2140-00XX -- Supporting Statement -- 1241.15 Railroad classification survey form (to ROCIS)

2140-00XX
June 2023
SUPPORTING STATEMENT
FOR REQUEST OF OMB APPROVAL
UNDER THE PAPERWORK REDUCTION ACT AND 5 C.F.R. § 1320
The Surface Transportation Board (STB or Board) requests approval for an existing
collection without an OMB control number of the Board’s Classification Index Survey Form.
A. Justification:
1. Why the collection is necessary. Railroads are classified by size into three groups of
carriers. The Board must determine the classification of each rail carrier as a Class I (large),
Class II (medium-sized), or Class III (small) railroad. Railroads with a Class I classification
must file Annual Reports (Form R-1) under 49 U.S.C. 11145. See OMB Control Number 21400009 (Class I Railroad Annual Reports). These reports are used by the Board, other Federal
agencies, and industry groups to monitor and assess railroad industry growth, financial stability,
traffic, and operations, and to identify industry changes that may affect national transportation
policy. All other railroads (those not required to file an R-1 Annual Report) track their adjusted
revenues using the “railroad revenue deflator formula,” and, if the computation derived from that
formula indicates a change in a carrier’s classification, that carrier must submit a “Classification
Index Survey Form” to the Board pursuant to 49 C.F.R. § 1201 General Instructions 1-1 and §
1241.15.
At this time, there are only six Class I rail carriers and eight Class II carriers. There are
about 500 Class III rail carriers. The classification determination is set forth in STB Docket EP
748, using the annual deflator factor and inflation-adjusted railroad revenue thresholds.
2. How the collection will be used. The information sought in this collection provides
notice to the Board and the public about a change in classification for a particular rail carrier.
But it also makes a rail carrier approaching a change in classification aware that it may have
increased or decreased obligations upon that change in classification. Upon a change in
classification, the carrier may be required to adjust their reporting or other regulatory
requirements.
The Board’s classification of rail carriers affects the degree to which they must file
annual, quarterly, and other operational reports. It is also used in a variety of other contexts,
including differentiating the legal standards and procedures that apply to certain transactions
subject to Board licensing and prescribing labor protection conditions, depreciation studies,
abandonments, and certain exemptions, among others. Regarding current Board reports and
annual processes, a carrier that changes its classification to a higher category may need to be
included in a variety of STB projects, including, but not limited to, Uniform Rail Costing
System, Cost of Capital, etc.
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Generally, railroads have three years to adjust to any required changes. To notify the
public, the Board will post the submitted Classification Index Survey Form, or its information,
on its website after acknowledging receipt and seeking any necessary clarifications.
3. Extent of automated information collection. Electronic filing of this information is
permitted and encouraged.
4. Identification of duplication. The information requested does not duplicate any other
information available to the Board or the public.
5. Impact on small businesses. The notice will not have a significant economic impact
on a substantial number of small entities within the meaning of the Regulatory Flexibility Act. It
is rare for a railroad to change classification, and the collection is simply a verification of a
change.
6. Consequence if collection not conducted or conducted less frequent. The Board is
required by statute to collect this information.
7. Special circumstances. No special circumstances apply to this collection.
8. Outside consultations. The Board published a 60-day notice requesting comments on
this collection at 88 Fed. Reg. 26639 (May 1, 2023). No comments were received. The Board
has also published a 30-day notice providing for comments about this collection to be sent to
OMB. See 88 Fed. Reg. 42415 (June 30, 2023).
9. Payment or gift to respondents. No payments or gifts to respondents are made.
10. Confidentiality. One of the purposes of this collection is to provide notice to the
public of changes in a rail carriers classification. Thus, when filed, the Classification Index
Survey Form, or the information contained therein, will be posted on the Board’s website.
11. Sensitive information. All information collected through this report is available to
the public.
12. Estimated Burden Hours. 24 hours. The following information pertains to
the estimate of burden hours associated with this collection:
(1) Number of respondents: One annually.
(2) Frequency of response: On occasion.
(3) Annual hour burden per respondent and total: The Classification Index Survey
Form filing may require some work to make sure its determination is accurate and
proper. Staff has estimated that the average hourly burden associated with this
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collection will be less than 24 hours.
13. Other costs to respondents. None identified. Filings may be submitted electronically
to the Board.
14. Annualized cost to federal government. We estimate that it takes 8 hours annually
(GS 14, GS-15) to review each survey submission to ensure it includes all required information
and to discuss possible clarifications or actions required (if any) due to the classification change,
and one hour (GS-14) to post the form on the STB’s website, for a total of 9 hours.
15. Explanation of Program Changes or Adjustments. This is an existing collection
without an OMB Control Number. We are bringing this infrequent collection into compliance.
16. Plans for tabulation and publication. This collection will be posted on the Board’s
website.
17. Display of expiration date for OMB approval. Pursuant to 49 C.F.R. § 1241.15, the
Board makes available a Classification Index Survey Form for all railroad companies not
required to file an R-1 Annual Report. If there is a change in a carrier's classification, the survey
form shall be filed with the Office of Economics, Surface Transportation Board, Washington,
DC. An OMB expiration date is included at the top of the form.
18. Exceptions to Certification Statement. No exceptions are sought.

B. Collection of Information for Employing Statistical Methods:
Not applicable.

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