[Federal Register Volume 84, Number 218 (Tuesday, November 12, 2019)]
[Proposed Rules]
[Pages 60990-60997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24525]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Part 396
[Docket No. FMCSA-2019-0075]
RIN 2126-AC29
Passenger Carrier No-Defect Driver Vehicle Inspection Reports
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
[[Page 60991]]
ACTION: Notice of proposed rulemaking.
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SUMMARY: FMCSA proposes to rescind the requirement that drivers of
passenger-carrying commercial motor vehicles (CMVs) operating in
interstate commerce, submit, and motor carriers retain, driver-vehicle
inspection reports (DVIRs) when the driver has neither found nor been
made aware of any vehicle defects or deficiencies (no-defect DVIRs).
This proposed rule would remove an information collection burden
without adversely impacting safety.
DATES: You must submit comments on or before January 13, 2020. Comments
sent to the Office of Information and Regulatory Affairs (OIRA) at the
Office of Management and Budget (OMB) on the collection of information
must be received by OMB on or before January 13, 2020.
ADDRESSES: You may submit comments identified by docket number FMCSA-
2019-0075 using any one of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Fax: (202) 493-2251.
Mail: Docket Operations (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590-0001.
Hand delivery: Same as mail address above, between 9 a.m.
and 5 p.m., e.t., Monday through Friday, except Federal holidays.
To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' heading under
the SUPPLEMENTARY INFORMATION section for instructions on submitting
comments, including information collection comments for OIRA at OMB.
FOR FURTHER INFORMATION CONTACT: Mr. Michael Huntley, Chief, Vehicle
and Roadside Operations Division, Office of Carrier, Driver & Vehicle
Safety Standards, at Federal Motor Carrier Safety Administration 1200
New Jersey Avenue SE, Washington, DC 20590-0001;
[email protected], (202) 366-4325. If you have questions on
viewing or submitting material to the docket, contact Docket
Operations, (202) 366-9826.
SUPPLEMENTARY INFORMATION:
I. Public Participation and Request For Comments
A. Submitting Comments
If you submit a comment, please include the docket number for this
notice of proposed rulemaking (NPRM) (FMCSA-2019-0075), indicate the
specific section of this document to which your comment applies, and
provide a reason for each suggestion or recommendation. You may submit
your comments and material online or by fax, mail, or hand delivery,
but please use only one of these means. FMCSA recommends that you
include your name and a mailing address, an email address, or a phone
number in the body of your document so that FMCSA can contact you if
there are questions regarding your submission.
To submit your comment online, go to http://www.regulations.gov/#!docketDetail;D=FMCSA-2019-0075, click on the ``Comment Now!'' button
and type your comment into the text box on the following screen. Choose
whether you are submitting your comment as an individual or on behalf
of a third party and then submit.
If you submit your comments by mail or hand delivery, submit them
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit comments by mail and would
like to know that they reached the facility, please enclose a stamped,
self-addressed postcard or envelope.
FMCSA will consider all comments and material received during the
comment period and may change this proposed rule based on your
comments. FMCSA may issue a final rule at any time after the close of
the comment period.
Confidential Business Information
Confidential Business Information (CBI) is commercial or financial
information that is both customarily and actually treated as private by
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552),
CBI is exempt from public disclosure. If your comments responsive to
this NPRM contain commercial or financial information that is
customarily treated as private, that you actually treat as private, and
that is relevant or responsive to this NPRM, it is important that you
clearly designate the submitted comments as CBI. Please mark each page
of your submission that constitutes CBI as ``PROPIN'' to indicate it
contains proprietary information. FMCSA will treat such marked
submissions as confidential under the FOIA, and they will not be placed
in the public docket of this NPRM. Submissions containing CBI should be
sent to Mr. Brian Dahlin, Chief, Regulatory Analysis Division, Federal
Motor Carrier Safety Administration, 1200 New Jersey Avenue SE,
Washington DC 20590. Any comments that FMCSA receives which are not
specifically designated as CBI will be placed in the public docket for
this rulemaking.
B. Viewing Comments and Documents
To view comments, as well as any documents mentioned in this
preamble as being available in the docket, go to http://www.regulations.gov/#!docketDetail;D=FMCSA-2019-0075 and choose the
document to review. If you do not have access to the internet, you may
view the docket online by visiting Docket Operations in Room W12-140 on
the ground floor of the DOT West Building, 1200 New Jersey Avenue SE,
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.
C. Privacy Act
In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
public to better inform its rulemaking process. DOT posts these
comments, without edit, including any personal information the
commenter provides, to www.regulations.gov, as described in the system
of records notice DOT/ALL-14 FDMS, which can be reviewed at https://www.transportation.gov/privacy.
D. Waiver of Advance Notice of Proposed Rulemaking
Under 49 U.S.C. 31136(g)(1), FMCSA is required to publish an
advance notice of proposed rulemaking (ANPRM) or conduct a negotiated
rulemaking if a proposed rule is likely to lead to the promulgation of
a major rule.\1\ As this proposed rule is not likely to result in the
promulgation of a major rule, the Agency is not required to issue an
ANPRM or to proceed with a negotiated rulemaking.
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\1\ A ``major rule'' means any rule that the Administrator of
OIRA at OMB finds has resulted in or is likely to result in (a) an
annual effect on the economy of $100 million or more; (b) a major
increase in costs or prices for consumers, individual industries,
Federal agencies, State agencies, local government agencies, or
geographic regions; or (c) significant adverse effects on
competition, employment, investment, productivity, innovation, or on
the ability of United States-based enterprises to compete with
foreign-based enterprises in domestic and export markets (5 U.S.C.
804(2)).
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E. Comments on the Collection of Information
If you have comments on the collection of information discussed in
this NPRM, you must also send those comments to the Office of
Information and Regulatory Affairs at OMB. To ensure that your comments
are received on time, the preferred methods of submission are by email
to [email protected] (include docket number ``FMCSA-2019-
0075'' and ``Attention: Desk Officer for
[[Page 60992]]
FMCSA, DOT'' in the subject line of the email) or fax at 202-395-6566.
An alternative, though slower, method is by United States mail to the
Office of Information and Regulatory Affairs, Office of Management and
Budget, 725 17th Street NW, Washington, DC 20503, ATTN: Desk Officer,
FMCSA, DOT. Although comments can be received up to the close of the
comment period, comments will be most useful if received by OIRA within
30 days of publication of this NPRM.
II. Executive Summary
Purpose of the Regulatory Action
As part of the Agency's ongoing effort to review existing
regulations to evaluate their continued necessity and effectiveness,
FMCSA proposes rescinding the requirement that drivers of passenger-
carrying CMVs operating in interstate commerce, submit, and motor
carriers retain, DVIRs when the driver has neither found nor been made
aware of any vehicle defects or deficiencies. This proposed rule would
remove an information collection burden without impacting safety
adversely.
Benefits and Costs
The proposed rule would affect all passenger carriers currently
subject to 49 CFR 396.11. Current regulations require drivers employed
by passenger carriers--except drivers for private (nonbusiness)
passenger carriers, driveaway-towaway operations, or those operating
only one CMV--to report on the DVIR any vehicle defects in need of
repair noted or discovered during a driving day. Drivers must submit
this report to the employing passenger carrier so that repairs can be
made. Regulations currently require drivers of passenger-carrying CMVs
to file the DVIR even if there are no vehicle defects to report. Motor
carriers are required to maintain the original DVIR, the certification
of repairs, and the certification of the driver's review for 3 months
from the date the written report was prepared. The proposed rule would
eliminate the need for a driver to file, and a motor carrier to
maintain, a no-defect DVIR.
The Agency estimates that passenger-carrying CMV drivers spend
approximately 2.4 million hours each year completing no-defect DVIRs,
and that the proposed rule would result in a cost savings of $74
million per year. There is no discernible safety benefit to this
burden.
If finalized, the proposed rulemaking would result in reduced
government-imposed costs, and therefore would be a deregulatory action
under Executive Order (E.O.) 13771, ``Reducing Regulation and
Controlling Regulatory Costs'' (issued January 30, 2017, and published
February 3, 2017, at 82 FR 9339). The present value of the cost
savings, measured on an infinite time horizon at a 7 percent discount
rate, expressed in 2016 dollars, would be $1 billion. On an annualized
basis, these cost savings would be $71 million.
III. Legal Basis for the Rulemaking
This proposed rule is based on the authority of the Motor Carrier
Act of 1935 (1935 Act) (49 U.S.C. 31502(b)) and the Motor Carrier
Safety Act of 1984 (1984 Act) (49 U.S.C. 31136(a)), both of which are
broadly discretionary.
The 1935 Act provides that the Secretary of Transportation
(Secretary) may prescribe requirements for the following:
Qualifications and maximum hours of service of employees
of, and safety of operation and equipment of, a motor carrier (Sec.
31502(b)(1)), and
Qualifications and maximum hours of service of employees
of, and standards of equipment of, a motor private carrier, when needed
to promote safety of operation (Sec. 31502(b)(2)).
This rulemaking is based on the Secretary's authority under both
Sec. 31502(b)(1) and (2).
The 1984 Act authorizes the Secretary to regulate drivers, motor
carriers, and vehicle equipment. Section 31136(a) requires the
Secretary to publish regulations on CMV safety. Specifically, the Act
sets forth minimum safety standards to ensure that: (1) CMVs are
maintained, equipped, loaded, and operated safely (49 U.S.C.
31136(a)(1)); (2) the responsibilities imposed on operators of CMVs do
not impair their ability to operate the vehicles safely (49 U.S.C.
31136(a)(2)); (3) the physical condition of CMV operators is adequate
to enable them to operate the vehicles safely (49 U.S.C. 31136(a)(3));
and (4) the operation of CMVs does not have a deleterious effect on the
physical condition of the operators (49 U.S.C. 31136(a)(4)). Section
32911 of the Moving Ahead for Progress in the 21st Century Act (MAP-21)
[Pub. L. 112-141, 126 Stat. 405, 818, July 6, 2012] enacted a fifth
requirement, i.e., to ensure that ``(5) an operator of a commercial
motor vehicle is not coerced by a motor carrier, shipper, receiver, or
transportation intermediary to operate a commercial motor vehicle in
violation of a regulation promulgated under this section, or chapter 51
or chapter 313 of this title'' (49 U.S.C. 31136(a)(5)). The 1984 Act
grants the Secretary broad power in carrying out motor carrier safety
statutes and regulations to ``prescribe recordkeeping and reporting
requirements'' and to ``perform other acts the Secretary considers
appropriate'' (49 U.S.C. 31133(a)(8) and (10)).
This proposed rule implements, in part, the Administrator's
authority under Sec. 31136(a)(1) to ensure that CMVs are maintained,
equipped, loaded, and operated safely. The NPRM is also based on the
broad recordkeeping and implementation authority of Sec. 31133(a)(8)
and (10). This proposed rule addresses only CMV equipment and reporting
requirements. It does not address the question whether drivers'
responsibilities affect their ability to operate CMVs safely (49 U.S.C.
31136(a)(2)). The provisions of the 1984 Act dealing with the physical
condition of drivers (Sec. 31136(a)(3)-(4)) do not apply. Finally, as
to ensuring that operators of CMVs are not coerced by motor carriers,
shippers, receivers, or transportation intermediaries to operate a CMV
in violation of a regulation, the rule would eliminate only the
requirement for drivers of passenger-carrying CMVs to prepare reports
when there are no defects or deficiencies; it would keep in place the
rule requiring reports when there are defects or deficiencies, as well
as the requirement for motor carriers to take appropriate action on
receipt of the report when problems with the vehicle are noted. Because
the rule would remove a regulatory burden criticized by both drivers
and motor carriers (and irrelevant to passenger brokers or tour
groups), there is virtually no possibility that the driver of a
passenger-carrying CMV would be coerced to violate the rule itself. A
passenger carrier may require a driver to continue filing no-defect
DVIRs even in the absence of a regulatory requirement, but that would
be a condition of employment to perform duties not required by a safety
regulation, and would therefore not constitute coercion to violate a
safety regulation.
IV. Background
In response to a joint petition for rulemaking submitted by the
Ocean Carrier Equipment Management Association and the Institute of
International Container Lessors, FMCSA published a final rule on June
12, 2012 (77 FR 34846), eliminating the requirement for drivers
operating intermodal equipment (IME) to submit--and intermodal
equipment providers to retain--DVIRs when the driver has neither found
nor been made aware of any defects in the IME. The Agency estimated
that approximately 95 percent of DVIRs for IME do not identify
[[Page 60993]]
defects and concluded that requiring DVIRs to be filed only on the
roughly 5 percent of IME with defects would focus attention on the IME
that needs it--rather than the 95 percent with no defects. FMCSA
emphasized that the rule did not change a driver's obligation to assess
the condition of IME at the end of a workday to determine whether the
IME has defects or deficiencies that could affect operational safety.
Although FMCSA removed the requirement for a driver to complete a DVIR
if no defects or deficiencies had been discovered by or reported, the
driver must still inspect the IME to make this determination and
prepare a DVIR if defects or deficiencies are discovered or reported.
The Agency stated that it did not believe that implementation of the
rule would lead to an increase in safety risk because there are
multiple opportunities for IME to be inspected for potential safety
defects. FMCSA estimated the time and cost savings associated with the
rule due to reduced paperwork burdens to be 1.636 million hours and $54
million dollars annually.
Subsequently, and in response to Executive Order 13563, ``Improving
Regulation and Regulatory Review'' (issued January 18, 2011, and
published January 21, 2011, at 76 FR 3821), FMCSA published an NPRM on
August 7, 2013 (78 FR 48125) that proposed extending the same relief
regarding no-defect DVIRs to all interstate motor carriers subject to
part 396 of the FMCSRs, except operators of passenger-carrying CMVs.
FMCSA published a final rule on December 18, 2014 (79 FR 75437),
adopting the changes proposed in the NPRM. As with the June 2012 final
rule regarding no-defect DVIRs for IME, FMCSA concluded that the no-
defect DVIR requirements impose a substantial time and paperwork burden
on the trucking industry with no discernible safety benefit. FMCSA
estimated that non-passenger-carrying CMV drivers spend approximately
46.7 million hours each year completing no-defect DVIRs, and estimated
that the monetized value of this time was $1.7 billion per year.
V. Discussion of Proposed Rulemaking
The Agency proposes to rescind, for operators of passenger-carrying
CMVs, the requirement in 49 CFR 396.11(a)(2) that CMV drivers submit,
and motor carriers retain, DVIRs when the driver has neither found nor
been made aware of any vehicle defects or deficiencies.
Drivers and motor carriers have long been required to share the
safety responsibility for operating CMVs and for assessing the
condition of CMVs and documenting deficiencies and repairs. Section
392.7(a) states that ``No commercial motor vehicle shall be driven
unless the driver is satisfied that the following parts and accessories
are in good working order . . .'' Section 393.1(b)(1) provides that
``[e]very motor carrier and its employee must be knowledgeable of and
comply with the requirements and specifications of this part,'' and
Sec. 393.1(c) states that ``No motor carrier may operate a commercial
motor vehicle, or cause or permit such vehicle to be operated, unless
it is equipped in accordance with the requirements and specifications
of this part.'' Section 396.3(a)(1) requires that ``[p]arts and
accessories shall be in safe and proper operating condition at all
times.'' Section 396.11(a) states that every motor carrier must
``require its drivers to report, and every driver shall prepare a
report in writing at the completion of each day's work on each vehicle
operated,'' covering a specific list of parts and accessories. Section
396.11(c) states that ``Prior to requiring or permitting a driver to
operate a vehicle, every motor carrier or its agent shall repair any
defect or deficiency listed on the driver vehicle inspection report
which would be likely to affect the safety of operation of a vehicle.''
FMCSA emphasizes that the Agency is not foregoing the fundamental
requirements of part 393, Parts and Accessories Necessary for Safe
Operation, nor is it proposing to change any other element of the
inspection, repair, and maintenance requirements of part 396. Drivers
will still be required to perform pre-trip evaluations of equipment
condition and complete DVIRs if any defects or deficiencies are
discovered or reported during the day's operations. Motor carriers will
still be required to have systematic inspection, repair, and
maintenance (including preventative maintenance) programs and maintain
records to prove measures are being taken to reduce to the extent
practicable, the risk of mechanical problems occurring while the
vehicle is in operation. In addition, motor carriers will still be
required to review DVIRs that list defects or deficiencies and take
appropriate action before the vehicle is dispatched again. The Agency
will retain the requirement that carriers complete periodic or annual
inspections and maintain documentation for the individuals who perform
periodic inspections and individuals responsible for performing brake-
related inspection, repair, and maintenance tasks. Furthermore, these
CMVs will remain subject to roadside inspections.
In excluding passenger-carrying CMVs from the December 2014 final
rule, FMCSA noted that (1) a passenger carrier crash is a low-
probability but high-consequence event in terms of potential deaths and
injuries, so vehicle maintenance is paramount, (2) motorcoach drivers
often need to interact with their passengers at the beginning and end
of their workday, and often during the trip as well, which may impact
the driver's ability to properly document defects and deficiencies in
the mechanical condition of the vehicle, and (3) because they are
carrying the most valuable cargo, motor carriers of passengers must
exercise heightened diligence over their operations, including CMV
maintenance.
FMCSA has reviewed available data spanning several years regarding
vehicle out-of-service rates for both trucks and passenger-carrying
vehicles, including data before and after implementation of the
December 2014 final rule. FMCSA's Motor Carrier Management Information
System (MCMIS) data show that the vehicle out-of-service rate for
trucks is consistently about 21 percent annually--both before and after
implementation of the December 2014 final rule. While the Agency
received several public comments during development of the December
2014 rule expressing concern that eliminating the requirement for no-
defect DVIRs would result in (1) a reduced level of safety and
maintenance and (2) a higher percentage of vehicle violations and out-
of-service orders, the data show that the vehicle out-of-service rate
for trucks has remained nearly constant before and after implementation
of the rule.
The MCMIS data also show that the vehicle out-of-service rate for
passenger-carrying vehicles is approximately 6.6 percent annually--
consistently less than one-third of the corresponding vehicle out-of-
service rate for trucks. From this data, motor carriers of passengers--
because of the nature of their operations and sensitive cargo that they
transport--have established and implemented comprehensive inspection,
repair and maintenance programs that help ensure that their vehicles
are in safe and proper operating condition at a rate that far exceeds
that of other CMVs. As noted above, implementation of the December 2014
rule eliminating the requirement for no-defect DVIRs for trucks has not
resulted in a reduced level of maintenance and safety or a higher
percentage of vehicle violations and out-of-service violations. Given
that passenger-carrying vehicles have a significantly lower vehicle
out-of-service rate generally, the Agency does not believe that
extending to them the same relief from the preparation and
[[Page 60994]]
retention of no-defect DVIRs will result in any degradation in safety.
Further, FMCSA emphasizes that it is not proposing to prohibit motor
carriers of passengers from requiring their drivers to prepare no-
defect DVIRs if they wish, but is only proposing to eliminate the
current requirement for a no-defect DVIR.
V. International Impacts
The FMCSRs, and any exceptions to the FMCSRs, apply only within the
United States (and, in some cases, United States territories). Motor
carriers and drivers are subject to the laws and regulations of the
countries in which they operate, unless an international agreement
states otherwise. Drivers and carriers should be aware of the
regulatory differences among nations.
VI. Section-by-Section Analysis
FMCSA proposes amending 49 CFR part 396 by deleting a portion of
the last sentence in Sec. 396.11(a)(2) that reads ``The driver of a
passenger-carrying CMV subject to this regulation must prepare a report
even if no defect or deficiency is discovered by or reported to the
driver; the drivers of all other commercial motor vehicles are not
required to prepare a report if no defect or deficiency is discovered
by or reported to the driver.'' FMCSA would revise the sentence to read
``Drivers are not required to prepare a report if no defect or
deficiency is discovered by or reported to the driver.''
VII. Regulatory Analyses
A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563 (Improving
Regulation and Regulatory Review), and DOT Regulatory Policies and
Procedures
This proposed rule is not a significant regulatory action under
section 3(f) of E.O. 12866, Regulatory Planning and Review, as
supplemented by E.O. 13563 (76 FR 3821, January 21, 2011), and is also
not significant within the meaning of DOT regulatory policies and
procedures (DOT Order 2100.6, Dec. 18, 2018) and does not require an
assessment of potential costs and benefits under section 6(a)(4) of
that Order. The Office of Management and Budget has not reviewed it
under that Order.
Baseline for the Analysis
Under Sec. 396.11, interstate passenger carriers [except private
(nonbusiness) carriers, driveaway-towaway operations, or those
operating only one CMV] must require their drivers to prepare a DVIR at
the completion of work each day for each vehicle operated that covers
at a minimum:
Service brakes including trailer brake connections
Parking brake
Steering mechanism
Lighting devices and reflectors
Tires
Horn
Windshield wipers
Rear vision mirrors
Coupling devices
Wheels and rims
Emergency equipment.
The report must list any defect or deficiency discovered by or
reported to the driver which would affect the safety of operation or
result in mechanical breakdown. The driver must prepare and submit the
report even if no defect or deficiency is identified and the carrier
must retain the report for three months from the date the written
report was prepared.
Passenger carriers use various means of compliance with this
requirement including paper DVIRs and associated processes for tracking
and filing (e.g., separating DVIRs that identify defects from those
that do not; maintaining separate files of each) and electronic systems
for completing a DVIR and retaining the record.\2\
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\2\ J.J. Keller provides a sample paper report available at
https://www.jjkellertraining.com/Samples/28146_JJK_Motor_Coach_Vehicle_Inspections_DEMO/story_content/external_files/DVIR.pdf. A wide variety of vendors supply electronic
DVIR systems, such as https://www.teletracnavman.com/our-solutions/compliance/dvir, https://www.verizonconnect.com/resources/article/electronic-inspection-form-dvir/, and https://fleetrevolution.com/fleetrevolution-bus-dvir.
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FMCSA does not have information on the ratio of electronic versus
paper-based DVIR processes used by passenger carriers. Regardless of
the means of compliance, the burden associated with the existing
requirement to complete no-defect DVIRs is estimated at 155 seconds per
report in the most recent approved supporting statement for Information
Collection Request (ICR), OMB control number 2126-0003.
The supporting statement estimated that there are 247,496
passenger-carrying CMVs in operation and subject to the current DVIR
requirements. As such, the no-defect DVIR rule imposes a substantial
time and paperwork burden on passenger carriers with no discernible
safety benefit.
Costs
In 2014, the Agency estimated cost savings associated with
eliminating the requirement for no-defect DVIRs for property carrying
CMVs. As that rule is analogous to the proposed rule, this analysis
follows the same approach. The Agency's 2018 approved supporting
statement for ICR 2126-0003 states that there are 247,496 passenger-
carrying CMVs for which DVIRs must be prepared, submitted, and
reviewed. Consistent with the methodology of the supporting statement
and the 2014 analysis, the Agency assumes that each of these vehicles
is used 65 percent of the year, and that 95 percent of DVIRs are no-
defect DVIRs for which it estimated a burden of 155 seconds. Therefore,
the Agency estimated a paperwork burden of 2,401,747 hours [247,496
vehicles x (0.65 x 365) x 0.95 x 155 = 8,646,288,229 seconds or
2,401,747 hours]. Using a labor rate of $31 per hour,\3\ the Agency
estimates a potential cost savings of $74 million per year. Because
some carriers might choose to continue to require their drivers to
submit no-defect DVIRs, the actual cost savings could be less than the
potential. The Agency, however, assumes that a rational agent would
seek to reduce costs, and that all carriers subject to the proposed
rule would cease to require no-defect DVIRs. Therefore, the proposed
rule would result in cost savings of $74 million per year (Table 1).
The Agency welcomes input on the degree to which carriers subject to
the proposed rule would retain no-defect reporting.
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\3\ This wage is specific to bus drivers. Note that this rate
differs from that used in the approved supporting statement which
reflected the wage for a business operations specialist in the truck
transportation industry.
Table 1--Calculation of Annual Cost Savings
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Variable Value
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Number of CMVs.......................................... 247,496
Frequency of daily usage................................ 65%
Frequency of no-defect DVIRs............................ 95%
Time to complete a no-defect DVIR (seconds)............. 155
Total time saved (hours)................................ 2,401,747
Wage rate (per hour) \1\................................ $31
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Total savings....................................... $73,665,012
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\1\ Source: Bureau of Labor Statistics (BLS). 2019. May 2018 National
Industry-Specific Occupational Employment and Wage Estimates. https://www.bls.gov/bls/blswage.htm. Based on occupational code 53-3021, Bus
Drivers, Transit and Intercity. The wage rate is scaled up to reflect
an estimate of the total labor costs; wages and salaries accounted for
70.0% of total employee cost for private industry workers in December
2018 (BLS, 2019; https://www.bls.gov/news.release/pdf/ecec.pdf).
Benefits
The potential for the proposed rule to result in benefits relates
to the change in crash risk, if any, that would result
[[Page 60995]]
from allowing a defect-based DVIR approach. The Agency has no
information to suggest that preparation, submission, and review of no-
defect DVIRs produces a greater level of safety than that of a defect-
based approach. Further, no degradation in safety attributable to the
2014 elimination of the no-defect DVIR requirement for trucks has been
observed. Both the baseline approach and the defect-based approach
ensure that vehicles are inspected so that defects are noted and
addressed. Therefore, the proposed rule would be expected to maintain
the same level of safety. The Agency, however, seeks comment on the
safety impact of the proposed rule and notes that commenters to the
analogous rule for trucks had varied opinions regarding whether no-
defect DVIRs are of value with respect to safety (see Docket No. FMCSA-
2012-0036).
B. E.O. 13771 (Reducing Regulation and Controlling Regulatory Costs)
This proposed rule would have total costs less than zero, and is
therefore an E.O. 13771 deregulatory action.\4\ The present value of
the cost savings of this rule, measured on an infinite time horizon at
a 7 percent discount rate, expressed in 2016 dollars, and discounted to
2020 (the year the rule goes into effect and cost savings would first
be realized), is $1 billion. On an annualized basis, these cost savings
are $71 million.
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\4\ Executive Office of the President. Office of Management and
Budget. Memorandum M-17-21. Guidance Implementing Executive Order
13771. April 5, 2017. Q4 on page 4.
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For E.O. 13771 accounting, the April 5, 2017, OMB guidance requires
that agencies also calculate the costs and cost savings discounted to
year 2016.\5\ In accordance with this requirement, the present value of
the cost savings of this rule, measured on an infinite time horizon at
a 7 percent discount rate, expressed in 2016 dollars, and discounted to
2016, is $771 million. On an annualized basis, these cost savings are
$54 million.
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\5\ Executive Office of the President. Office of Management and
Budget. Memorandum M-17-21. Guidance Implementing Executive Order
13771. April 5, 2017. Q25 on page 11.
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C. Regulatory Flexibility Act (Small Entities)
The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.)
requires Federal agencies to consider the effects of a regulatory
action on small business and other small entities and to minimize any
significant economic impact. The term ``small entities'' comprises
small businesses and not-for-profit organizations that are
independently owned and operated and are not dominant in their fields
and governmental jurisdictions with a population of less than
50,000.\6\
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\6\ Regulatory Flexibility Act (5 U.S.C. 601 et seq.), see
National Archives at http://www.archives.gov/federal-register/laws/regulaotry-flexibility/601.html.
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Accordingly, DOT policy requires an analysis of the impact of all
regulations on small entities, and mandates that agencies try to
minimize any adverse effects on these entities. Under the Regulatory
Flexibility Act, as amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (SBREFA) (Pub. L. 104-121, 110 Stat.
857), the proposed rule is expected to have a positive economic impact
on small entities in the form of cost savings through the elimination
2.4 million paperwork burden hours.
FMCSA invites comment from members of the public who believe there
will be a significant impact either on small businesses or on
governmental jurisdictions with a population of less than 50,000.
Initial Regulatory Flexibility Analysis (IRFA)
(1) A description of the reason why action by the Agency is being
considered.
FMCSA proposes rescinding the requirement that drivers of
passenger-carrying CMVs submit, and motor carriers retain, a DVIR when
the driver has neither found nor been made aware of any vehicle defects
or deficiencies (no-defect DVIR). This proposed rule would remove a
significant information collection burden without adversely impacting
safety.
(2) A succinct statement of the objectives of, and legal basis for,
the proposed rule.
The objective of the NPRM is to eliminate a paperwork burden on
passenger-carrying motor carriers currently subject to 49 CFR 396.11.
This proposed rule is based on the authority of the 1935 Act and the
1984 Act, both of which are broadly discretionary. The rule implements,
to some extent, the Administrator's authority under Sec. 31136(a)(1)
to ensure that CMVs are maintained, equipped, loaded, and operated
safely. The NPRM is also based on the broad recordkeeping and
implementation authority of Sec. 31133(a)(8) and (10). The removal of
the obligation to prepare and retain no-defect DVIRs would not
compromise drivers' ability to report vehicle problems to the carrier,
or relieve carriers of the responsibility to act to correct such
problems.
(3) A description of and, where feasible, an estimate of the number
of small entities to which the proposed rule would apply.
The Small Business Administration (SBA) has established size
standards for various types of economic activities, or industries,
under the North American Industry Classification System (NAICS). These
size standards generally define small businesses based on the number of
employees or annual receipts. For example, the SBA defines a small
business in the transit and ground passenger transportation subsectors
(NAICS 485) as an entity with annual revenue of less than $15 million
(13 CFR 121.201). The SBA definition of a small business applies to a
firm's highest domestic parent entity and all affiliates as a single
entity. The business size is determined based on the primary economic
sector of the parent company, which is not necessarily NAICS 485.
FMCSA data indicate a total of 8,189 interstate and intrastate
passenger carriers. However, the Agency does not have data on company
affiliations, NAICS, and revenues or employees with which to determine
how many of these carriers are small entities.
(4) A description of the projected reporting, recordkeeping, and
other compliance requirements of the proposed rule, including an
estimate of the classes of small entities which would be subject to
requirements and the type of professional skills necessary for
preparation of the report or record.
The proposed rule eliminates the need for drivers of passenger-
carrying CMVs to complete a DVIR on days during which they do not
identify any defects. The companies for which these drivers work would
also be spared the burden of maintaining no-defect reports. The
proposed rule would apply to interstate passenger carriers (except
private (nonbusiness) carriers, driveaway-towaway operations, or those
operating only one CMV). The skills necessary for drivers to complete
the report are knowledge of vehicle operation and maintenance. The
skills necessary for motor carrier staff maintaining these records may
be administrative as well as those of a safety or regulatory compliance
clerk.
(5) Identification, to the extent practicable, of all relevant
Federal rules which may duplicate, overlap, or conflict with the
proposed rule.
This proposed rule does not duplicate, overlap, or conflict with
any Federal rules.
(6) A description of any significant alternatives to the proposed
rule which accomplish the stated objectives of applicable statutes and
which minimize
[[Page 60996]]
any significant economic impact of the proposed rule on small entities.
The Agency has concluded that there are no significant alternatives
to the proposed rule that would eliminate the paperwork burden without
requiring additional investment (e.g., in electronic DVIR systems).
D. Assistance for Small Entities
Pursuant to section 213 of SBREFA, FMCSA wants to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking
initiative. If the proposed rule would affect your small business,
organization, or governmental jurisdiction and you have questions
concerning its provisions or options for compliance, please consult the
FMCSA point of contact, listed in the FOR FURTHER INFORMATION CONTACT
section of this proposed rule.
Small businesses may send comments on the actions of Federal
employees who enforce or otherwise determine compliance with Federal
regulations to the Small Business Administration's Small Business and
Agriculture Regulatory Enforcement Ombudsman and the Regional Small
Business Regulatory Fairness Boards. The Ombudsman evaluates these
actions annually and rates each agency's responsiveness to small
business. If you wish to comment on actions by employees of FMCSA, call
1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding the rights
of small entities to regulatory enforcement fairness and an explicit
policy against retaliation for exercising these rights.
E. Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. The Act addresses actions that may result in the
expenditure by a State, local, or tribal government, in the aggregate,
or by the private sector of $165 million (which is the value equivalent
of $100,000,000 in 1995, adjusted for inflation to 2018 levels) or more
in any one year. Though this proposed rule would not result in such an
expenditure, the Agency does discuss the effects of this rule in this
preamble.
F. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
FMCSA to consider the impact of paperwork and other information
collection burdens imposed on the public. This proposed rule would
result in a reduction of burden hours for the ``Inspection, Repair, and
Maintenance'' ICR, OMB control number 2126-0003. This ICR comprises ten
individual information collections, each corresponding to a different
area of the inspection, repair, and maintenance requirements. This
proposed rule affects only the ICR section dealing with the Driver
Vehicle Inspection Reports for Burden for No-Defect DVIRs for
Passenger-Carrying Vehicles.
In 2018, based on data from its Motor Carrier Management
Information System (MCMIS) and Licensing and Insurance System (L&I),
FMSCA estimated that there are approximately 247,496 passenger-carrying
CMVs. Consistent with past analyses of this ICR, the Agency assumed
that these CMVs are used on average 65 percent of the year.
FMCSA has divided the DVIR process into two steps. The Agency
estimated the first step, filling out a DVIR, to take 2 minutes, 30
seconds. The Agency estimated the second step, reviewing and signing a
DVIR, to take 20 seconds when defects are reported and 5 seconds when
no defects are reported. When there are no defects to note, there is
nothing to review on the DVIR, and the form requires only a signature.
The Agency estimates that 5 percent of DVIRs note defects and 95
percent of DVIRs note no defects.
If this proposed rule were to be finalized, the burden associated
with no-defect DVIRs for passenger-carrying CMVs would be eliminated.
The table below illustrates how this result is calculated.
Table 2--Detail of No-Defect DVIR PRA Calculations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total DVIRs
(CMVs x
Number of Utilization utilization
Activity passenger- rate (of 365 Percent of rate x percent Burden per DVIR (seconds) Total annual
carrying CMVs calendar days) CMVs affected of CMVs hourly burden
affected x
365)
--------------------------------------------------------------------------------------------------------------------------------------------------------
No Defect DVIRS, passenger-carrying CMVs.. 247,496 65% 95% 152,829 155......................... 2,401,747
--------------------------------------------------------------------------------------------------------------------------------------------------------
If this proposed rule were to be finalized, the annual reduction in
hourly burdens associated with elimination of no defect DVIRs for
passenger carrying CMVs is estimated to be 2,401,747 (247,496 CMVs x
65% utilization x 365 days x 95% of CMVs x 155 seconds / 3,600 seconds
per hour). The monetary value of this annual burden reduction,
calculated using an hourly labor cost of $31, is $73,665,012 million
(2,401,747 hours x $31, per hour).\7\
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\7\ 1. Source: Bureau of Labor Statistics (BLS). 2019. May 2018
National Industry-Specific Occupational Employment and Wage
Estimates. https://www.bls.gov/bls/blswage.htm. Based on
occupational code 53-3021, Bus Drivers, Transit and Intercity. The
wage rate is scaled up to reflect an estimate of the total labor
costs; wages and salaries accounted for 70.0% of total employee cost
for private industry workers in December 2018 (BLS, 2019; https://www.bls.gov/news.release/pdf/ecec.pdf).
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G. E.O. 13132 (Federalism)
A rule has implications for Federalism under Section 1(a) of E.O.
13132 if it has ``substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.'' FMCSA determined that this proposal would not have
substantial direct costs on or for States nor would it limit the
policymaking discretion of States. Nothing in this document preempts
any State law or regulation. Therefore, this rule does not have
sufficient Federalism implications to warrant the preparation of a
Federalism Impact Statement.
H. E.O. 12988 (Civil Justice Reform)
This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.
[[Page 60997]]
I. E.O. 13045 (Protection of Children)
Executive Order 13045, Protection of Children from Environmental
Health Risks and Safety Risks (62 FR 19885, April 23, 1997), requires
agencies issuing ``economically significant'' rules, if the regulation
also concerns an environmental health or safety risk that an agency has
reason to believe may disproportionately affect children, to include an
evaluation of the regulation's environmental health and safety effects
on children. FMCSA determined this proposed rule is not economically
significant. Therefore, no analysis of the impacts on children is
required. In any event, FMCSA does not anticipate that this regulatory
action could in any respect present an environmental or safety risk
that could disproportionately affect children.
J. E.O. 12630 (Taking of Private Property)
FMCSA reviewed this proposed rule in accordance with E.O. 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights, and has determined it would not effect a taking of
private property or otherwise have taking implications.
K. Privacy
The Consolidated Appropriations Act, 2005, (Pub. L. 108-447, 118
Stat. 2809, 3268, 5 U.S.C. 552a note) requires the Agency to conduct a
privacy impact assessment of a regulation that will affect the privacy
of individuals. The Agency will complete a Privacy Threshold Assessment
(PTA) to evaluate the risks and effects the proposed rulemaking might
have on collecting, storing, and sharing personally identifiable
information. The PTA will be submitted to FMCSA's Privacy Officer for
review and preliminary adjudication and to DOT's Privacy Officer for
review and final adjudication.
L. E.O. 12372 (Intergovernmental Review)
The regulations implementing E.O. 12372 regarding intergovernmental
consultation on Federal programs and activities do not apply to this
program.
M. E.O. 13211 (Energy Supply, Distribution, or Use)
FMCSA has analyzed this proposed rule under E.O. 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. FMCSA has determined that it is not a
``significant energy action'' under that order because it is not a
``significant regulatory action'' likely to have a significant adverse
effect on the supply, distribution, or use of energy. Therefore, it
does not require a Statement of Energy Effects under E.O. 13211.
N. E.O. 13175 (Indian Tribal Governments)
This rule does not have tribal implications under E.O. 13175,
Consultation and Coordination with Indian Tribal Governments, because
it does not have a substantial direct effect on one or more Indian
Tribes, on the relationship between the Federal government and Indian
Tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian Tribes.
O. National Technology Transfer and Advancement Act (Technical
Standards)
The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through OMB, with an explanation of why using these standards would be
inconsistent with applicable law or otherwise impractical. Voluntary
consensus standards (e.g., specifications of materials, performance,
design, or operation; test methods; sampling procedures; and related
management systems practices) are standards developed or adopted by
voluntary consensus standards bodies. This rule does not use technical
standards. Therefore, FMCSA did not consider the use of voluntary
consensus standards.
P. Environment (NEPA)
FMCSA analyzed this NPRM consistent with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) and determined this action
is categorically excluded from further analysis and documentation in an
environmental assessment or environmental impact statement under FMCSA
Order 5610.1 (69 FR 9680 (Mar. 1, 2004)), Appendix 2, paragraph
(6)(aa). The Categorical Exclusion (CE) in paragraph (6)(aa) relates to
regulations requiring motor carriers, drivers, and others to ``inspect,
repair, and provide maintenance for every CMV used on a public road,''
which is the focus of this rulemaking. The proposed requirements in
this rule are covered by this CE, there are no extraordinary
circumstances present, and the proposed action does not have the
potential to significantly affect the quality of the environment. The
CE determination is available for inspection or copying in the
regulations.gov website listed under ADDRESSES.
List of Subjects in 49 CFR Part 396
Highway safety, Motor carriers, Motor vehicle safety, Reporting and
recordkeeping requirements.
For the reasons stated in the preamble, FMCSA proposes amending
title 49 CFR, Code of Federal Regulations, chapter III, to read as
follows:
PART 396--INSPECTION, REPAIR, AND MAINTENANCE
0
1. The authority citation for part 396 continues to read as follows:
Authority: 49 U.S.C. 504, 31133, 31136, 31151, and 31502; sec.
32934, Pub. L. 112-141, 126 Stat. 405, 830; sec. 5524, Pub. L. 114-
94, 129 Stat. 1312, 1560; and 49 CFR 1.87.
0
2. Amend Sec. 396.11 by revising paragraph (a)(2) to read as follows:
Sec. 396.11 Driver vehicle inspection report(s).
(a) * * *
(2) Report content. (i) The report must identify the vehicle and
list any defect or deficiency discovered by or reported to the driver
which would affect the safety of operation of the vehicle or result in
its mechanical breakdown. If a driver operates more than one vehicle
during the day, a report must be prepared for each vehicle operated.
Drivers are not required to prepare a report if no defect or deficiency
is discovered by or reported to the driver.
(ii) The driver must sign the report. On two-driver operations,
only one driver needs to sign the driver vehicle inspection report,
provided both drivers agree as to the defects or deficiencies
identified.
* * * * *
Issued under authority delegated in 49 CFR 1.87 on: November 4,
2019.
Jim Mullen,
Acting Administrator.
[FR Doc. 2019-24525 Filed 11-8-19; 8:45 am]
BILLING CODE 4910-EX-P