FR 2020-25868

The Federal Railroad Administration (FRA), responding to a Congressional mandate, is proposing a new rule to include mechanical (MECH) employees who test or inspect railroad equipment under existing alcohol and drug regulations. Historically, these regulations targeted maintenance-of-way and covered service employees but would now extend to MECH employees to deter substance misuse. The proposed regulation intends to enhance railroad safety by enforcing pre-employment and random drug tests among MECH employees.

General Summary

This proposed rulemaking by the FRA seeks to expand its current alcohol and drug regulations, initially designed for other railroad employees, to include those who perform mechanical inspections and tests on railroad rolling equipment. The FRA aims to create safer operations by dissuading drug and alcohol misuse among mechanical employees responsible for safety-sensitive functions. Additionally, the proposal addresses necessary changes that would affect small railroads and contractors, with the intention of ensuring compliance without imposing undue burdens.

Significant Issues and Concerns

The document's length and complexity pose a challenge for general comprehension, particularly its extensive use of regulatory language and numerous references to established regulations. Such intricacies might make it difficult for stakeholders, especially those not familiar with legal jargon, to completely grasp the contents and implications of the proposed rule.

The proposed rule outlines exemptions for MECH employees from pre-employment drug testing based on their employment start date, which may lead to misunderstandings if not clearly communicated. Furthermore, the document often refers to external regulations and documents, requiring stakeholders to consult additional resources to fully understand the proposed changes.

The treatment of small railroads and their contractors within the regulation might be perceived as convoluted. Simplification would help clarify compliance responsibilities, particularly since the proposed regulation discusses various exemptions and responsibilities interwoven into multiple paragraphs and sub-sections.

Another potential concern stems from the instructions in the Privacy Act Statement. Although it encourages public participation, the caveat that submitted comments are posted without changes could deter individuals worried about privacy from voicing their thoughts, ultimately limiting community input and discourse.

Impact on the Public

Broadly, the proposed rule could impact the general public by enhancing safety in railroad operations, potentially reducing accidents resulting from substance misuse among MECH employees. By expanding drug and alcohol screening coverage, the regulation endeavors to promote a safer railroad environment, indirectly benefiting all those relying on train transport.

Impact on Specific Stakeholders

For MECH employees and their employers, particularly larger railroads and contractors, the rule could impose additional responsibilities in terms of compliance with drug and alcohol testing requirements. While this may involve logistical and financial costs, it prioritizes public safety and employee accountability.

Small railroads and contractors could experience both positive and negative impacts. The exclusion of these entities from some requirements aims to reduce unnecessary burdens on smaller operations with limited resources. However, having detailed instructions and clear exemptions would be vital to avoid confusion and ensure compliance.

In summary, while the FRA's proposed rulemaking seeks noble goals of safety enhancement through expanded regulatory coverage, the document's complexity and possible ambiguities might inhibit comprehensibility and compliance. Effective communication and stakeholder engagement are crucial for successful implementation.

The Federal Register document proposes changes to the Federal Railroad Administration's (FRA) regulations regarding alcohol and drug use, particularly expanding them to include mechanical (MECH) employees. The financial aspects of this proposed rule are essential to understanding its broader impact.

Financial Overview

The document discusses the financial implications of the proposed rule, emphasizing that the FRA has determined the proposed regulatory action would not exceed the $100 million annual threshold defined by Executive Order 12866. This threshold is significant because exceeding it would qualify the proposal as a significant regulatory action, necessitating more extensive review and potential economic justification.

Over a 10-year analysis, the proposal's total estimated cost is given as $13.9 million, discounted at a present value rate of 7%. This cost incorporates various requirements such as random testing, reasonable cause testing, and reforms related to employee drug and alcohol testing programs. These costs are borne by the railroads and are expected to cover around 25,500 MECH employees, presenting a significant financial commitment.

Financial Benefits

In contrast to the costs, the estimated benefits of implementing these measures are substantial. The FRA projects that, over a 10-year period, the rule could result in total benefits of $52.8 million, discounted at 7%. These benefits primarily derive from reducing the number of mechanical employees with substance use disorders (SUDs). The analysis calculates these benefits by considering the costs saved from not employing individuals with SUDs, which amounts to $3,200 annually per affected employee.

Civil Penalties

The document specifies civil penalties for non-compliance with these regulations. Any violation could result in penalties ranging from $892 to $29,192 per violation, with the possibility of much steeper fines—up to $116,766 per incident—in cases of gross negligence or repeated violations that pose imminent hazards of death or injury. This inclusion is critical as it highlights the financial risk to employers who do not adhere to the new standards, thereby reinforcing the importance of compliance.

Analysis of Expenditure Impact

The proposed rule's estimated costs and benefits demonstrate that it is designed to deter substance misuse among MECH employees effectively, despite the financial outlay required by railroads. The FRA's evaluation suggests that the financial burden on smaller entities, such as small railroads, could be complex, specifically amid exemptions and compliance requirements outlined in different sections. Importantly, while the document references costs related to various regulations and compliance requirements, readers are required to navigate additional resources to fully comprehend these regulations due to the complex legal language and references.

The regulatory evaluation reflects a detailed consideration of both costs and benefits, suggesting that the proposal is intended to balance financial impacts with the anticipated safety enhancements in the railroad sector.