Fees for the Unified Carrier Registration Plan and Agreement, 605-613 [2017-28509]
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Federal Register / Vol. 83, No. 4 / Friday, January 5, 2018 / Rules and Regulations
under the heading ‘‘Data Elements’’, the
words ‘‘Car rental, Taxis, Other’’ and
adding ‘‘Car rental, Taxi, TNC,
Innovative mobility technology
company, Other’’ in its place.
PART 302–1—GENERAL RULES
17. The authority citation for part
302–1 continues to read as follows:
■
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).
§ 302–1.102
■
[Removed]
18. Remove § 302–1.102.
PART 302–4—ALLOWANCES FOR
SUBSISTENCE AND
TRANSPORTATION
19. The authority citation for part
302–4 continues to read as follows:
■
Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a);
E.O. 11609, 36 FR 13747, 3 CFR, 1971–1973
Comp., p. 586.
§ 302–4.302
[Amended]
20. Amend § 302–4.302, by removing
from paragraph (b), ‘‘taxicab fares’’ and
adding ‘‘taxi or TNC fares, or the cost of
utilizing an innovative mobility
technology company,’’ in its place.
■
PART 304–2—DEFINITIONS
21. The authority citation for part
304–2 continues to read as follows:
■
Authority: 5 U.S.C. 5707; 31 U.S.C. 1353.
§ 304–2.1
[Amended]
22. Amend § 304–2.1, in the definition
‘‘Travel, subsistence, and related
expenses (travel expenses)’’, in the first
sentence, by removing ‘‘taxi fares’’ and
adding ‘‘taxi or TNC fares, or the cost of
utilizing an innovative mobility
technology company,’’ in its place.
■
[FR Doc. 2017–28503 Filed 1–4–18; 8:45 am]
BILLING CODE 6820–14–P
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
49 CFR Part 367
[Docket No. FMCSA–2017–0118]
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RIN 2126–AC03
Fees for the Unified Carrier
Registration Plan and Agreement
Federal Motor Carrier Safety
Administration (FMCSA), DOT.
ACTION: Final rule.
AGENCY:
This rule establishes
reductions in the annual registration
SUMMARY:
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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 will 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 and subsequent
years, the fees will 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: This final rule is effective
January 5, 2018.
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 or by telephone at 202–
385–2405.
SUPPLEMENTARY INFORMATION:
This Final Rule is organized as
follows:
I. Rulemaking Documents
A. Availability of Rulemaking Documents
B. Privacy Act
II. Abbreviations and Acronyms
III. Executive Summary
A. Purpose and Summary of the Major
Provisions
B. Benefits and Costs
IV. Legal Basis for the Rulemaking
V. Statutory Requirements for UCR Fees
A. Legislative History
B. Fee Requirements
VI. Background
Recommendation From the UCR Plan
VII. Discussion of the Comments
A. Small Business in Transportation
Coalition
B. Revenue Entitlement for the State of
Texas
C. Change Design of Fee Structure
D. Other Concerns
VIII. International Impacts
IX. Section-by-Section Analysis
X. Regulatory Analyses
A. Executive Order (E.O.) 12866
(Regulatory Planning and Review), E.O.
13563 (Improving Regulation and
Regulatory Review), and DOT Regulatory
Policies and Procedures
B. E.O. 13771 Reducing Regulation and
Controlling 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)
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605
K. Privacy Impact Assessment
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 (National Environmental
Policy Act, Clean Air Act, Environmental
Justice)
I. Rulemaking Documents
A. Availability of Rulemaking
Documents
For access to docket FMCSA–2017–
0118 to read background documents, go
to https://www.regulations.gov at any
time, or to Docket Services at U.S.
Department of Transportation, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays.
B. Privacy Act
In accordance with 5 U.S.C. 553(c),
the U.S. Department of Transportation
(DOT) solicits comments from the
public to better inform its rulemaking
process. DOT posts any 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
https://www.transportation.gov/privacy.
II. 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
FMCSA Federal Motor Carrier Safety
Administration
OMB Office of Management and Budget
OOIDA Owner-Operator Independent
Drivers Association
PRA Paperwork Reduction Act
RFA Regulatory Flexibility Act
SBA Small Business Administration
SBREFA Small Business Regulatory
Enforcement Fairness Act
SBTC Small Business in Transportation
Coalition
SSRS Single State Registration System
Texas DMV Texas Department of Motor
Vehicles
UCR Unified Carrier Registration
UCR Agreement Unified Carrier
Registration Agreement
UCR Plan Unified Carrier Registration Plan.
III. 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
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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. The statute sets a
statutory maximum amount that the
UCR Plan may collect. If annual
revenues will exceed the statutory
maximum allowed, then the UCR Plan
must request adjustments to the fees. 49
U.S.C. 14504a(f)(1)(E). Also, any excess
funds held by the UCR Plan after
payments are made to the States and for
administrative costs are retained in the
UCR depository and subsequent fees
charged are reduced as required by 49
U.S.C. 14504a(h)(4). Adjustments in the
fees are requested by the UCR Plan and
approved by FMCSA. These two
provisions are the reasons for the twostage adjustment adopted in this final
rule. The final rule provides 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 and the participating
States collect registration fees for each
registration year, which is the same
period as the calendar year. Generally,
collection begins on October 1st of the
previous year, and continues until
December 31st of the year following the
registration year. For example,
collection for the 2016 registration year
began on October 1, 2015, and will end
on December 31, 2017. Currently the
UCR Plan estimates that by December
31, 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 twostage process. For the 2018 registration
year, with collection beginning on
October 1, 2017 and ending December
31, 2019, 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 October 1, 2018 and
ending December 31, 2020, 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.
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B. Benefits and Costs
The changes imposed by this final
rule 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
societal costs and benefits of
rulemakings.
The UCR Plan’s formal
recommendation requested the
Secretary (delegated to FMCSA) to set
annual fees beginning in the registration
year 2018, as required by 49 U.S.C.
14504a(d)(7). FMCSA issued a notice of
proposed rulemaking proposing to
reduce the fees paid by motor carriers,
motor private carriers of property,
brokers, freight forwarders, and leasing
companies based on an analysis of
current collections and past trends. The
Agency reviewed the UCR Plan’s formal
recommendation prior to issuing the
NPRM and concluded that the UCR
Plan’s projection of the total revenues
received for registration year 2016 may
have been understated. 49 U.S.C.
14504a(d)(7). 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 slightly reduced from the
UCR Plan’s original formal
recommendation.
IV. Legal Basis for the Rulemaking
This rule adjusts 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 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
Board to request an adjustment by the
Secretary when the annual revenues
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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).
The APA also allows agencies to make
rules effective immediately with good
cause, instead of requiring publication
30 days prior to the effective date. 5
U.S.C. 553(d)(3). FMCSA finds there is
good cause for this rule to be effective
immediately so that the UCR Plan and
the participating States may begin
collection of fees immediately for the
registration year that will begin on
January 1, 2018. The immediate
commencement of fee collection will
avoid further delay in distributing
revenues to the participating States.
V. Statutory Requirements for the UCR
Fees
A. Legislative History
The Unified Carrier Registration Plan
is ‘‘the organization . . . responsible for
developing, implementing, and
administering the unified carrier
registration agreement.’’ 49 U.S.C.
14504a(a)(9). 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 49 U.S.C.
14504a 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 FMCSA
Deputy Administrator or another
Presidential appointee) from the
Department of Transportation; four
directors from among the chief
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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; 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. 49 U.S.C. 14504a(d)(1)(B).
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 Fees for the Unified
Registration Plan and Agreement, 75 FR
21993 (Apr. 27, 2010) (‘‘2010 Final
Rule’’) with Fees for Unified
Registration Plan and Agreement, 72 FR
48585 (Aug. 24, 2007) (‘‘2007 Final
Rule’’).
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).
Participating States submit a plan
demonstrating that an amount
equivalent to the revenues received are
used for motor carrier safety programs,
enforcement or the administration of the
UCR Plan and Agreement. 49 U.S.C.
14504a(e)(1)(B).
B. Fee Requirements
The statute specifies that fees are to be
based upon the recommendation of the
UCR Board, 49 U.S.C. 14504a(d)(7)(A).
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 Secretary, if asked by the Board,
may also adjust the fees within a
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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 State,
participating in SSRS in the registration
year prior to the enactment of the
Unified Carrier Registration Act of 2005
is entitled to receive revenues under the
UCR Agreement equivalent to the
revenues it received in the year before
that enactment. Participating States that
also collected intrastate registration fees
from interstate motor carrier entities
(whether 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 statute also
requires that States that did not
participate in SSRS previously, but that
choose to participate in the UCR Plan,
may receive revenues not to exceed
$500,000 per year. The Board calculates
the amount of revenue that each
participating State is entitled to under
the UCR Agreement which is then
approved by the Secretary.
FMCSA’s responsibilities under 49
U.S.C. 14504a in setting fees for the
UCR Plan and Agreement are guided by
the primacy the statute places on the
need both to set and to adjust the fees
so they ‘‘provide the revenues to which
the States are entitled.’’ The statute
links the requirement that the fees be
adjusted ‘‘within a reasonable range’’ by
both the UCR Plan and FMCSA 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)).
Additionally, section 14504a(h)(4)
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
Recommendation From the UCR Plan
On March 14, 2017, the Board voted
unanimously to submit a
recommendation to the Secretary for a
reduction of registration fees collected
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607
by the UCR Plan for 2018, with an
adjustment in fees in 2019 and
subsequent years. 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,
for the first time, exceeded 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 already established in
accordance with 49 U.S.C. 14504a(g),
are set out in the table attached to the
March 22, 2017 recommendation. These
revenue entitlements for the States are
the same as those that were approved in
the 2010 final rule (75 FR at 22008–9
and Table 5) that have continued in
effect for each of the eight registration
years from 2010 to 2017, inclusive.
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 $4.15 million more
than the statutory maximum of $112.78
million for 2016. 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).
Because of the collection of excess
revenue, the UCR Plan requested
adjustments to the fees in accordance
with 49 U.S.C. 14504a(f)(1)(E)(ii), which
requires the Board 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 twostage 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 to
account for the excess revenues already
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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collected in 2016, followed by a
reduction below the current level by
approximately 4.55% for 2019 and
subsequent years to keep future
revenues below the statutory maximum.
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
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 that began
on October 1, 2017.
VII. Discussion of the Comments
FMCSA received 7 comments on the
NPRM. Five commenters disagreed with
some aspect or another of the NPRM,
including the Texas Department of
Motor Vehicles (Texas DMV), OwnerOperator Independent Drivers
Association (OOIDA), Small Business in
Transportation Coalition (SBTC) and
two anonymous commenters. Two
additional anonymous commenters
agreed with the NPRM favoring the fee
reduction. The major comments
included a request to have the NPRM
withdrawn, as well as a
recommendation to have the UCR Board
submit a new recommendation to
implement the fee reduction with a new
2019 fee schedule and a request for
assurance that the State of Texas will be
able to collect all of the revenues to
which it is entitled. Also comments
addressed recommendations for
changing the current design of the fee
structure. Additional concerns included
the absence of consistent enforcement of
penalties, and the difficulty for small
businesses to realize benefits from the
mandated fees paid due to the existing
structure and administration of the
program.
A. Small Business in Transportation
Coalition
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Comments
The Small Business in Transportation
Coalition (SBTC) contended that the
NPRM published September 21, 2017, is
unlawful and should be withdrawn. It
contends that while the UCR Plan
notified the FMCSA of its
recommendation for a reduction in the
fees on March 22, 2017, the Agency
failed to set the new fees within the 90day period specified in the statute.
As a result of the lack of action within
90 days, SBTC asserts that on September
14, 2017, the Board held an ‘‘improperly
noticed secret meeting’’ that changed
the date for commencement of the
registration and payment of fees from
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October 1, 2017, to November 1, 2017.
SBTC claims that this action by the UCR
Plan thereby shortens the period for
carriers to comply with the UCR
requirement, even though the affected
registrants would then be paying a
reduced fee.
After the close of the comment period,
SBTC and a broker, 12 Percent Logistics,
Inc., brought a civil action in the United
States District Court for the District of
Columbia (Civil Action No 1:17–cv–
2000) in which they sought injunctive
relief to set aside the UCR Plan’s
postponement of the date for
commencement of registration and fee
payment. On October 18, the court
denied the request to set aside the
postponement of the registration period
but ordered the UCR Board and the
operator of its on-line registration
system (the Indiana Department of
Revenue) to post the draft minutes of a
September 14, 2017, meeting of the UCR
Board on their respective websites and
to make an announcement of these
postings at the Board’s October 26,
2017, meeting. The draft minutes of the
Board’s September 14, 2017 meeting
were posted on websites
www.ucrplan.org and www.ucr.in.gov/
ucrHome.html on October 20, 2017 and
October 24, 2017, respectively. The
Board announced the availability of the
draft minutes on these websites at its
October 26, 2017 meeting.
FMCSA Response
SBTC cites no authority for its
contention that FMCSA and the
Secretary no longer have the authority
to set new fees for 2018 because the
statutory deadline for such action of 90
days in 49 U.S.C. 14504a(d)(7) has not
been met. SBTC’s contention that
FMCSA ‘‘has missed its lawful
opportunity’’ to set the fees based on the
UCR Plan’s March 22 recommendation
is legally incorrect.
SBTC cannot point to any explicit
statement in the provisions of 49 U.S.C.
14504a that bars action by FMCSA
when the 90-day period is not met,
because there is none. In addition, there
are important public rights at stake that
would be affected if FMCSA lost its
power to act on the UCR Plan’s
recommendation, as contended by
SBTC. The fee reduction recommended
by the UCR Plan, proposed for
implementation in the NPRM and now
adopted in this final rule, is necessary
to comply with two important
provisions in the statute that require
compliance with the statutory
maximum amount of revenues to be
collected by the UCR Plan and the
participating States. 49 U.S.C.
14504a(f)(1)(E)(ii) and (h)(4). Instead of
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allowing SBTC’s members and the rest
of the motor carrier industry to benefit
as soon as possible from the reduction
in fees based on excess revenues that
the UCR Plan has already recognized
were collected for registration year
2016, SBTC’s request would have the
harmful effect of delaying the benefits of
the reduction until 2019.
FMCSA and the Secretary have not
lost the power to take action to
implement the reduction in fees for
2018 and later years because the Agency
did not complete such action within 90
days. SBTC’s request for withdrawal of
this rulemaking is therefore denied.
B. Revenue Entitlement for the State of
Texas
Comments
The Texas Department of Motor
Vehicles requested that FMCSA ‘‘take
the necessary steps to ensure that the
state of Texas receives the full amount
of UCR revenues to which Texas is
entitled under 49 U.S.C. 14504a(g)(1).’’
Texas DMV stated that after the State’s
move from the SSRS to the UCR Plan
and Agreement, it had not received the
amount of funds from the UCR Plan and
Agreement to which it believes it is
entitled. Since 2007, under the revenue
entitlement calculations submitted by
the UCR Plan to the Secretary and
FMCSA, the revenue entitlement for
Texas has been set at $2,718,628.06. 72
FR at 48588 and Table 1 (2007 Final
Rule) and 75 FR at 22008–9 and Table
5 (2010 Final Rule). Texas DMV now
claims that the State’s revenue
entitlement for every year since 2007
should have been set at $5,765,819.93,
representing a difference of
$3,047,191.87 for each registration year.
In total, Texas DMV claims that the
State did not receive revenues of
$33,519,110.57 for the years 2007 to
2017, inclusive.
Texas DMV now asks that the Agency
approve a revised annual revenue
entitlement for Texas of $5,765,819.93,
starting with the year 2018, and approve
the ‘‘shortage’’ amount of
$33,519,110.57 for the years 2007–2017.
Most significantly, for the purpose of
this rulemaking, Texas DMV asks the
Agency to revise the current fees
established in 49 CFR part 367 ‘‘as
necessary to ensure enough UCR fees
are collected to cover the full amount to
which Texas is entitled for years 2007
through 2017 and beyond.’’
FMCSA Response
The actions by the Agency that Texas
DMV requests would not only require
declining to implement the reduction in
fees requested by the UCR Plan, but
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taking two additional steps: (1) Revising
the approved revenue entitlement for
Texas; and (2) increasing the fees by an
uncertain but clearly substantial
amount, not only to provide revenues
for the new entitlement, but also to
cover eleven years of a claimed
‘‘shortage.’’ FMCSA does not have
authority under the provisions of 49
U.S.C. 14504a to take either of these
additional actions. Both the approval of
a revised revenue entitlement for Texas
and an adjustment of the fees to cover
both Texas’ claimed revised entitlement
and the ‘‘shortage’’ would require that a
recommendation be made to the
Secretary by the Board. Because no such
request has been made for either action,
FMCSA is without authority to take the
action requested by Texas. The fees are
based on the only set of revenue
entitlements submitted by the UCR Plan
to the Secretary, which were approved
in the 2010 final rule and which
includes a revenue entitlement of
$2,718,628.06 for Texas.
The statute has provisions in 49
U.S.C. 14504a(g)(1) to (3) governing how
the revenue entitlement for each
participating State should be
determined. Texas DMV asserts that the
Texas revenue entitlement should be
determined under paragraph (g)(1),
based on the revenues Texas received
during the calendar year 2004 under
SSRS. But the Texas DMV does not
explain how or why its revenue
entitlement under this provision should
be $5,765,819.93 for each year under the
UCR Agreement, instead of the
$2,718,628.06 that has been in effect
since 2007. It also does not explain why
it has waited more than 11 years to
assert that it is entitled to a larger
revenue entitlement.
Even if Texas DMV is correct that the
larger amount is appropriate under the
statute, it has failed to submit its claim
to the Board. The statute provides that
the amount of revenues generated under
the UCR Agreement to which a State is
entitled shall be calculated by the Board
and approved by the Secretary. 49
U.S.C. 14504a(g)(4). A revised
calculation of the Texas revenue
entitlement, which shows that it
complies with the statutory
requirements in section 14504a(g)(1),
has not been submitted to the Board for
its review and confirmation, and it has
not been submitted by the Board to
FMCSA for approval. FMCSA is without
authority to consider or approve a
revised revenue entitlement for Texas
unless and until a revised calculation is
submitted by the UCR Plan’s board of
directors.
The statute has similar provisions
governing adjustments in the fees. The
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Board may ask FMCSA to adjust the fees
within a reasonable range on an annual
basis if the revenues derived from the
fees are insufficient to provide the
revenues to which the States are
entitled. 49 U.S.C. 14504a(f)(1)(E)(i). No
request has been made by the Board to
adjust the fees in order to provide any
revenues to satisfy the claim by Texas
for a larger annual revenue entitlement
or to provide funds to make up the
‘‘shortage’’ Texas has supposedly
incurred for 11 years. The only request
before the Agency from the Board is the
reduction in fees submitted on March
22, 2017 after a unanimous vote of the
UCR Board. FMCSA is without
authority to consider or approve any
adjustment in the fees (other than the
one submitted on March 22) unless and
until the Board makes a
recommendation that would reflect the
effects of the revised revenue
entitlement claimed by Texas.
C. Change Design of Fee Structure
Comments
OOIDA stated that single-truck
operators or small fleet carriers
represented approximately 95% of the
motor carrier industry and that the
current fee structure is burdensome and
costly to its members due to the limited
resources they have in comparison to
larger competitors. OOIDA stated that
the inequalities are particularly noted
between and within the arbitrary
payment brackets in effect and proposed
that a standard flat fee per vehicle
should be considered to reduce inequity
amongst small, medium, and large
fleets. An anonymous commenter felt
that the current structure appears
punitive to companies who are on the
lower end of the tiered brackets that are
currently in effect. The commenter cited
the following examples in the current
fee structure in which by going from 100
power units to 101 power units or even
1000 power units to 1001 power units
companies would incur enormous
percentage fee increases for a single
power unit. The commenter
recommended that the fee should be
charged on a per unit basis. The per unit
fee recommendation was also supported
by another anonymous commenter.
FMCSA Response
Three commenters suggested
changing the UCR fees to a ‘‘per-unit’’
(i.e. on a per vehicle) basis. FMCSA has
not evaluated the merits of this
suggestion because it is not an
alternative available to the Agency. The
statute requires that the Board set the
fee structure based on 4 to 6 brackets
depending on the size of the fleet. 49
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609
U.S.C. 14504a(f)(1)(C). Implementing
the commenters’ ‘‘per unit’’ suggestion
would require a statutory amendment.
Unless and until that occurs, neither the
Board nor FMCSA has authority to
change the current fee structure using
brackets.
D. Other Concerns
Comments
OOIDA expressed other specific
concerns regarding the proposed rule
including the fact that smaller carriers
lack the resources to assist payment
processing and submission of
paperwork. OOIDA also expressed
concerns regarding the lack of
consistency among states in their use of
the fees for enforcement or
administration purposes. Overall,
OOIDA felt that the existing
organization and administration of the
UCR program makes it difficult for
small-business truckers and owneroperators to recognize any benefits from
the mandated fees they are expected to
pay. OOIDA recommended a federal
audit of the UCR plan to review how
states are actually spending UCR
revenues.
FMCSA Response
OOIDA’s concerns described above
are outside of the scope of this
rulemaking.
VIII. International Impacts
Motor carriers and other entities
involved in interstate and foreign
transportation in the United States that
do not have a principal office in the
United States, are nonetheless subject to
the fees for the UCR Plan. They are
required to designate a participating
State as a base State and pay the
appropriate fees to that State. 49 U.S.C.
14504a(a)(2)(B)(ii) and (f)(4).
IX. Section-by-Section Analysis
Under this final rule, the provisions of
49 CFR 367.30 are revised to apply to
registration years 2010 to 2017,
inclusive. A new 49 CFR 367.40
establishes the reduced fees for
registration year 2018. A second 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.
X. Regulatory Analyses
A. Executive Order (E.O.) 12866
(Regulatory Planning and Review), E.O.
13563 (Improving Regulation and
Regulatory Review), and DOT
Regulatory Policies and Procedures
FMCSA determined that this final
rule is not a significant regulatory action
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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
does not require an assessment of
potential costs and benefits under
section 6(a)(3) of that Order.
Accordingly, the Office of Management
and Budget (OMB) has not reviewed it
under that Order. It is also not
significant within the meaning of DOT
regulatory policies and procedures
(DOT Order 2100.5 dated May 22, 1980;
(44 FR 11034), February 26, 1979).
The changes imposed by this final
rule adjust 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. 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 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 will 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.
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B. E.O. 13771 Reducing Regulation
and Controlling Regulatory Costs
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C. Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980
(RFA) (5 U.S.C. 601 et seq.), as amended
by the Small Business Regulatory
Enforcement Fairness Act of 1996
(SBREFA) (Pub. L. 104–121, 110 Stat.
857), requires Federal agencies to
consider the impact of their regulatory
proposals on small entities, analyze
effective alternatives that minimize
small entity impacts, and make their
analyses available for public comment.
The term ‘‘small entities’’ means small
businesses and not-for-profit
organizations that are independently
owned and operated and are not
dominant in their fields, and
governmental jurisdictions with
2 Executive
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
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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
An E.O. 13771 deregulatory action is
defined as ‘‘an action that has been
finalized and has total costs less than
zero.’’ As this is a zero total cost
rulemaking and consequently does not
have total costs less than zero, it
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.
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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populations under 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 entities. Section 605 of
the RFA allows an agency to certify a
rule, in lieu of preparing an analysis, if
the rulemaking is not expected to have
a significant economic impact on a
substantial number of small entities.
This 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.
However, FMCSA has determined
that this rule will not have a significant
impact on the affected entities. The
4 Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
Available at: https://www.sba.gov/advocacy/
regulatory-flexibility-act (accessed February 13,
2017).
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,
2017).
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rule will not result in any such
expenditure, the Agency discusses the
effects of this rule elsewhere in this
preamble.
D. Assistance for Small Entities
In accordance with section 213(a) of
the SBREFA, FMCSA wants to assist
small entities in understanding this
final rule so that they can better
evaluate its effects on themselves and
participate in the rulemaking initiative.
If the final 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 final 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.
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effect of this rule will be to reduce the
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.
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 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, imposes
substantial direct unreimbursed
compliance costs on any State, or
diminishes the power of any State to
enforce its own laws. As detailed above,
the UCR Board of Directors includes
substantial State representation. The
States have already had opportunity for
input through their representatives.
Accordingly, this rulemaking does not
have Federalism implications
warranting the application of E.O.
13132.
E. Unfunded Mandates Reform Act of
1995
The Unfunded Mandates Reform Act
of 1995 (2 U.S.C. 1531–1538) requires
Federal agencies to assess the effects of
their discretionary regulatory actions. In
particular, the Act addresses actions
that may result in the expenditure by a
State, local, or tribal government, in the
aggregate, or by the private sector of
$156 million (which is the value
equivalent of $100 million in 1995,
adjusted for inflation to 2015 levels) or
more in any one year. Though this final
I. E.O. 13045 (Protection of Children)
E.O. 13045, Protection of Children
from Environmental Health Risks and
Safety Risks (62 FR 19885, Apr. 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 final rule is not economically
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16:04 Jan 04, 2018
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F. Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (PRA) (44 U.S.C. 3501 et seq.),
Federal agencies must obtain approval
from the OMB for each collection of
information they conduct, sponsor, or
require through regulations. FMCSA
determined that no new information
collection requirements are associated
with this final rule, nor are there any
revisions to existing, approved
collections of information. Therefore,
the PRA does not apply to this final
rule.
H. E.O. 12988 (Civil Justice Reform)
This final 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.
PO 00000
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611
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 final 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 Impact Assessment
Section 522 of title I of division H of
the Consolidated Appropriations Act,
2005, enacted December 8, 2004 (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.
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 final rule
under E.O. 13211, Actions Concerning
Regulations That Significantly Affect
Energy Supply, Distribution, or Use.
The Agency has determined that this
rule 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 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.
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O. National Technology Transfer and
Advancement Act (Technical
Standards)
The National Technology Transfer
and Advancement Act (15 U.S.C. 272
note) directs agencies to use voluntary
consensus standards in their regulatory
activities unless the agency provides
Congress, through OMB, with an
explanation of why using these
standards would be inconsistent with
applicable law or otherwise impractical.
Voluntary consensus standards (e.g.,
specifications of materials, performance,
design, or operation; test methods;
sampling procedures; and related
management systems practices) are
standards that are developed or adopted
by voluntary consensus standards
bodies. This rule does not use technical
standards. Therefore, FMCSA did not
consider the use of voluntary consensus
standards.
P. Environment (National
Environmental Policy Act, Clean Air
Act, Environmental Justice)
FMCSA analyzed this rule 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 content
in this rule is covered by this CE and the
final action does not have any effect on
the quality of the environment. The CE
determination is available for inspection
or copying in the Regulations.gov.
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, Federal Actions to
Address Environmental Justice in
Minority Populations and Low-Income
Populations, each Federal agency must
identify and address, as appropriate,
‘‘disproportionately high and adverse
human health or environmental effects
of its programs, policies, and activities
on minority populations and lowincome populations’’ in the United
States, its possessions, and territories.
FMCSA evaluated the environmental
justice effects of this final rule in
accordance with the E.O. 12898, and has
determined that no environmental
justice issue is associated with this final
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.
For the reasons discussed in the
preamble, the Federal Motor Carrier
Safety Administration is amending title
49 CFR chapter III, part 367 as follows:
PART 367—STANDARDS FOR
REGISTRATION WITH STATES
1. The authority citation for part 367
continues to read as follows:
■
Authority: 49 U.S.C. 13301, 14504a; and 49
CFR 1.87.
■
2. Revise § 367.30 to read as follows:
§ 367.30 Fees under the Unified Carrier
Registration Plan and Agreement for
registration years beginning in 2010 and
ending in 2017.
TABLE 1 TO § 367.30—FEES UNDER THE UNIFIED CARRIER REGISTRATION PLAN AND AGREEMENT FOR EACH
REGISTRATION YEAR 2010–2017
Number of commercial motor vehicles owned or operated by
exempt or non-exempt motor carrier, motor private carrier, or
freight forwarder
Bracket
B1
B2
B3
B4
B5
B6
....................
....................
....................
....................
....................
....................
Fee per entity for exempt or
non-exempt motor carrier,
motor private carrier, or
freight forwarder
0–2 .............................................................................................
3–5 .............................................................................................
6–20 ...........................................................................................
21–100 .......................................................................................
101–1,000 ..................................................................................
1,001 and above ........................................................................
3. Add new §§ 367.40 and 367.50 to
subpart B to read as follows:
■
$76
227
452
1,576
7,511
73,346
Fee per entity for broker or
leasing company
$76
................................................
................................................
................................................
................................................
................................................
§ 367.40 Fees under the Unified Carrier
Registration Plan and Agreement for
registration year 2018.
TABLE 1 TO § 367.40—FEES UNDER THE UNIFIED CARRIER REGISTRATION PLAN AND AGREEMENT FOR REGISTRATION
YEAR 2018
Number of commercial motor vehicles owned or operated by
exempt or non-exempt motor carrier, motor private carrier, or
freight forwarder
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Bracket
B1
B2
B3
B4
B5
B6
....................
....................
....................
....................
....................
....................
VerDate Sep<11>2014
Fee per entity for exempt or
non-exempt motor carrier,
motor private carrier, or
freight forwarder
0–2 .............................................................................................
3–5 .............................................................................................
6–20 ...........................................................................................
21–100 .......................................................................................
101–1,000 ..................................................................................
1,001 and above ........................................................................
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$69
206
410
1,431
6,820
66,597
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Fee per entity for broker or
leasing company
$69
................................................
................................................
................................................
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Federal Register / Vol. 83, No. 4 / Friday, January 5, 2018 / Rules and Regulations
613
§ 367.50 Fees under the Unified Carrier
Registration Plan and Agreement for
registration years beginning in 2019.
TABLE 1 TO § 367.50—FEES UNDER THE UNIFIED CARRIER REGISTRATION PLAN AND AGREEMENT FOR REGISTRATION
YEAR 2019 AND EACH SUBSEQUENT REGISTRATION YEAR THEREAFTER
Number of commercial motor vehicles owned or operated by
exempt or non-exempt motor carrier, motor private carrier, or
freight forwarder
Bracket
B1
B2
B3
B4
B5
B6
....................
....................
....................
....................
....................
....................
Fee per entity for exempt or
non-exempt motor carrier,
motor private carrier, or
freight forwarder
0–2 .............................................................................................
3–5 .............................................................................................
6–20 ...........................................................................................
21–100 .......................................................................................
101–1,000 ..................................................................................
1,001 and above ........................................................................
$73
217
431
1,503
7,165
69,971
Issued under authority delegated in 49 CFR
1.87 on: December 29, 2017.
Cathy F. Gautreaux,
Deputy Administrator.
[FR Doc. 2017–28509 Filed 1–2–18; 4:15 pm]
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Agencies
[Federal Register Volume 83, Number 4 (Friday, January 5, 2018)]
[Rules and Regulations]
[Pages 605-613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-28509]
=======================================================================
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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: Final rule.
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SUMMARY: This rule establishes 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 will 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 and subsequent years, the fees will 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: This final rule is effective January 5, 2018.
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 or
by telephone at 202-385-2405.
SUPPLEMENTARY INFORMATION:
This Final Rule is organized as follows:
I. Rulemaking Documents
A. Availability of Rulemaking Documents
B. Privacy Act
II. Abbreviations and Acronyms
III. Executive Summary
A. Purpose and Summary of the Major Provisions
B. Benefits and Costs
IV. Legal Basis for the Rulemaking
V. Statutory Requirements for UCR Fees
A. Legislative History
B. Fee Requirements
VI. Background
Recommendation From the UCR Plan
VII. Discussion of the Comments
A. Small Business in Transportation Coalition
B. Revenue Entitlement for the State of Texas
C. Change Design of Fee Structure
D. Other Concerns
VIII. International Impacts
IX. Section-by-Section Analysis
X. Regulatory Analyses
A. Executive Order (E.O.) 12866 (Regulatory Planning and
Review), E.O. 13563 (Improving Regulation and Regulatory Review),
and DOT Regulatory Policies and Procedures
B. E.O. 13771 Reducing Regulation and Controlling 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 Impact Assessment
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 (National Environmental Policy Act, Clean Air
Act, Environmental Justice)
I. Rulemaking Documents
A. Availability of Rulemaking Documents
For access to docket FMCSA-2017-0118 to read background documents,
go to https://www.regulations.gov at any time, or to Docket Services at
U.S. Department of Transportation, Room W12-140, 1200 New Jersey Avenue
SE, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
B. Privacy Act
In accordance with 5 U.S.C. 553(c), the U.S. Department of
Transportation (DOT) solicits comments from the public to better inform
its rulemaking process. DOT posts any 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 https://www.transportation.gov/privacy.
II. 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
FMCSA Federal Motor Carrier Safety Administration
OMB Office of Management and Budget
OOIDA Owner-Operator Independent Drivers Association
PRA Paperwork Reduction Act
RFA Regulatory Flexibility Act
SBA Small Business Administration
SBREFA Small Business Regulatory Enforcement Fairness Act
SBTC Small Business in Transportation Coalition
SSRS Single State Registration System
Texas DMV Texas Department of Motor Vehicles
UCR Unified Carrier Registration
UCR Agreement Unified Carrier Registration Agreement
UCR Plan Unified Carrier Registration Plan.
III. 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
[[Page 606]]
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. The statute
sets a statutory maximum amount that the UCR Plan may collect. If
annual revenues will exceed the statutory maximum allowed, then the UCR
Plan must request adjustments to the fees. 49 U.S.C. 14504a(f)(1)(E).
Also, any excess funds held by the UCR Plan after payments are made to
the States and for administrative costs are retained in the UCR
depository and subsequent fees charged are reduced as required by 49
U.S.C. 14504a(h)(4). Adjustments in the fees are requested by the UCR
Plan and approved by FMCSA. These two provisions are the reasons for
the two-stage adjustment adopted in this final rule. The final rule
provides 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 and the participating States collect registration fees
for each registration year, which is the same period as the calendar
year. Generally, collection begins on October 1st of the previous year,
and continues until December 31st of the year following the
registration year. For example, collection for the 2016 registration
year began on October 1, 2015, and will end on December 31, 2017.
Currently the UCR Plan estimates that by December 31, 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 October 1, 2017 and ending December 31, 2019, 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 October 1, 2018 and
ending December 31, 2020, 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.
B. Benefits and Costs
The changes imposed by this final rule 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 societal costs and benefits of rulemakings.
The UCR Plan's formal recommendation requested the Secretary
(delegated to FMCSA) to set annual fees beginning in the registration
year 2018, as required by 49 U.S.C. 14504a(d)(7). FMCSA issued a notice
of proposed rulemaking proposing to reduce the fees paid by motor
carriers, motor private carriers of property, brokers, freight
forwarders, and leasing companies based on an analysis of current
collections and past trends. The Agency reviewed the UCR Plan's formal
recommendation prior to issuing the NPRM and concluded that the UCR
Plan's projection of the total revenues received for registration year
2016 may have been understated. 49 U.S.C. 14504a(d)(7). 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 slightly reduced from the UCR
Plan's original formal recommendation.
IV. Legal Basis for the Rulemaking
This rule adjusts 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 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 Board 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).
The APA also allows agencies to make rules effective immediately
with good cause, instead of requiring publication 30 days prior to the
effective date. 5 U.S.C. 553(d)(3). FMCSA finds there is good cause for
this rule to be effective immediately so that the UCR Plan and the
participating States may begin collection of fees immediately for the
registration year that will begin on January 1, 2018. The immediate
commencement of fee collection will avoid further delay in distributing
revenues to the participating States.
V. Statutory Requirements for the UCR Fees
A. Legislative History
The Unified Carrier Registration Plan is ``the organization . . .
responsible for developing, implementing, and administering the unified
carrier registration agreement.'' 49 U.S.C. 14504a(a)(9). 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 49 U.S.C. 14504a 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 FMCSA Deputy Administrator or another Presidential appointee) from
the Department of Transportation; four directors from among the chief
[[Page 607]]
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; 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.
49 U.S.C. 14504a(d)(1)(B).
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 Fees for the Unified
Registration Plan and Agreement, 75 FR 21993 (Apr. 27, 2010) (``2010
Final Rule'') with Fees for Unified Registration Plan and Agreement, 72
FR 48585 (Aug. 24, 2007) (``2007 Final Rule'').
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). Participating States submit a plan
demonstrating that an amount equivalent to the revenues received are
used for motor carrier safety programs, enforcement or the
administration of the UCR Plan and Agreement. 49 U.S.C.
14504a(e)(1)(B).
B. Fee Requirements
The statute specifies that fees are to be based upon the
recommendation of the UCR Board, 49 U.S.C. 14504a(d)(7)(A). 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 Secretary, if asked by the Board, may also adjust the fees
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 State, participating in SSRS in
the registration year prior to the enactment of the Unified Carrier
Registration Act of 2005 is entitled to receive revenues under the UCR
Agreement equivalent to the revenues it received in the year before
that enactment. Participating States that also collected intrastate
registration fees from interstate motor carrier entities (whether 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 statute also
requires that States that did not participate in SSRS previously, but
that choose to participate in the UCR Plan, may receive revenues not to
exceed $500,000 per year. The Board calculates the amount of revenue
that each participating State is entitled to under the UCR Agreement
which is then approved by the Secretary.
FMCSA's responsibilities under 49 U.S.C. 14504a in setting fees for
the UCR Plan and Agreement are guided by the primacy the statute places
on the need both to set and to adjust the fees so they ``provide the
revenues to which the States are entitled.'' The statute links the
requirement that the fees be adjusted ``within a reasonable range'' by
both the UCR Plan and FMCSA 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)).
Additionally, section 14504a(h)(4) 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
Recommendation From the UCR Plan
On March 14, 2017, the Board voted unanimously to submit a
recommendation to the Secretary for a reduction of registration fees
collected by the UCR Plan for 2018, with an adjustment in fees in 2019
and subsequent years. 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, for the
first time, exceeded 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 already
established in accordance with 49 U.S.C. 14504a(g), are set out in the
table attached to the March 22, 2017 recommendation. These revenue
entitlements for the States are the same as those that were approved in
the 2010 final rule (75 FR at 22008-9 and Table 5) that have continued
in effect for each of the eight registration years from 2010 to 2017,
inclusive.
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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
$4.15 million more than the statutory maximum of $112.78 million for
2016. 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).
Because of the collection of excess revenue, the UCR Plan requested
adjustments to the fees in accordance with 49 U.S.C.
14504a(f)(1)(E)(ii), which requires the Board 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 to
account for the excess revenues already
[[Page 608]]
collected in 2016, followed by a reduction below the current level by
approximately 4.55% for 2019 and subsequent years to keep future
revenues below the statutory maximum. 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 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 that began on
October 1, 2017.
VII. Discussion of the Comments
FMCSA received 7 comments on the NPRM. Five commenters disagreed
with some aspect or another of the NPRM, including the Texas Department
of Motor Vehicles (Texas DMV), Owner-Operator Independent Drivers
Association (OOIDA), Small Business in Transportation Coalition (SBTC)
and two anonymous commenters. Two additional anonymous commenters
agreed with the NPRM favoring the fee reduction. The major comments
included a request to have the NPRM withdrawn, as well as a
recommendation to have the UCR Board submit a new recommendation to
implement the fee reduction with a new 2019 fee schedule and a request
for assurance that the State of Texas will be able to collect all of
the revenues to which it is entitled. Also comments addressed
recommendations for changing the current design of the fee structure.
Additional concerns included the absence of consistent enforcement of
penalties, and the difficulty for small businesses to realize benefits
from the mandated fees paid due to the existing structure and
administration of the program.
A. Small Business in Transportation Coalition
Comments
The Small Business in Transportation Coalition (SBTC) contended
that the NPRM published September 21, 2017, is unlawful and should be
withdrawn. It contends that while the UCR Plan notified the FMCSA of
its recommendation for a reduction in the fees on March 22, 2017, the
Agency failed to set the new fees within the 90-day period specified in
the statute.
As a result of the lack of action within 90 days, SBTC asserts that
on September 14, 2017, the Board held an ``improperly noticed secret
meeting'' that changed the date for commencement of the registration
and payment of fees from October 1, 2017, to November 1, 2017. SBTC
claims that this action by the UCR Plan thereby shortens the period for
carriers to comply with the UCR requirement, even though the affected
registrants would then be paying a reduced fee.
After the close of the comment period, SBTC and a broker, 12
Percent Logistics, Inc., brought a civil action in the United States
District Court for the District of Columbia (Civil Action No 1:17-cv-
2000) in which they sought injunctive relief to set aside the UCR
Plan's postponement of the date for commencement of registration and
fee payment. On October 18, the court denied the request to set aside
the postponement of the registration period but ordered the UCR Board
and the operator of its on-line registration system (the Indiana
Department of Revenue) to post the draft minutes of a September 14,
2017, meeting of the UCR Board on their respective websites and to make
an announcement of these postings at the Board's October 26, 2017,
meeting. The draft minutes of the Board's September 14, 2017 meeting
were posted on websites www.ucrplan.org and www.ucr.in.gov/ucrHome.html
on October 20, 2017 and October 24, 2017, respectively. The Board
announced the availability of the draft minutes on these websites at
its October 26, 2017 meeting.
FMCSA Response
SBTC cites no authority for its contention that FMCSA and the
Secretary no longer have the authority to set new fees for 2018 because
the statutory deadline for such action of 90 days in 49 U.S.C.
14504a(d)(7) has not been met. SBTC's contention that FMCSA ``has
missed its lawful opportunity'' to set the fees based on the UCR Plan's
March 22 recommendation is legally incorrect.
SBTC cannot point to any explicit statement in the provisions of 49
U.S.C. 14504a that bars action by FMCSA when the 90-day period is not
met, because there is none. In addition, there are important public
rights at stake that would be affected if FMCSA lost its power to act
on the UCR Plan's recommendation, as contended by SBTC. The fee
reduction recommended by the UCR Plan, proposed for implementation in
the NPRM and now adopted in this final rule, is necessary to comply
with two important provisions in the statute that require compliance
with the statutory maximum amount of revenues to be collected by the
UCR Plan and the participating States. 49 U.S.C. 14504a(f)(1)(E)(ii)
and (h)(4). Instead of allowing SBTC's members and the rest of the
motor carrier industry to benefit as soon as possible from the
reduction in fees based on excess revenues that the UCR Plan has
already recognized were collected for registration year 2016, SBTC's
request would have the harmful effect of delaying the benefits of the
reduction until 2019.
FMCSA and the Secretary have not lost the power to take action to
implement the reduction in fees for 2018 and later years because the
Agency did not complete such action within 90 days. SBTC's request for
withdrawal of this rulemaking is therefore denied.
B. Revenue Entitlement for the State of Texas
Comments
The Texas Department of Motor Vehicles requested that FMCSA ``take
the necessary steps to ensure that the state of Texas receives the full
amount of UCR revenues to which Texas is entitled under 49 U.S.C.
14504a(g)(1).'' Texas DMV stated that after the State's move from the
SSRS to the UCR Plan and Agreement, it had not received the amount of
funds from the UCR Plan and Agreement to which it believes it is
entitled. Since 2007, under the revenue entitlement calculations
submitted by the UCR Plan to the Secretary and FMCSA, the revenue
entitlement for Texas has been set at $2,718,628.06. 72 FR at 48588 and
Table 1 (2007 Final Rule) and 75 FR at 22008-9 and Table 5 (2010 Final
Rule). Texas DMV now claims that the State's revenue entitlement for
every year since 2007 should have been set at $5,765,819.93,
representing a difference of $3,047,191.87 for each registration year.
In total, Texas DMV claims that the State did not receive revenues of
$33,519,110.57 for the years 2007 to 2017, inclusive.
Texas DMV now asks that the Agency approve a revised annual revenue
entitlement for Texas of $5,765,819.93, starting with the year 2018,
and approve the ``shortage'' amount of $33,519,110.57 for the years
2007-2017. Most significantly, for the purpose of this rulemaking,
Texas DMV asks the Agency to revise the current fees established in 49
CFR part 367 ``as necessary to ensure enough UCR fees are collected to
cover the full amount to which Texas is entitled for years 2007 through
2017 and beyond.''
FMCSA Response
The actions by the Agency that Texas DMV requests would not only
require declining to implement the reduction in fees requested by the
UCR Plan, but
[[Page 609]]
taking two additional steps: (1) Revising the approved revenue
entitlement for Texas; and (2) increasing the fees by an uncertain but
clearly substantial amount, not only to provide revenues for the new
entitlement, but also to cover eleven years of a claimed ``shortage.''
FMCSA does not have authority under the provisions of 49 U.S.C. 14504a
to take either of these additional actions. Both the approval of a
revised revenue entitlement for Texas and an adjustment of the fees to
cover both Texas' claimed revised entitlement and the ``shortage''
would require that a recommendation be made to the Secretary by the
Board. Because no such request has been made for either action, FMCSA
is without authority to take the action requested by Texas. The fees
are based on the only set of revenue entitlements submitted by the UCR
Plan to the Secretary, which were approved in the 2010 final rule and
which includes a revenue entitlement of $2,718,628.06 for Texas.
The statute has provisions in 49 U.S.C. 14504a(g)(1) to (3)
governing how the revenue entitlement for each participating State
should be determined. Texas DMV asserts that the Texas revenue
entitlement should be determined under paragraph (g)(1), based on the
revenues Texas received during the calendar year 2004 under SSRS. But
the Texas DMV does not explain how or why its revenue entitlement under
this provision should be $5,765,819.93 for each year under the UCR
Agreement, instead of the $2,718,628.06 that has been in effect since
2007. It also does not explain why it has waited more than 11 years to
assert that it is entitled to a larger revenue entitlement.
Even if Texas DMV is correct that the larger amount is appropriate
under the statute, it has failed to submit its claim to the Board. The
statute provides that the amount of revenues generated under the UCR
Agreement to which a State is entitled shall be calculated by the Board
and approved by the Secretary. 49 U.S.C. 14504a(g)(4). A revised
calculation of the Texas revenue entitlement, which shows that it
complies with the statutory requirements in section 14504a(g)(1), has
not been submitted to the Board for its review and confirmation, and it
has not been submitted by the Board to FMCSA for approval. FMCSA is
without authority to consider or approve a revised revenue entitlement
for Texas unless and until a revised calculation is submitted by the
UCR Plan's board of directors.
The statute has similar provisions governing adjustments in the
fees. The Board may ask FMCSA to adjust the fees within a reasonable
range on an annual basis if the revenues derived from the fees are
insufficient to provide the revenues to which the States are entitled.
49 U.S.C. 14504a(f)(1)(E)(i). No request has been made by the Board to
adjust the fees in order to provide any revenues to satisfy the claim
by Texas for a larger annual revenue entitlement or to provide funds to
make up the ``shortage'' Texas has supposedly incurred for 11 years.
The only request before the Agency from the Board is the reduction in
fees submitted on March 22, 2017 after a unanimous vote of the UCR
Board. FMCSA is without authority to consider or approve any adjustment
in the fees (other than the one submitted on March 22) unless and until
the Board makes a recommendation that would reflect the effects of the
revised revenue entitlement claimed by Texas.
C. Change Design of Fee Structure
Comments
OOIDA stated that single-truck operators or small fleet carriers
represented approximately 95% of the motor carrier industry and that
the current fee structure is burdensome and costly to its members due
to the limited resources they have in comparison to larger competitors.
OOIDA stated that the inequalities are particularly noted between and
within the arbitrary payment brackets in effect and proposed that a
standard flat fee per vehicle should be considered to reduce inequity
amongst small, medium, and large fleets. An anonymous commenter felt
that the current structure appears punitive to companies who are on the
lower end of the tiered brackets that are currently in effect. The
commenter cited the following examples in the current fee structure in
which by going from 100 power units to 101 power units or even 1000
power units to 1001 power units companies would incur enormous
percentage fee increases for a single power unit. The commenter
recommended that the fee should be charged on a per unit basis. The per
unit fee recommendation was also supported by another anonymous
commenter.
FMCSA Response
Three commenters suggested changing the UCR fees to a ``per-unit''
(i.e. on a per vehicle) basis. FMCSA has not evaluated the merits of
this suggestion because it is not an alternative available to the
Agency. The statute requires that the Board set the fee structure based
on 4 to 6 brackets depending on the size of the fleet. 49 U.S.C.
14504a(f)(1)(C). Implementing the commenters' ``per unit'' suggestion
would require a statutory amendment. Unless and until that occurs,
neither the Board nor FMCSA has authority to change the current fee
structure using brackets.
D. Other Concerns
Comments
OOIDA expressed other specific concerns regarding the proposed rule
including the fact that smaller carriers lack the resources to assist
payment processing and submission of paperwork. OOIDA also expressed
concerns regarding the lack of consistency among states in their use of
the fees for enforcement or administration purposes. Overall, OOIDA
felt that the existing organization and administration of the UCR
program makes it difficult for small-business truckers and owner-
operators to recognize any benefits from the mandated fees they are
expected to pay. OOIDA recommended a federal audit of the UCR plan to
review how states are actually spending UCR revenues.
FMCSA Response
OOIDA's concerns described above are outside of the scope of this
rulemaking.
VIII. International Impacts
Motor carriers and other entities involved in interstate and
foreign transportation in the United States that do not have a
principal office in the United States, are nonetheless subject to the
fees for the UCR Plan. They are required to designate a participating
State as a base State and pay the appropriate fees to that State. 49
U.S.C. 14504a(a)(2)(B)(ii) and (f)(4).
IX. Section-by-Section Analysis
Under this final rule, the provisions of 49 CFR 367.30 are revised
to apply to registration years 2010 to 2017, inclusive. A new 49 CFR
367.40 establishes the reduced fees for registration year 2018. A
second 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.
X. Regulatory Analyses
A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), E.O.
13563 (Improving Regulation and Regulatory Review), and DOT Regulatory
Policies and Procedures
FMCSA determined that this final rule is not a significant
regulatory action
[[Page 610]]
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 does not require an assessment of potential
costs and benefits under section 6(a)(3) of that Order. Accordingly,
the Office of Management and Budget (OMB) has not reviewed it under
that Order. It is also not significant within the meaning of DOT
regulatory policies and procedures (DOT Order 2100.5 dated May 22,
1980; (44 FR 11034), February 26, 1979).
The changes imposed by this final rule adjust 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. 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 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 will 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.
---------------------------------------------------------------------------
An E.O. 13771 deregulatory action is defined as ``an action that
has been finalized and has total costs less than zero.'' As this is a
zero total cost rulemaking and consequently does not have total costs
less than zero, it 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
The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601 et
seq.), as amended by the Small Business Regulatory Enforcement Fairness
Act of 1996 (SBREFA) (Pub. L. 104-121, 110 Stat. 857), requires Federal
agencies to consider the impact of their regulatory proposals on small
entities, analyze effective alternatives that minimize small entity
impacts, and make their analyses available for public comment. The term
``small entities'' means 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 under 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
entities. 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.
---------------------------------------------------------------------------
\4\ Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Available
at: https://www.sba.gov/advocacy/regulatory-flexibility-act
(accessed February 13, 2017).
---------------------------------------------------------------------------
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 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, 2017).
---------------------------------------------------------------------------
However, FMCSA has determined that this rule will not have a
significant impact on the affected entities. The
[[Page 611]]
effect of this rule will be to reduce the 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 SBREFA, FMCSA wants to
assist small entities in understanding this final rule so that they can
better evaluate its effects on themselves and participate in the
rulemaking initiative. If the final 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 final rule.
Small businesses may send comments on the actions of Federal
employees who enforce or otherwise determine compliance with Federal
regulations to the Small Business Administration's Small Business and
Agriculture Regulatory Enforcement Ombudsman and the Regional Small
Business Regulatory Fairness Boards. The Ombudsman evaluates these
actions annually and rates each agency's responsiveness to small
business. If you wish to comment on actions by employees of FMCSA, call
1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding the rights
of small entities to regulatory enforcement fairness and an explicit
policy against retaliation for exercising these rights.
E. Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $156 million (which is the
value equivalent of $100 million in 1995, adjusted for inflation to
2015 levels) or more in any one year. Though this final rule will not
result in any such expenditure, the Agency discusses the effects of
this rule elsewhere in this preamble.
F. Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et
seq.), Federal agencies must obtain approval from the OMB for each
collection of information they conduct, sponsor, or require through
regulations. FMCSA determined that no new information collection
requirements are associated with this final rule, nor are there any
revisions to existing, approved collections of information. Therefore,
the PRA does not apply to this final rule.
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 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, imposes substantial direct unreimbursed
compliance costs on any State, or diminishes the power of any State to
enforce its own laws. As detailed above, the UCR Board of Directors
includes substantial State representation. The States have already had
opportunity for input through their representatives. Accordingly, this
rulemaking does not have Federalism implications warranting the
application of E.O. 13132.
H. E.O. 12988 (Civil Justice Reform)
This final 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, Apr. 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 final 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 final 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 Impact Assessment
Section 522 of title I of division H of the Consolidated
Appropriations Act, 2005, enacted December 8, 2004 (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.
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 final rule under E.O. 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. The Agency has determined that this rule 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 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.
[[Page 612]]
O. National Technology Transfer and Advancement Act (Technical
Standards)
The National Technology Transfer and Advancement Act (15 U.S.C. 272
note) directs agencies to use voluntary consensus standards in their
regulatory activities unless the agency provides Congress, through OMB,
with an explanation of why using these standards would be inconsistent
with applicable law or otherwise impractical. Voluntary consensus
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) are standards that are developed or adopted by
voluntary consensus standards bodies. This rule does not use technical
standards. Therefore, FMCSA did not consider the use of voluntary
consensus standards.
P. Environment (National Environmental Policy Act, Clean Air Act,
Environmental Justice)
FMCSA analyzed this rule 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 content in this rule is
covered by this CE and the final action does not have any effect on the
quality of the environment. The CE determination is available for
inspection or copying in the Regulations.gov.
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, Federal Actions to Address Environmental Justice
in Minority Populations and Low-Income Populations, each Federal agency
must identify and address, as appropriate, ``disproportionately high
and adverse human health or environmental effects of its programs,
policies, and activities on minority populations and low-income
populations'' in the United States, its possessions, and territories.
FMCSA evaluated the environmental justice effects of this final rule in
accordance with the E.O. 12898, and has determined that no
environmental justice issue is associated with this final 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.
For the reasons discussed in the preamble, the Federal Motor
Carrier Safety Administration is amending title 49 CFR 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 years beginning in 2010 and ending in 2017.
Table 1 to Sec. 367.30--Fees Under the Unified Carrier Registration Plan and Agreement for Each Registration
Year 2010-2017
----------------------------------------------------------------------------------------------------------------
Number of commercial
motor vehicles owned or Fee per entity for exempt
operated by exempt or or non-exempt motor
Bracket non-exempt motor carrier, motor private Fee per entity for broker
carrier, motor private carrier, or freight or leasing company
carrier, or freight forwarder
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. Sec. 367.40 and 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.
Table 1 to Sec. 367.40--Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year
2018
----------------------------------------------------------------------------------------------------------------
Number of commercial
motor vehicles owned or Fee per entity for exempt
operated by exempt or or non-exempt motor
Bracket non-exempt motor carrier, motor private Fee per entity for broker
carrier, motor private carrier, or freight or leasing company
carrier, or freight forwarder
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 ...........................
----------------------------------------------------------------------------------------------------------------
[[Page 613]]
Sec. 367.50 Fees under the Unified Carrier Registration Plan and
Agreement for registration years beginning in 2019.
Table 1 to Sec. 367.50--Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year
2019 and Each Subsequent Registration Year Thereafter
----------------------------------------------------------------------------------------------------------------
Number of commercial
motor vehicles owned or Fee per entity for exempt
operated by exempt or or non-exempt motor
Bracket non-exempt motor carrier, motor private Fee per entity for broker
carrier, motor private carrier, or freight or leasing company
carrier, or freight forwarder
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: December 29,
2017.
Cathy F. Gautreaux,
Deputy Administrator.
[FR Doc. 2017-28509 Filed 1-2-18; 4:15 pm]
BILLING CODE 4910-EX-P