Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Rules and Regulations 36611 

(Authority: 10 U.S.C. 1174(h)(2)) 

* * * * * 

William F. Russo, 

Director of Regulations Management. 

[FR Doc. E9–17308 Filed 7–23–09; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF HOMELAND 

SECURITY 

Federal Emergency Management 

Agency 

44 CFR Part 62 

[Docket ID FEMA–2008–0001] 

RIN 1660–AA58 

National Flood Insurance Program 

(NFIP); Assistance to Private Sector 

Property Insurers; Write-Your-Own 

Arrangement 

AGENCY: Federal Emergency 

Management Agency, DHS. 

ACTION: Final rule. 

SUMMARY: This rule adopts as final, 

without change, an interim rule 

published on April 3, 2008. The interim 

rule amended portions of the Federal 

Emergency Management Agency, 

Federal Insurance Administration, 

Financial Assistance/Subsidy 

Arrangement between Write-Your-Own 

Companies and FEMA. The added 

language assisted WYO Companies by 

recognizing each party’s duties under 

the Arrangement and amended the way 

FEMA communicates changes to the 

Unallocated Loss Adjustment Expenses 

compensation rate to WYO Companies. 

DATES: This rule is effective August 24, 

2009. 

FOR FURTHER INFORMATION CONTACT: 

Edward L. Connor, Acting Federal 

Insurance Administrator, Federal 

Emergency Management Agency, 500 C 

Street, SW., Washington, DC 20472, 

(202) 646–3429 (Phone), (202) 646–3445 

(facsimile), or Edward.Connor@dhs.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Under the authority of sections 1304 

and 1345 of the National Flood 

Insurance Act of 1968, Public Law 90– 

448, 82 Stat. 476, as amended (42 U.S.C. 

4011, 4081), the Federal Emergency 

Management Agency (FEMA) provides 

insurance protection against flood 

damage to homeowners, businesses, and 

others by means of the National Flood 

Insurance Program (NFIP). The sale of 

flood insurance is largely implemented 

by private insurance companies that 

participate in the NFIP Write-Your-Own 

(WYO) program. Through the WYO 

program, insurance companies enter 

into agreements with FEMA to sell and 

service flood insurance policies and 

adjust claims after flood losses. 

Under the WYO program, 88 private 

sector property insurers issue flood 

insurance policies and adjust flood 

insurance claims under their own 

names based on the Financial 

Assistance/Subsidy Arrangement 

(Arrangement). The Arrangement is 

published at 44 CFR part 62, Appendix 

A and defines the duties and 

responsibilities of insurers that sell, 

service, and market insurance under the 

WYO program. The Arrangement also 

identifies the responsibilities of the 

Government to provide financial and 

technical assistance to these insurers. 

The Arrangement is renewed yearly 

through written agreement between the 

WYO Companies and FEMA. 

FEMA published an interim final rule 

on April 3, 2008, (73 FR 18182) in 

which it made three changes to the 

Arrangement. These changes either 

clarified existing practices or clarified 

how FEMA communicates certain 

information to WYO Companies. 

First, Article II, section G.3., was 

added to require the WYO Companies to 

notify their agents of the requirement to 

comply with State regulations regarding 

flood insurance agent education, notify 

them of flood insurance training 

opportunities needed to meet the 

minimum NFIP training requirements 

called for in section 207 of the BunningBereuter-Blumenauer Flood Insurance 

Reform Act of 2004, Public Law 108– 

264, 118 Stat. 727 (42 U.S.C. 4011 note), 

and assist FEMA in periodic assessment 

of agent training needs. Although WYO 

Companies were already undertaking 

these efforts, they were added to the 

Arrangement to formalize the 

commitment. 

Second, FEMA revised Article VII, 

section A. to provide additional 

clarification that there is no requirement 

that WYO Companies use their own 

funds to pay NFIP claims when there 

are no funds available in the National 

Flood Insurance Fund (NFIF) to be 

drawn down through the company letter 

of credit. In such circumstances, the 

Federal Insurance Administrator would 

suspend the NFIP’s payment of claims 

until funds are again available in the 

Treasury, and the WYO Companies 

would not be required to pay claims 

from their own funds in the event of 

such a suspension. This change was 

consistent with pre-existing FEMA 

policy. 

Finally, FEMA revised Article III, 

section C.1. of the Arrangement which 

deals with the Unallocated Loss 

Adjustment Expense (ULAE) for which 

WYO Companies receive reimbursement 

under the Arrangement. ULAE is 

intended to cover those claim handling 

expenses that are not associated with 

specific claims, such as maintaining the 

home office claims staff and establishing 

and running on-site claims field offices. 

Before the interim final rule, the ULAE 

rate was an expense reimbursement of 

3.3 percent of the incurred loss (except 

that it does not include ‘‘incurred but 

not reported’’). The effect of the interim 

final rule was to remove the ULAE 

compensation percentage from the 

Arrangement. Instead, the percentage is 

now communicated by FEMA to the 

WYO Companies through a formula that 

is not written into the Arrangement. For 

fiscal year 2009, the formula was sent to 

each WYO Company as part of their 

offer to renew their Financial 

Assistance/Subsidy Arrangement. 

Although the interim final rule was 

focused on the manner in which the 

ULAE formula is communicated to the 

WYO Companies, and not the actual 

ULAE rate itself, FEMA sought data to 

use in its efforts to revise the formula, 

and suggestions for ways to tailor the 

formula to ensure that it would 

accurately reimburse WYO Companies 

for their actual loss. WYO Companies 

were encouraged to submit actual ULAE 

data during the comment period of the 

interim final rule to assist FEMA in 

continuing to refine the formula. 

II. Discussion of Public Comments 

FEMA received no comments from 

the public regarding the interim final 

rule. All previously published 

rulemaking documents, including the 

interim final rule which contains an indepth explanation for the changes made, 

and supporting data are available in the 

public docket for this rulemaking. The 

public docket for this rulemaking is 

available online by conducting a search 

for Docket ID FEMA–2008–0001, at the 

Federal e-Rulemaking Portal at http:// 

www.regulations.gov. 

III. Regulatory Requirements 

Congressional Review of Agency 

Rulemaking 

FEMA has sent this final rule to the 

Congress and to the Government 

Accountability Office under the 

Congressional Review of Agency 

Rulemaking Act, 5 U.S.C. 801–808. As 

discussed in depth below in the 

Executive Order 12866 analysis, this 

rule is not a ‘‘major rule’’ within the 

meaning of that Act and will not result 

in an annual effect on the economy of 

$100,000,000 or more. Moreover, it will 

not result in a major increase in costs or 


rmajette on DSK29S0YB1PROD with RULES
36612 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Rules and Regulations 

1An NFIP insurance agent may satisfy the 

minimum training and education requirements by 

completing an online course, which may be approved for 3 hours of continuing education credit 

per year by State. 

prices for consumers, individual 

industries, Federal, State, or local 

government agencies, or geographic 

regions. Nor does FEMA expect that it 

will have ‘‘significant adverse effects’’ 

on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

enterprises to compete with foreignbased enterprises. 

This rule revised the Arrangement 

between the WYO Companies and 

FEMA to encourage agents writing flood 

insurance under the NFIP to avail 

themselves of the training opportunities 

needed to meet the minimum NFIP 

training requirements, to clarify that 

there is no requirement that WYO 

Companies use their own funds to pay 

NFIP claims when there are no funds 

available in the NFIF to be drawn down 

through the company letter of credit, 

and to change the method in which 

FEMA communicates the ULAE rate to 

the WYO Companies. These changes 

were made to improve the Arrangement 

and to allow FEMA to run the NFIP in 

a more efficient and reasonable manner. 

Executive Order 12866, Regulatory 

Planning and Review 

FEMA has prepared and reviewed this 

rule under the provisions of Executive 

Order 12866, Regulatory Planning and 

Review. Under Executive Order 12866, 

a significant regulatory action is subject 

to Office of Management and Budget 

(OMB) review and the requirements of 

the Executive Order. The Executive 

Order defines ‘‘significant regulatory 

action’’ as one that is likely to result in 

a rule that may: 

(1) Have an annual effect on the 

economy of $100 million or more or 

adversely affect in a material way the 

economy, a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

State, local, or Tribal governments or 

communities; 

(2) Create a serious inconsistency or 

otherwise interfere with an action taken 

or planned by another agency; 

(3) Materially alter the budgetary 

impact of entitlements, grants, user fees, 

or loan programs or the rights and 

obligations of recipients thereof; or 

(4) Raise novel legal or policy issues 

arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in the Executive Order. 

This final rule is not a ‘‘significant 

regulatory action’’, therefore OMB has 

not reviewed it under that Order. This 

rule adopts as final, without change, an 

interim rule published on April 3, 2008. 

The interim rule made three changes to 

the Arrangement. The first change 

simply clarifies existing practices. 

Article II, section G.3., was added to 

address the WYO Companies’ 

cooperation in helping ensure that 

agents writing flood insurance under the 

NFIP meet the minimum NFIP training 

requirements.1 This new section of the 

Arrangement will not affect the training 

and education requirements, which are 

already established by the States. 

Although WYO Companies are already 

undertaking these efforts, they were 

added to the Arrangement to formalize 

the commitment. This change will have 

no economic impact. 

WYO Companies have sought 

clarification as to what would occur 

following a large scale flooding event if 

there are no funds available in the NFIP 

to be drawn down through the company 

letter of credit. Therefore, the second 

change clarifies that there is no 

requirement that WYO Companies use 

their own funds to pay NFIP claims 

when there are no funds available in the 

NFIP to be drawn down through the 

company letter of credit. The Federal 

Insurance Administrator will suspend 

the NFIP’s payment of claims until 

funds are again available in the 

Treasury. This change is consistent with 

pre-existing FEMA policy, will not 

affect the amount of FEMA’s funding, 

and will have no economic impact. 

Finally, FEMA revised Article III, 

section C.1. of the Arrangement which 

deals with the ULAE for which WYO 

Companies receive reimbursement 

under the Arrangement. The rule 

removed the fixed 3.3 percent of ULAE 

compensation from the Arrangement to 

allow FEMA added flexibility in 

adjusting the rate as needed to best align 

with the actual expenses incurred by the 

WYO Companies. At present, the ULAE 

is reimbursed according to a revised 

formula of 1 percent of net written 

premium and 1.5 percent of incurred 

loss. FEMA will adjust the rate as 

needed to reflect the actual expenses 

incurred by the WYO Companies on an 

annual basis. 

Table 1 below shows the historic 

ULAE compensation that the program 

paid to WYO Companies over the 21 

years from 1987 to 2007. These figures 

have been compiled using historic 

accounting statements submitted by the 

WYO Companies. The ULAE is 

intended to cover those claim handling 

expenses that are not associated with 

specific claims, such as maintaining the 

home office claims staff and establishing 

and running on-site claims field offices. 

The 3.3 percent rate functioned 

equitably during most years of the NFIP, 

under-compensating companies 

moderately in light loss years, while 

providing slightly more compensation 

in heavier loss years. However, after 

catastrophic disasters such as Hurricane 

Katrina, FEMA found that the 3.3 

percent fixed rate dramatically over 

compensated WYO Companies. 

The average annual impact of this rule 

is estimated to be $13.93 million per 

year (in 2007 $), which represents a 

decrease in the ULAE compensation to 

WYO Companies. However, in an 

‘‘average’’ loss year excluding the years 

2005 and 2006 for Hurricane Katrina, 

the NFIP has paid out approximately 

$22.02 million per year in ULAE 

(=$418,468,366/19). With the new 

formula, the annual impact would result 

in an increase in ULAE compensation to 

WYO Companies of $605,210 per year 

(in 2007 $). The annual impact will vary 

as the rate will be adjusted annually to 

reflect the actual expenses incurred by 

the WYO Companies; however, it is not 

likely to have a significant economic 

impact of $100 million or more per year. 

The data from 1987 to 2007 used to 

generate these figures is available in the 

public docket for this rulemaking. 

TABLE 1—THE IMPACT OF THE NEW FEE SCHEDULE

FY 

Net written 

premium (WP) 

(in 2007 $) 2

Incurred loss (IL) 

(in 2007 $) 

Fixed ULAE 

(3.3% of incurred 

loss) 

(in 2007 $) 

New ULAE fee 

schedule 

(1% of WP + 

1.5% of IL) 

(in 2007 $) 

New ULAE fee 

schedule less 

fixed ULAE 

(in 2007 $) 

1987 ................................................................. $581,620,328 $74,573,109 $2,460,913 $6,934,800 $4,473,887 

1988 ................................................................. 645,173,008 65,777,062 2,170,643 7,438,386 5,267,743 

1989 ................................................................. 715,237,333 369,480,867 12,192,869 12,694,586 501,718 


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Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Rules and Regulations 36613 

2Numbers were adjusted for inflation based on 

Consumer Price Index (CPI) published by the 

Bureau of Labor Statistics, http://inflationdata.com/ 

inflation/Inflation_Rate/HistoricalInflation.aspx. 

TABLE 1—THE IMPACT OF THE NEW FEE SCHEDULE—Continued 

FY 

Net written 

premium (WP) 

(in 2007 $) 2

Incurred loss (IL) 

(in 2007 $) 

Fixed ULAE 

(3.3% of incurred 

loss) 

(in 2007 $) 

New ULAE fee 

schedule 

(1% of WP + 

1.5% of IL) 

(in 2007 $) 

New ULAE fee 

schedule less 

fixed ULAE 

(in 2007 $) 

1990 ................................................................. 769,271,356 685,763,329 22,630,190 17,979,164 ¥4,651,026 

1991 ................................................................. 780,514,853 206,603,224 6,817,906 10,904,197 4,086,290 

1992 ................................................................. 796,262,026 473,136,630 15,613,509 15,059,670 ¥553,839 

1993 ................................................................. 866,436,821 1,097,485,315 36,217,015 25,126,648 ¥11,090,367 

1994 ................................................................. 932,647,295 270,791,261 8,936,112 13,388,342 4,452,230 

1995 ................................................................. 1,041,750,604 1,314,742,022 43,386,487 30,138,636 ¥13,247,850 

1996 ................................................................. 1,157,008,118 1,152,337,444 38,027,136 28,855,143 ¥9,171,993 

1997 ................................................................. 1,294,209,933 885,147,617 29,209,871 26,219,314 ¥2,990,558 

1998 ................................................................. 1,500,206,671 522,197,486 17,232,517 22,835,029 5,602,512 

1999 ................................................................. 1,528,655,735 909,405,646 30,010,386 28,927,642 ¥1,082,744 

2000 ................................................................. 1,557,194,095 514,278,754 16,971,199 23,286,122 6,314,923 

2001 ................................................................. 1,678,554,108 1,495,645,122 49,356,289 39,220,218 ¥10,136,071 

2002 ................................................................. 1,796,558,215 276,916,036 9,138,229 22,119,323 12,981,093 

2003 ................................................................. 1,853,315,163 559,297,309 18,456,811 26,922,611 8,465,800 

2004 ................................................................. 1,945,458,730 1,014,727,339 33,486,002 34,675,497 1,189,495 

2005 ................................................................. 2,060,079,530 7,612,410,664 251,209,552 134,786,955 ¥116,422,597 

2006 ................................................................. 2,353,434,684 11,730,924,332 387,120,503 199,498,212 ¥187,622,291 

2007 ................................................................. 2,535,371,429 792,553,990 26,154,282 37,242,024 11,087,742

Total .......................................................... 28,388,960,039 32,024,194,560 1,056,798,420 764,252,519 ¥292,545,902 

Per Year ........................................................... 1,351,855,240 1,524,961,646 50,323,734 36,392,977 ¥13,930,757 

National Environmental Policy Act 

FEMA’s regulations implementing the 

National Environmental Policy Act of 

1969 (42 U.S.C. 4321 et seq.) at 

paragraph (ii) of 44 CFR 10.8(d)(2) 

categorically exclude the preparation, 

revision, and adoption of regulations, 

directives, manuals, and other guidance 

documents related to actions that 

qualify for categorical exclusions. The 

changes made in this regulation 

constitute actions to enforce Federal, 

State or local codes, standards or 

regulations. This rulemaking will not 

have a significant effect on the human 

environment and, therefore, neither an 

environmental assessment nor an 

environmental impact statement are 

required. 

Executive Order 13132, Federalism 

Executive Order 13132, entitled 

‘‘Federalism,’’ (64 FR 43255, Aug. 10, 

1999), sets forth principles and criteria 

that agencies must adhere to in 

formulating and implementing policies 

that have federalism implications; that 

is, regulations that have substantial 

direct effects on the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Federal agencies 

must closely examine the statutory 

authority supporting any action that 

would limit the policymaking discretion 

of the States, and to the extent 

practicable, must consult with State and 

local officials before implementing any 

such action. The changes in this rule 

affect the contractual relationship 

between FEMA and WYO Companies. 

Participation as a WYO Company is 

voluntary and does not affect State 

policymaking discretion. In accordance 

with section 6 of Executive Order 

13132, FEMA determines that this rule 

will not have federalism implications 

sufficient to warrant the preparation of 

a federalism impact statement. 

Paperwork Reduction Act of 1995 

As required by the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.), an agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid OMB control number. 

This rule does not impose any new 

reporting or recordkeeping 

requirements, nor does it revise 

information collection requirements 

currently approved under the 

Paperwork Reduction Act of 1995. 

Executive Order 12988, Civil Justice 

Reform 

FEMA has reviewed this rule under 

Executive Order 12988, ‘‘Civil Justice 

Reform’’ (61 FR 4729, Feb. 7, 1996). 

This rule meets applicable standards to 

minimize litigation, eliminate 

ambiguity, and reduce burden. 

Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies, to the extent permitted 

by law, to prepare a written assessment 

of the effects of any Federal mandate in 

a proposed or final agency rule that may 

result in the expenditure by State, local, 

and Tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more in any one year. 

Though this rule will not result in such 

an expenditure, FEMA does discuss the 

effects of this rule elsewhere in this 

preamble. 

Moreover, because this rule addresses 

a pre-existing Arrangement between 

FEMA, Federal Insurance 

Administration, and WYO Companies it 

does not impose any additional 

enforceable duty beyond that already 

established. Participation as a WYO 

Company is voluntary and does not 

affect State policymaking discretion. 

Accordingly, this rule does not contain 

any unfunded mandate or significantly 

or uniquely affect small governments, as 

described in the Unfunded Mandates 

Reform Act of 1995. 

Executive Order 12898, Environmental 

Justice 

Under Executive Order 12898, 

‘‘Federal Actions to Address 

Environmental Justice in Minority 

Populations and Low-Income 


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36614 Federal Register / Vol. 74, No. 141 / Friday, July 24, 2009 / Rules and Regulations 

Populations’’ (59 FR 7629, Feb. 16, 

1994), FEMA incorporates 

environmental justice into its policies 

and programs. The Executive Order 

requires each Federal agency to conduct 

its programs, policies, and activities that 

substantially affect human health or the 

environment in a manner that ensures 

that those programs, policies, and 

activities do not have the effect of 

excluding persons from participation in 

programs, denying persons the benefits 

of programs, or subjecting persons to 

discrimination because of race, color, or 

national origin. FEMA believes that no 

action under this rule will have a 

disproportionately high or adverse effect 

on human health or the environment, 

and that the rule meets the requirements 

of the Executive Order. 

Executive Order 13045, Protection of 

Children 

FEMA has analyzed this rule under 

Executive Order 13045, Protection of 

Children from Environmental Health 

Risks and Safety Risks. This rule is not 

an economically significant rule and 

would not create an environmental risk 

to health or safety that might 

disproportionately affect children. 

Executive Order 13175, Consultation 

and Coordination With Indian Tribal 

Governments 

FEMA has reviewed this rule under 

Executive Order 13175, ‘‘Consultation 

and Coordination with Indian Tribal 

Governments’’ (65 FR 67249, Nov. 9, 

2000). This rule will not have a 

substantial direct effect on one or more 

Indian Tribes, on the relationship 

between the Federal Government and 

Indian Tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian Tribes. 

Executive Order 12630, Governmental 

Actions and Interference With 

Constitutionally Protected Property 

Rights 

FEMA has reviewed this rule under 

Executive Order 12630, ‘‘Governmental 

Actions and Interference with 

Constitutionally Protected Property 

Rights’’ (53 FR 8859, Mar. 18, 1988) as 

supplemented by Executive Order 

13406, ‘‘Protecting the Property Rights 

of the American People’’ (71 FR 36973, 

June 28, 2006). This rule will not effect 

a taking of private property or otherwise 

have taking implications under 

Executive Order 12630. 

List of Subjects in 44 CFR Part 62 

Claims, Flood insurance, Reporting 

and recordkeeping requirements. 

■ Accordingly, the interim rule 

amending 44 CFR part 62 which was 

published at 73 FR 18182, Apr. 3, 2008, 

is adopted as final without change. 

Dated: July 16, 2009. 

W. Craig Fugate, 

Administrator, Federal Emergency 

Management Agency. 

[FR Doc. E9–17744 Filed 7–23–09; 8:45 am] 

BILLING CODE 9110–12–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

49 CFR Parts 356, 365, and 374 

[Docket No. FMCSA–2008–0235] 

RIN 2126–AB16 

Elimination of Route Designation 

Requirement for Motor Carriers 

Transporting Passengers Over Regular 

Routes 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Notice of disposition. 

SUMMARY: On March 17, 2009, FMCSA 

published a notice in the Federal 

Register (74 FR 11318) extending the 

effective date of its January 16, 2009 

final rule entitled ‘‘Elimination of Route 

Designation Requirement for Motor 

Carriers Transporting Passengers Over 

Regular Routes’’ until June 15, 2009. 

This allowed for the solicitation of 

additional public comments on the final 

rule and gave the incoming 

Administration sufficient time to 

consider and respond to comments. 

After reviewing the one comment that 

was received, FMCSA decided to allow 

the January 19, 2009 final rule to go into 

effect. This notice addresses the 

comment that was submitted. 

DATES: The effective date for the rule 

amending 49 CFR Parts 356, 365, and 

374 published at 74 FR 2895 on January 

16, 2009, was June 15, 2009. The 

compliance date for this rule was July 

15, 2009. 

FOR FURTHER INFORMATION CONTACT: Mr. 

David Miller, Regulatory Development 

Division, (202) 366–5370 or by e-mail at: 

FMCSAregs@dot.gov. 

SUPPLEMENTARY INFORMATION: 

On January 16, 2009, FMCSA 

published a final rule announcing the 

discontinuation of the administrative 

requirement that applicants seeking forhire authority to transport passengers 

over regular routes submit a detailed 

description and a map of the route(s) 

over which they propose to operate (74 

FR 2895). The Agency indicated that it 

will register such carriers as regularroute carriers without requiring the 

designation of specific regular routes 

and fixed end-points. Once motor 

carriers have obtained regular-route, forhire operating authority from FMCSA, 

they will no longer need to seek 

additional FMCSA approval in order to 

change or add routes. The rule amended 

certain provisions of 49 CFR Parts 356, 

365 and 374 to make them consistent 

with the Agency’s discontinuation of 

the route designation requirement. Each 

registered regular-route motor carrier of 

passengers will continue to be subject to 

the full safety oversight and 

enforcement programs of FMCSA and 

its State and local partners. 

The effective date of the rule was 

originally March 17, 2009, with a 

compliance date of July 15, 2009. In 

accordance with the January 20, 2009 

memorandum from the Assistant to the 

President and Chief of Staff (74 FR 

4435), FMCSA published a notice on 

March 3, 2009 seeking comment on a 

proposal to delay the effective date of 

the final rule for 90 days (74 FR 9172). 

Based on comments submitted in 

response to the March 3 notice, FMCSA 

extended the effective date of the final 

rule from March 17, 2009, to June 15, 

2009, for the purpose of allowing the 

new leadership of the Department of 

Transportation to review the proceeding 

and to seek additional public comment 

(74 FR 11318, March 17, 2009). 

Comments to the March Notice 

Greyhound Lines, Inc. (Greyhound) 

submitted the only comment to the 

March 17 notice. Greyhound expressed 

concern that the Agency’s proposal 

would prevent meaningful 

implementation of the Over-The-Road 

Bus Transportation Accessibility Act of 

2007, Public Law 110–291, 122 Stat. 

2915, July 30, 2008 because, without 

route designations, FMCSA would be 

unable to assess whether an applicant 

for new operating authority has 

adequate equipment and systems to 

comply with the Americans with 

Disabilities Act (ADA). Moreover, 

eliminating the need for existing carriers 

to seek new authority before expanding 

their operations would eliminate 

FMCSA’s ability to assess ADA 

compliance before allowing route 

expansion. 

Greyhound also took issue with the 

Agency’s statement, in the preamble to 

the final rule, that FMCSA and its 

predecessor agencies have not used 

route designations in determining 

whether an applicant could operate 

safely over a specific route, but 

provided no cases to support its 

position. Greyhound reiterated 

arguments, made previously in this 


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