[Federal Register Volume 61, Number 46 (Thursday, March 7, 1996)]
[Proposed Rules]
[Pages 9138-9139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5411]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
49 CFR Parts 1201 and 1262
[Ex Parte No. 512]
Uniform System of Records of Property Changes for Railroad
Companies
AGENCY: Surface Transportation Board, DOT.
ACTION: Proposed rule, withdrawal.
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SUMMARY: The Surface Transportation Board (the Board) is withdrawing
the proposed rule and discontinuing the Ex Parte No. 512 proceeding.
DATES: This withdrawal is made on March 7, 1996.
FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-5610. [TDD for
the hearing impaired: (202) 927-5721].
SUPPLEMENTARY INFORMATION: Effective January 1, 1996, the ICC
Termination Act of 1995, Pub. L. No. 104-88, 109 Stat. 803 (ICCTA)
abolished the Interstate Commerce Commission (the Commission) and
established within the Department of Transportation. Section 204 of the
ICCTA provides that ``[t]he Board shall promptly rescind all
regulations established by the [Commission] that are based on
provisions of law repealed and not substantively reenacted by this
Act.'' Former 49 U.S.C. 10784, the statutory basis for the Part 1262
rail valuation regulations, has been repealed.
[[Page 9139]]
Accordingly, in a separate proceeding, Removal of Obsolete Valuation
Regulations, STB Ex Parte No. 539, the Board is removing the now
obsolete part 1262 regulations as well as Instruction 1-3 (g) in part
1201, which refers to Part 1262.
Prior to the elimination of Sec. 10784, in Uniform System of
Records of Property Changes for Railroad Companies, Ex Parte No. 512
(ICC served Aug. 26, 1992) and published at 57 FR 38810 (1992), the
Commission had proposed to eliminate these same regulations. The
Commission stated that the more general instructions in 49 CFR 1201,
Uniform System of Accounts for Railroad Companies, provided sufficient
guidelines to support adequate accounting for rail property. Moreover,
to conform to generally accepted accounting principles (GAAP),
railroads had developed internal accounting systems that appropriately
record and document property changes. Also, railroads provide property
information in Annual Report Form R-1 (R-1).
In light of our action in STB Ex Parte No. 539, it is unnecessary
to continue this proceeding. We have considered the comments that were
submitted in response to the Commission's proposal and are satisfied
that no further action need be taken.
Of the three comments received in response to the Commission's
proposal, only one (jointly filed by the Western Coal Traffic League
and Edison Electric Institute (WCTL/EEI)) opposed the elimination of
the rules. WCTL/EEI suggested that the Part 1262 regulations continued
to serve a useful purpose in computing variable costs. The problem with
reliance on Part 1201 and GAAP, in WCTL/EEI's view, was that Part 1201
lacks sufficient detail to ensure recordkeeping uniformity among all
Class I railroads, and GAAP is variously interpreted and applied among
its users. For this reason, WCTL/EEI argued that Part 1201 and GAAP
would not be an effective vehicle for ensuring uniformity. They
expressed concern that, if Part 1262 were eliminated, there would be an
increase in the incidence of disparities in the form and content of
property records, which could make it more difficult to develop
accurate and reliable variable cost estimates. WCTL/EEI also
hypothesized that, without Part 1262 to ensure uniformity, the cost of
developing property costs using the Uniform Railroad Costing System
(URCS) would increase. Finally, they argued that the cost of
maintaining the Part 1262 requirements vis-a-vis different systems
should be small.
WCTL/EEI's concern that elimination of Part 1262 would lessen the
accuracy of property accounting and, in turn, adversely affect the URCS
variable cost computation is misplaced. Part 1262 sets forth detailed
recordkeeping requirements to update the basic railroad property
valuation essentially completed in 1920. By the early 1960's, the basic
property valuations were reconciled with the accounting records as
prescribed in Part 1201. Thus, the recorded value of property reported
under Parts 1201 and 1262 regulations are comparable. The data
requirements for URCS are not dependent upon the form of records
required by Part 1262. We believe that Part 1201 provides adequate
provision to obtain the data and information necessary for URCS.
We also find no need for the specific Part 1262 forms for other
Board purposes. Part 1262 forms are not used in the review and approval
of railroad depreciation rates, which use data supported by Part 1201.
Data contained elsewhere, especially in the R-1, comprise the basic
source of financial and cost information used by the Board. In short,
elimination of Part 1262 will not compromise the integrity of the
railroads' property accounts. For that reason, and in light of the
Congressional action repealing 49 U.S.C. 10784, we are discontinuing
the Ex Parte No. 512 proceeding.
Environmental and Energy Considerations
This action will not significantly affect either the quality of the
human environment or the conservation of energy resources.
Regulatory Flexibility Analysis
We conclude that this action will not have a significant economic
impact on a substantial number of small entities. No new regulatory
requirements are being imposed on such entities. As required by the
ICCTA, the Board removed the Part 1262 regulations in STB Ex Parte No.
539 because former 49 U.S.C. 10784 was eliminated. Moreover, we have
here determined that those regulations are not needed for any other
Board purpose. Accordingly, the economic impact, if any, of our
withdrawing the proposed rules and discontinuing this proceeding, will
not likely affect a significant number of small entities.
Decided: February 28, 1996.
By the Board, Chairman Morgan, Vice Chairman Simmons, and
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-5411 Filed 3-6-96; 8:45 am]
BILLING CODE 4915-00-P