Federal Register - June 28, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Rules and Regulations mobile component, while attributing only the purchase price of the safe to the cost of a stationary NTP. The second set of costs unique to the operation of a mobile component are maintenance and transportation expenses such as fuel, repair, insurance, permits, licenses, tires, tolls, and driver wages and benefits. The American Transportation Research Institute estimates that the average marginal cost per mile of operating a straight truck in 2016 the most recent year in which this figure
was updated was $1.63. This figure is inclusive of all previously listed expenses.23 Based on DEAs knowledge of the operations of existing mobile NTPs, DEA estimates that a mobile NTP
operating under the final rule will travel an average of 5,000 miles per year roughly 100 miles per week. This equates to an annual transportation and maintenance expense of $8,150.00 per year.24
Comparing the present value of the costs associated with operating a mobile
33879
NTP over a five-year period with the present value of the costs associated with opening an additional NTP
location over a five-year period yields a net present value of cost savings between $319,069 at a 7 percent discount rate and $359,369 at a 3
percent discount rate for the operation of a mobile NTP. The comparison of costs between the baseline and proposed regulatory environment are summarized in the tables below:
BASELINE REGULATORY ENVIRONMENTTOTAL COSTS FOR ADDITIONAL NTP LOCATIONS
Office rent per year
Cost of safe 25
Labor Cost
Registration fee
NPV 3%
$46,000.00
899.00
48,994.00
296.00
Year 1
$437,274
NPV 7%
$96,189.00
Year 2
Year 3
Year 4
Year 5
$95,290.00
$95,290.00
$95,290.00
$95,290.00
Year 2
Year 3
Year 4
Year 5
$95,290.00
$95,290.00
$95,290.00
$95,290.00
Year 1
$391,549
$96,189.00
All figures rounded to the nearest whole dollar.
FINAL RULES REGULATORY ENVIRONMENTTOTAL MOBILE NTP COSTS
Vehicle purchase price
Cost to install DEA compliant safe
Maintenance cost per year
NPV 3%
$40,000.00
1,798.00
8,150.00
Year 1
$77,905
NPV 7%
$49,948.00
Year 2
Year 3
Year 4
Year 5
$8,150.00
$8,150.00
$8,150.00
$8,150.00
Year 2
Year 3
Year 4
Year 5
$8,150.00
$8,150.00
$8,150.00
$8,150.00
Year 1
$72,480
$49,948.00
khammond on DSKJM1Z7X2PROD with RULES
All figures rounded to the nearest whole dollar.
DEA does not have a systematic method for estimating how many NTP
registrants that are currently deterred or prevented from opening additional NTP
locations due to costs might take advantage of this enabling rule to begin operating a mobile NTP. DEA also recognizes that, because of their fixed locations, registered NTPs are more limited in their geographic service area than a mobile NTP would be. DEA
conservatively estimates, however, that this number would at least equal the number of NTP registrants that operated mobile components at some point in the previous five years under ad hoc agreements with DEA field offices.
There have been nineteen such NTP
registrants, and there are currently eight with mobile components still in operation. Therefore, DEA considers it a reasonable assumption that at least eleven additional NTP registrants will begin operating a mobile NTP after this final rule is published, bringing the total number of mobile NTPs to at least the previous total of nineteen. This yields a total cost savings for all of those NTPs over a five-year period of $3,509,759 26
at a 7 percent discount rate to $3,953,059 27 at a 3 percent discount rate.
For the reasons outlined in the comparative analysis discussed above, DEA concludes that moving from the baseline regulatory environment to the
regulatory environment of the final rule results in a cost reduction for NTP
registrants that wish to expand their services to new geographic areas, and will spur an increase in the number of mobile NTPs. Therefore, this final rule is a deregulatory action that will result in a net cost savings between $3,509,759
and $3,953,059.
23 Hooper, Alan, and Dan Murray. An Analysis of the Operational Costs of Trucking: 2017 Update.
ATRI, American Transportation Research Institute, 2017, atri-online.org/wp-content/uploads/2017/10/
ATRI-Operational-Costs-of-Trucking-2017-102017.pdf.
per mile 5,000 miles per year = $8,150.
cost of a safe is a one-time expense incurred in the first year of operation.
26 The final rules regulatory environment yields a five-year cost savings discounted at 7% of
$318,855 over the current regulatory environment.
$319,069 11 = $3,509,759.
27 The final rules regulatory environment yields a five-year cost savings discounted at 3% of $359,131 over the current regulatory environment.
$359,369 11 = $3,953,059.
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Executive Orders 12866 Regulatory Planning and Review and 13563
Improving Regulation and Regulatory Review This final rule was developed in accordance with the principles of Executive Orders E.O. 12866 and 13563. E.O. 12866 directs agencies to
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