Document ID: FMCSA-2012-0103-0143
Agency: fmcsa
Document Type: Proposed Rule
Title: Lease and Interchange of Vehicles: Motor Carriers of Passengers
Posted Date: 2018-09-20T04:00Z

[Federal Register Volume 83, Number 183 (Thursday, September 20, 2018)]
[Proposed Rules]
[Pages 47764-47788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20162]

[[Page 47763]]

Vol. 83

Thursday,

No. 183

September 20, 2018

Part III

Department of Transportation

-----------------------------------------------------------------------

 Federal Motor Carrier Safety Administration

-----------------------------------------------------------------------

49 CFR Part 390

 Lease and Interchange of Vehicles; Motor Carriers of Passengers; 
Proposed Rule

  Federal Register / Vol. 83 , No. 183 / Thursday, September 20, 2018 / 
Proposed Rules  

[[Page 47764]]

-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Part 390

[Docket No. FMCSA-2012-0103]
RIN 2126-AC07

Lease and Interchange of Vehicles; Motor Carriers of Passengers

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of proposed rulemaking (NPRM); request for comments.

-----------------------------------------------------------------------

SUMMARY: FMCSA proposes to amend its May 27, 2015, Lease and 
Interchange of Vehicles; Motor Carriers of Passengers final rule in 
response to petitions for rulemaking and extend the January 1, 2019, 
compliance date to January 1, 2021. Today's proposal would narrow the 
applicability of the rule, by excluding from the definition of lease 
and the associated regulatory requirements, certain contracts and other 
agreements between motor carriers of passengers that have active 
passenger carrier operating authority registrations with FMCSA. For 
passenger carriers that would remain subject to the leasing and 
interchange requirements, FMCSA proposes to return the bus marking 
requirement to its July 1, 2015, state with slight modifications to add 
references to leased vehicles; revise the delayed writing of a lease 
during certain emergencies; and remove the 24-hour lease notification 
requirement. This proposal would be a deregulatory action as defined by 
Executive Order 13771, ``Reducing Regulation and Controlling Regulatory 
Costs.''

DATES: Comments must be received by November 19, 2018.

ADDRESSES: You may submit comments identified by Docket Number FMCSA-
2012-0103 using any of the following methods:
     Website: http://www.regulations.gov. Follow the 
instructions for submitting comments on the Federal electronic docket 
site.
     Fax: 1-202-493-2251.
     Mail: Docket Services, U.S. Department of Transportation, 
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001.
     Hand Delivery: Ground Floor, Room W12-140, DOT Building, 
1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m. 
Monday through Friday, except Federal holidays.
    To avoid duplication, please use only one of these four methods. 
See the ``Public Participation and Request for Comments'' portion of 
the SUPPLEMENTARY INFORMATION section below for instructions on 
submitting comments.

FOR FURTHER INFORMATION CONTACT: Ms. Loretta Bitner, (202) 366-2400, 
[email protected], Office of Enforcement and Compliance. FMCSA 
office hours are from 9 a.m. to 5 p.m., Monday through Friday, except 
Federal holidays.

SUPPLEMENTARY INFORMATION: This notice of proposed rulemaking (NPRM) is 
organized as follows:

I. Public Participation and Request for Comments
    A. Submitting Comments
    B. Viewing Comments and Documents
    C. Privacy Act
    D. Waiver of Advance Notice of Proposed Rulemaking
    E. Comments on the Collection of Information
II. Acronyms and Abbreviations
III. Executive Summary
    A. Purpose of the Proposed Rule
    B. Summary of the Major Provisions
    C. Costs and Benefits
IV. Legal Basis for the Rulemaking
V. Rulemaking History and Purpose
VI. Petitions for Reconsideration and Subsequent Events
    A. History of Petitions
    B. Discussion of Comments and Responses to the June 16, 2017 
Proposal in Response to Petitions for Reconsideration
VII. General Discussion of the Proposed Rule
    A. Discussion of the Proposed Rule
    B. Examples of Proposed Rule Implementation
    C. Alternatives
VIII. International Impacts
IX. Section-by-Section Description of the Proposed Rule
    A. Section 390.5 (Suspended) and 390.5T Definitions
    B. Section 390.21 (Suspended) and 390.21T Marking of Self-
Propelled CMVs and Intermodal Equipment
    C. Part 390, Subpart F Lease and Interchange of Passenger-
Carrying Commercial Motor Vehicles
    D. Part 390, Subpart G Lease and Interchange of Passenger-
Carrying Commercial Motor Vehicles
    E. Section 390.401 Applicability
    F. Section 390.403 Lease and Interchange Requirements
X. Regulatory Analyses
    A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563 
(Improving Regulation and Regulatory Review), and DOT Regulatory 
Policies and Procedures
    B. E.O. 13771 (Reducing Regulation and Controlling Regulatory 
Costs)
    C. Regulatory Flexibility Act
    D. Assistance for Small Entities
    E. Unfunded Mandates Reform Act of 1995
    F. Paperwork Reduction Act
    G. E.O. 13132 (Federalism)
    H. E.O. 12988 (Civil Justice Reform)
    I. E.O. 13045 (Protection of Children)
    J. E.O. 12630 (Taking of Private Property)
    K. Privacy
    L. E.O. 12372 (Intergovernmental Review)
    M. E.O. 13211 (Energy Supply, Distribution, or Use)
    N. E.O. 13783 (Promoting Energy Independence and Economic 
Growth)
    O. E.O. 13175 (Indian Tribal Governments)
    P. National Technology Transfer and Advancement Act (Technical 
Standards)
    Q. Environment (NEPA, CAA, E.O. 12898 Environmental Justice)

I. Public Participation and Request for Comments

    FMCSA encourages you to participate in this rulemaking by 
submitting comments, reply comments, and related materials. All 
comments received will be posted without change to http://www.regulations.gov and will include any personal information you 
provide.

A. Submitting Comments

    If you submit a comment, please include the docket number for this 
NPRM (Docket No. FMCSA-2012-0103), indicate the specific section of 
this document to which each comment applies, and provide a reason for 
each recommendation. You may submit your comments and material online 
or by fax, mail, or hand delivery, but please use only one of these 
means. FMCSA recommends that you include your name and a mailing 
address, an email address, or a phone number in the body of your 
document so that the Agency can contact you if there are questions 
regarding your submission.
    To submit your comment online, go to http://www.regulations.gov, 
put the docket number, FMCSA-2012-0103, in the keyword box, and click 
``Search.'' When the new screen appears, click on the ``Comment Now!'' 
button and type your comment into the text box on the following screen. 
Choose whether you are submitting your comment as an individual or on 
behalf of a third party and then submit.
    If you submit your comments by mail or hand delivery, submit them 
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for 
copying and electronic filing. If you submit comments by mail and would 
like to know that they reached the facility, please enclose a stamped, 
self-addressed postcard or envelope.
    FMCSA will consider all comments and material received during the 
comment period and may change this proposed rule based on your 
comments. FMCSA may issue a final rule at any time after the close of 
the comment period.

B. Viewing Comments and Documents

    To view comments, as well as any documents mentioned in this 
preamble

[[Page 47765]]

as being available in the docket, go to http://www.regulations.gov. 
Insert the docket number, FMCSA-2012-0103, in the keyword box, and 
click ``Search.'' Next, click the ``Open Docket Folder'' button and 
choose the document to review. If you do not have access to the 
internet, you may view the docket online by visiting the Docket 
Management Facility in Room W12-140 on the ground floor of the DOT West 
Building, 1200 New Jersey Avenue SE, Washington, DC 20590, between 9 
a.m. and 5 p.m., e.t., Monday through Friday, except Federal holidays.

C. Privacy Act

    In accordance with 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.transportation.gov/privacy.

D. Waiver of Advance Notice of Proposed Rulemaking

    Under 49 U.S.C. 31136(g)(1), as amended by section 5202 of the 
Fixing America's Surface Transportation (FAST) Act, Public Law 114-94, 
for any regulatory proposal likely to lead to the publication of a 
major rule,. FMCSA is required to publish an advance notice of proposed 
rulemaking (ANPRM), unless the Agency finds good cause pursuant to sec. 
31136(g)(3) that an ANPRM is impracticable, unnecessary, or contrary to 
the public interest. For purposes of compliance with the FAST Act, the 
Agency has adopted the Congressional Review Act's definition of ``major 
rule'' (5 U.S.C. 804(2)), namely a rule that has an annual effect on 
the economy of $100 million or more. This final rule is not a major 
rule by that standard and 49 U.S.C. 31136(g)(1) therefore does not 
apply. Even if it were a major rule, however, FMCSA would find an ANPRM 
to be unnecessary.
    On August 31, 2016, FMCSA published a notice of intent (2016 NOI) 
announcing that four potential changes to the final rule were under 
consideration and its plan to issue a rulemaking notice to reconsider 
those four areas of concern (81 FR 59951). The four changes are 
discussed in more detail later in this proposal.
    FMCSA held a public roundtable on October 31, 2016 to discuss the 
four issues outlined in the 2016 NOI. The stakeholders represented 
spoke about those issues and provided information on how to address 
them. All public comments were placed in the docket of this rulemaking.
    On June 16, 2017, FMCSA published a proposal (2017 proposal) in the 
Federal Register (82 FR 27768). The 2017 proposal provided information 
about FMCSA's planned revisions to the 2015 final rule and requested 
public comment on the proposed revisions. The 2017 proposal and 
comments received are discussed in more detail below.
    The Agency's intent to issue this NPRM has been announced 
repeatedly, with opportunities for stakeholder comment available at 
each stage. Therefore, FMCSA believes a further opportunity to provide 
comments before issuance of this NPRM would be unnecessary.

E. Comments on the Collection of Information

    If you have comments on the collection of information discussed in 
this NPRM, you must also send those comments to the Office of 
Information and Regulatory Affairs at Office of Management and Budget 
(OMB). To ensure that your comments are received on time, the preferred 
methods of submission are by email to [email protected] 
(include docket number ``FMCSA-2012-0103'' and ``Attention: Desk 
Officer for FMCSA, DOT'' in the subject line of the email) or fax at 
202 395 6566. An alternative, though slower, method is by U.S. Mail to 
the Office of Information and Regulatory Affairs, Office of Management 
and Budget, 725 17th Street NW, Washington, DC 20503, ATTN: Desk 
Officer, FMCSA, DOT.

II. Acronyms and Abbreviations

------------------------------------------------------------------------
 
------------------------------------------------------------------------
1935 Act..........................  Motor Carrier Act of 1935.
1984 Act..........................  Motor Carrier Safety Act of 1984.
ABA...............................  American Bus Association.
BLS...............................  Bureau of Labor Statistics.
CMV...............................  Commercial Motor Vehicle.
DOT...............................  United States Department of
                                     Transportation.
E.O...............................  Executive Order.
FMCSA.............................  Federal Motor Carrier Safety
                                     Administration.
FMCSRs............................  Federal Motor Carrier Safety
                                     Regulations, 49 CFR parts 350
                                     through 399.
FR................................  Federal Register.
L&I...............................  Licensing and Insurance.
MAP-21............................  Moving Ahead for Progress in the
                                     21st Century Act.
MCMIS.............................  Motor Carrier Management Information
                                     System.
NOI...............................  Notice of Intent.
NPRM..............................  Notice of Proposed Rulemaking.
NTSB..............................  National Transportation Safety
                                     Board.
OMB...............................  Office of Management and Budget.
PRA...............................  Paperwork Reduction Act of 1995.
RFA...............................  Regulatory Flexibility Act.
SBA...............................  Small Business Administration.
SOC...............................  Standard Occupational
                                     Classification.
STB...............................  Surface Transportation Board.
UMA...............................  United Motorcoach Association.
VIN...............................  Vehicle Identification Number.
------------------------------------------------------------------------

III. Executive Summary

A. Purpose of the Proposed Rule

    Based on a review of the petitions for reconsideration and 
stakeholder input, FMCSA proposes to revise its regulations governing 
the lease and interchange of passenger-carrying commercial motor 
vehicles (CMVs). This proposed rule would exclude motor carriers that 
operate CMVs and have active operating authority registration with 
FMCSA to transport passengers--hereafter called ``authorized carriers'' 
or ``carriers with operating authority'' for the sake of simplicity--
from the lease and interchange requirements. For leases between 
authorized carriers, because FMCSA believes their identity can be 
determined by other means, the assignment of responsibility for 
regulatory compliance would require no additional regulatory 
obligations.
    FMCSA also proposes to extend the compliance date for the 2015 
final rule to January 1, 2021, to give the Agency sufficient time to 
complete this rulemaking.

B. Summary of the Major Provisions

    The proposed rule would (1) revise the definition of lease to 
exclude authorized carriers that grant the use of their vehicles to 
each other; (2) retain the provisions adopted in 2015 to identify the 
party responsible for compliance with the Federal Motor Carrier Safety 
Regulations (FMCSRs) when at least one of the passenger carriers 
involved in the lease or interchange of CMVs is not an authorized 
carrier; (3) ensure that a lessor subject to the proposed rule, i.e., 
the entity providing the vehicle, surrenders control of the CMV for the 
full term of the lease or temporary exchange of CMVs; (4) remove the 
May 27, 2015 final rule's marking requirements and return the marking 
rule in 49 CFR 390.21(e), with slight modifications; (5) revise the 
provision allowing a delay in the completion of a lease during certain 
emergencies; and (6) remove the requirement that motor carriers that 
are hired to provide charter transportation and lease a CMV from 
another carrier notify the tour operator or group of passengers about 
the lease and the lessor. FMCSA requests comments to identify other 
methods to achieve the safety objectives of this rulemaking.

C. Costs and Benefits

    The Agency estimates that annually 8,215 motor carriers of 
passengers and

[[Page 47766]]

537,134 passenger-carrying CMV trips would experience regulatory relief 
under the proposed rule. The Agency estimates that approximately 75 
percent of these passenger carriers and CMV trips would experience full 
regulatory relief and would no longer be subject to the lease and 
interchange requirements of the 2015 final rule. The remaining 25 
percent of these passenger carriers and CMV trips would experience 
partial regulatory relief and remain subject to reduced lease and 
interchange requirements, compared to those of the 2015 final rule.
    As presented in Table 1, the Agency estimates that the proposed 
rule would result in a cost savings of $75.1 million on an undiscounted 
basis, $66.5 million discounted at 3 percent, and $57.5 million 
discounted at 7 percent over the 10-year analysis period. Expressed on 
an annualized basis, this equates to a 10-year cost savings of $7.8 
million at a 3 percent discount rate and $8.2 million at a 7 percent 
discount rate.

                                                 Table 1--Summary of the Total Cost of the Proposed Rule
                                                                 [In thousands of 2016$]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Passenger-carrying                Undiscounted                      Discounted
                                               Passenger carriers       CMV trips     ------------------------------------------------------------------
                                                  experiencing        experiencing                      Charter
                     Year                       regulatory relief   regulatory relief    Lease and       party     Total costs   Discounted   Discounted
                                               under the proposed  under the proposed   interchange  notification     \(a)\        at 3%        at 7%
                                                      rule                rule          costs \(b)\      costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
2019.........................................               7,906             516,952     ($25,298)      ($1,168)    ($26,467)    ($25,697)    ($24,736)
2020.........................................               7,973             521,337       (4,042)       (1,178)      (5,221)      (4,921)      (4,560)
2021.........................................               8,041             525,758       (4,077)       (1,188)      (5,265)      (4,819)      (4,298)
2022.........................................               8,109             530,217       (4,111)       (1,198)      (5,310)      (4,718)      (4,051)
2023.........................................               8,178             534,714       (4,146)       (1,208)      (5,355)      (4,619)      (3,818)
2024.........................................               8,247             539,249       (4,182)       (1,219)      (5,401)      (4,523)      (3,599)
2025.........................................               8,317             543,822       (4,217)       (1,229)      (5,446)      (4,428)      (3,392)
2026.........................................               8,387             548,434       (4,252)       (1,239)      (5,493)      (4,336)      (3,197)
2027.........................................               8,459             553,085       (4,289)       (1,250)      (5,539)      (4,245)      (3,013)
2028.........................................               8,530             557,776       (4,326)       (1,261)      (5,586)      (4,157)      (2,840)
                                              ----------------------------------------------------------------------------------------------------------
    Total....................................  ..................  ..................      (62,946)      (12,139)     (75,084)     (66,463)     (57,504)
Annualized...................................  ..................  ..................  ............  ............      (7,508)      (7,792)      (8,187)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\(a)\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
  components.)
\(b)\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.

    The regulatory evaluation for the 2015 final rule addressed the 
potential safety benefits of lease and interchange requirements for 
motor carriers of passengers.\1\ There were insufficient data and 
empirical evidence to demonstrate a measurable quantitative 
relationship between lease and interchange requirements for passenger-
carrying CMVs and improved safety outcomes such as reduced frequency 
and/or severity of crashes or reduced frequency of violations. 
Therefore, FMCSA performed a threshold analysis, also referred to as a 
break-even analysis, estimating the reduction in crashes that would 
need to occur as a consequence of the 2015 final rule in order for the 
benefits of the rule to exactly offset the estimated costs of the rule.
---------------------------------------------------------------------------

    \1\ U.S. Department of Transportation (DOT), Federal Motor 
Carrier Safety Administration (FMCSA). ``Final Rule, Lease and 
Interchange of Vehicles; Motor Carriers of Passengers. Regulatory 
Evaluation.'' (Lease and Interchange of Vehicles, Motor Carriers of 
Passengers, 2015 Final Rule Regulatory Evaluation). May 2015. 
Available at: https://www.regulations.gov/contentStreamer?documentId=FMCSA-2012-0103-0022&attachmentNumber=1&contentType=pdf (accessed March 9, 2018).
---------------------------------------------------------------------------

    In considering the potential impact to safety benefits from today's 
proposed rule, the Agency notes that there remains insufficient data 
and empirical evidence to clearly demonstrate a measurable quantitative 
relationship between lease and interchange requirements for passenger-
carrying CMVs and improved safety outcomes. Lease and interchange 
requirements for motor carriers of passengers improve the ability of 
the Agency and our State partners to attribute the inspection, 
compliance, enforcement, and safety data to the correct motor carrier 
and driver, allowing FMCSA and our State partners to more accurately 
identify unsafe carriers and initiate appropriate interventions. FMCSA 
believes that the lease and interchange requirements of the proposed 
rule are a less costly and burdensome regulatory approach than the 
requirements of the 2015 final rule, yet still enable safety officials 
and the general public to sufficiently identify the passenger carrier 
responsible for safety. Therefore, the Agency does not anticipate any 
change to safety benefits as a result of the proposed rule.

IV. Legal Basis for the Rulemaking

    This rule is based on the authority of the Motor Carrier Act of 
1935 (1935 Act) and the Motor Carrier Safety Act of 1984 (1984 Act), as 
amended.
    The 1935 Act authorizes DOT to ``prescribe requirements for--(1) 
qualifications and maximum hours of service of employees of, and safety 
of operation and equipment of, a motor carrier; and (2) qualifications 
and maximum hours of service of employees of, and standards of 
equipment of, a motor private carrier, when needed to promote safety of 
operation'' (49 U.S.C. 31502(b)).\2\
---------------------------------------------------------------------------

    \2\ See https://www.gpo.gov/fdsys/pkg/USCODE-2015-title49/pdf/USCODE-2015-title49-subtitleVI-partB-chap315.pdf.
---------------------------------------------------------------------------

    The 1984 Act confers on DOT authority to regulate drivers, motor 
carriers, and vehicle equipment. ``At a minimum, the regulations shall 
ensure that--(1) commercial motor vehicles are maintained, equipped, 
loaded, and operated safely; (2) the responsibilities imposed on 
operators of commercial motor vehicles do not impair their ability to 
operate the vehicles safely; (3) the physical condition of operators of 
commercial motor vehicles is adequate to enable them to operate the 
vehicles safely . . .; and (4) the operation of commercial motor 
vehicles does not have a deleterious effect on the physical condition 
of the operators'' (49 U.S.C. 31136(a)). Section 32911 of the Moving 
Ahead for Progress in the 21st Century Act (MAP-21) [Pub. L. 112-141, 
126 Stat. 405, 818, July 6, 2012] enacted a fifth requirement, i.e., to 
ensure that ``(5) an operator of a commercial motor vehicle is not 
coerced by a motor carrier, shipper, receiver, or transportation 
intermediary to operate a commercial motor vehicle in violation of a 
regulation promulgated under this

[[Page 47767]]

section, or chapter 51 or chapter 313 of this title'' [49 U.S.C. 
31136(a)(5)].\3\
---------------------------------------------------------------------------

    \3\ See https://www.gpo.gov/fdsys/pkg/USCODE-2015-title49/pdf/USCODE-2015-title49-subtitleVI-partB-chap311-subchapIII-sec31136.pdf.
---------------------------------------------------------------------------

    The 1984 Act also includes more general authority to ``(8) 
prescribe recordkeeping . . . requirements; . . . and (10) perform 
other acts the Secretary considers appropriate'' (49 U.S.C. 
31133(a)).\4\
---------------------------------------------------------------------------

    \4\ See https://www.gpo.gov/fdsys/pkg/USCODE-2015-title49/pdf/USCODE-2015-title49-subtitleVI-partB-chap311-subchapIII-sec31133.pdf.
---------------------------------------------------------------------------

    This rule imposes legal and recordkeeping requirements consistent 
with the 1935 and 1984 Acts on certain for-hire and private passenger 
carriers that operate CMVs, to enable safety officials and the general 
public to identify the passenger carrier responsible for safety. 
Currently, passenger-carrying CMVs and drivers are frequently rented, 
loaned, leased, interchanged, assigned, and reassigned with few records 
and little formality, thus obscuring the operational safety 
responsibility of many industry participants. Because this rule has 
only indirect and minimal application to drivers of passenger-carrying 
CMVs--at most, their employers might require them to pick up a lease 
document and place it on the vehicle, though that task could also be 
assigned to other employees--FMCSA believes that coercion of drivers to 
violate the rule will not occur.
    Before prescribing any regulations, FMCSA must also consider their 
``costs and benefits'' (49 U.S.C. 31136(c)(2)(A) and 31502(d)). Those 
factors are also discussed in this proposed rule.

V. Rulemaking History and Purpose

    On September 20, 2013, FMCSA published an NPRM that discussed the 
National Transportation Safety Board's (NTSB) recommendation that FMCSA 
regulate the leasing of passenger carriers in much the same way as it 
regulates the leasing of for-hire property carriers (78 FR 57822). This 
NTSB recommendation resulted from several investigations of bus crashes 
that occurred in 2008 (78 FR 57822, 57824-57826). Starting in 2011, 
FMCSA investigated bus companies operating unsafely along the I-95 
corridor. That investigation uncovered additional problems and serious 
safety violations with other carriers. As Agency investigators tried to 
understand the relationships and links between bus companies operating 
in complex networks, they encountered significant difficulties in 
identifying the motor carriers responsible for regulatory compliance on 
numerous trips. Vehicles and drivers were found to be frequently 
rented, loaned, leased, interchanged, assigned, and reassigned with few 
records and little formality, which obscured the operational safety 
responsibility of many industry participants. Multiple affiliated 
entities shared drivers and vehicles within their network intentionally 
to avoid identification of the motor carrier responsible for safety 
management, and to conceal excessive and illegal driver work hours that 
resulted in fatigue-related crashes in some cases.
    Investigators were eventually able to document multiple patterns of 
serious safety violations by three networks of businesses that 
deliberately structured their operations to evade Federal regulatory 
oversight. Each time FMCSA had shut them down in the past, the three 
networks re-created or reincarnated themselves. These companies, which 
together transported almost 2,000 passengers daily, showed flagrant 
disregard for public safety by using drivers without valid commercial 
driver's licenses or medical qualification certificates, failing to 
conduct required drug testing of drivers, allowing or requiring drivers 
to exceed the maximum number of driving hours, and operating buses that 
were mechanically unsafe and in disrepair. FMCSA shut down these three 
networks of bus operators after a time-consuming, complex and detailed 
review of their operations.
    In response to an NPRM intended to better ensure the correct 
identity of the motor carrier responsible for the operation of a 
passenger-carrying vehicle, 12 parties submitted comments. On May 27, 
2015, FMCSA published a final rule (2015 final rule) concerning the 
lease and interchange of passenger-carrying CMVs (80 FR 30164). 
Although several of the proposed regulations were revised in response 
to comments received in response to the NPRM, the motorcoach industry 
took exception to some of the requirements of the final rule. The 
Agency published several documents to respond to the industry 
objections. These documents are discussed in detail in the following 
section.

VI. Petitions for Reconsideration and Subsequent Events

A. History of Petitions

    The American Bus Association (ABA) and United Motorcoach 
Association (UMA) filed a joint request for an extension of the June 
26, 2015, deadline for the submission of petitions for reconsideration 
of the final rule. On July 1, 2015, FMCSA extended the deadline to 
August 25, 2015 (80 FR 37553).
    The Agency ultimately received 37 petitions for reconsideration 
which have been filed in the public docket referenced above. In 
addition, 11 informal comments were received. Upon review of these 
requests, FMCSA concluded that some have merit. FMCSA, therefore, 
extended the compliance date of the final rule from January 1, 2017, to 
January 1, 2018, to allow the Agency time to complete its analysis and 
amend the rule where necessary (82 FR 13998, Mar. 16, 2016).
    The petitioners argued and explained in more detail that FMCSA had 
taken a regulatory scheme from the trucking industry and applied it to 
the bus industry, which has a vastly different operating structure and 
liability regime. Moreover, the application of these truck regulations 
to the bus industry offered no additional protection to the public from 
illegal or unsafe bus operators.
    Petitioners further stated that the final rule created an economic 
and regulatory burden for passenger carriers that already operate 
safely and have a high degree of compliance. By imposing lease 
requirements, some of the petitioners argued, the rule did not affect 
carriers that choose to violate the regulations, but instead burdened 
those who already operate safely and are in compliance. Another 
petitioner stated that, while it supported efforts to identify and 
address chameleon carriers or carriers that may try to operate under 
the cloak of another carrier, the final rule did not accomplish this 
goal and, in fact, provided a roadmap for irresponsible carriers to 
operate legally under the authority of another carrier.
    One carrier stated that it had identified several instances where 
the final rule lacked sufficient clarity to enable it to comply, and 
that these issue areas affected all of its operations. The final rule 
also added administrative costs and reduced operational flexibility for 
charter and tour bus operations, which would, in the end, reduce 
connectivity and transportation options for the traveling public. 
Another carrier named two insurance companies that have restrictions in 
their policies that prohibit the use of non-owned equipment and non-
employed drivers, which were major concerns of the NPRM and final rule.
    On August 31, 2016, FMCSA published the 2016 NOI announcing that 
the following four potential changes to the final rule were under 
consideration:
    (1) Exclusion of ``chartering'' from the definition of lease in 49 
CFR 390.5. The 2015 rule merged the concepts of leasing with 
``chartering'' (subcontracting or reassigning

[[Page 47768]]

contracts). Authorized carriers routinely subcontract or reassign 
contracts to other authorized carriers to handle demand surges, 
emergencies, or events that require more than the available capacity. 
Subcontractors or assignees with their own operating authority have 
traditionally assumed responsibility for their own vehicles and 
drivers. Under the 2015 rule, however, a passenger carrier that 
subcontracted or reassigned work to another carrier would be 
responsible for that second carrier's compliance with the regulations. 
Petitioners claimed that making a carrier responsible for the 
subcontractor's or assignees' vehicles, drivers, and liability would 
make most short-term subcontracts impossible.
    (2) Amending the CMV requirements for the location of temporary 
markings for leased/interchanged vehicles (49 CFR 390.21(f), 
390.303(f)). The petitioners argued that the frequent marking changes 
needed during leases or interchanges would be impractical and 
unnecessary because the information required is recorded on the 
driver's records of duty status for safety inspectors and safety 
investigators to review; carriers would have to depend completely on 
drivers to properly change vehicle markings dozens of times per day in 
remote locations; and it would be unlikely that a member of the public 
would understand the significance of the markings in the event that he 
or she focused on the temporary ``operated by'' markings rather than 
the permanent markings on the bus representing the vehicle owner or 
long-term lessee.
    (3) Changing the requirement that carriers notify customers within 
24 hours when they subcontract service to other carriers (49 CFR 
390.305). Petitioners argued that a 24-hour deadline is impractical 
because if an emergency maintenance issue occurs, it may not be 
possible to notify the customer in a timely manner, particularly if the 
issue occurs on the weekend, when the customer's offices are closed, 
and the trip is scheduled to start before the customer's Monday opening 
time.
    (4) Expanding the 48-hour delay in preparing a lease to include 
emergencies when passengers are not actually on board a bus (49 CFR 
390.303(a)(2)). Sometimes events requiring a replacement vehicle might 
occur when there are no passengers on a vehicle, such as when Amtrak or 
airline service is suspended or disrupted and buses are needed to 
transport stranded passengers. A bus operator contracted to provide the 
emergency service might need to obtain additional drivers and vehicles 
from other carriers to meet the demand. There might be a last-minute 
maintenance or mechanical issue, or driver illness, that arises late in 
the evening or during the night (such as on a multi-day charter or tour 
trip), or just prior to picking up a group for a charter or scheduled 
service run.
    In the 2016 NOI, FMCSA announced its plan to issue a rulemaking 
notice to reconsider the four areas of concern listed above. The Agency 
expressed its belief that it might be possible to adopt less burdensome 
regulatory alternatives that would not adversely impact safety. FMCSA 
also explicitly denied other requested revisions because they would 
either have impaired the purpose of the final rule or did not represent 
practical alternatives.
Public Roundtable
    FMCSA held a public roundtable on October 31, 2016 to discuss the 
four issues outlined in the 2016 NOI. The stakeholders represented 
spoke about those issues and provided the Agency with information on 
how to address them. All public comments were placed in the docket of 
this rulemaking.
Second Extension of Compliance Date and the Proposal in Response to 
Petitions for Reconsideration
    On June 16, 2017, FMCSA published a final rule (2017 final rule) 
and a 2017 proposal in the Federal Register (82 FR 27766, and 27768). 
The 2017 final rule extended the compliance date of the 2015 final rule 
from January 1, 2018, to January 1, 2019. The 2017 proposal provided 
information about FMCSA's planned revisions to the 2015 final rule and 
requested public comment on the proposed revisions.

B. Discussion of Comments and Responses to the June 16, 2017 Proposal 
in Response to Petitions for Reconsideration

    FMCSA received 24 comments in response to the 2017 proposal 
regarding the petitions for reconsideration. Two submissions requested 
an extension of time to comment, one from Coach USA and another from 
Adirondack Trailways, Pine Hill Trailways and New York Trailways.
    The following commenters (hereafter the ``industry commenters''), 
submitted responses to the June 2017 proposal that were largely the 
same, both in wording and in format. The industry commenters include: 
AC Coach Operations, Inc. dba Anderson Coach and Travel, Adirondack 
Trailways, Pine Hill Trailways and New York Trailways (Responding 
together), ABA, Beeline Charters and Tours, Burlington Trailways, 
California Bus Association, Capitol Bus Lines Inc., Connecticut Bus 
Association, FTI Coach Lines, Georgia Motorcoach Operators Association, 
Indian Trails, Inc., Minnesota Charter Bus Operator's Association, 
Onondaga Coach Corp., Pennsylvania Bus Association, Shuttle Express, 
Inc., and Trans-Bridge Lines.
    FMCSA also received unique comments from Academy Bus LLC and 
Greyhound Lines, Inc.; Delainey Banks, an individual; Coach USA, a non-
carrier entity that controls numerous motor carriers of passengers; 
Reston Limousine; National Interstate Insurance; and the UMA.
Request for an NPRM
    Neither the 2016 NOI nor the 2017 proposal contained specific 
regulatory text. The 2016 NOI announced FMCSA's intent to revise the 
2015 final rule in response to petitions. As indicated above, the 2016 
NOI described four major changes that were under consideration for 
regulatory changes.
    In the 2017 proposal, the Agency identified its intention to revise 
the regulations to address ``chartering'' and the 48 hour delay in 
preparing a lease.
    Comments: Industry commenters, including Academy Bus LLC., 
Greyhound Lines, Inc., UMA, Coach USA, and DATTCO, Inc. asked FMCSA to 
publish a formal NPRM that included proposed regulatory text. Coach 
USA, among others, noted that the 2017 proposal limited its discussion 
to only two of the four issues addressed in the 2016 NOI; however, they 
believed that all four issues should be addressed in rulemaking.
    FMCSA Response: After publication of the 2016 NOI, FMCSA decided to 
publish an NPRM to continue the process of revising subpart F of 49 CFR 
part 390. FMCSA proposes to maintain and expand the emergency 48-hour 
delay in preparing a lease. FMCSA proposes to remove the 2015 final 
rule's CMV marking requirements when a passenger-carrying CMV is leased 
or interchanged. Furthermore, FMCSA proposes changes that would reduce 
the number of required leases because authorized carriers would not be 
subject to this proposed rule when using vehicles or acquiring 
transportation services from other authorized carriers.
Lease and Interchange
    The 2015 final rule merged the concepts of leasing and chartering 
(or subcontracting). Carriers routinely subcontract work to other 
registered carriers to handle demand surges, emergencies, or events 
that require more than their available capacity.

[[Page 47769]]

Subcontractors with their own operating authority have traditionally 
assumed responsibility for their own vehicles or drivers. Under the 
2015 rule, however, a passenger carrier that subcontracted work to 
another carrier would be responsible for that second carrier's 
compliance with the regulations. In the 2015 final rule, FMCSA used the 
following definition for ``Lease'' in Sec.  390.5: ``Lease, as used in 
Sec.  390.21(f) and subpart F of this part, means a contract or 
arrangement in which a motor carrier grants the use of a passenger-
carrying commercial motor vehicle to another motor carrier, with or 
without a driver, for a specified period for the transportation of 
passengers, in exchange for compensation. The term lease includes an 
interchange, as defined in this section, or other agreement granting 
the use of a passenger-carrying commercial motor vehicle for a 
specified period, with or without a driver, whether or not compensation 
for such use is specified or required.'' The 2016 NOI indicated that 
the Agency would address, through rulemaking, this concern relating to 
the 2015 final rule's merger of the leasing and chartering concepts. In 
the 2017 proposal, FMCSA said that it intended to revise subpart F of 
49 CFR part 390 to exclude ``chartering'' from the leasing requirements 
of that rule.
    Comments: UMA, Greyhound, Academy Bus LLC, and others stated that 
the 2015 final rule is overly burdensome to motor carriers.
    According to Coach USA Inc. and other commenters, the rule broadens 
the term ``lease'' to capture charter and similar operations, thus 
placing unnecessary burdens on compliant motor coach operators, while 
doing little to target the safety concern associated with non-compliant 
carriers. Commenters believed FMCSA should exclude from the definition 
of ``Lease'' in Sec.  390.5 all passenger-carrying motor carriers that 
have FMCSA operating authority. Specifically, they asked the Agency to 
modify the definition of ``Lease'' by clarifying that it does not 
include a ``contract, subcontract, sublease, rental or charter 
arrangement between two or more passenger-carrying motor carriers where 
all parties have operating authority.''
    The Minnesota Charter Bus Operator's Association stated that the 
rule would prohibit the necessary collaboration among multiple 
operators to meet the needs of large events that occur in Minnesota. 
This commenter added that the nature of the business requires operators 
to assist one another in the event of a mechanical breakdown, so they 
have to act quickly to service and protect the traveling public without 
the burden of the lease and marking requirement. Capitol Bus Lines, 
Inc. reported that, as a result of its need to comply with the 2015 
final rule requirements, it lost the ability to provide shuttle service 
for a large fireworks display, which cost the company business. UMA 
believed the rule needlessly harms passenger groups and carriers in 
need of immediate assistance. Greyhound wrote the rule would severely 
curtail, if not eliminate, its leasing of buses to meet peak period 
demand.
    Industry commenters believed that the rule may exacerbate the 
problem of non-compliant carriers by creating safe havens and 
encouraging a switch from chartering to passenger broker operations 
that the Agency has no authority to regulate. UMA commented that the 
rule does not identify chameleon carriers, but instead provides a 
roadmap for carriers that may have compliance or operating authority 
issues. UMA thought the rule might compel special event organizers and 
community leaders to spend needless time engaging multiple carriers or 
to turn to brokers.
    While many commenters, including National Interstate Insurance, 
supported the exclusion of ``chartering'' from the leasing requirements 
of the rule, as stated in the 2017 proposal, some commenters, including 
Greyhound Lines, Inc., UMA, and Reston Limousine, wanted the Agency to 
clarify this term. In their joint request for an extension of time 
Adirondack Trailways, Pine Hill Trailways, and New York Trailways noted 
that the proposal equates ``chartering'' to ``subcontracting'' in one 
section, but then excludes the term ``chartering'' from the entire 
rule. Reston Limousine suggested defining ``lease'' to exclude 
contracts, subcontracts, or charter arrangements between two or more 
passenger-carrying motor carriers with valid individual USDOT operating 
authority.
    Coach USA commented that the administrative and paperwork burden 
associated with the full range of other regulatory obligations related 
to chartering/subcontracting arrangements would be prohibitive. 
Further, Coach USA did not believe that it would be possible for a 
primary contractor to obtain insurance for vehicles operated by 
subcontractor, as the final rule seems to require. Coach USA noted that 
it is not practicable for the primary carrier to ensure that the 
subcontracting carrier is in full compliance with many FMCSA 
regulations, particularly given that arrangements with secondary 
carriers must often be made at the last minute.
    Industry commenters added that the Agency should clarify that the 
current definition of the term ``interchange'' in Sec.  390.5, as used 
in Sec.  390.21(f) and subpart F of part 390, does not include the act 
of providing a passenger-carrying CMV by one motor carrier of 
passengers to another. The industry commenters suggested edits to the 
definition of ``interchange'' that they believed would resolve the 
issue.
    FMCSA Response: Under this NPRM, authorized carriers would not be 
subject to leasing requirements when they use vehicles or acquire 
transportation services from other authorized carriers. FMCSA believes 
this proposed regulatory change, as explained elsewhere in this NPRM, 
would resolve the objections and concerns of most commenters, without 
impacting safety.
Assignment of Responsibility
    The 2015 final rule governing the lease and interchange of 
passenger-carrying CMVs holds the lessee carrier directly responsible 
for violations of the FMCSRs.
    Comments: UMA consistently argued that FMCSA should not compel two 
or more carriers, all possessing the requisite Federal operating 
authority, to enter a lease they would not otherwise enter when 
engaging each other's services. UMA believed that forcing passenger-
carriers into a lease would compel the assignment of inspection 
violations and crashes to the lessee. The commenter wrote that 
inspections and crashes should be attributed to the chartered, 
contracted, or subcontracted carrier that possesses the sole, direct 
responsibility for compliance and control of vehicle maintenance and 
driver qualifications and behavior. UMA wrote that the burden of the 
2015 rule falls disproportionately on small-fleet passenger carriers 
and disadvantages them by creating untenable regulatory liability.
    FMCSA Response: Because Federal operating authority and the 
practices of the insurance industry both assign responsibility to the 
operating motor carrier, FMCSA agrees that there is no need to reassign 
responsibility through this rulemaking. As mentioned above, authorized 
carriers would not be subject to this proposed rule when they use 
vehicles or acquire transportation services from other authorized 
carriers. FMCSA believes that this proposed regulatory change would 
resolve the objections and concerns of most commenters, without 
impacting safety.

[[Page 47770]]

Marking Requirements
    The 2015 final rule added a new Sec.  390.21(f) to cover the 
marking of leased and interchanged passenger-carrying CMVs, as defined 
in Sec.  390.5 (80 FR 30178). Carriers operating such CMVs must meet 
certain standards for marking in Sec.  390.21. They must also display a 
placard, sign, or other permanent or removable device on the right 
(curb) side of the passenger-carrying CMV on or near the front 
passenger door. The device must show the name and USDOT number of the 
carrier operating the vehicle, preceded by the words ``operated by,'' 
e.g., ``Operated by ABC Motorcoach, Inc., USDOT 12345678.''
    Comments: Industry commenters generally argued that the 2015 final 
rule imposes burdensome marking requirements that are impractical, and 
that there are less burdensome ways to address the Agency's concerns. 
In their joint request for extension of time, Adirondack Trailways, 
Pine Hill Trailways, and New York Trailways commented that ``temporary 
markings'' is a matter of particular importance to them. They argued 
that the current final rules for temporary markings are unreasonable. 
They wrote that compliance would be impractical or unsafe, and arguably 
impossible, due to the design and construction of modern motor coaches.
    In its comments, Coach USA recommended that the Agency eliminate 
the requirement to change vehicle markings when vehicles are exchanged 
between commonly owned carriers. Coach USA wrote that changing markings 
on vehicles exchanged between commonly-owned Coach USA companies would 
be highly burdensome given the large number of such exchanges. Coach 
USA commented that magnetic marking placards and paper signs are not a 
practical option. Placing a sign on the inside of the bus could 
obstruct the driver's view and/or would not meet the legibility 
requirements due to window glare or window tinting.
    Coach USA also argued that requiring vehicles interchanged between 
commonly-owned companies to be marked in accordance with Sec.  390.21 
is likely to cause more confusion among passengers than it resolves. It 
reported that most of the vehicle exchanges between Coach USA carriers 
occur between companies that have ``Megabus.com'' written across their 
vehicles in huge letters. From the public's perspective, these 
motorcoaches are operated by Megabus. Coach USA did not believe that 
individuals would understand the temporary markings required by Sec.  
390.21 and thought they would result in confusion.
    Greyhound Lines Inc. urged FMCSA to exempt from the temporary 
marking or placarding requirements the operation of vehicles that are 
being leased or interchanged between carriers that have FMCSA operating 
authority.
    FMCSA Response: FMCSA proposes to remove the 2015 final rule's CMV 
marking requirements when a passenger-carrying CMV subject to the 
proposed rule is leased or interchanged. The Agency believes this 
proposed regulatory change would resolve the objections and concerns of 
the commenters. Under this NPRM, a motor carrier operating a passenger-
carrying CMV under a lease having a term of not more than 30 calendar 
days could mark the CMV with either (1) the name and USDOT 
identification number of the lessee, or (2) the name and USDOT 
identification number of the lessor if, in the latter case, a fully 
complete lease is carried on the leased CMV during the full term of the 
lease. These proposals would remove the cost of additional marking of 
the vehicles while maintaining all of the information necessary for 
enforcement officials to identify the carrier for regulatory 
compliance. FMCSA proposes to add paragraph (e)(2)(v) to allow a 
passenger-carrying CMV operating under the 48-hour emergency exception 
pursuant to Sec.  390.403(a)(2) to be excepted from paragraphs 
(e)(2)(iii) and (iv) regarding a lease document with required 
information being carried on the vehicle, provided the lessor and 
lessee comply with the requirements of the provision in Sec.  
390.403(a)(2).
Twenty-Four Hour Notice of Lease
    If a motor carrier was originally hired to provide charter 
transportation of passengers and subsequently subcontracted this work 
to another motor carrier of passengers, the 2015 final rule required 
the original motor carrier to notify the tour operator or group of 
passengers within 24 hours after hiring the subcontractor and advising 
that the transportation would be provided by the subcontractor. The 
2016 NOI said that FMCSA was reconsidering that requirement based on 
petitioners' arguments that the 24-hour deadline is impractical in an 
emergency.
    Comments: Industry commenters asked that the 24-hour requirement 
for notification be clarified in a proposed rule. They also believed 
that excluding passenger carriers that have operating authority from 
the definition of ``lease'' in Sec.  390.5 would mean the requirements 
of Sec.  390.305 Notification, would not apply.
    Academy Bus LLC noted that the 24-hour notice to customers was not 
addressed in the 2017 proposal and said the issue was still of concern. 
Academy Bus LLC added that the industry is required to be flexible and 
respond to the public demand on very short notice.
    Coach USA believed that excluding chartering and subcontracting 
arrangements would also eliminate the requirement to notify customers 
of subcontracting arrangements. Coach USA, however, supported a 
notification requirement for carriers that had been prohibited from 
operating by FMCSA or a State and intended to lease, interchange or 
otherwise convey use of a vehicle to another carrier. In fact, Coach 
USA argued that these carriers must provide written notice to FMCSA 
before taking such an action.
    FMCSA Response: FMCSA proposes to remove the lease notification 
requirement, and believes its removal at this time may alleviate 
unnecessary regulatory burdens that, based on available evidence, do 
not significantly aid travel groups in arranging trips or avoiding 
particular carriers. If this conclusion is inaccurate, please provide 
data or information in regard to this matter.
Expanding the 48-Hour Delay in Preparing a Lease
    When passengers are on a CMV and an emergency occurs that requires 
a replacement vehicle from another motor carrier, Sec.  390.303(a)(2) 
allows the two carriers to postpone writing a lease or other written 
agreement for up to 48 hours. The Agency believed the 48-hour window 
would provide ample time for the parties to document the transaction.
    One of the issues listed in the 2016 NOI was that FMCSA would 
reconsider expanding applicability of the 48-hour delay provision for 
preparing a lease to include emergencies when passengers are not 
actually on board a bus (81 FR 59952, Aug. 31, 2016). FMCSA provided 
examples of events that might require a motor carrier to obtain a 
replacement vehicle immediately:
     Buses might be needed to transport stranded passengers in 
the event that Amtrak or airline service was suspended or disrupted. A 
bus operator contracted to provide emergency service might need to 
obtain additional drivers and vehicles without delay;
     Last minute maintenance or mechanical issues, or driver 
illness, might arise late in the evening or during the night (such as 
on a multi-day charter or tour trip), or just prior to picking up

[[Page 47771]]

a group for a charter or scheduled service run.
    In the 2017 proposal, FMCSA explained that it intended to broaden 
the emergency 48-hour delay provision for preparing a lease authorized 
by 49 CFR 390.303(a)(2) and remove the requirement that passengers 
actually be on board a bus when the exception occurs.
    Comments: In response to the 2017 proposal, industry commenters 
indicated that the expansion of the 48-hour exemption could be 
addressed by changing the definitions in Sec.  390.5. First, it was 
recommended that operations conducted under revenue pooling 
arrangements or common ownership and control be excluded from the 
definition of ``interchange'' in Sec.  390.5. Second, FMCSA was asked 
to exclude passenger motor carriers from the definition of ``lease'' in 
Sec.  390.5 when all parties have operating authority. Academy Bus LLC 
was concerned about lease preparation issues, noting that ``Our 
industry, by its nature, is required to be flexible and respond to the 
public demand on very short notice.''
    An individual believed that the 48-hour time period for preparing 
leases might be a good idea for the trucking industry, but that is not 
the case for passenger carriers. This commenter stated that at peak 
times ``every worker is stretched thin and there is a need to bring in 
more operators to provide the same services,'' otherwise customers may 
be left stranded. In these instances, it is ``an emergency to both the 
busing companies and the customers to bring in another operator to 
provide the necessary backup to complete the job in an efficient 
manner. To combat this situation, companies need to work together 
before, during and after leasing passenger vehicles.'' This commenter 
also recommended that accountability be placed directly on the 
subcontractor and its driver.
    Coach USA wrote that the exception in 49 CFR 390.303(a)(2) would 
likely apply only in rare instances if FMCSA exempted chartering and 
subcontracting arrangements from the regulations. Coach USA supported 
extending the 48-hour delay to cases of emergencies where passengers 
are not yet on the bus. Because operators will likely not have time to 
mark vehicles in the event of an emergency that requires replacement of 
a vehicle on very short notice, Coach USA proposed eliminating the 
final sentence of Sec.  390.303(a)(2), ``The lessee must also mark the 
vehicle in accordance with Sec.  390.21(f) before operating it.''
    FMCSA Response: FMCSA adopts the petitioners' recommendation to 
expand the regulatory exception that permits the delayed writing of a 
lease during certain emergencies (e.g., a crash, the vehicle is 
disabled) including when no passengers are on the vehicle. Therefore, 
FMCSA proposes to move the exception in 49 CFR 390.303(a)(2) to 49 CFR 
390.403(a)(2). If a motor carrier obtains a replacement vehicle from, 
or subcontracts for service with, another motor carrier, the motor 
carriers may delay writing of a lease during these emergency 
situations. However, a summary document signed and dated by the 
lessee's driver or available company official must state: ``[Carrier A, 
USDOT number, telephone number] has leased this vehicle to [Carrier B, 
USDOT number, telephone number] pursuant to 49 CFR 390.403(a)(2)'' and 
the summary document must be carried on the replacement vehicle for the 
duration of the lease. Enforcement officials will be able to use this 
summary document to determine the identity of the carrier responsible 
for regulatory compliance.
Summary Document Requirements in Sec.  390.301(b)(2) and (3)
    In Sec.  390.301(b)(2), the 2015 rule allows passenger-carrying 
CMVs to be exchanged or interchanged without leases or receipts among 
commonly owned and controlled motor carriers, provided the driver 
carries and produces, upon demand of a Federal, State, or local law 
enforcement official, a summary document listing certain information 
[see 80 FR at 30179].
    Section 390.301(b)(3) provides that passenger-carrying CMVs may be 
exchanged or interchanged without leases or receipts among motor 
carriers that are party to a revenue pooling agreement approved by the 
Surface Transportation Board (STB) provided that the driver carries 
and, upon demand of a Federal, State, or local law enforcement 
official, displays other information, including a summary document [see 
80 FR at 30179].
    Neither the 2016 NOI nor the 2017 proposal addressed the summary 
document requirements.
    Comments: The industry commenters suggested removing the 
requirements in Sec.  390.301(b)(2) and (3) and instead including 
language about an abbreviated summary document in the definition of 
``interchange'' in Sec.  390.5. If the interchange occurred among 
commonly owned/controlled motor carriers, the summary document would 
identify the carriers in that ``family,'' including USDOT numbers and 
business addresses. If the interchange occurred pursuant to a revenue 
pooling agreement approved by the STB, the summary document would 
identify the parties to the agreement, including the USDOT numbers and 
business addresses. These summary documents would be produced upon the 
demand of a law enforcement official.
    In its request for an extension of time, Coach USA argued that the 
information required in Sec.  390.301(b)(2)(i) is trip specific, and 
would require the company to create a new summary document for each of 
more than 10,000 trips annually. Such a document would impose an 
unnecessary regulatory burden. Coach USA requested that the summary 
document required by this provision include only a ``listing of all 
members of the corporate family along with their USDOT numbers, 
business addresses and contact telephone numbers.'' The company also 
asked the Agency to clarify that any summary document may be maintained 
in electronic format and stored on an electronic logging device.
    In its response to the Agency's 2017, proposal, Coach USA, like 
other industry commenters, reiterated its previous comments.
    FMCSA Response: Since this proposed rule would not apply to 
transactions between or among authorized carriers under the proposed 
exception in Sec.  390.401(b)(1) Contracts and agreements between motor 
carriers of passengers with active passenger carrier operating 
authority registrations, FMCSA believes that regulatory exceptions for 
commonly owned and controlled carriers, and carriers participating in 
STB-approved revenue pooling agreements, are no longer necessary. The 
industry commenters suggested making the rule inapplicable to commonly 
owned and controlled carriers and carriers participating in STB-
approved revenue pooling agreements, and the Agency agrees with these 
comments. Therefore, FMCSA proposes to rescind the exceptions in 49 CFR 
390.303(b)(2) and (b)(3). All passenger carriers that are commonly 
owned and controlled or participate in STB-approved revenue pooling 
agreements operate in interstate commerce and have operating authority. 
An authorized carrier that obtains a vehicle from another commonly 
owned and controlled authorized carrier or another participant in an 
STB-approved pooling agreement, would not be subject to this proposed 
rule.

VII. General Discussion of the Proposed Rule

A. The Proposed Rule

    FMCSA proposes removing and reserving subpart F of part 390, moving 
it to subpart G with the same title,

[[Page 47772]]

``Lease and Interchange of Passenger-Carrying Commercial Motor 
Vehicles,'' and making some further regulatory changes discussed later 
in this document. FMCSA is planning to use subpart F in a future NPRM 
to be published under RIN 2126-AB56, Unified Registration System 
Enhancements and Updates.
Definitions
    The Agency proposes to revise the definition of lease in Sec.  
390.5 to include only contracts and agreements in which a motor carrier 
grants the use of a passenger-carrying CMV to another motor carrier 
when at least one of the motor carriers is not an authorized 
carrier.\5\ Authorized carriers routinely assist one another by 
providing transportation services during demand surges, emergencies, or 
events that require more than their available capacity. These common 
agreements, some of which amount to subcontracting, would not meet the 
regulatory definition of a lease in this proposed rule. Authorized 
carriers that are hired by another authorized carrier have 
traditionally assumed responsibility for their own regulatory 
compliance and liability. This practice has long been acceptable to the 
insurance industry. Furthermore, authorized carriers are readily 
identifiable to enforcement personnel, making a separate lease 
agreement assigning regulatory responsibility unnecessary.
---------------------------------------------------------------------------

    \5\ This rulemaking does not propose a change to the definition 
of lease in the context of property-carrying vehicles in 49 CFR 
376.2.
---------------------------------------------------------------------------

    The definition of lease would become narrower by including only 
contracts and agreements to grant the use of a passenger-carrying CMV 
between motor carriers when one (or more) such carrier does not have 
operating authority. The term lease would also be revised with added 
language to include circumstances when no compensation is specified. 
The terms lessee and lessor would both be revised slightly to specify 
that the granting of passenger-carrying CMV usage is through a lease.
Marking of Self-Propelled CMVs and Intermodal Equipment
    Section 390.21 (suspended) and 390.21T would be returned nearly to 
the form before the March 27, 2015, final rule. FMCSA would remove the 
special marking regulations for leased and interchanged passenger-
carrying CMVs in paragraph (f). Section 390.21 (suspended) and 390.21T 
would be revised to treat leased passenger-carrying CMVs like all other 
rented CMVs. For a lease of 30 calendar days or less, the lessee can 
opt to mark the vehicle with either the lessee's information or the 
lessor's information. However, the latter would require a fully 
executed copy of the lease be carried on the vehicle.
    If the motor carrier is operating a passenger-carrying CMV under a 
lease or rental agreement for more than 30 calendar days, such CMV must 
be marked with the lessee's identification information. In a lease 
situation, the operating motor carrier is the lessee. These revised 
regulations would address petitioners' concerns that there is no easy 
way to display a temporary marking on certain passenger-carrying motor 
vehicles for short term leases. FMCSA specifically requests comments 
from State Agencies that participate in the Motor Carrier Safety 
Assistance Program about the effectiveness of these proposed marking 
regulations for leased passenger-carrying CMVs and any potential 
inspection or enforcement problems.
General Applicability and Exceptions
    The general applicability section would be revised slightly to 
reflect the removal of exceptions in paragraph (b). Section 390.401(b) 
would be modified in several ways. First, a new exception would appear 
in paragraph (b)(1) to exclude from the rule contracts and agreements 
between passenger carriers with active operating authority when one 
such carrier acquires transportation services from another such 
carrier. Second, the current exception for financial leases in 
paragraph Sec.  390.301(b)(1) would be moved to paragraph Sec.  
390.401(b)(2) as an exception with a revision. The provision that the 
financial organization, manufacturer, or dealer must not be a motor 
carrier to utilize the exception from the rule is proposed for removal 
because such entities are motor carriers when they move their vehicle 
inventory between business locations before purchases. Third, the 
limited exception in paragraph (b)(2) for passenger-carrying CMVs 
exchanged or interchanged between or among commonly owned and 
controlled motor carriers would be removed. Fourth, the limited 
exception in paragraph (b)(3) for passenger-carrying CMVs exchanged or 
interchanged between or among motor carriers that are a party to a 
revenue pooling agreement approved by the STB in accordance with 49 
U.S.C 14302 would also be removed.
Lease and Interchange Requirements
    Lease and interchange requirements would be revised by removing 
Sec.  390.303(a)(1)(iii), which covers written agreements governing the 
renting, borrowing, loaning, or similar transfer of a passenger-
carrying CMV from another party. The rule would be revised and moved to 
Sec.  390.403(a)(1) to include such transactions as either a lease or 
interchange, which makes paragraph (a)(1)(iii) unnecessary. FMCSA is 
proposing to expand the emergency-related exception in Sec.  
390.303(a)(2) (after transferring it to Sec.  390.403(a)(2)) that 
allows the postponement of the completion of a lease for up to 48 hours 
for situations, such as a crash or vehicle breakdown, when a 
replacement vehicle must be immediately obtained from another motor 
carrier. Industry commenters requested this expansion of the limited 
exception and FMCSA agrees with them. FMCSA proposes to allow the 
exception even when passengers are not on the bus.
    Section 390.403(b) specifies the contents of lease and interchange 
documents. This paragraph requires the lease, interchange agreement, or 
other agreement to contain: (1) The name of the vehicle manufacturer, 
the year of manufacture, and the last 6 digits of the Vehicle 
Identification Number; (2) the legal names, contact information, and 
signatures \6\ of both parties; (3) the time and date when the lease 
begins and ends; and (4) a statement that the lessee has exclusive 
possession and control of the leased vehicle and is responsible for 
regulatory compliance.
---------------------------------------------------------------------------

    \6\ FMCSA allows the use of electronic signatures in accordance 
with the Government Paperwork Elimination Act (Pub. L. 105-277, 
Title XVII, Secs. 1701-1710, 44 U.S.C. 3504 note, 112 Stat. 2681-
749). See 76 FR 411, Jan. 4, 2011 and the Electronic Signature final 
rule's Sec. Sec.  390.5, 390.5T, and 390.32, April 16, 2018 (83 FR 
16226-7).
---------------------------------------------------------------------------

    Current Sec.  390.303(b)(4)(i)-(iii) is a slightly revised version 
of 49 CFR 376.12(c)(1), (2) and (4). Paragraph (b)(4)(i) is essential 
because it sets forth the basic reason for a lease, from FMCSA's point 
of view, to assign full responsibility for regulatory compliance to the 
lessee. FMCSA proposes to make this paragraph more concise. Current 
paragraph (b)(4)(ii) would be moved to Sec.  390.403(b)(4)(ii) and 
would retain only the last sentence of that provision. Paragraph 
(b)(4)(iii) is a useful disclaimer, should the issue of status of the 
lessor (contractor or employee) arise in a tax context, but FMCSA does 
not believe it is essential. Therefore, FMCSA proposes to shorten 
paragraphs (b)(4)(i) and (b)(4)(ii) and remove paragraph (b)(4)(iii).
    FMCSA proposes to remove the requirement in Sec.  390.303(b)(5) 
that the lease contain a statement that the lessee is responsible for 
compliance with the

[[Page 47773]]

insurance requirements of 49 CFR part 387.
    Section 390.303(c) and (d) would be merged and made more concise. 
Revised Sec.  390.403(c) would state that a copy of the lease must be 
carried in the passenger-carrying CMV during the period of the lease or 
interchange agreement. Both the lessee and lessor would retain the 
lease or interchange agreement for 1 year afterwards.
    Section 390.303(e) would be removed. FMCSA has decided it does not 
need receipts when vehicles are surrendered to the lessee and returned 
to the lessor. If FMCSA or another government enforcement agency sought 
to assign a safety incident to the lessee or the lessor based on a 
lease or other agreement that had already been terminated, the former 
parties to the lease would have to decide how to document that 
premature termination.
    FMCSA proposes to remove the requirements in Sec.  390.303(f) for 
additional temporary markings of leased and interchanged passenger-
carrying CMVs, and to return to the text of the marking rule in Sec.  
390.21(e) \7\ that was effective on July 1, 2015, with slight 
modifications. The modifications would add references to leased CMVs in 
paragraph (e) to provide a similar option to rented CMVs.
---------------------------------------------------------------------------

    \7\ See e-CFR text in effect on July 1, 2015 at https://www.ecfr.gov/cgi-bin/text-idx?SID=b9ddca68b462ed0f3d5758839de97752&pitd=20150701&node=pt49.5.390&rgn=div5#se49.5.390_121.
---------------------------------------------------------------------------

    FMCSA believes that this eliminates one of petitioners' major 
objections to the 2015 final rule. The proposed rule would require a 
leased passenger-carrying CMV be marked with the lessee's 
identification information if the lease is longer than 30 days. Leased 
passenger-carrying CMVs would be required to be marked with either the 
lessor's or lessee's identification information if the lease is 30 days 
or less.
    Finally, the proposed rule removes the requirement in Sec.  390.305 
to notify the passenger group or their representative within 24 hours 
after the primary contractor reassigns the transportation to a 
subcontractor.

B. Examples of Proposed Rule Implementation

    The following examples illustrate the proposed application of this 
rulemaking:
Complete Contract Transfer Example
    Authorized carrier A is contracted to transport a tour or travel 
group on a trip, but finds itself without the capacity to accommodate 
the group. Carrier A completely transfers the contract to authorized 
carrier B that has the necessary capacity. Carrier A may or may not pay 
a fee to carrier B for taking over the contract. A complete transfer 
would require carrier A to cancel its contract with the customer and 
carrier B to create a new contract with the customer. The proposed rule 
would not apply to these transactions because these transactions do not 
qualify as a ``lease'' (or interchange), as defined in Sec.  390.5, of 
a passenger-carrying CMV.
Complete Subcontracting Among Authorized Carriers
    Authorized carrier A lacks the capacity to execute a contracted 
trip and hires authorized carrier B to make the trip while maintaining 
its contract with the customer. This arrangement is documented by a 
charter contract between carriers A and B. Carrier A pays carrier B for 
the trip. This arrangement is not a lease, first because carrier B is 
not granting the use of a passenger-carrying CMV to carrier A, and 
second because both carriers are authorized carriers. Instead, carrier 
B is making the trip in its own name, on its own authority, with its 
own vehicles and is therefore responsible for compliance with the 
FMCSRs. The proposed rule therefore would not apply to this 
arrangement.
Partial Subcontracting Among Authorized Carriers
    Assuming the same facts as described above, except that authorized 
carrier A provides some of the transportation service while contracting 
with authorized carrier B for the remainder, this arrangement is not a 
lease, first because carrier B is not granting the use of a passenger-
carrying CMV to carrier A, and second because both carriers are 
authorized carriers. Carrier A pays carrier B for the transportation 
service as part of a charter contract. Carrier B is not surrendering 
control of a passenger-carrying CMV to carrier A for its own use. Both 
carriers are authorized carriers providing transportation in their own 
name, on their own authority, with their own vehicles, and each is 
independently responsible for compliance with the FMCSRs.
Subcontracting Among Regular Route Authorized Carriers
    Authorized carrier A, which provides regular route passenger 
transportation services according to a fixed schedule, finds itself 
without the capacity to execute a route. Carrier A hires authorized 
carrier B to continue this service. This arrangement is documented by a 
charter contract between carriers A and B. Carrier A pays carrier B for 
the transportation service. This arrangement is not a lease, first 
because carrier B is not granting the use of a passenger-carrying CMV 
to carrier A, and second because both carriers are authorized carriers. 
This arrangement is also not an interchange because carriers A and B 
are not conducting a through movement. The proposed rule would not 
apply to this arrangement. Carrier B will conduct the transportation in 
its own name, on its own authority, with its own vehicle(s), and is 
therefore responsible for compliance with the FMCSRs.
Other Business Arrangements Between Passenger Carriers
Example 1
    Carrier A is exempt under 49 U.S.C. 13506 from the requirement for 
operating authority--for example, because of the hotel exemption in 
section 13506(a)(3) \8\--but finds itself without the capacity to 
accommodate a group that it originally intended to transport. When this 
occurs, carrier A hires authorized carrier B to provide charter 
passenger transportation of the group in whole or in part. This 
arrangement is documented by a charter contract between carriers A and 
B. Carrier A pays carrier B for the transportation service, but is not 
a lessee of carrier B's vehicle. Therefore, this arrangement is not a 
lease. Carrier B does not claim the exemption in section 13506(a)(3) 
but conducts the transportation in its own name, on its own authority, 
with its own vehicle(s) and is therefore responsible for compliance 
with the FMCSRs. The proposed rule would not apply to this arrangement.
---------------------------------------------------------------------------

    \8\ Section 13506 lists the miscellaneous motor carrier 
transportation exemptions. Under section 13506(a)(3), neither the 
Secretary nor the Board has jurisdiction over a motor vehicle owned 
or operated by or for hotel patrons between the hotel and the local 
station of a carrier.
---------------------------------------------------------------------------

Example 2
    Private motor carrier of passengers A finds itself without the 
capacity to transport the members of its organization. Carrier A 
therefore hires authorized carrier B to provide charter passenger 
transportation of the group in whole or in part. This arrangement is 
documented by a charter contract between carriers A and B. Carrier A 
pays carrier B for the transportation service. Carrier A is not a 
lessee and the arrangement is not a lease or interchange because 
carrier B conducts the transportation in its own name, on its own 
authority, with its own vehicle(s) and is therefore responsible for 
compliance with the FMCSRs. The

[[Page 47774]]

proposed rule would not apply to this arrangement.
Example 3
    Carrier A is an exempt for-hire motor carrier of passengers (under 
49 U.S.C. 13506) that finds itself without the capacity to accommodate 
a group it originally intended to transport. Carrier A uses a 
passenger-carrying CMV owned by authorized carrier B. This transaction 
is a lease under the proposed rule and would be subject to its 
requirements because carrier A is not authorized to operate for-hire in 
interstate commerce. In this case, carrier B is a lessor that is 
surrendering control of a passenger-carrying CMVs to carrier A for the 
use of that carrier. Carrier A will conduct the transportation in its 
own name under its own safety registration (i.e., USDOT number) with 
the CMV leased from carrier B, with or without drivers provided by 
carrier B, and is therefore responsible for compliance with the FMCSRs.
Example 4
    Private motor carrier of passengers A finds itself without the 
capacity to accommodate a group it originally intended to transport. 
Carrier A uses a passenger-carrying CMV owned by authorized carrier B. 
This transaction is a lease under the proposed rule and would be 
subject to its requirements because carrier A is not authorized to 
operate for-hire in interstate commerce. In this case, carrier B is a 
lessor that is surrendering control of a passenger-carrying CMVs to 
carrier A for the use of that carrier. Carrier A will conduct the 
transportation in its own name under its own safety registration (i.e., 
USDOT number) with the CMV leased from carrier B, with or without 
drivers provided by carrier B, and is therefore responsible for 
compliance with the applicable FMCSRs.
Example 5
    Authorized carrier A lacks the capacity to execute a contracted 
trip and uses a passenger-carrying CMV owned by private motor carrier 
of passengers, carrier B. This transaction is a lease under the 
proposed rule and would be subject to its requirements because private 
carrier B is not authorized to operate for-hire in interstate commerce 
and cannot be hired to provide transportation. In this case, carrier B 
is a lessor that is surrendering control of its passenger-carrying CMV 
to carrier A. Carrier A will conduct the transportation in its own 
name, under its own authority, with the CMV leased from the private 
motor carrier of passengers, with or without drivers provided by 
carrier B, and is therefore responsible for compliance with the FMCSRs.
Example 6
    Private motor carrier of passengers A finds itself without the 
capacity to transport the members of its organization and uses a 
passenger-carrying CMV owned by private motor carrier of passengers B. 
This transaction is a lease under the proposed rule and would be 
subject to the requirements of this rule because neither carrier has 
the authority to conduct for-hire operations in interstate commerce. In 
this case, carrier B is a lessor that is surrendering control of its 
passenger-carrying CMV to carrier A for the use of that carrier. 
Carrier A will conduct the transportation in its own name, under its 
own safety registration (i.e., USDOT number), with the CMV leased from 
carrier B, with or without drivers provided by carrier B, and is 
therefore responsible for compliance with the applicable FMCSRs.
Example 7
    For-hire passenger carrier A had its operating authority revoked 
for lack of adequate insurance coverage. Carrier A wishes to generate 
revenue from its otherwise idle CMVs. It therefore negotiates an 
arrangement with authorized carrier B to surrender control of its 
passenger-carrying CMVs to carrier B for a fee. This arrangement is a 
lease under the proposed rule and would be subject to its requirements 
because carrier A is not authorized to operate for-hire in interstate 
commerce. In this case, carrier A is simply a lessor. Carrier B would 
conduct the transportation in its own name, on its own authority, with 
the CMVs leased from carrier A, with or without drivers provided by 
carrier A, and is therefore responsible for compliance with the FMCSRs.

C. Alternatives

    FMCSA requests comments to identify other methods to achieve the 
safety objectives of this rulemaking.

VIII. International Impacts

    The FMCSRs, and any exceptions to the FMCSRs, apply only within the 
United States (and, in some cases, United States territories). Motor 
carriers and drivers are subject to the laws and regulations of the 
countries in which they operate, unless an international agreement 
states otherwise. Drivers and carriers should be aware of the 
regulatory differences among nations.

IX. Section-by-Section Description of the Proposed Rule

A. Section 390.5 (Suspended) and 390.5T Definitions

    Section 390.5 (suspended) and 390.5T would be amended to revise the 
definitions of lease, lessee, and lessor and all of these terms would 
apply specifically to motor carriers of passengers.

B. Section 390.21 (Suspended) and 390.21T Marking of Self-Propelled 
CMVs and Intermodal Equipment

    Section 390.21 (suspended) and 390.21T would be returned nearly to 
the form before the March 27, 2015, final rule. In the paragraph (e) 
header, FMCSA replaces ``Rented property-carrying commercial motor 
vehicles'' with the header phrase ``Rented CMVs and leased passenger-
carrying CMVs.'' Throughout paragraph (e), the Agency adds the phrase 
``or lease'' after the term ``rental agreement.'' When referring to a 
``renting motor carrier,'' the Agency adds the phrase ``or lessee'' 
immediately after it. In paragraph (e)(2)(iv), in addition to the cross 
reference to the property-carrying leasing regulations in 49 CFR part 
376, FMCSA adds a cross reference to the passenger-carrying leasing 
regulations in subpart G of part 390 so that the revised sentence reads 
``See the property-carrying leasing regulations at 49 CFR part 376 and 
the passenger-carrying leasing regulations at subpart G of this part 
for information that should be included in all leasing documents.'' 
FMCSA proposes to add paragraph (e)(2)(v) to allow the passenger-
carrying CMV operating under the 48-hour emergency exception pursuant 
to Sec.  390.403(a)(2) to be excepted from paragraphs (iii) and (iv) 
regarding a lease document with required information being carried on 
the vehicle, provided the lessor and lessee comply with the 
requirements of the provision in Sec.  390.403(a)(2).
    In paragraph (f), FMCSA would remove the special marking 
regulations for leased and interchanged passenger-carrying CMVs. This 
proposal would redesignate paragraphs (g) and (h) as paragraphs (f) and 
(g), respectively, as they were on July 1, 2015.\9\
---------------------------------------------------------------------------

    \9\ See https://www.ecfr.gov/cgi-bin/text-idx?SID=b9ddca68b462ed0f3d5758839de97752&pitd=20150701&node=pt49.5.390&rgn=div5#se49.5.390_121.
---------------------------------------------------------------------------

C. Part 390, Subpart F Lease and Interchange of Passenger-Carrying 
Commercial Motor Vehicles

    Subpart F, including Sec. Sec.  390.301, 390.303, and 390.305, 
would be removed and reserved.

[[Page 47775]]

D. Part 390, Subpart G Lease and Interchange of Passenger-Carrying 
Commercial Motor Vehicles

    Subpart G, consisting of Sec. Sec.  390.401 and 390.403, would be 
added.

E. Section 390.401 Applicability

    Paragraph (a) would add the general applicability for passenger-
carrying CMV leases and interchanges as the terms ``lease'' and 
``interchange'' would be defined in this proposal's Sec. Sec.  390.5 
(suspended) and 390.5T.
    Paragraph (b) would provide the two proposed exceptions to the 
general rule. Paragraph (c) would provide that if the use of a 
passenger-carrying commercial motor vehicle is conferred between motor 
carriers subject to this proposal and either carrier fails to meet all 
applicable requirements of subpart G, both motor carriers shall be 
subject to a civil penalty.

F. Section 390.403 Lease and Interchange Requirements

    In paragraph (a)(1), this proposal would set out the two instances 
in which a lease or other agreement is required (and the lease or 
agreement must then meet the conditions of paragraphs (b) and (c) of 
this section). In paragraph (a)(2), this proposal would allow the 
delayed writing of a lease after an emergency, such as a disabled 
vehicle, that disrupts or delays a trip, and would not limit the 
exception to times when passengers are on the bus.
    Paragraph (b) would specify the four minimum required items of any 
lease, sublease, or interchange document required under this proposal: 
(1) Vehicle identification information; (2) Parties; (3) Specific 
duration; and (4) Exclusive possession and responsibilities.
    Paragraph (c) would provide when a copy of the lease must be on the 
passenger-carrying CMV and how long both the lessor and lessee must 
retain copies of the lease, sublease, or agreement.

X. Regulatory Analyses

A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563 (Improving 
Regulation and Regulatory Review), and DOT Regulatory Policies and 
Procedures

    FMCSA performed an analysis of the impacts of the proposed rule and 
determined it is not a significant regulatory action under section 3(f) 
of E.O. 12866 (58 FR 51735, October 4, 1993), Regulatory Planning and 
Review, as supplemented by E.O. 13563 (76 FR 3821, January 21, 2011), 
Improving Regulation and Regulatory Review. Accordingly, the Office of 
Management and Budget (OMB) has not reviewed it under that Order. It is 
also not significant within the meaning of DOT regulatory policies and 
procedures (DOT Order 2100.5 dated May 22, 1980; 44 FR 11034 (February 
26, 1979)).
    As described earlier, the proposed rule would reduce the scope of 
the lease and interchange requirements for motor carriers of 
passengers. Furthermore, those passenger carriers and passenger-
carrying CMV trips for which the proposed rule would remain applicable 
would be subject to lease and interchange requirements that are reduced 
in comparison to those of the 2015 final rule. At the same time, FMCSA 
believes that the lease and interchange requirements of the proposed 
rule would still enable safety officials and the general public to 
sufficiently identify the passenger carrier responsible for safety. As 
a consequence, FMCSA estimates that the proposed rule would result in a 
cost savings, but would not result in any change to safety benefits.
    The Agency estimates that the proposed rule would result in a cost 
savings of $75.1 million on an undiscounted basis, $66.5 million 
discounted at 3 percent, and $57.5 million discounted at 7 percent over 
the 10-year analysis period. Expressed on an annualized basis, this 
equates to a 10-year cost savings of $7.8 million at a 3 percent 
discount rate and $8.2 million at a 7 percent discount rate, again 
representing a decrease in cost or a cost savings.
Key Inputs to the Analysis
    The proposed rule revises regulations established in the 2015 final 
rule, therefore the 2015 final rule serves as the baseline against 
which the effects of the proposed rule are evaluated. Many of the key 
inputs to this analysis of the proposed rule are based on the same data 
sources and methods as those developed and used in the evaluation of 
the 2015 final rule, with various updates made as needed to reflect 
more recently available data and information. Therefore, a copy of the 
regulatory evaluation for the 2015 final rule is available in the 
docket for the proposed rule, and, where applicable, the Agency cites 
that document in the analysis below.\10\ A 10-year analysis period of 
2019 to 2028 is utilized for this analysis of the proposed rule, and 
all monetary values are expressed in 2016 dollars.
---------------------------------------------------------------------------

    \10\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.''
---------------------------------------------------------------------------

Number of Passenger Carriers Experiencing Regulatory Relief Under the 
Proposed Rule
    The Agency estimates that an annual average of 8,215 motor carriers 
of passengers would experience regulatory relief under the proposed 
rule, as discussed below. This represents the average over the 10-year 
analysis period of the individual annual estimates of the total number 
of passenger carriers experiencing regulatory relief under the proposed 
rule, which are presented in Table 2. As also shown in Table 2, the 
Agency estimates that approximately 75 percent of this total number of 
passenger carriers would experience full regulatory relief and would no 
longer be subject to the lease and interchange requirements for 
passenger-carrying CMVs as a consequence of the proposed rule. The 
remaining 25 percent of these passenger carriers would experience 
partial regulatory relief and remain subject to reduced lease and 
interchange requirements compared to those of the 2015 final rule.

                 Table 2--Estimated Number of Passenger Carriers Experiencing Regulatory Relief
                                             Under the Proposed Rule
----------------------------------------------------------------------------------------------------------------
                                                                                Passenger
                                                             Passenger           carriers       Total passenger
                                                              carriers         experiencing         carriers
                          Year                           experiencing full       partial          experiencing
                                                         regulatory relief  regulatory relief  regulatory relief
                                                             under the          under the          under the
                                                           proposed rule      proposed rule      proposed rule
----------------------------------------------------------------------------------------------------------------
2019...................................................              5,929              1,977              7,906
2020...................................................              5,980              1,993              7,973

[[Page 47776]]

 
2021...................................................              6,031              2,010              8,041
2022...................................................              6,082              2,027              8,109
2023...................................................              6,134              2,044              8,178
2024...................................................              6,185              2,062              8,247
2025...................................................              6,238              2,079              8,317
2026...................................................              6,290              2,097              8,387
2027...................................................              6,344              2,115              8,459
2028...................................................              6,397              2,133              8,530
                                                        --------------------------------------------------------
    Annual average.....................................              6,161              2,054              8,215
----------------------------------------------------------------------------------------------------------------

    To derive the estimates presented in Table 2 of the number of 
passenger carriers experiencing regulatory relief under the proposed 
rule, FMCSA first estimated the number of passenger carriers that, in 
the absence of the proposed rule, would be affected by the lease and 
interchange requirements of the 2015 final rule. This estimate is based 
on the same data sources and methods as those developed and used in the 
evaluation of the 2015 final rule \11\ but updated to reflect more 
recently available data and information. Data from the FMCSA Motor 
Carrier Management Information System (MCMIS) and the FMCSA Licensing 
and Insurance (L&I) system were used to develop a new baseline value 
for the reported number of all active interstate passenger carriers 
operating in the U.S. as of the end of calendar year 2017, namely 
13,386 carriers.\12\ \13\
---------------------------------------------------------------------------

    \11\ Further details regarding the specific data sources and 
methods can be found in DOT FMCSA, ``Lease and Interchange of 
Vehicles, Motor Carriers of Passengers, 2015 Final Rule Regulatory 
Evaluation.'' Pages 9-12.
    \12\ U.S. Department of Transportation (DOT), Federal Motor 
Carrier Safety Administration (FMCSA). Motor Carrier Management 
Information System (MCMIS), and Licensing and Insurance (L&I) 
system. Snapshots as of December 29, 2017 (DART request ID #38883).
    \13\ The total number of 13,386 passenger carriers as of the end 
of 2017 actually represents 11,705 unique carriers, because some 
carriers provide passenger service in more than one of the operation 
classifications shown. Consistent with the approach used in the 
regulatory evaluation for the May 2015 final rule, the larger number 
was used here so as to not risk underestimating the number of 
affected passenger carriers and the corresponding cost of the lease 
and interchange requirements of the May 2015 final rule.
---------------------------------------------------------------------------

    Of this total population, the Agency estimates that, in the absence 
of the proposed rule, 7,774 of these passenger carriers would be 
subject to the May 2015 final rule. This estimate is based on the same 
methods as those developed and used in the evaluation of the 2015 final 
rule, and assumes that under that rule 100 percent of authorized for-
hire carriers, 100 percent of exempt for-hire carriers, and 10 percent 
of private passenger carriers would be subject to the lease and 
interchange requirements for passenger-carrying CMVs.\14\
---------------------------------------------------------------------------

    \14\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Pages 9-12.

   Table 3--Reported Number of Active Interstate Passenger Carriers Operating in the U.S. (as of December 29,
2017), and Estimated Number That Would Be Subject to the May 2015 Final Rule in the Absence of the Proposed Rule
----------------------------------------------------------------------------------------------------------------
                                                                Number (and percent) estimated to be subject to
     Type of passenger carrier operation        Total number     the May 2015 final rule in the absence of the
                                                 of carriers                     proposed rule
----------------------------------------------------------------------------------------------------------------
Authorized For-Hire \(a)\....................           6,629  6,629 (100% of total).
Exempt For-Hire (9+) \(b)\...................             340  340 (100% of total).
Exempt For-Hire (16+) \(c)\..................             181  181 (100% of total).
Private (business) \(d)\.....................           2,599  260 (10% of total).
Private (non-business) \(e)\.................           3,637  364 (10% of total).
                                              ------------------------------------------------------------------
    Total \(f)\..............................          13,386  7,774.
----------------------------------------------------------------------------------------------------------------
Notes:
(a) A commercial entity whose primary business activity is the transportation of passengers by motor vehicle for
  compensation.
(b) A for-hire entity that is exempt under 49 U.S.C. 13506, and operates at least one passenger vehicle designed
  or used to accommodate 9 or more passengers including the driver.
(c) A for-hire entity that is exempt under 49 U.S.C. 13506, and operates at least one passenger vehicle designed
  or used to accommodate 16 or more passengers including the driver.
(d) A private entity engaged in the interstate transportation of passengers which is provided in the furtherance
  of a commercial enterprise and is not available to the public at large.
(e) A private entity involved in the interstate transportation of passengers that does not otherwise meet the
  definition of a ``private (business)'' motor carrier of passengers as noted above.

[[Page 47777]]

 
(f) The total number of 13,386 passenger carriers shown actually represents 11,705 unique carriers, because some
  carriers provide passenger service in more than one of the operation classifications shown. Consistent with
  the approach used in the regulatory evaluation for the May 2015 final rule, the larger number was used here so
  as to not risk underestimating the number of affected passenger carriers and the corresponding cost of the
  lease and interchange requirements of the May 2015 final rule.

    The 2017 value of 7,774 passenger carriers that would be subject to 
the 2015 final rule was then used as the basis to develop future 
projections over the 2019 to 2028 analysis period. These projections 
were developed by increasing the baseline 2017 value of 7,774 passenger 
carriers consistent with the occupation-specific employment growth 
projections for Standard Occupational Classification (SOC) Code 53-3021 
(Bus drivers, transit and intercity) obtained from the Bureau of Labor 
Statistics (BLS) Employment Projections Program which, from 2016 to 
2026, is forecast to grow by 0.85 percent annually.\15\ This results in 
a projection of the number of passenger carriers that, in the absence 
of the proposed rule, would be subject to the 2015 rule each year over 
the 2019 to 2028 analysis period. In the absence of the proposed rule, 
all of these passenger carriers would be subject to the 2015 rule. As 
discussed earlier, under the proposed rule a large portion of these 
passenger carriers would no longer be subject to lease and interchange 
requirements, and the remaining carriers would be subject to reduced 
requirements. In Table 2, the column on the far right shows the 
projected number of passenger carriers that would experience regulatory 
relief under the proposed rule over the 10-year analysis period of 2019 
to 2028, which equals an annual average of 8,215 passenger carriers.
---------------------------------------------------------------------------

    \15\ U.S. DOLBLS. ``Occupational Employment Projections. Table 
1.2: Employment by detailed occupation, 2016 and projected 2026.'' 
Available at: https://www.bls.gov/emp/ep_data_occupational_data.htm 
(accessed December 29, 2017).
---------------------------------------------------------------------------

    Table 2 also shows the subset of those 8,215 passenger carriers 
that under the proposed rule would experience full regulatory relief 
and would no longer be subject to lease and interchange requirements. 
Over the 10-year analysis period, the Agency estimates that an annual 
average of 6,161 passenger carriers, or approximately 75 percent of the 
total number of carriers that would experience regulatory relief, would 
experience full regulatory relief. This value was estimated by assuming 
that approximately 10 percent of authorized for-hire carriers would be 
subject to the lease and interchange requirements under the proposed 
rule, rather than 100 percent as assumed previously under the 2015 
final rule and as shown in Table 3.
    For exempt for-hire carriers and private passenger carriers, the 
analysis assumes that 100 percent and 10 percent, respectively, of 
these carriers would continue to be subject to the lease and 
interchange requirements under the proposed rule, the same percentages 
as under the 2015 final rule and also as shown in Table 3. Combined, 
these changes result in an estimated overall reduction of approximately 
75 percent in the number of passenger carriers subject to lease and 
interchange requirements under the proposed rule.\16\ This reduction is 
consistent with the comments and petitions for reconsideration that the 
Agency received, a number of which suggested that the scope of the 2015 
final rule likely encompassed a relatively large proportion of 
passenger-carrying CMV trips in which both the lessor and the lessee 
were authorized carriers. Petitioners generally argued that such 
carriers should not be subject to lease and interchange requirements.
---------------------------------------------------------------------------

    \16\ As shown in Table 3, in 2017 an estimated 7,774 passenger 
carriers would be subject to the lease and interchange requirements 
of passenger-carrying CMVs under the May 2015 final rule. Under the 
proposed rule, as noted, the analysis assumed that only 10 percent 
of authorized for-hire carriers would be subject to the lease and 
interchange requirements of passenger-carrying CMVs, or 10 percent 
of 6,629, which equals 663 authorized for-hire passenger carriers. 
The analysis also assumed that 100 percent of exempt for-hire 
carriers and 10 percent of private passenger carriers would continue 
to be subject to the lease and interchange requirements for 
passenger-carrying CMVs under the proposed rule, which equals 100 
percent of 340 and 181 exempt for-hire carriers (totaling 521 exempt 
for-hire carriers), and 10 percent of 2,599 and 3,637 private 
carriers (totaling 624 private carriers). Therefore, the Agency 
estimates that 1,808 passenger carriers would be subject to the 
lease and interchange requirements of passenger-carrying CMVs in 
2017 under the proposed rule, or 23.3 percent of those subject to 
the requirements under the 2015 final rule, which is rounded to 25 
percent for purposes of developing the future projections of 
affected passenger carriers presented in Table 2. This is a 75 
percent reduction in the number of passenger carriers affected by 
the lease and interchange requirements of passenger-carrying CMVs as 
a consequence of the proposed rule.
---------------------------------------------------------------------------

    Finally, Table 2 also presents an estimate of the remaining subset 
of the annual average of 8,215 passenger carriers that would experience 
partial regulatory relief and remain subject to reduced lease and 
interchange requirements compared to those of the 2015 rule. Over the 
10-year analysis period, the Agency estimates that an annual average of 
2,054 passenger carriers, or approximately 25 percent of the total, 
would experience partial regulatory relief. As noted earlier, however, 
these carriers would be subject to reduced requirements compared to 
those of the 2015 final rule.
    FMCSA requests comments and submission of quantitative or 
qualitative data addressing the potential number of passenger carriers 
that would experience regulatory relief under the proposed rule.
Number of CMV Trips Experiencing Regulatory Relief Under the Proposed 
Rule
    The Agency estimates that an annual average of 537,134 passenger-
carrying CMV trips would experience regulatory relief under the 
proposed rule over the 10-year analysis period, as presented in Table 4 
and discussed below. This estimate is based on the same methods as 
those developed and used in the evaluation of the 2015 final rule.\17\ 
The estimated number of passenger carriers that would experience 
regulatory relief under the proposed rule (see Table 2) serves as the 
primary basis for the estimate of the number of trips that would 
experience regulatory relief under the proposed rule. For each of the 
carriers in Table 2, we assumed an estimated average of 64 trips per 
year are operated with leased or interchanged vehicles. This is 
consistent with the assumptions used in the regulatory evaluation for 
the 2015 final rule.\18\ The estimated number of trips that would 
experience regulatory relief under the proposed rule (see Table 4) also 
incorporates a modest upward adjustment to reflect an annual average of 
11,400 trips operated by Greyhound, one of the largest U.S. interstate 
passenger carriers. This adjustment is consistent with the methods used 
in the evaluation of the 2015 final rule,\19\ and is based on data that 
was provided to FMCSA by Greyhound regarding trips with leased and 
interchanged vehicles in 2012.\20\
---------------------------------------------------------------------------

    \17\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Page 21, Table 6.
    \18\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Page 21, Table 6.
    \19\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Pages 12 to 13.
    \20\ ``Lease and Interchange of Vehicles; Motor Carriers of 
Passengers. NPRM.'' September 20, 2013. Comments of Greyhound Lines, 
Inc.. Docket ID number FMCSA-2012-0103-0010. Page 2. November 12, 
2013. Available at: https://www.regulations.gov/contentStreamer?documentId=FMCSA-2012-0103-0010&attachmentNumber=1&contentType=pdf (accessed March 12, 2018). 
Greyhound reported 10,263 passenger-carrying CMV trips performed in 
2012 by vehicles leased and interchanged. This 2012 value was then 
adjusted to reflect observed industry growth from 2012 to 2016 as 
represented by growth in employment for SOC Code 53-3021 (Bus 
drivers, transit and intercity), and then further adjusted to 
reflect employment growth projection for SOC Code 53-3021 (Bus 
drivers, transit and intercity).

---------------------------------------------------------------------------

[[Page 47778]]

    The Agency estimates that approximately 75 percent of these 
passenger-carrying CMV trips would experience full regulatory relief 
and would no longer be subject to the lease and interchange 
requirements of the 2015 final rule. The remaining 25 percent of these 
trips would experience partial regulatory relief and remain subject to 
reduced lease and interchange requirements compared to those of the 
2015 final rule.
    FMCSA requests comments and submission of quantitative or 
qualitative data addressing the potential number of passenger-carrying 
CMV trips that would experience regulatory relief under the proposed 
rule.

            Table 4--Estimated Number of Passenger-Carrying CMV Trips Experiencing Regulatory Relief
                                             Under the Proposed Rule
----------------------------------------------------------------------------------------------------------------
                                                                                Passenger-
                                                             Passenger-        carrying CMV
                                                            carrying CMV          trips         Total CMV trips
                                                               trips           experiencing       experiencing
                          Year                           experiencing full       partial       regulatory relief
                                                         regulatory relief  regulatory relief      under the
                                                             under the          under the        proposed rule
                                                           proposed rule      proposed rule
----------------------------------------------------------------------------------------------------------------
2019...................................................            387,714            129,238            516,952
2020...................................................            391,003            130,334            521,337
2021...................................................            394,318            131,440            525,758
2022...................................................            397,663            132,554            530,217
2023...................................................            401,036            133,678            534,714
2024...................................................            404,437            134,812            539,249
2025...................................................            407,866            135,956            543,822
2026...................................................            411,325            137,109            548,434
2027...................................................            414,814            138,271            553,085
2028...................................................            418,332            139,444            557,776
                                                        --------------------------------------------------------
    Annual average.....................................            402,851            134,284            537,134
----------------------------------------------------------------------------------------------------------------

Other Key Inputs to the Analysis
    The opportunity cost of the time employees of passenger carriers 
spend complying with the lease and interchange requirements represents 
approximately 95 percent of the total cost of the 2015 final rule. The 
cost savings from the proposed rule are likewise heavily influenced by 
aggregate changes in the opportunity cost of employee time.
    The Agency evaluates changes in employee opportunity cost by using 
their labor costs. Labor costs comprise wages, fringe benefits, and 
overhead. Fringe benefits include paid leave, bonuses and overtime pay, 
health and other types of insurance, retirement plans, and legally 
required benefits (Social Security, Medicare, unemployment insurance, 
and workers' compensation insurance). Overhead includes any expenses to 
a firm associated with labor that are not part of employees' 
compensation, and typically includes many types of fixed costs of 
managing a body of employees, such as management and human resource 
staff salaries or payroll services. The economic costs of labor to a 
firm, in this case a passenger carrier, include all forms of 
compensation and labor related expenses. For this regulatory 
evaluation, the costs of labor to the firm are calculated to include 
base wages and fringe benefits, plus overhead.
    For the regulatory evaluation of both the 2015 final rule and this 
proposed rule, the median hourly base wage rate for the BLS SOC code 
53-1031, ``First-Line Supervisors of Transportation and Material-Moving 
Machine and Vehicle Operators,'' is used as the basis for calculating 
the relevant cost of labor. For 2016, BLS reports an hourly base wage 
rate of $27.54 for this occupation.\21\
---------------------------------------------------------------------------

    \21\ U.S. DOLBLS. ``Occupational Employment Statistics (OES). 
National.'' May 2016. March 31, 2017. Available at: https://www.bls.gov/oes/special.requests/oesm16nat.zip (accessed January 18, 
2018).
---------------------------------------------------------------------------

    BLS does not publish data on fringe benefits for specific 
occupations, but it does do so for broad industry groups in its 
Employer Costs for Employee Compensation (ECEC) publication. A fringe 
benefit rate of 57 percent (i.e., equal to 57 percent of the base wage 
rate) is used. This is based on information from the June 2016 BLS ECEC 
data, which for the ``Transportation and warehousing'' segment of 
private industry reports a benefits cost of $14.09 per hour worked, 
which represents 57 percent of wages and salaries in that industry 
segment of $24.73 per hour.\22\
---------------------------------------------------------------------------

    \22\ U.S. DOLBLS . ``Table 10: Employer costs per hour worked 
for employee compensation and costs as a percent of total 
compensation: Private industry workers, by industry group, March 
2015.'' Available at: https://www.bls.gov/news.release/archives/ecec_09082016.pdf (accessed March 5, 2017).
---------------------------------------------------------------------------

    Finally, for estimating overhead rates, the Agency used industry 
data gathered for the Truck Costing Model developed by the Upper Great 
Plains Transportation Institute, North Dakota State University.\23\ 
Research conducted for this model found an average cost of $0.107 per 
mile of CMV operation for management and overhead, and $0.39 per mile 
for labor, indicating an overhead rate of 27 percent (27% = $0.107 / 
$0.39 (rounded to the nearest whole percent)).
---------------------------------------------------------------------------

    \23\ Berwick, Farooq. Truck Costing Model for Transportation 
Managers. North Dakota State University. Upper Great Plains 
Transportation Institute. August 2003. Appendix A, pp. 42-47. 
Available at: http://www.mountain-plains.org/pubs/pdf/MPC03-152.pdf 
(accessed July 20, 2015).
---------------------------------------------------------------------------

    Combined, the overall relevant cost of labor, including base wage 
rate, fringe benefits, and overhead, for passenger carriers that would 
experience regulatory relief under the proposed rule is $54.91 per 
hour.
Costs
    The proposed rule would not result in any increase in costs. It 
revises the 2015 final rule, which serves as the baseline against which 
the effects of the proposed rule are evaluated. Absent the proposed 
rule, the Agency estimates

[[Page 47779]]

that the baseline costs of the 2015 final rule over the 10-year 
analysis period of 2019 to 2028 would be $10.4 million on an annualized 
basis at a 7 percent discount rate.\24\ As noted earlier, the Agency 
estimates that the proposed rule would result in a cost savings of $8.2 
million at a 7 percent discount rate relative to the 2015 baseline, 
representing a 79 percent overall reduction in cost.
---------------------------------------------------------------------------

    \24\ This annualized cost estimate of $10.4 million differs 
somewhat from the value of $8.0 million that was presented in the 
regulatory evaluation for the 2015 final rule primarily due to 
various real and nominal updates made to reflect more recently 
available data and information, as well as the different time frames 
covered by the 10-year analysis period for each respective analysis 
(previously 2017 to 2026, and now 2019 to 2028).
---------------------------------------------------------------------------

    The estimated reduction of approximately 75 percent in the number 
of passenger carriers and CMV trips under the proposed rule is 
responsible for most of the annualized cost savings. The remaining cost 
savings are the result of reduced requirements for those approximately 
25 percent of passenger carriers and CMV trips that would remain 
subject to the lease and interchange rules.
    Under both the 2015 rule and the proposed rule, costs are organized 
into six major categories. Five are related to the requirements under 
Sec.  390.303 of the 2015 rule, and include: One-time costs of lease 
negotiation; lease documentation costs; lease copying costs; lease 
receipt costs; and vehicle marking costs. The sixth cost category is 
related to the charter party notification requirement under Sec.  
390.305 of the 2015 rule.
    One-time costs of lease negotiation under the proposed rule are 
calculated based on the number of CMV trips that would experience 
regulatory relief under the proposed rule for this cost category, the 
time expended by employees in negotiating the lease and developing the 
lease document, and the total labor cost of these employees. The number 
of trips that would experience regulatory relief under the proposed 
rule for this cost category are the trips that would no longer be 
subject to the lease and interchange requirements. As presented earlier 
in Table 4, the Agency estimates that an annual average of 402,851 
passenger-carrying CMV trips would no longer be subject to the lease 
and interchange requirements. Consistent with the approach used in the 
2015 regulatory evaluation, for each of these trips it is assumed that 
30 minutes of employee time is saved, for both the lessor and the 
lessee, for a total time savings of one hour for each such trip.\25\ 
This savings is valued at the total labor cost of $54.91 per hour, 
described earlier. The resulting savings in one-time costs of lease 
negotiation under the proposed rule would be $21.3 million on an 
undiscounted basis over the 10-year analysis period, and $2.8 million 
on an annualized basis at a 7 percent discount rate. As noted earlier, 
FMCSA proposes to remove the requirement in Sec.  390.303(b)(5) that 
the lease contain a statement that the lessee is responsible for 
compliance with the insurance requirements of 49 CFR part 387. Although 
in theory this proposed change may result in a modest incremental 
reduction in the amount of time passenger carrier employees expend in 
negotiating the lease and developing the lease document for carriers 
still subject to the leasing and interchange requirements, there is no 
empirical basis upon which to estimate such a possible impact. 
Therefore the Agency has chosen not to make any such incremental 
reduction in its analysis. Also, not quantifying such a potential 
impact is a conservative approach that helps to avoid overestimating 
the cost savings of the proposed rule.
---------------------------------------------------------------------------

    \25\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Pages 16 to 17.
---------------------------------------------------------------------------

    Lease documentation costs under the proposed rule are calculated 
based on the number of CMV trips that would experience regulatory 
relief under the proposed rule for this cost category, the time spent 
by carrier employees verifying the information and signing the lease, 
and the total labor cost of these employees. The number of trips that 
would experience regulatory relief under the proposed rule for this 
cost category are the same as above, an annual average of 402,851 trips 
that would no longer be subject to the lease and interchange 
requirements. Consistent with the 2015 regulatory evaluation, for each 
trip that would experience regulatory relief under the proposed rule 
for this cost category this analysis assumes that both the lessor and 
the lessee save 5 minutes of employee time, for a total savings of 10 
minutes for each such trip.\26\ This is valued at the total labor cost 
of $54.91 per hour. The resulting savings in lease documentation costs 
under the proposed rule would be $36.9 million on an undiscounted basis 
over the 10-year analysis period, and $3.7 million on an annualized 
basis at a 7 percent discount rate.
---------------------------------------------------------------------------

    \26\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Page 17.
---------------------------------------------------------------------------

    Lease copying cost savings under the proposed rule are calculated 
based on the number of CMV trips that would experience regulatory 
relief under the proposed rule for this cost category, and an estimated 
cost per copy. The number of trips that would experience regulatory 
relief under the proposed rule for this cost category are the same as 
above, an annual average of 402,851 such trips. As in the 2015 
regulatory evaluation, it assumed that for each trip one copy of the 
lease is made for the lessor and another for the lessee, each at a cost 
of $0.15, for a total cost of $0.30 per trip.\27\ The resulting in 
lease copying cost savings under the proposed rule would be $1.2 
million on an undiscounted basis over the 10-year analysis period, and 
$0.12 million on an annualized basis at a 7 percent discount rate.
---------------------------------------------------------------------------

    \27\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Page 17.
---------------------------------------------------------------------------

    The remaining three cost categories (lease receipts, vehicle 
marking, and charter party notification) would be eliminated for all 
passenger carriers and passenger-carrying trips, including those that 
would still be subject to lease and interchange requirements under the 
proposed rule.
    Lease receipt cost savings under the 2015 rule are calculated based 
on the number of CMV trips that would experience regulatory relief 
under the proposed rule for this cost category, with two receipts 
assumed per trip (one for obtaining, the other for surrendering the 
vehicle), and both the lessor and lessee requiring copies of each, for 
a total of four receipts per trip. Because the proposed rule would 
remove the receipt provision in its entirety, the cost savings would 
apply to all trips listed in Table 4, an annual average of 537,134 
trips. Consistent with the 2015 regulatory evaluation, each receipt is 
assumed to cost $0.15, with four receipts required for a total of $0.60 
per trip.\28\ The resulting cost savings in lease receipt under the 
proposed rule would be $3.2 million on an undiscounted basis over the 
10-year analysis period, and $0.321 million on an annualized basis at a 
7 percent discount rate.
---------------------------------------------------------------------------

    \28\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Page 17 to 18.
---------------------------------------------------------------------------

    Vehicle marking cost savings under the 2015 rule are calculated 
based on the number of CMV trips that would experience regulatory 
relief under the proposed rule for this cost category, and marking 
costs per vehicle that include two sheets of letter size paper per trip 
at $0.014 per sheet, plus $0.04 for

[[Page 47780]]

adhesive tape. Because the proposed rule would remove the marking 
provision in its entirety, the cost savings would apply to all trips 
listed in Table 4, an annual average of 537,134 trips. The resulting 
cost savings in vehicle marking under the proposed rule would be $0.355 
million on an undiscounted basis over the 10-year analysis period, and 
$0.035 million on an annualized basis at a 7 percent discount rate.
    Charter party notification cost savings under the 2015 rule are 
calculated based on the number of CMV trips that would experience 
regulatory relief under the proposed rule for this cost category, and 
an estimated expenditure by passenger carrier employees of 5 minutes 
per notification.\29\ Because the proposed rule would remove the 
notification provision in its entirety, the resulting cost savings 
would apply to all trips in which notification would otherwise have 
been necessary, which are assumed to be 50 percent of the total annual 
average of 537,134 passenger-carrying CMV trips listed in Table 4.\30\ 
The resulting savings in charter party notification costs under the 
proposed rule would be $12.1 million on an undiscounted basis over the 
10-year analysis period, and $1.2 million on an annualized basis at a 7 
percent discount rate.
---------------------------------------------------------------------------

    \29\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Page 24 to 26.
    \30\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.'' 
Page 24 to 26.
---------------------------------------------------------------------------

    In summary, and as presented in Table 5, the Agency estimates that 
the proposed rule would result in a cost savings of $75.1 million on an 
undiscounted basis, $66.5 million discounted at 3 percent, and $57.5 
million discounted at 7 percent over the 10-year analysis period. 
Expressed on an annualized basis, this equates to a 10-year cost 
savings of $7.8 million at a 3 percent discount rate and $8.2 million 
at a 7 percent discount rate.

                                                        Table 5--Total Cost of the Proposed Rule
                                                                 [In thousands of 2016$]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Undiscounted                                             Discounted
                                        ----------------------------------------------------------------------------------------------------------------
                                                   Lease and interchange costs
                                        -------------------------------------------------
                  Year                                        Lease                        Charter party
                                              Lease       documentation,                   notification     Total cost     Discounted at   Discounted at
                                           negotiation     copying, and       Vehicle          costs           \(a)\            3%              7%
                                           costs \(b)\    lease receipt   marking  costs
                                                              costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
2019...................................       ($21,290)         ($3,974)           ($34)        ($1,168)       ($26,467)       ($25,697)       ($24,736)
2020...................................               0          (4,008)            (34)         (1,178)         (5,221)         (4,921)         (4,560)
2021...................................               0          (4,042)            (35)         (1,188)         (5,265)         (4,819)         (4,298)
2022...................................               0          (4,076)            (35)         (1,198)         (5,310)         (4,718)         (4,051)
2023...................................               0          (4,111)            (35)         (1,208)         (5,355)         (4,619)         (3,818)
2024...................................               0          (4,146)            (36)         (1,219)         (5,401)         (4,523)         (3,599)
2025...................................               0          (4,181)            (36)         (1,229)         (5,446)         (4,428)         (3,392)
2026...................................               0          (4,216)            (36)         (1,239)         (5,493)         (4,336)         (3,197)
2027...................................               0          (4,252)            (37)         (1,250)         (5,539)         (4,245)         (3,013)
2028...................................               0          (4,289)            (37)         (1,261)         (5,586)         (4,157)         (2,840)
                                        ----------------------------------------------------------------------------------------------------------------
    Total..............................        (21,290)         (41,301)           (355)        (12,139)        (75,084)        (66,463)        (57,504)
Annualized.............................  ..............  ...............  ..............  ..............         (7,508)         (7,792)         (8,187)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
(a) Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
  components.)
(b) Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.

Benefits
    The regulatory evaluation for the 2015 final rule attempted to 
estimate the potential safety benefits of lease and interchange 
requirements,\31\ but there were insufficient data and empirical 
evidence to demonstrate a measurable quantitative relationship between 
lease and interchange requirements and improved safety outcomes, such 
as reduced frequency and/or severity of crashes or reduced frequency of 
violations. Therefore, FMCSA followed the guidance of the Office of 
Management and Budget (OMB) in its Circular A-4 and performed a 
threshold analysis.\32\ Also referred to as a break-even analysis, a 
threshold analysis attempts to determine the amount of safety benefits 
(e.g., reduced crashes and corresponding reductions in fatalities, 
injuries, and property damage) that would need to occur as a 
consequence of a rule in order for the rule to yield zero net benefits 
(i.e., for the benefits of the rule to equal, or exactly to offset, the 
estimated costs of the rule).
---------------------------------------------------------------------------

    \31\ DOT FMCSA, ``Lease and Interchange of Vehicles, Motor 
Carriers of Passengers, 2015 Final Rule Regulatory Evaluation.''
    \32\ OMB. ``Circular A-4. Regulatory Analysis.'' September 17, 
2003. Available at: https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A4/a-4.pdf (accessed March 9, 2018).
---------------------------------------------------------------------------

    The problem of insufficient data and empirical evidence noted in 
2015 is still present today. Unlike regulations dealing with vehicle 
equipment or driver behaviors that can be clearly linked to reduced 
crashes and improved safety, both the 2015 final rule and this proposed 
rule affect safety less directly and immediately. Lease and interchange 
requirements for motor carriers of passengers improve the ability of 
the Agency to attribute the inspection, compliance, enforcement, and 
safety data collected by the Agency and its State partners to the 
correct motor carrier and driver, allowing FMCSA to more accurately 
identify unsafe carriers and initiate appropriate interventions. FMCSA 
believes that this proposed rule would be a less costly and burdensome 
regulatory approach than the 2015 final rule, yet would still enable 
safety officials and the general public to

[[Page 47781]]

sufficiently identify the passenger carrier responsible for safety. 
Therefore, the Agency does not anticipate any change to safety benefits 
as a result of the proposed rule.
    FMCSA requests comments and submission of quantitative or 
qualitative data addressing the potential impacts to safety benefits 
from the proposed rule.

B. E.O. 13771 (Reducing Regulation and Controlling Regulatory Costs)

    This rulemaking is expected to be an E.O. 13771 deregulatory 
action.\33\ Details on the estimated cost savings of this rulemaking 
can be found in the rule's economic analysis. The present value of the 
cost savings of this rulemaking, measured on an infinite time horizon 
at a 7 percent discount rate, is $83.6 million. Expressed on an 
annualized basis, the cost savings are $5.9 million. These values are 
expressed in 2016 dollars.
---------------------------------------------------------------------------

    \33\ Executive Office of the President. Executive Order 13771 of 
January 30, 2017. Reducing Regulation and Controlling Regulatory 
Costs. 82 FR 9339-9341. Feb. 3, 2017.
---------------------------------------------------------------------------

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601 et 
seq.), as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (SBREFA) (Pub. L. 104-121, 110 Stat. 857), requires Federal 
agencies to consider the impact of their regulatory proposals on small 
entities, analyze effective alternatives that minimize small entity 
impacts, and make their analyses available for public comment. The term 
``small entities'' means small businesses and not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and governmental jurisdictions with 
populations under 50,000.\34\ Accordingly, DOT policy requires an 
analysis of the impact of all regulations on small entities, and 
mandates that agencies strive to lessen any adverse effects on these 
entities. Section 605 of the RFA allows an Agency to certify a rule, in 
lieu of preparing an analysis, if the rulemaking is not expected to 
have a significant economic impact on a substantial number of small 
entities.
---------------------------------------------------------------------------

    \34\ Regulatory Flexibility Act, Public Law 96-354, 94 Stat. 
1164 (codified at 5 U.S.C. 601 et seq.).
---------------------------------------------------------------------------

    The proposed rule would not result in any increase in costs or any 
increase in burden. The proposed rule would reduce the applicability of 
the lease and interchange requirements for motor carriers of 
passengers, resulting in a substantial reduction in the number of 
entities that would be subject to these requirements and a commensurate 
reduction in costs and burden experienced by these entities. 
Furthermore, for those motor carriers of passengers that would continue 
to be subject to the lease and interchange requirements under the 
proposed rule, the requirements would be reduced in comparison to the 
existing requirements. This would also result in a reduction in costs 
and burden experienced by these entities.
    The regulated entities that would experience regulatory relief 
under the proposed rule include all of the passenger carriers that are 
subject to the existing lease and interchange requirements. 
Approximately 75 percent of this total number of passenger carriers 
would experience full regulatory relief, and would no longer be subject 
to lease and interchange requirements for passenger-carrying CMVs. The 
remaining 25 percent of these passenger carriers would experience 
partial regulatory relief and remain subject to reduced lease and 
interchange requirements compared to those of the 2015 final rule.
    As presented earlier in Table 3 of the Regulatory Analyses section, 
as of 2017 there were an estimated 7,774 passenger carriers subject to 
the existing lease and interchange requirements, representing 
approximately 58 percent of all active interstate passenger carriers. 
As presented in Table 2, this population of passenger carriers is 
projected to increase slightly due to general baseline industry growth 
to 7,906 passenger carriers in 2019, the first year that the proposed 
rule is anticipated to be in effect. Therefore, it is estimated that 
7,906 passenger carriers would experience regulatory relief under the 
proposed rule. The number of these 7,906 passenger carriers that are 
small entities is not directly known by FMCSA, and is therefore 
estimated below.
    The U.S. Small Business Administration (SBA) defines the size 
standards used to classify entities as small. SBA establishes separate 
standards for each industry, as defined by the North American Industry 
Classification System (NAICS).\35\ It is estimated that the passenger 
carriers that would experience regulatory relief under the proposed 
rule would be in industries within Subsector 485 (Transit and Ground 
Passenger Transportation). All eleven 6-digit NAICS industries within 
Subsector 485 have an SBA size standard based on annual revenue of 
$15.0 million. Three of the eleven 6-digit NAICS industries within 
Subsector 485 are likely to encompass most of the passenger carriers 
that would experience regulatory relief under the proposed rule, and 
details regarding the SBA size standards for those three industries are 
presented in Table 6.
---------------------------------------------------------------------------

    \35\ OMB. ``North American Industry Classification System.'' 
2017. Available at: https://www.census.gov/eos/www/naics/2017NAICS/2017_NAICS_Manual.pdf (accessed March 20, 2018).

                            Table 6--SBA Size Standards for Selected Industries \(a)\
----------------------------------------------------------------------------------------------------------------
                                                                          SBA size
                                                                          standard
                                                                           (annual         SBA size  standard
              NAICS code                  NAICS industry description     revenue in      (number of  employees)
                                                                        millions  of
                                                                          dollars)
----------------------------------------------------------------------------------------------------------------
485113................................  Bus and Other Motor Vehicle             $15.0  (none).
                                         Transit Systems.
485210................................  Interurban and Rural Bus                 15.0  (none).
                                         Transportation.
485510................................  Charter Bus Industry.........            15.0  (none).
----------------------------------------------------------------------------------------------------------------
Notes:
(a) U.S. Small Business Administration (SBA). ``Table of Small Business Size Standards.'' October 1, 2017.
  Available at: https://www.sba.gov/sites/default/files/files/Size_Standards_Table_2017.xlsx (accessed March 20,
  2018).

    Data regarding the annual revenue earned by the estimated 7,906 
passenger carriers that would experience regulatory relief under the 
proposed rule is not collected by FMCSA and is not otherwise available 
from other

[[Page 47782]]

sources. Therefore, the SBA size standard of $15.0 million in annual 
revenue cannot be directly applied in order to determine how many of 
the 7,906 passenger carriers that would experience regulatory relief 
under the proposed rule are small entities. FMCSA does, however, 
collect information regarding the number of passenger-carrying vehicles 
operated by these carriers. As of the end of 2017, of the active 
interstate passenger carriers operating in the U.S. as presented 
earlier in Table 3, approximately 81 percent operated six or fewer 
passenger vehicles, and approximately 93 percent operated 19 or fewer 
passenger vehicles.\36\ We estimate that in the passenger carrier 
industry, the average revenue earned per motorcoach is approximately 
$200,000.\37\ \38\ \39\ This would mean that the SBA size standard of 
$15.0 million in annual revenue would equate to a carrier size of 75 
passenger vehicles. Therefore, carriers operating 75 passenger vehicles 
or fewer would be classified as small, consistent with the SBA size 
standard of $15.0 million. As of the end of 2017, of the active 
interstate passenger carriers operating in the U.S. as presented 
earlier in Table 3, approximately 98 percent operated 75 or fewer 
passenger vehicles. The Agency does not believe that the proposed rule 
would disproportionately apply to either larger or smaller passenger 
carriers, and we therefore estimate that a similar 98 percent of the 
7,906 passenger carriers that would experience regulatory relief under 
the proposed rule, or approximately 7,750 passenger carriers, would be 
small entities. Therefore, FMCSA has determined that this proposed rule 
will have an impact on a substantial number of small entities.
---------------------------------------------------------------------------

    \36\ U.S. DOT, FMCSA. Motor Carrier Management Information 
System (MCMIS), and Licensing and Insurance (L&I) system. Snapshots 
as of December 29, 2017 (DART request ID #38883).
    \37\ The information available regarding revenue for the 
passenger carrier industry is limited. The American Bus Associated 
reported that for 2004, revenue per motorcoach was approximately 
$160,000. Inflated from 2004 dollars to 2016 dollars using either 
CPI-U or the Implicit Price Deflator for GDP, this value becomes 
approximately $200,000 per vehicle.
    \38\ American Bus Association (ABA). ``Motorcoach Census 2005.'' 
September 2006. Page 19, Table 3-5 (Carrier Revenue per Motorcoach, 
Averages, 2004). Available at: https://www.iru.org/apps/cms-filesystem-action?file=events_2007_busandcoach/Motorcoach%20Census%202005%2009-21-20061.pdf (accessed March 8, 
2018).
    \39\ Greyhound, one of the largest interstate passenger carriers 
operating in the U.S., reported total revenue for 2017 of $894 
million, with 78 percent of that total, or $697 million, being 
passenger revenue. With a fleet size reported to consist of 1,600 
buses for the same year, this equals an average passenger revenue 
per motorcoach of $435,000. We believe that substantially higher 
levels of per vehicle revenue such as this are not representative of 
the smaller passenger carriers that make up most of the industry, 
and therefore the lesser estimate of $200,000 revenue per motorcoach 
described above was used here so as not to risk underestimating the 
number of small entities in the passenger carrier industry when used 
to compare against the SBA size standard of $15.0 million in annual 
revenue. Greyhound data is from ``FirstGroup plc, Annual Report and 
Accounts, 2017'', pages 18-19, available at http://
www.firstgroupplc.com/~/media/Files/F/Firstgroup-Plc/indexed-pdfs/
2017%20ARA/
2017%20FirstGroup%20plc%20Annual%20Report%20and%20Accounts.pdf 
(accessed March 19, 2018).
---------------------------------------------------------------------------

    Although FMCSA has determined that this proposed rule would have an 
impact on a substantial number of small entities, the Agency has 
determined that the impact on the small entities that would experience 
regulatory relief under the proposed rule would not be significant. The 
proposed rule would not result in any increase in costs or any increase 
in burden for passenger carriers that are small entities. The effect of 
the proposed rule would be a reduction in costs and burden, and would 
be entirely beneficial to the passenger carriers that are small 
entities. As discussed in the Regulatory Analyses section, the Agency 
estimates that the proposed rule would result in a total cost savings 
of $75.1 million on an undiscounted basis over the 10-year analysis 
period used for the regulatory evaluation, or $7.5 million on an 
annualized basis. As presented in Table 2, an annual average of 
approximately 8,215 passenger carriers would experience regulatory 
relief under the proposed rule over the same 10-year analysis period, 
98 percent of which are estimated to be small entities. The annual cost 
savings per small carrier would therefore be at most $914 on average 
(potentially even somewhat less, given that approximately 2 percent of 
passenger carriers that would experience regulatory relief under the 
proposed rule are not small entities and therefore may represent a 
disproportionately larger share of the overall absolute cost savings 
because of the larger scale of their operations). For even the smallest 
of the small entities, those operating only one passenger vehicle, this 
$914 in annual savings represents only about one half of one percent of 
the estimated total annual revenues of $200,000 for a carrier with just 
one vehicle. Therefore, although FMCSA has determined that this 
proposed rule would have an impact on a substantial number of small 
entities, the Agency has also determined that the impact on these small 
entities would not be significant, and furthermore will be entirely 
beneficial.
    Accordingly, pursuant to section 605(b) of the Regulatory 
Flexibility Act, 5 U.S.C. 605(b), I hereby certify that the proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. FMCSA requests comments on this certification 
and on the analysis presented in support of it.

D. Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996, FMCSA wants to assist small entities 
in understanding this proposed rule so that they can better evaluate 
its effects and participate in the rulemaking initiative. If the 
proposed rule would affect your small business, organization, or 
governmental jurisdiction, and you have questions concerning its 
provisions or options for compliance, please consult the FMCSA point of 
contact, Ms. Loretta Bitner, listed in the For Further Information 
Contact section of this proposed rule.
    Small businesses may send comments on the actions of Federal 
employees who enforce or otherwise determine compliance with Federal 
regulations to the Small Business Administration's Small Business and 
Agriculture Regulatory Enforcement Ombudsman and the Regional Small 
Business Regulatory Fairness Boards. The Ombudsman evaluates these 
actions annually and rates each agency's responsiveness to small 
business. If you wish to comment on actions by employees of FMCSA, call 
1-888-REG-FAIR (1-888-734-3247). The DOT has a policy regarding the 
rights of small entities to regulatory enforcement fairness and an 
explicit policy against retaliation for exercising these rights.\40\
---------------------------------------------------------------------------

    \40\ U.S. Department of Transportation (DOT). ``The Rights of 
Small Entities To Enforcement Fairness and Policy Against 
Retaliation.'' Available at: https://www.transportation.gov/sites/dot.gov/files/docs/SBREFAnotice2.pdf (accessed January 17, 2018).
---------------------------------------------------------------------------

E. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act requires agencies to prepare 
a comprehensive written statement for any proposed or final rule that 
may result in the expenditure by State, local, and tribal governments, 
in the aggregate, or by the private sector, of $156 million (which is 
the value equivalent of $100 million in 1995, adjusted for inflation to 
2015 levels) or more in any one year. Because this proposed rule would 
not result in such an expenditure, a written statement is not required. 
However, the Agency does discuss the costs and benefits of this

[[Page 47783]]

proposed rule elsewhere in this preamble.

F. Paperwork Reduction Act

    This proposed rule would amend two OMB-approved information 
collections titled ``Commercial Motor Vehicle Marking Requirements,'' 
OMB No. 2126-0054, and ``Lease and Interchange of Vehicles,'' OMB No. 
2126-0056, under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520). As defined in 5 CFR 1320.3(c), ``collection of information'' 
includes reporting, recordkeeping, monitoring, posting, labeling, and 
other, similar actions. The title and description of the information 
collections, a description of those who must collect the information, 
and an estimate of the total annual burden follow. The estimate covers 
the time for reviewing instructions, searching existing sources of 
data, gathering and maintaining the data needed, and completing and 
reviewing the collection.
    The Agency's CMV marking regulations require freight-carrying 
commercial motor carriers, passenger-carrying commercial motor 
carriers, and intermodal equipment providers to display the USDOT 
number and the legal name or a single trade name of the carrier or 
intermodal equipment provider on their vehicles. The USDOT number is 
used to identify all motor carriers in FMCSA's registration and 
information systems. It is also used by States as the key identifier in 
the Performance and Registration Information Systems Management (PRISM) 
system, a cooperative Federal/State program that makes motor carrier 
safety a requirement for obtaining and maintaining CMV registration and 
privileges. Vehicle marking requirements are intended to ensure that 
FMCSA, the National Transportation Safety Board (NTSB), and State 
safety officials are able to identify motor carriers and correctly 
assign responsibility for regulatory violations during inspections, 
investigations, compliance reviews, and crash studies. These marking 
requirements also provide the public with beneficial information that 
could assist in identifying carriers for the purposes of commerce, 
complaints, or emergency notification.
    The proposed rule would eliminate the existing requirement under 49 
CFR 390.303(f) for the temporary marking of leased commercial passenger 
vehicles. The proposed rule would therefore amend the OMB-approved 
information collection titled ``Commercial Motor Vehicle Marking 
Requirements,'' OMB No. 2126-0054. In the currently approved 
information collection, the temporary marking of leased commercial 
passenger vehicles was assumed to have de minimis time burden, and 
therefore no separate time burden was estimated for that element of the 
passenger-carrying commercial motor carrier marking requirements. 
Because of this, in the proposed revision to this information 
collection, there is no change in time burden due to program change, 
and the estimated changes in time burden from the currently approved 
information collection are due to adjustments related to factors such 
as revised estimates of the population of passenger-carrying motor 
carriers and industry growth rate. There is a small reduction in the 
annual cost burden, however, related to the elimination of the cost of 
materials (paper and adhesive tape) estimated to be used for the 
temporary vehicle markings that are proposed to be eliminated.
    Title: Commercial Motor Vehicle Marking Requirements.
    OMB control number: 2126-0054.
    Summary of the collection of information: Under the information 
collection, freight-carrying commercial motor carriers, passenger-
carrying commercial motor carriers, and intermodal equipment providers 
mark their vehicles to display the USDOT number and the legal name or a 
single trade name of the carrier or intermodal equipment provider. This 
vehicle marking occurs when a new vehicle is purchased, when a used 
vehicle is purchased and requires re-marking, and when a vehicle is 
retained by the owner but the existing label reaches the end of its 
useful life.
    Need for information: Vehicle marking requirements are needed to 
ensure that FMCSA, the NTSB, and State safety officials are able to 
identify motor carriers and correctly assign responsibility for 
regulatory violations during inspections, investigations, compliance 
reviews, and crash studies. These marking requirements also provide the 
public with beneficial information that could assist in identifying 
carriers for the purposes of commerce, complaints, or emergency 
notification.
    Proposed use of information: The USDOT number is used to identify 
all motor carriers in FMCSA's registration and information systems, is 
used as the key identifier in the PRISM system, and is used by the 
public with beneficial information that could also assist in 
identifying carriers for the purposes of commerce, complaints, or 
emergency notification.
    Description of the respondents: Freight-carrying commercial motor 
carriers, passenger-carrying commercial motor carriers, and intermodal 
equipment providers.
    Number of respondents:

IC-1 (freight carriers) number of respondents: 204,390
IC-2 (passenger carriers) number of respondents: 5,007
IC-3 (intermodal equipment providers) number of respondents: 11
Total number of respondents: 209,408

    Frequency of response:

IC-1 (freight carriers) frequency of response: 7.9 responses per year, 
per respondent
IC-2 (passenger carriers) frequency of response: 20.4 responses per 
year, per respondent
IC-3 (intermodal equipment providers) frequency of response: 1,910 
responses per year, per respondent
Overall average frequency of response: 8.3 response per year, per 
respondent

    Burden of response:

IC-1 (freight carriers) burden of response: 0.43 hours
IC-2 (passenger carriers) burden of response: 0.43 hours
IC-3 (intermodal equipment providers) burden of response: 0.43 hours
Overall average burden of response: 0.43 hours

    Estimate of Total Annual Burden:

IC-1 (freight carriers) burden: 699,902 hours
IC-2 (passenger carriers) burden: 44,300 hours
IC-3 (intermodal equipment providers) burden: 9,108 hours

Total annual burden: 753,310 hours

    The Agency's lease and interchange of vehicles regulations ensure 
that truck and bus carriers are identified (and in some cases 
protected) when they agree to lease their equipment and drivers to 
other carriers. These regulations also ensure that the government and 
members of the public can determine who is responsible for a CMV. Prior 
to these regulations, some equipment was leased without written 
agreements, leading to disputes and confusion over which party to the 
lease was responsible for charges and actions and, at times, who was 
legally responsible for the vehicle. These recordkeeping requirements 
enable the general public and investigators to identify the passenger 
carrier responsible for safety, and ensure that FMCSA, our State 
partners, and the NTSB are better able to identify the responsible 
motor carrier and therefore correctly assign regulatory violations to 
the appropriate carrier during inspections, investigations, compliance 
reviews, and crash studies.

[[Page 47784]]

    The proposed rule would reduce the scope of the lease and 
interchange requirements for motor carriers of passengers. Furthermore, 
those passenger carriers and passenger-carrying CMV trips for which the 
proposed rule would remain applicable would be subject to lease and 
interchange requirements that are reduced from the current 
requirements. The applicability of the existing lease and interchange 
requirements for motor carriers of passengers under 49 CFR 390.301 
would be revised, resulting in a substantial reduction of approximately 
75% in the number of passenger carriers and passenger-carrying CMV 
trips that would be subject to the lease and interchange requirement 
for motor carriers of passengers. For those motor carriers of 
passengers that would remain subject to the lease and interchange 
requirements under the proposed rule, the existing requirements under 
49 CFR 390.303(e) for lease receipt copies would be eliminated, and the 
existing requirements under 49 CFR 390.305 for charter party 
notification would also be eliminated.
    The proposed rule would therefore amend the OMB-approved 
information collection titled ``Lease and Interchange of Vehicles,'' 
OMB No. 2126-0056. In the proposed revision to this information 
collection, there is substantial reduction in time burden due to 
program change from the currently approved information collection as a 
result of the proposed rule.
    Title: Lease and Interchange of Vehicles
    OMB control number: 2126-0056.
    Summary of the collection of information: Under the information 
collection, freight-carrying commercial motor carriers and passenger-
carrying commercial motor carriers negotiate leases, prepare and sign 
lease documents, and produce copies of lease documents.
    Need for information: The Agency's lease and interchange of 
vehicles regulations ensure that truck and bus carriers are identified 
(and in some cases protected) when they agree to lease their equipment 
and drivers to other carriers. These regulations also ensure that the 
government and members of the public can determine who is responsible 
for a CMV. These recordkeeping requirements enable the general public 
and investigators to identify the passenger carrier responsible for 
safety.
    Proposed use of information: The government generally collects 
little information with this ICR. The leases and other agreements are 
developed and held by the lessor (e.g., those granting use of 
equipment) and lessee (e.g., party acquiring equipment). They are used 
to assign duties and responsibilities. The information may also be used 
by law enforcement to determine legal responsibility in the event that 
a leased vehicle is in violation of the regulations or is involved in a 
crash.
    Description of the respondents: Freight-carrying commercial motor 
carriers, and passenger-carrying commercial motor carriers.
    Number of respondents:

IC-1 (property-carrying CMVs) number of respondents: 35,902
IC-2 (passenger-carrying CMVs) number of respondents: 3,987
Total number of respondents: 39,889

    Frequency of response:

IC-1 (property-carrying CMVs) frequency of response: 19.9 responses per 
year, per respondent
IC-2 (passenger-carrying CMVs) frequency of response: 152.4 responses 
per year, per respondent
Overall average frequency of response: 33.2 response per year, per 
respondent

    Burden of response:

IC-1 (property-carrying CMVs) burden of response: 0.11 hours
IC-2 (passenger-carrying CMVs) burden of response: 0.11 hours
Overall average burden of response: 0.11 hours

    Estimate of total annual burden:

IC-1 (property-carrying CMVs) burden: 77,554 hours
IC-2 (passenger-carrying CMVs) burden: 64,802 hours
Total annual burden: 142,356 hours

    As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507(d)), FMCSA will submit a copy of this proposed rule to OMB for its 
review of the collection of information.
    FMCSA asks for public comment on the proposed collection of 
information to help us determine how useful the information is; whether 
it can help the Agency perform our functions better; whether it is 
readily available elsewhere; how accurate our estimate of the burden of 
collection is; how valid our methods for determining burden are; how 
FMCSA can improve the quality, usefulness, and clarity of the 
information; and how FMCSA can minimize the burden of collection.

G. E.O. 13132 (Federalism)

    A rule has implications for Federalism under Section 1(a) of E.O. 
13132 if it has ``substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.'' FMCSA determined that this proposal would not have 
substantial direct costs on or for States, nor would it limit the 
policymaking discretion of States. Nothing in this document preempts 
any State law or regulation. Therefore, this rule does not have 
sufficient Federalism implications to warrant the preparation of a 
Federalism Impact Statement.

H. E.O. 12988 (Civil Justice Reform)

    This proposed rule meets applicable standards in sections 3(a) and 
3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

I. E.O. 13045 (Protection of Children)

    Executive Order 13045, Protection of Children from Environmental 
Health Risks and Safety Risks (62 FR 19885, April 23, 1997), requires 
agencies issuing ``economically significant'' rules, if the regulation 
also concerns an environmental health or safety risk that an agency has 
reason to believe may disproportionately affect children, to include an 
evaluation of the regulation's environmental health and safety effects 
on children. The Agency determined this proposed rule is not 
economically significant. Therefore, no analysis of the impacts on 
children is required. In any event, the Agency does not anticipate that 
this regulatory action could in any respect present an environmental or 
safety risk that could disproportionately affect children.

J. E.O. 12630 (Taking of Private Property)

    FMCSA reviewed this proposed rule in accordance with E.O. 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights, and has determined it would not effect a taking of 
private property or otherwise have taking implications.

K. Privacy

    Section 522 of title I of division H of the Consolidated 
Appropriations Act, 2005, enacted December 8, 2004 (Pub. L. 108-447, 
118 Stat. 2809, 3268, 5 U.S.C. 552a note), requires the Agency to 
conduct a Privacy Impact Assessment (PIA) of a regulation that will 
affect the privacy of individuals. This proposed rule does not require 
the collection of any personally identifiable information.
    The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies 
and any non-Federal agency that receives records contained in a system 
of records from a Federal agency for use in a matching program. FMCSA 
has

[[Page 47785]]

determined that this rule would not result in a new or revised Privacy 
Act System of Records for FMCSA.
    The E-Government Act of 2002, Public Law 107-347, sec. 208, 116 
Stat. 2899, 2921 (December 17, 2002), requires Federal agencies to 
conduct a PIA for new or substantially changed technology that 
collects, maintains, or disseminates information in an identifiable 
form. No new or substantially changed technology would collect, 
maintain, or disseminate information as a result of this rule. 
Accordingly, FMCSA has not conducted a privacy impact assessment.

L. E.O. 12372 (Intergovernmental Review)

    The regulations implementing E.O. 12372 regarding intergovernmental 
consultation on Federal programs and activities do not apply to this 
program.

M. E.O. 13211 (Energy Supply, Distribution, or Use)

    FMCSA has analyzed this proposed rule under E.O. 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. The Agency has determined that it is not a 
``significant energy action'' under that order because it is not a 
``significant regulatory action'' likely to have a significant adverse 
effect on the supply, distribution, or use of energy. Therefore, it 
does not require a Statement of Energy Effects under E.O. 13211.

N. E.O. 13783 (Promoting Energy Independence and Economic Growth)

    Executive Order 13783 directs executive departments and agencies to 
review existing regulations that potentially burden the development or 
use of domestically produced energy resources, and to appropriately 
suspend, revise, or rescind those that unduly burden the development of 
domestic energy resources.\41\ In accordance with E.O. 13783, the DOT 
prepared and submitted a report to the Director of OMB providing 
specific recommendations that, to the extent permitted by law, could 
alleviate or eliminate aspects of agency action that burden domestic 
energy production. The DOT has not identified this proposed rule as 
potentially alleviating unnecessary burdens on domestic energy 
production under E.O. 13783.
---------------------------------------------------------------------------

    \41\ Exec. Order No. 13783, 82 FR 16093 (March 31, 2017).
---------------------------------------------------------------------------

O. E.O. 13175 (Indian Tribal Governments)

    This rule does not have tribal implications under E.O. 13175, 
Consultation and Coordination with Indian Tribal Governments, because 
it does 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.

P. National Technology Transfer and Advancement Act (Technical 
Standards)

    The National Technology Transfer and Advancement Act (NTTAA) (15 
U.S.C. 272 note) directs agencies to use voluntary consensus standards 
in their regulatory activities unless the agency provides Congress, 
through OMB, with an explanation of why using these standards would be 
inconsistent with applicable law or otherwise impractical. Voluntary 
consensus standards (e.g., specifications of materials, performance, 
design, or operation; test methods; sampling procedures; and related 
management systems practices) are standards developed or adopted by 
voluntary consensus standards bodies. This rule does not use technical 
standards. Therefore, FMCSA did not consider the use of voluntary 
consensus standards.

Q. Environment (NEPA and CAA)

    FMCSA analyzed this NPRM for the purpose of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
determined this action is categorically excluded from further analysis 
and documentation in an environmental assessment or environmental 
impact statement under FMCSA Order 5610.1 (69 FR 9680, March 1, 2004), 
Appendix 2, paragraphs (6)(y)(2) and (6)(y)(7). The Categorical 
Exclusion (CE) in paragraph (6)(y)(2) covers regulations implementing 
motor carrier identification and registration reports. The Categorical 
Exclusion (CE) in paragraph (6)(y)(7) covers regulations implementing 
prohibitions on motor carriers, agents, officers, representatives, and 
employees from making fraudulent or intentionally false statements on 
any application, certificate, report, or record required by FMCSA. The 
proposed requirements in this rule are covered by these CEs, and the 
proposed action does not have the potential to significantly affect the 
quality of the environment. The CE determination is available for 
inspection or copying in the regulations.gov website listed under 
ADDRESSES.
    FMCSA also analyzed this rule under section 176(c) of the Clean Air 
Act, as amended (CAA) (42 U.S.C. 7401 et seq.), and implementing 
regulations promulgated by the Environmental Protection Agency. 
Approval of this action is exempt from the CAA's general conformity 
requirement since it does not affect direct or indirect emissions of 
criteria pollutants.

List of Subjects in 49 CFR Part 390

    Highway safety, Intermodal transportation, Motor carriers, Motor 
vehicle safety, Reporting and recordkeeping requirements.

    In consideration of the foregoing, FMCSA proposes to amend 49 CFR 
chapter III, subchapter B, part 390 to read as follows:

PART 390--FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL

0
1. The authority citation for part 390 continues to read as follows:

    Authority:  49 U.S.C. 504, 508, 31132, 31133, 31134, 31136, 
31137, 31144, 31149, 31151, 31502; sec. 114, Pub. L. 103-311, 108 
Stat. 1673, 1677; sec. 212 and 217, Pub. L. 106-159, 113 Stat. 1748, 
1766, 1767; sec. 229, Pub. L. 106-159 (as added and transferred by 
sec. 4115 and amended by secs. 4130-4132, Pub. L. 109-59, 119 Stat. 
1144, 1726, 1743; sec. 4136, Pub. L. 109-59, 119 Stat. 1144, 1745; 
secs. 32101(d) and 32934, Pub. L. 112-141, 126 Stat. 405, 778, 830; 
sec. 2, Pub. L. 113-125, 128 Stat. 1388; secs. 5403, 5518, and 5524, 
Pub. L. 114-94, 129 Stat. 1312, 1548, 1558, 1560; sec. 2, Pub. L. 
115-105, 131 Stat. 2263; and 49 CFR 1.81, 1.81a, 1.87.

0
2. Amend Sec.  390.5 as follows:
0
a. Lift the suspension of the section;
0
b. Revise the definition of ``Lease,'' ``Lessee,'' and ``Lessor'' in 
alphabetical order'';
0
c. Suspend Sec.  390.5 indefinitely.
    The revised text reads as follows:

Sec.  390.5   Definitions.

* * * * *
    Lease, as used in subpart G of this part, means a contract or 
agreement in which a motor carrier of passengers grants the use of a 
passenger-carrying commercial motor vehicle to another motor carrier, 
with or without a driver, for a specified period for the transportation 
of passengers, whether or not compensation for such use is specified or 
required, when one of the motor carriers of passengers is not 
authorized to operate in interstate commerce pursuant to 49 U.S.C. 
13901-13902. The term lease includes an interchange, as defined in this 
section, or other agreement granting the use of

[[Page 47786]]

a passenger-carrying commercial motor vehicle for a specified period, 
with or without a driver, whether or not compensation for such use is 
specified or required. For a definition of lease in the context of 
property-carrying vehicles, see Sec.  376.2 of this subchapter.
    Lessee, as used in subpart G of this part, means the motor carrier 
obtaining the use of a passenger-carrying commercial motor vehicle 
through a lease as defined in this section, with or without the driver, 
from another motor carrier. The term lessee includes a motor carrier 
obtaining the use of a passenger-carrying commercial motor vehicle from 
another motor carrier under an interchange or other agreement, with or 
without a driver, whether or not compensation for such use is 
specified. For a definition of lessee in the context of property-
carrying vehicles, see Sec.  376.2 of this subchapter.
    Lessor, as used in subpart G of this part, means the motor carrier 
granting the use of a passenger-carrying commercial motor vehicle 
through a lease as defined in this section, with or without a driver, 
to another motor carrier. The term lessor includes a motor carrier 
granting the use of a passenger-carrying commercial motor vehicle to 
another motor carrier under an interchange or other agreement, with or 
without a driver, whether or not compensation for such use is 
specified. For a definition of lessor in the context of property-
carrying vehicles, see Sec.  376.2 of this subchapter.
* * * * *
0
3. Amend Sec.  390.5T by revising the definitions of ``Lease,'' 
``Lessee,'' and ``Lessor'' in alphabetical order to read as follows:

Sec.  390.5T   Definitions.

* * * * *
    Lease, as used in subpart G of this part, means a contract or 
agreement in which a motor carrier of passengers grants the use of a 
passenger-carrying commercial motor vehicle to another motor carrier, 
with or without a driver, for a specified period for the transportation 
of passengers, whether or not compensation for such use is specified or 
required, when one of the motor carriers of passengers is not 
authorized to operate in interstate commerce pursuant to 49 U.S.C. 
13901-13902. The term lease includes an interchange, as defined in this 
section, or other agreement granting the use of a passenger-carrying 
commercial motor vehicle for a specified period, with or without a 
driver, whether or not compensation for such use is specified or 
required. For a definition of lease in the context of property-carrying 
vehicles, see Sec.  376.2 of this subchapter.
    Lessee, as used in subpart G of this part, means the motor carrier 
obtaining the use of a passenger-carrying commercial motor vehicle 
through a lease as defined in this section, with or without the driver, 
from another motor carrier. The term lessee includes a motor carrier 
obtaining the use of a passenger-carrying commercial motor vehicle from 
another motor carrier under an interchange or other agreement, with or 
without a driver, whether or not compensation for such use is 
specified. For a definition of lessee in the context of property-
carrying vehicles, see Sec.  376.2 of this subchapter.
    Lessor, as used in subpart G of this part, means the motor carrier 
granting the use of a passenger-carrying commercial motor vehicle 
through a lease as defined in this section, with or without a driver, 
to another motor carrier. The term lessor includes a motor carrier 
granting the use of a passenger-carrying commercial motor vehicle to 
another motor carrier under an interchange or other agreement, with or 
without a driver, whether or not compensation for such use is 
specified. For a definition of lessor in the context of property-
carrying vehicles, see Sec.  376.2 of this subchapter.
* * * * *
0
4. Amend Sec.  390.21 as follows:
0
a. Lift the suspension of the section;
0
b. Revise paragraph (e);
0
c. Remove paragraph (f);
0
d. Redesignate paragraphs (g) and (h) as paragraphs (f) and (g), 
respectively;
0
e. Suspend Sec.  390.21 indefinitely.
    The revised text reads as follows:

Sec.  390.21  Marking of self-propelled CMVs and intermodal equipment.

* * * * *
    (e) Rented CMVs and leased passenger-carrying CMVs. A motor carrier 
operating a self-propelled CMV under a rental agreement or a passenger-
carrying CMV under a lease, when the rental agreement or lease has a 
term not in excess of 30 calendar days, meets the requirements of this 
section if:
    (1) The CMV is marked in accordance with the provisions of 
paragraphs (b) through (d) of this section; or
    (2) Except as provided in paragraph (e)(2)(v), the CMV is marked as 
set forth in paragraph (e)(2)(i) through (iv) of this section:
    (i) The legal name or a single trade name of the lessor is 
displayed in accordance with paragraphs (c) and (d) of this section.
    (ii) The lessor's identification number preceded by the letters 
``USDOT'' is displayed in accordance with paragraphs (c) and (d) of 
this section; and
    (iii) The rental agreement or lease as applicable entered into by 
the lessor and the renting motor carrier or lessee conspicuously 
contains the following information:
    (A) The name and complete physical address of the principal place 
of business of the renting motor carrier or lessee;
    (B) The identification number issued to the renting motor carrier 
or lessee by FMCSA, preceded by the letters ``USDOT,'' if the motor 
carrier has been issued such a number. In lieu of the identification 
number required in this paragraph, the following information may be 
shown in a rental agreement:
    (1) Whether the motor carrier is engaged in ``interstate'' or 
``intrastate'' commerce; and
    (2) Whether the renting motor carrier is transporting hazardous 
materials in the rented CMV;
    (C) The sentence: ``This lessor cooperates with all Federal, State, 
and local law enforcement officials nationwide to provide the identity 
of customers who operate this rental CMV''; and
    (iv) The rental agreement or lease as applicable entered into by 
the lessor and the renting motor carrier or lessee is carried on the 
rental CMV or leased passenger-carrying CMV during the full term of the 
rental agreement or lease. See the property-carrying leasing 
regulations at 49 CFR part 376 and the passenger-carrying leasing 
regulations at subpart G of this part for information that should be 
included in all leasing documents.
    (v) Exception. The passenger-carrying CMV operating under the 48-
hour emergency exception pursuant to Sec.  390.403(a)(2) of this part 
does not need to comply with paragraphs (iii) and (iv) of this section, 
provided the lessor and lessee comply with the requirements of Sec.  
390.403(a)(2).
* * * * *
0
5. Amend Sec.  390.21T by
0
a. Revising paragraph (e);
0
b. Removing paragraph (f);
0
c. Redesignating paragraphs (g) and (h) as paragraphs (f) and (g), 
respectively.
    The revision to read as follows:

Sec.  390.21T   Marking of self-propelled CMVs and intermodal 
equipment.

* * * * *
    (e) Rented CMVs and leased passenger-carrying CMVs. A motor carrier 
operating a self-propelled CMV under a rental agreement or a passenger-
carrying CMV under a lease, when the

[[Page 47787]]

rental agreement or lease has a term not in excess of 30 calendar days, 
meets the requirements of this section if:
    (1) The CMV is marked in accordance with the provisions of 
paragraphs (b) through (d) of this section; or
    (2) Except as provided in paragraph (e)(2)(v), the CMV is marked as 
set forth in paragraph (e)(2)(i) through (iv) of this section:
    (i) The legal name or a single trade name of the lessor is 
displayed in accordance with paragraphs (c) and (d) of this section.
    (ii) The lessor's identification number preceded by the letters 
``USDOT'' is displayed in accordance with paragraphs (c) and (d) of 
this section; and
    (iii) The rental agreement or lease as applicable entered into by 
the lessor and the renting motor carrier or lessee conspicuously 
contains the following information:
    (A) The name and complete physical address of the principal place 
of business of the renting motor carrier or lessee;
    (B) The identification number issued to the renting motor carrier 
or lessee by FMCSA, preceded by the letters ``USDOT,'' if the motor 
carrier has been issued such a number. In lieu of the identification 
number required in this paragraph, the following information may be 
shown in a rental agreement:
    (1) Whether the motor carrier is engaged in ``interstate'' or 
``intrastate'' commerce; and
    (2) Whether the renting motor carrier or lessee is transporting 
hazardous materials in the rented or leased CMV;
    (C) The sentence: ``This lessor cooperates with all Federal, State, 
and local law enforcement officials nationwide to provide the identity 
of customers who operate this rental or leased CMV''; and
    (iv) The rental agreement or lease as applicable entered into by 
the lessor and the renting motor carrier or lessee is carried on the 
rental CMV or leased passenger-carrying CMV during the full term of the 
rental agreement or lease. See the property-carrying leasing 
regulations at 49 CFR part 376 and the passenger-carrying leasing 
regulations at subpart G of this part for information that should be 
included in all leasing documents.
    (v) Exception. The passenger-carrying CMV operating under the 48-
hour emergency exception pursuant to Sec.  390.403(a)(2) of this part 
does not need to comply with paragraphs (iii) and (iv) of this section, 
provided the lessor and lessee comply with the requirements of Sec.  
390.403(a)(2).
* * * * *

Subpart F--[Removed and Reserved]

0
6. Remove and reserve subpart F of part 390., consisting of Sec. Sec.  
390.301 through 390.305, to read as follows:
0
7. Add subpart G, consisting of Sec. Sec.  390.401 and 390.403, to read 
as follows:

Subpart G--Lease and Interchange of Passenger-Carrying Commercial Motor 
Vehicles
Sec.
390.401 Applicability.
390.403 Lease and interchange requirements.

Subpart G--Lease and Interchange of Passenger-Carrying Commercial 
Motor Vehicles

Sec.  390.401 Applicability.
    (a) General. Except as provided in paragraphs (b)(1) and (2) of 
this section, this subpart applies to the following actions, 
irrespective of duration, or the presence or absence of compensation, 
by motor carriers operating commercial motor vehicles to transport 
passengers:
    (1) The lease of passenger-carrying commercial motor vehicles; and
    (2) The interchange of passenger-carrying commercial motor vehicles 
between motor carriers.
    (b) Exceptions--(1) Contracts and agreements between motor carriers 
of passengers with active passenger carrier operating authority 
registrations. This subpart does not apply to contracts and agreements 
between motor carriers of passengers that have active passenger carrier 
operating authority registrations with the Federal Motor Carrier Safety 
Administration when one such motor carrier acquires transportation 
service(s) from another such motor carrier(s).
    (2) Financial leases. This subpart does not apply to a contract 
(however designated, e.g., lease, closed-end lease, hire purchase, 
lease purchase, purchase agreement, installment plan, etc.) between a 
motor carrier and a financial organization or a manufacturer or dealer 
of passenger-carrying commercial motor vehicles allowing the motor 
carrier to use the passenger-carrying commercial motor vehicle.
    (c) Penalties. If the use of a passenger-carrying commercial motor 
vehicle is conferred on one motor carrier subject to this subpart by 
another such motor carrier without a lease or interchange agreement, or 
pursuant to a lease or interchange agreement that fails to meet all 
applicable requirements of subpart G, both motor carriers shall be 
subject to a civil penalty.

Sec.  390.403  Lease and interchange requirements.

    Except as provided in Sec.  390.401(b) of this section, a motor 
carrier may transport passengers in a leased or interchanged commercial 
motor vehicle only under the following conditions:
    (a) In general--(1) Lease or agreement required. There shall be in 
effect either:
    (i) A lease granting the use of the passenger-carrying commercial 
motor vehicle and meeting the conditions of paragraphs (b) and (c) of 
this section. The provisions of the lease shall be adhered to and 
performed by the lessee; or
    (ii) An agreement meeting the conditions of paragraphs (b) and (c) 
of this section and governing the interchange of passenger-carrying 
commercial motor vehicles between motor carriers of passengers 
conducting service on a route or series of routes. The provisions of 
the interchange agreement shall be adhered to and performed by the 
lessee.
    (2) Exception. When an event occurs (e.g., a crash, the vehicle is 
disabled) that requires a motor carrier of passengers immediately to 
obtain a replacement vehicle from another motor carrier of passengers, 
the two carriers may postpone the writing of the lease or written 
agreement for the replacement vehicle for up to 48 hours after the time 
the lessee takes exclusive possession and control of the replacement 
vehicle. However, during that 48-hour (or shorter) period, the driver 
of the vehicle must carry, and upon demand of an enforcement official 
produce, a document signed and dated by the lessee's driver or 
available company official stating: ``[Carrier A, USDOT number, 
telephone number] has leased this vehicle to [Carrier B, USDOT number, 
telephone number] pursuant to 49 CFR 390.403(a)(2).''
    (b) Contents of the lease. The lease or interchange agreement 
required by paragraph (a) of this section shall contain:
    (1) Vehicle identification information. The name of the vehicle 
manufacturer, the year of manufacture, and at least the last 6 digits 
of the Vehicle Identification Number (VIN) of each passenger-carrying 
commercial motor vehicle transferred between motor carriers pursuant to 
the lease or interchange agreement.
    (2) Parties. The legal name, USDOT number, and telephone number of 
the motor carrier providing passenger transportation in a commercial 
motor vehicle (lessee) and the legal name, USDOT number, and telephone 
number of the motor carrier providing the equipment (lessor), and 
signatures of

[[Page 47788]]

both parties or their authorized representatives.
    (3) Specific duration. The time and date when, and the location 
where, the lease or interchange agreement begins and ends.
    (4) Exclusive possession and responsibilities. (i) A clear 
statement that the motor carrier obtaining the passenger-carrying 
commercial motor vehicle (the lessee) has exclusive possession, 
control, and use of the passenger-carrying commercial motor vehicle for 
the duration of the agreement, and assumes complete responsibility for 
operation of the vehicle and compliance with all applicable Federal 
regulations for the duration of the agreement.
    (ii) In the event of a sublease between motor carriers, all of the 
requirements of this section shall apply to a sublease.
    (c) Copies of the lease. A copy shall be on the passenger-carrying 
commercial motor vehicle during the period of the lease or interchange 
agreement, and both the lessee and lessor shall retain a copy of the 
lease or interchange agreement for 1 year after the expiration date.

    Issued under the authority delegated in 49 CFR 1.87 on: 
September 11, 2018.
Raymond P. Martinez,
Administrator.
[FR Doc. 2018-20162 Filed 9-19-18; 8:45 am]
 BILLING CODE 4910-EX-P