[Federal Register Volume 61, Number 104 (Wednesday, May 29, 1996)]
[Rules and Regulations]
[Pages 26846-26847]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13278]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
49 CFR Part 1039
[STB Ex Parte No. 548] 1
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\1\ The notice of proposed rulemaking issued on March 26, 1996
was designated as STB Ex Parte No. 346 (Sub-No. 8). In a notice
served on May 2, 1996, the docket number was changed to STB Ex Parte
No. 548.
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Exemption From Regulation--Boxcar Traffic
AGENCY: Surface Transportation Board, DOT.
ACTION: Final rule.
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SUMMARY: The Surface Transportation Board (the Board) is eliminating an
obsolete provision of a regulation pertaining to rates on nonferrous
recyclable commodities by broadening the exemption for traffic moving
in boxcars.
EFFECTIVE DATE: June 28, 1996.
FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-7513. [TDD for
the hearing impaired: (202) 927-5721.]
SUPPLEMENTARY INFORMATION: The ICC Termination Act of 1995, Pub. L. No.
104-88, 109 Stat. 803 (ICCTA) abolished the Interstate Commerce
Commission (ICC) and established the Board. Section 204 of the ICCTA
provides that ``[t]he Board shall promptly rescind all regulations
established by the [ICC] that are based on provisions of law repealed
and not substantively reenacted by this Act.'' In Removal of Obsolete
Recyclables Regulations, 1 S.T.B. 7 (1996) (Obsolete Regulations), the
Board removed, inter alia, obsolete recyclable regulations at 49 CFR
1134 and 49 CFR 1145, pertaining to discrimination against recyclables
and rates on recyclables, because Congress repealed former 49 U.S.C.
10710 and 10731, the statutory bases for these regulations. We stated
that we would separately consider the disposition of 49 CFR
1039.14(b)(5), which excludes rates on nonferrous recyclable
commodities from the exemption of boxcar traffic from rate regulation.
Consequently, on March 26, 1996, we served a notice of proposed
rulemaking (NPR) in this proceeding, published at
[[Page 26847]]
61 FR 13146, proposing to remove 49 CFR 1039.14(b)(5) and to
redesignate paragraphs (6) and (7). The only comment in response to the
NPR was filed by AAR. Noting the substantial intermodal and intramodal
competition for nonferrous recyclables, as evidenced by the decline in
rail market share and the fact that, from 1981 through 1994, revenue
per ton mile for nonferrous recyclables fell 49 percent in constant
(inflation-adjusted) dollars, AAR supports the proposal and asks that
it be adopted expeditiously.
We will grant the broader exemption by removing the exclusion for
nonferrous recyclables from the boxcar exemption. The ICC has already
found that an exemption from rate regulation for transportation by
boxcars was warranted.
Now that the special statutory provisions for recyclables traffic
are gone, there is no basis for excluding it from the exemption. The
current record, moreover, warrants granting an exemption.
We find that a broadened exemption will meet the standards of new
section 10502. Regulation is generally not necessary to carry out the
transportation policy of new 49 U.S.C. 10101. See 49 U.S.C. 10101 (1),
(2), (3), (5), and (9). Furthermore, given the competitive nature of
transportation of nonferrous recyclables, regulation is not necessary
to protect shippers from abuse of market power.
The Board certifies that this rule will not have a significant
economic effect on a substantial number of small entities. This rule
will reduce regulation; it imposes no new reporting or other
requirements directly or indirectly on small entities. While there may
be an impact on some small entities because recyclables no longer will
be excepted from the boxcar exemption, it appears that such an impact
will not be significant nor will it likely affect a significant number
of small entities.
This action will not significantly affect either the quality of the
human environment or the conservation of energy resources.
List of Subjects in 49 CFR Part 1039
Agricultural commodities, Intermodal transportation, Manufactured
commodities, Railroads.
Decided: May 15, 1996.
By the Board, Chairman Morgan, Vice Chairman Simmons, and
Commissioner Owen.
Vernon A. Williams,
Secretary.
For the reasons set forth in the preamble and under the authority
of 49 U.S.C. 721(a), title 49, chapter X of the Code of Federal
Regulations is amended as set forth below:
PART 1039--EXEMPTIONS
1. The authority citation for part 1039 continues to read as
follows:
Authority: 5 U.S.C. 553 and 49 U.S.C. 721 and 10502.
Sec. 1039.14 [Amended]
2. Section 1039.14 is amended by removing paragraph (b)(5) and
redesignating paragraphs (b)(6) and (b)(7) as paragraphs (b)(5) and
(b)(6).
[FR Doc. 96-13278 Filed 5-28-96; 8:45 am]
BILLING CODE 4915-00-P
