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Uniform Procedures for State Highway Safety Grant Programs Publication: Federal Register Agency: National Highway Traffic Safety Administration Byline: Sophie Shulman Date: 15 July 2024 Subjects: American Government  , Roads & Highways, Safety
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[Federal Register Volume 89, Number 135 (Monday, July 15, 2024)]
[Rules and Regulations]
[Pages 57355-57357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15289]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
23 CFR Part 1300
RIN 2127-AM65
Uniform Procedures for State Highway Safety Grant Programs
AGENCY: National Highway Traffic Safety Administration (NHTSA), U.S.
Department of Transportation (DOT).
ACTION: Final rule.
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SUMMARY: This final rule amends the definition of ``equipment'' to
conform with OMB's government-wide Guidance for Federal Financial
Assistance affecting Federal grants.
DATES: This final rule is effective on October 1, 2024.
ADDRESSES: This document may be viewed online through the Federal
eRulemaking portal at www.regulations.gov using the RIN number listed
above. Electronic retrieval help and guidelines are available on the
website. It is available 24 hours each day, 365 days each year. An
electronic copy of this document may be downloaded by accessing the
Office of the Federal Register's website at: www.federalregister.gov
and the U.S. Government Publishing Office's website at:
www.GovInfo.gov.
FOR FURTHER INFORMATION CONTACT:
Program issues: Barbara Sauers, Associate Administrator, Regional
Operations and Program Delivery, National Highway Traffic Safety
Administration; Telephone number: (202) 366-0144; Email:
barbara.sauers@dot.gov.
Legal issues: Megan Brown, Attorney-Advisor, Office of the Chief
Counsel, National Highway Traffic Safety Administration, 1200 New
Jersey Avenue SE, Washington, DC 20590; Telephone number: (202) 366-
1834; Email: megan.brown@dot.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Technical Amendment Increasing Monetary Threshold for Equipment
III. Waiver of Notice and Comment
IV. Regulatory Analyses and Notices
I. Background
On February 6, 2023, NHTSA published in the Federal Register a
final rule titled Uniform Procedures for State Highway Safety Grant
Programs. 88 FR 7780 (Feb. 6, 2023). NHTSA promulgated this final rule
in accordance with the Infrastructure Investment and Jobs Act (IIJA,
also known as the Bipartisan Infrastructure Law or BIL), signed into
law on November 15, 2021 (Pub. L. 117-58).
On April 22, 2024, after conducting notice and comment rulemaking,
the Office of Management and Budget (OMB) published in the Federal
Register revisions to its Guidance for Federal Financial Assistance,
including the Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (``Uniform Administrative
Requirements''). 89 FR 30046 (Apr. 22, 2024). OMB is tasked with
providing guidance to Federal agencies to ensure consistent and
efficient use of Federal financial assistance and to provide direction
and leadership to Federal agencies on Federal financial assistance
requirements. In its final rule, OMB increased the monetary threshold
for ``equipment'' in 2 CFR 200.1 from $5,000 to $10,000: This increase
in the monetary threshold affects the application of several OMB
requirements, including 2 CFR 200.313(e), which provides additional
regulatory requirements relating to use, management and disposition of
equipment acquired under a Federal award, and 2 CFR 200.439(b)(2),
which provides rules of allowability for equipment. DOT adopts the
Uniform Administrative Requirements via 2 CFR part 1201.
The regulation implementing NHTSA's State highway safety grant
program lays out requirements related to ``equipment'' in 23 CFR
1300.31(d) specific to the NHTSA's grant program. Among other things,
23 CFR 1300.31(d) requires States to seek prior written approval from
the Regional Administrator before purchasing or disposing of equipment,
unless the to-be-disposed-of equipment ``exceeded its useful life''
under State law. 23 CFR 1300.31(d) uses a $5,000 monetary threshold to
define ``equipment,'' matching the prior OMB rules.
II. Technical Amendment Increasing Monetary Threshold for Equipment
In this rule, effective for fiscal year 2025 grants, NHTSA makes a
technical amendment to update the monetary threshold for equipment in
NHTSA's Uniform Procedures for State highway safety grant programs from
$5,000 to $10,000 in 23 CFR 1300.31(d) to conform with the updated OMB
rules. As a result of this threshold increase, States will no longer
have to seek pre-approval to purchase or dispose of equipment between
$5,000 and $9,999.99. In addition, States will no longer have to apply
the heightened rules for use and management of equipment for items that
fall under $10,000. States should be aware, however, that they must
continue to meet all State rules for equipment, as defined by the
State. This rule will become effective on October 1, 2024, and will
apply to fiscal year 2025 State highway safety grants and later.
III. Waiver of Notice and Comment
NHTSA concludes that it has good cause to issue without notice and
comment this technical amendment
[[Page 57356]]
under 5 U.S.C. 553(b)(B). 5 U.S.C. 553(b)(B) provides that when an
agency, for good cause, finds that notice and public comment are
impractical, unnecessary, or contrary to the public interest, the
agency may issue a final rule without providing notice and an
opportunity for public comment.
NHTSA makes this technical amendment to conform with the revisions
published in OMB's final rule after OMB received and analyzed public
comment. By issuing this technical amendment, NHTSA establishes
consistency with OMB's rules and avoids confusion for State recipients
of NHTSA's State highway safety grant programs as they prepare their
fiscal year 2025 annual grant applications due August 2024.
Since NHTSA is issuing this technical amendment to conform with
OMB's updated definition, providing notice and an opportunity for
public comment is impracticable and unnecessary.
III. Regulatory Analyses and Notices
A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), E.O.
13563 (Improving Regulation and Regulatory Review), and DOT Regulatory
Policies and Procedures
NHTSA has considered the impact of this rulemaking action under
E.O. 12866 (as amended by E.O. 14094), E.O. 13563, and DOT's regulatory
policies and procedures. This rulemaking document was not reviewed
under E.O. 12866 or E.O. 13563. This action is not expected to impose
any costs because it makes a limited revision that will lessen
administrative burden under the State highway safety grant program.
This rulemaking has been determined to be not ``significant'' under
DOT's regulatory policies and procedures and the policies of OMB.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) of 1980 (5 U.S.C. 601 et seq.)
requires agencies to evaluate the potential effects of their proposed
and final rules on small businesses, small organizations, and small
governmental jurisdictions. Section 605 of the RFA allows agencies to
certify a rule, in lieu of preparing an analysis, if the proposed
rulemaking is not expected to have a significant economic impact on a
substantial number of small entities. The Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub. L. 104-21, 110 Stat. 857)
amended the RFA to require Federal agencies to provide a statement of
the factual basis for certifying that an action would not have a
significant economic impact on a substantial number of small entities.
This final rule makes a limited revision to the uniform procedures
implementing State highway safety grant programs, which were previously
determined not to have a significant impact on a substantial number of
small entities. The grant programs impacted by this rule will affect
only State governments, which are not considered to be small entities
as that term is defined by the RFA. Therefore, NHTSA certifies that
this action will not have a significant impact on a substantial number
of small entities and finds that preparing a Regulatory Flexibility
Analysis is unnecessary.
C. Executive Order 13132 (Federalism)
E.O. 13132 on ``Federalism'' requires NHTSA to develop an
accountable process to ensure ``meaningful and timely input by State
and local officials in the development of regulatory policies that have
federalism implications.'' 64 FR 43255 (August 10, 1999). ``Policies
that have federalism implications'' are defined in the E.O. to include
regulations that have ``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.'' Under E.O. 13132, an agency may not issue a regulation
with federalism implications that imposes substantial direct compliance
costs not required by statute unless the Federal Government provides
the funds necessary to pay the direct compliance costs incurred by
State and local governments or the agency consults with the State and
local government in the process of developing the proposed regulation.
An agency also may not issue a regulation with federalism implications
that preempts a State law without consulting with State and local
officials.
NHTSA analyzed this rulemaking action in accordance with the
principles and criteria set forth in E.O. 13132. The limited revision
made by this rulemaking will decrease administrative burden for State
recipients by updating the highway safety grant program's definition of
``equipment'' to conform with the updated OMB government-wide guidance
for Federal financial assistance. Therefore, NHTSA determines that this
technical amendment would not have sufficient federalism implications
as defined in the Order to warrant formal consultation with State and
local officials or preparation of a federalism summary impact
statement.
D. Executive Order 12988 (Civil Justice Reform)
Pursuant to E.O. 12988 (61 FR 4729 (February 7, 1996)), ``Civil
Justice Reform,'' the agency has considered whether this rule would
have any retroactive effect. I conclude that it would not have any
retroactive or preemptive effect, and judicial review it may be
obtained pursuant to 5 U.S.C. 702. That section does not require that a
petition for reconsideration be filed prior to seeking judicial review.
This action 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.
E. Paperwork Reduction Act
Under the procedures established by the Paperwork Reduction Act of
1995, codified at 44 U.S.C. 3501 et seq., a person is not required to
respond to a collection of information by a Federal agency unless the
collection displays a valid OMB control number. This rulemaking does
not establish any new information collection requirements.
F. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act (UMRA) of 1995 (Pub. L. 104-4)
requires agencies to prepare a written assessment of the costs,
benefits, and other effects of proposed or final rules that include a
Federal mandate likely to result in expenditures by State, local, or
Tribal governments, in the aggregate, or by the private sector, of more
than $100 million annually (adjusted annually for inflation with the
base year of 1995). This rulemaking would not meet the definition of a
Federal mandate because the resulting annual State expenditures will
not exceed the minimum threshold; instead, this rulemaking will likely
decrease administrative costs for States. Further, this rulemaking
action updates NHTSA's State highway safety grant program, a voluntary
program and States that choose to apply and qualify would receive grant
funds.
G. National Environmental Policy Act
NHTSA has analyzed the impacts of this rulemaking action under the
National Environmental Policy Act (NEPA), codified at 42 U.S.C. 4321 et
seq. NHTSA determines that this rulemaking would not have a significant
impact on the quality of the human environment.
[[Page 57357]]
H. Executive Order 13211 (Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use)
E.O. 13211 applies to any rulemaking that is: (1) determined to be
economically significant under E.O. 12866, and likely to have a
significant adverse effect on the supply, distribution, or use of
energy; or (2) designated by the Administrator of the Office of
Information and Regulatory Affairs as a significant energy action. 66
FR 28355 (May 18, 2001). This rulemaking is not likely to have a
significant adverse effect on the supply of, distribution of, or use of
energy. This rulemaking has not been designated as a significant energy
action. Accordingly, this rulemaking is not subject to E.O. 13211.
I. Executive Order 13175 (Consultation and Coordination With Indian
Tribes)
NHTSA has analyzed this rulemaking under E.O. 13175 and determined
that it would not have a substantial direct effect on one or more
Indian Tribes, would not impose substantial direct compliance costs on
Indian Tribal governments, and would not preempt Tribal law. Therefore,
a Tribal summary impact statement is not required.
J. Privacy Act
Please note that anyone can search the electronic form of all
comments received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (65 FR 19477). For additional information on DOT's
compliance with the Privacy Act, please visit https://www.transportation.gov/privacy.
List of Subjects in 23 CFR Part 1300
Administrative practice and procedure, Alcohol abuse, Drug abuse,
Grant programs--transportation, Highway safety, Intergovernmental
relations, Motor vehicles--motorcycles, Reporting and recordkeeping
requirements.
For the reasons stated in the preamble, under the authority of 23
U.S.C. 401 et seq., the NHTSA amends 23 CFR part 1300 as follows:
PART 1300--UNIFORM PROCEDURES FOR STATE HIGHWAY SAFETY GRANT
PROGRAMS
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1. The authority citation for part 1300 continues to read as follows:
Authority: 23 U.S.C. 402; 23 U.S.C. 405; Sec. 1906, Pub. L. 109-
59, 119 Stat. 1468, as amended by Sec. 25024, Pub. L. 117-58, 135
Stat. 879; delegation of authority at 49 CFR 1.95.
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2. Amend Sec. 1300.31 by revising paragraph (d) introductory text to
read as follows:
Sec. 1300.31 Equipment.
* * * * *
(d) Major purchases and dispositions. Equipment with a useful life
of more than one year and an acquisition cost of $10,000 or more shall
be subject to the following requirements:
* * * * *
Issued in Washington, DC, under authority delegated in 49 CFR
1.81 and 1.95 and 49 CFR 501.5.
Sophie Shulman,
Deputy Administrator.
[FR Doc. 2024-15289 Filed 7-12-24; 8:45 am]
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