

requirement.

e. If carrier has secured the performance

bond as a result of qualifying under the

general commodity program or class A and

B program, no additional performance bond

is required.

7. Safety and Security. a. A

‘‘unsatisfactory’’ safety rating with the

Federal Highway Administration,

Department of Transportation, and/or with

the appropriate state agency or commission

in the case of intrastate. Safety ratings which

are ‘‘unsatisfactory,’’ ‘‘unconditional,’’

‘‘insufficient information,’’ or ‘‘not rated’’

will not be accepted. The carrier agrees to

permit unannounced safety inspections of its

facilities, terminals, equipment, employees,

and procedures by DOD civilian, military

personnel, or DOD contract employees,

inspection. Inspection of carrier equipment,

drivers’ records, route plans and inspection

reports will be permitted during both the

pickup and delivery of shipments and in

coordination with local police or other

authorities while in transit. Carrier also

agrees to allow inspection of carrier records
Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules 33413

and individual driver qualification files.

When requested, carrier agrees to provide

adequate evidence of an active driver safety,

security training and evaluation program.

Carrier agrees to furnish, on request, driver’s

Social Security Numbers to verify their

security clearances and allow for inspection

of carrier/driver records.

b. The carrier agrees to have in place a

company-wide safety and security

management program which includes

specific on-going safety and security

programs for each terminal location.

Individual terminal programs will encompass

planning and execution of safety and security

in routine operations, to include emergency

responders and planners, and with the local

police and fire authority. Carrier programs

will incorporate compliance with all

applicable Federal, State and local statutes or

requirements. Conformance with other safety

standards, such as NFPA Code 498, will be

accomplished as much as possible, with

compensating measures for deviations. Safety

and security programs at the company wide

or terminal level may be subject to evaluation

by a DOD representative.

c. The carrier agrees to notify, within a

reasonable period of time, the consignor and

consignee names by the Government Bill of

Lading (GBL) of cargo loss, damage, or

unusual delay. Carrier also agrees to notify

the consignor or consignee named on the

GBL immediately by telephone of an

accident, incident or significant delay. The

information to be reported will include

origin/destination, GBL number, shipping

paper information, time and place of

occurrence and other pertinent accident

details. Carriers agrees to notify the MTMC

area command annotated on the GBL and the

Defense Logistics Agency (DLA), within one

half (1⁄2) hour after notification of the

consignor and consignee, and provide status

updates as required. The MTMC HOTLINE

and AOC telephone numbers are as follows:

—Eastern Area: (800) 524–0331; New Jersey

only: (800) 624–1361

—Western Area: (800) 331–1822; California

only: (800) 348–4639

—DLA: (800) 851–8061

When requested, carrier agrees to furnish

MTMC a copy of accident reports submitted

to Department of Transportation on Form

MCS 50–T (Property) or MCS 50–B

(Passengers) when DOD classes A and B

explosives movements are involved.

d. Carrier agrees to provide the driver(s)

transporting protected commodities an

emergency telephone number (indicated on

the last page of this Agreement) which, when

used at any time (24-hours a day, 7 days a

week), will reach a qualified carrier

representative who will be able to provide

information and assistance. MTMC will be

immediately notified if this telephone

number is changed. Carrier also agrees to

equip the vehicle transporting the material

with communications equipment (citizens

band radio, mobile phone, etc.) capable of

being used to obtain assistance in an

emergency.

e. Carriers approved to transport DOD

hazardous materials requiring TPS agree that

no driver disqualified under 49 CFR 391.15

will be permitted to operate any vehicle

transporting such commodities.

f. Carriers approved to transport DOD

hazardous materials agree to ensure that

drivers of a motor vehicle transporting such

drivers of motor vehicle transporting such

commodities must undergo a physical

examination and must be certified physically

qualified to drive a commercial motor vehicle

in accordance with 49 CFR 391.43. Carrier

also agrees to have driver screening programs

in place to ensure that the provisions of this

paragraph are met.

8. Drivers Requirement. a. Driver agrees to

ensure that the driver(s) employed to

transport hazardous commodities driving

experience (using similar equipment prior to

transporting hazardous commodities, and

that its drivers are trained and competent in

the movement of these commodities to

include an understanding of the following:

49 CFR part 397, instructions on procedures

to be followed in the event of a delay, nature

of the materials being transported,

precautions to be taken in an emergency;

written route plans; and shipping paper

entries. The carrier will certify that the driver

is trained and competent in the movement of

hazardous commodities, and proof of

certification must be carrier in the vehicle of

the unit transporting these commodities.

b. The carrier agrees to further ensure that

driver(s) carry a valid commercial motor

vehicle operator’s license issued by his/her

state of domicile, a certificate of physical

examination issued during the preceding 24

months, and an employee record card, or

similar document, one of which must contain

the driver’s photograph. The driver(s) must

be 21 years of age. The driver(s) must carry

a company picture identification to verify

affiliation with the carrier named on the GBL.

9. Equipment. a. Trip leased equipment,

with or without drivers, will not be used to

transport hazardous materials for the account

of the DOD. Exceptions for the use of

intermittent or occasional drivers in 49 CFR

391.63 will not apply to any DOD movement.

Any equipment, with or without drivers,

leased to augment carrier-owned equipment

will be on a not less than 90-day

noncancellable basis.

b. A copy of the equipment lease

agreement must be carried in the vehicle of

the unit transporting these commodities.

(Facsimile, Xerox, or otherwise reproduced

copies are not acceptable.) Interchange

agreements which originate at origin will be

considered trip leases and will not be

accepted. The lease must be complete at time

of pick up and should require no further

information to be completed by the driver.

Failure to comply with this requirement or

attempted abuse of this requirement could

result in the carrier’s participation in this

type traffic to be immediately revoked and up

to a nationwide disqualification on all DOD

freight shipments should further action

under the Carrier Performance Program be

deem appropriate.

c. Carriers approved to transport DOD

hazardous material requiring TPS agree to

comply with all equipment requirements

contained in paragraph 8 of the Agreement

Between the Military Traffic Management

Command and Motor Carriers Governing the

Transportation of Shipments Which Require

a Transportation Protective Service for and

on behalf of the U.S. Department of Defense.

10. Shipment. a. Carrier is responsible for

shipments from origin to ultimate

destination. The carrier also remains

responsible for shipments placed in a safe

haven or refuge location. Carrier agrees not

to disclose any information to unauthorized

persons concerning the nature, kind,

quantity, destination, consignee or routing of

any hazardous material shipment tendered to

it. The carrier further agrees to provide, at no

additional cost to the Government, the status

of any shipment within 24-hours after an

inquiry is made.

b. Carrier agrees to ensure that shipperprovided placards are displayed in

accordance with the general requirements

found in 49 CFR 172.504 for the

transportation of hazardous materials. The

carrier further agrees to conform to the

requirements found in 49 CFR 177.825

pertaining to the transportation of radioactive

materials for which placarding is required.

Carrier also agrees to route all other

shipments of hazardous commodities in

accordance with the provisions of 49 CFR

397.9.

c. When requested by the shipper for

reasons of security, carrier agrees to cover the

shipment with a carrier-provided tarpaulin.

Protective tarping is an accessorial service.

d. Carriers approved to transport DOD

hazardous materials requiring TPS agree to

comply with all shipment requirements

contained in paragraph 9 of the Agreement

Between the Military Traffic Management

Command and Motor Common Carriers

Governing the Transportation of Shipments

Which Require a Transportation Protective

Service (TPS) for and on behalf of the U.S.

Department of Defense.

11. Documentation. a. The carrier agrees to

accept GBLs on which freight charges will be

paid by the Government, and bound by all

terms stated on the Standard Form (SF)–

1103, GBL, regardless of the type of bill of

lading tendered.

b. The carrier will comply with the

documentation prelodge procedures in effect

at Military Ocean Terminals or the

installation, when cargo is consigned for

further movement overseas. (Prelodging is

the submission of advance shipment

documents which identifies the shipment to

the Military Ocean Terminal prior to delivery

of the cargo at the terminal.) Instructions will

be provided by the consignor to furnish

certain data at least 24-hours in advance of

cargo delivery to the terminal.

12. Loss or Damage. The carrier agrees to

be liable for loss or damage to cargo in

accordance with the provisions of 49 U.S.C.

11707 (the Carmack Amendment to the

Interstate Commerce Act.) Carrier agrees to

promptly settle uncontested claims for loss or

damage.

13. Standard Tender of Service. a. The

carrier agrees to comply with the preparation

and filing instructions in applicable freight

traffic rules publications issued by MTMC.

Carrier understands that MTMC will reject

tenders not in compliance with these

instructions.

b. Carrier agrees to provide a street address

where the company office is located in lieu

of post office box number. Carrier agrees to

provide the address prior to or in conjunction
33414 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules

with submission of any tenders or other rate

schedules. The carrier agrees to also advise

MTMC of any change in address prior to the

effective date of the change. Failure to do so

is grounds to discontinue use of the carriers.

c. Carrier understands that tenders

inadvertently accepted and distributed for

use and not in compliance with this

agreement, the provisions contained in the

Standard Tender of Freight Services (MT

Form 364–R), or the application MNC Freight

Traffic Rules Publication, and supplements

thereof, will be subject to immediate removal

or non-use until corrections are made. The

issuing carrier will be advised when tenders

are removed under these circumstances.

14. Rates. a. Carrier agrees to transport

shipments at the lowest tender rate

specifically applicable to the department or

agency involved.

b. The carrier’s rates must be on file with

MTMC, HQ Eastern Area, ATTN: MTE–IN,

Bayonne, New Jersey 07002–5302. The

carrier must publish all rates, charges, and

accessorial services on a ‘‘Department of

Defense Standard Tender of Freight Services’’

MT Form 364–R and must comply with the

tender preparation instructions. (Only

services annotated with a charge in the

tender will be paid by the shipper.)

15. Carrier Performance. Carrier agrees that

carrier’s equipment, performance and status

of service will conform with its obligations

under Federal, State and local law and

regulation as well as with the guidelines

found in the Defense Traffic Management

Regulation (DTMR) and this Agreement. The

carrier fully understands its obligation to

remain current in its knowledge of service

standards. The carrier accepts the

Government’s right to revoke approval,

declare ineligible, non-use, or disqualify the

carrier for unsatisfactory service for any

operating deficiency, noncompliance with

the terms of this Agreement or terms of any

negotiated agreements, tariffs, tenders, bills

of lading or similar arrangements

determining the relationship of the parties, or

for the publication of unreasonable rates,

charges, rules, descriptions, classifications,

practices, or other unreasonable provisions of

tariffs/tenders. Rules governing the Carrier

Performance Program are found in MTMC

Regulation 15–1, and Army Regulations 55–

355 DTMR. If a carrier is removed or

disqualified for 6 months or more, it will

have to be re-qualified.

16. General Provisions. The carrier must

possess a valid Standard Carrier Alpha Code

(SCAC). When a company holding the

appropriate authority has operating

divisions, each with its own unique SCAC,

each such division is required to execute a

separate agreement with MTMC governing

the transportation of protected commodities.

17. Terms of the Agreement. a. The terms

of this Agreement will be applicable to each

shipment.

b. This agreement shall be effective from

the date of approval by MTMC, until

terminated. Termination is effective upon

receipt of written notice by either party.

c. Nothing in this Agreement will be

construed as a guarantee, by the Government,

of any particular volume of traffic.

d. The carrier agrees to immediately notify

MTMC of any changes in ownership, in

affiliations, executive officers, and/or board

members, and carrier name. Carrier

understands that failure to notify MTMC

shall be grounds for immediate revocation of

the carrier’s approval and their participation

in the movement of DOD freight.

18. Additional Specialized Requirements.

The terms of this Agreement will not prevent

different or additional requirements with

respect to negotiated agreements or added

requirements for other types of service and/

or commodities.

19. Inquiries. Inquiries may be referred to:

Commander, MTMC, Attn: MTOP–QQ, Falls

Church, Virginia 22041–5050.

20. Carrier Acknowledgment and

Acceptance. The certifying carrier official

agrees to ensure that the appropriate

company officials and employees are familiar

with the requirements, terms and conditions

of this Agreement and are in full compliance

with the applicable provisions herein. Any

information found to be falsely represented

in the Motor Carrier Qualification Form, the

attachments or during the qualification

procedures, to include additional

requirements of this Agreement, shall be

grounds for automatic revocation of this

Agreement and immediate non-use of the

carrier, the affiliated companies, division and

entities, I,

llllllllllllllllllll,

verify under penalty of perjury under the

laws of the United States of America, that the

information contained in the carrier

qualification application packet and this

Agreement is true, correct and complete. If

representing a company or organization, I

certify that I am qualified and authorized to

offer this information. I know that willful

misstatements or omissions of material facts

constitute Federal criminal violations

punishable under 18 U.S.C. 1001 by up to 5

years imprisonment and fines up to $10,000

for each offense, or punishable as perjury

under 18 U.S.C. 1621 by fines up to $2,000

or imprisonment up to 5 years for each

offense. Further, I understand the

requirements of this Agreement and on

behalf of:

llllllllllllllllllll

(Typed Name of Carrier and MC Number)

agree to comply with the terms and

conditions contained herein.

lllllllllllllllllllll

(Signature of Carrier Official and Title)

Signature of Agent Official and Title:

lllllllllllllllllllll

lllllllllllllllllllll

Date: llllllllllllllllll

Address: llllllllllllllll

Telephone Number: (llllllll) ll

24-Hr Emergency Number: llllllll

(llllllll)

Interstate Operating Authority Certificate

Number—MC: llllllllllllll

Intrastate Operating Authority: llllll

Certificate Number(s) Include: llllll

Issuing State—For Example: lllllll

PA—#12345

Military Traffic Management Command

Acknowledgment/Acceptance

Signature and Title:

lllllllllllllllllllll

Date Approved: lllllllllllll

Gregory D. Showalter,

Army Federal Register Liaison Officer.

[FR Doc. 96–16147 Filed 6–26–96; 8:45 am]

BILLING CODE 3710–08–M

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[GA–30–3–9615b; FRL–5519–1]

Approval and Promulgation of

Implementation Plans; Approval of

Revisions to the State Implementation

Plan; Georgia

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: EPA is approving the State

Implementation Plan (SIP) revision

submitted by the State of Georgia

through the Department of Natural

Resources, Environmental Protection

Division (GA EPD) for the purpose of

deleting the volatile organic compound

(VOC) reasonably available control

technology (RACT) rule for

Perchloroethylene Dry Cleaners. In the

final rules section of this Federal

Register, the EPA is approving the

State’s SIP revision as a direct final rule

without prior proposal because the

Agency views this as a noncontroversial

revision amendment and anticipates no

adverse comments. A detailed rationale

for the approval is set forth in the direct

final rule. If no adverse comments are

received in response to that direct final

rule, no further activity is contemplated

in relation to this proposed rule. If EPA

receives adverse comments, the direct

final rule will be withdrawn and all

public comments received will be

addressed in a subsequent final rule

based on this proposed rule. The EPA

will not institute a second comment

period on this document. Any parties

interested in commenting on this

document should do so at this time.

DATES: To be considered, comments

must be received by July 29, 1996.

ADDRESSES: Written comments on this

action should be addressed to Scott M.

Martin at the EPA Regional Office listed

below.

Copies of the documents relative to

this action are available for public

inspection during normal business

hours at the following locations. The

interested persons wanting to examine

these documents should make an

appointment with the appropriate office

at least 24 hours before the visiting day.