[Federal Register Volume 85, Number 30 (Thursday, February 13, 2020)]
[Rules and Regulations]
[Pages 8192-8198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01761]



[[Page 8192]]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Part 367

[Docket No. FMCSA-2019-0066]
RIN 2126-AC26


Fees for the Unified Carrier Registration Plan and Agreement

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Final rule.

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SUMMARY: This rule establishes reductions in the annual registration 
fees the States collect from motor carriers, motor private carriers of 
property, brokers, freight forwarders, and leasing companies for the 
Unified Carrier Registration (UCR) Plan and Agreement for the 
registration years beginning in 2020. For the 2020 registration year, 
the fees will be reduced by 14.45 percent below the 2018 registration 
fee level to ensure that fee revenues collected do not exceed the 
statutory maximum, and to account for the excess funds held in the 
depository. The fees will remain at the same level for 2021 and 
subsequent years unless revised in the future. The reduction of the 
current 2019 registration year fees (finalized on December 28, 2018) 
range from approximately $3 to $2,712 per entity, depending on the 
number of vehicles owned or operated by the affected entities.

DATES: This final rule is effective February 13, 2020.
    Petitions for Reconsideration of this final rule must be submitted 
to the FMCSA Administrator no later than March 16, 2020.

FOR FURTHER INFORMATION CONTACT: Mr. Gerald Folsom, Office of 
Registration and Safety Information, Federal Motor Carrier Safety 
Administration, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, 
(202) 385-2405.

SUPPLEMENTARY INFORMATION: 

I. Rulemaking Documents

A. Availability of Rulemaking Documents

    For access to docket FMCSA-2019-0066 to read background documents, 
go to https://www.regulations.gov at any time, or to Docket Operations 
at U.S. Department of Transportation, Room W12-140, 1200 New Jersey 
Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays.

B. Privacy Act

    In accordance with 5 U.S.C. 553(c), the U.S. Department of 
Transportation (DOT) solicits comments from the public to better inform 
its rulemaking process. DOT posts any 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.

II. Abbreviations and Acronyms

    The following is a list of abbreviations used in this document

CE Categorical Exclusion
DOT U.S. Department of Transportation
E.O. Executive Order
FMCSA Federal Motor Carrier Safety Administration
NPRM Notice of Proposed Rulemaking
OMB Office of Management and Budget
PRA Paperwork Reduction Act
RFA Regulatory Flexibility Act
SBREFA Small Business Regulatory Enforcement Fairness Act
SBTC Small Business in Transportation Coalition
SSRS Single State Registration System
UCR Unified Carrier Registration
UCR Agreement Unified Carrier Registration Agreement
UCR Board Unified Carrier Registration Board of Directors
UCR Plan Unified Carrier Registration Plan

III. Executive Summary

A. Purpose and Summary of the Major Provisions

    The UCR Plan and the 41 States participating in the UCR Agreement 
establish and collect fees from motor carriers, motor private carriers 
of property, brokers, freight forwarders, and leasing companies. The 
UCR Plan and Agreement are administered by a 15-member board of 
directors (UCR Board); 14 appointed from the participating States and 
the industry, plus the Deputy Administrator of FMCSA or another 
Presidential appointee from the Department. Revenues collected are 
allocated to the participating States and the UCR Plan. The maximum 
amount that the UCR Plan may collect is established by statute. If 
annual revenue collections will exceed the statutory maximum allowed, 
then the UCR Plan must request adjustments to the fees (49 U.S.C. 
14504a(f)(1)(E)). In addition, any excess funds held by the UCR Plan 
after payments are made to the States and for administrative costs are 
retained in the UCR depository, and fees subsequently charged must be 
adjusted further to return the excess revenues held in the depository 
as required by 49 U.S.C. 14504a(h)(4). Adjustments in the fees are 
requested by the UCR Plan and approved by FMCSA. These two provisions 
are the reasons for the two-stage adjustment adopted in this final 
rule. The final rule provides for a reduction for registration years 
beginning in 2020 to the annual registration fees established for the 
UCR Agreement.
    Beginning in the 2020 registration year, the fees will be reduced 
by 14.45 percent below the 2018 registration fee level to ensure that 
fee revenues do not exceed the statutory maximum and to account for the 
excess funds held in the depository. The fees beginning with the 2021 
registration year will remain at the same level as the fees for 2020, 
unless there is a future adjustment. The reduction of the current 2019 
registration year fees (finalized on December 28, 2018) ranges from 
approximately $3 to $2,712 per entity, depending on the number of 
vehicles owned or operated by the affected entities.

B. Benefits and Costs

    The changes imposed by this final rule reduce the fees paid by 
motor carriers, motor private carriers of property, brokers, freight 
forwarders, and leasing companies to the participating States. While 
each motor carrier will realize a reduced burden, fees are considered 
by the Office of Management and Budget (OMB) Circular A-4, Regulatory 
Analysis as transfer payments, not costs. Transfer payments are 
payments from one group to another that do not affect total resources 
available to society. Therefore, transfers are not considered in the 
monetization of societal costs and benefits of rulemakings.

IV. Legal Basis for the Rulemaking

    This rule adjusts the annual registration fees for the UCR 
Agreement established by 49 U.S.C. 14504a. The requested fee 
adjustments are required by 49 U.S.C. 14504a because, for the 
registration year 2018, the total revenues collected were expected to 
exceed the total revenue entitlements of $108 million distributed to 
the 41 participating States plus the $5 million established for the 
administrative costs associated with the UCR Plan and Agreement.\1\ The 
requested adjustments

[[Page 8193]]

have been submitted by the UCR Plan in accordance with 49 U.S.C. 
14504a(f)(1)(E)(ii), which requires the UCR Board to request an 
adjustment by the Secretary of Transportation (Secretary) when the 
annual revenues collected exceed the maximum allowed. In addition, 49 
U.S.C. 14504a(h)(4) states that any excess funds held by the UCR Plan 
in its depository, after payments to the States and for administrative 
costs, shall be retained ``and the fees charged . . . shall be reduced 
by the Secretary accordingly.''
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    \1\ The UCR Plan is ``the organization . . . responsible for 
developing, implementing, and administering the unified carrier 
registration agreement.'' 49 U.S.C. 14504a(a)(9). The UCR Agreement 
developed by the UCR Plan is the ``interstate agreement . . . 
governing the collection and distribution of registration and 
financial responsibility information provided and fees paid by motor 
carriers, motor private carriers, brokers, freight forwarders, and 
leasing companies. . . .'' 49 U.S.C. 14504a(a)(8).
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    The UCR Plan also requested approval of a revised total revenue 
target to be collected because of an adjustment in the amount for costs 
of administering the UCR Agreement. No changes in the revenue 
entitlements to the participating States were recommended by the UCR 
Plan. The revised total revenue target must be approved in accordance 
with 49 U.S.C. 14504a(d)(7) and (g)(4).
    The Secretary also has broad rulemaking authority in 49 U.S.C. 
13301(a) to carry out 49 U.S.C. 14504a, which is part of 49 U.S.C. 
subtitle IV, part B. Authority to administer these statutory provisions 
has been delegated to the FMCSA Administrator by 49 CFR 1.87(a)(2) and 
(7).\2\
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    \2\ For the purpose of this rulemaking, the term ``FMCSA'' will 
frequently be used in place of ``Secretary'' due to the delegated 
authority provided by the Secretary. The term ``Secretary'' will be 
used in quoted material and as otherwise appropriate.
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    The Administrative Procedure Act allows agencies to make rules 
effective immediately with good cause, instead of requiring publication 
30 days prior to the effective date. 5 U.S.C. 553(d)(3). FMCSA finds 
there is good cause for this rule to be effective upon publication so 
that the UCR Plan and the participating States may begin collection of 
fees immediately for the registration year that will begin on January 
1, 2020. The immediate commencement of fee collection will avoid 
further delay in distributing revenues to the participating States.

V. Statutory Requirements for the UCR Fees

A. Legislative History

    The legislative history of 49 U.S.C. 14504a indicates that the 
purpose of the UCR Plan and Agreement is both to replace the Single 
State Registration System (SSRS) for registration of interstate motor 
carrier entities with the States and to ``ensure that States don't lose 
current revenues derived from SSRS'' (Sen. Rep. 109-120, at 2 (2005)). 
The statute provides for a 15-member board of directors for the UCR 
Plan to be appointed by the Secretary. The statute specifies that the 
UCR Board should consist of one director (either the FMCSA Deputy 
Administrator or another Presidential appointee from the Department) 
from DOT; four directors from among the chief administrative officers 
of the State agencies responsible for administering the UCR Agreement 
(one from each of the four FMCSA service areas); five directors from 
among the professional staffs of State agencies responsible for 
administering the UCR Agreement, to be nominated by the National 
Conference of State Transportation Specialists; and five directors from 
the motor carrier industry, of whom at least one must be from a 
national trade association representing the general motor carrier of 
property industry and one from a motor carrier that falls within the 
smallest fleet fee bracket (49 U.S.C. 14504a(d)(1)(B)).
    The UCR Plan and the participating States are authorized by 49 
U.S.C. 14504a(f) to establish and collect fees from motor carriers, 
motor private carriers of property, brokers, freight forwarders, and 
leasing companies. The annual fees charged for registration year 2019 
are set out in 49 CFR 367.50.
    For carriers and freight forwarders, the fees vary according to the 
size of the vehicle fleets, as required by 49 U.S.C. 14504a(f). The 
fees collected are allocated to the States and the UCR Plan in 
accordance with 49 U.S.C. 14504a(h). Participating States submit a plan 
demonstrating that an amount equivalent to the revenues received are 
used for motor carrier safety programs, enforcement, or the 
administration of the UCR Plan and Agreement (49 U.S.C. 
14504a(e)(1)(B)).
    The UCR Plan and the participating States collect registration fees 
for each registration year, which is the same period as the calendar 
year. Usually, collection begins on October 1 of the previous year, and 
continues until December 31 of the year following the registration 
year. All of the revenues collected are distributed to the 
participating States or to the UCR Plan for administration of the UCR 
Agreement. No funds are distributed to the Federal Government.

B. Fee Requirements

    The statute specifies that fees are to be based on the 
recommendation of the UCR Board (49 U.S.C. 14504a(d)(7)(A)). In 
recommending the level of fees to be assessed in any registration year, 
and in setting the fee level, the statute states that both the UCR 
Board and FMCSA ``shall consider'' the following factors:
     Administrative costs associated with the UCR Plan and 
Agreement;
     Whether the revenues generated in the previous year and 
any surplus or shortage from that or prior years enable the 
participating States to achieve the revenue levels set by the UCR 
Board; and
     Provisions governing fees in 49 U.S.C. 14504a(f)(1).
    FMCSA, if asked by the UCR Board, may also adjust the fees within a 
reasonable range on an annual basis if the revenues collected from the 
fees are either insufficient to provide the participating States with 
the revenues they are entitled to receive or exceed those revenues (49 
U.S.C. 14504a(f)(1)(E)).
    Overall, the fees assessed under the UCR Agreement must produce the 
level of revenue established by statute. Section 14504a(g) establishes 
the revenue entitlements for States that choose to participate in the 
UCR Plan. That section provides that a State, participating in SSRS in 
the registration year prior to the enactment of the Unified Carrier 
Registration Act of 2005, is entitled to receive revenues under the UCR 
Agreement equivalent to the revenues it received in the year before 
that enactment. Section 14504a(g) also requires that States that did 
not participate in SSRS previously, but that choose to participate in 
the UCR Plan, may receive revenues not to exceed $500,000 per year. The 
UCR Board calculates the amount of revenue to which each participating 
State is entitled under the UCR Agreement, which is then approved by 
FMCSA.
    FMCSA's interpretation of its responsibilities under 49 U.S.C. 
14504a in setting fees for the UCR Plan and Agreement is guided by the 
primacy the statute places on the need both to set and to adjust the 
fees so they ``provide the revenues to which the States are entitled'' 
(49 U.S.C. 14504a(f)(1)(E)(i)). The statute links the requirement that 
the fees be adjusted ``within a reasonable range'' by both the UCR Plan 
and FMCSA to the provision of sufficient revenues to meet the 
entitlements of the participating States (49 U.S.C. 14504a(f)(1)(E); 
see also 49 U.S.C. 14504a(d)(7)(A)(ii)).
    Section 14504a(h)(4) provides additional support for this 
interpretation. The provision explicitly requires FMCSA to reduce the 
fees for all motor carrier entities in the year following any year in 
which the depository retains any funds in excess of the amount 
necessary to satisfy the revenue entitlements of the participating 
States and the UCR Plan's administrative costs.

[[Page 8194]]

VI. Recommendations From the UCR Plan

    On December 13, 2018, the UCR Board voted unanimously to submit a 
recommendation to the FMCSA to reduce the fees collected by the UCR 
Plan for registration years 2020 and thereafter. The recommendation was 
submitted to the FMCSA on February 25, 2019.\3\ The requested fee 
adjustments are required by 49 U.S.C. 14504a because, for registration 
year 2018, the total revenues collected were expected to exceed the 
total revenue entitlements of $108 million distributed to the 41 
participating States plus the $5 million established for ``the 
administrative costs associated with the unified carrier registration 
plan and agreement'' (49 U.S.C. 14504a(d)(7)(A)(i)). The maximum 
revenue entitlements for each of the 41 participating States, 
established in accordance with 49 U.S.C. 14504a(g), were set out in a 
table attached to the February 25, 2019, recommendation.
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    \3\ The February 25, 2019, recommendation from the UCR Plan and 
all related tables are available in the docket.
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    On August 27, 2019, FMCSA published a notice of proposed rulemaking 
(NPRM) reflecting the February 25 recommendation from the UCR Board (84 
FR 44826). The NPRM requested comments addressing both the proposed 
adjustment in the fees and the separate new total revenue target 
recommendation by September 6, 2019.
    In comments submitted on September 6, 2019, following a vote of the 
Plan's board of directors on September 5, the Plan updated its 
recommendations for the fee adjustments and provided a revised analysis 
supporting the recommendation. The principal components of the revised 
analysis were: (1) An increase in the recommended amount for 
administrative costs of the UCR Agreement from $3.2 million to $4 
million; and (2) an update in the amount of actual and estimated 
revenue collections for 2018. In the original analysis attached to the 
February 25, 2019, recommendation letter, the UCR Plan estimated that, 
by the end of 2019, total revenues would exceed the statutory maximum 
by $9.38 million, or approximately 8.31 percent. The revised analysis 
submitted with the comments indicates that total revenues will now 
exceed the statutory maximum by $10.83 million, or approximately 9.61 
percent. The excess revenues collected are being held in a depository 
maintained by the UCR Plan as required by 49 U.S.C. 14504a(h)(4).
    The UCR Plan's revised recommendation includes actual revenues 
collected through the end of August 2019. The Plan will now terminate 
collections for each registration year on September 30 of the following 
year, instead of the previous termination date of December 31 of the 
following year. For the only remaining month of collections for 2018 
(September 2019), the UCR Plan estimated the minimum projection of 
revenue collections for that month by summing the collections within 
each of the registration years 2013 through 2015 \4\ and then comparing 
across years to find the minimum total amount. This is the same 
methodology used to project collections and estimate fees in the 
previous fee adjustment rulemaking (83 FR 67124, 67126, December 28, 
2018).
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    \4\ Collections for registration year 2016 are not available for 
use for this purpose because registration and fee collection for 
that year was not finalized at the time of the UCR Plan 
recommendation.
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    Under 49 U.S.C. 14504a(d)(7), the costs incurred by the UCR Plan to 
administer the UCR Agreement are eligible for inclusion in the total 
revenue target, in addition to the revenue entitlements for the 
participating States. The total revenue target for registration years 
2010 to 2018, as approved in the 2010 final rule (75 FR 21993, April 
27, 2010), was $112,777,060, including $5,000,000 for administrative 
costs. The final rule establishing the fees for the 2019 registration 
year was based on an allowance for administrative costs of $3,500,000 
(83 FR 67126, 67128). The UCR Plan's original recommendation included a 
reduction in the amount of the administrative costs to $3,225,000 for 
the 2020 and 2021 registration years. The reduction of $275,000 
recommended by the UCR Plan was based on estimates of future 
administrative costs needed to operate the UCR Plan and Agreement. The 
comments submitted on September 6 included an updated estimate of 
future annual administrative costs of $4,000,000, primarily because of 
an increase in legal expenses.
    No changes in the State revenue entitlements were recommended, and 
the entitlement figures for 2020 and 2021 for the 41 participating 
States are the same as those previously approved for the years 2010 
through 2019. Therefore, for registration years 2020 and thereafter, 
the UCR Plan now recommends approval of a total revenue target of 
$111,770,060.

VII. Discussion of the Comments

    FMCSA received three comments in response to the NPRM.

Unified Carrier Registration Plan Board of Directors

    As explained above, a comment was submitted by the UCR Plan Board 
of Directors by its Acting Chairperson Elizabeth Leaman providing more 
current financial data since several months had elapsed since the 
Board's initial fee recommendation was submitted in February and 
revenue collections were exceeding the previous estimates. This comment 
also requested approval of an increased allowance for administrative 
costs above what was originally requested in the February 25, 2019, 
recommendation for both 2020 and 2021. The net effect was a slight 
reduction in the fees recommended for 2020, as shown in the table 
below:

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                                                                1-2             3-5            6-20           21-100         101-1000     1000 and above
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2020 Fee (Original).....................................             $60            $180            $357          $1,248          $5,946         $58,060
2020 Fee (Updated)......................................              59             176             351           1,224           5,835          56,977
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    The comment also included an analysis of the revenues already 
received from the fees put into effect at the beginning of the 2019 
registration year and accounted for the need to carry over the amount 
of excess revenues from a previous year. It then determined that by the 
end of the collection period for the 2019 registration year on 
September 30, 2020, revenues would exceed the statutory maximum revenue 
by approximately $7.7 million. The Plan therefore made a recommendation 
that the fees for 2021 and after be set at the same level as the fees 
for 2020.
    FMCSA has conducted an analysis of the Plan's revised 
recommendation. It accepts the adjustment in the 2020 fees that would 
result in a slightly lower level of fees than proposed in the

[[Page 8195]]

NPRM. It also accepts the recommendation to keep the fees at the same 
level after 2020, instead of the increase from 2020 to 2021 proposed in 
the NPRM. This change from the proposal in the NPRM is necessary to 
conform to the maximum revenue target established by statute. If future 
circumstances warrant further adjustment in the fee levels for 2021 or 
subsequent years, either to ensure that the participating States 
receive the revenues to which they are entitled, or to ensure that the 
statutory maximum is not exceeded, then the UCR Plan can request an 
adjustment in accordance with 49 U.S.C. 14504a(d)(7) and/or (h)(4).

Small Business in Transportation Coalition

    The comment from the Small Business in Transportation Coalition 
(SBTC) asserts that since October 1, 2018, the UCR Plan has been 
collecting fees from ``intrastate carriers'' under the new registration 
system. SBTC claims that such collections from ``intrastate carriers'' 
are unlawful and could require refunds that might affect the revenues 
available for distribution to the participating States and for the 
costs of administering the UCR Agreement. These concerns were, 
according to SBTC, also communicated directly to the UCR Plan without 
any response.
    FMCSA has considered the concerns expressed by SBTC, and has 
concluded that they do not require any adjustment in the fees 
established by this final rule. An intrastate motor carrier operating 
in any one of 37 States must register with the Agency and receive a 
USDOT number (see 49 U.S.C. 31134(a) and (e) and https://www.fmcsa.dot.gov/registration/do-i-need-usdot-number). It is the 
responsibility of the carrier to indicate correctly when registering 
with FMCSA whether it is an intrastate motor carrier. FMCSA does 
provide information to the UCR Plan about motor carriers that are 
issued USDOT numbers for the purpose of administering the UCR Agreement 
(cf. 49 U.S.C. 13908). It is the responsibility of each motor carrier 
to determine if it is required to register with the UCR Plan under the 
UCR Agreement because it is an interstate carrier, including carriers 
engaged in interstate transportation in a single state that involved a 
prior or subsequent movement across a State line.
    SBTC has not provided any data on the number of intrastate 
carriers, if any, that have registered incorrectly or have been 
registered incorrectly by a third-party service. It has also not 
provided any estimate of the impact on the revenues of any incorrect 
registrations by intrastate motor carriers. It appears from the 
information submitted for the record by the UCR Plan in its comments 
that, since 2019 registrations began, revenue collections by the Plan 
and the participating States through August 2019 have already generated 
almost $104 million towards the 2019 total revenue target of just over 
$111 million. The UCR Plan anticipates receiving an additional amount 
of over $4 million when 2019 registration closes in September 2020. 
FMCSA considers it unlikely that incorrect registration of intrastate 
motor carriers will have any significant impact on the revenues derived 
from the fees.

Daniel Rodriguez

    Mr. Rodriguez submitted a comment stating that lowering the fees 
would be good for trucking companies. The continuing reduction in the 
fees after 2020 would provide additional benefits to trucking companies 
and other entities required to register with the UCR Plan.

VIII. Approval of Total Revenue Target

    The comments from the UCR Plan, as indicated above, addressed the 
adjustment proposed in the NPRM in the total revenue target to 
$111,002,060, based on the original recommendation in February, which 
reflected a reduction in the amount of the administrative costs from 
$3,500,000 to $3,225,000. The UCR Plan is now recommending an 
adjustment up to $4,000,000 for administrative costs, resulting in a 
total revenue target of $111,777,060. The adjustment is based on an 
analysis approved by the board of directors that indicated that legal 
expenses for the administration of the UCR Agreement will be 
significantly higher on an ongoing basis. Therefore, in accordance with 
49 U.S.C. 14504a(d)(7) and (g)(4), FMCSA approves the following table 
of State revenue entitlements, administrative costs, and the total 
revenue target under the UCR Agreement, as proposed in the NPRM and 
revised to reflect the updated recommendation. These State revenue 
entitlements, the administrative costs, and the total revenue target 
will remain in effect for 2020 and subsequent years unless and until 
approval of a revision occurs.

   State UCR Revenue Entitlements and Final 2020 Total Revenue Target
------------------------------------------------------------------------
                                                          Total 2020 UCR
                         State                               revenue
                                                           entitlements
------------------------------------------------------------------------
Alabama................................................    $2,939,964.00
Arkansas...............................................     1,817,360.00
California.............................................     2,131,710.00
Colorado...............................................     1,801,615.00
Connecticut............................................     3,129,840.00
Georgia................................................     2,660,060.00
Idaho..................................................       547,696.68
Illinois...............................................     3,516,993.00
Indiana................................................     2,364,879.00
Iowa...................................................       474,742.00
Kansas.................................................     4,344,290.00
Kentucky...............................................     5,365,980.00
Louisiana..............................................     4,063,836.00
Maine..................................................     1,555,672.00
Massachusetts..........................................     2,282,887.00
Michigan...............................................     7,520,717.00
Minnesota..............................................     1,137,132.30
Missouri...............................................     2,342,000.00
Mississippi............................................     4,322,100.00
Montana................................................     1,049,063.00
Nebraska...............................................       741,974.00
New Hampshire..........................................     2,273,299.00
New Mexico.............................................     3,292,233.00
New York...............................................     4,414,538.00
North Carolina.........................................       372,007.00
North Dakota...........................................     2,010,434.00
Ohio...................................................     4,813,877.74
Oklahoma...............................................     2,457,796.00
Pennsylvania...........................................     4,945,527.00
Rhode Island...........................................     2,285,486.00
South Carolina.........................................     2,420,120.00
South Dakota...........................................       855,623.00
Tennessee..............................................     4,759,329.00
Texas..................................................     2,718,628.06
Utah...................................................     2,098,408.00
Virginia...............................................     4,852,865.00
Washington.............................................     2,467,971.00
West Virginia..........................................     1,431,727.03
Wisconsin..............................................     2,196,680.00
Sub-Total..............................................   106,777,059.81
Alaska.................................................       500,000.00
Delaware...............................................       500,000.00
                                                        ----------------
    Total State Revenue Entitlement....................   107,777,060.00
                                                        ----------------
    Administrative Costs...............................     4,000,000.00
                                                        ----------------
    Total Revenue Target...............................   111,777,060.00
------------------------------------------------------------------------

IX. International Impacts

    Motor carriers and other entities involved in interstate and 
foreign transportation in the United States that do not have a 
principal office in the United States are nonetheless subject to the 
fees for the UCR Plan. They are required to designate a participating 
State as a base State and pay the appropriate fees to that State. 49 
U.S.C. 14504a(a)(2)(B)(ii) and (f)(4).

X. Section-by-Section Analysis

    Under this final rule, provisions of 49 CFR 367.60 (which were 
adopted in the December 28, 2018, final rule) are

[[Page 8196]]

revised to establish new reduced fees applicable beginning in 
registration year 2020. These fees will remain in effect in subsequent 
registration years unless and until revised, so the new 49 CFR 367.70 
proposed in the NPRM is not necessary and will not be adopted.

XI. Regulatory Analyses

A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563 (Improving 
Regulation and Regulatory Review), and DOT Regulatory Policies and 
Procedures

    FMCSA determined that this final rule is not a significant 
regulatory action under section 3(f) of E.O. 12866, 58 FR 51735 
(October 4, 1993), Regulatory Planning and Review, as supplemented by 
E.O. 13563, Improving Regulation and Regulatory Review (76 FR 3821, 
January 21, 2011), and does not require an assessment of potential 
costs and benefits under section 6(a)(3) of that Order. Accordingly, 
OMB has not reviewed it under that Order. It is also not significant 
within the meaning of DOT regulatory policies and procedures (DOT Order 
2100.6 dated Dec. 20, 2018).
    The changes imposed by this final rule adjust the registration fees 
paid by motor carriers, motor private carriers of property, brokers, 
freight forwarders, and leasing companies to the UCR Plan and the 
participating States. Fees are considered by OMB Circular A-4, 
Regulatory Analysis, as transfer payments, not costs. Transfer payments 
are payments from one group to another that do not affect total 
resources available to society. By definition, transfers are not 
considered in the monetization of societal costs and benefits of 
rulemakings.
    This rule establishes reductions in the annual registration fees 
for the UCR Plan and Agreement. The entities affected by this rule are 
the participating States, motor carriers, motor private carriers of 
property, brokers, freight forwarders, and leasing companies. Because 
the State UCR revenue entitlements will remain unchanged, the 
participating States will not be impacted by this rule. The primary 
impact of this rule will be a reduction in fees paid by individual 
motor carriers, motor private carriers of property, brokers, freight 
forwarders, and leasing companies. The reduction of the current 2019 
registration year fees (finalized on December 28, 2018) ranges from 
approximately $3 to $2,712 per entity, depending on the number of 
vehicles owned or operated by the affected entities.

B. E.O. 13771 Reducing Regulation and Controlling Regulatory Costs

    This final rule is not an E.O. 13771 regulatory action because this 
rule is not significant under E.O. 12866.\5\
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    \5\ Executive Office of the President, Office of Management and 
Budget. Guidance Implementing Executive Order 13771, Titled 
``Reducing Regulation and Controlling Regulatory Costs.'' Memorandum 
M-17-21. April 5, 2017.
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C. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).\6\
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    \6\ A ``major rule'' means any rule that the Administrator of 
Office of Information and Regulatory Affairs at the Office of 
Management and Budget 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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D. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601 et 
seq.), as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996 (SBREFA) (Pub. L. 104-121, 110 Stat. 857), requires Federal 
agencies to consider the impact of their regulatory proposals on small 
entities, analyze effective alternatives that minimize small entity 
impacts, and make their analyses available for public comment. The term 
``small entities'' means small businesses and not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and governmental jurisdictions with 
populations under 50,000.\7\ Accordingly, DOT policy requires an 
analysis of the impact of all regulations on small entities, and 
mandates that agencies strive to lessen any adverse effects on these 
entities. Section 605 of the RFA allows an agency to certify a rule, in 
lieu of preparing an analysis, if the rulemaking is not expected to 
have a significant economic impact on a substantial number of small 
entities.
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    \7\ Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
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    This rule will directly affect the participating States, motor 
carriers, motor private carriers of property, brokers, freight 
forwarders, and leasing companies. Under the standards of the RFA, as 
amended by the SBREFA, the participating States are not considered 
small entities because they do not meet the definition of a small 
entity in section 601 of the RFA. Specifically, States are not 
considered small governmental jurisdictions under section 601(5) of the 
RFA, both because State government is not included among the various 
levels of government listed in section 601(5), and because, even if 
this were the case, no State nor the District of Columbia has a 
population of less than 50,000, which is the criterion by which a 
governmental jurisdiction is considered small under section 601(5) of 
the RFA.
    The Small Business Administration (SBA) size standard for a small 
entity (13 CFR 121.201) differs by industry code. The entities affected 
by this rule fall into many different industry codes. In order to 
determine if this rule would have an impact on a significant number of 
small entities, FMCSA examined the 2012 Economic Census \8\ data for 
two different industries; truck transportation (Subsector 484) and 
transit and ground transportation (Subsector 485). According to the 
2012 Economic Census, approximately 99 percent of truck transportation 
firms, and approximately 97 percent of transit and ground 
transportation firms, had annual revenue less than the SBA revenue 
threshold of $27.5 million and $15 million, respectively. Therefore, 
FMCSA has determined that this rule will impact a substantial number of 
small entities.
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    \8\ U.S. Census Bureau, 2012 US Economic Census. Available at: 
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_48SSSZ4&prodType=table (accessed 
October 24, 2018).
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    However, FMCSA has determined that this rule will not have a 
significant impact on the affected entities. The effect of this rule 
will be to reduce the registration fee motor carriers, motor private 
carriers of property, brokers, freight forwarders, and leasing 
companies are currently required to pay. The reduction will range from 
approximately $3 to $2,712 per entity depending on the number of 
vehicles owned and/or operated by the affected entities. FMCSA asserts 
that the reduction in fees will not have a significant impact on the 
affected small entities. Accordingly, I hereby certify that this rule 
will not have a significant economic impact on a substantial number of 
small entities.

E. Assistance for Small Entities

    In accordance with section 213(a) of the SBREFA, FMCSA wants to 
assist small entities in understanding this final rule so that they can 
better evaluate its effects on themselves and participate in the 
rulemaking initiative.

[[Page 8197]]

If the final 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, Gerald Folsom, listed in the FOR FURTHER INFORMATION CONTACT 
section of this final 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.

F. 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. In particular, 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 million in 1995, adjusted for inflation to 
2018 levels) or more in any one year. Though this final rule will not 
result in any such expenditure, the Agency discusses the effects of 
this rule elsewhere in this preamble.

G. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et 
seq.), Federal agencies must obtain approval from OMB for each 
collection of information they conduct, sponsor, or require through 
regulations. FMCSA determined that no information collection 
requirements are associated with this final rule. Therefore, the PRA 
does not apply to this final rule.

H. 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 has determined that this rule 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, imposes substantial direct unreimbursed 
compliance costs on any State, or diminishes the power of any State to 
enforce its own laws. As detailed above, the UCR Board includes 
substantial State representation. The States have already had 
opportunity for input through their representatives. Accordingly, this 
rulemaking does not have federalism implications warranting the 
application of E.O. 13132.

I. E.O. 12988 (Civil Justice Reform)

    This final rule meets applicable standards in sections 3(a) and 
3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation, 
eliminates ambiguity, and reduce burden.

J. E.O. 13045 (Protection of Children)

    E.O. 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. The Agency determined this final rule is not economically 
significant. Therefore, no analysis of the impacts on children is 
required. In any event, the Agency does not anticipate that this 
regulatory action could in any respect present an environmental or 
safety risk that could disproportionately affect children.

K. E.O. 12630 (Taking of Private Property)

    FMCSA reviewed this final rule in accordance with E.O. 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights, and has determined it will not effect a taking of 
private property or otherwise have taking implications.

L. Privacy Impact Assessment

    Section 522 of title I of division H of the Consolidated 
Appropriations Act, 2005, enacted December 8, 2004 (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. This rule does not require the collection 
of personally identifiable information and will not affect the privacy 
of individuals.

M. 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.

N. E.O. 13211 (Energy Supply, Distribution, or Use)

    FMCSA has analyzed this final rule under E.O. 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. The Agency has determined that this rule 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.

O. 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.

P. National Technology Transfer and Advancement Act (Technical 
Standards)

    The National Technology Transfer and Advancement Act (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 that are 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.

Q. National Environmental Policy Act

    FMCSA analyzed this rule for the purpose of 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

[[Page 8198]]

environmental impact statement under FMCSA Order 5610.1, 69 FR 9680 
(March 1, 2004), Appendix 2, paragraph 6.h. The Categorical Exclusion 
(CE) in paragraph 6.h. covers regulations and actions taken pursuant to 
the regulations implementing procedures to collect fees that will be 
charged for motor carrier registrations. The content in this rule is 
covered by this CE and the final action does not have any effect on the 
quality of the environment. The CE determination is available in the 
docket.

List of Subjects in 49 CFR Part 367

    Insurance, Intergovernmental relations, Motor carriers, Surety 
bonds.

    For the reasons discussed in the preamble, FMCSA is amending title 
49 CFR chapter III, part 367 as follows:

PART 367--STANDARDS FOR REGISTRATION WITH STATES

0
1. The authority citation for part 367 continues to read as follows:

    Authority: 49 U.S.C. 13301, 14504a; and 49 CFR 1.87.

0
2. Revise Sec.  367.60 to read as follows:


Sec.  367.60   Fees under the Unified Carrier Registration Plan and 
Agreement for registration years beginning in 2020.

 Table 1 to Sec.   367.60--Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year
                              2020 and Each Subsequent Registration Year Thereafter
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                                  Number of commercial motor       Fee per entity for
                                vehicles owned or operated by     exempt or non-exempt      Fee per entity for
           Bracket                exempt or non-exempt motor      motor carrier, motor      broker or leasing
                               carrier, motor private carrier,    private carrier, or            company
                                     or freight forwarder          freight forwarder
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B1...........................  0-2............................                      $59                      $59
B2...........................  3-5............................                      176
B3...........................  6-20...........................                      351
B4...........................  21-100.........................                    1,224
B5...........................  101-1,000......................                    5,835
B6...........................  1,001 and above................                   56,977
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    Issued under authority delegated in 49 CFR 1.87 on:

    Dated: January 24, 2020.
Jim Mullen,
Acting Administrator.
[FR Doc. 2020-01761 Filed 2-12-20; 8:45 am]
BILLING CODE 4910-EX-P