[Federal Register Volume 62, Number 111 (Tuesday, June 10, 1997)]
[Notices]
[Pages 31655-31661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15073]


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DEPARTMENT OF TRANSPORTATION

Federal Highway Administration
[FHWA Docket No. Motor Carrier-96-40]


Motor Carrier Regulatory Relief and Safety Demonstration Project

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice of final determination.

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SUMMARY: The FHWA announces its final determination establishing the 
Motor Carrier Regulatory Relief and Safety Demonstration Project 
(``Project''). The Project will allow qualified motor carriers 
operating light to medium weight commercial motor vehicles (CMVs) in 
interstate commerce to qualify for exemption from certain Federal Motor 
Carrier Safety Regulations (FMCSRs) for a three year period.

EFFECTIVE DATE: June 10, 1997.

FOR FURTHER INFORMATION CONTACT: Mr. Robert F. Schultz, Jr., Office of 
Motor Carrier Research and Standards, (202) 366-4009, or Ms. Grace 
Reidy, Office of the Chief Counsel, (202) 366-0834, Federal Highway 
Administration, DOT, 400 Seventh Street, SW., Washington, WASHINGTON, 
DC 20590. Office hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday 
through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: On November 28, 1995, the President signed 
the National Highway System Designation Act of 1995 [Pub. L. 104-59, 
109 Stat. 568 (NHS Act)]. Section 344 of the NHS Act, now codified at 
49 U.S.C. 31136, mandates that the FHWA implement a pilot program for 
motor carriers operating CMVs with a gross vehicle weight rating (GVWR) 
between 10,001 and 26,000 pounds, inclusive, in interstate commerce, to 
qualify for exemption from certain of the FMCSRs (49 CFR Part 350 et 
seq.). Notice of the Project (notice) was published in the Federal 
Register on August 28, 1996 (61 FR 44385). The comment period closed on 
September 27, 1996. In response to docket comments which raised the 
issue of the relation between this Project and the existing motor 
carrier regulations of the States, a supplemental notice was published 
on October 29, 1996 (61 FR 55835), seeking comment on the appropriate 
use of Federal preemption to resolve any conflicts between the Federal 
and State provisions. The comment period for that notice expired 
November 29, 1996.

Comments

    The FHWA received 27 comments in response to the Notice. The 
commenters included 9 motor carriers, 12 trade associations, 3 safety 
consultants or safety interest groups, 2 States and a trade union. The 
vast majority of the comments endorsed the ``New Era'' which the FHWA 
outlined in the Notice. In particular, the use of performance-based 
standards received strong support.
    However, many commenters believed that the design of the proposed 
Project would discourage participation in the Project by motor 
carriers. The explanation most frequently offered for this conclusion 
was that the ``paperwork'' requirements of the Project, both at the 
time of application and during the Project, were too burdensome, and 
outweighed the regulatory relief which the Project motor carrier would 
enjoy. The Project as proposed required each applicant motor carrier to 
provide the FHWA, at the time of application, with a signed 
certification of certain facts, a Safety Control Plan, a roster of 
eligible drivers, and a calculation of its accident rate over the 
preceding three years. The motor carrier would also have to verify that 
the driving record of each driver whom it proposed for the Project did 
not contain any convictions of certain prohibited offenses. In 
addition, the motor carrier would have to have vehicle maintenance 
records on hand for the three years preceding the Project. During the 
Project, the FHWA proposal required a Project participant to agree to 
provide the FHWA with certain information concerning any accidents in 
which the motor carrier was involved, and, in that event, a re-
calculation of the motor carrier's accident rate for the preceding 
three years. The FHWA also proposed that Project motor carriers provide 
the names of new drivers which the motor carrier wished included in the 
Project, as well as names of drivers who drop out of the Project or who 
cease to exclusively operate motor vehicles with

[[Page 31656]]

a GVWR between 10,001 and 26,000 pounds, inclusive. Vehicle maintenance 
records were also to be maintained and submitted during the Project. In 
some cases, such as supplying accident information, the reporting was 
to be within 10 days; in other cases, a quarterly basis was proposed.
    The commenters most strenuously objected to the totality of these 
``paperwork'' requirements. The driver information requirements were 
singled out by a significant segment of the commenters. They believed 
that the high turnover rate of drivers which many motor carriers 
experience would make the driver roster requirement overly burdensome. 
It was suggested that detailed driver information should be provided 
only with regard to those drivers who are convicted of certain moving 
violations, or who are involved in an accident.
    Continuing exemption of motor carriers after the three year period 
of this Project also drew comment. Commenters believed that the Project 
would be more attractive if a commitment was made to extend the Project 
beyond three years. They also believed that participants should be able 
to expect that the safety management systems which they put in place 
for the Project would not become obsolete when the Project terminates.
    Some of the Project exemptions were given little value by the 
commenters. For instance, it was suggested that most motor carriers 
would continue to require a pre-employment road test for new hires even 
if they were exempt from the rule requiring one. It was also stated 
that insurance carriers would continue to require motor carriers to 
obtain an application for employment for each new employee, even if the 
Federal requirement is waived. Some commenters also felt that the 
creation of an exemption from the regulation requiring newly-hired 
drivers to furnish a list of motor vehicle violations was offset by the 
Project requirement that Project motor carriers examine the driving 
history of their Project drivers to verify that each driver is free of 
any disqualifying violations.
    The Project as proposed created various exemptions from the record 
of duty status provisions, but did not remove the actual hours-of-
service limitations. The failure to take this final step drew 
criticism, particularly from those who believe that the spirit, if not 
the letter, of the NHS Act mandated such relief. On the other hand, 
criticism also came from those who believed that neither the records of 
duty status, nor the hours-of-service limitations, should be lifted, 
because the FHWA would be unable to detect, or prosecute, violations of 
the hours-of-service rules.
    Many commenters believed that relief from another provision of the 
FMCSRs should have been proposed: The requirement that drivers undergo 
a periodic examination by a licensed medical practitioner. The 
commenters appeared to be saying that because of the differences 
between the typical day-to-day activity of drivers of Project vehicles, 
and drivers of vehicles with a GVWR in excess of 26,000 pounds, medical 
examination was less critical for the former. These commenters focused 
upon the fact that drivers operating CMVs of the class eligible for 
this Project normally engage in short-haul operations. Such operations, 
the commenters contend, are distinguished from long-haul operations by 
the fact that (1) The short-haul driver is on duty during more normal 
work hours, and thus is less inclined to experience the fatigue of 
evening or graveyard shifts, and, (2) the short-haul driver experiences 
more frequent breaks, spends less time actually behind the wheel, and 
drives fewer miles on an annual basis. These commenters felt that it 
was the intent of Congress that this Project provide an opportunity for 
relief from the medical examination requirement.
    The Project as proposed also outlined certain eligibility criteria. 
Some commenters believed that the requirement that the police-reported 
accident rate of Project motor carriers not exceed 1.6 per million 
vehicle miles traveled (for the most recent 36 month period) would 
unfairly disqualify some motor carriers. The inequity would occur, they 
averred, because the proposal does not take accident culpability into 
account, and thus an accident in which a motor carrier's driver is 
totally free of negligence could nonetheless result in the removal of 
that motor carrier from the Project. Other commenters were concerned 
that a motor carrier that had not accumulated 1 million vehicle miles 
traveled would not be eligible, or would become ineligible when a 
single accident occurred.
    The requirement that Project drivers not operate CMVs other than 
those which have a GVWR between 10,001 and 26,000 pounds, drew 
criticism, primarily from the utility industry, which is characterized 
by a high percentage of drivers who ``cross over'' to operate CMVs in 
excess of 26,000 pounds GVWR. The FHWA also proposed that Project 
drivers would not be eligible if they had been convicted in the past 
three years of certain violations of law. Some commenters expressed the 
belief that all moving violations should be taken into account in 
determining the eligibility of drivers.
    The FHWA also proposed that Project motor carriers be required to 
maintain and submit CMV maintenance records. Commenters expressed 
concern that this requirement was particularly burdensome and 
eliminated the benefit afforded by the Project exemptions addressing 
vehicle maintenance records.

FHWA Response

    After careful review, the FHWA has decided to make two changes in 
the Project to alleviate the recordkeeping requirements proposed in the 
original notice. The first is the elimination of the requirement that 
motor carriers maintain and submit vehicle maintenance records. The 
benefit to be derived from this information is not sufficiently crucial 
to the monitoring, or the evaluation, of the Project to require its 
inclusion. The second change is to alter the frequency of the periodic 
calculation of the accident rate, and its submission to the FHWA. The 
calculation of accidents per million vehicle miles traveled will now be 
required on a semi-annual basis, rather than quarterly as proposed. The 
calculation will also, as proposed, be required in the event of an 
accident involving the motor carrier.
    The FHWA is aware that this Project imposes special recordkeeping 
and reporting requirements upon participating motor carriers. The FHWA 
believes that the remaining paperwork requirements of the Project are 
absolutely necessary to conduct this Project and ensure the safety of 
the public on the highways. For instance, in the absence of a roster of 
the drivers participating in the Project, the Agency would be unable to 
assist enforcement personnel at roadside inspection locations. 
Confronted with a driver who has no Record of Duty Status, as required 
by 49 CFR 395.8(k), but who professes to be a Project driver and thus 
exempt from that section, safety inspectors or other enforcement 
officials would be unable to verify the exempt status of that driver. 
The Agency also believes that most of the remaining records which are 
required by this Project are routinely maintained by most motor 
carriers in the course of their day-to-day operations.
    The FHWA is also relaxing the proposed exclusion from the Project 
of CMV drivers who ``crossover'' and operate CMVs with a GVWR greater 
than 26,000 pounds. The FHWA believes that such activity can be 
permitted, so long as its occurrence for any particular driver is 
frequent, and

[[Page 31657]]

measurable; that is, the FHWA will permit a Project motor carrier to 
direct Project drivers to operate vehicles outside of the Project 
weight class if: (a) the driver operates Project vehicles at least 25% 
of the time, and (b) the motor carrier can provide the FHWA with the 
total number of vehicle miles driven outside the Project, and the total 
number of miles driven within the Project, for each such driver. The 
FHWA can take such information into account in conducting its 
evaluation of the Project, and thus preserve the integrity of that 
process. Motor carriers and their drivers are advised to be alert to 
the fact that when activity is conducted outside the Project, it is 
subject to all provisions of the FMCSRs. For instance, a driver who 
operates a CMV over 26,000 pounds GVWR must, in accordance with 49 CFR 
395.8, be able to account for his or her hours of service for an 
earlier period of up to 8 days. A ``crossover'' Project driver will 
immediately be required to account for his/her hours of service over 
the preceding 8 days, even though the driver during this earlier period 
was exempt from the requirements of 395.8 by virtue of being engaged in 
Project activity.
    The FHWA is cognizant of the economic realities which underlie the 
suggestion that it should assure motor carriers that the exemptions of 
this Project will continue beyond the three-year life of this pilot. It 
is possible that the exemptions will continue in some form; however, 
the case for permanent regulatory change must be made by appropriate 
supporting data. The Agency realizes that strong participation in this 
pilot may generate data which show the way to meaningful, performance-
based improvements of the current regulatory scheme. The agency cannot 
now predict what the Project data will show, or what the overall 
regulatory landscape will look like down the road. After the first two 
years of the Project, the FHWA intends to analyze the Project data. 
Permanent rules resembling the guidelines of this Project may be 
indicated at that time.
    The provisions of the FMCSRs governing maximum driving time provide 
the best available standard for assuring that fatigued drivers are kept 
off the public highways. In order for the FHWA to exempt Project motor 
carriers and their drivers from these provisions, the agency must 
ensure that safety management controls are available which will achieve 
a level of operational safety equal to or greater than that resulting 
from compliance with these provisions. Despite the invitation to 
comment in the original Notice, no commenter has proposed that 
alternate safety controls exist. On September 7, 1995, the FHWA sought 
public input (60 FR 46682) with regard to advanced driver and vehicle 
technologies, but none addressing maximum driving time were produced.
    However, the FHWA also believes that the elimination of the 
requirement for records of duty status (log books), time cards or 
interactive on-board recording devices for qualified Project motor 
carriers, does not place the motoring public in danger. Safety 
investigators will rely more heavily upon other evidence, such as, fuel 
and toll receipts, bills of lading, and trip reports, to determine if 
on-duty or driving time violations are present. Such evidence is 
currently employed to corroborate hours-of-service violations, 
particularly when logbooks appear to be falsified.
    The FHWA does not believe that the requirement for a periodic 
medical examination should be susceptible to relief under the Project. 
It may be true that the typical operator of a CMV of the weight class 
eligible for this Project engages in short-haul operations, i.e. works 
normal daytime hours, experiences frequent breaks from driving, spends 
less time behind the wheel, and drives fewer total miles than many 
long-haul operators. But accidents involving this class of drivers 
occur more frequently than accidents involving long-haul drivers. The 
biennial medical examination provides a minimal check of the physical 
condition of the individuals operating these vehicles, which, though 
often referred to as ``light- to medium-sized trucks,'' are nonetheless 
capable of causing serious personal injury and property damage. For 
this reason, and because the FHWA is reviewing medical standards for 
all CMV operators outside of this Project, the agency believes that 
relief from this provision is not appropriate under this Project.
    The FHWA believes that participation in this Project should be 
limited to those motor carriers which have exemplary safety histories. 
The Agency further believes that the best measure of a exemplary 
history would be an accident rate equal to or better than that of the 
top 25% of all motor carriers. The FHWA estimates this accident rate to 
be 1.6, or fewer, crashes per 1 million vehicle miles of travel, based 
on analysis of the nationwide police-reported crash experience of the 
types of vehicles that are expected to participate in this Project, and 
the FHWA's estimates of the miles traveled annually by such vehicles.
    This crash rate is derived from the most recent three years of 
information for straight trucks included in the General Estimates 
System (GES) of the National Highway Traffic Safety Administration, and 
from mileage statistics found in the FHWA's ``1994 Highway 
Statistics,'' Publication No. FHWA-PL-95-042. The FHWA employed data on 
straight trucks from the GES to ensure that all types of police-
reported crashes are taken into consideration. The FHWA believes that 
in order to definitively pinpoint those motor carriers with exemplary 
safety histories, all types of crashes, not just those which may be 
defined as preventable or recordable, must be taken into account. While 
some commenters were opposed to the rate and considered it an obstacle 
to participation in the Project, no commenter submitted data that would 
support a different rate.
    The FHWA believes that many of the motor carriers which will 
volunteer for the Project will have operations in urban areas and may 
not accumulate vehicle miles of travel in excess of 1 million. The 
eligibility criterion for participation in the Project concerning the 
police-reported accident rate has been amended to clarify that motor 
carriers with less than a million miles over the past 36 months are 
eligible if they have less than 2 police-reported accidents in that 
period. The same standard applies to those motor carriers with which 
have been in business less than 36 months. When combined with the 
exclusion of those motor carriers with an ``Unsatisfactory'' Safety 
Rating, participation in the Project is effectively limited to motor 
carriers with exemplary safety histories.

Preemption

    As mentioned earlier, in response to docket comments raising the 
issue of the relation between the requirements of this Project and the 
existing motor carrier regulations of the States, a supplemental notice 
was published on October 29, 1996 (61 FR 55835) seeking comment on the 
appropriate use of Federal preemption in this Project. Eight Comments 
to the supplemental notice were received. Five comments were from trade 
groups, one from a motor carrier, one from a union, and one from a 
safety advocacy group. Four were in favor of the exercise of Federal 
preemption, two were opposed to it, and two offered no opinion. No 
comments were received from States.
    After review of the comments, the FHWA remains convinced that it 
has the authority to preempt the provisions of State laws which 
conflict with this Project. However, the FHWA also

[[Page 31658]]

remains convinced that it will be unnecessary to invoke this authority. 
For some time, through various Federal initiatives, foremost of which 
is the program of grants to States known as the Motor Carrier Safety 
Assistance Program (MCSAP), the States and the Federal government have 
been working together to achieve a high degree of uniformity between 
State and Federal enforcement of motor carrier regulatory compliance. 
At the same time, the high degree of communication between these 
parties has resulted in greater familiarity with the operations of one 
another. Thus a new Federal program, though it may necessitate 
corresponding changes in State activity, is more readily understood by 
State officials. The FHWA also believes that the Federal-State 
partnership is capable of absorbing the changes which this Project 
imposes upon the enforcement community.

Changes From Notice of August 28, 1996 (61 FR 44385)

    The following are the significant changes to the proposal for the 
Project outlined in the notice and request for comments dated August 
28, 1996:
    1. Motor carriers participating in the Project will not be required 
to collect, or submit, vehicle maintenance records, as a condition of 
participation in the project.
    2. Calculation and submission of the accident rate by each 
participating motor carrier will be required on a semi-annual basis, as 
opposed to quarterly. The requirement to submit a re-calculation of the 
revised rate following each accident has been retained.
    3. The eligibility criterion for participation in the Project 
concerning the police-reported accident rate has been amended to 
clarify that motor carriers with less than a million miles over the 
past 36 months are eligible if they have less than 2 police-reported 
accidents in that period. The same standard applies to those motor 
carriers which have been in business less than 36 months.
    4. An occasional use of a Project driver ``crossing over'' to 
operate CMVs with a GVWR in excess of 26,000 pounds is permissible; 
however, only his or her activities while operating CMVs having a GVWR 
between 10,001 and 26,000 pounds, inclusive, will be considered as part 
of the project data.
    For the reasons set forth in the preamble, the FHWA hereby presents 
the following as the final determination of the design of the Motor 
Carrier Regulatory Relief and Safety Demonstration Project. The FHWA 
will grant to eligible motor carriers, for the term of the Project 
only, exemption from those requirements of the FMCSRs outlined under 
the caption ``Project Exemptions.'' The exemptions will only apply to 
the eligible drivers identified by the motor carrier. In order to 
participate in the Project, a motor carrier will have to meet the 
requirements outlined under the caption ``Criteria for Admission To The 
Project,'' and also must submit the appropriate documentation outlined 
under the caption ``Applying For The Project.'' Once admitted to the 
Project, each participating motor carrier agrees to honor the reporting 
and submission requirements outlined under the caption ``The 
Agreement.''
    The FHWA will evaluate the Project data throughout the Project, 
with particular focus upon FHWA's regulatory reinvention and zero-base 
initiatives. In addition, at the conclusion of the Project, the FHWA, 
in accordance with the NHS Act, will use this data to conduct a zero-
base review of the need for, and the costs and benefits of, all of the 
FMCSRs.

Project Exemptions

    Qualified motor carriers will be exempt from certain requirements 
of the FMCSRs while participating in the Project. All motor carriers 
participating in the Project will be exempt from the same regulations; 
motor carriers may not pick and choose the regulations from which they 
wish to be exempt.
    The FHWA, while granting these exemptions to qualified, exemplary 
motor carriers, has established certain mechanisms to assist the agency 
in monitoring the level of safety of these motor carriers. These 
mechanisms are more fully explained later in this notice. Briefly, they 
are:
    (1) Each project motor carrier must establish, and submit to the 
agency, a Safety Control Plan which details the steps it intends to 
take during the Project to ensure that it maintains or improves the 
level of operating safety which it experienced prior to the Project,
    (2) Project motor carriers must advise the FHWA within ten business 
days of the occurrence of any police-reported accidents involving 
Project drivers. At the same time the Project motor carrier must submit 
a re-calculation of its ratio of accidents to vehicle miles, and if it 
is greater than the Project standard (1.6), the motor carrier will be 
subject to removal from the Project, and
    (3) the FHWA will monitor the safety performance of Project motor 
carriers, including random checks of various state and Federal 
databases.
    Project motor carriers, and their eligible drivers, will, with 
regard to the operation in interstate commerce of CMVs with a gross 
vehicle weight rating (GVWR) between 10,001 and 26,000 pounds, 
inclusive, be exempt from the following requirements of the FMCSRs:

Driver Qualifications

    Newly-hired drivers are not required to prepare, or furnish to the 
employing motor carrier, a list of violations of motor vehicle laws, or 
a certificate in lieu thereof, in accordance with 49 CFR 391.11(b)(8). 
(However, motor carriers are still required to obtain an official state 
driving record as required by 49 CFR 391.23). Drivers are also not 
required to successfully complete a Driver's Road Test, or furnish an 
Application For Employment, in accordance with 49 CFR 391.11(b)(10) and 
391.11(b)(11). In addition, motor carriers do not have to maintain 
complete Driver Qualification Files on each driver in accordance with 
49 CFR 391.51.

Driver Hours-Of-Service

    Project drivers are not required to comply with record of duty 
status regulations, whether this entails maintenance of a logbook in 
accordance with 49 CFR 395.8, use of a timecard in accordance with 49 
CFR 395.1(e), or the use of an interactive automatic on-board recording 
device in accordance with 49 CFR 395.15. However, Project motor 
carriers and drivers must observe the provisions governing maximum 
driving time, and the use of ill or fatigued operators in accordance 
with 49 CFR 395.3 and 392.3. Additionally, project motor carriers and 
their drivers do not forfeit any other exemptions available under FHWA 
regulations.

CMV Inspections

    While participating in the Project, motor carriers are exempt from 
those requirements pertaining to CMV inspection records, and their 
retention in accordance with 49 CFR 396.3 (b) and (c). Exemption is 
also granted from the regulations pertaining to driver vehicle 
inspection reports and the driver vehicle inspection, 49 CFR 396.11 and 
396.13 (b) and (c). In addition, driveaway-towaway inspections are not 
required of Project motor carriers or their drivers, nor are periodic 
inspections and periodic inspection reports, 49 CFR 396.15, 396.17 and 
396.21. However, motor carriers are not relieved of their 
responsibility to inspect, repair and maintain their motor vehicles in 
accordance with 49 CFR 396.3(a). Furthermore, the Project driver and 
CMVs are subject to safety inspection at roadside locations.

[[Page 31659]]

Accident Information

    Project motor carriers are exempt from the requirement that they 
maintain an accident register in accordance with 49 CFR 390.15 (b)(1) 
and (b)(2).

Criteria for Admission to the Project

    Each motor carrier applying for admission to the Project must 
satisfy the following criteria:
    Criterion 1: The motor carrier operates in interstate commerce.
    Criterion 2: The motor carrier operates CMVs having a GVWR between 
10,001 and 26,000 pounds, inclusive. However, CMVs designed to 
transport more than 15 passengers (including the driver), or used in 
transporting hazardous materials in placardable quantities, as defined 
in regulations issued by the Secretary of Transportation under the 
Hazardous Materials Transportation Act (49 U.S.C. 5101, et seq.), are 
not eligible to participate in this Project.
    Criterion 3: The motor carrier does not currently have a Safety 
Fitness Rating of ``Unsatisfactory'' issued by the FHWA. Motor carriers 
who have not received a safety rating issued by the FHWA are eligible 
for this Project.
    Criterion 4: For CMVs eligible for this Project, the motor carrier 
has an accident rate equal to or less than 1.6 police-reported 
accidents per million vehicle miles traveled, averaged over the most 
recent 36 months. For example, a motor carrier which has experienced 4 
police-reported accidents, and 3 million vehicle miles traveled, by 
eligible CMVs, over the most recent 36 months, would be eligible for 
the Project, based upon the following calculation:
    4 divided by 3 equals 1.33, which is less than 1.6. This 
calculation is to be based solely on the accidents and mileage of those 
CMVs which have a GVWR between 10,001 and 26,000 pounds, inclusive. In 
addition, the term ``accident'' referenced in 390.5 is not applicable 
to this calculation; a ``police-reported accident'' is any accident 
which results in the filing of an official report by a Federal, State, 
local or tribal law enforcement agency. Motor carriers with less than 
one million vehicle miles traveled in the most recent 36 months, are 
eligible for the Project if they have not more than 1 police-reported 
accidents in that period of time. Two or more police-reported accidents 
involving this type of motor carrier will result in ineligibility for 
this Project.
    Criterion 5: The motor carrier is active on a year-round basis. 
``Seasonal'' motor carriers are not eligible for this Project.
    Criterion 6: The drivers submitted by the motor carrier for 
participation in the Project have not been convicted, in the past three 
years, of:
    1. An offense that ``directly arose out of'' a fatal traffic 
accident;
    2. Driving a CMV while under the influence of alcohol, including:
    (a) Driving a CMV while the person's alcohol concentration is 0.04 
percent or more,
    (b) Driving under the influence of alcohol, as prescribed by State 
law, and
    (c) Refusal to undergo testing for alcohol or controlled substances 
as required by any State or jurisdiction,
    3. Driving a CMV while under the influence of a controlled 
substance;
    4. Leaving the scene of an accident involving a CMV; or
    5. A felony involving the use of a CMV, including the use of a CMV 
in the commission of a felony involving manufacturing, distributing, or 
dispensing a controlled substance.
    Criterion 7: The motor carrier has a written Safety Control Plan 
for this Project. This plan must, in some form, clearly detail the 
measures which the motor carrier will undertake to ensure that the 
current level of safety is not compromised by the operation of the 
Project exemptions. This document may entail no more than submitting 
pertinent portions of a company's current Operating Plan or similar 
document. An outline for the creation of this document is also 
available from the FHWA upon request. In its application, the motor 
carrier will agree to abide by its Safety Control Plan.

Applying for the Project

    In order to be considered for the Project, motor carriers must, 
within 180 days of the publication of this Notice of Final 
Determination, submit, in writing, to the FHWA, the following:
    (1) A completed Motor Carrier Identification Report (MCS-150), 
which will provide updated information about the overall operation of 
the motor carrier,
    (2) The following certification, duly executed by the Chief 
Operating Officer of the motor carrier:
    I certify that (Name of motor carrier) operates CMVs having a GVWR 
between 10,001 and 26,000 pounds, inclusive, in interstate commerce, on 
a year-round basis, and is not rated ``Unsatisfactory'' by the FHWA. I 
certify that the company has approved the attached Safety Control Plan 
and will employ these controls throughout the Project. I certify that 
the motor carrier EITHER:

has an accident rate equal to or less than 1.6 police-reported 
accidents per million vehicle miles traveled (VMT), averaged over the 
most recent 36 months, based upon ____________ police-report accidents 
and ____________ vehicle miles traveled, by CMVs having a GVWR between 
10,001 and 26,000 pounds, inclusive, OR has ________________ actual VMT 
(less than one million) over the most recent 36 months and has 
experienced ____________ (less than 2) police-reported accidents 
involving subject vehicles over that period of time.
    I hereby submit a roster of ________ company drivers for 
participation in the Project. The roster includes driver names, license 
numbers and State of licensure, and dates of employment. I certify that 
each of these drivers is eligible to participate in the Project, that 
each operates CMVs having a GVWR between 10,001 and 26,000 pounds, 
inclusive, and that I have independently verified that the driving 
record of each does not include any convictions within the past 3 years 
of any of the disqualifying offenses enumerated in the Project 
criteria. I have read and agree to be bound by the requirements for 
notification and submission of information to the FHWA outlined in the 
section entitled ``The Agreement'' in the notice of final determination 
of this project.

----------------------------------------------------------------------
Signature

----------------------------------------------------------------------
Name

----------------------------------------------------------------------
Title

----------------------------------------------------------------------
Name of Motor Carrier

    (3) A Safety Control Plan.
    (4) A Driver Roster consisting of driver names, driver license 
numbers and state of licensure, and dates of employment. This will 
enable the FHWA to advise enforcement officers of the identity of 
Project drivers and to monitor their driving performance.

    Note: The motor carrier applicant must submit the names of ALL 
eligible drivers for participation in the Project.

    However, the FHWA is mindful of the fact that some motor carriers 
with larger operations may desire to volunteer a particular terminal, 
or a particular geographic region, or State, for this Project. The FHWA 
anticipates no difficulty in affording motor carriers flexibility with 
this form of selection for participation; however, the FHWA will 
carefully scrutinize any suggested ``subunits'' to be certain that they 
advance the congressional mandate, particularly the requirement that 
this Project examine a broad cross-section of the motor carrier 
industry. All of the items above should be assembled and submitted to: 
Department of Transportation, Federal Highway

[[Page 31660]]

Administration, 10-26 Safety Demonstration Project, 400 Seventh Street 
S.W., Washington, Washington, D.C. 20590-0001.

The Agreement

    If the FHWA finds that a motor carrier applicant is qualified for 
admission to the Project, it will by letter admit the motor carrier to 
the Project. A copy of this letter should be made available by the 
motor carrier to each Project driver to serve as the credential of his/
her participation in the Project.
    By agreement, Project motor carriers promise to do the following at 
the times indicated:
    (1) Within 10 business days following the occurrence of a police-
reported accident involving a Project driver, the motor carrier must 
submit details of that accident sufficient to enable the FHWA to locate 
the corresponding police accident report. Normally it will be 
sufficient to provide the date and physical location of the accident, 
the vehicle number, and the driver name and license number. If the FHWA 
needs nonconfidential insurance-related information, it will so advise 
the motor carrier.

    Note: This information must be accompanied by a revised 
calculation of police-reported accidents per million vehicle miles 
traveled, indicating the figures employed to make the calculation.

    The motor carrier will be subject to removal from the Project (see 
below) should this rate exceed 1.6 police-reported accidents per 
million VMT for the most recent 36 month period (or, in the case of 
Project motor carriers with less than a million vehicle miles traveled 
in the most recent 36 months, if this is the second or greater accident 
in the most recent 36 months).
    (2) Immediately following the addition of a new driver eligible for 
the Project, the motor carrier must submit to the FHWA an update to the 
roster of Project drivers, including the name, driver's license number, 
and date of employment of all drivers.
    (3) Immediately, when a Project driver ceases to be employed by the 
motor carrier, the motor carrier must submit the driver's name and 
license number to the FHWA.
    (4) Within 10 business days, the motor carrier must notify the FHWA 
when the motor carrier is sold, goes out of business, changes its name, 
ceases to operate, ceases to operate in interstate commerce, ceases to 
operate CMVs with GVWRs between 10,001 and 26,000 pounds, or ceases to 
conduct operations on a year-round basis.
    (5) Within 10 business days, the motor carrier must notify the FHWA 
when the motor carrier chooses to amend its Safety Control Plan, or is 
unable, for any reason, to carry out the terms of the Safety Control 
Plan which it developed for this Project.
    (6) Semi-annually, Project motor carriers must provide the FHWA 
with a current calculation of police-reported accidents per million 
vehicle miles traveled for the preceding 36 months, and indicate the 
figures employed to arrive at the calculation of this rate. The first 
calculation must be submitted upon the sixth-month anniversary of the 
date of admission to the Project. Subsequent calculations will be due 
in intervals of six months thereafter.

Removal From the Project

    The FHWA does not anticipate that any motor carrier which has 
satisfied the stringent admission criteria of this Project will 
experience any deterioration of its safety record. However, should this 
occur, the FHWA will, consistent with its duty under the NHS Act, take 
all steps necessary to protect the public interest, as well as the 
integrity of the Project. Participation in this Project is voluntary, 
and the FHWA retains the right to revoke a motor carrier's 
participation in the Project if its safety performance poses a threat 
to highway safety. Participating motor carriers are not exempt from 
roadside inspections, compliance reviews or enforcement actions 
pertaining to the remaining regulations from which they are not exempt, 
or on those portions of their operations (such as those involving CMVs 
with a GVWR in excess of 26,000 pounds) which are not a part of the 
Project. Also, Project drivers who pose a threat to highway safety 
will, at a minimum, be subject to immediate revocation of their 
privilege to participate in the Project.
    If the FHWA finds that the highway operations of a Project motor 
carrier have placed the safety of the public in jeopardy, the agency 
will remove the motor carrier from the Project. In addition, at such 
time as the three-year police-reported accident rate of a Project motor 
carrier exceeds 1.6 per million VMT for the most recent 36 month 
period, the motor carrier will be subject to disqualification. 
Additionally, in the case of Project motor carriers with less than a 
million vehicle miles traveled in the most recent 36 months, the agency 
will disqualify the Project motor carrier if this is the second, or 
greater, accident in the most recent 36 (or less) months.
    The FHWA will also immediately remove from the Project any driver 
convicted of any of the offenses enumerated under Criterion 6, 
Admission To the Project. Such convictions will not necessarily result 
in the removal from the Project of the motor carrier which employs the 
driver, but may result in more intensive scrutiny of the operations of 
that Project motor carrier.

The Final Evaluation

    At the conclusion of the Project, the FHWA will conduct an 
evaluation of the Project. The principal objective of the evaluation is 
to provide input to the Agency's ongoing zero-base review of the need 
for, and the cost and benefits of, the FMCSRs as they apply to 
interstate motor carriers operating CMVs in the 10,001 to 26,000 pound 
GVWR class.
    The evaluation will focus upon operational safety by comparing the 
collective experience of Project motor carriers and drivers during the 
Project with that prior to the Project. The evaluation will also 
compare the collective experience of Project motor carriers with the 
experience of motor carriers not participating in the Project. These 
comparisons will be accomplished through the use of motor carrier 
performance data obtained from Federal and State information systems as 
well as project data reported to the FHWA by participating motor 
carriers.

Paperwork Reduction Act of 1995

    The voluntary participants in this program must comply with 
information collection requirements which are subject to review by the 
Office of Management and Budget (OMB) under the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501-3520). Persons are not required to respond to a 
collection of information unless it displays a valid OMB control 
number. The information collections requirements related to this 
program have been approved through emergency processing by the OMB 
until August 31, 1997, and assigned OMB No. 2125-0575.
    The August 28, 1996, notice provided a 60-day comment period for 
the information collections requirements related to this program. 
Discussion of these comments including the FHWA's response is included 
in the preamble under the heading ``Changes from Notice of August 28, 
1996.'' Prior to the expiration date of the information collection, the 
FHWA intends to follow the normal clearance procedures to request the 
OMB to extend its approval for three years. The comments will be 
considered by the FHWA in its request to the OMB for an extension.

(49 U.S.C. 31136 and 31141; 49 CFR 1.48)


[[Page 31661]]


    Issued on: June 2, 1997.
Jane F. Garvey,
Acting Administrator.
[FR Doc. 97-15073 Filed 6-9-97; 8:45 am]
BILLING CODE 4910-22-P