[Federal Register Volume 68, Number 6 (Thursday, January 9, 2003)]
[Rules and Regulations]
[Pages 1342-1346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-436]



[[Page 1341]]

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

Part IV





Department of Transportation





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



Research and Special Programs Administration



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



49 CFR Part 107



Hazardous Materials: Temporary Reduction of Registration Fees; Final 
Rule

  Federal Register / Vol. 68, No. 6 / Thursday, January 9, 2003 / Rules 
and Regulations  

[[Page 1342]]


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

DEPARTMENT OF TRANSPORTATION

Research and Special Programs Administration

49 CFR Part 107

[Docket No. RSPA-00-8439 (HM-208D)]
RIN 2137-AD53


Hazardous Materials: Temporary Reduction of Registration Fees

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

ACTION: Final rule.

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

SUMMARY: RSPA is reducing the registration fees paid by persons who 
transport or offer for transportation in commerce certain categories 
and quantities of hazardous materials, in order to eliminate the 
unexpended balance in the Hazardous Materials Emergency Preparedness 
Grants Fund. RSPA is also revising its regulations to provide that a 
not-for-profit organization will pay the same registration fee as a 
small business.

EFFECTIVE DATE: March 3, 2003.

FOR FURTHER INFORMATION CONTACT: Mr. David Donaldson, Office of 
Hazardous Materials Planning and Analysis, (202) 366-4484, or Ms. 
Deborah Boothe, Office of Hazardous Materials Standards, (202) 366-
8553, Research and Special Programs Administration, U.S. Department of 
Transportation, 400 Seventh Street, SW., Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

I. Background

    Since 1992, the Research and Special Programs Administration (RSPA) 
has conducted a National registration program for persons who offer for 
transportation or transport certain hazardous materials in intrastate, 
interstate, or foreign commerce, under the mandate in 49 U.S.C. 5108. 
The purposes of the registration program are to (1) gather information 
about the transportation of hazardous material and (2) fund the 
Hazardous Materials Emergency Preparedness (HMEP) grants program that 
supports hazardous material emergency response planning and training 
activities by States, local governments, and Indian tribes and related 
activities. See 49 U.S.C. 5108(b), 5116. The law gives RSPA discretion 
to require additional persons to register, beyond those offerors and 
transporters of the categories and quantities of hazardous materials 
listed in 49 U.S.C. 5108(a)(1), and to set the annual registration fee 
between $250 and $5,000. See 49 U.S.C. 5108(a)(2), 5108(g)(2)(A).
    Until 2000, only those persons who offered or transported the 
categories and quantities of hazardous materials set forth in Sec.  
5108(a)(1) were required to register, and the annual registration fee 
was set at the minimum level of $250 (plus a processing fee of $50). In 
each year through the July 1, 1999-June 30, 2000 registration year, the 
total registration fees collected by RSPA amounted to less than one-
half of the total $14.3 million intended by Congress for training and 
planning grants and grant-related activities.
    In a final rule published in the Federal Register (65 FR 7297) on 
February 14, 2000, RSPA expanded the base of registrants and adopted a 
two-tiered fee schedule under which the registration fee was set at 
$275 for a person meeting the Small Business Administration (SBA) 
criteria for a small business, and $1,975 for other persons (plus a $25 
processing fee in all cases). A greater-than-anticipated number of 
persons has paid the higher registration fee applicable to a larger 
business. As a result, RSPA has collected more than $21 million in each 
registration year since 2000. These collections have created a surplus 
(unexpended balance) in the HMEP Fund because the current annual grants 
program obligations are limited to the $14.3 million designated by 
Congress. Section 5108(g)(2)(B) of 49 U.S.C. requires RSPA to adjust 
the amount being collected ``to reflect any unexpended balance'' in the 
HMEP Fund. Therefore, on December 7, 2000, we published a notice of 
proposed rulemaking (NPRM) in this docket proposing to temporarily 
lower the registration fee for all registrants for six registration 
years to $250 (plus a $25 processing fee) for small businesses and $475 
(plus a $25 processing fee) for all other persons. 65 FR 76890. In 
addition, we proposed to specify that a not-for-profit organization 
(regardless of its size) pay the same fee as a small business; to 
reflect SBA's replacement of the Standard Industrial Classification 
(SIC) code system with the North American Industry Classification 
System (NAICS), and to allow payment by credit cards not previously 
authorized.
    On September 16, 2002, RSPA published a final rule under Docket HM-
208E (67 FR 58343) adopting the NAICS codes, allowing payment methods 
not previously authorized, and permitting registration via the 
Internet. However, we have delayed taking final action on the fee-
related proposals in the December 7, 2000 NPRM because our budget 
requests to Congress for FY 2002 and FY 2003 proposed to fund a portion 
of RSPA's hazardous materials safety program from the excess 
registration fees (above the $14.3 million specified to be used for 
training and planning grants and grant-related activities). See the 
status documents we published in the Federal Register on May 2, 2001 
(66 FR 22080), and March 14, 2002 (67 FR 11456). Since these proposals 
were not adopted by Congress in the FY 2002 DOT appropriations and the 
FY 2003 DOT appropriations bill is pending, we are now taking final 
action on the fee-related proposals in the December 7, 2000 NPRM.

II. Discussion of Comments and Regulatory Changes

A. General

    RSPA received approximately 20 written comments to the December 7, 
2000 NPRM. The commenters included representatives of organizations and 
individuals engaged in all modes of transportation of hazardous 
materials, agricultural retailers, petroleum marketers and 
distributors, chemical manufacturers, and industry associations 
representing a broad spectrum of businesses that transport or offer for 
transport hazardous materials.

B. Reduction of Registration Fees

    Commenters supported reduction of the registration fees. However, 
some commenters opposed certain aspects of RSPA's proposal. Some 
commenters stated that RSPA should return to a single flat fee system 
or eliminate the requirement that a person must register if it offers 
or transports a quantity of hazardous materials required to be 
placarded.
    For example, the American Trucking Associations (ATA) stated that 
it supports ``the efforts of RSPA to adjust and refund registration 
fees in order to comply with statutory limits set forth in the HMTL,'' 
but it ``still disagree[s] with the need for a two-tiered registration 
fee.'' National Tank Truck Carriers (NTTC) also ``continues to believe 
that RSPA should reinstate a ``single fee'' system (as opposed to the 
proposed two-tiered structure).''
    The Petroleum Marketers Association of America (PMAA) stated that 
RSPA ``should revise the registration criteria by temporarily 
eliminating the requirement that all persons who offer for 
transportation or transport hazardous materials required to be 
placarded be registered. However, if the agency will not eliminate this 
particular group of registrants from the fee requirement, PMAA believes 
that

[[Page 1343]]

temporarily reducing the registration fee for all persons required to 
register is the best solution in eliminating the unexpended balance.''
    The Fertilizer Institute (TFI) suggested that ``RSPA consider 
capping the registration fee at $700 for other than small businesses, 
while leaving small business entities, minus the farm sector, at the 
current $250.'' TFI also urged RSPA to eliminate the registration 
requirement for a person who offers or transports hazardous materials 
that require placarding. TFI suggested that if RSPA insisted that all 
placarded loads require registration, then agricultural retailers and 
farm cooperatives should be specifically exempted from the registration 
requirement.
    The Petroleum Transportation & Storage Association (PTSA) suggested 
that RSPA eliminate the administrative fee for all registrants and the 
registration fee for small cargo tanks under 3,500 gallons. PTSA urged 
RSPA ``to use the unexpended funds to eliminate the annual registration 
fee for these ultra small shippers.''
    The National Propane Gas Association (NPGA) opposed the proposed 
reduction in the registration fees as being a ``disproportionate fee 
reduction for large businesses over small companies'' and adding 
additional confusion for companies trying to learn and comply with the 
registration requirements.
    The International Sanitary Supply Association (ISSA) recommended 
that RSPA: (1) Eliminate the surplus over a four-year instead of a six-
year period; (2) reduce the fees for small businesses to $150, and (3) 
reduce the fees for other than small businesses to $1,180.
    On July 1, 2002, fifteen industry associations filed a lawsuit in 
the United States District Court for the District of Columbia asking 
for an order prohibiting RSPA from collecting any additional 
registration fees until RSPA adjusts the amount being collected to 
eliminate the unexpended surplus in the registration fee account. 
Counsel for plaintiffs in that lawsuit stated that 49 U.S.C. 
5108(g)(2)(A) gives DOT the authority to go below the statutory minimum 
when it is trying to reduce any unexpended balance.
    In the final rule (Docket No. HM-208C) we concluded that the 
registration program should: (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. See 65 FR 7303. We found that the most appropriate way to meet 
these objectives was to expand the category of persons required to 
register to include all persons who offer for transportation or 
transport hazardous materials that require placarding (with a limited 
exception for farmers) and to adopt a two-tiered fee schedule under 
which persons meeting the SBA criteria for defining a small business 
would pay a lower fee than larger businesses.
    For all the reasons discussed in the February 14, 2000 final rule, 
we still believe that the findings and conclusions discussed in that 
rule are justified and, as far as possible, should be followed in 
adjusting the registration fees to reduce the unexpended surplus in the 
HMEP grants fund. Therefore, we disagree with suggestions that we 
except from registration persons added in the 2000 final rule. The 
present system, using the placarding requirement as a primary 
determinant, is risk-based and facilitates enforcement--especially by 
State and local enforcement personnel.
    The recommendation that the processing fee be eliminated and 
replaced by an increase in the grants fee for registrants that do not 
meet the SBA standards for a small business did not take into 
consideration that the costs of processing the registration statement 
are not expenses authorized to be paid from the grants account. The 
costs of administering the registration program are provided in the 
Department's annual budget authorizations from General Treasury funds--
unlike the grants program expenses, which are statutorily authorized to 
be paid from the grants account. Although the separate statutory 
authority for the processing fee is permissive, it is the Department's 
understanding that this permissive authority reflects Congressional 
intent that the registration program costs be covered by collection of 
that fee.
    When the NPRM was published in December 2000, we estimated that the 
unexpended balance in the grants fund was approximately $8.5 million 
(65 FR 76890, December 7, 2000). Since that time, two further 
collection cycles have occurred. The number of registrations received 
during a fiscal year (including registrations for prior years and fees 
paid in previous years for the current registration year) has remained 
constant at approximately 41,000, as has the percentage of registrants 
that have paid the larger business fee (approximately 15 percent). We 
currently estimate that, as of October 1, 2002, the unexpended balance 
in the grants fund was approximately $25 million.
    Because of this increase in the unexpended balance, RSPA believes 
that it is necessary to adopt reductions in the registration fees that 
are even greater than originally proposed. Therefore, we are 
temporarily (for three years) reducing the registration fee for small 
businesses and non-profit organizations (regardless of their size) to 
$125 (plus a $25 processing fee) and for all other registrants to $275 
(plus a $25 processing fee). RSPA is able to set the fee level for 
small businesses below the usual statutory minimum of $250 because the 
minimum (49 U.S.C. 5108(g)(2)(A)) is subject to the requirement (49 
U.S.C. 5108(g)(2)(B)) that the Secretary adjust the amount being 
collected to reflect any unexpended balance.
    Under this temporary fee system, we estimate that we will collect 
approximately $6.0 million each fiscal year, thus decreasing the grants 
fund balance by approximately $8.3 million a year. This estimate 
depends on the number of persons registering for the current and prior 
years remaining constant and the authorization for the HMEP grants 
program remaining constant at $14.3 million per year. At this rate of 
reduction, it will take about three years to deplete the surplus. 
Therefore, RSPA is temporarily reducing the registration fee for three 
years.
    In the NPRM, we stated that we were not making a ``permanent'' 
change in registration fees because of uncertainty about the final 
registration numbers. We also stated that, within three years of the 
end of the proposed temporary six-year reduction in the registration 
fees, RSPA would reevaluate the registration fees. Because we have had 
three years under the new registration criteria and in order to ensure 
that no unnecessary surplus is created, we are now revising 
registration fee levels for the years after the period of temporary 
reduction.
    Applying the objectives stated in Docket HM-208C, RSPA has 
determined that, beginning in registration year 2006-2007, small 
businesses and non-profit organizations (regardless of their size) 
should pay a registration fee of $250 (plus a $25 processing fee) and 
all other persons required to register should pay a registration fee of 
$975 (plus a $25 processing fee). Under this fee structure, we estimate 
that we will collect approximately $14.5 million per year.
    We recognize that, depending on many factors that may vary over the 
years (including registrations received for prior years and unexpended 
grant obligations), it may take more or less than three years to 
deplete the current surplus. We also recognize that the fee structure 
that would go into effect with the 2006-2007 registration year may

[[Page 1344]]

need to be revised to avoid accumulating an unexpended balance. 
Consequently, RSPA will reevaluate the account balance and the fee 
levels, during the 2005-2006 registration year.

C. Not-for-Profit Organizations

    We received comments in favor of and against the proposal to 
establish the registration fee for not-for-profit organizations at the 
same level as for small businesses. For example, ATA and PMAA supported 
the proposal to designate all not-for-profit organizations as small 
businesses. However, PMAA added that:

    The definition for a not-for-profit organization should be 
limited to 26 U.S.C. 501(c)(3) [because] many ``large businesses,'' 
including electric multistate cooperatives, are classified as not-
for-profit organizations. To reduce their fee to the same level as 
the fee for small business would be unfair, since these particular 
organizations compete with many small businesses.

    In contrast, IME and NPGA opposed this proposal. IME stated that 
``RSPA compounds the error of a fee based on business size by 
suggesting that an organization's educational, religious, charitable 
and other similar purposes should also be factored into the 
determination of what is the appropriate contribution any registrant 
should make to the HMEPG.''
    NPGA stated, ``DOT should limit its definition of non-profit 
organization solely to charitable organizations,'' and that, ``this 
provision will have the effect of providing a competitive advantage in 
the energy marketplace to rural electric cooperatives (RECs), many of 
which sell propane and therefore operate contrary to the purposes for 
which they were originally chartered.''
    The SBA criteria for small business size standards apply to 
business entities organized for profit. 13 CFR 121.105(a). Therefore, 
non-profit organizations do not technically qualify as small 
businesses. After the February 14, 2000 final rule was adopted, RSPA 
applied SBA size criteria for appropriate SIC codes to non-profit 
organizations. However, nearly all of the not-for-profit organizations 
that are currently registered, which are mostly educational 
institutions and hospitals, exceed the SBA size standards for a small 
business.
    To some extent, this may result from the SBA's focus on the 
characteristics of for-profit businesses in establishing the size 
standard for an industry group. In those infrequent instances where 
not-for-profit organizations constitute a significant portion of an 
industry group, the SBA may deliberately exclude the characteristics of 
not-for-profit organizations when considering the appropriate size 
standard. Because not-for-profit organizations generally are operated 
for educational, religious, charitable and other similar purposes, RSPA 
remains interested in helping them minimize their costs of operation 
and believes that, in so doing, we are following a precedent 
established by law in the exemption of such organizations from 
taxation.
    We considered the comments recommending narrower criteria for not-
for-profit organizations than proposed and concluded that our proposal 
remains the most straightforward resolution for dealing with entities 
that do not conform to SBA's criteria for a small business. To accept 
the PMAA's recommendation to limit the definition of not-for-profit 
organizations to those included in 26 U.S.C. 501(c)(3) or the NPGA's 
recommendation to limit the definition solely to ``charitable 
organizations'' would exclude organizations that the law exempts from 
taxation because of their non-profit status. We recognize that by 
providing a new fee category for not-for-profit organizations, some 
relatively large organizations may pay a reduced fee in the future, but 
RSPA considers the adoption of the proposed broader definition of not-
for-profit organizations as defined by U.S. law to be more easily 
applied than any attempt to distinguish between types of non-profit 
organizations. Even though it seems unlikely that many registering 
organizations would be affected by the limitation of the definition to 
26 U.S.C. 501(c)(3), we decided to retain the broader group included in 
26 U.S.C. 501(a) and to adopt the proposal to establish a fee for all 
not-for-profit organizations at the same level as that for small 
businesses.

III. Refunds

    In response to requests from industry, in the February 14, 2000 
final rule (Docket No. HM-208C) RSPA amended the HMR to allow a person 
to register for up to three years in one registration statement. 49 CFR 
107.612(c), 65 FR at 7309-10. Approximately 4,550 advance registrations 
for the 2003-2004 and 2004-2005 registration years have been received. 
Refunds will be provided for registrations paid in advance for those 
years at the higher fee levels in effect at the time of payment.
    A letter will be sent approximately 45 days after the publication 
of this final rule to each registrant that, on that date, is due a 
refund for fees paid in advance for the 2003-2004 and 2004-2005 
registration years. The letter will specify the amount of the refund 
and will be accompanied by a Form W-9, Request for Taxpayer 
Identification Number and Certification. The form must be submitted to 
RSPA before a refund can be made. Registrants that have submitted 
registrations including payment for the 2003-2004 and 2004-2005 
registration years that do not receive a letter within this time frame 
should contact the registration office at 202-366-4109. Refunds will be 
made by checks issued by the U.S. Treasury after the Form W-9 is 
submitted. Persons who later pay in advance for the 2003-2004 and 2004-
2005 registration years at the higher fee levels being reduced by this 
rule will be similarly contacted for the purpose of providing refunds 
for the overpayment.
    Of the approximately 4,550 registrants due refunds, 4,250 small 
businesses will receive refunds of $150 (3,050) or $300 (1,200), and 
300 others will receive refunds of $1,700 (200) or $3,400 (100).

IV. Rulemaking Analysis and Notices

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

    This final rule is considered a significant regulatory action under 
section 3(f) of Executive Order 12866 and, therefore, was subject to 
formal review by the Office of Management and Budget. This rule is 
considered significant under the Regulatory Policies and Procedures of 
the Department of Transportation (44 FR 11034). RSPA has prepared a 
regulatory evaluation that is available for review in the public 
docket.

B. Executive Order 13132

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 13132 (``Federalism''). The 
registration requirements do not impair the ability of States, local 
governments, or Indian tribes to impose their own fees or registration 
or permit requirements on persons who offer or transport hazardous 
materials in commerce. RSPA encourages States, local governments, and 
Indian tribes to adopt and enforce requirements in the HMR and the 
Federal registration requirement, in order to enhance compliance with a 
nationally uniform set of regulations on the transportation of 
hazardous materials.
    The consultation and funding requirements of Executive Order 13132 
do not apply because this rule does not adopt any regulation that:
    (1) Has substantial direct effects on the States, the relationship 
between the National government and the States, or the distribution of 
power and

[[Page 1345]]

responsibilities among the various levels of government;
    (2) Imposes substantial direct compliance costs on State and local 
governments; or
    (3) Preempts State law.

C. Executive Order 13175

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 13175 (``Consultation and 
Coordination with Indian Tribal Governments''). Because this rule does 
not have tribal implications, does not impose substantial direct 
compliance costs and is required by statute, the funding and 
consultation requirements of Executive Order 13175 do not apply.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-611) requires each 
agency to analyze regulations and assess their impact on small 
businesses and other small entities to determine whether the rule is 
expected to have a significant impact on a substantial number of small 
entities.
    In the February 14, 2000 final rule in Docket No. HM-208C, RSPA 
certified that that final rule did affect a significant number of small 
entities, but that the economic impact on these small entities will not 
be significant. 65 FR 7308-09. This final rule affects the same small 
entities that Docket HM-208C did and, therefore, this final rule 
affects a significant number of small entities. 65 FR 7307-09. Although 
this final rule is providing a $150 reduction in the combined annual 
fee that small businesses must pay, that reduction does not constitute 
a significant economic impact on a substantial number of small 
entities. Therefore, RSPA certifies that this final rule does not have 
a significant economic impact on a substantial number of small 
entities.

E. Unfunded Mandates Reform Act of 1995

    This final rule does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It does 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.

F. Paperwork Reduction Act

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

G. Environmental Assessment

    The National Environmental Policy Act of 1969 (NEPA), as amended 
(42 U.S.C. 4321-4347) requires Federal agencies to consider the 
consequences of major federal actions and prepare a detailed statement 
on actions significantly affecting the quality of the human 
environment. There are no significant environmental impacts associated 
with this rule. The temporary reduction of registration fees will 
continue to fund the HMEP grants program at the level recommended by 
Congress, eliminate the surplus in a reasonable amount of time, and 
continue the balance of equity established under Docket HM-208C. In 
addition, this course of action will continue to fund the HMEP grants 
program on a basis that is equitable, straightforward, enforceable, and 
sound and will eliminate the surplus in the most expedient manner 
possible. It will also permanently set the registration fees for the 
years after the surplus is eliminated and will stop creation of any 
unnecessary surplus. Reduction in the registration fees or elimination 
of the current surplus in the registration fees fund has no potential 
for environmental damage or contamination.

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 may 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 Chapter I is amended as 
follows:

PART 107--HAZARDOUS MATERIALS PROGRAM PROCEDURES

    1. The authority citation for part 107 continues 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.

    2. In Sec.  107.612, the introductory text of paragraph (b) is 
revised and new paragraphs (c) and (d) are added to read as follows:


Sec.  107.612  Amount of fee.

* * * * *
    (b) Registration years 2000-2001, 2001-2002 and 2002-2003. For the 
registration years 2000-2001, 2001-2002, and 2002-2003, each person 
subject to the requirements of this subpart must pay an annual fee as 
follows:
* * * * *
    (c) Registration years 2003-2004, 2004-2005 and 2005-2006. For 
registration years 2003-2004, 2004-2005, and 2005-2006, each person 
subject to the requirements of this subpart must pay an annual 
registration 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 North 
American Industry Classification System (NAICS) code that describes 
that person's primary commercial activity, must pay an annual 
registration fee of $125 and the processing fee required by paragraph 
(c)(4) of this section.
    (2) Not-for-profit organization. Each not-for-profit organization 
must pay an annual registration fee of $125 and the processing fee 
required by paragraph (c)(4) of this section. A not-for-profit 
organization is an organization exempt from taxation under 26 U.S.C. 
501(a).
    (3) Other than a small business or not-for-profit organization. 
Each person that does not meet the criteria specified in paragraph 
(c)(1) or (c)(2) of this section must pay an annual registration fee of 
$275 and the processing fee required by paragraph (c)(4) of this 
section.
    (4) Processing fee. The processing fee is $25 for each registration 
statement filed. A single statement may be filed for one, two, or three 
registration years as provided in Sec.  107.616(c).
    (d) Registration years 2006-2007 and following. For each 
registration year beginning with 2006-2007, 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 North 
American Industry Classification System (NAICS) code that describes 
that person's primary commercial activity, must pay an annual 
registration fee of $250 and the processing fee required by paragraph 
(d)(4) of this section.
    (2) Not-for-profit organization. Each not-for-profit organization 
must pay an annual registration fee of $250 and the processing fee 
required by paragraph (d)(4) of this section. A not-for-profit 
organization is an organization exempt from taxation under 26 U.S.C. 
501(a).

[[Page 1346]]

    (3) Other than a small business or not-for-profit organization. 
Each person that does not meet the criteria specified in paragraph 
(d)(1) or (d)(2) of this section must pay an annual registration fee of 
$975 and the processing fee required by paragraph (d)(4) of this 
section.
    (4) Processing fee. The processing fee is $25 for each registration 
statement filed. A single statement may be filed for one, two, or three 
registration years as provided in Sec.  107.616(c).

    3. In Sec.  107.616, paragraph (d)(2) is revised to read as 
follows:


Sec.  107.616  Payment procedures.

* * * * *
    (d) * * *
    (2) Pay a registration and processing fee as follows:
    (i) For registration year 2002-2003, pay a registration fee of 
$275, a processing fee of $25, and an expedited handling fee of $50. 
The total fee is $350. Persons who do not meet the criteria for a small 
business, as specified in Sec.  107.612(b)(1), must enclose an 
additional registration fee payment of $1,700 with the expedited 
follow-up material, for a total of $2,050 (registration fee--$1,975; 
processing fee--$25; expedited handling fee--$50);
    (ii) For registration years 2003-2004, 2004-2005, and 2005-2006, 
pay a registration fee of $125, a processing fee of $25, and an 
expedited handling fee of $50. The total fee is $200. Persons who do 
not meet the criteria for a small business or are not a not-for-profit 
organization, as specified in Sec.  107.612(c), must enclose an 
additional registration fee payment of $150 with the expedited follow-
up material, for a total of $350 (registration fee--$275; processing 
fee--$25; expedited handling fee--$50); and
    (iii) For registration years beginning with 2006-2007, pay a 
registration fee of $250, a processing fee of $25, and an expedited 
handling fee of $50. The total fee is $325. Persons who do not meet the 
criteria for a small business or are not a not-for-profit organization, 
as specified in Sec.  107.612(d), must enclose an additional 
registration fee payment of $725 with the expedited follow-up material, 
for a total of $1,050 (registration fee--$975; processing fee--$25; 
expedited handling fee--$50); and
* * * * *

    Issued in Washington, DC, on January 6, 2003, under authority 
delegated in 49 CFR Part 1.
Ellen G. Engleman,
Administrator.
[FR Doc. 03-436 Filed 1-8-03; 8:45 am]
BILLING CODE 4910-60-P