Document ID: FRA-2008-0136-0007
Agency: fra
Document Type: Rule
Title: Monetary Threshold for Reporting Rail Equipment Accidents/Incidents for Calendar Year 2015
Posted Date: 2014-12-24T05:00Z

[Federal Register Volume 79, Number 247 (Wednesday, December 24, 2014)]
[Rules and Regulations]
[Pages 77397-77399]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30113]

[[Page 77397]]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 225

[FRA-2008-0136, Notice No. 7]
RIN 2130-ZA12

Monetary Threshold for Reporting Rail Equipment Accidents/
Incidents for Calendar Year 2015

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Final rule.

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SUMMARY: This rule maintains the rail equipment accident/incident 
monetary reporting threshold at $10,500 for railroad accidents/
incidents involving property damage that occur during calendar year 
(CY) 2015 that FRA's accident/incident reporting regulations require to 
be reported to the agency. FRA is maintaining the reporting threshold 
at the CY 2014 level because, in part, wage data for the second-quarter 
of 2014, (the data used to calculate the threshold) was abnormally high 
due to retroactive payment of wage increases resulting from labor 
contract agreements affecting several railroads. FRA believes that the 
data does not accurately reflect the changes in labor costs for the 
second-quarter of 2014 and leads to an overinflated threshold 
calculation for CY 2015. In addition, FRA is maintaining the monetary 
threshold for CY 2015 at the CY 2014 level while it reexamines the 
method for calculating the monetary threshold it last updated in 2005.

DATES: This final rule is effective January 1, 2015.

FOR FURTHER INFORMATION CONTACT: Kebo Chen, Staff Director, U.S. 
Department of Transportation, Federal Railroad Administration, Office 
of Safety Analysis, RRS-22, Mail Stop 25, West Building 3rd Floor, Room 
W33-314, 1200 New Jersey Ave. SE., Washington, DC 20590 (telephone 202-
493-6079); or Sara Mahmoud-Davis, Trial Attorney, U.S. Department of 
Transportation, Federal Railroad Administration, Office of Chief 
Counsel, RCC-10, Mail Stop 10, West Building 3rd Floor, Room W33-435, 
1200 New Jersey Ave. SE., Washington, DC 20590 (telephone 202-366-
1118).

SUPPLEMENTARY INFORMATION:

Background

    A ``rail equipment accident/incident'' is a collision, derailment, 
fire, explosion, act of God, or other event involving the operation of 
railroad on-track equipment (standing or moving) that results in 
damages to railroad on-track equipment, signals, tracks, track 
structures, or roadbed, including labor costs and the costs for 
acquiring new equipment and material, greater than the reporting 
threshold for the year in which the event occurs. 49 CFR 225.19(c). 
Each rail equipment accident/incident must be reported to FRA using the 
Rail Equipment Accident/Incident Report (Form FRA F 6180.54). 49 CFR 
225.19(b), (c) and 225.21(a). Paragraphs (c) and (e) of 49 CFR 225.19 
further provide that FRA will adjust the dollar figure that constitutes 
the reporting threshold for rail equipment accidents/incidents, if 
necessary, every year under the procedures outlined in appendix B to 
part 225 (Appendix B) to reflect any cost increases or decreases.
    In this rule, FRA is keeping the monetary threshold for CY 2015, at 
$10,500, the same as the monetary threshold for CY 2014. FRA is 
maintaining the reporting threshold at the CY 2014 level, because, in 
part, wage data for the second-quarter of 2014 (the data used to 
calculate the threshold) was abnormally high due to large, lump sum 
retroactive payments of wage increases resulting from labor contract 
agreements affecting several railroads. FRA believes the data does not 
accurately reflect the changes in labor costs for CY 2014.
    In addition to periodically reviewing and adjusting the annual 
threshold under Appendix B, FRA periodically amends its method for 
calculating the threshold. In 49 U.S.C. 20901(b) Congress requires that 
we base the threshold on publicly available information obtained from 
the Bureau of Labor Statistics (BLS), other objective government 
source, or be subject to notice and comment. In 1996 FRA adopted a new 
method for calculating the monetary reporting threshold for accidents/
incidents. See 61 FR 60632, Nov. 29, 1996. In 2005, FRA again amended 
its method for calculating the reporting threshold because the BLS 
ceased collecting and publishing the railroad wage data used by FRA in 
the threshold calculation. Consequently, FRA substituted railroad 
employee wage data the Surface Transportation Board collected for the 
BLS data that was no longer collected (70 FR 75414, Dec. 20, 2005). In 
2015, FRA intends to evaluate and amend, if appropriate, its method for 
calculating the monetary threshold for accident/incident reporting and, 
as a result, the formula utilized to calculate the threshold may 
change. FRA intends to reexamine its method for calculating the 
reporting threshold because, since 2005, new data sources and 
methodologies for calculating the threshold have become available and 
updating the formula to include these advances will ensure it 
appropriately reflects changes in equipment and labor costs.

Maintaining Current Reporting Threshold

    Approximately one year has passed since FRA revised the rail 
equipment accident/incident reporting threshold (78 FR 77601, Dec. 24, 
2013). Consequently, FRA reviewed the threshold, as 49 CFR 225.19(c) 
requires and found that costs for labor increased but costs for 
equipment decreased relative to one year ago. However, for the reasons 
explained above related to the wage data used to calculate the 
threshold, FRA has determined it will continue to use the current 
reporting threshold of $10,500, which applied to rail equipment 
accidents/incidents that occurred in calendar year 2014, to rail 
equipment accidents/incidents that occur in calendar year 2015.\1\
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    \1\ Although FRA is maintaining the reporting threshold at the 
2014 level, for reference the specific inputs to the equation set 
forth in Appendix B of Part 225 (i.e., Tnew = Tprior * [1 + 
0.4(Wnew-Wprior)/Wprior + 0.6(Enew - Eprior)/100]) are:
    Tprior = $10,500; Wnew = $29.64700; Wprior = $26.93344; Enew = 
196.56667; Eprior = 197.23333.
    Where: Tnew = New threshold; Tprior = Prior threshold (with 
reference to the threshold, ``prior'' refers to the previous 
threshold rounded to the nearest $100, as reported in the Federal 
Register); Wnew = New average hourly wage rate, in dollars; Wprior = 
Prior average hourly wage rate, in dollars; Enew = New equipment 
average Producer Price Index (PPI) value; Eprior = Prior equipment 
average PPI value. Using the above figures, the calculated new 
threshold, (Tnew) is $10,881.15, which would be rounded to the 
nearest $100 for a potential final new reporting threshold of 
$10,900.
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Notice and Comment Procedures

    In this rule, FRA is maintaining the current monetary reporting 
threshold for the reasons explained above, and, under the final rule 
published December 20, 2005, 70 FR 75414. FRA has found this rule 
imposes no additional burden on any person, but rather is intended to 
provide a benefit by permitting the valid comparison of accident data 
over time. Accordingly, finding that notice and comment procedures are 
either impracticable, unnecessary, or contrary to the public interest, 
FRA is proceeding directly to a final rule.
    As appropriate, FRA regularly recalculates the monetary reporting 
threshold using the formula published in Appendix B near the end of 
each calendar year. FRA attempts to use the most recent data available 
to calculate the updated reporting threshold prior to the next calendar 
year. FRA has found that issuing the rule no later than

[[Page 77398]]

December of each calendar year and making the rule effective on January 
1, of the next year, allows FRA to use the most up-to-date data to 
calculate the reporting threshold and to compile data that accurately 
reflects rising wages and equipment costs. As such, FRA finds that it 
has good cause to make this final rule effective January 1, 2015.

Regulatory Impact

Executive Orders 12866 and 13563 and DOT Regulatory Policies and 
Procedures

    FRA evaluated this rule under existing policies and procedures, and 
determined it to be non-significant under both Executive Orders 12866 
and 13563 in addition to DOT policies and procedures (44 FR 11034, Feb. 
26, 1979).

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612) requires 
a review of proposed and final rules to assess their impact on small 
entities, unless the Secretary certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Pursuant to Section 312 of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), FRA has issued a final policy 
statement that formally establishes ``small entities'' are railroads 
that meet the line-haulage revenue requirements of a Class III 
railroad. 49 CFR part 209, app. C. For other entities, the same dollar 
limit in revenues governs whether a railroad, contractor, or other 
respondent is a small entity. Id.
    FRA considers about 730 of the approximately 775 railroads in the 
United States small entities. FRA certifies this final rule will have 
no significant economic impact on a substantial number of small 
entities. To the extent that this rule has any impact on small 
entities, the impact will be neutral or insignificant. The frequency of 
rail equipment accidents/incidents, and, therefore, also the frequency 
of required reporting, is generally proportional to the size of the 
railroad. A railroad that employs thousands of employees and operates 
trains millions of miles is exposed to greater risks than one whose 
operation is substantially smaller. Small railroads may go for months 
at a time without having a reportable occurrence of any type, and even 
longer without having a rail equipment accident/incident. For example, 
current FRA data indicate that 1,912 rail equipment accidents/incidents 
were reported in 2009, with small railroads reporting 328 of them. Data 
for 2010 show that 1,903 rail equipment accidents/incidents were 
reported, with small railroads reporting 303 of them. In 2011, 2,022 
rail equipment accidents/incidents were reported, and small railroads 
reported 307 of them. In 2012, 1,760 rail equipment accidents/incidents 
were reported, with small railroads reporting 292 of them. In 2013, 
1,818 rail equipment accidents/incidents were reported, with small 
railroads reporting 302 of them. On average over those five calendar 
years, small railroads reported about 16% of the total number of rail 
equipment accidents/incidents, ranging from 15% to 17% annually. FRA 
notes that this data is accurate as of the date of issuance of this 
final rule, and are subject to minor changes due to additional 
reporting.
    This rulemaking maintains the monetary reporting threshold at the 
CY 2014 level of $10,500. Increasing the reporting threshold would have 
potentially slightly decreased the reporting burden for railroads in 
2015. In any case, railroads still maintain records of accountable 
accidents/incidents that are below the reporting threshold, thus 
minimizing any potential additional burden to report these accidents to 
FRA caused by keeping the threshold the same in CY 2015. Railroads 
would potentially incur a small reporting burden, but not the burden to 
gather this accident/incident information. Also, although wage rates 
have increased atypically, equipment costs have decreased during CY 
2014 compared to the same time period in CY 2013, according to the 
average Producer Price Index Series WPU144 for group transportation 
equipment and item railroad equipment the Bureau of Labor Statistics 
published for April, May, and June 2014. Therefore, the overall effect 
of this rule likely will be neutral or minimal in effect. Any change in 
recordkeeping burden will not be significant and will affect the large 
railroads more than the small entities, due to the higher proportion of 
reportable rail equipment accidents/incidents experienced by large 
entities.

Paperwork Reduction Act

    There are no new information collection requirements associated 
with this final rule. Therefore, FRA is not required to provide an 
estimate of a public reporting burden.

Federalism Implications

    Executive Order 13132, entitled, ``Federalism,'' signed on August 
4, 1999, requires that each agency ``in a separately identified portion 
of the preamble to the regulation as it is to be issued in the Federal 
Register, provide[] to the Director of the Office of Management and 
Budget a federalism summary impact statement, which consists of a 
description of the extent of the agency's prior consultation with State 
and local officials, a summary of the nature of their concerns and the 
agency's position supporting the need to issue the regulation, and a 
statement of the extent to which the concerns of the State and local 
officials have been met.'' FRA has analyzed this rulemaking action 
under the principles and criteria contained in Executive Order 13132. 
This rule will not have a substantial direct effect on States, on the 
relationship between the National Government and the States, or on the 
distribution of power and the responsibilities among the various levels 
of government, as specified in the Executive Order 13132. Accordingly, 
FRA has determined this rule will not have sufficient federalism 
implications to warrant consultation with State and local officials or 
the preparation of a federalism assessment. Therefore, FRA has not 
prepared a federalism assessment.

Environmental Impact

    FRA has evaluated this regulation under its ``Procedures for 
Considering Environmental Impacts'' (FRA's Procedures) (64 FR 28545, 
May 26, 1999) as the National Environmental Policy Act (42 U.S.C. 4321 
et seq.) requires, other environmental statutes, Executive Orders, and 
related regulatory requirements. FRA has determined this regulation is 
not a major FRA action (requiring the preparation of an environmental 
impact statement or environmental assessment) because it is 
categorically excluded from detailed environmental review under section 
4(c)(20) of FRA's Procedures. 64 FR 28545, 28547, May 26, 1999. Under 
section 4(c) and (e) of FRA's Procedures, the agency has further 
concluded that no extraordinary circumstances exist with respect to 
this regulation that might trigger the need for a more detailed 
environmental review. As a result, FRA finds that this regulation is 
not a major Federal action significantly affecting the quality of the 
human environment.

Unfunded Mandates Reform Act of 1995

    Under Section 201 of the Unfunded Mandates Reform Act of 1995 (Pub. 
L. 104-4, 2 U.S.C. 1531), each Federal agency ``shall, unless otherwise 
prohibited by law, assess the effects of Federal regulatory actions on 
State, local, and tribal governments, and the private sector (other 
than to the extent that such regulations incorporate

[[Page 77399]]

requirements specifically set forth in law).'' Section 202 of the Act 
(2 U.S.C. 1532) further requires that ``before promulgating any general 
notice of proposed rulemaking that is likely to result in the 
promulgation of any rule that includes any Federal mandate that may 
result in expenditure by State, local, and tribal governments, in the 
aggregate, or by the private sector, of $100,000,000 or more (adjusted 
annually for inflation) in any 1 year, and before promulgating any 
final rule for which a general notice of proposed rulemaking was 
published, the agency shall prepare a written statement'' detailing the 
effect on State, local, and tribal governments and the private sector. 
When adjusted for inflation using the Consumer Price Index for All 
Urban Consumers as the Bureau of Labor Statistics published, the 
equivalent value of $100,000,000 in year 2012 dollars is 
$151,000,000.\2\ The final rule will not result in the expenditure, in 
the aggregate, of $151,000,000 or more in any one year, and thus 
preparation of such a statement is not required. Executive Order 13211 
requires Federal agencies to prepare a Statement of Energy Effects for 
any ``significant energy action.'' 66 FR 28355, May 22, 2001. Under the 
Executive Order, a ``significant energy action'' is defined as ``[a]ny 
action by an agency (normally published in the Federal Register) that 
promulgates or is expected to lead to the promulgation of a final rule 
or regulation, including notices of inquiry, advance notices of 
proposed rulemaking, and notices of proposed rulemaking: (1)(i) That is 
a significant regulatory action under Executive Order 12866 or any 
successor order, and (ii) is likely to have a significant adverse 
effect on the supply, distribution, or use of energy; or (2) that is 
designated by the Administrator of the Office of Information and 
Regulatory Affairs as a significant energy action.'' FRA has evaluated 
this final rule under Executive Order 13211. FRA has determined that 
this final rule is not likely to have a significant adverse effect on 
the supply, distribution, or use of energy. Consequently, FRA has 
determined that this regulatory action is not a ``significant energy 
action'' within the meaning of Executive Order 13211.
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    \2\ See U.S. Department of Transportation guidance at, ``Reform 
Act of 1995,'' February 24, 2014 (update), http://www.dot.gov/office-policy/transportation-policy/threshold-significant-regulatory-actions-under-unfunded-mandates.
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Privacy Act

    Under 5 U.S.C. 553(c), DOT solicits comments from the public to 
better inform its rulemaking process. DOT posts these comments, without 
edit, including any personal information the commenter provides, to 
www.regulations.gov, as described in the system of records notice (DOT/
ALL-14 FDMS), which can be reviewed at www.dot.gov/privacy.

List of Subjects in 49 CFR Part 225

    Investigations, Penalties, Railroad safety, Reporting and 
recordkeeping requirements.

The Rule

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

PART 225--[AMENDED]

0
1. The authority citation for part 225 is revised to read as follows:

    Authority:  49 U.S.C. 103, 322(a), 20103, 20107, 20901-02, 
21301, 21302, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.

0
2. Amend Sec.  225.19 by revising the first sentence of paragraph (c) 
and revising paragraph (e) to read as follows:

Sec.  225.19  Primary groups of accidents/incidents.

* * * * *
    (c) Group II--Rail equipment. Rail equipment accidents/incidents 
are collisions, derailments, fires, explosions, acts of God, and other 
events involving the operation of on-track equipment (standing or 
moving) that result in damages higher than the current reporting 
threshold (i.e., $6,700 for calendar years 2002 through 2005, $7,700 
for calendar year 2006, $8,200 for calendar year 2007, $8,500 for 
calendar year 2008, $8,900 for calendar year 2009, $9,200 for calendar 
year 2010, $9,400 for calendar year 2011, $9,500 for calendar year 
2012, $9,900 for calendar year 2013, $10,500 for calendar year 2014, 
and $10,500 for calendar year 2015) to railroad on-track equipment, 
signals, tracks, track structures, or roadbed, including labor costs 
and the costs for acquiring new equipment and material. * * *
* * * * *
    (e) The reporting threshold is $6,700 for calendar years 2002 
through 2005, $7,700 for calendar year 2006, $8,200 for calendar year 
2007, $8,500 for calendar year 2008, $8,900 for calendar year 2009, 
$9,200 for calendar year 2010, $9,400 for calendar year 2011, $9,500 
for calendar year 2012, $9,900 for calendar year 2013, $10,500 for 
calendar year 2014, and $10,500 for calendar year 2015. The procedure 
for determining the reporting threshold for calendar years 2006 and 
beyond appears as paragraphs 1-8 of appendix B to part 225.
* * * * *

    Issued in Washington, DC, on December 18, 2014.
Joseph C. Szabo,
Administrator.
[FR Doc. 2014-30113 Filed 12-23-14; 8:45 am]
BILLING CODE 4910-06-P