[Federal Register Volume 89, Number 135 (Monday, July 15, 2024)]
[Rules and Regulations]
[Pages 57355-57357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15289]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

23 CFR Part 1300

RIN 2127-AM65


Uniform Procedures for State Highway Safety Grant Programs

AGENCY: National Highway Traffic Safety Administration (NHTSA), U.S. 
Department of Transportation (DOT).

ACTION: Final rule.

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SUMMARY: This final rule amends the definition of ``equipment'' to 
conform with OMB's government-wide Guidance for Federal Financial 
Assistance affecting Federal grants.

DATES: This final rule is effective on October 1, 2024.

ADDRESSES: This document may be viewed online through the Federal 
eRulemaking portal at www.regulations.gov using the RIN number listed 
above. Electronic retrieval help and guidelines are available on the 
website. It is available 24 hours each day, 365 days each year. An 
electronic copy of this document may be downloaded by accessing the 
Office of the Federal Register's website at: www.federalregister.gov 
and the U.S. Government Publishing Office's website at: 
www.GovInfo.gov.

FOR FURTHER INFORMATION CONTACT: 
    Program issues: Barbara Sauers, Associate Administrator, Regional 
Operations and Program Delivery, National Highway Traffic Safety 
Administration; Telephone number: (202) 366-0144; Email: 
[email protected].
    Legal issues: Megan Brown, Attorney-Advisor, Office of the Chief 
Counsel, National Highway Traffic Safety Administration, 1200 New 
Jersey Avenue SE, Washington, DC 20590; Telephone number: (202) 366-
1834; Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. Technical Amendment Increasing Monetary Threshold for Equipment
III. Waiver of Notice and Comment
IV. Regulatory Analyses and Notices

I. Background

    On February 6, 2023, NHTSA published in the Federal Register a 
final rule titled Uniform Procedures for State Highway Safety Grant 
Programs. 88 FR 7780 (Feb. 6, 2023). NHTSA promulgated this final rule 
in accordance with the Infrastructure Investment and Jobs Act (IIJA, 
also known as the Bipartisan Infrastructure Law or BIL), signed into 
law on November 15, 2021 (Pub. L. 117-58).
    On April 22, 2024, after conducting notice and comment rulemaking, 
the Office of Management and Budget (OMB) published in the Federal 
Register revisions to its Guidance for Federal Financial Assistance, 
including the Uniform Administrative Requirements, Cost Principles, and 
Audit Requirements for Federal Awards (``Uniform Administrative 
Requirements''). 89 FR 30046 (Apr. 22, 2024). OMB is tasked with 
providing guidance to Federal agencies to ensure consistent and 
efficient use of Federal financial assistance and to provide direction 
and leadership to Federal agencies on Federal financial assistance 
requirements. In its final rule, OMB increased the monetary threshold 
for ``equipment'' in 2 CFR 200.1 from $5,000 to $10,000: This increase 
in the monetary threshold affects the application of several OMB 
requirements, including 2 CFR 200.313(e), which provides additional 
regulatory requirements relating to use, management and disposition of 
equipment acquired under a Federal award, and 2 CFR 200.439(b)(2), 
which provides rules of allowability for equipment. DOT adopts the 
Uniform Administrative Requirements via 2 CFR part 1201.
    The regulation implementing NHTSA's State highway safety grant 
program lays out requirements related to ``equipment'' in 23 CFR 
1300.31(d) specific to the NHTSA's grant program. Among other things, 
23 CFR 1300.31(d) requires States to seek prior written approval from 
the Regional Administrator before purchasing or disposing of equipment, 
unless the to-be-disposed-of equipment ``exceeded its useful life'' 
under State law. 23 CFR 1300.31(d) uses a $5,000 monetary threshold to 
define ``equipment,'' matching the prior OMB rules.

II. Technical Amendment Increasing Monetary Threshold for Equipment

    In this rule, effective for fiscal year 2025 grants, NHTSA makes a 
technical amendment to update the monetary threshold for equipment in 
NHTSA's Uniform Procedures for State highway safety grant programs from 
$5,000 to $10,000 in 23 CFR 1300.31(d) to conform with the updated OMB 
rules. As a result of this threshold increase, States will no longer 
have to seek pre-approval to purchase or dispose of equipment between 
$5,000 and $9,999.99. In addition, States will no longer have to apply 
the heightened rules for use and management of equipment for items that 
fall under $10,000. States should be aware, however, that they must 
continue to meet all State rules for equipment, as defined by the 
State. This rule will become effective on October 1, 2024, and will 
apply to fiscal year 2025 State highway safety grants and later.

III. Waiver of Notice and Comment

    NHTSA concludes that it has good cause to issue without notice and 
comment this technical amendment

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under 5 U.S.C. 553(b)(B). 5 U.S.C. 553(b)(B) provides that when an 
agency, for good cause, finds that notice and public comment are 
impractical, unnecessary, or contrary to the public interest, the 
agency may issue a final rule without providing notice and an 
opportunity for public comment.
    NHTSA makes this technical amendment to conform with the revisions 
published in OMB's final rule after OMB received and analyzed public 
comment. By issuing this technical amendment, NHTSA establishes 
consistency with OMB's rules and avoids confusion for State recipients 
of NHTSA's State highway safety grant programs as they prepare their 
fiscal year 2025 annual grant applications due August 2024.
    Since NHTSA is issuing this technical amendment to conform with 
OMB's updated definition, providing notice and an opportunity for 
public comment is impracticable and unnecessary.

III. Regulatory Analyses and Notices

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

    NHTSA has considered the impact of this rulemaking action under 
E.O. 12866 (as amended by E.O. 14094), E.O. 13563, and DOT's regulatory 
policies and procedures. This rulemaking document was not reviewed 
under E.O. 12866 or E.O. 13563. This action is not expected to impose 
any costs because it makes a limited revision that will lessen 
administrative burden under the State highway safety grant program. 
This rulemaking has been determined to be not ``significant'' under 
DOT's regulatory policies and procedures and the policies of OMB.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980 (5 U.S.C. 601 et seq.) 
requires agencies to evaluate the potential effects of their proposed 
and final rules on small businesses, small organizations, and small 
governmental jurisdictions. Section 605 of the RFA allows agencies to 
certify a rule, in lieu of preparing an analysis, if the proposed 
rulemaking is not expected to have a significant economic impact on a 
substantial number of small entities. The Small Business Regulatory 
Enforcement Fairness Act of 1996 (Pub. L. 104-21, 110 Stat. 857) 
amended the RFA to require Federal agencies to provide a statement of 
the factual basis for certifying that an action would not have a 
significant economic impact on a substantial number of small entities.
    This final rule makes a limited revision to the uniform procedures 
implementing State highway safety grant programs, which were previously 
determined not to have a significant impact on a substantial number of 
small entities. The grant programs impacted by this rule will affect 
only State governments, which are not considered to be small entities 
as that term is defined by the RFA. Therefore, NHTSA certifies that 
this action will not have a significant impact on a substantial number 
of small entities and finds that preparing a Regulatory Flexibility 
Analysis is unnecessary.

C. Executive Order 13132 (Federalism)

    E.O. 13132 on ``Federalism'' requires NHTSA to develop an 
accountable process to ensure ``meaningful and timely input by State 
and local officials in the development of regulatory policies that have 
federalism implications.'' 64 FR 43255 (August 10, 1999). ``Policies 
that have federalism implications'' are defined in the E.O. to include 
regulations that have ``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.'' Under E.O. 13132, an agency may not issue a regulation 
with federalism implications that imposes substantial direct compliance 
costs not required by statute unless the Federal Government provides 
the funds necessary to pay the direct compliance costs incurred by 
State and local governments or the agency consults with the State and 
local government in the process of developing the proposed regulation. 
An agency also may not issue a regulation with federalism implications 
that preempts a State law without consulting with State and local 
officials.
    NHTSA analyzed this rulemaking action in accordance with the 
principles and criteria set forth in E.O. 13132. The limited revision 
made by this rulemaking will decrease administrative burden for State 
recipients by updating the highway safety grant program's definition of 
``equipment'' to conform with the updated OMB government-wide guidance 
for Federal financial assistance. Therefore, NHTSA determines that this 
technical amendment would not have sufficient federalism implications 
as defined in the Order to warrant formal consultation with State and 
local officials or preparation of a federalism summary impact 
statement.

D. Executive Order 12988 (Civil Justice Reform)

    Pursuant to E.O. 12988 (61 FR 4729 (February 7, 1996)), ``Civil 
Justice Reform,'' the agency has considered whether this rule would 
have any retroactive effect. I conclude that it would not have any 
retroactive or preemptive effect, and judicial review it may be 
obtained pursuant to 5 U.S.C. 702. That section does not require that a 
petition for reconsideration be filed prior to seeking judicial review. 
This action meets applicable standards in sections 3(a) and 3(b)(2) of 
E.O. 12988, Civil Justice Reform, to minimize litigation, eliminate 
ambiguity, and reduce burden.

E. Paperwork Reduction Act

    Under the procedures established by the Paperwork Reduction Act of 
1995, codified at 44 U.S.C. 3501 et seq., a person is not required to 
respond to a collection of information by a Federal agency unless the 
collection displays a valid OMB control number. This rulemaking does 
not establish any new information collection requirements.

F. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act (UMRA) of 1995 (Pub. L. 104-4) 
requires agencies to prepare a written assessment of the costs, 
benefits, and other effects of proposed or final rules that include a 
Federal mandate likely to result in expenditures by State, local, or 
Tribal governments, in the aggregate, or by the private sector, of more 
than $100 million annually (adjusted annually for inflation with the 
base year of 1995). This rulemaking would not meet the definition of a 
Federal mandate because the resulting annual State expenditures will 
not exceed the minimum threshold; instead, this rulemaking will likely 
decrease administrative costs for States. Further, this rulemaking 
action updates NHTSA's State highway safety grant program, a voluntary 
program and States that choose to apply and qualify would receive grant 
funds.

G. National Environmental Policy Act

    NHTSA has analyzed the impacts of this rulemaking action under the 
National Environmental Policy Act (NEPA), codified at 42 U.S.C. 4321 et 
seq. NHTSA determines that this rulemaking would not have a significant 
impact on the quality of the human environment.

[[Page 57357]]

H. Executive Order 13211 (Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use)

    E.O. 13211 applies to any rulemaking that is: (1) determined to be 
economically significant under E.O. 12866, and likely to have a 
significant adverse effect on the supply, distribution, or use of 
energy; or (2) designated by the Administrator of the Office of 
Information and Regulatory Affairs as a significant energy action. 66 
FR 28355 (May 18, 2001). This rulemaking is not likely to have a 
significant adverse effect on the supply of, distribution of, or use of 
energy. This rulemaking has not been designated as a significant energy 
action. Accordingly, this rulemaking is not subject to E.O. 13211.

I. Executive Order 13175 (Consultation and Coordination With Indian 
Tribes)

    NHTSA has analyzed this rulemaking under E.O. 13175 and determined 
that it would not have a substantial direct effect on one or more 
Indian Tribes, would not impose substantial direct compliance costs on 
Indian Tribal governments, and would not preempt Tribal law. Therefore, 
a Tribal summary impact statement is not required.

J. Privacy Act

    Please note that anyone can search the electronic form of all 
comments received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477). For additional information on DOT's 
compliance with the Privacy Act, please visit https://www.transportation.gov/privacy.

List of Subjects in 23 CFR Part 1300

    Administrative practice and procedure, Alcohol abuse, Drug abuse, 
Grant programs--transportation, Highway safety, Intergovernmental 
relations, Motor vehicles--motorcycles, Reporting and recordkeeping 
requirements.

    For the reasons stated in the preamble, under the authority of 23 
U.S.C. 401 et seq., the NHTSA amends 23 CFR part 1300 as follows:

PART 1300--UNIFORM PROCEDURES FOR STATE HIGHWAY SAFETY GRANT 
PROGRAMS

0
1. The authority citation for part 1300 continues to read as follows:

    Authority: 23 U.S.C. 402; 23 U.S.C. 405; Sec. 1906, Pub. L. 109-
59, 119 Stat. 1468, as amended by Sec. 25024, Pub. L. 117-58, 135 
Stat. 879; delegation of authority at 49 CFR 1.95.


0
2. Amend Sec.  1300.31 by revising paragraph (d) introductory text to 
read as follows:


Sec.  1300.31  Equipment.

* * * * *
    (d) Major purchases and dispositions. Equipment with a useful life 
of more than one year and an acquisition cost of $10,000 or more shall 
be subject to the following requirements:
* * * * *

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.81 and 1.95 and 49 CFR 501.5.
Sophie Shulman,
Deputy Administrator.
[FR Doc. 2024-15289 Filed 7-12-24; 8:45 am]
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