[Federal Register Volume 90, Number 103 (Friday, May 30, 2025)]
[Rules and Regulations]
[Pages 22860-22863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09709]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Part 356
[Docket No. FMCSA-2025-0105]
RIN 2126-AC79
Motor Carrier Routing Regulations
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), Department
of Transportation (DOT).
ACTION: Final rule.
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SUMMARY: FMCSA repeals the for-hire motor carrier routing regulations
which concern servicing municipalities and unincorporated communities.
These regulations are unlawful because they exceed FMCSA's statutory
authority following the transfer of rules from the Interstate Commerce
Commission (ICC) to the Federal Highway Administration (FHWA) in 1995,
which were carried over to FMCSA in 2000.
DATES: Effective May 30, 2025.
FOR FURTHER INFORMATION CONTACT: Jeff Secrist, Chief, Division of
Registration, FMCSA, 1200 New Jersey Ave. SE, Washington, DC 20590,
(202) 385-2367, [email protected]. If you have questions on viewing
or submitting material to the docket, call Dockets Operations at (202)
366-9826.
SUPPLEMENTARY INFORMATION: FMCSA organizes this final rule as follows:
I. Availability of Rulemaking Documents
II. Abbreviations
III. Legal Basis
IV Discussion of Final Rule
V International Impacts
VI. Section-by-Section Analysis
VII. Regulatory Analyses
A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563
(Improving Regulation and Regulatory Review), and DOT Regulatory
Policies and Procedures
B. E.O. 14192 (Unleashing American Prosperity Through
Deregulation)
C. Congressional Review Act
D. Regulatory Flexibility Act
E. Assistance for Small Entities
F. Unfunded Mandates Reform Act of 1995
G. Paperwork Reduction Act
H. E.O. 13132 (Federalism)
I. Privacy
J. E.O. 13175 (Indian Tribal Governments)
K. National Environmental Policy Act of 1969
I. Availability of Rulemaking Documents
To view any documents mentioned as being available in the docket,
go to https://www.regulations.gov/docket/FMCSA-2025-0105/document and
choose the document to review. To view comments, click this final rule,
then click ``Browse Comments.'' If you do not have access to the
internet, you may view the docket online by visiting Dockets Operations
at U.S. Department of Transportation, 1200 New Jersey Avenue SE,
Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays. To be sure someone is there to help
you, please call (202) 366-9317 or (202) 366-9826 before visiting
Dockets Operations.
II. Abbreviations
ANPRM Advance notice of proposed rulemaking
APA Administrative Procedure Act
CBI Confidential Business Information
CFR Code of Federal Regulations
CMV Commercial motor vehicle
DOT Department of Transportation
FMCSRs Federal Motor Carrier Safety Regulations
FR Federal Register
ICC Interstate Commerce Commission
NEPA National Environmental Policy Act of 1969
NPRM Notice of proposed rulemaking
OMB Office of Management and Budget
PIA Privacy Impact Assessment
PTA Privacy Threshold Assessment
UMRA Unfunded Mandates Reform Act of 1995
U.S.C. United States Code
III. Legal Basis
The Motor Carrier Act of 1935 (49 Stat. 543, sections 204, 207,
208) (Motor Carrier Act) authorized the ICC to
[[Page 22861]]
regulate motor carriers and to establish reasonable requirements with
respect to adequate and continuous service, including establishing
routes. The ICC prescribed the routing regulations currently contained
in part 356 (see e.g., 17 FR 6560-61 (Jul. 17, 1952)). The Interstate
Commerce Commission Termination Act (ICCTA) (Pub. L. 104-88, 109 Stat.
803) was enacted on December 29, 1995, and took effect on January 1,
1996. ICCTA abolished the ICC and repealed certain provisions of the
Motor Carrier Act, including most provisions authorizing the government
to impose limitations on the routes where a motor carrier has authority
to operate. ICCTA also transferred certain functions, formerly
performed by the ICC, to the Surface Transportation Board and DOT.
Certain motor carrier functions previously under the jurisdiction of
the ICC were transferred to the Secretary of Transportation, who
subsequently delegated those functions to the Federal Highway
Administration (FHWA), and eventually to FMCSA following the Motor
Carrier Safety Improvement Act of 1999 (Pub. L. 106-159) (MCSIA), which
established FMCSA as an agency within DOT. The transferred authorities
include the authority of the Secretary, under 49 U.S.C. 13301(a), to
promulgate regulations governing registration requirements for motor
carriers.
The specific authority authorizing the regulations in 49 CFR part
356, formerly codified in 49 U.S.C. 10922, was repealed in ICCTA and
replaced with 49 U.S.C. 13902. The result is that the regulations
contained in 49 CFR part 356 no longer accurately reflect the Agency's
current statutory authority for granting operating authority. Under 49
U.S.C. 13902, FMCSA is not authorized to include routing limitations
when granting operating authority to U.S. domiciled motor carriers;
therefore, the regulations in part 356 are unlawful and obsolete.
The Administrative Procedure Act (APA) specifically provides
exceptions to its notice and comment rulemaking procedures when an
agency finds there is good cause to dispense with them, and
incorporates the finding, and a brief statement of reasons therefore,
in the rules issued (5 U.S.C. 553(b)(B)). Good cause exists when an
Agency determines that notice and public comment procedures are
impractical, unnecessary, or contrary to the public interest. The
amendment made in this final rule removes an unenforceable part within
the FMCSRs, as it is no longer authorized by statute. Public comment
cannot grant FMCSA authority which Congress has removed. Retaining
regulations that are unlawful is plainly contrary to the public
interest. As the President has observed, ``[r]etaining and enforcing
facially unlawful regulations is clearly contrary to the public
interest. . . . Agencies thus have ample cause and the legal authority
to immediately repeal unlawful regulations.'' \1\ Furthermore, notice-
and-comment proceedings are unnecessary where repeal is based purely on
legal analysis. For these reasons, FMCSA finds good cause that notice
and public comment on this final rule are unnecessary.
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\1\ Presidential Memorandum, Directing the Repeal of Unlawful
Regulations (Apr. 9, 2025) available at https://www.whitehouse.gov/presidential-actions/2025/04/directing-the-repeal-of-unlawful-regulations/.
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The APA also allows agencies to make rules effective immediately
with good cause (5 U.S.C. 553(d)(3)), instead of requiring publication
30 days prior to the effective date. For the reason already stated,
FMCSA finds there is good cause for this rule to be effective
immediately.
IV. Discussion of Final Rule
As discussed in the Legal Authorities section above, Congress
repealed 49 U.S.C. 10922, including most provisions authorizing the
government to impose limitations on the routes where a motor carrier
has authority to operate, and replaced it with 49 U.S.C. 13902. The
result is that the regulations contained in 49 CFR part 356 no longer
accurately reflect the Agency's current statutory authority for
granting operating authority. Under 49 U.S.C. 13902, FMCSA is not
authorized to include routing limitations when granting operating
authority to U.S. domiciled motor carriers; therefore, the regulations
in part 356 are unlawful and obsolete. FMCSA is therefore removing
these regulations.
V. International Impacts
Motor carriers and drivers are subject to the laws and regulations
of the countries in which they operate, unless an international
agreement states otherwise. Drivers and carriers should be aware of the
regulatory differences between nations.
VI. Section-by-Section Analysis
Part 356 Motor Carrier Routing Regulations
In this final rule, FMCSA removes and reserves part 356.
VII. Regulatory Analyses
A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), E.O.
13563 (Improving Regulation and Regulatory Review), and DOT Regulatory
Policies and Procedures
FMCSA has considered the impact of this final rule under E.O. 12866
(58 FR 51735, Oct. 4, 1993), Regulatory Planning and Review, E.O. 13563
(76 FR 3821, Jan. 21, 2011), Improving Regulation and Regulatory
Review, and DOT Regulatory Policies and Procedures. The Office of
Information and Regulatory Affairs within the Office of Management and
Budget (OMB) determined that this final rulemaking is not a significant
regulatory action under section 3(f) of E.O. 12866, as supplemented by
E.O. 13563, and does not require an assessment of potential costs and
benefits under section 6(a)(3) of that order. Accordingly, OMB has not
reviewed it under that E.O.
This rule will remove obsolete language that is no longer relevant.
FMCSA does not expect that any regulated entities will change their
behavior as a result of this rule, and therefore the rule will not
result in any impacts to regulated entities other than removing
unnecessary language from the Code of Federal Regulations (CFR). It is
expected to result in cost savings by reducing the amount of time to
become familiar with the FMCSRs. FMCSA assumes any realized cost
savings to be de minimis. FMCSA does not have data to estimate the
reduction in costs.
B. E.O. 14192 (Unleashing Prosperity Through Deregulation)
E.O. 14192 (90 FR 9065, Jan. 31, 2025), Unleashing Prosperity
Through Deregulation, requires that for ``each new [E.O. 14192
regulatory action] issued, at least ten prior regulations be identified
for elimination.'' \2\
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\2\ Executive Office of the President. Executive Order 14192 of
January 31, 2025. Unleashing Prosperity Through Deregulation. 90 FR
9065-9067. Feb. 6, 2025.
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Implementation guidance for E.O. 14192 issued by OMB (Memorandum M-
25-20, March 26, 2025) defines two different types of E.O. 14192
actions: an E.O. 14192 deregulatory action, and an E.O. 14192
regulatory action.\3\
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\3\ Executive Office of the President. Office of Management and
Budget. Guidance Implementing Section 3 of Executive Order 14192,
Titled ``Unleashing Prosperity Through Deregulation.'' Memorandum M-
25-20. March 26, 2025.
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An E.O. 14192 deregulatory action is defined as ``an action that
has been finalized and has total costs less than zero.'' This final
rule is projected to have total costs less than zero as it
[[Page 22862]]
would reduce the time necessary to become familiar with the regulations
and streamline the CFR, and therefore is considered an E.O. 14192
deregulatory action. The cost savings of this rulemaking are not
quantifiable.
C. Congressional Review Act
This rule is not a major rule as defined under the Congressional
Review Act (5 U.S.C. 801-808).'' \4\
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\4\ A major rule means any rule that OMB finds has resulted in
or is likely to result in (a) an annual effect on the economy of
$100 million or more; (b) a major increase in costs or prices for
consumers, individual industries, geographic regions, Federal,
State, or local government agencies; or (c) significant adverse
effects on competition, employment, investment, productivity,
innovation, or on the ability of United States-based enterprises to
compete with foreign-based enterprises in domestic and export
markets (5 U.S.C. 804(2)).
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D. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended
by the Small Business Regulatory Enforcement Fairness Act of 1996,\5\
requires Federal agencies to consider the effects of the regulatory
action on small business and other small entities and to minimize any
significant economic impact. The term small entities comprises small
businesses and not-for-profit organizations that are independently
owned and operated and are not dominant in their fields, and
governmental jurisdictions with populations of less than 50,000 (5
U.S.C. 601(6)). Accordingly, DOT policy requires an analysis of the
impact of all regulations on small entities, and mandates that agencies
strive to lessen any adverse effects on these businesses.
No regulatory flexibility analysis is required when an Agency
publishes a final rule that is not required to be preceded by notice
and comment (5 U.S.C. 601(2) and 603(a)). As discussed above in the
Legal Authorities section, this final rule is exempt from notice and
comment requirements. Additionally, a regulatory flexibility analysis
is not required if the head of an Agency or an appropriate designee
certifies that the rule will not have a significant economic impact on
a substantial number of small entities. FMCSA has concluded and hereby
certifies that this rule will not have a significant economic impact on
a substantial number of small entities; therefore, an analysis is not
included. This rulemaking removes obsolete regulatory text that is no
longer impacting regulated entities and will not impose costs or
benefits. It is expected to result in some cost savings by reducing the
amount of time necessary to become familiar with the FMCSRs. FMCSA
considers any realized cost savings to be de minimis. Consequently, I
certify that this action will not have a significant economic impact on
a substantial number of small entities.
E. Assistance for Small Entities
In accordance with section 213(a) of the Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857),
FMCSA wants to assist small entities in understanding this rule so they
can better evaluate its effects on themselves and participate in the
rulemaking initiative. If the rule will affect your small business,
organization, or governmental jurisdiction and you have questions
concerning its provisions or options for compliance, please consult the
person listed under FOR FURTHER INFORMATION CONTACT.
Small businesses may send comments on the actions of Federal
employees who enforce or otherwise determine compliance with Federal
regulations to the Small Business Administration's Small Business and
Agriculture Regulatory Enforcement Ombudsman (Office of the National
Ombudsman, see https://www.sba.gov/about-sba/oversight-advocacy/office-national-ombudsman) and the Regional Small Business Regulatory Fairness
Boards. The Ombudsman evaluates these actions annually and rates each
agency's responsiveness to small business. If you wish to comment on
actions by employees of FMCSA, call 1-888-REG-FAIR (1-888-734-3247).
DOT has a policy regarding the rights of small entities to regulatory
enforcement fairness and an explicit policy against retaliation for
exercising these rights.
F. Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
(UMRA) requires Federal agencies to assess the effects of their
discretionary regulatory actions. The Act addresses actions that may
result in the expenditure by a State, local, or Tribal government, in
the aggregate, or by the private sector of $206 million (which is the
value equivalent of $100 million in 1995, adjusted for inflation to
2024 levels) or more in any 1 year. Because this rule will not result
in such an expenditure, a written statement is not required.
G. Paperwork Reduction Act
This final rule contains no new information collection requirements
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).
H. E.O. 13132 (Federalism)
A rule has federalism implications under section 1(a) of E.O. 13132
if it has ``substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.''
FMCSA has determined that this rule will not have substantial
direct costs on or for States, nor will it limit the policymaking
discretion of States. Nothing in this document preempts any State law
or regulation. Therefore, this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Impact
Statement.
I. Privacy
The Consolidated Appropriations Act, 2005,\6\ requires the Agency
to assess the privacy impact of a regulation that will affect the
privacy of individuals. This final rule will not require the collection
of personally identifiable information (PII).
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\6\ Public Law 108-447, 118 Stat. 2809, 3268, note following 5
U.S.C. 552a (Dec. 4, 2014).
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The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies
and any non-Federal agency that receives records contained in a system
of records from a Federal agency for use in a matching program.
The E-Government Act of 2002,\7\ requires Federal agencies to
conduct a PIA for new or substantially changed technology that
collects, maintains, or disseminates information in an identifiable
form. No new or substantially changed technology would collect,
maintain, or disseminate information as a result of this rule.
Accordingly, FMCSA has not conducted a PIA.
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\7\ Public Law 107-347, sec. 208, 116 Stat. 2899, 2921 (Dec. 17,
2002).
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In addition, the Agency will complete a Privacy Threshold
Assessment (PTA) to evaluate the risks and effects the rulemaking might
have on collecting, storing, and sharing personally identifiable
information. The PTA will be submitted to FMCSA's Privacy Officer for
review and preliminary adjudication and to DOT's Privacy Officer for
review and final adjudication.
J. E.O. 13175 (Indian Tribal Governments)
This rule does not have Tribal implications under E.O. 13175,
Consultation and Coordination with Indian Tribal Governments, because
it does not have a substantial direct effect on one or more Indian
Tribes, on the
[[Page 22863]]
relationship between the Federal Government and Indian Tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian Tribes.
K. National Environmental Policy Act of 1969
FMCSA analyzed this rule pursuant to the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) (NEPA). The Agency believes
this rule will not have a reasonably foreseeable significant effect on
the quality of the human environment.
This conclusion stems from the fact that the existing regulation is
outdated and beyond the scope of FMCSA's statutory authority, rendering
it practically unenforceable. In effect, this action modernizes the CFR
to accurately reflect current and long-standing practices.
Consequently, the rescission of this regulation will retain the
existing environmental baseline, resulting in no new environmental
impacts.
Purpose and Need for Action
The purpose of this final rule is to remove an outdated regulation,
49 CFR part 356, as it no longer accurately reflects the Agency's
current statutory authority. Under 49 U.S.C. 13902, FMCSA is not
authorized to include routing limitations when granting operating
authority to U.S. domiciled motor carriers; therefore, the regulations
in part 356 are obsolete.
Alternatives
No Action Alternative/Current Rule
The current regulation prescribes routing limitations that are
beyond the scope of FMCSA's statutory authority. Consequently, the
current regulation has not been enforced. This rule would therefore
retain the existing environmental baseline to the no action
alternative.
Final Action/Preferred Alternative
This final rule will remove the obsolete regulation thereby
streamlining the CFR and eliminating a source of possible confusion for
stakeholders.
Affected Environment
There is no affected environment or environmental consequences as
the current regulation is outdated and cannot be enforced. This final
rule will retain the same environmental baseline.
Environmental Consequences
There are no environmental consequences because the current
regulation is outdated and cannot be enforced.
List of Preparers and Reviewers
The following persons participated in the preparation of this EA:
Brian Dahlin, Chief, Regulatory Evaluation Division
Education: M.A. Economics (Duke University), B.S. Economics
(University of Minnesota).
Experience: Over 20 years as a labor and transportation economist.
Sean Reid, Economist, Regulatory Evaluation Division
Education: M.A. Economics (Georgia State University), B.B.A.
Economics (Georgia Southern University).
Experience: 5 years as an economist in Federal government.
Kathryn Sinniger, Chief Counsel, Division of Regulations and
Legislation
Education: Juris Doctorate (William & Mary School of Law), B.A.
Politics (Catholic University of America).
Experience: Over 25 years as regulatory attorney in Federal
government.
List of Agencies and Persons Consulted
In the course of completing the NEPA compliance process for this
rulemaking, FMCSA consulted with technical experts within the Agency
familiar with the potential environmental consequences that could
result from implementing the Final Action.
L. Rulemaking Summary
In accordance with 5 U.S.C. 553(b)(4), a summary of this rule may
be found at regulations.gov, under the docket number.
List of Subjects in 49 CFR Part 356
Administrative practice and procedure, Freight forwarders, Highways
and roads, Motor carriers.
PART 356--[REMOVED AND RESERVED]
0
Accordingly, under the authority in 49 U.S.C. 13902 and as discussed in
the preamble, FMCSA removes and reserves 49 CFR part 356.
Issued under authority delegated in 49 CFR 1.87.
Sue Lawless,
Assistant Administrator.
[FR Doc. 2025-09709 Filed 5-27-25; 4:15 pm]
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