PHMSA Increases Registration Fees for Certain Hazmat Transporters and Offerors
The Pipeline and Hazardous Materials Safety Administration has issued a final rule, effective April 29, 2010, to increase the annual registration fee for certain persons who transport or offer for transportation certain categories and quantities of hazardous materials under its statutorily-mandated registration and fee assessment program.
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Highlights of Comments, PHMSA Responses
PHMSA received 42 comments on its February 2010 proposed rule. Highlights of PHMSA's responses to those comments and other issues are as follows:
Final Rule Necessary to Fund HMEP Grants Program
According to PHMSA, the final rule's increase is necessary to fund the national Hazardous Materials Emergency Preparedness (HMEP) grants program1 at approximately $28,300,000 in accordance with the Administration's Fiscal Year (FY) 2010 budget and proposed Fiscal Year 2011 budget.
Increase is Less Than Proposed
Based on updated information and a re-examination of its estimates for funding the HMEP grants program, PHMSA has concluded that it will be able to fund the program at the $28.3 million level in FY 2010 and for future years with a smaller increase in registration fees ($2,575) than was proposed in the proposed rule ($2,975).
Highlights of Final Rule
The following are highlights of PHMSA's final rule:
Registration Fee More Than Doubles for Larger Companies
The final rule modifies 49 CFR 107.612(a) to provide that, for registration year 2010-2011 and subsequent years, each person not qualifying as a small business or not-for-profit organization who transports or offers for transportation a hazmat listed in 49 CFR 107.601(a) must pay an annual registration fee of $2,575 (from the current fee of $975), plus a $25 processing fee.
Fee Remains Same for Small Companies and Non-Profits
For registrants qualifying as a small business or not-for-profit organization, the fee will remain at its current level of $250 (plus a $25 administrative fee).
(PHMSA notes that small businesses and not-for-profit organizations currently make up 83% of the registrants, while large businesses make up 17% of the registrants.
In 2008, PHSMA proposed increasing the $975 fee to $2,475 for registration year 2009-2010 and following years for registrants not qualifying as a small business or not-for-profit organization, but the fee increase was never finalized. See ITT's Online Archives or 05/07/08 news, 08050730, for BP summary.)
1The HMEP grants program provides Federal financial and technical assistance to States and Indian Tribes to develop, improve, and carry out emergency plans; train public sector hazmat emergency response employees; determine flow patterns of hazmats within a State and between States; and determine the need for regional hazardous materials emergency response teams.
(See ITT's Online Archives or 02/02/10 news, 10020220, for BP summary of the proposed rule.)
PHMSA contact - David Donaldson (202) 366-4484
PHMSA final rule(D/N PHMSA-2009-0201 (HM-208H), FR Pub 03/30/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-7035.pdf