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Inspection, Repair, and Maintenance; Driver-Vehicle Inspection Report (DVIR)


American Government

Inspection, Repair, and Maintenance; Driver-Vehicle Inspection Report (DVIR)

Anthony R. Foxx
Federal Motor Carrier Safety Administration
December 18, 2014


[Federal Register Volume 79, Number 243 (Thursday, December 18, 2014)]
[Rules and Regulations]
[Pages 75437-75449]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29331]


=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 392 and 396

[Docket No. FMCSA-2012-0336]
RIN 2126-AB46


Inspection, Repair, and Maintenance; Driver-Vehicle Inspection 
Report (DVIR)

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: FMCSA rescinds the requirement that commercial motor vehicle 
(CMV) drivers operating in interstate commerce, except drivers of 
passenger-carrying CMVs, submit, and motor carriers retain, DVIRs when 
the driver has neither found nor been made aware of any vehicle defects 
or deficiencies. This rule also harmonizes the pre- and post-trip 
inspection lists. It responds in part to the President's January 2011 
Regulatory Review and Reform initiative, removing a significant 
information collection burden without adversely impacting safety. The 
Agency also makes a technical change to Sec.  396.11 to eliminate 
redundant language.

DATES: This final rule is effective December 18, 2014.
    Petitions for Reconsideration of this final rule must be submitted 
to FMCSA Administrator no later than January 20, 2015.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call or email Mr. Mike Huntley, Vehicle and Roadside Operations 
Division, Office of Bus and Truck Standards and Operations, Federal 
Motor Carrier Safety Administration, telephone: 202-366-4325.

SUPPLEMENTARY INFORMATION:

Executive Summary of the Benefits and Costs

    This rule affects all motor carriers currently subject to 49 CFR 
396.11, both private and for-hire, with the exception of operators of 
passenger-carrying CMVs. Current safety regulations require drivers 
employed by motor carriers to prepare a written report at the 
completion of each day's work, on each vehicle operated, that lists any 
defect or deficiency discovered by or reported to the driver which 
would affect the safety of operation of the vehicle or result in its 
mechanical breakdown. This report must be submitted to the employing

[[Page 75438]]

motor carrier so that repairs can be made. Regulations now require 
drivers to file the DVIR at the end of each tour of duty, even if there 
are no vehicle defects to report. The rule eliminates the need to file 
a no-defect DVIR, except for operations involving passenger-carrying 
CMVs.
    The no-defect DVIR imposes a substantial time and paperwork burden 
on the trucking industry, with no discernible safety benefit. The 
Agency estimates that non-passenger-carrying CMV drivers spend 
approximately 46.7 million hours each year completing no-defect DVIRs, 
time which could be dedicated to other purposes. FMCSA estimates that 
the monetized value of this time is currently $1.7 billion per year, 
which is the estimated benefit that would result from the adoption of 
the rule.

                 Table 1--Summary of the Monetized Benefits, Costs and Net Benefits of the Rule
----------------------------------------------------------------------------------------------------------------
                                                                               10 Years,  7       10 Years,  3
                                                               Annual       percent  discount  percent  discount
                                                                                   rate               rate
----------------------------------------------------------------------------------------------------------------
Monetized Benefits.....................................           \1\ $1.7          \1\ $12.8          \1\ $14.9
Costs..................................................                0                  0                  0
                                                        --------------------------------------------------------
    Net Benefits.......................................            \1\ 1.7           \1\ 12.8           \1\ 14.9
----------------------------------------------------------------------------------------------------------------
\1\ Billion.

Background

    Presidential Executive Order (E.O.) 13563, ``Improving Regulation 
and Regulatory Review'' (issued January 18, 2011, and published January 
21 at 76 FR 3821), prompted DOT to publish a notice in the Federal 
Register (76 FR 8940, February 16, 2011). This notice requested 
comments on a plan for reviewing existing rules, as well as 
identification of existing rules that DOT should review because they 
may be outmoded, ineffective, insufficient, or excessively burdensome. 
DOT placed all retrospective regulatory review comments, including a 
transcript of a March 14, 2011, public meeting, in docket DOT-OST-2011-
0025. DOT received comments from 102 members of the public, with many 
providing multiple suggestions. FMCSA received one comment from the 
American Trucking Associations, Inc. (ATA) concerning what it 
considered duplicative driver vehicle inspection requirements in 49 CFR 
parts 392 and 396. Although FMCSA agrees that there is some 
duplication, the Agency did not believe that it resulted in unnecessary 
actions or an information collection burden. However, FMCSA did 
discover a related information collection burden that it considers 
unnecessary and removes in this final rule.
    It has always been the responsibility of a CMV driver to report 
vehicle defects. In 1939, the Interstate Commerce Commission (ICC) 
issued regulations requiring every driver to submit a written report on 
the condition of the vehicle at the end of each day's work or tour of 
duty. At a minimum, the report had to include information about any 
vehicle defect or deficiency the driver discovered that would likely 
affect the safety of operation of that vehicle (4 FR 2294 at 2305, June 
7, 1939). The ICC recommended, but did not require, that motor carriers 
use a `Driver's Trip Report,' and it provided a sample report format in 
its 1939 notice. The sample report format included the driver's name, 
vehicle number, date, a list of 20 items for inspection, and a space 
for the driver and mechanic to note defects. This report is now called 
a DVIR, but the current rule does not include a sample report form. The 
requirements to prepare, submit, and retain a no-defect DVIR have been 
in the safety regulations since 1952 (17 FR 4422, 4452, May 15, 1952). 
In a separate report (54 M.C.C. 337, at 356, April 14, 1952) the ICC 
explained that it was revising its rule to improve motor carriers' 
inspection and maintenance procedures and recordkeeping. The ICC noted 
that the most substantial recordkeeping change proposed and adopted was 
for the driver to complete the vehicle condition report or trip ticket 
at the end of the day's work or tour of duty whether or not any defect 
or deficiency in the equipment is discovered, ``. . . in order to 
provide a continuous record of vehicle condition and to insure that the 
reports, particularly those involving defects, will be made out 
currently and maintained on a current basis.''
    On December 17, 2008, FMCSA published a final rule to implement 
Sec.  4118 of the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users (SAFETEA-LU) [Pub. L. 109-59, 119 Stat. 
1144, 1729, Aug. 10, 2005], dealing with the safety of chassis used to 
transport intermodal containers (73 FR 76794). Among other things, 
Sec.  4118 called for the Secretary to mandate ``a process by which a 
driver or motor carrier transporting intermodal equipment [IME] is 
required to report to the intermodal equipment provider [IEP] or the 
provider's designated agent any actual damage or defect in the 
intermodal equipment of which the driver or motor carrier is aware at 
the time the intermodal equipment is returned to the intermodal 
equipment provider or the provider's designated agent'' (49 U.S.C. 
31151(a)(3)(L)). FMCSA's 2008 rule included a new code section--49 CFR 
390.42--which prescribed the responsibilities of drivers and motor 
carriers when operating IME. Section 390.42(b) required the driver or 
motor carrier to report any damage to or deficiencies in certain IME 
parts and accessories at the time the equipment is returned to the IEP.
    Importantly, FMCSA did not propose any changes to Sec.  396.11(a), 
``Report content,'' which requires--both for IME and non-IME--that ``If 
no defect or deficiency is discovered by or reported to the driver, the 
report shall so indicate.''
    On March 31, 2010, the Ocean Carrier Equipment Management 
Association (OCEMA) and Institute of International Container Lessors 
(IICL) jointly filed a petition for rulemaking to rescind the part of 
Sec.  390.42(b) that required drivers to file no-defect DVIRs on IME 
they return to IEPs. OCEMA and IICL requested that FMCSA delete the 
sentence ``if no damage, defects, or deficiencies are discovered by the 
driver, the report shall so indicate.''
    The petitioners presented four arguments supporting their request:
    1. Section 4118 of SAFETEA-LU requires DVIRs only for known damage 
or defects. Congress could have added a requirement to file no-defect 
DVIRs but did not do so.
    2. There is significant risk that a large volume of no-defect DVIRs 
could overwhelm the small proportion (4 percent) of DVIRs that report 
damage or defects.

[[Page 75439]]

    3. Data transmission, processing, and storage requirements for no-
defect DVIRs could add significant unnecessary costs to intermodal 
operations without providing offsetting benefits.
    4. Submission of no-defect DVIRs contributes to driver productivity 
losses in the form of congestion and delay at intermodal facilities.
    On June 12, 2012 (77 FR 34846), the Agency published a final rule 
eliminating the requirement for drivers operating IME to submit--and 
IEPs to retain--DVIRs when the driver has neither found nor been made 
aware of any defects in the IME. The Agency now extends this relief 
from the paperwork requirement to all interstate motor carriers subject 
to Part 396 of the Federal Motor Carrier Safety Regulations (FMCSRs), 
except operators of passenger-carrying CMVs.
    FMCSA emphasizes that the Agency is not foregoing the fundamental 
requirements of Part 393, Parts and Accessories Necessary for Safe 
Operation. Nor is it making any changes to any other element of the 
inspection, repair, and maintenance requirements of Part 396. Drivers 
will still be required to perform pre-trip evaluations of equipment 
condition, and complete DVIRs if any defects or deficiencies are 
discovered or reported during the day's operations. Motor carriers will 
still be required to have systematic inspection, repair, and 
maintenance programs (including preventative maintenance) and maintain 
records to prove measures are being taken to reduce to the extent 
practicable, the risk of mechanical problems happening while the 
vehicle is in operation. In addition, motor carriers will still be 
required to review driver vehicle inspections that list defects or 
deficiencies and take appropriate action before the vehicle is 
dispatched again. The Agency will retain the requirement for carriers 
to complete periodic or annual inspections, and maintain documentation 
for the individuals who perform periodic inspections and individuals 
responsible for performing brake-related inspection, repair, and 
maintenance tasks. Furthermore, these CMVs will continue to be subject 
to roadside inspections. In short, the existing regulations place 
shared responsibility on drivers and motor carriers to ensure that CMVs 
used in interstate commerce are in safe and proper operating condition. 
This final rule does not change a driver's obligation to report on the 
condition of the CMVs and to report to the motor carrier any defects or 
deficiencies that could affect the safety of its operation.

Legal Basis for the Rulemaking

    This rule is based on the authority of the Motor Carrier Act of 
1935 (1935 Act) [49 U.S.C. 31502(b)] and the Motor Carrier Safety Act 
of 1984 (1984 Act) [49 U.S.C. 31136(a)], both of which are broadly 
discretionary.
    The 1935 Act provides that the Secretary of Transportation 
(Secretary) may prescribe requirements for:
     Qualifications and maximum hours of service of employees 
of, and safety of operation and equipment of, a motor carrier (section 
31502(b)(1)), and
     qualifications and maximum hours of service of employees 
of, and standards of equipment of, a motor private carrier, when needed 
to promote safety of operation (section 31502(b)(2)).

This rulemaking is based on the Secretary's authority under both 
section 31502(b)(1) and (2).
    The 1984 Act authorizes the Secretary to regulate drivers, motor 
carriers, and vehicle equipment. Section 31136(a) requires the 
Secretary to publish regulations on CMV safety. Specifically, the Act 
requires the Secretary to prescribe minimum safety standards to ensure 
that: (1) CMVs are maintained, equipped, loaded, and operated safely 
(49 U.S.C. 31136(a)(1)); (2) the responsibilities imposed on operators 
of CMVs do not impair their ability to operate the vehicles safely (49 
U.S.C. 31136(a)(2)); (3) the physical condition of CMV operators is 
adequate to enable them to operate the vehicles safely (49 U.S.C. 
31136(a)(3)); and (4) the operation of CMVs does not have a deleterious 
effect on the physical condition of the operators (49 U.S.C. 
31136(a)(4)). Section 32911 of the Moving Ahead for Progress in the 
21st Century Act (MAP-21) [Pub. L. 112-141, 126 Stat. 405, 818, July 6, 
2012] added a fifth requirement, i.e., to ensure that ``(5) an operator 
of a commercial motor vehicle is not coerced by a motor carrier, 
shipper, receiver, or transportation intermediary to operate a 
commercial motor vehicle in violation of a regulation promulgated under 
this section, or chapter 51 or chapter 313 of this title'' (49 U.S.C. 
31136(a)(5)). The 1984 Act also grants the Secretary broad power in 
carrying out motor carrier safety statutes and regulations to 
``prescribe recordkeeping and reporting requirements'' and to ``perform 
other acts the Secretary considers appropriate'' (49 U.S.C. 31133(a)(8) 
and (10)).
    This rule implements, in part, the Administrator's authority under 
section 31136(a)(1) to ensure that CMVs are maintained, equipped, 
loaded, and operated safely. The final rule is also based on the broad 
recordkeeping and implementation authority of section 31133(a)(8) and 
(10). This rule addresses only CMV equipment and reporting 
requirements. The provisions of the 1984 Act dealing with the physical 
condition of drivers therefore do not apply (section 31136(a)(3)-(4)). 
Finally, as to ensuring that operators of CMVs are not coerced by motor 
carriers, shippers, receivers, or transportation intermediaries to 
operate a CMV in violation of a regulation, the rule eliminates only 
the requirement for drivers (except drivers of passenger-carrying CMVs) 
to prepare reports when there are no defects or deficiencies; it 
preserves the rule requiring reports when there are defects or 
deficiencies, as well as the requirement for motor carriers to take 
appropriate action on receipt of the report when problems with the 
vehicle are noted. The removal of the requirement to prepare and retain 
no-defect DVIRs therefore will not compromise drivers' ability to 
report vehicle problems to the carrier, or relieve carriers of the 
responsibility to take action. Furthermore, elimination of the no-
defect DVIRs will not compromise drivers' protection under existing 
whistleblower statutes concerning employers taking adverse action 
against drivers for refusing to violate the FMCSRs. The rule thus 
provides protection against coercion of drivers by motor carriers. 
Finally, because the rule removes a regulatory burden criticized by 
both drivers and motor carriers (and irrelevant to shippers, receivers, 
and transportation intermediaries), there is virtually no possibility 
that a CMV operator will be coerced to violate the rule itself. It is 
true, of course, that a motor carrier could insist that a driver 
continue filing no-defect DVIRs even in the absence of a regulatory 
requirement, but that would be a condition of employment, not coercion 
to violate a safety regulation.

Discussion of Comments

    On August 7, 2013, FMCSA published a notice of proposed rulemaking 
(NPRM) (78 FR 48125). The Agency proposed to rescind the requirement 
that CMV drivers, operating in interstate commerce, except drivers of 
passenger-carrying CMVs, submit, and motor carriers retain, driver-
vehicle inspection reports when the driver neither found nor been made 
aware any vehicle defects or deficiencies.
    FMCSA received 41 comments from the following:
     Two governmental agencies: National Transportation Safety 
Board (NTSB) and Canadian Council of Motor Transport Administrators 
(CCMTA).

[[Page 75440]]

     Six motor carriers: Atlas PyroVision Productions, Con-way 
Freight, Payne and Dolan, Pyro Spectaculars, RES Specialty 
Pyrotechnics, and Wald and Company.
     Nine industry associations: American Moving and Storage 
Association (AMSA), American Pyrotechnics Association (APA), American 
Truck Dealers Division of the National Automobile Dealers Association 
(ATD), American Trucking Associations (ATA), California Trucking 
Association (CTA), National Motor Freight Traffic Association (NMFTA), 
New England Fuel Institute (NEFI), Petroleum Marketers Association of 
America (PMAA), and National Strategic Shippers Transportation Council 
(NASSTRAC).
     Two advocacy organizations: American Association for 
Justice (AAJ) and Advocates for Highway and Auto Safety (Advocates).
     Two providers of fleet management software: Zonar Systems 
(Zonar) and J. Hart of Fleettrakker LLC.
     20 individuals.
    Several commenters, including Advocates, ATA, and the NTSB, 
commented on matters outside the scope of this rulemaking (including 
hours-of-service regulations, transmittal of driver medical 
certification information, and brake system and tire inspection 
procedures).
    Con-way Freight pointed out an erroneous reference to Sec.  
396.11(b)(2), rather than Sec.  396.11(a)(2). FMCSA published a 
correction notice in the Federal Register on September 6, 2013 (78 FR 
54861) to address this error.

Comments Supporting the Proposal

    Thirty-one commenters favored FMCSA's proposal. Most pointed to the 
potential savings in time and paperwork.
    APA stated the current DVIR rule ``is an excellent example of an 
ineffective and excessively burdensome paperwork requirement.'' Four 
motor carriers stated they supported APA's position on the proposed 
rule.
    Collette Gott, who identified herself as a trucking company safety 
director, said the proposed rule would encourage motor carriers to 
shift their focus from mere recordkeeping to CMV safety and maintenance 
activities and would improve communications between drivers and 
maintenance shop staff, as well as lead to better recordkeeping. 
Because she recognized that a requirement to complete a record of an 
inspection does not guarantee that the inspection gets done, she also 
maintained that motor carriers will continue to develop and implement 
oversight procedures.
    Zonar, a provider of fleet management systems, supported the 
proposed rulemaking.
    Con-way Freight stated that it supported the proposal in its 
entirety.
    NMFTA stated its support for the proposed rule. NASSTRAC and CTA 
both supported the proposed rule and asked FMCSA to continue to 
eliminate or lessen regulations which have costs that outweigh 
benefits. ATD also supported the proposed rule, stating that a DVIR is 
one element of an inspection, repair, and maintenance program, and it 
only makes sense for the driver to prepare and retain formal inspection 
reports if the driver discovers safety-related defects or deficiencies.
    PMAA and NEFI both favored the proposed rule. PMAA wrote ``We 
applaud the FMCSA for recognizing that keeping non-defect DVIR reports 
on file does nothing to ensure the safe maintenance of CMVs in 
interstate commerce. PMAA believes keeping both non-defect DVIRs and 
defect DVIRs can lead to filing errors that unnecessarily delay repairs 
on CMVs to the detriment of both operational safety and small motor 
carriers who are perpetually overburdened by unnecessary paperwork.'' 
Both PMAA and NEFI also provided detailed responses to the questions 
FMCSA asked in the NPRM concerning procedures for handling DVIRs.
    An individual commenter noted that, in the fuel-hauling business, 
the large number of rules imposed by Federal, State, and local 
governments, as well as by fuel transfer facilities (``loading racks'') 
is confusing to both drivers and motor carriers and leads to errors and 
reduced safety. In his view, reducing the burden on drivers will be 
helpful.
    ATA supported the proposal, arguing that the current requirement 
produces a regulatory burden without a safety benefit. However, ATA 
raised questions concerning FMCSA's computation of the information 
collection burden. FMCSA addresses those questions below under the 
heading ``Information Collection Burden Estimates.''
    Stephen Carter, a professional driver and private pilot, supported 
the proposed rule because it would improve his and his carrier's 
efficiency by eliminating a time- and resource-intensive requirement. 
He added that it is very much in his and his carrier's interest for him 
to report equipment defects and for the carrier to remedy them before 
his CMV is operated. Although he stated that the vast majority of DVIRs 
submitted currently indicate no defects, he strongly disagreed with the 
notion, as expressed by some of the opposing comments that drivers 
would neglect to inspect their CMVs or perform inadequate inspections 
with the aim of not submitting a DVIR. Mr. Carter added that, as a 
private pilot, he is bound by Federal Aviation Administration (FAA) 
regulations--and those regulations require a report only if the pilot 
finds a safety-related defect in a pre-flight or post-flight 
inspection.
    Twelve other individuals also expressed their support for the 
proposal. Several of them noted potential savings in time, resources, 
and paper.
    Three commenters--ATD, NTSB, and Zonar--addressed the proposed 
harmonization of the part 392 pre-inspection and part 396 DVIR lists. 
All of them supported it.

Comments Opposed to the Proposal: Preference for Retaining Full 
Reporting Versus Proposed Reporting-By-Exception

    AAJ believes that eliminating no-defect DVIRs will dramatically 
increase truck accidents, injuries, and fatalities. AAJ states that 
``Most truck drivers use the daily report as a checklist, much like 
airline pilots. Thus, eliminating DVIRs will be interpreted by many 
drivers as eliminating the necessity for a pre-trip inspection.'' AAJ 
contended that even drivers who understand that an inspection is still 
necessary ``would not have the report and its list of parts and 
accessories to use as a checklist.''
    An individual, Clay Eppard, characterized the DVIR as a vital line 
of communication between drivers and mechanics/motor carriers to 
promote vehicle safety. He noted that drivers often include ``non-
safety-related'' defects in their DVIRs, and that some of those defects 
could affect vehicle safety if they are not addressed in a timely 
fashion.
    AMSA opposed the proposal because it and its members consider the 
submittal of no-defect DVIRs to be a critical component of preemptive 
maintenance, and thus an important facet to the general operation of a 
safe and compliant motor carrier. AMSA and its member companies believe 
that if FMCSA rescinds the requirement for no-defect DVIRs, drivers 
could become complacent and this could adversely affect safety and 
operational practices. AMSA stated that many of its members will 
continue to require that drivers submit all DVIRs to their respective 
carriers, regardless of FMCSA's decision.
    Similarly, Advocates contended that eliminating the requirement 
would lead to less attention being paid to vehicle

[[Page 75441]]

safety and maintenance, and a higher percentage of vehicle violations 
and out-of-service (OOS) orders. Advocates asserted that the process of 
completing the DVIR is a driver's responsibility--and it makes the 
driver consider the operation of the CMV during the previous trip, 
including any problems that did not actually disable it. Advocates 
stated, ``It is inappropriate to allow motor carriers and vehicle 
maintenance staffs to assume that the failure to complete a report 
means that no vehicle maintenance or safety issues were encountered.''
    The NTSB believes that daily safety inspection is an important 
component of effective vehicle maintenance, noting that many motor 
carriers employ inspection checklists. The Board stated that the 
checklists serve as ``job aids'' for drivers, provide documentation 
that the driver has completed the daily inspection, and serve as a 
means of communication between drivers and maintenance workers about 
vehicle safety issues. The NTSB pointed out that similar inspection 
reports are required in other transportation modes and in the military, 
and noted that the use of safety checklists has been shown to improve 
safety outcomes in many non-transportation settings. The NTSB went on 
to say that, ``Although the requirement to submit a no-defect DVIR is 
not a guarantee that drivers will conduct thorough vehicle inspections, 
the requirement creates a system of accountability that encourages 
drivers to do so. Without requiring some type of documentation, such as 
the signature on the DVIR, drivers may be less likely to conduct 
inspections, and less likely to detect and document vehicle problems.'' 
The NTSB added that FMCSA requires other types of records to be 
maintained (hours-of-service records, drug tests, driving records) 
regardless of whether they indicate compliance or non-compliance. The 
NTSB also maintained that records preserved by the operator serve as an 
indicator to regulators that a carrier is following good safety 
practices.
    FMCSA response. The Agency did not propose to change the 
requirement concerning filing of DVIRs when the driver notes a defect 
or is made aware of one. FMCSA also did not propose to prohibit motor 
carriers from continuing to require their drivers to prepare DVIRs, 
even when the driver has no vehicle defects to report. The fundamental 
requirement of the FMCSRs is for motor carriers to ensure that their 
CMVs are in safe and proper operating condition at all times. As the 
NPRM noted, the Agency attempted to determine, through an analysis of 
historical inspection and other safety data, whether eliminating the 
no-defect DVIR would affect the condition and proper maintenance of 
vehicle components (79 FR 48129). Due to data limitations, mainly the 
inability to distinguish between form-and-manner violations and serious 
safety violations, this analysis could not be performed. If anything, 
the rule may actually improve safety by ensuring that the relatively 
few DVIRs that report defects are not lost among the vast majority of 
those that do not, thereby making it easier for motor carriers to 
identify vehicles in need of repair. Nonetheless, the safety and 
potential operational implications of drivers not performing a post-
trip inspection and not reporting CMV equipment defects--and motor 
carriers not remedying those defects--are as important as when the 
regulation was promulgated in 1952.
    FMCSA does not agree with the contention by several commenters that 
revising the DVIR requirement as proposed would inevitably lead to 
drivers paying less attention to vehicle maintenance and safety. The 
new rule would not change the requirement for CMV drivers to conduct 
pre- and post-trip vehicle inspections. Nor does it change the 
requirement for CMV drivers to report defects or deficiencies that were 
found by or reported to them. No commenters provided data or 
information to support their predictions of reduced safety.
    The Agency also disagrees with Advocates' contention that drivers 
would not report situations that arose in a previous trip, or Mr. 
Eppard's comment that drivers would not report ``non-safety related'' 
defects. The rule does not place a time limit on the driver's ability 
to report CMV defects. If a driver operates a particular CMV on 
multiple days, and recalls a potential problem that was not reported 
the last time he or she drove the CMV, the driver should report the 
problem to the motor carrier. The rule also does not limit what a 
driver may report as a safety-related defect.
    FMCSA agrees with commenters that completion of a DVIR is an 
important tool in a motor carrier's systematic inspection, repair, and 
maintenance program--but disagrees that it is necessary for truck 
drivers to submit a DVIR when there are no defects to report. The ICC's 
original 1939 recommendation for use of a ``Driver Trip Report'' and 
its 1952 ``vehicle condition report by driver'' reflected a preference 
for a ``continuous record'' of vehicle condition. This type of record 
would include both the presence and absence of defects. Over the years, 
however, the notion of a ``continuous record'' has given way among many 
regulatory agencies to ``reporting by exception''--it is more important 
and efficient to report anomalies, unusual situations, and real defects 
or deficiencies that might require maintenance staff to act on them.
    One example of this reporting-by-exception model is the FAA's 
requirement for reporting of anomalies and defects for aircraft. FMCSA 
reviewed regulations under 14 CFR part 121 applicable to domestic, 
flag, and supplemental operations (Sec. Sec.  121.315, 121.563, 
121.701, 121.703) and 14 CFR part 135 commuter and on-demand operations 
(Sec. Sec.  135.65, 135.415, 135.417) concerning aircraft maintenance 
logs, reporting of mechanical irregularities, service difficulty 
reports, and mechanical difficulty summary reports. There is no 
requirement to file any kind of ``normal operation'' report. The United 
States Coast Guard (USCG) regulations concerning tests before getting 
underway (33 CFR 164.25) describe requirements for testing of certain 
components (primary and secondary steering gear). That same agency's 
regulations for maintenance, failure, and reporting (33 CFR 164.82) 
address the requirement for marine radar to be maintained operative, 
and to file reports in the event of an equipment failure. Neither set 
of requirements calls for logging detailed results of tests that are 
performed where no deficiencies are found.
    FMCSA disagrees with the AAJ's and other commenters' assertion that 
``most drivers'' would reasonably interpret the proposed rule as 
deleting not only the requirement for a no-defect DVIR, but the need 
for a pre-trip and post-trip inspection. The same checklist of what 
could be covered during a driver vehicle inspection would be retained 
in the FMCSRs. Drivers of all CMVs subject to this rule will continue 
to be required to file a DVIR if the driver discovers or is made aware 
of a safety defect or deficiency. FMCSA also did not propose to do away 
with the pre-trip inspection list in Sec.  392.7(a) or the list of 
parts and accessories in Sec.  396.11(a). The NPRM merely proposed to 
make the pre-trip inspection list in Sec.  392.7(a) consistent with 
that of Sec.  396.11(a).

Role of DVIR in Inspection, Repair, and Maintenance Programs

    Comment. Advocates and several other commenters noted that drivers 
should positively state whether a malfunction was discovered. The NTSB 
commented that ``the records preserved by a motor carrier serve as an 
indicator to regulators that a carrier is following

[[Page 75442]]

good safety practices.'' Although Advocates supported FMCSA's proposal 
to continue to require drivers of passenger-carrying CMVs to complete a 
DVIR even when the driver reports no defects or deficiencies, they 
pointed out that drivers of freight-transporting CMVs also may have 
interactions with many people during their work day. The NTSB and two 
individuals, Mr. Eppard and Frank Gaede, shared this viewpoint.
    FMCSA response. The rule retains the requirement for CMV drivers to 
report defects or deficiencies they become aware of--and this holds for 
all the vehicles that a driver may operate in any given day.
    FMCSA acknowledges that all drivers experience interruptions during 
their work day that could impact their ability to timely document 
problems with the vehicle.
    The Agency is retaining no-defect DVIRs for passenger-carrying 
CMVs, as proposed in the NPRM. First, a passenger-carrier crash is a 
low-probability but high-consequence event, in terms of potential 
deaths and injuries. Second, motorcoach drivers often need to interact 
with their passengers, particularly at the beginning and end of their 
work day, but often during the trip as well. Third, because they are 
carrying the most valuable cargo, motor carriers of passengers must 
exercise heightened diligence over their operations, including CMV 
maintenance. For all of these reasons, FMCSA decided against applying 
this rule to bus drivers and companies at this time.
    Regarding the comment that DVIRs are only one element of an 
inspection, repair, and maintenance program, FMCSA agrees. The Agency 
is not foregoing the fundamental requirements of part 393, Parts and 
Accessories Necessary for Safe Operation. Nor is it proposing to change 
any other element of the inspection, repair, and maintenance 
requirements of part 396. Drivers will still be required to perform 
pre-trip evaluations of equipment condition, and to complete DVIRs if 
any defects or deficiencies are discovered or reported during the day's 
operations.
    Responding to the NTSB, FMCSA notes that the content and quality of 
CMV maintenance records often provide a more useful picture of a motor 
carrier's vehicle safety practices than the sheer quantity of its 
records. Furthermore, unlike the NTSB, FMCSA by statute must consider 
benefits and costs to the individuals and entities subject to its 
regulations. The DVIR is the largest element of the information 
collection (IC) for part 396 (Office of Management and Budget (OMB) 
Control No. 2126-0003); the no-defect DVIR for property-carrying CMVs 
makes up more than 46 million of the 58 million burden hours associated 
with that collection.

Opposition to Proposal: DVIR as ``Certification''

    Comment. Advocates described a DVIR, when used in slip-seat 
operations, as ``certification from the prior driver . . . that the 
truck is either ready to go or indicates what is needed to get the CMV 
ready for operation.''
    FMCSA response. A document that reports defects or deficiencies--
and how the motor carrier has resolved them--is critical for the next 
driver. A document that reports no defects or deficiencies is not. 
Furthermore, the description of a DVIR as a ``certification'' of the 
state of a CMV is not consistent with the text of the regulation. Under 
this rule, the absence of a DVIR will serve the same function as the 
previous no-defect DVIR, i.e., the driver is not aware of any safety 
defect. This does not mean that the next driver should not perform a 
pre-trip inspection--and it certainly does not indicate that the driver 
may skip a post-trip inspection that would form the basis for a driver-
vehicle inspection report required under Sec.  396.11(a).

Results of Truck and Bus Inspections

    Comment. Advocates cited the 20 percent vehicle OOS rate for truck 
and bus inspections as a key reason for its opposition to the proposed 
rule. AAJ cited a 27.8 percent vehicle OOS rate for CMVs during traffic 
stops and a 20.18 percent OOS rate during roadside inspections. Both 
commenters stated or implied that elimination of no-defect DVIRs would 
adversely affect those figures. Advocates also argued that the 
differences cited by FMCSA in the number of fatalities per fatal 
motorcoach crash (1.57) ``is not significantly different'' from the 
number of fatalities per fatal truck crash (1.13), and thus not 
sufficient to justify different rules for trucks and buses.
    FMCSA response. The Agency does not believe (1) that any particular 
vehicle OOS rate is a reason to retain the requirement for no-defect 
DVIRs, or (2) that the elimination of no-defect DVIRs for property-
carrying CMVs will adversely affect the vehicle OOS rate. Furthermore, 
the Agency believes that the difference between 1.57 fatalities per bus 
crash and 1.13 fatalities per truck crash is meaningful. And, as noted 
above, the Agency is taking an appropriately cautious step by retaining 
the requirement for a no-defect DVIR for passenger-carrying CMVs. FMCSA 
reiterates the three points made in the NPRM. First, a passenger-
carrier crash is a low-probability but high-consequence event, in terms 
of potential deaths and injuries. Second, motorcoach drivers often need 
to interact with their passengers, particularly at the beginning and 
end of their work day, but often during the trip as well. Third, 
because they are carrying the most valuable cargo, motor carriers of 
passengers must exercise heightened diligence over their operations, 
including CMV maintenance. For all of these reasons, FMCSA decided 
against applying this rule to bus drivers and companies at this time

Safety Statistics

    Comment. Advocates cited statistics from FMCSA's Compliance, 
Safety, Accountability (CSA) program as a basis for recommending that 
the current DVIR regulation be retained. Advocates stated that the 
August 2013 Safety Measurement System analyses showed that nearly 30 
percent of motor carriers with a Vehicle Maintenance score had scores 
exceeding an 80 percentile threshold, thus indicating that FMCSA would 
prioritize these carriers for a safety intervention.
    FMCSA Response. FMCSA reviewed the SMS data that Advocates 
referenced. The Agency agrees that approximately 30 percent of motor 
carriers with a Vehicle Maintenance score had scores exceeding an 80 
percentile threshold, which would likely result in the Agency 
prioritizing them for an enforcement intervention. However, the Agency 
is not aware of, and Advocates did not present, any data or information 
concerning the relationship between the preparation and retention of 
no-defect DVIRs and carriers' safety performance, as captured in SMS.
    Generally, all of the carriers with scores exceeding the 80 
percentile threshold are currently subject to the requirement to 
prepare and retain no-defect DVIRs. These carriers have clearly 
demonstrated lapses in their safety management controls related to 
vehicle maintenance and have a pattern of dispatching vehicles that 
have mechanical problems. These problems may or may not have been known 
to the driver who prepared the DVIR the day prior to the roadside 
inspection during which the violations were noted.
    FMCSA has no means of determining the percentage of these instances 
involving previous-day DVIRs where the mechanical problems were noted 
but not acted upon by the carrier. Likewise, the Agency has no means of 
determining the percentage where mechanical problems were present but 
not reported. Therefore, the maintenance scores in SMS do not

[[Page 75443]]

provide useful information for determining what actions these carriers 
would take in the absence of the no-defect DVIR requirement. And, this 
information does not mean that carriers with SMS scores below the 
enforcement intervention threshold would lessen their vehicle 
maintenance efforts upon rescission of the requirement to prepare and 
maintain no-defect DVIRs.
    FMCSA believes it is important to note that nothing in this 
rulemaking relieves drivers of the responsibility to prepare DVIRs for 
any vehicle for which a defect or deficiency has been observed by or 
reported to the driver. Motor carriers remain responsible for reviewing 
those DVIRs and taking appropriate action to either fix the problem or 
document that no repairs were made because the carrier determined that 
the problem did not relate to the safe operation of the vehicle. The 
Agency will continue to use SMS to identify carriers with poor 
maintenance programs.

Information Collection Burden Estimates

    Comments. NMFTA stated that it concurs with FMCSA's analyses, 
including the Agency's conservative estimate of the reductions in time 
and cost burdens from eliminating no-defect DVIRs. However, several 
commenters questioned FMCSA's estimates of reductions in the costs 
associated with completing and filing DVIRs. Advocates asserted that 
FMCSA has neither performed a study on the potential outcomes, nor 
considered costs to society, from the proposed rule--and Advocates 
believes the change would lead to unintended and negative consequences 
from some CMV drivers who ``may choose to forego completing a defect 
DVIR.'' Advocates also believes that the estimated time savings for a 
driver to complete, and for a motor carrier to review and file, a DVIR 
is so small ``there is little or no practical utility for the 
individual driver or the industry as a whole'' resulting from the 
proposed requirement.
    FMCSA response. The Agency did not propose to prohibit motor 
carriers from continuing to require their drivers to prepare DVIRs even 
when the driver has no vehicle defects to report. We have complied with 
the Paperwork Reduction Act (PRA) requirements and routinely published 
60- and 30-day notices concerning the estimates used for this 
information collection burden. If interested parties have accepted 
these estimates during the multiple notice-and-comment proceedings 
concerning the renewal of the OMB approval for part 396, it is only 
appropriate that the Agency use those same estimates for the 
rulemaking. Through this notice-and-comment rulemaking, we are 
eliminating a costly portion of an information collection requirement 
without adversely impacting safety. As for the allegedly de minimis 
effect of the rule, the PRA calls for the Agency to estimate not only 
the time and resource requirements associated with filing of a given 
item of information, but also the aggregate annual total of such 
filings. In the case of the DVIR, FMCSA estimates that the form is 
completed an average of 250 days per year for each of the more than 
4.58 million CMVs in operation. So, although the requirements imposed 
on an individual on a daily basis may be low, the aggregate total is 
very large.
    Comment. An individual commenter, Robert Irwin, believes FMCSA 
should no longer require no-defect DVIRs for passenger CMVs, given that 
it takes the same amount of time to prepare a DVIR for a bus as for a 
truck.
    FMCSA response. The Agency believes that significant reporting 
changes in the passenger-carrying CMV segment should not be made at 
this time, for the reasons given above.
    Comment. Zonar questioned FMCSA's time and cost estimates, noting 
that the inspections themselves would still be required and asserting 
that the drivers' ``paperwork'' time is minimal. John Hart, 
representing Fleettrakker LLC, a provider of fleet management software, 
asked FMCSA to reconsider its proposal in light of the availability of 
electronic DVIR applications that would provide comprehensive records 
of daily CMV inspections while eliminating cumbersome paper records. 
Mr. Hart said the daily inspection was based on a faulty assumption.
    FMCSA response. The PRA estimates focus on recordkeeping and 
record-retention, not on the performance of the inspection, which is 
considered part of a normal business practice. The Agency estimates 
include the actions of preparing, submitting, reviewing, and filing 
records--and, even if the records were handled electronically, there 
would still be an information-collection burden associated with them.

Processes: Paper Versus Electronic DVIRs

    Comment. Mr. Hart of Fleettrakker LLC argued there is an 
inconsistency between FMCSA's support of integrated electronic wireless 
technologies and its policy to allow the use of electronic signatures 
for DVIRs, and that this calls into question the accuracy of FMCSA's 
analyses of paper-based DVIR reports. He also claimed that the use of 
paper DVIRs is not an effective tool to improve CMV safety, and that 
FMCSA should require the use of electronic applications to perform this 
function. Zonar asked FMCSA to strengthen its policy concerning use of 
electronic documents and systems, such as the DVIR application included 
in its own products. Gregory Hooyman of Payne and Dolan noted that 
vehicle monitoring systems can communicate with the safety and 
maintenance departments from the road to advise them of problems so 
they can be ready to repair the vehicle when it returns, rather than 
having to wait until the trip is over and the driver submits a paper 
DVIR.
    FMCSA response. FMCSA does not prohibit motor carriers from using 
information technology in their CMV maintenance activities. FMCSA also 
will allow motor carriers to continue to require drivers to submit no-
defect DVIRs if they believe that doing so is appropriate for their 
operations. However, the NPRM did not propose to require motor carriers 
to use electronic DVIRs in place of paper DVIRs.
    FMCSA recognizes that CMV operations and maintenance marketplaces 
are served by a large and constantly increasing number of system 
providers. FMCSA's policy since the early 1990s has been to encourage 
motor carriers to use electronic methods for a wide range of 
information collection and recordkeeping purposes. In fact, one of the 
first requests from motor carriers to be allowed to utilize electronic 
document handling concerned DVIRs. FMCSA's January 2011 Regulatory 
Guidance Concerning Electronic Signatures and Documents (76 FR 411, 
January 4, 2011) continues and extends the Agency's support of 
paperless recordkeeping systems.
    Comment. The NTSB noted that many motor carriers use DVIR 
checklists that are integrated with driver record of duty status 
(logbook) forms, or use electronic DVIRs. The NTSB believes that, 
unless drivers elect not to complete inspections, the amount of 
additional time spent to complete a no-defect DVIR is negligible.
    FMCSA response. FMCSA has long allowed motor carriers the option of 
using the back of the record of duty status (daily log) as the DVIR, 
provided the motor carrier complies with the record retention 
requirements in Sec.  395.8 and Sec.  395.11 (see Regulatory Guidance 
for Sec.  396.11, Question 15, 62 FR 16370, at 16428). Motor carriers 
may still use these forms and checklists. FMCSA has encouraged the use 
of electronic recordkeeping for DVIRs since the early 1990s. However, 
it still takes time for a driver to complete and submit a DVIR, and for 
a motor carrier to review it and

[[Page 75444]]

to file it, whether it is prepared electronically or on paper. FMCSA 
anticipates that the proportion of DVIRs completed electronically will 
steadily increase.
    Comment. The NTSB does not believe that maintenance personnel would 
overlook DVIRs indicating defects. In describing how a motor carrier 
might use DVIRs, the NTSB indicated that no-defect DVIRs are typically 
not given to maintenance personnel, but are delivered to a separate 
location. DVIRs noting defects are typically used to initiate work 
orders.
    FMCSA response. FMCSA disagrees with the NTSB's description of the 
process for handling DVIRs. Drivers required to use paper forms 
generally submit all of their documents in a trip envelope, and someone 
sorts them out and forwards them to the appropriate staff or offices. 
All vehicle-related documents, except for fuel purchases, would 
generally be forwarded to the maintenance department. Only at that 
point would the DVIRs that note vehicle defects or deficiencies be 
sorted and assigned for action.
    Comment. AAJ stated that it is sympathetic to the need to reduce 
paperwork and costs and suggested that, rather than eliminate no-defect 
DVIRs altogether, FMCSA could reduce costs to motor carriers if the 
daily inspection report were to be included in a weekly format. 
According to AAJ, this would continue to ensure that daily inspections 
were performed and reduce the volume of paper records needing to be 
maintained.
    FMCSA response. There are several potential drawbacks to this 
suggestion. In a June 1998 final rule, the Agency revised the part 396 
requirements [63 FR 33254, June 18, 1998, at 33279] to acknowledge the 
growing use of centralized maintenance recordkeeping systems and to 
eliminate the requirement that the previous day's DVIR be physically 
carried in the CMV. Because drivers often do not operate the same CMV 
every day, a multiday form would probably need to be tracked to follow 
a given CMV. Thus, the AAJ's suggestion appears to recommend returning 
to the pre-1998 rule. It is also unclear what would happen to the 
weekly report if a driver discovered a mechanical problem on the third 
day of the week, for example, and submitted the defect report (on the 
weekly form) to the maintenance shop.
    Comment. ATA believes that FMCSA has overstated the potential 
benefits associated with eliminating the no-defect DVIR. ATA estimates 
that about 40 percent of the 600,000-800,000 electronic on-board 
recorders \1\ in use include an electronic-DVIR function. ATA also 
believes that FMCSA has over-estimated the amount of time needed to 
complete the paperwork for a no-defect DVIR: As ATA views it, 47.2 
million hours, divided by 500,000 fleets, equals approximately 95 hours 
per fleet per year. ATA also believes that many motor carriers will 
continue to maintain no-defect DVIRs in order to provide continuity to 
their maintenance programs and because of concerns over litigation. ATA 
surveyed the motor carrier members of its Technology & Maintenance 
Council and received responses from 59 carriers. Although nearly three-
fourths (70.2 percent) of them supported rescinding the regulatory 
requirement, there was nearly an even division among the carriers that 
said they would continue to retain no-defect DVIRs, those that would no 
longer retain them, and those that were uncertain. Among the 13 
carriers providing individual comments to the survey, opinions were 
divided. Although most expressed support for the proposal, others 
expressed concerns similar to those of Advocates, that drivers might 
not complete DVIRs to report defects [even though this will still be 
required]. Of the 37 carriers responding to a question concerning costs 
of submitting and retaining no-defect DVIRs, 16 stated that they were 
unable to provide estimates or that the costs were minimal, although 
one carrier estimated a cost of $25,000 per truck per year.
---------------------------------------------------------------------------

    \1\ The term ``electronic on-board recorder'' is understood in 
this context to include multiple functions, not limited to recording 
driver hours-of service.
---------------------------------------------------------------------------

    FMCSA response. Rather than estimating information-collection 
burdens on a per-fleet basis, as ATA did, FMCSA calculated its time 
estimate on a per-vehicle basis (approximately 11 hours). Because there 
is enormous variation in fleet sizes, and because approximately 152,000 
single-CMV fleets are not required to prepare or retain DVIRs, FMCSA 
believes that it is more appropriate to estimate information collection 
burdens on a per-vehicle basis, and to express them as industry-wide 
totals rather than per-fleet totals. In addition, it appears that ATA 
might not have accounted for the motor carriers that operate only a 
single CMV and are not required to prepare DVIRs, so might have under-
estimated the reduction in information-collection burden.
    Concerning the proportion of DVIRs prepared electronically, FMCSA 
received no comments on its estimated information collection burden for 
inspection, repair, and maintenance recordkeeping requirements the last 
several times this collection has come up for renewal. FMCSA's current 
estimate that 5 percent of DVIRs are completed electronically (5% x 
4,578,250 CMVs), is somewhat less than the ATA's estimate (40% of 
between 600,000 and 800,000 CMVs so equipped = 240,000 to 280,000 CMVs 
using electronic DVIRs).

Applicability to Intrastate Operations

    Comment. Gregory Hooyman, who supported the proposal, also asked 
FMCSA to make it applicable to intrastate drivers in order to avoid 
potential confusion.
    FMCSA response. In order to be eligible for Motor Carrier Safety 
Assistance Program (MCSAP) grants, States must adopt and enforce motor 
carrier safety laws and regulations for intrastate as well as 
interstate operations that are compatible with the FMCSRs, including 
parts 392 and 396 (49 CFR 350.201(a)). MCSAP recipients have up to 3 
years to adopt the requirements of this final rule.

Comment Concerning U.S.-Canada Reciprocity

    Comment. The CCMTA noted that, in accordance with the Canada-U.S. 
Trip Inspection Reciprocity Agreement, ``CCMTA jurisdictions will 
accept the pre- and post-trip inspection reports prepared by U.S. base-
plated motor carriers in accordance with 49 CFR part 396 as fully 
compliant with the requirements of NSC [National Safety Code] Standard 
13 on Trip Inspection dated September 2008 provided such motor carriers 
carry, and produce upon demand, a post-trip inspection report that is 
no more than 24-hours old. If a driver does not have access to the 
vehicle's previous post-trip inspection report, the driver will prepare 
and produce the report required by 49 CFR 396.11 for the purpose of the 
Canadian operations.'' CCMTA stated that the proposed change to the 
FMCSRs would require amending the Reciprocity Agreement, to state that 
U.S. domiciled drivers will continue to be required to produce a DVIR 
at roadside when operating in Canada even when no defect has been 
detected. CCMTA provided a copy of a May 14, 2009, letter on this 
matter.
    FMCSA response. Motor carriers operating in Canada will need to 
comply with Canadian national, Provincial and Territorial requirements 
that require the previous post-trip DVIR. Drivers will need to prepare 
and to carry a copy of their previous day's post-trip

[[Page 75445]]

DVIR, regardless of whether there are defects to report.

Section-by-Section Analysis

    This final rule adopts the NPRM as proposed with minor revisions 
for clarity.
    In Sec.  392.7, FMCSA adds ``wheels and rims'' and ``emergency 
equipment'' to the pre-trip list in paragraph (a) in order to harmonize 
it with the post-trip list in Sec.  396.11(a)(1). Additionally, FMCSA 
amends 49 CFR part 396 by deleting the sentence in Sec.  396.11(a)(2) 
that reads ``If no defect or deficiency is discovered by or reported to 
the driver, the report shall so indicate.'' In its place, FMCSA inserts 
``The driver of a passenger-carrying CMV must prepare and submit a 
report even if no defect or deficiency is discovered by or reported to 
the driver; the drivers of all other commercial motor vehicles are not 
required to prepare or submit a report if no defect or deficiency is 
discovered by or reported to the driver.'' FMCSA also makes minor 
editorial and formatting changes to the remainder of the text of Sec.  
396.11(a)(2).
    The Agency makes a technical change to Sec.  396.11 to eliminate 
redundant language. In the final rule of June 12, 2012 (77 FR 34852), 
the text of Sec.  396.11(c) was moved to Sec.  396.11(a)(3) and the 
text of Sec.  396.11(d) was moved to Sec.  396.11(a)(5). However, the 
amendatory text to delete paragraphs (c) and (d) was not included in 
that final rule. The Agency corrects that omission here.

Rulemaking Analyses

Executive Order 12866 (Regulatory Planning and Review) as Supplemented 
by E.O. 13563 and DOT Regulatory Policies and Procedures

    Under E.O. 12866, ``Regulatory Planning and Review'' (issued 
September 30, 1993, published October 4 at 58 FR 51735), as 
supplemented by E.O. 13563 (discussed above in the ``Background'' 
section), and DOT policies and procedures, FMCSA must determine whether 
a regulatory action is ``significant'' and therefore subject to OMB 
review. E.O. 12866 defines ``significant regulatory action'' as one 
likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or Tribal government or communities.
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another Agency.
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof.
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the E.O.
    FMCSA has determined that this rule does have an annual effect of 
$100 million or more. The value of the time saved by eliminating the 
paperwork burden associated with the filing of no-defect DVIRs is 
approximately $1.7 billion per year. The explanation of how these 
savings were estimated is presented below. The rule is not expected to 
have any negative safety impacts.
    The Agency conducted an analysis pursuant to the Paperwork 
Reduction Act (PRA) to estimate the reduction in hourly burden from 
elimination of DVIRs for non-passenger-carrying operators of CMVs. 
FMCSA determined that 46.7 million hours of paperwork burden would be 
eliminated by this rule. The full details of the PRA analysis are 
included in the ``Paperwork Reduction Act'' section below. Using a 
labor cost of $37 per hour (with a base wage of $18.61,\2\ fringe 
benefits of 57 percent,\3\ and overhead of 27 percent; \4\ $18.61 x 
1.57 x 1.27 = $37), the Agency valued this time savings at $1.7 billion 
per year (46.7 million hours saved x $37 per hour).
---------------------------------------------------------------------------

    \2\ The median hourly wage for heavy truck drivers. See http://www.bls.gov/oes/current/oes533032.htm. Accessed April 18, 2014.
    \3\ The ratio of total fringe benefits to wages and salaries for 
transportation and warehousing workers. See http://www.bls.gov/news.release/archives/ecec_03122014.pdf. Table 10, Employer costs 
per hour worked for employee compensation and costs as a percent of 
total compensation: Private industry workers, by industry group, 
March 12, 2014. Transportation and Warehousing. http://www.bls.gov/news.release/pdf/ecec.pdf. Accessed April 18, 2014.
    \4\ Industry data gathered for the Truck Costing Model developed 
by the Upper Great Plains Transportation Institute Berwick showed an 
average cost of $0.107 per mile of CMV operation for management and 
overhead, and $0.39 per mile for labor, indicating an overhead rate 
of 27 percent ($0.107 / $0.39). See Farooq. ``Truck Costing Model 
for Transportation Managers''. Upper Great Plains Transportation 
Institute, North Dakota State University (2003) accessed on April 
18, 2014 at http://ntl.bts.gov/lib/24000/24200/24223/24223.pdf. See 
Appendix A, pp. 42-47. Overhead is applied to the base wage and 
fringe benefits.
---------------------------------------------------------------------------

    The Agency added ``wheels and rims'' and ``emergency equipment'' to 
the items required to be inspected under Sec.  392.7 to make the lists 
in this section and Sec.  396.11 consistent. The addition of these two 
items to Sec.  392.7 is expected to impose a de minimis additional 
burden on drivers performing pre-trip evaluations of equipment, as 
drivers will be able readily to observe whether these newly added items 
are in good working order during their review of the items currently in 
the Sec.  392.7 list (service brakes, including trailer brake 
connections, parking (hand) brake, steering mechanism, lighting devices 
and reflectors, tires, horn, windshield wiper or wipers, rear-vision 
mirror or mirrors, and coupling devices). For example, a driver making 
a visual examination of tires can hardly avoid examining the wheels and 
rims at the same time, and defects on these components are usually 
fairly obvious. Similarly, while getting into the cab to check the 
steering mechanism and horn, he or she can easily glance at the dial 
gauge on the fire extinguisher to determine that it is still fully 
charged. Other emergency equipment, including warning triangles, 
flares, or fuses are usually stored in an easy-to-reach location (often 
under or behind the driver's seat) and are readily checked. These items 
were added to the inspection list for consistency, and the Agency 
expects the cost and benefits of these additions to be de minimis.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) 
requires Federal agencies to consider the effects of a regulatory 
action on small business and other small entities and to minimize any 
significant economic impact. The term ``small entities'' comprises 
small businesses and not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with a population of less than 
50,000.\5\
---------------------------------------------------------------------------

    \5\ Regulatory Flexibility Act (5 U.S.C. 601 et seq.), see 
National Archives at http://www.archives.gov/federal-register/laws/regulaotry-flexibility/601.html.
---------------------------------------------------------------------------

    Accordingly, DOT policy requires an analysis of the impact of all 
regulations on small entities, and mandates that agencies try to 
minimize any adverse effects on these entities. Under the Regulatory 
Flexibility Act, as amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996 (SBREFA) (Pub. L. 104-121, 110 Stat. 
857), the rule will have a significant economic impact on a substantial 
number of small entities in the form of cost savings through the 
elimination of 46.7 million paperwork burden hours. These firms would 
receive regulatory relief of approximately $3,000 per entity, which is 
a positive benefit and does not impose a cost on the regulated 
entities. See 5 U.S.C. 605(b).

[[Page 75446]]

Regulatory Flexibility Analysis (RFA)

(1) A Description of the Reason Why Action by the Agency Is Being 
Considered

    FMCSA rescinds the requirement that commercial motor vehicle (CMV) 
drivers operating in interstate commerce, except drivers of passenger-
carrying CMVs, submit, and motor carriers retain, driver-vehicle 
inspection reports (DVIR) when the driver has neither found nor been 
made aware of any vehicle defects or deficiencies (no-defect DVIR). 
This rule removes a significant information collection burden without 
adversely impacting safety. This rule responds, in part, to the 
President's January 2011 Regulatory Review and Reform initiative. 
Finally, this rule harmonizes the pre- and post-trip inspection lists.

(2) A Succinct Statement of the Objectives of, and Legal Basis Why 
Action by the Agency Is Being Considered

    This final rule grants regulatory relief to motor carriers and 
drivers of all sizes of vehicles currently subject to 49 CFR 396.11, 
both private and for-hire, with the exception of operators of 
passenger-carrying CMVs. This rule is based on the authority of the 
Motor Carrier Act of 1935 (1935 Act) [49 U.S.C. 31502(b)] and the Motor 
Carrier Safety Act of 1984 (1984 Act) [49 U.S.C. 31136(a)], both of 
which are broadly discretionary. The rule implements, to some extent, 
the Administrator's authority under section 31136(a)(1) to ensure that 
CMVs are maintained, equipped, loaded, and operated safely. The NPRM is 
also based on the broad recordkeeping and implementation authority of 
section 31133(a)(8) and (10). The removal of the obligation to prepare 
and retain no-defect DVIRs does not compromise drivers' ability to 
report vehicle problems to the carrier, or relieve carriers of the 
responsibility to take corrective action.

(3) A Description of and, Where Feasible, an Estimate of the Number of 
Small Entities To Which the Rule Applies

    The motor carriers regulated by FMCSA operate in many different 
industries, and no single ``small business'' size threshold used by the 
Small Business Administration (SBA) is applicable to all motor 
carriers. Most for-hire property carriers operate under North American 
Industrial Classification System \6\ (NAICS) code 484, truck 
transportation (see, http://www.bls.gov/iag/tgs/iag484.htm), although 
some for-hire carriers categorize themselves as ``express delivery 
services'' (NAICS 492110), ``local delivery'' (NAICS 492210), or 
operate primarily in other modes of freight transportation. The SBA 
size standard for ``small'' truck transportation and local delivery 
services is currently $25.5 million or less in revenue per year, and 
1,500 or fewer employees for express delivery services. For other firms 
in other modes that may also be registered as for-hire motor carriers, 
the ``small'' size standard is 500 or 1,500 employees.\7\
---------------------------------------------------------------------------

    \6\ More information about NAICS is available at: http://www.census.gov/eos/www/naics/., Accessed Feb. 4, 2014.
    \7\ U.S. Small Business Administration Table of small Business 
Size Standards matched to North American Industry Classification 
System (NAICS) codes, effective January 1, 2012. See http://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.
---------------------------------------------------------------------------

    This rulemaking would also affect private motor carriers. These 
carriers use CMVs they own or lease to ship their own goods (such as a 
motor carrier that is operated by a retail department store chain to 
distribute goods from its warehouses to its store locations) or in 
other regulated transportation activities related to their primary 
business activities (for example, dump trucks used by construction 
companies). FMCSA does not have NAICS codes for private motor carriers 
and therefore cannot determine the appropriate size standard to use for 
each case. The ``small'' size standards vary widely, from $0.75 million 
for many types of farms, to $33.5 million for building construction 
firms.
    For for-hire motor carriers, FMCSA examined data from the 2007 
Economic Census \8\ to determine the percentage of firms that have 
revenue at or below SBA's thresholds. Although boundaries for the 
revenue categories used in the Economic Census do not exactly coincide 
with the SBA thresholds, FMCSA was able to make reasonable estimates 
using these data. According to the Economic Census, about 99 percent of 
trucking firms had annual revenue less than $25 million; the Agency 
concluded that the percentage would be approximately the same using the 
SBA threshold of $25.5 million as the boundary.
---------------------------------------------------------------------------

    \8\ U.S. Census Bureau, ``2007 Economic Census.'' Accessed 
December 18, 2013 at: http://www.census.gov/econ/census07/.
---------------------------------------------------------------------------

    For private carriers, the Agency assumed that private carriers with 
fewer CMVs than the top 1 percent (ranked by total CMVs) of for-hire 
carriers would also be small. That is, any company maintaining a CMV 
fleet the size of that of a large for-hire carrier would be considered 
large within its own industry. The Agency found that the top 1 percent 
of for-hire carriers had at least 194 CMVs. Using this threshold, FMCSA 
identified 201,725 small private property carriers (99.4 percent of 
this group) with fewer than 194 CMVs. This could overestimate the 
number of small, private carriers. However, the Agency is confident 
that no small private carrier would be excluded.
    The table below shows the complete estimates of the number of small 
carriers. All told, FMCSA estimates that 99.1 percent of regulated 
motor carriers are small businesses according to SBA size standards.

[[Page 75447]]



                                 Table 3--Estimates of Numbers of Small Entities
----------------------------------------------------------------------------------------------------------------
                                                     For-hire        For-hire
                                                      general       specialized       Private          Total
                                                      freight         freight        property
----------------------------------------------------------------------------------------------------------------
Carriers........................................         176,000         139,000         203,000         518,000
Percentage of Small Carriers....................           98.9%           98.9%           99.4%           99.1%
Number of Small Carriers *......................         174,064         137,471         201,725         513,260
----------------------------------------------------------------------------------------------------------------
* Number of carriers does not exactly equal percentages due to rounding.

(4) A Description of the Projected Reporting, Recordkeeping, and Other 
Compliance Requirements of the Rule, Including an Estimate of the 
Classes of Small Entities That Would Be Subject To Requirements and the 
Type of Professional Skills Necessary for Preparation of the Report or 
Record

    This rule reduces costs on small entities by eliminating a 
substantial paperwork filing burden. The reduction in this burden is 
estimated to save the industry 46.7 million hours of driver time with 
associated monetized savings of $1.7 billion, as explained in the 
Paperwork Reduction Act section. These benefits will accrue primarily 
to small carriers that make up the majority of firms and employ the 
majority of drivers in the industry. The skills for drivers to complete 
DVIRs are basic reading and writing proficiency skills.

(5) Identification, to the Extent Practicable, of All Relevant Federal 
Rules Which May Duplicate, Overlap, or Conflict With the Rule

    This rule does not duplicate, overlap, or conflict with any other 
Federal rules.

(6) A Description af Any Significant Alternatives to the Rules Which 
Accomplish the Stated Objectives of Applicable Statutes and Which 
Minimize Any Significant Economic Impact of the Rule on Small Entities

    The Agency has concluded that there are no significant alternatives 
to the rule that would achieve either the value of $1.7 billion in time 
savings or other objectives of this final rule, except eliminating the 
paperwork burden. Because small businesses are such a considerable part 
of the demographic the Agency regulates, providing alternatives to 
small businesses for non-compliance options is neither feasible nor 
consistent with public safety.
Assistance for Small Entities
    Pursuant to section 213 of SBREFA, FMCSA wants to assist small 
entities in understanding this rule so that they can better evaluate 
its effects on them. If the rule affects your small business, 
organization, or governmental jurisdiction and you have questions 
concerning its provisions or options for compliance, please consult 
Mike Huntley listed in the FOR FURTHER INFORMATION CONTACT section of 
this rule.
    Small businesses may send comments on the actions of Federal 
employees who enforce or otherwise determine compliance with Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of FMCSA, call 1-888-REG-FAIR (1-888-
734-3247).
Unfunded Mandates Reform Act of 1995
    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $151 million (which was the 
value of $100 million in 2013 after adjusting for inflation) or more in 
any 1 year. Although this rule does not result in such expenditure, 
FMCSA discusses the effects of this rule elsewhere in this preamble.
National Environmental Policy Act and Clean Air Act
    FMCSA analyzed this final rule for the purpose of the National 
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et seq.) and 
determined under its environmental procedures Order 5610.1, published 
February 24, 2004 (69 FR 9680), that this action does not have any 
effect on the quality of the environment. Therefore, this final rule is 
categorically excluded from further analysis and documentation in an 
environmental assessment or environmental impact statement under FMCSA 
Order 5610.1, paragraph 6(aa) of Appendix 2. The Categorical Exclusion 
under paragraph 6(aa) relates to regulations requiring motor carriers, 
drivers, and others to ``inspect, repair, and provide maintenance for 
every CMV used on a public road'', which is the focus of this 
rulemaking. A Categorical Exclusion determination is available for 
inspection or copying in the regulations.gov Web site listed under 
ADDRESSES.
    In addition to the NEPA requirements to examine impacts on air 
quality, the Clean Air Act (CAA) as amended (42 U.S.C. 7401 et seq.) 
also requires FMCSA to analyze the potential impact of its actions on 
air quality and to ensure that FMCSA actions conform to State and local 
air quality implementation plans. No additional contributions to air 
emissions are expected from this rule and FMCSA expects the rule to not 
be subject to the Environmental Protection Agency's General Conformity 
Rule (40 CFR parts 51 and 93).
Executive Order 12898 Environmental Justice
    FMCSA evaluated the environmental effects of this proposed rule in 
accordance with Executive Order 12898 and determined that there are no 
environmental justice issues associated with its provisions nor any 
collective environmental impact resulting from its promulgation. 
Environmental justice issues would be raised if there were 
``disproportionate'' and ``high and adverse impact'' on minority or 
low-income populations.
Paperwork Reduction Act
    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
FMCSA to consider the impact of paperwork and other information 
collection burdens imposed on the public. This rule reduces the burden 
hours for the ``Inspection, Repair, and Maintenance'' information 
collection request (ICR), OMB control number 2126-0003. This ICR 
comprises six individual information collections, each corresponding to 
a different area of the inspection, repair, and maintenance 
requirements. This rule affects only the DVIR section of this ICR.
    Based on data from its Motor Carrier Management Information System 
(MCMIS) and Licensing and Insurance

[[Page 75448]]

System (L&I), FMCSA estimates that there are approximately 4,117,000 
CMVs being operated that are subject to these requirements, which 
includes 1,845,000 tractors and 101,000 passenger-carrying CMVs, but 
excludes the 152,000 CMVs of single-vehicle owner operators. Consistent 
with past analyses of this ICR, the Agency assumes that these CMVs are 
used on average 65 percent of the days of a year, and that 25 percent 
of tractor-trailer drivers operate two vehicle combinations per day, 
which effectively increases the number of CMVs or CMV combinations 
requiring a DVIR by 461,250 (25 percent x 1,845,000 tractors) to a 
total of 4,578,250 (4,117,000 CMVs + 461,250 additional tractor-trailer 
combinations). Applying the 65 percent utilization rate yields an 
annual estimate of 1,086,189,813 DVIRs (4,578,250 CMVs or CMV 
combinations x 65 percent x 365 days per year).
    FMCSA has parsed the DVIR process into two steps. The first step, 
filling out a DVIR is estimated to take 2 minutes, 30 seconds. The 
second step, reviewing and signing a DVIR is estimated to take 20 
seconds when defects are reported and 5 seconds when no defects are 
reported. When there are no defects to note, there is nothing to review 
on the DVIR, and the form requires only a signature. The Agency 
estimates that 5 percent of DVIRs note defects, and that 95 percent of 
DVIRs note no defects.
    When this rule goes into effect, 93 percent of the burden 
associated with DVIRs will be eliminated. The remaining burden would be 
associated with DVIRs that note defects and no-defect DVIRs for 
passenger-carrying CMVs. The annual burden remaining from these two 
activities is 2,564,615 hours and 980,123 hours respectively. The table 
below illustrates how these results were calculated.

                                                        Table 4--Detail of DVIR PRA Calculations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           Total DVIRs
                                                                    Utilization rate                         (CMVs x
                                                   Number of  CMVs       (of 365      Percent of  CMVs  utilization rate    Burden per     Total  Annual
                    Activity                           or CMV        calendar days)       affected        x  percent of   DVIR (seconds)  hourly  burden
                                                    combinations        (percent)                       CMVs  affected x
                                                                                                              365)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Defect DVIRs, All...............................         4,578,250                65                 5        54,309,491             170       2,564,615
No Defect DVIRS, passenger-carrying CMVs........           101,000                65                95        22,764,138             155         980,123
                                                 -------------------------------------------------------------------------------------------------------
    Total.......................................  ................  ................  ................  ................  ..............       3,544,738
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Defect DVIRs create 2,564,615 hours of annual burden (4,578,250 
CMVs x 65% utilization x 365 days x 5% of CMVs x 170 seconds / 3,600 
seconds per hour). The annual hourly burden of no defect DVIRs for 
passenger carrying CMVs is estimated to be 980,123 hours (101,000 CMVs 
x 65% utilization x 365 days x 95% of CMVs x 155 seconds / 3,600 
seconds per hour). The total remaining hourly burden of DVIRs is 
3,544,738 hours. This new total represents a reduction of 46,669,294 
hours compared to the 50,214,032 hours of annual burden estimated in 
the currently approved ICR. The monetary value of this annual burden 
reduction, calculated using an hourly labor cost of $37, is $1.7 
billion (46,669,294 hours x $37 per hour).
Executive Order 12630 (Taking of Private Property)
    This rule does not effect a taking of private property or otherwise 
have taking implications under Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.
Executive Order 12988 (Civil Justice Reform)
    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.
Executive Order 13045 (Protection of Children)
    Executive Order 13045, ``Protection of Children From Environmental 
Health Risks and Safety Risks'' (April 23, 1997, 62 FR 19885), requires 
that agencies issuing economically significant rules, which also 
concern an environmental health or safety risk that an Agency has 
reason to believe may disproportionately affect children, must include 
an evaluation of the environmental health and safety effects of the 
regulation on children. Section 5 of Executive Order 13045 directs an 
Agency to submit for a covered regulatory action an evaluation of its 
environmental health or safety effects on children. FMCSA has 
determined that this rule is not a covered regulatory action as defined 
under Executive Order 13045. This determination is based on the fact 
that this proposal would not constitute an environmental health risk or 
safety risk that would disproportionately affect children.
Executive Order 13132 (Federalism)
    A rule has implications for Federalism under Executive Order 13132, 
Federalism, if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on States or localities. FMCSA analyzed this 
rule under that Order and has determined that it does not have 
implications for federalism.
Executive Order 12372 (Intergovernmental Review)
    The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this program.
Executive Order 13211 (Energy Supply, Distribution, or Use)
    FMCSA analyzed this rule under Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use.'' This final rule is not a significant energy 
action within the meaning of section 4(b) of the Executive Order. This 
final rule is a procedural action, is not economically significant, and 
does not have a significant adverse effect on the supply, distribution, 
or use of energy.
Privacy Impact Analysis
    FMCSA conducted a privacy impact assessment of this rule as 
required by section 522(a)(5) of the FY 2005 Omnibus Appropriations 
Act, Public Law 108-447, 118 Stat. 3268 (Dec. 8, 2004) [set out as a 
note to 5 U.S.C. 552a]. The assessment considers any impacts of the 
rule on the privacy of information in an identifiable form and related 
matters. FMCSA has determined

[[Page 75449]]

this rule would have no privacy impacts.

List of Subjects

49 CFR Part 392

    Alcohol abuse, Drug abuse, Highway safety, Motor carriers.

49 CFR Part 396

    Highway safety, Motor carriers, Motor vehicle safety, Reporting and 
recordkeeping requirements.

    For the reasons stated in the preamble, FMCSA amends title 49 CFR, 
Code of Federal Regulations, chapter III, to read as follows:

PART 392--DRIVING OF COMMERCIAL MOTOR VEHICLES

0
1. The authority citation for part 392 continues to read as follows:

    Authority:  49 U.S.C. 504, 13902, 31136, 31151, 31502; Section 
112 of Pub. L. 103-311, 108 Stat. 1673, 1676 (1994), as amended by 
sec. 32509 of Pub. L. 112-141, 126 Stat. 405-805 (2012); and 49 CFR 
1.87.

0
2. Revise Sec.  392.7(a) to read as follows:


Sec.  392.7  Equipment, inspection and use.

    (a) No commercial motor vehicle shall be driven unless the driver 
is satisfied that the following parts and accessories are in good 
working order, nor shall any driver fail to use or make use of such 
parts and accessories when and as needed:

Service brakes, including trailer brake connections.
Parking (hand) brake.
Steering mechanism.
Lighting devices and reflectors.
Tires.
Horn.
Windshield wiper or wipers.
Rear-vision mirror or mirrors.
Coupling devices.
Wheels and rims.
Emergency equipment.
* * * * *

PART 396--INSPECTION, REPAIR, AND MAINTENANCE

0
3. The authority citation for part 396 continues to read as follows:

    Authority:  49 U.S.C. 504, 31133, 31136, 31151, and 31502; sec. 
32934, Pub. L. 112-141, 126 Stat. 405, 830; and 49 CFR 1.87.
0
4. Amend Sec.  396.11 as follows:


0
a. Remove paragraphs (c) and (d); and
0
b. Revise paragraph (a)(2) to read as follows:


Sec.  396.11  Driver vehicle inspection report(s).

* * * * *
    (2) Report content. (i) The report must identify the vehicle and 
list any defect or deficiency discovered by or reported to the driver 
which would affect the safety of operation of the vehicle or result in 
its mechanical breakdown. If a driver operates more than one vehicle 
during the day, a report must be prepared for each vehicle operated. 
The driver of a passenger-carrying CMV subject to this regulation must 
prepare and submit a report even if no defect or deficiency is 
discovered by or reported to the driver; the drivers of all other 
commercial motor vehicles are not required to prepare or submit a 
report if no defect or deficiency is discovered by or reported to the 
driver.
    (ii) The driver must sign the report. On two-driver operations, 
only one driver needs to sign the driver vehicle inspection report, 
provided both drivers agree as to the defects or deficiencies 
identified.
* * * * *

    Dated: December 9, 2014.
Anthony R. Foxx,
Secretary.
[FR Doc. 2014-29331 Filed 12-17-14; 8:45 am]
BILLING CODE 4910-EX-P




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