[Federal Register Volume 63, Number 133 (Monday, July 13, 1998)]
[Notices]
[Pages 37613-37620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18539]


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DEPARTMENT OF TRANSPORTATION

Federal Highway Administration
[Docket No. FHWA-97-2287; MC-96-40]


Motor Carrier Regulatory Relief and Safety Demonstration Project; 
Modifications

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice; request for comments.

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SUMMARY: The FHWA is extending the application period for the Motor 
Carrier Regulatory Relief and Safety Demonstration Project (Project), 
published in the Federal Register on June 10, 1997. The agency is also 
seeking public comment upon proposed modifications to the entry 
criteria and reporting requirements of the Project. In the June 1997 
notice, the FHWA indicated that it would later publish additional 
information clarifying the eligibility criteria and application 
process. This notice is that clarifying document and proposes to 
provide additional incentives to participating

[[Page 37614]]

motor carriers without adversely impacting highway safety. Motor 
carriers operating commercial motor vehicles (CMVs) with a gross 
vehicle weight rating (GVWR) between 10,001 and 26,000 pounds, in 
interstate commerce, may qualify for exemptions from certain portions 
of the Federal Motor Carrier Safety Regulations (FMCSRs) if they 
exhibit exemplary safety records. Motor carriers participating in this 
Project would have the opportunity to demonstrate they can maintain or 
improve their safety records when they are given greater latitude to 
select the means by which their safety performance is attained. The 
FHWA seeks the comments of all interested parties regarding these 
Project modifications, especially comments aimed at aiding the FHWA in 
providing substantive industry incentives while maintaining the highest 
degree of safety. Upon review of public comment, the FHWA intends to 
modify the project, authorize qualified motor carrier participation, 
and publish a supplemental notice of final determination.

DATES: Comments must be received no later than August 12, 1998. Written 
comments addressing the information collection requirements of this 
Project must be received on or before September 11, 1998. Applications 
for participation in the Project must be submitted no later January 30, 
1999.

ADDRESSES: Signed, written comments must refer to the docket number 
appearing at the top of this document and must be submitted to the 
Docket Clerk, Docket No. FHWA-97-2287; MC-96-40, U.S. DOT Dockets, Room 
PL-401, 400 Seventh Street, SW., Washington, D.C. 20590-0001. All 
comments received will be available for examination at the above 
address from 10 a.m. to 5 p.m., e.t., Monday through Friday, except 
Federal holidays. Those desiring notification of receipt of comments 
must include a self-addressed stamped envelope or postcard.
    For Internet users, all comments received will be available for 
examination at the universal resource locator--http://dms.dot.gov--24 
hours each day, 365 days each year. Please follow the instructions on-
line for more information and help.

FOR FURTHER INFORMATION CONTACT: Mr. Robert W. Miller, Office of Motor 
Carriers, (202) 523-0178, or Mr. Charles Medalen, Office of the Chief 
Counsel, (202) 366-1354, Federal Highway Administration, DOT, 400 
Seventh Street, SW., Washington, D.C. 20590. Office hours are from 7:45 
a.m. to 4:15 p.m., e.t., Monday through Friday, except Federal 
holidays.

SUPPLEMENTARY INFORMATION:

Electronic Availability

    An electronic copy of this document may be downloaded using a 
computer, modem, and suitable communications software from the 
Government Printing Office (GPO) electronic bulletin board service 
(telephone: 202-512-1661). Internet users may reach the GPO's web page 
at: http://www.access.gpo.gov/su__docs/aces/aaces002.html.

Background

    On November 28, 1995, the President signed the National Highway 
System Designation Act of 1995 (NHS Act) (Pub. L. 104-59, 109 Stat. 568 
(1995)). Section 344 of the NHS Act requires the FHWA to implement a 
pilot program under which motor carriers operating CMVs with a GVWR 
between 10,001 and 26,000 pounds, in interstate commerce, could qualify 
for exemptions from the FMCSRs (49 CFR Part 325 et seq.). In accordance 
with the NHS Act, the FHWA developed the Project and published a 
detailed description of the Project in the Federal Register on June 10, 
1997. There has been limited industry interest to participate in the 
Project since the publication date.
    Through a series of outreach sessions, the FHWA discovered the 
absence of extensive industry interest is due, in part, to a lack of 
understanding of how the Project would work and questions about 
potential incentives for program participation. The purpose of this 
notice is to provide the public with an opportunity to assist the FHWA 
in determining whether clear and sufficient incentives have been 
included, while maintaining the highest degree of safety. Modifications 
have been made to the current details of the Project and additional 
exemptions are proposed. The FHWA is seeking all points of view before 
implementing these newly proposed parameters as part of the Project. 
The FHWA will peruse all suggestions and weigh carefully the facts upon 
which they are based.
    The FHWA proposes that in order to participate in the Project, a 
motor carrier would have to meet the criteria for admission developed 
by the Secretary and outlined later in this notice. The criteria for 
admission has been modified regarding the definition of ``accident'' 
and the Project entry accident rate threshold. Motor carriers seeking 
to participate are still required to develop a written Safety Control 
Plan for the Project. This plan should outline the measures which the 
motor carrier would undertake to ensure its current level of safety is 
not compromised while operating under the proposed exemptions. The 
motor carrier would also enter into a written agreement of 
participation with the FHWA in which it would agree to abide by its 
Safety Control Plan and to work with the FHWA in generating and 
monitoring certain Project data. The FHWA would grant, for the term of 
the Project only, an exemption to participating motor carriers from 
certain current requirements of the FMCSRs, but such exemption would 
apply only to the eligible CMVs and drivers designated by the motor 
carrier in its application. The FHWA will evaluate the Project data 
throughout the Project, with particular focus upon the significance of 
the data with regard to FHWA's regulatory reinvention and zero-base 
initiatives. The FHWA would, in accordance with the NHS Act, use this 
data to conduct a zero-base review of the need for, and the costs and 
benefits of, all the FMCSRs.
    The requirements for participation in the Project include several 
information collection requirements which must be approved by the 
Office of Management and Budget (OMB) under the Paperwork Reduction Act 
(PRA) of 1995 (44 U.S.C. 3501-3520). On November 6, 1997, the OMB 
reinstated the authorization for the FHWA's submission of these 
information collection requirements as provided under OMB No. 2125-
0575, with an expiration date of November 30, 2000.
    Analysis of Project data will occur throughout the Project, and 
only at such time as that analysis is complete will the FHWA be in a 
position to consider other performance-based initiatives. Given the 
Project parameters, the FHWA believes that three years of continuous 
and sustained motor carrier operations is the minimum amount of time 
necessary to draw conclusions about operational safety. In view of the 
customary level of activity for a motor carrier, the FHWA, after three 
years, should be able to assert, with reasonable certainty, that the 
data accumulated with respect to the activity of the class of motor 
carriers in this Project is representative of future behavior.

Table of Contents

I. Introduction
II. Current Project Exemptions
III. Proposed Additional Project Exemptions
IV. Criteria For Admission to the Project
V. Applying for participation in the Project
VI. Safety Control Plans
VII. Eligible Drivers
VIII. The Agreement of Participation
IX. Removal from the Project
X. The Final Evaluation

[[Page 37615]]

XI. Preemption
XII. Paperwork Reduction Act of 1995
XIII. Conclusion

I. Introduction

    Many commenters to the original June 10, 1997 proposal contended 
the design of the Project would discourage motor carrier participation. 
The explanation most frequently offered for this belief 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 participating motor carriers would receive. The 
commenters strenuously objected to the proposed paperwork requirements, 
while noting that substantive exemptions weren't offered. 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 
that requirement. For these reasons and given the current level of 
industry interest, clarifying and amending the Project requirements, as 
well as providing additional incentives, seem to be in order. We 
believe these modifications will reduce participants' burden and 
improve industry interest.

II. Current Project Exemptions

    In accordance with the NHS Act, qualified interstate motor carriers 
would be exempt from certain regulatory requirements while 
participating in the Project. In the June 10, 1997 Federal Register 
notice, the regulations described below were those from which 
participating motor carriers would be exempt. Those Project exemptions 
would continue to be offered. No current exemptions would be removed. 
Clarifications and modifications of these exemptions are explained in 
this section. Motor carriers participating in the Project are only 
exempt from the regulations specified in the Project. A participating 
motor carrier may elect to voluntarily comply with any of the 
requirements described below as part of its normal business practices. 
For the purposes of the Project, however, the motor carriers would be 
exempt from those requirements. Project motor carriers, and their 
eligible drivers, would, with regard to the interstate operation of 
CMVs with a GVWR between 10,001 and 26,000 pounds, be exempt from the 
following requirements of the FMCSRs:

Driver Qualifications

    Drivers would not be required to prepare, or furnish to the 
employing motor carrier, an annual list of violations of motor vehicle 
laws, or a certificate in lieu thereof, in accordance with 49 CFR 
391.11(b)(8) and 391.27. Motor carriers, however, would be required to 
obtain a State driving record as required by 49 CFR 391.23. Further, 
drivers would not be required to successfully complete a Driver's Road 
Test, or furnish an employing motor carrier an Application For 
Employment, in accordance with 49 CFR 391.11(b)(10) and 391.31 and 49 
CFR 391.11(b)(11) and 391.21. In addition, motor carriers would not 
have to maintain ``complete'' Driver Qualification Files on each driver 
in accordance with 49 CFR 391.51. The documents identified above would 
not be required to be in the qualification file. Only those documents 
from which participating motor carriers are not exempt would be 
required to be in the driver qualification file.

Driver Hours-of-Service

    Project drivers would not be required to comply with record of duty 
status regulations, whether this entails maintenance of a record of 
duty status (logbook) in accordance with 49 CFR 395.8, use of a time 
card 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. 
Project motor carriers and drivers, however, 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 would not 
forfeit any other exemptions available under the FMCSRs.

CMV Inspections

    While participating in the Project, motor carriers would be exempt 
from those requirements pertaining to CMV inspection records and their 
retention, in accordance with 49 CFR 396.3 (b) and (c). Exemption would 
also be granted from the regulations pertaining to the preparation of 
driver vehicle inspection reports and the driver vehicle inspection 
requirements ( 49 CFR 396.11 and 396.13 (b) and (c)). In addition, 
driveaway-towaway inspections would not be required of Project motor 
carriers or their drivers (49 CFR 396.15). Periodic inspections and the 
preparation of periodic inspection reports ( 49 CFR 396.17 and 396.21) 
would also fall under the exemption. However, motor carriers would not 
be relieved of their responsibility to inspect, repair and maintain 
their motor vehicles in accordance with 49 CFR 396.3(a). Furthermore, 
Project drivers and CMVs would be subject to roadside safety 
inspections.

Accident Information

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

III. Proposed Additional Project Exemptions

    The FHWA has received recommendations for additional incentives to 
be included in the Project to increase industry interest. The FHWA has 
analyzed those recommendations and has determined that the following 
additional incentives should be offered:

Driver Qualifications

    Drivers would not be required to read or speak the English language 
in accordance with 49 CFR 391.11(b)(2), provided they can effectively 
communicate with enforcement officials. Motor carriers would not be 
required to document investigations of drivers' employment history in 
accordance with 49 CFR 391.23(c). Motor carriers would also be relieved 
from documenting the annual review of drivers' records in accordance 
with 49 CFR 391.25. In addition, relief would be provided regarding 
medical examinations and certifications. The current requirement for 
drivers to be medically re-examined and certified each 24 months in 
accordance with 49 CFR 391.45(b)(1) would be removed for the duration 
of the Project, provided participating drivers have a current medical 
examination certification prior to entry into the Project. Newly hired 
drivers would be required to be medically examined once, prior to entry 
into the Project, in accordance with 49 CFR 391.45(a). We believe 
participating motor carriers will ensure drivers are physically fit for 
duty as part of their normal business practices.
    In addition to driver qualification exemptions, motor carriers 
would be relieved from the unauthorized passenger transportation 
prohibition of 49 CFR 392.60.

Driver Hours-of-Service

    The industry has asked the FHWA to reconsider providing relief from 
the underlying hours-of-service (HOS) regulations, not just 
recordkeeping. The FHWA has evaluated this request and has determined 
that some relief might be provided without reducing highway safety. 
Most trucks in this weight range are used in local transportation 
operations. Drivers return to the home terminal at the end of each work 
shift and do not spend overnight periods on the road. If overnight 
stays are needed, drivers generally sleep in motels

[[Page 37616]]

because these CMVs are usually not equipped with sleeper berths. These 
are optimal conditions for obtaining restorative sleep. The vast 
majority of drivers operating this class of CMV are local drivers 
operating between 6 a.m. and 9 p.m. Their on-duty hours are usually 
regular in nature. They are usually afforded ample time to obtain 
sufficient recuperative sleep (9-12 hours off-duty in every 24) during 
the optimal time for sleep (midnight to 6 a.m.). Due to the nature of 
their operations, they are the least affected by regulatory 
restrictions. Additionally, the largest fraction of non-local use is by 
private motor carriers of freight, primarily driver-operators in 
service industries. The nature of their work is such that they 
generally set their own schedules and are not influenced by third-party 
customers to the degree a for-hire motor carrier is affected.
    The FHWA is, therefore, proposing to allow participating drivers to 
be on duty for 12 consecutive hours with no mileage limit and no 
constraints on their activities. The premise being that such drivers 
perform other functions in addition to driving and will not exceed the 
current 10-hour driving limitation. This action would parallel the 
exemption allowed by 49 CFR 395.1 (e). As stated previously, drivers 
will be required to comply with the driving-time provisions of 49 CFR 
395.3(a) and (b).

CMV Inspections

    In the June 10, 1997 Federal Register notice, the FHWA relieved 
participating motor carriers from performing annual vehicle inspections 
in accordance with 49 CFR 391.17. Since we are proposing to exempt 
participating motor carriers from the annual inspection, the 
participating motor carriers would be exempt from the annual inspector 
qualification requirements set forth in 49 CFR 396.19 while 
participating in the Project and inspecting program CMVs. Participating 
motor carriers would also be relieved of the requirements for brake 
inspector qualifications and recordkeeping in accordance with 49 CFR 
396.25, except for inspectors working on air brake systems. The 
rationale for this is that most of these vehicles are equipped with 
hydraulic brakes.
    The FHWA seeks public comment on whether these additional 
exemptions are appropriate and whether these additional incentives will 
increase the industry's interest in participating. The NHS Act requires 
the FHWA to ensure the Project is designed to achieve a level of 
operational safety ``equal to or greater than'' that under the current 
requirements of the FMCSRs. In considering additional exemptions under 
this Project, the FHWA carefully weighed whether adequate safety 
measures exist to ensure the exemptions do not adversely affect highway 
safety.

IV. Criteria for Admission to the Project

    The FHWA believes participation in this Project should be limited 
to those motor carriers that have exemplary safety records. The agency 
further believes that the best measure of an exemplary record would be 
an accident rate equal to, or better than, that of the top 25 percent 
of motor carriers. The FHWA estimates this accident rate to be 0.5, or 
fewer, accidents per one million vehicle miles of travel. Accidents are 
those incidents resulting in (1) a fatality, (2) bodily injury to a 
person who, as a result of the injury, immediately receives medical 
treatment away from the scene of the accident, or (3) one or more motor 
vehicles incurring disabling damage as a result of the accident, 
requiring the motor vehicle to be transported away from the scene by a 
tow truck or other motor vehicle.
    This rate is derived from an analysis of Compliance Review (CR) 
data, collected for the years 1993 through 1997. The decision to base 
this rate on accidents was made after discussions with representatives 
from the motor carrier industry. This approach is consistent with the 
FHWA's definition of the term ``accident'' as it appears in 49 CFR 
390.5.
    Note that the FHWA does not maintain any CR or other accident data 
specific to motor carriers operating CMVs within the 10,000 pound to 
26,000 pound range. Thus, the agency's analysis of the CR data could 
not be limited precisely to the population targeted for this Project. 
The analysis was, however, limited to only those motor carriers 
operating at least one straight truck. The FHWA estimates that between 
50 and 75 percent of all straight trucks are within the 10,000 pound to 
26,000 pound range. Further, only those motor carriers, in the CR data 
base, having three or more years of accident data were considered. The 
analysis was further limited to those carriers averaging at least one 
million vehicle miles traveled (VMT) over a three year period. This was 
done to (1) be consistent with the carrier eligibility requirements 
established for this Project, and (2) guard against any bias resulting 
from including carriers having an insufficient number of VMT to 
determine an accident rate accurately.
    For the 271 motor carriers meeting these conditions in the analysis 
file, 25 percent had an accident rate of 0.5 or fewer accidents per one 
million VMT, based on three or more years of data. Hence, the cut-off 
for identifying the top 25 percent of carriers based on this analysis 
is 0.5.
    Using CR data allows us to analyze accident data at the carrier 
level. No other data base available to the agency allows for such an 
analysis. Although it may be argued that by using such data, the agency 
is basing its accident rate cut-off point on a group of motor carriers 
already identified as substandard, only 36 out of 223, or 16 percent of 
these carriers had a SafeStat crash safety evaluation area (SEA) score 
greater than 75, thereby indicating a potentially high accident rate 
(for 48 of the carriers, the SEA score could not be obtained or 
inferred).
    Furthermore, overall accident statistics produced from this file 
are not dramatically different from accident statistics generated from 
other data sources. For example, the average accident rate across all 
carriers based on this analysis file (composed of carriers with 
straight trucks, having at least three CRs between 1993 and 1997, and 
an average three year VMT of one million or higher) is 0.75 accidents 
per million VMT. If all motor carriers having had three or more CRs 
between 1993 and 1997 are considered, with no constraints on power unit 
composition or VMT, the accident rate drops slightly to 0.72. Using the 
General Estimates System (GES) data base for purposes of comparison, 
the overall accident rate between 1993 and 1996 for straight and 
combinations trucks is 0.6 accidents per one million VMT.
    The FHWA, therefore, proposes to modify the Project participation 
requirement regarding accident rates by eliminating the ``police-
reportable'' accident definition and using the definition of an 
``accident'' in 49 CFR 390.5. Furthermore, the FHWA proposes an 
accident rate, for entry into and exit from the Project, of no more 
than 0.5 accidents per million VMT, averaged over the most recent 36 
months. Motor carriers with less than one million VMT in the most 
recent 36 months would be eligible for the Project if they have no more 
than one accident during that period of time. Two or more accidents 
would result in a motor carrier being declared ineligible for this 
Project. It is important to note that the accidents and mileage used in 
calculating this accident rate only include vehicles eligible for the 
Project and no others.
    The FHWA seeks public comment on these proposed criteria. Is an 
accident rate of no more than 0.5 accidents per 1,000,000 VMT a prudent 
requirement in view of the need to limit

[[Page 37617]]

participation to those carriers with exemplary safety records? Are 
there other tenable approaches? If yes, what data or rationale support 
them?
    The criteria for admission to the Project has otherwise remained 
the same as published in the June 10, 1997 Federal Register, except for 
the change regarding the definition of an accident and the accident 
rate for Project eligibility described above. No other criteria 
modifications are being proposed for admission to the Project. Each 
motor carrier applying for admission to the Project must satisfy the 
following 7 prerequisites:
    1. The motor carrier operates in interstate commerce.
    2. The motor carrier operates CMVs having a GVWR between 10,001 and 
26,000 pounds.

    Note: CMVs designed to transport more than 15 passengers 
(including the driver), or used to transport 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.

    3. The motor carrier does not currently have a Safety Fitness 
Rating of ``Unsatisfactory'' issued by the FHWA. Motor carriers that 
have not received a safety rating issued by the FHWA are eligible for 
this Project.
    4. For CMVs eligible for this Project, the motor carrier has an 
accident rate equal to or less than 0.5 accidents per million VMT, 
averaged over the most recent 36 months. The term ``accident'' is 
defined in 49 CFR 390.5. For example, a motor carrier which has had 2 
accidents and has 5 million VMT by eligible CMVs over the most recent 
36 months would be eligible for the Project based upon the following 
calculation: 2 divided by 5 equals 0.4, which is less than 0.5. This 
calculation is to be based solely upon the accidents and mileage of 
those CMVs which have a GVWR between 10,001 pounds and 26,000 pounds.
    Motor carriers with less than one million VMT in the most recent 36 
months are eligible for the Project if they have not had more than 1 
accident during that period of time. Two or more accidents would result 
in ineligibility for this Project.
    5. The motor carrier is active on a year-round basis. ``Seasonal'' 
motor carriers are not eligible for the Project.
    6. The drivers assigned by the motor carrier for participation in 
the Project have not been convicted, in the past three years, of:
    (a) An offense that directly arose out of a fatal traffic accident;
    (b) Driving a CMV while under the influence of alcohol, including;
    (i) Driving a CMV while the person's alcohol concentration is 0.04 
percent or more;
    (ii) Driving under the influence of alcohol, as prescribed by State 
law; and
    (iii) Refusal to undergo testing for alcohol or controlled 
substances as required by any State or jurisdiction;
    (c) Driving a CMV while under the influence of a controlled 
substance;
    (d) Leaving the scene of an accident involving a CMV; or
    (e) 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.
    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 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, upon request, from the 
FHWA. In its application, the motor carrier would agree to abide by its 
Safety Control Plan. More detailed information regarding the Safety 
Control Plan is provided later in this document.

V. Applying for the Project

    In the Notice of Final Determination published in the Federal 
Register on June 10, 1997, motor carriers were required to submit, in 
writing, their requests for admission to the Project within 180 days of 
the publication of the notice. The application deadline was extended to 
June 30, 1998 (See the December 16, 1997 issue of the Federal 
Register). The FHWA also made known that additional information 
clarifying the eligibility criteria and application process would be 
published at a later date. This notice is that clarifying document. To 
ensure a continuous opportunity for interested motor carriers to apply 
for the Project under the new criteria, the FHWA is further extending 
the application deadline until January 30, 1999.
    There will be no change in the application process during this 
notice and comment period. Interested motor carriers should submit, in 
writing, to the FHWA, the following:
    (1) A completed Motor Carrier Identification Report (Form MCS-150), 
which would 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 pounds and 26,000 pounds in interstate commerce, on a 
year-round basis, and is not rated ``Unsatisfactory'' by the FHWA. I 
certify the company has approved the attached Safety Control Plan and 
will employ these controls throughout the Project. I certify that the 
motor carrier EITHER: (1) has an accident rate equal to or less than 
0.5 accidents per million vehicle miles traveled (VMT), averaged over 
the most recent 36 months, based upon ________ accidents and ________ 
VMT, by CMVs having a GVWR between 10,001 pounds and 26,000 pounds, OR 
(2) has ________ actual VMT (less than one million) over the most 
recent 36 months and has experienced ________ (less than 2) accidents 
involving the 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, State of licensure, and dates of employment. I certify that 
(1) each driver is eligible to participate in the Project, (2) each 
operates CMVs having a GVWR between 10,001 pounds and 26,000 pounds, 
and (3) 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 containing drivers' names, driver license 
numbers, State of licensure, and dates of employment. This would enable 
the FHWA to advise enforcement officers of the identity of Project 
drivers and to monitor their driving performance.

    Note: The motor carrier applicant would be required to submit 
the names of ALL drivers eligible for participation in the Project.

    The FHWA is aware that some motor carriers with large operations 
may wish to volunteer a particular terminal, geographic region, or 
State operation for this Project. The FHWA anticipates no difficulty in 
affording motor carriers flexibility with this form of selection.

[[Page 37618]]

The FHWA would carefully scrutinize any suggested ``subunits'' to be 
certain they advance the congressional mandate, particularly the 
requirement that this Project examine a broad cross-section of the 
motor carrier industry. All of the above items should be assembled and 
submitted to: United States Department of Transportation, Federal 
Highway Administration, 10-26 Safety Demonstration Project, HMT-1, 400 
Seventh Street, SW., Washington, D.C. 20590-0001.

VI. Safety Control Plans

    Motor carriers interested in applying for the Project must submit a 
Safety Control Plan (SCP). Through outreach sessions with the industry, 
the FHWA has discovered there is some confusion regarding the content 
of such a plan. For the purposes of this Project, the SCP should 
provide the answers to the following:
    During the Project, how will the motor carrier applicant ensure:
    (1) Project drivers are qualified to operate commercial motor 
vehicles,
    (2) Project vehicles are in safe operating condition,
    (3) Project drivers are complying with the maximum hours-of-service 
requirements, and
    (4) It will receive a timely warning if Project drivers are 
violating the FMCSRs or the Agreement of Participation.
    The FHWA believes the preparation of the SCP should be 
straightforward for most motor carriers which have the exemplary safety 
record required to qualify for the Project. Experience has shown that 
the vast majority of motor carriers who have exemplary safety records 
also have a well-defined set of safety controls. For this Project, the 
FHWA proposes that an existing set of company operating instructions, 
whether currently included in a manual or are a set of policy 
documents, could be used to satisfy the SCP requirement, if the motor 
carrier applicant directed the FHWA to the sections which satisfy the 
SCP requirements.
    Where an initial SCP must be created, the FHWA believes that an 
explanation of the day-to-day safety practices and controls which the 
motor carrier employs, or will employ, should suffice. Upon review of 
the motor carrier's SCP, the FHWA must be able to identify what safety 
controls are in place, and be able to evaluate them in terms of the 
level of safety they could be expected to produce. A model outline of 
an SCP is available from the FHWA upon request.

VII. Eligible Drivers

    Drivers operating CMVs with a GVWR between 10,001 pounds and 26,000 
pounds are eligible for the Project. The FHWA will, however, permit a 
Project motor carrier to direct Project drivers to operate vehicles 
outside of the Project weight class if: (1) the driver operates Project 
vehicles at least 25 percent of the time, and (2) the motor carrier can 
provide the FHWA with a reasonable calculation of the total number of 
VMT accrued outside the Project, and the total number of VMT accrued 
within the Project, for each such driver. The FHWA can take such 
information into account when conducting its evaluation of the Project, 
and thus preserve the integrity of that evaluation. Motor carriers and 
their drivers are advised to be alert to the fact that when activity is 
conducted outside the Project, that activity is subject to all 
provisions of the FMCSRs. For instance, a driver who operates a CMV 
with a GVWR in excess of 26,000 pounds must, in accordance with 49 CFR 
395.8, account for his or her hours-of-service for the previous 8 
consecutive days even though the driver, during the earlier period, was 
exempt from the requirements of 395.8 by virtue of being engaged in 
Project activity.

VIII. The Agreement of Participation

    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. Participation in the Project may commence immediately 
upon receipt of the admission letter. A copy of this letter should be 
made available to each Project driver to serve as the credential 
authorizing his/her participation in the Project.
    By agreement, Project motor carriers promise to report certain 
information to the FHWA. The reporting requirements have remained 
relatively the same as in the June 10, 1997 notice. The changes in the 
reporting criteria primarily relate to accident reporting and 
notification of changes to the Safety Control Plan. To assist motor 
carriers in better understanding these reporting criteria, the 
following additional guidance is being provided:
    (1) Within 10 business days following the occurrence of a fatal 
accident, and within 30 business days following the occurrence of a 
non-fatal accident, involving a Project driver, the motor carrier would 
be required to submit details of that accident to the FHWA. The 
information would have to be sufficient enough to enable the FHWA to 
locate the corresponding police accident report. The actual police 
accident report will not be required to be submitted. Normally, it 
would be sufficient to provide the date and physical location of the 
accident, the vehicle number, and the driver's name and license number. 
If the FHWA needs nonconfidential insurance-related information, it 
would so advise the motor carrier.

    Note: This information would have to be accompanied by a revised 
calculation of accidents per million VMT, indicating the figures 
used to make the calculation.

    The motor carrier would be subject to removal from the Project (see 
below) should this accident rate exceed 0.5 accidents per million VMT 
for the most recent 36 month period. Project motor carriers with less 
than one million VMT in the most recent 36 months and having two or 
more accidents occur during the most recent 36 months would also be 
subject to removal.
    (2) Immediately following the addition of a new driver eligible for 
the Project, the motor carrier would be required to submit an update to 
the roster of Project drivers, including the name, driver's license 
number, and date of employment of each driver added. A new and complete 
driver roster would not be required each time the motor carrier intends 
to use a new driver in the Project. This could be accomplished via 
facsimile (FAX) , the U.S. Mail, or E-Mail and will be explained in 
detail in the agreement letter. Without a complete and accurate roster 
of the drivers participating in the Project, the FHWA would be unable 
to offer real-time assistance to enforcement personnel at roadside 
inspection locations.
    (3) Removal of Project drivers would call for a procedure similar 
to that described in (2) above.
    (4) Within 10 business days, the motor carrier would be required to 
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 pounds and 
26,000 pounds, or ceases to conduct operations on a year-round basis.
    (5) Within 30 business days, the motor carrier would be required to 
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. A 
resubmission of the entire Safety Control Plan would not be necessary. 
Participating motor carriers would submit, in writing, an addendum to 
the plan which describes the changes made.
    (6) Semi-annually, Project motor carriers would be required to 
provide the FHWA with a current calculation of

[[Page 37619]]

accidents per million VMT for the preceding 36 months and indicate the 
figures used to arrive at the calculation. The first calculation would 
be submitted upon the sixth-month anniversary of the date of admission 
to the Project. Subsequent calculations would be due every six months 
thereafter.

IX. 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 would, 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 would retain the right to revoke a motor carrier's 
privilege to participate in the Project if its safety performance poses 
a threat to highway safety. Participating motor carriers would not be 
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 which would not be a 
part of the Project. Also, Project drivers who pose a threat to highway 
safety would, at a minimum, be subject to immediate revocation of their 
privilege to participate in the Project.
    Should the FHWA find the highway operations of a Project motor 
carrier have placed the safety of the public in jeopardy, the agency 
would remove the motor carrier from the Project. Should the three-year 
accident rate of a Project motor carrier exceed 0.5 per million VMT for 
the most recent 36 month period, the motor carrier would be subject to 
disqualification. Additionally, Project motor carriers that incur two 
or more accidents while accruing less than one million VMT in the most 
recent 36 months would also be subject to disqualification.
    The FHWA would also immediately remove any Project driver convicted 
of any of the offenses enumerated under item 6 of the Criteria for 
Admission to the Project. Such driver convictions would not necessarily 
result in the Project motor carrier's removal. It could, however, 
result in more intensive scrutiny of the Project motor carrier's 
operation.

X. The Final Evaluation

    At the conclusion of the Project, the FHWA would conduct an 
evaluation of the Project. The principal objective of the evaluation 
would be to provide input to the FHWA's ongoing zero-base regulatory 
review. Simply put, we would determine whether a group of exemplary 
motor carriers can operate a specific class of CMVs as safely without a 
lot of regulation as it could when subject to the entire body of the 
FMCSRs.
    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 the participating motor 
carriers.
    The FHWA is cognizant of the economic realities which underlie the 
suggestion that it should assure motor carriers that the exemptions 
that would be allowed during this Project would continue beyond the 
three-year life of this pilot. It is possible that the exemptions would 
continue in some form. The case for permanent regulatory change, 
however, must be made by using valid supporting data. The agency 
recognizes that strong participation in this Project could generate 
data which may support meaningful, performance-based improvements of 
the current regulatory scheme. The FHWA cannot predict what the Project 
data will show, or what regulatory changes, if any, would be supported. 
After the first two years of the Project, the FHWA would analyze the 
Project data. Depending upon the data and its analyses, indications of 
possible regulatory changes could result.

XI. Preemption

    In response to docket comments expressing concern about the 
possible enforcement of intrastate regulations that would not be 
compatible with the requirements of this Project, 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 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 the States.
    The FHWA will not pursue preemption with regard to this Project. 
For some time, however, 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 motor carrier regulation and their 
enforcement. At the same time, the Federal-State partnership has 
resulted in a better understanding of regulatory and enforcement 
problems. Thus, a new Federal program, though it may necessitate 
corresponding changes in State enforcement activity, is more readily 
understood by State officials. The FHWA believes that the Federal-State 
partnership is capable of absorbing the changes which this Project 
requires.
    Currently, 26 States and Territories automatically adopt revisions 
to the FMCSRs. It is reasonable to believe those States and Territories 
would accept the pilot Project and its attendant exemptions while 
permitting examination of the effect of performance-based standards on 
highway safety. The FHWA will renew it's dialogue with the various 
States to reaffirm their understanding of the Project and ensure proper 
coordination and communication is accomplished.

XII. Paperwork Reduction Act of 1995

    The FHWA is aware that this Project would impose special 
recordkeeping and reporting requirements upon participating motor 
carriers. The FHWA believes the paperwork requirements proposed in this 
document are absolutely necessary to conduct this Project and to ensure 
the safety of the public on the highways. For instance, in the absence 
of a roster of drivers participating in the Project, the FHWA would be 
unable to assist roadside enforcement officials in the conduct of their 
duties. The FHWA also believes that most of the remaining records which 
would be required by this Project are routinely maintained by most 
motor carriers in the course of their day-to-day operations.
    The voluntary participants in this program would be required to 
comply with information collection requirements which are subject to 
review by the OMB under the PRA. Persons are not required to respond to 
a collection of information unless it displays a valid OMB control 
number. The information collection requirements related to this Project 
have been approved by the OMB until November 30, 2000, and assigned OMB 
Control No. 2125-0575.

[[Page 37620]]

    Generally, Federal Register concerning each collection of 
information. Comments on the information collections proposed in this 
notice will be considered by the FHWA in its request for long-term 
approval. With respect to the collections of information described 
below, the FHWA invites comments on: (1) Whether the proposed 
information collections are necessary for the proper performance of the 
functions of the agency, including whether the information will have 
practical utility; (2) the accuracy of the FHWA's estimate of the 
burden of the proposed information collections, including the validity 
of the methodology and assumptions used; (3) ways to enhance the 
quality, utility, and clarity of the information to be collected; (4) 
ways to minimize the burden of these information collections upon those 
who are to respond, including the use of automated collection 
techniques, and other forms of information collections technology.
    The title used to identify the information collections proposed in 
this notice and submitted for OMB's approval is ``Motor Carrier 
Regulatory Relief and Safety Demonstration Project.''
    This Federal Register notice proposes a voluntary pilot Project. In 
return for receiving exemptions from certain requirements of the 
FMCSRs, each Project motor carrier would be required to develop and/or 
furnish certain information about its operations. It is anticipated 
that the initial application will require about one-half hour to 
complete. This document is necessary to identify those motor carriers 
that believe they are eligible to participate in the Project, and to 
indicate their desire to participate in the Project. The Safety Control 
Plan, outlining the safety management measures the motor carrier would 
have in place to ensure that it would achieve the appropriate level of 
operational safety during the Project, would require approximately one 
and one-half hours to prepare. This document would be subject to 
examination by the FHWA, and would be used to assist the FHWA in 
ensuring that Project participants did not neglect those aspects of 
motor carrier safety which are normally addressed by the regulations 
from which they are temporarily exempt. The Safety Control Plan would 
require approximately one and one-half hours to prepare. Further, 
participating motor carriers would be required to submit to the FHWA 
the name, driver's license number, and date of employment of each 
participating driver. The motor carrier would also be required to 
advise the FHWA immediately of any changes in this information. These 
collections and submissions of information are necessary in order to 
effectively grant Project exemption to identifiable operators of CMVs 
and to permit the performance of each to be monitored and evaluated. It 
is estimated that the reporting and recordkeeping burden for these 
items would be one hour.
    It is also proposed that each accident involving Project drivers 
and/or Project vehicles would be reported to the FHWA as it occurs 
(within 10 or 30 business days, depending upon severity). Each Project 
motor carrier would also calculate and submit its accident rate per 
million VMT on a semi-annual basis, and advise the FHWA if that rate 
exceeds 0.5. This information is necessary in order to identify those 
motor carriers whose safety performance is declining during the Project 
and would also be used to assist in comparing the performance of the 
exempt motor carriers with the performance of those which remain 
subject to the FMCSRs. The annual reporting and recordkeeping burden 
for this information collection is estimated to be one-half hour.
    The most likely respondents to this information collection will be 
motor carriers operating CMVs with a GVWR between 10,001 pounds and 
26,000 pounds, operated in interstate commerce, have a satisfactory 
safety rating or is not rated, and have an accident rate less than 0.5 
per million VMT. The approximate number of motor carriers currently 
eligible to participate in the Project is 33,000. Therefore, it is 
estimated that the total annual reporting and recordkeeping burden will 
be 275 hours.

XIII. Conclusion

    The FHWA welcomes comment on any and all aspects of these proposed 
changes to the Project from all interested parties. Upon review of 
public comment, the FHWA intends to modify the project, authorize 
qualified motor carrier participation, and publish a supplemental 
notice of final determination.

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

    Issued on: July 7, 1998.
Kenneth R. Wykle,
Federal Highway Administrator.
[FR Doc. 98-18539 Filed 7-10-98; 8:45 am]
BILLING CODE 4910-22-P