One commenter was concerned ``that this proposed rule will
adversely affect the smallest railroads, in particular railroads that
have less than 16 employees, these railroads do not have the resources
for training like a Class I or even larger Class III railroads that
typically send a new hire to a central location for 6 weeks of initial
training. The smallest railroads initial training is almost always a
one-on-one, on-the-job training with the person who does the hiring.
Ongoing training is most often addressed at an annual rules class or
frequently provided to an employee with an impromptu training session
when incorrect behavior/technique is observed. How these smallest
railroads document the training they do to the satisfaction of the FRA
will be problematic.'' The commenter indicated that it believed small
railroads should be allowed to continue the status quo with a training
program centered on an annual rules class and informal on-the-job
training (OJT) that is completed without any recordkeeping of what
safety-related tasks and information were learned.
    This final rule is being promulgated to satisfy statutory
requirements in the RSIA to establish minimum training standards for
safety-related railroad employees. The statute does not explicitly
exempt small entities from the requirements, nor does it suggest that
FRA could permit a small entity exemption. Therefore, FRA believes it
was Congress's intent to include small entities as that statute focuses
on the training of each employee, not each employee that works only for
a major railroad or large contractor.
    FRA agrees with the commenter that the rule will require more than
what most small railroads were doing prior to the promulgation of this
rule. The final rule will require that a small railroad submit a formal
training program where none likely existed before; however, FRA expects
that most small railroads will adopt and comply with a model training
program that is largely written by an association that understands the
Federal requirements and can devise a broad program suitable for the
flexibility needed by most small railroads. Many small railroads may
continue to train employees largely in the same manner by periodically
providing a rules class and training through OJT. However, the OJT will
need to meet the standards of ``formal training,'' as that term is
defined in the rule, and it is that formality that will raise the
standards from one in which a supervisor believes the employee should
know how to do the safety-related task to one in which the supervisor
knows and has a record to support that the employee has demonstrated
the knowledge and ability to perform the task. The extra time necessary
for a qualified supervisor or instructor to record what training the
employee has accomplished and to retain that record should not add
significantly to the cost of the previously unrecorded OJT. Some
instructors may spend more time instructing and observing employees
conduct federally mandated tasks than what was being performed prior to
the promulgation of this rule, but FRA views that alleged additional
burden as a flaw in the execution of current training programs that
should not be tolerated by the employer. An employer should not be
permitted to claim that this final rule adds costs for training if the
employer is currently not meeting the minimum requirements for the
pertinent federally mandated employee training. It is for this very
reason that formalized training programs and records are necessary--
that is, to compel all employers of safety-related railroad employees
to provide

appropriate training that can be measured as having been successfully
administered.
(d) Compliance Guide
    One commenter suggested that FRA ``issue a compliance guide,
specifically to railroads that have 15 or less safety-related railroad
employees, (as contemplated in 49 CFR part 209, appendix C).'' As noted
previously, FRA intends to publish an interim final compliance guide
early in 2015. By characterizing the guidance as ``interim final,'' the
guidance will be effective immediately, but signal that FRA is willing
to consider amending the guidance based on comments received.
Consequently, FRA will provide a 60-day comment period and intends to
issue a notice for the final guidance by no later than one year from
the date of issuance of the interim final guidance. FRA also amended
the proposal so that small entities will have at least four years from
the date of issuance of the interim final compliance guide to implement
a training program under Sec.  243.101(a)(2) and at least four years
and eight months from the date of issuance of the interim final
compliance guide to designate existing employees under Sec.
243.201(a)(2).
    FRA's compliance guide is intended to aid employers by providing
the task inventories that provide the foundation of the OJT program.
The compliance guide can be used by all employers, but will be written
with a primary emphasis on assisting small entities. The task
inventories will be presented in a format that is highly respected in
the adult training community, and will be modeled after training
formats FRA's master trainers use to train FRA personnel. The guide
will address each major type of safety-related railroad employee
category. It will explain the roles and responsibilities for those
administering the program, as well as the trainees and trainers. Duties
will be identified by the performance task that the employee is
supposed to be able to do. The guide will help identify the preparation
that trainers will have to take in order to make sure that the
conditions are conducive for learning. For example, trainers will
ensure that trainees have all the tools, equipment, and documents
needed to practice the task. Furthermore, the guide will help establish
standards for establishing when a trainee has demonstrated proficiency.
Such standards are generally based on repetition, the completeness, and
the percentage of accuracy. These factors for establishing standards
will be driven by the complexity of the related task.
(e) Implementation and Program Submission Date for Small Railroads
    One commenter thought that FRA should push back the ``deadline for
an employer submission by at least one year after the submission
deadline for an organization that allows other entities to copy its
program to at a reasonable cost.'' FRA agrees that the comment has
validity and would make the implementation of the rule much smoother.
Therefore, FRA addressed this comment by extending the implementation
deadline schedule in multiple ways. A summary of the changes made in
response to this comment and similar comments can be found in the
preamble under the heading ``Implementation Dates and Incentives for
Early Filing of Programs.''
(f) Number of Contractors Considered To Be Small Entities
    One commenter responded to FRA's request for comment on the number
of small contractors impacted by this rule. The National Railroad
Construction and Maintenance Association (NRC) responded that FRA's
estimates appear reasonable. This commenter further noted that it was
their understanding that ``the 600+ other contractors generally consist
of extremely small companies, some of which may be more accurately
thought of as `two guys and a pickup truck,' however the NRC is not
aware of any comprehensive listing of these small companies.''
(g) Impact on Commuter Operations
    APTA noted in its comment that most ``of the public agencies
providing commuter rail services are small entities and contract all or
a significant amount of the operations to one or more specialized rail
service contractors. The contracts typically specify that any training
or qualifications, for example to meet FRA regulations, is the
responsibility of the contractor. These types of public agencies would
not be knowledgeable on training costs or in a position to estimate
their cost to develop and implement a training program of this type.
Contracting out the entire training program or adopting a model program
with input from their contractors would likely be a solution for the
small operators. For most, contracting out the entire training program
would be prohibitively expensive for a small entity.''
    By FRA's definition of a small entity, only two commuter railroads
would be considered to be small entities, which represent approximately
8% of the total number of commuter railroads. (See FRA policy on small
entities at 68 FR 24891 (May 9, 2003)). These two entities are very
different from all of the other commuter railroads. They are primarily
event- or seasonal destination-based passenger rail transportation
(e.g., scheduled service to sporting events). One of the two entities
is primarily contracted by a university to operate trains to football
games. Therefore, all of the train and engine crew training would be
conducted by a Class III railroad, which should currently be compliant
with all federally mandated training. The function of the conductors is
carried out by volunteers who should also be compliant with part 242.
The additional burden from this final rule should only be from the
adoption of a model training program and not significant. The second
small entity that is classified as a commuter operation is owned by a
larger holding company. This entity began operation in 2011, running
trains Friday through Monday primarily for racetrack attendees. The
entity does operate year round with activities that include seasonal
ski trains. From site visits, FRA believes this second small entity is
also compliant with all federally mandated training requirements. This
railroad is an expanding operation that had made all necessary efforts
to be compliant with FRA regulations. The additional burden for this
entity should also only be from the adoption of a model training
program and any necessary modifications.
(3) A Description and an Estimate of the Number of Small Entities to
Which the Rule Will Apply or an Explanation of Why No Such Estimate is
Available
    ``Small entity'' is defined in 5 U.S.C. 601 (Section 601). Section
601(3) defines a small entity as having the same meaning as ``small
business concern'' under Section 3 of the Small Business Act. This
includes any small business concern that is independently owned and
operated, and is not dominant in its field of operation. Section 601(4)
includes within the definition of small entities not-for-profit
enterprises that are independently owned and operated, and are not
dominant in their fields of operation. Additionally, Section 601(5)
defines small entities as governments of cities, counties, towns,
townships, villages, school districts, or special districts with
populations less than 50,000. The U.S. Small Business Administration
(SBA) stipulates in its size standards that the largest a railroad
business firm that is for-profit may be, and still be classified as a
small entity, is 1,500 employees for ``line haul operating railroads''
and 500

employees for ``switching and terminal establishments.''
    Federal agencies may adopt their own size standards for small
entities in consultation with SBA and in conjunction with public
comment. Pursuant to that authority, FRA has published a final policy
that formally establishes small entities as railroads that meet the
line haulage revenue requirements of a Class III railroad.\11\ The
revenue requirements are currently $20 million or less in annual
operating revenue. The $20 million limit (which is adjusted by applying
the railroad revenue deflator adjustment) \12\ is based on the Surface
Transportation Board's (STB) threshold for a Class III railroad
carrier. FRA is using the STB's threshold in its definition of small
entities for railroads affected by this rule. FRA has also adopted the
STB threshold for Class III railroad carriers as the size standard for
railroad contractors.\13\ FRA estimates that 720 railroads will be
affected by this final rule. This number equals the number of railroads
that reported to FRA in 2011, minus those railroads that are tourist,
scenic, excursion, or historic railroads and are not part of the
general system (these railroads are exempt from the rule). Of those
railroads, 44 are Class I, Class II, commuter, and intercity passenger
railroads. The remaining 676 railroads are therefore assumed to be
small railroads for the purpose of this assessment. It is important to
note that in the RIA for the final rule, FRA has not revised the number
of railroads used in these analyses to provide better transparency in
the comparison of the analyses for the NPRM and the final rule. The
final rule will affect all employers of safety-related railroad
employees, which, in addition to railroads of all sizes, includes
contractors and subcontractors who are engaged to perform safety-
related duties on railroads. FRA assumes in its RIA that approximately
795 railroad contractors and subcontractors exist, based on
conversations with industry experts. That figure of 795 includes 155
well-established track and signal maintenance contractors, 500 very
small (1-4 employee companies) or relatively new track and signal
maintenance contractors, and another 140 contractors who do not perform
track or signal maintenance. FRA has previously clarified its
definition of small entity with respect to contractors, stating that
FRA defines railroad contractors that meet the income level established
for Class III railroads as small entities. For the purpose of this
analysis, FRA conservatively assumes that about 10 of these contractors
have annual revenues in excess of $20 million, leaving 785 contractors
that are considered small entities that may be affected by this
proposed rule. FRA requested comments on this assumption and any
information regarding the number of small contractors affected by this
proposal. As noted above, FRA did receive one comment on this estimate
and is using it for the purpose of this analysis.
---------------------------------------------------------------------------

    \11\ See 68 FR 24891 (May 9, 2003); 49 CFR part 209, appendix C.
    \12\ For further information on the calculation of the specific
dollar limit, please see 49 CFR part 1201.
    \13\ See 68 FR 24891 (May 9, 2003).
---------------------------------------------------------------------------

    Therefore, the total estimate of the number of small entities that
the rule may affect equals 676 Class III railroads plus approximately
785 contractors, totaling approximately 1,459 entities. All but 6 of
the 676 Class III railroads have less than 400,000 annual employee
hours. Most contractors are businesses with less than 400,000 hours as
well.
(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 Will Be Subject to the Requirement and
the Type of Professional Skills Necessary for Preparation of the Report
or Record
    The final rule will include several recordkeeping requirements that
may pertain to small entities. Each employer will be required to
maintain records that form the basis of the training and qualification
determinations of each operator of roadway maintenance machines
equipped with a crane that it employs. Each employer will be required
to maintain records to demonstrate the qualification status of each
safety-related railroad employee. Each employer that conducts periodic
oversight in accordance with the final rule will be required to keep a
record of the date, time, place, and result of each test or inspection.
Each railroad using contractors to supply the railroad with safety-
related railroad employees will be required to maintain a list at its
system headquarters with information regarding each contractor used
unless:
    (1) The railroad qualifies each of the contractor's safety-related
railroad employees used.
    (2) The railroad maintains the training records for each of the
contractor's safety-related railroad employees used.
    The burden of maintaining a list of contractors is certainly
significantly less than the burden of training each contractor employee
and maintaining records for each contractor employee. Given the
propensity for shortline railroads to hire smaller contractors to
handle segments of the railroad's safety-related work (for example,
signal or track maintenance), keeping up-to-date information regarding
the contractors recently used is a reasonable, and not overly taxing,
burden on small entities. FRA believes that a professional or
administrative employee will be capable of maintaining these records.
    The final rule will require employers of safety-related railroad
employees to submit a training program to FRA for approval. Each
employer's training program will be required to include on-the-job
training where appropriate and practicable. However, FRA has given
employers the option to adopt a model program, and FRA assumes in this
assessment that nearly all small entities will adopt model programs
rather than hire training experts to develop a complete, unique
program. However, for the sake of the RIA and this assessment, FRA
assumes that any entity that adopts a model program will customize the
model program, if necessary. FRA also assumes that such customization
should require about 8 hours on average.
    Following the initial submission of the training program, employers
of safety-related railroad employees will be required to revise the
training programs, if necessary. The decision on whether to revise a
training program would be required annually and will depend on changes
in the workplace environment. When new laws, regulations, technologies,
procedures, or equipment are introduced into the workplace, for
example, it may be appropriate for training programs to be modified
accordingly. FRA assumes in the RIA accompanying the final rule that
some annual revision of training programs will be required every year
for all employers of safety-related railroad employees. Furthermore,
these annual revisions will be required to reflect the results of
annual reviews of safety data for all entities with 400,000 or more
total employee work hours annually. For purposes of this analysis, FRA
assumes that four Class III railroads and three small contractors will
surpass this threshold. One comment was received relative to it from
the NRC, which only noted that they estimated 10 contractors had 80 or
more employees.\14\
---------------------------------------------------------------------------

    \14\ Note: a company that has 400,000 or more total employee
work hours annually would have more than 190 employees.
---------------------------------------------------------------------------

    Specifically, as in the RIA, FRA assumes that two Class III
railroads will choose to develop their own programs, while the
remaining 657 Class III railroads adopt model programs. FRA

also believes that all 785 small contractors will adopt model programs.
All of the hours spent creating or revising training programs are
assumed to be incurred by training experts or craft-specific technical
experts at a cost $56.84 per hour, which is the average wage rate in
2010 dollars of professional and administrative employees for Class I
railroads as reported to the STB, multiplied by 1.75 to cover
overhead.\15\
---------------------------------------------------------------------------

    \15\ For 2011, the wage rate is $59.34 per hour.
---------------------------------------------------------------------------

    The IRFA provided a table of the cost of compliance for small
entities. The RIA for the final rule has been revised and some of these
cost estimates have also been revised. The revised estimates include
small entities. In the NPRM, FRA estimated that the average railroad
would take 160 hours to create and submit an initial program. Based on
comments received, the RIA for the final rule now estimates that it
would take 2,160 hours. However, that cost is an average cost estimate.
It is estimated that Class III railroads will create their own training
programs and FRA believes that these two small entities will spend much
less than the average railroad. The NPRM's RIA also estimated that the
annual revisions would take 40 hours per railroad to complete. The
final rule's RIA now estimates that cost at 432 hours.\16\ Again, these
two small entities will likely spend significantly less than the
average railroad. FRA is retaining the NPRM's estimate of 8 hours for
the average small entity to customize the model program.
---------------------------------------------------------------------------

    \16\ FRA initially estimated 40 hours per railroad for modifying
training programs. In its comments to the NPRM, AAR suggested 800
hours per railroad for this purpose. FRA revised its estimate
substantially to 432 hours per railroad. This estimate was developed
by using a like proportion that it had increased the time allotted
to create training programs (now 6,480 hours per railroad over 3
years). The details and explanation for this revised estimate can be
found in the RIA.
---------------------------------------------------------------------------

    This final rule also did not change the NPRM's estimate of 30 hours
for the average entity with 400,000 or more total employee work hours
annually to perform annual review and annual revisions in subsequent
years. FRA estimates that only four Class III railroads and three
contractors will be affected by this requirement. For entities that
have less than 400,000 total employee work hours annually, the RIA for
the final rule estimates that it will take 4 hours per year to perform
annual revisions in subsequent years past the implementation.
    While the final rule does not explicitly require any increase in
the amount of time that must be spent in initial or refresher training,
such increases may arise for some small entities if those entities add
substantial amounts of OJT to training programs. Since small railroads
usually have less formal training programs for their employees, this
may be the case. In the RIA for the NPRM, FRA assumed that new hires
would require 1 extra day of initial training as a result of the final
rule, and that 1 additional hour of refresher training would be
required on average for each employee. In the IRFA, FRA noted that it
was not clear to what extent the cost of additional initial training--
to whatever extent that is induced by the proposed rule--would be borne
by small entities. For the final rule, FRA has revised this estimate to
1.5 days (12 hours) of additional training for initial training for new
hires. For the refresher training, FRA has also revised the estimate to
half a day (4 hours). Small entities will likely have to incur the cost
of additional refresher training to whatever extent that will be
required.
(5) A Description of the Steps the Agency Has Taken To Minimize the
Significant Adverse Economic Impact on Small Entities Consistent With
the Objectives of Applicable Statutes, Including a Statement of
Factual, Policy, and Legal Reasons for Selecting the Alternative
Adopted in the Final Rule, and Why Each of the Other Significant
Alternatives to the Rule Considered by the Agency Was Rejected
    FRA is unaware of any significant alternatives that would meet the
intent of the RSIA and that would further reduce the economic impact on
small entities. FRA is exercising its discretion to provide the
greatest flexibility for small entities available under the RSIA.
    The process by which this final rule was developed provided
outreach to small entities. As noted earlier in the preamble, this
notice was developed in consultation with industry representatives via
the RSAC, which includes small railroad representatives. Throughout the
development of RSAC's recommendation for this rule, FRA received input
that focused discussions on issues specific to shortline and regional
railroads and contractors. The discussions yielded insight into their
concerns and this rule takes into account those concerns expressed by
small railroads during the deliberations. Several alternatives were
considered in the creation of this final rule in order to attempt to
minimize the impact on small entities. FRA and the RSAC Working Group
recognized very early on in the rulemaking recommendation process that
small entities probably do not have training experts on staff.
Requiring every small entity to create or revise a unique training
program could create a disproportionate, and possibly unnecessary,
burden on small entities because it might require the small entities to
hire a training expert to perform the task, whereas larger railroads
and contractors may already have training experts on staff. As an
alternative to requiring every entity to create unique programs, FRA
has a provision in the final rule to formalize a process for entities
(including and especially small entities) to adopt a ``model program.''
FRA envisions a model program designed with modular characteristics
reflecting best practices in training program development. Model
programs designed in modular format will allow small entities to easily
customize the training for their operational needs. Any organization,
business, or association may create a model program and submit that
model program to FRA for approval. Subsequently, any employer may then
choose to use a model program approved by FRA, rather than create its
own program. An employer adopting a model program need only inform FRA
that the employer plans to use a model program, submit the unique
identifier for the program, and include any information reflecting
customization or deviation from the model program that the employer has
undertaken. This alternative can significantly simplify and consolidate
the reporting requirements of this final rule for small entities.
    The final rule's requirements with respect to periodic oversight
also contain alternatives that were designed by FRA and the Working
Group to limit the final rule's impact on small entities. Periodic
oversight operational tests and inspections will be required by the
final rule to determine if safety-related railroad employees comply
with Federal railroad safety laws, regulations, and orders particular
to FRA-regulated personal and work group safety. FRA and the Working
Group considered requiring that periodic oversight tests and
inspections be performed by all employers of safety-related railroad
employees. However, FRA and the Working Group also recognized that
small entities may not employ supervisory employees who are qualified
as safety-related railroad employees in some or all categories of
employees. Requiring these entities to perform periodic oversight would
necessitate that those entities expand their workforce expressly for
that purpose. Additionally, one purpose of periodic oversight with
respect to this rule is to determine if changes in

training programs are necessary to close any proficiency gaps found
during oversight assessments. As such, it would make sense if the
entity that performs the training of safety-related employees is also
the entity that performs the periodic oversight tests and inspections.
    As an alternate approach designed to ensure that periodic oversight
is useful, and to minimize the burden that would arise if small
entities had to expand their workforce just to comply, several
provisions are included in the final rule that limit the extent to
which small contractors will have to conduct periodic oversight. In
general, railroads will be responsible for performing oversight for all
railroad employees and some oversight for contractors performing
safety-related duties on railroad property. Railroads will not be
required to perform operational tests of contractor employees, but
railroads will be required to perform periodic oversight inspections of
contractor employees performing safety-related duties on railroad
property. However, if a contractor employs more than 15 safety-related
railroad employees, trains its own employees, and employs supervisory
safety-related railroad employees capable of performing oversight, the
contractor (rather than the railroad) will be required to perform
periodic oversight on its own employees. Contractors who meet those
criteria may not be small entities, and contractors will only perform
periodic oversight if the contractor relied on its own training in
accordance with its training program and could therefore improve the
program with the results of the oversight program. In any case, a
railroad and contractor may voluntarily agree that the contractor will
perform the periodic oversight.
    The requirements for periodic oversight also contain provisions
designed to limit the impact on small railroads. First, if a contractor
conducts its own periodic oversight, then the railroad will not be
required to also do so. Second, railroads will not be required to
perform operational tests of contractor employees in any case, as
mentioned above. Third, a railroad will not be required to perform
oversight tests or inspections for categories of a contractor's safety-
related railroad employees if the railroad does not employ supervisory
employees who are qualified as safety-related railroad employees in
those categories. This final exception is designed mostly with small
entities in mind. Small railroads may maintain a very small workforce
and hire contractors to perform most safety-related duties. Those small
railroads that do not have supervisory employees on staff who are
capable of performing oversight of contractor employees will therefore
not be required to expand their workforces by hiring a supervisory
employee trained in the safety-related duties that the contractor
employees perform in order to perform oversight of contractor
employees.
    FRA and the Working Group also considered alternatives for small
entities in the section of the final rule requiring annual reviews of
safety data. Railroads will be required, under the final rule, to
conduct an annual review of periodic oversight data, reportable
accident/incident data, FRA inspection report data, employee training
feedback, and feedback received from labor representatives if
available. However, all railroads with less than 400,000 total employee
work hours annually will be exempt from this annual review requirement.
FRA stated in the NPRM that it is likely that all but six Class III
freight railroads would fall below this threshold and no comments were
received challenging this assumption. In Sec.  243.113(a) of this final
rule, FRA provided another alternative to decrease the impact on small
entities. The final rule exempts any employer (approximately 653 Class
III railroads and most contractors) with less than 400,000 total
employee work hours annually from the requirement to file written
program submission requirements electronically.
    In Sec.  243.101(a)(2), FRA has provided each employer with less
than 400,000 total employee work hours annually an additional year to
implement its training program. Therefore, instead of having to
implement the programs by January 1, 2018, most small entities will not
have to implement the programs until January 1, 2019, or four years
from the date of issuance of FRA's Interim Final Compliance Guide,
whichever is later. There should be cost savings from this delayed
implementation. In addition, the small railroads will benefit from
being able to observe the implementation of the larger railroads in the
industry. The additional time will permit these small entities to
spread out the cost of revising or modifying a model program too.
    FRA has identified no additional significant alternative to this
final rule that satisfies the mandate of the RSIA or meets the agency's
objective in promulgating this rule, and that would further reduce the
economic impact of the rulemaking on small entities.

C. Paperwork Reduction Act

    The information collection requirements in this final rule are
being submitted for approval to the Office of Management and Budget
(OMB) under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501 et seq.
The sections that contain the current and new information collection
requirements, and the estimated time to fulfill each requirement are as
follows:

----------------------------------------------------------------------------------------------------------------
   49 CFR section or statutory          Respondent          Total annual       Average time per    Total annual
            provision                    universe            responses             response        burden  hours
----------------------------------------------------------------------------------------------------------------
214.357--Training and              535 railroads/       535 revised          4 hours............           2,140
 Qualification Program for          contractors.         programs.
 Operators of Roadway Maintenance
 Machines (RMM) Equipped with a
 Crane.
    --Initial Training/            17,396 roadway       1,750 tr. worker     24 hours + 4 hours.         104,584
     Qualification of RMM           workers.             +15,646 tr. wrkr.
     Operators (Cranes).
    --Periodic Training/           17,396 roadway       17,396 trained       1 hour.............          17,396
     Qualification of RMM           workers.             workers.
     Operators (Cranes).
    --Records of Training/         17,396 roadway       17,396 records.....  15 minutes.........           4,349
     Qualification.                 workers.
243.101--Training Programs         56 railroads/        16 programs........  6,480 hours........         103,680
 Submissions by Employers subject   contractors/etc.
 to this Part with 400,000 total
 annual employee work hours or
 more by Jan. 1, 2018.
    --Submissions by Employers     1,459 railroads/     486 programs.......  20 hours...........           9,720
     subject to this Part with      contractors/etc.
     less than 400,000 total
     annual work hours by Jan. 1,
     2019.
    --Submission by New Employers  5 New Railroads....  5 programs.........  40 hours...........             200
     Commencing Operations after
     Jan. 1, 2018.

    --Validation documents sent    795 railroad         50 documents.......  15 minutes.........              13
     from contractors that train    contractors/
     their own safety-related       subcontractors.
     employees to railroads that
     are using their training
     programs.
    --Copies of contractor         720 railroads......  50 copies..........  10 minutes.........               8
     validation documents kept by
     railroads.
243.103--Training Programs         1,459 railroads/     73 programs........  10 hours...........             730
 required to be modified by FRA     contractors/etc.
 due to essential missing/
 inadequate components.
243.105--Optional Model Program    1,459 railroads/     4 model training     8 hours............              32
 Development--Customized Training   contractors/etc.     programs.
 Program Submissions.
243.109--Initial Training          56 railroads/        7 programs.........  10 hours...........              70
 Programs Found Non-Conforming to   contractors/etc.
 this Part by FRA--Revisions to
 Programs.
    --Written Request to Extend    56 railroads/        1 request..........  15 minutes.........             .25
     Revision/Resubmission          contractors/etc.
     Deadline.
    --Previously Approved          56 railroads/        8 informational      432 hours..........           3,456
     Programs Requiring an          contractors/etc.     filings.
     Informational Filing When
     Modified.
    --New Portions or Substantial  56 railroads.......  25 revised programs  16 hours...........             400
     Revisions to an approved
     Training Program.
    --Training Programs found      56 railroads.......  12 rev. program....  16 hours...........             192
     Deficient.
    --Copy of Additional           56 railroads.......  225 copies.........  15 minutes.........              56
     Submissions, Resubmissions,
     and Informational Filings to
     Labor (Union) Presidents.
    --Railroad Statement           56 railroads.......  25 affirming         60 minutes.........              25
     Affirming that a copy of                            statements.
     Submissions, Resubmissions,
     or Informational Filings has
     been served to Labor (Union)
     Presidents.
    --Labor comments on Railroad   5 RR labor           3 comments.........  4 hours............              12
     Training Program               Organizations.
     Submissions, Resubmissions,
     or Informational Filings.
243.111--Written Request by        11 tr.               3 requests.........  60 minutes.........               3
 Training Organization/Learning     organizations/
 Institution Previously Providing   Learning
 Training Services to Railroads     Institutions.
 Prior to Jan. 1, 2017, to
 Provide Such Services after Jan.
 1, 2018.
    --Revised/Resubmitted          11 tr.               2 programs.........  20 hours...........              40
     Training Program by Training   organizations/
     Organization/Learning          Learning Inst.
     Institution after found
     Deficient by FRA.
    --Informational Filing by      11 tr.               1 filing...........  432 hours..........             432
     Training Organization/         organizations/
     Learning Institution due to    Learning Inst.
     New Federal Laws/Regulations/
     Order or New Technologies/
     Procedures/Equipment.
    --New Portions or Revisions    11 tr.               2 programs.........  20 hours...........              40
     to Training Organization/      organizations/
     Learning Institution           Learning Inst.
     Training Program Found
     Deficient.
    --Safety Related Employees     11 tr.               1,600 employees +    8 hours + 5 minutes          12,933
     Instructed by Training         organizations/       1,600 records.
     Organizations/Records.         Learning Inst.
    --Request to Training          11 tr.               200 requests + 200   5 minutes + 5                    34
     Organization/Learning          organizations.       records.             minutes.
     Institution by Student to     /Learning Inst.....
     Provide Transcript or Record.
243.113--Required Employer         56 RRs/contractors/  16 letters.........  15 minutes.........               4
 Information Sent to FRA Prior to   learning
 First Electronic Submission        institution.
 (Employers with 400,000 Annual    /associations......
 Work Hours or More).
243.201--Designation of Existing   56 railroads/        13 lists...........  15 minutes.........               5
 Safety-related Employees by Job    contractors.
 Category--Lists (Employer with
 400,000 Annual Work Hours or
 More).
    --Written Request to Extend    56 railroads/        3 requests.........  60 minutes.........               3
     Deadline for Designation       contractors.
     List by These Employers.
    --Designation of Existing      1,459 railroads/     486 lists..........  15 minutes.........             122
     Safety-related Employees by    contractors/etc.
     Job Category--Lists
     (Employer with Less than
     400,000 Annual Work Hours).
    --Training of Newly Hired      56 railroads/        114 trained          8 hours + 15                    941
     Employees or Those Assigned    contractors.         employees + 114      minutes.
     New Safety-related Duties                           records.
     and Records.
    --Requests for Relevant        56 railroads/        11 requests + 11     5 minutes + 5                     2
     Qualification or Training      contractors.         records.             minutes.
     Record from an Entity Other
     Than Current Employer.
    --Testing of Employees When    56 railroads/        68 tests + 68        8 hours + 30                    578
     Current Record of Training     contractors.         records.             minutes.
     is Unavailable.
    --Testing of Employees Who     56 railroads/        68 tests + 68        8 hours +..........             578
     Have Not Received Initial/     contractors.         records.            30 minutes.........
     Periodic Training or Who
     Have Not Performed the
     Necessary Safety-Related
     Duties for An Occupational
     Category or Subcategory in
     the Previous 180 Days.
243.203--Electronic                56 RRs/contractors.  20 systems.........  120 hours..........           2,400
 Recordkeeping--Systems Set Up to
 Meet FRA Requirements.
    --Transfer of Records to       56 RRs/contractors.  20 records.........  15 minutes.........               5
     Successor Employer.
243.205--Modified Training         56 railroads/        1 modified programs  40 hours...........              40
 Resulting from Periodic            contractors.
 Oversight Tests and Inspections.
    --Periodic Tests and           56 railroads/        8,600 tests/         10 minutes.........           1,433
     Inspections.                   contractors.         Insections.

    --RR Identification of         56 railroads/        10 identification..  5 minutes..........               1
     Supervisory Employees Who      contractors.
     Conduct Periodic Oversight
     Tests by Category/
     Subcategory.
    --Contractor Periodic Tests/   56 railroads/        4,695 tests/         20 minutes.........           1,565
     Inspections Conducted by RR    contractors.         inspections.
     Supervisory Employees.
    --Notification by RR of        56 railroads/        175 notices + 175    5 minutes..........              30
     Contractor Employee Non-       contractors.         notices.
     Compliance with Federal Laws/
     Regulations/Orders to
     Employee and Employee's
     Employer.
    --Contractor conduct of        11 contractors.....  795 tests/           10 minutes.........             133
     Periodic Oversight Tests/                           inspections.
     Inspections of Its Safety-
     related Employees.
    --Contractor Direct Training   11 contractors.....  45 trained           8 hours............             360
     of Its Employees for                                employees.
     Qualifying Those Employees
     to Perform Safety-related
     Duties.
    --Employer Records of          56 railroads/        5,490 records......  5 minutes..........             458
     Periodic Oversight.            contractors.
243.207--Written Annual Review of  18 railroads.......  4 reviews..........  20 hours...........              80
 Safety Data (RRs with 400,000
 Annual Employee Work Hours or
 More).
    --RR Copy of Written Annual    18 railroads.......  4 review copies....  20 minutes.........               1
     Review at System
     Headquarters.
    --RR Designation of Person(s)  18 railroads.......  48 designations....  15 minutes.........              12
     to Conduct Written Annual
     Review.
    --Adjustments to Initial/      18 railroads.......  1 adjusted program.  1 hour.............               1
     Refresher Training Based
     Upon Results of Written
     Annual Review.
    --RR Notification to           18 railroads.......  2 notifications....  15 minutes.........               1
     Contractor of Relevant
     Training Program Adjustments.
    --Contractor Adjustment of     38 contractors.....  1 adjusted program.  20 hours...........              20
     Its Training Program Based
     on RR Information.
243.209--Railroad Maintained List  56 railroads.......  11 lists...........  30 minutes.........               6
 of Contractors Utilized.
    --Updated Lists of             56 railroads.......  1 list.............  15 minutes.........             .25
     Contractors.
----------------------------------------------------------------------------------------------------------------

    All estimates include the time for reviewing instructions;
searching existing data sources; gathering or maintaining the needed
data; and reviewing the information. For information or a copy of the
paperwork package submitted to OMB, contact Mr. Robert Brogan at 202-
493-6292 or Ms. Kimberly Toone at<PHONE_NUMBER> or via email at the
following addresses<EMAIL_ADDRESS><EMAIL_ADDRESS>    Organizations and individuals desiring to submit comments on the
collection of information requirements should direct them to the Office
of Management and Budget, Office of Information and Regulatory Affairs,
Washington, DC 20503, Attention: FRA Desk Officer. Comments may also be
sent via email to the Office of Management and Budget at the following
address<EMAIL_ADDRESS>    OMB is required to make a decision concerning the collection of
information requirements contained in this final rule between 30 and 60
days after publication of this document in the Federal Register.
Therefore, a comment to OMB is best assured of having its full effect
if OMB receives it within 30 days of publication.
    FRA cannot impose a penalty on persons for violating information
collection requirements which do not display a current OMB control
number, if required. FRA intends to obtain current OMB control numbers
for any new information collection requirements resulting from this
rulemaking action prior to the effective date of this final rule. The
OMB control number, when assigned, will be announced by separate notice
in the Federal Register.

D. Federalism Implications

    Executive Order 13132, ``Federalism'' (64 FR 43255, Aug. 10, 1999),
requires FRA to develop an accountable process to ensure ``meaningful
and timely input by State and local officials in the development of
regulatory policies that have federalism implications.'' ``Policies
that have federalism implications'' are defined in the Executive Order
to include regulations that have ``substantial direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government.'' Under Executive Order 13132, the agency
may not issue a regulation with federalism implications that imposes
substantial direct compliance costs and that is not required by
statute, unless the Federal government provides the funds necessary to
pay the direct compliance costs incurred by State and local
governments, the agency consults with State and local governments, or
the agency consults with State and local government officials early in
the process of developing the regulation. Where a regulation has
federalism implications and preempts State law, the agency seeks to
consult with State and local officials in the process of developing the
regulation.
    This final rule has been analyzed in accordance with the principles
and criteria contained in Executive Order 13132. This final rule would
not have a substantial effect on the States or their political
subdivisions; it would not impose any compliance costs; and it would
not affect the relationships between the Federal government and the
States or their political subdivisions, or the distribution of power
and responsibilities among the various levels of government. Therefore,
the consultation and funding requirements of Executive Order 13132 do
not apply.
    However, this final rule could have preemptive effect by operation
of law under certain provisions of the Federal railroad safety
statutes, specifically the former Federal Railroad Safety Act of 1970,
repealed and recodified at 49 U.S.C. 20106. Section 20106 provides that
States may not adopt or continue in effect any law, regulation, or
order related to railroad safety or security that covers the subject
matter of a regulation

prescribed or order issued by the Secretary of Transportation (with
respect to railroad safety matters) or the Secretary of Homeland
Security (with respect to railroad security matters), except when the
State law, regulation, or order qualifies under the ``essentially local
safety or security hazard'' exception to sec. 20106.
    In sum, FRA has analyzed this final rule in accordance with the
principles and criteria contained in Executive Order 13132. As
explained above, FRA has determined that this final rule has no
federalism implications, other than the possible preemption of State
laws under Federal railroad safety statutes, specifically 49 U.S.C.
20106. Accordingly, FRA has determined that preparation of a federalism
summary impact statement for this final rule is not required.

E. International Trade Impact Assessment

    The Trade Agreement Act of 1979 prohibits Federal agencies from
engaging in any standards or related activities that create unnecessary
obstacles to the foreign commerce of the United States. Legitimate
domestic objectives, such as safety, are not considered unnecessary
obstacles. The statute also requires consideration of international
standards and where appropriate, that they be the basis for U.S.
standards.
    This final rule is purely domestic in nature and is not expected to
affect trade opportunities for U.S. firms doing business overseas or
for foreign firms doing business in the United States.

F. Environmental Impact

    FRA has evaluated this rule in accordance with its ``Procedures for
Considering Environmental Impacts'' (FRA's Procedures) (64 FR 28545,
May 26, 1999) as required by the National Environmental Policy Act (42
U.S.C. 4321 et seq.), other environmental statutes, Executive Orders,
and related regulatory requirements. FRA has determined that this final
rule is not a major FRA action (requiring the preparation of an
environmental impact statement or environmental assessment) because it
is categorically excluded from detailed environmental review pursuant
to section 4(c)(20) of FRA's Procedures. See 64 FR 28547 (May 26,
1999).
    In accordance with section 4(c) and (e) of FRA's Procedures, the
agency has further concluded that no extraordinary circumstances exist
with respect to this regulation that might trigger the need for a more
detailed environmental review. As a result, FRA finds that this final
rule is not a major Federal action significantly affecting the quality
of the human environment.

G. Unfunded Mandates Reform Act of 1995

    Pursuant to section 201 of the Unfunded Mandates Reform Act of 1995
(Pub. L. 104-4, 2 U.S.C. 1531), each Federal agency ``shall, unless
otherwise prohibited by law, assess the effects of Federal regulatory
actions on State, local, and tribal governments, and the private sector
(other than to the extent that such regulations incorporate
requirements specifically set forth in law).'' Section 202 of the Act
(2 U.S.C. 1532) further requires that ``before promulgating any general
notice of proposed rulemaking that is likely to result in the
promulgation of any rule that includes any Federal mandate that may
result in expenditure by State, local, and tribal governments, in the
aggregate, or by the private sector, of $100,000,000 or more (adjusted
annually for inflation) in any 1 year, and before promulgating any
final rule for which a general notice of proposed rulemaking was
published, the agency shall prepare a written statement'' detailing the
effect on State, local, and tribal governments and the private sector.
For the year 2010, this monetary amount of $100,000,000 has been
adjusted to $143,100,000 to account for inflation. This final rule
would not result in the expenditure of more than $143,100,000 by the
public sector in any one year, and thus preparation of such a statement
is not required.

H. Energy Impact

    Executive Order 13211 requires Federal agencies to prepare a
Statement of Energy Effects for any ``significant energy action.'' 66
FR 28355 (May 22, 2001). Under the Executive Order, a ``significant
energy action'' is defined as any action by an agency (normally
published in the Federal Register) that promulgates or is expected to
lead to the promulgation of a final rule or regulation, including
notices of inquiry, advance notices of proposed rulemaking, and notices
of proposed rulemaking: (1)(i) That is a significant regulatory action
under Executive Order 12866 or any successor order, and (ii) is likely
to have a significant adverse effect on the supply, distribution, or
use of energy; or (2) that is designated by the Administrator of the
Office of Information and Regulatory Affairs as a significant energy
action. FRA has evaluated this final rule in accordance with Executive
Order 13211. FRA has determined that this final rule is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. Consequently, FRA has determined that this final rule is not
a ``significant energy action'' within the meaning of Executive Order
13211.

I. Privacy Act

    Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the comment (or signing the document,
if submitted on behalf of an association, business, labor union, etc.).
See http://www.regulations.gov/#!privacyNotice for the privacy notice
of regulations.gov or interested parties may review DOT's complete
Privacy Act Statement in the Federal Register published on April 11,
2000 (65 FR 19477).

List of Subjects

49 CFR Part 214

    Bridges, Occupational safety and health, Penalties, Railroad
safety, Reporting and recordkeeping requirements.

49 CFR Part 232

    Railroad power brakes, Railroad safety, Two-way end-of-train
devices.

49 CFR Part 243

    Administrative practice and procedure, Penalties, Railroad
employees, Railroad safety, Reporting and recordkeeping requirements.

The Final Rule

    For the reasons discussed in the preamble, FRA amends chapter II,
subtitle B of title 49 of the Code of Federal Regulations as follows:

PART 214--[AMENDED]

0
1. The authority citation for part 214 is revised to read as follows:

    Authority:  49 U.S.C. 20103, 20107, 21301, 31304, 28 U.S.C.
2461, note; and 49 CFR 1.89.

Subpart A--General

0
2. Section 214.7 is amended by adding a definition in alphabetical
order for roadway maintenance machines equipped with a crane to read as
follows:

Sec.  214.7  Definitions.

* * * * *
    Roadway maintenance machines equipped with a crane means any
roadway maintenance machine equipped with a crane or boom that can
hoist, lower, and horizontally move a suspended load.
* * * * *

Subpart C--Roadway Worker Protections

0
3. Section 214.341 is amended by revising paragraph (b)(2) to read as
follows:

Sec.  214.341  Roadway maintenance machines.

* * * * *
    (b) * * *
    (2) No roadway worker shall operate a roadway maintenance machine
without having knowledge of the safety instructions applicable to that
machine. For purposes of this paragraph, the safety instructions
applicable to that machine means:
    (i) The manufacturer's instruction manual for that machine; or
    (ii) The safety instructions developed to replace the
manufacturer's safety instructions when the machine has been adapted
for a specific railroad use. Such instructions shall address all
aspects of the safe operation of the crane and shall be as
comprehensive as the manufacturer's safety instructions they replace.
* * * * *

0
4. Section 214.357 is added to read as follows:

Sec.  214.357  Training and qualification for operators of roadway
maintenance machines equipped with a crane.

    (a) In addition to the general training and qualification
requirements for operators of roadway maintenance machines set forth in
Sec. Sec.  214.341 and 214.355 of this subpart, each employer shall
adopt and comply with a training and qualification program for
operators of roadway maintenance machines equipped with a crane to
ensure the safe operation of such machines.
    (b) Each employer's training and qualification program for
operators of roadway maintenance machines equipped with a crane shall
require initial and periodic qualification of each operator of a
roadway maintenance machine equipped with a crane and shall include:
    (1) Procedures for determining that the operator has the skills to
safely operate each machine the person is authorized to operate; and
    (2) Procedures for determining that the operator has the knowledge
to safely operate each machine the person is authorized to operate.
Such procedures shall determine that either:
    (i) The operator has knowledge of the safety instructions (i.e.,
the manufacturer's instruction manual) applicable to that machine; or
    (ii) The operator has knowledge of the safety instructions
developed to replace the manufacturer's safety instructions when the
machine has been adapted for a specific railroad use. Such instructions
shall address all aspects of the safe operation of the crane and shall
be as comprehensive as the manufacturer's safety instructions they
replace.
    (c) Each employer shall maintain records that form the basis of the
training and qualification determinations of each operator of roadway
maintenance machines equipped with a crane that it employs.
    (d) Availability of records: Each employer required to maintain
records under this part shall make all records available for inspection
and copying/photocopying to representatives of FRA, upon request during
normal business hours.
    (e) Training conducted by an employer in accordance with operator
qualification and certification required by the Department of Labor (29
CFR 1926.1427) may be used to satisfy the training and qualification
requirements of this section.

PART 232--[AMENDED]

0
5. The authority citation for part 232 is revised to read as follows:

    Authority:  49 U.S.C. 20102-20103, 20107, 20133, 20141, 20301-
20303, 20306, 21301-21302, 31304, 28 U.S.C. 2461, note; and 49 CFR
1.89.

Subpart C--Inspection and Testing Requirements

0
6. Section 232.203 is amended by revising paragraphs (b)(6)(iv) and
(e)(6) through (8) to read as follows:

Sec.  232.203  Training requirements.

* * * * *
    (b) * * *
    (6) * * *
    (iv) Any combination of the training or testing contained in
paragraphs (b)(6)(i) through (b)(6)(iii) of this section and paragraphs
(b)(3) through (b)(5) of this section may be used to satisfy the
training and testing requirements for an employee in accordance with
this paragraph.
* * * * *
    (e) * * *
    (6) The tasks required to be performed under this part which the
employee is deemed qualified to perform;
    (7) Identification of the person(s) determining that the employee
has successfully completed the training necessary to be considered
qualified to perform the tasks identified in paragraph (e)(6) of this
section; and
    (8) The date that the employee's status as qualified to perform the
tasks identified in paragraph (e)(6) of this section expires due to the
need for refresher training.
* * * * *

0
7. Add part 243 to read as follows:

PART 243--TRAINING, QUALIFICATION, AND OVERSIGHT FOR SAFETY-RELATED
RAILROAD EMPLOYEES

Subpart A--General
Sec.
243.1 Purpose and scope.
243.3 Application and responsibility for compliance.
243.5 Definitions.
243.7 Penalties and consequences for noncompliance.
Subpart B--Program Components and Approval Process
243.101 Employer program required.
243.103 Training components identified in program.
243.105 Optional model program development.
243.107 Training program submission, introductory information
required.
243.109 Training program submission, review, and approval process.
243.111 Approval of programs filed by training organizations or
learning institutions.
243.113 Electronic and written program submission requirements.
Subpart C--Program Implementation and Oversight Requirements
243.201 Employee qualification requirements.
243.203 Records.
243.205 Periodic oversight.
243.207 Annual review.
243.209 Railroad maintained list of contractors utilized.
Appendix to Part 243--Schedule of Civil Penalties

    Authority: 49 U.S.C. 20103, 20107, 20131-20155, 20162, 20301-
20306, 20701-20702, 21301-21304, 21311; 28 U.S.C. 2461, note; and 49
CFR 1.89.

Subpart A--General

Sec.  243.1  Purpose and scope.

    (a) The purpose of this part is to ensure that any person employed
by a railroad or a contractor of a railroad as a safety-related
railroad employee is trained and qualified to comply with any relevant
Federal railroad safety laws, regulations, and orders, as well as any
relevant railroad rules and procedures promulgated to implement those
Federal railroad safety laws, regulations, and orders.
    (b) This part contains the general minimum training and
qualification requirements for each category and subcategory of safety-
related railroad employee, regardless of whether the employee is
employed by a railroad or

a contractor of a railroad. Contractors shall coordinate with railroads
and comply with the contents of this part, including those aspects of
training that are specific to the contracting railroad's rules and
procedures.
    (c) The requirements in this part do not exempt any other
requirement in this chapter.
    (d) Unless otherwise noted, this part augments other training and
qualification requirements contained in this chapter.
    (e) The requirements in this part do not address hazardous
materials training of ``hazmat employees'' as defined in 49 CFR 171.8
as such training is required pursuant to 49 CFR part 172, subpart H.

Sec.  243.3  Application and responsibility for compliance.

    (a) This part applies to all railroads, contractors of railroads,
and training organizations or learning institutions that train safety-
related railroad employees except:
    (1) Railroads or contractors of railroads that operate only on
track inside an installation that is not part of the general railroad
system of transportation (i.e., plant railroads, as defined in Sec.
243.5);
    (2) Tourist, scenic, historic, or excursion operations that are not
part of the general railroad system of transportation as defined in
Sec.  243.5; or
    (3) Rapid transit operations in an urban area that are not
connected to the general railroad system of transportation.
    (b) Although the duties imposed by this part are generally stated
in terms of the duty of a railroad, each person, including a contractor
for a railroad, who performs any duty covered by this part, shall
perform that duty in accordance with this part.

Sec.  243.5  Definitions.

    As used in this part--
    Administrator means the Administrator of the Federal Railroad
Administration or the Administrator's delegate.
    Associate Administrator means the Associate Administrator for
Railroad Safety and Chief Safety Officer of the Federal Railroad
Administration or that person's delegate as designated in writing.
    Calendar year means the period of time beginning on January 1 and
ending on December 31 of each year.
    Contractor means a person under contract with a railroad,
including, but not limited to, a prime contractor or a subcontractor.
    Designated instructor means a person designated as such by an
employer, training organization, or learning institution, who has
demonstrated, pursuant to the training program submitted by the
employer, training organization, or learning institution, an adequate
knowledge of the subject matter under instruction and, where
applicable, has the necessary experience to effectively provide formal
training of the subject matter.
    Employer means a railroad or a contractor of a railroad that
employs at least one safety-related railroad employee.
    Formal training means training that has a structured and defined
curriculum, and which provides an opportunity for training participants
to have questions timely answered during the training or at a later
date. In the context of this part, formal training may include, but is
not limited to, classroom, computer-based, correspondence, on-the-job,
simulator, or laboratory training.
    Knowledge-based training is a type of formal training that is not
task-based and is intended to convey information required for a safety-
related railroad employee to comply with Federal railroad safety laws,
regulations, and orders, as well as any relevant railroad rules and
procedures promulgated to implement those Federal railroad safety laws,
regulations, and orders.
    On-the-job training (OJT) means job training that occurs in the
workplace, i.e., the employee learns the job while doing the job.
    Person means an entity of any type covered under 1 U.S.C. 1,
including, but not limited to, the following: A railroad; a manager,
supervisor, official, or other employee or agent of a railroad; any
owner, manufacturer, lessor, or lessee of railroad equipment, track, or
facilities; any independent contractor providing goods or services to a
railroad; and any employee of such owner, manufacturer, lessor, lessee,
or independent contractor.
    Plant railroad means a plant or installation that owns or leases a
locomotive, uses that locomotive to switch cars throughout the plant or
installation, and is moving goods solely for use in the facility's own
industrial processes. The plant or installation could include track
immediately adjacent to the plant or installation if the plant railroad
leases the track from the general system railroad and the lease
provides for (and actual practice entails) the exclusive use of that
trackage by the plant railroad and the general system railroad for
purposes of moving only cars shipped to or from the plant. A plant or
installation that operates a locomotive to switch or move cars for
other entities, even if solely within the confines of the plant or
installation, rather than for its own purposes or industrial processes,
will not be considered a plant railroad because the performance of such
activity makes the operation part of the general railroad system of
transportation.
    Qualified means that a person has successfully completed all
instruction, training, and examination programs required by both the
employer and this part, and that the person, therefore, may reasonably
be expected to proficiently perform his or her duties in compliance
with all Federal railroad safety laws, regulations, and orders.
    Refresher training means periodic retraining required by an
employer for each safety-related railroad employee to remain qualified.
    Safety-related duty means either a safety-related task or a
knowledge-based prohibition that a person meeting the definition of a
safety-related railroad employee is required to comply with, when such
duty is covered by any Federal railroad safety law, regulation, or
order.
    Safety-related railroad employee means an individual who is engaged
or compensated by an employer to:
    (1) Perform work covered under the hours of service laws found at
49 U.S.C. 21101, et seq.;
    (2) Perform work as an operating railroad employee who is not
subject to the hours of service laws found at 49 U.S.C. 21101, et seq.;
    (3) In the application of parts 213 and 214 of this chapter,
inspect, install, repair, or maintain track, roadbed, and signal and
communication systems, including a roadway worker or railroad bridge
worker as defined in Sec.  214.7 of this chapter;
    (4) Inspect, repair, or maintain locomotives, passenger cars or
freight cars;
    (5) Inspect, repair, or maintain other railroad on-track equipment
when such equipment is in a service that constitutes a train movement
under part 232 of this chapter;
    (6) Determine that an on-track roadway maintenance machine or hi-
rail vehicle may be used in accordance with part 214, subpart D of this
chapter, without repair of a non-complying condition;
    (7) Directly instruct, mentor, inspect, or test, as a primary duty,
any person while that other person is engaged in a safety-related task;
or
    (8) Directly supervise the performance of safety-related duties in
connection with periodic oversight in accordance with Sec.  243.205.

    Safety-related task means a task that a person meeting the
definition of a safety-related railroad employee performs, when such
task is covered by any Federal railroad safety law, regulation, or
order.
    Task-based training means a type of formal training with a primary
focus on teaching the skills necessary to perform specific tasks that
require some degree of neuromuscular coordination.
    Tourist, scenic, historic, or excursion operations that are not
part of the general railroad system of transportation means a tourist,
scenic, historic, or excursion operation conducted only on track used
exclusively for that purpose (i.e., there is no freight, intercity
passenger, or commuter passenger railroad operation on the track).

Sec.  243.7  Penalties and consequences for noncompliance.

    (a) A person who violates any requirement of this part, or causes
the violation of any such requirement, is subject to a civil penalty of
at least $650 and not more than $25,000 per violation, except that:
Penalties may be assessed against individuals only for willful
violations, and, where a grossly negligent violation or a pattern of
repeated violations has created an imminent hazard of death or injury
to persons, or has caused death or injury, a penalty not to exceed
$100,000 per violation may be assessed. Each day a violation continues
shall constitute a separate offense. See Appendix A to this part for a
statement of agency civil penalty policy.
    (b) A person who violates any requirement of this part or causes
the violation of any such requirement may be subject to
disqualification from all safety-sensitive service in accordance with
part 209 of this chapter.
    (c) A person who knowingly and willfully falsifies a record or
report required by this part may be subject to criminal penalties under
49 U.S.C. 21311.

Subpart B--Program Components and Approval Process

Sec.  243.101  Employer program required.

    (a)(1) Effective January 1, 2018, each employer conducting
operations subject to this part with 400,000 total employee work hours
annually or more shall submit, adopt, and comply with a training
program for its safety-related railroad employees.
    (2) Effective January 1, 2019 or four years from the date of
issuance of FRA's Interim Final Compliance Guide, whichever is later,
each employer conducting operations subject to this part with less than
400,000 total employee work hours annually shall submit, adopt, and
comply with a training program for its safety-related railroad
employees.
    (b) Except for an employer subject to the requirement in paragraph
(a)(2) of this section, an employer commencing operations subject to
this part after January 1, 2018 shall submit a training program for its
safety-related railroad employees prior to commencing operations. Upon
commencing operations, the employer shall adopt and comply with the
training program.
    (c) In the program required by this part, the employer shall:
    (1) Classify its safety-related railroad employees in occupational
categories or subcategories by craft, class, task, or other suitable
terminology;
    (2) Define the occupational categories or subcategories of safety-
related railroad employees. The definition of each category or
subcategory shall include a list of the Federal railroad safety laws,
regulations, and orders that the employee is required to comply with,
based on the employee's assignments and duties, broken down at a
minimum to the applicable part of the Code of Federal Regulations,
section of the United States Code, or citation to an order. The listing
of the Federal requirements shall contain the descriptive title of each
law, regulation, or order;
    (3) Create tables or utilize other suitable formats which summarize
the information required in paragraphs (c)(1) and (2) of this section,
segregated by major railroad departments (e.g., Operations, Maintenance
of Way, Maintenance of Equipment, Signal and Communications). After
listing the major departments, the tables or other formats should list
the categories and subcategories of safety-related railroad employees
within those departments;
    (4) Develop procedures to design and develop key learning points
for any task-based or knowledge-based training; and
    (5) Determine how training shall be structured, developed, and
delivered, including an appropriate combination of classroom,
simulator, computer-based, correspondence, OJT, or other formal
training. The curriculum shall be designed to impart knowledge of, and
ability to comply with applicable Federal railroad safety laws,
regulations, and orders, as well as any relevant railroad rules and
procedures promulgated to implement those applicable Federal railroad
safety laws, regulations, and orders.
    (d) On-the-job (OJT) training requirements:
    (1) If a training program has OJT, the OJT portion of the training
program shall consist of the following three key components:
    (i) A brief statement describing the tasks and related steps the
employee learning the job shall be able to perform;
    (ii) A statement of the conditions (prerequisites, tools,
equipment, documentation, briefings, demonstrations, and practice)
necessary for learning transfer; and
    (iii) A statement of the standards by which proficiency is measured
through a combination of task/step accuracy, completeness, and
repetition.
    (2) Prior to beginning the initial safety-related tasks associated
with OJT exercises, employers shall make any relevant information or
materials, such as operating rules, safety rules, or other rules
available to employees involved for referencing.
    (3) The tasks and related steps associated with OJT exercises for a
particular category or subcategory of employee shall be maintained
together in one manual, checklist, or similar document. This reference
shall be made available to all employees involved in those OJT
exercises.
    (e) Contractor's responsibility to validate approved program to a
railroad: A contractor that chooses to train its own safety-related
railroad employees shall provide each railroad that utilizes it with a
document indicating that the contractor's program of training was
approved by FRA. A contractor is being utilized by a railroad when any
of the contractor's employees conduct safety-related duties on behalf
of the railroad and the railroad does not otherwise qualify those
employees of the contractor that are allowed to perform those duties.
    (f) Railroad's responsibility to retain contractor's validation of
program: A railroad that chooses to utilize contractor employees to
perform safety-related duties and relies on contractor-provided
training as the basis for those employees' qualification to perform
those duties shall retain a document from the contractor indicating
that the contractor's program was approved by FRA. A copy of the
document required in paragraph (e) of this section satisfies this
requirement.

Sec.  243.103  Training components identified in program.

    (a) Each employer's program shall include the following components:
    (1) A unique name and identifier for each formal course of study;

    (2) A course outline for each course that includes the following:
    (i) Any prerequisites to course attendance;
    (ii) A brief description of the course, including the terminal
learning objectives;
    (iii) A brief description of the target audience, e.g., a list of
the occupational categories and subcategories of employees the course
will be delivered to;
    (iv) The method(s) of course delivery, which may include, but are
not limited to, classroom, computer-based, on-the-job, simulator,
laboratory, correspondence courses, or any combination thereof;
    (v) The anticipated course duration;
    (vi) A syllabus of the course to include any applicable U.S.C.
chapters, 49 CFR parts, or FRA orders covered in the training; and
    (vii) The kind of assessment (written test, performance test,
verbal test, OJT standard, etc.) performed to demonstrate employee
competency.
    (3) A document for each OJT program component that includes the
following:
    (i) The roles and responsibilities of each category of person
involved in the administration and implementation, guidelines for
program coordination, and the progression and application of the OJT;
    (ii) A listing of the occupational categories and subcategories of
employees for which the OJT program applies; and
    (iii) Details of the safety-related tasks and subtasks, conditions,
and standards covered by the program components.
    (4) The job title and telephone number of the employer's primary
training point(s) of contact, listed separately by major department or
employee occupational category, if applicable.
    (5) If any training organization or learning institution developed
and will deliver all or any part of the training, the employer must
include the following:
    (i) A narrative, text table, or other suitable format which
describes those portions of the training that fit into this category;
    (ii) The business name of the organization that developed and will
deliver the training; and
    (iii) The job title and telephone number of the training
organization or learning institution's primary training point of
contact.
    (b) An employer that is required to submit similar training
programs or plans pursuant to other regulatory requirements contained
elsewhere in this chapter may elect to cross-reference these other
programs or plans in the program required by this part rather than
resubmitting that similar program or plan. When any such similar
program or plan did not include the OJT components specified in
paragraph (a)(3) of this section, the employer shall supplement its
program in accordance with this part by providing that additional
information.
    (c) If an employer arranges job-related practice and practice
related feedback sessions to supplement classroom, laboratory,
simulator training, or OJT, the program shall include a description of
the supplemental training.
    (d) FRA may require modifications to any programs, including those
programs referenced in paragraph (b) of this section, if it determines
essential program components, such as OJT, or arranged practice and
feedback, are missing or inadequate.

Sec.  243.105  Optional model program development.

    (a) Any organization, business, or association may develop and
submit one or more model training programs to FRA for review and
approval so that the model program(s) may be used by multiple
employers.
    (1) Any such model program should be submitted with a unique
identifier associated with the program, or FRA will assign a unique
identifier.
    (2) The program associated with the organization's unique
identifier shall include all information required by Sec.  243.103.
    (3) Each model training program submitted to FRA prior to May 1,
2017 is considered approved and may be implemented 180 days after the
date of submission unless the Associate Administrator advises the
organization, business, or association that developed and submitted the
program that all or part of the program does not conform.
    (b) An employer that chooses to use a model program approved by FRA
is not required to submit the entire program to FRA. Instead, the
employer must submit only the unique identifier, and all other
information that is specific to that employer or deviates from the
model program.

Sec.  243.107  Training program submission, introductory information
required.

    (a) An employer who provides or is responsible for the training of
safety-related railroad employees shall submit its training program to
FRA for review and approval. Each employer shall state in its
submission whether, at the time of filing, it:
    (1) Primarily conducts the training program of its own safety-
related railroad employees, utilizing its own resources;
    (2) Conducts any training for other than its own safety-related
railroad employees;
    (3) Implements any training programs conducted by some other entity
on its behalf but adopted by that employer;
    (4) Qualifies safety-related railroad employees previously
qualified by other employers;
    (5) Qualifies safety-related railroad employees previously trained
by training organizations or learning institutions; or
    (6) Any combination of paragraph (a)(1) through (5) of this
section.
    (b) An employer who utilizes any of the options specified in
paragraphs (a)(2) through (5) of this section shall provide the
following information in its submission:
    (1) The categories of safety-related railroad employees who, at the
time of filing, will receive training utilizing one or more of these
options; and
    (2) Whether the training delivered, utilizing one or more of these
options, composes all or part of the overall training program regimen
for that category of employee at the time of filing.
    (c) An employer that elects to use training organizations or
learning institutions to train some or all of its safety-related
railroad employees, or to hire new safety-related railroad employees
that have previously received training from any training organizations
or learning institutions, shall include the full name of the training
organization or learning institution in its submission.

Sec.  243.109  Training program submission, review, and approval
process.

    (a) Initial programs. (1) Apprenticeship or similar intern
programs, that began prior to submission of the employer's initial
program filed in accordance with this part, shall be described in the
employer's initial program. Any such apprenticeship or similar intern
programs may continue, but if the Associate Administrator advises the
employer of specific deficiencies, the employer shall resubmit that
portion of its program, as revised to address specific deficiencies,
within 90 days after the date of any notice of deficiencies from the
Associate Administrator. A failure to resubmit the program with the
necessary revisions shall be considered a failure to implement a
program under this part. The Associate Administrator may extend this
90-day period upon written request.

    (2) An employer's initial program, as required by Sec.  243.101(a)
or (b), must be submitted to the Associate Administrator and is
considered approved, and may be implemented immediately upon
submission. Following submission, the Associate Administrator will
review the program and inform the employer as to whether the initial
program conforms to this part. If the Associate Administrator
determines that all or part of the program does not conform, the
Associate Administrator will inform the employer of the specific
deficiencies. The deficient portions of the non-conforming program may
remain in effect until approval of the revised program, unless FRA
provides notification otherwise. An employer shall resubmit the portion
of its program, as revised to address specific deficiencies, within 90
days after the date of any notice of deficiencies from the Associate
Administrator. A failure to resubmit the program with the necessary
revisions shall be considered a failure to implement a program under
this part. The Associate Administrator may extend this 90-day period
upon written request.
    (b) Previously approved programs require an informational filing
when modified. The employer must review its previously approved
training program and modify it accordingly when new safety-related
Federal railroad laws, regulations, or orders are issued, or new
safety-related technologies, procedures, or equipment are introduced
into the workplace and result in new knowledge requirements, safety-
related tasks, or modification of existing safety-related duties. An
employer that modifies its training program for these described reasons
shall submit an informational filing to the Associate Administrator not
later than 30 days after the end of the calendar year in which the
modification occurred, unless FRA advises otherwise to individual
employers, one or more group of employers, or the general public.
Programs modified in accordance with this paragraph, after the initial
FRA approval, are considered approved upon being modified and may be
implemented immediately. Any program deficiencies noted by the
Associate Administrator shall be addressed in the same manner as
paragraph (a)(2) of this section. The filing shall contain a summary
description of sufficient detail that FRA can associate the changes
with the employer's previously approved program, and shall include:
    (1) Descriptions of all new or refresher training courses developed
since the previous FRA approval, using the same criteria required for
an initial filing;
    (2) Explanations whenever OJT or arranged practice is added to, or
discontinued from, a program;
    (3) Explanations as to how the methods of delivering training, or
qualifying employees has changed; and
    (4) A statement from an organization, business, or association that
has submitted a model program pursuant to this part, that the
organization, business, or association has informed each employer who
requested the right to use the affected training program of the changes
and the need for the employer to comply with those changes that apply
to the employer's operation.
    (c) New portions or revisions to an approved program. Substantial
additions or revisions to a previously approved program, that are not
described as informational filings in accordance with paragraph (b) of
this section, shall be considered approved and may be implemented
immediately upon submission. Following submission, the Associate
Administrator will review the new portions or revisions to the
previously approved program and inform the employer as to whether the
modifications conform to this part. Any program deficiencies noted by
the Associate Administrator shall be addressed in the same manner as
paragraph (a)(2) of this section. The Associate Administrator will
inform the employer as to whether a new portion or revision to an
approved program conforms to this part. If the Associate Administrator
has determined that the changes do not conform to this part, the
employer shall resubmit the portion of its program, as revised to
address specific deficiencies, within 90 days after the date of any
notice of deficiencies from the Associate Administrator. Failure to
resubmit the program with the necessary revisions shall be considered a
failure to implement a program under this part. The Associate
Administrator may extend this 90-day period upon written request.
    (d) Additional submission, resubmission, or informational filing
requirement for railroads. (1) Each railroad shall:
    (i) Simultaneous with its filing with the FRA, serve a copy of any
submission, resubmission, or informational filing required pursuant to
this section, to the president of each labor organization that
represents the railroad's employees subject to this part; and
    (ii) Include in its submission, resubmission, or informational
filing required pursuant to this section a statement affirming that the
railroad has served a copy to the president of each labor organization
that represents the railroad's employees subject to this part, together
with a list of the names and addresses of persons served.
    (2) Not later than 90 days from the date a railroad files its
submission, resubmission, or informational filing required pursuant to
this section, a representative designated by the president of each
labor organization that represents railroad employees subject to this
part, may file a comment on the submission, resubmission, or
informational filing:
    (i) Each comment shall be submitted to the Associate Administrator
for Railroad Safety/Chief Safety Officer, Federal Railroad
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590; and
    (ii) The commenter shall certify that a copy of the comment was
served on the railroad.

Sec.  243.111  Approval of programs filed by training organizations or
learning institutions.

    (a) A training organization or learning institution that provides
training services for safety-related railroad employees, including
providing such training services to independent students who enroll
with such training organization or learning institution and who will
rely on the training services provided to qualify to become safety-
related railroad employees, must submit its program to FRA for review
and approval.
    (b) A training organization or learning institution that has
provided training services to employers covered by this part prior to
January 1, 2017 may continue to offer such training services without
FRA approval until January 1, 2018. The Associate Administrator may
extend this period at any time based on a written request. Such written
requests for an extension of time to submit a program should contain
any factors the training organization or learning institution wants the
Associate Administrator to consider prior to approving or disapproving
the extension.
    (c) A program submitted by a training organization or learning
institution must include all information required for an employer's
program in accordance with this part, unless the requirement could only
apply to an employer's program. The submitted program for a training
organization or learning institution must also include the following
information:
    (1) The full corporate or business name of the training
organization or learning institution;

    (2) The training organization or learning institution's primary
business and email address;
    (3) The training organization or learning institution's primary
telephone number and point of contact;
    (4) A listing of the training organization or learning
institution's designated instructors;
    (5) A resume for each designated instructor, showing how the
instructor achieved the subject-matter and training expertise necessary
to develop and deliver training to safety-related railroad employees,
unless the designated instructors are currently employed by a railroad;
    (6) A list of references of employer customers the learning
organization or training institution has provided services to in the
past; and
    (7) A brief summary statement indicating how the training
organization or learning institution determined the knowledge, skills,
and abilities necessary to develop the training courses it provides to
employers and independent students who enroll with such training
organization or learning institution in order to become safety-related
railroad employees. This brief summary should be of sufficient detail
so that FRA can ascertain the methodologies the training organization
or learning institution used during training development.
    (d) Except as specified in paragraph (b) of this section, prior
approval by the Associate Administrator is required before FRA will
accept such training as sufficient to meet the requirements of this
part. The Associate Administrator will advise the training organization
or learning institution in writing whether FRA has approved the
program. If all or part of the program is not approved by FRA, the
Associate Administrator will inform the training organization or
learning institution of specific deficiencies. At the time that the
Associate Administrator informs of any deficiencies, the Associate
Administrator will clarify whether any particular training courses
shall be considered approved.
    (e) Previously approved programs require an informational filing
when modified. The training organization or learning institution shall
review its previously approved training program and modify it
accordingly when new safety-related Federal railroad laws, regulations,
or orders are issued, or new safety-related technologies, procedures,
or equipment are introduced into the workplace and result in new
knowledge requirements, safety-related tasks, or in modifications of
existing safety-related duties. A training organization or learning
institution that modifies its training program for these described
reasons shall submit an informational filing to the Associate
Administrator not later than 30 days after the end of the calendar year
in which the modification occurred, unless FRA advises otherwise.
Programs modified in accordance with this paragraph are considered
approved upon modification and may be implemented immediately. Any
program deficiencies noted by the Associate Administrator shall be
addressed as specified in this section. The filing shall contain a
summary description of sufficient detail so that FRA can associate the
changes with the training organization's or learning institution's
previously approved program, and shall include:
    (1) Descriptions of all new or refresher training courses developed
after the previous FRA approval, using the same criteria required for
an initial filing;
    (2) Explanations whenever OJT or arranged practice is added to, or
discontinued from, a program; and
    (3) Explanations as to how the methods of delivering training, or
qualifying employees has changed.
    (f) New portions or revisions to an approved program: Substantial
additions or revisions to a previously approved program, that are not
described as informational filings in accordance with paragraph (e) of
this section, shall require prior approval by the Associate
Administrator before FRA will accept such training as sufficient to
meet the requirements of this part. The Associate Administrator will
advise the training organization or learning institution in writing
whether FRA has approved the new or revised program. If all or part of
the program is not approved by FRA, the Associate Administrator will
inform the training organization or learning institution of specific
deficiencies. At the time that the Associate Administrator informs the
training organization or learning institution of any deficiencies, the
Associate Administrator will clarify whether any particular new or
revised training courses shall be considered approved.
    (g) Training organizations and learning institutions subject to
this part are required to maintain records for each safety-related
railroad employee that attends the training, in accordance with the
recordkeeping requirements of this part.
    (h) Training organizations and learning institutions subject to
this part shall provide a student's training transcript or training
record to any employer upon request by the student.

Sec.  243.113  Electronic and written program submission requirements.

    (a) Except for an employer with less than 400,000 total employee
work hours annually, each employer, training organization, or learning
institution to which this part applies is required to file by
electronic means any program submissions required under this part in
accordance with the requirements of this section. Each organization,
business, or association that develops an optional model program in
accordance with Sec.  243.105 of this part is required to
electronically file the program in accordance with the requirements of
this section.
    (b) Prior to any person's first program submission electronically,
the person shall provide the Associate Administrator with the following
information in writing:
    (1) The name of the employer, organization, learning institution,
business, or association;
    (2) The names of two individuals, including job titles, who will be
the person's points of contact and will be the only individuals allowed
access to FRA's secure document submission site;
    (3) The mailing addresses for the person's points of contact;
    (4) The person's system or main headquarters address located in the
United States;
    (5) The email addresses for the person's points of contact; and
    (6) The daytime telephone numbers for the person's points of
contact.
    (c) A person that electronically submits an initial program,
informational filing, or new portions or revisions to an approved
program required by this part shall be considered to have provided its
consent to receive approval or disapproval notices from FRA by email.
    (d) A request for FRA review of written materials shall be
addressed to the Associate Administrator for Railroad Safety/Chief
Safety Officer, Federal Railroad Administration, 1200 New Jersey Avenue
SE., Washington, DC 20590.
    (e) FRA may electronically store any materials required by this
part regardless of whether the person that submits the materials does
so by delivering the written materials to the Associate Administrator
and opts not to submit the materials electronically.
    (f) A person that opts not to submit the materials required by this
part electronically, but provides one or more email addresses in its
submission, shall be considered to have provided consent to receive
approval or disapproval notices from FRA by email or mail.

Subpart C--Program Implementation and Oversight Requirements

Sec.  243.201  Employee qualification requirements.

    (a) Designating existing employees:
    (1) By no later than September 1, 2018, each employer with 400,000
total employee work hours annually or more in operation as of January
1, 2018, shall declare the designation of each of its existing safety-
related railroad employees by occupational category or subcategory, and
only permit designated employees to perform safety-related service in
that occupational category or subcategory. The Associate Administrator
may extend this period based on a written request.
    (2) By no later than September 1, 2019 or four years and eight
months from the date of issuance of FRA's Interim Final Compliance
Guide, whichever is later, each employer with less than 400,000 total
employee work hours annually in operation as of January 1, 2019, shall
declare the designation of each of its existing safety-related railroad
employees by occupational category or subcategory, and only permit
designated employees to perform safety-related service in that
occupational category or subcategory. The Associate Administrator may
extend this period based on a written request.
    (b) Except for an employer subject to the requirement in paragraph
(a)(2) of this section, an employer commencing operations after January
1, 2018 shall declare the designation of each of its existing safety-
related railroad employees by occupational category or subcategory
prior to beginning operations, and only permit designated employees to
perform safety-related service in that category or subcategory. Any
person designated shall have met the requirements for newly hired
employees or those assigned new safety-related duties in accordance
with paragraph (c) of this section.
    (c) Newly hired employees or those assigned new safety-related
duty:. The following requirements apply to qualifying a safety-related
railroad employee who, subsequent to the employer's designation in
accordance with paragraphs (a) and (b) of this section, is newly hired
or is to engage in a safety-related task not associated with the
employee's previous training.
    (1) Prior to an employee becoming a qualified member of an
occupational category or subcategory, the employer shall require a
safety-related railroad employee who is newly hired or is to engage in
safety-related duties not associated with the employee's previous
training to successfully complete the formal training curriculum for
that category or subcategory of safety-related railroad employee.
Successful completion of the formal training curriculum includes
passing any required examinations covering the skills and knowledge the
employee will need to possess in order to perform the safety-related
duties necessary to be a member of the occupational category or
subcategory.
    (2) If the training curriculum includes OJT, the employee shall
demonstrate, to the satisfaction of a designated instructor, OJT
proficiency by successfully completing the safety-related tasks
necessary to become a qualified member of the occupational category or
subcategory. However, as part of the OJT process and prior to
completing such training and passing the field evaluation, a person may
perform such tasks under the direct onsite observation of any qualified
person, provided the qualified person has been advised of the
circumstances and is capable of intervening if an unsafe act or non-
compliance with Federal railroad safety laws, regulations, or orders is
observed. An employee designated to provide formal training to other
employees, and who is not a designated instructor, shall be qualified
on the safety-related topics or tasks in accordance with the employer's
training program and the requirements of this part.
    (d) Employees previously qualified or trained, but not by the
current employer: If an employee has received relevant qualification or
training for a particular occupational category or subcategory through
participation in a FRA-approved training program submitted by an entity
other than the employee's current employer, that training shall satisfy
the requirements of this part:
    (1) Provided that:
    (i) A current record of training is obtained from that other
entity; or
    (ii) When a current record of training is unavailable from that
other entity, an employer performs testing to ensure the employee has
the knowledge necessary to be a member of that category or subcategory
of safety-related railroad employee; and
    (2) When the employee, in the previous 180 days, has either not
performed the safety-related duties or not received initial or periodic
training for an occupational category or subcategory, the employer
shall perform testing to ensure the employee has retained the knowledge
necessary to remain a member of that occupational category or
subcategory. In the situation where an employee's records are
unavailable and the employee is subject to testing under paragraph
(d)(1)(ii) of this section, no additional testing is required.
    (e) Refresher training requirements and options:
    (1) Beginning January 1, 2020, each employer with 400,000 total
employee work hours annually or more shall deliver refresher training
at an interval not to exceed 3 calendar years from the date of an
employee's last training event, except where refresher training is
specifically required more frequently in accordance with this chapter.
If the last training event occurs prior to FRA's approval of the
employer's training program, the employer shall provide refresher
training either within 3 calendar years from that prior training event
or no later than December 31, 2022. Each employer shall ensure that, as
part of each employee's refresher training, the employee is trained and
qualified on the application of any Federal railroad safety laws,
regulations, and orders the person is required to comply with, as well
as any relevant railroad rules and procedures promulgated to implement
those Federal railroad safety laws, regulations, and orders.
    (2) Beginning January 1, 2021 or six years from the date of
issuance of FRA's Interim Final Compliance Guide, whichever is later,
each employer with less than 400,000 total employee work hours annually
shall deliver refresher training at an interval not to exceed 3
calendar years from the date of an employee's last training event,
except where refresher training is specifically required more
frequently in accordance with this chapter. If the last training event
occurs prior to FRA's approval of the employer's training program, the
employer shall provide refresher training either within 3 calendar
years from that prior training event or no later than December 31,
2023. Each employer shall ensure that, as part of each employee's
refresher training, the employee is trained and qualified on the
application of any Federal railroad safety laws, regulations, and
orders the person is required to comply with, as well as any relevant
railroad rules and procedures promulgated to implement those Federal
railroad safety laws, regulations, and orders.

Sec.  243.203  Records.

    (a) General requirements for qualification status records;
accessibility. Each employer shall maintain records to demonstrate the
qualification status of each safety-related railroad employee that it
employs.

    (1) The records for former safety-related railroad employees shall
be accessible for 6 years at the employer's system headquarters after
the employment relationship ends.
    (2) Current employee records shall be accessible at the employer's
system headquarters.
    (b) Employee information. The records shall include the following
information concerning each such employee:
    (1) The name of the employee;
    (2) Occupational category or subcategory designations for which the
employee is deemed qualified;
    (3) The dates that each formal training course was completed;
    (4) The title of each formal training course successfully
completed;
    (5) If the safety-related railroad employee attended safety-related
training offered by a business, a training organization, or a learning
institution with an FRA-approved program, a copy of the transcript or
appropriate record from that business, training organization, or
learning institution;
    (6) The employee's OJT performance, which shall include the unique
name or identifier of the OJT program component in accordance with
Sec.  243.103, the date the OJT program component was successfully
completed, and the identification of the person(s) determining that the
employee successfully completed all OJT training necessary to be
considered qualified to perform the safety-related tasks identified
with the occupational categories or subcategories for which the
employee is designated in accordance with the program required by this
part;
    (7) The date that the employee's status is determined to be
qualified and the employee is designated to perform the safety-related
duties identified with any particular occupational categories or
subcategories, in accordance with the program required by this part;
    (8) If an employee's qualification status was transferred from
another entity with an approved program, a copy of the training record
from that other entity; and
    (9) Any additional information required by this part.
    (c) Record accessibility for other than individual employee
records. Except for records demonstrating the qualification status of
each safety-related railroad employee as described in paragraph (b) of
this section or otherwise specified in this part, each test,
inspection, annual review, or other event record required by this part
shall be accessible for 3 calendar years after the end of the calendar
year to which the event relates. Each employer shall make these records
accessible at one headquarters location within the United States,
including, but not limited to, a railroad's system headquarters, a
holding company's headquarters, a joint venture's headquarters, a
contractor's principal place of business or other headquarters located
where the contractor is incorporated. This requirement does not
prohibit an employer with divisions from also maintaining any of these
records at any division headquarters.
    (d) Availability of records. Each employer, training organization,
or learning institution required to maintain records under this part
shall:
    (1) Make all records available for inspection and copying/
photocopying to representatives of FRA, upon request during normal
business hours; and
    (2) Make an employee's records available for inspection and
copying/photocopying to that employee, former employee, or such
person's representative upon written authorization by such employee
during normal business hours.
    (e) Electronic recordkeeping. Nothing in this section precludes an
employer, a training organization, or a learning institution from
maintaining the information required to be retained under this part in
an electronic format provided that:
    (1) The employer, training organization, or learning institution
maintains an information technology security program adequate to ensure
the integrity of the electronic data storage system, including the
prevention of unauthorized access to the program logic or individual
records;
    (2) The program and data storage system must be protected by a
security system that utilizes an employee identification number and
password, or a comparable method, to establish appropriate levels of
program access meeting all of the following standards:
    (i) No two individuals have the same electronic identity; and
    (ii) A record cannot be deleted or altered by any individual after
the record is certified by the employee who created the record;
    (3) Any amendment to a record is either:
    (i) Electronically stored apart from the record that it amends; or
    (ii) Electronically attached to the record as information without
changing the original record;
    (4) Each amendment to a record uniquely identifies the person
making the amendment;
    (5) The system employed by the employer, training organization, or
learning institution for data storage permits reasonable access and
retrieval of the information in usable format when requested to furnish
data by FRA representatives; and
    (6) Information retrieved from the system can be easily produced in
a printed format which can be readily provided to FRA representatives
in a timely manner and authenticated by a designated representative of
the railroad as a true and accurate copy of the railroad's records if
requested to do so by FRA representatives.
    (f) Transfer of records. If an employer ceases to do business and
its assets will be transferred to a successor employer, it shall
transfer to the successor employer all records required to be
maintained under this part, and the successor employer shall retain
them for the remainder of the period prescribed in this part.

Sec.  243.205  Periodic oversight.

    (a) General. As part of the program required in accordance with
this part, an employer shall adopt and comply with a program to conduct
periodic oversight tests and inspections to determine if safety-related
railroad employees comply with Federal railroad safety laws,
regulations, and orders particular to FRA-regulated personal and work
group safety. The program of periodic oversight shall commence on the
day the employer files its program with FRA pursuant to Sec.
243.101(a) or on the day the employer commences operations pursuant to
Sec.  243.101(b). The data gathered through the testing and inspection
components of the program shall be used to determine whether systemic
performance gaps exist, and to determine if modifications to the
training component of the program are appropriate to close those gaps.
    (b) Locomotive engineer and conductor oversight exception. Periodic
oversight specified in this section is not required for employees
covered by parts 240 and 242 of this chapter, but a railroad shall use
results of the assessments required by those parts to determine if
changes in its training programs are necessary to close any proficiency
gaps found during those assessments.
    (c) Railroad oversight. Each railroad shall identify supervisory
employees, by category or subcategory, responsible for conducting
periodic oversight tests and inspections for the safety-related
railroad employees that it authorizes to perform safety-related duties
on its property, except a railroad is not required to:
    (1) Provide oversight for a contractor's safety-related railroad
employees if that contractor is required to conduct its own periodic
oversight because it meets

the criteria specified in paragraph (g) of this section;
    (2) Provide oversight for categories or subcategories of a
contractor's safety-related railroad employees if the railroad does not
employ supervisory employees who are qualified as safety-related
railroad employees in those categories or subcategories; or
    (3) Provide oversight for any supervisory employee identified by
the railroad as responsible for conducting oversight in accordance with
this section.
    (d) Operational test exception for a railroad. A railroad is not
required to perform operational tests of safety-related railroad
employees employed by a contractor.
    (e) Railroad oversight for contractors. A railroad may choose to
require supervisory employees to perform oversight of safety-related
railroad employees employed by a contractor either:
    (1) When oversight test and inspection sessions are scheduled
specifically to determine if safety-related employees are in compliance
with Federal railroad safety laws, regulations, and orders particular
to FRA-regulated personal and work group safety; or
    (2) When a qualified railroad supervisory employee's duties place
this person in the vicinity of one or more safety-related railroad
employees employed by a contractor and performing the oversight would
result in minimal disruption of this person's other assigned duties.
    (f) Railroad's duty to notify contractor of non-compliance. A
railroad that finds evidence of contractor employee non-compliance with
Federal railroad safety laws, regulations, and orders particular to
FRA-regulated personal and work group safety during the periodic
oversight shall provide that employee and that employee's employer with
details of the non-compliance.
    (g) Contractor oversight. Each contractor shall conduct periodic
oversight tests and inspections of its safety-related railroad
employees provided:
    (1) A contractor employs more than 15 safety-related railroad
employees;
    (2) A contractor relies on training it directly provides to its own
employees as the basis for qualifying those employees to perform
safety-related duties on a railroad; and
    (3) A contractor employs supervisory safety-related railroad
employees capable of performing oversight.
    (h) Oversight divided by agreement. Notwithstanding the
requirements of paragraphs (c) and (g) of this section, a railroad and
a contractor may agree that the contractor will provide the oversight
by specifying in the program that the railroad has trained the
contractor employees responsible for training and oversight.
    (i) Detailed records required. Each employer that conducts periodic
oversight in accordance with this section must keep a record of the
date, time, place, and result of each test or inspection. The records
shall specify each person administering tests and inspections, and each
person tested. The record shall also provide a method to record whether
the employee complied with the monitored duties, and any interventions
used to remediate non-compliance. Modifications of the program required
by Sec.  217.9 of this chapter may be used in lieu of this oversight
program, provided a railroad specifies it has done so in its program
submitted in accordance with this part.
    (j) Additional records requirement. Records required under this
section are subject to the requirements of Sec.  243.203.

Sec.  243.207  Annual review.

    (a) The purpose of this review is to determine if knowledge or
performance gaps exist in the application of Federal railroad safety
laws, regulations, and orders. This section shall apply to each
railroad once a program has been approved by FRA in accordance with
this part. This section does not apply to a railroad with less than
400,000 total employee work hours annually. This section does not apply
to employers other than railroads except as specified in paragraph (f)
of this section.
    (b) Except as provided for in paragraph (a) of this section, each
railroad that is required to conduct periodic oversight in accordance
with Sec.  243.205 is also required to conduct an annual review, as
provided in this section, and shall retain, at its system headquarters,
one copy of the written annual review.
    (c) Each railroad shall designate a person(s) who shall conduct a
written annual review. The annual review shall be designed to identify
knowledge or performance gaps in occupational categories and determine
whether adjustments to the training component of the program are the
appropriate intervention to close those gaps or otherwise improve the
effectiveness of the program. Such review shall include analysis of the
following data:
    (1) Periodic oversight data required by Sec.  243.205;
    (2) Reportable accident/incident data as defined in part 225 of
this chapter;
    (3) FRA inspection report data;
    (4) Employee training feedback received through a course evaluation
process, if such feedback is available; and
    (5) Feedback received from labor representatives, if such feedback
is available.
    (d) Based upon the results of the annual review, the designated
person(s) shall coordinate any necessary adjustments to the initial and
refresher training programs. At the railroad's option, the annual
review required under this section may be conducted in conjunction with
any periodic review required under part 217 of this chapter.
    (e) If a railroad utilizes a contractor that directly trains its
own safety-related railroad employees, the railroad shall notify the
contractor of the relevant training program adjustments made to the
railroad's program in accordance with paragraph (d) of this section.
    (f) A contractor shall use any information provided by a railroad
to adjust its training specific to the Federal railroad safety laws,
regulations, and orders particular to FRA-regulated personal and work
group safety.
    (g) Prior to September 1 of each calendar year, each railroad to
which this section applies shall complete its annual review for the
previous calendar year.

Sec.  243.209  Railroad maintained list of contractors utilized.

    (a) Each railroad utilizing contractors to supply the railroad with
safety-related railroad employees shall maintain a list, at its system
headquarters, with information regarding each contractor utilized
unless:
    (1) The railroad qualifies each of the contractor's safety-related
railroad employees utilized; and
    (2) The railroad maintains the training records for each of the
contractor's safety-related railroad employees utilized.
    (b) The listing required by paragraph (a) of this section shall
include:
    (1) The full corporate or business name of the contractor;
    (2) The contractor's primary business and email address; and
    (3) The contractor's primary telephone number.
    (c) The information required by this section shall be continuously
updated as additional contractors are utilized, and no contractor
information shall be deleted from the list unless the contractor has
not been utilized for at least 3 years from the end of the calendar
year the contractor was last utilized.

Appendix to Part 243--Schedule of Civil Penalties

          Appendix to Part 243--Schedule of Civil Penalties \1\
------------------------------------------------------------------------
           Section                  Violation         Willful violation
------------------------------------------------------------------------
           Subpart B--Program Components and Approval Process
------------------------------------------------------------------------
243.101--Employer program
 required:
    (a-c) Complete failure    $7,500-12,500         $11,000-$16,000
     to submit, adopt, or
     comply with program.
    (a-c) Partial failure to  4,500-9,500           6,500-13,000
     submit, adopt, or
     comply with program; or
     failure to correct
     deficiencies upon FRA's
     request.
    (d) OJT program           2,000-4,500           4,000-6,500
     requirements or failure
     to make reference
     materials available.
    (e-f) Program validation  2,000                 4,000
243.105 Claiming optional     2,000-4,500           4,000-6,500
 model program is FRA-
 approved, when it is not:.
243.109 Training program
 submission, review, and
 approval process:
    (a) Failure to timely     2,000-4,500           4,000-6,500
     resubmit program.
    (b) Failure to timely     2,000-4,500           4,000-6,500
     submit informational
     filing.
    (c) Failure to submit     4,500                 6,500
     new portions or
     revisions.
    (d) Railroad failure to   1,000                 2,000
     serve program.
243.111 Approval of programs
 filed by training
 organizations or learning
 institutions:
    (a-b) Claiming training   2,000-4,500           4,000-6,500
     is FRA-approved, when
     it is not.
    (c-f) FRA approved some   2,000-4,500           4,000-6,500
     training, but all
     conditions not met.
    (g-h) Records...........  1,000                 2,000
------------------------------------------------------------------------
      Subpart C--Program Implementation and Oversight Requirements
------------------------------------------------------------------------
243.201 Employee qualification requirements:
    (a-b) Failure to          1,000                 2,000
     designate an employee.
    (c-f) Other failures and  1,000                 2,000
     refresher training (per
     employee).
243.203 Records:
    (a-f) Failure to          1,000                 2,000
     maintain records (per
     employee).
243.205 Periodic oversight..  4,500-9,500           6,500-13,000
243.207 Annual review.......  4,500                 6,500
243.209 Railroad maintained   4,500                 6,500
 list of contractors
 utilized.
------------------------------------------------------------------------
\1\ A penalty may be assessed against an individual only for a willful
  violation. The Administrator reserves the right to assess a penalty of
  up to $100,000 for any violation where circumstances warrant. See 49
  CFR part 209, appendix A.

    Issued in Washington, DC, on October 31, 2014.
Melissa L. Porter,
Chief Counsel.
[FR Doc. 2014-26290 Filed 11-6-14; 8:45 am]
BILLING CODE 4910-06-P