Quarterly Rail Cost Adjustment Factor, 59093-59095 [2013-23338]

Download as PDF mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 78, No. 186 / Wednesday, September 25, 2013 / Notices certified by their original manufacturer (Alpina), as conforming to all applicable FMVSS, they cannot be categorized as ‘‘substantially similar’’ to the vehicle that is the subject of the petition at issue for the purpose of establishing import eligibility for that vehicle under 49 U.S.C. 30141(a)(1)(A). Therefore, the agency will consider 101 Innovation’s petition as a petition pursuant to 49 U.S.C. 30141(a)(1)(B). 101 Innovations submitted information with its petition intended to demonstrate that non-U.S. certified 1988–1996 Alpina B10 passenger cars, as originally manufactured, conform to many FMVSS. Specifically, the petitioner claims that non-U.S. certified 1988–1996 Alpina B10 passenger cars, as originally manufactured, conform to: Standard Nos. 102 Transmission Shift Lever Sequence, Starter Interlock, and Transmission Braking Effect, 103 Windshield Defrosting and Defogging Systems, 104 Windshield Wiping and Washing Systems, 105 Hydraulic and Electric Brake Systems, 106 Brake Hoses, 107 Reflective Surfaces, 109 New Pneumatic Tires, 113 Hood Latch System, 116 Motor Vehicle Brake Fluids, 124 Accelerator Control Systems, 201 Occupant Protection in Interior Impact, 202 Head Restraints, 204 Steering Control Rearward Displacement, 205 Glazing Materials, 206 Door Locks and Door Retention Components, 207 Seating Systems, 210 Seat Belt Assembly Anchorages, 211 Wheel Nuts, Wheel Disks, and Hub Caps, 212 Windshield Mounting, 214 Side Impact Protection, 216 Roof Crush Resistance, 219 Windshield Zone Intrusion, 301 Fuel System Integrity, and 302 Flammability of Interior Materials. The petitioner also contends that the vehicles are capable of being readily altered to meet the following standards, in the manner indicated: Standard No. 101 Controls and Displays: replacement of the instrument cluster with components from the U.S.model BMW E34 5-series and reprogramming the vehicle computer to operate the necessary safety systems. Standard No. 108 Lamps, Reflective Devices, and Associated Equipment: replacement of the headlamps and front and rear marker lights with components from the U.S.-model BMW E34 5-series, and installation of the high-mounted stop light assembly from the U.S.-model BMW E34 5-series. Standard No. 110 Tire Selection and Rims for Motor Vehicles with a GVWR of 4,536 kilograms (10,000 pounds) or Less: installation of a tire information placard. Standard No. 111 Rearview Mirrors: replacement of the passenger side VerDate Mar<15>2010 17:20 Sep 24, 2013 Jkt 229001 rearview mirror with a component from the U.S.-model BMW E34 5-series or inscription of the required warning statement on the face of that mirror. Standard No. 114 Theft Protection and Rollaway Prevention: activation of occupant warning chime by reprogramming vehicle modules and inspection and replacement of ignition switch with component from the U.S.model BMW E34 5-series if necessary to incorporate key detection micro switch. Standard No. 115 Vehicle Identification Number: installation of a VIN plate near the left windshield pillar. Standard No. 118 Power-operated Window, Partition, and Roof Panel Systems: inspection of early models of these vehicles for remote activation devices that exceed the distance limitations of this standard. Systems not conforming to this standard will be disabled to achieve conformity. Standard No. 208 Occupant Crash Protection: installation of airbag system components from the U.S.-model BMW E34 5-series as necessary. Installation of driver and/or passenger knee bolsters that conform to the requirements of this standard. Standard No. 209 Seat Belt Assemblies: inspection of seat belt assemblies and replacement of any nonconforming components with U.S.model BMW E34 5-series components. Authority: 49 U.S.C. 30141(a)(1)(A), (a)(1)(B), and (b)(1); 49 CFR 593.7; delegation of authority at 49 CFR 1.95 and 501.8. Claude H. Harris, Director, Office of Vehicle Safety Compliance. [FR Doc. 2013–23358 Filed 9–24–13; 8:45 am] BILLING CODE 4910–59–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. EP 290 (Sub-No. 5) (2013–4)] Quarterly Rail Cost Adjustment Factor AGENCY: Surface Transportation Board, DOT ACTION: Approval of rail cost adjustment factor. The Board has approved the fourth quarter 2013 rail cost adjustment factor (RCAF) and cost index filed by the Association of American Railroads. The fourth quarter 2013 RCAF (Unadjusted) is 0.975. The fourth quarter 2013 RCAF (Adjusted) is 0.423. The fourth quarter 2012 RCAF–5 is 0.399. SUMMARY: DATES: PO 00000 Effective Date: October 1, 2013. Frm 00103 Fmt 4703 Sfmt 4703 59093 FOR FURTHER INFORMATION CONTACT: Pedro Ramirez, (202) 245–0333. Federal Information Relay Service (FIRS) for the hearing impaired: (800) 877–8339. SUPPLEMENTARY INFORMATION: In Railroad Cost Recovery Procedures, 1 I.C.C. 2d 207 (1984), the Interstate Commerce Commission (ICC) outlined the procedures for calculating the allinclusive index of railroad input prices and the method for computing the rail cost adjustment factor (RCAF). Under the procedures, the Association of American Railroads (AAR) is required to calculate the index on a quarterly basis and submit it to the agency on the fifth day of the last month of each calendar quarter. In Railroad Cost Recovery Procedures—Productivity Adjustment, 5 I.C.C. 2d 434 (1989), aff’d sub nom. Edison Electric Institute v. ICC, 969 F.2d 1221 (D.C. Cir. 1992), the ICC adopted procedures that require the adjustment of the quarterly index for a measure of productivity. The provisions of 49 U.S.C. 10708 direct the Surface Transportation Board (Board) to continue to publish both an unadjusted RCAF and a productivityadjusted RCAF. In Productivity Adjustment—Implementation, 1 S.T.B. 739 (1996), the Board decided to publish a second productivity-adjusted RCAF called the RCAF–5. Consequently, three indices are now filed with the Board: the RCAF (Unadjusted); the RCAF (Adjusted); and the RCAF–5. The RCAF (Unadjusted) is an index reflecting cost changes experienced by the railroad industry, without reference to changes in rail productivity. The RCAF (Adjusted) is an index that reflects national average productivity changes as originally developed and applied by the ICC, the calculation of which is currently based on a 5-year moving average. The RCAF– 5 is an index that also reflects national average productivity changes; however, those productivity changes are calculated as if a 5-year moving average had been applied consistently from the productivity adjustment’s inception in 1989. The index of railroad input prices, RCAF (Unadjusted), RCAF (Adjusted), and RCAF–5 for the fourth quarter of 2013 are shown in Table A of the Appendix to this decision. Table B shows the second quarter 2013 index and the RCAF calculated on both an actual and a forecasted basis. The difference between the actual calculation and the forecasted calculation is the forecast error adjustment. The weights for each major cost component of the all-inclusive cost E:\FR\FM\25SEN1.SGM 25SEN1 59094 Federal Register / Vol. 78, No. 186 / Wednesday, September 25, 2013 / Notices index, on which the RCAF is based, are updated annually in order to reflect the changing mix of index components. See 49 U.S.C. 10708. This includes rebenchmarking the wages and supplemental rates used in the labor index in the fourth quarter of each year. The weights used by AAR are based on the distribution of railway expenses for the year 2012. Similarly, AAR has used wage and supplemental rates for the year 2012 to calculate hourly labor rates that reflect the changing mix of employees. In a decision served July 25, 2013,1 the Board directed BNSF Railway Company (BNSF) to refile its R–1 report for 2010, 2011, and 2012, 60 days after the decision’s August 24, 2013 effective date (October 23, 2013). In July 2013, Union Pacific Railroad Company (UP) submitted to the Board its own revised R–1 Schedules 210 and 510 for the years 2010, 2011, and 2012, to correct certain errors, yet AAR notes that it used only the corrected data from 2012 to calculate the new weights and interest index herein because BNSF’s data were not yet available. This is not, however, our preferred approach, which is to use all available data to generate the most accurate calculation at any given time. While BNSF’s anticipated R–1 resubmission may require further adjustments to the RCAF calculation, all known errors in the relevant data should have been addressed in the current filing. However, the Board understands that its publication of the RCAF figures in a timely fashion is important to a number of interested parties, and hence, in this instance, the Board will rely on the AAR for this calculation. While AAR states that it plans to examine the changes to all indexes once it has BNSF’s revisions, AAR is directed to use all the data available to it at the time it submits its quarterly calculations. Therefore, we will direct AAR to make the adjustment for the UP 2010, 2011, and 2012 interest expense restatement, to the extent not already made, in its next quarterly submission.2 We have examined AAR’s calculations, including its reweighting and rebenchmarking calculations, and we find that AAR has complied with our procedures with respect to the available data for 2012. We find that the fourth quarter 2013 RCAF (Unadjusted) is 0.975, a decrease of 0.2% from the third quarter 2013 RCAF of 0.977. The RCAF (Adjusted) is calculated, in part, using the RCAF (Unadjusted) and a 5year moving geometric average of productivity change for U.S. Class I railroads from 2007–2011, which is 1.009 (0.9% per year). We find the RCAF (Adjusted) is 0.423, a decrease of 0.5% from the previously reported third quarter 2013 RCAF (Adjusted) of 0.425.3 In accordance with Productivity Adjustment—Implementation, 1 S.T.B. at 748–49, the RCAF–5 for this quarter will use a productivity trend for the years 2006–2010, which is 1.008 (0.8% per year). We find the RCAF–5 for the fourth quarter of 2013 is 0.399, a decrease of 0.5% from the previously reported third quarter 2013 RCAF–5 of 0.401.4 This decision will not significantly affect the quality of the human environment or the conservation of energy resources. Authority: 49 U.S.C. 10708. By the Board, Chairman Elliott, Vice Chairman Begeman, and Commisioner Mulvey. Decided: September 19, 2013. Derrick A. Gardner, Clearance Clerk. Appendix TABLE A—EP 290 (SUB-NO. 5) (2013–4)—ALL INCLUSIVE INDEX OF RAILROAD INPUT COSTS [Endnotes following Table B] Line No. Index component 2012 Weight (percent) 1 ............. 2 ............. 3 ............. 4 ............. 5 ............. 6 ............. 7 ............. 8 ............. 9 ............. 10 ........... 11 ........... 12 ........... 13 ........... 14 ........... LABOR ................................................................................................................. FUEL .................................................................................................................... MATERIALS AND SUPPLIES ............................................................................. EQUIPMENT RENTS .......................................................................................... DEPRECIATION .................................................................................................. INTEREST ........................................................................................................... OTHER ITEMS i ................................................................................................... WEIGHTED AVERAGE ....................................................................................... LINKED INDEX ii .................................................................................................. PRELIMINARY RAIL COST ADJUSTMENT FACTOR iii .................................... FORECAST ERROR ADJUSTMENT iv ............................................................... RCAF (UNADJUSTED) (LINE 10 + LINE 11) ..................................................... RCAF (ADJUSTED) ............................................................................................ RCAF–5 ............................................................................................................... Third quarter 2013 forecast 31.2 22.4 4.9 5.6 12.1 1.9 21.9 100.0 ........................ ........................ ........................ ........................ ........................ ........................ 390.4 375.6 264.2 208.0 218.9 92.9 221.4 307.3 294.3 98.9 ¥0.012 0.977 0.425 0.401 Fourth quarter 2013 forecast 385.8 399.6 261.4 207.7 221.0 73.5 220.0 310.6 297.5 100.0 ¥0.025 0.975 0.423 0.399 TABLE B—EP 290 (SUB-NO. 5) (2013–4)—COMPARISON OF SECOND QUARTER 2013 INDEX CALCULATED ON BOTH A FORECASTED AND AN ACTUAL BASIS 2011 Weight (percent) mstockstill on DSK4VPTVN1PROD with NOTICES Line No. Index component 1 ............. LABOR .................................................................................................................... 1 Western Coal Traffic League—Petition for Declaratory Order, FD 35506, slip op. at 2. 2 Interested parties may submit a petition for reconsideration to propose alternative approaches for addressing the need to correct for restated data while awaiting further modifications. 3 The fourth quarter 2013 RCAF Adjusted (0.423) is calculated by dividing the fourth quarter 2013 VerDate Mar<15>2010 17:20 Sep 24, 2013 Jkt 229001 RCAF Unadjusted (0.975) by the fourth quarter productivity adjustment factor of 2.3059. The fourth quarter 2013 productivity adjustment factor is calculated by multiplying the third quarter 2013 productivity adjustment of 2.3008 by the fourth root (1.0022) of the 2007–2011 annual average productivity growth rate of 0.9%. PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 31.3 Second quarter 2013 forecast 384.9 Second quarter 2013 actual 384.9 4 The fourth quarter 2013 RCAF–5 (0.399) is calculated by dividing the fourth quarter 2013 RCAF Unadjusted (0.975) by the fourth quarter productivity adjustment factor-5 (PAF–5) of 2.4426. The fourth quarter 2013 PAF–5 is calculated by multiplying the third quarter 2013 PAF–5 of 2.4377 by the fourth root (1.0020) of the 2006–2010 annual average productivity growth rate of 0.8%. E:\FR\FM\25SEN1.SGM 25SEN1 Federal Register / Vol. 78, No. 186 / Wednesday, September 25, 2013 / Notices 59095 TABLE B—EP 290 (SUB-NO. 5) (2013–4)—COMPARISON OF SECOND QUARTER 2013 INDEX CALCULATED ON BOTH A FORECASTED AND AN ACTUAL BASIS—Continued Line No. Index component 2011 Weight (percent) 2 ............. 3 ............. 4 ............. 5 ............. 6 ............. 7 ............. 8 ............. 9 ............. 10 ........... FUEL ....................................................................................................................... MATERIALS AND SUPPLIES ................................................................................ EQUIPMENT RENTS .............................................................................................. DEPRECIATION ..................................................................................................... INTEREST ............................................................................................................... OTHER ITEMS ........................................................................................................ WEIGHTED AVERAGE .......................................................................................... LINKED INDEX ....................................................................................................... RAIL COST ADJUSTMENT FACTOR .................................................................... 22.5 5.1 5.6 11.6 2.5 21.4 100.0 ........................ ........................ i ‘‘Other Items’’ is a combination of Purchased Services, Casualties and Insurance, General and Administrative, Other iii The first quarter 2013 RCAF was rebased using the October 1, 2012 level of 297.5 in accordance with the requirements of the Staggers Rail Act of 1980 (10/1/2012 = 100). iv The fourth quarter 2013 forecast error adjustment was calculated as follows: (a) Second quarter 2013 RCAF using forecasted data equals 100.3; (b) second quarter 2013 RCAF using actual data equals 97.8; (c) the difference equals the forecast error (b ¥ a) of ¥2.5. Because the actual second quarter value is less than the forecast value, the difference is subtracted from the Preliminary RCAF. [FR Doc. 2013–23338 Filed 9–24–13; 8:45 a.m.] BILLING CODE 4915–01–P DEPARTMENT OF THE TREASURY mstockstill on DSK4VPTVN1PROD with NOTICES Office of the Comptroller of the Currency Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Guidance on Sound Incentive Compensation Practices Office of the Comptroller of the Currency (OCC), Treasury. ACTION: Notice and request for comment. AGENCY: The OCC, as part of its continuing effort to reduce paperwork SUMMARY: VerDate Mar<15>2010 17:20 Sep 24, 2013 Jkt 229001 404.3 261.0 206.9 219.6 92.9 220.2 311.3 298.5 100.3 Second quarter 2013 actual 373.1 261.0 207.0 218.8 92.9 219.4 304.0 290.9 97.8 Taxes, Loss and Damage, and Special Charges, price changes for all of which are measured by the Producer Price Index for Industrial Commodities Less Fuel and Related Products and Power. ii Linking is necessitated by a change to the 2012 weights beginning in the fourth quarter of 2013. The following formula was used for the current quarter’s index: and respondent burden, invites the general public and other Federal agencies to comment on the renewal of an information collection, as required by the Paperwork Reduction Act of 1995 (PRA). An agency may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is soliciting comment concerning renewal of an information collection titled, ‘‘Guidance on Sound Incentive Compensation Practices.’’ The OCC is also giving notice that it has sent the collection to OMB for review. DATES: Written comments should be submitted by October 25, 2013. ADDRESSES: Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email if possible. Comments may be sent to: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Attention: 1557–0245, 400 7th Street SW., Suite 3E–218, Mail Stop 9W–11, Washington, DC 20219. In addition, comments may be sent by fax to (571) 465–4326 or by electronic mail to regs.comments@occ.treas.gov. You may personally inspect and photocopy comments at the OCC, 400 7th Street SW., Washington, DC 20219. For security reasons, the OCC requires that visitors make an appointment to inspect comments. You may do so by calling (202) 649–6700. Upon arrival, visitors will be required to present valid government-issued photo identification and to submit to security screening in order to inspect and photocopy comments. All comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not enclose any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. Additionally, please send a copy of your comments by mail to: OCC Desk Officer, 1557–0245, U.S. Office of Management and Budget, 725 17th Street NW., #10235, Washington, DC 20503, or by email to: oira submission@omb.eop.gov. FOR FURTHER INFORMATION CONTACT: You can request additional information or a copy of the collection from Johnny Vilela or Mary H. Gottlieb, OCC Clearance Officers, (202) 649–5490, Legislative and Regulatory Activities PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 E:\FR\FM\25SEN1.SGM 25SEN1 EN25SE13.001</GPH> Endnotes: Second quarter 2013 forecast

Agencies

[Federal Register Volume 78, Number 186 (Wednesday, September 25, 2013)]
[Notices]
[Pages 59093-59095]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23338]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. EP 290 (Sub-No. 5) (2013-4)]


Quarterly Rail Cost Adjustment Factor

AGENCY: Surface Transportation Board, DOT

ACTION: Approval of rail cost adjustment factor.

-----------------------------------------------------------------------

SUMMARY: The Board has approved the fourth quarter 2013 rail cost 
adjustment factor (RCAF) and cost index filed by the Association of 
American Railroads. The fourth quarter 2013 RCAF (Unadjusted) is 0.975. 
The fourth quarter 2013 RCAF (Adjusted) is 0.423. The fourth quarter 
2012 RCAF-5 is 0.399.

DATES: Effective Date: October 1, 2013.

FOR FURTHER INFORMATION CONTACT: Pedro Ramirez, (202) 245-0333. Federal 
Information Relay Service (FIRS) for the hearing impaired: (800) 877-
8339.

SUPPLEMENTARY INFORMATION: In Railroad Cost Recovery Procedures, 1 
I.C.C. 2d 207 (1984), the Interstate Commerce Commission (ICC) outlined 
the procedures for calculating the all-inclusive index of railroad 
input prices and the method for computing the rail cost adjustment 
factor (RCAF). Under the procedures, the Association of American 
Railroads (AAR) is required to calculate the index on a quarterly basis 
and submit it to the agency on the fifth day of the last month of each 
calendar quarter. In Railroad Cost Recovery Procedures--Productivity 
Adjustment, 5 I.C.C. 2d 434 (1989), aff'd sub nom. Edison Electric 
Institute v. ICC, 969 F.2d 1221 (D.C. Cir. 1992), the ICC adopted 
procedures that require the adjustment of the quarterly index for a 
measure of productivity.
    The provisions of 49 U.S.C. 10708 direct the Surface Transportation 
Board (Board) to continue to publish both an unadjusted RCAF and a 
productivity-adjusted RCAF. In Productivity Adjustment--Implementation, 
1 S.T.B. 739 (1996), the Board decided to publish a second 
productivity-adjusted RCAF called the RCAF-5. Consequently, three 
indices are now filed with the Board: the RCAF (Unadjusted); the RCAF 
(Adjusted); and the RCAF-5. The RCAF (Unadjusted) is an index 
reflecting cost changes experienced by the railroad industry, without 
reference to changes in rail productivity. The RCAF (Adjusted) is an 
index that reflects national average productivity changes as originally 
developed and applied by the ICC, the calculation of which is currently 
based on a 5-year moving average. The RCAF-5 is an index that also 
reflects national average productivity changes; however, those 
productivity changes are calculated as if a 5-year moving average had 
been applied consistently from the productivity adjustment's inception 
in 1989.
    The index of railroad input prices, RCAF (Unadjusted), RCAF 
(Adjusted), and RCAF-5 for the fourth quarter of 2013 are shown in 
Table A of the Appendix to this decision. Table B shows the second 
quarter 2013 index and the RCAF calculated on both an actual and a 
forecasted basis. The difference between the actual calculation and the 
forecasted calculation is the forecast error adjustment.
    The weights for each major cost component of the all-inclusive cost

[[Page 59094]]

index, on which the RCAF is based, are updated annually in order to 
reflect the changing mix of index components. See 49 U.S.C. 10708. This 
includes rebenchmarking the wages and supplemental rates used in the 
labor index in the fourth quarter of each year. The weights used by AAR 
are based on the distribution of railway expenses for the year 2012. 
Similarly, AAR has used wage and supplemental rates for the year 2012 
to calculate hourly labor rates that reflect the changing mix of 
employees.
    In a decision served July 25, 2013,\1\ the Board directed BNSF 
Railway Company (BNSF) to refile its R-1 report for 2010, 2011, and 
2012, 60 days after the decision's August 24, 2013 effective date 
(October 23, 2013). In July 2013, Union Pacific Railroad Company (UP) 
submitted to the Board its own revised R-1 Schedules 210 and 510 for 
the years 2010, 2011, and 2012, to correct certain errors, yet AAR 
notes that it used only the corrected data from 2012 to calculate the 
new weights and interest index herein because BNSF's data were not yet 
available. This is not, however, our preferred approach, which is to 
use all available data to generate the most accurate calculation at any 
given time. While BNSF's anticipated R-1 resubmission may require 
further adjustments to the RCAF calculation, all known errors in the 
relevant data should have been addressed in the current filing. 
However, the Board understands that its publication of the RCAF figures 
in a timely fashion is important to a number of interested parties, and 
hence, in this instance, the Board will rely on the AAR for this 
calculation. While AAR states that it plans to examine the changes to 
all indexes once it has BNSF's revisions, AAR is directed to use all 
the data available to it at the time it submits its quarterly 
calculations. Therefore, we will direct AAR to make the adjustment for 
the UP 2010, 2011, and 2012 interest expense restatement, to the extent 
not already made, in its next quarterly submission.\2\
---------------------------------------------------------------------------

    \1\ Western Coal Traffic League--Petition for Declaratory Order, 
FD 35506, slip op. at 2.
    \2\ Interested parties may submit a petition for reconsideration 
to propose alternative approaches for addressing the need to correct 
for restated data while awaiting further modifications.
---------------------------------------------------------------------------

    We have examined AAR's calculations, including its reweighting and 
rebenchmarking calculations, and we find that AAR has complied with our 
procedures with respect to the available data for 2012. We find that 
the fourth quarter 2013 RCAF (Unadjusted) is 0.975, a decrease of 0.2% 
from the third quarter 2013 RCAF of 0.977. The RCAF (Adjusted) is 
calculated, in part, using the RCAF (Unadjusted) and a 5-year moving 
geometric average of productivity change for U.S. Class I railroads 
from 2007-2011, which is 1.009 (0.9% per year). We find the RCAF 
(Adjusted) is 0.423, a decrease of 0.5% from the previously reported 
third quarter 2013 RCAF (Adjusted) of 0.425.\3\
---------------------------------------------------------------------------

    \3\ The fourth quarter 2013 RCAF Adjusted (0.423) is calculated 
by dividing the fourth quarter 2013 RCAF Unadjusted (0.975) by the 
fourth quarter productivity adjustment factor of 2.3059. The fourth 
quarter 2013 productivity adjustment factor is calculated by 
multiplying the third quarter 2013 productivity adjustment of 2.3008 
by the fourth root (1.0022) of the 2007-2011 annual average 
productivity growth rate of 0.9%.
---------------------------------------------------------------------------

    In accordance with Productivity Adjustment--Implementation, 1 
S.T.B. at 748-49, the RCAF-5 for this quarter will use a productivity 
trend for the years 2006-2010, which is 1.008 (0.8% per year). We find 
the RCAF-5 for the fourth quarter of 2013 is 0.399, a decrease of 0.5% 
from the previously reported third quarter 2013 RCAF-5 of 0.401.\4\
---------------------------------------------------------------------------

    \4\ The fourth quarter 2013 RCAF-5 (0.399) is calculated by 
dividing the fourth quarter 2013 RCAF Unadjusted (0.975) by the 
fourth quarter productivity adjustment factor-5 (PAF-5) of 2.4426. 
The fourth quarter 2013 PAF-5 is calculated by multiplying the third 
quarter 2013 PAF-5 of 2.4377 by the fourth root (1.0020) of the 
2006-2010 annual average productivity growth rate of 0.8%.
---------------------------------------------------------------------------

    This decision will not significantly affect the quality of the 
human environment or the conservation of energy resources.

    Authority: 49 U.S.C. 10708.

    By the Board, Chairman Elliott, Vice Chairman Begeman, and 
Commisioner Mulvey.

    Decided: September 19, 2013.
Derrick A. Gardner,
Clearance Clerk.

Appendix

                Table A--EP 290 (Sub-No. 5) (2013-4)--All Inclusive Index of Railroad Input Costs
                                          [Endnotes following Table B]
----------------------------------------------------------------------------------------------------------------
                                                                    2012 Weight    Third quarter  Fourth quarter
           Line No.                      Index component             (percent)     2013 forecast   2013 forecast
----------------------------------------------------------------------------------------------------------------
1.............................  LABOR...........................            31.2         390.4           385.8
2.............................  FUEL............................            22.4         375.6           399.6
3.............................  MATERIALS AND SUPPLIES..........             4.9         264.2           261.4
4.............................  EQUIPMENT RENTS.................             5.6         208.0           207.7
5.............................  DEPRECIATION....................            12.1         218.9           221.0
6.............................  INTEREST........................             1.9          92.9            73.5
7.............................  OTHER ITEMS \i\.................            21.9         221.4           220.0
8.............................  WEIGHTED AVERAGE................           100.0         307.3           310.6
9.............................  LINKED INDEX \ii\...............  ..............         294.3           297.5
10............................  PRELIMINARY RAIL COST ADJUSTMENT  ..............          98.9           100.0
                                 FACTOR \iii\.
11............................  FORECAST ERROR ADJUSTMENT \iv\..  ..............          -0.012          -0.025
12............................  RCAF (UNADJUSTED) (LINE 10 +      ..............           0.977           0.975
                                 LINE 11).
13............................  RCAF (ADJUSTED).................  ..............           0.425           0.423
14............................  RCAF-5..........................  ..............           0.401           0.399
----------------------------------------------------------------------------------------------------------------


  Table B--EP 290 (Sub-No. 5) (2013-4)--Comparison of Second Quarter 2013 Index Calculated on Both a Forecasted
                                               and an Actual Basis
----------------------------------------------------------------------------------------------------------------
                                                                    2011 Weight   Second quarter  Second quarter
           Line No.                      Index component             (percent)     2013 forecast    2013 actual
----------------------------------------------------------------------------------------------------------------
1.............................  LABOR...........................            31.3           384.9           384.9

[[Page 59095]]

 
2.............................  FUEL............................            22.5           404.3           373.1
3.............................  MATERIALS AND SUPPLIES..........             5.1           261.0           261.0
4.............................  EQUIPMENT RENTS.................             5.6           206.9           207.0
5.............................  DEPRECIATION....................            11.6           219.6           218.8
6.............................  INTEREST........................             2.5            92.9            92.9
7.............................  OTHER ITEMS.....................            21.4           220.2           219.4
8.............................  WEIGHTED AVERAGE................           100.0           311.3           304.0
9.............................  LINKED INDEX....................  ..............           298.5           290.9
10............................  RAIL COST ADJUSTMENT FACTOR.....  ..............           100.3            97.8
----------------------------------------------------------------------------------------------------------------

Endnotes:

    \i\ ``Other Items'' is a combination of Purchased Services, 
Casualties and Insurance, General and Administrative, Other Taxes, 
Loss and Damage, and Special Charges, price changes for all of which 
are measured by the Producer Price Index for Industrial Commodities 
Less Fuel and Related Products and Power.
    \ii\ Linking is necessitated by a change to the 2012 weights 
beginning in the fourth quarter of 2013. The following formula was 
used for the current quarter's index:
[GRAPHIC] [TIFF OMITTED] TN25SE13.001

    \iii\ The first quarter 2013 RCAF was rebased using the October 
1, 2012 level of 297.5 in accordance with the requirements of the 
Staggers Rail Act of 1980 (10/1/2012 = 100).
    \iv\ The fourth quarter 2013 forecast error adjustment was 
calculated as follows: (a) Second quarter 2013 RCAF using forecasted 
data equals 100.3; (b) second quarter 2013 RCAF using actual data 
equals 97.8; (c) the difference equals the forecast error (b - a) of 
-2.5. Because the actual second quarter value is less than the 
forecast value, the difference is subtracted from the Preliminary 
RCAF.

[FR Doc. 2013-23338 Filed 9-24-13; 8:45 a.m.]
BILLING CODE 4915-01-P