Document ID: FRA-2007-0018-0001
Agency: fra
Document Type: Rule
Title: Adjustment of Monetary Threshold for Reporting Rail Equipment Accidents/Incidents for Calendar Year 2008
Posted Date: 2007-12-28T05:00Z

[Federal Register: December 28, 2007 (Volume 72, Number 248)]
[Rules and Regulations]               
[Page 73659-73661]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28de07-20]                         

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 225

[FRA-2007-0018]

 
Adjustment of Monetary Threshold for Reporting Rail Equipment 
Accidents/Incidents for Calendar Year 2008

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

ACTION: Final rule.

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SUMMARY: This rule increases the rail equipment accident/incident 
reporting threshold from $8,200 to $8,500 for certain railroad 
accidents/incidents involving property damage that occur during 
calendar year 2008. This action is needed to ensure that FRA's 
reporting requirements reflect cost increases that have occurred since 
the reporting threshold was last computed for calendar year 2007.

DATES: Effective Date: This regulation is effective January 1, 2008.

FOR FURTHER INFORMATION CONTACT: Arnel B. Rivera, Staff Director, 
Office of Safety Analysis, RRS-22, Mail Stop 17, FRA, 1200 New Jersey 
Avenue, SE., West Building 3rd Floor, Washington, DC 20590 (telephone 
202-493-1331); or Sandra S. Ries, Trial Attorney, Office of Chief 
Counsel, RCC-10, Mail Stop 10, FRA, 1200 New Jersey Avenue, SE., West 
Building 3rd Floor, Washington, DC 20590 (telephone 202-493-6047).

SUPPLEMENTARY INFORMATION:

Background

    A ``rail equipment accident/incident'' is a collision, derailment, 
fire, explosion, act of God, or other event involving the operation of 
railroad on-track equipment (standing or moving) that results in 
damages to railroad on-track equipment, signals, tracks, track 
structures, or roadbed, including labor costs and the costs for 
acquiring new equipment and material, greater than the reporting 
threshold for the year in which the event occurs. 49 CFR 225.19(c). 
Each rail equipment accident/incident must be reported to FRA using the 
Rail Equipment Accident/Incident Report (Form FRA F 6180.54). 49 CFR 
225.19(b) and (c). Paragraphs (c) and (e) of 49 CFR 225.19 provide that 
the dollar figure that constitutes the reporting threshold for rail 
equipment accidents/incidents will be adjusted, if necessary, every 
year in accordance with the procedures outlined in appendix B to part 
225 to reflect any cost increases or decreases. 61 FR 30940 (June 18, 
1996); 61 FR 60632 (November 29, 1996); 61 FR 67477 (December 23, 
1996); 62 FR 63675 (December 2, 1997); 63 FR 71790 (December. 30, 
1998); 64 FR 69193 (December 10, 1999); 65 FR 69884 (November 21, 
2000); 66 FR 66346 (December 26, 2001); 67 FR 79533 (December 30, 
2002); 70 FR 75414 (December 20, 2005); 72 FR 1184 (January 10, 2007).

New Reporting Threshold

    Approximately one year has passed since the rail equipment 
accident/incident reporting threshold was revised. 72 FR 1184 (January 
10, 2007). Consequently, FRA has recalculated the threshold, as 
required by Sec.  225.19(c), based on increased costs for labor and 
increased costs for equipment. FRA has determined that the current 
reporting threshold of $8,200, which applies to rail equipment 
accidents/incidents that occur during calendar year 2007, should 
increase by $300 to $8,500 for

[[Page 73660]]

equipment accidents/incidents occurring during calendar year 2008, 
effective January 1, 2008. The specific inputs to the equation set 
forth in appendix B (i.e., Tnew = Tprior * [1 + 0.4(Wnew-Wprior)/Wprior 
+ 0.6(Enew-Eprior)/100]) to part 225 are:

----------------------------------------------------------------------------------------------------------------
                   Tprior                           Wnew            Wprior            Enew            Eprior
----------------------------------------------------------------------------------------------------------------
$8,200......................................       $21.50323        $21.45800        175.56667            169.7
----------------------------------------------------------------------------------------------------------------

Where: Tnew = New threshold; Tprior = Prior threshold (with 
reference to the threshold, ``prior'' refers to the previous 
threshold rounded to the nearest $100, as reported in the Federal 
Register); Wnew = New average hourly wage rate, in dollars; Wprior = 
Prior average hourly wage rate, in dollars; Enew = New equipment 
average PPI value; Eprior = Prior equipment average PPI value. Using 
the above figures, the calculated new threshold, (Tnew) is 
$8,495.55, which is rounded to the nearest $100 for a final new 
reporting threshold of $8,500.

Notice and Comment Procedures

    In this rule, FRA has recalculated the monetary reporting threshold 
based on the formula discussed in detail and adopted, after notice and 
comment, in the final rule published December 20, 2005, 70 FR 75414. 
FRA has found that both the current cost data inserted into this pre-
existing formula and the original cost data that they replace were 
obtained from reliable Federal government sources. FRA has found that 
this rule imposes no additional burden on any person, but rather 
provides 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 the final rule.

Regulatory Impact

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This rule has been evaluated in accordance with existing policies 
and procedures, and determined to be non-significant under both 
Executive Order 12866 and DOT policies and procedures (44 FR 11034 
(Feb. 26, 1979)).

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612) requires 
a review of proposed and final rules to assess their impact on small 
entities, unless the Secretary certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Pursuant to Section 312 of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), FRA has issued a final policy 
that formally establishes ``small entities'' as including 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.
    About 680 of the approximately 718 railroads in the United States 
are considered small entities by FRA. FRA certifies that this final 
rule will have no significant economic impact on a substantial number 
of small entities. To the extent that this rule has any impact on small 
entities, the impact will be neutral or insignificant. The frequency of 
rail equipment accidents/incidents, and therefore also the frequency of 
required reporting, is generally proportional to the size of the 
railroad. A railroad that employs thousands of employees and operates 
trains millions of miles is exposed to greater risks than one whose 
operation is substantially smaller. Small railroads may go for months 
at a time without having a reportable occurrence of any type, and even 
longer without having a rail equipment accident/incident. For example, 
current FRA data indicate that 3,379 rail equipment accidents/incidents 
were reported in 2004, with small railroads reporting 307 of them. In 
2005, 3,252 rail equipment accidents/incidents were reported, and small 
railroads reported 321 of them. Data for 2006 show that 2,935 rail 
equipment accidents/incidents were reported, with small railroads 
reporting 345 of them. On average for those three calendar years, small 
railroads reported about 10% (ranging approximately from 9% to 12%) of 
the total number of rail equipment accidents/incidents. FRA notes that 
these data are accurate as of the date of issuance of this final rule, 
and are subject to minor changes due to additional reporting. Absent 
this rulemaking (i.e., any increase in the monetary reporting 
threshold), the number of reportable accidents/incidents would 
increase, as keeping the 2007 threshold in place would not allow it to 
keep pace with the increasing dollar amounts of wages and rail 
equipment repair costs. Therefore, this rule will be neutral in effect. 
Increasing the reporting threshold will slightly decrease the 
recordkeeping burden for railroads over time. Any recordkeeping burden 
will not be significant and will affect the large railroads more than 
the small entities, due to the higher proportion of reportable rail 
equipment accidents/incidents experienced by large entities.

Paperwork Reduction Act

    There are no new information collection requirements associated 
with this final rule. Therefore, no estimate of a public reporting 
burden is required.

Federalism Implications

    FRA has analyzed this rule in accordance with Executive Order 
13132, which requires an agency to determine whether a rule will have a 
substantial direct effect on 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. FRA has 
determined that the rule will not have sufficient federalism 
implications to warrant consultation with State and local officials or 
the preparation of a federalism assessment. Accordingly, a federalism 
assessment has not been prepared.

Environmental Impact

    FRA has evaluated this regulation in accordance with its 
``Procedures for Considering Environmental Impacts'' (FRA's Procedures) 
(64 FR 28545, May 26, 1999) as required by the National Environmental 
Policy Act (42 U.S.C. 4321 et seq.), other environmental statutes, 
Executive Orders, and related regulatory requirements. FRA has 
determined that 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 pursuant to section 4(c)(20) of FRA's Procedures. 
64 FR 28545, 28547, May 26, 1999. In accordance with sections 4(c) and 
(e) of FRA's Procedures, the agency has further concluded that no 
extraordinary circumstances exist with respect to this regulation that 
might trigger the need for a more detailed environmental review. As a 
result, FRA finds that this regulation is not a major Federal action 
significantly affecting the quality of the human environment.

[[Page 73661]]

Unfunded Mandates Reform Act of 1995

    Pursuant to Section 201 of the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4, 2 U.S.C. 1531), each Federal agency ``shall, unless 
otherwise prohibited by law, assess the effects of Federal regulatory 
actions on State, local, and tribal governments, and the private sector 
(other than to the extent that such regulations incorporate 
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 [$132,300,000 or more (as 
adjusted 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. 
The final rule will not result in the expenditure, in the aggregate, of 
$132,300,000 or more 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.'' 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: That (1)(i) 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 in accordance with 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

    Anyone is able to search the electronic form of all our comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit 
http://www.regulations.gov.

List of Subjects in 49 CFR Part 225

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

The Rule

0
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 1.49.

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, and $8,500 for 
calendar year 2008) 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 and $8,500 for calendar year 2008. 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 19, 2007.
Joseph H. Boardman,
Administrator.
 [FR Doc. E7-24999 Filed 12-27-07; 8:45 am]

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