[Federal Register Volume 64, Number 164 (Wednesday, August 25, 1999)]
[Notices]
[Pages 46468-46470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22000]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration
[Docket No. FRA--1999--6086; (Formerly FRA Docket No. SBR 97-1)]
RIN No. 2130-AB15


Notice of Public Meeting

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

ACTION: Notice of public meeting.

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SUMMARY: In this notice, FRA announces a public meeting that will take 
place on September 28, 1999 in Washington, D. C. The purpose of the 
meeting is to discuss the definition of ``small entity,'' for purposes 
of FRA's small business communication and enforcement policies and 
procedures, in order to determine the scope of the entities subject to 
those programs. FRA previously published an Interim Policy Statement 
Concerning Small Entities Subject to the Railroad Safety Laws and 
invited comment on the definition of ``small entity'' at that time. FRA 
received comments from interested parties and plans to discuss those at 
this meeting.

DATES: Meeting Date: The public meeting will be held on September 28, 
1999; 10 a.m. in Conference Room 1 of the FRA, 1120 Vermont Ave., NW, 
Seventh Floor, Washington, DC.
    Written Comments: (1) Written comments must be submitted to DOT's 
Central Docket Management Facility by September 20, 1999. Commenters 
should reference the docket number and

[[Page 46469]]

submit two copies of their comments. Any party that submitted comments 
to Notice #1 of this proceeding, in former docket number SBR 97-1, need 
not file comments in this proceeding unless the party has additional or 
alternate information to submit to FRA.
    Notice of Attendance: Any party who wishes to attend or participate 
in the public hearing should notify the FRA Docket Clerk by September 
20, 1999.

ADDRESSES: Written Comments: Written comments should be submitted to 
the DOT's Central Docket Management Facility at Room PL 401, 400 
Seventh Street, SW, Washington, DC 20590-0001. All documents in the 
docket are available for inspection and copying at DOT's Central Docket 
Management Facility, Plaza level of the Nassif Building at the US 
Department of Transportation, Room PL 401, 400 Seventh Street, SW, 
Washington, DC 20590-0001 between the hours of 10 a.m. and 5 p.m. 
Contents of the docket are also available for viewing on the Internet 
at http://dms.dot.gov.
    Registration: Persons wishing to register for the meeting may do so 
by contacting Ms. Renee Bridgers, FRA Docket Clerk at 202-493-6030 or 
by writing her at Office of Chief Counsel, Mail Stop 10, Federal 
Railroad Administration, 1120 Vermont Avenue, NW, Washington, DC 20590. 
Ms. Bridgers may also be contacted by e-mail at 
[email protected]. Any party wishing to attend and participate 
in the public meeting should notify Ms. Bridgers no later than 
September 20, 1999.

FOR FURTHER INFORMATION PLEASE CONTACT:
    (1) Principal Program Officer: Edward R. English, Director, Office 
of Safety Enforcement, 400 Seventh Street, SW, Mail Stop 25, 
Washington, DC 20590; telephone: 202-493-6244.
    (2) Principal Economist: Jeffery Horn, Office of Safety Analysis, 
Planning and Evaluation Division, 400 Seventh Street, SW, Mail Stop 25, 
Washington, DC 20590; telephone: 202-493-6283.
    (3) Principal Attorney: Christine Beyer, Office of Chief Counsel, 
FRA, 400 Seventh Street, SW, Mail Stop 10, Washington, DC 20590; 
telephone: 202-493-6027.

SUPPLEMENTARY INFORMATION:

I. Background

    FRA has broad statutory authority to regulate all areas of railroad 
safety, and pursuant to that authority, administers comprehensive 
regulatory and enforcement programs to address the safety of equipment, 
track and roadbed, and workplace safety in the railroad industry. FRA's 
implementation of these regulatory and enforcement programs includes 
consideration of the unique concerns of small entities and seeks to 
minimize adverse economic burdens on them where possible. Small 
businesses play a vital role in the economic and operational health of 
the railroad industry, and consequently, it has been FRA's longstanding 
policy to devote attention to the special needs of small entities, both 
in the way the agency communicates and in the agency's enforcement 
efforts.
    The Congress enacted The Small Business Regulatory Enforcement and 
Fairness Act of 1996 (SBREFA) to address a variety of issues relating 
to the federal treatment of small businesses. SBREFA established new 
requirements for federal agencies to follow with respect to small 
entities, created new duties for the Small Business Administration 
(SBA), and amended the Regulatory Flexibility Act (5 U.S.C. 601, et 
seq.) and the Equal Access to Justice Act (5 U.S.C. 501, et seq.) 
SBREFA required federal agencies to institute communication and 
enforcement polices that would give consideration to the unique 
concerns of small businesses within their jurisdiction. As a result of 
SBREFA, FRA formalized its existing communication and enforcement 
policies by incorporating them into written form, and published the 
Interim Policy Statement Concerning Small Entities Subject to the 
Railroad Safety Laws (Interim Policy Statement) on August 11, 1997. 62 
FR 43024. The Interim Policy Statement outlines FRA's communication 
efforts and commitments with respect to small entities, and explains 
how the agency seeks to accommodate the unique characteristics and 
limited profit margins of small companies in enforcing the railroad 
safety standards.

II. Definition of Small Entity in the Railroad Industry

    In the Interim Policy Statement, FRA articulated its communication 
and enforcement policies concerning small entities, and discussed the 
meaning of the term ``small entity'' for purposes of the formalized 
policies. The Interim Policy Statement explained that SBREFA 
incorporated the definition for ``small entity'' established by 
existing law for those businesses to be covered by the federal 
policies. See, 5 U.S.C. 601, 15 U.S.C. 632, 13 CFR part 121. Generally, 
a small entity is a business concern that is independently owned and 
operated, and is not dominant in it field of operation. SBA was granted 
authority to develop size categories through regulation, which clarify 
the term ``small entity'' by industry, using number of employees or 
annual income as criteria. In the SBA regulations, main line railroads 
with 1500 or fewer employees, and switching or terminal establishments 
with 500 or fewer employees constitute small entities. However, an 
agency may establish one or more other definition for this term, in 
consultation with the SBA and after opportunity for public comment, 
that are appropriate to the agency's activities. Also, ``small 
governmental jurisdictions'' that serve populations of 50,000 or less 
are small entities. (This is significant for the railroad industry 
because commuter operations are governmental jurisdictions, and some 
may fit within this statutory definition for small governmental 
jurisdictions, or small entities, for purposes of treatment under 
SBREFA.)
    As the Interim Policy Statement noted, the Interstate Commerce 
Commission (ICC) had developed a size classification system for freight 
railroads, based on annual operating revenue, long before SBA's 
regulations establishing size categories were promulgated. (The 
qualifying criteria for the ICC classifications are set forth in 49 CFR 
part 1201.) The ICC classification system has been used pervasively by 
the railroad industry and FRA to identify entities by size, and the 
Surface Transportation Board (STB), which succeeded the ICC, has not 
changed these classifications. In consultation with SBA, and as a 
result of its own judgment concerning railroad safety and appropriate 
limits on the number and economic status of companies that should take 
advantage of the benefits provided by SBREFA and the Interim Policy 
Statement, FRA determined that the ICC size classifications should be 
used, at least on an interim basis, in the railroad industry. 
Therefore, the Interim Policy Statement established that ``small 
entity'' in the railroad industry would be Class III railroads, 
shippers and railroad contractors that meet the economic limits set for 
Class III railroads, and commuter operations that serve population 
centers of 50,000 or less. The current annual operating revenue 
benchmark for Class III railroads is $20 million, adjusted by applying 
the railroad revenue deflator adjustment; this figure may change, based 
on calculations made by the STB and consistent with economic trends. 
However, FRA requested comments from the industry concerning this 
decision, and alternate classifications that would identify small 
companies in need of special treatment in such a way

[[Page 46470]]

that railroad safety would not be compromised and the intent of SBREFA 
would be met.
    In addition to establishing this interim definition for the 
railroad industry in the Interim Policy Statement, FRA requested 
comment on a variety of potential definitions: (1) Fifteen employees 
subject to the hours of service laws, which Congress used as a 
benchmark for small business exemptions in the hours of service law, 49 
U.S.C. 21102(b); (2) a total of at least 400,000 person/hours worked 
annually, which equates to approximately 200 employees and which FRA 
has used as a size classification previously; (3) the Class III 
designation currently in use; (4) the employee delineations established 
by SBA regulation; (5) any combination of these; and (6) entirely new 
designations. FRA invited comment on these possible definitions from 
all interested parties, and asked those submitting comments to provide 
the rationale for the proposals offered, including economic and 
employee data, operating concerns, and an explanation of how SBREFA's 
intent would be met by adoption of a particular definition. In 
addition, FRA stated that the agency would conduct a public meeting to 
discuss comments received and adoption of a permanent definition for 
``small entity.''
    In response to the Interim Policy Statement, the National Railroad 
Construction and Maintenance Association, Inc. (NRC) and The American 
Short Line Railroad Association (now known as The American Short Line 
and Regional Railroad Association) (ASLRRA) submitted comments to FRA. 
The comments of these organizations are available for review in the 
docket of this proceeding. In general terms, the NRC urged FRA to adopt 
the 400,000/person hours designation, and the ASLRRA urged FRA to 
expand its definition to include Class II, as well as Class III 
companies, in its definition of ``small entity.'' Class II railroads 
are those with annual operating revenues in excess of $20 million and 
less than $250 million.
    FRA will hold a public meeting on September 28 at 10:00 a.m. to 
discuss these proposals, others FRA has outlined above, and all other 
appropriate proposals that have not yet been illuminated. FRA also 
requests comment on methods by which flexibility might be incorporated 
into the definition to address changing economic trends; sudden changes 
in employee staffing levels; the development of low cost, innovative 
equipment improvements; and other future events that could make the 
definition FRA adopts now obsolete in a very short time. It is 
important to note that any new definition of ``small entity'' FRA 
adopts in this proceeding must be consistent with the principles of 
railroad safety and the intent of SBREFA. That is to say, a definition 
based solely on economic considerations would not suffice. FRA's 
statutory mandate and SBREFA require that the safety and health of the 
public, railroad employees, and the environment are the predominant 
concerns where a company's economic fitness is juxtaposed against them. 
Therefore, FRA asks that commenters and participants in the public 
meeting address how their respective proposals would meet the statutory 
requirements involved, if the definition proposed broadly covers a 
substantial sector of the industry, or includes entities in robust 
financial condition. Participants should keep in mind that the ``small 
entity'' definition FRA ultimately adopts will not necessarily 
determine the reach of any particular safety rule. This determination 
will be used in FRA's communication and enforcement policies under 
SBREFA. FRA may, as it has in the past, choose different criteria to 
determine the applicability, content, or effective date of any 
regulatory provision.
    Although the public meeting will be transcribed by a court 
reporter, it will be conducted in an informal manner. Participants who 
wish to make an opening statement concerning FRA's definition of 
``small entity'' may do so. However, FRA anticipates that all 
participants and agency representatives will engage in an informal 
dialogue of questions and answers concerning this subject.

Comments Requested

    FRA invites written comments on the definition of ``small entity,'' 
potential alternate definitions, and supporting rationale for the 
suggested alternative definitions. Please direct all written comments 
to the DOT's Central Docket Management Facility, Room PL 401, 400 
Seventh Street, SW Washington, DC 20590-0001. Any party that prepared 
written comments in response to Notice No. 1 in this proceeding in 1997 
need not file comments again, unless there is additional or alternate 
information to share.
    Any party wishing to attend the public meeting must notify the FRA 
Docket Clerk in writing by September 20; any party wishing to attend 
and participate in the meeting must notify the FRA Docket Clerk in 
writing by September 20, 1999.

    Submitted in Washington, DC, on August 20th, 1999.
Jolene M. Molitoris,
Administrator.
[FR Doc. 99-22000 Filed 8-24-99; 8:45 am]
BILLING CODE 4910-06-P