[Federal Register Volume 89, Number 102 (Friday, May 24, 2024)]
[Proposed Rules]
[Pages 45806-45813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11391]


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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Part 107

[Docket No. PHMSA-2022-0033 (HM-208J)]
RIN 2137-AF59


Hazardous Materials: Adjusting Registration and Fee Assessment 
Program

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
Department of Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: In order to account for increased transport of hazardous 
materials as well as the burdens such transport places on first 
responders, PHMSA proposes overdue updates to the registration fees 
under the statutorily mandated registration and fee assessment program 
for persons who transport, or offer for transportation, certain 
categories and quantities of hazardous materials. PHMSA's proposal 
would increase the annual fee to be paid by those registrants 
qualifying as a small business or not-for-profit organization by $125 
to $375 and by those registrants not qualifying as a small business or 
not-for-profit organization by $425 to $3,000. Actions such as fee 
adjustments are necessary to fund PHMSA's Hazardous Materials Emergency 
Preparedness grants program at newly authorized levels in accordance 
with the Infrastructure Investment and Jobs Act (Pub. L. 117-58). PHMSA 
also proposes to implement an electronic-only registration fee payment 
process. Finally, PHMSA proposes to revise requirements to clarify that 
a certificate of registration may be carried in either electronic or 
paper form for both motor carriers and those who transport hazardous 
materials by vessel.

DATES: Comments must be received by August 22, 2024. However, PHMSA 
will consider late-filed comments to the extent possible.

ADDRESSES: You may submit comments identified by the docket number 
PHMSA-2022-0033 (HM-208J) by any of the following methods:
     Federal e-Rulemaking Portal: https://www.regulations.gov. 
Follow the online instructions for submitting comments.
     Fax: (202) 493-2251.
     Mail: Docket Management System, U.S. Department of 
Transportation, Dockets Operations, M-30, Ground

[[Page 45807]]

Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket 
Operations, M-30, Ground Floor, Room W12-140 in the West Building, 1200 
New Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays.
    Instructions: All submissions must include the agency name and 
docket number (PHMSA-2022-0033) or RIN 2137-AF59 for this NPRM at the 
beginning of the comment. Note that all comments received will be 
posted without change to https://www.regulations.gov including any 
personal information provided. If sent by mail, comments must be 
submitted in duplicate. Persons wishing to receive confirmation of 
receipt of their comments must include a self-addressed stamped 
postcard.
    Docket: For access to the dockets to read background documents or 
comments received, go to https://www.regulations.gov or DOT's Docket 
Operations Office; see ADDRESSES.
    Confidential Business Information: Confidential Business 
Information (CBI) is commercial or financial information that is both 
customarily and treated as private by its owner. Under the Freedom of 
Information Act (FOIA; 5 U.S.C. 552), CBI is exempt from public 
disclosure. If your comments responsive to this NPRM contain commercial 
or financial information that is customarily treated as private, that 
you treat as private, and that is relevant or responsive to this NPRM, 
it is important that you clearly designate the submitted comments as 
CBI. Please mark each page of your submission containing CBI as 
``PROPRIETARY.'' PHMSA will treat such marked submissions as 
confidential under the Freedom of Information Act (FOIA) and they will 
not be placed in the public docket of this NPRM. Submissions containing 
CBI should be sent to Yul B. Baker Jr., Standards and Rulemaking 
Division, Office of Hazardous Materials Safety, (202) 366-8553, PHMSA, 
East Building, PHH10, 1200 New Jersey Avenue SE, Washington, DC 20590. 
Any commentary that PHMSA receives, which is not specifically 
designated as CBI, will be placed in the public docket for this 
rulemaking.

FOR FURTHER INFORMATION CONTACT: Yul B. Baker Jr., Standards and 
Rulemaking Division, Office of Hazardous Materials Safety, (202) 366-
8553, PHMSA, East Building, PHH10, 1200 New Jersey Avenue SE, 
Washington, DC 20590 and Adam Lucas, Operations System Division, Office 
of Hazardous Materials Safety, (202) 366-1074 PHMSA, East Building, 
PHH-60, 1200 New Jersey Avenue SE, Washington, DC 20590.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
II. ANPRM and Comments
III. Public Meeting
IV. Summary of the Proposal To Fund the HMEP Grants Program
V. Multi-Year Registrations
VI. Section-by-Section Review of Changes
VII. Regulatory Analyses and Notices
    A. Statutory/Legal Authority for This Rulemaking
    B. Executive Order 12866, 14094, and DOT Regulatory Policies and 
Procedures
    C. Executive Order 13132
    D. Executive Order 13175
    E. Regulatory Flexibility Act and Executive Order 13272
    F. Unfunded Mandates Reform Act of 1995
    G. Paperwork Reduction Act
    H. Draft Environmental Assessment
    I. Privacy Act

I. Background

    Since 1992, the Research and Special Programs Administration 
(RSPA)--now known as the Pipeline and Hazardous Materials 
Administration (PHMSA)--has conducted a national registration program 
for persons who offer for transportation or transport certain hazardous 
materials in intrastate, interstate, or foreign commerce (see 49 U.S.C. 
5108). The registration program implements the mandate for persons to 
file a registration statement with the Secretary of Transportation 
(Secretary)--as delegated to PHMSA--and collects registration and 
processing fees from these registrants. The purpose of the registration 
program is to fund the Hazardous Materials Emergency Preparedness 
(HMEP) grants program and any additional related activities \1\ and to 
gather information regarding the transportation of hazardous materials. 
The HMEP grants program supports hazardous materials emergency response 
planning and training activities by states, local governments, and 
Native American Tribes--ensuring first responders are well trained and 
prepared to respond to hazardous materials related incidents. HMEP 
grants also fund non-profit organizations to provide ``train-the-
trainer'' and direct training programs for hazardous materials 
emergency response training and hazardous materials employee training. 
Additionally, HMEP grants support the development of the Emergency 
Response Guidebook (ERG)--provided to and used by nearly every fire 
department in the U.S.--and provides funds for grantee monitoring and 
technical assistance.
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    \1\ See 49 U.S.C. 5116(a), (e), (h)(3), (i), (j), and 5107(e).
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    PHMSA has discretion to require additional persons to register--
beyond those who offer, and transport certain categories and quantities 
of hazardous materials listed in 49 U.S.C. 5108(a)(1)--and to set the 
annual registration fee between the statutorily mandated minimum and 
maximum amounts.\2\ PHMSA must currently set an annual registration fee 
between a statutory prescribed minimum of $250 and maximum of $3,000. 
The annual registration fee is currently set at $250 (plus a $25 
processing fee) for registrants qualifying as small businesses or not-
for-profit organizations (hereafter referred to as ``small 
businesses'') and $2,575 (plus a $25 processing fee) for registrants 
not qualifying as a small businesses or not-for-profit organizations 
(hereafter referred to as ``large businesses'') in accordance with 49 
CFR 107.612(b).
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    \2\ 49 U.S.C. 5108(a)(2) and (g)(2)(A).
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    On November 15, 2021, President Biden signed the Infrastructure 
Investment and Jobs Act \3\ into law--commonly known as the 
``Bipartisan Infrastructure Law'' (BIL)--and authorized the Secretary 
to expend $46,825,000 from emergency preparedness funds to carry out 
the grants program, for fiscal years 2022 through 2026. As such, the 
BIL increased the authorized funding level by $18,507,000. Also, on 
March 9, 2024, the President signed the Consolidated Appropriations Act 
of 2024 \4\ which raised the obligation limitation from a previous 
level of $28,318,000 to $46,825,000. This increase gives PHMSA the 
ability to make legal commitments--in the form of grants--at the new 
authorized level. To achieve full funding of the grants program at the 
increased amount, PHMSA will need to adjust the fees for the national 
hazardous materials transportation registration and fee program. While 
the grant size and ability to commit funds has increased, PHMSA remains 
constrained by the $3,000 statutory maximum registration fee and thus 
is proposing to set fees within that limitation.
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    \3\ Public Law 117-58.
    \4\ Public Law 118-42.
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II. ANPRM and Comments

    PHMSA published an advance notice of proposed rulemaking (ANPRM), 
HM-208J,\5\ titled ``Hazardous Materials: Adjusting Registration and 
Fee Assessment Program'' to solicit feedback

[[Page 45808]]

on potential adjustments to the applicability and fees under the 
hazardous materials registration and fee assessment program. PHMSA 
received a total of seven sets of comments from persons that represent 
various industry companies and associations. Based on comments received 
by PHMSA, commenters generally opposed raising fees on small 
businesses, but were supportive of maintaining the two-tiered system 
currently in place. Commenters also expressed support for Congress to 
raise the statutory fee limit for both small and large businesses. An 
alphabetical listing of commenters to the HM-208J ANPRM can be found in 
the following table:
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    \5\ 87 FR 57860 (Sept. 22, 2022).

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               Commenter name                         Docket No.
------------------------------------------------------------------------
American Chemistry Council (ACC)...........  PHMSA-2022-0033-0006.
Council on the Safe Transportation of        PHMSA-2022-0033-0004.
 Hazardous Articles (COSTHA).
Dangerous Goods Advisory Council (DGAC)....  PHMSA-2022-0033-0002.
Energy Marketers of America (EMA)..........  PHMSA-2022-0033-0008.
Interested Parties for Hazardous Materials   PHMSA-2022-0033-0003.
 Transportation.
International Vessel Operators Dangerous     PHMSA-2022-0033-0005.
 Goods Association (IVODGA).
Owner-Operator Independent Drivers           PHMSA-2022-0033-0007.
 Association (OOIDA).
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    The comments submitted to the docket for this rulemaking may be 
accessed for review via the docket file numbers listed in the above 
table at https://www.regulations.gov.

III. Public Meeting

    PHMSA published a notice of public meeting in the Federal Register 
\6\ titled ``Hazardous Materials: Adjusting Registration and Fee 
Assessment Program; Notice of Public Meeting'' notifying the public 
that a meeting would be held on June 28, 2023, to solicit additional 
feedback and input on potential adjustments to the hazardous materials 
registration and fee assessment program. Prior to the public meeting, 
PHMSA received three sets of comments from persons that represent 
various industry companies and associations. Based on comments received 
by PHMSA, commenters were supportive of maintaining the two-tiered 
system, raising fees on large businesses, and raising the fees on small 
businesses with a proportional increase. Commenters also expressed 
support for Congress to raise the statutory fee limit for both small 
and large businesses. An alphabetical listing of commenters to the 
public meeting can be found in the following table:
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    \6\ 88 FR 34227 (May 26, 2023).

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               Commenter name                         Docket No.
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American Chemistry Council (ACC)...........  PHMSA-2022-0033-0012.
Corteva Agriscience........................  PHMSA-2022-0033-0011.
Interested Parties for Hazardous Materials   PHMSA-2022-0033-0010.
 Transportation.
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    The comments submitted to the docket and the audio transcripts for 
the public meeting may be accessed for review via the docket file 
numbers listed in the above table at https://www.regulations.gov.

IV. Summary of the Proposal To Fund the HMEP Grants Program

    A registration fee system should be straightforward: employ an 
equity factor while reflecting the differences in the level of risk to 
the public and the financial impact associated with the activities of 
large and small businesses and ensure adequate funding for the HMEP 
grants program. When the ANPRM was published, PHMSA considered the 
following alternatives for achieving the newly authorized funding level 
available for the HMEP grants program:
    1. Keeping the existing registration applicability and raising the 
registration fee for large businesses from $2,575 to $3,000.
    2. Keeping the existing registration requirements and applying a 
nominal fee (i.e., $25) for each facility or geographic location from 
which a registered person (i.e., a company) offers for transportation, 
or transports, certain hazardous materials.
    3. Expanding the registration applicability--for example, certain 
Class 9 materials such as lithium batteries or environmentally 
hazardous materials are not subject to placarding when shipped 
domestically, and therefore a person who offers for transportation, or 
transports, these materials are generally currently excepted from 
registration.
    4. Expanding the registration applicability to include persons who 
acquire approvals or special permits from PHMSA that otherwise are not 
subject to registration.
    5. Changing the registration applicability to reduce the overall 
number of registrants.
    6. Raising fees for specific business types, classes of hazardous 
material, or specific commodities (e.g., a poison by inhalation 
material) of extremely high risk.
    PHMSA did not receive substantive input from commenters that would 
aid PHMSA in determining which direction should be taken to raise the 
funds necessary to fully fund the newly authorized limits in support of 
the HMEP grants program. Further, Congress encouraged PHMSA to ensure 
small businesses are not disproportionately affected by ``reasonable, 
limited fee changes.'' PHMSA has concluded that the most equitable 
approach to raising additional funds at this time is to adjust for 
inflation the fee for both small and large businesses. Although small 
businesses generally offer for transportation or transport fewer and 
smaller amounts of hazardous materials shipments as compared to larger 
businesses, PHMSA notes that the small business fee has not been raised 
since it was adjusted to $250 in 2006.\7\ However, the fee for large 
businesses was last adjusted from $975 to $2,575 in 2010.\8\ Although 
the fee adjustment percentage increase for small businesses is larger 
than the percentage increase for large businesses, PHMSA is limited by 
the statutory cap of $3,000 for an annual registration fee. Therefore, 
PHMSA cannot charge a fee greater than $3,000 even though an equivalent 
proportional adjustment for inflation for large businesses would be 
greater than that value.
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    \7\ 68 FR 1342 (Jan. 9, 2003).
    \8\ 75 FR 15613 (Mar. 30, 2010).

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[[Page 45809]]

    For registration year 2022-2023, there were 27,723 small business 
registrants that paid $6,930,750 in registration fees and $693,075 in 
processing fees. There were 6,886 large business registrants that paid 
$17,731,450 in registration fees and $172,150 in processing fees. The 
total funds from registrants--not including processing fees--were 
approximately $24,662,200, which was less than the $28,318,000 
obligated limitation Congress has included in PHMSA's annual 
appropriation for many years. Currently under the BIL, the authorized 
funding level has increased to $46,825,000 and if the current fee 
structure remains in place, PHMSA will be unable to collect the 
necessary funds. Therefore, PHMSA is proposing inflationary increases 
to the registration fees for small businesses from $250 to $375 (plus a 
$25 processing fee) and for large businesses from $2,575 to $3,000 
(plus a $25 processing fee) for registration year 2024-2025 and 
following years to make progress toward the statutorily mandated goal 
of funding the HMEP grants program at the current authorized level of 
$46,825,000. While the 50 percent increase for small businesses is 
larger than the 16 percent increase for large businesses, the actual 
dollar amount increase for large businesses is about three and half 
times larger than small businesses ($425 vs. $125). This is also in the 
context that the last upward adjustment for small businesses was in 
2006 compared to 2010 for large businesses, which was a substantial 
upward adjustment from $975 to $2,575. Furthermore, if PHMSA were to 
limit the percentage increase for small businesses to 16 percent 
consistent with the percentage increase for large businesses, we would 
only generate an additional $1.1 million, which would not make a 
significant contribution to achieving the funding levels specified in 
both the BIL and the FY24 appropriations. Thus, PHMSA has decided to 
apply the full inflationary increase to small businesses, even though 
it is a larger percentage increase than what is being applied to large 
businesses. PHMSA believes the proposed fee increases are equitable 
given the constraints of the statutorily maximum fee allowed of $3,000. 
PHMSA remains hopeful that Congress will raise the $3,000 statutory 
cap, allowing for future adjustments to large businesses to make the 
fee distribution even more equitable and allowing PHMSA to collect and 
expend the authorized funding level of $46 million.

V. Multi-Year Registrations

    PHMSA allows a person to register up to three years in advance per 
registration statement.\9\ PHMSA applies fees according to the fee 
structure ultimately established by regulation for the registration 
year rather than according to the fee set at the time of payment. 
Therefore, if PHMSA were to adopt an increase in registration fees 
proposed in this NPRM, additional fees may be required for registration 
years paid in advance at the lower levels in effect at the time of 
payment.
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    \9\ 49 CFR 107.612(c).
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VI. Section-by-Section Review of Changes

A. Section 107.612

    This section provides the requirements for determining the 
applicable annual registration fee and presents the fee table in 
paragraph (b). In support of the increase of the authorized funding 
level in the BIL, PHMSA is proposing to amend the table in paragraph 
(b) to reflect the proposed fee increases for small businesses at $375 
and large businesses at $3,000 starting in registration year 2024-2025.

B. Section 107.616

    This section provides the requirements for payment procedures. In 
accordance with paragraph (a) of Sec.  107.616, each person subject to 
the requirements for registration must mail their registration 
statement and payment in full to the U.S. Department of Transportation 
or submit the statement and payment electronically through the 
Department's e-Commerce internet site. Additionally, in paragraph (b) 
of Sec.  107.616, a person must make a payment by certified check, 
cashier's check, personal check, or money order in U.S. funds and drawn 
on a U.S. bank that is payable to the U.S. Department of Transportation 
and the transaction must be identified as payment for the ``Hazmat 
Registration Fee'' or by completing an authorization for payment by 
credit card or other electronic means of payment acceptable to the 
Department on the registration statement or as part of an internet 
registration as provided in paragraph (a) of this section. However, the 
U.S. Department of the Treasury (``Treasury'') plans to phase out paper 
checks in favor of electronic payment due to the continued rising cost 
of maintaining a paper system.\10\ To increase efficiency of the 
collection of payments made to the federal government, the Treasury's 
goal is to reduce the Treasury Lockbox \11\ network volume by 25 
percent by the end of 2024 for all paper checks.
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    \10\ https://fmvision.fiscal.treasury.gov/files/Future-of-Financial-Management.pdf.
    \11\ Treasury Lockbox processing is accomplished by Treasury-
designated financial agents that provide lockbox and remittance 
services to the Treasury on behalf of federal entities. The 
financial agents are strategically located to minimize mail, 
processing, and collection. Remittances are mailed directly to a 
P.O. Box (i.e., lockbox) established by the financial agent to 
collect federal entity mail for processing. The lockbox accelerates 
the deposit of funds into the Treasury's account and provides 
secure, accurate, and efficient data capture of financial and 
remittance data.
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    PHMSA has historically used the Lockbox system for collecting 
checks for registration fee payments. Treasury has indicated it will no 
longer be servicing the PHMSA lockbox because of the small number of 
check payments using the system. For example, payments by paper checks 
to PHMSA have diminished over the past eight years and can be found in 
the following table:

------------------------------------------------------------------------
                                                          Reported total
                                                            transaction
                                                           count (paper
                    Fiscal year (FY)                          checks
                                                            received by
                                                              PHMSA)
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FY 2015.................................................           2,930
FY 2016.................................................           2,336
FY 2017.................................................           1,884
FY 2018.................................................           2,186
FY 2019.................................................           1,653
FY 2020.................................................             949
FY 2021.................................................             859
FY 2022.................................................             693
------------------------------------------------------------------------

    The increased use of electronic payments made online versus mailed 
paper checks greatly minimizes the need to maintain a lockbox. To meet 
the lockbox closure initiative by Treasury, payments for hazardous 
materials registration will only be accepted electronically. Therefore, 
PHMSA proposes to amend paragraph (a) by removing the reference to 
mailing in the registration statement and payment (which implies paper 
checks)--and amend paragraph (b) to remove all references to payments 
made by certified check, cashier's check, personal check, or money 
order.

C. Section 107.620

    This section provides the requirements for recordkeeping of the 
Certificate of Registration. In paragraph (b) of Sec.  107.620, each 
motor carrier subject to the requirements of Subpart G of part 107 must 
carry a copy of its current Certificate of Registration issued by PHMSA 
or another document bearing the registration number identified as the 
``U.S. DOT Hazmat Reg. No.'' onboard

[[Page 45810]]

each truck and truck tractor used to transport hazardous materials. 
These requirements are in addition to the paragraph (a) which each 
person subject to the requirements of this subpart, or its agent 
designated under Sec.  107.608(e), must maintain at its principal place 
of business for a period of three years from the date of issuance of 
each Certificate of Registration a copy of the registration statement 
filed with PHMSA, and the Certificate of Registration issued to the 
registrant by PHMSA. These requirements are applicable to each person 
subject to registration and can include carriers and offerors of any 
mode of transportation.
    On January 17, 2023, PHMSA issued a letter of interpretation \12\ 
clarifying that the requirements in Part 107, Subpart G do not 
stipulate that a paper copy of the Certificate of Registration must be 
carried onboard a motor vehicle when that vehicle transports hazardous 
materials. Rather, the requirements specify that a motor carrier must 
carry a copy of the current Certificate of Registration or another 
document bearing the registration number onboard each truck and truck 
tractor thus allowing for carriage in electronic form. Therefore, PHMSA 
proposes to amend paragraph (b) to clarify that both an electronic and 
paper form for the Certificate of Registration is acceptable provided 
the Certificate of Registration can be made available upon request to 
authorized personnel or DOT enforcement personnel. In conformance with 
this proposed change, PHMSA is also proposing similar clarifying 
amendments to paragraphs (c) and (d) regarding vessel transportation 
and furnishing information to authorized personnel (e.g., state highway 
patrol) or DOT enforcement personnel, respectively. Finally, PHMSA is 
removing sunrise dates from paragraphs (b) and (c) since they have 
passed and are no longer relevant to the respective provisions.
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    \12\ Letter of Interpretation (Ref. No. 22-0133).
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VII. Regulatory Analyses and Notices

A. Statutory/Legal Authority for This Rulemaking

    This NPRM is published under the authority of the Federal Hazardous 
Materials Transportation Act (HMTA; 49 U.S.C. 5101-5127). Section 
5103(b) of the HMTA authorizes the Secretary of Transportation to 
``prescribe regulations for the safe transportation, including 
security, of hazardous materials in intrastate, interstate, and foreign 
commerce.'' The Secretary has delegated the authority granted in the 
HMTA to the PHMSA Administrator at 49 CFR 1.97(b).

B. Executive Order 12866, 14094, and DOT Regulatory Policies and 
Procedures

    Executive Order 12866 (``Regulatory Planning and Review'') \13\ as 
amended by Executive Order 14094 (``Modernizing Regulatory 
Review''),\14\ requires that agencies ``should assess all costs and 
benefits of available regulatory alternatives, including the 
alternative of not regulating.'' Agencies should consider quantifiable 
measures and qualitative measures of costs and benefits that are 
difficult to quantify. Further, Executive Order 12866 requires that 
``agencies should select those [regulatory] approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety, and other advantages; distributive impacts; and 
equity), unless a statute requires another regulatory approach.'' 
Similarly, DOT Order 2100.6A (``Rulemaking and Guidance Procedures'') 
requires that regulations issued by PHMSA, and other DOT Operating 
Administrations should consider an assessment of the potential 
benefits, costs, and other important impacts of the proposed action and 
should quantify (to the extent practicable) the benefits, costs, and 
any significant distributional impacts, including any environmental 
impacts.
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    \13\ 58 FR 51735 (Oct. 4, 1993).
    \14\ 88 FR 21879 (Apr. 11, 2023).
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    Executive Order 12866 and DOT Order 2100.6A require that PHMSA 
submit ``significant regulatory actions'' to the Office of Management 
and Budget (OMB) for review. This rulemaking is not considered a 
significant regulatory action under section 3(f) of Executive Order 
12866 (as amended) and, therefore, was not formally reviewed by OMB. 
This rulemaking is also not considered a significant rule under DOT 
Order 2100.6A. A preliminary regulatory impact Analysis (PRIA) with 
estimates of costs and benefits of the rulemaking is available in the 
docket. To summarize the findings in the PRIA, PHMSA anticipates that 
the increase in fees on existing registrants will generate roughly $6.4 
million in additional revenue for the HMEP program. However, because 
these fees are simply financial transfers, the proposal to raise fees 
will not generate any additional regulatory economic burdens. The same 
entities currently registered will be expected to continue to do so, 
and the additional fees paid represent their marginal financial burden. 
The other two proposed provisions in this rulemaking, the shift to 
electronic-only payments, and the option for shippers to carry 
electronic registration documentation, are not expected to produce 
significant economic costs but may marginally improve efficiency. 
Therefore, PHMSA solicits comments on this analysis.
    PHMSA does anticipate a small, but insignificant cost savings to 
government due to the proposed changed to electronic-only payment in 
the amended 49 CFR 107.616. For those that do currently choose to pay 
by mailing in a registration statement and check, PHMSA estimates that 
the cost of adjusting to the electronic system to be negligible. In 
terms of cost savings, PHMSA estimates that converting to an all-
electronic system will save government employees a small amount of 
labor because they will no longer have to process paper forms and 
checks. Yet, PHMSA estimates this cost savings to be negligible due to 
the low volume of payments by check.

C. Executive Order 13132

    PHMSA has analyzed this rulemaking in accordance with the 
principles and criteria in Executive Order 13132 (``Federalism'') \15\ 
and its implementing Presidential Memorandum (``Preemption'').\16\ 
Executive Order 13132 requires agencies to assure meaningful and timely 
input by state and local officials in the development of regulatory 
policies that may have ``substantial direct effects on the states, on 
the relationship between the national government and the states, or on 
the distribution of power and responsibilities among the various levels 
of government.''
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    \15\ 64 FR 43255 (Aug. 10, 1999).
    \16\ 74 FR 24693 (May 22. 2009).
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    This rulemaking may preempt state, local, and Native American Tribe 
requirements, but does not propose any regulation that has substantial 
direct effects on the states, the relationship between the national 
government and the states, or the distribution of power and 
responsibilities among the various levels of government.
    The Federal Hazardous Materials Law contains an express preemptive 
provision \17\ that preempts state, local, and Native American Tribal 
requirements on certain subjects, unless the non-federal requirements 
are ``substantively the same'' as the federal requirements, including:
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    \17\ 49 U.S.C. 5125(b).
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    1. Designation, description, and classification of hazardous 
materials;
    2. Packing, repacking, handling, labeling, marking, and placarding 
of hazardous materials;

[[Page 45811]]

    3. Preparation, execution, and use of shipping documents related to 
hazardous materials and requirements related to the number, contents, 
and placement of those documents;
    4. Written notification, recording, and reporting of the 
unintentional release in transportation of hazardous material; and
    5. Design, manufacture, fabrication, marking, maintenance, 
recondition, repair, or testing of a packaging or container 
represented, marked, certified, or sold as qualified for use in 
transporting hazardous material.
    This rulemaking does not address any subject items such as the 
abovementioned list. Therefore, the proposed amendments in this 
rulemaking will not have substantial direct effects on the states, the 
relationship between the national government and the states, or the 
distribution of power and responsibilities among the various levels of 
government. Moreover, the proposed amendments in this rulemaking do not 
impose direct compliance costs on state and local governments.

D. Executive Order 13175

    PHMSA analyzed this rulemaking in accordance with the principles 
and criteria contained in Executive Order 13175 (``Consultation and 
Coordination with Native American Tribal Governments'') \18\ and DOT 
Order 5301.1A, ``Department of Transportation Tribal Consultation 
Policy and Procedures.''
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    \18\ 65 FR 67249 (Nov. 9, 2000).
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    Executive Order 13175 and DOT Order 5301.1A require DOT Operating 
Administrations to assure meaningful and timely input from Native 
American Tribal government representatives in the development of rules 
that significantly or uniquely affect tribal communities by imposing 
``substantial direct compliance costs'' or ``substantial direct 
effects'' on such communities or the relationship and distribution of 
power between the Federal Government and Native American Tribes.
    PHMSA assessed the impact of this rulemaking and has preliminarily 
determined that it does not significantly or uniquely affect tribal 
communities or Native American Tribal governments as Native American 
tribes are excepted from registration requirements as prescribed in 
Sec.  107.606 of the HMR. The proposed changes to the HMR as written in 
this rulemaking are facially neutral and have broad, national scope; 
PHMSA therefore expects this rulemaking not to affect tribal 
communities significantly or uniquely, much less impose substantial 
compliance costs on Native American Tribal governments or mandate 
tribal action. Because PHMSA expects this rulemaking will not adversely 
affect the safe transportation of hazardous materials generally, PHMSA 
does not expect it will entail disproportionately high adverse risks 
for tribal communities. For these reasons, PHMSA preliminarily finds 
the funding and consultation requirements of Executive Order 13175 and 
DOT Order 5301.1A do not apply.

E. Regulatory Flexibility Act and Executive Order 13272

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
agencies to review regulations to assess their impact on small entities 
unless the agency head certifies that a rulemaking will not have a 
significant economic impact on a substantial number of small entities, 
including small businesses, not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations under 50,000. The 
Regulatory Flexibility Act directs agencies to establish exceptions and 
differing compliance standards for small businesses, where possible to 
do so and still meet the objectives of applicable regulatory statutes. 
Executive Order 13272 (``Proper Consideration of Small Entities in 
Agency Rulemaking'') \19\ requires agencies to establish procedures and 
policies to promote compliance with the Regulatory Flexibility Act and 
to ``thoroughly review draft rules to assess and take appropriate 
account of the potential impact'' of the rules on small businesses, 
governmental jurisdictions, and small organizations. The DOT posts its 
implementing guidance on a dedicated web page.\20\
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    \19\ 68 FR 7990 (Feb. 19, 2003).
    \20\ DOT, ``Rulemaking Requirements Related to Small Entities.'' 
https://www.transportation.gov/regulations/rulemaking-requirements-concerning-small-entities (last accessed June 17, 2021).
---------------------------------------------------------------------------

    This rulemaking has been developed in accordance with Executive 
Order 13272 and with DOT's procedures and policies to promote 
compliance with the Regulatory Flexibility Act to ensure that potential 
impacts of draft rules on small entities are properly considered. PHMSA 
has developed an initial regulatory flexibility analysis (IRFA), which 
is included as part of the PRIA in the docket for this rulemaking. As 
detailed in the IRFA, the rulemaking could be said to have a somewhat 
disproportionate economic impact on small businesses because the 
percentage increase of the registration fee will be larger than for 
large businesses. The increase in fee for small businesses is minor 
with a $125 increase from $250 to $375, but not insignificant whereas 
the fee increase for large businesses will be a $425 increase from 
$2,575 to $3,000. However, PHMSA is bound by statute to limit the 
maximum fee charged to any entity up to $3,000. PHMSA solicits comment 
on the anticipated economic impacts to small businesses and the IRFA.

F. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (UMRA; 2 U.S.C. 1501 et 
seq.) requires agencies to assess the effects of federal regulatory 
actions on state, local, and Tribal governments, and the private 
sector. For any NPRM or final rule that includes a federal mandate that 
may result in the expenditure by state, local, and Tribal governments, 
or by the private sector of $100 million or more in 1996 dollars in any 
given year, the agency must prepare, amongst other things, a written 
statement that qualitatively and quantitatively assesses the costs and 
benefits of the federal mandate.
    As explained in the PRIA, this rulemaking is neither expected to 
impose unfunded mandates under the UMRA nor expected to result in costs 
of $100 million or more in 1996 dollars to either state, local, or 
Tribal governments, or to the private sector, in any one year. A copy 
of the PRIA is available for review in the rulemaking docket.

G. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA; 44 U.S.C. 3501 et 
seq.) no person is required to respond to any information collection 
unless it has been approved by OMB and displays a valid OMB control 
number. Pursuant to 44 U.S.C. 3506(c)(2)(B) and Section 1320.8(d) of 5 
CFR requires that PHMSA provide interested members of the public and 
affected agencies an opportunity to comment on information and 
recordkeeping requests. PHMSA has analyzed this NPRM in accordance with 
the PRA which requires federal agencies to minimize paperwork burden 
imposed on the American public by ensuring maximum utility and quality 
of Federal information, ensuring the use of information technology to 
improve government performance, and improving the Federal Government's 
accountability for managing information collection activities. PHMSA 
has analyzed this NPRM in accordance with the PRA and there are no new 
or

[[Page 45812]]

modified information collection requirements in this rulemaking.

H. Draft Environmental Assessment

    The National Environmental Policy Act of 1969 (NEPA), as amended 
(42 U.S.C. 4321-4335),\21\ requires Federal agencies to consider the 
environmental impacts of their actions in the decision-making process. 
The purpose and function of NEPA is satisfied if federal agencies have 
considered relevant environmental information, and the public has been 
informed regarding the decision-making process. Agencies must prepare 
an environmental assessment (EA) for a proposed action that is not 
likely to have significant effects or when significance is unknown and 
prepare a Finding of No Significant Impact (FONSI), if based on the EA, 
the agency determines not to prepare an Environmental Impact Study 
(EIS) because the proposed action will not have significant effects. In 
accordance with these requirements, an agency's EA must discuss: (1) 
the need for the action; (2) the alternatives considered; (3) the 
environmental impacts of the proposed action and alternatives; and (4) 
a listing of the agencies and persons consulted before providing 
evidence for determining a FONSI. The draft EA and FONSI for the 
proposed action in this rulemaking are as follows:
---------------------------------------------------------------------------

    \21\ Also, at 40 CFR parts 1501 to 1508.
---------------------------------------------------------------------------

1. Need for the Action
    The Bipartisan Infrastructure Law (BIL) authorized the Secretary to 
expend $46,825,000 from emergency preparedness funds to carry out the 
grants program for fiscal years 2022 through 2026. As such, the BIL 
increased the authorized funding level by $18,507,000. To achieve full 
funding of the grants program at the increased authorization amounts, 
PHMSA will need to adjust the registration fees for the national 
hazardous materials transportation registration and fee program.
2. Alternatives Considered
No Action Alternative
    Under the no action alternative, PHMSA would maintain the current 
registration and fee requirements.
Proposed Action Alternative--Increase Registration Fees
    Under this alternative, PHMSA would increase the registration fee 
applied to small and large businesses based on inflation. A concise 
summary of the proposed changes is as follows:
     Increase fees for small businesses and not-for-profit 
organizations by $125--which will increase from $250 to $375; and
     Increase fees for large businesses by $425--which will 
increase from $2,575 to $3,000.
3. Environmental Impacts of Proposed Action and Alternatives
No Action Alternative
    PHMSA expects the no action alternative to have no new impact on 
the environment as the proposed adjustment of registration fees would 
provide more funding to respond to and mitigate emergency responses.
Proposed Action Alternative--Increase Registration Fees
    PHMSA expects the proposed action alternative to have no impact on 
the environment. Additionally, PHMSA notes that increasing registration 
fees will provide additional off-site or the increase of outreach 
training. However, PHMSA does note the difficulty in quantifying any 
environmental impact of increasing the registration fees.
4. Agencies and Persons Consulted
    PHMSA coordinated internally with other divisions within PHMSA, 
modal partners (e.g., the Federal Motor Carrier Safety Administration, 
the Federal Railroad Association, and the United States Coast Guard), 
and stakeholders to develop this proposed rulemaking.
5. Environmental Justice
    Executive Orders 12898 (``Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations''),\22\ 
13985 (``Advancing Racial Equity and Support for Underserved 
Communities Through the Federal Government''),\23\ 13990 (``Protecting 
Public Health and the Environment and Restoring Science To Tackle the 
Climate Crisis''),\24\ 14008 (``Tackling the Climate Crisis at Home and 
Abroad''),\25\ and DOT Order 5610.2C (``Department of Transportation 
Actions to Address Environmental Justice in Minority Populations and 
Low-Income Populations'') require DOT agencies to achieve environmental 
justice as part of their mission by identifying and addressing, as 
appropriate, disproportionately high and adverse human health or 
environmental effects, including interrelated social and economic 
effects of their programs, policies, and activities on minority 
populations, low-income populations, and other underserved and 
disadvantaged communities.
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    \22\ 59 FR 7629 (Feb. 11, 1994).
    \23\ 86 FR 7009 (Jan. 20, 2021).
    \24\ 86 FR 7037 (Jan. 20, 2021).
    \25\ 86 FR 7619 (Feb. 1, 2021).
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    PHMSA has evaluated this proposed rule under the above Executive 
Orders and DOT Order 5610.2C and determined that it would not cause 
disproportionately high and adverse human health and environmental 
effects on minority, low-income, underserved, and other disadvantaged 
populations, and communities. The rulemaking is neither directed toward 
a particular population, region, or community, nor is it expected to 
adversely impact any population, region, or community. Insofar as the 
rulemaking would not adversely affect the safe transportation of 
hazardous materials generally, the proposed revisions would not entail 
disproportionately high adverse risks for minority populations, low-
income populations, or other underserved and other disadvantaged 
communities.
6. Proposed FONSI
    As discussed in the draft EA above, the purpose of the rule is to 
adjust fees upward to provide additional funds for the statutorily 
authorized limits from emergency planning funds that support PHMSA's 
grants program. PHMSA proposes to find that this proposed action will 
have no significant impact on the environment. Although the fees 
collected provide funding for grants that are issued to states, 
territories, and Native American Tribes to assist in development, 
improvement, and carrying out emergency plans within the National 
Response System and the Emergency Planning and Community Right-To-Know 
Act of 1986, PHMSA preliminarily concludes that this action will not 
have a direct significant impact on the environment. The grant program 
is designed to allow grantees the flexibility to implement training and 
planning programs that address differing needs for each location based 
on demographics, emergency response capabilities, commodity flow 
studies, and hazard analysis. PHMSA welcomes public comments about the 
safety and environmental risks or benefits that could result from this 
proposed rule as well as possible alternatives and their environmental 
impacts.

I. Privacy Act

    In accordance with 5 U.S.C. 553(c), DOT solicits comments from the 
public to inform any amendments to the hazardous materials program 
procedures and the HMR considered in this rulemaking. DOT posts these 
comments, without edit, including any personal information the 
commenter provides, to https://www.regulations.gov, as described in

[[Page 45813]]

the system of records notice (DOT/ALL-14 FDMS). DOT's complete Privacy 
Act Statement is in the Federal Register,\26\ or on DOT's website at 
https://www.dot.gov/privacy.
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    \26\ 65 FR 19477 (Apr. 11, 2000).
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List of Subjects in 49 CFR Part 107

    Hazardous Materials Program Procedures.

    In consideration of the forgoing, PHMSA proposes to amend 49 CFR 
chapter I as follows:

PART 107--HAZARDOUS MATERIALS PROGRAM AND PROCEDURES

0
1. The authority citation for part 107 continues to read as follows:

    Authority:  49 U.S.C. 5101-5128, 44701; Pub. L. 101-410 Section 
4; Pub. L. 104-121 Sections 212-213; Pub. L. 104-134 Section 31001; 
Pub. L. 114-74 Section 701 (28 U.S.C. 2461 note); 49 CFR 1.81 and 
1.97; 33 U.S.C. 1321.

0
2. In Sec.  107.612, revise paragraph (b) to read as follows:


Sec.  107.612  Amount of fee.

* * * * *
    (b) Each person subject to the requirements of this subpart must 
pay the processing fee specified in paragraph (c) of this section and 
the annual registration fee set forth in the following table:

                                            Table 1 to Paragraph (b)
----------------------------------------------------------------------------------------------------------------
                                                                                                Other than small
                                                                               Not-for-profit   business or not-
                      Registration year                        Small business   organization       for-profit
                                                                                                  organization
----------------------------------------------------------------------------------------------------------------
2024-2025 and later..........................................            $375            $375             $3,000
2014-2015, 2015-2016, 2016-2017, 2017-2018, 2018-2019, 2019-              250             250              2,575
 2020, 2020-2021, 2021-2022, 2022-2023, 2023-2024............
2013-2014....................................................             125             125              1,300
2012-2013, 2011-2012, 2010-2011..............................             250             250              2,575
2009-2010, 2008-2009, 2007-2008, 2006-2007...................             250             250                975
2005-2006, 2004-2005, 2003-2004..............................             125             125                275
2002-2003, 2001-2002, 2000-2001..............................             275           (\1\)               1975
1999-2000 and earlier........................................             250             250                250
----------------------------------------------------------------------------------------------------------------
\1\ Fee appropriate for small or other than small business.

* * * * *
0
3. In Sec.  107.616, revise paragraphs (a) and (b) to read as follows:


Sec.  107.616  Payment procedures.

    (a) Each person subject to the requirements of this subpart must 
submit the registration statement and payment electronically in full 
through the Department's e-Commerce internet site. Access to this 
service is provided at https://www.phmsa.dot.gov/hazmat/registration. A 
registrant required to file an amended registration statement under 
Sec.  107.608(c) of this subpart must submit it through the same 
internet site.
    (b) Payment must be made by completing an authorization for payment 
by credit card or other electronic means of payment acceptable to the 
U.S. Department of Transportation as part of an internet registration 
as provided in paragraph (a) of this section.
* * * * *
0
4. In Sec.  107.620, revise paragraphs (b), (c), and (d) to read as 
follows:


Sec.  107.620  Recordkeeping requirements.

* * * * *
    (b) Each motor carrier subject to the requirements of this subpart 
must carry a copy of its current Certificate of Registration issued by 
PHMSA or another document bearing the registration number identified as 
the ``U.S. DOT Hazmat Reg. No.'' onboard each truck and truck tractor 
(not including trailers and semi-trailers) used to transport hazardous 
materials subject to the requirements of this subpart. The Certificate 
of Registration or document bearing the registration number may be 
carried in electronic or paper form and must be made available, upon 
request, to authorized personnel or DOT enforcement personnel.
    (c) In addition to the requirements of paragraph (a) of this 
section, each person who transports by vessel a hazardous material 
subject to the requirements of this subpart must carry onboard the 
vessel a copy of its current Certificate of Registration or another 
document bearing the current registration number identified as the 
``U.S. DOT Hazmat Reg. No.'' The Certificate of Registration or 
document bearing the registration number may be carried in electronic 
or paper form and must be made available, upon request, to authorized 
personnel or DOT enforcement personnel.
    (d) Each person subject to this subpart must furnish its 
Certificate of Registration (or a copy thereof) and all other records 
and information pertaining to the information contained in the 
registration statement to authorized personnel or DOT enforcement 
personnel upon request. The Certificate of Registration and all other 
records and information may be furnished in electronic or paper form.
* * * * *

    Issued in Washington, DC, on May 20, 2024, under the authority 
delegated in 49 CFR 1.97.
William S. Schoonover,
Associate Administrator for Hazardous Materials Safety, Pipeline and 
Hazardous Materials Safety Administration.
[FR Doc. 2024-11391 Filed 5-23-24; 8:45 am]
BILLING CODE 4910-60-P