Motor Carrier Regulatory Relief and Safety Demonstration Project

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

[FHWA Docket No. Motor Carrier-96-40]

Motor Carrier Regulatory Relief and Safety Demonstration Project

AGENCY: Federal Highway Administration (FHWA), DOT.

ACTION: Notice of final determination.

-----------------------------------------------------------------------

SUMMARY: The FHWA announces its final determination establishing the

Motor Carrier Regulatory Relief and Safety Demonstration Project

(``Project''). The Project will allow qualified motor carriers

operating light to medium weight commercial motor vehicles (CMVs) in

interstate commerce to qualify for exemption from certain Federal Motor

Carrier Safety Regulations (FMCSRs) for a three year period.

EFFECTIVE DATE: June 10, 1997.

FOR FURTHER INFORMATION CONTACT: Mr. Robert F. Schultz, Jr., Office of

Motor Carrier Research and Standards, (202) 366-4009, or Ms. Grace

Reidy, Office of the Chief Counsel, (202) 366-0834, Federal Highway

Administration, DOT, 400 Seventh Street, SW., Washington, WASHINGTON,

DC 20590. Office hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday

through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: On November 28, 1995, the President signed

the National Highway System Designation Act of 1995 [Pub. L. 104-59,

109 Stat. 568 (NHS Act)]. Section 344 of the NHS Act, now codified at

49 U.S.C. 31136, mandates that the FHWA implement a pilot program for

motor carriers operating CMVs with a gross vehicle weight rating (GVWR)

between 10,001 and 26,000 pounds, inclusive, in interstate commerce, to

qualify for exemption from certain of the FMCSRs (49 CFR Part 350 et

seq.). Notice of the Project (notice) was published in the Federal

Register on August 28, 1996 (61 FR 44385). The comment period closed on

September 27, 1996. In response to docket comments which raised the

issue of the relation between this Project and the existing motor

carrier regulations of the States, a supplemental notice was published

on October 29, 1996 (61 FR 55835), seeking comment on the appropriate

use of Federal preemption to resolve any conflicts between the Federal

and State provisions. The comment period for that notice expired

November 29, 1996.

Comments

The FHWA received 27 comments in response to the Notice. The

commenters included 9 motor carriers, 12 trade associations, 3 safety

consultants or safety interest groups, 2 States and a trade union. The

vast majority of the comments endorsed the ``New Era'' which the FHWA

outlined in the Notice. In particular, the use of performance-based

standards received strong support.

However, many commenters believed that the design of the proposed

Project would discourage participation in the Project by motor

carriers. The explanation most frequently offered for this conclusion

was that the ``paperwork'' requirements of the Project, both at the

time of application and during the Project, were too burdensome, and

outweighed the regulatory relief which the Project motor carrier would

enjoy. The Project as proposed required each applicant motor carrier to

provide the FHWA, at the time of application, with a signed

certification of certain facts, a Safety Control Plan, a roster of

eligible drivers, and a calculation of its accident rate over the

preceding three years. The motor carrier would also have to verify that

the driving record of each driver whom it proposed for the Project did

not contain any convictions of certain prohibited offenses. In

addition, the motor carrier would have to have vehicle maintenance

records on hand for the three years preceding the Project. During the

Project, the FHWA proposal required a Project participant to agree to

provide the FHWA with certain information concerning any accidents in

which the motor carrier was involved, and, in that event, a re-

calculation of the motor carrier's accident rate for the preceding

three years. The FHWA also proposed that Project motor carriers provide

the names of new drivers which the motor carrier wished included in the

Project, as well as names of drivers who drop out of the Project or who

cease to exclusively operate motor vehicles with

[[Page 31656]]

a GVWR between 10,001 and 26,000 pounds, inclusive. Vehicle maintenance

records were also to be maintained and submitted during the Project. In

some cases, such as supplying accident information, the reporting was

to be within 10 days; in other cases, a quarterly basis was proposed.

The commenters most strenuously objected to the totality of these

``paperwork'' requirements. The driver information requirements were

singled out by a significant segment of the commenters. They believed

that the high turnover rate of drivers which many motor carriers

experience would make the driver roster requirement overly burdensome.

It was suggested that detailed driver information should be provided

only with regard to those drivers who are convicted of certain moving

violations, or who are involved in an accident.

Continuing exemption of motor carriers after the three year period

of this Project also drew comment. Commenters believed that the Project

would be more attractive if a commitment was made to extend the Project

beyond three years. They also believed that participants should be able

to expect that the safety management systems which they put in place

for the Project would not become obsolete when the Project terminates.

Some of the Project exemptions were given little value by the

commenters. For instance, it was suggested that most motor carriers

would continue to require a pre-employment road test for new hires even

if they were exempt from the rule requiring one. It was also stated

that insurance carriers would continue to require motor carriers to

obtain an application for employment for each new employee, even if the

Federal requirement is waived. Some commenters also felt that the

creation of an exemption from the regulation requiring newly-hired

drivers to furnish a list of motor vehicle violations was offset by the

Project requirement that Project motor carriers examine the driving

history of their Project drivers to verify that each driver is free of

any disqualifying violations.

The Project as proposed created various exemptions from the record

of duty status provisions, but did not remove the actual hours-of-

service limitations. The failure to take this final step drew

criticism, particularly from those who believe that the spirit, if not

the letter, of the NHS Act mandated such relief. On the other hand,

criticism also came from those who believed that neither the records of

duty status, nor the hours-of-service limitations, should be lifted,

because the FHWA would be unable to detect, or prosecute, violations of

the hours-of-service rules.

Many commenters believed that relief from another provision of the

FMCSRs should have been proposed: The requirement that drivers undergo

a periodic examination by a licensed medical practitioner. The

commenters appeared to be saying that because of the differences

between the typical day-to-day activity of drivers of Project vehicles,

and drivers of vehicles with a GVWR in excess of 26,000 pounds, medical

examination was less critical for the former. These commenters focused

upon the fact that drivers operating CMVs of the class eligible for

this Project normally engage in short-haul operations. Such operations,

the commenters contend, are distinguished from long-haul operations by

the fact that (1) The short-haul driver is on duty during more normal

work hours, and thus is less inclined to experience the fatigue of

evening or graveyard shifts, and, (2) the short-haul driver experiences

more frequent breaks, spends less time actually behind the wheel, and

drives fewer miles on an annual basis. These commenters felt that it

was the intent of Congress that this Project provide an opportunity for

relief from the medical examination requirement.

The Project as proposed also outlined certain eligibility criteria.

Some commenters believed that the requirement that the police-reported

accident rate of Project motor carriers not exceed 1.6 per million

vehicle miles traveled (for the most recent 36 month period) would

unfairly disqualify some motor carriers. The inequity would occur, they

averred, because the proposal does not take accident culpability into

account, and thus an accident in which a motor carrier's driver is

totally free of negligence could nonetheless result in the removal of

that motor carrier from the Project. Other commenters were concerned

that a motor carrier that had not accumulated 1 million vehicle miles

traveled would not be eligible, or would become ineligible when a

single accident occurred.

The requirement that Project drivers not operate CMVs other than

those which have a GVWR between 10,001 and 26,000 pounds, drew

criticism, primarily from the utility industry, which is characterized

by a high percentage of drivers who ``cross over'' to operate CMVs in

excess of 26,000 pounds GVWR. The FHWA also proposed that Project

drivers would not be eligible if they had been convicted in the past

three years of certain violations of law. Some commenters expressed the

belief that all moving violations should be taken into account in

determining the eligibility of drivers.

The FHWA also proposed that Project motor carriers be required to

maintain and submit CMV maintenance records. Commenters expressed

concern that this requirement was particularly burdensome and

eliminated the benefit afforded by the Project exemptions addressing

vehicle maintenance records.

FHWA Response

After careful review, the FHWA has decided to make two changes in

the Project to alleviate the recordkeeping requirements proposed in the

original notice. The first is the elimination of the requirement that

motor carriers maintain and submit vehicle maintenance records. The

benefit to be derived from this information is not sufficiently crucial

to the monitoring, or the evaluation, of the Project to require its

inclusion. The second change is to alter the frequency of the periodic

calculation of the accident rate, and its submission to the FHWA. The

calculation of accidents per million vehicle miles traveled will now be

required on a semi-annual basis, rather than quarterly as proposed. The

calculation will also, as proposed, be required in the event of an

accident involving the motor carrier.

The FHWA is aware that this Project imposes special recordkeeping

and reporting requirements upon participating motor carriers. The FHWA

believes that the remaining paperwork requirements of the Project are

absolutely necessary to conduct this Project and ensure the safety of

the public on the highways. For instance, in the absence of a roster of

the drivers participating in the Project, the Agency would be unable to

assist enforcement personnel at roadside inspection locations.

Confronted with a driver who has no Record of Duty Status, as required

by 49 CFR 395.8(k), but who professes to be a Project driver and thus

exempt from that section, safety inspectors or other enforcement

officials would be unable to verify the exempt status of that driver.

The Agency also believes that most of the remaining records which are

required by this Project are routinely maintained by most motor

carriers in the course of their day-to-day operations.

The FHWA is also relaxing the proposed exclusion from the Project

of CMV drivers who ``crossover'' and operate CMVs with a GVWR greater

than 26,000 pounds. The FHWA believes that such activity can be

permitted, so long as its occurrence for any particular driver is

frequent, and

[[Page 31657]]

measurable; that is, the FHWA will permit a Project motor carrier to

direct Project drivers to operate vehicles outside of the Project

weight class if: (a) the driver operates Project vehicles at least 25%

of the time, and (b) the motor carrier can provide the FHWA with the

total number of vehicle miles driven outside the Project, and the total

number of miles driven within the Project, for each such driver. The

FHWA can take such information into account in conducting its

evaluation of the Project, and thus preserve the integrity of that

process. Motor carriers and their drivers are advised to be alert to

the fact that when activity is conducted outside the Project, it is

subject to all provisions of the FMCSRs. For instance, a driver who

operates a CMV over 26,000 pounds GVWR must, in accordance with 49 CFR

395.8, be able to account for his or her hours of service for an

earlier period of up to 8 days. A ``crossover'' Project driver will

immediately be required to account for his/her hours of service over

the preceding 8 days, even though the driver during this earlier period

was exempt from the requirements of 395.8 by virtue of being engaged in

Project activity.

The FHWA is cognizant of the economic realities which underlie the

suggestion that it should assure motor carriers that the exemptions of

this Project will continue beyond the three-year life of this pilot. It

is possible that the exemptions will continue in some form; however,

the case for permanent regulatory change must be made by appropriate

supporting data. The Agency realizes that strong participation in this

pilot may generate data which show the way to meaningful, performance-

based improvements of the current regulatory scheme. The agency cannot

now predict what the Project data will show, or what the overall

regulatory landscape will look like down the road. After the first two

years of the Project, the FHWA intends to analyze the Project data.

Permanent rules resembling the guidelines of this Project may be

indicated at that time.

The provisions of the FMCSRs governing maximum driving time provide

the best available standard for assuring that fatigued drivers are kept

off the public highways. In order for the FHWA to exempt Project motor

carriers and their drivers from these provisions, the agency must

ensure that safety management controls are available which will achieve

a level of operational safety equal to or greater than that resulting

from compliance with these provisions. Despite the invitation to

comment in the original Notice, no commenter has proposed that

alternate safety controls exist. On September 7, 1995, the FHWA sought

public input (60 FR 46682) with regard to advanced driver and vehicle

technologies, but none addressing maximum driving time were produced.

However, the FHWA also believes that the elimination of the

requirement for records of duty status (log books), time cards or

interactive on-board recording devices for qualified Project motor

carriers, does not place the motoring public in danger. Safety

investigators will rely more heavily upon other evidence, such as, fuel

and toll receipts, bills of lading, and trip reports, to determine if

on-duty or driving time violations are present. Such evidence is

currently employed to corroborate hours-of-service violations,

particularly when logbooks appear to be falsified.

The FHWA does not believe that the requirement for a periodic

medical examination should be susceptible to relief under the Project.

It may be true that the typical operator of a CMV of the weight class

eligible for this Project engages in short-haul operations, i.e. works

normal daytime hours, experiences frequent breaks from driving, spends

less time behind the wheel, and drives fewer total miles than many

long-haul operators. But accidents involving this class of drivers

occur more frequently than accidents involving long-haul drivers. The

biennial medical examination provides a minimal check of the physical

condition of the individuals operating these vehicles, which, though

often referred to as ``light- to medium-sized trucks,'' are nonetheless

capable of causing serious personal injury and property damage. For

this reason, and because the FHWA is reviewing medical standards for

all CMV operators outside of this Project, the agency believes that

relief from this provision is not appropriate under this Project.

The FHWA believes that participation in this Project should be

limited to those motor carriers which have exemplary safety histories.

The Agency further believes that the best measure of a exemplary

history would be an accident rate equal to or better than that of the

top 25% of all motor carriers. The FHWA estimates this accident rate to

be 1.6, or fewer, crashes per 1 million vehicle miles of travel, based

on analysis of the nationwide police-reported crash experience of the

types of vehicles that are expected to participate in this Project, and

the FHWA's estimates of the miles traveled annually by such vehicles.

This crash rate is derived from the most recent three years of

information for straight trucks included in the General Estimates

System (GES) of the National Highway Traffic Safety Administration, and

from mileage statistics found in the FHWA's ``1994 Highway

Statistics,'' Publication No. FHWA-PL-95-042. The FHWA employed data on

straight trucks from the GES to ensure that all types of police-

reported crashes are taken into consideration. The FHWA believes that

in order to definitively pinpoint those motor carriers with exemplary

safety histories, all types of crashes, not just those which may be

defined as preventable or recordable, must be taken into account. While

some commenters were opposed to the rate and considered it an obstacle

to participation in the Project, no commenter submitted data that would

support a different rate.

The FHWA believes that many of the motor carriers which will

volunteer for the Project will have operations in urban areas and may

not accumulate vehicle miles of travel in excess of 1 million. The

eligibility criterion for participation in the Project concerning the

police-reported accident rate has been amended to clarify that motor

carriers with less than a million miles over the past 36 months are

eligible if they have less than 2 police-reported accidents in that

period. The same standard applies to those motor carriers with which

have been in business less than 36 months. When combined with the

exclusion of those motor carriers with an ``Unsatisfactory'' Safety

Rating, participation in the Project is effectively limited to motor

carriers with exemplary safety histories.

Preemption

As mentioned earlier, in response to docket comments raising the

issue of the relation between the requirements of this Project and the

existing motor carrier regulations of the States, a supplemental notice

was published on October 29, 1996 (61 FR 55835) seeking comment on the

appropriate use of Federal preemption in this Project. Eight Comments

to the supplemental notice were received. Five comments were from trade

groups, one from a motor carrier, one from a union, and one from a

safety advocacy group. Four were in favor of the exercise of Federal

preemption, two were opposed to it, and two offered no opinion. No

comments were received from States.

After review of the comments, the FHWA remains convinced that it

has the authority to preempt the provisions of State laws which

conflict with this Project. However, the FHWA also

[[Page 31658]]

remains convinced that it will be unnecessary to invoke this authority.

For some time, through various Federal initiatives, foremost of which

is the program of grants to States known as the Motor Carrier Safety

Assistance Program (MCSAP), the States and the Federal government have

been working together to achieve a high degree of uniformity between

State and Federal enforcement of motor carrier regulatory compliance.

At the same time, the high degree of communication between these

parties has resulted in greater familiarity with the operations of one

another. Thus a new Federal program, though it may necessitate

corresponding changes in State activity, is more readily understood by

State officials. The FHWA also believes that the Federal-State

partnership is capable of absorbing the changes which this Project

imposes upon the enforcement community.

Changes From Notice of August 28, 1996 (61 FR 44385)

The following are the significant changes to the proposal for the

Project outlined in the notice and request for comments dated August

28, 1996:

1. Motor carriers participating in the Project will not be required

to collect, or submit, vehicle maintenance records, as a condition of

participation in the project.

2. Calculation and submission of the accident rate by each

participating motor carrier will be required on a semi-annual basis, as

opposed to quarterly. The requirement to submit a re-calculation of the

revised rate following each accident has been retained.

3. The eligibility criterion for participation in the Project

concerning the police-reported accident rate has been amended to

clarify that motor carriers with less than a million miles over the

past 36 months are eligible if they have less than 2 police-reported

accidents in that period. The same standard applies to those motor

carriers which have been in business less than 36 months.

4. An occasional use of a Project driver ``crossing over'' to

operate CMVs with a GVWR in excess of 26,000 pounds is permissible;

however, only his or her activities while operating CMVs having a GVWR

between 10,001 and 26,000 pounds, inclusive, will be considered as part

of the project data.

For the reasons set forth in the preamble, the FHWA hereby presents

the following as the final determination of the design of the Motor

Carrier Regulatory Relief and Safety Demonstration Project. The FHWA

will grant to eligible motor carriers, for the term of the Project

only, exemption from those requirements of the FMCSRs outlined under

the caption ``Project Exemptions.'' The exemptions will only apply to

the eligible drivers identified by the motor carrier. In order to

participate in the Project, a motor carrier will have to meet the

requirements outlined under the caption ``Criteria for Admission To The

Project,'' and also must submit the appropriate documentation outlined

under the caption ``Applying For The Project.'' Once admitted to the

Project, each participating motor carrier agrees to honor the reporting

and submission requirements outlined under the caption ``The

Agreement.''

The FHWA will evaluate the Project data throughout the Project,

with particular focus upon FHWA's regulatory reinvention and zero-base

initiatives. In addition, at the conclusion of the Project, the FHWA,

in accordance with the NHS Act, will use this data to conduct a zero-

base review of the need for, and the costs and benefits of, all of the

FMCSRs.

Project Exemptions

Qualified motor carriers will be exempt from certain requirements

of the FMCSRs while participating in the Project. All motor carriers

participating in the Project will be exempt from the same regulations;

motor carriers may not pick and choose the regulations from which they

wish to be exempt.

The FHWA, while granting these exemptions to qualified, exemplary

motor carriers, has established certain mechanisms to assist the agency

in monitoring the level of safety of these motor carriers. These

mechanisms are more fully explained later in this notice. Briefly, they

are:

(1) Each project motor carrier must establish, and submit to the

agency, a Safety Control Plan which details the steps it intends to

take during the Project to ensure that it maintains or improves the

level of operating safety which it experienced prior to the Project,

(2) Project motor carriers must advise the FHWA within ten business

days of the occurrence of any police-reported accidents involving

Project drivers. At the same time the Project motor carrier must submit

a re-calculation of its ratio of accidents to vehicle miles, and if it

is greater than the Project standard (1.6), the motor carrier will be

subject to removal from the Project, and

(3) the FHWA will monitor the safety performance of Project motor

carriers, including random checks of various state and Federal

databases.

Project motor carriers, and their eligible drivers, will, with

regard to the operation in interstate commerce of CMVs with a gross

vehicle weight rating (GVWR) between 10,001 and 26,000 pounds,

inclusive, be exempt from the following requirements of the FMCSRs:

Driver Qualifications

Newly-hired drivers are not required to prepare, or furnish to the

employing motor carrier, a list of violations of motor vehicle laws, or

a certificate in lieu thereof, in accordance with 49 CFR 391.11(b)(8).

(However, motor carriers are still required to obtain an official state

driving record as required by 49 CFR 391.23). Drivers are also not

required to successfully complete a Driver's Road Test, or furnish an

Application For Employment, in accordance with 49 CFR 391.11(b)(10) and

391.11(b)(11). In addition, motor carriers do not have to maintain

complete Driver Qualification Files on each driver in accordance with

49 CFR 391.51.

Driver Hours-Of-Service

Project drivers are not required to comply with record of duty

status regulations, whether this entails maintenance of a logbook in

accordance with 49 CFR 395.8, use of a timecard in accordance with 49

CFR 395.1(e), or the use of an interactive automatic on-board recording

device in accordance with 49 CFR 395.15. However, Project motor

carriers and drivers must observe the provisions governing maximum

driving time, and the use of ill or fatigued operators in accordance

with 49 CFR 395.3 and 392.3. Additionally, project motor carriers and

their drivers do not forfeit any other exemptions available under FHWA

regulations.

CMV Inspections

While participating in the Project, motor carriers are exempt from

those requirements pertaining to CMV inspection records, and their

retention in accordance with 49 CFR 396.3 (b) and (c). Exemption is

also granted from the regulations pertaining to driver vehicle

inspection reports and the driver vehicle inspection, 49 CFR 396.11 and

396.13 (b) and (c). In addition, driveaway-towaway inspections are not

required of Project motor carriers or their drivers, nor are periodic

inspections and periodic inspection reports, 49 CFR 396.15, 396.17 and

396.21. However, motor carriers are not relieved of their

responsibility to inspect, repair and maintain their motor vehicles in

accordance with 49 CFR 396.3(a). Furthermore, the Project driver and

CMVs are subject to safety inspection at roadside locations.

[[Page 31659]]

Accident Information

Project motor carriers are exempt from the requirement that they

maintain an accident register in accordance with 49 CFR 390.15 (b)(1)

and (b)(2).

Criteria for Admission to the Project

Each motor carrier applying for admission to the Project must

satisfy the following criteria:

Criterion 1: The motor carrier operates in interstate commerce.

Criterion 2: The motor carrier operates CMVs having a GVWR between

10,001 and 26,000 pounds, inclusive. However, CMVs designed to

transport more than 15 passengers (including the driver), or used in

transporting hazardous materials in placardable quantities, as defined

in regulations issued by the Secretary of Transportation under the

Hazardous Materials Transportation Act (49 U.S.C. 5101, et seq.), are

not eligible to participate in this Project.

Criterion 3: The motor carrier does not currently have a Safety

Fitness Rating of ``Unsatisfactory'' issued by the FHWA. Motor carriers

who have not received a safety rating issued by the FHWA are eligible

for this Project.

Criterion 4: For CMVs eligible for this Project, the motor carrier

has an accident rate equal to or less than 1.6 police-reported

accidents per million vehicle miles traveled, averaged over the most

recent 36 months. For example, a motor carrier which has experienced 4

police-reported accidents, and 3 million vehicle miles traveled, by

eligible CMVs, over the most recent 36 months, would be eligible for

the Project, based upon the following calculation:

4 divided by 3 equals 1.33, which is less than 1.6. This

calculation is to be based solely on the accidents and mileage of those

CMVs which have a GVWR between 10,001 and 26,000 pounds, inclusive. In

addition, the term ``accident'' referenced in 390.5 is not applicable

to this calculation; a ``police-reported accident'' is any accident

which results in the filing of an official report by a Federal, State,

local or tribal law enforcement agency. Motor carriers with less than

one million vehicle miles traveled in the most recent 36 months, are

eligible for the Project if they have not more than 1 police-reported

accidents in that period of time. Two or more police-reported accidents

involving this type of motor carrier will result in ineligibility for

this Project.

Criterion 5: The motor carrier is active on a year-round basis.

``Seasonal'' motor carriers are not eligible for this Project.

Criterion 6: The drivers submitted by the motor carrier for

participation in the Project have not been convicted, in the past three

years, of:

1. An offense that ``directly arose out of'' a fatal traffic

accident;

2. Driving a CMV while under the influence of alcohol, including:

(a) Driving a CMV while the person's alcohol concentration is 0.04

percent or more,

(b) Driving under the influence of alcohol, as prescribed by State

law, and

(c) Refusal to undergo testing for alcohol or controlled substances

as required by any State or jurisdiction,

3. Driving a CMV while under the influence of a controlled

substance;

4. Leaving the scene of an accident involving a CMV; or

5. A felony involving the use of a CMV, including the use of a CMV

in the commission of a felony involving manufacturing, distributing, or

dispensing a controlled substance.

Criterion 7: The motor carrier has a written Safety Control Plan

for this Project. This plan must, in some form, clearly detail the

measures which the motor carrier will undertake to ensure that the

current level of safety is not compromised by the operation of the

Project exemptions. This document may entail no more than submitting

pertinent portions of a company's current Operating Plan or similar

document. An outline for the creation of this document is also

available from the FHWA upon request. In its application, the motor

carrier will agree to abide by its Safety Control Plan.

Applying for the Project

In order to be considered for the Project, motor carriers must,

within 180 days of the publication of this Notice of Final

Determination, submit, in writing, to the FHWA, the following:

(1) A completed Motor Carrier Identification Report (MCS-150),

which will provide updated information about the overall operation of

the motor carrier,

(2) The following certification, duly executed by the Chief

Operating Officer of the motor carrier:

I certify that (Name of motor carrier) operates CMVs having a GVWR

between 10,001 and 26,000 pounds, inclusive, in interstate commerce, on

a year-round basis, and is not rated ``Unsatisfactory'' by the FHWA. I

certify that the company has approved the attached Safety Control Plan

and will employ these controls throughout the Project. I certify that

the motor carrier EITHER:

has an accident rate equal to or less than 1.6 police-reported

accidents per million vehicle miles traveled (VMT), averaged over the

most recent 36 months, based upon ____________ police-report accidents

and ____________ vehicle miles traveled, by CMVs having a GVWR between

10,001 and 26,000 pounds, inclusive, OR has ________________ actual VMT

(less than one million) over the most recent 36 months and has

experienced ____________ (less than 2) police-reported accidents

involving subject vehicles over that period of time.

I hereby submit a roster of ________ company drivers for

participation in the Project. The roster includes driver names, license

numbers and State of licensure, and dates of employment. I certify that

each of these drivers is eligible to participate in the Project, that

each operates CMVs having a GVWR between 10,001 and 26,000 pounds,

inclusive, and that I have independently verified that the driving

record of each does not include any convictions within the past 3 years

of any of the disqualifying offenses enumerated in the Project

criteria. I have read and agree to be bound by the requirements for

notification and submission of information to the FHWA outlined in the

section entitled ``The Agreement'' in the notice of final determination

of this project.

----------------------------------------------------------------------

Signature

----------------------------------------------------------------------

Name

----------------------------------------------------------------------

Title

----------------------------------------------------------------------

Name of Motor Carrier

(3) A Safety Control Plan.

(4) A Driver Roster consisting of driver names, driver license

numbers and state of licensure, and dates of employment. This will

enable the FHWA to advise enforcement officers of the identity of

Project drivers and to monitor their driving performance.

Note: The motor carrier applicant must submit the names of ALL

eligible drivers for participation in the Project.

However, the FHWA is mindful of the fact that some motor carriers

with larger operations may desire to volunteer a particular terminal,

or a particular geographic region, or State, for this Project. The FHWA

anticipates no difficulty in affording motor carriers flexibility with

this form of selection for participation; however, the FHWA will

carefully scrutinize any suggested ``subunits'' to be certain that they

advance the congressional mandate, particularly the requirement that

this Project examine a broad cross-section of the motor carrier

industry. All of the items above should be assembled and submitted to:

Department of Transportation, Federal Highway

[[Page 31660]]

Administration, 10-26 Safety Demonstration Project, 400 Seventh Street

S.W., Washington, Washington, D.C. 20590-0001.

The Agreement

If the FHWA finds that a motor carrier applicant is qualified for

admission to the Project, it will by letter admit the motor carrier to

the Project. A copy of this letter should be made available by the

motor carrier to each Project driver to serve as the credential of his/

her participation in the Project.

By agreement, Project motor carriers promise to do the following at

the times indicated:

(1) Within 10 business days following the occurrence of a police-

reported accident involving a Project driver, the motor carrier must

submit details of that accident sufficient to enable the FHWA to locate

the corresponding police accident report. Normally it will be

sufficient to provide the date and physical location of the accident,

the vehicle number, and the driver name and license number. If the FHWA

needs nonconfidential insurance-related information, it will so advise

the motor carrier.

Note: This information must be accompanied by a revised

calculation of police-reported accidents per million vehicle miles

traveled, indicating the figures employed to make the calculation.

The motor carrier will be subject to removal from the Project (see

below) should this rate exceed 1.6 police-reported accidents per

million VMT for the most recent 36 month period (or, in the case of

Project motor carriers with less than a million vehicle miles traveled

in the most recent 36 months, if this is the second or greater accident

in the most recent 36 months).

(2) Immediately following the addition of a new driver eligible for

the Project, the motor carrier must submit to the FHWA an update to the

roster of Project drivers, including the name, driver's license number,

and date of employment of all drivers.

(3) Immediately, when a Project driver ceases to be employed by the

motor carrier, the motor carrier must submit the driver's name and

license number to the FHWA.

(4) Within 10 business days, the motor carrier must notify the FHWA

when the motor carrier is sold, goes out of business, changes its name,

ceases to operate, ceases to operate in interstate commerce, ceases to

operate CMVs with GVWRs between 10,001 and 26,000 pounds, or ceases to

conduct operations on a year-round basis.

(5) Within 10 business days, the motor carrier must notify the FHWA

when the motor carrier chooses to amend its Safety Control Plan, or is

unable, for any reason, to carry out the terms of the Safety Control

Plan which it developed for this Project.

(6) Semi-annually, Project motor carriers must provide the FHWA

with a current calculation of police-reported accidents per million

vehicle miles traveled for the preceding 36 months, and indicate the

figures employed to arrive at the calculation of this rate. The first

calculation must be submitted upon the sixth-month anniversary of the

date of admission to the Project. Subsequent calculations will be due

in intervals of six months thereafter.

Removal From the Project

The FHWA does not anticipate that any motor carrier which has

satisfied the stringent admission criteria of this Project will

experience any deterioration of its safety record. However, should this

occur, the FHWA will, consistent with its duty under the NHS Act, take

all steps necessary to protect the public interest, as well as the

integrity of the Project. Participation in this Project is voluntary,

and the FHWA retains the right to revoke a motor carrier's

participation in the Project if its safety performance poses a threat

to highway safety. Participating motor carriers are not exempt from

roadside inspections, compliance reviews or enforcement actions

pertaining to the remaining regulations from which they are not exempt,

or on those portions of their operations (such as those involving CMVs

with a GVWR in excess of 26,000 pounds) which are not a part of the

Project. Also, Project drivers who pose a threat to highway safety

will, at a minimum, be subject to immediate revocation of their

privilege to participate in the Project.

If the FHWA finds that the highway operations of a Project motor

carrier have placed the safety of the public in jeopardy, the agency

will remove the motor carrier from the Project. In addition, at such

time as the three-year police-reported accident rate of a Project motor

carrier exceeds 1.6 per million VMT for the most recent 36 month

period, the motor carrier will be subject to disqualification.

Additionally, in the case of Project motor carriers with less than a

million vehicle miles traveled in the most recent 36 months, the agency

will disqualify the Project motor carrier if this is the second, or

greater, accident in the most recent 36 (or less) months.

The FHWA will also immediately remove from the Project any driver

convicted of any of the offenses enumerated under Criterion 6,

Admission To the Project. Such convictions will not necessarily result

in the removal from the Project of the motor carrier which employs the

driver, but may result in more intensive scrutiny of the operations of

that Project motor carrier.

The Final Evaluation

At the conclusion of the Project, the FHWA will conduct an

evaluation of the Project. The principal objective of the evaluation is

to provide input to the Agency's ongoing zero-base review of the need

for, and the cost and benefits of, the FMCSRs as they apply to

interstate motor carriers operating CMVs in the 10,001 to 26,000 pound

GVWR class.

The evaluation will focus upon operational safety by comparing the

collective experience of Project motor carriers and drivers during the

Project with that prior to the Project. The evaluation will also

compare the collective experience of Project motor carriers with the

experience of motor carriers not participating in the Project. These

comparisons will be accomplished through the use of motor carrier

performance data obtained from Federal and State information systems as

well as project data reported to the FHWA by participating motor

carriers.

Paperwork Reduction Act of 1995

The voluntary participants in this program must comply with

information collection requirements which are subject to review by the

Office of Management and Budget (OMB) under the Paperwork Reduction Act

of 1995 (44 U.S.C. 3501-3520). Persons are not required to respond to a

collection of information unless it displays a valid OMB control

number. The information collections requirements related to this

program have been approved through emergency processing by the OMB

until August 31, 1997, and assigned OMB No. 2125-0575.

The August 28, 1996, notice provided a 60-day comment period for

the information collections requirements related to this program.

Discussion of these comments including the FHWA's response is included

in the preamble under the heading ``Changes from Notice of August 28,

1996.'' Prior to the expiration date of the information collection, the

FHWA intends to follow the normal clearance procedures to request the

OMB to extend its approval for three years. The comments will be

considered by the FHWA in its request to the OMB for an extension.

(49 U.S.C. 31136 and 31141; 49 CFR 1.48)

[[Page 31661]]

Issued on: June 2, 1997.

Jane F. Garvey,

Acting Administrator.

[FR Doc. 97-15073 Filed 6-9-97; 8:45 am]

BILLING CODE 4910-22-P