Annual Adjustment of Monetary Threshold for Reporting Rail Equipment Accidents/Incidents

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Parts 219 and 225

[FRA Docket No. RAR-5, Notice No. 1]

RIN 2130-AB21

Annual Adjustment of Monetary Threshold for Reporting Rail

Equipment Accidents/Incidents

AGENCY: Federal Railroad Administration (FRA), Department of

Transportation (DOT).

ACTION: Final rule.

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SUMMARY: This final rule increases from $6,500 to $6,600 the monetary

threshold for reporting railroad accidents/incidents involving railroad

property damage that occur on or after January 1, 1998. This action is

needed to ensure and maintain comparability between different years of

data by having the threshold keep pace with increases or decreases in

equipment and labor costs so that each year accidents involving the

same minimum amount of railroad property damage are included in the

reportable accident counts. The reporting threshold was last changed in

1996.

EFFECTIVE DATE: January 1, 1998.

FOR FURTHER INFORMATION CONTACT: Robert L. Finkelstein, Staff Director,

Office of Safety Analysis, RRS-22, Mail Stop 25, Office of Safety, FRA,

400 Seventh Street, S.W., Washington, D.C. 20590 (telephone 202-632-

3386); or Nancy L. Goldman, Trial Attorney, Office of Chief Counsel,

RCC-12, Mail Stop 10, FRA, 400 Seventh Street, S.W., Washington, D.C.

20590 (telephone 202-632-3167).

SUPPLEMENTARY INFORMATION:

Background

Rail equipment accidents/incidents are collisions, derailments,

explosions, fires, acts of God, and other events (including grade

crossing accidents) involving the operation of standing or moving on-

track equipment that results in damages higher than the current

reporting threshold to railroad on-track equipment, signals, track,

track structures, or roadbed, including labor costs and the costs for

acquiring new equipment and material. 49 CFR 225.19 (b), (c). Each rail

equipment accident/incident must be reported to FRA using the Rail

Equipment Accident/Incident Report (Form FRA F 6180.54). Id.

As revised in 1996, paragraphs (c) and (e) of Sec. 225.19 of title

49, Code of Federal Regulations, provide that the dollar figure that

constitutes the reporting threshold for rail equipment accidents/

incidents will be adjusted every year in accordance with the procedures

outlined in appendix B to part 225, to reflect cost increases or

decreases. 61 FR 30942, 30969 (June 18, 1996); 61 FR 60632, 60634 (Nov.

29, 1996); 61 FR 67477, 67490 (Dec. 23, 1996).

New Reporting Threshold

One year has passed since the accident/incident reporting threshold

was last revised. 61 FR 60632 (Nov. 29, 1996). Consequently, FRA has

recalculated the threshold, as required by Sec. 225.19(c), based on

increased costs for labor and decreased costs for material. FRA has

determined that the current reporting threshold of $6,500, which

applies to rail equipment accidents/incidents that occur during

calendar year 1997, should be increased to $6,600, effective January 1,

1998, and Secs. 225.5 and 225.19 are being amended accordingly.

Appendix B has also been amended to reflect the most recent cost

figures and the calculations made to determine the new threshold for

calendar year 1998. Finally, the alcohol and drug regulations (49 CFR

part 219) are amended throughout to reflect that the reporting

threshold for calendar year 1998 is $6,600.

Notice and Comment Procedures

In this rule, FRA merely adjusts the reporting threshold based on

the formula adopted, after notice and comment, in the final rule

published June 18, 1996, 61 FR 30959, 30969, and discussed in detail in

the final rule published November 29, 1996, 61 FR 30632. FRA further

finds that both the current cost data inserted into this pre-existing

formula and the original cost data that they replace were obtained from

reliable Federal government sources. FRA further finds that this rule

imposes no additional burden on any person, but rather provides a

benefit by permitting the valid comparison of accident data over time.

Accordingly, FRA concludes that notice and comment procedures are

impracticable, unnecessary, and contrary to the public interest. As a

consequence, FRA is proceeding directly to this final rule.

Regulatory Impact

Executive Order 12866 and DOT Regulatory Policies and Procedures

This final rule has been evaluated in accordance with existing

regulatory policies and procedures and is considered to be a

nonsignificant regulatory action under DOT policies and procedures (44

FR 11034; February 26, 1979). This final rule also has been reviewed

under Executive Order 12866 and is also considered ``nonsignificant''

under that Order.

Regulatory Flexibility Act

The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.)

requires a review of rules to assess their impact on small entities,

unless the Secretary certifies that the rule will not have a

significant economic impact on a substantial number of small entities.

This final rule will have no new significant direct or indirect

economic impact on small units of government, business, or other

organizations. To the extent that this rule has any impact on small

units, the impact will be positive because the rule is decreasing,

rather increasing, their reporting burden.

Paperwork Reduction Act

There are no new information collection requirements associated

with this final rule. Therefore, no estimate of a public reporting

burden is required.

Environmental Impact

This final rule will not have any identifiable environmental

impact.

Federalism Implications

This final rule will not have a substantial 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. Thus, in accordance with Executive Order 12612,

preparation of a Federalism Assessment is not warranted.

The Final Rule

In consideration of the foregoing, FRA amends parts 219 and 225,

Title 49, Code of Federal Regulations as follows:

PART 219--[AMENDED]

1. The authority citation for part 219 continues to read as

follows:

Authority: 49 U.S.C. 20103, 20107, 20111, 20112, 20113, 20140,

21301, 21304; and 49 CFR 1.49(m).

[[Page 63676]]

2. By amending Sec. 219.5 by revising the first sentence in the

definition of Impact accident and by revising the definitions of

Reporting Threshold and Train accident to read as follows:

Sec. 219.5 Definitions.

* * * * *

Impact accident means a train accident (i.e., a rail equipment

accident involving damage in excess of the current reporting threshold,

$6,300 for calendar years 1991 through 1996, $6,500 for calendar year

1997, and $6,600 for calendar year 1998) consisting of a head-on

collision, a rear-end collision, a side collision (including a

collision at a railroad crossing at grade), a switching collision, or

impact with a deliberately-placed obstruction such as a bumping post. *

* *

* * * * *

Reporting threshold means the amount specified in Sec. 225.19(e) of

this chapter, as adjusted from time to time in accordance with appendix

B to part 225 of this chapter. The reporting threshold for calendar

years 1991 through 1996 is $6,300. The reporting threshold for calendar

year 1997 is $6,500. The reporting threshold for calendar year 1998 is

$6,600.

* * * * *

Train accident means a passenger, freight, or work train accident

described in Sec. 225.19(c) of this chapter (a ``rail equipment

accident'' involving damage in excess of the current reporting

threshold, $6,300 for calendar years 1991 through 1996, $6,500 for

calendar year 1997, and $6,600 for calendar year 1998), including an

accident involving a switching movement.

* * * * *

3. By amending Sec. 219.201 by revising the introductory text of

paragraphs (a)(1) and (a)(2), and by revising paragraph (a)(4) to read

as follows:

Sec. 219.201 Events for which testing is required.

(a) * * *

(1) Major train accident. Any train accident (i.e., a rail

equipment accident involving damage in excess of the current reporting

threshold, $6,300 for calendar years 1991 through 1996, $6,500 for

calendar year 1997, and $6,600 for calendar year 1998) that involves

one or more of the following:

* * * * *

(2) Impact accident. An impact accident (i.e., a rail equipment

accident defined as an ``impact accident'' in Sec. 219.5 of this part

that involves damage in excess of the current reporting threshold,

$6,300 for calendar years 1991 through 1996, $6,500 for calendar year

1997, and $6,600 for calendar year 1998) resulting in--

* * * * *

(4) Passenger train accident. Reportable injury to any person in a

train accident (i.e., a rail equipment accident involving damage in

excess of the current reporting threshold, $6,300 for calendar years

1991 through 1996, $6,500 for calendar year 1997, and $6,600 for

calendar year 1998) involving a passenger train.

* * * * *

PART 225--[AMENDED]

1. The authority citation for part 225 continues to read as

follows:

Authority: 49 U.S.C. 20103, 20107, 20901, 20902, 21302, 21311;

49 U.S.C. 103; 49 CFR 1.49(c), (g), and (m).

2. By amending Sec. 225.19(c) by removing the phrase ``and $6,500

for calendar year 1997)'' and by adding in its place ``, $6,500 for

calendar year 1997, and $6,600 for calendar year 1998)''.

3. By revising Sec. 225.19(e) to read as follows:

Sec. 225.19 Primary groups of accidents/incidents.

* * * * *

(e) The reporting threshold is $6,300 for calendar years 1991

through 1996. The reporting threshold is $6,500 for calendar year 1997;

this threshold dollar amount will remain in effect until December 31,

1997. For calendar year 1998 the reporting threshold is $6,600. The

procedure for determining the reporting threshold for calendar year

1998 appears as appendix B to part 225.

4. Part 225 is amended by revising appendix B to read as follows:

Appendix--B to Part 225--Procedure for Determining Reporting Threshold

1. Data from the U.S. Department of Labor, Bureau of Labor

Statistics (BLS), LABSTAT Series Reports are used in the

calculation. The equation used to adjust the reporting threshold

uses the average hourly earnings reported for Class I railroads and

Amtrak and an overall railroad equipment cost index determined by

the BLS. The two factors are weighted equally.

2. For the wage component, LABSTAT Series Report, Standard

Industrial Classification (SIC) code 4011 for Class I Railroad

Average Hourly Earnings is used.

3. For the equipment component, LABSTAT Series Report, Producer

Price Index (PPI) Series WPU 144 for Railroad Equipment is used.

4. In the month of October, final data covering the 12-month

period ending with the month of June are obtained from BLS. The 12

monthly figures are totaled and divided by 12 to produce monthly

averages to be used in computing the projected annual (12-month)

average for the next calendar year.

5. The wage data are reported in terms of dollars earned per

hour, while the equipment cost data are indexed to a base year of

1982.

6. The procedure for adjusting the reporting threshold is shown

in the formula below. The wage component appears as a fractional

change relative to the prior year, while the equipment component is

a difference of two percentages which must be divided by 100 to

present it in a consistent fractional form. After performing the

calculation, the result is rounded to the nearest $100.

7. The current weightings represent the general assumption that

damage repair costs, at levels at or near the threshold, are split

approximately evenly between labor and materials.

8. Formula:

[GRAPHIC] [TIFF OMITTED] TR02DE97.000

Where:

Prior Threshold = $6,500 (for rail equipment accidents/incidents

that occur during calendar year 1997)

Wn = New average hourly wage rate ($) = 17.990833

Wp = Prior average hourly wage rate ($) = 17.55500

En = New equipment average PPI value = 135.91666

Ep = Prior equipment average PPI value = 136.76667

9. The result of these calculations is $6,553. Since the result

is rounded to the nearest $100, the new reporting threshold for rail

equipment accidents/incidents that occur during calendar year 1998

is $6,600.

Jolene M. Molitoris,

Federal Railroad Administrator.

[FR Doc. 97-31455 Filed 12-1-97; 8:45 am]

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