Document ID: FRA-2014-0099-0004
Agency: fra
Document Type: Rule
Title: Revision of Method for Calculating Monetary Threshold for Reporting Rail Equipment Accidents/Incidents
Posted Date: 2020-12-09T05:00Z

[Federal Register Volume 85, Number 237 (Wednesday, December 9, 2020)]
[Rules and Regulations]
[Pages 79130-79135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25863]

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 225

[Docket No. FRA-2014-0099, Notice No. 2]
RIN 2130-AC49

Revision of Method for Calculating Monetary Threshold for 
Reporting Rail Equipment Accidents/Incidents

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

ACTION: Final rule.

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SUMMARY: FRA's accident/incident reporting regulation requires 
railroads to report to FRA all rail equipment accidents/incidents above 
the monetary reporting threshold (reporting threshold) applicable to 
that calendar year. In this final rule, FRA amends this regulation to 
modify the way it calculates periodic adjustments to the reporting 
threshold and the way it communicates each calendar year's threshold to 
railroads. This final rule will improve the accuracy of accident/
incident data gathered from the railroads.

DATES: This final rule is effective January 8, 2021.

ADDRESSES: Docket: For access to the docket to read background 
documents or comments received, go to http://www.regulations.gov at any 
time or visit U.S. Department of Transportation, Docket Operations, 
West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Prabhdeep S. Chawla, Industry 
Economist, U.S. Department of Transportation, Federal Railroad 
Administration, Office of Safety Analysis, RRS-21, W33-321, 1200 New 
Jersey Ave. SE, Washington, DC 20590 (telephone 202-493-6298); or Senya 
Waas, Attorney Adviser, U.S. Department of Transportation, Federal 
Railroad Administration, Office of Chief Counsel, RCC-10, W31-223, 1200 
New Jersey Ave. SE, Washington, DC 20590 (telephone 202-493-0665).

SUPPLEMENTARY INFORMATION:

Table of Contents for Supplementary Information

I. Executive Summary
II. Background
III. Discussion of Specific Comments and Conclusions
IV. Regulatory Review and Notices
    A. Executive Orders 12866, 13771, and DOT Regulatory Policies 
and Procedures
    B. Regulatory Flexibility Act and Executive Order 13272: 
Certification of No Significant Economic Impact on a Substantial 
Number of Small Entities
    C. Other Specialized Analyses (Paperwork Reduction Act, 
Federalism, Environmental Impact, Unfunded Mandates Reform Act of 
1995, Energy Impact)
    D. Privacy Act
    E. Regulation Identifier Number (RIN)

I. Executive Summary

    On May 17, 2019, FRA published a notice of proposed rulemaking 
(NPRM) proposing two technical revisions to the formula for calculating 
its accident/incident reporting threshold and an administrative change 
to the way FRA communicates the reporting threshold applicable to the 
upcoming year. See 84 FR 22410. This final rule substantially adopts 
all of the proposals in the NPRM. First, FRA revises the percentage 
term used to determine a change in equipment costs, so it is consistent 
with the percentage term used to determine a change in labor costs. 
Second, to reflect overall economic data trends better, this final rule 
revises the formula to use full-year data instead of only second-
quarter data to calculate the reporting threshold. Third, FRA is 
revising 49 CFR 225.19(e) to indicate that it will publish an annual 
notice on its website stating the reporting threshold for the upcoming 
calendar year (CY). FRA will publish this annual notice on its website 
no later than November 30th of each year, providing at least one month 
advance notice to stakeholders of the new threshold before it becomes 
effective. Issuing a notice each year, as opposed to a final rule, will 
simplify and expedite the communication of the reporting threshold, and 
will be more practical and efficient than FRA annually publishing a 
final rule incorporating the reporting threshold amount in the rule 
text in 49 CFR 225.19(c) and (e).
    In the NPRM, FRA proposed no revisions to 49 CFR 225.19(c) 
regarding rail equipment accidents. However, because that section 
currently lists the reporting threshold for each calendar year since 
2002, FRA is revising that section to remove those specific references 
consistent with the revisions to Sec.  225.19(e) discussed above. 
Specifically, FRA will no longer publish each year's reporting 
threshold in the rule text of part 225. Instead, each year, FRA will 
issue a notice announcing the reporting threshold for the upcoming 
year.
    FRA analyzed the economic impacts of this final rule against a ``no 
action'' baseline reflecting what would happen in the absence of this 
final rule. That is, what would happen if the reporting threshold 
continued to be calculated according to the current, technically-flawed 
formula. FRA estimated that, going forward, the technical revisions to 
the reporting threshold formula adopted in this final rule will yield 
slightly lower reporting thresholds than the existing formula would 
produce. This lower threshold will likely result in railroads being 
required to report more rail equipment accidents/incidents under this 
final rule. As noted in the NPRM, FRA estimated this rule would cause 
the railroads to report an average of 140 more rail equipment 
accidents/incidents annually over the 10-year period from 2019 to 
2028.\1\ The present value of the costs to report these accidents/
incidents to FRA totals $138,913 using a 7 percent discount rate, and 
$170,744 using a 3 percent discount rate. The annualized costs are 
$19,778 using a 7 percent discount rate, and $20,016 using a 3 percent 
discount rate. To place the estimated marginal increase in reported 
rail equipment accidents/incidents in perspective, the expected 
increase represents about 7.5 percent of the 1,850 total reported rail 
equipment accidents/incidents every year (an average over the years 
2014 to 2018)--and an even smaller percentage of the approximately 
12,000 total

[[Page 79131]]

accidents/incidents reported annually on average (including highway-
rail incidents and other incidents).
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    \1\ This estimate was based on projections using data from 2006-
2018, as described in the NPRM.
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    FRA also quantified the cost-savings from not publishing the 
reporting threshold in the Federal Register. Over 10 years, the 
expected present value of cost savings totals $8,927 discounted at 7 
percent, and $10,842 discounted at 3 percent. The corresponding 
annualized cost savings are $1,271 using a 7 percent discount rate, and 
also $1,271 using a 3 percent discount rate.
    Although this final rule may require railroads to report slightly 
more accidents and incidents in any given year, FRA expects it will 
result in more accurate and consistent train accident data for 
analyzing railroad safety trends. The improved data is expected to help 
inform future regulatory and other actions that better address safety 
risks and reduce the occurrence of rail equipment accidents/incidents. 
Additionally, users of FRA's data (including states, researchers, and 
other stakeholders), will benefit from access to more accurate and 
consistent data. Overall, the revisions will benefit a broad range of 
analyses.

II. Background

    The NPRM contained a detailed background discussion of the existing 
formula FRA used to calculate the annual reporting threshold, the 
proposed revisions to that formula, and the agency's proposal to issue 
a notice on its website each year announcing the reporting threshold 
for the upcoming calendar year.
    Given that FRA received limited comments to the NPRM, FRA is not 
reproducing the NPRM analysis here. Please refer to the NPRM for the 
full background discussion. 84 FR at 22411-22417.

III. Discussion of Specific Comments and Conclusions

    In the NPRM, FRA requested comments on the assumptions and 
methodology used in its analysis. In response, FRA received two 
comments. One comment was filed jointly by the Association of American 
Railroads and the American Short Line and Regional Railroad Association 
(Railroads), and a second comment was submitted anonymously. The 
comments received are in the public docket for this rulemaking at 
www.regulations.gov.
    In their comment, the Railroads expressed concern over how FRA will 
communicate the threshold for the upcoming year to railroads and the 
public at-large. The Railroads recommended three changes to the NPRM. 
First, they suggested FRA provide a dedicated website address where the 
reporting threshold could be reliably found. Second, to provide 
certainty regarding the effective date of any changes to the threshold, 
the Railroads asked FRA to provide an annual date for when to expect 
publication of the reporting threshold notice on FRA's website. Third, 
the Railroads suggested FRA should have and communicate a plan to keep 
the reporting threshold on the FRA website in case of a partial 
Government shutdown. The Railroads did not object to the proposed 
technical revisions to the reporting threshold formula.
    In consideration of the Railroads' comments, FRA has established a 
dedicated web page for the reporting threshold on its website. The web 
page address is: https://railroads.dot.gov/forms-guides-publications/guides/monetary-threshold-notice. In addition, a link to the reporting 
threshold will be featured under ``Related Links'' on the FRA Safety 
Data & Reporting web page at https://railroads.dot.gov/safety-data, 
when it is first published and for some time thereafter. These websites 
will help the public find the reporting threshold when needed.
    In response to the Railroads' second concern, FRA is modifying the 
rule text to state that it will publish a notice on its website no 
later than November 30th each year announcing the new reporting 
threshold that will take effect on January 1st of the upcoming calendar 
year. This change will provide the Railroads and other stakeholders 
advance notification about when the reporting threshold will be 
published.
    While partial Government shutdowns noted by the Railroads occur, 
they are infrequent events. From 1990 to 2019, there have been 7 
Government shutdowns totaling 83 days, accounting for less than 1 
percent of the total number of days over those 30 years.\2\ Moreover, 
FRA's web pages continue to operate during a Government shutdown. 
Routine operations, including hosting the reporting threshold, continue 
under a Government shutdown. However, any specific service a user might 
need would be deferred until after the shutdown. FRA also suggests that 
users who need the reporting threshold simply print or save a copy the 
reporting threshold for their records, as it will remain the same for 
the entire calendar year.
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    \2\ Jennifer Earl, ``A Look Back at Every Government Shutdown in 
US History,'' Fox News, published February 9, 2018, updated January 
28, 2019, accessed December 17, 2019, https://www.foxnews.com/politics/a-look-back-at-every-government-shutdown-in-us-history.
    Calculation: 83 days/(30 years * 365 days per year) = 0.0076, or 
about 0.8%.
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    FRA received an anonymous comment recommending every accident/
incident be investigated without regard to the reporting threshold. The 
commenter stated that small incidents can indicate systemic issues 
leading to catastrophic events.
    While FRA does not have the resources to investigate every 
accident/incident, it exercises its jurisdiction in the course of 
conducting inspections and investigations to request information on 
accidents/incidents below the reporting threshold from the railroads. 
See 49 CFR 225.25. To mandate railroads regularly report every 
accident/incident to FRA is beyond the scope of this rulemaking.
    Other than the change to the rule text discussed above, FRA has 
adopted the requirements proposed in the NPRM in this final rule.

IV. Regulatory Review and Notices

A. Executive Orders 12866 and 13771, and DOT Regulatory Policies and 
Procedures

    This final rule is a nonsignificant rulemaking and evaluated in 
accordance with existing policies and procedures under Executive Order 
12866 and DOT's Administrative Rulemaking, Guidance, and Enforcement 
Procedures in 49 CFR part 5. This rulemaking is not a regulatory action 
under Executive Order 13771, ``Reducing Regulation and Controlling 
Regulatory Costs,'' because it is not significant under Executive Order 
12866. See 82 FR 9339, Jan. 30, 2017.
    FRA is revising its formula for determining the reporting 
threshold. The changes are summarized in the ``Executive Summary'' 
section above, and discussed in detail in the NPRM. The changes are 
intended to improve the accuracy of the reporting threshold, and the 
resulting rail equipment accident/incident data gathered from the 
railroads over time. The improved data is expected to help formulate 
regulations and other actions that better address safety risks. Table 1 
below summarizes these costs and benefits.

[[Page 79132]]

                                     Table 1--Summary of Costs and Benefits
                                       [Over a 10-year period of analysis]
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                                                Costs      Cost savings *                 Benefits
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Undiscounted, Nominal....................        $202,032         $12,710  Qualitative: More Accurate Data.
Present Value (PV) at 3%.................         170,744          10,842  Qualitative: More Accurate Data.
Present Value (PV) at 7%.................         138,913           8,927  Qualitative: More Accurate Data.
Annualized at 3%.........................          20,016           1,271  Qualitative: More Accurate Data.
Annualized at 7%.........................          19,778           1,271  Qualitative: More Accurate Data.
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* FRA will realize cost savings from issuing the reporting threshold on its website due to a reduction in
  printing costs.

    To estimate these costs, FRA's analysis in the NPRM indicated the 
changes in the reporting threshold formula would produce a slightly 
lower threshold in future years as compared to the existing formula.\3\ 
FRA's analysis also showed, for rail equipment accidents/incidents near 
the reporting threshold, railroads reported an average of 8 rail 
equipment accidents/incidents for every $100 increase in the reporting 
threshold. FRA forecasts both the baseline and slightly lower revised 
(i.e., final rule) thresholds from 2019 to 2028, and calculated the 
monetary differences between them. Next, FRA applied the rate of 8 
accidents/incidents per $100 increase to the monetary differences 
between the reporting thresholds to estimate the marginal increase in 
reported accidents/incidents. Finally, FRA multiplied the $144 cost to 
submit an accident/incident report to FRA on Form F 6180.54 to the 
marginal increase in reported accidents/incidents, to calculate the 
costs presented in the table above.
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    \3\ For the years 2006 to 2018, the revised threshold formula in 
this final rule produces a reporting threshold about six percent 
lower on average than the no-action baseline reporting threshold 
formula.
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    This final rule modifies the NPRM rule text by stating FRA will 
publish the upcoming reporting threshold on its website before it 
becomes effective, per comments received from the Railroads. No 
additional costs are expected from this change. This change will 
provide advance notification of the new reporting threshold to the 
railroads and public.

B. Regulatory Flexibility Determination and Executive Order 13272: 
Certification of No Significant Economic Impact on a Substantial Number 
of Small Entities

Need for the Final Rule
    This section examines the impact of the final rule on small 
entities. FRA is changing the way the reporting threshold is calculated 
because FRA found the existing formula was overestimating the change in 
equipment costs. As explained in detail in the NPRM, FRA is 
standardizing the way the percent change in equipment costs is 
calculated. Equipment cost changes will be calculated consistently with 
the way that labor costs are calculated. FRA is also incorporating 12 
months of data in the reporting threshold calculation. In addition, FRA 
is notifying railroads of the new reporting threshold for the upcoming 
year by publishing an annual notice on FRA's website.
    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, and 
Executive Order 13272, Proper Consideration of Small Entities in Agency 
Rulemaking, 67 FR 53461 (Aug. 16, 2002), require agency 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. 
FRA prepared an Initial Regulatory Flexibility Analysis (IRFA) at the 
time the proposed reporting threshold rule was published in the Federal 
Register. The analysis below supports that the final rule will not have 
a significant economic effect on a substantial number of small 
entities.
    FRA requested comment on potential small business impacts of the 
proposed rule. No commenters objected to the technical revisions to the 
reporting threshold formula, or to the potential costs of the proposed 
changes on small entities.
Description of Regulated Entities
    Under section 312 of the Small Business Regulatory Enforcement 
Fairness Act of 1996, Public Law 104-121, FRA has issued a final policy 
statement that formally establishes ``small entities'' are railroads 
that meet the line-haulage revenue requirements of a Class III 
railroad, which is $20 million or less in inflation-adjusted annual 
revenues, and commuter railroads or small governmental jurisdictions 
that serve populations of 50,000 or less. See 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.
    All railroads currently governed by 49 CFR part 225 railroad 
accident/incident reporting requirements will be subject to this final 
rule. Of those, FRA considers about 735 of the approximately 784 
railroads in the United States to be small entities. The final rule 
will result in a slightly lower future reporting threshold. Small 
entities affected by this rulemaking will be those that report 
accidents/incidents with associated monetary damages near the reporting 
threshold amount. Small railroads that report rail equipment accidents/
incidents with monetary damages that are much above (or below) the 
reporting threshold will continue to report (or not report) these to 
FRA. FRA's analysis in the IRFA showed a range of 8 to 18 small 
railroads reported accidents/incidents near the reporting threshold 
annually over the period from 2014 to 2018, or an average of 12 small 
railroads that would be affected. On average, these railroads represent 
about 1.7 percent of the 735 small railroads. Given the low proportion 
of small railroads impacted, this final rule is not expected to impact 
a substantial number of small entities.
Description of Compliance Requirements
    In the NPRM, to determine the potential compliance costs for small 
entities, FRA conducted an analysis similar to the economic analysis 
for all railroads. The steps and calculations in the analysis are 
summarized here. First, FRA calculated the rate of additional rail 
equipment accidents/incidents that small entities may have to report 
for every $100 change in the reporting threshold. FRA found an average 
of one more rail equipment accident/incident reported per $100 change. 
This rate is based on rail equipment accidents/incidents reported by 
the small entities in the past for the period 2006 to 2018. FRA lacks 
information on accidents/incidents below the current threshold because 
railroads do not have to report these. Therefore, FRA broadly assumed 
the pattern of accidents/incidents below a lower threshold calculated 
under this final rule would be similar to those

[[Page 79133]]

above the threshold, a mirror image for accidents/incidents near the 
threshold.
    To estimate the trend of the thresholds calculated using the 
baseline formula (i.e., the reporting threshold formula in effect 
before this final rule), and the thresholds calculated using the 
formula in this final rule, FRA forecast both thresholds for the years 
2019 to 2028. The forecasts allowed FRA to calculate the monetary 
differences between the baseline and final-rule reporting thresholds in 
the future, by year. Next, FRA converted the monetary differences 
between the reporting thresholds to the number of additional rail 
equipment accident/incident reports that small railroads may have to 
submit to FRA under the final rule. FRA estimated these additional 
accident/incident reports by applying the rate of accidents/incidents 
per $100 change in the reporting threshold noted above.
    Finally, FRA multiplied the railroad's cost to submit an accident/
incident report to FRA ($144 per report) by the number of additional 
rail equipment accident/incident reports, to produce the compliance 
cost per year for the small entities. Please see the cost schedule 
below. For the 10-year period, the undiscounted (nominal) costs amount 
to $25,488. The present value of total costs discounted at a 7 percent 
discount rate equals $17,526, and when discounted at a 3 percent rate 
equals $21,541.

    Table 2--Estimated Costs Based on Forecasted Number of Rail Equipment Accidents/Incidents: Small Entities
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                                     Reporting       Reporting                      Number  of
                                     threshold       threshold      Difference         extra         Estimated
                                     (baseline      (final-rule   between final-    accidents/     annual cost @
          Calendar year            formula, pre-   formula with    rule and pre-     incidents       $144 per
                                    final rule)      full-year      final rule       reported        accident/
                                    calculated         data)        thresholds       (rounded)       incident
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2019............................         $12,021        $ 10,566         -$1,456              15          $2,160
2020............................          12,329          10,807          -1,522              15           2,160
2021............................          12,637          11,048          -1,589              16           2,304
2022............................          12,944          11,289          -1,655              17           2,448
2023............................          13,252          11,530          -1,721              17           2,448
2024............................          13,559          11,771          -1,788              18           2,592
2025............................          13,867          12,012          -1,854              19           2,736
2026............................          14,174          12,254          -1,921              19           2,736
2027............................          14,482          12,495          -1,987              20           2,880
2028............................          14,789          12,736          -2,053              21           3,024
                                 -------------------------------------------------------------------------------
    Total Undiscounted Cost 2019- ..............  ..............  ..............  ..............          25,488
     2028 (10 Years), Nominal...
        Present Value (PV) of     ..............  ..............  ..............  ..............          17,526
         Total Cost Discounted
         at 7% 2019-2028........
        Present Value (PV) of     ..............  ..............  ..............  ..............          21,541
         Total Cost Discounted
         at 3% 2019-2028........
    Total Annualized Cost Using   ..............  ..............  ..............  ..............           2,495
     7% Discount Rate 2019-2028.
    Total Annualized Cost Using   ..............  ..............  ..............  ..............           2,525
     3% Discount Rate 2019-2028.
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    In terms of the estimated economic impact of the final rule on 
small entities, FRA expects the impact to be minimal based on the above 
analysis. Given the annualized cost is approximately $2,500, the cost 
per railroad for this group of railroads is about $139 to $313 per 
year--or on average about $210 per year per railroad. (Calculated as 
$2,500/18 railroads = $139; and $2,500/8 railroads = $312.50; for a 
range of about $139 to $313.) When compared to annual revenues, the 
impact is very small. The industry trade organization representing 
small railroads, the American Short Line and Regional Railroad 
Association (ASLRRA), reports the average freight revenue per Class III 
railroad is $4.8 million.\4\ Relative to the average freight revenue 
per railroad, FRA estimates the proposed rule will affect less than 0.1 
percent of revenues. (Calculated as $210 compliance cost per year per 
railroad/$4,800,000 average freight revenue per railroad = 0.00004 = 
0.004 percent.) FRA therefore expects the average compliance costs for 
a small entity to be not significant.
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    \4\ See American Short Line and Regional Railroad Association. 
(2014). Short Line and Regional Railroad Facts and Figures. 
(Pamphlet). Washington, DC: Author.
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Certification

    Under the RFA, FRA prepared and made available for public comment 
an IRFA describing the impacts of the proposed rule on small entities 
(5 U.S.C 603(a)). FRA received no comments regarding the impact on 
small entities. Additionally, the ASLRRA did not object to the 
technical revisions or costs of the proposed rule. As explained above, 
FRA finds the average compliance costs for a small entity to be not 
significant. Accordingly, the FRA Administrator hereby certifies that 
this final rule will not have a significant economic impact on a 
substantial number of small entities.

C. Other Specialized Analyses

Paperwork Reduction Act

    The burden for Accident/Incident Reporting and Recordkeeping is 
approved in the information collection for 49 CFR part 225 under OMB 
No. 2130-0500. OMB re-approval for this collection of information was 
granted on June 6, 2018, and the expiration date is June 30, 2021.

Federalism

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999), 
requires FRA to develop an accountable process to ensure ``meaningful 
and timely input by State and local officials in the development of 
regulatory policies that have federalism implications.'' ``Policies 
that have federalism implications'' are

[[Page 79134]]

defined in the Executive order to include regulations that have 
``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.'' Under 
E.O. 13132, the agency may not issue a regulation with federalism 
implications that imposes substantial direct compliance costs and that 
is not required by statute, unless the Federal government provides the 
funds necessary to pay the direct compliance costs incurred by State 
and local governments, the agency consults with State and local 
governments, or the agency consults with State and local government 
officials early in the process of developing the regulation. Where a 
regulation has federalism implications and preempts State law, the 
Agency seeks to consult with State and local officials in the process 
of developing the regulation.
    This final rule has been analyzed in accordance with the principles 
and criteria contained in E.O. 13132. FRA has determined that, if 
adopted, the final rule would not have 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. In addition, FRA has determined that this 
final rule will not impose substantial direct compliance costs on State 
and local governments. Therefore, the consultation and funding 
requirements of E.O. 13132 do not apply.
    However, this final rule could have preemptive effect by operation 
of law under certain provisions of the Federal railroad safety 
statutes, specifically the former Federal Railroad Safety Act of 1970 
(FRSA), repealed and recodified at 49 U.S.C. 20106, and the former 
Accident Reports Act of 1910, repealed and recodified at 49 U.S.C. 
20901. See Public Law 103-272 (July 5, 1994). The former FRSA provides 
that States may not adopt or continue in effect any law, regulation, or 
order related to railroad safety or security that covers the subject 
matter of a regulation prescribed or order issued by the Secretary of 
Transportation (with respect to railroad safety matters) or the 
Secretary of Homeland Security (with respect to railroad security 
matters), except when the State law, regulation, or order qualifies 
under the ``local safety or security hazard'' exception to section 
20106.
    In sum, FRA has analyzed this final rule in accordance with the 
principles and criteria contained in E.O. 13132. As explained above, 
FRA has determined that this final rule has no federalism implications, 
other than the possible preemption of State laws under the former FRSA. 
Accordingly, FRA has determined that preparation of a federalism 
summary impact statement for this final rule is not required.
Environmental Impact
    FRA has evaluated this final rule in accordance with the National 
Environmental Policy Act (NEPA), 42 U.S.C. 4321 et seq., other 
environmental statutes, related regulatory requirements, and its 
``Procedures for Considering Environmental Impacts'' (FRA's Procedures) 
(64 FR 28545, May 26, 1999). FRA has determined that this final rule is 
categorically excluded from detailed environmental review pursuant to 
section 4(c)(20) of FRA's NEPA Procedures, ``Promulgation of railroad 
safety rules and policy statements that do not result in significantly 
increased emissions of air or water pollutants or noise or increased 
traffic congestion in any mode of transportation.'' See 64 FR 28547 
(May 26, 1999). Categorical exclusions (CEs) are actions identified in 
an agency's NEPA implementing procedures that do not normally have a 
significant impact on the environment and therefore do not require 
either an environmental assessment (EA) or environmental impact 
statement (EIS). See 40 CFR 1508.4.
    In analyzing the applicability of a CE, the agency must also 
consider whether extraordinary circumstances are present that would 
warrant a more detailed environmental review through the preparation of 
an EA or EIS. Id. In accordance with section 4(c) and (e) of FRA's 
Procedures, the Agency has further concluded that no extraordinary 
circumstances exist with respect to this regulation that might trigger 
the need for a more detailed environmental review. As a result, FRA 
finds this rule is not a major Federal action that significantly 
affects 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 (Mar. 22, 1995); 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 one 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. 
This final rule is not expected to result in the expenditure, in the 
aggregate, of $100,000,000 or more, adjusted for inflation, in any one 
year, and thus preparation of such a statement is not required.
Energy Impact
    Executive Order 13211 requires Federal agencies to prepare a 
Statement of Energy Effects for any ``significant energy action.'' See 
66 FR 28355 (May 22, 2001). Under the Executive Order, a ``significant 
energy action'' is defined as any 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) that is a significant regulatory action 
under Executive Order 12866 or any successor order, and 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 does not anticipate that this final rule is 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.

D. 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.

E. Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action

[[Page 79135]]

listed in the Unified Agenda of Federal Regulations. The Regulatory 
Information Service Center publishes the Unified Agenda in April and 
October of each year. The RIN contained in the heading of this document 
can be used to cross-reference this action with the Unified Agenda.

List of Subjects in 49 CFR Part 225

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

The Final 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--RAILROAD ACCIDENTS/INCIDENTS: REPORTS CLASSIFICATION, AND 
INVESTIGATIONS

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

    Authority: 49 U.S.C. 103, 322(a), 20103, 20107, 20901-20902, 
21301, 21302, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.

0
2. In Sec.  225.19, revise paragraphs (c) and (e) and remove the 
parenthetical authority citation at the end of the section 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 to railroad on-track equipment, signals, tracks, track 
structures, or roadbed, including labor costs and costs for acquiring 
new equipment and material.
* * * * *
    (e) Notice. No later than November 30 of each year, the 
Administrator will publish a notice on FRA's website announcing the 
reporting threshold that will take effect on January 1 of the following 
calendar year.

0
3. Appendix B to part 225 is revised to read as follows:

Appendix B to Part 225--Procedure for Determining Reporting Threshold

    1. Wage data used in the calculation are collected from 
railroads by the Surface Transportation Board (STB) on Form A--STB 
Wage Statistics. Rail equipment data from the U.S. Department of 
Labor, Bureau of Labor Statistics (BLS), LABSTAT Series reports are 
used in the calculation. The equation used to adjust the reporting 
threshold has two components: (a) The average hourly earnings of 
certain railroad maintenance employees as reported to the STB by the 
Class I railroads and Amtrak; and (b) an overall rail equipment cost 
index determined by the BLS. The wage component is weighted by 40% 
and the equipment component by 60%.
    2. For the wage component, the average of the data from Form A--
STB Wage Statistics for Group No. 300 (Maintenance of Way and 
Structures) and Group No. 400 (Maintenance of Equipment and Stores) 
employees is used.
    3. For the equipment component, LABSTAT Series Report, Producer 
Price Index (PPI) Series WPU 144 for Railroad Equipment is used.
    4. In the month of October, second-quarter and first-quarter 
wage data for the current year, and fourth-quarter and third-quarter 
wage data for the previous year are obtained from the STB. For 
equipment costs, the corresponding BLS railroad equipment indices 
for the same time period as the STB wage data are obtained.
    5. The wage data are reported in terms of dollars earned per 
hour, while the equipment cost data are indexed to a base year of 
1982.
    6. The procedure for adjusting the reporting threshold is shown 
in the formula below. The wage and equipment components appear as 
fractional changes relative to the prior year. After performing the 
calculation, the result is rounded to the nearest $100.
    7. The weightings result from using STB wage data and BLS 
equipment cost data to produce a reasonable estimation of the 
reporting threshold that was calculated using the threshold formula 
in effect immediately before calendar year 2006, a formula that 
assumed damage repair costs, at levels at or near the threshold, 
were split approximately evenly between labor and materials.
    8. Formula:

New Threshold = Prior Threshold x [1 + 0.4(Wnew--Wprior)/Wprior + 
0.6(Enew-Eprior)/Eprior]

Where:

Wnew = New average hourly wage rate ($).
Wprior = Prior average hourly wage rate ($).
Enew = New equipment average PPI value.
Eprior = Prior equipment average PPI value.

    Issued in Washington, DC.
Quintin C. Kendall,
Deputy Administrator.
[FR Doc. 2020-25863 Filed 12-8-20; 8:45 am]
BILLING CODE 4910-06-P