Proposed Rule2026-09792
Certification of Signal Employees
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 15, 2026
Issuing agencies
Transportation DepartmentFederal Railroad Administration
Abstract
This document responds to petitions for reconsideration of FRA's May 21, 2024 final rule addressing the Certification of Signal Employees. Based on FRA's review and analysis of the issues raised in the petitions for reconsideration, this document proposes to rescind the final rule.
Full Text
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<title>Federal Register, Volume 91 Issue 94 (Friday, May 15, 2026)</title>
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[Federal Register Volume 91, Number 94 (Friday, May 15, 2026)]
[Proposed Rules]
[Pages 27905-27908]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09792]
[[Page 27905]]
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DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
49 CFR Part 246
[Docket No. FRA-2022-0020, Notice No. 5]
RIN 2130-AD04
Certification of Signal Employees
AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).
ACTION: Notice of proposed rulemaking (NPRM).
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SUMMARY: This document responds to petitions for reconsideration of
FRA's May 21, 2024 final rule addressing the Certification of Signal
Employees. Based on FRA's review and analysis of the issues raised in
the petitions for reconsideration, this document proposes to rescind
the final rule.
DATES: Written comments on the proposed rule must be received by July
14, 2026. FRA may consider comments received after that date, but only
to the extent practicable.
ADDRESSES:
Comments: Comments related to Docket No. FRA-2022-0020 may be
submitted by going to <a href="https://www.regulations.gov">https://www.regulations.gov</a> and following the
online instructions for submitting comments.
Instructions: All submissions must include the agency name, docket
number (FRA-2022-0020), and Regulatory Identification Number (RIN) for
this rulemaking (2130-AD04). All comments received will be posted
without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>; this includes any
personal information. Please see the Privacy Act heading in the
SUPPLEMENTARY INFORMATION section of this document for Privacy Act
information related to any submitted comments or materials.
Docket: For access to the docket to read background documents or
comments received, go to <a href="https://www.regulations.gov">https://www.regulations.gov</a> and follow the
online instructions for accessing the docket.
FOR FURTHER INFORMATION CONTACT: Cory Johnson, Railroad Safety
Specialist, Signal, Train Control, and Crossings Division, FRA,
telephone: (701) 516-6594, email: <a href="/cdn-cgi/l/email-protection#0c6f637e7522666364627f63624c686378226b637a"><span class="__cf_email__" data-cfemail="0f6c607d7621656067617c60614f6b607b21686079">[email protected]</span></a>; or Kathryn
Gresham, Attorney Adviser, FRA, telephone: (202) 577-7142, email:
<a href="/cdn-cgi/l/email-protection#442f25302c363d2a6a233621372c252904202b306a232b32"><span class="__cf_email__" data-cfemail="e28983968a909b8ccc859087918a838fa2868d96cc858d94">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
On May 31, 2023, FRA published an NPRM proposing the establishment
of signal employee certification requirements in 49 CFR part 246 (part
246).\1\ The NPRM was issued in response to section 402 of the Rail
Safety Improvement Act of 2008 (RSIA) Public Law 110-432, 122 Stat.
4848, 4884 (Oct. 16, 2008) (49 U.S.C. 20162 note), which required the
Secretary of Transportation (Secretary) to submit a report to Congress
addressing whether certification of ``certain crafts or classes'' of
railroad employees or contractors, including signal repair and
maintenance employees, was necessary to ``reduce the number and rate of
accidents and incidents or to improve railroad safety.'' If the
Secretary determined it was necessary to require the certification of
certain crafts or classes to improve railroad safety, section 402 of
the RSIA stated the Secretary may prescribe such regulations. On
November 4, 2015, the Secretary submitted a report to Congress stating
that, based on FRA's preliminary research, signal-repair employees were
one of the most viable railroad crafts for certification.\2\
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\1\ 88 FR 35632 (May 31, 2023).
\2\ FRA-2022-0020-0001.
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FRA published a final rule on May 21, 2024, (``2024 final rule'')
requiring railroads to develop written programs for certifying signal
employees who work on signal systems and signal-related technology on
their networks.\3\ Under this rule, railroads are required to have
formal processes for training signal employees, as well as verifying
that each signal employee has the requisite knowledge, skills, safety
record, and abilities to perform all of the safety-related signal
employee duties mandated by Federal laws and regulations prior to
certification. In addition, railroads are required to have formal
processes for revoking certification for signal employees who violate
specified minimum requirements.
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\3\ 89 FR 44830 (May 21, 2024).
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This rule requires all Class I railroads (including the National
Railroad Passenger Corporation (Amtrak)) and railroads providing
commuter service to submit their signal employee certification programs
to FRA by March 17, 2025.\4\ Class II and Class III railroads have
until November 12, 2025 to submit their signal employee certification
programs to FRA under the current rule.\5\ Any railroad that commences
operations after July 22, 2024 (the effective date of the final rule)
must submit its signal employee certification program to, and obtain
approval from, FRA prior to installing, implementing, or operating a
signal system subject to part 246.\6\ Furthermore, as of March 17,
2025, railroads are not allowed to permit or require that a person
perform service as a certified signal employee unless such person is
certified through the designation system described in 49 CFR
246.105(c)-(d).\7\
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\4\ 49 CFR 246.103(a)(1).
\5\ 49 CFR 246.103(a)(2).
\6\ 49 CFR 246.103(b).
\7\ 49 CFR 246.105(e). FRA is exercising its enforcement
discretion and not taking enforcement action on the current
deadlines in 49 CFR 246.103(a)-(b) and 246.105(c)-(e).
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On July 12, 2024, the Association of American Railroads (AAR), the
American Short Line and Regional Railroad Association (ASLRRA), and the
Commuter Rail Coalition (CRC) filed timely petitions for
reconsideration of the Signal Employee Certification final rule.\8\
Subsequently, on August 6, 2024, the American Public Transportation
Association (APTA) submitted a letter urging FRA to extend the deadline
for commuter railroads to submit their certification programs.\9\ This
letter was not submitted by the deadline for submitting petitions for
reconsideration. However, FRA is treating APTA's letter as a petition
for reconsideration.
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\8\ FRA-2022-0020-0040, FRA-2022-0020-0042, and FRA-2022-0020-
0039. ASLRRA endorsed AAR and CRC's petitions. CRC endorsed AAR and
ASLRRA's petitions. AAR endorsed ASLRRA and CRC's petitions with
respect to the issue of allowing contractors to certify signal
employees.
\9\ FRA-2022-0020-0041.
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FRA issued a response to these petitions for reconsideration on
January 17, 2025. The response stated that FRA was granting APTA's
petition and would initiate a rulemaking to extend the deadlines for
all railroads to submit their signal employee certification program to
FRA by six months. The response also stated FRA's intent to grant in
part and deny in part AAR, ASLRRA, and CRC's petitions.\10\
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\10\ FRA-2022-0020-0047.
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On February 6, 2025, representatives from ASLRRA, AAR, and CRC met
with FRA to discuss their concerns with part 246 which they raised in
their petitions for reconsideration.\11\ On March 14, 2025, FRA issued
a follow-up letter to its January 17, 2025 response to the petitions
for reconsideration and announced its intention to initiate a
rulemaking to extend certain compliance dates in part 246 by one year,
rather than the six months considered previously. The letter also
stated that FRA would not take
[[Page 27906]]
enforcement action against railroads for failing to meet the current
deadlines in part 246. In addition, the letter stated that, after
further consideration, and consistent with Executive Order (E.O.)
14219, Ensuring Lawful Governance and Implementing the President's
``Department of Government Efficiency'' Deregulatory Initiative,\12\
FRA was reopening its review and analysis of the issues raised in the
petitions.\13\
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\11\ A record of this meeting was placed in the docket for this
rulemaking on <a href="http://regulations.gov">regulations.gov</a>. FRA-2022-0020-0048.
\12\ 90 FR 10583 (Feb. 19, 2025).
\13\ FRA-2022-0020-0049.
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In this NPRM, FRA is proposing to rescind part 246 in its entirety.
While FRA is undertaking this rulemaking to rescind part 246 in its
entirety, it will place on hold its review of any signal employee
certification programs it has received or will receive during the
pendency of this rulemaking. In addition, during the pendency of this
rulemaking, FRA will continue to exercise its enforcement discretion
and will not take enforcement action based on the current deadlines in
49 CFR 246.103(a)-(b) and 246.105(c)-(e).
II. Section-by-Section Analysis
As noted above, FRA received petitions for reconsideration of the
2024 final rule from AAR, ASLRRA, CRC, and APTA. These petitions asked
FRA to revise part 246 to address a range of concerns presented by the
final rule. For example, CRC requested that part 246 be amended to
allow contractors to certify signal employees because: (1) part 246
places the obligations of certification on parties that do not have the
necessary resources or expertise to certify signal employees, such as
small commuter railroads; (2) contractors are in a better position to
track, monitor, and keep records related to their employees; and (3)
requiring multiple railroads to carry out the same task would lead to
duplicative work and could result in different railroads reaching
different conclusions about the same individual.\14\ ASLRRA's petition
expressed concern that the requirement that railroads provide each
certified signal employee with at least one unannounced compliance test
each year would result in an inefficient waste of resources. Because
many short line railroads utilize the same contractor(s), ASLRRA
asserted that dozens of railroads would have to certify the same
individual and these contract signal employees would have to spend
numerous days each year on operational testing.\15\ AAR expressed
concern that part 246 does not provide a definitive timeline for when
FRA would issue decisions approving or disapproving railroad signal
employee certification programs. AAR contended potential delays could
create confusion and make it impossible for railroads to plan for
implementation of their certification programs, which ultimately would
affect railroads' ability to hire, train, and qualify new signal
employees.\16\
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\14\ FRA-2022-0020-0039.
\15\ FRA-2022-0020-0042.
\16\ FRA-2022-0020-0040.
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With respect to the rule's definition of ``signal employee'' in 49
CFR 246.7, CRC's petition expressed concern that the definition could
be interpreted to include a broad swath of employees, which would make
compliance with part 246 impracticable, impossible, unreasonable, and
not in the public interest.\17\ AAR's petition noted that the
definition of ``signal employee'' does not align with the statutory
definition of ``signal employee'' in the federal hours of service law
(49 U.S.C. 21101(4)). AAR contended that this misalignment results in
unnecessary confusion in determining who is covered by part 246.\18\
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\17\ FRA-2022-0020-0039.
\18\ FRA-2022-0020-0040.
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AAR's petition also expressed concern that the rule's definition of
``signal system'' in 49 CFR 246.7 exceeds the statutory definition of
this term in 49 U.S.C. 20501 and improperly includes components that
are in non-signaled territory, that are not integrated with signal or
train control systems, and that are not otherwise connected to signal
or train control systems.\19\
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\19\ FRA-2022-0020-0040.
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In addition, AAR expressed concern about the estimated costs of
part 246 being greater than the estimated benefits.\20\ FRA estimated
the costs and benefits of the 2024 final rule and determined the total
10-year costs were estimated to be $9.4 million (Present Value (PV), 7
percent), and total 10-year benefits were estimated to be $2.9 million
(PV, 7 percent). Net costs of the 2024 final rule were estimated to be
$6.5 million (PV, 7 percent) and annualized net costs were estimated to
be $0.9 million (PV, 7 percent).
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\20\ FRA-2022-0020-0040.
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Lastly, the petitions raised issues regarding changes in ownership
for short line railroads and the rule's definition of a ``material
modification.'' Regarding ownership changes, ASLRRA noted that short
line railroads change ownership more frequently than Class I railroads
and would be adversely affected by Sec. 246.103(b). Specifically,
ASLRRA alleged that a railroad with a program approved previously may
have to stop operations if there is a change in ownership while it
resubmits its program and waits for FRA approval, which would result in
an unnecessary disruption to railroad operations.\21\ AAR contended
that FRA's definition of ``material modification'' was overbroad and
should only apply to significant content-based changes to a railroad's
program. AAR noted that the burden of getting minor adjustments to a
program approved by FRA would discourage railroads from investing in
new ways to train their employees and from making other changes to
enhance their programs.\22\
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\21\ FRA-2022-0020-0042.
\22\ FRA-2022-0020-0040.
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All four petitions for reconsideration are available to the public
in the docket for this rulemaking which can be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.\23\ FRA welcomes comments from the public on any
of the issues raised in these petitions.
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\23\ FRA-2022-0020-0039; FRA-2022-0020-0040; FRA-2022-0020-0041;
FRA-2022-0020-0042.
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Based on FRA's review of these issues raised in the petitions for
reconsideration, and in accordance with E.O. 14219, FRA has concluded
preliminarily that rescission of the 2024 final rule in its entirety is
warranted because the expected benefits do not justify the expected
costs. In the 2024 final rule, FRA discussed unquantified safety
benefits relating to ``accident clean up, third party property damage,
lost lading, environmental damage, loss of economic activity to the
community, and train delays.'' FRA is requesting public comment or
additional information on these unquantified safety benefits. FRA's
proposal to rescind part 246 in its entirety would eliminate all the
issues and concerns that were raised in the petitions for
reconsideration and would eliminate the estimated costs associated with
the 2024 final rule.
While FRA has the statutory authority to issue regulations
requiring signal employee certification, it is not obligated to issue
such regulations. Specifically, the RSIA provides that ``[t]he
Secretary may prescribe regulations requiring the certification of
certain crafts or classes of employees that the Secretary determines .
. . are necessary to reduce the number and rate of accidents and
incidents or to improve railroad safety.'' \24\ Since this statute is
permissive with respect to establishing additional certification
requirements for railroad crafts other than locomotive engineers and
conductors, FRA is under no statutory obligation to require the
certification of signal employees. Indeed, given the above preliminary
[[Page 27907]]
determination that rescission of the 2024 rule is warranted because the
expected benefits do not justify the expected costs, it is in the
interest of the public for FRA to decline to require certification of
signal employees.
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\24\ RSIA, sec. 402 (emphasis added).
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For the reasons stated above, FRA proposes to rescind part 246 in
its entirety. If FRA issues a final rule that rescinds part 246, FRA
will continue to gather data on this issue and may reassess in the
future whether certification requirements for signal employees are
warranted. Alternatively, if FRA decides not to rescind this rule in
its entirety, FRA proposes to extend the compliance dates for this rule
to provide railroads with additional time to come into compliance with
part 246. The proposed extension could be for a period of approximately
six to twelve months from the effective date of a new final rule and
would provide the regulated community assurance that they would not be
liable for noncompliance with the existing regulation, should FRA
determine not to finalize the rescission of part 246.
III. Regulatory Impact and Notices
A. Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures
FRA has considered the impact of this NPRM under E.O. 12866 (58 FR
51735, Oct. 4, 1993), Regulatory Planning and Review, and DOT
Regulatory Policies and Procedures. The Office of Management and Budget
(OMB) Office of Information and Regulatory Affairs determined that this
NPRM is not a significant regulatory action under section 3(f) of E.O.
12866.
FRA is proposing to rescind the May 21, 2024 final rule addressing
the Certification of Signal Employees. FRA has analyzed the potential
costs and benefits of this proposed rule.
In the 2024 final rule, FRA estimated 10-year costs of $9.4 million
(PV, 7 percent). If FRA finalizes the proposed rescission of that final
rule, those costs would become a cost savings. Table 1 shows the total
10-year cost savings of this proposed rule.
Table 1--Total 10-Year Cost Savings
[2020 Dollars]
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Present value 7% Present value 3%
10-Year cost savings ($) ($) ($) Annualized 7% ($) Annualized 3% ($)
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12,178,832.................... 9,386,306 10,821,350 1,336,399 1,268,592
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In the 2024 final rule, FRA estimated 10-year benefits of $2.9
million (PV, 7 percent), which would no longer be realized if the 2024
final rule is rescinded.
FRA recognizes there may be some railroads who may have begun to
comply with the 2024 final rule and therefore, incurred costs. However,
FRA expects that the cost savings that would be realized from
rescinding the 2024 rule ultimately are greater than the foregone
safety benefits.
B. Executive Order 14192 (Unleashing Prosperity Through Deregulation)
E.O. 14192 (90 FR 9065, Jan. 31, 2025), Unleashing Prosperity
Through Deregulation, requires that for ``each new [E.O. 14192
regulatory action] issued, at least ten prior regulations be identified
for elimination.'' \25\ Implementation guidance for E.O. 14192 issued
by OMB (Memorandum M-25-20, Mar. 26, 2025) defines two different types
of E.O. 14192 actions: an E.O. 14192 deregulatory action, and an E.O.
14192 regulatory action.\26\
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\25\ Executive Office of the President. Executive Order 14192 of
January 31, 2025. Unleashing Prosperity Through Deregulation. 90 FR
9065-9067. Feb. 6, 2025.
\26\ Executive Office of the President. OMB. Guidance
Implementing Section 3 of Executive Order 14192, Titled ``Unleashing
Prosperity Through Deregulation.'' Memorandum M-25-20. Mar. 26,
2025.
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An E.O. 14192 deregulatory action is defined as ``an action that
has been finalized and has total costs less than zero.'' This proposed
rule, if finalized as proposed, is expected to have total costs less
than zero or negligible costs, and therefore it would be considered an
E.O. 14192 deregulatory action. The rescission of the 2024 final rule
is expected to result in an estimated 10-year cost savings of $9.4
million, discounted at 7 percent.
C. Regulatory Flexibility Act and Executive Order 13272
The Regulatory Flexibility Act ((RFA), 5 U.S.C. 601 et seq.), as
amended by the Small Business Regulatory Enforcement Fairness Act of
1996,\27\ and E.O. 13272 (67 FR 53461, Aug. 16, 2002) require agency
review of proposed and final rules to assess their impacts on small
entities. When an agency issues a rulemaking proposal, the RFA requires
the agency to ``prepare and make available for public comment an
initial regulatory flexibility analysis'' which will ``describe the
impact of the proposed rule on small entities.'' \28\ 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.
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\27\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
\28\ 5 U.S.C. 603(a).
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FRA certified that the 2024 final rule for Certification of Signal
Employees \29\ will not have a significant economic impact on a
substantial number of small entities. Although this proposed rule,
which would rescind that final rule, would impact a substantial number
of small entities, it would provide a positive impact by removing all
requirements related to certification of signal employees. FRA
recognizes there may be some small entities who may have begun to
comply with the 2024 final rule and therefore, incurred costs. However,
FRA expects that the cost savings realized from rescinding this rule
would be greater than any potential safety benefits. This proposed rule
would not therefore have a significant impact on a substantial number
of small entities and FRA expects to certify that this rule would not
have a significant economic impact on a substantial number of small
entities.
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\29\ 89 FR 44830, 44865 (May 21, 2024).
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In accordance with section 213(a) of the Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857), FRA
wants to assist small entities in understanding this proposed rule so
they can better evaluate its effects on themselves and participate in
the rulemaking initiative. If the proposed rule would affect your small
business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
consult the person listed under FOR FURTHER INFORMATION CONTACT.
D. Paperwork Reduction Act
There is no new collection of information requirements contained in
this proposed rule and, in accordance
[[Page 27908]]
with the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq., an
information collection submission to OMB is not required. The
recordkeeping and reporting requirements already contained in the 2024
Certification of Signal Employees final rule \30\ were approved by OMB
on June 6, 2024. With the proposed recission of this rule, FRA intends
to discontinue the associated information collection, OMB Control No.
2130-0638, when a final rule is published.
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\30\ 89 FR 44830, 44867 (May 21, 2024).
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E. Environmental Assessment
FRA has analyzed this proposed rule for the purposes of the
National Environmental Policy Act of 1969 (NEPA). In accordance with 42
U.S.C. 4336 and DOT NEPA Order 5610.1D, FRA has determined that this
rule is categorically excluded pursuant to 23 CFR 771.116(c)(15). This
rulemaking is not anticipated to result in any environmental impacts,
and there are no unusual or extraordinary circumstances present in
connection with this rulemaking.
F. Federalism Implications
This proposed rule would not have a substantial effect 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. Thus, in accordance with E.O. 13132,
Federalism (64 FR 43255, Aug. 10, 1999), preparation of a Federalism
Assessment is not warranted.
G. Unfunded Mandates Reform Act of 1995
This proposed rule would not result in the expenditure, in the
aggregate, of $100,000,000 or more, adjusted for inflation, in any one
year by State, local, or Indian Tribal governments, or the private
sector. Thus, consistent with section 202 of the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104-4, 2 U.S.C. 1532), FRA is not required
to prepare a written statement detailing the effect of such an
expenditure.
H. Energy Impact
E.O. 13211 requires Federal agencies to prepare a Statement of
Energy Effects for any ``significant energy action.'' \31\ FRA has
evaluated this proposed rule in accordance with E.O. 13211 and
determined that this proposed rule is not a ``significant energy
action'' within the meaning of E.O. 13211.
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\31\ 66 FR 28355 (May 22, 2001).
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I. Executive Order 13175 (Tribal Consultation)
FRA has evaluated this proposed rule in accordance with the
principles and criteria contained in E.O. 13175, Consultation and
Coordination with Indian Tribal Governments (Nov. 6, 2000). The
proposed rule would not have a substantial direct effect on one or more
Indian tribes, would not impose substantial direct compliance costs on
Indian tribal governments, and would not preempt tribal laws.
Therefore, the funding and consultation requirements of E.O. 13175 do
not apply, and a tribal summary impact statement is not required.
J. International Trade Impact Assessment
The Trade Agreement Act of 1979 \32\ prohibits Federal agencies
from engaging in any standards or related activities that create
unnecessary obstacles to the foreign commerce of the U.S. Legitimate
domestic objectives, such as safety, are not considered unnecessary
obstacles. The statute also requires consideration of international
standards and where appropriate, that they be the basis for U.S.
standards. This rulemaking is purely domestic in nature and is not
expected to affect trade opportunities for U.S. firms doing business
overseas or for foreign firms doing business in the United States.
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\32\ 19 U.S.C. ch. 13.
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K. Privacy Act Statement
In accordance with 5 U.S.C. 553(c), DOT solicits comments from the
public to better inform its rulemaking process. DOT posts these
comments, without edit, to <a href="http://www.regulations.gov">http://www.regulations.gov</a>, as described in
the system of records notice, DOT/ALL-14 FDMS, accessible through
<a href="http://www.transportation.gov/privacy">www.transportation.gov/privacy</a>. To facilitate comment tracking and
response, we encourage commenters to provide their name, or the name of
their organization; however, submission of names is completely
optional. Whether or not commenters identify themselves, all timely
comments will be considered fully. If you wish to provide comments
containing proprietary or confidential information, please contact the
agency for alternate submission instructions.
L. Rulemaking Summary
As required by 5 U.S.C. 553(b)(4), a summary of this rule can be
found at <a href="http://regulations.gov">regulations.gov</a>, Docket No. FRA-2022-0020, in the SUMMARY
section of this proposed rule.
List of Subjects in 49 CFR Part 246
Administrative practice and procedure, Signal employee, Penalties,
Railroad employees, Railroad safety, Reporting and recordkeeping
requirements.
PART 246--[REMOVED]
For the reasons stated in the preamble, under the authority of E.O.
14219 and 49 U.S.C. 20103, FRA proposes to remove 49 CFR part 246.
Issued in Washington, DC.
David A. Fink,
Administrator.
[FR Doc. 2026-09792 Filed 5-14-26; 8:45 am]
BILLING CODE 4910-06-P
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