[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Proposed Rules]
[Pages 28528-28531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12085]
[[Page 28528]]
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DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
49 CFR Part 107
[Docket No. PHMSA-2025-0096 (HM-268H)]
RIN 2137-AG10
Hazardous Materials: Modernizing Payments To and From America's
Bank Account
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
Department of Transportation (DOT).
ACTION: Notice of Proposed Rulemaking (NPRM).
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SUMMARY: PHMSA proposes to modernize the payment system for hazardous
materials registration to require electronic submissions via the
Department of Transportation (DOT) e-Commerce internet site and
eliminate the option to pay using a paper check. This revision is
intended to increase government efficiency by eliminating the burdens
associated with processing paper checks from the regulatory community.
DATES: Comments must be received on or before September 2, 2025.
ADDRESSES: You may submit comments identified by the Docket Number
PHMSA-2025-0096 using any of the following methods:
E-Gov Web: https://www.regulations.gov. This site allows the public
to enter comments on any Federal Register notice issued by any agency.
Follow the online instructions for submitting comments.
Mail: Docket Management System: U.S. Department of Transportation,
1200 New Jersey Avenue SE, West Building Ground Floor, Room W12-140,
Washington, DC 20590-0001.
Hand Delivery: U.S. DOT Docket Management System: West Building
Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, between 9 a.m.
and 5 p.m., Monday through Friday, except Federal holidays.
Fax: 1-202-493-2251.
Instructions: Please include the docket number PHMSA-2025-0096 at
the beginning of your comments. If you submit your comments by mail,
submit two copies. If you wish to receive confirmation that PHMSA
received your comments, include a self-addressed stamped postcard.
Internet users may submit comments at https://www.regulations.gov.
Note: Comments are posted without changes or edits to https://www.regulations.gov, including any personal information provided.
There is a privacy statement published on https://www.regulations.gov.
Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to inform its rulemaking process. DOT posts
these comments, without edit, including any personal information the
commenter provides, to https://www.regulations.gov, as described in the
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at
https://www.dot.gov/privacy.
Confidential Business Information: Confidential Business
Information (CBI) is commercial or financial information that is both
customarily and actually treated as private by its owner. Under the
Freedom of Information Act (FOIA, 5 U.S.C. 552), CBI is exempt from
public disclosure. It is important that you clearly designate the
comments submitted as CBI if: your comments responsive to this document
contain commercial or financial information that is customarily treated
as private; you actually treat such information as private; and your
comment is relevant or responsive to this notice. You may ask PHMSA to
provide confidential treatment to information you give to the agency by
taking the following steps: (1) mark each page of the original document
submission containing CBI as ``Confidential''; (2) send PHMSA, along
with the original document, a second copy of the original document with
the CBI deleted; and (3) explain why the information that you are
submitting is CBI. Submissions containing CBI should be sent to Yul B.
Baker Jr., Office Hazardous Materials Safety, Pipeline and Hazardous
Materials Safety Administration (PHMSA), 2nd Floor, 1200 New Jersey
Avenue SE, Washington, DC 20590-0001, or by email at [email protected].
Any materials PHMSA receives that is not specifically designated as CBI
will be placed in the public docket.
Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov. Follow the online
instructions for accessing the docket. Alternatively, you may review
the documents in person at the street address listed above.
FOR FURTHER INFORMATION CONTACT: Yul B. Baker Jr., Transportation
Regulation Specialist, 1200 New Jersey Avenue SE, Washington, DC 20590,
202-366-8553, [email protected].
I. General Discussion
In accordance with Executive Order (E.O.) 14247, ``Modernizing
Payments To and From America's Bank Account,'' \1\ PHMSA proposes to
revise a payment provision for its registration and fee program at
Title 49, Chapter I, Part 107, Subpart G of the Code of Federal
Regulations (CFR). Specifically, PHMSA proposes to revise Sec. 107.616
``Payment procedures'' to require electronic only payment and eliminate
the option to pay registration fees using a paper check.
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\1\ 90 FR 14001 (Mar. 25, 2025).
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E.O. 14247 provides that, as soon as practicable and to the extent
permitted by law, all payment to the Federal Government must be
processed electronically. E.O. 14247 further states that the Secretary
of the Treasury must take appropriate action to eliminate the need for
the Department of the Treasury's (``Treasury'') physical lockbox
services, and to expedite requirements to receive the payment of
Federal receipts, including fees, through electronic means.
PHMSA has historically used the lockbox system for collecting
checks for its registration program fee payments. The Treasury has
indicated that it will soon no longer be servicing the PHMSA lockbox
because of the continually decreasing number of check payments using
the system. The increased use of electronic payments made online to
PHMSA versus mailed paper checks greatly minimizes the need to maintain
a lockbox. To meet the Treasury's lockbox closure initiative, PHMSA is
proposing that payments for hazardous materials registration fees will
only be accepted electronically moving forward.
Currently, Sec. 107.616(a) instructs each person subject to the
registration requirements to either mail their 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.
Section 107.616(b) also instructs a person to 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'' or by completing an authorization for
payment by credit card or other electronic means of payment acceptable
to the Department.
Consistent with the requirements and Treasury's efforts to
implement E.O. 14247, PHMSA proposes to revise the payment method for
the registration program and fee in Sec. 107.616 to electronic only.
PHMSA does not expect the proposed revisions to have any adverse impact
on safety.
[[Page 28529]]
II. Regulatory Analysis and Notices
A. Legal Authority
This proposed rulemaking is published under the authority of the
Secretary of Transportation set forth in the Federal Hazardous
Materials Transportation Laws (49 U.S.C. 5101 et seq.) and delegated to
the PHMSA Administrator pursuant to 49 CFR 1.97.
B. Executive Orders 12866; Regulatory Planning and Review
Executive Order (E.O.) 12866 (``Regulatory Planning and
Review''),\2\ as implemented by DOT Order 2100.6B (``Policies and
Procedures for Rulemaking''), requires agencies to regulate in the
``most cost-effective manner,'' to make a ``reasoned determination that
the benefits of the intended regulation justify its costs,'' and to
develop regulations that ``impose the least burden on society.'' DOT
Order 2100.6B specifies that regulations should generally ``not be
issued unless their benefits are expected to exceed their costs.'' In
arriving at those conclusions, E.O. 12866 requires that agencies should
consider ``both quantifiable measures . . . and qualitative measures of
costs and benefits that are difficult to quantify'' and ``maximize net
benefits . . . unless a statute requires another regulatory approach.''
E.O. 12866 also requires that ``agencies should assess all costs and
benefits of available regulatory alternatives, including the
alternative of not regulating.'' DOT Order 2100.6B directs that PHMSA
and other Operating Administrations must generally choose the ``least
costly regulatory alternative that achieves the relevant objectives''
unless required by law or compelling safety need.
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\2\ 58 FR 51735 (Oct. 4, 1993).
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E.O. 12866 and DOT Order 2100.6B also require that PHMSA submit
``significant regulatory actions'' to the Office of Information and
Regulatory Affairs (OIRA) within the Executive Office of the
President's Office of Management and Budget (OMB) for review. This
proposed rule is a not significant regulatory action pursuant to E.O.
12866; it also has not designated this proposed rule as a ``major
rule'' as defined by the Congressional Review Act (5 U.S.C. 801 et
seq.).
PHMSA has complied with the requirements in E.O. 12866 as
implemented by DOT Order 2100.6B and made a preliminary determination
that the proposed rule for electronic-only payments will not generate
significant economic costs but will enhance efficiency. PHMSA
anticipates a small, but not significant, cost savings to government
due to the change to electronic-only payment in the amended 49 CFR
107.616, primarily as a result of no longer having to dedicate
resources to processing paper forms and checks. For regulated parties
that have previously chosen to pay by mailing in a check with their
registration statement, PHMSA expects the cost of adjusting to the
electronic system would be negligible.
C. Executive Orders 14192 and 14219
This proposed rule, if finalized as proposed, is expected to be an
E.O. 14192 deregulatory action.\3\ PHMSA seeks data that would be
helpful to generate an estimate of the cost savings from this rule.
PHMSA's initial estimates are that the total costs of the rule on the
regulated community will be less than zero. Nor does this proposed rule
does implicate any of the factors identified in section 2(a) of E.O.
14219 indicative of a regulation that is ``unlawful . . . [or] that
undermine[s] the national interest.'' \4\
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\3\ 90 FR 9065 (Jan. 31, 2025).
\4\ 90 FR 10583 (Feb. 19, 2025).
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D. Energy-Related Executive Orders 13211, 14154, and 14156
PHMSA has analyzed this proposed rulemaking in accordance with the
principles and criteria contained in E.O. 14156 (``Declaring a National
Energy Emergency'') \5\ and E.O. 14154 (``Unleashing American
Energy'').\6\ Respectively, the President has declared a national
emergency to address the United States's inadequate energy development
production, transportation, refining, and generation capacity and
asserts a Federal policy to unleash American energy by ensuring access
to abundant supplies of reliable, affordable energy from (inter alia)
the removal of ``undue burden[s]'' on the identification, development,
or use of domestic energy resources. PHMSA preliminarily finds this
proposed rule is consistent with each of E.O. 14156 and E.O. 14154
because it will not hinder or unduly burden the transportation or
production of energy or energy-related products.
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\5\ 90 FR 8353 (Jan. 29, 2025).
\6\ 90 FR 8353 (Jan. 29, 2025).
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However, this proposed rule is not a ``significant energy action''
under E.O. 13211 (``Actions Concerning Regulations That Significantly
Affect Energy Supply, Distribution, or Use''), which requires Federal
agencies to prepare a Statement of Energy Effects for any ``significant
energy action.'' Because this proposed rule is not a significant action
under E.O. 12866, it will not have a significant adverse effect on
supply, distribution, or energy use; and OIRA has therefore not
designated this proposed rule as a significant energy action.
E. Executive Order 13132: Federalism
PHMSA analyzed this proposed rulemaking in accordance with the
principles and criteria contained in E.O. 13132 (``Federalism'') \7\
and the Presidential Memorandum (``Preemption'') published in the
Federal Register on May 22, 2009.\8\ E.O. 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.'' The Federal
Hazardous Materials Transportation laws contain an express preemption
provision at 49 U.S.C. 5125(b) that preempts state, local, and tribal
requirements on certain covered subjects, unless the non-federal
requirements are ``substantively the same'' as the federal
requirements, including the following:
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\7\ 64 FR 43255 (Aug. 10, 1999).
\8\ 74 FR 24693 (May 22, 2009).
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(1) The designation, description, and classification of hazardous
material;
(2) The packing, repacking, handling, labeling, marking, and
placarding of hazardous material;
(3) The preparation, execution, and use of shipping documents
related to hazardous material and requirements related to the number,
contents, and placement of those documents;
(4) The written notification, recording, and reporting of the
unintentional release in transportation of hazardous material; and
(5) The design, manufacture, fabrication, inspection, marking,
maintenance, recondition, repair, or testing of a packaging or
container represented, marked, certified, or sold as qualified for use
in transporting hazardous material in commerce.
This proposed rulemaking does not address any of the covered
subject items above that would preempt state, local, and Tribal
requirements not meeting the ``substantively the same'' standard.
Therefore, the consultation and funding requirements of E.O. 13132 do
not apply.
[[Page 28530]]
F. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
Federal agencies to conduct an Initial Regulatory Flexibility Analysis
(IRFA) for a proposed rule subject to notice-and-comment rulemaking
under the APA unless the agency head certifies that the proposed change
in the rulemaking will not have a significant economic impact on a
substantial number of small entities. E.O. 13272 (``Proper
Consideration of Small Entities in Agency Rulemaking'') \9\ obliges
agencies to establish procedures promoting compliance with the
Regulatory Flexibility Act. DOT posts its implementing guidance on a
dedicated web page.\10\ This proposed rule was developed in accordance
with E.O. 13272 and DOT implementing guidance to ensure compliance with
the Regulatory Flexibility Act and that the potential impacts of the
rulemaking on small entities has been properly considered. The number
of entities currently paying registration fees with paper checks is
currently less than 1,000 per year, and PHMSA believes the majority of
small businesses would be able to make electronic payments without
incurring significant costs. PHMSA certifies the proposed rule (if
finalized) will not have a significant impact on a substantial number
of small entities.
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\9\ 67 FR 53461 (Aug. 16, 2002).
\10\ DOT, ``Rulemaking Requirements Related to Small Entities,''
https://www.transportation.gov/regulations/ rulemaking-requirements-
concerning-small-entities (last accessed Sept 3, 2024).
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G. Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act (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 proposed rule that includes a Federal mandate that may result in
the expenditure by state, local, and Tribal governments, in the
aggregate 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.
This proposed rule does not impose unfunded mandates under UMRA
because it does not result in costs of $100 million or more (in 1996
dollars) per year for either State, local, or Tribal governments, or to
the private sector.
H. National Environmental Policy Act
The National Environmental Policy Act (NEPA, 42 U.S.C. 4321 et
seq.) requires that Federal agencies assess and consider the impact of
major Federal actions on the human and natural environment.
PHMSA analyzed this proposed rule in accordance with NEPA and has
preliminarily determined that the rulemaking will not adversely affect
safety and, therefore, will not significantly affect the quality of the
human and natural environment. The public is invited to comment on the
impact of the proposed action.
I. Executive Order 13175
PHMSA analyzed this proposed rule according to the principles and
criteria in E.O. 13175 (``Consultation and Coordination with Indian
Tribal Governments'') \11\ and DOT Order 5301.1A (``Department of
Transportation Tribal Consultation Policies and Procedures''). E.O.
13175 requires agencies to assure meaningful and timely input from
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 or distribution of
power between the Federal government and Tribes.
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\11\ 65 FR 67249 (Nov. 9, 2000).
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PHMSA assessed the impact of the proposed rule and determined that
it will not significantly or uniquely affect Tribal communities or
Indian Tribal governments. The rulemaking's regulatory amendments have
a broad, national scope; therefore, this proposed rule will not
significantly or uniquely affect Tribal communities, much less impose
substantial compliance costs on Native American Tribal governments or
mandate Tribal action. For these reasons, PHMSA has concluded that the
funding and consultation requirements of E.O. 13175 and DOT Order
5301.1A do not apply.
J. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) and its
implementing regulations at 5 CFR 1320.8(d) requires that PHMSA provide
interested members of the public and affected agencies with an
opportunity to comment on information collection and recordkeeping
requests. This proposed rulemaking will not create, amend, or rescind
any existing information collections.
K. Cybersecurity and Executive Order 14028
E.O. 14028 (``Improving the Nation's Cybersecurity'') \12\ directed
the Federal government to improve its efforts to identify, deter, and
respond to ``persistent and increasingly sophisticated malicious cyber
campaigns.'' PHMSA has considered the effects of the proposed rule and
has determined that its regulatory amendments would not materially
affect the cybersecurity risk profile for affected entities.
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\12\ 86 FR 26633 (May 17, 2021).
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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, 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. Revise Sec. 107.616 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/registration/registration-overview. 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.
(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.
[[Page 28531]]
Issued in Washington, DC, on June 26, 2025, under the authority
delegated in 49 CFR 1.97.
Benjamin D. Kochman,
Acting Administrator.
[FR Doc. 2025-12085 Filed 6-27-25; 4:15 pm]
BILLING CODE 4910-60-P