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[Federal Register: August 24, 2007 (Volume 72, Number 164)]
[Rules and Regulations]
[Page 48585-48590]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24au07-11] ===========================================================
------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety Administration 49 CFR Part 367 [Docket No. FMCSA-2007-27871]
RIN 2126-AB09 Fees for Unified Carrier Registration Plan and Agreement AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT. ACTION: Final rule. ----------------------------------------------------------------- SUMMARY: This rule establishes initial fees for 2007 and a fee bracket
structure for the Unified Carrier Registration Agreement. This action
is required under the Uniform Carrier Registration Act of 2005, enacted
as Subtitle C of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users. EFFECTIVE DATE: August 24, 2007. FOR FURTHER INFORMATION CONTACT: Mr. David Miller, Regulatory
Development Division, (202) 366-5370, or by e-mail at: FMCSAregs@dot.gov. Availability of Rulemaking Documents For access to the docket to read background documents and comments
received, go to http://dms.dot.gov at any time or to U.S. Department of
Transportation, Room W12-140, 1200 New Jersey Ave., SE., Washington, DC
20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. SUPPLEMENTARY INFORMATION: I. Legal Basis for the Rulemaking This rule involves the fees to be set for the Unified Carrier
Registration Agreement established by 49 U.S.C. 14504a, enacted by
section 4305(b) of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (119 Stat.
1144, 1764 (2005)). Section 14504a states that the "Unified Carrier
Registration Plan * * * mean[s] the organization * * * responsible for
developing, implementing, and administering the unified carrier
registration agreement" (49 U.S.C. 14504a(a)(9)) (UCR Plan). The
Unified Carrier Registration Agreement (UCR Agreement) developed by the
UCR Plan is the "interstate agreement governing the collection and
distribution of registration and financial responsibility information
provided and fees paid by motor carriers, motor private carriers,
brokers, freight forwarders and leasing companies * * *" (49 U.S.C.
14504a(a)(8)). Congress also repealed the statutory provisions of 49 U.S.C. 14504
governing the Single State Registration System (SSRS) (SAFETEA-LU
section 4305(a)).\1\ The legislative history indicates that the purpose
of the UCR Plan and Agreement is both to "replace the existing
outdated system [SSRS]" for registration of interstate motor carrier
entities with the States and to "ensure that States don't lose current
revenues derived from SSRS" (S. Rep. 109-120, at 2 (2005)).\2\
---------------------------------------------------------------------- \1\ This repeal became effective on January 1, 2007, in
accordance with section 4305(a). \2\ The Senate bill's provisions were enacted "with
modifications." H. Conf. Rep. No. 109-203, at 1020 (2005).
---------------------------------------------------------------------- The statute provides for a 15-member Board of Directors for the UCR
Plan and Agreement (Board) appointed by the Secretary of
Transportation. The statute specified that the Board should consist of
one individual (either the FMCSA Deputy Administrator or another
Presidential appointee) from the Department of Transportation; four
directors, including one from each of the four FMCSA service areas,
selected from among the chief administrative officers of the State
agencies responsible for administering the UCR Agreement; five
directors from among the professional staffs of State agencies
responsible for administering the UCR Agreement, to be nominated by the
National Conference of State Transportation Specialists (NCSTS); and
five directors representing the motor carrier industry, of whom at
least one must be from a national trade association representing the
general motor carrier of property industry and one from a motor carrier
that falls within the smallest fleet fee bracket. The establishment of
the Board was announced in the Federal Register on May 12, 2006 (71 FR
27777). Among its responsibilities, the Board was required to submit to the
Secretary of Transportation \3\ a recommendation for the initial annual
fees to be assessed on motor carriers, motor private carriers, freight
forwarders, brokers and leasing companies under the UCR Agreement (49
U.S.C. 14504a(d)(7)(A)). The FMCSA then was directed to set the fees
within 90 days after receiving the Board's recommendation and after
notice and opportunity for public comment (49 U.S.C. 14504a(d)(7)(B)).
--------------------------------------------------------------------- \3\ The Secretary's functions under section 14504a have been
delegated to the Administrator of the Federal Motor Carrier Safety
Administration. 49 CFR 1.73(a)(7), as amended, 71 FR 30833 (May 31,
2006).
-------------------------------------------------------------------- II. Statutory Requirements for UCR Fees The statute specifies several relevant factors that must be
considered by the Board and FMCSA in setting the fees (see 49 U.S.C.
14504a(d)(7)(A), (f)(1) and (g)). It specifies that fees are to be
determined by FMCSA based upon the recommendation of the Board. The
FMCSA described the statutory requirements in detail in a Notice of
Proposed Rulemaking (NPRM) published on May 29, 2007 (72 FR 29472). Section 14504a(f)(1) also stipulates that for the purpose of
charging fees the Board shall develop no less than 4 and no more than 6
brackets of carriers based on the size of the fleet, i.e. the number of
commercial motor vehicles owned or operated. Finally, the fee scale is
required to be progressive in the amount of the fee. Overall, the fees assessed under the UCR Agreement must produce a
level of revenues established by the statute. Section 14504a(g)
establishes the revenue entitlements for States that choose to
participate in the UCR Plan. That section provides that a participating
State, which participated in the SSRS in the registration year prior to
the enactment of the Unified Carrier Registration Act of 2005 (i.e.,
the 2004 registration year), is entitled to receive revenues under the
UCR Agreement [[Page 48586]] equivalent to the revenues it received in 2004. Participating States
that collected intrastate registration fees from interstate motor
carrier entities (whether or not they participated in SSRS) are
entitled to receive revenues of this type under the UCR Agreement
equivalent to the amount received in the 2004 registration year. The
section also requires that States which did not participate in SSRS in
2004, but which choose to participate in the UCR Plan, will receive
revenues not to exceed $500,000 per year. III. Background Following receipt by FMCSA of the Board's fee recommendation, a
copy of which is included in the docket for this rulemaking, FMCSA
conducted a review of the recommendation and prepared a detailed
Regulatory Evaluation, also included in the docket. The FMCSA described
the results of that review in the NPRM. The FMCSA carefully examined
the Board's entire fee recommendation, including the methodology and
specific findings of the Board. The FMCSA also independently considered
the factors specified in section 14504a, and verified and utilized the
data and analysis provided by the Board in its fee recommendation. In
the NPRM, FMCSA provided a detailed description of its examination of
the Board's recommendation and announced its conclusion that the
Board's recommendation was reasonable and that the Board considered all
required factors. The FMCSA also described the basis for its conclusion
that the Board had satisfied the requirements for establishing the fees
to be charged under the Unified Carrier Registration Agreement. The
Board has provided an adequate opportunity for all States to
participate in the UCR Plan and Agreement for registration year 2007
and the Board had adequately calculated the total revenue to be
collected under the UCR. In a correction of the NPRM published on June 5, 2007 (72 FR
31048), FMCSA explained that the comment period for the proposed
rulemaking was limited to fifteen days because of the very short time
period set by section 14504a(d)(7)(B) for completion of the rulemaking.
The FMCSA also provided corrections to its May 29, 2007, NPRM, none of
which materially affected the proposed rule, and provided notice
concerning the new address for the Department of Transportation. IV. Discussion of Comments to the NPRM FMCSA received 17 comments, including comments from commercial
motor carriers, the Commercial Vehicle Safety Alliance (CVSA), the
California Trucking Association (CTA), the National School
Transportation Association (NSTA), the Transportation Intermediaries
Association (TIA), an attorney representing an interstate
transportation carrier, an interstate property and household goods
broker, private individuals, the North Dakota Department of
Transportation (NDDOT), and three State public service commissions.
After reviewing and evaluating the comments, as described below, FMCSA
has concluded that no revisions are necessary to the annual fees and
bracket structure for the Unified Carrier Registration Agreement that
were specified in the NPRM. The FMCSA, therefore, is adopting those
annual fees and the bracket structure in this Final Rule. Two of the public service commissions (Alabama and Michigan), TIA,
and CVSA supported the proposed fee structure and urged FMCSA to
expedite promulgation of the final rule. The other commenters suggested
changes to the fees or bracket structure or made other recommendations
regarding UCR. CTA, the attorney to the interstate carrier, and four private
individuals questioned the fairness of the fee structure, calling
attention to disparities between smaller and larger carriers. Their
recommendations for addressing the issue included adding another
bracket to the fee structure to divide carriers with more than 20 and
less than 50 vehicles and assessing the fee on a per-truck basis. One
commenter argued that the last bracket represents too significant an
increase in fees for carriers operating just over 1,000 units when
compared to carriers operating 1,000 units. Another stated that the fee
schedules penalized carriers with fewer than 100 vehicles for being
small because they were required to pay "substantially more" than
large carriers. NDDOT believes the Board needs the flexibility to be
able to make reasonable adjustments to the fees if the revenue goals
cannot be reached, without going through the rulemaking amendment
process every year. NDDOT argues the Board should be allowed to adjust
the fee schedule for the first three years with a modified rule
amendment process so as not to hinder the timeliness of states' keeping
the program operating efficiently. However, the statutory requirements
for the UCR fee structure, the statutory limitation of the number of
brackets to a maximum of six in 49 U.S.C. 14504a(f)(1), and the
statutory process for adjusting the amount of the fees in subsequent
years preclude FMCSA from adopting the actions these commenters
advocate. The statute does not grant either the Board or FMCSA the
latitude to set fees on a per-vehicle basis, to add more brackets, or
to adjust the fee schedule without complying with section
14504a(d)(7)(B) and the Administrative Procedure Act (5 U.S.C. 551 et
seq.). FMCSA has ensured that the fee scale is progressive across the
brackets, in that the fees per carrier increase as the size of the
carrier increases. The statute only requires that the "fee scale shall
be progressive in the amount of the fee." 49 U.S.C. 14504a(f)(1)(D).
The fee scale is clearly "progressive" in this sense, because the fee
scale increases with each bracket containing a larger range of
commercial motor vehicles for the motor carrier entities included.
Moreover, the statute also requires that the fees be applied uniformly
to entities in each bracket "based on the size of the fleet." 49
U.S.C. 14504a(f)(1)(C). For particular entities, the fee may or may not
be progressive as compared to a carrier in another bracket that is
close in size, or that has almost the same number of commercial motor
vehicles in its fleet, but that is an expected result of a fee scale
based on applying uniform fees to entities with a range of fleet sizes. Another commenter, TIA, expressed agreement with the findings of
the Board concerning the size of the industry and supported the
adoption of the maximum number of fee levels and the proposed breakdown
within each level. TIA found the proposed fee levels "fair, equitable,
and proportional." TIA did, however, request clarification on two fee-
related topics. It asked, first, that freight forwarders that are not
part of a trucking company pay at the same level as brokers and leasing
companies. It also noted what it considered a conflict between the
definition of freight forwarder in section 14504a and the definition in
49 U.S.C. 13102(8), and urged that freight forwarders that are not part
of trucking companies should register in the same category as brokers
and leasing companies. The FMCSA has determined there is no conflict.
Freight forwarders that operate commercial motor vehicles in line-haul
service to transport consolidated shipments in interstate commerce are
required to register as motor carriers, and are treated as such under
the UCR Plan. 49 U.S.C. 13903(b). Freight forwarders that operate motor
vehicles providing transfer, collection and delivery service [[Page 48587]]
are required to file proof of financial responsibility with FMCSA by 49
U.S.C. 13906(c)(1). Freight forwarders operating commercial motor
vehicles in such local service "shall be subject to the provisions of
[section 14504a] as if the freight forwarder is a motor carrier." 49
U.S.C. 14504a(b). Therefore, all freight forwarders that operate
commercial motor vehicles are subject to fees under the UCR Plan and
Agreement in accordance with the number of such vehicles operated. If a
freight forwarder operates no such vehicles, it is subject to the fee
set for the lowest bracket. See also 49 U.S.C. 14504a(f)(1)(A)(i). This
is the interpretation of the statute utilized by the Board and FMCSA in
determining the fees, because any freight forwarder that also had a
USDOT number (only issued to operators of commercial motor vehicles)
was treated as a motor carrier. TIA also requested a clarification on whether fees are cumulative
or a company should pay only once at the highest applicable rate,
noting that a company could have motor carrier authority, broker
authority, and freight forwarder authority. TIA recommended adoption of
the highest applicable fee approach rather than the cumulative fee
approach. FMCSA and the Board both adopted the highest applicable fee
approach in their analyses. The FMCSA notes that the commenters, in discussing the brackets and
fee structure, consistently referred to trucks, vehicles, and/or power
units rather than to commercial motor vehicles, the term used in the
proposed and final rules. The statute defines "commercial motor
vehicle," in general, as including both self-propelled and towed
vehicles (49 U.S.C. 14504a(a)(1)(A) and 31101(1)). Both self-propelled
and towed vehicles should be considered in deciding the appropriate
bracket for determining the fee to be paid by a motor carrier, motor
private carrier, or freight forwarder. A commercial carrier argued that the proposed fee structure ignored
the fact that some motor carriers do not have traffic in every
participating State and that vehicles without extensive interstate
operations are included in determining brackets and fees. An individual
commenter also asserted that the Board's calculation of fees had
included commercial motor vehicles that operate only in intrastate
commerce. If such vehicles did leave the State, according to this
commenter, they would be required to purchase a Trip Permit, and thus
would be charged out-of-State fees twice. The FMCSA notes, however,
that section 14504a does not allow either the Board or FMCSA to adjust
the fees to account for the extent of interstate operations. The
statute requires that interstate carriers of the same size be assessed
the same fees regardless of the number of States in which they operate.
After considering these comments in light of the statute, FMCSA
determined that the proposed fee structure adequately accounts for
equity concerns within the statute's constraints. The NSTA noted what it perceived to be a conflict between the
possibility under the UCR Plan that private interstate school bus
carriers that register with DOT and obtain a USDOT number will be
required to pay the UCR fees in spite of the provisions of 49 U.S.C.
13506(a)(1) from the ICC Termination Act of 1995 (Pub. L. 104-88, title
I, Sec. 103, Dec. 29, 1995, 109 Stat. 861) that exempt such carriers
from registration requirements for school bus carriers under the
proposed Unified Registration System (URS). One individual asked for
clarification on whether farmers and ranchers are considered private
carriers under UCR. For the purpose of the UCR agreement, the statutory
definition of "motor carrier," as modified by 49 U.S.C. 14504a(a)(5)
includes for-hire carriers that are otherwise exempt such as farmers,
ranchers and school bus operators because they are now subject to the
fees in connection with the filing of proof of financial responsibility
under the UCR agreement. In addition, motor private carriers that meet
the applicable statutory definition in 49 U.S.C. 13102(15) are subject
to the fees in connection with the filing of proof of financial
responsibility under the UCR agreement. This is the interpretation of
section 14504a followed by the Board and FMCSA in recommending and
setting the fees. Some commenters addressed implementation of the UCR fee system. TIA
argued that an unreasonable burden could be placed on small businesses
and on interstate commerce if companies are required to register in
person at their base State. Instead, TIA asked for the creation of a
national registration interface through which companies could pay by
credit card. Another suggested that the fees should be collected along
with the heavy-duty vehicle tax. TIA and the NDDOT expressed support
for the Board's decision to set aside funds to pay various
administrative costs, including development of a web-based registration
and payment system, communications, credit card processing fees,
operation of a depository, and Board travel and expenses and staffing
of a help desk, as well as a set-aside to cover the risk of under
collection of revenue. TIA noted that additional amounts could be
needed for information technology and communications. TIA also noted
that the Board may not have the necessary funds to pay administrative
costs until fees are collected. NDDOT suggested that rule language be
added stipulating that administrative costs can only be paid after
participating States are made whole. Because section 14504a assigned
implementation of the UCR Agreement to the Board, FMCSA has concluded
that the comments pertaining to the method adopted for registration,
and the mechanisms for fee collection and distribution are outside the
scope of this rulemaking and should be directed to the Board. FMCSA
will provide the Board with a copy of all comments received. In
addition, FMCSA will place a document outlining the UCR Board's
mechanisms for fee collection and distribution in docket FMCSA-2007-
27871. This document will be updated as information becomes available
from the UCR Board. The public may consult the Board or the docket for
up to date information about the mechanisms for fee collection and
distribution. The FMCSA reviewed the estimated administrative costs as part of
the analysis described in the May 29, 2007, NPRM and concluded that
they were reasonable. As TIA points out, however, once the new system
has developed a "proven track record," estimates of the amounts
needed for administration may change. The NDDOT commented that it is not concerned about the number of
leasing companies in calculating the affected population or the
revenues from the leasing companies. NDDOT estimates the number is less
than 2,600 and the revenues will be about $101,000. NDDOT believes this
amount is less than one tenth of one percent of the total UCR revenues.
FMCSA agrees with NDDOT. The Michigan Public Service Commission (MPSC) suggested that if for
some reason the program cannot be implemented in 2007, FMCSA should
allow States to collect both 2007 and 2008 revenue simultaneously. In
addition to being outside the scope of this rulemaking, FMCSA believes
that this approach would be contrary to the terms of section 14504a.
MPSC also recommended that credit card fees for revenue collected on
line should not be deducted from the total due to States. The revenue
target for 2007 is composed of State revenue entitlement,
administrative expenses, and revenue reserve. The credit card operating
expense is a component of the administrative cost and is separate from
[[Page 48588]] the State revenue entitlement. Thus, including credit card expenses in
the revenue target does not affect the State revenue entitlement, (see
49 U.S.C. 14504a(h)) and FMCSA has concluded that the MPSC concern is
unwarranted. CVSA encouraged FMCSA to consider making a loan to the
Board to support the development of the infrastructure necessary to
register the carriers and collect and to deposit the fees in an
efficient manner. Although FMCSA takes note of the suggestion, it has
concluded that the comment is outside the scope of this rulemaking.
CVSA also encouraged FMCSA to use the opportunity presented through UCR
to consolidate the regulations, requirements, and information systems
relative to operation authority, registration, and licensing/insurance.
The FMCSA has concluded this comment is outside the scope of this
rulemaking. TIA asked that the UCR should not become a new system to regulate
brokers and freight forwarders by the States, noting that section
14504a(f)(1)(A) refers to UCR fees charged "in connection with the
filing of proof of financial responsibility under the UCR Agreement."
TIA requested FMCSA to limit specifically any reporting or enforcement
of proof of financial responsibility by brokers and freight forwarders
to their required filings with the Department of Transportation.
However, as discussed above under "II. Statutory Requirements for UCR
Fees," the fees charged to the various entities are required to be in
connection with the requirement in 49 U.S.C. 14504a(f)(1)(A). Not all
of the entities included in the five categories are currently required
to file financial responsibility information with FMCSA. The Board has
authority to issue rules and regulations to govern the UCR Agreement,
and to require annual submission of a set of information required of a
motor carrier, motor private carrier, leasing company, broker, or
freight forwarder (49 U.S.C. 14504a(d)(2)(A)(i)). FMCSA expects that
the Board will establish requirements for filing of financial
responsibility information as necessary to subject all entities in all
five categories to the UCR fees, and to ensure that the required
revenue levels will be achieved. Similarly, FMCSA notes TIA's request that DOT and the Board work
together to ensure that participating States provide usable safety and
enforcement data to DOT's reporting systems, but finds the comment
outside the scope of this rule. One commenter recommended that the State revenue requirements
increase over time to reflect growing needs. Another commenter noted
that impacts on small entities could become a problem if fees increase
over time. Capping UCR revenues at 2004 levels, according to the
commenter, is not viable in the long term. The FMCSA notes in response
that section 14504a provides that fees under UCR are to be established
on a yearly basis. Therefore, fees for future years will be the subject
of subsequent rulemaking, if and when the Board asks for an adjustment
in the fees in accordance with section 14504a(f)(1)(E). On the other
hand, the revenues to be derived from the fees were fixed by Congress
as of 2004 by section 14504a(g). The only variation would occur because
of changes in the participating States under section 14504a(e) or
Congressional action. The Pennsylvania Public Utility Commission (PaPUC), contends that
Pennsylvania, which did not participate in SSRS, may be prohibited from
collecting assessments from intra-state revenues of motor carriers to
support its motor carrier safety enforcement program. PaPUC interprets
49 U.S.C. 14504a(c) of the UCR Act as potentially preempting such
assessments. The FMCSA believes that this issue involves a legal
interpretation of the preemption provisions of section 14504a(c); and,
therefore, is outside the scope of this rulemaking. PaPUC, supported by
CVSA, then requests that the UCR program fee schedule provide a
mechanism to make it whole. However, Pennsylvania has not complied with
49 U.S.C. 14504a(e), is therefore not a participating State in the UCR
agreement, and is not entitled to any revenues under 49 U.S.C.
14504a(g)(2) and (3). An interstate property and household goods broker noted that some
States currently do not recognize the Federal broker license issued by
FMCSA and do not issue intrastate broker licenses. This commenter asked
FMCSA to preempt State law and to secure agreements from States
participating in the UCR that they will acknowledge broker's rights to
arrange for transportation without the need for intrastate motor
carrier authority. The FMCSA has concluded that this comment requests
actions that are outside the scope of this rulemaking. V. The Final Rule The FMCSA is adopting the proposed rule as final without any
changes. In addition, the FMCSA has verified that the Board has
accurately reflected in its recommendations the revenue entitlements
certified by each State for 2007. In accordance with 49 U.S.C.
14504a(g)(4), FMCSA proposed in the NPRM to approve the amount of
revenue under the UCR Agreement to which each State participating in
2007 is entitled. FMCSA received no comment on this aspect of the
proposal. FMCSA, is, therefore, approving the amount of revenue under
the UCR Agreement to which each State participating in 2007 is
entitled, as specified in the following table 1. Table 1.--2007 State UCR Revenue Entitlements| State | Total 2007 UCR revenue entitlements |
|---|
| Alabama.............................................. | $2,939,964.00 | | Arkansas............................................. | 1,817,360.00 | | Colorado............................................. | 1,817,215.00 | | Connecticut.......................................... | 3,129,840.00 | | Georgia.............................................. | 2,660,060.00 | | Idaho................................................ | 547,696.68 | | Illinois............................................. | 3,516,993.00 | | Indiana.............................................. | 2,364,879.00 | | Iowa................................................. | 474,742.00 | | Kansas............................................... | 4,344,290.00 | | Kentucky............................................. | 5,365,980.00 | | Louisiana............................................ | 5,992,820.00 | | Maine................................................ | 1,555,672.00 | | Massachusetts........................................ | 2,282,887.00 | | Michigan............................................. | 7,520,717.00 | | Minnesota............................................ | 1,137,132.30 | | Missouri............................................. | 2,342,000.00 | | Mississippi.......................................... | 4,322,100.00 | | Montana.............................................. | 1,049,063.00 | | Nebraska............................................. | 741,974.00 | | New Hampshire........................................ | 2,273,299.00 | | New Mexico........................................... | 3,292,233.00 | | New York............................................. | 4,414,538.00 | | North Dakota......................................... | 2,010,434.00 | | Ohio................................................. | 4,813,877.74 | | Oklahoma............................................. | 2,457,796.00 | | Rhode Island......................................... | 2,285,486.00 | | South Carolina....................................... | 2,420,120.00 | | South Dakota......................................... | 855,623.00 | | Tennessee............................................ | 4,759,329.00 | | Texas................................................ | 2,718,628.06 | | Utah................................................. | 2,098,408.00 | | Virginia............................................. | 4,852,865.00 | | Washington........................................... | 2,467,971.00 | | West Virginia........................................ | 1,431,727.03 | | Wisconsin............................................ | 2,196,680.00 | | Total............................................ | 101,272,399.81 | | Oregon............................................... | 500,000 | | Total State Entitlement--2007.................... | 101,772,399.81 | Regulatory Analyses and Notices Administrative Procedure Act The Administrative Procedure Act's rulemaking provision in
subsection (d)(3) of 5 U.S.C. 553 allows FMCSA to make a final rule
effective on its publication date for good cause. Congress expected the
Board to make recommendations and the Agency to set the fees through
this final rule well before January 1, 2007. The Board experienced
delays Congress had not [[Page 48589]] envisioned in promulgating 49 U.S.C. 14504a. Making this final rule
effective on the date of publication will not cause harm to any person
or regulated entity. No commenter opposed the proposal and the fees are
required by statute. Due to the exhaustive efforts of the Board in
developing the recommendations and the amount of time needed, the
States participating in the UCR have been losing current revenues they
would have been deriving from SSRS to offset expenses involved in
administering their enforcement and compliance of State motor carrier
laws and regulations. Michigan and Alabama authorities made these
points in their comments in the docket. These States and the others in
the UCR may have to lay off State employees and curtail enforcement and
compliance efforts if the States cannot collect 2007 revenue. Congress
intends section 14504a to "ensure that States don't lose current
revenues derived from SSRS" (S. Rep. 109-120, at 2 (2005)). This
intent remains unfulfilled as long as this final rule setting the fees
is not effective. FMCSA finds that it is necessary to make this final
rule effective immediately upon publication to reduce the serious
dislocation of State government programs and reduce or avoid imminent
harm to State employees and the traveling public in the UCR States that
may have to, or have had to, curtail their compliance and enforcement
efforts. Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures The FMCSA has determined that this action is a significant
regulatory action within the meaning of Executive Order 12866 due to
its subject matter and the impact on the participating States. However, this rule is not economically significant based on the
size of the fees to be collected under the UCR. The costs of the rule
are required pursuant to an explicit Congressional mandate in section
14504a. Because a majority of the fees under the rule will replace fees
motor carriers paid under the SSRS system, the total cost of the rule
will be substantially less than $100 million per year. New entities
paying fees under UCR that did not pay under SSRS are estimated to
account for slightly less than half the fees, or about $50 million in
new costs per year. The Agency has prepared a regulatory analysis
analyzing the rule. A copy of the regulatory analysis document is
included in the docket referenced at the beginning of this notice. The
Office of Management and Budget (OMB) has reviewed this document. Regulatory Flexibility Act In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), FMCSA considered the effects of this regulatory action on small
entities and determined that this rule will affect a substantial number
of small entities, as defined by the U.S. Small Business
Administration's Office of Size Standards. Accordingly, FMCSA has
considered the economic impacts of the requirements on small entities
and determines that this rule will not have a significant economic
impact on a substantial number of small entities. The fees adopted in
this rule would affect large numbers of small entities because the rule
sets fees for hundreds of thousands of carriers, brokers, and freight
forwarders of all sizes, and small entities are defined to include all
entities that are not dominant in their industries. In previous
rulemakings, FMCSA identified for-hire carriers with fewer than 145
power units (i.e., trucks or tractors) as small. The FMCSA estimates
that carrier size to be equivalent to a carrier operating about 300
commercial motor vehicles. Thus, all of the for-hire carriers in
Brackets 1 through 4 would be considered small, as would many of those
in Bracket 5. After careful consideration, however, FMCSA has determined that the
UCR fee will, in every case involving a viable small entity, be well
below the threshold level of one percent of revenues used for
determining significant impacts. This conclusion is based on the
observation that the maximum fee per vehicle is $39, which is less than
one percent of the annual salary of even a single employee working 40
hours per week for 50 weeks per year and earning the current Federal
minimum wage of $5.85. Because an entity without sufficient revenues to
pay even one employee per vehicle or per broker or freight-forwarder
operation would not be viable, it is clear that the UCR fees will not
reach the threshold of one percent of revenues. Additionally, more than
50 percent of the fees collected under the new UCR system were already
being paid by many of these entities under the SSRS system, meaning the
UCR fees will simply serve as substitutes for the SSRS fees these firms
were previously being assessed. Thus, the FMCSA Administrator certifies
that the rule will not have a significant economic impact on a
substantial number of small entities. Unfunded Mandates Reform Act of 1995 This rulemaking will not impose an unfunded Federal mandate, as
defined by the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1532, et
seq.), that will result in the expenditure by State, local, and tribal
governments, in the aggregate, or by the private sector, of $128.1
million or more in any one year. Executive Order 12988 (Civil Justice Reform) This action will meet 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) The FMCSA analyzed this action under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. We determined that this rulemaking would not concern an
environmental risk to health or safety that may disproportionately
affect children. Executive Order 12630 (Taking of Private Property) This rulemaking does not effect a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights. Executive Order 13132 (Federalism) The FMCSA analyzed this rule in accordance with the principles and
criteria contained in Executive Order 13132. FMCSA has determined that
this rulemaking will not have a substantial direct effect on States,
nor will it limit the policy-making discretion of the States. Nothing
in this document will preempt any State law or regulation. The FMCSA
has therefore determined this rule does not have sufficient federalism
implications to warrant the preparation of a federalism assessment. Executive Order 12372 (Intergovernmental Review) The regulations implementing Executive Order 12372 regarding
intergovernmental consultation on Federal programs and activities do
not apply to this program. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
that FMCSA consider the impact of paperwork and other information
collection burdens imposed on the public. We have determined that there
are no new information collection requirements associated with this
final rule. [[Page 48590]] National Environmental Policy Act The FMCSA analyzed this final rule for the purpose of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and
determined under our environmental procedures Order 5610.1, issued
March 1, 2004 (69 FR 9680), that this action is categorically excluded
(CE) under Appendix 2, paragraph 6.h of the Order from further
environmental documentation. In addition, the Agency believes that this
action includes no extraordinary circumstances that will have any
effect on the quality of the environment. Thus, the action does not
require an environmental assessment or an environmental impact
statement. The FMCSA also analyzed this rule under the Clean Air Act, as
amended (CAA), section 176(c) (42 U.S.C. 7401 et seq.), and
implementing regulations promulgated by the Environmental Protection
Agency. Approval of this action is exempt from the CAA's general
conformity requirement since it involves policy development. Executive Order 13211 (Energy Effects) The FMCSA analyzed this action under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We determined that it is not a "significant
energy action" under that Executive Order because it will not be
likely to have a significant adverse effect on the supply,
distribution, or use. List of Subjects in 49 CFR Part 367 Commercial motor vehicle, Financial responsibility, Motor carriers,
Motor vehicle safety, Registration, Reporting and recordkeeping
requirements. In consideration of the foregoing, FMCSA amends title 49, Code of
Federal Regulations, part 367, as follows: PART 367--STANDARDS FOR REGISTRATION WITH STATES 1. The authority citation for part 367 is revised to read as follows: Authority: 49 U.S.C. 13301, 14504, 14504a; and 49 CFR 1.73. 2. Add a new Subpart A heading preceding Sec. 367.1 to read as
follows: Subpart A--Single State Registration System Appendix A [Amended] 3. Amend the heading of Appendix A to part 367 by removing the phrase
"Part 367" and adding in its place "Subpart A". 4. Add a new Subpart B to read as follows: Subpart B--Fees Under the Unified Carrier Registration Plan and
Agreement Sec. 367.20 Fees under the Unified Carrier Registration Plan and
Agreement for Registration Year 2007. Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year 2007| Bracket | Number of commercial motor vehicles owned or operated by exempt or non-exempt motor carrier, motor private carrier, or freight forwarder | Fee per company for exempt or non-exempt motor carrier, motor private carrier, or freight forwarder | Fee per company for broker or leasing company |
|---|
| B1......................................... | 0-2.......................... | $39 | $39 | | B2......................................... | 3-5.......................... | 116 | ................. | | B3......................................... | 6-20......................... | 231 | ................. | | B4......................................... | 21-100....................... | 806 | ................. | | B5......................................... | 101-1,000.................... | 3,840 | ................. | | B6......................................... | 1,001 and above.............. | 37,500 | ................. | Issued on: August 15, 2007.
John H. Hill,
Administrator.
[FR Doc. E7-16482 Filed 8-23-07; 8:45 am] BILLING CODE 4910-EX-P
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