Mark Lindsey
Chief Counsel
Federal Railroad Administration
U.S. Department of Transportation
400 Seventh Street, SW
Room 8201
Washington, DC 20590
Dear Mr. Lindsey:
The Office of Advocacy of the U.S. Small Business Administration (SBA) appreciates the opportunity to comment on the Federal Railway Administration's (FRA) advance notices of proposed rulemaking on passenger equipment safety standards.(1)
The Office of Advocacy of the SBA was established by Congress under Public Law No. 94-305 to advocate the views of small business before Federal agencies and Congress. Advocacy also is required by §612 of the Regulatory Flexibility Act (RFA)(2) to monitor agency compliance with the RFA. These comments are directed towards assuring the effects of this rulemaking on small businesses and other small entities(3) are fully considered. The use of an advance notice of proposed rulemaking is a good first step. However, three weeks is an inadequate time frame for the industry, especially small railways, to prepare a thorough response to a 52 page document.(4)
First, the FRA presented the statistics on passenger train occupant injuries and fatalities in order to illustrate the need for this rulemaking. These statistics should be further delineated between incidents on the general system and those outside the general system. Analysis should attempt to determine if and to what degree there is a difference in injury and fatality rates between the general system and the outside.
This analysis will help determine the kind and scope of regulations needed. Small railways are usually operating outside the general system, and it is incumbent upon the FRA to determine a need to regulate this sector.
Second, the Office of Advocacy recommends that a preliminary analysis be completed to determine the size of firms within the regulated industry. Data on number of employees and revenue should be included in order to facilitate an economic analysis for the rulemaking. The size data should be cross referenced with the venue, such as insular and general system. This data will give FRA better data on the small railways(5) being regulated and provide information on the number of firms impacted at different size levels. This will facilitate decision-making on exemptions from and alternatives for various requirements.
The lack of representation on the working group of the tourist railroads is of concern. However, if this is due to the limited resources of that industry sector, we recommend that the FRA makes an aggressive effort to generate interest in this rule development by taking steps, such as placing notices in trade publications, sending a direct mailing to members of the trade associations such as the Tourist Railway Association, and visiting with some small railways.
Because passenger equipment maintenance is a vital part of this rulemaking, contractors, that are often doing this work, should be part of this rulemaking development. This sector, represented by National Railway Contractors and other groups, also should be the target of outreach efforts to small firms.
The Office of Advocacy also recommends that the statutory requirements under the RFA be fully explained to the working group. When the group has completed its work, FRA will be required to determine if this rulemaking has a significant economic impact on a substantial number of small entities. With this in mind, the group will be more conscientious about considering alternatives for and evaluating the economic impact on small firms. These considerations should be documented.
FRA also should take into account the definitions established in 13 CFR Part 121 which prevail for the purpose of analysis under the RFA.
If we can be of any assistance during this process, please contact me or Anita Drummond of my staff at (202) 205-6533.
Sincerely,
Jere W. Glover
Chief Counsel for Advocacy
END NOTES
1. Fed. Reg., Vol. 61, No. 117, pp.30672-30724 (June 17, 1996).
2. 5 U.S.C. §§601-612.
3. Defined in 5 U.S.C. §601 and 13 CFR Part 121.
4. Written comments due July 9, 1996.
5. Railroads and Line-Haul Operations with fewer than 1,500 employees.