[Federal Register Volume 62, Number 231 (Tuesday, December 2, 1997)]
[Rules and Regulations]
[Pages 63675-63676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31455]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Parts 219 and 225

[FRA Docket No. RAR-5, Notice No. 1]
RIN 2130-AB21


Annual Adjustment of Monetary Threshold for Reporting Rail 
Equipment Accidents/Incidents

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

ACTION: Final rule.

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SUMMARY: This final rule increases from $6,500 to $6,600 the monetary 
threshold for reporting railroad accidents/incidents involving railroad 
property damage that occur on or after January 1, 1998. This action is 
needed to ensure and maintain comparability between different years of 
data by having the threshold keep pace with increases or decreases in 
equipment and labor costs so that each year accidents involving the 
same minimum amount of railroad property damage are included in the 
reportable accident counts. The reporting threshold was last changed in 
1996.

EFFECTIVE DATE: January 1, 1998.

FOR FURTHER INFORMATION CONTACT: Robert L. Finkelstein, Staff Director, 
Office of Safety Analysis, RRS-22, Mail Stop 25, Office of Safety, FRA, 
400 Seventh Street, S.W., Washington, D.C. 20590 (telephone 202-632-
3386); or Nancy L. Goldman, Trial Attorney, Office of Chief Counsel, 
RCC-12, Mail Stop 10, FRA, 400 Seventh Street, S.W., Washington, D.C. 
20590 (telephone 202-632-3167).

SUPPLEMENTARY INFORMATION:

Background

    Rail equipment accidents/incidents are collisions, derailments, 
explosions, fires, acts of God, and other events (including grade 
crossing accidents) involving the operation of standing or moving on-
track equipment that results in damages higher than the current 
reporting threshold to railroad on-track equipment, signals, track, 
track structures, or roadbed, including labor costs and the costs for 
acquiring new equipment and material. 49 CFR 225.19 (b), (c). Each rail 
equipment accident/incident must be reported to FRA using the Rail 
Equipment Accident/Incident Report (Form FRA F 6180.54). Id.
    As revised in 1996, paragraphs (c) and (e) of Sec. 225.19 of title 
49, Code of Federal Regulations, provide that the dollar figure that 
constitutes the reporting threshold for rail equipment accidents/
incidents will be adjusted every year in accordance with the procedures 
outlined in appendix B to part 225, to reflect cost increases or 
decreases. 61 FR 30942, 30969 (June 18, 1996); 61 FR 60632, 60634 (Nov. 
29, 1996); 61 FR 67477, 67490 (Dec. 23, 1996).

New Reporting Threshold

    One year has passed since the accident/incident reporting threshold 
was last revised. 61 FR 60632 (Nov. 29, 1996). Consequently, FRA has 
recalculated the threshold, as required by Sec. 225.19(c), based on 
increased costs for labor and decreased costs for material. FRA has 
determined that the current reporting threshold of $6,500, which 
applies to rail equipment accidents/incidents that occur during 
calendar year 1997, should be increased to $6,600, effective January 1, 
1998, and Secs. 225.5 and 225.19 are being amended accordingly. 
Appendix B has also been amended to reflect the most recent cost 
figures and the calculations made to determine the new threshold for 
calendar year 1998. Finally, the alcohol and drug regulations (49 CFR 
part 219) are amended throughout to reflect that the reporting 
threshold for calendar year 1998 is $6,600.

Notice and Comment Procedures

    In this rule, FRA merely adjusts the reporting threshold based on 
the formula adopted, after notice and comment, in the final rule 
published June 18, 1996, 61 FR 30959, 30969, and discussed in detail in 
the final rule published November 29, 1996, 61 FR 30632. FRA further 
finds 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 further finds 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, FRA concludes that notice and comment procedures are 
impracticable, unnecessary, and contrary to the public interest. As a 
consequence, FRA is proceeding directly to this final rule.

Regulatory Impact

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This final rule has been evaluated in accordance with existing 
regulatory policies and procedures and is considered to be a 
nonsignificant regulatory action under DOT policies and procedures (44 
FR 11034; February 26, 1979). This final rule also has been reviewed 
under Executive Order 12866 and is also considered ``nonsignificant'' 
under that Order.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) 
requires a review of 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. 
This final rule will have no new significant direct or indirect 
economic impact on small units of government, business, or other 
organizations. To the extent that this rule has any impact on small 
units, the impact will be positive because the rule is decreasing, 
rather increasing, their reporting burden.

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.

Environmental Impact

    This final rule will not have any identifiable environmental 
impact.

Federalism Implications

    This final rule will not have a substantial effect 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. Thus, in accordance with Executive Order 12612, 
preparation of a Federalism Assessment is not warranted.

The Final Rule

    In consideration of the foregoing, FRA amends parts 219 and 225, 
Title 49, Code of Federal Regulations as follows:

PART 219--[AMENDED]

    1. The authority citation for part 219 continues to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107, 20111, 20112, 20113, 20140, 
21301, 21304; and 49 CFR 1.49(m).


[[Page 63676]]


    2. By amending Sec. 219.5 by revising the first sentence in the 
definition of Impact accident and by revising the definitions of 
Reporting Threshold and Train accident to read as follows:


Sec. 219.5  Definitions.

* * * * *
    Impact accident means a train accident (i.e., a rail equipment 
accident involving damage in excess of the current reporting threshold, 
$6,300 for calendar years 1991 through 1996, $6,500 for calendar year 
1997, and $6,600 for calendar year 1998) consisting of a head-on 
collision, a rear-end collision, a side collision (including a 
collision at a railroad crossing at grade), a switching collision, or 
impact with a deliberately-placed obstruction such as a bumping post. * 
* *
* * * * *
    Reporting threshold means the amount specified in Sec. 225.19(e) of 
this chapter, as adjusted from time to time in accordance with appendix 
B to part 225 of this chapter. The reporting threshold for calendar 
years 1991 through 1996 is $6,300. The reporting threshold for calendar 
year 1997 is $6,500. The reporting threshold for calendar year 1998 is 
$6,600.
* * * * *
    Train accident means a passenger, freight, or work train accident 
described in Sec. 225.19(c) of this chapter (a ``rail equipment 
accident'' involving damage in excess of the current reporting 
threshold, $6,300 for calendar years 1991 through 1996, $6,500 for 
calendar year 1997, and $6,600 for calendar year 1998), including an 
accident involving a switching movement.
* * * * *
    3. By amending Sec. 219.201 by revising the introductory text of 
paragraphs (a)(1) and (a)(2), and by revising paragraph (a)(4) to read 
as follows:


Sec. 219.201  Events for which testing is required.

    (a) * * *
    (1) Major train accident. Any train accident (i.e., a rail 
equipment accident involving damage in excess of the current reporting 
threshold, $6,300 for calendar years 1991 through 1996, $6,500 for 
calendar year 1997, and $6,600 for calendar year 1998) that involves 
one or more of the following:
* * * * *
    (2) Impact accident. An impact accident (i.e., a rail equipment 
accident defined as an ``impact accident'' in Sec. 219.5 of this part 
that involves damage in excess of the current reporting threshold, 
$6,300 for calendar years 1991 through 1996, $6,500 for calendar year 
1997, and $6,600 for calendar year 1998) resulting in--
* * * * *
    (4) Passenger train accident. Reportable injury to any person in a 
train accident (i.e., a rail equipment accident involving damage in 
excess of the current reporting threshold, $6,300 for calendar years 
1991 through 1996, $6,500 for calendar year 1997, and $6,600 for 
calendar year 1998) involving a passenger train.
* * * * *

PART 225--[AMENDED]

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

    Authority: 49 U.S.C. 20103, 20107, 20901, 20902, 21302, 21311; 
49 U.S.C. 103; 49 CFR 1.49(c), (g), and (m).

    2. By amending Sec. 225.19(c) by removing the phrase ``and $6,500 
for calendar year 1997)'' and by adding in its place ``, $6,500 for 
calendar year 1997, and $6,600 for calendar year 1998)''.
    3. By revising Sec. 225.19(e) to read as follows:


Sec. 225.19  Primary groups of accidents/incidents.

* * * * *
    (e) The reporting threshold is $6,300 for calendar years 1991 
through 1996. The reporting threshold is $6,500 for calendar year 1997; 
this threshold dollar amount will remain in effect until December 31, 
1997. For calendar year 1998 the reporting threshold is $6,600. The 
procedure for determining the reporting threshold for calendar year 
1998 appears as appendix B to part 225.
    4. Part 225 is amended by revising appendix B to read as follows:

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

    1. Data from the U.S. Department of Labor, Bureau of Labor 
Statistics (BLS), LABSTAT Series Reports are used in the 
calculation. The equation used to adjust the reporting threshold 
uses the average hourly earnings reported for Class I railroads and 
Amtrak and an overall railroad equipment cost index determined by 
the BLS. The two factors are weighted equally.
    2. For the wage component, LABSTAT Series Report, Standard 
Industrial Classification (SIC) code 4011 for Class I Railroad 
Average Hourly Earnings is used.
    3. For the equipment component, LABSTAT Series Report, Producer 
Price Index (PPI) Series WPU 144 for Railroad Equipment is used.
    4. In the month of October, final data covering the 12-month 
period ending with the month of June are obtained from BLS. The 12 
monthly figures are totaled and divided by 12 to produce monthly 
averages to be used in computing the projected annual (12-month) 
average for the next calendar year.
    5. The wage data are reported in terms of dollars earned per 
hour, while the equipment cost data are indexed to a base year of 
1982.
    6. The procedure for adjusting the reporting threshold is shown 
in the formula below. The wage component appears as a fractional 
change relative to the prior year, while the equipment component is 
a difference of two percentages which must be divided by 100 to 
present it in a consistent fractional form. After performing the 
calculation, the result is rounded to the nearest $100.
    7. The current weightings represent the general assumption that 
damage repair costs, at levels at or near the threshold, are split 
approximately evenly between labor and materials.
    8. Formula:
    [GRAPHIC] [TIFF OMITTED] TR02DE97.000
    
Where:
Prior Threshold = $6,500 (for rail equipment accidents/incidents 
that occur during calendar year 1997)
Wn = New average hourly wage rate ($) = 17.990833
Wp = Prior average hourly wage rate ($) = 17.55500
En = New equipment average PPI value = 135.91666
Ep = Prior equipment average PPI value = 136.76667
    9. The result of these calculations is $6,553. Since the result 
is rounded to the nearest $100, the new reporting threshold for rail 
equipment accidents/incidents that occur during calendar year 1998 
is $6,600.

Jolene M. Molitoris,

Federal Railroad Administrator.
[FR Doc. 97-31455 Filed 12-1-97; 8:45 am]
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