
[Federal Register Volume 79, Number 127 (Wednesday, July 2, 2014)]
[Rules and Regulations]
[Pages 37664-37669]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15336]



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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 233

[Docket No. FRA-2012-0104, Notice No. 2]
RIN 2130-AC44


Signal Systems Reporting Requirements

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

ACTION: Final rule.

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SUMMARY: FRA is issuing this final rule as part of a paperwork 
reduction initiative. The final rule eliminates the regulatory 
requirement that each railroad carrier file a signal system status 
report with FRA every five years. FRA believes the report is no longer 
necessary because FRA receives more updated information regarding 
railroad signal systems through alternative sources. Separately, FRA is 
amending the criminal penalty provision in the Signal Systems Reporting 
Requirements by updating two outdated statutory citations.

DATES: This final rule is effective on September 2, 2014. Petitions for 
reconsideration must be received by August 21, 2014. Comments in 
response to petitions for reconsideration must be received by October 
6, 2014.

ADDRESSES: Petitions for reconsideration and comments on petitions for 
reconsideration: Any petitions for reconsideration or comments on 
petitions for reconsideration related to this Docket No. FRA-2012-0104, 
Notice No. 2 may be submitted by any of the following methods:
     Federal eRulemaking Portal: Go to www.Regulations.gov. 
Follow the online instructions for submitting comments.
     Mail: Docket Management Facility, U.S. Department of 
Transportation, Room W12-140, 1200 New Jersey Avenue SE., Washington, 
DC 20590-0001.
     Hand Delivery: Docket Management Facility, U.S. Department 
of Transportation, West Building, Ground floor, Room W12-140, 1200 New 
Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m. ET, Monday 
through Friday, except Federal holidays.
     Fax: (202) 493-2251. Instructions: All submissions must 
include the agency name and docket number or Regulatory Identification 
Number (RIN) for this rulemaking.
    Please note that all petitions for reconsideration of this final 
rule and comments on the petitions that are received will be posted 
without change to www.Regulations.gov, including any personal 
information provided. Please see the discussion under the Privacy Act 
heading in the SUPPLEMENTARY INFORMATION section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to www.Regulations.gov at any time or visit the 
Docket Management Facility, U.S. Department of Transportation, West 
Building, Ground floor, Room W12-140, 1200 New Jersey Avenue SE., 
Washington, DC between 9 a.m. and 5 p.m. ET, Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Sean Crain, Electronic Engineer, 
Signal and Train Control Division, Office of Railroad Safety, FRA, W35-
226, 1200 New Jersey Avenue SE., Washington, DC 20590 (telephone: (202) 
493-6257), sean.crain@dot.gov, or Stephen N. Gordon, Trial Attorney, 
Office of Chief Counsel, FRA, W31-209, 1200 New Jersey Avenue SE., 
Washington, DC 20590 (telephone: (202) 493-6001), 
stephen.n.gordon@dot.gov.

SUPPLEMENTARY INFORMATION: 

I. Explanation of Regulatory Action

A. Elimination of the Signal System Five-[Y]ear Report

    On May 14, 2012, President Obama issued Executive Order (E.O.) 
13610--Identifying and Reducing Regulatory Burdens, which seeks ``to 
modernize our regulatory system and to reduce unjustified regulatory 
burdens and costs.'' See 77 FR 28469. The E.O. directs each executive 
agency to conduct retrospective reviews of its regulatory requirements 
to identify potentially beneficial modifications to regulations. 
Executive agencies are to ``give priority, consistent with the law, to 
those initiatives that will produce significant quantifiable monetary 
savings or significant quantifiable reductions in paperwork burdens 
while protecting public health, welfare, safety and our environment.'' 
See id. at 28470.
    FRA initiated a review of its existing regulations in accordance 
with E.O. 13610 and the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 
et seq., with the goal of identifying regulations that can be amended 
or eliminated, thereby reducing the paperwork and reporting burden on 
railroad carriers (railroads) that are subject to FRA jurisdiction. One 
area where FRA believes it can help reduce the railroad industry's 
reporting burden is by eliminating the requirement to file a ``Signal 
System Five-Year Report.'' 49 CFR 233.9 (Sec.  233.9). Accordingly, FRA 
proposed to do so in a notice of proposed rulemaking (NPRM) published 
June 19, 2013. See 78 FR 36738.
    Having considered the public comments on the NPRM, FRA is issuing 
this final rule, which eliminates the requirement in Sec.  233.9 that 
each carrier subject to the Signal Systems Reporting Requirements at 49 
CFR part 233 (part 233) complete and submit a ``Signal System Five-Year 
Report'' (Form FRA F6180.47) in accordance with the instructions and 
definitions on the form. Part 233 applies to railroads that operate on 
standard gage track that is part of the general railroad system of 
transportation, except for rail rapid transit operations conducted over 
track that is used exclusively for that purpose and that is not part of 
the general railroad system of transportation. See 49 CFR 233.3, 
Application; see also 49 CFR part 209, app. A, and part 211, app. A, 
for discussions of the term ``general railroad system of 
transportation[.]''
    The information reported on FRA Form F6180.47 is intended to update 
FRA on the status of the railroad's signal system. It provides a 
snapshot of each reporting railroad's signal system every five years, 
and FRA has historically used the report as a source to monitor changes 
to signal systems among the Nation's railroads. In particular, the 
report provides information such as the total road and track mileage 
for each method of train operation on the reporting railroad (i.e., 
traffic control, automatic block, timetable and train orders, and non-
automatic block) and the total number of interlockings, controlled 
points, and switch arrangements maintained by the reporting railroad. 
The report also provides information on the total road and track 
mileage and the total number of locomotives and motor cars (including 
multiple unit cars) with automatic train stop, train control, and cab 
signal systems on the line of the reporting railroad, including foreign 
locomotives and ``motor cars'' that operate over these installations.
    Prior to April 1, 1997, carriers were required to submit a ``Signal 
System Annual Report'' by April 15 of each year. However, based on a 
regulatory review, FRA extended the reporting requirement to every five 
years rather than annually. See 61 FR 33871 (July 1, 1996). FRA 
determined that a five-year reporting period would significantly

[[Page 37665]]

 reduce the reporting burden on the railroads while still meeting the 
informational needs of the government. Therefore, in July 1996, FRA 
amended Sec.  233.9 to require that ``[n]ot later than April 1, 1997 
and every 5 years thereafter, each carrier shall file with FRA a signal 
system status report `Signal System Five-[Y]ear Report' on a form to be 
provided by FRA in accordance with instructions and definitions 
provided on the report.''
    For the 2012 reporting period, FRA transitioned the ``Signal System 
Five-Year Report'' form into an electronic format. The electronic form 
required all of the same information as the paper form but could be 
submitted via the Internet. The form was due to be submitted by no 
later than April 1, 2012, and pertained to signal systems in service on 
or after January 1, 2012. The next five-year report is not due until 
April 2017. The present rulemaking eliminates the reporting requirement 
in its entirety for April 2017 and thereafter.
    FRA is eliminating the requirement to file a ``Signal System Five-
Year Report'' because the report is no longer necessary. The data 
collected in the ``Signal System Five-Year Report'' quickly becomes 
outdated. Railroads normally modify signal systems far more frequently 
than once every five years. Indeed, FRA has generally found that signal 
system modifications occur with such frequency under 49 CFR 235.5 and 
235.7, that the ``Signal System Five-Year Report'' often is out-of-date 
by the time it is received by FRA.
    Moreover, FRA has other viable means to monitor a carrier's signal 
system. It is better able to monitor the status of a railroad signal 
system through the use of more frequently collected agency data--such 
as the Block Signal Application (BSAP), see 49 CFR 235.5, and positive 
train control (PTC) filings, see 49 CFR part 236, subparts H and I--
which provide the agency much more detailed and useful information. The 
development and expansion of electronic reporting methods also allow 
railroads to more frequently report to FRA information similar to that 
which is captured in the ``Signal System Five-Year Report.'' This 
ability gives FRA a better ``real-time'' understanding of a carrier's 
signal system than the agency can get from a report that is filed once 
every five years. As a result, FRA currently relies on the more up-to-
date sources for signal system data and has little use for the 
information collected in the ``Signal System Five-Year Report.''
    Finally, the railroad industry and the general public do not appear 
to derive any useful benefit or information from the requirement to 
submit a ``Signal System Five-Year Report.'' The responses FRA has 
received from the industry and the general public indicate that, as 
expected, the data contained in the report does not provide up-to-date 
information about railroad signal systems. As a result, FRA is 
confident that eliminating the report will not result in the railroad 
industry's or the general public's being less informed about railroad 
signal systems.

B. Updating Statutory Citations in Part 233

    Administrative amendments are sometimes necessary to address 
citations that have become outdated due to the actions of Congress. 
This is particularly true when the statutory authority for a regulatory 
provision is moved to a different title, chapter, or section of the 
U.S. Code or if the statutory authority is redesignated as an entire 
section of the U.S. Code instead of just a subsection of the U.S. Code. 
Federal regulations do not ``auto-correct'' for these types of changes. 
Therefore, it is incumbent on agencies to monitor their regulations and 
make appropriate changes whenever feasible. FRA has identified two 
citations in 49 CFR 233.13(b)--referencing ``section 209(e) of the 
Federal Railroad Safety Act of 1970, as amended (49 U.S.C. 438(e))'' 
and ``49 U.S.C. 522(a)''--that should be amended for this reason, and 
is making those amendments in this rulemaking.
    The first of the subject statutory citations is to a section of the 
former Federal Railroad Safety Act of 1970 (FRSA), as amended. See 
Public Law 91-458 (October 16, 1970). Section 209 of the FRSA, as 
originally enacted, contained a civil penalty provision that was 
codified at 45 U.S.C. 438. Although the statute did not contain a 
criminal penalty provision when it was first enacted, Congress 
eventually determined that there may be situations where criminal 
penalties are warranted for violations of the law. Accordingly, the 
FRSA was amended on October 10, 1980. See Public Law 96-423. Among 
other things, the 1980 amendment added subsection (e) to section 209 of 
the FRSA, establishing that criminal penalties may be assessed against 
any person who knowingly and willfully makes a false entry in a record 
or report required to be made or preserved under the FRSA; destroys, 
mutilates, changes, or otherwise falsifies such a record or report; 
fails to enter required specified facts or transactions in such a 
record or report; makes, prepares, or preserves such a record or report 
in violation of a regulation or order issued under the FRSA; or files a 
false record or report with the Secretary of Transportation. This 
revision to the FRSA was codified at 45 U.S.C. 438(e).
    In 1984, FRA amended its signal and train control regulations, 
including 49 CFR part 233. See 49 FR 3374 (Jan. 26, 1984). Section 
233.13(b) was amended at this time to read ``[w]hoever knowingly and 
willfully--[f]iles a false report or other document required to be 
filed by this part is subject to a $5,000 fine and 2 years imprisonment 
as prescribed by 49 U.S.C. 522(a) and section 209(e) of the Federal 
Railroad Safety Act of 1970, as amended (45 U.S.C. 438(e)).'' (Emphasis 
added.) The italicized language reflected the added statutory authority 
to impose certain criminal penalties that Congress provided in its 1980 
amendment to the FRSA, which applied because FRSA was part of the 
statutory basis for the requirements in part 233. See 49 FR 3378-79. 
Subsequently, Congress made additional changes that applied to section 
209(e) of the FRSA. In 1994, Congress enacted a law to ``revise, 
codify, and enact without substantive change certain general and 
permanent laws, related to transportation'' under title 49 of the U.S. 
Code. See Public Law 103-272 and H.R. Rep. 103-180. As a result, the 
general and permanent Federal railroad safety laws were repealed, and 
their provisions were revised without substantive change, enacted, and 
moved from title 45 (generally) to title 49. This 1994 law, commonly 
referred to as ``recodification,'' included the FRSA as a whole, which 
was recodified primarily in 49 U.S.C. chapter 201-213, including the 
criminal penalty provision at section 209(e) (45 U.S.C. 438(e)), which 
was recodified at 49 U.S.C. 21311. Recodification rendered this 
statutory citation in 49 CFR 233.13(b) outdated, and FRA had not sought 
to amend the regulatory provision prior to the NPRM in this rulemaking. 
Given that FRA has begun the present rulemaking addressing part 233, 
the agency views now as an appropriate time to update this citation in 
paragraph (b) of Sec.  233.13.
    The second of the statutory citations being updated is ``49 U.S.C. 
522(a),'' which provides an additional statutory authority for criminal 
penalties for violations of Sec.  233.9. Before the enactment of the 
FRSA in 1970, part 233 had been issued pursuant to section 25(h) of the 
Interstate Commerce Act (then codified at 49 U.S.C. 26(h)), the Signal 
Inspection Act of 1937, commonly referred to as the Signal

[[Page 37666]]

Inspection Act,\1\ as well as other statutory provisions.\2\ In 
particular, criminal penalties for violations of reporting requirements 
established by part 233 were available under the predecessor of 49 
U.S.C. 522,\3\ which reads as follows: ``A person required to make a 
report to the Secretary of Transportation . . . under section 504 of 
this title about transportation by rail carrier, that knowingly and 
willfully (1) makes a false entry in the report . . . or (5) files a 
false report . . . with the Secretary, shall be fined not more than 
$5,000, imprisoned for not more than 2 years, or both.'' In turn, 49 
U.S.C. 504 authorizes the Secretary to require periodic reports from 
rail carriers containing answers to questions asked by the Secretary, 
and is part of the statutory authority for part 233.
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    \1\ The Signal Inspection Act of 1937 was repealed in the 1994 
recodification of the rail safety laws, and its provisions were 
revised and reenacted without substantive change, codified at 49 
U.S.C. chapters 205 and 213. Public Law 103-272.
    \2\ See final rule amendments to 49 CFR part 233 at 37 FR 7096-
97 (Apr. 8, 1972) citing the following: ``AUTHORITY: The provisions 
of this Part 233 issued under secs. 12, 20, 24 Stat. 383, 386, as 
amended, sec. 441, 41 Stat. 498, as amended, secs. 6(e), (f), 80 
Stat. 937, 49 U.S.C. 12, 20, 26, 1655.''
    \3\ Section 522 of title 49, U.S. Code was previously codified 
at 49 U.S.C. 1655(f)(2) (section 6(f)(2) of the former Department of 
Transportation Act, Public Law 89-670 (Oct. 15, 1966)), which gave 
the same administrative powers exercised by the Interstate Commerce 
Commission under certain sections of title 49 to carry out duties 
transferred to the Secretary of Transportation by 49 U.S.C. 1655(e).
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    In 1998, Public Law 105-178, sec. 4015(c), 112 Stat. 412, struck 
the designation ``(a)'' for the first subsection of 49 U.S.C. 522 and 
struck former subsection (b) in its entirety. Accordingly, the current 
citation for the provision cited as ``49 U.S.C. 522(a)'' in paragraph 
(b) of Sec.  233.13 is being corrected to read as ``49 U.S.C. 522'' 
instead.
    FRA identified the need for this update to the citation to ``49 
U.S.C. 522(a)'' after the NPRM in this rulemaking was issued and is 
incorporating this change to Sec.  233.13(b) in this final rule. For 
clarity FRA is also updating the authority citation for part 233 by 
adding explicit citations to 49 U.S.C. 504 and 522. FRA is proceeding 
to a final rule without providing an NPRM or an opportunity for public 
comment on this aspect of the final rule. Public comment is unnecessary 
because, in making this revision, FRA is not exercising discretion in a 
way that could be informed by public comment. Therefore notice and 
comment procedures are ``impracticable, unnecessary, or contrary to the 
public interest'' within the meaning of the Administrative Procedure 
Act. 5 U.S.C. 553(b)(3)(B).

C. Responses to Public Comments

    FRA received comments in response to the NPRM from a single entity, 
the Brotherhood of Railroad Signalmen (BRS), which were submitted on 
August 19, 2013. Essentially, BRS questions the basis for eliminating 
the requirement for each railroad to file a ``Signal System Five-Year 
Report.'' BRS suggests that--rather than eliminating the five-year 
reporting requirement--FRA should be shifting its regulatory focus in 
the opposite direction by reverting back to an annual report, as was 
required prior to 1997.
    FRA currently receives more information about the signal systems of 
the Nation's railroads than it has ever received in the past. The 
agency regularly receives and reviews signal system reports through 
methods such as BSAPs and the various PTC plans, like the PTC 
Development Plan (PTCDP) and the PTC Implementation Plan (PTCIP). The 
receipt of this information makes FRA more knowledgeable than ever, and 
it also renders certain types of other information superfluous. Given 
the signal system information reported to FRA through these methods, 
FRA does not see a need to rely on the information in the ``Signal 
System Five-Year Report'' to further its safety mission. As a result, 
there is not a sufficient safety justification to continue requiring 
each railroad to file a ``Signal System Five-Year Report'' with FRA. 
Returning to a yearly reporting requirement would add even more 
regulatory costs without an offsetting safety benefit. Such a move 
would increase the reporting burden on the railroads, and conflict with 
the goals of E.O. 13610 and the Paperwork Reduction Act.
    BRS also questions FRA's statement in the NPRM that the feedback 
from the railroad industry and the general public indicated that the 
data contained in the ``Signal System Five-Year Report'' is not useful 
in providing up-to-date information about railroad signal systems. BRS 
contends that FRA's statement in the NPRM was not supported by 
documentation.
    The support for FRA's view of the apparent usefulness of the 
``Signal System Five-Year Report'' comes directly from the Signal 
Division of FRA's Office of Railroad Safety, which is responsible for 
handling the reports. Over the course of the last ten years, FRA has 
received exactly two requests for data from the report. One of these 
requests came from an attorney, and the other came from a signal 
supplier. The attorney took a copy of the ``Signal System Five-Year 
Report'' for a railroad. The attorney later called the FRA employee 
responsible for handling the report and said that the information in 
the report was out-of-date and not useful. The signal supplier had a 
similar reaction when FRA explained the contents of the report and did 
not even bother to take a copy of the data. The supplier further 
informed FRA that the data collected was not specific enough to be 
helpful.
    Finally, BRS argues that FRA should collect each railroad's signal 
system status in real time because it is necessary for FRA to keep 
abreast of upcoming technologies railroads intend to use. FRA 
recognizes the importance of staying current with the changing 
technologies. The agency is increasingly using electronic reporting 
methods to gather information in a more efficient and timely manner. 
And, as noted above, with the various reporting requirements of PTC 
(both subparts H and I of part 236), FRA is being informed more 
frequently than ever about the latest railroad signal systems with 
railroads filing Product Safety Plans (PSPs), PTCDPs, PTCIPs, and PTC 
Safety Plans (PTCSPs) about the upcoming PTC technologies the railroads 
plan to use and any signal system upgrades and/or changes that are 
being implemented to support the installation of PTC. As technology 
moves forward and resources change, there may be additional 
opportunities for FRA to take advantage real-time information 
collection provided that there is a legal basis for such information 
collection, but that does not have any bearing on the efficacy of 
continuing to require railroads to file the ``Signal System Five-Year 
Report.''
    In FRA's view, the ``Signal System Five-Year Report'' has a very 
limited usefulness. The feedback from the public tends to support FRA's 
view. Therefore, FRA has made a determination that the railroads that 
are subject to the Signal Systems Reporting Requirements in part 233 
should not have to commit resources to the time and expense of 
collecting the information required by the report.

II. Section-by-Section Analysis

PART 233--SIGNAL SYSTEMS REPORTING REQUIREMENTS

Section 233.9 Reports
    FRA is eliminating the ``Signal System Five-Year Report'' required 
by this section and reserving the section for future use. As stated in 
the NPRM, eliminating this reporting requirement will reduce the 
railroad industry's paperwork burden in a way that does

[[Page 37667]]

not endanger the public health, welfare, and safety or our environment. 
There are three specific reasons that support FRA's elimination of this 
reporting requirement. First, the information contained in the ``Signal 
System Five-Year Report'' quickly becomes obsolete. Second, FRA is 
better able to determine the status of a railroad's signal system 
through other more frequently collected types of information. Third, 
the ``Signal System Five-Year Report'' has limited usefulness to the 
railroad industry or the general public.
Section 233.13 Criminal Penalty
    After receiving no comments on this proposed amendment, FRA is 
making an administrative change to paragraph (b) of this section to 
correct two out-of-date statutory citations. Current paragraph (b) 
provides that it is unlawful to knowingly and willfully file a false 
report or other document required by part 233. Such conduct is 
punishable with a fine of $5,000 and up to two years of imprisonment. 
The paragraph cites to ``section 209(e) of the Federal Railroad Safety 
Act of 1970 (45 U.S.C. 438(e))'' as statutory authority for the 
criminal penalties; however, this statutory provision was repealed, 
revised without substantive change, reenacted, and recodified under a 
different title of the U.S. Code as part of a reorganization of the 
Federal railroad safety statutes by Congress. The provision is 
currently housed at 49 U.S.C. 21311. This final rule corrects the 
outdated citation in paragraph (b) by replacing ``45 U.S.C. 438(e)'' 
with the current citation, which is ``49 U.S.C. 21311.'' Paragraph (b) 
also cites to ``49 U.S.C. 522(a)''; however, this provision has been 
redesignated as simply ``49 U.S.C. 522'' instead. The references in 
paragraph (b) are updated accordingly to reflect the current statutory 
citations. These updates also are reflected in changes to the 
``Authority'' listed for part 233 to accurately state the statutory 
bases for this regulatory provision.
Appendix A to Part 233--Schedule of Civil Penalties
    FRA is amending appendix A to part 233, which contains a schedule 
of civil penalties for use in connection with this part, in this final 
rule to remove and reserve the entry for Sec.  233.9, in accordance 
with other amendments being prescribed in this rulemaking.

III. Regulatory Impact

A. Executive Orders 12866 and 13563 and DOT Regulatory Policies and 
Procedures

    This rulemaking eliminates the requirement in Sec.  233.9 that each 
railroad subject to part 233 file with FRA a ``Signal System Five-Year 
Report.'' The final rule has been evaluated in accordance with existing 
policies and procedures. It is not considered a significant regulatory 
action under E.O. 12866 and E.O. 13563. This rule also is not 
significant under the DOT Regulatory Policies and Procedures. 44 FR 
11034 (Feb. 26, 1979). A regulatory impact analysis addressing the 
economic impact of this final rule has been prepared and placed in the 
docket.
    As part of the regulatory evaluation, FRA has explained the 
benefits of this final rule and provided monetized assessments of the 
value of such benefits. The final rule eliminates the cost associated 
with submitting a ``Signal System Five-Year Report.'' Each railroad 
currently expends approximately one hour of labor to prepare and submit 
the report to FRA every five years. For the 20-year period analyzed, 
the estimated cost savings will be $234,265. The present value of this 
is $121,904 (using a 7 percent discount rate). This regulation only 
reduces the burden on railroads; it does not impose any additional 
costs. Therefore, the net benefit of this final rule will be $121,904 
(present value, 7 percent).

B. Regulatory Flexibility Act and Executive Order 13272

    The Regulatory Flexibility Act (RFA), Public Law 96-354, as 
amended, and codified as amended at 5 U.S.C. 601-612, and E.O. 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'' for purposes of the 
RFA. An agency must prepare a final regulatory flexibility analysis 
unless it determines and certifies that a rule is not expected to have 
a significant impact on a substantial number of small entities. 
Pursuant to the RFA, 5 U.S.C. 605(b), the Administrator of FRA 
certifies that this final rule will not have a significant economic 
impact on a substantial number of small entities. This final rule will 
affect all railroads, including small railroads. However, the effect on 
these railroads will be purely beneficial and not significant, as it 
will reduce their labor burden by eliminating the need to file a 
``Signal System Five-Year Report.''
    The term ``small entity'' is defined in 5 U.S.C. 601. Section 
601(6) defines ``small entity'' as having the same meaning as ``the 
terms `small business', `small organization' and `small governmental 
jurisdiction' defined in paragraphs (3), (4), and (5) of this 
section.'' In turn, section 601(3) defines a ``small business'' as 
generally having the same meaning as ``small business concern'' under 
Section 3 of the Small Business Act. This includes any a small business 
concern that is independently owned and operated, and is not dominant 
in its field of operation. Next, section 601(4) defines ``small 
organization'' as generally meaning any not-for-profit enterprises that 
is independently owned and operated, and not dominant in its field of 
operations. Additionally, section 601(5) defines ``small governmental 
jurisdiction'' in general to include governments of cities, counties, 
towns, townships, villages, school districts, or special districts with 
populations less than 50,000.
    The U.S. Small Business Administration (SBA) stipulates ``size 
standards'' for small entities. It provides that the largest that a 
for-profit railroad business firm may be (and still be classified as a 
``small entity'') is 1,500 employees for ``Line-Haul Operating'' 
railroads, and 500 employees for ``Short-Line Operating'' railroads. 
See ``Size Eligibility Provisions and Standards,'' 13 CFR part 121 
subpart A.
    Under exceptions provided in section 601, Federal agencies may 
adopt their own size standards for small entities in consultation with 
SBA, and in conjunction with public comment. Pursuant to the authority 
provided to it by SBA, FRA has published a ``Final Policy Statement 
Concerning Small Entities Subject to the Railroad Safety Laws,'' which 
formally establishes small entities as including, among others, the 
following: (1) The railroads classified by the Surface Transportation 
Board as Class III; and (2) commuter railroads ``that serve populations 
of 50,000 or less.'' \4\ See 68 FR 24891 (May 9, 2003)

[[Page 37668]]

codified at appendix C to 49 CFR part 209. Currently, the revenue 
requirements are $20 million or less in annual operating revenue, 
adjusted annually for inflation. The $20 million limit (adjusted 
annually for inflation) is based on the Surface Transportation Board's 
threshold of a Class III railroad, which is adjusted by applying the 
railroad revenue deflator adjustment.\5\ For further information on the 
calculation of the specific dollar limit, please see 49 CFR part 1201. 
FRA is using this definition of ``small entity'' for this final rule.
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    \4\ ``In the Interim Policy Statement [62 FR 43024 (Aug. 11, 
1997)], FRA defined `small entity,' for the purpose of communication 
and enforcement policies, the Regulatory Flexibility Act, 5 U.S.C. 
601 et seq., and the Equal Access for Justice Act 5 U.S.C. 501 et 
seq., to include only railroads which are classified as Class III. 
FRA further clarified the definition to include, in addition to 
Class III railroads, hazardous materials shippers that meet the 
income level established for Class III railroads (those with annual 
operating revenues of $20 million per year or less, as set forth in 
49 CFR 1201.1-1); railroad contractors that meet the income level 
established for Class III railroads; and those commuter railroads or 
small governmental jurisdictions that serve populations of 50,000 or 
less.'' 68 FR 24892 (May 9, 2003). ``The Final Policy Statement 
issued today is substantially the same as the Interim Policy 
Statement.'' 68 FR 24894.
    \5\ In general, under 49 CFR 1201.1-1, the class into which a 
railroad carrier falls is determined by comparing the carrier's 
annual inflation-adjusted operating revenues for three consecutive 
years to the following scale after the dollar figures in the scale 
are adjusted by applying the railroad revenue deflator formula:
    [cir] Class I--$250 million or more;
    [cir] Class II--more than $20 million, but less than $250 
million; and
    [cir] Class III--$20 million or less.
    49 CFR 1201.1-1(a), (b)(1). STB's General Instructions at 1-1 
state that carriers are grouped into three classes for purposes of 
accounting and reporting. The three classes are as follows:
    Class I: Those carriers having annual carrier operating revenues 
of $250 million or more after applying STB's railroad revenue 
deflator formula shown in Note A.
    Class II: These carriers have annual carrier operating revenues 
of less than $250 million but in excess of $20 million after 
applying STB's railroad revenue deflator formula.
    Class III: These carriers have annual carrier operating revenues 
of $20 million or less after applying STB's railroad revenue.
    The STB Web site indicates that the scale for 2011 is as 
follows:
    [cir] Class I--$433,211,345 or more;
    [cir] Class II--more than $34,656,908, but less than 
$433,211,345; and
    [cir] Class III--$34,656,908 or less.
    See also 78 FR 21007 (Apr. 8, 2013). It should be noted that 
there are some exceptions to this general definition of the three 
classes of carriers. As one important example, ``[f]amilies of 
railroads operating within the United States as a single, integrated 
rail system will be treated as a single carrier for classification 
purposes.'' 49 CFR 1201-1.1(b)(1). As another example, ``[a]ll 
switching and terminal companies, regardless of their operating 
revenues, will be designated Class III carriers.'' 49 CFR 1201-
1.1(d).
---------------------------------------------------------------------------

    FRA estimates that there are 763 railroads that operate on standard 
gage track that is part of the general railroad system of 
transportation and therefore subject to part 233, see 49 CFR 233.3, all 
of which will be affected by this final rule. Of those railroads, 44 
are Class I freight railroads, Class II freight railroads, commuter 
railroads serving populations of 50,000 or more, or intercity passenger 
railroads (i.e., the National Railroad Passenger Corporation (Amtrak), 
a Class I railroad, and the Alaska Railroad, a Class II railroad). The 
remaining 719 railroads are therefore assumed to be small railroads for 
the purpose of this assessment, all of which will be impacted by this 
final rule. However, the impact on these small railroads will not be 
significant. No other small entities will be affected by this final 
rule. FRA estimates that each report takes approximately one labor hour 
to prepare and submit to FRA. The elimination of this reporting 
requirement will save each railroad one hour of labor every five years. 
Therefore, this final rule will have a positive effect on these 
railroads, saving each railroad approximately $307 (non-discounted) in 
labor costs over the 20-year analysis. Since this amount is extremely 
small and entirely beneficial, FRA concludes that this final rule will 
not have a significant impact on these railroads.
    Pursuant to the RFA, FRA certifies that this final rule will not 
have a significant impact on a substantial number of small entities. 
Although a substantial number of small railroads will be affected by 
the final rule, none of these entities will be significantly impacted.

C. 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 defined in the E.O. 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 the final 
rule will 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 
authorizing part 233, including specifically the former FRSA, repealed 
and recodified at 49 U.S.C 20106, and the former Signal Inspection Act 
of 1937, repealed and recodified at 49 U.S.C. 20501-20505. 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 Federal 
statutes authorizing part 233, including the former FRSA and the former 
Signal Inspection Act of 1937. Accordingly, FRA has determined that 
preparation of a federalism summary impact statement for this final 
rule is not required.

D. International Trade Impact Assessment

    The Trade Agreement Act of 1979, Public Law 96-39, 93 Stat. 144 
(July 26, 1979), prohibits Federal agencies from engaging in any 
standards or related activities that create unnecessary obstacles to 
the foreign commerce of the United States. Legitimate domestic 
objectives, such as safety, are not considered unnecessary obstacles. 
The statute also requires consideration of international standards and 
where appropriate, that they be the basis for U.S. standards. This 
rulemaking is purely domestic in nature and is not expected to affect 
trade opportunities for U.S. firms doing business overseas or for 
foreign firms doing business in the United States.

[[Page 37669]]

E. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501 et 
seq., Federal agencies must obtain approval from the Office of 
Management and Budget for each collection of information they conduct, 
sponsor, or require through regulations. FRA has carefully reviewed the 
final rule and any potential PRA implications. Since the present 
rulemaking will eliminate the reporting requirement associated with 
Sec.  233.9 in its entirety for April 2017 and thereafter, there is no 
change to the currently approved burden under OMB No. 2130-0006.
    Organizations and individuals desiring to obtain a copy of the 
above currently approved collection of information should contact Mr. 
Robert Brogan or Ms. Kimberly Toone via mail at FRA, 1200 New Jersey 
Ave. SE., Third Floor, Washington, DC 20590. Copies may also be 
obtained by telephoning Mr. Brogan at (202) 493-6292 or Ms. Toone at 
(202) 493-6132. (These numbers are not toll-free.) Additionally, copies 
may be obtained via email by contacting Mr. Brogan or Ms. Toone at the 
following addresses: Robert.Brogan@dot.gov; Kim.Toone@dot.gov.

F. Compliance With the Unfunded Mandates Reform Act of 1995

    Pursuant to 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, see 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. The final rule will not 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.

G. Environmental Assessment

    FRA has evaluated this final rule 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 final rule 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. See 64 FR 28547 (May 26, 1999).
    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 that this final 
rule is not a major Federal action significantly affecting the quality 
of the human environment.

H. Energy Impact

    E.O. 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 E.O., 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)(i) [t]hat is a significant regulatory action under E.O. 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 E.O. 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 final rule is not a ``significant energy action'' 
within the meaning of E.O. 13211.

I. Privacy Act

    FRA wishes to inform all potential petitioners for reconsideration 
of the final rule or commenters on any petition for reconsideration of 
the final rule that anyone is able to search the electronic form of all 
comments received into any agency docket 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, see 65 FR 19477-78, or you may visit http://www.regulations.gov/#!privacyNotice.

List of Subjects in 49 CFR Part 233

    Penalties, Railroad safety, Reporting and recordkeeping 
requirements.

The Final Rule

    For the reasons discussed in the preamble, FRA amends part 233 of 
chapter II, subtitle B of title 49 of the Code of Federal Regulations 
as follows:

PART 233--[AMENDED]

0
1. The authority citation for part 233 is revised to read as follows:

    Authority:  49 U.S.C. 504, 522, 20103, 20107, 20501-20505, 
21301, 21302, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.


Sec.  233.9  [Removed and Reserved]

0
2. Section 233.9 is removed and reserved.

0
3. Paragraph (b) of Sec.  233.13 is revised as follows:


Sec.  233.13  Criminal penalty.

* * * * *
    (b) Files a false report or other document required to be filed by 
this part is subject to a $5,000 fine and 2 years imprisonment as 
prescribed by 49 U.S.C. 522 and 49 U.S.C. 21311.

Appendix A to Part 233--[Amended]

0
4. Appendix A is amended by removing and reserving the entry for 
``233.9 Annual reports''.

    Issued in Washington, DC, on June 24, 2014.
Joseph C. Szabo,
Administrator.
[FR Doc. 2014-15336 Filed 7-1-14; 8:45 am]
BILLING CODE 4910-06-P


