Repealing Special Approval Requirement for Freight Cars More Than 50 Years Old

Issuing agencies

Abstract

This rule amends FRA's freight car safety regulations to repeal the requirement for special approval to place or to continue a freight car in service if it is more than 50 years old or equipped with any design or type component listed in appendix A to part 215. This final rule allows railroads to continue or to place such cars in service with notice to FRA, providing certain information that has previously been required in petitions for special approval.

Full Text

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<title>Federal Register, Volume 91 Issue 167 (Monday, August 31, 2026)</title>
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[Federal Register Volume 91, Number 167 (Monday, August 31, 2026)]
[Rules and Regulations]
[Pages 55756-55762]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17787]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Part 215

[Docket No. FRA-2025-0117]
RIN 2130-AD46


Repealing Special Approval Requirement for Freight Cars More Than 
50 Years Old

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Final rule.

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SUMMARY: This rule amends FRA's freight car safety regulations to 
repeal the requirement for special approval to place or to continue a 
freight car in service if it is more than 50 years old or equipped with 
any design or type component listed in appendix A to part 215. This 
final rule allows railroads to continue or to place such cars in 
service with notice to FRA, providing certain information that has 
previously been required in petitions for special approval.

DATES: This rule is effective September 30, 2026.

FOR FURTHER INFORMATION CONTACT: Check Kam, Mechanical Engineer, Office 
of Railroad Safety, at email: <a href="/cdn-cgi/l/email-protection#e0838885838bce8b818da0848f94ce878f96"><span class="__cf_email__" data-cfemail="d1b2b9b4b2baffbab0bc91b5bea5ffb6bea7">[email&#160;protected]</span></a> or Elliott Gillooly, 
Attorney Adviser, at email: <a href="/cdn-cgi/l/email-protection#0b6e676762647f7f256c626767646467724b6f647f256c647d"><span class="__cf_email__" data-cfemail="31545d5d585e45451f56585d5d5e5e5d4871555e451f565e47">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

I. Discussion of Comments and FRA's Conclusions

    Consistent with Executive Order (E.O.) 14192, Unleashing Prosperity 
Through Deregulation (90 FR 9065, Feb. 6, 2025), and E.O. 14219, 
Ensuring Lawful Governance and Implementing the President's 
``Department of Government Efficiency'' Deregulatory Initiative (90 FR 
10583, Feb. 25, 2025), FRA is reviewing its regulatory requirements in 
parts 200 through 299 of title 49, Code of Federal Regulations (CFR) 
and repealing requirements that are outdated and redundant.

A. Overview of Comments

    On July 1, 2025, FRA published a notice of proposed rulemaking 
(NPRM) intended to reduce the burden on railroads associated with FRA's 
approval process for placing or continuing in service freight cars more 
than 50 years of age or equipped with any design or type of component 
listed in appendix A to part 215. The NPRM proposed to rescind the 
requirement for FRA approval for those cars and to replace the approval 
process with special inspection and testing requirements (90 FR 28633, 
July 1, 2025). The proposed requirements were based on FRA's 
longstanding practice of requiring such inspections and tests as part 
of the approval process.
    FRA received nine comment letters during the 60-day NPRM public 
comment period.\1\ Two comment letters were also received after the 
comment period closed. FRA has considered all comments received to date 
and docketed any that were not directly filed by the commenters at 
<a href="http://www.regulations.gov">www.regulations.gov</a>. Four organizations opposed the regulatory relief 
proposed in the NPRM in its entirety and advocated for FRA to maintain 
the current requirements in Sec.  215.203. These commenters included 
the Brotherhood Railway Carmen Division of the Transportation 
Communications Union (BRC) (joined by the Brotherhood of Locomotive 
Engineers and Trainmen (BLET)); the Transportation Trades Department, 
AFL-CIO (TTD); and the Transportation Division of the International 
Association of Sheet Metal, Air, Rail and Transportation Workers 
(SMART-TD).
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    \1\ <a href="https://www.regulations.gov/document/FRA-2025-0117-0001/comment">https://www.regulations.gov/document/FRA-2025-0117-0001/comment</a>.
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    Other commenters supported FRA's elimination of the special 
approval requirement for freight cars over 50 years old but recommended 
that FRA completely exclude such cars from coverage under Sec.  
215.203. These commenters oppose the requirements that FRA proposed as 
the conditions necessary to place or to keep overage cars in service: a 
shop inspection, brake testing, and certification by the owner that 
overage cars are safe for service. They include the Association of 
American Railroads (AAR); the American Short Line and Regional Railroad 
Association (ASLRRA); \2\ AITX Corporation, GATX Corporation, 
Intermodal Association of North America, National Grain and Feed 
Association, and National Railroad Construction & Maintenance 
Association; \3\ The Greenbrier Companies (Greenbrier); and Herzog 
Railroad Services, Inc. (Herzog).
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    \2\ AAR and ASLRRA filed comments jointly, and ASLRRA filed its 
own supplemental comments separately.
    \3\ The foregoing companies and associations filed comments 
jointly.
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    In addition, FRA received comments from the U.S. Small Business 
Administration, Office of Advocacy, and the U.S. House of 
Representatives Committee on Transportation and Infrastructure, which 
are addressed with other comments below.

[[Page 55757]]

    After consideration of all comments, FRA has adopted its proposal 
with some changes, as detailed in the below Section-by-Section 
Analysis. FRA finds that repealing the special approval process and 
replacing it with a uniform notice requirement provides equivalent 
safety outcomes while reducing burdens on railroads and eliminating the 
added delay involved in petitioning FRA for a special approval.

B. Comments Opposing the NPRM in Its Entirety

    Commenters seeking the withdrawal of this rulemaking in its 
entirety argued that FRA should maintain oversight through its existing 
special approval process due to potential safety concerns related to 
older cars--for example, ``the risks of structural fatigue, outdated 
component designs, and catastrophic mechanical failures increase with 
age'' (SMART-TD); ``[a]ging cars often experience corrosion and 
internal deterioration'' such as cracking in the frame and bolster 
structures or corrosion of underframes and weld seams (TTD); and older 
cars are subject to microcracking and brittle fractures in frame and 
bolster structures, corrosion of underframes and weld seams, issues 
with the structural integrity of handholds, and other exterior safety 
appliance securing points, oversized bolt holes, and brake connection 
points causing binding and fouling (BRC/BLET). TTD and BRC/BLET also 
believe that retrofitting older cars can cause problems, such as 
weakening frames when drilling and welding to make modifications. In 
addition, commenters stated that the NPRM made no provision for 
mandatory speed or load restrictions on older cars, independent 
verification of inspections, or public reporting of inspection results.
    FRA appreciates the comments provided by each of the labor 
organizations. However, after considering the comments and reevaluating 
the proposals in the NPRM, FRA determined that a streamlined 
notification process, as opposed to specific inspection requirements, 
will not compromise safety and will enable FRA to provide sufficient 
oversight.
    All freight cars in service must be inspected for compliance with 
FRA's Freight Car Safety Standards during routine pre-departure 
mechanical inspections under Sec.  215.13. These inspections include, 
at a minimum, examination of each car in a train for any condition 
likely to cause an accident or casualty before the train arrives at its 
destination, including the conditions listed in appendix D to part 215. 
If an older car has any condition not in compliance with part 215, it 
may not be placed or continued in service.
    Though frequent pre-departure inspections are intended to identify 
freight car defects, railroads are not relieved of liability for non-
compliance by virtue of completing the inspection. Though FRA 
inspectors have inspected cars routinely that are the subject of 
special approval applications under the existing regulation, those 
examinations are not a substitute for a railroad's obligation to ensure 
that any freight cars in service on a railroad are in compliance with 
part 215. FRA understands that ensuring the compliance of older freight 
cars or freight cars equipped with components identified in appendix A 
to part 215 often requires those cars to be inspected and maintained 
with heightened care. At any rate, part 215 defects found in-train may 
be cited by FRA inspectors at any time the cars are in service, and 
railroads must repair any such defects that they or FRA identifies.
    To ensure older freight cars remain in compliance with part 215, 
FRA anticipates that railroads and car owners will inspect older 
freight cars as needed for issues that are potentially more likely to 
develop due to the age of the cars. A comprehensive shop inspection may 
be appropriate to identify concerns related to the structural integrity 
of older cars, but FRA is not mandating the specific schedule or 
frequency of such inspections because part 215 compliance is a constant 
requirement for freight cars in service.
    For cars that are interchanged among railroads, AAR Field Manual 
Rules 88 and 90 are more comprehensive than FRA's own regulations. The 
AAR application for approval for increased life status (ILS) requires 
proof of compliance and verification that the units do not have any 
structural defects or weaknesses. A thorough structural inspection is 
performed, including but not limited to the superstructure, underframe 
(including car bodies, body bolsters, side sills, center sills, draft 
sills, and draft pockets), and truck castings. FRA understands AAR Rule 
88 also requires that railroads obtain FRA's authorization to operate 
freight cars beyond 50 years from the date originally built. FRA 
assumes this requirement is intended to reflect the historical 
requirement for FRA approval under 49 CFR 215.203, which is being 
rescinded in this rule.
    In response to commenters' concern that this rule does not include 
speed and load limitations, FRA notes that railroads will be required 
to provide to FRA all the same types of information that have been 
required in petitions for special approval prior to this rule. Based on 
a review of FRA special approvals, FRA has determined that the speed 
and load restrictions in those approvals have generally corresponded to 
the existing use of the car at the time of the application. Railroads 
will most often designate overage cars for a particular type of 
service, accounting for operating conditions and allowable speeds on 
the territory. FRA anticipates that will remain industry practice. 
Moreover, with the information this rule requires railroads to provide, 
FRA will be able to monitor usage of the cars effectively and target 
inspections for compliance with part 215 requirements.

C. Comments Recommending Overage Cars Be Completely Excluded From 
Coverage Under Section 215.203

1. AAR and ASLRRA
    In their jointly filed comment letter, AAR and ASLRRA stated that 
current regulations were developed to address a transitional era when 
many freight cars featured wooden structural elements, and fragile cast 
iron or otherwise obsolete components were still in operation. They 
also stated that overage cars today are safe and suitable for service 
because AAR's technical committees have developed the technical 
standards necessary for the safe operation of railroad rolling stock 
under AAR Field Manual Rule 88 and prohibited specific components in 
interchange, including on older cars, under AAR Rule 90. Therefore, the 
associations recommended that FRA repeal Sec.  215.203(a)(1) (listing 
cars 50 years old or older as restricted cars) because it places what 
they consider to be unnecessary burdens on railroads, car owners, and 
shippers ``that would otherwise use cars more than 50 years old.''
    The associations also commented that FRA may not have considered 
all the burdens associated with the rulemaking in its analysis, citing 
the requirements for a ``comprehensive shop inspection'' every two 
years and the cost of a single-car air brake test (SCABT). The 
associations noted that ``all freight cars are inspected frequently 
while in service,'' and that ``any car that has been in service for 
many years has undergone regular maintenance and upgrades, including 
upgrades required by the car owner and/or by the AAR.'' Commenting on 
the proposed requirement that overage cars receive an SCABT every two 
years, the associations asserted that AAR Rule 90 requires air brake 
components to meet current interchange requirements, so these 
components would be expected to be

[[Page 55758]]

newer than 50 years old. Therefore, they do not believe there is a 
safety justification to require an older car to undergo an SCABT more 
frequently than other, newer cars.
    In supplemental comments, ASLRRA stated that its joint comments 
with AAR focused on cars in interchange service subject to AAR Rules 88 
and 90, but that many short line railroads utilize rail cars in captive 
service, meaning they are not interchanged. ASLRRA stated that FRA did 
not provide the detailed elements of the comprehensive shop inspection 
proposed in the NPRM but, if the inspection would require a car to go 
to a freight car shop facility where the trucks can be removed, short 
line railroads would have to deliver the car to a Class I railroad, 
which would then transport the car to a shop facility because many 
short line railroads do not have such facilities. ASLRRA also commented 
that requiring an SCABT every two years is unnecessary because SCABT 
intervals are already established by 49 CFR 232.305 and ``[b]ecause 
brake control valves and other components are changed out when needed, 
a 50-year-old railcar often has newer brake components than a younger 
car.''
    In response to the associations, FRA agrees that cars meeting AAR 
Rule 88 ILS standards are generally safe for service, provided they 
pass pre-departure inspection requirements like all other freight cars. 
With respect to older cars in captive service, FRA has determined that 
these cars are also generally appropriate for the type of captive 
service that is common in the industry, often at lower speeds over 
limited territories, based on FRA's experience from decades of 
reviewing special approvals. Therefore, this rule does not impose speed 
and load limit restrictions on older cars. Generally, speed and load 
limitations will be determined in accordance with the type of car, type 
of commodity, class of track, terrain, intended routes, and railroad 
operating rules. FRA reminds railroads, however, that part 215 sets the 
minimum standards for freight cars and any freight car not meeting 
those minimum standards, whether it is operated under capacity, at slow 
speed, or over a limited territory, must comply with part 215.
2. AITX Corporation, GATX Corporation, Herzog, Intermodal Association 
of North America, National Grain and Feed Association, National 
Railroad Construction & Maintenance Association, and Greenbrier
    Seven companies and associations submitted a joint comment letter 
stating that freight cars are already subject to frequent inspections, 
modern defect detection systems, and strict component standards that 
ensure safety regardless of age.\4\ They maintain that additional 
requirements for older cars are unnecessary, that AAR Rules 88 and 90 
ensure that older cars meet modern safety standards before being 
allowed to continue in service, and that the safety standards in part 
215 also govern the safe movement and handling of freight cars, 
regardless of age.
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    \4\ <a href="https://www.regulations.gov/comment/FRA-2025-0117-0007">https://www.regulations.gov/comment/FRA-2025-0117-0007</a>.
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    Herzog joined in the above comment letter and submitted a separate 
comment \5\ in support of the rule as proposed in the NPRM but 
requested that FRA consider full repeal of Sec.  215.203, rather than 
requiring inspections and related recordkeeping for overage cars. 
Herzog stated that railcars today are built of high-strength, 
corrosion-resistant materials and are subject to rigorous, routine 
inspection and maintenance under FRA regulations and industry 
standards. Herzog also requested that FRA ``make it clear through the 
proposed changes to the 50-year ban that Maintenance-of-Way (MOW) 
modified freight cars are explicitly included in the rule's scope, 
including ballast cars, tie gondolas, rail-handling equipment, and 
other infrastructure support assets, as this will [be] very beneficial 
when they are interchanged between distinct railroads.''
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    \5\ <a href="https://www.regulations.gov/comment/FRA-2025-0117-0006">https://www.regulations.gov/comment/FRA-2025-0117-0006</a>.
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    In addition, Greenbrier commented in detail that AAR rules and 
industry practices already provide sufficient standards for overage 
cars, making FRA inspection and reporting requirements redundant and 
unnecessary. Greenbrier recommended that instead of the rule that FRA 
proposed, it would be better to establish a procedure to approve an 
existing industry safety standard, similar to the process available for 
safety appliances in 49 CFR 231.33. Alternatively, Greenbrier proposed 
incorporating by reference AAR Rule 88 ILS standards.
    In response to Greenbrier's suggestions, FRA believes that the 
special approval process for adopting an industry safety standard 
related to safety appliances in Sec.  231.33 is not an appropriate 
process to address the restricted freight cars that are the subject of 
this rule. FRA's intent is to remove the burden of seeking special 
approval for overage freight cars.
    With respect to Herzog's comment that MOW cars should be included 
in the rule's scope, FRA directs attention to Sec.  215.3(c)(3), which 
provides that MOW equipment (including self-propelled MOW equipment) is 
excluded from coverage by part 215 if that equipment is not used in 
revenue service and is stenciled in accordance with Sec.  215.305. 
Otherwise, this rule requires notice to FRA with the information 
specified in Sec.  215.203 for all freight cars over 50 years old and 
freight cars with restricted components.
3. U.S. Small Business Administration Office of Advocacy
    The U.S. Small Business Administration (SBA) Office of Advocacy is 
an independent office that seeks to ensure small business concerns are 
heard in the Federal regulatory process. FRA staff met with an SBA 
representative on August 28, 2025, as documented in the docket for this 
rulemaking. SBA submitted written comments on the NPRM on September 15, 
2025. SBA stated that it hosted a small business regulatory roundtable 
on April 14, 2025, to hear directly from small businesses and their 
representatives about which DOT regulations are most burdensome and in 
need of review, and it met with ASLRRA on August 27, 2025.
    Consistent with its work on behalf of small businesses and its 
outreach to stakeholders, SBA commented that ``a 50-year limit is not 
distinctly special from some other age limit, does not account for 
modern technology and maintenance practices, and does not factor 
existing regulatory provisions (such as 49 CFR 215.13) that already 
require that freight cars be inspected every time they are placed in 
service. Further, the modern rail industry operates on comprehensive 
industry consensus standards which dictate that all rail cars must be 
inspected and repaired before they can be placed in service.'' 
Therefore, SBA advised that FRA should adopt the approach proposed by 
ASLRRA, removing any regulation specific to 50-year-old cars from Sec.  
215.203.
    SBA also disagreed with FRA's certification under the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 605(b)) that the NPRM would not have a 
significant economic impact on a substantial number of small entities. 
SBA believes that the NPRM would impose a new, de facto mandatory 
process and, therefore, would not be voluntary. SBA recommended FRA 
evaluate the cost of the proposed regulation compared to the existing 
baseline and answer the question ``what does a regulated entity do now 
and what would they be required to do if the proposed rule was 
finalized?'' SBA

[[Page 55759]]

commented that FRA should consider ``repeal[ing] the 50-year threshold 
in [section] 215.203(a)(1)'' and that it believes the proper test under 
the RFA to be whether an impact is significant, regardless of whether 
the impact is positive or negative. SBA suggested that FRA consider the 
status quo (what regulated entities must do before this rule is 
finalized) and compare those impacts to regulatory requirements after 
Sec.  215.203 has been amended.
    FRA maintains that it did indeed consider this no-action baseline 
in the NPRM and continues to consider this no-action baseline in this 
final rule. FRA is confident that this rule reduces burdens on industry 
in meaningful ways, and to a greater extent than the NPRM. Repealing 
the special approval process and replacing it with a notice requirement 
provides equivalent safety outcomes while reducing burdens on railroads 
and eliminating the added delay involved in petitioning FRA for a 
special approval. FRA reaffirms that these qualitative factual 
statements assess a no-action baseline and provide the basis for FRA's 
certification.
    A regulatory flexibility analysis is required when an NPRM or final 
rule is expected to have a significant economic impact on a substantial 
number of small entities. We certified the regulatory flexibility 
analysis in the NPRM because the rule will not have a significant 
impact (positive or negative) on a substantial number of small 
entities. Though some small entities may be impacted by this final 
rule, FRA does not believe that impact will be significant. FRA did 
consider both the positive and negative impacts for significance 
consideration. Railroads that were previously required to follow the 
existing special approvals process will have reduced costs under this 
rule. For those that have not previously sought special approval, or 
that avoided the special approval process due to its costs or any other 
reason, FRA expects the costs of providing the information required by 
this rule to be minimal. The Paperwork Reduction Act (PRA) analysis in 
this final rule (section III.D) also supports this certification. The 
PRA analysis states that the rule does not add any new information 
because the information collected is not changing and the PRA analysis 
corrects for a reduction in burden. The cost in the PRA analysis per 
railroad is approximately $133. A total of $133 is not likely to have a 
significant impact on any small railroad. As SBA did not provide any 
quantitative data to support the significant impact on small entities, 
FRA continues to maintain that this final rule will not have a 
significant economic impact on a substantial number of small entities 
and therefore a certification is appropriate to comply with the RFA.
4. U.S. House of Representatives Committee on Transportation and 
Infrastructure
    The House Committee on Transportation and Infrastructure 
(Committee), in a letter dated November 24, 2025 and signed by the 
Chair of the Committee, expressed support for the NPRM.\6\ The 
Committee also urged FRA to ``remove new and separate requirements, 
such as biennial shop inspections and redundant air brake tests.'' FRA 
appreciates the Committee's attention to this rulemaking and its 
comments and notes that this rule adopts the recommendation to repeal 
the special approval process without adding new or redundant inspection 
requirements.
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    \6\ <a href="https://www.regulations.gov/comment/FRA-2025-0117-0013">https://www.regulations.gov/comment/FRA-2025-0117-0013</a>.
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II. Section-by-Section Analysis

Section 215.203--Restricted Cars

    Prior to this rule, Sec.  215.203 restricted the operation of any 
railroad freight car that is more than 50 years old, and any car of a 
design or equipped with a component listed in appendix A to this part, 
by prohibiting its placement or continuance in service, except under 
conditions approved by FRA. A railroad was required to petition FRA to 
obtain the required special approval.
    This final rule revises Sec.  215.203 to provide uniform notice 
requirements for all freight cars more than 50 years old. Accordingly, 
because they are otherwise covered by the rule due to their age, the 
rule removes as unnecessary the specific identification of railroad 
freight cars that are ``[e]quipped with a Duryea underframe constructed 
before April 1, 1950, except for a caboose which is operated as the 
last car in a train'' as a type of restricted freight car under former 
Sec.  215.203(a)(3), as proposed in the NPRM. In addition, the appendix 
C defect code associated with Sec.  215.203 has been updated to reflect 
the changes made by this rule.
    FRA recognizes that there are many restricted cars now in service 
under previously issued special approvals. Each special approval has an 
expiration date, generally five years from issuance. At the same time, 
this rule allows railroads to operate restricted cars with notice to 
FRA, rather than special approval. Therefore, railroads may continue to 
operate restricted cars under the terms of an existing special 
approval, or they may comply with the new notice requirement in Sec.  
215.203. FRA has added subsection (c) to make clear that existing 
special approvals may still be relied on after this rule is effective. 
If a railroad chooses to comply with the new notice requirement for any 
restricted car now in service under a special approval, the existing 
special approval and its associated conditions will be superseded by 
this rule, but only as to conditions that relate to the car's 
restricted status under Sec.  215.203. Any other FRA approvals or 
waivers and their associated conditions that are not directly based on 
the car's age or the presence of restricted components under appendix A 
to part 215 are not affected by this rule and remain in effect. FRA 
invites railroad car owners to contact FRA should they have any 
questions about the requirements applicable to any car or the car's 
regulatory status.

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 final rule under E.O. 12866 
(58 FR 51735, Oct. 4, 1993), Regulatory Planning and Review, and DOT's 
rulemaking procedures, 49 CFR part 5, subpart B. The Office of 
Information and Regulatory Affairs within the Office of Management and 
Budget (OMB) determined that this final rule is not a significant 
regulatory action under section 3(f) of E.O. 12866.
    FRA analyzed the potential costs and benefits of this final rule. 
Railroads will benefit from this regulatory relief because they will be 
able to keep certain older cars in service, provided they submit notice 
to FRA with information about those cars. This notice includes readily 
available information and can be provided via email, so the associated 
costs will be minimal. Currently, cars over 50 years old are subject to 
the special approval process and must comply with the conditions of 
approval in addition to the general requirements of part 215. Under 
this final rule, following notice to FRA, these older cars will only 
have to comply with the general requirements of part 215. Therefore, 
railroads will avoid the compliance costs associated with the special 
approval conditions. Further, railroads will avoid the costs associated 
with filing petitions for special approval with FRA, including the time 
and expense required to complete the petitions and have employees 
present for FRA inspections prior to FRA's decision. The Government 
will avoid costs associated with processing special

[[Page 55760]]

approvals, including the time and expense required to do so.
    Cars that are interchanged are subject to AAR Interchange Rules 
regardless of FRA's regulation of overage cars and railroads with cars 
that are approved under AAR's ILS process will avoid all costs of 
compliance with Sec.  215.203 for up to 65 years from the date of 
original construction (15 years beyond the age of 50).

B. E.O. 14192 (Unleashing Prosperity Through Deregulation)

    E.O. 14192, Unleashing Prosperity Through Deregulation, requires 
that for ``each new [E.O. 14192 regulatory action] issued, at least ten 
prior regulations be identified for elimination.'' \7\ Implementation 
guidance for E.O. 14192 issued by OMB defines two different types of 
E.O. 14192 actions: an E.O. 14192 deregulatory action, and an E.O. 
14192 regulatory action.\8\
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    \7\ Executive Office of the President, Executive Order 14192 of 
January 31, 2025, Unleashing Prosperity Through Deregulation, 90 FR 
9065-9067 (Feb. 6, 2025).
    \8\ 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 rule is 
expected to have net benefits, and it will therefore be considered an 
E.O. 14192 deregulatory action upon issuance.

C. Regulatory Flexibility Act and E.O. 13272

    The RFA, as amended by the Small Business Regulatory Enforcement 
Fairness Act of 1996,\9\ requires Federal agencies to consider the 
effects of the regulatory action on small business and other small 
entities and to minimize any significant economic impact. 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 businesses. The term ``small entities'' comprises 
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 of less than 50,000 (5 
U.S.C. 601(6)). FRA received an SBA comment letter and has addressed 
SBA's comments in section I.C.3 of this preamble.
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    \9\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
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    No regulatory flexibility analysis is required, however, if the 
head of an Agency or an appropriate designee certifies that the rule 
will not have a significant economic impact on a substantial number of 
small entities. 5 U.S.C. 605(b). This final rule replaces the special 
approval process for cars over 50 years old with a requirement that 
railroads provide notice to FRA with specific information. The general 
requirements of part 215 continue to apply to these cars. Therefore, 
railroads will see a cost savings: they will no longer have to navigate 
the special approvals process or comply with the associated conditions 
of a special approval for overage cars. Though they must submit notice 
to FRA including information about the relevant cars, this notice 
includes readily available information and can be provided via email, 
so the associated costs will be minimal. In addition, the PRA analysis 
of this final rule states that the rule does not add any new 
information because the information collected is not changing and the 
PRA analysis corrects for a reduction in burden. The cost in the PRA 
analysis per railroad is approximately $133. A total of $133 is not 
likely to have a significant impact on any small railroad. Overall, FRA 
expects the minimal costs of compliance to be outweighed by the avoided 
costs of navigating the special approval process and subsequent 
compliance with the conditions of that approval, resulting in cost 
savings for small entities. Therefore, some small entities may be 
impacted by this final rule, but FRA does not anticipate significant 
impacts. Consequently, FRA certifies that this final rule will not have 
a significant economic impact on a substantial number of small 
entities.

D. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995,\10\ FRA is 
seeking OMB approval to revise the information collection estimates in 
OMB Control No. 2130-0519, corresponding to part 215, which was last 
approved April 24, 2023.\11\
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    \10\ 44 U.S.C. 3501 et seq.
    \11\ See OMB Control No. 2130-0519, Bad Order and Home Shop Card 
and Stenciling Reporting Mark, <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202301-2130-003">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202301-2130-003</a>.
---------------------------------------------------------------------------

    This rule does not add any new information collection requirements 
because the type of information collected under Sec.  215.203 is not 
changing. Information that was previously required to be included in 
petitions for special approval will now be required in notices to FRA. 
However, FRA has determined that the information collection request 
associated with OMB Control No. 2130-0519 should be updated to reflect 
anticipated burden changes, including reductions in burden, associated 
with Sec.  215.203 as revised by this rule. The table below contains 
the revised information collection requirements associated with Sec.  
215.203 and the estimated time to fulfill the requirement.
---------------------------------------------------------------------------

    \12\ The dollar equivalent cost throughout this table is derived 
from the 2023 Surface Transportation Board Full Year Wage A&B data 
series using employee group 200 (Professional & Administrative) 
hourly wage rate of $50.93. The total burden wage rate (straight 
time plus 75 percent) used in the table is $89.13 ($50.93 x 1.75 = 
$89.13).

----------------------------------------------------------------------------------------------------------------
                                                                   Average time                    Total annual
         CFR section              Respondent       Total annual    per response    Total annual     dollar cost
                                   universe         responses         (hours)      burden hours     equivalent
                                                 (A)............             (B)     (C) = A * B  (D) = C * Wage
                                                                                                      Rates \12\
----------------------------------------------------------------------------------------------------------------
215.203 Restricted cars:
    --(a) Notice by railroad   754 railroads...  30                          1.5              45       $4,010.85
     to FRA of intent to                          notifications
     operate a freight car                        to FRA.
     that is over 50 years
     old or equipped with a
     restricted component
     (Revised requirement).
                              ----------------------------------------------------------------------------------
    Total....................  754 railroads...  30 responses...  ..............              45        4,010.85
----------------------------------------------------------------------------------------------------------------


[[Page 55761]]

    All estimates include the time for reviewing instructions; 
searching existing data sources; gathering or maintaining the needed 
data; and reviewing the information. For information or a copy of the 
paperwork package submitted to OMB, contact Ms. Joanne Swafford, 
Information Collection Clearance Officer, at email: 
<a href="/cdn-cgi/l/email-protection#f49e9b959a9a91da87839592929b8690b4909b80da939b82"><span class="__cf_email__" data-cfemail="c0aaafa1aeaea5eeb3b7a1a6a6afb2a480a4afb4eea7afb6">[email&#160;protected]</span></a> or telephone: 757-897-9908.
    OMB is required to decide concerning the collection of information 
requirements contained in this final rule between 30 and 60 days after 
publication of this document in the Federal Register. Therefore, a 
comment to OMB is best assured of having its full effect if OMB 
receives it within 30 days of publication of this document. FRA is not 
authorized to impose a penalty on persons for violating information 
collection requirements that do not display a current OMB control 
number, if required.

E. Environmental Assessment

    FRA has analyzed this 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 final rule will 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 final rule will 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, Actions Concerning Regulations That Significantly 
Affect Energy Supply, Distribution, or Use (66 FR 28355, May 22, 2001), 
requires Federal agencies to prepare a Statement of Energy Effects for 
any ``significant energy action.'' \13\ FRA has evaluated this final 
rule in accordance with E.O. 13211 and determined that this final rule 
is not a ``significant energy action'' within the meaning of E.O. 
13211.
---------------------------------------------------------------------------

    \13\ 66 FR 28355 (May 22, 2001).
---------------------------------------------------------------------------

I. E.O. 13175 (Tribal Consultation)

    FRA has evaluated this final rule in accordance with the principles 
and criteria contained in E.O. 13175, Consultation and Coordination 
with Indian Tribal Governments (65 FR 67249, Nov. 6, 2000). The final 
rule will not have a substantial direct effect on one or more Indian 
tribes, will not impose substantial direct compliance costs on Indian 
tribal governments, and will 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 prohibits Federal agencies from 
engaging in any standards or related activities that create unnecessary 
obstacles to the foreign commerce of the United States. 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 final rule 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.

List of Subjects in 49 CFR Part 215

    Freight, Penalties, Railroad safety, Reporting and recordkeeping 
requirements.

The Final Rule

    For the reasons discussed in the preamble, FRA amends part 215 of 
chapter II, subtitle B of title 49, Code of Federal Regulations as 
follows:

PART 215--RAILROAD FREIGHT CAR SAFETY STANDARDS

0
1. The authority citation for part 215 is revised to read as follows:

    Authority:  49 U.S.C. 20102-03, 20107, 20171; 28 U.S.C. 2461 
note; and 49 CFR 1.89.


0
2. Revise Sec.  215.203 to read as follows:


 Sec.  215.203  Restricted cars.

    (a) Except as provided in paragraphs (b) and (c) of this section, a 
railroad may place or continue in service a railroad freight car that 
is more than 50 years old, measured from the date of original 
construction, or a freight car that is equipped with any design or type 
component listed in appendix A to this part, only after providing 
notice to FRA at <a href="/cdn-cgi/l/email-protection#175145564545445a47525773786339707861"><span class="__cf_email__" data-cfemail="d29480938080819f829792b6bda6fcb5bda4">[email&#160;protected]</span></a>. The notice must include the 
following information:
    (1) The name and principal business address of the operating 
railroad.
    (2) The name and address of the entity that controls the operation 
and maintenance of each car involved.
    (3) The type, capacity, reporting marks, and car number of each 
car, and its condition, status, and age measured from the date of 
original construction.
    (4) The design, type component, or other item that causes each car 
to be restricted.
    (5) The maximum load each car will carry.
    (6) The maximum speed at which each car will be operated.
    (7) The territorial limits within which each car will be operated 
and the name of each railroad that will receive each car in 
interchange.
    (b) Railroad freight cars approved under a standard such as the 
Office Manual of the Association of American Railroads' Interchange 
Rule 88 Increased Life Status process (ILS) are exempt from the 
requirements of this section for up to 65 years from the date of 
original construction, provided that the month and year the car was 
made available for service under the appropriate standard and the 
abbreviation of the standard (such as ``ILS'') must be stenciled on the 
car in characters at least 1 inch high, immediately following ``R-
AGE.''
    (c) For purposes of compliance with this section--
    (1) A railroad with freight cars that have received FRA approval as 
specified in this section in effect on September 29, 2026 may place or 
continue the cars in service under the terms of the approval until it 
expires.
    (2) Such railroad may at any time provide notice to FRA as 
specified in this section in effect on September 30, 2026, and the 
notice will supersede the FRA approval.

Appendix C to Part 215 [Amended]

0
3. In appendix C to part 215, under the heading ``Description of 
Defects'', remove the phrase ``215.203 Operating a

[[Page 55762]]

restricted car, except under conditions approved by FRA'' and add in 
its place the phrase ``215.203 Improperly operating a restricted car''.

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.89.
David A. Fink,
Administrator.
[FR Doc. 2026-17787 Filed 8-28-26; 8:45 am]
BILLING CODE 4910-06-P


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