Fees for the Unified Carrier Registration Plan and Agreement Publication: Federal Register Agency: Federal Motor Carrier Safety Administration Byline: Robin Hutcheson Date: 22 June 2023 Subjects: American Government , Trucking Topic: Unified Carrier Registration Plan |
[Federal Register Volume 88, Number 119 (Thursday, June 22, 2023)] [Rules and Regulations] [Pages 40719-40724] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2023-13204] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety Administration 49 CFR Part 367 [Docket No. FMCSA-2023-0008] RIN 2126-AC62 Fees for the Unified Carrier Registration Plan and Agreement AGENCY: Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: FMCSA amends the regulations for 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 2024 registration year and subsequent registration years. The fees for the 2024 registration year are approximately 9 percent less than the fees for the 2023 registration year, with varying reductions between $4 and $3,453 per entity, depending on the applicable fee bracket. DATES: Effective July 24, 2023. Petitions for Reconsideration of this final rule must be submitted to the FMCSA Administrator no later than July 24, 2023. FOR FURTHER INFORMATION CONTACT: Mr. Kenneth Riddle, Director, Office of Registration and Safety Information, FMCSA, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, FMCSAMCRS@dot.gov. If you have questions on viewing or submitting material to the docket, call Dockets Operations at (202) 366-9826. SUPPLEMENTARY INFORMATION: I. Availability of Rulemaking Documents To view any documents mentioned as being available in the docket, go to https://www.regulations.gov/docket/FMCSA-2023-0008/document and choose the document to review. To view comments, click this final rule, then click ``Browse Comments.'' If you do not have access to the internet, you may view the docket online by visiting Docket Operations at U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m., [[Page 40720]] Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Docket Operations. II. Executive Summary A. Purpose and Summary of the Regulatory Action Under 49 U.S.C. 14504a, the UCR Plan and the 41 States participating in the UCR Agreement 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 Plan 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 49 U.S.C. 14504a(d)(7) and (f)(1)(E)(ii), the UCR Plan Board provides fee adjustment recommendations to the Secretary when revenue collections result in a shortfall or surplus from the amount authorized by statute. If there are excess funds after payments to the States and for administrative costs, they are retained in the UCR Plan's depository, and fees in subsequent fee years must be reduced as required by 49 U.S.C. 14504a(h)(4). These two distinct provisions each contribute to the fee adjustment in this final rule, which reduces by approximately 9 percent the annual registration fees established pursuant to the UCR Agreement for the 2024 registration year and subsequent years. B. Costs and Benefits The changes in this final rule 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 or other covered entity might 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 APA Administrative Procedure Act CBI Confidential Business Information CE Categorical Exclusion CFR Code of Federal Regulations CMV Commercial Motor Vehicle DOT Department of Transportation E.O. Executive Order FMCSA Federal Motor Carrier Safety Administration FR Federal Register NAICS North American Industry Classification System NPRM Notice of Proposed Rulemaking OMB Office of Management and Budget PIA Privacy Impact Assessment PTA Privacy Threshold Assessment RFA Regulatory Flexibility Act SBA Small Business Administration SBREFA Small Business Regulatory Enforcement Fairness Act of 1996 Secretary Secretary of Transportation UCR Unified Carrier Registration UMRA Unfunded Mandates Reform Act U.S.C. United States Code IV. Legal Basis for the Rulemaking This rulemaking adjusts the annual registration fees required by the UCR Agreement established by 49 U.S.C. 14504a. The fee adjustments are authorized by 49 U.S.C. 14504a because the total revenues collected for previous registration years exceed the maximum annual revenue entitlements of $107,777,060 distributed to the 41 participating States plus the amount established for administrative costs associated with the UCR Plan and Agreement. The UCR Plan Board submitted the requested adjustments in accordance with 49 U.S.C. 14504a(f)(1)(E)(ii), which provides for the UCR Plan Board to request an adjustment by the Secretary of Transportation (the Secretary) when the annual revenues exceed the maximum allowed. In addition, 49 U.S.C. 14504a(h)(4) states that any excess funds from previous registration years held by the UCR Plan in its depository, after distribution to the States and for payment of administrative costs, shall be retained and the fees charged shall be reduced by the Secretary accordingly, (49 U.S.C. 14504a(h)(4)). The UCR Plan Board must also obtain DOT approval to revise the total revenue to be collected, in accordance with 49 U.S.C. 14504a(d)(7). This rulemaking also approves the UCR Plan Board's requested increase in the portion of total revenues to be collected during the 2024 registration year to provide funds for the anticipated increased costs of administering the UCR Agreement. The increase in the administrative cost allowance is $250,000 (to a total of $4,250,000), which when added to the established State revenue allocation of $107,777,060, results in a total revenue to be collected of $112,027,060. Nonetheless, this slight increase is more than offset by the need to recognize excess collections from previous registration years, so that the result is a decrease in the fees recommended and approved. No changes in the revenue allocations to the participating States under 49 U.S.C. 14504a(g)(1) were recommended by the UCR Plan Board, nor would they be authorized by this rulemaking. 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. Discussion of Proposed Rule and Final Rule A. Proposed Rule On March 16, 2023, FMCSA published in the Federal Register (Docket No. FMCSA-2023-0008, 88 FR 16207) an NPRM titled ``Fees for the Unified Carrier Registration Plan and Agreement.'' The NPRM proposed amending regulations for the annual registration fees States collect from motor carriers, motor private carriers of property, brokers, freight forwarders, and leasing companies for the UCR Plan and Agreement for the 2024 registration year and subsequent registration years. The fees for the 2024 registration year were proposed to be reduced below the fees for 2023 by approximately 9 percent overall, with varying reductions between $4 and $3,453 per entity, depending on the applicable fee bracket. The UCR Plan's recommendation states that it anticipates recommending an upward adjustment in the fees for the 2025 registration year to comply with the statutory provisions, which will require further rulemaking action. B. Comments FMCSA solicited comments concerning the NPRM for 30 days ending April 17, 2023. No comments were submitted. C. Final Rule As FMCSA received no comments on the proposal for reducing the fees for the 2024 registration year, FMCSA finalizes the proposed reduction in this final rule without modification. VI. Section-by-Section As proposed in the NPRM, FMCSA revises 49 CFR 367.30 (which was adopted in a 2022 final rule (87 FR 53680 (Sep. 1, 2022)) so that the fees in that section apply to registration year 2023 only. A new Sec. 367.40 establishes new reduced fees applicable beginning in registration year 2024, based on the recommendation submitted by the UCR Plan Board in its November 18, 2022, [[Page 40721]] Fee Recommendation that is in the docket. The fees in new Sec. 367.40 would remain in effect for subsequent registration years after 2024 unless revised by a future rulemaking. VII. Regulatory Analyses A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), E.O. 13563 (Improving Regulation and Regulatory Review), E.O. 14094 (Modernizing Regulatory Review), and DOT Regulatory Policies and Procedures FMCSA has considered the impact of this final rule under E.O. 12866 (58 FR 51735, Oct. 4, 1993), Regulatory Planning and Review, E.O. 13563 (76 FR 3821, Jan. 21, 2011), Improving Regulation and Regulatory Review, E.O. 14094 (88 FR 21879, Apr. 11, 2023), Modernizing Regulatory Review, and DOT's regulatory policies and procedures. The Office of Information and Regulatory Affairs within the Office of Management and Budget (OMB) determined that this final rulemaking is not a significant regulatory action under section 3(f) of E.O. 12866, as supplemented by E.O. 13563 and amended by E.O. 14094, and does not require an assessment of potential costs and benefits under section 6(a)(3) of that order. Accordingly, OMB has not reviewed it under that E.O. This rule will 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 will 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 establishes 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 entitlements will remain unchanged, the participating States will not be impacted by this rule. The primary impact of this rule will be a reduction in fees paid by individual motor carriers, motor private carriers of property, brokers, freight forwarders, and leasing companies. The reduction in fees for the 2024 registration year from the current 2023 registration year fees (approved on September 1, 2022) is approximately 9 percent, ranging from $4 to $3,453 per entity, depending on the number of vehicles owned or operated by the affected entities. B. Congressional Review Act This rule is not a major rule as defined under the Congressional Review Act (5 U.S.C. 801-808).\1\ --------------------------------------------------------------------------- \1\ A major rule means any rule that OMB finds has resulted in or is likely to result in (a) an annual effect on the economy of $100 million or more; (b) a major increase in costs or prices for consumers, individual industries, geographic regions, Federal, State, or local government agencies; or (c) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets (5 U.S.C. 804(2)). --------------------------------------------------------------------------- C. Regulatory Flexibility Act (Small Entities) The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 \2\ 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. --------------------------------------------------------------------------- \2\ Public Law 104-121, 110 Stat. 857, (Mar. 29, 1996). --------------------------------------------------------------------------- This 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 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 (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 impacts a significant number of small entities, FMCSA examined the 2012 and 2017 Economic Census data for two different North American Industry Classification System (NAICS) subsectors: Truck Transportation (subsector 484) and Transit and Ground Transportation (subsector 485). As shown in the table below, the SBA size standards for the national industries under the Truck Transportation and Transit and Ground Transportation subsectors range from $19.0 million to $43.0 million in revenue per year. To determine the percentage of firms that have revenue at or below SBA's thresholds within each of the NAICS national industries, FMCSA examined data from the 2017 Economic Census.\3\ In instances where 2017 data were suppressed, the Agency imputed 2017 levels using data from the 2012 Economic Census.\4\ Boundaries for the revenue categories used in the Economic Census do not exactly coincide with the SBA thresholds. Instead, the SBA threshold generally falls between two different revenue categories. However, FMCSA was able to make reasonable estimates as to the percentage of small entities within each NAICS code. --------------------------------------------------------------------------- \3\ U.S. Census Bureau. 2017 Economic Census. Table EC1700SIZEEMPFIRM--Selected Sectors: Employment Size of Firms for the U.S.: 2017. Available at https://www.census.gov/data/tables/2017/econ/economic-census/naics-sector-48-49.html (accessed Apr. 25, 2023). \4\ U.S. Census Bureau. 2012 Economic Census. Table EC1248SSSZ4--Transportation and Warehousing: Subject Series--Estab & Firm Size: Summary Statistics by Revenue Size of Firms for the U.S.: 2012 Available at https://www.census.gov/data/tables/2012/econ/census/transportation-warehousing.html (accessed Apr. 25, 2023). --------------------------------------------------------------------------- The percentages of small entities with annual revenue less than the SBA's threshold ranged from 96.3 percent to 100 percent. Specifically, approximately 96.3 percent of Specialized Freight (except Used Goods) Trucking, Long Distance (484230) firms had annual revenue less than the SBA's revenue threshold of $34.0 million and would be considered small entities. FMCSA estimates 100 percent of firms in the Mixed Mode Transit Systems (485111) national industry had annual revenue less than $29.0 million and would be considered small entities. The table below shows the complete estimates of the number of small entities within the national industries that may be affected by this rule. [[Page 40722]] Estimates of Number of Small Entities ---------------------------------------------------------------------------------------------------------------- SBA size NAICS code Description standard in Total number Number of Percent of all millions of firms small entities firms ---------------------------------------------------------------------------------------------------------------- 484110.................. General Freight $34.0 22,066 21,950 99.5 Trucking, Local. 484121.................. General Freight 34.0 23,557 23,045 97.8 Trucking, Long Distance, Truckload. 484122.................. General Freight 43.0 3,138 3,050 97.2 Trucking, Long Distance, Less Than Truckload. 484210.................. Used Household and 34.0 6,097 6,041 99.1 Office Goods Moving. 484220.................. Specialized Freight 34.0 22,797 22,631 99.3 (except Used Goods) Trucking, Local. 484230.................. Specialized Freight 34.0 7,310 7,042 96.3 (except Used Goods) Trucking, Long Distance. 485111.................. Mixed Mode Transit 29.0 25 25 100.0 Systems. 485113.................. Bus and Other Motor 32.5 318 308 96.9 Vehicle Transit Systems. 485210.................. Interurban and Rural 32.0 309 302 97.7 Bus Transportation. 485320.................. Limousine Service..... 19.0 3,706 3,694 99.7 485410.................. School and Employee 30.0 2,279 2,226 97.7 Bus Transportation. 485510.................. Charter Bus Industry.. 19.0 1,031 1,013 98.3 485991.................. Special Needs 19.0 2,592 2,567 99.1 Transportation. 485999.................. All Other Transit and 19.0 1,071 1,059 98.9 Ground Passenger Transportation. ---------------------------------------------------------------------------------------------------------------- Therefore, FMCSA has determined that this rule impacts a substantial number of small entities. However, FMCSA has determined that this rule will not have a significant impact on the affected entities. The effect of this rule is 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 be approximately 9 percent, ranging from $4 to $3,453 per entity, depending on the number of vehicles owned and/or operated by the affected entities. While the RFA does not define a threshold for determining whether a specific regulation results in a significant impact, the SBA, in guidance to government agencies, provides some objective measures of significance that the agencies can consider using. One measure that could be used to illustrate a significant impact is labor costs; specifically, whether the cost of the regulation exceeds 1 percent of the average annual revenues of small entities in the sector. Given that entities owning between 0 and 2 CMVs will experience an average reduction of $4, a small entity would need to have average annual revenue of less than $400 to experience an impact greater than 1 percent of average annual revenue. This is an average annual revenue that is smaller than would be required for a firm to support one employee. The reduced fee amount and impact on revenue increase linearly depending on the applicable fee bracket. Consequently, I certify that this action 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 (Pub. L. 104-121, 110 Stat. 857), FMCSA wants to assist small entities in understanding this final rule so they can better evaluate its effects on themselves and participate in the rulemaking initiative. If the final rule will affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please consult the person listed under FOR FURTHER INFORMATION CONTACT. 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 (Office of the National Ombudsman, see https://www.sba.gov/about-sba/oversight-advocacy/office-national-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) (UMRA) requires Federal agencies to assess the effects of their discretionary regulatory actions. 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 $178 million (which is the value equivalent of $100 million in 1995, adjusted for inflation to 2021 levels) or more in any 1 year. Though this final rule would not result in such an expenditure, and the analytical requirements of UMRA do not apply as a result, the Agency discusses the effects of this rule in sections VII. A. and VII. C. of this analysis. F. Paperwork Reduction Act This final rule contains no new information collection requirements 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 has determined that this rule will 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. Privacy The Consolidated Appropriations Act, 2005,\5\ requires the Agency to assess the privacy impact of a regulation that will affect the privacy of individuals. This [[Page 40723]] rule would not require the collection of personally identifiable information (PII). The supporting Privacy Impact Analysis (PIA), available for review in the docket, gives a full and complete explanation of FMCSA practices for protecting PII in general and specifically in relation to this final rule. --------------------------------------------------------------------------- \5\ Public Law 108-447, 118 Stat. 2809, 3268, note following 5 U.S.C. 552a (Dec. 4, 2014). --------------------------------------------------------------------------- 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. The E- Government Act of 2002,\6\ requires Federal agencies to conduct a PIA for new or substantially changed technology that collects, maintains, or disseminates information in an identifiable form. No new or substantially changed technology will collect, maintain, or disseminate information as a result of this rule. Accordingly, FMCSA has not conducted a PIA. --------------------------------------------------------------------------- \6\ Public Law 107-347, sec. 208, 116 Stat. 2899, 2921 (Dec. 17, 2002). --------------------------------------------------------------------------- In addition, the Agency submitted a Privacy Threshold Assessment (PTA) to evaluate the risks and effects the proposed rulemaking might have on collecting, storing, and sharing personally identifiable information. The DOT Privacy Office has determined that this rulemaking does not create privacy risk. I. E.O. 13175 (Indian Tribal Governments) This 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. J. National Environmental Policy Act of 1969 FMCSA analyzed this rule pursuant to 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), Appendix 2, 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. List of Subjects in 49 CFR Part 367 Intergovernmental relations, Motor carriers, Brokers, Freight Forwarders. Accordingly, FMCSA amends title 49 CFR, subtitle B, chapter III, part 367 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 Year 2023. Table 1 to Sec. 367.30--Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year 2023 ------------------------------------------------------------------------ Number of commercial motor vehicles owned or Fee per entity operated by for exempt or non- exempt or non- exempt motor Fee per entity Bracket exempt motor carrier, motor for broker or carrier, motor private carrier, leasing company private or freight carrier, or forwarder freight forwarder ------------------------------------------------------------------------ B1............... 0-2............ $41 $41 B2............... 3-5............ 121 ................. B3............... 6-20........... 242 ................. B4............... 21-100......... 844 ................. B5............... 101-1,000...... 4,024 ................. B6............... 1,001 and above 39,289 ................. ------------------------------------------------------------------------ 0 3. Add Sec. 367.40 to read as follows: Sec. 367.40 Fees under the Unified Carrier Registration Plan and Agreement for Registration Years beginning in 2024 and each subsequent registration year thereafter. Table 1 to Sec. 367.40--Fees Under the Unified Carrier Registration Plan and Agreement for Registration Years Beginning in 2024 and Each Subsequent Registration Year Thereafter ---------------------------------------------------------------------------------------------------------------- Fee per entity Number of commercial motor for exempt or non- vehicles owned or operated by exempt motor Fee per entity Bracket exempt or non-exempt motor carrier, motor for broker or carrier, motor private private carrier, leasing company carrier, or freight forwarder or freight forwarder ---------------------------------------------------------------------------------------------------------------- B1......................................... 0-2.......................... $37 $37 B2......................................... 3-5.......................... 111 ................. B3......................................... 6-20......................... 221 ................. B4......................................... 21-100....................... 769 ................. B5......................................... 101-1,000.................... 3,670 ................. [[Page 40724]] B6......................................... 1,001 and above.............. 35,836 ................. ---------------------------------------------------------------------------------------------------------------- Issued under authority delegated in 49 CFR 1.87. Robin Hutcheson, Administrator. [FR Doc. 2023-13204 Filed 6-21-23; 8:45 am] BILLING CODE 4910-EX-P