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Proposed Rule2022-09571

Uniform Railroad Costing System (URCS) Data Reporting

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Published

May 9, 2022

Issuing agencies

Surface Transportation Board

Abstract

The Surface Transportation Board proposes a rule to codify a longstanding voluntary practice whereby Class I carriers, through the Association of American Railroads (AAR), have annually reported tare weight and loss and damage data for use in the Board's Uniform Railroad Costing System. Under the Board's proposal, Class I carriers may choose whether to provide tare weight and loss and damage data through AAR or file the data individually.

Full Text

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<title>Federal Register, Volume 87 Issue 89 (Monday, May 9, 2022)</title>
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[Federal Register Volume 87, Number 89 (Monday, May 9, 2022)]
[Proposed Rules]
[Pages 27549-27557]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09571]

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SURFACE TRANSPORTATION BOARD

49 CFR Part 1249

[Docket No. EP 769]

Uniform Railroad Costing System (URCS) Data Reporting

AGENCY: Surface Transportation Board.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Surface Transportation Board proposes a rule to codify a
longstanding voluntary practice whereby Class I carriers, through the
Association of American Railroads (AAR), have annually reported tare
weight and loss and damage data for use in the Board's Uniform Railroad
Costing System. Under the Board's proposal, Class I carriers may choose
whether to provide tare weight and loss and damage data through AAR or
file the data individually.

DATES: Comments are due by June 13, 2022. Reply comments are due by
June 28, 2022.

ADDRESSES: Comments and replies may be filed with the Board via e-
filing. Written comments and replies will be posted to the Board's
website at <a href="http://www.stb.gov">www.stb.gov</a>.

FOR FURTHER INFORMATION CONTACT: Pedro Ramirez at (202) 245-0333.
Assistance for the hearing impaired is available through the Federal
Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: The Board is authorized, under 49 U.S.C.
11161, to maintain cost accounting rules for rail carriers. In 1989,
the Board's predecessor, the Interstate Commerce Commission, adopted
the Uniform Railroad Costing System (URCS) as its general purpose
costing system. Adoption of the Unif. R.R. Costing Sys. as a Gen.
Purpose Costing Sys. for All Regul. Costing Purposes, 5 I.C.C.2d 894
(1989), 54 FR 38910 (September 21, 1989). The Board uses URCS for a
variety of regulatory functions. URCS is used in rate reasonableness
proceedings as part of the initial market dominance determination, and
at later stages is used in parts of the Board's determination as to
whether the challenged rate is reasonable, and, when warranted, the
maximum rate prescription. URCS is also used to, among other things,
develop variable costs for making cost determinations in abandonment
proceedings, to provide the railroad industry and shippers with a
standardized costing model, to cost the Board's Carload Waybill Sample
to develop industry cost information, and to provide interested parties
with basic cost information regarding railroad industry operations.
As a longstanding practice, the Association of American Railroads
(AAR) has collected from Class I carriers, and voluntarily provided
annually to the Board, tare weight and loss and damage data for use in
URCS. While the Board appreciates AAR's longstanding voluntary
practice, to ensure the continued availability of the data, which are
essential components of URCS,\1\ the Board proposes to formalize that
reporting requirement and require Class I carriers to provide tare
weight

[[Page 27550]]

and loss and damage data on an annual basis, as described below. The
Board has the statutory authority to obtain data from carriers and
associations under 49 U.S.C. 11144 and 11145.
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\1\ Tare weights are used in URCS to calculate gross ton-mile
costs, while loss and damage data are used to calculate the total
variable shipment costs of each rail movement. The Railroad Cost
Program User Manual is available on the Board's website at
<a href="http://www.stb.gov/reports-data/uniform-rail-costing-system/">www.stb.gov/reports-data/uniform-rail-costing-system/</a>.
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The Board's proposal is consistent with Class I carriers' current
and longstanding practice of providing summarized tare weight and loss
and damage data to the Board through AAR. AAR's practice has been to
provide the average tare weight by AAR car type code \2\ in tons and
pounds, as well as the number of cars. Additionally, AAR has
historically provided summarized annual loss and damage expenses \3\
and the number of tons originated by commodity. Class I carriers are
required to report, quarterly and annually, the number of tons
originated on their rail lines by commodity through the freight
commodity statistics (FCS) report. 49 CFR 1248.2. AAR's practice has
been to provide the Board with its own version of the FCS report that
aggregates data from the Class I carriers. AAR has also provided the
loss and damage per ton, which is calculated by dividing loss and
damage expenses by the number of tons originated by commodity. The
Board proposes that Class I carriers may continue to provide tare
weight and loss and damage data in this format.
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\2\ AAR car type codes include freight car types and intermodal
equipment:
A--Equipped box car, B--Unequipped box car, C--Covered hopper
car, D--Locomotive, E--Equipped gondola, F--Flat car, G--Unequipped
gondola, H--Unequipped hopper, J--Gondola car, K--Equipped hopper
car, L--Special type car, M--Maintenance of way, scale, passenger,
caboose, and end-of-train information systems, P--Conventional
intermodal car, Q--Lighter weight, low-profile intermodal car, R--
Refrigerator car, S--tack car, T--Tank car, U--Container, V--
Vehicular flat car, Z--Trailer.
\3\ Historically, AAR has not reported loss and damage expenses
for Grand Trunk Corporation (including U.S. affiliates of Canadian
National Railway Company) (CN) and Soo Line Corporation (including
U.S. affiliates of Canadian Pacific Railway Company) (CP). As
discussed, the Board's proposed rule would require reporting from
all Class I carriers either individually or through AAR. The Board's
collection of loss and damage expenses from CN and CP for inclusion
in URCS, which uses industry-wide loss and damage information, would
allow the Board to provide more accurate cost estimates.
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The Board proposes, as an alternative for Class I carriers, to
allow those carriers to individually report tare weight and loss and
damage data directly to the Board. Under this option, Class I carriers
would provide the tare weight totals by AAR car type code in tons and
pounds and the number of cars, and the Board would calculate the
average tare weight. For loss and damage data, Class I carriers would
provide their total annual loss and damage expenses, number of tons
originated, and loss and damage per ton by commodity using the specific
commodity groupings identified in the Annual Report of Loss and Damage
Data (see App. C), and the Board would consolidate the data to
calculate the loss and damage per ton for all Class I carriers.
To ensure the timely availability of data for use in URCS, the
Board proposes to require Class I carriers, either individually or
through AAR, to file the annual tare weight and loss and damage data
with the Board within 60 days after the end of each calendar year.
Additionally, to facilitate the prompt receipt of 2021 data for use in
URCS this year, the Board proposes to require Class I carriers, either
individually or through AAR, to file tare weight and loss and damage
data for the year 2021 within 30 days of the effective date of the
final rule. To provide additional guidance, the Board proposes sample
forms in Appendices B (for reporting through AAR) and C (for reporting
individually) that Class I carriers may use to file tare weight and
loss and damage data. The Board's Office of Economics (OE) would make
technical changes to the format of these forms in the future as
necessary.\4\
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\4\ OE would post the revised templates to the Board's website
and so notify the Class I carriers.
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The Board invites comments on the proposed rule. Comments will be
due by June 13, 2022; replies will be due by June 28, 2022.
Regulatory Flexibility Act. The Regulatory Flexibility Act of 1980
(RFA), 5 U.S.C. 601-612, generally requires a description and analysis
of new rules that would have a significant economic impact on a
substantial number of small entities. In drafting a rule, an agency is
required to: (1) Assess the effect that its regulation will have on
small entities, (2) analyze effective alternatives that may minimize a
regulation's impact, and (3) make the analysis available for public
comment. Sections 601-604. In its notice of proposed rulemaking, the
agency must either include an initial regulatory flexibility analysis,
section 603(a), or certify that the proposed rule would not have a
``significant impact on a substantial number of small entities,''
section 605(b). Because the goal of the RFA is to reduce the cost to
small entities of complying with Federal regulations, the RFA requires
an agency to perform a regulatory flexibility analysis of small entity
impacts only when a rule directly regulates those entities. In other
words, the impact must be a direct impact on small entities ``whose
conduct is circumscribed or mandated'' by the proposed rule. White
Eagle Coop. v. Conner, 553 F.3d 467, 480 (7th Cir. 2009).
The proposed rule would not have a significant impact on a
substantial number of small entities within the meaning of the RFA \5\
because it is limited to Class I carriers. Accordingly, the Board
certifies under 5 U.S.C. 605(b) that this rule would not have a
significant economic impact on a substantial number of small entities
as defined by the RFA. A copy of this decision will be served upon the
Chief Counsel for Advocacy, Office of Advocacy, U.S. Small Business
Administration, Washington, DC 20416.
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\5\ For purposes of the RFA analysis, the Board defines a small
entity as only including those rail carriers classified as Class III
carriers under 49 CFR part 1201, General Instruction 1-1. See Small
Entity Size Standards Under the Regul. Flexibility Act, EP 719 (STB
served June 30, 2016), 81 FR 42566 (June 30, 2016) (with Board
Member Begeman dissenting). Class III carriers have annual operating
revenues of $20 million or less in 1991 dollars ($40,400,000 when
adjusted for inflation using 2020 data). Class II carriers have
annual operating revenues of less than $250 million in 1991 dollars
($900 million when adjusted for inflation using 2020 data). The
Board calculates the revenue deflator factor annually and publishes
the railroad revenue thresholds on its website. 49 CFR part 1201,
General Instruction 1-1; Indexing the Ann. Operating Revenues of
R.Rs., EP 748 (STB served July 12, 2021), 86 FR 36590 (July 12,
2021).
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Paperwork Reduction Act. Under the Paperwork Reduction Act (PRA),
44 U.S.C. 3501-3521, Office of Management and Budget (OMB) regulations
at 5 CFR 1320.8(d), and Appendix C, the Board seeks comment about the
impact of the new collection for URCS Data Reporting (OMB Control No.
2140-XXXX), concerning: (1) Whether the proposed collection of
information, which is further described in the proposed rule below, is
necessary for the proper performance of the functions of the Board,
including whether the collection has practical utility; (2) the
accuracy of the Board's burden estimates; (3) ways to enhance the
quality, utility, and clarity of the information collected; and (4)
ways to minimize the burden of the collection of information on the
respondents, including the use of automated collection techniques or
other forms of information technology, when appropriate.
The Board estimates that the proposed new requirements would
include a total annual hourly burden of 28 hours and a one-time, start-
up hourly burden of 63 hours. There are no non-hourly burdens
associated with this collection. The Board welcomes comment on the
estimates of actual time and costs of the collection, as detailed in
Appendix C below. Other information pertinent to this collection is
also included in

[[Page 27551]]

Appendix C. The proposed rule will be submitted to OMB for review as
required under 44 U.S.C. 3507(d) and 5 CFR 1320.11. Comments received
by the Board regarding the information collection will also be
forwarded to OMB for its review when the final rule is published.

List of Subjects in 49 CFR Part 1249

Railroads, Reporting and recordkeeping requirements.

It is ordered:
1. The Board requests comments on the proposed rule as set forth in
this decision. Comments on are due by June 13, 2022; replies are due by
June 28, 2022.
2. Notice of the proposed rule will be published in the Federal
Register.
3. A copy of this decision will be served upon the Chief Counsel
for Advocacy, Office of Advocacy, U.S. Small Business Administration.
4. This decision is effective on its service date.

Decided: April 29, 2022.

By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and
Schultz.
Regena Smith-Bernard,
Clearance Clerk.

0
For the reasons set forth in the preamble, the Surface Transportation
Board proposes to amend title 49, chapter X, subchapter C, of the Code
of Federal Regulations by adding part 1249 to read as follows:

PART 1249--REPORTS OF TARE WEIGHT AND LOSS AND DAMAGE DATA

Sec.
1249.1 Annual Report of Tare Weight Data.
1249.2 Annual Report of Loss and Damage Data.

Authority: 49 U.S.C. 1321, 11144, 11145.

Sec. 1249.1 Annual Report of Tare Weight Data.

Class I carriers, either individually or through the Association of
American Railroads (AAR), shall annually file tare weight data, as
detailed in the Annual Report of Tare Weight Data, with the Surface
Transportation Board's Office of Economics within 60 days after the end
of the calendar year. Forms and instructions are available at
<a href="http://www.stb.gov">www.stb.gov</a> and may also be obtained by contacting the Office of
Economics.

Sec. 1249.2 Annual Report of Loss and Damage Data.

Class I carriers, either individually or through AAR, shall
annually file loss and damage data, as detailed in the Annual Report of
Loss and Damage Data, with the Surface Transportation Board's Office of
Economics within 60 days after the end of the calendar year. Forms and
instructions are available at <a href="http://www.stb.gov">www.stb.gov</a> and may also be obtained by
contacting the Office of Economics.

Note: The following appendices will not appear in the Code of
Federal Regulations.

Appendix A

Sample Forms for AAR Reporting

Annual Report of Loss And Damage Data Instructions

This report is applicable to all Class I railroads.
1. Update current reporting year.
2. For each standard transportation commodity code (STCC)
identified, report total annual loss and damage expenses, the number
of tons originated, and the loss and damage per ton.
3. Report the number of tons originated for each commodity for
all railroads.
4. The loss and damage per ton is calculated by dividing loss
and damage expenses by the number of tons originated by commodity.
Round to the thousandths place.
5. For Commodity 49 Hazmat, only report data in the loss and
damage column.
BILLING CODE 3510-22-P

[[Page 27552]]

[GRAPHIC] [TIFF OMITTED] TN09MY22.033

[[Page 27553]]

[GRAPHIC] [TIFF OMITTED] TN09MY22.034

Annual Report of Tare Weight Data Instructions

1. For each four-digit AAR Car Type Code, report the average
tare weight for all Class I railroads by tons and pounds, and the
number of cars.
2. Report detailed data for freight car types and intermodal
equipment codes: A, B, C, D, E, F, G, H, J, K, L, M, P, Q, R, S, T,
U, V, and Z.

[[Page 27554]]

[GRAPHIC] [TIFF OMITTED] TN09MY22.035

Appendix B

Sample Forms for Individual Reporting

Annual Report of Loss And Damage Data Instructions

[[Page 27555]]

[GRAPHIC] [TIFF OMITTED] TN09MY22.036

[[Page 27556]]

[GRAPHIC] [TIFF OMITTED] TN09MY22.037

Annual Report of Tare Weight Data Instructions

1. For each four-digit AAR Car Type Code, report the total tare
weight in tons and pounds, and the number of cars.
2. Report detailed data for freight car types and intermodal
equipment codes: A, B, C, D, E, F, G, H, J, K, L, M, P, Q, R, S, T,
U, V, and Z.

[[Page 27557]]

[GRAPHIC] [TIFF OMITTED] TN09MY22.038

BILLING CODE 3510-22-C

Appendix C

Paperwork Reduction Act Collection

Information Collection

Title: Annual Reports of Tare Weight and Loss and Damage Data.
OMB Control Number: 2140-XXXX.
STB Form Number: None.
Type of Review: New collection.
Summary: As part of its continuing effort to reduce paperwork
burdens, and as required by the Paperwork Reduction Act of 1995, the
Surface Transportation Board gives notice that it is requesting from
the Office of Management and Budget approval of a new collection,
Annual Reports of Tare Weight and Loss and Damage Data, OMB Control
No. 2140-XXXX. The new collection is necessitated by the notice of
proposed rulemaking, which proposes to give Class I carriers the
option to provide tare weight and loss and damage data to the Board
individually.
Respondents: Class I railroads.
Number of Respondents: Seven.
Estimated Time per Response: Four hours, plus a one-time
addition of nine start-up hours.
Frequency: Annual.
Total Annual Hour Burden: 49 hours (including the additional 21
hours, which is the estimated 63 start-up hours amortized over the
three-year approval period).
Total ``Non-hour Burden'' Cost: There are no non-hourly burden
costs for this collection. The collections may be filed
electronically.
Needs and Uses: This collection will be used by the Board in the
Uniform Railroad Costing System (URCS). The Board is authorized,
under 49 U.S.C. 11161, to maintain cost accounting rules for rail
carriers. In 1989, the Board's predecessor, the Interstate Commerce
Commission, adopted URCS as its general purpose costing system.
Adoption of the Unif. R.R. Costing Sys. as a Gen. Purpose Costing
Sys. for All Regul. Costing Purposes, 5 I.C.C.2d 894 (1989). The
Board uses URCS for a variety of regulatory functions. URCS is used
in rate reasonableness proceedings as part of the initial market
dominance determination, and at later stages is used in parts of the
Board's determination as to whether the challenged rate is
reasonable and, when warranted, the maximum rate prescription. URCS
is also used to, among other things, develop variable costs for
making cost determinations in abandonment proceedings, to provide
the railroad industry and shippers with a standardized costing
model, to cost the Board's Carload Waybill Sample to develop
industry cost information, and to provide interested parties with
basic cost information regarding railroad industry operations.

[FR Doc. 2022-09571 Filed 5-6-22; 8:45 am]
BILLING CODE 4915-01-P

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