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The Pipeline Hazardous Materials Safety administration has proposed that registration fees paid by hazardous material carriers be raised to the maximum amount permitted by Congress, an increase the agency describes as a “long overdue annual update.”
The proposed fee increase would be $425 for large hazmat carriers and $125 for small carriers.
The agency said that the fee increases were needed to “account” for the increased transport of hazardous material as well as the burdens placed on first responders by such transport.
It added that “actions such as fee adjustment are necessary to fund PHMSA’s Hazardous Materials Emergency Preparedness Grants program at newly authorized level in accordance with Infrastructure Investment and Jobs Act.”
PHMSA also proposes to implement a registration fee payment system that is only electronic. It also proposes to revise the requirements to clarify that a motor carrier’s certificate of registration can be carried either electronically or on paper for those who transport hazardous material by vessel.
The deadline for comments on the proposal is August 22, but the agency has said that it will accept late comments as far as possible.
The HMEP grant program supports hazardous material emergency response planning and preparation activities by state, local governments and Native American Tribes. This ensures that first responders are prepared and well-trained to respond to hazardous material related incidents. The grants are also used to fund nonprofit organizations that provide “train-the trainer” and direct training for hazardous materials emergency responses training and hazardous materials employees training. HMEP grants also support the development of an Emergency Response Guidebook, which is used by almost every fire department across the United States.
PHMSA can require additional people to be registered beyond those who transport and offer certain categories of hazardous materials. The agency must set a registration fee that is between the minimum $250 prescribed by law and a maximum of $3,000 at this time. The current annual registration fee for small businesses and not-for profit organizations is $250 (plus $25 processing fee).
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On November 15, 2021, President Joe Biden signed into law the Infrastructure Investment and Jobs Act.
The bipartisan Infrastructure Law, as it is called, authorizes the secretary of Transportation to spend $46.8 millions from the emergency preparedness fund to implement the grant program for fiscal years 2022-2026. The law increased authorized funding by $18.5million. This increase allows PHMSA to make legal commitments as grants at the new authorized funding level.
PHMSA received seven sets of comments when it announced the Advance Notice of Proposed Rulesmaking on the fee increases for 2022. These comments came from various associations and companies in the industry.
The agency stated that “based on comments received by PHMSA,” commenters were generally opposed to raising fees for small businesses but supported maintaining the current two-tiered fee system. “Commenters expressed support for Congress raising the statutory fee limits for both small businesses and large businesses.”
Commenters mainly wanted to keep fees at a reasonable amount, especially for smaller transportation companies.
Owner-Operator Independent Drivers Association commented on the ANPRM in December 2022: “We encourage PHMSA maintain registration fees for small business at the current level of $250 annually, especially given current market conditions.” “Overall, the small trucking companies we represent make up 96% of all motor carriers registered in the U.S. They are the safest operators and most diverse on our roads.
“We acknowledge that maintaining a $250 registration fee for small business might mean an increase in fees for large businesses. However, large carriers should be better able to adjust to any fee changes.” When analyzing the costs of taxes, fees, and equipment, it is clear that larger carriers are in a better financial position under the current regulatory framework.
The Council on Safe Transportation of Hazardous Articles stated that its members support existing programs and see the benefits of all programs. “But nearly doubling funding could lead to significant more unused funds.” Without clear goals on how the funds will be used, we do not believe that such a program would succeed and could lead wasteful spending.