Fees for the Unified Carrier Registration Plan and Agreement

Fees for the Unified Carrier Registration Plan and Agreement

Fees for the Unified Carrier Registration Plan and Agreement

Raymond P. Martinez
Federal Motor Carrier Safety Administration
21 August 2018

[Federal Register Volume 83, Number 162 (Tuesday, August 21, 2018)]
[Proposed Rules]
[Pages 42244-42251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17976]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Part 367

[Docket No. FMCSA-2018-0068]
RIN 2126-AC12

Fees for the Unified Carrier Registration Plan and Agreement

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: FMCSA proposes reductions in the annual registration fees
States collect from motor carriers, motor private carriers of property,
brokers, freight forwarders, and leasing companies for the Unified
Carrier Registration (UCR) Plan and Agreement for the 2019, 2020, and
subsequent registration years. The proposed fees for the 2019
registration year would be reduced below the 2017 registration fee
level that was in effect by approximately 17.59 percent to ensure that
fee revenues do not exceed the statutory maximum, and to account for
the excess funds held in the depository. The proposed fees for the 2020
registration year would be reduced below the 2017 level by
approximately 9.5 percent. The reduction of the current 2019
registration year fees (finalized on January 5, 2018) would range from
approximately $10 to $9,530 per entity, depending on the number of
vehicles owned or operated by the affected entities. The reduction in
fees for subsequent registration years would range from approximately
$4 to $3,565 per entity.

DATES: Comments on this notice of proposed rulemaking (NPRM) must be
received on or before August 31, 2018.

ADDRESSES: You may submit comments identified by Docket Number FMCSA-
2018-0068 using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments.
Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor,
Room W12-140, Washington, DC 20590-0001.
Hand Delivery or Courier: U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor,
Room W12-140, Washington, DC, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
Fax: 202-493-2251.
To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' portion of
the SUPPLEMENTARY INFORMATION section for instructions on submitting
comments.

FOR FURTHER INFORMATION CONTACT: Mr. Gerald Folsom, Office of
Registration and Safety Information, Federal Motor Carrier Safety
Administration, 1200 New Jersey Avenue SE, Washington, DC 20590-0001 by
telephone at 202-385-2405. If you have questions on viewing or
submitting material to the docket, contact Docket Services, telephone
202-366-9826.

SUPPLEMENTARY INFORMATION: This NPRM is organized as follows:

I. Public Participation and Request for Comments
A. Submitting Comments
B. Viewing Comments and Documents
C. Privacy Act
D. Advance Notice of Proposed Rulemaking Not Required
II. Executive Summary
A. Purpose and Summary of the Major Provisions
B. Benefits and Costs
III. Abbreviations and Acronyms
IV. Legal Basis for the Rulemaking
V. Statutory Requirements for the UCR Fees
A. Legislative History
B. Fee Requirements
VI. Background
VII. Discussion of Proposed Rulemaking
VIII. International Impacts
IX. Section-by-Section Analysis
X. Regulatory Analyses
A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563
(Improving Regulation and Regulatory Review), and DOT Regulatory
Policies and Procedures
B. E.O. 13771 (Reducing Regulation and Controlling Regulatory
Costs)
C. Regulatory Flexibility Act (Small Entities)
D. Assistance for Small Entities
E. Unfunded Mandates Reform Act of 1995
F. Paperwork Reduction Act (Collection of Information)
G. E.O. 13132 (Federalism)
H. E.O. 12988 (Civil Justice Reform)
I. E.O. 13045 (Protection of Children)
J. E.O. 12630 (Taking of Private Property)
K. Privacy
L. E.O. 12372 (Intergovernmental Review)
M. E.O. 13211 (Energy Supply, Distribution, or Use)
N. E.O. 13175 (Indian Tribal Governments)
O. National Technology Transfer and Advancement Act (Technical
Standards)
P. Environment (NEPA, CAA, Environmental Justice)
Q. E.O. 13783 (Promoting Energy Independence and Economic
Growth)

I. Public Participation and Request for Comments

A. Submitting Comments

If you submit a comment, please include the docket number for this
NPRM (Docket No. FMCSA-2018-0068), indicate the specific section of
this document to which each comment applies, and provide a reason for
each suggestion or recommendation. You may submit your comments and
material online or by fax, mail, or hand delivery, but please use only
one of these means. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so that FMCSA can contact you if there are questions
regarding your submission.
To submit your comment online, go to http://www.regulations.gov,
put the docket number, FMCSA-2018-0068, in the keyword box, and click
``Search.'' When the new screen appears, click on the ``Comment Now!''
button and type your comment into the text box on the following screen.
Choose whether you are submitting your comment as an individual or on
behalf of a third party and then submit.
If you submit your comments by mail or hand delivery, submit them
in an unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit comments by mail and would
like to know that they reached the facility, please enclose a stamped,
self-addressed postcard or envelope.
FMCSA will consider all comments and material received during the
comment period and may change this proposed rule based on your
comments. FMCSA may issue a final rule at any time after the close of
the comment period.
Confidential Business Information
Confidential Business Information (CBI) is commercial or financial
information that is customarily not made available to the general
public by the submitter. Under the Freedom of Information Act (5 U.S.C.
552), CBI is eligible for protection from public disclosure. If you
have CBI that is relevant or responsive to this NPRM, it

[[Page 42245]]

is important that you clearly designate the submitted comments as CBI.
Accordingly, please mark each page of your submission as
``confidential'' or ``CBI.'' Submissions designated as CBI and meeting
the definition noted above will not be placed in the public docket of
this NPRM. Submissions containing CBI should be sent to Brian Dahlin,
Chief, Regulatory Analysis Division, Federal Motor Carrier Safety
Administration, 1200 New Jersey Avenue SE, Washington DC 20590. Any
commentary that FMCSA receives which is not specifically designated as
CBI will be placed in the public docket for this rulemaking.

B. Viewing Comments and Documents

To view comments, as well as any documents mentioned in this
preamble as being available in the docket, go to http://www.regulations.gov. Insert the docket number, FMCSA-2018-0068, in the
keyword box, and click ``Search.'' Next, click the ``Open Docket
Folder'' button and choose the document to review. If you do not have
access to the internet, you may view the docket online by visiting the
Docket Management Facility in Room W12-140 on the ground floor of the
DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590,
between 9 a.m. and 5 p.m., e.t., Monday through Friday, except Federal
holidays.

C. Privacy Act

In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
public to better inform its rulemaking process. DOT posts these
comments, without edit, including any personal information the
commenter provides, to www.regulations.gov, as described in the system
of records notice (DOT/ALL-14 FDMS), which can be reviewed at
www.transportation.gov/privacy.

D. Advance Notice of Proposed Rulemaking Not Required

Under 49 U.S.C. 31136(g), added by section 5202 of the Fixing
America's Surface Transportation or FAST Act, Public Law 114-94, 129
Stat.1312, 1534 (Dec. 4, 2015), FMCSA is required to publish an advance
notice of proposed rulemaking (ANPRM) or conduct a negotiated
rulemaking ``if a proposed rule is likely to lead to the promulgation
of a major rule.'' 49 U.S.C. 31136(g)(1). As this proposed rule is not
likely to result in the promulgation of a major rule, the Agency is not
required to issue an ANPRM or to proceed with a negotiated rulemaking.

II. Executive Summary

A. Purpose and Summary of the Major Provisions

The UCR Plan and the 41 States participating in the UCR Agreement
establish and collect fees from motor carriers, motor private carriers
of property, brokers, freight forwarders, and leasing companies. The
UCR Plan and Agreement are administered by a 15-member board of
directors; 14 appointed from the participating States and the industry,
plus the Deputy Administrator of FMCSA. Revenues collected are
allocated to the participating States and the UCR Plan. In accordance
with 49 U.S.C. 14504a(f)(1)(E)(ii), fee adjustments must be requested
by the UCR Plan when annual revenues exceed the maximum allowed. Also,
if there are excess funds after payments to the States and for
administrative costs, they are retained in the UCR Plan's depository
and subsequent fees must be reduced as required by 49 U.S.C.
14504a(h)(4). These two distinct provisions are the reasons for the
two-stage adjustment proposed in this rule. This NPRM proposes to
reduce the annual registration fees established pursuant to the UCR
Agreement for 2019, 2020, and subsequent years.
Currently the UCR Plan estimates that by December 31, 2018, total
revenues will exceed the statutory maximum for the 2017 registration
year by approximately $9.17 million. Therefore, in January 2018, the
UCR Plan made a formal recommendation that FMCSA adjust the fees in a
two-stage process. The proposed fees for the 2019 registration year,
with collection beginning on or about October 1, 2018, the fees would
be reduced below the 2017 registration fee level that was in effect by
approximately 17.59 percent to ensure that fee revenues do not exceed
the statutory maximum, and to reduce the excess funds held in the
depository. The proposed fees for the 2020 registration year, with
collection beginning on or about October 1, 2019, the fees would be
reduced below the 2017 level by approximately 9.5 percent to ensure the
fee revenues in that and future years do not exceed the statutory
maximum. The UCR Plan requested that the adjusted fees be adopted no
later than August 31, 2018, to enable the participating States and the
UCR Plan to reflect the new fees when collections for the 2019
registration year begin on or about October 1, 2018. The adoption of
the adjusted fees must be accomplished by rulemaking by FMCSA under
authority delegated from the Secretary of Transportation (Secretary).
The UCR Plan's formal recommendation requested that FMCSA publish a
rule reducing the fees paid per motor carrier, motor private carrier of
property, broker, freight forwarder, and leasing company based on an
analysis of current collections and past trends. The UCR Plan's
recommendation reduces fees based on collections over the statutory cap
in 2017, and also includes a reduction in the amount of the
administrative cost allowance from $5,000,000 to $3,500,000 for the
2019 and 2020 UCR Agreement registration years. The Board completed an
analysis estimating the amount of administrative cost allowance needed
for the 2019 and 2020 registration period and has determined that an
allowance of $3,500,000 will be needed each year for those registration
years. The Agency reviewed the UCR Plan's formal recommendation and
concluded that the UCR Plan's projection of the total revenues received
for registration year 2017 is acceptable.

B. Benefits and Costs

The changes proposed in this NPRM would reduce the fees paid by
motor carriers, motor private carriers of property, brokers, freight
forwarders, and leasing companies to the UCR Plan and the participating
States. While each motor carrier would realize a reduced burden, fees
are considered by the Office of Management and Budget (OMB) Circular A-
4, Regulatory Analysis, as transfer payments, not costs. Transfer
payments are payments from one group to another that do not affect
total resources available to society. Therefore, transfers are not
considered in the monetization of societal costs and benefits of
rulemakings.

III. Abbreviations and Acronyms

The following is a list of abbreviations and acronyms used in this
document.

ANPRM Advance Notice of Proposed Rulemaking
CAA Clean Air Act
CBI Confidential Business Information
CE Categorical Exclusion
E.O. Executive Order
FMCSA Federal Motor Carrier Safety Administration
OMB Office of Management and Budget
RFA Regulatory Flexibility Act
Secretary Secretary of Transportation
SBREFA Small Business Regulatory Enforcement Fairness Act
SSRS Single State Registration System
UCR Unified Carrier Registration
UCR Agreement Unified Carrier Registration Agreement
UCR Plan Unified Carrier Registration Plan

[[Page 42246]]

IV. Legal Basis for the Rulemaking

This rule proposes to adjust the annual registration fees required
by the UCR Agreement established by 49 U.S.C. 14504a. The requested fee
adjustments are required by 49 U.S.C. 14504a because, for registration
year 2017, the total revenues collected are expected to exceed the
total revenue entitlements of $107.78 million distributed to the 41
participating States plus the $5 million established for the
administrative costs associated with the UCR Plan and Agreement. The
requested adjustments have been submitted by the UCR Plan in accordance
with 49 U.S.C. 14504a(f)(1)(E)(ii), which requires the UCR Plan to
request an adjustment by the Secretary when the annual revenues exceed
the maximum allowed. In addition, 49 U.S.C. 14504a(h)(4) states that
any excess funds held by the UCR Plan in its depository, after payments
to the States and for administrative costs, shall be retained ``and the
fees charged . . . shall be reduced by the Secretary accordingly.''
The UCR Plan is also requesting approval of a revised total revenue
to be collected because of a reduction in the amount for costs of
administering the UCR Agreement. No changes in the revenue allocations
to the participating States have been recommended by the UCR Plan. The
revised total revenue must be approved in accordance with 49 U.S.C.
14504a(d)(7).
The Secretary also has broad rulemaking authority in 49 U.S.C.
13301(a) to carry out 49 U.S.C. 14504a, which is part of 49 U.S.C.
subtitle IV, part B. Authority to administer these statutory provisions
has been delegated to the FMCSA Administrator by 49 CFR 1.87(a)(2) and
(7).

V. Statutory Requirements for the UCR Fees

A. Legislative History

The statute 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 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)).
The legislative history of the statute indicates that the purpose
of the UCR Plan and Agreement is both to replace the Single State
Registration 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)). The
statute provides for a 15-member board of directors for the UCR Plan to
be appointed by the Secretary. The statute specifies that the board of
directors should consist of one individual from DOT (either the FMCSA
Deputy Administrator or another Presidential appointee); four directors
from among the chief administrative officers of the State agencies
responsible for administering the UCR Agreement (one from each of the
four FMCSA service areas); five directors from among the professional
staffs of State agencies responsible for administering the UCR
Agreement (who are nominated by the National Conference of State
Transportation Specialists); and five directors from the motor carrier
industry (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 UCR Plan and the participating States are authorized by 49
U.S.C. 14504a(f) to establish and collect fees from motor carriers,
motor private carriers of property, brokers, freight forwarders, and
leasing companies. The current annual fees charged for registration
year 2018 are set out in 49 CFR 367.40 and for registration years 2019
and thereafter in Sec. 367.50. These fees were adopted by FMCSA in
January 2018 after a rulemaking proceeding. See Fees for the Unified
Carrier Registration Plan and Agreement, 83 FR 605 (Jan. 5, 2018).
For carriers and freight forwarders, the fees vary according to the
size of the vehicle fleets, as required by 49 U.S.C. 14504a(f). The
fees collected are allocated to the States and the UCR Plan in
accordance with 49 U.S.C. 14504a(h).

B. Fee Requirements

The statute specifies that the fees set by the Agency are to be
based on the recommendation of the UCR Plan (49 U.S.C.
14504a(f)(1)(B)). In recommending the level of fees to be charged in
any registration year, and in setting the fee level, both the UCR Plan
and the Agency shall consider the following factors:
Administrative costs associated with the UCR Plan and
Agreement;
Whether the revenues generated in the previous year and
any surplus or shortage from that or prior years enable the
participating States to achieve the revenue levels set by the UCR Plan;
and
Provisions governing fees in 49 U.S.C. 14504a(f)(1)

(49 U.S.C. 14504a(d)(7)(A)). The fees may be adjusted within a
reasonable range on an annual basis if the revenues derived from the
fees are either insufficient to provide the participating States with
the revenues they are entitled to receive or exceed those revenues (49
U.S.C. 14504a(f)(1)(E)).
Overall, the fees charged under the UCR Agreement must produce the
level of revenue established by statute. Section 14504a(g) establishes
the revenue entitlements for States that choose to participate in the
UCR Agreement. That section provides that a participating State, which
participated in SSRS in the registration year prior to the enactment of
the Unified Carrier Registration Act of 2005, is entitled to receive
revenues under the UCR Agreement equivalent to the revenues it received
in the year before that enactment. Participating States that also
collected intrastate registration fees from interstate motor carrier
entities (whether they participated in SSRS or not) are also entitled
to receive revenues of this type under the UCR Agreement, in an amount
equivalent to the amount received in the year before the Act's
enactment. The section also provides that States that did not
participate in SSRS, but which choose to participate in the UCR Plan,
may receive revenues not to exceed $500,000 per registration year.
FMCSA's interpretation of its responsibilities under 49 U.S.C.
14504a in setting fees for the UCR Plan and Agreement is guided by the
primacy the statute places on the need both to set and to adjust the
fees to ensure they ``provide the revenues to which the States are
entitled'' (49 U.S.C.14504a(f) (1)(E)(i)). The statute links the
requirement that the fees be adjusted ``within a reasonable range'' to
the provision of sufficient revenues to meet the entitlements of the
participating States (49 U.S.C. 14504a(f)(1)(E)). See also 49 U.S.C.
14504a(d)(7)(A)(ii)).
Section 14504a(h)(4) gives additional support for this
interpretation. This provision explicitly requires FMCSA to reduce the
fees charged in the registration year following any year in which the
depository retains any funds in excess of the amount necessary to
satisfy the revenue entitlements of the participating States and the
UCR Plan's administrative costs.

VI. Background

On December 14, 2017, the board of directors voted unanimously to
submit

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a recommendation to the Secretary to reduce the fees collected by the
UCR Plan for registration years 2019 and thereafter. The recommendation
was submitted to the Secretary on January 11, 2018.\1\ The requested
fee adjustments are required by 49 U.S.C. 14504a because, for
registration year 2017, the total revenues collected are expected to
exceed the total revenue entitlements of $107.78 million distributed to
the 41 participating States plus the $5 million established for ``the
administrative costs associated with the unified carrier registration
plan and agreement'' (49 U.S.C. 14504a(d)(7)(A)(i)). The maximum
revenue entitlements for each of the 41 participating States,
established in accordance with 49 U.S.C. 14504a(g), are set out in a
table attached to the January 11, 2018 recommendation.
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\1\ The January 11, 2018 recommendation from the UCR Plan and
all related tables are available in the docket.
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As indicated in the analysis attached to the January 11, 2018
recommendation letter, as of the end of November 2017, the UCR Plan had
already collected $7.30 million more than the statutory maximum of
$112.78 million for registration year 2017. The UCR Plan estimates that
by the end of 2018, total revenues will exceed the statutory maximum by
$9.17 million, or approximately 8.13 percent. The excess revenues
collected will be held in a depository maintained by the UCR Plan as
required by 49 U.S.C. 14504a(h)(4).
The UCR Plan's recommendation estimated the minimum projection of
revenue collections for December 2017 through December 2018 by summing
the collections within each of the registration years 2013 through 2015
\2\ and then comparing across years to find the minimum total amount.
This is the same methodology used to project collections and estimate
fees in the previous fee adjustment rulemaking (83 FR 605 (Jan. 5,
2018)).
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\2\ Collections for registration year 2016 are not available for
use for this purpose because registration and fee collection for
that year was not finalized at the time of the UCR Plan
Recommendation.
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Under 49 U.S.C. 14504a(d)(7), the costs incurred by the UCR Plan to
administer the UCR Agreement are eligible for inclusion in the total
revenue to be collected, in addition to the revenue allocations for the
participating States. The total revenue for registration years 2010 to
2018, as approved in the 2010 final rule (75 FR 21993 (April, 27,
2010)), has been $112,777,059.81, including $5,000,000 for
administrative costs. The UCR Plan's latest recommendation includes a
reduction in the amount of the administrative cost allowance to
$3,500,000 for the 2019 and 2020 registration years. The reduction of
$1,500,000 recommended by the UCR Plan was based on estimates of future
administrative cost allowances needed to operate the UCR Plan and
Agreement. No changes in the State revenue entitlements are
recommended, and the entitlement figures for 2019 and 2020 for the 41
participating States are the same as those previously approved for the
years 2010 through 2018. Therefore, for registration years 2019 and
2020, the UCR Plan recommends total revenue to be collected of
$111,277,060 (rounded to the nearest dollar). FMCSA proposes to approve
this recommendation for the total revenue to be collected by the UCR
Plan, as shown in the following table.

State UCR Revenue Entitlements and Final 2019 Revenue Target
------------------------------------------------------------------------
Total 2019 UCR revenue
State entitlements
------------------------------------------------------------------------
Alabama........................................ $2,939,964.00
Arkansas....................................... 1,817,360.00
California..................................... 2,131,710.00
Colorado....................................... 1,801,615.00
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...................................... 4,063,836.00
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 Carolina................................. 372,007.00
North Dakota................................... 2,010,434.00
Ohio........................................... 4,813,877.74
Oklahoma....................................... 2,457,796.00
Pennsylvania................................... 4,945,527.00
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

[[Page 42248]]

Washington..................................... 2,467,971.00
West Virginia.................................. 1,431,727.03
Wisconsin...................................... 2,196,680.00
------------------------
Sub-Total.................................. 106,777,059.81
Alaska......................................... 500,000.00
Delaware....................................... 500,000.00
------------------------
Total State Revenue Entitlement........ 107,777,060.00
Administrative Expenses................ 3,500,000.00
------------------------
Total Revenue Target............... 111,277,060.00
------------------------------------------------------------------------

VII. Discussion of Proposed Rulemaking

FMCSA has reviewed the formal recommendation from the UCR Plan and
proposes to approve it, including the reduction in the allowance for
administrative costs necessary to continue administering the UCR
Agreement and the UCR Plan. Overall, the UCR Plan and the Agency agree
on the reduction of the current fees for 2019 and subsequent
registration years, and that there would be no change in the State UCR
revenue entitlements.

VIII. International Impacts

Motor carriers and other entities involved in interstate and
foreign transportation in the United States that do not have a
principal office in the United States, are nonetheless subject to the
fees for the UCR Plan. They are required to designate a participating
State as a base State and pay the appropriate fees to that State (49
U.S.C. 14504a(a)(2)(B)(ii) and (f)(4)).

IX. Section-by-Section Analysis

In this NPRM, FMCSA proposes that the provisions of 49 CFR 367.50
(which were just adopted in the January 5, 2018 final rule) would be
revised to establish new reduced fees applicable only to registration
year 2019. A new 49 CFR 367.60 would establish the proposed fees for
registration year 2020, which would remain in effect for subsequent
registration years unless revised in the future.

X. Regulatory Analyses

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

FMCSA performed an analysis of the impacts of the proposed rule and
determined it is not a significant regulatory action under section 3(f)
of E.O. 12866, Regulatory Planning and Review (58 FR 51735, October 4,
1993), as supplemented by E.O. 13563, Improving Regulation and
Regulatory Review (76 FR 3821, January 21, 2011). Accordingly, OMB has
not reviewed it under those Orders. It is also not significant within
the meaning of DOT regulatory policies and procedures (DOT Order 2100.5
dated May 22, 1980; 44 FR 11034, February 26, 1979).
The changes proposed by this rule would reduce the registration
fees paid by motor carriers, motor private carriers of property,
brokers, freight forwarders, and leasing companies to the UCR Plan and
the participating States. While each motor carrier would realize a
reduced burden, fees are considered by OMB Circular A-4, Regulatory
Analysis, as transfer payments, not costs. Transfer payments are
payments from one group to another that do not affect total resources
available to society. By definition, transfers are not considered in
the monetization of societal costs and benefits of rulemakings.
This rule would establish reductions in the annual registration
fees for the UCR Plan and Agreement. The entities affected by this rule
are the participating States, motor carriers, motor private carriers of
property, brokers, freight forwarders, and leasing companies. Because
the State UCR revenue entitlements would remain unchanged, the
participating States would not be impacted by this rule. The primary
impact of this rule would be a reduction in fees paid by individual
motor carriers, motor private carriers of property, brokers, freight
forwarders, and leasing companies. The reduction of the current 2019
registration year fees (finalized on January 5, 2018) would range from
approximately $10 to $9,530 per entity, depending on the number of
vehicles owned or operated by the affected entities. The reduction in
fees for subsequent registration years would range from approximately
$4 to $3,565 per entity.

B. E.O. 13771 Reducing Regulation and Controlling Regulatory Costs

E.O. 13771, ``Reducing Regulation and Controlling Regulatory
Costs,'' does not apply to this action because it is nonsignificant and
has zero costs; therefore, it is not subject to the ``2 for 1'' and
budgeting requirements.
This rulemaking is not a significant regulatory action as defined
in section 3(f) of E.O. 12866.

C. Regulatory Flexibility Act (Small Entities)

The Regulatory Flexibility Act (RFA) of 1980 (5 U.S.C. 601 et
seq.), as amended by the Small Business Regulatory Enforcement Fairness
Act of 1996 (SBREFA) (Pub. L. 104-121, 110 Stat. 857), requires Federal
agencies to consider the effects of the regulatory action on small
business and other small entities and to minimize any significant
economic impact. The term ``small entities'' comprises small businesses
and not-for-profit organizations that are independently owned and
operated and are not dominant in their fields, and governmental
jurisdictions with populations of less than 50,000 (5 U.S.C. 601(6)).
Accordingly, DOT policy requires an analysis of the impact of all
regulations on small entities, and mandates that agencies strive to
lessen any adverse effects on these businesses. Section 605 of the RFA
allows an agency to certify a rule, in lieu of preparing an analysis,
if the rulemaking is not expected to have a significant economic impact
on a substantial number of small entities.
This proposed rule would directly affect the participating States,
motor carriers, motor private carriers of property, brokers, freight
forwarders, and leasing companies. Under the standards of the RFA, as
amended by

[[Page 42249]]

the SBREFA, the participating States are not small entities. States are
not considered small entities because they do not meet the definition
of a small entity in section 601 of the RFA. Specifically, States are
not considered small governmental jurisdictions under section 601(5) of
the RFA, both because State government is not included among the
various levels of government listed in section 601(5), and because,
even if this were the case, no State or the District of Columbia has a
population of less than 50,000, which is the criterion by which a
governmental jurisdiction is considered small under section 601(5) of
the RFA.
The Small Business Administration's size standard for a small
entity (13 CFR 121.201) differs by industry code. The entities affected
by this rule fall into many different industry codes. In order to
determine if this rule would have an impact on a significant number of
small entities, FMCSA examined the 2012 Economic Census \3\ data for
two different industries; truck transportation (Subsector 484) and
transit and ground transportation (Subsector 485). According to the
2012 Economic Census, approximately 99 percent of truck transportation
firms, and approximately 97 percent of transit and ground
transportation firms, had annual revenue less than the Small Business
Administration's \4\ revenue thresholds of $27.5 million and $15
million, respectively, to be defined as a small entity. Therefore,
FMCSA has determined that this rule will impact a substantial number of
small entities.
---------------------------------------------------------------------------

\3\ U.S. Census Bureau, 2012 US Economic Census, available at
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_48SSSZ4&prodType=table (accessed
Apr. 27, 2017).
\4\ U.S. Small Business Administration. ``Table of Small
Business Size Standards Matched to North American Industry
Classification System Codes.'' Published February 26,2016. Available
at: https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.
---------------------------------------------------------------------------

However, FMCSA has determined that this rule would not have a
significant impact on the affected entities. The effect of this rule
would be to reduce the annual registration fee motor carriers, motor
private carriers of property, brokers, freight forwarders, and leasing
companies are currently required to pay. The reduction will range from
approximately $10 to $9,530 per entity, in the first year, and from
approximately $4 to $3,565 per entity in subsequent years, depending on
the number of vehicles owned and/or operated by the affected entities.
Accordingly, I certify that this rule will not have a significant
economic impact on a substantial number of small entities.

D. Assistance for Small Entities

In accordance with section 213(a) of the SBREFA, FMCSA wants to
assist small entities in understanding this proposed rule so that they
can better evaluate its effects on themselves and participate in the
rulemaking initiative. If the proposed rule would affect your small
business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance; please
consult the FMCSA point of contact, Gerald Folsom, listed in the For
Further Information Contact section of this proposed rule.
Small businesses may send comments on the actions of Federal
employees who enforce or otherwise determine compliance with Federal
regulations to the Small Business Administration's Small Business and
Agriculture Regulatory Enforcement Ombudsman and the Regional Small
Business Regulatory Fairness Boards. The Ombudsman evaluates these
actions annually and rates each agency's responsiveness to small
business. If you wish to comment on actions by employees of FMCSA, call
1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding the rights
of small entities to regulatory enforcement fairness and an explicit
policy against retaliation for exercising these rights.

E. Unfunded Mandates Reform Act of 1995

The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $156 million (which is the
value equivalent of $100,000,000 in 1995, adjusted for inflation to
2015 levels) or more in any one year. Though this proposed rule would
not result in such an expenditure, the Agency does discuss the effects
of this rule elsewhere in this preamble.

F. Paperwork Reduction Act

This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

G. E.O. 13132 (Federalism)

A rule has implications for federalism under section 1(a) of E.O.
13132 if it has ``substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.'' FMCSA determined that this proposal would not have
substantial direct costs on or for States, nor would it limit the
policymaking discretion of States. Nothing in this document preempts
any State law or regulation. Therefore, this rule does not have
sufficient federalism implications to warrant the preparation of a
Federalism Impact Statement.

H. E.O. 12988 (Civil Justice Reform)

This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.

I. E.O. 13045 (Protection of Children)

E.O. 13045, Protection of Children from Environmental Health Risks
and Safety Risks (62 FR 19885, April 23, 1997), requires agencies
issuing ``economically significant'' rules, if the regulation also
concerns an environmental health or safety risk that an agency has
reason to believe may disproportionately affect children, to include an
evaluation of the regulation's environmental health and safety effects
on children. The Agency determined this proposed rule is not
economically significant. Therefore, no analysis of the impacts on
children is required. In any event, the Agency does not anticipate that
this regulatory action could in any respect present an environmental or
safety risk that could disproportionately affect children.

J. E.O. 12630 (Taking of Private Property)

FMCSA reviewed this proposed rule in accordance with E.O. 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights, and has determined it will not effect a taking of
private property or otherwise have taking implications.

K. Privacy

The Consolidated Appropriations Act, 2005, (Pub. L. 108-447, 118
Stat. 2809, 3268, 5 U.S.C. 552a note) requires the Agency to conduct a
privacy impact assessment of a regulation that will affect the privacy
of individuals. This rule does not require the collection of personally
identifiable information.
The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies
and any non-Federal agency that receives records contained in a system
of records from a Federal agency for use in a matching program.

[[Page 42250]]

The E-Government Act of 2002, Pub. L. 107-347, 208, 116 Stat. 2899,
2921 (Dec. 17, 2002), requires Federal agencies to conduct a privacy
impact assessment for new or substantially changed technology that
collects, maintains, or disseminates information in an identifiable
form. No new or substantially changed technology would collect,
maintain, or disseminate information as a result of this rule.
Accordingly, FMCSA has not conducted a privacy impact assessment.

L. E.O. 12372 (Intergovernmental Review)

The regulations implementing E.O. 12372 regarding intergovernmental
consultation on Federal programs and activities do not apply to this
program.

M. E.O. 13211 (Energy Supply, Distribution, or Use)

FMCSA has analyzed this proposed rule under E.O. 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. The Agency has determined that it is not a
``significant energy action'' under that order because it is not a
``significant regulatory action'' likely to have a significant adverse
effect on the supply, distribution, or use of energy. Therefore, it
does not require a Statement of Energy Effects under E.O. 13211.

N. E.O. 13175 (Indian Tribal Governments)

This proposed rule does not have tribal implications under E.O.
13175, Consultation and Coordination with Indian Tribal Governments,
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.

O. National Technology Transfer and Advancement Act (Technical
Standards)

The National Technology Transfer and Advancement Act (15 U.S.C. 272
note) directs agencies to use voluntary consensus standards in their
regulatory activities unless the agency provides Congress, through OMB,
with an explanation of why using these standards would be inconsistent
with applicable law or otherwise impractical. Voluntary consensus
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) are standards that are developed or adopted by
voluntary consensus standards bodies. This rule does not use technical
standards. Therefore, FMCSA did not consider the use of voluntary
consensus standards.

P. Environment (NEPA, CAA, Environmental Justice)

FMCSA analyzed this NPRM for the purpose of the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et seq.) and
determined this action is categorically excluded from further analysis
and documentation in an environmental assessment or environmental
impact statement under FMCSA Order 5610.1 (69 FR 9680, March 1, 2004),
Appendix 2, paragraph 6.h. The Categorical Exclusion (CE) in paragraph
6.h. covers regulations and actions taken pursuant to regulation
implementing procedures to collect fees that will be charged for motor
carrier registrations. The proposed requirements in this rule are
covered by this CE and the NPRM does not have any effect on the quality
of the environment. The CE determination is available in the docket.
FMCSA also analyzed this rule under section 176(c) of the Clean Air
Act, as amended (CAA) (42 U.S.C. 7406(c)), and implementing regulations
promulgated by the Environmental Protection Agency. Approval of this
action is exempt from the CAA's general conformity requirement because
it does not affect direct or indirect emissions of criteria pollutants.
Under E.O. 12898, Federal Actions to Address Environmental Justice
in Minority Populations and Low-Income Populations, each Federal agency
must identify and address, as appropriate, ``disproportionately high
and adverse human health or environmental effects of its programs,
policies, and activities on minority populations and low-income
populations'' in the United States, its possessions, and territories.
FMCSA evaluated the environmental justice effects of this proposed rule
in accordance with the E.O., and has determined that no environmental
justice issue is associated with this proposed rule, nor is there any
collective environmental impact that would result from its
promulgation.

Q. E.O. 13783 (Promoting Energy Independence and Economic Growth)

E.O. 13783 directs executive departments and agencies to review
existing regulations that potentially burden the development or use of
domestically produced energy resources, and to appropriately suspend,
revise, or rescind those that unduly burden the development of domestic
energy resources. In accordance with E.O. 13783, DOT prepared and
submitted a report to the Director of OMB that provides specific
recommendations that, to the extent permitted by law, could alleviate
or eliminate aspects of agency action that burden domestic energy
production. This proposed rule has not been identified by DOT under
E.O. 13783 as potentially alleviating unnecessary burdens on domestic
energy production.

List of Subjects in 49 CFR Part 367

Insurance, Intergovernmental relations, Motor carriers, Surety
bonds.

In consideration of the foregoing, FMCSA proposes to amend 49 CFR
chapter III, part 367 to read as follows:

PART 367--STANDARDS FOR REGISTRATION WITH STATES

0
1. The authority citation for part 367 continues to read as follows:

Authority: 49 U.S.C. 13301, 14504a; and 49 CFR 1.87.

0
2. Revise Sec. 367.50 to read as follows:

Sec. 367.50 Fees Under the Unified Carrier Registration Plan and
Agreement for Registration Year 2019.

Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year 2019
----------------------------------------------------------------------------------------------------------------
Number of commercial motor
vehicles owned or operated Fee per entity for
by exempt or non-exempt exempt or non-exempt Fee per entity for
Bracket motor carrier, motor motor carrier, motor broker or leasing
private carrier, or private carrier, or company
freight forwarder freight forwarder
----------------------------------------------------------------------------------------------------------------
B1................................ 0-2....................... $63 $63
B2................................ 3-5....................... 187 .......................
B3................................ 6-20...................... 372 .......................

[[Page 42251]]

B4................................ 21-100.................... 1,299 .......................
B5................................ 101-1,000................. 6,190 .......................
B6................................ 1,001 and above........... 60,441 .......................
----------------------------------------------------------------------------------------------------------------

0
3. Add new Sec. 367.60 to subpart B to read as follows:

Sec. 367.60 Fees Under the Unified Carrier Registration Plan and
Agreement for Registration Years Beginning in 2020.

Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year 2020 and Each Subsequent
Registration Year Thereafter
----------------------------------------------------------------------------------------------------------------
Number of commercial motor
vehicles owned or operated Fee per entity for
by exempt or non-exempt exempt or non-exempt Fee per entity for
Bracket motor carrier, motor motor carrier, motor broker or leasing
private carrier, or private carrier, or company
freight forwarder freight forwarder
----------------------------------------------------------------------------------------------------------------
B1................................ 0-2....................... $69 $69
B2................................ 3-5....................... 206 .......................
B3................................ 6-20...................... 409 .......................
B4................................ 21-100.................... 1,427 .......................
B5................................ 101-1,000................. 6,800 .......................
B6................................ 1,001 and above........... 66,406 .......................
----------------------------------------------------------------------------------------------------------------

Issued under authority delegated in 49 CFR 1.87 on: August 15,
2018.
Raymond P. Martinez,
Administrator.
[FR Doc. 2018-17976 Filed 8-20-18; 8:45 am]
BILLING CODE 4910-EX-P