[Federal Register Volume 59, Number 122 (Monday, June 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15518]


[[Page Unknown]]

[Federal Register: June 27, 1994]


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DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Part 107

[Docket No. HM-208A, Amdt. No. 107-31]
RIN 2137-AC50

 

Hazardous Materials Transportation; Registration and Fee 
Assessment Program

AGENCY: Research and Special Programs Administration (RSPA), DOT.

ACTION: Final rule.

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SUMMARY: In July 1992, RSPA published a final rule establishing a 
national registration and fee assessment program for persons offering 
for transportation or transporting certain categories and quantities of 
hazardous materials in intrastate, interstate, and foreign commerce. 
The fees collected under the registration program are to fund a grant 
program to enhance State, Indian tribal, and local hazardous materials 
emergency preparedness and response activities. This final rule adopts 
certain changes to the current registration program effective July 1, 
1994, the beginning of the next registration year. The changes delay 
the requirement for foreign offerors to register and require a merchant 
vessel carrier to maintain the Certificate of Registration on board 
each vessel carrying hazardous materials subject to the registration 
requirements or to annotate its registration number on any document 
readily available to enforcement personnel.

EFFECTIVE DATE: July 1, 1994.

FOR FURTHER INFORMATION CONTACT: Joseph S. Nalevanko, Office of 
Hazardous Materials Planning and Analysis, (202) 366-4484, or Beth 
Romo, Office of Hazardous Materials Standards, (202) 366-4488, RSPA, 
Department of Transportation, 400 Seventh Street S.W., Washington, DC 
20590-0001.

SUPPLEMENTARY INFORMATION:

1. Background

    On July 9, 1992, RSPA published a final rule under Docket HM-208 
(57 FR 30620), establishing a national registration program, as 
mandated by Congress in the 1990 amendments to the Hazardous Materials 
Transportation Act (HMTA), 49 App. U.S.C. 1801 et seq., for persons 
engaged in the offering for transportation or transportation of certain 
categories and quantities of hazardous materials in intrastate, 
interstate, and foreign commerce. Persons currently subject to the 
registration program are required to annually file a registration 
statement with RSPA and pay an annual fee of $250 to fund a nationwide 
emergency response training and planning grant program for States, 
local governments, and Indian tribes, and a $50 administrative fee to 
offset DOT processing costs. The fee of $250 is the minimum amount 
permitted to be collected for purposes of funding the emergency 
response preparedness and planning grant program.
    Under the authority of the HMTA, RSPA has developed and implemented 
a reimbursable emergency preparedness grant program. The regulations 
establishing this program were issued in a final rule entitled ``Public 
Sector Training and Planning Grants'' under Docket HM-209 on September 
17, 1992 (57 FR 43062). The purpose of the grant program is to provide 
funds, technical assistance, and support to States, Indian tribes, and 
political subdivisions to develop, implement, and improve planning and 
training programs for emergency responders in the public sector. The 
funding for the grant program comes from the fees received from RSPA's 
registration program. Approximately 26,000 persons have registered with 
RSPA for the current registration year, substantially fewer in number 
than originally anticipated. RSPA is concerned that many persons who 
are required to register have not. Therefore, on April 1, 1994, RSPA 
proposed two compliance-related requirements in the NPRM to enhance 
nationwide compliance.
    RSPA proposed that each person who offers or transports a hazardous 
material for which registration is required may do so only if both the 
transporter and the offeror (if required) are registered. They would be 
required, on an annual basis, to obtain each other's registration 
number or a copy of each other's current Certificate of Registration.
    Secondly, RSPA decided to further enhance the enforcement of the 
registration program as it applies to foreign or domestic merchant 
vessel carriers. Accordingly, RSPA proposed to require that each 
merchant vessel carrier carry a copy of its current Certificate of 
Registration issued by RSPA or another document bearing the 
registration number identified as the ``U.S. DOT Hazmat Reg. No.'' on 
board each merchant vessel carrying a hazardous material subject to the 
registration requirements.
    As discussed in the NPRM, legislation is being considered which 
would grant DOT the discretionary authority to waive the registration 
or fee requirement for any person domiciled outside the United States, 
if that person's country does not impose registration or fee 
requirements on U.S. persons offering hazardous materials to that 
country (see, for example, HR 2178 which passed on November 21, 1993). 
Pending the outcome of these legislative initiatives, RSPA proposed to 
further extend the delay in application of the registration program to 
foreign offerors from July 1, 1994 until July 1, 1996.

II. Summary of Comments

Delay in Registering Foreign Offerors

    Commenters overwhelmingly supported RSPA's proposed two-year delay 
in requiring registration of foreign offerors. Many commenters 
recommended that RSPA not implement foreign offeror registration at all 
because of the possibility of reciprocal action taken against the 
United States. A Canadian chemical manufacturers' association noted 
that shipments to Canada are exempt from Canadian registration 
requirements and strongly recommended that Canadian offerors be 
afforded reciprocal treatment when shipping to the U.S. Therefore, RSPA 
is extending, as proposed, the exemption for foreign offerors from 
registration and fee requirements until July 1, 1996.

Verification of Registration on Board Vessels

    Several commenters questioned the need for the proposed requirement 
for vessel carriers to have a copy of a valid registration certificate 
or other document displaying a valid registration number on board each 
vessel. The International Chamber of Shipping stated that the proposed 
requirement would add to the paperwork burden on the ship and increase 
the workload of the ship's command. This commenter further noted that 
RSPA already has access to a ship's registration numbers at the 
operator's office or at the office of the operator's agent. The 
Steamship Operators Intermodal Committee claimed the total population 
of vessel owners, operators, and their agents is relatively small and 
readily identifiable. The U.S. Atlantic and Gulf/Australia New Zealand 
Conference added that vessels do not present the problems of vast 
numbers and mobility presented by motor vehicles.
    Adoption of this requirement could avert potentially significant 
and costly delays for vessels entering and clearing U.S. port areas. 
The marginal cost associated with requiring a transporter's 
registration number on board a vessel is clearly outweighed by more 
significant costs resulting from time-consuming inspections by Coast 
Guard personnel. A readily available copy of the certificate of 
registration or other document indicating a valid registration number 
would eliminate any need for communication between the master of the 
vessel and the vessel owner/lessor (who could be domiciled in a foreign 
country) and subsequent inquiries to an agent representing the vessel. 
Therefore, RSPA is adopting the proposed requirement for a merchant 
vessel carrier to maintain the Certificate of Registration or another 
document indicating the valid registration number on board each vessel 
carrying hazardous material subject to the registration requirements 
readily available to enforcement personnel. However, because of the 
brief time period between publication of this final rule and its 
effective date, RSPA is providing a delay until January 1, 1995, to 
comply with this requirement.

Other Issues Addressed By Commenters

    Most commenters opposed RSPA's proposal that offerors and 
transporters check each other's registration status. Responsibility for 
enforcing registration requirements, logistical problems, 
administrative burdens, and increased costs were the predominant 
reasons offered by commenters opposing this proposal.
    Commenters overwhelmingly believed that federal and state agencies 
should be responsible for enforcing the regulations, not industry. A 
related concern expressed by commenters is that a person otherwise in 
compliance with the regulations could be in violation of the 
registration requirements by unknowingly doing business with a customer 
who falsely claimed to be registered. Furthermore, commenters feared 
that persons who are in compliance with the registration requirements 
and refuse to do business with unregistered customers may lose their 
customers and revenue to less scrupulous competitors.
    Administrative burdens were identified as the creation of new 
databases, maintenance of additional files, and preparation of 
correspondence. Increased costs would involve additional function-
specific training of personnel to determine if a shipment is subject to 
registration, higher clerical expenses for correspondence and 
recordkeeping, and delays or cancellations caused by a last-minute 
exchange of registration information.
    According to many commenters, a ``logistical nightmare'' would 
result from this proposed requirement, especially when intermodal 
transportation is involved. Other complicated situations cited by 
commenters involve selection of a transporter by a customer, customer-
provided transport vehicles, interlining carriers, and infrequent or 
irregular shipments.
    Finally, numerous commenters requested a delay in the effective 
date of this requirement, if adopted, beyond the beginning of the 1994-
95 registration year on July 1, 1994.
    RSPA believes that more time is needed to explore thoroughly the 
issues and concerns raised by commenters to this proposal; therefore, 
the proposal to require verification of registration by a transporter 
or offeror is not adopted in this final rule. RSPA anticipates 
providing a more detailed evaluation of comments and alternatives to 
this proposed requirement, clarifying various provisions of the 
registration program and responding to other miscellaneous suggestions 
provided by commenters in a rulemaking action in the near future.

III. Summary of Regulatory Changes by Section

Part 107

    Section 107.601  Paragraph (e) is revised as proposed to clarify 
the term ``shipment'' as it pertains to the scope of the registration 
program.
    Section 107.606  This section provides exceptions from the 
registration requirements. In paragraph (f), foreign offerors, 
including foreign subsidiaries of U.S. corporations, are excepted from 
all registration requirements until July 1, 1996.
    Section 107.608  Paragraph (a) is amended as proposed to remove 
outdated provisions referring to the first registration year's 
compliance dates.
    Section 107.620  Paragraph (c) is redesignated as paragraph (d). A 
new paragraph (c) is added to require a merchant vessel carrier to 
maintain the Certificate of Registration on board each vessel carrying 
hazardous materials subject to the registration requirements or to 
annotate its registration number on any document readily available to 
enforcement personnel. RSPA is providing a delay in compliance with 
this requirement until January 1, 1995.

IV. Rulemaking Analyses and Notices

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

    This final rule is not considered a significant regulatory action 
under section 3(f) of Executive Order 12866 and therefore, was not 
reviewed by the Office of Management and Budget. The rule is not 
considered a significant rule under the Regulatory Policies and 
Procedures of the Department of Transportation (44 FR 11034). A 
regulatory evaluation is available for review in the Docket.

B. Executive Order 12612

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 12612 (``Federalism''). This 
registration regulation has no preemptive effect. It does not impair 
the ability of States, local governments or Indian tribes to impose 
their own fees or registration or permit requirements on intrastate, 
interstate or foreign offerors or carriers of hazardous materials.

C. Regulatory Flexibility Act

    I certify that this final rule will not have a significant economic 
impact on a substantial number of small entities. This final rule 
maintains the minimum fee requirement for all shippers and carriers of 
hazardous materials who are subject to the registration requirement.

D. Paperwork Reduction Act

    Under 49 App. U.S.C. 1805, the information management requirements 
of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) do not apply to 
this final rule.

E. Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number contained in the heading 
of this document can be used to cross-reference this action with the 
Unified Agenda.

List of Subjects in 49 CFR Part 107

    Administrative practice and procedure, Hazardous materials 
transportation, Packaging and containers, Penalties, Reporting and 
recordkeeping requirements.

    In consideration of the foregoing, 49 CFR Part 107 is amended as 
follows:

PART 107--HAZARDOUS MATERIALS PROGRAM PROCEDURES

    1. The authority citation for part 107 continues to read as 
follows:

    Authority: 49 App. U.S.C. 1421(c), 1653(d), 1655, 1802, 1804, 
1805, 1806, 1808-1811, 1815; 49 CFR 1.45 and 1.53 and App. A of 49 
CFR part 1.

    2. In Sec. 107.601, the last sentence in paragraph (e) is revised 
to read as follows:


Sec. 107.601  Applicability.

* * * * *
    (e) * * * For applicability of this subpart, the term ``shipment'' 
means the offering or loading of a hazardous material at one loading 
facility using one transport vehicle, or the transport of that 
transport vehicle.


Sec. 107.606  [Amended]

    3. In Sec. 107.606, in paragraph (f), at the beginning of the first 
sentence, the wording ``Until July 1, 1994,'' is revised to read 
``Until July 1, 1996,''.
    4. In Sec. 107.608, paragraph (a) is revised to read as follows:


Sec. 107.608  General registration requirements.

    (a) Except as provided in Sec. 107.616(d), each person subject to 
this subpart must submit a complete and accurate registration statement 
on DOT Form F 5800.2 not later than June 30 for each registration year, 
or in time to comply with paragraph (b) of this section, whichever is 
later.
* * * * *
    5. Section 107.620 is amended by redesignating paragraph (c) as 
paragraph (d) and adding a new paragraph (c) to read as follows:


Sec. 107.620  Recordkeeping requirements.

* * * * *
    (c) In addition to the requirements of paragraph (a) of this 
section, after January 1, 1995, each person who transports by vessel a 
hazardous material subject to the requirements of this subpart must 
carry on board the vessel a copy of its current Certificate of 
Registration or another document bearing the current registration 
number identified as the ``U.S. DOT Hazmat Reg. No.''
* * * * *
    Issued in Washington, D.C. on June 21, 1994, under the authority 
delegated in 49 CFR part 1.
Ana Sol Gutierrez,
Acting Administrator, Research and Special Programs Administration.
[FR Doc. 94-15518 Filed 6-24-94; 8:45 am]
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