cooperationclearpath

40420FederalRegister/Vol.
76,No.
131/Friday,July8,2011/NoticesDEPARTMENTOFTRANSPORTATIONFederalAviationAdministrationAgencyInformationCollectionActivities:RequestsforComments;ClearanceofReinstatedApprovalofInformationCollection:Dealer'sAircraftRegistrationCertificateApplicationAGENCY:FederalAviationAdministration(FAA),DOT.
ACTION:Noticeandrequestforcomments.
SUMMARY:InaccordancewiththePaperworkReductionActof1995,FAAinvitespubliccommentsaboutourintentiontorequesttheOfficeofManagementandBudget(OMB)approvaltoreinstateapreviouslydiscontinuedinformationcollection.
ACForm8050–5isanapplicationforadealer'sAircraftRegistrationCertificatewhich,under49UnitedStatesCode1404,maybeissuedtoapersonengagedinmanufacturing,distributing,orsellingaircraft.
DATES:WrittencommentsshouldbesubmittedbySeptember6,2011.
FORFURTHERINFORMATIONCONTACT:CarlaScotton(202)385–4293,orbye-mailat:Carla.
Scott@faa.
gov.
SUPPLEMENTARYINFORMATION:OMBControlNumber:2120–0024.
Title:Dealer'sAircraftRegistrationCertificateApplication.
FormNumbers:ACForm8050–5.
TypeofReview:Reinstatementofaninformationcollection.
Background:FederalAviationRegulationPart47prescribesproceduresthatimplementPublicLaw103–272,whichprovidesfortheissuanceofdealer'saircraftregistrationcertificatesandfortheiruseinconnectionwithaircrafteligibleforregistrationunderthisActbypersonsengagedinmanufacturing,distributingorsellingaircraft.
Dealer'scertificatesenablesuchpersonstoflyaircraftforsaleimmediatelywithouthavingtogothroughthepaperworkandexpenseofapplyingforandsecuringapermanentCertificateofAircraftRegistration.
Italsoprovidesasystemofidentificationofaircraftdealers.
Respondents:2,135aircraftdealers.
Frequency:Informationiscollectedonoccasion.
EstimatedAverageBurdenperResponse:45minutes.
EstimatedTotalAnnualBurden:1,601.
25hours.
ADDRESSES:SendcommentstotheFAAatthefollowingaddress:Ms.
CarlaScott,Room336,FederalAviationAdministration,AES–300,950L'EnfantPlaza,SW.
,Washington,DC20024.
PublicCommentsInvited:Youareaskedtocommentonanyaspectofthisinformationcollection,including(a)whethertheproposedcollectionofinformationisnecessaryforFAA'sperformance;(b)theaccuracyoftheestimatedburden;(c)waysforFAAtoenhancethequality,utilityandclarityoftheinformationcollection;and(d)waysthattheburdencouldbeminimizedwithoutreducingthequalityofthecollectedinformation.
Theagencywillsummarizeand/orincludeyourcommentsintherequestforOMB'sclearanceofthisinformationcollection.
IssuedinWashington,DC,onJune29,2011.
CarlaScott,FAAInformationCollectionClearanceOfficer,ITEnterprisesBusinessServicesDivision,AES–200.
[FRDoc.
2011–17208Filed7–7–11;8:45am]BILLINGCODE4910–13–PDEPARTMENTOFTRANSPORTATIONFederalMotorCarrierSafetyAdministration[DocketNoFMCSA–2011–0097]PilotProgramontheNorthAmericanFreeTradeAgreement(NAFTA)Long-HaulTruckingProvisionsAGENCY:FederalMotorCarrierSafetyAdministration(FMCSA),DOT.
ACTION:Notice;responsetopubliccomments.
SUMMARY:TheFederalMotorCarrierSafetyAdministration(FMCSA)announcesitsintenttoproceedwiththeinitiationofaUnitedStates-Mexicocross-borderlong-haultruckingpilotprogramtotestanddemonstratetheabilityofMexico-domiciledmotorcarrierstooperatesafelyintheUnitedStatesbeyondthemunicipalitiesintheUnitedStatesontheUnitedStates-Mexicointernationalborderorthecommercialzonesofsuchmunicipalities(bordercommercialzones).
DATES:ThisnoticeiseffectiveJuly8,2011.
ADDRESSES:Youmaysearchbackgrounddocumentsorcommentstothedocketforthisnotice,identifiedbydocketnumberFMCSA–2011–0097,byvisitingthe:eRulemakingPortal:http://www.
regulations.
gov.
Followtheonlineinstructionsforreviewingdocumentsandcomments.
Regulations.
govisavailableelectronically24hourseachday,365daysayear;or.
DOTDocketRoom:RoomW12–140onthegroundflooroftheDOTHeadquartersBuildingat1200NewJerseyAvenue,SE.
,Washington,DC20590between9a.
m.
and5p.
m.
,ET,MondaythroughFriday,exceptFederalholidays.
PrivacyAct:Anyoneisabletosearchtheelectronicformofallcommentsreceivedintoanyofourdocketsbythenameoftheindividualsubmittingthecomment(orsigningthecomment,ifsubmittedonbehalfofanassociation,business,laborunion,etc.
).
YoumayreviewDOT'sPrivacyActSystemofRecordsNoticefortheDOTFederalDocketManagementSystempublishedintheFederalRegisteronJanuary17,2008(73FR3316),oryoumayvisithttp://edocket.
access.
gpo.
gov/2008/pdf/E8-785.
pdf.
FORFURTHERINFORMATIONCONTACT:MarceloPerez,FMCSA,1200NewJerseyAvenue,SE.
,Washington,DC20590–0001.
Telephone(202)366–9597;e-mailmarcelo.
perez@dot.
gov.
SUPPLEMENTARYINFORMATION:OnApril13,2011,FMCSApublishedanoticeintheFederalRegisterannouncingitsplanstoinitiateapilotprogramaspartofFMCSA'simplementationoftheNAFTAcross-borderlong-haultruckingprovisionsincompliancewithsection6901(b)(2)(B)oftheU.
S.
TroopReadiness,Veterans'Care,KatrinaRecovery,andIraqAccountabilityAppropriationsAct,2007,andrequestedpubliccommentsonthoseplans.
FMCSAreviewed,assessed,andevaluatedtherequiredsafetymeasuresasnotedinthenotice,andconsideredallcommentsreceivedonorbeforeMay13,2011,inresponsetotheApril13,2011,notice.
Additionally,totheextentpracticable,FMCSAconsideredcommentsreceivedafterMay13,2011.
OncetheU.
S.
DepartmentofTransportation's(DOT)InspectorGeneralcompleteshisreporttoCongressrequiredbysection6901(b)(1)andtheAgencycompletesanyfollowupactionsneededtoaddressissuesraisedinthereport,FMCSAwillproceedwiththepilotprogram.
FMCSAmadechangesandclarifiedelementsoftheprogramasaresultofcommentstothedocket.
Forexample,theAgencywillincludeInternationalRegistrationPlan(IRP)andInternationalFuelTaxAssociation(IFTA)informationinitspre-authoritysafetyaudit(PASA)process;postedtheMexicanregulationsinbothEnglishandSpanishinthedocketforthisnotice;elaboratedontheinspectionofavailablevehiclesoperatingintheUnitedStatesduringVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00099Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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76,No.
131/Friday,July8,2011/Noticesthecompliancereview(CR);andconfirmedthatthePASAinformationwillbepublishedintheFederalRegister.
AsindicatedintheApril13,2011,FederalRegisternotice,thispilotprogramwillnotincludeoperationsthattransportplacardedamountsofhazardousmaterialsorpassengers.
Inaddition,onMay31,2011,MexicopublisheditsregulationsthatwillgovernaU.
S.
motorcarrier'sapplicationforauthoritytooperateinMexico.
Initsregulations,Mexicospecifiesseveraltypesoftransportationservices,vehicles,andoperationsasineligibleforauthoritytooperateintoMexico.
Theseincludeoversizedoroverweightgoods,industrialcranes,vehicletowingorrescue,orpackagingandcourierservices.
MexicoisallowingU.
S.
motorcarriersofinternationalfreighttooperateintoMexico.
Mexicohasexcludedtheseservices,vehicles,andoperationsfromtheprogrambecausetheyarenotclassifiedas,orpertinentto,freightoperationsinMexico;ratherthesetypesofoperationsaresubjecttoseparateoperatingauthorityrequirementsthanfreightmotorcarriers.
WhiletheUnitedStatesdoesnotdistinguishbetweenthesetypesoffreightoperations,inordertocomplywiththereciprocityrequirementsofsection6901(a)(3),theUnitedStateswillnotissueauthoritytoMexico-domiciledmotorcarrierstotransportoversizedoroverweightgoods,industrialcranes,oroperatevehicletowing,rescueorpackagingandcourierservicesinthispilotprogram.
LegalBasisSection6901(a)oftheU.
S.
TroopReadiness,Veterans'Care,KatrinaRecovery,andIraqAccountabilityAppropriationsAct,2007[Pub.
L.
110–28,121Stat.
112,183,May25,2007](2007AppropriationsAct)providesthatbeforeDOTmayobligateorexpendanyfundstograntauthorityforMexico-domiciledtruckstoengageincross-borderlong-hauloperations,DOTmustfirsttestgrantingsuchauthoritythroughapilotprogramthatmeetsthestandardsof49U.
S.
C.
31315(c).
Inaccordancewith49U.
S.
C.
31315(c)(2),inproposingapilotprogram,theSecretaryofTransportation(Secretary)hasgeneralauthoritytoconductpilotprograms''thataredesignedtoachievealevelofsafetythatisequivalentto,orgreaterthan,thelevelofsafetythatwouldotherwisebeachievedInapilotprogram,DOTtypicallycollectsspecificdataforevaluatingalternativestotheregulationsorinnovativeapproachestosafetywhileensuringthatthegoalsoftheregulationsaresatisfied.
Apilotprogrammaynotlastmorethan3years,andthenumberofparticipantsinapilotprogrammustbelargeenoughtoensurestatisticallyvalidfindings.
Pilotprogramsmustincludeanoversightplantoensurethatparticipantscomplywiththetermsandconditionsofparticipation,andprocedurestoprotectthehealthandsafetyofstudyparticipantsandthegeneralpublic.
ApilotprogrammaybeinitiatedonlyafterDOTpublishesadetaileddescriptionofitintheFederalRegisterandprovidesanopportunityforpubliccomment.
Accordingly,onApril13,2011,theAgencypublishedanoticeannouncingitsintentiontoconductapilotprogramandsolicitingcomment(76FR20807).
ThisdocumentrespondstocommentstotheApril13,2011noticeandprovidesadditionalinformationabouttheplannedpilotprogramasrequestedbycommenters.
Whileapilotprogrammayprovidetemporaryregulatoryrelieffromoneormoreregulationstoapersonorclassofpersonssubjecttotheregulations,orapersonorclassofpersonswhointendstoengageinanactivitythatwouldbesubjecttotheregulations(49U.
S.
C.
31315(c)(1)and(2)),inthispilotprogramDOTdoesnotproposetoexemptorrelieveMexico-domiciledmotorcarriersfromanyFMCSAsafetyregulationorevaluateanylessstringentalternativestoexistingregulation.
Mexico-domiciledmotorcarriersparticipatingintheprogramwillberequiredtocomplywiththeexistingmotorcarriersafetyregulatoryregimepluscertainadditionalrequirementsassociatedwithacceptanceintoandparticipationintheprogram.
Section6901(a)ofthe2007AppropriationsAct,thetermsofwhichhavebeenincorporatedineachsubsequentDOTappropriationsact,alsoprovidesthatthispilotprogrammustcomplywithsection350oftheDepartmentofTransportationandRelatedAgenciesAppropriationsAct,2002[Pub.
L.
107–87,115Stat.
833,864,December18,2001](section350).
Section350prohibitedFMCSAfromusingfundsmadeavailableinthe2002DOTAppropriationsActtorevieworprocessapplicationsfromMexico-domiciledmotorcarrierstooperatebeyondthebordercommercialzonesuntilcertainpreconditionsandsafetyrequirementsweremet.
Thetermsofsection350havealsobeenincorporatedineachsubsequentDOTappropriationsact.
Section350(a)(1)requiredFMCSAtoperformaPASAofanyMexico-domiciledmotorcarrierbeforethatmotorcarrierisallowedtoengageinlong-hauloperationsintheUnitedStates.
VehiclesthemotorcarrierwilloperatebeyondthebordercommercialzonesthatdonotalreadyhaveaCommercialVehicleSafetyAlliance(CVSA)decalarerequiredtopassaninspectionattheborderportofentryandobtainadecalbeforebeingallowedtoproceed.
Section350(a)(4)alsorequiredDOTtogiveadistinctiveidentificationnumbertoeachMexico-domiciledmotorcarrierthatwouldoperatebeyondthebordercommercialzonestoassistinspectorsinenforcingmotorcarriersafetyregulations.
Additionally,everydriverwhowilloperateintheUnitedStatesmusthaveavalidcommercialdriver'slicenseissuedbyMexico.
Section350(c)(1)alsorequiredDOT'sOfficeoftheInspectorGeneral(OIG)toconductacomprehensivereviewoftheadequacyofinspectioncapacity,informationinfrastructure,enforcementcapabilityandotherspecificfactorsrelevanttosafeoperationsbyMexico-domiciledmotorcarriers;andsection350(c)(2)requiredtheSecretarytoaddresstheOIG'sfindingsandcertifythattheopeningoftheborderposesnosafetyrisk.
TheOIGwasalsodirectedtoconductsimilarreviewsatleastannuallythereafter.
Anumberofthesection350requirementswereaddressedbyFMCSAinrulemakingspublishedonMarch19,2002(67FR12653,67FR12702,67FR12758,67FR12776)andonMay13,2002(67FR31978).
Section136oftheTransportation,HousingandUrbanDevelopment,andRelatedAgenciesAppropriationsAct,2009[DivisionIoftheOmnibusAppropriationsAct,2009,Pub.
L,111–8,123Stat.
524,932,March11,2009](2009AppropriationsAct)prohibitedDOTfromexpendingfundsmadeavailableinthe2009AppropriationsActtoestablish,implement,orcontinueacross-bordermotorcarrierpilotprogramtoallowMexico-domiciledmotorcarrierstooperatebeyondthebordercommercialzones.
TheTransportation,HousingandUrbanDevelopment,andRelatedAgenciesAppropriationsAct,2010[DivisionAoftheConsolidatedAppropriationsAct,2010,Pub.
L.
111–117,123Stat.
3034,December16,2009](2010AppropriationsAct)didnotbarDOTorFMCSAfromusingfundsonacross-borderlong-haulprogram;but,pursuanttosection135ofthe2010AppropriationsAct(123Stat.
at3053)didretaintherequirementsofsection6901andsection350.
Section1101(a)(6)oftheFull-YearContinuingAppropriationsAct,2011[Pub.
L.
112–10,divisionB,125Stat.
102,103,AprilVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00100Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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76,No.
131/Friday,July8,2011/Notices15,2011](2011AppropriationsAct),makesfundingavailableforDOTandotherFederalagenciesduringFiscalYear(FY)2011undertheauthorityandconditionsspecifiedinthe2010AppropriationsAct.
Section6901ofthe2007AppropriationsActalsoprovidedthatsimultaneousandcomparableauthoritytooperatewithinMexicomustbemadeavailabletoU.
S.
motorcarriers.
Further,beforetherequiredpilotprogrammaybegin,inaccordancewithsection6901(b)(1),theDepartment'sOIGmustsubmitareporttoCongressverifyingthatDOThascompliedwiththerequirementsofsection350(a).
DOTmusttakeanyactionsthatarenecessarytoaddressissuesraisedbytheOIGandmustdetailthoseactionsinareporttoCongress.
Section6901(c)alsodirectedtheOIGtosubmitaninterimreporttoCongress6monthsaftertheinitiationofacross-borderlong-haulMexicantruckingpilotprogramandafinalreportafterthepilotprogramiscompleted.
Thestatutefurtherspecifiedthatthereportaddresstheprogram'sadequacyasatestofsafety.
Also,asapreconditiontobeginningthepilotprogram,section6901ofthe2007AppropriationsActrequiresthatDOTprovideanopportunityforpubliccommentbypublishingintheFederalRegisterinformationonthePASAsconducted.
DOTmustalsopublish,forcomment,thestandardsthatwillbeusedtoevaluatethepilotprogram.
TheAgencymustalsoprovidealistofFederalmotorcarriersafetylawsandregulations,includingcommercialdriver'slicense(CDL)requirements,forwhichtheSecretarywillacceptcompliancewithcorrespondingMexicanlaworregulationastheequivalenttocompliancewiththeU.
S.
laworregulationincludingananalysisofhowthecorrespondingUnitedStatesandMexicanlawsandregulationsdiffer.
FurtherdiscussionofrelevantU.
S.
andMexicansafetylawsandregulationsisprovidedlaterinthisnotice.
BackgroundIntroductionBefore1982,Mexico-andCanada-domiciledmotorcarrierscouldapplytotheInterstateCommerceCommission(ICC),aformerindependentFederalagencyresponsibleforregulating,interalia,motorcarrieroperationsandsafety,forauthoritytooperatewithintheUnitedStates.
AsaresultofcomplaintsthatU.
S.
motorcarrierswerenotallowedthesameaccesstoMexicanandCanadianmarketsthatmotorcarriersfromthosenationsenjoyedinthiscountry,theBusRegulatoryReformActof1982[Pub.
L.
97–261,96Stat.
2201,September20,1982]imposedamoratoriumontheissuanceofnewoperatingauthoritytomotorcarriersdomiciled,orownedorcontrolledbypersonsdomiciledinCanadaorMexico.
WhilethedisagreementwithCanadawasquicklyresolved,theissueoftruckingreciprocitywithMexicowasnot.
Currently,mostMexico-domiciledmotorcarriersareallowedtooperateonlywithinthebordercommercialzonestypicallyextendingupto25to50milesintotheUnitedStates.
Everyyear,Mexico-domiciledcommercialmotorvehicles(CMVs)crossintotheUnitedStatesabout4.
5milliontimes.
Mexicograntedreciprocalauthorityto10U.
S.
-domiciledmotorcarrierstooperatethroughoutMexicoduringthetimeofFMCSA'spreviousdemonstrationproject,whichwasconductedbetweenSeptember2007andMarch2009.
FourofthesemotorcarrierscontinuetooperateinMexico.
TruckingissuesattheUnitedStates-MexicoborderwerenotfullyaddresseduntilNAFTAwasnegotiatedintheearly1990s.
NAFTArequiredtheUnitedStatestoincrementallyliftthemoratoriumonlicensingMexico-domiciledmotorcarrierstooperatebeyondthebordercommercialzones.
OnJanuary1,1994,PresidentClintonmodifiedthemoratoriumandtheICCbeganacceptingapplicationsfromMexico-domiciledpassengermotorcarrierstoconductinternationalcharterandtourbusoperationsintheUnitedStates(MemorandumfortheSecretaryofTransportation,''DeterminationUndertheBusRegulatoryReformActof1982,''59FR653,January6,1994).
OnDecember13,1995,theICCpublishedaruleandarevisedapplicationformfortheprocessingofMexico-domiciledpropertymotorcarrierapplications(FormOP–1(MX))(60FR63981).
TheICCruleanticipatedtheimplementationofthesecondphaseofNAFTA,providingMexico-domiciledmotorcarriersofpropertyaccesstoCalifornia,Arizona,NewMexicoandTexas,andthethirdphase,providingaccessthroughouttheUnitedStates.
However,attheendof1995,theUnitedStatesannouncedanindefinitedelayinopeningthebordertolong-haulMexico-domiciledlong-haulmotorcarrieroperations.
In1998,MexicofiledaclaimagainsttheUnitedStatesunderNAFTAdisputeresolutionprovisionsallegingthattheUnitedStates'refusaltograntauthoritytoMexico-domiciledtruckingcompaniesconstitutedabreachoftheUnitedStates'NAFTAobligations.
OnFebruary6,2001,thearbitrationpanel,convenedpursuanttoNAFTAdisputeresolutionprovisions,issueditsfinalreportandruledinMexico'sfavor,concludingthattheUnitedStateswasinbreachofitsobligationsandthatMexicocouldimposetariffsonU.
S.
exportstoMexicouptoanamountcommensuratewiththelossofbusinessresultingfromthelackofU.
S.
compliance.
ThearbitrationpanelnotedthattheUnitedStatescouldestablishasafetyoversightregimetoensurethesafetyofMexico-domiciledmotorcarriersenteringtheUnitedStates,butthatthesafetyoversightregimecouldnotbediscriminatoryandmustbejustifiedbysafetydata.
AfterPresidentBushannouncedtheintenttoresumetheprocessforopeningtheborderin2001,Congressenactedsection350,asdiscussedinthe''LegalBasis''sectionofthisnotice.
FMCSAtookvariousstepstocomplywithsection350,includingtheissuanceofnewregulationsapplicabletoMexico-domiciledlong-haulmotorcarriers(67FR12702,12758,March19,2002).
TheseregulationswerechallengedonenvironmentalgroundsinlitigationthatwasultimatelydecidedinFMCSA'sfavorbytheU.
S.
SupremeCourt(DepartmentofTransportationv.
PublicCitizen,541U.
S.
752(2004)).
InNovember2002,thenSecretaryNormanMinetacertified,asrequiredbysection350(c)(2),thatauthorizingMexico-domiciledmotorcarrieroperationsbeyondthebordercommercialzonesdidnotposeanunacceptablesafetyrisktotheAmericanpublic.
Laterthatmonth,PresidentBushmodifiedthemoratoriumtopermitMexico-domiciledmotorcarrierstoprovidecross-bordercargoandscheduledpassengertransportationbeyondthebordercommercialzones.
(MemorandumofNovember27,2002,fortheSecretaryofTransportation,''DeterminationUndertheInterstateCommerceCommissionTerminationActof1995,''67FR71795,December2,2002).
TheSecretary'scertificationwasmadeinresponsetotheJune25,2002,DOTOIGreportontheimplementationofsafetyrequirementsattheUnitedStates-Mexicoborder.
InaJanuary2005follow-upreport,theOIGconcludedthatFMCSAhadsufficientstaff,facilities,equipment,andproceduresinplacetosubstantiallymeettheeightsection350requirementsthattheOIGwasrequiredtoreview.
Thesereportsareavailableinthedocketforthisnotice.
FormerSecretaryMaryPetersandMexico'sformerSecretaryoftheSecretariadeCommunicacionesyTransportes(SCT)LuisTellezKuenzlerVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00101Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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76,No.
131/Friday,July8,2011/NoticesannouncedademonstrationprojecttoimplementcertaintruckingprovisionsofNAFTAonFebruary23,2007.
ThedemonstrationprojectwasinitiatedonSeptember6,2007,aftertheDOTcompliedwiththeconditionsimposedbysection6901ofthe2007AppropriationsAct,asdiscussedinthe''LegalBasis''sectionofthisnotice.
Thedemonstrationprojectwasinitiallyexpectedtolast1year(72FR23883,May1,2007).
OnAugust6,2008,FMCSAannouncedthatthedemonstrationprojectwasbeingextendedfrom1yeartothefull3yearsallowedby49U.
S.
C.
31315(c)(2)(A)(73FR45796)afterSecretariesPetersandTellezexchangedlettersontheextension.
OnMarch11,2009,PresidentObamasignedintolawthe2009AppropriationsAct.
Section136ofthe2009AppropriationsActprovidesthat:[N]oneofthefundsappropriatedorotherwisemadeavailableunderthisActmaybeused,directlyorindirectly,toestablish,implement,continue,promote,orinanywaypermitacross-bordermotorcarrierpilotprogramtoallowMexican-domiciledmotorcarrierstooperatebeyondthecommercialzonesalongtheinternationalborderbetweentheUnitedStatesandMexico,includingcontinuing,inwholeorinpart,anysuchprogramthatwasinitiatedpriortothedateoftheenactmentofthisAct(123Stat.
at932).
Inaccordancewithsection136,FMCSAterminatedthecross-borderdemonstrationprojectthatbeganonSeptember6,2007.
TheAgencyceasedprocessingapplicationsbyprospectiveprojectparticipantsandtookothernecessarystepstocomplywiththeprovision.
(74FR11628,March18,2009).
Inlightofthetermination,twoconsolidatedlawsuitschallengingtheprojectandpendingbeforetheU.
S.
CourtofAppealsfortheNinthCircuitweredismissedasmoot.
OnMarch19,2009,Mexicoannouncedthatitwasexercisingitsrightsunderthe2001NAFTAArbitrationPaneldecisiontoimposeretaliatorytariffsforthefailuretoallowMexico-domiciledmotorcarrierstoprovidelong-haulserviceintotheUnitedStates.
Thetariffsaffectapproximately90U.
S.
exportcommoditiesatanestimatedannualcostof$2.
4billion.
ThePresidentdirectedDOTtoworkwiththeOfficeoftheU.
S.
TradeRepresentativeandtheDepartmentofState,alongwithleadersinCongressandMexicanofficials,toproposelegislationcreatinganewcross-bordertruckingprogram,andtoaddressthelegitimatesafetyconcernsofCongresswhilefulfillingourobligationsunderNAFTA.
SecretaryRayLaHoodmetwithnumerousmembersofCongresstosolicittheirinput.
FMCSAtaskeditsMotorCarrierSafetyAdvisoryCommittee(MCSAC)withprovidingadviceandguidanceonessentialelementsthattheAgencyshouldconsiderwhendraftingproposedlegislationtopermitMexico-domiciledmotorcarriersbeyondthebordercommercialzones.
TheMCSACfinalreportonthistaskingisavailableontheFMCSAMCSACWebpageathttp://mcsac.
fmcsa.
dot.
gov/Reports.
htm.
Additionally,DOTformedateamtodraftprinciplesthatwouldguidethecreationofthedraftlegislation.
PresidentObamasignedthe2010AppropriationsActonDecember16,2009,whichcontainednoprohibitionsagainstusingFY2010fundstoconductacrossborderlong-haulprogram(unlikethe2009AppropriationsAct)andretainedrequirementsspecifiedinsection350andsection6901ofthe2007AppropriationsAct.
OnApril12,2010,SecretaryLaHoodmetwithMexico'sformerSecretaryofSCT,JuanMolinarHorcasitas,andannouncedaplantoestablishaworkinggrouptoconsiderthenextstepsinimplementingacross-bordertruckingprogram.
OnMay19,2010,PresidentObamaandMexico'sPresidentFelipeCalderonHinojosaissuedajointstatementacknowledgingthatsafe,efficient,secure,andcompatibletransportationisaprerequisiteformutualeconomicgrowth.
Theycommittedtocontinuetheircountries'cooperationinsystemplanning,operationalcoordination,andtechnicalcooperationinkeymodesoftransportation.
TheInitialConceptDocumentandthePreliminaryAgreementOnJanuary6,2011,SecretaryLaHoodsharedwithCongressandtheGovernmentofMexicoaninitialconceptdocumentforacross-borderlong-haulMexicantruckingpilotprogramthatprioritizessafety,whilesatisfyingtheU.
S.
internationalobligations.
Onthesameday,theDepartmentpostedtheconceptdocumentsonitsWebsiteforpublicviewing(http://www.
dot.
gov/affairs/2011/dot0111.
html).
TheinitialconceptdocumentwasthestartingpointforrenewednegotiationswithMexico;andtheUnitedStatescommenceddiscussionswiththeGovernmentofMexicoonJanuary18,2011.
ThepreliminaryagreementbetweenDOTandSCTisreflectedintheprogramdescriptionanddescribedbelow.
OnMarch3,2011,PresidentObamametwithMexico'sPresidentCalderonandannouncedthatthereisaclearpathforwardtoresolvingthetruckingissuesbetweentheUnitedStatesandMexico.
OnApril13,2011,FMCSApublishednoticeofthepilotprogramonNAFTALong-HaulTruckingProvisionsintheFederalRegister(76FR20807)andthecommentperiodendedMay13,2011.
TheAgencyexplainedthatthepilotprogramwillallowMexico-domiciledmotorcarrierstooperatethroughouttheUnitedStatesforupto3years,andthatU.
S.
-domiciledmotorcarrierswillbegrantedreciprocalrightstooperateinMexicoforthesameperiod.
ParticipatingMexico-domiciledmotorcarriersanddriversmustcomplywithallapplicableU.
S.
motorcarriersafetylawsandregulations,aswellasotherapplicableU.
S.
lawsandregulations,interalia,thoseconcernedwithcustoms,immigration,vehicleemissions,employment,vehicleregistration,andvehicle/fueltaxation.
TheAgencyexplainedthatthesafetyperformanceoftheparticipatingmotorcarrierswillbetrackedcloselybyFMCSAanditsStatepartners,aFederalAdvisoryCommitteeActgroup,andtheOIG.
TheAgencywillmonitorandevaluatethedatafromthepilotprogramasatestofthegrantingofauthoritytoMexico-domiciledmotorcarrierstoconductlong-hauloperationsintheUnitedStates.
FMCSAindicatedthatitanticipatedparticipatingmotorcarriersmaybeabletoconverttheirprovisionalstatusunderthepilotprogramto''permanent''authorityunderthepilotprogramafteroperating18monthsandsuccessfullycompletingacompliancereview(CR).
This''permanent''authorityunderthepilotprogram,inturn,maybeconvertedintostandardpermanentauthorityuponcompletionorterminationofthepilotprogram.
ItshouldbenotedthattheAgencywillbemaintainingitsoversightstrategiesandresourcesthathavebeenreviewedbytheOIGduringthepreviousdemonstrationprojectandtheOIG'sotherreviewsoftheAgency'scompliancewithsection350.
TheApril13thnoticeoutlinedhowtheAgencywouldmaintainthosestrategiesandaugmentthemwithnewstrategiestoaddressstakeholderinput.
Thisnoticerespondstocommentsonthosepreviousandaugmentedstrategies.
AsindicatedintheApril13,2011,FederalRegisternotice,thispilotprogramwillnotincludeoperationsthatinvolvethetransportofplacardedamountsofhazardousmaterialsorpassengers.
Asnotedinthe''Summary''sectionofthisnotice,Mexico'sregulationsidentifyothertypesofCMVoperationsandservicesasineligibleforauthoritytooperateintoMexico.
TheseincludethetransportationofoversizedVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00102Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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MexicoisallowingU.
S.
motorcarriersofinternationalfreighttooperateintoMexico.
Inordertocomplywiththereciprocityrequirementsofsection6901(a)(3)ofthe2007AppropriationsAct,theUnitedStateswillnotissueauthoritytoMexico-domiciledmotorcarrierstotransportoversizedoroverweightgoods,industrialcranes,oroperatevehicletowing,rescue,orpackagingandcourierservicesinthispilotprogram.
DiscussionofCommentsThenoticeandcommentprocessforallpilotprogramsisrequiredbystatute(49U.
S.
C.
31315)withtheintentofprovidingallinterestedpartieswiththeopportunitytoreviewinformationpublishedbytheAgencyandtocommentonthespecificdetailsaboutanyproposedpilotprogram.
AsofJune1,2011,FMCSAreceived2,254commentsordocketsubmissionsinresponsetotheApril13,2011,notice.
Over1,000commentsweresubmittedbyindividualsonbehalfoftheInternationalBrotherhoodofTeamsters(Teamsters).
Therewerethreerecurringsubmissionsfromindividualsthatmadeupthemajorityofthecomments.
ThesecommentersexpressedconcernsabouttheviolenceinMexicoandindicatedthatthepilotprogramwillnegativelyimpactU.
S.
jobsatatimewhenunemploymentishigh.
Approximately1,000ofthecommentsweresubmissionsbyindividualssuggestingthattheAgencyshouldabandontheideaofapilotprogram.
Generally,thesecommentsdidnotincludeinformationconcerningthetechnicaldetailsoftheAgency'sproposal(e.
g.
,specificsafetyoversightproceduresorprocesses),economicorlegalaspectsofthepilotprogram,oranyotherinformationsupportingtheviewthattheprogramshouldnotbepursued.
WhileFMCSAisnotrespondingtothesecommentsindividually,theAgencybelievesthatitsresponsestothesubstantivecommentsreceivedaddressthebriefcommentssubmittedbytheseindividuals.
Moreover,thepurposeofthispilotprogramistotestthegrantingofauthoritytoMexico-domiciledmotorcarrierstoconductlong-hauloperationintheUnitedStates,inordertoevaluatetheabilityofMexico-domiciledmotorcarrierstooperatesafelyintheUnitedStatesbeyondthebordercommercialzonesaspartofDOT'simplementationoftheNAFTAlandtransportationprovisions.
WhileFMCSAacknowledgesthesecommenters'concerns,theissuesarebeyondthescopeofthepilotprojectinthattheydonotrelatetothesafeoperationofCMVsbyMexico-domiciledmotorcarriersorcompliancewithU.
S.
motorcarriersafetyregulations.
Therefore,thesecommentswillnotbeaddressedinthisnotice.
TheremainingcommentswerefrommembersofCongress,companies,organizations,associations,andindividualsexpressingtheirviewsonspecificdetailsaboutthepilotprogram.
TheAgency'sannouncementofitsintenttoproceedwiththeprogramisbasedonitsconsiderationofalldataandinformationcurrentlyavailable,includinginformationsubmittedbythecommenters.
TheAgencyreceivedsubstantivecommentsfrom:AdvocatesforHighwayandAutoSafety(Advocates);Teamsters;theAmericanTruckingAssociations(ATA);CaliforniaTruckingAssociation(CTA);theOwner-OperatorIndependentDriversAssociation(OOIDA);InternationalRegistrationPlan(IRP),theBorderTradeAlliance(BTA),theAmericanAssociationforJustice(AAJ),WernerEnterprises,andtheTruckSafetyCoalition(Coalition)—apartnershipwithCitizensforReliableandSafeHighwaysandParentsAgainstTiredTruckers.
Inaddition,commentswerereceivedfromseveralU.
S.
RepresentativesandSenators.
GeneralSupportforthePilotProgramManycommenterssupportedthepilotprogramandrecognizeditsimportanceinmeetingU.
S.
obligationsunderNAFTA.
U.
S.
companiesandtheirrepresentativeassociationsthathavebeennegativelyimpactedbythetariffsimposedbytheGovernmentofMexicoasaresultoftheterminationofthepreviousdemonstrationprojectalsoexpressedtheirstrongsupportfortheprogram.
CompaniesnegativelyimpactedbythetariffsincludedOceanspray,KraftFoods,ConAgra,CampbellSoupCompany,AmericanFrozenFoodsInstitute,NationalCattlemen'sBeefAssociation,NationalPotatoCouncil,NorthAmericanEquipmentDealersAssociation,theGroceryManufacturersAssociation,AssociationofFood,BeverageandConsumerProductsCompanies,DistilledSpiritsCounciloftheUnitedStates,FreshProduceAssociationoftheAmericas,Mars,NationalAssociationofStateDepartmentsofAgriculture,theSnackFoodAssociation,andTysonsFood.
Thesecommentersexpressedtheirsupportforthepilotprogramasthemeanstoremovethetariffsthathavenegativelyimpactedtheirindustries.
SupportersofthepilotprogramincludeU.
S.
RepresentativesMikeThompsonandReidRibble.
RepresentativeThompsonstated,TheproposaltheAdministrationcraftedincludesimportantprotectionstoensuretruckscrossingtheborderareoperatingsafelyonourroadwaysandunderourenvironmentalstandards,allowingustomonitorandinspectvehiclesbeforetheyareapprovedforcross-bordertruckingoperations.
Ibelieveimplementationofthisrevisedpilotprogramprovidesaclearpathtowardtheeliminationoftheseharmfulretaliatorytariffsandnormalizationoftradebetweenourtwocountries,whilealsoensuringtheintegrityofourroadways.
Thirteencommenters—includingtheU.
S.
AppleAssociation,theNationalCouncilofFarmerCooperativesandtheNationalAssociationofStateDepartmentsofAgriculture—referencedtheCongressionalResearchServiceand/orOIGreportsthatconcludedduringtheprevious18-monthpilotprogram,Mexicantruckswereassafeas—ifnotsaferthan—theirU.
S.
counterpartsandweresubjecttofarmoreinspections.
U.
S.
RepresentativeDocHastingsand29congressionalcolleaguesprovidedaletterinsupportofthepilotprogram,stating,Asyouknow,Mexicoimposed$2.
6billioninretaliatorytariffson99U.
S.
agriculturalandmanufacturingproductsmorethantwoyearsago,aftertheUnitedStateshaltedacross-bordertruckingprogramthatwasdesignedtobringtheUnitedStatesintocompliancewithourinternationalobligationsinamatterconsistentwithU.
S.
law.
Sincethen,Mexicohasrotatedthetariffstocoveradditionalproducts,andMexicanofficialshavemadecleartheyarepreparedtodosoyetagain.
ThesetariffshavealreadycosttensofthousandsofU.
S.
jobsandover$4billiontoU.
S.
jobcreators,atatimewhenoureconomyisalreadystruggling.
ItisimperativeforU.
S.
workersandexportersthatthesetariffsbeeliminated.
Mexicohasagreedtosuspendfiftypercentofthetariffsacrosstheboardoncethenewcross-bordertruckingpilotprogramisofficiallyinstitutedandremainingtariffsoncethefirstpermitisissuedundertheprogram.
Thesuccessofthispilotprogramis,thus,criticalforU.
S.
workersandexporters—andforU.
S.
economicrecovery.
Thisletterconcludedwiththestatementthat,Inshort,wehavelongbelievedthattheUnitedStatescanstrengthenitseconomybyresolvingthismajorissuewithoneofourlargesttradingpartners—inamannerthatfullyensuresthesafetyofU.
S.
highways.
Thispilotprogramanditssubstantialsafeguardsareprudentandresponsible.
Westronglyencourageyoutomoveforwardwithfinalizingandimplementingthisplanassoonaspossible.
Thesetariffshavedoneirreparabledamagetoourlocaleconomies,andU.
S.
workers,farmers,manufacturers,VerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00103Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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131/Friday,July8,2011/Noticesandotherexporterssimplycannotaffordanyfurtherdelays.
TheUnitedStates-MexicoChamberofCommercestated,In2010,MexicoandtheUnitedStatesenjoyedanearly$400billiontraderelationship,and70percentofittravelsbytruckinanantiquatedtransportationsystemthatrequiresthreetrucksandthreedriverstodothejobofone.
Thisnotonlybloatsproducerandconsumerpricesbyhundredsofmillionsofdollarsayear.
Italsofailstofulfillthebenefits(particularlylowertransportationcosts)thataccruefromU.
S.
-Mexicoproximity—akeyNAFTAadvantage.
DoingsonowclearlywouldboostU.
S.
andNorthAmericancompetitivenessagainsteconomicrivalsandresultinstillmorejobs.
TheCatoInstituteadvised,ThefailureofCongresstoallowimplementationoftheNAFTAtruckingprovisionshasprovencostlytotheUnitedStatesinthreeimportantways.
First,U.
S.
failuretocomplyhasdeprivedoureconomyoftheefficienciesofmovinggoodsacrossourmutualborderatlowercost.
Withthebaninplace,trucksapproachingtheborderarerequiredtounloadtheircargointowarehousesinso-calledcommercialzoneswithin25milesoftheborder,onlytohavethatcargoreloadedontoshort-haulvehiclesandthenontodomestictrucksforfinaldelivery.
Thisinefficientsystemcausesdelays,increasedpollutionandaddedcostsatbusybordercrossingssuchasCalexicoEast;SanYsidro;Nogales,Ariz.
;andLaredo,Texas.
Becausemorethan70percentofU.
S.
tradewithMexicotravelsbytruck,thebanoncross-bordertruckingimposesanadditional$200millionto$400millionintransportationcostseachyear,accordingtotheU.
S.
DepartmentofTransportation.
Second,failuretocomplyhasexposedU.
S.
exporterstoperfectlylegalsanctionsimposedbytheMexicangovernment.
UndertheprovisionsofNAFTA,andafterwaitingpatientlyformorethanadecade,theMexicangovernmentimposedsanctionsin2009onmorethan$2.
4billioninU.
S.
exportsaffect100products,fromWashingtonapplestoIowapork.
ThesanctionswouldbeliftedintwostagesastheU.
S.
governmentimplementstheproposedprogramtocomplywithAnnexI.
Third,failuretocomplyhascompromisedtheU.
S.
government'sreputationasagoodcitizenoftheglobaltradingsystem.
Simplyput,theU.
S.
governmenthasfailedtokeepitswordtoourMexicanneighbors.
Ourgovernmenthasbeeninflagrantviolationofamajortradeagreementformorethan15years.
ThisbreachoftrusthasunderminedtheU.
S.
government'sstandingtochallengeothergovernments,fromMexicotoChinatotheEuropeanUnion,whomayalsobeinviolationofvarioustradeagreements.
TheObamaadministration'spromisetomorevigorously''enforce''ourrightsintheWorldTradeOrganizationandotheragreementswilllackcredibilityaslongastheU.
S.
governmentfailstocomplywithsuchclearcommitmentsasthetruckingprovisionsofNAFTA.
Forallthesereasons,theU.
S.
governmentshouldactasquicklyandasthoroughlyaspossibletoimplementtheproposedregulationstobringournationintocompliancewithourmutuallybeneficialagreementwithourMexicanneighborsoncross-bordertrucking.
GeneralOppositiontothePilotProgramMostoftheindividualcommenterstotheApril13noticeexpressedconcernsaboutthefollowing:(1)TheU.
S.
Government'sfundingoftheelectronicmonitoringdevicesforparticipatingMexico-domiciledmotorcarriers;(2)Mexico'sstandardsforCDLs;(3)TheaccuracyandcompletenessofMexico'sdriverrecords;(4)Compliancewithhours-of-servicerequirements;and(5)ComparableaccessforU.
S.
motorcarriers.
U.
S.
SenatorJohnD.
RockefellerandU.
S.
RepresentativePeterA.
DeFaziobothnotedtheeconomicimpactsofNAFTA.
RepresentativeDeFazioexpressedconcernthat''theAdministrationisnotlaunchingapilotprogram,butratherstartingthefullliberalizationofcross-bordertruckingwithouthavingfullyaddressedtheconcernsraisedbymembersofCongresssurroundingsafety,security,andjobimpactsthatwillnecessarilyarise.
''RepresentativeDeFaziofurthersuggested''thattheU.
S.
shouldrenegotiateU.
S.
NAFTAAnnexI(I–U–21)***thuseliminat[ing]therequirementtoopenourborderstoMexicantrucks.
''U.
S.
RepresentativeBobFilnerandU.
S.
SenatorMarkPryoralsoexpressedconcernsaboutthepilotprogram.
RepresentativeFilner'sconcernsincludedtrafficcongestionatourlandport-of-entryandtheimpactonborderwaittimes.
Hestatedthat,''Manyofmyconstituentsalreadyhavetowaitinlinesseveralhourseachdaytocrosstheborder***.
WesimplydonothaveenoughBorderPatrolandImmigrationandCustomsEnforcementagentsatthebordertodealwiththeexistingtrafficortheheavyburdenoftheproposedprogram.
''U.
S.
RepresentativeDuncanHunter,Jr.
and43additionalmembersofCongressco-signedalettertotheSecretarycommunicatingtheirconcernsaboutsafety,thecostsofelectronicmonitoringdevices,andviolenceinMexico.
Acopyofeachcongressionalletterisavailableinthedocketforthisnotice.
1.
OperatingAuthorityUnderthePilotProgramTheCoalitionstatedthatthepilotprogramparticipantsshouldnotbegrantedpermanentauthoritybeforecompletionofthepilotprogramandevaluationoftheresults.
TheCoalitionstatedthat,''GrantingpermanentoperatingauthoritybeforethePilotProgramiscompletedunderminesthepurposeoftheexperimentanddatacollectionandputsthepublicatseriousrisk.
''RepresentativeDeFazioquestionedhowtheAgencycouldcomplywith49U.
S.
C.
31315,whichrequiresDOTtoimmediatelyrevoketheparticipationofanymotorcarrierordriverwhofailstocomplywiththetermsandconditionsofthepilotprogram,iftheAgencyisgrantingpermanentauthority.
OOIDAchallengedtheAgency'sstatutoryauthorityforissuingoperatingauthority.
OOIDAaverredthat49U.
S.
C.
13902precludesFMCSAfromacceptingcompliancewithcertainMexicanlawsandregulationsinlieuofcompliancewithU.
S.
lawsandregulations.
OOIDAstated,''FMCSAissimplynotauthorizedtoissueoperatingauthoritytoanymotorcarrier(U.
S.
orMexican)unlessthatcarrieragreestocomplywithapplicableU.
S.
statutesandregulations.
''Tosupportitsposition,OOIDAquotedastatementintheNovember27,2002,MemorandumofthePresidentfortheSecretaryofTransportation,''DeterminationUndertheInterstateCommerceCommissionTerminationActof1995,''(65FR71795,November27,2002),whichterminatedamoratoriumonissuingoperatingauthoritytoMexico-domiciledmotorcarriers:MotorcarriersdomiciledinMexicooperatingintheUnitedStateswillbesubjecttothesameFederalandStatelaws,regulations,andproceduresthatapplytocarriersdomiciledintheUnitedStates.
AdvocatesquestionedwhetherFMCSAwillbegrantingtemporaryoperatingauthoritytoanyparticipatingMexico-domiciledlong-haulmotorcarriersbeforetheyareacceptedintothepilotprogram.
Advocatesalsostatedthatitopposesthegrantingofanyoperatingauthority,includingtemporaryauthority,inadvanceofFMCSA'spublicationofanoticeintheFederalRegisterdescribingitsdataandinformationoncompletedPASAsanditsanalysisofpubliccommentsinresponsetothenoticeconcerningthecompletedPASAs.
Advocatesalsorequested''thattheagencypublishallthePASAsofalltheparticipatingmotorcarriersinadvanceofthestartofthePilotProgramandbeforeanymotorcarriersaregrantedtemporaryoperatingauthority.
''FMCSAResponse:FMCSA'sAuthoritytoIssueOperatingAuthority.
Title49U.
S.
C.
13902(a)directsFMCSAVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00104Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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131/Friday,July8,2011/Noticestograntoperatingauthoritytomotorcarriersthatcomplywithallapplicablesafetyregulationsandfinancialresponsibilityrequirements.
Asdiscussedinthe''LegalBasis''sectionabove,section6901(a)ofthe2007AppropriationsActrequiresthatbeforeFMCSAmayobligateorexpendanyfundstograntauthorityforMexico-domiciledmotorcarrierstoengageincross-borderlong-hauloperations,itisrequiredtofirsttestgrantingsuchauthoritythroughapilotprogramthatmeetsthestandardsof49U.
S.
C.
31315(c).
Byexpresslyprovidingforpilotprogramsin49U.
S.
C.
31315(c),andrequiringFMCSAtofirsttestthegrantingoflong-haulauthoritytoMexico-domiciledmotorcarriersthroughapilotprogram,Congressclearlycontemplatedthatmotorcarriersparticipatinginatestmeetingtheconditionsofsection31315(c)wouldlawfullybegrantedoperatingauthorityunder49U.
S.
C.
13902(a).
Furthermore,thepilotprogramsatisfiesthefundamentalstatutorystandardofequivalentsafetyprotectionandallotherpilotprogramrequirements.
Thesafety-equivalencestandardinsection31315(c)requiresthatthepilotprogrambedesignedtoachieveasafetylevelequaltothatprevailingunderexistingFederalMotorCarrierSafetyRegulations(FMCSRs).
ThepilotprogramdoesnotrelaxU.
S.
regulationsforparticipants.
Rather,itsimplyimplementsthepresidentialorderliftinggeographiclimitationsoncross-bordertruckingforalimitednumberofMexico-domiciledmotorcarriersandimposesadditionallayersofsafetymonitoringuponthosemotorcarriers.
ExistingFederalregulationsalreadyrecognizeandaccepttheMexicanLicenciaFederaldeConductor(LFC)asequivalenttotheU.
S.
CDL,(§383.
23(b)andfootnote)andpursuanttotheseregulations,thousandsofLFCholdershavedrivenMexicantrucksintotheUnitedStatessincetheiradoptionin1992andcontinuetodosotoday.
Inallothersignificantrespects,U.
S.
requirementsapplywithfullforcetoparticipantsinthepilotprogram.
TheAgency,byshowingthatthepilotprogramsatisfiesthestandardofequivalentsafetyprotectionimposedby49U.
S.
C.
31315(c),satisfiestherequirementsof49U.
S.
C.
13902(a).
PermanentOperatingAuthorityunderthePilotProgram.
Somecommentersseemedtomisapprehendthereferenceto''pilotprogrampermanentauthority''intheApril13,2011notice.
Thatauthorityisnotthesameasstandardpermanentauthority;willnotcontinueaftertheexpirationofthepilotprogram(unlessconvertedintostandardpermanentauthority);andmayberevokedatanytimeiftheoperatorfailstocomplywiththetermsandconditionsofthepilotprogram.
Alloperatingauthoritygrantedunderthepilotprogramwillbesubjecttothetermsandconditionsofthepilotprogram.
Underthepilotprogram,participatingmotorcarrierswillhavetheopportunitytooperateunderthreesuccessivestagesofmonitoring.
Stage1willbeginwhenthemotorcarrierisissuedaprovisionaloperatingauthority.
Themotorcarrier'svehiclesanddriversapprovedforlong-haultransportationwillbeinspectedeachtimetheyentertheUnitedStatesforatleast3months.
Thisinitial3-monthperiodmaybeextendedifthemotorcarrierdoesnotreceiveatleastthreevehicleinspections.
FMCSAwillalsoconductanevaluationofthemotorcarrier'sperformanceduringStage1.
Mexico-domiciledmotorcarriersmaybepermittedtoproceedtoStage2ofthepilotprogramafterFMCSAcompletesanevaluationofthemotorcarrier'sperformanceinStage1.
DuringStage2,themotorcarrier'svehiclesanddriversparticipatinginthepilotprogramwillbeinspectedataratecomparabletootherMexico-domiciledmotorcarriersthatcrosstheUnitedStates-Mexicoborder.
Themotorcarrier'ssafetydatawillbemonitoredtoassurethemotorcarrierisoperatinginasafemanner.
Within18monthsafteraMexico-domiciledmotorcarrierisissuedprovisionaloperatingauthority,FMCSAwillconductaCRonthemotorcarrier.
Ifthemotorcarrierobtainsasatisfactorysafetyrating,hasnopendingenforcementorsafetyimprovementactions,andhasoperatedunderprovisionalauthorityforatleast18months,theprovisionaloperatingauthoritywillbecomepermanent,movingthemotorcarrierintoStage3.
Stage3ofthepilotprogramincludesparticipatingMexico-domiciledmotorcarriersthathavesuccessfullyoperatedforan18-monthmonitoringperiod,haveasatisfactorysafetyratingfromaCR,andhavenopendingenforcementorsafetyimprovementactions.
MotorcarriersthatadvancetoStage3ofthepilotprogramwilloperateunderpermanentoperatingauthorityunder,andfullysubjecttotherequirementsof,thepilotprogram.
GrantingthispermanentoperatingauthorityunderthepilotprogramdoesnotrestricttheAgency'sauthoritytoremovefromtheprogramanymotorcarrierthatfailstocomplywithtermsandconditionsofthepilotprogram.
Under49U.
S.
C.
31315,FMCSAmayrevokeparticipationinthepilotprogramofamotorcarrier,CMV,ordriverforfailuretocomplywiththetermsandconditionsofthepilotprogram.
ThesuccessivestagesinthepilotprogramareintendedtobeconsistentwiththeAgency'sregulationspromulgatedin2002relatedtoMexico-domiciledmotorcarriersoperatingbeyondthebordercommercialzones(49CFRpart365,subpartE).
ThoseregulationsprovideforaMexico-domiciledmotorcarriertobeinitiallygrantedprovisionaloperatingauthorityandbesubjecttoincreasedmonitoring.
Theauthority,bydefinition,isprovisionalbecauseitwillberevokedifthemotorcarrierisnotassignedasatisfactorysafetyratingfollowingaCRconductedduringan18-monthsafetymonitoringperiodestablishedintheregulations.
Undertheseregulations,if,attheendof18-monthsofmonitoringthemotorcarrier'smostrecentsafetyratingissatisfactoryandthemotorcarrierdoesnothaveanypendingenforcementorsafetyimprovementactions,theMexico-domiciledmotorcarrier'sprovisionaloperatingauthoritybecomespermanent.
However,thisauthorityisstillsubjecttorevocationasdetailedabove.
Section6901requiresFMCSAtofirsttestthegrantingofoperatingauthorityforlong-hauloperationbyMexico-domiciledmotorcarriersthroughapilotprogram.
Animportantcomponentandimprovementofthispilotprogramisthatbyusingtheprogressivestagesofmonitoring,theAgencyisabletotestthefullrangeofitsregulationswhileeffectivelymonitoringMexico-domiciledmotorcarrierstoensurethesafetyoflong-hauloperationsandthatsuchoperationsareconductedincompliancewithallapplicablelawsandregulations.
Inaccordancewithsection6901(c),within60daysaftertheconclusionofthepilotprogram,theOIGisrequiredtoreviewtheprogramandsubmittoCongressafinalreportaddressingwhetherFMCSAhasestablishedsufficientmechanismstodeterminewhetherthepilotprogramishavinganyadverseeffectsonmotorcarriersafety,andwhetherFederalandStatemonitoringandenforcementactivitiesaresufficienttoensurethatparticipantsinthepilotprogramareincompliancewithallapplicablelawsandregulations.
OnlyattheconclusionofthepilotprogramwillMexico-domiciledmotorcarriersthatparticipatedinthepilotprogramandadvancedtotheStage3permanentauthorityinthepilotprogrambeeligibletoconverttheirpilotprogrampermanentauthoritytostandardpermanentauthority.
FMCSAhasnotyetdevelopedtheproceduresforsuchconversions,butanticipatestheVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00105Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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GrantingofProvisionalOperatingAuthority.
TheAgencymayhavecausedsomeconfusionintheApril13,2011,noticewhenitstatedthat''theAgencywillpublishasummaryoftheapplicationasaprovisionalgrantofauthorityintheFMCSARegister.
''FMCSAwillreviewandactonapplicationsforauthorityinthepilotprograminaccordancewithapplicableregulations.
TheAgency'srulesgoverningapplicationsforauthorityarecodifiedin49CFRpart365.
FMCSAisrequiredunderitsregulationstopublishasummaryofeachapplicationformotorcarrieroperatingauthority,regardlessoftheapplicant'scountryofdomicile,asapreliminarygrantofoperatingauthorityforpublicnoticeintheFMCSARegister(49CFR365.
109(b)and365.
507(d)).
Forprospectivepilotprogramparticipants,suchpublicationwilloccuronlyafterthemotorcarriersuccessfullycompletesthePASAandFMCSAapprovestheapplication.
SuchpublicationoftheapplicationasapreliminarygrantofauthorityintheFMCSARegisterisnotanissuanceoftemporaryauthority,butanoticetothepublictopermitinterestedpartieswishingtoopposetheauthoritytosubmitaprotesttoFMCSA.
Apreliminarygrantofauthoritycannotbecomeeffectiveoractiveoperatingauthorityforaminimumof10daysafterpublication.
IfamotorcarriersuccessfullycompletesthePASAandFMCSAapprovesitsapplication,theAgencywillpublishasummaryoftheapplicationasapreliminarygrantofauthorityintheFMCSARegisterat:http://li-public.
fmcsa.
dot.
gov/LIVIEW/pkg_html.
prc_limain.
Toreviewthesenotices,select''FMCSARegister''fromthepulldownmenu.
TheFMCSAemphasizesthatthepublichastheopportunitytocommentinresponsetotheFMCSARegisteroneveryoperatingauthorityapplicationthattheAgencyproposestograntandthatmotorcarriersmaynotoperateduringthecommentperiod.
Anymemberofthepublicmayprotestamotorcarrier'sapplicationonthegroundsthatthemotorcarrierisnotfit,willing,orabletoprovidethetransportationservicesforwhichithasrequestedapproval.
FMCSAmustconsiderallprotestsbeforedeterminingwhethertograntprovisionaloperatingauthoritytothemotorcarrier.
TheAgency'sregulationsregardingprotests,codifiedat49CFRpart365subpartB,setforththeproceduresforprotestingoperatingauthorityrequests,includingrequestsfiledbyU.
S.
-andCanada-domiciledmotorcarriers.
Asrequiredbysection6901(b)(2)(B)(i)ofthe2007AppropriationsAct,2007,FMCSAwillalsopublishintheFederalRegister,andsolicitcommentoncomprehensivedataandinformationrelatingtothePASAsofmotorcarriersdomiciledinMexicothataregrantedauthorityinthepilotprogramtooperatebeyondthebordercommercialzones.
Therefore,thepublichastwoopportunitiestocommentonMexico-domiciledmotorcarriers'applications:(1)InresponsetotheapplicationsummaryinformationpostedontheFMCSARegister,andinresponsetotheFederalRegisternoticerequiredbysection6901(b)(2)(B)(i)ofthe2007AppropriationsAct.
Provisionalauthoritywillnotbegranteduntiltheseprocessesandtheirrespectivenoticeperiodsarecomplete.
WhileFMCSAwillpublishinformationontheresultsofthePASAintheFederalRegisterforpubliccommentforeachmotorcarrierbeforegrantingthemotorcarrierprovisionaloperatingauthority,FMCSAisnotabletopublishtheresultsofthePASAsforallmotorcarriersthatmayultimatelyapplytoparticipateinthepilotprogrambeforetheprogrambegins.
FMCSAwillhavenowayofknowingatthebeginningofthepilotprogramallofthemotorcarriersthatmaydecidetoapplytoparticipateintheprogramduringitsthreeyeardurationand,therefore,couldnotpublishtheresultsofallPASAsbeforebeginningthepilotprogram.
AdditionalmotorcarriersthatapplytoparticipateinthepilotprogramafteritbeginswillalsobesubjecttoPASAs,andtheresultsofthosePASAswillbepublishedintheFederalRegisterbeforeanysuchmotorcarrierisgrantedprovisionaloperatingauthority.
2.
PilotProgramImproperlyExemptsMexico-DomiciledMotorCarriersFromSafetyLawsandRegulationsOOIDAcontendsthatacceptingMexicanstandardsandregulationsinlieuofU.
S.
statutesandregulationsresultsinanexemption,andthatFMCSAhasfailedtofollowitsauthorityandregulationsforexemptions.
OOIDAstatedthat,''ExcusingcompliancewithU.
S.
regulationsforthedurationofitspilotprogramcertainlyqualifiesas'temporaryregulatoryrelief'forapersonorclassofpersonssubjecttothoseregulations.
''OOIDAassertsthatthis,therefore,requirestheAgencytofollowtheproceduresforgrantingexemptionsfromU.
S.
regulationsanddeprivesinterestedpartiesproceduralprotections.
FMCSAResponse:ThispilotprogramdoesnotprovideMexico-domiciledmotorcarrierswithexemptionsfromanystatutoryrequirementsoranyoftheAgency'sregulationsormakethemeligibleforanyexistingexemption.
Tothecontrary,motorcarriersparticipatingintheprogramwillbesubjecttoexistingstatutoryrequirementsandregulations,includingtheregulationsmandatingthePASA(49CFR365.
507(c)).
Additionally,becausenoexemptionsfromornewapproachestostatutoryrequirementsandsafetyregulationsarebeingemployedinthepilotprogram,thelevelofsafetyoversightthatwillbeachievedintheprogramisthesameorgreaterthanwouldotherwisebeachievedifMexico-domiciledmotorcarriersweregrantedauthoritytooperatebeyondthebordercommercialzonesoutsideofthecontextofapilotprogram.
Astotheissueofdriver'slicenseequivalency,theAgencyhaslongrecognizedMexico'sLFCasequivalenttotheCDLissuedbyU.
S.
StatedriverlicensingagenciesthatfollowtheFederalstandardsunder49CFRParts383and384.
TheMexicanLFCisrecognizedasavalidsubstitutefortheCDLandisthebasisforasignedinternationalagreementunderwhichtheUnitedStatesandMexicohaverecognizedeachother'scommercialdriver'slicenses,adecisionthatwasupheldonjudicialreview(Int'l.
BrotherhoodofTeamstersv.
Pena,17F.
3rd1478(DCCir.
1994)).
TheAgencyhasalsolongrecognizedMexico'sphysicalqualificationstandards.
Thesearenotexemptions,butwell-establishedalternativemeansofmeetingU.
S.
standardsthatpre-datethepilotprogram.
Indeed,everyday,thousandsofMexicandriverssafelyoperateMexico-domiciledtrucksintheUnitedStatesundertheserules.
NeithertheGovernmentofMexiconoranyMexico-domiciledmotorcarrierhasrequestedthatFMCSAconsidergrantinganexemptionfromU.
S.
safetyrequirementsforparticipatingmotorcarriers,andtheAgencyisnotseekingpubliccommentonanyformsofregulatoryrelief.
ThecontinuedhonoringofreciprocityagreementsconcerningtheacceptanceoftheMexicanLFCandthemedicalcertificationshouldnotbeconstruedasgrantingregulatoryrelief.
NoristheallowanceofspecimencollectionsontheMexicansideoftheborder,inaccordancewithU.
S.
requirements,aformofregulatoryrelief.
AlltestsmustsmustbeperformedinaccordancewiththeDepartment'scontrolledsubstancesandalcoholtestingregulations(49CFRpart40),VerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00106Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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S.
laboratoriescertifiedtoconductsuchtests.
3.
EquivalencyofUnitedStates-MexicoLawsandRegulationsGoverningSafetyAdvocates,Teamsters,theCoalitionandOOIDAallchallengedtheequivalencyofU.
S.
andMexicansafetylaws.
Advocatesassertedthat''[r]egulatorydifferencesthataffectvehicleoperationmustbereconciledbeforecommencementofPilotProgram.
''AdvocatesquestionedtheequivalenceofCDLs,disqualificationviolations,anddrugtesting.
SeveralcommentersrequestedclarificationoftheAgency'ssystemtomonitorperformanceofMexico-licenseddriversandexpressedconcernsabouttheaccuracyandcompletenessoftheMexicanLFCandMexicanStatelicenseinformation.
TeamstersalsonotedthattherearenodrugtestinglaboratoriesinMexicothatarecertifiedbytheU.
S.
DepartmentofHealthandHumanServices.
OOIDAandTeamstersbothrequestedadditionalinformationregardingthetrainingregimeforMexicanpersonneltofollowU.
S.
proceduresfordrugandalcoholtestingcollectionandchainofcustody.
TeamstersnotedthatthemedicalqualificationstandardforvisionisdifferentinMexicothanintheUnitedStates,asMexicorequiresred-visiononly.
OOIDAencouragedtheAgencytoprovideadditionalinformationontheMexicanmedicalcertificationrequirements.
MultiplecommentersaskedhowinformationaboutviolationsinpersonalvehiclesinMexicowouldbeobtainedandusedbyFMCSA.
OOIDAandAdvocatesbothbelievethatFMCSAhasanobligationtopostmoreinformationabouttheequivalentlawsandregulationsandtoprovidecopiesoftheMexicanregulationsinEnglish.
FMCSAResponse:CDLs.
Asnotedabove,in1991,theSecretaryandhiscounterpartinMexicoenteredintoanagreementonthematterofdriverlicensereciprocity.
Theagreementisintheformofamemorandumofunderstanding(MOU)andwasreproducedasAppendixAtoafinalruleissuedin1992byFMCSA'spredecessoragency,theFederalHighwayAdministration(FHWA).
(CommercialDriver'sLicenseReciprocitywithMexico,57FR31454(July16,1992)).
TheprimarypurposeoftheMOUwastoestablishreciprocalrecognitionoftheCDLissuedbytheStatestoU.
S.
operatorsandtheLFCissuedbythegovernmentoftheUnitedMexicanStates(i.
e.
,bythenationalgovernmentofMexico,notbytheindividualMexicanstates).
Inlightoftheagreement,theFHWAdeterminedthatanLFCmeetsthestandardscontainedin49CFRpart383foraCDL.
(49CFR383.
23(b)(1)andfootnote)FHWAalsostatedintheJuly16,1992finalrule:ItshouldbenotedthatMexicandriversmustbemedicallyexaminedevery2yearstoreceiveandretaintheLicenciaFederaldeConductor;noseparatemedicalcard[certificate]isrequiredasintheUnitedStatesfordriversininterstatecommerce.
AstheLicenciaFederaldeConductorcannotbeissuedtoorkeptbyanydriverwhodoesnotpassstringentphysicalexams,theLicenciaFederaldeConductoritselfisevidencethatthedriverhasmetmedicalstandardsasrequiredbytheUnitedStates.
Therefore,MexicandriverswithaLicenciaFederaldeConductordonotneedtopossessamedicalcardwhiledrivingaCMVintheUnitedStates.
(57FR31455)TheAgency'sdeterminationthataMexico-domicileddriverwithanLFCdoesnotneedtopossessaseparatemedicalcertificateisbasedonthefactthatthemedicalexaminationnecessarytoobtaintheLFCmeetsthestandardsforanexaminationbyamedicalexaminerinaccordancewithFMCSAregulations,andwouldthereforemeettherequirementsof49U.
S.
C.
31136(a)(3).
WhileFMCSArecognizesthatU.
S.
CDLregulationshavebeenamendedsince1991,thosechangesrelatealmostexclusivelytothetypesofoffensesthatwouldresultindisqualificationoflicensesandtotheadministrationofthelicensingprogram(i.
e.
,howinformationisreportedandsharedamongtheStates).
TherehavebeennomajorchangestotheU.
S.
knowledgeandskillstestinguntilissuanceofaMay9,2011finalruleimplementingtheCDLLearner'sPermitprocessestitled,''CommercialDriver'sLicenseTestingandCommercialLearner'sPermitsTesting,''(76FR26854).
Stateshave3yearstoimplementtheprovisionsofthatrule.
TheUnitedStateswilladdressthechangesinU.
S.
CDLregulationswithMexicoduringtheupdatingofthe1991CDLMOUthatiscurrentlyunderway.
Withrespecttothechangesrelatingtodisqualifyingoffenses(49CFRpart383,subpartD),FMCSAisnotrelyingonMexico'sdisqualifyingoffenses.
DuringthePASA,FMCSAwillreviewviolationinformationfromadriver'sU.
S.
record,LFCrecord,andMexicanStatelicenserecordtodetermineifthedriverisqualifiedtodriveintheUnitedStates,basedonthecurrentdisqualificationrequirementsforaU.
S.
CDLholder.
FMCSAwillalsoreviewMexicanStatelicenserecordsforviolationsinapersonalvehiclethatwouldresultinsuspensionorrevocationintheUnitedStates.
AfterthePASA,thesesetsofrecordswillbereviewedannuallybyFMCSAtoensurecontinuedcompliance.
FMCSAdoes,however,recognizetheconcernabouttheon-goingacceptanceoftheexistingCDLMOU.
IntheAgency'seffortstoupdatetheMOU,onFebruary16,2011,adelegationofFMCSAandDOTrepresentativestouredSCT'scommercialdriver'slicensingofficeinMexicoCity,DistrictoFederal,Mexico.
Thereviewofthecommercialdriver'slicensingofficeshowedthattheLFCisissuedinamannersimilartothatemployedbyU.
S.
Statecommercialdriverslicensingoffices.
Applicantsarerequiredtopresentdocumentationtoverifytheiridentityandplaceofresidence.
Additionally,applicantsarerequiredtoprovidedocumentationthattheyhavepassedtherequiredpsycho-physicalexamination.
ThedriverslicensingofficeverifiesthisinformationbyaccessingtheSCT'smedicalunits'database.
ApplicantsarealsorequiredtoprovideatrainingcertificatefromanSCT-certifiedtrainingschool.
OnFebruary17,2011,adelegationofFMCSA,CVSA,andtheAmericanAssociationofMotorVehicleAdministrators(AAMVA)representativestouredthecommercialdriver'slicensingofficeinMonterrey,NuevoLeon,Mexico.
ThedelegationobservedthesameprocessesaswereseeninMexicoCity.
Inaddition,thedelegationtouredanSCT-certifiedtrainingschoolinMonterrey.
Thetourincludedadescriptionoftheclassroom,simulator,maintenanceshop,andbehindthewheeltraining.
Thetrainingschooloperatordescribedthedrivertestingprocedures.
FMCSAwillbeundertakingadditionalsitevisitstoMexicandrivertraining,testing,andlicensinglocationspriortobeginningthepilotprogramtoreviewMexico'son-goingcompliancewiththetermsofthecurrentMOU.
ReportsofthesevisitswillbepostedontheFMCSApilotprogramWebsiteathttp://www.
fmcsa.
dot.
gov.
FMCSA'sstatementthatMexico-domicileddriversandmotorcarrierswillbesubjecttothesamestandardsasU.
S.
driversandmotorcarriersdoesnotmeanthatU.
S.
standardsmustbeappliedtoMexico-domicileddriversandmotorcarrierswhileoperatinginMexico.
TheAgencydoesnothaveauthoritytoapplyU.
S.
standardstodriverormotorcarrieractionsoccurringinMexico,i.
e.
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IfMexicochoosestosuspendorrevokeadriver'sLFCforviolationscommittedinMexico,theLicenciaFederalInformationSystem(LIFIS)willreflectthatfactandFMCSAwillrefusetoletthedriveroperateinthiscountry.
AlldriversoperatingCMVsintheUnitedStatesaresubjecttothesamedriverdisqualificationrules,regardlessofthejurisdictionthatissuedthedriver'slicense.
ThedriverdisqualificationrulesapplytodrivingprivilegesintheUnitedStates.
AnyconvictionsfordisqualifyingoffensesthatoccurintheUnitedStateswillresultinthedriverbeingdisqualifiedfromoperatingaCMVfortheperiodoftimeprescribedintheFMCSRs.
InMexico,inordertoobtaintheLFC,adrivermustmeettherequirementsestablishedbytheLeydeCaminos,PuentesyAutotransporteFederal(Roads,BridgesandFederalMotorCarrierTransportationAct)Article36,andReglamentodeAutotransporteFederalyServiciosAuxiliares(FederalMotorCarrierTransportationAct)Article89,whichstatethataMexicandrivermustpassthemedicalexaminationperformedbyMexico'sSCT,DirectorshipGeneralofProtectionandPreventionMedicineinTransportation(DGPMPT).
WhilethereiscurrentlynogovernmentoversightoftheproficiencyandknowledgeofmedicalexaminersintheUnitedStates,themedicalexaminationsinMexicoareconductedbygovernmentdoctorsorgovernment-approveddoctorsinsteadoftheprivatephysicianswhoperformtheexaminationonU.
S.
drivers.
TheAgencyemphasizesthatdriversforMexico-domiciledmotorcarriershavebeenoperatingwithinthebordercommercialzonesforyearswiththemedicalcertificationprovidedaspartoftheLFC,andtheAgencyisnotawareofanysafetyproblemsthathavearisenasaresult.
InresponsetothequestionsregardinghowviolationsinpersonalvehicleswillbehandledandthequalityoftheMexicandatabases,FMCSAnotesthatitanditsFederalandStatepartnersperformed254,397checksofLFCholdersinFY2010.
TheseLFCchecksresultedindetectionofavalidlicense250,640times,expiredlicenses3,713times,anddisqualifiedlicenses44times.
WhiletheMexicanStatedrivingrecordssystemsvarysignificantly,FMCSAwillbeworkingwiththeapplicantmotorcarriers,drivers,andSCTtosecurevalidcopiesoftheStatedrivingrecordsforreview.
FMCSAhassatisfiedtherequirementofsection350(c)(1)(G)concerninganaccessibledatabasecontainingsufficientlycomprehensivedatatoallowsafetymonitoringofmotorcarriersoperatingbeyondthebordercommercialzonesandtheirdrivers.
Lookingspecificallyatdrivermonitoring,in2002FMCSAestablishedasystemknownastheForeignConvictionsandWithdrawalsDatabase(FCWD),whichservesastherepositoryoftheU.
S.
convictionhistoryonMexicanCMVdrivers.
ThesystemallowsFMCSAtodisqualifysuchdriversfromoperatingintheUnitedStatesiftheyareconvictedofdisqualifyingoffenseslistedintheFMCSRs.
TheFCWDisintegratedintotheAgency'sgatewaytotheCommercialDriver'sLicenseInformationSystem(CDLIS),allowingenforcementpersonnelperformingaMexicanCDLIS-checktosimultaneouslyqueryboththeMexicanLIFISandtheFCWD.
TheresponseisaconsolidateddriverU.
S.
/Mexicanrecordshowingthedriver'sstatusfromthetwocountries'systems.
TheStatesalsohavethecapabilitytoforwardU.
S.
convictionsofLFCholders,andotherdriversfromMexico,totheFCWDviaCDLIS.
Toaccomplishthis,theStatesimplementedchangestotheirinformationsystemsandtestedtheirabilitytomakeastatus/historyinquiryandforwardaconvictiontotheFCWD.
AllStatesexceptOregon,(whichdoesnotelectronicallytransmitanyconvictions)andtheDistrictofColumbia(whichdoesnotelectronicallytransmitconvictionsofMexico-domiciledCDLdrivers)havesuccessfullytestedelectronicallyforwardingconvictionsonMexico-domiciledCMVdrivers.
Bothjurisdictions,however,canmanuallytransmittheinformationtoFMCSAforuploadingintothesystem.
AsofMay31,2011,theborderStatestransmitted46,065convictionstotheFCWDbetween2002and2011.
Thisaverages5,118peryear.
Ofthatnumber,41,118weretransmittedelectronicallyand4,947weremanuallyenteredintothesystem.
Itshouldbenotedthatonly242oftheseconvictionswereformajortrafficoffenses(aslistedin49CFR383.
51(b)),and1,709wereforserioustrafficoffenses(aslistedin49CFR383.
51(c)).
Incomparison,betweenMay2010andMay2011,theStatestransmitted186,184U.
S.
driverconvictionsthroughCDLIS.
Theconvictiondatashowsthatthesystemisworking,andStatescanbothtransmittheconvictiondataonMexico-domicileddriversandquerythesystemtoretrieveconvictiondata.
FMCSAanditsStatepartnershaveexperiencefromprovidingsafetyoversightforMexico-domicileddriverscurrentlyoperatingwithinthebordercommercialzones.
ItisreasonabletobelievethatthesmallgroupofdriverswhowouldbeinvolvedinthepilotprogramwillbenomoredifficulttomonitorthanthemuchlargerpopulationofMexico-domicileddriverscurrentlyallowedtooperatewithinthebordercommercialzones.
Asanadditionalsafetyenhancement,comparedtothepreviousdemonstrationproject,theAgencywillreviewtheMexicanStatelicenseofadriverforviolationsthatwouldresultinarevocationorsuspensionintheUnitedStates.
ThiswillincludeviolationsinpersonalvehiclesthatwouldimpactaCDLintheUnitedStates.
DrugandAlcoholTesting.
Regardingtheprotocolsforcollectionofspecimensfordrugandalcoholtesting,FMCSAclarifiesthatMexicoisusingproceduresequivalenttothoseestablishedbyDOTregulations.
Acopyofthe1998MOUbetweenDOTandtheGovernmentofMexicoisincludedinthedocketforthisnotice.
Urinespecimensforcontrolledsubstancestestingmustbecollectedinamannerconsistentwith49CFRpart40,ProceduresforTransportationWorkplaceDrugandAlcoholTestingPrograms.
Duringthe2007–2009demonstrationproject,anindependentevaluationpanelconducteditsownassessmentoftheurinecollectionproceduresatfourcollectionfacilitiesinMexico.
ThepanelconcludedthatMexicohasacollectionprogramwithprotocolsthatareatleastequivalenttoU.
S.
protocolsfoundin49CFRpart40.
BecausetherearenoU.
S.
-certifiedlaboratoriesinMexico,Mexico-domiciledmotorcarriersmustcomplybyensuringthatthespecimensaretestedinaU.
S.
-certifiedlaboratory.
Theparticipantsinthe2007–2009demonstrationprojectallhadspecimenstestedinU.
S.
-certifiedlaboratorieslocatedintheUnitedStates.
Inthenewpilotprogram,urinecollectionmaycontinuetotakeplaceinMexico.
ThespecimenswillbeprocessedinaccordancewithU.
S.
requirements.
Driverswhorefusetoreporttothecollectionfacilityinatimelymannerwillbeconsideredtohaverefusedtoundergotherequiredrandomtest,andthemotorcarrierwouldberequiredtoaddresstheissueinaccordancewithFMCSA'sControlledSubstancesandAlcoholUseandTestingregulations(49CFRpart382).
Currently,Mexico-domicileddriversoperatingwithinthebordercommercialzonesusethisapproachtocomplywiththerandomtestingrequirementsof49CFR382.
305.
Therandomselectionofdriversmustbemadebyascientificallyvalidmethod;eachdriverselectedforVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00108Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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131/Friday,July8,2011/Noticestestingmusthaveanequalchance(comparedtothemotorcarrier'sotherdriversoperatingintheUnitedStates)ofbeingselected,anddriversmustbeselectedduringarandomselectionperiod.
Also,thetestsmustbeunannounced,andthedatesforadministeringrandomtestsmustbespreadreasonablythroughoutthecalendaryear.
Employersmustrequirethateachdriverwhoisnotifiedofselectionforrandomtestingproceedtothetestsiteimmediately.
Inaddition,throughthePASA,theAgencywilldeterminewhetherthemotorcarrierhasaprograminplacetoachievefullcompliancewiththecontrolledsubstancesandalcoholtestingrequirementsunder49CFRparts40and382.
TheabilityofthebordercommercialzonemotorcarrierstofollowtheseproceduresfurtherdemonstratesthatMexico-domiciledmotorcarriersarecapableofsatisfyingtheAgency'sdrugandalcoholtestingrequirements.
BasedonFMCSA'sexperienceenforcingthecontrolledsubstancesandalcoholtestingrequirementsonbordercommercialzonemotorcarriers,theAgencybelieveslong-haulMexico-domiciledmotorcarrierscanandwillcomplywiththerandomtestingrequirements,especiallygiventhatsomeoftheanticipatedparticipantsinthepilotprogrammayalreadyhaveauthoritytoconductoperationswithinthebordercommercialzones.
TheAgency'sexperienceinthisareaandthedrugcollectionfacilityreviewsperformedduringthepreviousdemonstrationprojectmakeusconfidentthattestingisbeingconductedcorrectly.
Inaddition,theAgencywillbeconductingcollectionfacilityreviewsduringthepilotprogramtoverifyspecimensarebeingcollectedcorrectly.
MedicalQualifications.
FMCSAhascomparedeachofitsphysicalqualificationsstandardswiththecorrespondingrequirementsinMexicoandcontinuestobelieveacceptanceofMexico'smedicalcertificateisappropriate,especiallygiventhatsomeMexicanmedicalstandardsaremorestringentthantheirU.
S.
counterparts.
Forexample,oneoftheareaswhereMexico'sstandardsexceedthoseoftheU.
S.
isinBodyMassIndex(BMI)andtheassociationbetweenBMIandcertainmedicalconditionsthatcouldincreasetheriskofadriverhavingdifficultyoperatingaCMVsafely.
Mexico'sregulationsincludecertainlimitsonBMI,asitrelatestomedicalconditionsrelatedtoobesity,whereasFMCSA'sregulationsdonotincludesuchrequirements.
AnotherareawhereMexico'sphysicalexaminationandqualificationsprocessismorerigorousisvisiontesting.
Mexico'sexaminationprocessincludesameasurementofintraocularpressure,atestthatmaybeindicativeofglaucoma,adiseasecharacterizedbyapatternofdamagetotheopticnerve.
FMCSA'sregulationsdonotrequireameasurementofintraocularpressure.
Finally,themedicalcertificationforanLFCispartofMexico'slicensingprocessforcommercialdrivers.
Thismeansthelicenseisnotissuedorrenewedunlessthereisproofthedriverhassatisfiedthephysicalqualificationsstandards.
ThisisnotthecaseintheUnitedStates,wheremedicalcertificationisnotcurrentlypostedontheCDLrecord.
FMCSAhasissuedregulationstomovetowardsthislevelofoversight(''MedicalCertificationRequirementsasPartoftheCDL,''finalrule,publishedat73FR73096,December1,2008),butMexicohasmorestringentrequirementsineffectatthistime.
TherearesomeareaswhereFMCSA'srequirementsaremorestringent.
Specifically,FMCSArequiresdriversbecapableofdistinguishingbetweenred,greenandyellow,whileMexicolimitsthecolorrecognitionrequirementtored.
Additionally,theU.
S.
medicalexaminationhasstandardsforbothsystolicanddiastolicbloodpressurereadingswhileMexicoonlyhasastandardonthesystolicreading.
Afindingofequivalency,however,doesnotrequirethatbothcountry'sstandardsbeidentical.
Here,itwasFMCSA'sconsideredjudgmentthatthesedifferenceswouldnotdiminishsafetyandthat,therefore,theMexicanrequirementsareequivalenttoU.
S.
requirements.
FMCSAhaspreparedatablecomparingtheUnitedStates'andMexico'sphysicalqualificationsstandards.
Acopyofthetableisprovidedinthedocketforthisnotice.
ToassistinthereviewofMexicanregulations,FMCSAhasaddedEnglishversionsoftheregulationstothedocketforthisnotice.
ThisincludestheMexicanregulationsfortheTransportationPreventiveMedicineServiceRegulations,theFederalMotorCarrierTransportationandAuxiliaryServicesRegulations,andtheFederalRoads,Bridges,andMotorCarrierTransportationAct.
4.
ReciprocityWithMexicoTheCTA,ATA,andnumerousindividualcommentersstatedthatNAFTAreciprocitycouldnotbeachievedbecauseofthecurrentstateofviolenceandcorruptioninMexico.
OOIDAalsoprovidedU.
S.
StateDepartmentalertstotravelersandinstructiontoU.
S.
governmentemployeesasdocumentationoftheinabilityofMexicotoprovide''simultaneousandcomparable''authorityandaccess.
TheTeamsterselaboratedthat''[s]ection6901limitsfundstograntauthoritytoMexican-domiciledmotorcarrierstooperatebeyondthecommercialzonestotheextentthat'simultaneousandcomparableauthoritytooperatingwithinMexicoismadeavailabletomotorcarriersdomiciledintheUnitedStates.
'''Teamstersfurtherstatedthat''[i]tisveryclearthatthesafetyofU.
S.
driverstravelingintoMexicocannotbeensured,andthereforesimultaneousandcomparableauthorityisnotmadeavailabletoU.
S.
motorcarriersunderthepilotprogram.
''RonColepointedoutthataCongressionalResearchReportdatedFebruary1,2010,notes''[a]softhiswritingtheMexicangovernmenthasnotbegunacceptingapplicationsfromU.
S.
truckingcompaniesforoperatingauthorityinMexico.
''TheTexasDepartmentofMotorVehiclessuggestedthatFMCSAprovidedetailedinformationonMexico'sregulatoryrequirementstotheStatesandU.
S.
motorcarriersthatexpressaninterestinparticipatingintheprogram.
TheATAalsoendorsedallowingMexico-domiciledmotorcarrierswithU.
S.
investorstojointheprogramasMexico-domiciledmotorcarriers.
FMCSAResponse:InresponsetothecommentsaboutreciprocityforU.
S.
motorcarriers,FMCSAwillcontinuetoworkcloselywiththeMexicangovernmenttoensurethatU.
S.
-domiciledmotorcarriersaregrantedreciprocalauthoritytooperateinMexicoduringthepilotprogram.
Mexicowillpublishrulesforitscurrentprogrambeforeinitiationoftheprogram.
BothEnglishandSpanishversionsofSCT'sdraftruleshavebeenaddedtothedocketforinformationalpurposes.
Inaddition,theDepartmentofTransportationisenteringintoaMOUwithMexico'sSCTthatrequiresthatMexicoprovidereciprocalauthority.
TheAgencywillalsoworkwiththeU.
S.
truckingindustrytofacilitatetheexchangeofinformationbetweentheMexicangovernmentandU.
S.
truckingcompaniesinterestedinapplyingforauthoritytoenterMexicounderthispilotprogram.
BothTeamstersandOOIDAcommentedontheongoingviolenceinMexico,andthatitnegativelyimpactsthepossibilityofU.
S.
motorcarriersenteringMexico.
BothcitetotheU.
S.
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131/Friday,July8,2011/NoticesStateDepartmenttraveladvisory,andinturnpointtoaportionofsection6901thatstatesthat''simultaneousandcomparableauthoritytooperatewithinMexicoismadeavailabletomotorcarriersdomiciledintheUnitedStates.
''Thereferencetothesection6901languagespeakstotheabilityofU.
S.
motorcarrierstoreceivecomparableoperatingauthorityfromMexico'sSCT.
TheMOUbetweenDOTandSCTprovidesforreciprocalaccesstoeachcountry.
TheSCThasissuedproposedrulesoutliningproceduresforU.
S.
motorcarrierstooperateinMexico.
TheywillhavetheabilitytoapplyforauthorityandoperatewithinMexicosimilartothatofMexico-domiciledmotorcarriersintheUnitedStates.
Therefore,thestatutoryrequirementhasbeenmet.
Itisanindependentbusinessdecisiononthepartofmotorcarriersastowhetherornottheywishtoapplyforauthority,oruseitonceobtained.
Hundredsofcompaniesarecurrentlyoperatingintheborderregion,andfourU.
S.
motorcarriersfromthe2007demonstrationprojectcontinuetooperateintoMexico.
(WhereastheUnitedStatesrequiredMexico-domiciledmotorcarriersparticipatinginthe2007demonstrationprojecttorelinquishtheiroperatingauthoritywhentheprojectwasterminated,MexicopermittedtheU.
S.
-domiciledmotorcarriersholdingreciprocalauthoritytocontinuetheiroperationsinMexico.
)OOIDAmakestheclaimthattheviolenceinMexicoisaviolationoftheNAFTAasanullificationandimpairmentofU.
S.
motorcarrierrightstoengageincross-bordertradeinservicesunderChapter12oftheNAFTA.
OOIDAcontendsthat,''Federal,stateandlocalgovernmentswithinMexicoareseenbymanytobecomplicit''inthedrug-relatedviolence.
OOIDAquotesAnnex2004oftheNAFTA''NullificationandImpairment''language,including''***beingnullifiedorimpairedasaresultoftheapplicationofanymeasurethatisnotinconsistentwiththisAgreementemphasisadded).
Theviolenceofthedrugcartels,accordingtoOOIDA,impairsU.
S.
motorcarrierswishingtooperateinMexico.
ThefundamentalerrorwiththisreasoningisthatnomeasurehasbeenputinplacebytheGovernmentofMexicothatwouldprohibitU.
S.
motorcarriersfromdoingbusinessinMexico,orwouldputU.
S.
motorcarriersatsuchacompetitivedisadvantagethattheyareimpaired.
InorderforAnnex2004toapply,aStateactor,suchasSCT,mustputinplace''measuresnotinconsistentwith''cross-bordertradeinservices.
ItcouldconstituteaviolationoftheNAFTAifaMexicanagencyputinplacerestrictionsonU.
S.
motorcarriersthatwouldonitsfacenotbediscriminatorybuthavetheultimateeffectofdenyingthemotorcarriersthebenefitstheyreasonablyexpectedunderChapter12.
That,however,isnotthecasehere.
TheapplicationforauthorityandusingittooperateintoMexicorequiresseveralbusinessdecisionsonthepartofthemotorcarrier,anditisultimatelythemotorcarrier'sdecisiontooperateintoMexico,asmuchasitwouldbeforamotorcarriertoexpanditsbusinessfromshort-haultolong-haul.
FMCSAalsonotesthatwhileMexicohasnotbegunacceptingapplicationsfromU.
S.
truckingcompaniesforoperatingauthorityinMexico,neitherhasFMCSAbegunacceptingapplicationsfromMexico-domiciledmotorcarriersforparticipationinthepilotprogram.
Mexico,liketheUnitedStates,isupdatingitsapplicationproceduresforU.
S.
motorcarrierstooperateintoMexico.
Followingthepublicationofthisnotice,FMCSAwillbeginacceptingapplicationsfromMexico-domiciledmotorcarrierstoparticipateinthepilotprogram.
MexicowillbeginacceptingapplicationsfromU.
S.
motorcarrierstooperateinMexicosoonthereafter.
WhenMexico'snewprocessesarefinalized,FMCSAwillpostinformationregardingthoserequirementsonourWebpagerelatedtothispilotprogramsothatStatesandindustryareawareoftherequirements.
Inanycase,theUnitedStateswillnotgrantauthoritytooperatebeyondthebordercommercialzonestoanyMexico-domiciledmotorcarriersunderthispilotprogramunlessanduntilMexicoisreadytoprovideauthoritytoU.
S.
motorcarriers.
FMCSAalsousesthisnoticetoclarifythatMexico-domiciledmotorcarrierswithU.
S.
investorsareeligibletoparticipateinthepilotprogram.
5.
PilotProgramRequirementsTheAgencyreceivedcommentsfromtheOOIDA,Teamsters,Advocates,andtheCoalitionregardingtherequirementsofFMCSA'spilotprogramauthority.
OOIDAnotedthat,under49U.
S.
C.
31315(c)(2),apilotprogrammustincludesafetymeasuresdesignedtoachievealevelofsafetythatis''equivalentto,orgreaterthan''therequiredlevelofsafety.
OOIDAalsofaultedtheproposalfornotelaboratingonthecountermeasurestoprotectthepublichealthandsafetyofstudyparticipantsandthegeneralpublic.
FMCSAResponse:TheFMCSAanditsStatepartnerswillensurecompliancewiththerequirementsofthepilotprogramthesamewaytheAgencyandtheStatesensurethatMexico-domiciledmotorcarriersoperatinginandbeyondthebordercommercialzonescomplywiththeapplicablesafetyregulations.
Therearecurrently6,861motorcarrierswithauthoritytooperatewithinthebordercommercialzonesandanadditional1,063motorcarrierswithCertificatesofRegistrationtooperatebeyondthecommercialzones.
FMCSAandtheStateshavearobustsafetyoversightprogramforMexico-domiciledmotorcarriersthatarecurrentlyallowedtooperateCMVsintheUnitedStates.
InFY2010,FMCSAanditsStatepartnersconductedover256,000commercialvehicleinspectionsonvehiclesoperatedbyMexico-domiciledmotorcarriersinthebordercommercialzones.
Further,inordertoassistinensuringcompliance,FMCSAimposedthefollowingpre-requisitesforMexico-domiciledmotorcarrierstoparticipateinthepilotprogram:(1)Theapplicationforlong-hauloperatingauthority,whichincludesrequirementsforproofofacontinuousvalidinsurancewithaninsurancecompanylicensedintheUnitedStates,incontrasttotripinsuranceusedbymotorcarriersthatoperatesolelywithinthebordercommercialzones;(2)successfulcompletionofthePASApriortobeinggrantedprovisionalauthority;(3)thecontinuousdisplayofavalidCVSAdecal;and(4)aspecialdesignationintheirUSDOTNumberstoallowenforcementofficialstoreadilydistinguishbetweenvehiclespermittedtooperatesolelywithinthebordercommercialzoneandthoseauthorizedtooperatebeyondthebordercommercialzones.
Inaddition,section350and49CFR385.
707requirethataCRbeconductedwithin18monthsofthemotorcarrierbeinggrantedprovisionaloperatingauthority.
Inthecontextofthepilot,FMCSAwillprioritizelong-haulMexico-domiciledmotorcarriersforCRsbasedonanumberoffactors,suchasthemotorcarrier'ssafetyperformanceasmeasuredthroughroadsideinspectionsandcrashinvolvementandtheAgency'sSafetyMeasurementSystem.
ThevehiclesanddriverswillbemonitoredthroughdatacollectedfromelectronicmonitoringdeviceswithGPS.
Inaddition,thedrivers'completedrivingrecordswillbereviewedinadvanceofparticipationandthenannuallythereafter.
Also,duringthefirststage,thevehiclesanddriverswillbesubjectedtomoreinspections.
TheFMCSAanditsStatepartnershaveformanyyearsprovidedsafetyVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00110Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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131/Friday,July8,2011/NoticesoversightunderthesameregulationsforamuchlargerpopulationofMexico-domiciledmotorcarriersoperatinginU.
S.
bordercommercialzonesandmotorcarrierswithCertificatesofRegistrationthanthegroupthatwillparticipateinthepilotprogram.
Asaresult,theAgencyhasawell-establishedandeffectiveenforcementprograminplacetoensurethatparticipantscomplywiththetermsandconditionsoftheprogram.
Moreover,fullcompliancewithexistingU.
S.
safetyregulationsanddomesticpoint-to-pointtransportationprohibitionswillberequired,asisthecasewithMexico-domiciledmotorcarriersoperatinginthebordercommercialzonesandcertificatedmotorcarriersalreadyoperatingbeyondthebordercommercialzones.
Asdiscussedinthissection,FMCSAhastakennecessarystepstocomplywiththerequirementtoprovideanequivalentorgreaterlevelofsafety,andcountermeasuresarethereforenotrequired.
6.
PASARequirementsCommenters,includingTeamstersandAdvocates,recommendedthatinformationaboutthePASAsbepostedintheFederalRegisterratherthantheFMCSARegister.
TeamstersrecommendedthatthePASAalsoincludeaspotcheckofvehiclesotherthanthosetobeusedinthelong-haulprogramtogathermoreinformationonthecarrier'soperations.
OOIDA,AdvocatesandTeamstersrequestedadditionalinformationontheAgency'sstandardsforevaluatingEnglishlanguageproficiencyandoneassociationsubmissionindicatedtheEnglishlanguagescreeningandshouldbeacomponentoftheinitialscreening.
Advocatesrequestedthattheviolationhistoriesofapplicantmotorcarriers,andtheirdriverconvictionsrecordsinbothMexicoandtheU.
S.
shouldbedisclosedintheFederalRegisterpublicationaspartofthePASAinformationdisclosure.
OOIDArequestedadditionalinformationaboutparticipatingmotorcarrier'spastoperationswithintheUnitedStates.
TheIRPrequestedthattheAgencyusethePASAasanopportunitytoreiteratetherequirementsforIRPandIFTAregistrations.
OOIDAalsorecommendedthatPASAsbeconductedagainonmotorcarriersthatparticipatedinthepreviousdemonstrationprojecttoensuretheyarestillsafemotorcarriers.
FMCSAResponse:ThereappearstohavebeensomeconfusionaboutwherethePASAinformationwillbepublished.
TheresultsofthePASAswillbepostedintheFederalRegister.
ThiswaswherethePASAinformationwaspostedduringthepreviousdemonstrationproject,andFMCSAwillfollowthisprotocolagaininthispilotprogram.
TheoperatingauthorityapplicationinformationwillalsocontinuetobepostedintheFMCSARegisterasrequiredbyapplicableregulations.
IfthemotorcarrierhaspassedthePASA,FMCSAwillpublishthemotorcarrier'srequestforauthorityintheFMCSARegister.
TheFMCSARegistercanbeviewedbygoingto:http://li-public.
fmcsa.
dot.
gov/LIVIEW/pkg_html.
prc_limainandthenselecting''FMCSARegister''fromthedrop-downboxintheupperrightcornerofthescreen.
Anymemberofthepublicmayprotestthemotorcarrier'sapplicationonthegroundsthatthemotorcarrierisnotfit,willing,orabletoprovidethetransportationservicesforwhichithasrequestedapproval.
FMCSAwillconsiderallprotestsbeforedeterminingwhethertograntprovisionaloperatingauthority.
UnderFMCSAregulations,allmotorcarriersreceiveprovisionalnewentrantauthorityfor18monthsafterreceivingaUSDOTNumberandaresubjecttoenhancedsafetyscrutinyduringtheprovisionaloperatingperiod.
RegardingtheTeamster'srequestthatadditionalvehiclesinthemotorcarrier'sfleetbeinspectedduringthePASA,theAgencypointsoutthatallavailablevehiclesthatareusedinU.
S.
operationswillbesubjecttoreviewduringtheCR.
Additionally,vehiclesoperatedintheU.
S.
byMexico-domiciledmotorcarriersalsoregularlycrosstheborder,wherethevehicleinspectionrateis13timeshigherthanthatofvehiclesintheinterioroftheU.
S.
Asaresult,theAgencydoesnotbelieveitisnecessarytoinspectvehiclesotherthantheparticipatingvehiclesduringthePASA.
FMCSAwillcheckparticipatingMexico-domicileddriversduringthePASAthroughaninterviewinEnglish.
Theinterviewwillincludeavarietyofoperationalquestions,whichmayincludeinquiriesabouttheoriginanddestinationofthedriver'smostrecenttrip;theamountoftimespentonduty,includingdrivingtime,andtherecordofdutystatus;thedriver'slicense;andvehiclecomponentsandsystemssubjecttotheFMCSRs.
ThedriverwillalsobeaskedtorecognizeandexplainU.
S.
trafficandhighwaysignsinEnglish.
Ifthedriversuccessfullycompletestheinterview,FMCSAhasconfidencethatthedrivercansufficientlycommunicateinEnglishtoconversewiththegeneralpublic,understandtrafficsignsandsignalsinEnglish,respondtoofficialinquiriesandmakeentriesonreportsandrecordsrequiredbyFMCSA.
RegardingAdvocates'requestthatadditionalinformationbepublishedaboutthehistoryofMexico-domiciledmotorcarriersanddrivers,FMCSAiscommittedtopublishingtheresultsofthePASAsasrequiredbysection6901(b)(2)(B)ofthe2007AppropriationsAct.
FMCSAwillnotpublishviolationdataonindividualMexicandriversasprotectionoftheirpersonalprivacy.
FMCSA,however,willmakeadditionalinformationaboutallparticipatingmotorcarriers'pastU.
S.
performanceavailablethroughitsSafetyManagementSystem(SMS)asrequestedbyOOIDA.
FMCSAagreeswiththeIRP'ssuggestionthatinformationregardingtherequirementsforregistrationandfueltaxesbeprovidedduringthePASA.
TheAgencyisrevisingitsPASAprocedurestoincludethisinformation.
Inregardtomotorcarriersthatparticipatedinthepreviousdemonstrationprojectthatchoosetoapplytoparticipateinthepilotprogram,ithasalwaysbeeninFMCSA'splanthatPASAswillbecompletedonthesemotorcarriers.
FMCSArecognizesthattheremayhavebeenchangesinthemotorcarrier'soperationssincethedemonstrationprojectendedin2009andthatacurrentPASAisneeded.
7.
CredittoDemonstrationProjectParticipantsMostcommentersdidnotagreewiththeAgency'splanstogivecredittomotorcarriersthatparticipatedinthedemonstrationprojectfortheamountoftimetheyoperatedsafely.
TheTeamstersspecificallycontendedthatprovidingcredittopreviousparticipantswasaviolationofsection6901.
FMCSAResponse:Itappearsthattherewassomeconfusionabouthowthesemotorcarriers,iftheychosetoparticipateinthenewpilotprogram,wouldentertheprogram,andhowtheirsafetywouldbeevaluated.
Asnotedabove,ithasalwaysFMCSA'splanandresponsibilitytoconductPASAsonallmotorcarriersapplyingforauthorityunderthepilotprogramincludingmotorcarriersthatparticipatedinthepriordemonstrationproject.
Asaresult,themotorcarrier'ssafetymanagementcontrolswillbeassessedagaininadvanceofparticipation.
Theonlydistinctionthatisbeingmadeformotorcarriersthatpreviouslyparticipatedinthedemonstrationprojectistogivethemcreditfortheamountoftimetheyoperatedundertheprojectincompletingthe18monthsofprovisionalauthoritybeforebeingeligibletoVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00111Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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FMCSAbelievesthisisconsistentwithsection6901becausethepreviousdemonstrationprojectwassubjecttothesamepilotprogramstatuteandregulations.
WhileitwasultimatelydeterminedthatthepreviousprojectdidnothavesufficientparticipationtoallowforastatisticallyvaliddemonstrationthatMexico-domiciledmotorcarriersasawholecouldcomplywithU.
S.
safetystandardsandthisprogramhasaddedadditionalsafeguards,reportsfromboththeOIGandtheIndependentPaneldocumentedthatmotorcarriersinthepreviousprogramhadsafetyrecordsthatwerecomparableorbetterthantheU.
S.
fleetaverages.
Asaresult,ifamotorcarrierfromthedemonstrationprojectchoosestoapplytoparticipateinthepilotprogram,itwillbesubjecttothesecuritycheckbytheDepartmentofHomelandSecurity,PASA,financialresponsibility,CVSAdecal,andCRrequirements.
Ifamotorcarrieroperatedfor5monthsunderthedemonstrationproject,itwouldthenonlyneedtooperatesafelyforanadditional13monthsunderthepilotprogrambeforebeingeligibletoadvancetoStage3intheprogram.
8.
UseofElectronicMonitoringDevicesandComplianceWithHours-of-ServiceRequirementsThemajorityofcommentersdidnotsupportFMCSAfundingtheinstallationofelectronicmonitoringdevicesonMexicantrucksparticipatinginthepilotprogram.
RepresentativePeterA.
DeFaziostatedthat,''itisoutrageousthatU.
S.
truckers,throughtheFederalfueltax,willsubsidizethecostofdoingbusinessfortheseMexicancarriers.
''RepresentativeReidJ.
Ribblearticulatedhisunderstandingofhiscolleagues'disapprovalofusingtheHighwayTrustFundtocoverthecostsoftheelectronicmonitoringdevices,but''recognize[d]thatDOTcannotrequireMexicanmotorcarrierstocovertheseexpensesbecausethereisnosimilarrequirementforU.
S.
carriers.
''TheBTApointedoutthatthehours-of-servicerequirementsfordriversofMexico-domiciledmotorcarriersparticipatingintheprogrammustincludethedriver'son-dutyanddrivingtimeinMexicobeforereachingtheSouthernborder.
Inaddition,Teamstersassertedthatelectronicmonitoringdevicesdonotmeasure''on-duty/notdriving''timeand,asaresult,Mexicandriversneedtoprovidelogsandsupportingdocuments.
Severalcommentersdidnotunderstandifthedatafromtheelectronicmonitoringdeviceswouldbeprocessedinreal-timeorattheconclusionoftheprogram.
Inaddition,therewereseveralquestionsaboutwhowouldbereviewingthedata.
FMCSAResponse:FMCSAdevelopedguidelinesforthisnewpilotprogramafterextensiveengagementwithmembersofCongressandotherstakeholderstobetterunderstandthestrengthsandweaknessesofthepriordemonstrationprojectthatendedinMarch2009.
Usingthatvaluableinput,weworkedwiththeGovernmentofMexicotocraftamorerobustprogram.
AsdescribedintheApril13,2011,FederalRegisternotice,allparticipatingMexicantruckswillberequiredtobeequippedwithelectronicmonitoringdeviceswithGPScapabilitiessothatFMCSAisabletomonitorthevehicleandusethedatatoaddresshours-of-serviceanddomesticpoint-to-pointtransportationconcerns.
StakeholdersfeltstronglythatFMCSAincludethisasanelementofthenewpilotprogram.
FMCSAwillownthemonitoringequipmentandtherebywillhaveaccessandcontrolofthedataprovidedbytheelectronicmonitoringdevicesandGPSunitsandwillbeabletocustomizereportsandalertsfromthesystemofthevendorthatwillcollectthedata.
ThisproposedapproachisnecessarytoaddressconcernsexpressedbymembersofCongressandothersregardinghours-of-serviceanddomesticpoint-to-pointcompliance.
ThemosttheAgencywouldspendonelectronicmonitoringdevicesforpurchase,installation,andmonitoringoverthelifeofthe3-yearprogramis$2.
5million—lessthan0.
1percentofthecostsbornebyU.
S.
firmssubjecttothetariffsimposedbyMexicoina12-monthperiod.
Asaresult,webelievethisisnotonlyinthepublicinteresttorequireandprovidetheelectronicmonitoringdevices,butisalsoagoodinvestmentforthecountry.
Moreover,asstatedabove,thein-truckequipmentwillbethepropertyoftheUnitedStates.
Inaddition,theelectronicmonitoringdevicesthatFMCSAwillinstallwillhavefunctionalitytoallowon-dutystartandendtimestobeenteredandtracked.
Asaresult,FMCSAwillbemonitoringon-dutytimeinMexicotoensurethatdriverscomplywithFMCSAhours-of-serviceregulationswhileoperatingintheUnitedStates.
FMCSAagrees,however,thattheparticipatingmotorcarrierswillbeexpectedtomaintaintheappropriatesupportingdocumentsforreviewbyFMCSAduringthesafetyandcompliancereviews.
ItisFMCSA'sintentiontoacquiredevicesandmonitoringsoftwarethatwillallowtheAgencytodevelopalertsandreportsofthevehiclesanddrivers'information.
ThesereportswillbereviewedbyFMCSAatleastweeklytoidentifycomplianceissues.
Ifthereareanyindicatorsofproblems,FMCSAwillinitiateaninvestigation.
FMCSAexpectstousestafftoconducttheanalysis,butacknowledgesthattheconversionoftheelectronicdatatoaformatusableforanalysismayrequiresomeprocessingbyathirdparty.
Finally,oncethepilotprogramisterminated,theprogramparticipantsmustreturntheequipmenttoFMCSA.
9.
FederalMotorVehicleSafetyStandards(FMVSS)andEmissionsIssuesCommentersonthisissueallsupportedtherequirementthattheequipmentmustmeettheFMVSSorCanadianMotorVehicleSafetyStandards(CMVSS)atthetimeofmanufacturing.
However,TeamstersbelievethattheAgency'sproposalthatmodelyears1996andnewerdonotneedalabelconstitutesawaiverandthatFMCSAdoesnothavetheauthoritytowaivethisrequirement.
ATAarguedthatthevehiclesshouldnothavetocomplywiththeFMVSS,butinsteadwiththeFMCSRs.
ATAandCTAstressedthatallequipmentoperatingintheUnitedStatesmustcomplywithFederalemissionsstandards.
Bothalsoexpressedconcernaboutthelimitedavailabilityoflow-sulfurfuelsinMexicoandtheimpactonvehicleemissions.
WernerEnterprisesrequestedclarificationontherequirementthatthevehiclesmeettheEPArequirementsatthetimeofmanufacturing.
FMCSAResponse:ParticipatingMexico-domiciledmotorcarriers,thedriverstheyemploy,andthevehiclestheyoperateintheUnitedStatesmustcomplywithallapplicableFederalandStatelawsandregulations,includingthoseconcerningcustoms,immigration,vehicleemissions,employment,vehicleregistrationandtaxation,andfueltaxation.
EnvironmentalIssues.
First,Mexico-domiciledmotorcarriersoperatingintheUnitedStatesmustensurecompliancewithallapplicableFederalandStatelawsrelatedtotheenvironment.
FMCSAhasnoreasontodoubtthatitssisterFederalandStateagencieswillenforcetheirlawsandregulationsastheyapplytolong-haulMexico-domiciledmotorcarriers,justastheyhavedoneforyearswithrespecttothebordercommercialzonemotorcarriersaswellasU.
S.
-andCanada-domiciledmotorcarriers.
Second,FMCSAdoesnothavethestatutoryauthoritytoenforceFederalVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00112Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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131/Friday,July8,2011/Noticesenvironmentallawsandregulations,withtheexceptionofthoseconcerningvehiclenoiseemissions(49CFRpart325).
TheAgencycannot,forexample,conditionthegrantofoperatingauthoritytoamotorcarrieronthemotorcarrier'sdemonstrationthatitstruckenginescomplywithEPAenginestandards.
FMCSAdoesnotconstruesection6901asexpandingthescopeoftheAgency'sregulatoryauthorityintoenvironmentalregulationoranyothernewareaofregulation.
Section6901makesnomentionofenvironmentalregulation,andFMCSAconstruesthereferenceto''measures***toprotectpublichealthandsafety''insection6901(b)(2)(B)(ii)ofthe2007AppropriationsActaswithinthecontextofthescopeoftheAgency'sexistingstatutoryauthority.
Moreover,becauseFMCSAisasafetyratherthananenvironmentalregulatoryagency,thepilotprogramisappropriatelyfocusedonevaluatingthesafetyoflong-haulMexicantruckoperationsintheUnitedStates,consistentwiththescopeof49U.
S.
C.
31315(c).
However,vehicledataisbeingcollectedtoassistwithdeterminingthepotentialenvironmentalimpactsofthepilotprogram(andforanyfurtheractionsconcerningtheborder)inaccordancewiththeNationalEnvironmentalPolicyActof1969(NEPA)andtheCouncilonEnvironmentalQuality's(CEQ)NEPAimplementingregulations(40CFRparts1500–1508)andFMCSA'sNEPAOrder5610.
1asthisprogramisnotexemptfromNEPAreview.
Third,theAgencyisconductinganEnvironmentalAssessment(EA)inaccordancewithNEPA,CEQimplementingregulations,andFMCSA'sNEPAOrder5610.
1toexaminethepotentialimpactsofthispilotprojectontheenvironment.
ItisimportanttonotethattheEAislimitedtotheenvironmentalimpactsofthisparticularpilotproject.
FMCSAwillannounceavailabilityofthedraftEnvironmentalAssessmentinaseparateFederalRegisternoticeandplaceacopyinthedocketforthisrulemaking.
Finally,EPA,inpartnershipwithMexicoandothergovernmentsonbothsidesoftheborder,hasconductednumerousdieselemissionsreductionprojects.
Theseincludevehicletesting,monitoring,andtracking,dieselretrofitting,accelerateduseofultra-lowsulfurdieselfuel,andanti-idlingprograms.
Inaddition,theStateofCaliforniaregulatesparticulatematteremissionsfromtrucksthroughroadsideemissionstestingconductedthroughouttheState,includinginitsbordercommercialzones.
Californiahasalsoissuedregulationsrequiringtruckengines,includingthoseinMexicantrucks,tohaveproofthattheyweremanufacturedincompliancewiththeEPAemissionsstandardineffectonthedateoftheirmanufactureandwillbeabletoconductinspectionsofthesevehicleswhiletheyareinCalifornia.
Motorcarriersaresubjecttopenaltiesfortheviolationoftheseregulations.
Inaddition,FMCSAconsiderstheseissuesinitsNEPAreviewforthepilotprogram.
Regardingtheavailabilityoflowsulfurfuels,itisourunderstandingthatlowsulfurfuelsareavailableintheborderareasandlargecities,soaccessshouldnotlimitparticipationintheproject.
FMVSSCompliance.
WithregardtoconcernsaboutcompliancewiththeFMVSSs,theAgencyalreadyrequiresMexico-domiciledmotorcarrierstocertifyontheirapplicationsforoperatingauthoritythatCMVsusedintheUnitedStatesmeettheapplicableFMVSSsineffectonthedateofmanufacture.
WhilethereisnorequirementthatthevehiclesdisplayanFMVSScertificationlabel,theAgencybelievestheconcernsaboutdisplayingacertificationlabelhavebeenadequatelyaddressedbytheDepartmentthroughanotice-and-commentrulemakingproceeding.
OnMarch19,2002,FMCSAandNHTSApublishedfournoticesrequestingpubliccommentsonregulationsandpoliciesdirectedatenforcementofthestatutoryprohibitionontheimportationofCMVsthatdonotcomplywiththeapplicableFMVSSs.
Thenoticeswereissuedasfollows:(1)FMCSA'snoticeofproposedrulemaking(NPRM)proposingtorequiremotorcarrierstoensuretheirvehiclesdisplayanFMVSScertificationlabel(67FR12782);(2)NHTSA'sproposedruletoissuearegulationincorporatinga1975interpretationoftheterm''import''(67FR12806);(3)NHTSA'sdraftpolicystatementprovidingthatavehiclemanufacturermay,ifithassufficientbasisfordoingso,retroactivelycertifyamotorvehiclecompliedwithallapplicableFMVSSsineffectatthetimeofmanufactureandaffixalabelattestingthis(67FR12790);and4)NHTSA'sproposedruleconcerningrecordkeepingrequirementsformanufacturersthatretroactivelycertifytheirvehicles(67FR12800).
Afterreviewingthepubliccommentsinresponsetothosenotices,FMCSAandNHTSAwithdrewtheirrespectiveproposalsonAugust26,2005(70FR50269).
NHTSAwithdrewa1975interpretationinwhichtheagencyhadindicatedthattheVehicleSafetyActisapplicabletoforeign-basedmotorcarriersoperatingintheUnitedStates.
Accordingly,itistheDepartment'spositionthattheFMVSSsdonotobligateforeign-domiciledtrucksengagingincross-bordertradetobearacertificationlabel.
AlthoughFMCSAwithdrewitsNPRM,theAgencyindicatedthatitwouldcontinuetoupholdtheoperationalsafetyofCMVsonthenation'shighways,includingthatofMexico-domiciledCMVsoperatingbeyondtheUnitedStates-Mexicobordercommercialzones,throughcontinuedvigorousenforcementoftheFMCSRs,manyofwhichcross-referencespecificFMVSSs.
FMCSAexplainedinitswithdrawalnoticethatMexico-domiciledmotorcarriersarerequiredunder49CFR365.
503(b)(2)and368.
3(b)(2)tocertifyontheapplicationformforoperatingauthoritythatallCMVstheyintendtooperateintheUnitedStateswerebuiltincompliancewiththeFMVSSsineffectatthetimeofmanufacture.
ThesevehicleswillbesubjecttoinspectionbyenforcementpersonnelatU.
S.
-MexicoborderportsofentryandatroadsideinspectionsitesintheUnitedStatestoensuretheircompliancewithallapplicableFMCSRs,includingthosethatcross-referencetheFMVSSs.
Forvehicleslackingacertificationlabel,enforcementofficialscould,asnecessary,refertotheVIN(vehicleidentificationnumber)invariouslocationsonthevehicle.
TheVINwillassistinspectorsinidentifyingthevehiclemodelyearandcountryofmanufacturetodeterminecompliancewiththeFMVSSsbasedonguidanceprovidedbyFMCSA.
BasedoninformationprovidedbytheTruckManufacturersAssociationinaSeptember16,2002,lettertoNHTSAandFMCSA,FMCSAbelievesmodelyear1996andlaterCMVsmanufacturedinMexicomeettheFMVSSs.
TheAgencycontinuestobelievethisinformationisanappropriatebasisforconsideringwhetheravehicleislikelytohavebeenmanufacturedincompliancewiththeFMVSSsbecausemostofthemembersofTMAhavetruckmanufacturingfacilitiesinMexicothatareusedtobuildvehiclesforboththeUnitedStatesandMexicomarkets.
Therefore,FMCSAcontinuestouseitsAugust26,2005guidance,''EnforcementofMexico-DomiciledMotorCarriers'Self-CertificationofCompliancewithMotorVehicleSafetyStandards,''whichprovidestechnicalassistancetoFederalandStateenforcementpersonnelonthisissue.
TheguidanceindicatesthatifFMCSAfinds,duringthePASAorsubsequentinspections,thataMexico-domiciledmotorcarrierhasfalselycertifiedontheVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00113Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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AcopyoftheAgency'sguidanceisincludedinthedocketreferencedatthebeginningofthisnotice.
AlthoughMexico-domiciledvehiclesmaybelesslikelytodisplayFMVSScertificationlabels,FMCSAbelievescontinuedstrongenforcementoftheFMCSRsinreal-worldoperationalsettings,coupledwithexistingregulationsandenhancedenforcementmeasures,willensurethesafeoperationofMexico-domiciledCMVsininterstatecommerce.
AstheAgencystatedinthe2005withdrawalnotice,FMCSRenforcement,andbyextensiontheFMVSSstheycross-reference,isthebedrockofthesecomplianceassuranceactivities.
TheAgencycontinuestobelieveitisnotnecessarytorequireparticipatingmotorcarrierstoensuretheirCMVsdisplayanFMVSScertificationlabel.
RequiringCMVstohaveFMVSScertificationlabelswouldnotensuretheiroperationalsafety.
TheAmericanpublicisbetterprotectedbyenforcingtheFMCSRsthanbyalabelindicatingaCMVwasoriginallybuilttocertainmanufacturingperformancestandards.
See70FRat50287.
ThereappearedtobesomeconfusionaboutwhenthevehicleswouldbecheckedforFMVSSorCMVSScertification.
DuringthePASA,theAgencywillcheckthosevehiclesidentifiedforthelong-haultruckingprogramtodeterminewhetherthevehicledisplaysanFMVSSorCMVSScertificationlabel,orwhetherthevehicleisa1996modelyearornewertruck.
Alternatively,ifthereisnolabel,themotorcarriermaypresentacertificateorotherdocumentationfromthemanufacturerconfirmingthatthevehiclewasbuilttotheappropriatestandard.
FMCSAunderstandsATA'spositionthatthesafetyoftheparticipatingvehiclesshouldbedeterminedbasedoncompliancewiththeFMCSRs,ratherthantheFMVSSs.
FMCSAacknowledgesthatvehiclemanufacturersmustcomplywiththeFMVSSsatthevehiclemanufacturingstateandthatthevehiclesmaynotmeettheFMVSSsaftertheyareplacedinservice.
However,theAgency'sinspectionofparticipatingvehiclesduringthePASA,inspections,andCRwillconfirmcompliancewiththeFMCSRs,asisrequiredby49CFR390.
3.
10.
StatisticalValidityTeamstersassertedthattheAgency'sevaluationplanwasflawedbecausethestatuterequiresevaluationbasedonparticipants,notthenumberofinspections.
AdvocateschallengedtheAgency'snullhypothesisandassertedthattheevaluationplandoesnotconformtoestablishedscientificresearchmethodology.
Advocatesalsorequestedadditionalinformationonhowtherateofviolationspertypeofinspectionperformedwillbecalculated.
Advocatesfurtherrequestedinformationonthespecificstatisticaltestsormethodsofanalysistobeused,andsuggestedthatapeerreviewpanelreviewthestudydesign.
Specifically,Advocatesnotedthat''theelementscontainedinthepilotprogramstatutoryprovisionunder49U.
S.
C.
31315(c)requiremorespecificanddetailedinformationabouttheexperimentaldesignofthePilotProgramthantheagencyhasprovided.
''FMCSAResponse:Section31315(c)(2)(C)oftitle49,UnitedStatesCode,requiresapilotprogramtohaveasufficientnumberofparticipantstoallowforstatisticallyvalidfindings.
GiventhatthemajorityofstatisticalcomparisonsbetweentheMexico-domiciledandU.
S.
-domiciledmotorcarrierswillfocusonroadsideinspectiondata,therelevantquestionbecomeswhetherornotthetotalnumberofinspectionsperformedonthepilotprogramparticipantswillbesufficienttoallowforvalidstatisticalcomparisons.
TheAgencybelievesthatthesamplesizetargetspresentedintheApril13,2011,FederalRegisternoticewillensurethatthenumberofmotorcarrierparticipantswillbesufficientforachievingthisobjective.
Asdiscussedinthatnotice,basedontheresultsoftheapplicationandvettingprocessfrompreviousborderdemonstrationproject,theAgencyestimatesanupperlimitforthetotalnumberofMexico-domiciledmotorcarriersbothcapableandinterestedintakingadvantageoftheNAFTAcrossborderprovisionsat316motorcarriers.
Thus,if46motorcarriersweretoparticipateinthecurrenteffort,thesamplewouldrepresent15percentofthispopulation.
TheAgencyacknowledges,however,thatthestatisticalvalidityofthefindingsalsohingesupontherepresentativenessofthestudydata.
Forexample,ifmostoftheinspectiondatacollectedinthepilotprogramweretocomefromjustafewoftheMexico-domiciledmotorcarriers,thequestionofsamplebiasbecomesalegitimateconcernwhenproducingsurveyestimates.
Tomitigatetheeffectofthispotentialbias,theAgencyplanstocalculatethevariousviolationratesbothforthepopulationofprogramparticipantsasawhole,aswellasforindividualprogramparticipants.
Thus,foreachmetricinquestion,theviolationratesforeachoftheprogramparticipantswillbeaveragedtogiveanalternateviolationratefortheprogramparticipantpopulation.
Thisalternateviolationratecalculationwillhelptominimizetheeffectofinspectiondatabeingpotentiallydominatedbyasmallnumberofmotorcarriers.
ComparisonoftheoriginalpopulationviolationratetothisalternateviolationratecalculationwillgivetheAgencyanindicationofthemagnitudeofthisproblem.
WithregardtotheUnitedStates'obligationsunderNAFTA,FMCSAdoesnothavereasontodenyMexico-domiciledmotorcarriersfromoperatingintheUnitedStatesunlessitcandemonstratethatthemotorcarriersposeasafetythreattotheAmericanpublic.
Thus,thenullhypothesisforthestudybeginswithapresumptionthatMexico-domiciledmotorcarriersareassafeasU.
S.
motorcarriers.
Thedatafromthestudywillbeusedtodeterminewhetherthisassumptionshouldberejectedornot.
Whiletheterm''nullhypothesis''canbeusedforanyhypothesissetupprimarilytoseewhetheritcanberejected,themorecommonstatisticalpracticeistohypothesizethattwomethods,populations,orprocessesarethesameandthendetermineifthereissufficientstatisticalevidencetorejectthisnullhypothesis.
IfonecandemonstratedefinitivelyfromthepilotprogramdatathatMexico-domiciledmotorcarriersareinherentlylesssafethanU.
S.
motorcarriers,thentheAgencywouldbejustifiedinrejectingthisnullhypothesisandrestrictingMexico-domiciledmotorcarrieroperationsintheUnitedStates.
If,ontheotherhand,theAgencycannotestablishasafact,therewouldbenojustificationfordenyingthesemotorcarriersfullaccesstoourroadwaysasguaranteedunderNAFTA.
HadthenullhypothesisforthestudybegunwiththeassumptionthatMexico-domiciledmotorcarrierswereinherentlylesssafethanU.
S.
motorcarriers(asrecommendedbythecommenter),thenallnon-statisticallysignificantresultsfromthestudywouldimplythatMexico-domiciledmotorcarriersarelesssafethanU.
S.
motorcarriers,sincethisinitialassumptionwouldnotberejected.
Incontrast,theapproachtakenbyFMCSAisaprudentone,andissimilartothescientificapproachusedVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00114Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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Insuchstudies,thenullhypothesisassumesthataparticularfood,chemical,oractivityposesnosafetyrisk,ornosafetybenefit.
Inotherwords,thenullhypothesisalwaysassumesthattheitemoractivityinquestionhasabsolutelynoeffect.
Theresultsofthestudyareusedtodeterminewhetheronecanrejectthisnullhypothesis,toidentifyaclearriskorclearbenefitattributabletotheitemoractivity.
Additionally,thenullhypothesisissupportedbythesafetydataonbordercommercialzonemotorcarriersandtheMexico-domiciledmotorcarriersthatparticipatedinthepreviousdemonstrationproject.
WithregardtotheAdvocates'referenceto49U.
S.
C.
31315(c),theAgencybelievesthecommenter'sinterpretationofthissectionisincorrect.
Thesectiondoesnotspeaktothefindingsofaprogramortheconclusionstobedrawnfromthem.
Rather,thesectionsimplystatesthatapilotprogrammustbedesignedtoensurethatpublicsafetyisnotcompromisedwhilethestudyisbeingconducted.
AllofthesafeguardsputinplacebytheAgency,suchasrequiringpilotprogramparticipantstoachieveaspecifiedlevelofsafetyperformanceatvariousstagesofthepilotinordertocontinuewiththeirparticipation(asstipulatedintheoriginalnoticerequestingpubliccomment),speakdirectlytothisissue.
Onaroutinebasis,programparticipantvehicleswillbeinspectedatbordercrossingsandotherroadsideinspectionstations.
Additionally,undersection350,eachparticipatingmotorcarrierwill,within18monthsofbeinggrantedprovisionaloperatingauthority,besubjecttoafullCR.
DuringtheCR,theAgencyplanstoinspectboth''programparticipating''and''nonparticipating''vehiclesofaMexico-domiciledmotorcarrierthatoperateintheUnitedStates.
Concerninghowtheviolationratesobtainedfromthestudywillbeused,theserateswillbedirectlycomparedtosimilarratesfromU.
S.
motorcarriers.
Althoughamotorcarrier'scrashhistoryisagoodpredictoroffuturecrashes,giventherelativelyshorttimeframeofthepilotstudy,itisanticipatedthatparticipatingmotorcarrierswillhaveveryfew,ifany,crasheswhileoperatingintheUnitedStates.
Thus,violationratesbasedoninspectiondatawillbeusedtoassessthesafetyperformanceofeachparticipatingmotorcarrier.
ThissameapproachisusedtoevaluateU.
S.
motorcarriers.
Forexample,sixofthesevenperformancemetricsusedtoassessamotorcarrier'ssafetyriskundertheAgency'sCompliance,Safety,Accountability(CSA)programarebasedondatacollectedfromtheroadside.
InspectiondatausedinthestudywillbebasedonLevel1,2,and3inspections.
TheAgencyanticipatesthatinspectionsperformedonprogramparticipants'truckswillbe,onaverage,asthoroughandrigorousasthoseperformedonU.
S.
motorcarriers.
ForthoseviolationsonlyobservablebyaLevel1inspection,suchasbrakeviolations,onlyLevel1inspectiondatawillbeusedwhenmakingcomparisonsbetweenprogramparticipantsandU.
S.
motorcarriers.
TheAgencyplanstoevaluatethesafetyperformanceoftheMexico-domiciledmotorcarriersparticipatinginthepilotprojectbylookingatavarietyofmetricsandcomparingtheirperformanceonthesemetricswiththeperformanceofU.
S.
motorcarriers.
Allofthesemetricsrepresentproportionsofsometype(proportionofinspectionshavingaparticularviolation,ortheproportionofmotorcarriershavingaparticularviolation),and,assuch,statisticaltestsdesignedforcomparingproportionsfromtwopopulationscanbeused.
Themetricstobeevaluatedarediscussedbelow.
VehicleOutofService(OOS)Rate.
ThevehicleOOSratewillbecalculatedintwodifferentwaysfortheMexico-domiciledmotorcarriers.
First,theratewillbecalculatedinthestandardmanner,summingupallvehicleOOSviolationsfoundfromallvehiclesbelongingtoMexico-domiciledmotorcarrierparticipants,dividedbythetotalnumberofvehicleinspectionsperformedintheUnitedStatesonthesevehiclesduringthestudy.
Inaddition,avehicleOOSratewillbecalculatedforeachparticipatingmotorcarrierbaseduponthedatacollectedduringthedurationofthepilotprogram.
Usingthesecarrier-levelOOSrates,theaveragevalueforthesecarrier-levelvehicleOOSrateswillthenbecomputedbysumminguptheindividualvehicleOOSratesanddividingbythenumberofmotorcarriershavinganOOSrateassignedtothem.
Thislaststatistic,whichistheaveragevalueofeachmotorcarrier'sOOSrate,willbeusedasachecktodetermineifthestandardvehicleOOSratecalculatedfortheMexicantrucksparticipatinginthepilotprogramisdominatedbydatafromasmallnumberofcarriers.
Ifitis,thenmoreemphasiswillbeplacedontheaverageOOSrateintheanalysis.
VehicleViolationRate.
ThevehicleviolationrateissimilartothevehicleOOSrate,exceptthatallviolationswillbeconsidered,ratherthanjustOOSviolations.
DriverOOSRate.
ThedriverOOSratefortheMexico-domicileddriversparticipatinginthepilotprogramwillbecalculatedinthesamemannerasthevehicleOOSrates.
First,theratewillbecalculatedinthestandardmanner,summingupalldriverOOSviolationsfoundfromallMexico-domicileddriversparticipatinginthepilot,dividedbythetotalnumberofdriverinspectionsperformedonthesedriversduringthestudy.
Inaddition,thedriverOOSratewillbecalculatedforeachMexico-domiciledmotorcarrierinthepilot,andthesecarrier-leveldriverOOSrateswillnextbeaveragedoverallparticipatingmotorcarriers.
DriverViolationRate.
ThedriverviolationrateissimilartothedriverOOSrate,exceptthatallviolationswillbeconsidered,ratherthanjustOOSviolations.
SafetyAuditPassRate.
ThepercentageofmotorcarriersinthepilotprogramthatpassthePASAwillbecalculatedandcomparedtothepercentageofU.
S.
-domiciledmotorcarriersthatpassthenewentrantsafetyaudit.
TheAgencyrecognizesthattherearedifferencesinthesetwotypesofreviews.
However,theybothevaluatesuccessatmeetingtheestablishedsafetystandards.
CrashRate.
Becausecrashesarerelativelyrareevents,FMCSAwilllikelyhaveinsufficientcrashdatatoevaluatesafetyperformanceofMexico-domiciledmotorcarriersinthisarea.
However,ifsufficientdataareavailabletoproducemeaningfulstatisticalresults,crashratecomparisonswillbeproduced.
Itisanticipatedthatmotorcarriersparticipatinginthepilotprogramwillbeinvolvedinawidevarietyoftruckingoperations,andmany,ifnotmost,ofthemwillnotbeoperatingtheirvehiclesfull-timeintheUnitedStates.
Forthisreason,crashratesforcarriersparticipatinginthepilotprogramwillbecalculatedintermsofcrashespermillionmiles,andnotcrashesperpowerunit.
Allcrashesthathaveaseverityleveloftowawayorhigherwillbeincludedinthecrashcount.
CrashrateswillbecalculatedbasedoncrashesoccurringwithinboththeUnitedStatesandMexico,andonmileageaccumulatedwithinbothcountries.
SpecificViolationRates.
InadditiontooverallvehicleanddriverviolationandOOSrates,violationratesforstudyparticipantswillbecalculatedforspecifictypesofviolations,includingtrafficenforcement,driverfitness,andhoursofservice.
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ThepurposeofthisistoseewhethertherearespecifictypesofviolationsthataremorecommonamongtheMexico-domiciledcarriersthantheirU.
S.
counterparts.
TrafficEnforcement.
Ofparticularinterestaretrafficenforcementviolationspertainingtolocallaws,including,butnotlimitedto,speeding,recklessdriving,ordrivingtoofastforconditions.
Becausetrafficenforcementpertainingtodrivingonlyoccurswhenaviolationissuspected,theexposuremeasurefortheseviolationrateswillnotbetotalinspections,but,rather,thetotalnumbermotorcarriertrucksparticipatingintheprogram,proratedbythenumberofmonthseachmotorcarrierisinthepilotprogram.
ThistrafficenforcementviolationratewillbecomparedtoasimilarrateforUS.
-domiciledmotorcarriers,basedon36monthsofdata.
DriverFitness.
Adriverfitnessviolationratewillbecalculatedforthemotorcarriersparticipatinginthepilotprogrambysumming-upallofthedriverfitness-relatedviolationsdetectedduringtheprogramforparticipatingmotorcarriers,dividedbytheirtotalnumberofinspections.
ThisstatisticwillbecomparedtothissamerateforU.
S.
-domiciledmotorcarriers.
Hours-of-Service.
Anhours-of-serviceviolationratewillbecalculatedforthemotorcarriersparticipatinginthepilotprogrambysumming-upallofthehours-of-serviceviolationsdetectedduringtheprogramforparticipatingmotorcarriers,dividedbytheirtotalnumberofinspections.
ThisstatisticwillbecomparedtothissamerateforU.
S.
-domiciledmotorcarriers.
TheAgencywillconductapeerreviewtoassessthestudydesign.
Uponitsconclusion,wewillsubmittheresultsofthepeerreviewtothedocketforthisnotice.
Ifthepeerreviewresultsinrecommendedchanges,theAgencywillpublishanoticeintheFederalRegisterexplainingthechange.
RegardingtheassertionthatMexico-domicileddriversarenotcitedforviolationsintheUnitedStates,FMCSAdoesnothaveanyinformationavailablethatwouldcorroboratethisstatement.
11.
MinimumLevelsofFinancialResponsibilityTheCoalitionrequestedthattheminimuminsurancerequirementsforallCMVs,domesticandforeign,beincreasedbeforeconductingthepilotprogram.
TheAmericanAssociationforJusticeinterpretedtheAgency'sregulationsasallowingparticipatingmotorcarrierstoselfinsureandsuggestedthatallMexicanmotorcarrierscarryinsuranceatalltimes.
FMCSAResponse:FMCSAdoesnotagreewiththeCoalition'ssuggestionthatmotorcarrierstransportinggeneralfreightshouldberequiredtohaveagreaterleveloffinancialresponsibility.
Mexico-domiciledmotorcarriersmustestablishfinancialresponsibility,asrequiredby49CFRpart387,throughaninsurancecarrierlicensedinaStateintheUnitedStates.
Basedonthetermsprovidedintherequiredendorsement,FMCSAFormMCS–90,ifthereisafinaljudgmentagainstthemotorcarrierforlossanddamagesassociatedwithacrashintheUnitedStates,theinsurermustpaytheclaim.
ThefinancialresponsibilityclaimswouldinvolvelegalproceedingsintheUnitedStatesandaninsurerbasedhere.
ThereisnoreasonthataMexico-domiciledmotorcarrier,insuredbyaU.
S.
-basedcompany,shouldberequiredtohaveagreaterlevelofinsurancecoveragethanaU.
S.
-basedmotorcarrier.
Increasingtheminimumlevelsoffinancialresponsibilityforallmotorcarriersisbeyondthescopeofthisnoticeandwouldrequirearulemaking.
Inaccordancewithsection350(a)(1)(B)(iv),FMCSAmustverifyparticipatingmotorcarriers'proofofinsurancethroughaU.
S.
,State-licensedinsurer.
Asaresult,participatingmotorcarriersmaynotself-insure.
12.
VehicleInspectionandFleetSafetyTeamstersexpressedconcernthatonlythesegmentofthemotorcarrier'sfleetparticipatinginlong-haultruckingwouldbeinspected.
Theyalsoquestionedhowinspectionsat''aratecomparabletootherMexico-domiciledmotorcarriers''willbeeffective.
Additionally,severalcommentersquestionedwhatlevelofinspectionswouldbeconductedduringeachphaseofthepilotprogram.
FMCSAResponse:Asnotedpreviously,whileonlyparticipatingvehicleswillbeinspectedduringthePASA,themaintenanceofallofthemotorcarrier'savailablevehiclesthatoperateintheUnitedStateswillbesubjecttoinspectionduringtheCR.
Additionally,motorcarrierscurrentlyoperatingwithinthebordercommercialzonearesubjecttoinspectionsonaroutinebasis.
TheinspectionrateofbordercommercialzonemotorcarriersissignificantlyhigherthantheaverageU.
S.
motorcarrier.
Asaresult,atallstagesoftheprogram,theparticipatingmotorcarriers'driversandvehiclesareexpectedtobeinspectedmorefrequentlythanthoseoftheaverageU.
S.
motorcarrier.
InFY2010,FMCSAanditsStatepartnersconducted2,614,052commercialvehicleinspectionsonU.
S.
-basedmotorcarrierswith4,125,778CMVs.
FMCSAanditsStatepartnersconducted256,151CMVinspectionsonMexico-domiciledmotorcarrierswithinthebordercommercialzoneswith29,566CMVs.
Thus,theinspectionsratesforU.
S.
-basedmotorcarriersandMexico-domiciledmotorcarriersare0.
636336%and8.
6337%respectively.
Ataninspectionratethatis13timesgreaterforMexico-domiciledmotorcarriers,FMCSAisconfidentthattheinspectionsperformedonmotorcarriersduringStages2and3shouldbesufficienttoensurecontinuedsafeoperations.
Additionally,Mexico-domiciledmotorcarriersthatareinStages2and3ofthepilotprogramarerequiredtobeinspectedatleastonceevery90daysinordertomaintainavalidCVSAsafetydecal.
FMCSAwilluseallavailableinspectionlevelsaswellaslicense/insurancecheckinspectionsonthevehiclesduringtheprogram.
ThelevelofinspectionchosenwilldependonanumberoffactorsincludingthepresenceofaCVSAdecal,previoushistory,andotherobservationsbytheinspector.
Ataminimum,aLevelIinspectionwillbeconductedifaCVSAdecalhasexpiredorwillsoonexpire.
ItmustalsobenotedthatparticipatingvehicleswillberequiredtomaintainacurrentCVSAdecalandmustbeinspectedevery90days.
ThisisnotarequirementforU.
S.
motorcarriersorbordercommercialzonemotorcarriers.
13.
TransparencyAdvocatesrequestedthatalloftheAgency'sagreementswithMexicobesubjecttonoticeandcommentandthateachstepinthepilotprogrambesubjectaswell.
AdvocatesandATAadvisedthatthemonitoringgroupshouldbeindependentfromtheAgency'sMotorCarrierSafetyAdvisoryCommittee(MCSAC),andAdvocatesfurtherindicatedthatundertheFederalAdvisoryCommitteeAct(FACA),theuseofasubcommitteeofaFederaladvisorycommitteetoprovideconsensusadviceandrecommendationstoaFederalofficialisprohibited.
AdvocatesquestionedwhethertheMCSACparticipantscomprisedpersonswithbackgroundsinbasicresearchandstatisticalanalysiswhocanofferadviceonhowdecisionsmadebythemonitoringgroupwillaffecttheresearchdesign.
AdvocatesrequestedthatFMCSAprovideallreportstotheVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00116Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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TheCoalitionrequestedthatmonthlyorquarterlyreportsofdatacollectionbemadeavailabletothepublic.
FMCSAResponse:TheFMCSAhasaddedcopiesofthe1991MOUregardingCDLreciprocityandthe1998MOUregardingdrugandalcoholtestingprotocolstothedocketforthisnotice.
However,thesedocumentsareforinformationalpurposesonlyandarenotthesubjectofcommentsastheywerenegotiatedbytheGovernmentsoftheUnitedStatesandMexicomorethanadecadeago.
TheMOUbetweenDOTandSCTthathasbeenundernegotiationsinceJanuary2011,isnotsubjecttopubliccomment,andthetermsofthatMOUhavebeenexplainedintheApril13,2011,FederalRegisternotice.
ThetermsforU.
S.
-domiciledmotorcarrierswishingtotravelsouthcanbefoundinthedraftrulesproposedbySCT,whichhavebeenplacedinthedocket.
TheFMCSAprovidedtheopportunityfornoticeandcommentonallstepsofthispilotprogramthroughthenoticepublishedonApril13,2011,andwillnotbeprovidinganothernotice.
Regardingthemonitoringgroups,FMCSAclarifiesthattherewillbeagovernmentmonitoringgrouptodiscussbi-lateraloperationalissues.
Inaddition,therewillbeanindependentmonitoringgroup.
TheFMCSAagreesthatthegroupmustbeindependentfromtheAgency.
Asaresult,FMCSAcontinuestobelievethatthemostefficientandeffectiveprocessistoestablishasubcommitteeoftheMCSAC.
TheMCSAChasprovenitselftobeindependentoftheAgency.
We,however,wanttoclarifythatthesubcommitteewouldbeabletoinviteinputfromindividualsoutsidetheMCSACitselfandwouldreportoutthroughtheCommittee.
Asaresult,consistentwithFACArequirements,onlytheMCSACwilltransmitrecommendationsandadvicetotheFMCSAAdministrator.
FMCSAwillmakereportsofthemonitoringgroupavailabletotheappropriatecongressionalcommitteesandthepublicinatimelymanner.
TheFMCSAwillmaintainacomprehensiveWebsitededicatedtothispilotprogramtokeepthepublicinformedabouthowtheprogramprogresses.
Inadditiontothespecificinformationmentionedwithinthisnotice,FMCSAwillpublishthenameandDOTNumberofeachparticipatingmotorcarrier,theVehicleIdentificationNumbers(VIN)ofallvehiclesapprovedforlong-haultransportation,detailsonthedriver/vehicleinspectionsthemotorcarrierhasreceived,anddetailsonanycrashesinvolvingthemotorcarrier.
FMCSAwillalsopublishaggregatedataregardingthenumberoftripstakenbyparticipatingmotorcarriersandthedestinationsofthosetrips.
14.
ResourcesSenatorJohnD.
RockefellerexpressedaconcernabouttheadequacyofFMCSA,Statelawenforcement,andImmigrationandCustomsEnforcement(ICE)resourcestosupporttheprogram.
RepresentativeHunterindicatedhebelievedtheAgencyhadgapsinitsabilitytoproperlymanagethepreviousprogram.
OOIDAindicatedthatbasedoncontactsattheInternationalAssociationofChiefsofPolice,moretrainingoncabotageisneeded.
TheTexasDepartmentofMotorVehiclesrecommendsthatFMCSAprovidefinancialassistancetotheBorderStatestooff-settheBorderStates'administrativeandenforcementexpensesrelatedtothepilotprogram.
FMCSAResponse:TheFMCSAnotesthatthenumberofMexico-domiciledmotorcarriersandvehiclesthatwillparticipateinthepilotprogramisextremelysmallcomparedtothepopulationofmotorcarriersandvehiclescurrentlyoperatingwithinthebordercommercialzones.
Mostofthemotorcarriersthatwouldparticipateinthepilotprogramalreadyhaveauthoritytooperateinthebordercommercialzones,sotheirparticipationintheprogramwouldnotresultinasignificantincreaseinthepopulationofMexico-domiciledmotorcarriersoperatingintheUnitedStates.
Further,astoconcernsregardingpossiblestrainsonborderinspectionfacilitycapacity,itshouldbenotedthatFMCSAhasnoreasontobelievethenumberofMexicantruckscrossingtheborderduringthepilotprogramwillincreasesignificantlybecausethecargocarriedbythelong-haultruckswouldhavecrossedtheborderinanyeventviashort-haul,bordercommercialzonetrucks.
TheFMCSAanditsStatepartnershavesufficientstaff,facilities,equipment,andproceduresinplacetomeettherequirementsofthispilotprogram.
ThisconclusionisbasedontheAgency'sexperienceprovidingsafetyoversightforMexico-domiciledmotorcarrierscurrentlyauthorizedtooperatewithinthebordercommercialzonesandonitsregularliaisonwithitsStateenforcementpartnerswithwhomtheAgencyhasworkedforyearsinanticipationoftheopeningofthebordertolong-haulMexico-domiciledmotorcarriers.
Infact,duringthepreviousprogram,FMCSAwasabletoconfirmthatover99percentoftheparticipatingvehiclesreceivedaninspectionattheborder.
Further,FMCSAcanfindnoevidencethattheremaininglessthanonepercentofthevehicleswerenotinspectedastheycrossedtheborder,andneithertheOIG,northeIndependentPanel,noranyotherentityhasidentifiedanyvehiclesthatcrossedwithoutaninspection.
FMCSAcurrentlyemploys260Federalpersonneldedicatedtoborderenforcementactivities.
InresponsetotheOOIDA'sconcernsabouttheburdenontheStatesforprovidingsafetyoversightforMexico-domiciledmotorcarriersandtheTexasDepartmentofMotorVehiclescommentregardingmakingfundingavailabletoBorderStates,FMCSAisauthorizedunder49U.
S.
C.
31107toprovideborderenforcementgrantsforcarryingoutCMVsafetyprogramsandrelatedenforcementactivitiesandprojectsandhas$32millionavailableinFY2011forthispurpose.
TheAgency'sStatepartnersalongtheborderemploy456Stateofficialsforthispurpose.
Therefore,theCongresshasprovidedfundingforenforcementresourcesdedicatedexclusivelytoensuringthesafeoperationofforeign-domiciledmotorcarrieroperations.
TheFMCSAworkswiththeStatestoensurethatmotorcarriersafetyenforcementpersonnelreceiveextensivetraining.
From2008todate,over5,800StatemotorcarriersafetyinspectorshavereceivedNorthAmericanStandard(NAS)inspectionprocedurestraining.
TheNAStrainingcourseisdesignedtoprovideStatemotorcarriersafetyenforcementpersonnelwiththebasicknowledge,skills,practices,andproceduresnecessaryforperforminginspectionsundertheMotorCarrierSafetyAssistanceProgram(MCSAP).
Additionally,throughtheAgency'spartnershipwiththeInternationalAssociationofChiefsofPolice(IACP),fourForeignCMVAwarenessTrainingsessionshavebeenconductedonarecurringbasisincludingasessionthatcoverscabotagelaws.
Approximately215officerswerecertifiedtotrainlawenforcementofficersthroughouttheUnitedStatesusingthiscoursewhichincludescabotageinformation.
Thetrainingtheseofficerswillprovidetootherlawenforcementofficialswillensurepatrolofficersareinformedaboutpotentialsafetyandenforcementissuesinvolvingforeign-basedCMVsanddriversoperatingbeyondthebordercommercialzones.
Therefore,notonlyhasFMCSAprovidedfundingresourcestosupporttheStates'roleinprovidingSafetyoversightforMexico-domiciledmotorVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00117Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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Presently,1,755lawenforcementofficershavereceivedsuchtraining.
Finally,duringtheprogram,FMCSAwillmonitorfordomesticpoint-to-pointtransportationviolationsusingtheinformationobtainedfromtheGPSfeatureoftheelectronicmonitoringdevicesinstalledonthevehiclesandduringCRs.
15.
ImpactonTruckDrivers,SmallFleetsandBusinessesOver1,000commentersfeltthatthispilotprogramwouldhaveanegativeeconomicimpactontheUnitedStatesatatimewhenunemploymentwashigh.
FMCSAResponse:TheFMCSAdoesnotbelievethepilotprogramwillhaveasignificantadverseimpactonU.
S.
motorcarriersordrivers.
Asaninitialmatter,however,itisimportanttonotethatFMCSAlackstheauthoritytoalterthetermsunderwhichMexico-domiciledmotorcarriersoperateintheUnitedStatesbasedonthepossibleeconomicimpactofthosemotorcarriersonU.
S.
motorcarriers.
FMCSA'sresponsibility,pursuanttotheNovember2002presidentialorder,istoimplementNAFTA'smotorcarrierprovisionsinamannerconsistentwiththemotorcarriersafetylaws.
WhilethewagesforaMexico-domicileddrivermaydifferfromthoseofaU.
S.
-domicileddriver,wagesrepresentonlyonefactorinthecostofatruckingoperation.
ThecostsforsafetymanagementcontrolstoachievefullcompliancewithU.
S.
safetyrequirements,equipmentmaintenance,fuel,taxesandinsurancecostsmustalsobeconsidered.
Therefore,driverwagesaloneshouldnotbeconsideredthedeterminingfactorforaneconomicadvantage.
Also,Mexico-domiciledmotorcarrierscannotcompeteagainstU.
S.
-domiciledmotorcarriersforpoint-to-pointdeliveriesofdomesticfreightwithintheUnitedStates.
Section365.
501(b)oftitle49,CodeofFederalRegulations,providesthat''aMexico-domiciledmotorcarriermaynotprovidepoint-to-pointtransportationservices,includingexpressdeliveryservices,withintheUnitedStatesforgoodsotherthaninternationalcargo.
''FMCSAnotesthatengagingindomesticpoint-to-pointtransportationintheU.
S.
isoperatingbeyondthescopeofaMexico-domiciledmotorcarrier'sauthority,andFMCSAanditsStatepartnersareactivelyengagedinenforcingthisregulation.
Vehiclescaughtinthispracticewillbeplacedout-of-service,participatingmotorcarriersmaybesubjecttocivilpenaltiesofupto$11,000andmorecomprehensivereviewofoperationsbyFMCSA,andtheycouldberemovedfromthepilotprogram.
16.
ConcernsAboutFurtheringIllegalActivityNumerouscommentersnotedtheexistenceofdrugcartelsinMexicoandexpressedconcernthatthelong-haulprogramwouldincreasedrugtrafficking.
FMCSAResponse:TheFMCSAdisagreeswiththecommentersonthisissue.
FMCSAisnotawareofanyinformationthatwouldsuggestthepilotprogramwillincreasetheextenttowhichillegalactivitiesoccur.
Mexico-domiciledmotorcarriersarealreadyallowedtooperateinbordercommercialzones.
ManyofthemotorcarriersthatmayapplyforauthoritytooperatebeyondthebordercommercialzonesandparticipateinthepilotprogramarealreadyconductingCMVoperationsintheU.
S.
,albeitlimitedtothebordercommercialzones.
Moreover,asnotedabove,FMCSAdoesnotanticipatethatthepilotprogramwillresultinasubstantialincreaseinthenumberofMexicantruckscrossingtheborder.
Itfollowsthatthepilotprogramwillnotincreaseinstancesofcross-borderdrugsmugglinginanysignificantway.
Finally,astheU.
S.
ImmigrationandCustomsEnforcement'sinspectionsoflong-haultruckswillnotchangeasaresultofthispilot,wedonotbelievethisprogramintroducesanynewrisks.
FMCSA'sIntentToProceedWithPilotProgramInconsiderationoftheabove,FMCSAbelievesitisappropriatetocommencethepilotprogramaftertheDepartment'sInspectorGeneralcompleteshisreporttoCongress,asrequiredbysection6901(b)(1)ofthe2007AppropriationsAct,andtheAgencycompletesanyfollow-upactionsneededtoaddressanyissuesthatmayberaisedinthereport.
FMCSAreiteratesthatbeforeanapplicantMexico-domiciledmotorcarriermayreceiveoperatingauthority,itmustsubmitacompleteandaccurateapplication;completetheDHSsecurityreviewprocess;successfullycompletethePASA;andfilewithFMCSAevidenceofadequateinsurancefromaU.
S.
company.
Inaddition,asstatedabove,FMCSAwillcompletereviewsofMexicanlicensingfacilitiestoensurecompliancewiththe1991MOUbeforegrantingauthority.
FMCSAdoesnotanticipatethatanyMexico-domiciledmotorcarrierseekingparticipationinthepilotprogramwillreceiveitsprovisionaloperatingauthoritybeforethefirstweeksofAugust2011.
Issuedon:June29,2011.
WilliamBronrott,DeputyAdministrator.
[FRDoc.
2011–16886Filed7–7–11;8:45am]BILLINGCODE4910–EX–PDEPARTMENTOFTRANSPORTATIONFederalMotorCarrierSafetyAdministration[DocketNo.
FMCSA–2011–0145]QualificationofDrivers;ExemptionApplications;DiabetesMellitusAGENCY:FederalMotorCarrierSafetyAdministration(FMCSA).
ACTION:Noticeofapplicationsforexemptionfromthediabetesmellitusstandard;requestforcomments.
SUMMARY:FMCSAannouncesreceiptofapplicationsfrom22individualsforexemptionfromtheprohibitionagainstpersonswithinsulin-treateddiabetesmellitus(ITDM)operatingcommercialmotorvehicles(CMVs)ininterstatecommerce.
Ifgranted,theexemptionswouldenabletheseindividualswithITDMtooperateCMVsininterstatecommerce.
DATES:CommentsmustbereceivedonorbeforeAugust8,2011.
ADDRESSES:YoumaysubmitcommentsbearingtheFederalDocketManagementSystem(FDMS)DocketNo.
FMCSA–2011–0145usinganyofthefollowingmethods:FederaleRulemakingPortal:Gotohttp://www.
regulations.
gov.
Followtheon-lineinstructionsforsubmittingcomments.
Mail:DocketManagementFacility;U.
S.
DepartmentofTransportation,1200NewJerseyAvenue,SE.
,WestBuildingGroundFloor,RoomW12–140,Washington,DC20590–0001.
HandDelivery:WestBuildingGroundFloor,RoomW12–140,1200NewJerseyAvenue,SE.
,Washington,DC,between9a.
m.
and5p.
m.
,MondaythroughFriday,exceptFederalHolidays.
Fax:1–202–493–2251.
Instructions:EachsubmissionmustincludetheAgencynameandthedocketnumbersforthisnotice.
Notethatallcommentsreceivedwillbepostedwithoutchangetohttp://www.
regulations.
gov,includinganypersonalinformationprovided.
PleaseseethePrivacyActheadingbelowforfurtherinformation.
Docket:Foraccesstothedockettoreadbackgrounddocumentsorcomments,gotohttp://www.
regulations.
govatanytimeorVerDateMar201017:52Jul07,2011Jkt223001PO00000Frm00118Fmt4703Sfmt4703E:\FR\FM\08JYN1.
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