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[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2003]
[CITE: 49CFR244]

[Page 676-682]
 

TITLE 49--TRANSPORTATION
CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
PART 244--REGULATIONS ON SAFETY INTEGRATION PLANS GOVERNING RAILROAD CONSOLIDATIONS, MERGERS, AND ACQUISITIONS OF CONTROL



                           Subpart A--General

Sec.
244.1 Scope, application, and purpose.
244.3 Preemptive effect.
244.5 Penalties.
244.7 Waivers.
244.9 Definitions.

                   Subpart B--Safety Integration Plans

244.11 Contents of a Safety Integration Plan.
244.13 Subjects to be addressed in a Safety Integration Plan involving 
          an amalgamation of operations.
244.15 Subjects to be addressed in a Safety Integration Plan not 
          involving an amalgamation of operations.
244.17 Procedures.
244.19 Disposition.
244.21 Compliance and Enforcement.

     Appendix A to Part 244--Schedule of Civil Penalties [Reserved]

    Authority: 49 U.S.C. 20103, 20107, 21301; 5 U.S.C. 553 and 559; Sec. 
31001(s)(1), Pub. L. 104-134, 110 Stat. 1321-373 (28 U.S.C. 2461 note); 
and 49 CFR 1.49.

    Source:  67 FR 11604, Mar. 15, 2002, unless otherwise noted.

                           Subpart A--General

Sec. 244.1  Scope, application, and purpose.

    (a) This part prescribes requirements for filing and implementing a 
Safety Integration Plan with FRA whenever a Class I railroad proposes to 
consolidate with, merge with, or acquire control of another Class I 
railroad, or with a Class II railroad where there is a proposed 
amalgamation of operations.

[[Page 677]]

    (b) The purpose of this part is to achieve a reasonable level of 
railroad safety during the implementation of transactions described in 
paragraph (a) of this section. This part does not preclude a railroad 
from taking additional measures not inconsistent with this part to 
provide for safety in connection with a transaction.
    (c) The requirements prescribed under this part apply only to FRA's 
disposition of a regulated transaction filed by an applicant. The 
transactions covered by this part also require separate filing with and 
approval by the Surface Transportation Board. See 49 CFR part 1106.

Sec. 244.3  Preemptive effect.

    Under 49 U.S.C. 20106, issuance of these regulations preempts any 
State law, regulation, or order covering the same subject matter, except 
an additional or more stringent law, regulation, or order that:
    (a) Is necessary to eliminate or reduce an essentially local safety 
hazard;
    (b) Is not incompatible with a law, regulation, or order of the 
United States Government; and
    (c) Does not unreasonably burden interstate commerce.

Sec. 244.5  Penalties.

    (a) Any 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 $500, but not more than $11,000 per day, 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 $22,000 per violation 
may be assessed. Each day a violation continues shall constitute a 
separate offense.
    (b) As specified in Sec. 244.21, FRA may also exercise any of its 
other enforcement remedies if a railroad fails to comply with 
Sec. 244.21.
    (c) Any person who knowingly and willfully makes a false entry in a 
record or report required by this part shall be subject to criminal 
penalties under 49 U.S.C. 21311.

Sec. 244.7  Waivers.

    (a) A person subject to a requirement of this part may petition the 
Administrator for a waiver of compliance with any requirement of this 
part. The filing of such a petition does not affect that person's 
responsibility for compliance with that requirement pending action on 
such a petition.
    (b) Each petition for a waiver under this section must be filed in 
the manner and contain the information required by part 211 of this 
chapter.
    (c) If the Administrator finds that a waiver of compliance is in the 
public interest and is consistent with railroad safety, the 
Administrator may grant the waiver subject to any conditions the 
Administrator deems necessary.
    (d) The procedures governing a petition for a waiver that are 
prescribed under this part apply only to FRA's disposition of such a 
petition. A person seeking a waiver of a Surface Transportation Board 
regulation would need to file a petition for a waiver with the Board. 
(See 49 CFR 1106.5.)

Sec. 244.9  Definitions.

    As used in this part--
    Administrator means the Administrator of the Federal Railroad 
Administration or the Administrator's delegate.
    Amalgamation of operations means the migration, combination, or 
unification of one set of railroad operations with another set of 
railroad operations, including, but not limited to, the allocation of 
resources affecting railroad operations (e.g., changes in personnel, 
track, bridges, or communication or signal systems; or use or deployment 
of maintenance-of-way equipment, locomotives, or freight or passenger 
cars).
    Applicant means a Class I railroad or a Class II railroad engaging 
in a transaction subject to this part.
    Best practices means measures that are tried, tested, and proven to 
be the safest and most efficient rules or instructions governing 
railroad operations.
    Class I or Class II railroad has the meaning assigned by regulations 
of the Surface Transportation Board (49 CFR Part 1201; General 
Instructions 1-1), as those regulations may be revised by the Board 
(including modifications in

[[Page 678]]

class thresholds based on the revenue deflator formula) from time to 
time.
    Corporate culture means the totality of the commitments, written and 
oral directives, and practices that make up the way a railroad's 
management and its employees operate their railroad.
    Control means actual control, legal control, or the power to 
exercise control through:
    (1) Common directors, officers, stockholders, a voting trust, or a 
holding or investment company, or
    (2) Any other means. See 49 U.S.C. 10102.
    Consolidation means the creation of a new Class I railroad by 
combining existing Class I railroads or a Class I railroad and a Class 
II railroad where there is an amalgamation of operations, or by a 
railroad or a corporate parent of a Class I railroad taking over the 
assets or assuming the liabilities, or both, of another Class I railroad 
such that the resulting unified entity has the combined capital, powers, 
and subsidiaries and affiliates, if applicable, of all of its 
constituents.
    Environmental documentation means either an Environmental Assessment 
or Environmental Impact Statement prepared in accordance with the 
Surface Transportation Board's environmental rules at 49 CFR part 1105.
    Merger means the acquisition of one Class I railroad or Class II 
railroad where there is amalgamation of operations by a Class I railroad 
such that the acquiring railroad or a corporate parent of that railroad 
acquires the stock, assets, liabilities, powers, subsidiaries and 
affiliates of the railroad acquired.
    Person means an entity of any type covered under 1 U.S.C. 1, 
including 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.
    Railroad means any form of non-highway ground transportation that 
runs on rails or electromagnetic guideways, including:
    (1) Commuter or other short-haul rail passenger service in a 
metropolitan or suburban area; and
    (2) High speed ground transportation systems that connect 
metropolitan areas, without regard to whether those systems use new 
technologies not associated with traditional railroads. The term does 
not include rapid transit operations in an urban area that are not 
connected to the general railroad system of transportation.
    Safety Integration Plan means a comprehensive written plan submitted 
to and approved by FRA in compliance with this part that demonstrates in 
required detail how an applicant will provide for safe railroad 
operations during and after any transaction covered by this part, and 
otherwise assure compliance with the Federal railroad safety laws.
    Section of Environmental Analysis or ``SEA'' means the Section of 
the Surface Transportation Board that prepares its environmental 
documentation and analyses.
    Transaction means a consolidation, merger, or acquisition of control 
subject to the requirements of this part.

                   Subpart B--Safety Integration Plans

Sec. 244.11  Contents of a Safety Integration Plan.

    Each Safety Integration Plan shall contain the following information 
for each subject matter identified in Sec. 244.13 or Sec. 244.15:
    (a) A detailed description of how the applicant differs from each 
railroad it proposes to acquire or with which the applicant proposes to 
consolidate or merge, including the rules or instructions governing 
railroad operations of these railroads;
    (b) A detailed description of the proposed manner of operations of 
the resulting railroad, including a reconciliation of the differing 
rules or instructions governing railroad operations of the railroads 
involved in the transaction;
    (c) The measures to be taken to comply with applicable Federal 
railroad safety laws and regulations;

[[Page 679]]

    (d) The proposed specific measures, expressed step-by-step, for each 
relevant subject matter that the applicant believes will result in safe 
implementation of the proposed transaction consistent with the 
requirements of this part;
    (e) The allocation of resources, expressed as human and capital 
resources within designated operating budgets, directed to complete 
safety-relevant operations subject to the transaction; and
    (f) The timetable, targeted in specific terms from commencement to 
completion, for implementing paragraphs (c), (d) and (e) of this 
section.

Sec. 244.13  Subjects to be addressed in a Safety Integration Plan 
          involving an amalgamation of operations.

    Each Safety Integration Plan involving an amalgamation of operations 
shall address the following subjects for railroad operations conducted 
on property subject to the transaction:
    (a) Corporate culture. Each applicant shall:
    (1) Identify and describe differences for each safety-related area 
between the corporate cultures of the railroads involved in the 
transaction;
    (2) Describe how these cultures lead to different practices 
governing rail operations; and
    (3) Describe, in step-by-step measures, the integration of these 
corporate cultures and the manner in which it will produce a system of 
``best practices'' when the transaction is implemented.
    (b) Training. Each applicant shall identify classroom and field 
courses, lectures, tests, and other educational or instructional forums 
designed to ensure the proficiency, qualification, and familiarity with 
the operating rules and operating tasks of territory assigned of the 
following employees, either when these employees are assigned to a new 
territory or the operating rules on a given territory are changed:
    (1) Employees who perform train and engine service;
    (2) Employees who inspect and maintain track and bridges;
    (3) Employees who inspect, maintain and repair any type of on-track 
equipment, including locomotives, passenger cars, and freight cars of 
all types;
    (4) Dispatchers or operators;
    (5) Employees who inspect and maintain signal and train control 
devices and systems;
    (6) Hazardous materials personnel, including information technology 
personnel who affect the transportation of hazardous materials;
    (7) Employees who maintain or upgrade communication systems 
affecting rail operations; and
    (8) Supervisors of employees enumerated in paragraphs (b)(1) through 
(7) of this section.
    (c) Operating practices.
    (1) Operating rules. Each applicant shall identify the operating 
rules, timetables, and timetable special instructions to govern railroad 
operations, including yard or terminal operations and freight or 
passenger service.
    (2) Alcohol and drug. Each applicant shall identify the post-
accident toxicological testing, reasonable cause testing, and random 
alcohol and drug testing programs as required under 49 CFR part 219.
    (3) Qualification and certification of locomotive engineers. Each 
applicant shall identify the program for qualifying and certifying 
locomotive engineers under 49 CFR part 240.
    (4) Hours of service laws. Each applicant shall identify the 
procedures for complying with the Federal hours of service laws and 
related measures to minimize fatigue of employees covered by 49 U.S.C. 
chapter 211.
    (d) Motive power and equipment. Each applicant shall identify the 
qualification standards for employees who inspect, maintain, or repair 
railroad freight or passenger cars and locomotives, and the designated 
facilities used, or to be used, to repair such equipment.
    (e) Signal and train control. Each applicant shall identify the 
signal and train control systems governing railroad operations and 
maintenance, and any planned amendments or modifications to capital 
improvement and research and development projects for signal and train 
control operations.
    (f) Track Safety Standards and bridge structures. Each applicant 
shall identify

[[Page 680]]

the maintenance and inspection programs for track and bridges, and the 
qualification standards for roadway workers.
    (g) Hazardous Materials. Each applicant shall identify an inspection 
program covering the following areas:
    (1) Field inspection practices;
    (2) Hazardous materials communication standards;
    (3) Emergency response procedures; and
    (4) Information technology systems and personnel employed for 
transmitting or receiving information accompanying hazardous materials 
shipments. The inspection program should identify preventive measures 
that will be employed to respond to potential information technology 
integration and hazardous materials documentation deficiencies.
    (h) Dispatching operations. Each applicant shall identify:
    (1) The railroad dispatching system to be adopted;
    (2) The migration of the existing dispatching systems to the adopted 
system, if applicable; and
    (3) The criteria used to determine workload and duties performed by 
operators or dispatchers employed to execute operations.
    (i) Highway-rail grade crossing systems. Each applicant shall 
identify a program, including its development and implementation, 
covering the following:
    (1) Identification of the highway-rail grade crossings at which 
there will be an increase in rail traffic resulting from the 
transaction;
    (2) An applicant's existing grade-crossing programs as they apply to 
grade crossings identified in paragraph (i)(1) of this section;
    (3) Integration of the grade crossing programs of the railroads 
subject to the transaction to the extent the programs may be different;
    (4) Emergency response actions;
    (5) Avoidance of blocked or obstructed highway-rail crossing systems 
by trains, locomotives, railroad cars, or other pieces of rolling 
equipment; and
    (6) Signs employed for changes in rail traffic patterns.
    (j) Personnel staffing. Each applicant shall identify the number of 
employees by job category, currently and proposed, to perform the 
following types of functions when there is a projected change of 
operations that will impact workforce duties or responsibilities for 
employees of that job category:
    (1) Train and engine service;
    (2) Yard and terminal service;
    (3) Dispatching operations;
    (4) Roadway maintenance;
    (5) Freight car and locomotive maintenance;
    (6) Maintenance of signal and train control systems, devices, and 
appliances;
    (7) Hazardous materials operations; and
    (8) Managers responsible for oversight of safety programs.
    (k) Capital investment. Each applicant shall identify the capital 
investment program, clearly displaying planned investments in track and 
structures, signals and train control, and locomotives and equipment. 
The program shall describe any differences from the program currently in 
place on each of the railroads involved in the transaction.
    (l) Information systems compatibility. Each applicant shall identify 
measures providing for a seamless interchange of information relating to 
the following subject matters:
    (1) Train consists;
    (2) Movements and movement history of locomotives and railroad 
freight cars;
    (3) Dispatching operations;
    (4) Emergency termination of operations; and
    (5) Transportation of hazardous materials.

[67 FR 11604, Mar. 15, 2002, as amended at 67 FR 68045, Nov. 8, 2002]

Sec. 244.15  Subjects to be addressed in a Safety Integration Plan not 
          involving an amalgamation of operations.

    If an applicant does not propose an amalgamation of operations 
conducted on properties subject to the transaction, the applicant shall 
not be required to file a Safety Integration Plan unless directed to do 
so by FRA.

[[Page 681]]

Sec. 244.17  Procedures.

    (a) Each applicant shall file one original of a proposed Safety 
Integration Plan with the Associate Administrator for Safety, FRA, 1120 
Vermont Avenue, NW., Mail Stop 25, Washington, DC, 20590, no later than 
60 days after the date it files its application with the Surface 
Transportation Board.
    (b) The applicant shall submit such additional information necessary 
to support its proposed Safety Integration Plan as FRA may require to 
satisfy the requirements of this part.
    (c) The applicant shall coordinate with FRA to resolve FRA's 
comments on the proposed Safety Integration Plan until such plan is 
approved.
    (d) FRA will file its findings and conclusions on the proposed 
Safety Integration Plan with the Board's Section of Environmental 
Analysis at a date sufficiently in advance of the Board's issuance of 
its draft environmental documentation in the case to permit 
incorporation in the draft environmental document.
    (e) Assuming FRA approves the proposed Safety Integration Plan and 
the Surface Transportation Board approves the transaction and adopts the 
Plan, each applicant involved in the transaction shall coordinate with 
FRA in implementing the approved Safety Integration Plan.
    (f) During implementation of an approved Safety Integration Plan, 
FRA expects that an applicant may change and refine its Safety 
Integration Plan in response to unforeseen developments. An applicant 
shall communicate with FRA about such developments and submit amendments 
to its Safety Integration Plan to FRA for approval.
    (g) During implementation of an approved Safety Integration Plan, 
FRA will inform the Surface Transportation Board about implementation of 
the plan at times and in a manner designed to aid the Board's exercise 
of its continuing jurisdiction over the approved transaction in 
accordance with an agreement that FRA and the Board will enter into and 
execute. Pursuant to such agreement, FRA will consult with the Board at 
all appropriate stages of implementation, and will advise the Board on 
the status of the implementation process:
    (1) For a period of no more than five years after the Board approves 
the transaction,
    (2) For an oversight period for the transaction established by the 
Board, or
    (3) Until FRA advises the Board in writing that the integration of 
operations subject to the transaction is complete, whichever is shorter.
    (h) Request for Confidential Treatment. Each applicant requesting 
that advanced drafts of the proposed Safety Integration Plan and 
information in support of the proposed and approved plan that are filed 
with FRA receive confidential treatment shall comply with the procedures 
enumerated at 49 CFR 209.11.

Sec. 244.19  Disposition.

    (a) Standard of review. FRA reviews an applicant's Safety 
Integration Plan, and any amendments thereto, to determine whether it 
provides a reasonable assurance of safety at every step of the 
transaction. In making this determination, FRA will consider whether the 
plan:
    (1) Is thorough, complete, and clear; and
    (2) Describes in adequate detail a logical and workable transition 
from conditions existing before the transaction to conditions intended 
to exist after consummation of the transaction.
    (b) Approval of the Safety Integration Plan and Amendments Thereto. 
FRA approves a Safety Integration Plan, and any amendments thereto, that 
meets the standard set forth in paragraph (a) of this section. The 
approval will be conditioned on an applicant's execution of all of the 
elements contained in the plan, including any amendments to the plan 
approved by FRA.
    (c) Amendment.--(1) By the applicant. The applicant may amend its 
Safety Integration Plan, from time to time, provided it explains the 
need for the proposed amendment in writing to FRA. Any amendment shall 
take effect no earlier than 30 days after its submission to FRA, unless 
it is either approved or disapproved by FRA within that period. Any 
disapproval of an amendment shall be in accordance with

[[Page 682]]

the requirements prescribed in paragraph (b) of this section.
    (2) By FRA. FRA may request an applicant to amend its approved 
Safety Integration Plan from time to time should circumstances warrant.

[67 FR 11604, Mar. 15, 2002, as amended at 67 FR 68045, Nov. 8, 2002]

Sec. 244.21  Compliance and Enforcement.

    (a) After the Surface Transportation Board has approved a 
transaction subject to this part, a railroad implementing a transaction 
subject to this part shall operate in accordance with the Safety 
Implementation Plan approved by FRA until the properties involved in the 
transaction are completely integrated into the form contemplated in the 
Surface Transportation Board's approval of the transaction.
    (b) FRA may exercise any or all of its enforcement remedies 
authorized by the Federal railroad safety laws if a railroad fails to 
comply with paragraph (a) of this section or to execute any measure 
contained in a Safety Implementation Plan approved by FRA.

     Appendix A to Part 244--Schedule of Civil Penalties [Reserved]