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

Daphne Y. Jefferson
Federal Motor Carrier Safety Administration
21 September 2017

[Federal Register Volume 82, Number 182 (Thursday, September 21, 2017)]
[Proposed Rules]
[Pages 44143-44150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20079]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Part 367

[Docket No. FMCSA-2017-0118]
RIN 2126-AC03

Fees for the Unified Carrier Registration Plan and Agreement

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

ACTION: Notice of proposed rulemaking; request for comments.

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SUMMARY: FMCSA proposes to establish reductions in the annual
registration fees collected 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
registration years 2018, 2019 and subsequent years. For the 2018
registration year, the fees would be reduced below the current level by
approximately 9.10% to ensure that fee revenues do not exceed the
statutory maximum, and to account for the excess funds held in the
depository. For the 2019 registration year, the fees would be reduced
below the current level by approximately 4.55% to ensure the fee
revenues in that and future years do not exceed the statutory maximum.

DATES: Comments on this notice of proposed rulemaking must be received
on or before October 2, 2017.

ADDRESSES: You may submit comments identified by Docket Number FMCSA-
2017-0118 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: West Building, Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., 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, including collection of information comments for the Office
of Information and Regulatory Affairs, OMB.

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 notice of proposed rulemaking (NPRM) is organized as follows:

I. Public Participation and Request for Comments
A. Submitting Comments
B. Viewing Comments and Documents
C. Privacy Act
D. Waiver of Advance Notice of Proposed Rulemaking
II. Executive Summary
A. Purpose and Summary of the Major Provisions
B. Benefits and Costs
III. Abbreviations and Acronyms
IV. Legal Basis
V. Statutory Requirements
A. Legislative History
B. Fee Requirements
VI. Background
VII. Discussion of Proposed Rulemaking
VIII. Section-by-Section Analysis
IX. Regulatory Analyses
A. E.O. 12866 (Regulatory Planning and Review and DOT Regulatory
Policies and Procedures as Supplemented by E.O. 13563)
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)

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-2017-0118), indicate the specific section of
this document to which each section 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

[[Page 44144]]

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-2017-0118, 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, CBI is
eligible for protection from public disclosure. If you have CBI that is
relevant or responsive to this NPRM, it 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,
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. FMCSA will consider
all comments and material received during the comment period.

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-2017-0118, 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.dot.gov/privacy.

D. Advanced Notice of Proposed Rulemaking Not Required

Under section 5202 of the FAST Act, Public Law, 114-94 (FAST Act),
FMCSA is required to publish an advance notice of proposed rulemaking
for any major or significant rules, unless the Agency finds good cause
that an ANPRM is impracticable, unnecessary, or contrary to the public
interest. FMCSA has determined that this proposed rule is not
significant; therefore, it is not a major rule that requires an ANPRM.

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 (UCR Board); 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 the statute, adjustments must be requested by the
UCR Plan when annual revenues exceed the maximum allowed in accordance
with 49 U.S.C. 14504a(f)(1)(E)(ii). Also, excess funds held by the UCR
Plan after payments to the States and for administrative costs are
retained in its depository and subsequent fees charged are 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. The
NPRM proposes to provide for a reduction for at least the next two
registration years to the annual registration fees established for the
Unified Carrier Registration (UCR) Agreement.
The UCR Plan collects registration fees for each registration year.
Collection begins on or about October 1st of the previous year, and
continues until December 31st of the following year. For example,
collection for the 2016 registration year began on October 1st, 2015,
and will end on December 31st 2017. Currently the UCR Plan estimates
that by December 31st of 2017, total revenues will exceed the statutory
maximum for the 2016 registration year by $5.13 million, or
approximately 4.55%. This is the first time that revenues collected
will exceed the statutory maximum. Therefore, in March 2017, the UCR
Board requested that FMCSA adjust the fees in a two-stage process. For
the 2018 registration year, with collection beginning on or about
October 1st of 2017, the fees would be reduced below the current level
by approximately 9.10% to ensure that fee revenues do not exceed the
statutory maximum, and to reduce the excess funds held in the
depository. For the 2019 registration year, with collection beginning
on or about October 1st of 2018, the fees would be reduced below the
current level by approximately 4.55% to ensure the fee revenues in that
and future years do not exceed the statutory maximum. The UCR Plan
requested that the reduction for 2018 be adopted no later than August
31, 2017, to enable the participating States and the UCR Plan to
reflect the new fees when collections for the 2018 registration year
begins on or about October 1, 2017. The adoption of the adjusted fees
must be accomplished by rulemaking by FMCSA under authority delegated
from the Secretary of Transportation.

B. Benefits and Costs

The changes proposed in this NPRM will reduce the fees paid by
motor carriers, motor private carriers of property, brokers, freight
forwarders, and leasing companies to the participating States. 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

[[Page 44145]]

societal costs and benefits of rulemakings.
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 Agency reviewed
the UCR Plan's formal recommendation and concluded that the UCR Plan's
projection of the total revenues received for registration year 2016
may have been understated. This understatement would result in slightly
higher fees for certain brackets. FMCSA conducted its own analysis,
adjusted the methodology for projecting collections through the
remainder of 2017, and updated the fees accordingly. The total amount
targeted for collection by the UCR Plan will not change as a result of
this rule, but the fees paid, or transfers, per affected entity will be
reduced.

III. Abbreviations and Acronyms

The following is a list of abbreviations used in this document

Board Unified Carrier Registration Board of Directors
CAA Clean Air Act
CE Categorical Exclusion
FAST Act Fixing America's Surface Transportation Act, Public Law
114-94, 129 Stat. 1312 (Dec. 2, 2015)
FMCSA Federal Motor Carrier Safety Administration
NCSTS National Conference of State Transportation Specialists
OMB Office of Management and Budget
PIA Privacy Impact Assessment
PRA Paperwork Reduction Act
RFA Regulatory Flexibility Act
SBA Small Business Administration
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

IV. Legal Basis for the Rulemaking

This rule proposes to make adjustments in the annual registration
fees for the UCR Agreement established by 49 U.S.C. 14504a. The
requested fee adjustments are required by 49 U.S.C. 14504a because, for
the registration year 2016, the total revenues collected are expected
to exceed for the first time 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 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 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 of Transportation. The statute specifies
that the UCR Board should consist of one individual (either the Federal
Motor Carrier Safety Administration (FMCSA) Deputy Administrator or
another Presidential appointee) from the Department of Transportation;
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, to be nominated by the National Conference of State
Transportation Specialists (NCSTS); and five directors from 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 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 are set out in 49
CFR 367.30. These fees were adopted by FMCSA in 2010 after a rulemaking
proceeding that considered the substantial increase in fees over the
fees initially established in 2007. Compare 75 FR 21993 (Apr. 27, 2010)
with 72 FR 48585 (Aug. 24, 2007).
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 fees are to be based upon the
recommendation of the UCR Board, 49 U.S.C. 14504a(f)(1)(E)(ii). In
recommending the level of fees to be assessed in any agreement year,
and in setting the fee level, both the Board 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 Board;
and.
Provisions governing fees in 49 U.S.C. 14504a(f)(1).
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 assessed 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 Plan. 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

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(whether or not they participated in SSRS) are also entitled to receive
revenues of this type under the UCR Agreement, in an amount equivalent
to the amount received in the previous registration year. The section
also requires that States that did not participate in SSRS previously,
but which choose to participate in the UCR Plan, may receive revenues
not to exceed $500,000 per 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 so that they ``provide the revenues to which the States are
entitled.'' 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 for all motor carrier entities in the 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 March 14, 2017, the UCR Board voted unanimously to submit a
recommendation to the Secretary for a reduction of registration fees
collected by the Plan for 2018, with a subsequent upward adjustment in
2019. The recommendation was submitted to the Secretary on March 22,
2017, and a copy has been placed in the docket.\1\ The requested fee
adjustments are required by 49 U.S.C. 14504a because, for the
registration year 2016, the total revenues collected have exceeded for
the first time 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, totaling $107.78 million and established in
accordance with 49 U.S.C. 14504a(g), are set out in the table attached
to the March 22, 2017 recommendation.
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\1\ The UCR recommendation submitted March 22, 2017 including
the letter request from the Board and all related tables is located
in docket FMCSA-2017-0118 at: www.regulations.gov.
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As indicated in the analysis attached to the March 22, 2017 letter,
as of the end of February 2017, the UCR Plan had already collected for
2016 $4.15 million more than the statutory maximum of $112.78 million.
The UCR Plan estimates that by the end of 2017, total revenues will
exceed the statutory maximum for 2016 by $5.13 million, or
approximately 4.55%. The excess revenues collected will be held in a
depository maintained by the Plan as required by 49 U.S.C.
14504a(h)(4).
The requested adjustments have been submitted by the UCR Plan in
accordance with 49 U.S.C. 14504a(f)(1)(E)(ii), which requires it to
request an adjustment 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.'' These
two provisions are distinct, and are the basis for the two-stage
adjustment in the recommendation.
The requested adjustments would occur in two stages; an initial
reduction below the current level by approximately 9.10% for 2018,
followed by a reduction below the current level by approximately 4.55%
for 2019. The adjusted fees recommended for each bracket for 2018 and
2019 are shown in the analysis attached to the March 22 letter. The UCR
Plan has requested that the reduction for the 2018 registration year be
adopted not later than August 31, 2017, to enable the participating
States and the UCR Plan to reflect the new fees when fee collection for
the 2018 registration year begins on October 1, 2017.

VII. Discussion of Proposed Rulemaking

The Agency reviewed the UCR Plan's formal recommendation and
concluded that the UCR Plan's estimate of the total revenues received
by the end of 2017 may have been understated. In order to estimate the
revenue collections for the 2016 registration year, the UCR Plan's
recommendation looks across years to find the minimum amount collected
in each month, and then sums the minimum from each month to develop the
total minimum projection. This method ignores the relationship between
each month's registrations within a given registration year. Within
each registration year there is a set number of carriers that would
register; therefore, the number of registrations in each month is
related to the number of registrations in previous months. FMCSA
believes that using the proposed method artificially reduces the total
minimum projection, thereby increasing the fees charged. This
understatement would result in slightly higher fees for certain
brackets.
FMCSA conducted its own analysis, adjusted the methodology for
projecting collections for the 2016 registration year, and updated the
fees accordingly. FMCSA estimated the minimum projection of revenue
collections for March through December of 2017 by summing the
collections within each registration year (2013-2015) and then compared
across years to find the minimum total amount. FMCSA projected that for
the 2016 registration year, the minimum revenue collection for March
through December of 2017 when the collection period would end would be
$1,035,305, which is $55,000 more than the Plan's projection of
$980,139. Ultimately, the slightly higher minimum projection then
results in a slightly lower fee for certain brackets. Where it exists,
the resulting fee difference between the Plan's method and FMCSA's
method is minimal.

VIII. Section-by-Section Analysis

For this NPRM, FMCSA proposes that the provisions of 49 CFR 367.30
will be revised to apply to registration years 2010 to 2017, inclusive.
A proposed new 49 CFR 367.40 establishes the reduced fees for
registration year 2018. A second proposed new section, 49 CFR 367.50,
establishes fees for 2019, which will remain in effect in subsequent
registration years unless and until revised in the future.

IX. Regulatory Analyses

A. E.O. 12866 (Regulatory Planning and Review and DOT Regulatory
Policies and Procedures as Supplemented by E.O. 13563)

This proposed rule is not a significant regulatory action under
section 3(f) of Executive Order (E.O.) 12866, (58 FR 51735, October 4,
1993), Regulatory Planning and Review, as supplemented by E.O. 13563
(76 FR 3821, January 21, 2011), Improving Regulation and Regulatory
Review, and 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) and does not require an
assessment of potential costs and benefits under section 6(a)(4) of
that Order. The Office of Management and Budget has not reviewed it
under that Order.
The changes proposed by this rule would adjust the registration
fees paid by motor carriers, motor private carriers of property,
brokers, freight forwarders, and leasing companies to the UCR Plan

[[Page 44147]]

and the participating States. 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 adjustments in the annual registration
fees for the UCR Plan and Agreement. The total amount targeted for
collection by the UCR Plan will not change as a result of this rule,
but the fees paid, or transfers, per affected entity will be reduced.
The primary entities affected by this rule are the participating
States, motor carriers, motor private carriers of property, brokers,
freight forwarders, and leasing companies. Because the total amount
collected will continue to be the statutory maximum, the participating
States will 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 will range from approximately $7 to
$6,700 per entity in the first year, and from approximately $3 to
$3,400 per entity in subsequent years, depending on the number of
vehicles owned and/or operated by the affected entities.

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

E.O. 13771 requires that for ``every one new [E.O. 13771 regulatory
action] issued, at least two prior regulations be identified for
elimination, and that the cost of planned regulations be prudently
managed and controlled through a budgeting process.'' \2\
Implementation guidance for E.O. 13771 issued by the Office of
Management and Budget (OMB) on April 5, 2017, defines two different
types of E.O. 13771 actions: an E.O. 13771 deregulatory action, and an
E.O. 13771 regulatory action.\3\
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\2\ Executive Office of the President. Executive Order 13771 of
January 30, 2017. Reducing Regulation and Controlling Regulatory
Costs. 82 FR 9339-9341. February 3, 2017.
\3\ Executive Office of the President. Office of Management and
Budget. Guidance Implementing Executive Order 13771, Titled
``Reducing Regulation and Controlling Regulatory Costs.'' Memorandum
M-17-21. April 5, 2017.
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An E.O. 13771 deregulatory action is defined as ``an action that
has been finalized and has total costs less than zero.'' This
rulemaking does not have total costs less than zero, and therefore is
not an E.O. 13771 deregulatory action.
An E.O. 13771 regulatory action is defined as:
(i) A significant action as defined in Section 3(f) of E.O. 12866
that has been finalized, and that imposes total costs greater than
zero; or
(ii) a significant guidance document (e.g., significant
interpretive guidance) reviewed by Office of Information and Regulatory
Affairs under the procedures of E.O. 12866 that has been finalized and
that imposes total costs greater than zero.
The Agency action, in this case a rulemaking, must meet both the
significance and the total cost criteria to be considered an E.O. 13771
regulatory action. This rulemaking is not a significant regulatory
action as defined in Section 3(f) of E.O. 12866, and therefore does not
meet the significance criterion for being an E.O. 13771 regulatory
action. Consequently, this rulemaking is not an E.O. 13771 regulatory
action and no further action under E.O. 13771 is required.

C. Regulatory Flexibility Act (Small Entities)

The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) as
amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (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. \4\ 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.
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\4\ Regulatory Flexibility Act (5 U.S.C. 601 et seq.) see
National Archives at http://www.archives.gov/federal-register/laws/regulaotry-flexibility/601.html.
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This proposed rule will 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 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 nor 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 (SBA) 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 \5\ 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 SBA revenue
threshold of $27.5 million and $15 million, respectively. Therefore,
FMCSA has determined that this rule will impact a substantial number of
small entities.
---------------------------------------------------------------------------

\5\ 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
April 27th, 20217).
---------------------------------------------------------------------------

However, FMCSA has determined that this rule will not have a
significant impact on the affected entities. The effect of this rule
will 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 $7 to $6,700 per entity, in the first year, and from
approximately $3 to $3,400 per entity in subsequent years, depending on
the number of vehicles owned and/or operated by the affected entities.
FMCSA asserts that the reduction in fees will be entirely beneficial to
these entities, and will not have a significant impact on the affected
small entities. Accordingly, I hereby 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 Small Business Regulatory
Enforcement Fairness Act of 1996, 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

[[Page 44148]]

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 $155 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
Executive Order 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 (PIA) of a regulation that will affect the
privacy of individuals. This rule does not require the collection of
personally identifiable information (PII).
The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies
and any non-Federal agency which receives records contained in a system
of records from a Federal agency for use in a matching program.
The E-Government Act of 2002, Public Law 107-347, Sec. 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.
As a result, 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 (NTTAA) (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.

[[Page 44149]]

P. Environment (NEPA, CAA, Environmental Justice)

FMCSA analyzed this NPRM for the purpose of the National
Environmental Policy Act of 1969 (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 the
regulations 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
for inspection or copying in the regulations.gov Web site listed under
ADDRESSES.
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 does not affect direct or indirect emissions of
criteria pollutants.
Under E.O. 12898, 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.

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. 367.30 to read as follows:

Sec. 367.30 Fees under the Unified Carrier Registration Plan and
Agreement for registration years beginning in 2010 and ending in 2017.

Fees Under the Unified Carrier Registration Plan and Agreement for Each Registration Year 2010-2017
----------------------------------------------------------------------------------------------------------------
Fee per entity for
Number of commercial motor exempt or non-
vehicles owned or operated by exempt motor Fee per entity for
Bracket exempt or non-exempt motor carrier, motor broker or leasing
carrier, motor private private carrier, or company
carrier, or freight forwarder freight forwarder
----------------------------------------------------------------------------------------------------------------
B1.................................. 0-2........................... $76 $76
B2.................................. 3-5........................... 227 ....................
B3.................................. 6-20.......................... 452 ....................
B4.................................. 21-100........................ 1,576 ....................
B5.................................. 101-1,000..................... 7,511 ....................
B6.................................. 1,001 and above............... 73,346 ....................
----------------------------------------------------------------------------------------------------------------

0
3. Add new Sec. 367.40 and Sec. 367.50 to subpart B to read as
follows:

Sec. 367.40 Fees under the Unified Carrier Registration Plan and
Agreement for registration year 2018.

Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year 2018
----------------------------------------------------------------------------------------------------------------
Fee per entity for
Number of commercial motor exempt or non-
vehicles owned or operated by exempt motor Fee per entity for
Bracket exempt or non-exempt motor carrier, motor broker or leasing
carrier, motor private private carrier, or company
carrier, or freight forwarder freight forwarder
----------------------------------------------------------------------------------------------------------------
B1.................................. 0-2........................... $69 $69
B2.................................. 3-5........................... 206 ....................
B3.................................. 6-20.......................... 410 ....................
B4.................................. 21-100........................ 1,431 ....................
B5.................................. 101-1,000..................... 6,820 ....................
B6.................................. 1,001 and above............... 66,597 ....................
----------------------------------------------------------------------------------------------------------------

Sec. 367.50 Fees under the Unified Carrier Registration Plan and
Agreement for registration years beginning in 2019.

[[Page 44150]]

Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year 2019 and Each Subsequent
Registration Year Thereafter
----------------------------------------------------------------------------------------------------------------
Fee per entity for
Number of commercial motor exempt or non-
vehicles owned or operated by exempt motor Fee per entity for
Bracket exempt or non-exempt motor carrier, motor broker or leasing
carrier, motor private private carrier, or company
carrier, or freight forwarder freight forwarder
----------------------------------------------------------------------------------------------------------------
B1.................................. 0-2........................... $73 $73
B2.................................. 3-5........................... 217 ....................
B3.................................. 6-20.......................... 431 ....................
B4.................................. 21-100........................ 1,503 ....................
B5.................................. 101-1,000..................... 7,165 ....................
B6.................................. 1,001 and above............... 69,971 ....................
----------------------------------------------------------------------------------------------------------------

Issued under authority delegated in 49 CFR 1.87 on: September
14, 2017.
Daphne Y. Jefferson,
Deputy Administrator.
[FR Doc. 2017-20079 Filed 9-20-17; 8:45 am]
BILLING CODE 4910-EX-P