[Federal Register Volume 88, Number 219 (Wednesday, November 15, 2023)]
[Proposed Rules]
[Pages 78269-78282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25186]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

49 CFR Part 674

[Docket No. FTA-2023-0008]
RIN 2132-AB42


State Safety Oversight

AGENCY: Federal Transit Administration (FTA), Department of 
Transportation (DOT).

ACTION:  Notice of proposed rulemaking (NPRM).

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SUMMARY:  The Federal Transit Administration (FTA) is proposing 
revisions to the State Safety Oversight (SSO) regulation to implement 
new requirements of the Bipartisan Infrastructure Law (enacted as the 
Infrastructure Investment and Jobs Act (IIJA)), remove outdated 
references, and simplify notification requirements.

DATES: Comments should be filed by January 16, 2024. FTA will consider 
comments received after that date to the extent practicable.

ADDRESSES:  You may send comments, identified by docket number FTA-
2023-0008, by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for sending comments.
     Fax: (202) 493-2251.
     Mail: Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor, 
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery/Courier: West Building Ground Floor, Room 
W12-140, 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 
5 p.m. ET, Monday through Friday, except Federal holidays.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
rulemaking. All comments received will be posted without change to 
https://www.regulations.gov, including any personal information 
provided. For detailed instructions on sending comments and additional 
information on the rulemaking process, see the ``Public Participation'' 
heading of the SUPPLEMENTARY INFORMATION section of this document.
    Docket: To access the docket and read background documents or 
comments received, go to: https://www.regulations.gov. Background 
documents and comments received may also be viewed at the U.S. 
Department of Transportation, 1200 New Jersey Ave. SE, Docket 
Operations, M-30, West Building Ground Floor, Room W12-140, Washington, 
DC 20590-0001, between 9 a.m. and 5 p.m. EST, Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For program matters, contact Loretta 
Bomgardner, Office of Transit Safety and Oversight, FTA, telephone 
(202) 577-5896 or [email protected]. For legal matters, 
contact Richard Wong, Office of the Chief Counsel, telephone (202) 366-
4011 or [email protected]. Office hours are from 8:30 a.m. to 5 
p.m., Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Executive Summary
    A. Purpose of Regulatory Action
    B. Statutory Authority
    C. Summary of Major Provisions
    D. Benefits and Costs
II. Section-by-Section Analysis
III. Regulatory Analyses and Notices

1. Executive Summary

A. Purpose of Regulatory Action

    This proposed rulemaking will update the existing regulations for 
state safety oversight of rail fixed guideway public transportation 
systems. In the Moving Ahead for Progress in the 21st Century Act (MAP-
21) (Pub. L. 112-141, July 6, 2012), Congress directed FTA to establish 
a comprehensive public transportation safety program, one element of 
which is the State Safety Oversight (SSO) Program. (See 49 U.S.C. 
5329). Section 30012 of the Bipartisan Infrastructure Law (BIL), 
enacted as the Infrastructure Investment and Jobs Act (IIJA), 
established new requirements for FTA's Public Transportation Safety 
Program. FTA is proposing revisions to 49 CFR part 674 to address 
requirements related to the BIL, remove requirements related to the 
initial establishment of this part, and clarify requirements of the 
existing part.

B. Statutory Authority

    Section 5329 of Title 49, United States Code, includes several 
provisions that require FTA to establish a comprehensive public 
transportation safety program, the elements of which include a National 
Public Transportation Safety Plan; a training and certification program 
for Federal, state, and local transportation agency employees with 
safety responsibilities; Public Transportation Agency Safety Plans; and 
a strengthened State Safety Oversight Program.

C. Summary of Major Provisions

    This NPRM proposes to make the following changes to strengthen the 
existing SSO program:
     Updating terminology to reflect current use across 
programs.
     Clarifying existing requirements consistent with FTA 
expectations.
     Removing language relating to the period of transition 
from 49 CFR part 659, FTA's previous SSO regulation, to 49 CFR part 
674, the current SSO regulation.
     Addressing BIL requirements.

D. Benefits and Costs

    The proposed rule would result in additional oversight of safety-
related activities of rail transit agencies (RTAs) by state safety 
oversight agencies (SSOAs). The effects of the increased oversight are 
unknown and unquantified. The proposed rule also would result in 
additional costs for SSOAs and RTAs to comply with the requirements. 
The requirements of the proposed rule have estimated costs of $12.6 
million (in 2022 dollars) for the first year and annual costs of $10.7 
million for later years. The largest annual costs are for SSOA 
oversight ($7.9 million), which includes new risk-based inspection 
activities, and RTA activities ($2.0 million), which include 
investigations and reporting for a larger number of safety events.
    Table 1 summarizes the economic effects of the proposed rule over 
the first ten years of the proposed rule from 2023--the assumed 
effective date of the rule--to 2033 in 2022 dollars. On an annualized 
basis, the proposed rule would have costs of $11.7 million at a 7 
percent discount rate (discounted to 2023) and $11.3 million at 3 
percent.

[[Page 78270]]



                                 Table 1--Summary of Economic Effects, 2023-2033
                                           [$2022, discounted to 2023]
----------------------------------------------------------------------------------------------------------------
                                                                   Total,  2023-    Annualized      Annualized
                              Item                                     2033            (7%)            (3%)
----------------------------------------------------------------------------------------------------------------
Benefits........................................................    Unquantified  ..............  ..............
Costs:
    SSOA documentation of enforcement authority.................        $118,140         $16,820         $13,850
    SSOA oversight..............................................      80,338,058       8,659,910       8,300,458
    SSOA safety event tracking..................................         183,879          19,675          18,940
    SSOA investigations.........................................       7,355,168         787,003         757,582
    SSOA annual reporting to FTA................................         609,755          65,244          62,805
    RTA investigations and reporting............................      20,456,560       2,188,852       2,107,026
                                                                 -----------------------------------------------
        Total costs.............................................     109,061,560      11,737,504      11,260,660
Net benefits....................................................    Unquantified  ..............  ..............
----------------------------------------------------------------------------------------------------------------
Totals may not sum due to rounding.

II. Section-by-Section Analysis

Subpart A--General Provisions

Section 674.1 Purpose

    This section explains that the purpose of these regulations is to 
carry out the mandate of 49 U.S.C. 5329 for States to perform oversight 
of rail fixed guideway public transportation systems within their 
jurisdictions. This represents an expansion from the purpose stated in 
the existing Sec.  674.1, ``this part carries out the mandate of 49 
U.S.C. 5329(e).'' The removal of ``(e)'' acknowledges the additional 
obligations for inspections and data collection required by SSO 
Agencies in section 5329(k), as amended by the BIL, and better reflects 
the connection among all elements of the FTA's public transportation 
safety program.

Section 674.3 Applicability

    FTA is not proposing changes to this section.

Section 674.5 Policy

    This section proposes removing the term ``sufficient'' in paragraph 
(a) to eliminate subjectivity regarding the requirements for SSOA 
authorities. FTA is also proposing to remove the first sentence in 
paragraph (b), as the availability of funding is addressed in the 
existing language in Sec.  674.17(a).

Section 674.7 Definitions

    This section proposes replacing the terms ``accident,'' 
``incident,'' ``occurrence,'' and ``event'' with the inclusive term 
``safety event,'' which includes events such as collisions, 
derailments, fires, and unintended train movements for purposes of 
meeting the two-hour notification requirement in Sec.  674.33. The 
definition of ``safety event'' excludes general criminal actions but 
includes intentional events that result in a collision with a transit 
vehicle, such as an assault, homicide, or suicide.
    FTA also proposes removing the definition of ``serious injury.'' 
These revisions are consistent with changes that FTA proposed in the 
PTASP NPRM (88 FR 25336) and are intended to simplify requirements 
related to safety event notifications and investigations.
    This section proposes new terms and definitions for ``collision,'' 
``derailment,'' ``evacuation for life safety reasons,'' ``fatality,'' 
``injury,'' ``public transportation,'' ``rail transit vehicle,'' 
``revenue vehicle,'' and ``unintended train movement,'' and the removal 
of the general term ``vehicle'' in recognition of these new 
definitions, which will be consistent with FTA's NTD reporting manuals 
and support the notification and investigation thresholds FTA is 
proposing in sections 674.33 and 674.35. FTA's proposed definition of 
``injury'' restores the threshold under FTA's previous part 659 
regulation and is consistent with the aforementioned NTD reporting 
manuals. The definition of ``injury'' includes damage or harm to 
persons that requires immediate medical attention away from the scene. 
An individual who declines transportation away from the scene for 
medical attention should not be counted as an ``injury'' for two-hour 
notification purposes. This proposed definition allows for an 
immediate, on scene determination of injuries by the RTA without the 
need to await a formal diagnosis or determination from an off-site 
medical professional.
    FTA also proposes a new definition for ``disabling damage'' to 
support the proposed notification and investigation thresholds. 
``Disabling damage'' is limited to damage resulting from a collision 
that physically prevents a vehicle or train from operating under its 
own power. Disabling damage does not include mechanical failures or 
other malfunctions that may impact operations.
    FTA proposes new terms and definitions for ``potential 
consequence,'' ``safety committee,'' ``safety risk,'' and ``safety risk 
mitigation'' as well as revised definitions of ``Accountable 
Executive'' and ``safety risk management'' for consistency with 
definitions proposed in the PTASP NPRM.
    This section proposes revising the definition of ``investigation'' 
to reflect the replacement of the terms ``accident'' and ``incident'' 
with ``safety event'' as described above.
    This section proposes new terms and definitions for ``inspection'' 
and ``risk-based inspection program'' to support new SSOA requirements 
mandated by the BIL.
    This section proposes revising the definition of ``Public 
Transportation Agency Safety Plan'' to remove reference to the 
transition from the requirements under 49 CFR part 659, the previous 
State Safety Oversight regulation, to the present requirements under 49 
CFR part 674. This revision is consistent with the end of the 
transition period, which occurred in early 2019, and FTA's subsequent 
rescission of part 659 (87 FR 6783).
    This section proposes revising the definition of ``Public 
Transportation Safety Certification Training Program'' to remove 
reference to the interim provisions for this program. This section also 
proposes adding a new term and definition for ``designated personnel'' 
to recognize individuals subject to the Public Transportation Safety 
Certification Training Program regulation (49 CFR 672).
    This section proposes reordering the clauses in the definition of 
``rail fixed guideway public transportation system'' for clarity. This 
change aligns with the definition that FTA proposed in the PTASP NPRM 
and does not reflect a

[[Page 78271]]

change in FTA's implementation or interpretation.
    FTA proposes a minor revision to the definition of ``State Safety 
Oversight Agency'' to add a citation referencing the SSOA inspection 
requirement in 49 U.S.C. 5329(k), which was added by the BIL.

Section 674.9 Reserved

    FTA proposes removing and reserving this section. Previously, this 
section provided requirements for the transition from 49 CFR part 659, 
the previous State Safety Oversight regulation, to part 674. This 
removal acknowledges the end of the transition period, which occurred 
in early 2019, and FTA's subsequent rescission of part 659.

Subpart B--Role of the State

Section 674.11 State Safety Oversight Program

    FTA proposes eliminating the deadlines established for States' 
initial compliance with the requirement, as all States must have an 
FTA-approved SSO program for rail transit agencies in their State to be 
eligible for FTA financial assistance. This initial compliance date, 
which was three years of April 15, 2016,'' has already passed. FTA is 
also making a minor technical correction to the statutory citation 
regarding FTA triennial audits of SSO programs.

Section 674.13 Designation of Oversight Agency

    FTA proposes revising the statutory citation in Sec.  674.13(a) to 
reflect new statutory requirements. In Sec.  674.13(a)(5), FTA proposes 
including inspection authorities to the list of authorities an SSOA 
must have, reflecting the new requirements in 49 U.S.C. 5329(k) that 
SSOAs must conduct risk-based inspections of the rail fixed guideway 
public transportation systems that the SSOA oversees.
    In Sec. Sec.  674.13(a)(4) and (a)(6), FTA proposes a new reference 
to 49 CFR part 673, Public Transportation Agency Safety Plans, which 
did not exist when FTA published the current part 674 in 2016.

Section 674.15 Designation of Oversight Agency for Multi-State System

    FTA is not proposing changes to this section.

Section 674.17 Use of Federal Financial Assistance

    FTA is proposing to delete the term ``parts'' as superfluous.

Section 674.19 Certification of a State Safety Oversight Program

    FTA proposes removing ``(e)'' from ``5329(e)'' in this section for 
the reasons mentioned above and adding language in Sec.  674.19(d) to 
clarify the Administrator's determination to issue a certification or a 
denial of certification for an SSO program. This does not reflect a 
change in FTA's application of the statutory and regulatory criteria.

Section 674.21 Withholding of Federal Financial Assistance for 
Noncompliance

    When FTA published its final rule in 2016, States with existing 
rail fixed guideway public transportation systems were provided a 
three-year transition period. Now that the transition period has 
expired, FTA proposes updating Sec.  674.21(b) to adopt FTA current 
practice, which is to require a State to establish an SSO program and 
have that program approved by the FTA Administrator prior to a new rail 
fixed guideway public transportation system entering the engineering or 
construction phase of development. FTA also proposes replacing the word 
``apportioned'' with ``authorized'' for accuracy.

Section 674.23 Confidentiality of Information

    FTA is not proposing changes to this section.

Subpart C--State Safety Oversight Agencies

Section 674.25 Role of the State Safety Oversight Agency

    In Sec.  674.25, FTA proposes to add a new paragraph (c) to 
explicitly acknowledge an SSOA's authority to provide safety oversight 
of projects in the engineering or construction phase of development. 
This parallels the statutory language in 49 U.S.C. 5329(e)(2)(B) and 
clarifies FTA's intent that SSOAs take an active oversight role during 
a project's pre-revenue phases. FTA also proposes to move from the 
current paragraph (b) into a new paragraph (d) the requirement that 
SSOAs ensure that a PTASP meets the requirements of 49 U.S.C. 5329(d) 
and part 673, a non-substantive change that will provide clarity and 
improve readability. Consequently, FTA proposes to redesignate existing 
paragraphs 674.24(c) through (f) as paragraphs (e) through (h).
    In addition, FTA is proposing minor conforming edits in these 
paragraphs to reflect the proposed definitions in Sec.  674.7 as 
discussed above and to remove references to 49 U.S.C. 5330, which has 
been repealed.

Section 674.27 State Safety Oversight Program Standards

    In Sec.  674.27, FTA proposes a new paragraph (a)(3) to require an 
SSOA to develop a process to address comments from an RTA regarding an 
SSO program standard. This reflects industry concerns that some SSOAs 
do not formally respond to RTA comments. This addition requires SSOs to 
establish a process by which SSOAs will address RTA comments regarding 
the program standard. Because of the proposed addition of paragraph 
(a)(3), the remaining paragraphs are being renumbered.
    FTA proposes expanding the renumbered Sec.  674.27(a)(5) to include 
specific requirements for SSOA oversight of RTA internal safety 
reviews. Internal safety reviews are distinct from the existing annual 
review and update requirement in 49 CFR 673.11(a)(5). Internal safety 
reviews monitor the actual implementation of the PTASP. However, the 
results of the internal safety reviews may inform the RTA's annual 
PTASP document review and update process. The previous 49 CFR 659.19 
included explicit requirements for these internal safety reviews; 
however, Part 674 removed the prescriptive requirements in Sec.  659.19 
with the expectation that they would be addressed in the PTASP final 
rule. The PTASP final rule did not address internal safety reviews, 
prompting some RTAs to ask whether they were no longer required by FTA, 
even though SSOAs continued to require them under their State program 
standards. To provide clarity, the proposed language confirms the 
requirement that the State's program standard must define internal 
safety review requirements, which are addressed in Sec.  673.27(d)(iii) 
of the PTASP NPRM (88 FR 25336, at 25351). The proposed language 
establishes minimum requirements for internal safety reviews, including 
the requirement that RTAs must verify the implementation of all 
elements of the PTASP over a three-year period, with the expectation 
that RTAs will be conducting internal safety reviews on an ongoing 
basis. Further, the RTA must notify the SSOA thirty days before it 
conducts an internal safety review of any aspect of the rail fixed 
guideway public transportation system and provide any checklists or 
procedures it will use during the review. Finally, the RTA must submit 
a report to the SSOA annually documenting the internal safety review 
activities and the status of

[[Page 78272]]

subsequent findings and corrective actions.
    A new Sec.  674.27(a)(6) relating to the oversight of safety risk 
mitigations proposes requirements for the SSOA to define the process it 
will use to oversee an RTA's development, implementation, and 
monitoring of safety risk mitigations. The program standard must 
specify the frequency and format for how the SSOA will receive and 
review information about an RTA's safety risk mitigation status and 
effectiveness. Although 49 CFR part 673 established specific 
requirements for safety management, including the development, 
implementation and monitoring of safety risk mitigations, part 674 was 
published prior to part 673 and did not include specific oversight 
requirements related to safety risk mitigation. Therefore, FTA is 
proposing these requirements to ensure that SSOAs have a documented 
process to oversee the safety risk mitigation processes required of 
RTAs.
    A new Sec.  674.27(a)(7) regarding oversight of the safety 
certification training program proposes that the SSOA will review and 
approve RTA designations of individuals directly responsible for safety 
oversight and the RTA's identification of refresher training as 
required under the Public Safety Certification Training Program 
regulation (49 CFR 672). This role was not made explicit in the current 
part 674 and this new language clarifies FTA's expectation that SSOAs 
oversee RTA compliance with 49 CFR 672 requirements.
    The renumbered Sec.  674.27(a)(9) is also renamed from ``Accident 
notification'' to ``Safety event notification,'' consistent with the 
discussion above in Sec.  674.7, where FTA proposes replacing the term 
``accident'' with the term ``safety event'' and proposes conforming 
edits in the renumbered Sec.  674.27(a)(10). FTA also proposes 
requiring the SSO program standard to establish requirements for RTAs 
to notify the SSOA and FTA of safety events to ensure that the 
notification requirement in Sec.  674.33 is addressed in an RTA's 
PTASP, as the current paragraph omitted any reference to FTA.
    In the renumbered Sec.  674.27(a)(11), FTA is inserting the term 
``SSO'' before ``program standard'' for consistency with the rest of 
this section.
    FTA proposes adding a new Sec.  674.27(a)(12), ``Inspections,'' to 
incorporate the requirement that SSOAs conduct risk-based inspections 
of the RTAs they oversee. On October 21, 2022, FTA issued Special 
Directives to each SSOA directing them to develop and implement a risk-
based inspection program as required by the BIL. The Special Directives 
require SSOAs to include policies and procedures for Risk-Based 
Inspection in their Program Standards and develop and begin 
implementing their Risk-Based Inspection program by October 21, 2024.
    FTA proposes adding a new Sec.  674.27(a)(13), ``Vehicle 
maintenance and testing,'' requiring SSOAs to amend their program 
standard to include a new requirement that SSOAs ensure that rail 
transit agencies conduct maintenance and testing procedures of braking 
systems, consistent with NTSB Recommendation R-17-004 (https://data.ntsb.gov/carol-main-public/sr-details/R-17-004).
    Finally, a new Sec.  674.27(a)(14), ``Data collection,'' proposes 
specific data collection requirements for collecting data that the RTA 
uses when identifying hazards and assessing safety risk. This responds 
to industry feedback regarding the role of the SSOA in overseeing 
safety risk management of the RTAs under their jurisdiction.

Section 674.29 Public Transportation Agency Safety Plans: General 
Requirements

    In Sec.  674.29, FTA proposes the addition of a reference to 49 
U.S.C. 5329(d) and 49 CFR part 673 in paragraph (a) for clarity and the 
removal of paragraph (b). Because part 674 was published prior to part 
673, FTA provided a list of the expected PTASP elements in paragraph 
(b) as an interim measure to guide SSOAs. With the publication of part 
673 in 2018, the list is no longer necessary. Consistent with the 
removal of the current paragraph (b), FTA proposes to renumber 
paragraph (c) as paragraph (b).

Section 674.31 Triennial Audits: General Requirements

    In Sec.  674.31, FTA proposes to clarify that SSOAs which elect to 
audit an RTA's compliance with its Public Transportation Agency Safety 
Plan on an ongoing basis must issue interim audit reports at least 
annually. This clarification does not reflect a change in FTA's current 
implementation of this requirement.

Section 674.33 Notifications of Safety Events

    In Sec.  674.33, FTA proposes to replace the term ``accident'' with 
``safety event.'' This replacement streamlines definitions used in 
requirements related to event notification and investigation.
    This section proposes specific notification criteria that replace 
the Appendix in the current part 674. This replacement text clarifies 
FTA's minimum requirements for two-hour notifications to FTA and SSOAs 
and reflects changes to reporting thresholds suggested by SSOAs and 
RTAs, who found it difficult to quickly determine the scope of one's 
``serious injuries'' as defined in the Appendix within two hours of a 
safety event, specifically, injuries resulting in bone fractures, nerve 
or muscle damage, injuries to internal organs, or hospitalizations 
exceeding 48 hours. The proposed notification requirements exclude 
general crimes but include intentional events resulting in a collision 
with a transit vehicle, such as an assault, homicide, or suicide. 
Additionally, FTA proposes to remove paragraph (b) that requires RTAs 
to notify FTA and SSOAs of safety events triggering FRA's notification 
requirements under 49 CFR part 225, as notification on FRA-regulated 
trackage is already reported to the USDOT and received by FTA via the 
National Response Center.

Section 674.35 Investigations

    In Sec.  674.35, FTA proposes replacing the term ``accident'' with 
``safety event,'' and clarifying that this includes any safety event 
that meets one or more thresholds in Sec.  674.33. FTA also proposes 
dividing the requirements in Sec.  674.35(a) into a new Sec.  674.35(a) 
and Sec.  674.35(b) for clarity. These changes do not reflect a change 
in the implementation of the current requirements.

Section 674.37 Corrective Action Plans

    In Sec.  674.37, FTA proposes a new paragraph (a) and redesignating 
paragraphs (a) through (c) as paragraphs (b) through (d).
    The new paragraph (a) proposes language clarifying the basis for 
the development of a corrective action plan (CAP). The proposed 
language requires the development of a CAP to address investigations 
that determined causal or contributing factors require corrective 
actions, findings of non-compliance from safety reviews and inspections 
performed by the SSOA, or findings of non-compliance from internal 
safety reviews performed by the RTA. These proposals do not reflect a 
change in current practice.
    In the renumbered Sec.  674.37(c), FTA proposes language clarifying 
CAP requirements to ensure alignment with Safety Management System 
terminology. In the renumbered 674.37(d), FTA proposes adding ``FTA'' 
as an agency authorized to conduct investigations, reflecting FTA's 
authority to investigate public transportation accidents and incidents 
under 49 U.S.C. 5329(f)(5), with the

[[Page 78273]]

SSOA expected to evaluate whether the findings or recommendations by 
FTA or the NTSB require a CAP by the RTA.

Section 674.39 State Safety Oversight Agency Annual Reporting to FTA

    In Sec.  674.39(a)(2), FTA proposes clarifying language regarding 
``designated personnel'' for consistency with the Public Transportation 
Safety Certification Training Program in 49 CFR part 672 and does not 
reflect a change in purpose or intent.
    In Sec.  674.39(a)(3), FTA proposes replacing the term ``accident'' 
with ``safety event,'' consistent with the explanation provided above. 
Section 674.39(a)(4) proposes specifying that SSOAs must submit final 
investigation reports as part of their annual reporting to FTA. This 
reporting is already required through the current reporting process and 
this language does not reflect a change in FTA's practice.
    In Sec.  674.39(a)(5), FTA proposes specifying that SSOAs must 
provide a summary of the internal safety reviews conducted by RTAs 
during the previous 12 months and RTA progress in carrying out CAPs 
arising from the SSOA's oversight of RTA ASPs and any related safety 
reviews. This reporting is already required through the current 
reporting process and this language does not reflect a change in FTA's 
practice.

Section 674.41 Conflicts of Interest

    FTA is not proposing changes to this section.

Removed: Appendix to Part 674--Notification and Reporting of Accidents, 
Incidents, and Occurrences

    FTA proposes removing the table addressing the notification and 
reporting requirements for accidents, incidents, and occurrences, as 
FTA is proposing to address this requirement in Sec.  674.33.

III. Regulatory Analyses and Notices

    Executive Order 12866 (Regulatory Planning and Review), Executive 
Order 13563 (Improving Regulation and Regulatory Review), and 
Department of Transportation (DOT) Regulatory Policies and Procedures
    Executive Order 12866 (``Regulatory Planning and Review''), as 
supplemented by Executive Order 13563 (``Improving Regulation and 
Regulatory Review''), directs Federal agencies to assess the benefits 
and costs of regulations, to select regulatory approaches that maximize 
net benefits when possible, and to consider economic, environmental, 
and distributional effects. It also directs the Office of Management 
and Budget (OMB) to review significant regulatory actions, including 
regulations with annual economic effects of $100 million or more. OMB 
has determined that the proposed rule is not significant within the 
meaning of Executive Order 12866 and has not reviewed it under that 
order.
Overview
    The proposed rule, which implements amendments made by the 
Bipartisan Infrastructure Law, would add requirements for state safety 
oversight agencies (SSOAs) and the rail transit agencies (RTAs) they 
oversee. The proposed rule will require SSOAs to conduct risk-based 
inspections, oversee safety risk mitigations, and investigate a larger 
number of safety events than they currently investigate. The proposed 
rule will also require RTAs to conduct additional accident 
investigations and prepare additional reports. Finally, the proposed 
rule will clarify existing requirements, update terminology, and remove 
interim provisions that no longer apply.
Benefits
    The proposed rule would lead to increased oversight of RTA safety-
related activities, although the effects of the oversight are unknown 
and unquantified in the analysis. The proposed rule may also benefit 
SSOAs and rail transit agencies by clarifying requirements and reducing 
costs to ensure compliance.
Costs
    SSOAs and RTAs would incur economic costs to meet the new oversight 
and increased reporting requirements of the proposed rule. To estimate 
the costs of meeting the new requirements, FTA estimated the number of 
entities affected, the number and type of staff involved, and the time 
needed. The new oversight requirements would affect 31 SSOAs in 
operation as of March 1, 2023 (table 2).\1\
---------------------------------------------------------------------------

    \1\ Federal Transit Administration. August 3, 2022. ``State 
Safety Oversight Contacts.'' https://www.transit.dot.gov/regulations-and-guidance/safety/state-safety-oversight-contacts.

                  Table 2--Staff and Hours Needed for SSOAs To Meet New Oversight Requirements
----------------------------------------------------------------------------------------------------------------
                  Requirement                                 Staff                Annual hours     Total hours
----------------------------------------------------------------------------------------------------------------
SSOA documentation of enforcement authority     31 SSOA staff...................              40           1,240
 (first year only).
SSOA oversight (first year):
    Establish disposition process.............  31 SSOA staff...................              80           2,480
    Define requirements for internal safety     31 SSOA staff...................              80           2,480
     reviews.
    Document oversight of safety risk           31 SSOA staff...................              80           2,480
     mitigations.
    Document oversight of RTA training          31 SSOA staff...................              20             620
     compliance.
    Develop risk-based inspection programs....  62 SSOA staff (2 staff per SSOA)             160           9,920
    Establish thresholds for safety event       31 SSOA staff...................              10             310
     notifications.
    Document data collection procedures with    31 SSOA staff...................              20             620
     RTAs.
SSOA oversight (annual):
    Oversee safety risk mitigations...........  31 SSOA staff...................             500          15,500
    Oversee RTA training compliance...........  31 SSOA staff...................              20             620
----------------------------------------------------------------------------------------------------------------
Source: FTA analysis.

    Under the current thresholds for reporting safety events, RTAs had 
an average of 618 reportable events per year from 2017 to 2021.\2\ 
Under the proposed thresholds, the number would increase to 811 
reportable events per year (an increase of 193 reports) and result in 
additional reporting costs for SSOA and RTA employees (table 3).
---------------------------------------------------------------------------

    \2\ Average events calculated using FTA's State Safety Oversight 
Reporting system.

[[Page 78274]]



                Table 3--Staff and Hours Needed for SSOAs and RTAs To Meet Reporting Requirements
----------------------------------------------------------------------------------------------------------------
                  Requirement                                 Staff                Annual hours     Total hours
----------------------------------------------------------------------------------------------------------------
SSOA safety event tracking (annual)...........  SSOA staff; 193 reports.........               1             193
SSOA safety event investigations (annual):
    Prepare investigation reports.............  SSOA safety event investigators;              22           4,246
                                                 193 reports.
    Review and approve reports................  SSOA safety event investigators;              10           1,930
                                                 193 reports.
SSOA reporting to FTA (annual):
    Submit investigation reports..............  SSOA staff; 193 reports.........               5             320
    Submit summary of internal safety reviews.  SSOA staff; 193 reports.........               5             320
Investigation and reporting (annual):
    Conduct accident investigations...........  RTA safety event investigators;               47           9,071
                                                 193 reports.
    Prepare event investigation reports.......  RTA safety event investigators;               30           5,790
                                                 193 reports.
    Make submissions to SSOA..................  RTA safety event investigators;               12           2,316
                                                 193 reports.
----------------------------------------------------------------------------------------------------------------
Source: FTA analysis.

    To estimate the value of staff time spent on the requirements, FTA 
used occupational wage data from the Bureau of Labor Statistics as of 
May 2022 (table 2).\3\ For general SSOA and trail transit agency staff, 
the closest occupational category is ``General and Operations 
Managers'' (code 11-1021) in the ``Transit and Ground Passenger 
Transportation'' industry (North American Industry Classification 
System code 485000). FTA used median hourly wages as a basis for the 
estimates, multiplied by 1.62 to account for employer benefits, for a 
cost estimate of $95.27 per hour.\4\ For safety event investigators, 
who do not have a close analogue in the occupational wage data, FTA 
assumed a 25 percent wage and benefit premium for a cost estimate of 
$119.09 per hour.
---------------------------------------------------------------------------

    \3\ Bureau of Labor Statistics. 2023. ``May 2022 National 
Occupational Employment and Wage Estimates: United States.'' https://www.bls.gov/oes/2022/may/oes_nat.htm.
    \4\ Multiplier derived using Bureau of Labor Statistics data on 
employer costs for employee compensation in December 22 (https://www.bls.gov/news.release/ecec.htm). Employer costs for state and 
local government workers averaged $57.60 an hour, with $35.69 for 
wages and $21.95 for benefit costs. To estimate full costs from 
wages, one would use a multiplier of $57.60/$21.95, or 1.62.

                       Table 4--Occupational Categories and Wages Used To Value Staff Time
                                                     [$2022]
----------------------------------------------------------------------------------------------------------------
                                                                                   Median hourly     Wage with
                 Staff                    Occupational category        Code            wage          benefits
----------------------------------------------------------------------------------------------------------------
SSOA and RTA general staff............  General and Operations           11-1021          $59.07          $95.27
                                         Managers.
SSOA and RTA safety event               N/A.....................  ..............           73.84          119.09
 investigators.
----------------------------------------------------------------------------------------------------------------
Source: Bureau of Labor Statistics, May 2022 National Occupational Employment and Wage Estimates.

    The requirements of the proposed rule have estimated costs of $12.6 
million (in 2022 dollars) for the first year and annual costs of $10.7 
million for later years (table 5). The largest annual costs are for 
SSOA oversight ($7.9 million), which includes risk-based inspection 
activities, and RTA activities ($2.0 million), which include 
investigations and reporting for a larger number of safety events.

   Table 5--First-Year and Annual Costs for Proposed Rule Requirements
                                 [$2022]
------------------------------------------------------------------------
                                            First-year
               Requirement                     costs       Annual costs
------------------------------------------------------------------------
SSOA documentation of enforcement               $118,140  ..............
 authority..............................
SSOA oversight..........................       9,655,277      $7,853,642
SSOA safety event tracking..............          18,388          18,388
SSOA investigations.....................         735,517         735,517
SSOA annual reporting to FTA............          60,975          60,975
RTA investigations and reporting........       2,045,656       2,045,656
                                         -------------------------------
    Total...............................      12,633,954      10,714,179
------------------------------------------------------------------------
Totals may not sum due to rounding.

Summary
    Table 6 summarizes the economic effects of the proposed rule over 
the first ten years of the proposed rule from 2023--the assumed 
effective date of the rule--to 2032 in 2022 dollars. On an annualized 
basis, the proposed rule would have net costs of $11.7 million at a 7 
percent discount rate (discounted to 2023) and $11.3 million at 3 
percent.

[[Page 78275]]



                                 Table 6--Summary of Economic Effects, 2023-2033
                                           [$2022, discounted to 2023]
----------------------------------------------------------------------------------------------------------------
                                                                                    Annualized      Annualized
                    Item                               Total,  2023-2033               (7%)            (3%)
----------------------------------------------------------------------------------------------------------------
Benefits....................................  Unquantified......................  ..............  ..............
Costs:
    SSOA documentation of enforcement         $118,140..........................         $16,820         $13,850
     authority.
    SSOA oversight..........................  80,338,058........................       8,659,910       8,300,458
    SSOA safety event tracking..............  183,879...........................          19,675          18,940
    SSOA investigations.....................  7,355,168.........................         787,003         757,582
    SSOA annual reporting to FTA............  609,755...........................          65,244          62,805
    RTA investigations and reporting........  20,456,560........................       2,188,852       2,107,026
                                             -------------------------------------------------------------------
        Total costs.........................  109,061,560.......................      11,737,504      11,260,660
Net benefits................................  Unquantified......................  ..............  ..............
----------------------------------------------------------------------------------------------------------------
Totals may not sum due to rounding.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601 et seq.) 
requires Federal agencies to assess the impact of a regulation on small 
entities unless the agency determines that the regulation is not 
expected to have a significant economic impact on a substantial number 
of small entities.
    The proposed rule would require state safety oversight agencies to 
meet additional reporting and administrative requirements. Under the 
Regulatory Flexibility Act, governments and other public-sector 
organizations qualify as small entities if they serve a population of 
less than 50,000. State agencies do not qualify because they serve 
populations greater than 50,000. FTA has therefore determined that the 
proposed rule would not have a significant effect on a substantial 
number of small entities.

Unfunded Mandates Reform Act of 1995

    FTA has determined that this rulemaking does not require a written 
statement under the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1532) because it does not impose a Federal mandate that may result in 
the expenditure of $100 million or more in any 1 year (when adjusted 
annually for inflation using the base year of 1995) for either State, 
local, and tribal governments in the aggregate, or by the private 
sector.

Executive Order 13132 (Federalism Assessment)

    Executive Order 13132 requires agencies to assure meaningful and 
timely input by State and local officials in the development of 
regulatory policies that may have a substantial direct effect on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. This action has been analyzed in 
accordance with the principles and criteria contained in Executive 
Order 13132 (August 4, 1999), and FTA determined this action will not 
have a substantial direct effect or sufficient federalism implications 
on the States. FTA also determined this action will not preempt any 
State law or regulation or affect the States' ability to discharge 
traditional State governmental functions.

Executive Order 12372 (Intergovernmental Review)

    The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities apply 
to this program.

Paperwork Reduction Act

    In compliance with the Paperwork Reduction Act of 1995 (PRA) (44 
U.S.C. 3501 et seq.), and the White House Office of Management and 
Budget's (OMB) implementing regulation at 5 CFR 1320.8(d), FTA is 
seeking approval from OMB for a currently approved information 
collection (OMB Control Number 2132-0558) that is associated with this 
Notice of Proposed Rulemaking. The information collection (IC) was 
previously approved on April 7, 2023. However, this submission includes 
changes in requirements applicable to the SSO program affecting various 
respondents.

National Environmental Policy Act

    Federal agencies are required to adopt implementing procedures for 
the National Environmental Policy Act (NEPA) that establish specific 
criteria for, and identification of, three classes of actions: (1) 
Those that normally require preparation of an Environmental Impact 
Statement, (2) those that normally require preparation of an 
Environmental Assessment, and (3) those that are categorically excluded 
from further NEPA review (40 CFR 1507.3(b)). This rulemaking qualifies 
for categorical exclusions under 23 CFR 771.118(c)(4) (planning and 
administrative activities that do not involve or lead directly to 
construction). FTA has evaluated whether the rulemaking will involve 
unusual or extraordinary circumstances and has determined that it will 
not.

Executive Order 12630 (Taking of Private Property)

    FTA has analyzed this rulemaking under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights. FTA does not believe this rulemaking affects a taking 
of private property or otherwise has taking implications under 
Executive Order 12630.

Executive Order 12988 (Civil Justice Reform)

    This rulemaking 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.

Executive Order 13045 (Protection of Children)

    FTA has analyzed this rulemaking under Executive Order 13045, 
Protection of Children from Environmental Health Risks and Safety 
Risks. FTA certifies that this action will not cause an environmental 
risk to health or safety that might disproportionately affect children.

Executive Order 13175 (Tribal Consultation)

    FTA has analyzed this rulemaking under Executive Order 13175, dated 
November 6, 2000, and believes that it

[[Page 78276]]

will not have substantial direct effects on one or more Indian tribes; 
will not impose substantial direct compliance costs on Indian tribal 
governments; and will not preempt tribal laws. Therefore, a tribal 
summary impact statement is not required.

Executive Order 13211 (Energy Effects)

    FTA has analyzed this rulemaking under Executive Order 13211, 
Actions Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. FTA has determined that this action is not a 
significant energy action under that order and is not likely to have a 
significant adverse effect on the supply, distribution, or use of 
energy. Therefore, a Statement of Energy Effects is not required.

Executive Order 12898 (Environmental Justice)

    Executive Order 12898 (Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations) and DOT 
Order 5610.2(a) (https://www.transportation.gov/transportation-policy/environmental-justice/department-transportation-order-56102a) require 
DOT agencies to achieve Environmental Justice (EJ) as part of their 
mission by identifying and addressing, as appropriate, 
disproportionately high and adverse human health or environmental 
effects, including interrelated social and economic effects, of their 
programs, policies, and activities on minority and low-income 
populations. All DOT agencies must address compliance with Executive 
Order 12898 and the DOT Order in all rulemaking activities. On August 
15, 2012, FTA's Circular 4703.1 became effective, which contains 
guidance for recipients of FTA financial assistance to incorporate EJ 
principles into plans, projects, and activities (http://www.fta.dot.gov/documents/FTA_EJ_Circular_7.14-12_FINAL.pdf).
    FTA has evaluated this rulemaking under Executive Order 12898, the 
DOT Order, and the FTA Circular, and FTA has determined that this 
action will not cause disproportionately high and adverse human health 
and environmental effects on minority or low-income populations.

Regulation Identifier Number

    A Regulation Identifier Number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number contained in the heading 
of this document can be used to cross-reference this rulemaking with 
the Unified Agenda.

List of Subjects in 49 CFR Part 674

    Grant program--transportation, Mass transportation, Reporting and 
recordkeeping requirements, Safety.

Nuria I. Fernandez,
Administrator.


0
For the reasons stated in the preamble, and under the authority of 49 
U.S.C. 5329 and the delegation of authority at 49 CFR 1.91, the Federal 
Transit Administration proposes to revise 49 CFR part 674 to read as 
follows:

Title 49--Transportation

PART 674--STATE SAFETY OVERSIGHT

Sec.
Subpart A--General Provisions
674.1 Purpose.
674.3 Applicability.
674.5 Policy.
674.7 Definitions.
674.9 [Reserved]
Subpart B--Role of the State
674.11 State Safety Oversight Program.
674.13 Designation of oversight agency.
674.15 Designation of oversight agency for multi-state system.
674.17 Use of Federal financial assistance.
674.19 Certification of a State Safety Oversight Program.
674.21 Withholding of Federal financial assistance for 
noncompliance.
674.23 Confidentiality of information.
Subpart C--State Safety Oversight Agencies
674.25 Role of the State safety oversight agency.
674.27 State safety oversight program standards.
674.29 Public Transportation Agency Safety Plans: General 
requirements.
674.31 Triennial audits: General requirements.
674.33 Notification of safety events.
674.35 Investigations.
674.37 Corrective action plans.
674.39 State Safety Oversight Agency annual reporting to FTA.
674.41 Conflicts of interest.

    Authority: 49 U.S.C. 5329; 49 CFR 1.91.

49 CFR Part 674

Subpart A--General Provisions


Sec.  674.1  Purpose.

    This part carries out the mandate of 49 U.S.C. 5329 for State 
safety oversight of rail fixed guideway public transportation systems.


Sec.  674.3  Applicability.

    This part applies to States with rail fixed guideway public 
transportation systems; State safety oversight agencies that oversee 
the safety of rail fixed guideway public transportation systems; and 
entities that own or operate rail fixed guideway public transportation 
systems with Federal financial assistance authorized under 49 U.S.C. 
Chapter 53.


Sec.  674.5  Policy.

    (a) In accordance with 49 U.S.C. 5329, a State that has a rail 
fixed guideway public transportation system within the State has 
primary responsibility for overseeing the safety of that rail fixed 
guideway public transportation system. A State safety oversight agency 
must have the authority, resources, and qualified personnel to oversee 
the number, size, and complexity of rail fixed guideway public 
transportation systems that operate within a State.
    (b) FTA will certify whether a State safety oversight program meets 
the requirements of 49 U.S.C. 5329 and is adequate to promote the 
purposes of the public transportation safety programs codified at 49 
U.S.C. 5329.


Sec.  674.7  Definitions.

    As used in this part:
    Accountable Executive means a single, identifiable person who has 
ultimate responsibility for carrying out the Public Transportation 
Agency Safety Plan of a transit agency; responsibility for carrying out 
the transit agency's Transit Asset Management Plan; and control or 
direction over the human and capital resources needed to develop and 
maintain both the transit agency's Public Transportation Agency Safety 
Plan, in accordance with 49 U.S.C. 5329(d), and the transit agency's 
Transit Asset Management Plan in accordance with 49 U.S.C. 5326.
    Administrator means the Federal Transit Administrator or the 
Administrator's designee.
    Collision means any impact between a rail transit vehicle and any 
other vehicle, object, or any person.
    Contractor means an entity that performs tasks on behalf of FTA, a 
State Safety Oversight Agency, or a Rail Transit Agency, through 
contract or other agreement.
    Corrective action plan means a plan developed by a Rail Transit 
Agency that describes the actions the Rail Transit Agency will take to 
minimize, control, correct, or eliminate risks and hazards, and the 
schedule for taking those actions. Either a State Safety Oversight 
Agency or FTA may require a Rail

[[Page 78277]]

Transit Agency to develop and carry out a corrective action plan.
    Derailment for the purposes of this part means an event in which 
one or more wheels of a rail transit vehicle unintentionally leaves the 
rails.
    Designated personnel means:
    (1) Employees and contractors identified by a recipient whose job 
functions are directly responsible for safety oversight of the public 
transportation system of the public transportation agency; or
    (2) Employees and contractors of a State Safety Oversight Agency 
whose job functions require them to conduct reviews, inspections, 
examinations, and other safety oversight activities of the rail fixed 
guideway public transportation systems subject to the jurisdiction of 
the agency.
    Disabling Damage means damage to a rail transit vehicle resulting 
from a collision and preventing the vehicle from operating under its 
own power.
    Evacuation for Life Safety Reasons means a condition that occurs 
when persons depart from transit vehicles or facilities for life safety 
reasons, including self-evacuation. A life safety reason may include a 
situation such as a fire, the presence of smoke or noxious fumes, a 
fuel leak from any source, an electrical hazard, or other hazard to any 
person. An evacuation of passengers into the rail right of way (not at 
a platform or station) for any reason is presumed to be an evacuation 
for life safety reasons.
    Fatality means a death confirmed within 30 days of an event. 
Fatalities include suicides, but do not include deaths in or on transit 
property that are a result of drug overdose, exposure to the elements, 
illness, or natural causes.
    FRA means the Federal Railroad Administration, an operating 
administration within the United States Department of Transportation.
    FTA means the Federal Transit Administration, an operating 
administration within the United States Department of Transportation.
    Hazard means any real or potential condition that can cause injury, 
illness, or death; damage to or loss of the facilities, equipment, 
rolling stock, or infrastructure; or damage to the environment.
    Injury means any harm to persons as a result of an event that 
requires immediate medical attention away from the scene. Does not 
include harm resulting from a drug overdose, exposure to the elements, 
illness, natural causes, or occupational safety events occurring in 
administrative buildings.
    Inspection means a physical observation of equipment, facilities, 
rolling stock, operations, or records for the purpose of gathering or 
analyzing facts or information.
    Investigation means the process of determining the causal and 
contributing factors of a safety event or hazard, for the purpose of 
preventing recurrence and mitigating safety risk.
    National Public Transportation Safety Plan means the plan to 
improve the safety of all public transportation systems that receive 
Federal financial assistance under 49 U.S.C. Chapter 53.
    NTSB means the National Transportation Safety Board, an independent 
Federal agency.
    Person means a passenger, employee, contractor, volunteer, official 
worker, pedestrian, trespasser, or any other individual on the property 
of a rail fixed guideway public transportation system or associated 
infrastructure.
    Potential Consequence means the effect of a hazard.
    Public transportation has the meaning found in 49 U.S.C. 5302.
    Public Transportation Agency Safety Plan (PTASP) means the 
documented comprehensive agency safety plan for a transit agency that 
is required by 49 U.S.C. 5329 and part 673 of this chapter.
    Public Transportation Safety Certification Training Program 
(PTSCTP) means the certification training program that is required by 
49 U.S.C. 5329(c) and part 672 of this chapter.
    Rail fixed guideway public transportation system means any fixed 
guideway system, or any such system in engineering or construction, 
that uses rail, is operated for public transportation, is within the 
jurisdiction of a State, and is not subject to the jurisdiction of the 
Federal Railroad Administration. These include but are not limited to 
rapid rail, heavy rail, light rail, monorail, trolley, inclined plane, 
funicular, and automated guideway.
    Rail Transit Agency (RTA) means any entity that provides services 
on a rail fixed guideway public transportation system.
    Rail transit vehicle means any rolling stock used on a rail fixed 
guideway public transportation system, including but not limited to 
passenger and maintenance vehicles.
    Revenue vehicle means a rail transit vehicle used to provide 
revenue service for passengers. This includes providing fare free 
service.
    Risk-based inspection program means an inspection program that uses 
qualitative and quantitative data analysis to inform ongoing inspection 
activities. Risk-based inspection programs are designed to prioritize 
inspections to address safety concerns and hazards associated with the 
highest levels of safety risk.
    Safety Committee means the formal joint labor-management committee 
on issues related to safety that is required by 49 U.S.C. 5329 and part 
673 of this chapter.
    Safety event means an unexpected outcome resulting in injury or 
death; damage to or loss of the facilities, equipment, rolling stock, 
or infrastructure of a public transportation system; or damage to the 
environment.
    Safety risk means the composite of predicted severity and 
likelihood of a potential consequence of a hazard.
    Safety Risk Management means a process within a transit agency's 
Public Transportation Agency Safety Plan for identifying hazards and 
analyzing, assessing, and mitigating the safety risk of their potential 
consequences.
    Safety risk mitigation means a method or methods to eliminate or 
reduce the severity and/or likelihood of a potential consequence of a 
hazard.
    State means a State of the United States, the District of Columbia, 
Puerto Rico, the Northern Mariana Islands, Guam, American Samoa, and 
the Virgin Islands.
    State Safety Oversight Agency (SSOA) means an agency established by 
a State that meets the requirements and performs the functions 
specified by 49 U.S.C. 5329(e) and (k) and the regulations set forth in 
this part.
    Unintended train movement means any instance where a revenue 
vehicle is moving and is not under the control of a driver (whether or 
not the operator is physically on the vehicle at the time). This 
applies regardless of whether the event occurred in revenue service.


Sec.  674.9  [Reserved]

Subpart B--Role of the State


Sec.  674.11  State Safety Oversight Program.

    Every State that has a rail fixed guideway public transportation 
system must have a State Safety Oversight (SSO) program that has been 
approved by the Administrator. FTA will audit each State's compliance 
at least triennially, consistent with 49 U.S.C. 5329(e)(10). At 
minimum, an SSO program must:
    (a) Explicitly acknowledge the State's responsibility for 
overseeing the safety of the rail fixed guideway public transportation 
systems within the State;
    (b) Demonstrate the State's ability to adopt and enforce Federal 
and relevant State law for safety in rail fixed guideway public 
transportation systems;

[[Page 78278]]

    (c) Establish a State safety oversight agency, by State law, in 
accordance with the requirements of 49 U.S.C. 5329 and this part;
    (d) Demonstrate that the State has determined an appropriate 
staffing level for the State safety oversight agency commensurate with 
the number, size, and complexity of the rail fixed guideway public 
transportation systems in the State, and that the State has consulted 
with the Administrator for that purpose;
    (e) Demonstrate that the employees and other personnel of the State 
safety oversight agency who are responsible for the oversight of rail 
fixed guideway public transportation systems are qualified to perform 
their functions, based on appropriate training, including substantial 
progress toward or completion of the Public Transportation Safety 
Certification Training Program; and
    (f) Demonstrate that by law, the State prohibits any public 
transportation agency in the State from providing funds to the SSOA.


Sec.  674.13  Designation of oversight agency.

    (a) Every State that must establish a State Safety Oversight 
program in accordance with 49 U.S.C. 5329 must also establish a SSOA 
for the purpose of overseeing the safety of rail fixed guideway public 
transportation systems within that State. Further, the State must 
ensure that:
    (1) The SSOA is financially and legally independent from any public 
transportation agency the SSOA is obliged to oversee;
    (2) The SSOA does not directly provide public transportation 
services in an area with a rail fixed guideway public transportation 
system the SSOA is obliged to oversee;
    (3) The SSOA does not employ any individual who is also responsible 
for administering a rail fixed guideway public transportation system 
the SSOA is obliged to oversee;
    (4) The SSOA has authority to review, approve, oversee, and enforce 
the Public Transportation Agency Safety Plan for a rail fixed guideway 
public transportation system required by 49 U.S.C. 5329(d) and part 673 
of this chapter;
    (5) The SSOA has investigative, inspection, and enforcement 
authority with respect to the safety of all rail fixed guideway public 
transportation systems within the State;
    (6) At least once every three years, the SSOA audits every rail 
fixed guideway public transportation system's compliance with the 
Public Transportation Agency Safety Plan required by 49 U.S.C. 5329(d) 
and part 673 of this chapter; and
    (7) At least once a year, the SSOA reports the status of the safety 
of each rail fixed guideway public transportation system to the 
Governor, the FTA, and the board of directors, or equivalent entity, of 
the rail fixed guideway public transportation system.
    (b) At the request of the Governor of a State, the Administrator 
may waive the requirements for financial and legal independence and the 
prohibitions on employee conflicts of interest under paragraphs (a)(1) 
and (3) of this section, if the rail fixed guideway public 
transportation systems in design, construction, or revenue operations 
in the State have fewer than one million combined actual and projected 
rail fixed guideway revenue miles per year or provide fewer than ten 
million combined actual and projected unlinked passenger trips per 
year. However:
    (1) If a State shares jurisdiction over one or more rail fixed 
guideway public transportation systems with another State, and has one 
or more rail fixed guideway public transportation systems that are not 
shared with another State, the revenue miles and unlinked passenger 
trips of the rail fixed guideway public transportation system under 
shared jurisdiction will not be counted in the Administrator's decision 
whether to issue a waiver.
    (2) The Administrator will rescind a waiver issued under this 
subsection if the number of revenue miles per year or unlinked 
passenger trips per year increases beyond the thresholds specified in 
this subsection.


Sec.  674.15  Designation of oversight agency for multi-state system.

    In an instance of a rail fixed guideway public transportation 
system that operates in more than one State, all States in which that 
rail fixed guideway public transportation system operates must either:
    (a) Ensure that uniform safety standards and procedures in 
compliance with 49 U.S.C. 5329 are applied to that rail fixed guideway 
public transportation system, through an SSO program that has been 
approved by the Administrator; or
    (b) Designate a single entity that meets the requirements for an 
SSOA to serve as the SSOA for that rail fixed guideway public 
transportation system, through an SSO program that has been approved by 
the Administrator.


Sec.  674.17  Use of Federal financial assistance.

    (a) In accordance with 49 U.S.C. 5329(e)(6), FTA will make grants 
of Federal financial assistance to eligible States to help the States 
develop and carry out their SSO programs. This Federal financial 
assistance may be used for reimbursement of both the operational and 
administrative expenses of SSO programs, consistent with the uniform 
administrative requirements for grants to States under 2 CFR parts 200 
and 1201. The expenses eligible for reimbursement include, 
specifically, the expense of employee training and the expense of 
establishing and maintaining a SSOA in compliance with 49 U.S.C. 5329.
    (b) The apportionments of available Federal financial assistance to 
eligible States will be made in accordance with a formula, established 
by the Administrator, following opportunity for public notice and 
comment. The formula will take into account fixed guideway vehicle 
revenue miles, fixed guideway route miles, and fixed guideway vehicle 
passenger miles attributable to all rail fixed guideway systems within 
each eligible State not subject to the jurisdiction of the FRA.
    (c) The grants of Federal financial assistance for State safety 
oversight shall be subject to terms and conditions as the Administrator 
deems appropriate.
    (d) The Federal share of the expenses eligible for reimbursement 
under a grant for State safety oversight activities shall be eighty 
percent of the reasonable costs incurred under that grant.
    (e) The non-Federal share of the expenses eligible for 
reimbursement under a grant for State safety oversight activities may 
not be comprised of Federal funds, any funds received from a public 
transportation agency, or any revenues earned by a public 
transportation agency.


Sec.  674.19  Certification of a State Safety Oversight Program.

    (a) The Administrator must determine whether a State's SSO program 
meets the requirements of 49 U.S.C. 5329. Also, the Administrator must 
determine whether a SSO program is adequate to promote the purposes of 
49 U.S.C. 5329, including, but not limited to, the National Public 
Transportation Safety Plan, the Public Transportation Safety 
Certification Training Program, and the Public Transportation Agency 
Safety Plans.
    (b) The Administrator must issue a certification to a State whose 
SSO program meets the requirements of 49 U.S.C. 5329. The Administrator 
must issue a denial of certification to a State whose SSO program does 
not meet the requirements of 49 U.S.C. 5329.
    (c) In an instance in which the Administrator issues a denial of

[[Page 78279]]

certification to a State whose SSO program does not meet the 
requirements of 49 U.S.C. 5329, the Administrator must provide a 
written explanation, and allow the State an opportunity to modify and 
resubmit its SSO program for the Administrator's approval. In the event 
the State is unable to modify its SSO program to merit the 
Administrator's issuance of a certification, the Administrator must 
notify the Governor of that fact, and must ask the Governor to take all 
possible actions to correct the deficiencies that are precluding the 
issuance of a certification for the SSO program. In his or her 
discretion, the Administrator may also impose financial penalties as 
authorized by 49 U.S.C. 5329(e), which may include:
    (1) Withholding SSO grant funds from the State;
    (2) Withholding up to five percent of the 49 U.S.C. 5307 Urbanized 
Area formula funds appropriated for use in the State or urbanized area 
in the State, until such time as the SSO program can be certified; or
    (3) Requiring all rail fixed guideway public transportation systems 
governed by the SSO program to spend up to 100 percent of their Federal 
funding under 49 U.S.C. chapter 53 only for safety-related improvements 
on their systems, until such time as the SSO program can be certified.
    (d) When determining whether to issue a certification or a denial 
of certification for a SSO program, the Administrator must evaluate 
whether the cognizant SSOA has the authority, resources, and expertise 
to oversee the number, size, and complexity of the rail fixed guideway 
public transportation systems that operate within the State, or will 
attain the necessary authority, resources, and expertise in accordance 
with a developmental plan and schedule.


Sec.  674.21  Withholding of Federal financial assistance for 
noncompliance.

    (a) In making a decision to impose financial penalties as 
authorized by 49 U.S.C. 5329(e) and determining the nature and amount 
of the financial penalties, the Administrator shall consider the extent 
and circumstances of the noncompliance; the operating budgets of the 
SSOA and the rail fixed guideway public transportation systems that 
will be affected by the financial penalties; and such other matters as 
justice may require.
    (b) If a State fails to establish an SSO program that has been 
approved by the Administrator prior to a rail fixed guideway public 
transportation system entering the engineering or construction phase of 
development, FTA will be prohibited from obligating Federal financial 
assistance authorized under 49 U.S.C. 5338 to any entity in the State 
that is otherwise eligible to receive that Federal financial 
assistance, in accordance with 49 U.S.C. 5329(e)(3).


Sec.  674.23  Confidentiality of information.

    (a) A State, an SSOA, or an RTA may withhold an investigation 
report prepared or adopted in accordance with these regulations from 
being admitted as evidence or used in a civil action for damages 
resulting from a matter mentioned in the report.
    (b) This part does not require public availability of any data, 
information, or procedures pertaining to the security of a rail fixed 
guideway public transportation system or its passenger operations.

Subpart C--State Safety Oversight Agencies


Sec.  674.25  Role of the State safety oversight agency.

    (a) An SSOA must establish minimum standards for the safety of all 
rail fixed guideway public transportation systems within its oversight. 
These minimum standards must be consistent with the National Public 
Transportation Safety Plan, the Public Transportation Safety 
Certification Training Program, the rules for Public Transportation 
Agency Safety Plans and all applicable Federal and State law.
    (b) An SSOA must review and approve the Public Transportation 
Agency Safety Plan for every rail fixed guideway public transportation 
system within its oversight. An SSOA must oversee an RTA's execution of 
its Public Transportation Agency Safety Plan. An SSOA must enforce the 
execution of a Public Transportation Agency Safety Plan, through an 
order of a corrective action plan or any other means, as necessary or 
appropriate.
    (c) An SSOA has the responsibility to provide safety oversight of 
an RTA's project(s) in the engineering or construction phase to verify 
compliance with all applicable Federal and State safety requirements.
    (d) An SSOA must ensure that a Public Transportation Agency Safety 
Plan meets the requirements at 49 U.S.C. 5329(d) and part 673 of this 
chapter.
    (e) An SSOA has primary responsibility for the investigation of any 
allegation of noncompliance with a Public Transportation Agency Safety 
Plan. These responsibilities do not preclude the Administrator from 
exercising their authority under 49 U.S.C. 5329(f).
    (f) An SSOA has primary responsibility for the investigation of a 
safety event on a rail fixed guideway public transportation system. 
This responsibility does not preclude the Administrator from exercising 
his or her authority under 49 U.S.C. 5329(f).
    (g) An SSOA may enter into an agreement with a contractor for 
assistance in overseeing safety event investigations and performing 
independent safety event investigations; and for expertise the SSOA 
does not have within its own organization.
    (h) All personnel and contractors employed by an SSOA must comply 
with the requirements of the Public Transportation Safety Certification 
Training Program as applicable.


Sec.  674.27  State safety oversight program standards.

    (a) An SSOA must adopt and distribute a written SSO program 
standard, consistent with the National Public Transportation Safety 
Plan and the rules for Public Transportation Agency Safety Plans. This 
SSO program standard must identify the processes and procedures that 
govern the activities of the SSOA. Also, the SSO program standard must 
identify the processes and procedures an RTA must have in place to 
comply with the standard. At minimum, the program standard must meet 
the following requirements:
    (1) Program management. The SSO program standard must explain the 
authority of the SSOA to oversee the safety of rail fixed guideway 
public transportation systems; the policies that govern the activities 
of the SSOA; the reporting requirements that govern both the SSOA and 
the rail fixed guideway public transportation systems; and the steps 
the SSOA will take to ensure open, on-going communication between the 
SSOA and every rail fixed guideway public transportation system within 
its oversight.
    (2) Program standard development. The SSO program standard must 
explain the SSOA's process for developing, reviewing, adopting, and 
revising its minimum standards for safety, and distributing those 
standards to the rail fixed guideway public transportation systems.
    (3) Disposition of RTA comments. The SSO program standard must 
establish a disposition process that defines how the SSOA will address 
any comments the RTA makes with respect to the SSO program standard.
    (4) Program policy and objectives. The SSO program standard must 
set an explicit policy and objectives for safety

[[Page 78280]]

in rail fixed guideway public transportation throughout the State.
    (5) Oversight of RTA Public Transportation Agency Safety Plans and 
internal safety reviews. The SSO program standard must explain the role 
of the SSOA in overseeing an RTA's execution of its Public 
Transportation Agency Safety Plan and any related safety reviews of the 
RTA's fixed guideway public transportation system. The SSO program 
standard must describe the process whereby the SSOA will receive and 
evaluate all material submitted under the signature of an RTA's 
accountable executive. The SSO program standard must define baseline 
RTA internal safety review requirements including, at a minimum, the 
following requirements:
    (i) The RTA must develop and document an ongoing internal safety 
review process to ensure that all elements of an RTA's Public 
Transportation Agency Safety Plan are performing and being implemented 
as intended.
    (ii) The RTA's internal safety review process must ensure that the 
implementation of all elements of its Public Transportation Agency 
Safety Plan are reviewed within a three-year period.
    (iii) The RTA must notify the SSOA at least thirty (30) days before 
the RTA conducts an internal safety review of any aspect of the rail 
fixed guideway public transportation system and provide any checklists 
or procedures it will use during the review.
    (iv) The RTA must submit a report to the SSOA annually documenting 
the internal safety review activities and the status of subsequent 
findings and corrective actions.
    (6) Oversight of safety risk mitigations. The SSO program standard 
must explain the role of the SSOA in overseeing an RTA's development, 
implementation, and monitoring of safety risk mitigations related to 
rail fixed guideway transportation, including how the SSOA will track 
RTA safety risk mitigations. The SSO program standard must specify the 
frequency and format whereby the SSOA will receive and review 
information on RTA safety risk mitigation status and effectiveness.
    (7) Oversight of RTA compliance with the Public Transportation 
Safety Certification Training Program. The SSOA must review and approve 
the RTA's designated personnel. The SSOA must review and approve the 
refresher training defined by the RTA to satisfy the requirements of 
the Public Transportation Safety Certification Training Program.
    (8) Triennial SSOA audits of RTA Public Transportation Agency 
Safety Plans. The SSO program standard must explain the process the 
SSOA will follow and the criteria the SSOA will apply in conducting a 
complete audit of the RTA's compliance with its Public Transportation 
Agency Safety Plan at least once every three years, in accordance with 
49 U.S.C. 5329. Alternatively, the SSOA and RTA may agree that the SSOA 
will conduct its audit on an on-going basis over the three-year 
timeframe. The program standard must establish a procedure the SSOA and 
RTA will follow to manage findings and recommendations arising from the 
triennial audit.
    (9) Safety event notifications. The SSO program standard must 
establish requirements for RTA notifications of safety events occurring 
on the RTA's rail fixed guideway public transportation system, 
including notifications to the SSOA and to FTA. SSOA safety event 
notification requirements must address, specifically, the time limits 
for notification, methods of notification, and the nature of the 
information the RTA must submit to the SSOA.
    (10) Investigations. The SSO program standard must identify safety 
events that require an RTA to conduct an investigation. Also, the 
program standard must address how the SSOA will oversee an RTA's own 
internal investigation; the role of the SSOA in supporting any 
investigation conducted or findings and recommendations made by the 
NTSB or FTA; and procedures for protecting the confidentiality of the 
investigation reports.
    (11) Corrective actions. The program standard must explain the 
process and criteria by which the SSOA may order an RTA to develop and 
carry out a corrective action plan (CAP), and a procedure for the SSOA 
to review and approve a CAP. Also, the program standard must explain 
the SSOA's policy and practice for tracking and verifying an RTA's 
compliance with the CAP and managing any conflicts between the SSOA and 
RTA relating either to the development or execution of the CAP or the 
findings of an investigation.
    (12) Inspections. The SSO program standard must include or 
incorporate by reference a risk-based inspection program that:
    (i) is commensurate with the number, size, and complexity of the 
rail fixed guideway public transportation systems that the State safety 
oversight agency oversees;
    (ii) provides the SSOA with the authority and capability to enter 
the facilities of each rail fixed guideway public transportation system 
that the SSOA oversees to inspect infrastructure, equipment, records, 
personnel, and data, including the data that the RTA collects when 
identifying and evaluating safety risks; and
    (iii) include policies and procedures regarding the access of the 
SSOA to conduct inspections of the rail fixed guideway public 
transportation system, including access for inspections that occur 
without advance notice to the RTA.
    (13) Vehicle maintenance and testing. The SSO program standard must 
include the process by which the SSOA will review an RTA's rail transit 
vehicle maintenance program, including periodic testing of rail transit 
vehicle braking systems, to ensure performance, and to detect potential 
latent system failures.
    (14) Data collection. The program standard must include policies 
and procedures for collecting and reviewing data that the RTA uses when 
identifying hazards and assessing safety risk. The frequency of 
collection shall be commensurate with the size and complexity of the 
rail fixed guideway public transportation system.
    (b) At least once a year an SSOA must submit its SSO program 
standard and any referenced program procedures to FTA, with an 
indication of any revisions made to the program standard since the last 
annual submittal. FTA will evaluate the SSOA's program standard as part 
of its continuous evaluation of the State Safety Oversight Program, and 
in preparing FTA's report to Congress on the certification status of 
that State Safety Oversight Program, in accordance with 49 U.S.C. 5329.


Sec.  674.29  Public Transportation Agency Safety Plans: General 
requirements.

    (a) In determining whether to approve a Public Transportation 
Agency Safety Plan for a rail fixed guideway public transportation 
system, an SSOA must evaluate whether the Public Transportation Agency 
Safety Plan is compliant with 49 U.S.C. 5329(d) and part 673 of this 
chapter; is consistent with the National Public Transportation Safety 
Plan; and is in compliance with the SSO program standard set by the 
SSOA.
    (b) In an instance in which an SSOA does not approve a Public 
Transportation Agency Safety Plan, the SSOA must provide a written 
explanation and allow the RTA an opportunity to modify and resubmit its 
Public Transportation Agency Safety Plan for the SSOA's approval.

[[Page 78281]]

Sec.  674.31  Triennial audits: General requirements.

    At least once every three years, an SSOA must conduct a complete 
audit of an RTA's compliance with its Public Transportation Agency 
Safety Plan. Alternatively, an SSOA may conduct the audit on an on-
going basis over the three-year timeframe. If an SSOA audits an RTA's 
compliance on an ongoing basis, the SSOA shall issue interim audit 
reports at least annually. At the conclusion of the three-year audit 
cycle, the SSOA shall issue a report with findings and recommendations 
arising from the triennial or ongoing audit, which must include, at 
minimum, an analysis of the effectiveness of the Public Transportation 
Agency Safety Plan, recommendations for improvements, and a corrective 
action plan, if necessary or appropriate. The RTA must be given an 
opportunity to comment on the findings and recommendations.


Sec.  674.33  Notifications of safety events.

    An RTA must notify FTA and the SSOA within two hours of any safety 
event occurring on a rail fixed guideway public transportation system 
that results in one or more of the following:
(a) Fatality
(b) Two or more injuries
(c) Derailment
(d) Collision resulting in one or more injuries
(e) Collision between two rail transit vehicles
(f) Collision resulting in disabling damage to a rail transit vehicle
(g) Evacuation for life safety reasons
(h) Unintended train movement.


Sec.  674.35  Investigations.

    (a) An SSOA must investigate or require an investigation of any 
safety event that requires notification under Sec.  674.33.
    (b) The SSOA is ultimately responsible for the sufficiency and 
thoroughness of all investigations, whether conducted by the SSOA or 
RTA. If an SSOA requires an RTA to investigate a safety event, the SSOA 
must conduct an independent review of the RTA's findings of causation. 
In any instance in which an RTA is conducting its own internal 
investigation of the safety event, the SSOA and the RTA must coordinate 
their investigations in accordance with the SSO program standard and 
any agreements in effect.
    (c) Within a reasonable time, an SSOA must issue a written report 
on its investigation of a safety event or review of an RTA's safety 
event investigation in accordance with the reporting requirements 
established by the SSOA. The report must describe the investigation 
activities; identify the factors that caused or contributed to the 
safety event; and set forth a corrective action plan, as necessary or 
appropriate. The SSOA must formally adopt the report of a safety event 
and transmit that report to the RTA for review and concurrence. If the 
RTA does not concur with an SSOA's report, the SSOA may allow the RTA 
to submit a written dissent from the report, which may be included in 
the report, at the discretion of the SSOA.
    (d) All personnel and contractors that conduct investigations on 
behalf of an SSOA must be trained to perform their functions in 
accordance with the Public Transportation Safety Certification Training 
Program.
    (e) The Administrator may conduct an independent investigation of 
any safety event or an independent review of an SSOA's or an RTA's 
findings of causation of a safety event.


Sec.  674.37  Corrective action plans.

    (a) The SSOA must, at a minimum, require the development of a CAP 
for the following:
    (1) Results from investigations, in which the RTA or SSOA 
determined that causal or contributing factors require corrective 
action;
    (2) Findings of non-compliance from safety reviews and inspections 
performed by the SSOA; or
    (3) Findings of non-compliance from internal safety reviews 
performed by the RTA.
    (b) In any instance in which an RTA must develop and carry out a 
CAP, the SSOA must review and approve the CAP before the RTA carries 
out the plan. However, an exception may be made for immediate or 
emergency corrective actions that must be taken to ensure immediate 
safety, provided that the SSOA has been given timely notification, and 
the SSOA provides subsequent review and approval.
    (c) A CAP must describe, specifically, the actions the RTA will 
take to correct the deficiency identified by the CAP, the schedule for 
taking those actions, and the individuals responsible for taking those 
actions. The RTA must periodically report to the SSOA on its progress 
in carrying out the CAP. The SSOA may monitor the RTA's progress in 
carrying out the CAP through unannounced, on-site inspections, or any 
other means the SSOA deems necessary or appropriate.
    (d) In any instance in which a safety event on the RTA's rail fixed 
guideway public transportation system is the subject of an 
investigation by the NTSB or FTA, the SSOA must evaluate whether the 
findings or recommendations by the NTSB or FTA require a CAP by the 
RTA, and if so, the SSOA must order the RTA to develop and carry out a 
CAP.


Sec.  674.39  State Safety Oversight Agency annual reporting to FTA.

    (a) On or before March 15 of each year, an SSOA must submit the 
following material to FTA:
    (1) The SSO program standard adopted in accordance with Sec.  
674.27, with an indication of any changes to the SSO program standard 
during the preceding twelve months;
    (2) Evidence that its designated personnel have completed the 
requirements of the Public Transportation Safety Certification Training 
Program, or, if in progress, the anticipated completion date of the 
training;
    (3) A publicly available report that summarizes its oversight 
activities for the preceding twelve months, describes the causal 
factors of safety events identified through investigation, and 
identifies the status of corrective actions, changes to Public 
Transportation Agency Safety Plans, and the level of effort by the SSOA 
in carrying out its oversight activities;
    (4) Final investigation reports for all safety events meeting one 
or more of the criteria specified at Sec.  674.33;
    (5) A summary of the internal safety reviews conducted by RTAs 
during the previous twelve months, and the RTA's progress in carrying 
out CAPs arising under Sec.  674.37(a)(3);
    (6) A summary of the triennial audits completed during the 
preceding twelve months, and the RTAs' progress in carrying out CAPs 
arising from triennial audits conducted in accordance with Sec.  
674.31;
    (7) Evidence that the SSOA has reviewed and approved any changes to 
the Public Transportation Agency Safety Plans during the preceding 
twelve months; and
    (8) A certification that the SSOA is in compliance with the 
requirements of this part.
    (b) These materials must be submitted electronically through a 
reporting system specified by FTA.


Sec.  674.41  Conflicts of interest.

    (a) An SSOA must be financially and legally independent from any 
rail fixed guideway public transportation system under the oversight of 
the SSOA, unless the Administrator has issued a waiver of this 
requirement in accordance with Sec.  674.13(b).
    (b) An SSOA may not employ any individual who provides services to 
a

[[Page 78282]]

rail fixed guideway public transportation system under the oversight of 
the SSOA, unless the Administrator has issued a waiver of this 
requirement in accordance with Sec.  674.13(b).
    (c) A contractor may not provide services to both an SSOA and a 
rail fixed guideway public transportation system under the oversight of 
that SSOA, unless the Administrator has issued a waiver of this 
prohibition.

[FR Doc. 2023-25186 Filed 11-14-23; 8:45 am]
BILLING CODE 4910-57-P