[Federal Register Volume 64, Number 72 (Thursday, April 15, 1999)]
[Proposed Rules]
[Pages 18786-18795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9453]



[[Page 18785]]

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Part IV





Department of Transportation





_______________________________________________________________________



Research and Special Programs Administration



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49 CFR Part 107



Hazardous Materials Transportation; Registration and Fee Assessment 
Program; Proposed Rule

  Federal Register / Vol. 64, No. 72 / Thursday, April 15, 1999 / 
Proposed Rules  

[[Page 18786]]



DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Part 107

[Docket No. RSPA-99-5137 (HM-208C)]
RIN 2137-AD17


Hazardous Materials Transportation; Registration and Fee 
Assessment Program

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

ACTION: Notice of Proposed Rulemaking (NPRM).

-----------------------------------------------------------------------

SUMMARY: RSPA is proposing changes to the current registration and fee 
assessment program for persons who transport or offer for 
transportation certain categories and quantities of hazardous 
materials. The proposed changes would increase the number of persons 
required to register and increase the annual registration fee for 
shippers and carriers who are not a small business under Small Business 
Administration criteria. The proposed changes are intended to raise 
additional funds to enhance support for the national Hazardous 
Materials Emergency Preparedness Grants Program.

DATES: Written Comments: Comments must be received on or before June 
14, 1999.
    Public Meeting Date: A public meeting will be held on May 25, 1999; 
from 9:00 a.m. to 4:00 p.m. An additional meeting may be scheduled if 
there is substantial interest.

ADDRESSES: Written Comments: Address comments to the Dockets Unit, U.S. 
Department of Transportation, Room PL 401, 400 Seventh St., SW, 
Washington, DC 20590-0001. Comments should identify the docket number 
RSPA-99-5137 (HM-208C) and should be submitted in two copies. Persons 
wishing to receive confirmation of receipt of their comments should 
include a self-addressed stamped postcard. Comments may also be 
submitted by e-mail to: http://dms.dot.gov, or by fax to (202) 366-
3753. The Dockets Unit is located on the Plaza Level of the Nassif 
Building at the U.S. Department of Transportation at the above address.
    Public dockets may be viewed between the hours of 10:00 a.m. and 
5:00 p.m., Monday through Friday, except Federal holidays. Internet 
users may access all comments and related background materials by using 
the Universal Resource Locator (URL) http://dms.dot.gov. An electronic 
copy of this document may be downloaded using a modem and suitable 
communications software from the Government Printing Office Electronic 
Bulletin Board Service at (202) 512-1661.
    Public Meeting: The public meeting will be held in room 3200-3204 
at the U.S. Department of Transportation's Nassif building, 400 Seventh 
Street SW, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Mr. David Donaldson, Office of 
Hazardous Materials Planning and Analysis, (202) 366-4484, or Ms. Jodi 
George, Office of Hazardous Materials Standards, (202) 366-8553, RSPA, 
Department of Transportation, 400 Seventh Street SW, Washington, DC 
20590-0001.

SUPPLEMENTARY INFORMATION:

I. Background

A. Current Registration Program

    In 1990, amendments to Federal hazardous materials transportation 
law, now codified at 49 U.S.C. 5101 et seq. (the law), required the 
Secretary of Transportation to establish a registration program. The 
Secretary delegated this authority to the Administrator, Research and 
Special Programs Administration (RSPA). 49 CFR 1.53(b)(1). The purpose 
of the registration program is to gather information about the 
transportation of hazardous materials and to fund a grants program to 
support hazardous materials emergency response planning and training 
activities by State and local governments. Under 49 U.S.C. 5108, each 
person who transports or causes to be transported in commerce one or 
more of the categories of hazardous materials listed below must file a 
registration statement with RSPA and pay an annual registration fee:
    (1) A highway-route controlled quantity of Class 7 (radioactive) 
materials;
    (2) More than 25 kilograms (55 pounds) of a Division 1.1, 1.2, or 
1.3 (explosive) material in a motor vehicle, rail car, or freight 
container;
    (3) A package containing more than one liter (1.06 quarts) of a 
hazardous material the Secretary designates as extremely toxic by 
inhalation, which has been identified as a material meeting a criterion 
of a Zone A material that is toxic by inhalation;
    (4) A hazardous material in a bulk packaging, container, or tank if 
the packaging, container, or tank has a capacity equal to or greater 
than 13,248 liters (3,500 gallons) or more than 13.24 cubic meters (468 
cubic feet); or
    (5) A shipment in other than a bulk packaging of 2,268 kilograms 
(5,000 pounds) or more of a class of hazardous materials for which 
placarding of a vehicle, rail car, or freight container is required.
    In addition, 49 U.S.C. 5108(a)(2) permits RSPA to require 
registration by each person who:
    (1) Transports or causes to be transported hazardous material in 
commerce but does not engage in the activities listed above; or
    (2) Manufactures, fabricates, marks, maintains, reconditions, 
repairs, or tests packagings that the person represents, marks, 
certifies, or sells for use in transporting in commerce hazardous 
materials.
    Section 5108(g) allows RSPA to set the registration fee at an 
amount between $250 and $5,000, based on one or more of the following 
factors:
    (1) The gross revenues from the transportation of hazardous 
materials;
    (2) The types of hazardous materials transported or caused to be 
transported;
    (3) The quantities of hazardous materials transported or caused to 
be transported;
    (4) The number of shipments of hazardous materials;
    (5) The number of activities which a person carries out for which 
filing a registration statement is required;
    (6) The threat to property, individuals, and the environment from 
an accident or incident involving the hazardous materials transported 
or caused to be transported;
    (7) The percentage of gross revenues which are derived from the 
transport of hazardous materials;
    (8) The amount of funds which are made available to carry out the 
emergency response planning and training grants program; and
    (9) Such other factors RSPA considers appropriate.
    Section 5108(i)(2) specifically excepts the following persons from 
the registration requirements:
    (1) A department, agency, or instrumentality of the United States 
Government;
    (2) An authority of a State or political subdivision of a State;
    (3) An employee of a department, agency, instrumentality, or 
authority carrying out official duties; and
    (4) An employee of a hazmat employer, which for the purposes of 
registration includes the owner-operator of a motor vehicle that 
transports in commerce hazardous materials, if that vehicle at the time 
of those activities, leased to a registered motor carrier under a 30-
day or longer lease as prescribed in 49 CFR part 376 or an equivalent 
contractual agreement.
    Section 5108(a)(4) permits RSPA to waive the registration 
requirements for

[[Page 18787]]

a person not domiciled in the United States that solely offers 
hazardous materials for transportation in commerce to the United States 
from a place outside the United States if the country of which such 
person is a domiciliary does not require persons domiciled in the 
United States who solely offer hazardous materials for transportation 
to the foreign country from places in the United States to file 
registration statements, or to pay fees, for making such an offer. In 
1995, this exception for foreign offerors was incorporated into the 
regulations at 49 CFR 107.606(a)(6).
    In establishing the registration program, RSPA chose to require 
registration by only those persons under a statutory obligation to 
register and to impose the minimum $250 fee on those persons, plus an 
additional fee, currently set at $50, to pay for the costs of 
processing the registration statements, as authorized by 49 U.S.C. 
5108(g). All registrants pay the same registration fee, regardless of 
their size, their income, or the extent to which they engage in 
hazardous materials transportation activities.
    The current regulations, in Sec. 107.608(a), require the annual 
submission of a registration statement. Section 107.620 requires each 
registrant to maintain a copy of its registration statement and the 
certificate of registration issued by RSPA at its principal place of 
business for three years. In addition, each highway carrier and vessel 
operator is required to keep a copy of the current registration 
certificate or another document bearing the registration number on 
board each vehicle or vessel carrying the types and quantities of 
hazardous materials that require registration.
    In each of the seven years since 1992, when offerors and 
transporters were first required to register, RSPA has received 
approximately 27,000 registration statements and an average of $6.9 
million to support the HMEP Grants Program.

B. Hazardous Materials Emergency Preparedness (HMEP) Grants Program

1. Purpose and Achievements of the HMEP Grants Program
    The HMEP Grants Program, as mandated by the law, establishes a role 
for the Federal government in providing financial and technical 
assistance, national direction, and guidance to enhance State, local, 
and tribal hazardous materials emergency planning and training. The 
HMEP Grants Program is designed to build upon existing programs and to 
support the working relationships within the National Response System 
and the Emergency Planning and Community Right-To-Know Act of 1986 
(Title III). 42 U.S.C. 11001 et seq. The grants are used to develop, 
improve, and implement emergency plans, to train public sector 
hazardous materials emergency response employees to respond to 
accidents and incidents involving hazardous materials, to determine 
flow patterns of hazardous materials within a State and between States, 
and to determine the need within a State for regional hazardous 
materials emergency response teams.
    The grants program was designed to encourage the growth of 
hazardous materials planning and training programs of State, local and 
tribal governments. To ensure this growth, Sections 5116(a)(2)(A) and 
5116(b)(2)(A) of the law require a State or Native American tribe 
applying for grants to certify that the amount it expends on hazardous 
materials planning and training, not counting Federal funds, will at 
least equal the average amount spent for these purposes during the last 
two fiscal years. The HMEP grants therefore represent additional funds 
that supplement the amount already being provided by the State or 
tribe. To further encourage growth in planning and training funds, 
Section 5116(e) limits the Federal share of the costs of the additional 
activity for which the grants are made to 80 percent, thus requiring 
the State or tribe to provide 20 percent of these additional costs. By 
accepting an HMEP grant, the State or tribe commits itself not only to 
maintaining its previous level of support, but increasing that level by 
an amount representing 20 percent of the funds newly expended on grant-
supported activities each year. For example, an HMEP grant of $100,000 
requires an additional commitment of $25,000 in State or tribal funds 
over the average amount expended by the agency during the previous two 
years. These additional State or tribal funds may be provided in the 
form of direct fiscal support or through the provision of in-kind 
resources.
    Effective responses to hazardous materials incidents depend on the 
extent and quality of planning and training. Generally, a State 
Emergency Response Commission (SERC) coordinates the activities of the 
Local Emergency Planning Committees (LEPCs). The nation's more than 
3,000 LEPCs prepare and, in the case of an emergency, implement 
emergency plans that delineate how responders coordinate activities at 
the scene of an incident. Emergency plans include: (1) commodity flow 
studies to determine the materials most likely to create an emergency; 
(2) exercise plans to test the effectiveness of emergency response; and 
(3) training requirements for responders. RSPA awards grants to 
agencies designated by a State or territorial Governor or tribal 
leader. These agencies are primarily emergency response and 
environmental protection agencies and Native American tribal 
governments. The designated agency distributes funds within the State, 
territory, or Native American tribe in accordance with HMEP grant rules 
and required certifications. Each grant is made in two portions. Under 
49 U.S.C. 5116(a), the first portion of grant funds is awarded for 
developing, improving, and implementing emergency plans under Title 
III; conducting commodity flow studies; and determining the need for 
regional hazardous materials response teams. In each year, RSPA 
allocates approximately 40 percent of the grant funds for emergency 
preparedness planning purposes.
    The second portion of the grant is designated for training. RSPA 
allocates approximately 60 percent of the grant funds for emergency 
preparedness training purposes. This portion is used to train public 
sector employees to respond safely and efficiently to accidents and 
incidents involving hazardous materials. The people trained include 
paid and volunteer firefighters, police, and emergency medical service 
providers. The designated agencies distribute the major portion of the 
grants to local emergency response organizations. This system promotes 
representation of many interests within a State or territory.
    The States are also required by Section 5116(a)(2)(B) to pass at 
least 75 percent of the planning grant amount to LEPC's to develop 
emergency plans, and by Section 5116(b)(2)(C) to make available at 
least 75 percent of the training grant amount for training public 
sector employees employed or used by a political subdivision of the 
State. These provisions ensure that funds are provided to the local 
emergency response teams for planning purposes, and that training is 
provided to first responders.
    Since 1993, all States and territories and 35 Native American 
tribes have been awarded planning and training grants totaling $38.6 
million. These grants, which were supplemented by funds from States, 
tribes, and local agencies, were used to:
     Train 576,000 hazardous materials responders;
     Conduct 1,825 commodity flow studies;

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     Write or update more than 1,000 emergency plans during the 
first grant period, 1,200 in the second, 4,475 in the third, and 5,775 
in the fourth;
     Conduct 2,850 emergency response exercises; and
     Assist 1,200 LEPCs during the first year, 2,225 in the 
second, 2,150 in the third, and 1,900 in the fourth.
    In addition, over the past six years, HMEP Grants Program funds 
have been used to support the following related activities in the total 
amounts indicated:
     $2.1 million for development and periodic updating of a 
national curriculum of courses necessary to train public sector 
emergency response and preparedness teams. The curriculum guidelines, 
developed by a committee of Federal, State, and local experts, include 
criteria for establishing training programs for emergency responders at 
five progressively more skilled levels: first responder awareness, 
first responder operations, hazardous materials technician, hazardous 
materials specialist, and on-scene commander. To date, there have been 
three major and many minor updates to the curriculum guidelines. The 
guidelines are used to qualify courses for inclusion in the list. In 
this way, a national list of courses is generated in full partnership 
with the States and other interested parties. In addition, RSPA used 
some of the registration fees to distribute more than 16,000 copies of 
the HMEP interagency-developed curriculum guidelines to grantees, 
LEPCs, SERCs, and local fire departments. A small portion of the funds 
is used for coordination with other Federal agencies through the 
National Response Team Training/Curriculum Sub-Committee, chaired by 
RSPA. The guidelines are available from the Federal Emergency 
Management Agency (FEMA) via its internet web site at http://
www.fema.gov/emi/hmep or by calling FEMA at 301-447-1009.
     $1.7 million to monitor public sector emergency response 
planning and training for an accident or incident involving hazardous 
materials, and to provide technical assistance to a State or Native 
American tribe for carrying out emergency response training and 
planning for an accident or incident involving hazardous materials.
     $3.3 million for periodic updating and distribution of the 
North American Emergency Response Guidebook.
     $0.5 million for supplemental grants to the International 
Association of Fire Fighters (IAFF) to train instructors to conduct 
hazardous materials response training programs.
     $2.0 million for administrative costs of carrying out the 
HMEP Grants Program.
    The HMEP Grants Program has allowed RSPA to support a wide array of 
emergency preparedness planning and training activities of States and 
Native American tribes, thereby enabling them to better respond to 
numerous hazardous-materials-related emergencies. The experiences of 
emergency response personnel in actual emergency situations during the 
last six years demonstrate the effectiveness of the grants program. A 
few representative examples attest to the benefits of this program:
     On October 25, 1995, a tank car containing nitrogen 
tetroxide ruptured in Bogalusa, Louisiana, causing evacuation of a 
large part of the town. The emergency plans of St. Tammany and 
Washington parishes, written and updated in part with HMEP grants 
funds, were implemented during this accident. Sergeant Robert Pinero of 
the Louisiana State Police said, ``Twelve State and local agencies 
involved in the Bogalusa response received training because of the HMEP 
Grants Program and we were able to effectively respond to this 
accident.''
     On April 21, 1996, an explosion at a chemical plant in 
Lodi, New Jersey, killed four people. Local emergency plans had 
recently been updated with HMEP grant funds to include a transportation 
perspective and updated mutual aid plans. According to Sergeant Lance 
Oram of the New Jersey State Police, ``Mutual aid from surrounding 
communities, made possible by updated plans, was critical to limiting 
the effect of the accident, as was hazardous materials emergency 
training of local responders.''
     The Commonwealth of Virginia has implemented a hazardous 
materials response team organization in part with HMEP funding. Steven 
Patrick, Hazardous Materials Officer for the Virginia State Department 
of Emergency Services, stated, ``It would have been impossible to 
implement or maintain the response team organization without the 
training and planning grants provided by the HMEP Grants Program.'' 
Virginia's regional response team approach was used in Lynchburg, 
Virginia, on March 31, 1998, when a 61-car freight train carrying 
acetone derailed and an explosion and fire occurred, resulting in the 
evacuation of a 36-block area, including a school, and $1 million in 
damages to a nearby storage warehouse. Two regional hazardous materials 
teams trained to the technician level using HMEP grant funds responded 
to this accident. The availability of trained teams was instrumental in 
minimizing the time and expense necessary to respond to the accident 
according to the Virginia Department of Emergency Services.
2. Increased Funding of the HMEP Grants Program
    The HMEP Grants Program has accomplished much in a short period of 
time, but many needs are not being met. Between 1993 and 1998, the 
average of $6.4 million available for planning and training grants has 
been only 50% of the $12.8 million authorized by the law for these 
purposes ($5 million for planning and $7.8 million for training). The 
HMEP training grants are essential for providing adequate training of 
those persons throughout the nation responsible for responding to 
emergencies involving the release of hazardous materials, both through 
direct Federal financial assistance for such training and by 
encouraging the provision of additional state and local funds for this 
purpose.
    In a recent review, RSPA estimated that 800,000 shipments of 
hazardous materials make their way through the national transportation 
system each day. These shipments range in size and type from single 
small parcels of consumer commodities, such as flammable adhesives and 
corrosive paint strippers, to bulk shipments of gasoline in cargo tank 
motor vehicles and flammable or toxic gases in railroad tank cars. Such 
shipments are transported in every State, every day of the year, and it 
is impossible to predict with any degree of certainty when and where an 
incident may occur. The potential threat requires the development of 
emergency plans and training of emergency responders on the broadest 
possible scale. Yet, RSPA also believes there are over 2 million 
emergency responders requiring initial training or periodic 
recertification training, including more than 250,000 paid 
firefighters, 800,000 volunteer firefighters, 725,000 law enforcement 
officers, and 500,000 emergency medical services (EMS) providers.
    The continuing need for training for emergency response personnel, 
whether paid or volunteer, is partially the result of a relatively high 
rate of turnover. Emergency response personnel must be available at any 
time and at a moment's notice to respond to situations that by their 
very nature are unpredictable and pose a threat not only to the public 
in general but to the responder in particular. This turnover means that 
each year there is a significant number of recently recruited 
responders who must be trained at the most basic level.

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In addition, training at more advanced levels is not simply desirable, 
it is essential if emergency response personnel capable of effectively 
and safely responding to serious releases of hazardous materials are to 
be provided. For this reason, RSPA advocates advanced training at the 
first responder operations, hazardous materials technician, hazardous 
materials specialist, and on-scene commander levels in every emergency 
response team in the country. An increase in the funds available to the 
HMEP Grants Program will encourage the State, tribal, and local 
agencies to provide this more advanced, and more expensive, training.
    The unmet needs of States and Native American tribes for financial 
assistance in emergency preparedness planning and training for 
transportation-related incidents involving hazardous materials are 
great. RSPA is determined to narrow the current gap between the 
authorized grant levels and the available Federal funds by its careful 
targeting of the additional funds collected as a result of this 
rulemaking. RSPA believes that it is essential to increase the awards 
for emergency planning and training grants to the full $12.8 million 
authorized by the law and, at the same time, maintain current funding 
of the additional activities supported by the HMEP Grants Program 
described above. We fully expect that the additional funds collected as 
a result of this rulemaking effort will enable us to achieve that 
objective. For FY-2000, RSPA is seeking Congressional appropriations of 
$14.3 million in support of HMEP Grants Program activities to permit 
funding for:
     Training and planning grants ($12.8 million);
     Grants/support to certain national organizations to train 
instructors to conduct hazardous materials response training programs 
($250,000);
     Revising, publishing, and distributing the North American 
Emergency Response Guidebook ($600,000 per year average);
     Monitoring and technical assistance ($150,000);
     Continuing development of a national training curriculum 
($200,000); and
     Administering the grants program ($300,000).

II. Meeting the Need for Increased Funding

A. Publicity Campaigns to Notify Affected Persons

    RSPA has conducted extensive outreach efforts to increase awareness 
of the registration requirement. Approximately 780,000 informational 
brochures have been distributed through direct mailing campaigns and 
during presentations to industry. Those mailing campaigns targeted, 
among others:
    (1) More than 60,000 carriers and shippers identified as carriers 
or shippers of hazardous materials by the Federal Highway 
Administration's (FHWA) Office of Motor Carriers (OMC);
    (2) 6,000 motor carriers required to maintain financial 
responsibility in the amount of $1 million or $5 million in insurance;
    (3) 700 railroad companies known to the Federal Railroad 
Administration (FRA);
    (4) More than 22,000 generators and 13,000 transporters of 
hazardous waste identified by the Environmental Protection Agency;
    (5) Over 16,500 carriers and shippers identified in RSPA's 
Hazardous Materials Incident Reporting System;
    (6) Approximately 4,000 holders of hazardous materials exemptions 
issued by RSPA;
    (7) Thousands of shippers and carriers who are members of trade 
associations with interests in the transportation of hazardous 
materials; and
    (8) Thousands of carriers and shippers known to State agencies.
    To avoid duplication of mailings when possible, RSPA has cross-
checked its registration data base with other lists provided by the 
various Federal and State agencies and industry sources. Annually, RSPA 
mails registration brochures and forms to hazardous materials shippers 
and carriers newly entered into the OMC census of highway carriers and 
shippers and into the RSPA list of shippers and carriers named on the 
hazardous materials incident report form. The registration program has 
been publicized in trade magazines and industry newsletters. Seven 
notices of the registration requirements have been published in the 
Federal Register.

B. Measures to Enhance Compliance

    Many commenters to Docket HM-208B (60 FR 5822, January 30, 1995) 
questioned whether a significant number of persons required to register 
failed to do so, and whether an accelerated enforcement program would 
raise sufficient funds to support the HMEP Grants Program fully. In 
1994, to ensure compliance with the registration requirements, RSPA 
proposed that offerors and transporters verify the registration status 
of each other before transportation begins (Docket HM-208A, 59 FR 
15602, April 1, 1994). Most commenters opposed this proposal. 
Commenters overwhelmingly believed that Federal and State agencies, and 
not industry, should be responsible for enforcing the regulations. 
Commenters opposing this proposal cited logistical problems, 
administrative burdens, and increased costs as reasons for their 
opposition. RSPA did not adopt the proposal in the final rule (59 FR 
32930, June 27, 1994).
    The DOT modal administrations have incorporated verification of 
registration into their normal compliance inspection routines. 
Enforcement efforts sponsored by FHWA indicate a relatively high 
compliance rate by motor carriers. Enforcement of the registration 
requirements was a key element of ROADCHECK-93, and ROADCHECK-95, 
nationwide inspection efforts led by FHWA. In ROADCHECK-93, of 2,300 
placarded trucks that were checked for proof of registration, 88% were 
registered and had proof on board. Of the 12% that did not have proof 
on board, 80% were already registered. In ROADCHECK-95, 1,220 placarded 
trucks were stopped. Of these, 91% were registered and had proof of 
registration on board. Of the 9% that did not have proof on board, 60% 
were registered. This indicates a compliance rate among highway 
carriers of over 95%.
    The safety compliance reviews conducted by FHWA (motor carriers) 
and RSPA (non-bulk shippers and other offerors) confirm high rates of 
compliance with the registration rule by industry. The following table 
contains a summary of compliance statistics.

                Summary of Compliance Reviews--Hazardous Materials Registration Rule (1995-1997)
----------------------------------------------------------------------------------------------------------------
                                                                                     Number of
                                                                     Number of     citations for    Percent of
                        Period and agency                           inspections     failure to      failures to
                                                                                     register        register
----------------------------------------------------------------------------------------------------------------
FY 95 FHWA......................................................           2,338             100             4.3
FY 96 FHWA......................................................           3,215              79             2.5
FY 97 FHWA......................................................           1,369              44             3.2

[[Page 18790]]

 
FY 98 FHWA......................................................           2,032              35             1.7
CY 95 RSPA......................................................             586              19             3.2
CY 96 RSPA......................................................             610              15             2.5
CY 97 RSPA......................................................             875              20             2.3
CY 98 RSPA......................................................           1,053              26             2.5
----------------------------------------------------------------------------------------------------------------

    FRA publicized the registration program through technical bulletins 
and informational brochures distributed to its regional offices and all 
FRA inspectors. FRA checks for registrations during compliance reviews 
and issues notices of defects for failure to register. FRA, FHWA, and 
28 State enforcement agencies have issued more than 700 informal 
notices of the requirement to register, a form developed for use in 
ROADCHECK-93, but used beyond that operation. The majority of these 
notices were issued in 1993, 1994, and 1995.
    RSPA's goal remains 100% compliance. Therefore, RSPA once again 
requests assistance from all interested persons to identify those 
elements of affected industries, or individual companies, that they 
suspect are required to file a registration statement and pay a fee, 
but have not done so. Suspected violations of the registration 
requirements, as well as other possible violations of the Hazardous 
Materials Regulations, may be reported by calling RSPA's Hazardous 
Materials Regulations Information Center at (800) 467-4922.

C. DOT Inspector General Recommendations

    In 1996 the DOT Office of Inspector General performed a review of 
the hazardous materials registration program, concentrating on RSPA's 
efforts to inform the public of the registration requirements. The OIG 
issued a ``Management Advisory'' on April 3, 1998, as a result of this 
review, which made several recommendations, including one that called 
on RSPA to establish a graduated registration fee schedule based on the 
types and quantities of hazardous materials transported in order to 
increase the grants program funds. That recommendation is addressed in 
this notice. The other recommendations were related to increasing 
RSPA's efforts to encourage compliance with the current registration 
requirements through additional public information efforts.
    To implement these recommendations, in May 1998 RSPA sent brochures 
to 42,300 companies that were identified as carriers or shippers of 
hazardous materials by the OMC. All of these companies had previously 
been sent information on the registration program since 1992. In 
October 1998 RSPA resent brochures to 33,000 of these companies in an 
effort to ensure that companies likely to be required to register had 
been informed of the registration program. RSPA also mailed 
registration information to 6,229 companies in the OMC insurance record 
database that are insured for $1 million or $5 million. RSPA estimates 
that approximately 800 companies registered as a result of the May 1998 
mailing and approximately 200 in response to the October 1998 mailing. 
While these new registrations provide an additional $250,000 in annual 
fees to support the HMEP Grants Program, it is an amount far short of 
what is necessary to enhance funding for the program at the intended 
level. The results of this effort are consistent with RSPA's finding 
that at least 90% of the persons required to file a registration 
statement and pay a fee are complying with the current rule, and that 
little additional levels of revenue may be obtained by a more 
aggressive compliance enforcement effort.

D. RSPA's Past Proposal to Increase Funding the Grants Program

    On January 30, 1995, RSPA published a notice of proposed rulemaking 
under Docket HM-208B (60 FR 5822) proposing a three-tier registration 
fee schedule. The proposed registration fee schedule was based on 
various factors related to the extent of a company's involvement in the 
transportation of hazardous materials. After considering over 300 
comments from the public and other interested parties, RSPA concluded 
that it needed more time to assess the registration and grant programs 
and to reconsider fee equity based on the risks posed by various types 
and quantities of hazardous materials. A final rule adopting some minor 
revisions to the registration program, but maintaining a flat fee of 
$300, was published on May 23, 1995 (60 FR 27231). In the four years 
since that proposal, providing funds to support planning and training 
aspects of the HMEP Grants Program at the levels authorized by Congress 
has been an important goal for RSPA and the grant recipients.

E. Negotiated Rulemaking Convening Report

    RSPA has considered advice, comments, and suggestions from the 
public and interested industry groups made in previous rulemakings, and 
at meetings, seminars, workshops, and discussions concerning the 
reauthorization of the hazardous materials safety program. In the 
Spring of 1998, in anticipation of this proposed rulemaking, RSPA 
awarded a contract to assess the feasibility of addressing this issue 
through a negotiated rulemaking. The convenor contacted approximately 
40 representatives of the hazardous materials industry and State 
regulatory agencies affected by the registration and grants programs to 
ascertain issues of concern to these parties. The convenor recommended 
that RSPA should proceed to use the negotiated rulemaking process to 
develop an NPRM on the registration and fee requirements.
    Although RSPA determined not to convene a committee, the convening 
report has been useful in formulating this current proposal. A copy of 
the Convening Report has been entered into this docket and is available 
for review through DOT's Docket Unit and via the Internet at the URL 
indicated in the addresses section of this document.

III. Proposal to Increase Funding of the HMEP Grants Program

    In setting a registration fee, RSPA believes that its proposal 
should meet the following objectives: (1) Be simple, straightforward, 
and easily implemented and enforced; (2) employ an equity factor that 
reflects the differences between the risk imposed on the public by the 
business activities of large and small businesses; (3) ensure the 
adequacy of funding for the HMEP Grants Program; and (4) be consistent 
with the law.

[[Page 18791]]

    Alternatives considered by RSPA for increasing the funds available 
for the HMEP Grants Program included: (1) Increasing the flat fee 
imposed on current registrants; (2) imposing a flat-fee on an expanded 
base of registrants; (3) imposing a two-tier fee schedule on the 
current registrants; and (4) imposing a two-tier fee schedule on an 
expanded base of registrants. RSPA has concluded that imposing a two-
tiered fee schedule on an expanded base of registrants is the best 
approach to meet the objectives listed above. The preliminary 
regulatory evaluation prepared in support of this notice of proposed 
rulemaking contains a discussion of each of those alternatives. A copy 
of the preliminary regulatory evaluation was entered into the docket 
and is available for review by all interested parties.

A. Impose a Two-Tier Fee Schedule on an Expanded Base of Registrants

    RSPA proposes to expand the number of persons required to register 
and to impose a fee schedule based on the size of the business. The 
base of registrants would be expanded to all persons offering or 
transporting a shipment of hazardous materials that requires 
placarding, with the exception of farmers, as discussed below. A two-
tier fee schedule would be created, with the lower fee imposed on 
registrants meeting the U.S. Small Business Administration (SBA) 
criteria for a small business, also discussed below. This alternative 
would distribute fees according to a long-established measurement of 
business size and ensure the collection of sufficient funds to support 
the HMEP Grants Program at an enhanced level. Under this proposal, RSPA 
would achieve its goal of raising $14.3 million annually (exclusive of 
funds collected for administrative processing), by collecting a fee of 
$300 (which includes a $25 processing fee) from approximately 43,500 
registrants that are small businesses and a fee of $2,000 (which 
includes a $25 processing fee) from an estimated 1,500 registrants not 
meeting the criteria for a small business. Should the amount actually 
collected exceed $14.3 million, the law, at Sec. 5108(g)(2)(B), 
specifies that the Secretary of Transportation shall adjust the amount 
being collected to reflect any unexpended balance in the account. 
However, the Secretary is not required to refund any fee.
    This alternative recognizes the risks posed to health and safety or 
property by the transportation of hazardous materials in significant 
quantities that require placarding. It would require that shippers, 
carriers and other persons involved in the shipment of a placarded load 
of hazardous materials bear a fair share of the financial burden that 
falls on State and local government agencies to develop emergency plans 
and to train first-on-the-scene responders.
Expanded Base
    RSPA proposes to expand the base of persons required to register to 
include, with one exception, offerors, carriers, and other persons who 
transport or cause to be transported hazardous materials in a bulk 
packaging, freight container, unit load device, transport vehicle, or 
rail car that must display a hazard warning placard, under the 
provisions of subpart F of part 172 of the Hazardous Materials 
Regulations (HMR; 49 CFR parts 171-180).
    The one exception is for those activities of a ``farmer,'' as 
defined in Sec. 171.8 of the HMR, that support the farmers farming 
operations. Absent this exception, the registration rule would 
potentially apply to a very large number of the nation's more than two 
million farms. If the actual number of affected farmers were only one 
percent of the total number of farms, i.e., 20,600, that segment of the 
economy would nearly equal the current number of 27,000 registrants 
drawn from all segments of the economy. However, this is not a blanket 
exception for all farmers from the registration rule. If a farmer 
offers for transportation or transports in commerce a hazardous 
material that is specifically identified in Sec. 5108(a)(1) of the law, 
that farmer must submit a registration statement and pay the required 
fee.
    RSPA's proposal to expand the base of persons required to register 
by including all placarded loads is responsive to concerns raised by 
numerous persons who participated in earlier rulemaking proceedings on 
this topic and through the convening process discussed earlier in this 
preamble. This proposed expansion of the base to include all placarded 
loads incorporates three important elements. First, the classes and 
quantities of hazardous materials for which placarding is required pose 
a substantial threat to health and safety or property during 
transportation. Second, the application of generally well understood 
hazard communication criteria for placarding greatly simplifies the 
matter of whether a shipper, carrier or other person is required to 
register. Simplification of the regulations similarly makes the rule 
much easier to enforce, thereby further assuring a high rate of 
compliance. Third, by expanding the scope of the registration rule RSPA 
expects that it will have the financial resources necessary to increase 
funding of planning and training grants under the HMEP Grants Program 
to levels currently authorized by the law.
    RSPA estimates that the proposed expansion of the universe of 
additional persons required to register will result in an additional 
15,000 to 18,000 registrations, for a total of 42,000 to 45,000 
annually. This is based on RSPA's review of the best available data 
from a number of sources, including the FHWA's Office of Motor Carriers 
(OMC) database of motor carriers and their shippers, the 1992 Truck 
Inventory and Use Survey conducted by the U.S. Census Bureau, and the 
1992 Economic Census, also conducted by the U.S. Census Bureau.
    While none of these sources discussed above contain the number of 
persons who offer or transport hazardous materials in shipments that 
require placarding, RSPA believes its estimate of the total number of 
registrants is conservative and reasonable. We request information on 
other sources from which to better estimate the number of persons who 
would be required to register under the proposed rule. If such new 
information suggests a number significantly larger than RSPA's current 
estimate, RSPA would consider adjusting the proposed registration fees 
to avoid collecting an amount in excess of the $14.3 million needed to 
enhance funding of the HMEP Grants Program.
    In addition, RSPA is interested in public comments on the 
advisability of expanding the number of persons required to register as 
proposed above, especially in relation to the economic impact of 
adopting or not adopting this element of the proposal.
Two-tier Schedule of Fees
    RSPA proposes a two-tier fee schedule based on information that: 
(1) Is readily available to potential registrants; (2) can be verified 
by inspection and enforcement personnel; and (3) is based on one or 
more of the fee determinants permitted by law. Although the 
registration statement is excepted by 49 U.S.C. 5108 from requirements 
of the Paperwork Reduction Act, RSPA seeks to avoid any approach that 
entails a large record keeping and accounting burden on industry and 
the government. For example, basing the annual registration fee on a 
person's hazardous materials shipments could require significant 
changes in the way a registrant handles its paperwork tracking and 
accounting procedures. Further, law enforcement personnel would have to 
verify this information in order to ensure that a person's annual fee 
is in fact commensurate with its activities.

[[Page 18792]]

    RSPA believes that its goals are best met by establishing a two-
tier fee schedule under which a company not meeting the small-business 
criterion established for it by the SBA at 13 CFR 121.201 pays a larger 
fee than that required for a small business. Upon careful review of 
census data concerning establishments identified by SIC codes 
corresponding to operations involving the likely manufacture, 
distribution, or sale (wholesale and retail) of hazardous materials, 
RSPA estimates that of the 27,000 current registrants, approximately 
1,000 registrants do not qualify as a SBA small business. If the base 
of registrants is expanded to include all persons who offer or 
transport placarded shipments, RSPA estimates that 1,500 shippers, 
carriers, and offerors of hazardous materials would not qualify as a 
SBA small business, while an estimated 43,500 registrants would meet 
the criterion established by SBA appropriate to their commercial 
activity.
    RSPA believes this regulatory approach provides fee levels that 
reflect a key factor contained in 49 U.S.C. 5108(g)(2)(A), 
specifically, the relative size of a business. In addition, this 
proposal addresses the different levels of risk posed by smaller 
companies that are engaged in fewer and smaller shipments of hazardous 
materials as compared to larger companies that annually manufacture, 
offer, and transport thousands of tons of hazardous materials. RSPA 
maintains that five of the specific factors permitted by 49 U.S.C. 
5108(g)(2)(A) as fee determinants were intended to be indications of 
the level of risk imposed by the registrant, and that two were intended 
to be indications of the size of the business (see the list of fee 
determinants above). Use of the SBA standards for differentiating small 
businesses offers a simple and direct factor that is commonly used and 
established by Federal regulation. The use of alternative size 
criteria, even though they could be defined to reflect, for instance, 
the relative percentage of specific hazardous materials related 
businesses, would impose additional and possibly significant record-
keeping requirements on the registrants.
    RSPA believes that the use of the SBA size criteria as a fee 
determinant will not impose any additional recordkeeping requirements 
on the registrants since existing personnel and payroll records can be 
used to substantiate the number of employees, and financial records 
subject to routine audits can be used to substantiate gross annual 
receipts.
    The SBA size standards for small businesses are readily available 
and relatively simple to apply to a business. Each Standard Industrial 
Code is assigned a standard that is either the number of employees or 
the gross annual receipts of the business. If a registrant's number of 
employees or gross annual receipts is equal to or less than the 
standard assigned to the SIC category that best describes its 
commercial activities, it qualifies as a small business. In most 
instances a registrant will be able to immediately determine whether it 
meets the small business definition. For instance, the size standard 
for SIC Division D (Manufacturing) is the number of employees, and 
depending on the product manufactured can be 500, 750, 1000, or 1,500. 
Any registrant whose primary business is manufacturing that employs 500 
persons or less, will qualify as a small business, and, again depending 
on the SIC code, may qualify as a small business with up to 750 or 1000 
employees. Registrants whose primary business falls within the SIC 
Major Group ``Motor Freight Transportation and Warehousing'' are 
defined as small businesses if the gross annual receipts are equal to 
or less than $18.5 million, with two exceptions (``Garbage and Refuse 
Collection, without Disposal'' has an upper limit of $6.0 million, and 
``Terminal and Joint Terminal Maintenance Facilities for Motor Freight 
Transportation'' has a limit of $5.0 million). Here again, RSPA 
believes that most motor carriers will immediately recognize whether 
they meet the SBA criterion for a small business.
    The SBA size criteria in 13 CFR part 121 are applied to a 
``business concern'' or ``business entity.'' For the purposes of 
determining the appropriate registration fee, the SBA criteria are to 
be applied to the registering ``person'' as defined in 49 CFR 107.3, 
even if that ``person'' is substantively different from the SBA 
``concern'' or ``entity.'' For example, the SBA, at 13 CFR 121.103(a), 
sometimes looks beyond the specific operations of a legally organized 
business to consider whether its affiliation with another business 
concern or business entity through identical or substantially identical 
business or economic interests, such as family members, persons with 
common investments, or firms that are economically dependent through 
contractual or other relationships, may be treated as one party with 
such interests aggregated. In its application of requirements for 
registration RSPA makes no such distinction and each business concern 
or business entity subject to the registration regulation would be 
required to file a separate registration statement and pay the 
appropriate fee.
    Under this proposal, a foreign carrier that transports a specified 
type and quantity of hazardous material within the United States would 
have to determine its small-business status by applying the criteria in 
13 CFR 121.201, using the U.S. Dollar equivalent of annual receipts or 
the number of employees, as appropriate.
    RSPA is interested in public comments on the advisability of 
imposing a two-tier schedule of fees as proposed above, particularly in 
relation to the alternative of maintaining the greater simplicity of a 
flat fee collected from all registrants regardless of their business 
size or amount and type of hazardous materials activities.
    Lower Administrative Fee for All Registrants.
    In this notice, RSPA proposes to reduce the processing fee to $25 
in order to bring the aggregate amount collected closer to the amounts 
needed to process the registration statement and to issue the 
Certificate of Registration. All amounts collected by RSPA (including 
the processing fee) are deposited into the U.S. Treasury, and Congress 
appropriates funds for RSPA to process registration statements, issue 
registration certificates, and perform the related parts of the 
registration program. In Fiscal Years 1996-99, the amounts needed by 
RSPA to administer the registration program, and appropriated by 
Congress, have been about one-half of the total processing fees 
collected. Although the current proposal would increase the number of 
persons required to register and pay a registration fee, RSPA estimates 
that a processing fee of $25 per registration statement will still be 
necessary and sufficient to administer the registration program at that 
level.

B. Registration Procedures

    In connection with the proposed fee schedule, RSPA notes that 
additional information would be required on the Registration Statement 
submitted by persons subject to the registration requirements. The 
proposed new information includes the SIC Code and certification of 
whether the registrant meets the SBA standards for a small business. 
The SIC Code would replace the former indication of ``Industrial 
Classification'' on the Registration Statement.
    At the request of various industry representatives, RSPA is also 
proposing to permit registration for one, two, or three years on a 
single registration

[[Page 18793]]

statement. Registration for more than a single year would be strictly 
optional. Registrants that register for years in advance would not 
receive RSPA's courtesy mailing of registration materials in the years 
for which they have pre-registered, but would receive a notice to 
register when their current registration is about to expire. A single 
administrative fee of $25 would be collected for each registration 
statement submitted under this proposal, whether for one, two, or three 
years, and a single registration statement and number would be issued 
for the entire period.

IV. Fiscal Year 2000 Budget Request and Hazardous Materials 
Transportation Reauthorization Proposal

    The Administration's Fiscal Year 2000 Budget and the Hazardous 
Materials Transportation Reauthorization proposals to Congress include 
legislative authority to fund RSPA's entire Hazardous Materials Safety 
Program from the registration fee program, beginning with the fourth 
quarter of fiscal year 2000. If this authority is granted, RSPA will 
initiate additional rulemaking action to collect the approximately 
$32.5 million needed to adequately fund both the HMEP Grants program 
($14.3 million) and the remainder of RSPA's Hazardous Materials Program 
($18.2 million).

V. Rulemaking Analyses and Notices

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

    This proposed rule is considered a significant regulatory action 
under section 3(f) of Executive Order 12866 and was reviewed by the 
Office of Management and Budget. The rule is considered significant 
under the Regulatory Policies and Procedures of the Department of 
Transportation [44 FR 11034]. A regulatory evaluation is available for 
review in the public docket. This proposal is intended to collect 
annual registration fees in the amount of $14.3 million to support 
activities of the HMEP Grants Program. Because Federal hazardous 
materials transportation law mandates the establishment and collection 
of fees, the discretionary aspects of this rulemaking are limited to 
setting the amount of the fee within the statutory range for each 
person subject to the registration program, and to extending the 
registration requirements to persons who transport or cause the 
transportation of hazardous materials but who are not specifically 
required to register by law. The proposed fees are not related to the 
cost of RSPA's hazardous materials safety programs. The fees to be paid 
by shippers and carriers of certain hazardous materials in 
transportation are related to the benefits received by these persons 
from the sale and transportation of hazardous materials and from 
emergency response services provided by public sector resources, should 
an accident or incident occur. The fees are also related to expenses 
incurred by State, Native American tribal, and local hazardous 
materials emergency preparedness and response activities.

B. Executive Order 12612

    This action has been analyzed in accordance with Executive Order 
12612 (``Federalism''). States and local governments are ``persons'' 
under 49 U.S.C. 5102, but are specifically exempted from the 
requirement to file a registration statement. The regulations herein 
have no substantial effects on the States, on the current Federal-State 
relationship, or on the current distribution of power and 
responsibilities among the various levels of government. This 
registration regulation has no preemptive effect. It does not impair 
the ability of States, local governments or Native American tribes to 
impose their own fees or registration or permit requirements on 
intrastate, interstate or foreign offerors or carriers of hazardous 
materials. Thus, RSPA lacks discretion in this area, and preparation of 
a federalism assessment is not warranted.

C. Executive Order 13084

    RSPA believes that revised regulations evolving from this NPRM 
would have no significant or unique effect on the communities of Indian 
tribal governments when analyzed under the principles and criteria 
contained in Executive Order 13084 (``Consultation and Coordination 
with Indian Tribal Governments''). Therefore, the funding and 
consultation requirements of this Executive Order would not apply. 
Nevertheless, this NPRM specifically requests comments from affected 
persons, including Indian tribal governments, as to its potential 
impact.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires each 
agency to review regulations and assess their impact on small entities 
unless the agency determines that a rule is not expected to have a 
significant impact on a substantial number of small entities. Based on 
its preliminary regulatory evaluation prepared in support of this 
proposal, RSPA certifies that this proposed rule would not have a 
significant economic impact on a substantial number of small entities.
    This proposal would expand the number of persons subject to RSPA's 
registration and fee program to include all persons who offer for 
transportation or transport a shipment of hazardous materials required 
to be placarded. RSPA is also proposing to maintain at the current 
level the combined registration and processing fee in the amount of 
$300 as authorized by the Federal hazardous materials transportation 
law for persons meeting the Small Business Administration (SBA) 
definition of small business. In addition, RSPA is proposing a limited 
exception for farmers that offer for transportation or transport 
certain shipments of hazardous materials in support of their farm 
operations.
    Approximately 27,000 persons registered with RSPA for each of the 
last two registration years, and these persons are expected to engage 
in hazardous materials transportation activities that require 
registration in the coming years. Approximately 65% (17,550) of these 
persons are carriers or carriers-and-shippers, the remaining 35% 
(9,450) being shippers or other offerors who do not transport hazardous 
materials. RSPA estimates that the proposed expansion of the universe 
of persons required to register will result in an additional 15,000 to 
18,000 registrations, for a total of 42,000 to 45,000 annual 
registrations. This represents the least number of registrations that 
can be reasonably expected under the proposed rule.
    The 1992 Truck Inventory and Use Survey (TIUS-92) conducted by the 
Bureau of the Census as part of the Census of Transportation indicates 
that there were 17 million trucks (not including pickups, vans, utility 
vehicles, and station wagons) in the United States. Except for a few 
specialized vehicle types, essentially all of those 17 million trucks 
may be used in the transportation of hazardous materials. With 
deregulation of the trucking industry there are essentially no economic 
barriers to entry into this field of transportation; carriers that are 
ready, willing, and able to transport hazardous materials are generally 
free to do so. The data indicate that only 360,000 of the 17 million 
trucks are actually used to carry placarded shipments of hazardous 
materials. The number of companies maintaining these trucks was not 
included in the census, but fleet sizes were provided. The number of 
fleets that included a truck that carried hazardous materials is 
estimated to be 40,000. This number contains an undetermined number of

[[Page 18794]]

farmers who would be excepted under the proposed rule.
    The number of persons who offer shipments of hazardous materials 
for transportation exclusively by rail, air, or water is thought to be 
quite small by comparison to multi-modal shippers, and probably does 
not exceed 500 to 1,000. An increase is expected in the number of motor 
carriers that would be required to register and in the number of 
persons that offer shipments of hazardous materials that require 
placarding for transportation. RSPA expects that the estimated 15,000 
to 18,000 new registrants will be divided in approximately the same 
proportion as the current mix of registrants, i.e., 65% (9,750 to 
11,700) would be carriers or carriers-and-shippers, and 35% (5,250 to 
6,300) would be persons who never transport their own shipments of 
hazardous materials. Of the estimated 15,000 to 18,000 new registrants, 
RSPA estimates that all but 400 to 500 are small businesses.
    RSPA believes the $300 in annual registration fees is so small as 
to not constitute a significant burden on any small business. For 
example, an independent owner-operator, i.e., a motor carrier not 
operating under lease to a registered motor carrier, probably 
represents the smallest of all small businesses potentially subject to 
requirements in this proposed rule. These owner-operators typically own 
one truck and average 2,000 revenue-miles per week at an estimated cost 
per mile of $0.80 cents. Assuming the typical independent owner-
operator is in service 40 weeks per year, the additional cost per mile 
attributed to $300 in registration and processing fees is $0.00375 
cents. Stated differently, the independent owner-operator's increased 
cost of doing business would be less that one-half of 1% of current 
costs. That does not represent a significant impact on an independent 
owner-operator's cost of doing business.
    As indicated above, there are nearly 17 million vehicles in either 
private commercial operations or for-hire service. Assuming, on the 
basis of census data, that one-truck-only operators comprise 28% of the 
national fleet, it follows that there are at least 4.25 million 
concerns that could, at their discretion, engage in the transportation 
of hazardous materials. In this analysis, RSPA notes that the estimated 
total number of 9,750 to 11,700 persons described as carriers or 
carriers-and-shippers that the agency expects would be subject to the 
requirement to register is less than one-half of 1% of the 4.25 million 
very small carriers that comprise the for-hire and commercial business 
services sector of the national economy. That is neither a substantial 
number of all potentially affected transporters, nor is it a 
substantial number of the 97% of those operators that RSPA believes 
meet SBA criteria for a small business.

E. Unfunded Mandates Reform Act of 1995

    This proposed rule would not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It would not result in costs of 
$100 million or more, in the aggregate, to any of the following: State, 
local, or Native American tribal governments, or the private sector. 
This proposed rule is the least burdensome alternative that achieves 
the objective of the rule.

F. Paperwork Reduction Act

    Under 49 U.S.C. 5108(i), reporting and recordkeeping requirements 
pertaining to the registration rule are specifically excepted from 
information management requirements of the Paperwork Reduction Act (44 
U.S.C. 3501 et seq.)

G. Impact on Business Processes and Computer Systems (Year 2000)

    Many computers that use two digits to keep track of dates may, on 
January 1, 2000, recognize ``double zero'' not as 2000 but as 1900. 
This glitch, the Year 2000 problem, could cause computers to stop 
running or to start generating erroneous data. The Year 2000 problem 
poses a threat to the global economy in which Americans live and work. 
With the help of the President's Council on Year 2000 Conversion, 
Federal agencies are reaching out to increase awareness of the problem 
and to offer support. We do not want to impose new requirements that 
would mandate business process changes when the resources necessary to 
implement those requirements would otherwise be applied to the Year 
2000 problem.
    This NPRM does not propose business process changes or require 
modification to computer systems. Because the NPRM apparently does not 
affect organizations' ability to respond to the Year 2000 problem, we 
do not intend to delay the effectiveness of the proposed requirements 
in the NPRM.

H. 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.

    Accordingly, RSPA proposes to amend 49 CFR part 107 as follows:

PART 107--HAZARDOUS MATERIALS PROGRAM PROCEDURES

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

    Authority: 49 U.S.C. 5101-5127, 44701; Sec. 212-213, Pub. L. 
104-121, 110 Stat. 857; 49 CFR 1.45, 1.53.

Subpart G--Registration of Persons Who Offer or Transport Hazardous 
Materials

    2. Section 107.601 would be revised to read as follows:


Sec. 107.601  Applicability

    (a) The registration and fee requirements of this subpart apply to 
any person who offers for transportation, or transports, in foreign, 
interstate or intrastate commerce--
    (1) A highway route-controlled quantity of a Class 7 (radioactive) 
material, as defined in Sec. 173.403 of this chapter;
    (2) More than 25 kg (55 pounds) of a Division 1.1, 1.2, or 1.3 
(explosive) material (see Sec. 173.50 of this chapter) in a motor 
vehicle, rail car or freight container;
    (3) More than one L (1.06 quarts) per package of a material 
extremely toxic by inhalation (i.e., ``material poisonous by 
inhalation,'' as defined in Sec. 171.8 of this chapter, that meets the 
criteria for ``hazard zone A,'' as specified in Secs. 173.116(a) or 
173.133(a) of this chapter);
    (4) A shipment of a quantity of hazardous materials in a bulk 
packaging (see Sec. 171.8 of this chapter) having a capacity equal to 
or greater than 13,248 L (3,500 gallons) for liquids or gases or more 
than 13.24 cubic meters (468 cubic feet) for solids;
    (5) A shipment in other than a bulk packaging of 2,268 kg (5,000 
pounds) gross weight or more of one class of hazardous materials for 
which placarding of a vehicle, rail car, or freight container is 
required for that class, under the provisions of subpart F of part 172 
of this chapter; or
    (6) Except as provided in paragraph (b) of this section, a quantity 
of hazardous material that requires

[[Page 18795]]

placarding, under provisions of subpart F of part 172 of this chapter.
    (b) Paragraph (a)(6) of this section does not apply to those 
activities of a farmer, as defined in Sec. 171.8 of this chapter, that 
are in direct support of the farmers farming operations.
    (c) In this subpart, the term ``shipment'' means the offering or 
loading of hazardous material at one loading facility using one 
transport vehicle, or the transport of that transport vehicle.
    3. In Sec. 107.608, paragraphs (a), (b), and (d) would be 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. Each registration year begins on July 1 and ends on June 30 of 
the following year.
    (b) No person required to file a registration statement may 
transport a hazardous material or cause a hazardous material to be 
transported or shipped, unless such person has on file, in accordance 
with Sec. 107.620, a current Certificate of Registration in accordance 
with the requirements of this subpart.
* * * * *
    (d) Copies of DOT Form F 5800.2 and instructions for its completion 
may be obtained from the Hazardous Materials Registration Program, DHM-
60, U.S. Department of Transportation, Washington, DC 20590-0001, by 
calling 617-494-2545 or 202-366-4109, or via the Internet at http://
hazmat.dot.gov.
* * * * *
    4. Section 107.612 would be revised to read as follows:


Sec. 107.612  Amount of fee.

    (a) Registration year 1999-2000 and earlier. For all registration 
years through 1999-2000, each person subject to the requirements of 
Sec. 107.601(a)(1)-(5) must pay an annual fee of $300 (which includes a 
$50 processing fee).
    (b) Registration year 2000-2001 and following. For each 
registration year beginning with 2000-2001, each person subject to the 
requirements of this subpart must pay an annual fee as follows:
    (1) Small business. Each person that qualifies as a small business 
under criteria specified in 13 CFR part 121 applicable to the standard 
industrial classification (SIC) code that describes that person's 
primary commercial activity must pay an annual fee of $300 (which 
includes a $25 processing fee).
    (2) Other than a small business. Each person that does not meet 
criteria specified in paragraph (b)(1) of this section must pay an 
annual fee of $2,000 (which includes a $25 processing fee).
    (3) The processing fee is limited to $25 for each registration 
statement filed for more than one year, as provided in Sec. 107.616(c).
    5. In Sec. 107.616, paragraphs (c) and (d)(2) would be revised to 
read as follows:


Sec. 107.616  Payment procedures.

* * * * *
    (c) Payment must correspond to the total fees properly calculated 
in the ``AMOUNT DUE'' block of the DOT Form F 5800.2. A person may 
elect to register and pay the required fees for up to three 
registration years by filing one complete and accurate registration 
statement.
    (d) * * *
    (2) Pay a registration and processing fee of $350 (including a $50 
expedited handling fee). For registration years 2000-2001 and 
following, persons who do not meet the criteria for a small business, 
as specified in Sec. 107.612(b)(1), must enclose payment of $1,700 with 
the expedited follow-up material, for a total of $2,050 (including a 
$50 expedited handling fee); and
* * * * *
    Issued in Washington, D.C. on April 12, 1999, under authority 
delegated in 49 CFR part 106.
Alan I. Roberts,
Associate Administrator for Hazardous Materials Safety.
[FR Doc. 99-9453 Filed 4-14-99; 8:45 am]
BILLING CODE 4910-60-P