Document ID: FRA-2008-0136-0008
Agency: fra
Document Type: Rule
Title: Monetary Threshold for Reporting Rail Equipment Accidents/Incidents for Calendar Year 2016,
Posted Date: 2015-12-28T05:00Z

[Federal Register Volume 80, Number 248 (Monday, December 28, 2015)]
[Rules and Regulations]
[Pages 80683-80686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32545]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 225

[FRA-2008-0136, Notice No. 8]
RIN 2130-ZA13

Monetary Threshold for Reporting Rail Equipment Accidents/
Incidents for Calendar Year 2016

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

ACTION: Final rule.

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SUMMARY: This rule maintains the rail equipment accident/incident 
monetary reporting threshold at $10,500 for railroad accidents/
incidents involving property damage that occur during calendar year 
(CY) 2016 that FRA's accident/incident reporting regulations require to 
be reported to the agency. FRA is maintaining the reporting threshold 
at the same level it did in CY 2015, and CY 2014, because, in part, the 
wage and equipment data for the second-quarter of 2015 (i.e., the data 
used to calculate the threshold) changed only slightly (about 1 
percent) from second-quarter 2014 values. In addition, FRA is 
maintaining the monetary threshold for CY 2016 at the CY 2015 level 
while it reexamines the method for calculating the monetary threshold.

DATES: This final rule is effective January 1, 2016.

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

SUPPLEMENTARY INFORMATION: 

Background

    A ``rail equipment accident/incident'' is a collision, derailment, 
fire, explosion, act of God, or other event involving the operation of 
railroad on-track equipment (standing or moving) that results in 
damages to railroad on-track equipment, signals, tracks, track 
structures, or roadbed, including labor costs and the costs for 
acquiring new equipment and material, greater than the reporting 
threshold for the year in which the event occurs. 49 CFR 225.19(c). 
Each rail equipment accident/incident must be reported to FRA using the 
Rail Equipment Accident/Incident Report (Form FRA F 6180.54). See 49 
CFR 225.19(b), (c) and 225.21(a). Paragraphs (c) and (e) of 49 CFR 
225.19 further provide that FRA will adjust the dollar figure that 
constitutes the reporting threshold for rail equipment accidents/
incidents, if necessary, every year under the procedures in appendix B 
to 49 CFR part 225 (Appendix B) to reflect any cost increases or 
decreases.
    In this rule, FRA is keeping the monetary threshold for CY 2016, at 
$10,500, the same as the monetary threshold for CY 2014 and CY 2015. 
FRA is maintaining the reporting threshold at the same level as CY 2015 
because, in part, the wage and equipment data for the second-quarter of 
2015 (i.e., the data used to calculate the threshold) changed only 
slightly (about 1 percent) from second-quarter 2014 values. FRA 
believes that the wage and equipment data support keeping the reporting 
threshold the same for CY 2016. Also, FRA anticipates making changes to 
the methodology for calculating the reporting threshold in the coming 
year.
    In addition to periodically reviewing and adjusting the annual 
threshold under Appendix B, FRA periodically amends its method for 
calculating the threshold. In 49 U.S.C. 20901(b), Congress requires 
that FRA base the threshold on publicly available information obtained 
from the Bureau of Labor Statistics (BLS), other objective government 
source, or be subject to notice and comment. In 1996, FRA adopted a new 
method for calculating the monetary reporting threshold for accidents/
incidents. See 61 FR 60632, Nov. 29, 1996. In 2005, FRA again amended 
its method for calculating the reporting threshold because the BLS 
ceased collecting and publishing the railroad wage data FRA used in the 
calculation. Consequently, FRA substituted railroad employee wage data 
the Surface Transportation Board (STB) collects for the data BLS ceased 
to collect. See 70 FR 75414, Dec. 20, 2005. In 2016, FRA intends to 
evaluate and amend, if appropriate, its method for calculating the 
monetary threshold for accident/incident reporting and, as a result, 
the formula utilized to calculate the threshold may change. FRA intends 
to reexamine its method for calculating the reporting threshold because 
new methodologies for calculating the threshold are available. FRA 
believes updating its methodology to include these advances will ensure 
the reporting threshold reflects changes in equipment and labor costs 
as accurately as possible.

Maintaining Current Reporting Threshold

    Approximately one year has passed since FRA reviewed the rail 
equipment accident/incident reporting threshold. See 79 FR 77397, Dec. 
24, 2014. Consequently, FRA reviewed the threshold as 49 CFR 225.19(c) 
requires, and found that costs for labor remained the same and costs 
for equipment increased only slightly relative to approximately one 
year ago.
    In reviewing the threshold, FRA gathered wage and equipment data 
from the STB and BLS respectively. Under the procedure in Appendix B, 
FRA averaged the wages for Group No. 300 (Maintenance of Way and 
Structures) and Group No. 400 (Maintenance of Equipment and Stores 
employees). FRA averaged the monthly equipment indices from the 
Producer Price Index (PPI) to produce a quarterly average. Consistent 
with Appendix B, FRA utilized data from the second-quarter of 2014 to 
the second-quarter of 2015.
    To determine the changes in wages and prices over this time period, 
FRA calculated the quarter-to-quarter changes (i.e., changes between 
each consecutive quarter from the second-quarter of 2014 to the second-
quarter of 2015). In addition, FRA calculated the quarter-over-quarter 
change (i.e., the change using only the beginning and ending quarters 
of the selected time period). The results are illustrated in the table 
below.
    Considering the wage input to the threshold first, the average 
quarter-to-quarter change in wages is 0 percent, although individual 
quarter-to-quarter changes ranged from negative 3 percent to 5 percent. 
The quarter-over-quarter change in wages is negative 0.1 percent 
(rounded to 0 percent in the table). Based on no overall change in 
wages, the reporting threshold would not change for 2016.
    Examining the change in equipment PPI over the same time period 
shows an average quarter-to-quarter increase of 0.5 percent. The 
quarter-over-quarter change is about 2 percent. The 2 percent change, 
when applied to the current $10,500 reporting threshold, would indicate 
an increase of about $200. However, the formula for calculating the

[[Page 80684]]

reporting threshold weights the wage input to the formula by 40 percent 
and the equipment input by 60 percent. The weights in the formula cause 
the impact of the equipment index to be reduced to 1.2 percent, or 
about one-half the 2 percent quarter-to-quarter increase. The 1.2 
percent change applied to the current threshold would yield a new 
reporting threshold of $10,600, a relatively small change. Considering 
that such a change would only affect accidents/incidents with damages 
near this reporting threshold amount, FRA expects the number of 
affected accidents/incidents to be small. Only accidents/incidents that 
occurred in 2015 which were slightly below the current $10,500 
reporting threshold may become reportable in 2016.\1\ Given FRA's 
intent to reexamine its method for calculating the reporting threshold 
in 2016, the small changes in wages and equipment during the current 
analysis period, and the and the resulting minimal effect on the 
reporting threshold for CY 2016, FRA is maintaining the current 
reporting threshold of $10,500 for reporting rail equipment accidents/
incidents that occur in CY 2016.
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    \1\ For example, if an accident/incident occurred in 2015 that 
resulted in damages of $10,450, it would not be reportable. Given a 
potential increase in equipment and wages of 1.2 percent (weighted), 
reported damages for that same accident if it occurred in 2016 would 
be $10,575 ($10,450 *1.012 = $10,575). If FRA increased the 
threshold to $10,600 for 2016, that accident/incident would still 
not be reportable. However, if FRA keeps the threshold at $10,500, 
that accident will be reportable in 2016.

                               Table--Small Changes in Wages and Equipment Indices
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                                                                                    Equipment
                    Quarter                           Wage*      Percent change      index*       Percent change
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Q2 2014........................................          $29.65  ..............           196.6  ...............
Q3 2014........................................           28.76              -3           198.0              1
Q4 2014........................................           29.78               0           199.6              1
Q1 2015........................................           30.31               5           200.3              0
Q2 2015........................................           29.60              -2           200.6              0
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Average Change Quarter-to-Quarter..............................               0  ..............              0.5
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Percent Change Quarter-over-Quarter (Q2 2014 to Q2 2015).......               0  ..............              2
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*Source for wage is STB. Source for equipment index is BLS.

Notice and Comment Procedures

    In this rule, FRA is maintaining the current monetary reporting 
threshold for the reasons explained above, and, under the final rule 
published December 20, 2005. See 70 FR 75414. FRA finds this rule 
imposes no additional burden on any person, but rather is intended to 
provide a benefit by permitting the valid comparison of accident data 
over time. Accordingly, finding that notice and comment procedures are 
either impracticable, unnecessary, or contrary to the public interest, 
FRA is proceeding directly to a final rule.
    As appropriate, FRA regularly recalculates the monetary reporting 
threshold using the formula published in Appendix B near the end of 
each calendar year. FRA attempts to use the most recent data available 
to calculate the updated reporting threshold prior to the next calendar 
year. FRA believes that issuing this rule no later than December of 
each calendar year and making the rule effective on January 1, of the 
next year, allows FRA to use the most up-to-date data to calculate the 
reporting threshold and to compile data that accurately reflects rising 
wages and equipment costs. As such, FRA finds that it has good cause to 
make this final rule effective January 1, 2016.

Regulatory Impact

Executive Orders 12866 and 13563 and DOT Regulatory Policies and 
Procedures

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

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612) requires 
a review of proposed and final rules to assess their impact on small 
entities, unless the Secretary certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Pursuant to Section 312 of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Public Law 104-121), FRA issued a final policy 
statement that formally establishes ``small entities'' are railroads 
that meet the line-haulage revenue requirements of a Class III 
railroad. 49 CFR part 209, app. C. For other entities, the same dollar 
limit in revenues governs whether a railroad, contractor, or other 
respondent is a small entity. Id.
    FRA considers about 730 of the approximately 779 railroads in the 
United States small entities. FRA certifies this final rule will have 
no significant economic impact on a substantial number of small 
entities. To the extent that this rule has any impact on small 
entities, the impact will be neutral or insignificant. The frequency of 
rail equipment accidents/incidents and required reporting, is generally 
proportional to the size of the railroad. A railroad that employs 
thousands of employees and operates trains millions of miles is exposed 
to greater risks than one whose operation is substantially smaller. 
Small railroads may go for months at a time without having a reportable 
occurrence of any type, and even longer without having a rail equipment 
accident/incident. For example, current FRA data indicate that 
railroads reported 1,902 rail equipment accidents/incidents in 2010, 
with small railroads reporting 303 of them. Data for 2011 show that 
railroads reported 2,022 rail equipment accidents/incidents, with small 
railroads reporting 307 of them. In 2012, railroads reported 1,760 rail 
equipment accidents/incidents, with small railroads reporting 292 of 
them. In 2013, railroads reported 1,824 rail equipment accidents/
incidents, with small railroads reporting 299 of them. In 2014, 
railroads reported 1,758 rail equipment accidents/incidents, with small 
railroads reporting 247 of them. On average over those five calendar 
years, small railroads reported about 16 percent of the total number of 
rail equipment accidents/incidents,

[[Page 80685]]

ranging from 14 percent to 16 percent annually. FRA notes that this 
data is accurate as of the date of issuance of this final rule, and is 
subject to minor changes due to additional reporting.
    This rulemaking maintains the monetary reporting threshold at the 
CY 2014 and CY 2015 level of $10,500. Increasing the reporting 
threshold would have potentially slightly decreased the reporting 
burden for railroads in 2016. However, only accidents/incidents with 
reportable damages near the reporting threshold will be affected. In 
any case, railroads still maintain records of accountable accidents/
incidents that are below the reporting threshold, thus minimizing any 
potential additional burden to report these accidents to FRA caused by 
keeping the threshold the same in CY 2016. Railroads would potentially 
incur a small reporting burden, but not the burden to gather this 
accident/incident information. Also, overall wage rates have not 
increased, and equipment costs have increased only about 1 percent from 
the second-quarter of CY 2015 compared to the second-quarter of CY 
2014, according to the average PPI Series WPU144 for group 
transportation equipment and item railroad equipment the BLS published 
for April, May, and June 2015. Therefore, the overall effect of this 
rule likely will be neutral or minimal. Any change in recordkeeping 
burden will not be significant and will affect the large railroads more 
than the small entities, due to the higher proportion of reportable 
rail equipment accidents/incidents experienced by large entities.

Paperwork Reduction Act

    There are no new or additional information collection requirements 
associated with this final rule. FRA's collection of accident/incident 
reporting and recordkeeping information is currently approved under OMB 
No. 2130-0500. Therefore, FRA is not required to provide an estimate of 
a public reporting burden in this document.

Federalism Implications

    Executive Order 13132, entitled, ``Federalism,'' signed on August 
4, 1999, requires that each agency

in a separately identified portion of the preamble to the regulation 
as it is to be issued in the Federal Register, provide[] to the 
Director of the Office of Management and Budget a federalism summary 
impact statement, which consists of a description of the extent of 
the agency's prior consultation with State and local officials, a 
summary of the nature of their concerns and the agency's position 
supporting the need to issue the regulation, and a statement of the 
extent to which the concerns of the State and local officials have 
been met.

    FRA analyzed this final rule under the principles and criteria in 
Executive Order 13132. This rule will not have a substantial direct 
effect on States, on the relationship between the National Government 
and the States, or on the distribution of power and the 
responsibilities among the various levels of government, as specified 
in the Executive Order 13132. Accordingly, FRA determined this rule 
will not have sufficient federalism implications to warrant 
consultation with State and local officials or the preparation of a 
federalism assessment. Therefore, FRA did not prepare a federalism 
assessment.

Environmental Impact

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

Unfunded Mandates Reform Act of 1995

    Under Section 201 of the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4, 2 U.S.C. 1531), each Federal agency ``shall, unless 
otherwise prohibited by law, assess the effects of Federal regulatory 
actions on State, local, and tribal governments, and the private sector 
(other than to the extent that such regulations incorporate 
requirements specifically set forth in law).'' Section 202 of the Act 
(2 U.S.C. 1532) further requires that ``before promulgating any general 
notice of proposed rulemaking that is likely to result in the 
promulgation of any rule that includes any Federal mandate that may 
result in expenditure by State, local, and tribal governments, in the 
aggregate, or by the private sector, of $100,000,000 or more (adjusted 
annually for inflation) in any 1 year, and before promulgating any 
final rule for which a general notice of proposed rulemaking was 
published, the agency shall prepare a written statement'' detailing the 
effect on State, local, and tribal governments and the private sector. 
When adjusted for inflation using BLS' Consumer Price Index for All 
Urban Consumers, the equivalent value of $100,000,000 in year 2014 
dollars is $155,000,000.\2\ The final rule will not result in the 
expenditure, in the aggregate, of $155,000,000 or more in any one year, 
and thus preparation of such a statement is not required.
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    \2\ See U.S. Department of Transportation guidance at, ``2015 
Threshold of Significant Regulatory Actions Under the Unfunded 
Mandates Reform Act of 1995,'' May 6, 2015 (update), http://www.transportation.gov/office-policy/transportation-policy/2015-threshold-significant-regulatory-actions-under-unfunded.
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Energy Impact

    Executive Order 13211 requires Federal agencies to prepare a 
Statement of Energy Effects for any ``significant energy action.'' 66 
FR 28355, May 22, 2001. Under the Executive Order, a ``significant 
energy action'' is defined as

[a]ny action by an agency (normally published in the Federal 
Register) that promulgates or is expected to lead to the 
promulgation of a final rule or regulation, including notices of 
inquiry, advance notices of proposed rulemaking, and notices of 
proposed rulemaking: (1)(i) that is a significant regulatory action 
under Executive Order 12866 or any successor order, and (ii) is 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy; or (2) that is designated by the 
Administrator of the Office of Information and Regulatory Affairs as 
a significant energy action.

    FRA has evaluated this final rule under Executive Order 13211. FRA 
has determined that this final rule is not likely to have a significant 
adverse effect on the supply, distribution, or use of energy. 
Consequently, FRA has determined that this regulatory action is not a 
``significant energy action'' within the meaning of Executive Order 
13211.

Privacy Act

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

List of Subjects in 49 CFR Part 225

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

[[Page 80686]]

The Rule

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

PART 225-[AMENDED]

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

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

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

Sec.  225.19  Primary groups of accidents/incidents.

* * * * *
    (c) Group II--Rail equipment. Rail equipment accidents/incidents 
are collisions, derailments, fires, explosions, acts of God, and other 
events involving the operation of on-track equipment (standing or 
moving) that result in damages higher than the current reporting 
threshold (i.e., $6,700 for calendar years 2002 through 2005, $7,700 
for calendar year 2006, $8,200 for calendar year 2007, $8,500 for 
calendar year 2008, $8,900 for calendar year 2009, $9,200 for calendar 
year 2010, $9,400 for calendar year 2011, $9,500 for calendar year 
2012, $9,900 for calendar year 2013, $10,500 for calendar year 2014, 
$10,500 for calendar year 2015, and $10,500 for calendar year 2016) to 
railroad on-track equipment, signals, tracks, track structures, or 
roadbed, including labor costs and the costs for acquiring new 
equipment and material. * * *
* * * * *
    (e) The reporting threshold is $6,700 for calendar years 2002 
through 2005, $7,700 for calendar year 2006, $8,200 for calendar year 
2007, $8,500 for calendar year 2008, $8,900 for calendar year 2009, 
$9,200 for calendar year 2010, $9,400 for calendar year 2011, $9,500 
for calendar year 2012, $9,900 for calendar year 2013, $10,500 for 
calendar year 2014, $10,500 for calendar year 2015, and $10,500 for 
calendar year 2016. The procedure for determining the reporting 
threshold for calendar years 2006 and beyond appears as paragraphs 1-8 
of appendix B to part 225.
* * * * *

    Issued in Washington, DC, on December 21, 2015.
Sarah Feinberg,
Administrator.
[FR Doc. 2015-32545 Filed 12-24-15; 8:45 am]
 BILLING CODE 4910-06-P