Hazardous Materials Transportation; Registration and Fee Assessment Program

SUMMARY: RSPA is proposing changes to the current registration and fee

assessment program for persons who transport or offer for

transportation certain categories and quantities of hazardous

materials. The proposed changes would increase the number of persons

required to register and increase the annual registration fee for

shippers and carriers who are not a small business under Small Business

Administration criteria. The proposed changes are intended to raise

additional funds to enhance support for the national Hazardous

Materials Emergency Preparedness Grants Program.

DATES: Written Comments: Comments must be received on or before June

14, 1999.

Public Meeting Date: A public meeting will be held on May 25, 1999;

from 9:00 a.m. to 4:00 p.m. An additional meeting may be scheduled if

there is substantial interest.

ADDRESSES: Written Comments: Address comments to the Dockets Unit, U.S.

Department of Transportation, Room PL 401, 400 Seventh St., SW,

Washington, DC 20590-0001. Comments should identify the docket number

RSPA-99-5137 (HM-208C) and should be submitted in two copies. Persons

wishing to receive confirmation of receipt of their comments should

include a self-addressed stamped postcard. Comments may also be

submitted by e-mail to: http://dms.dot.gov, or by fax to (202) 366-

3753. The Dockets Unit is located on the Plaza Level of the Nassif

Building at the U.S. Department of Transportation at the above address.

Public dockets may be viewed between the hours of 10:00 a.m. and

5:00 p.m., Monday through Friday, except Federal holidays. Internet

users may access all comments and related background materials by using

the Universal Resource Locator (URL) http://dms.dot.gov. An electronic

copy of this document may be downloaded using a modem and suitable

communications software from the Government Printing Office Electronic

Bulletin Board Service at (202) 512-1661.

Public Meeting: The public meeting will be held in room 3200-3204

at the U.S. Department of Transportation's Nassif building, 400 Seventh

Street SW, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Mr. David Donaldson, Office of

Hazardous Materials Planning and Analysis, (202) 366-4484, or Ms. Jodi

George, Office of Hazardous Materials Standards, (202) 366-8553, RSPA,

Department of Transportation, 400 Seventh Street SW, Washington, DC

20590-0001.

SUPPLEMENTARY INFORMATION:

I. Background

A. Current Registration Program

In 1990, amendments to Federal hazardous materials transportation

law, now codified at 49 U.S.C. 5101 et seq. (the law), required the

Secretary of Transportation to establish a registration program. The

Secretary delegated this authority to the Administrator, Research and

Special Programs Administration (RSPA). 49 CFR 1.53(b)(1). The purpose

of the registration program is to gather information about the

transportation of hazardous materials and to fund a grants program to

support hazardous materials emergency response planning and training

activities by State and local governments. Under 49 U.S.C. 5108, each

person who transports or causes to be transported in commerce one or

more of the categories of hazardous materials listed below must file a

registration statement with RSPA and pay an annual registration fee:

(1) A highway-route controlled quantity of Class 7 (radioactive)

materials;

(2) More than 25 kilograms (55 pounds) of a Division 1.1, 1.2, or

1.3 (explosive) material in a motor vehicle, rail car, or freight

container;

(3) A package containing more than one liter (1.06 quarts) of a

hazardous material the Secretary designates as extremely toxic by

inhalation, which has been identified as a material meeting a criterion

of a Zone A material that is toxic by inhalation;

(4) A hazardous material in a bulk packaging, container, or tank if

the packaging, container, or tank has a capacity equal to or greater

than 13,248 liters (3,500 gallons) or more than 13.24 cubic meters (468

cubic feet); or

(5) A shipment in other than a bulk packaging of 2,268 kilograms

(5,000 pounds) or more of a class of hazardous materials for which

placarding of a vehicle, rail car, or freight container is required.

In addition, 49 U.S.C. 5108(a)(2) permits RSPA to require

registration by each person who:

(1) Transports or causes to be transported hazardous material in

commerce but does not engage in the activities listed above; or

(2) Manufactures, fabricates, marks, maintains, reconditions,

repairs, or tests packagings that the person represents, marks,

certifies, or sells for use in transporting in commerce hazardous

materials.

Section 5108(g) allows RSPA to set the registration fee at an

amount between $250 and $5,000, based on one or more of the following

factors:

(1) The gross revenues from the transportation of hazardous

materials;

(2) The types of hazardous materials transported or caused to be

transported;

(3) The quantities of hazardous materials transported or caused to

be transported;

(4) The number of shipments of hazardous materials;

(5) The number of activities which a person carries out for which

filing a registration statement is required;

(6) The threat to property, individuals, and the environment from

an accident or incident involving the hazardous materials transported

or caused to be transported;

(7) The percentage of gross revenues which are derived from the

transport of hazardous materials;

(8) The amount of funds which are made available to carry out the

emergency response planning and training grants program; and

(9) Such other factors RSPA considers appropriate.

Section 5108(i)(2) specifically excepts the following persons from

the registration requirements:

(1) A department, agency, or instrumentality of the United States

Government;

(2) An authority of a State or political subdivision of a State;

(3) An employee of a department, agency, instrumentality, or

authority carrying out official duties; and

(4) An employee of a hazmat employer, which for the purposes of

registration includes the owner-operator of a motor vehicle that

transports in commerce hazardous materials, if that vehicle at the time

of those activities, leased to a registered motor carrier under a 30-

day or longer lease as prescribed in 49 CFR part 376 or an equivalent

contractual agreement.

Section 5108(a)(4) permits RSPA to waive the registration

requirements for

[[Page 18787]]

a person not domiciled in the United States that solely offers

hazardous materials for transportation in commerce to the United States

from a place outside the United States if the country of which such

person is a domiciliary does not require persons domiciled in the

United States who solely offer hazardous materials for transportation

to the foreign country from places in the United States to file

registration statements, or to pay fees, for making such an offer. In

1995, this exception for foreign offerors was incorporated into the

regulations at 49 CFR 107.606(a)(6).

In establishing the registration program, RSPA chose to require

registration by only those persons under a statutory obligation to

register and to impose the minimum $250 fee on those persons, plus an

additional fee, currently set at $50, to pay for the costs of

processing the registration statements, as authorized by 49 U.S.C.

5108(g). All registrants pay the same registration fee, regardless of

their size, their income, or the extent to which they engage in

hazardous materials transportation activities.

The current regulations, in Sec. 107.608(a), require the annual

submission of a registration statement. Section 107.620 requires each

registrant to maintain a copy of its registration statement and the

certificate of registration issued by RSPA at its principal place of

business for three years. In addition, each highway carrier and vessel

operator is required to keep a copy of the current registration

certificate or another document bearing the registration number on

board each vehicle or vessel carrying the types and quantities of

hazardous materials that require registration.

In each of the seven years since 1992, when offerors and

transporters were first required to register, RSPA has received

approximately 27,000 registration statements and an average of $6.9

million to support the HMEP Grants Program.

B. Hazardous Materials Emergency Preparedness (HMEP) Grants Program

1. Purpose and Achievements of the HMEP Grants Program

The HMEP Grants Program, as mandated by the law, establishes a role

for the Federal government in providing financial and technical

assistance, national direction, and guidance to enhance State, local,

and tribal hazardous materials emergency planning and training. The

HMEP Grants Program is designed to build upon existing programs and to

support the working relationships within the National Response System

and the Emergency Planning and Community Right-To-Know Act of 1986

(Title III). 42 U.S.C. 11001 et seq. The grants are used to develop,

improve, and implement emergency plans, to train public sector

hazardous materials emergency response employees to respond to

accidents and incidents involving hazardous materials, to determine

flow patterns of hazardous materials within a State and between States,

and to determine the need within a State for regional hazardous

materials emergency response teams.

The grants program was designed to encourage the growth of

hazardous materials planning and training programs of State, local and

tribal governments. To ensure this growth, Sections 5116(a)(2)(A) and

5116(b)(2)(A) of the law require a State or Native American tribe

applying for grants to certify that the amount it expends on hazardous

materials planning and training, not counting Federal funds, will at

least equal the average amount spent for these purposes during the last

two fiscal years. The HMEP grants therefore represent additional funds

that supplement the amount already being provided by the State or

tribe. To further encourage growth in planning and training funds,

Section 5116(e) limits the Federal share of the costs of the additional

activity for which the grants are made to 80 percent, thus requiring

the State or tribe to provide 20 percent of these additional costs. By

accepting an HMEP grant, the State or tribe commits itself not only to

maintaining its previous level of support, but increasing that level by

an amount representing 20 percent of the funds newly expended on grant-

supported activities each year. For example, an HMEP grant of $100,000

requires an additional commitment of $25,000 in State or tribal funds

over the average amount expended by the agency during the previous two

years. These additional State or tribal funds may be provided in the

form of direct fiscal support or through the provision of in-kind

resources.

Effective responses to hazardous materials incidents depend on the

extent and quality of planning and training. Generally, a State

Emergency Response Commission (SERC) coordinates the activities of the

Local Emergency Planning Committees (LEPCs). The nation's more than

3,000 LEPCs prepare and, in the case of an emergency, implement

emergency plans that delineate how responders coordinate activities at

the scene of an incident. Emergency plans include: (1) commodity flow

studies to determine the materials most likely to create an emergency;

(2) exercise plans to test the effectiveness of emergency response; and

(3) training requirements for responders. RSPA awards grants to

agencies designated by a State or territorial Governor or tribal

leader. These agencies are primarily emergency response and

environmental protection agencies and Native American tribal

governments. The designated agency distributes funds within the State,

territory, or Native American tribe in accordance with HMEP grant rules

and required certifications. Each grant is made in two portions. Under

49 U.S.C. 5116(a), the first portion of grant funds is awarded for

developing, improving, and implementing emergency plans under Title

III; conducting commodity flow studies; and determining the need for

regional hazardous materials response teams. In each year, RSPA

allocates approximately 40 percent of the grant funds for emergency

preparedness planning purposes.

The second portion of the grant is designated for training. RSPA

allocates approximately 60 percent of the grant funds for emergency

preparedness training purposes. This portion is used to train public

sector employees to respond safely and efficiently to accidents and

incidents involving hazardous materials. The people trained include

paid and volunteer firefighters, police, and emergency medical service

providers. The designated agencies distribute the major portion of the

grants to local emergency response organizations. This system promotes

representation of many interests within a State or territory.

The States are also required by Section 5116(a)(2)(B) to pass at

least 75 percent of the planning grant amount to LEPC's to develop

emergency plans, and by Section 5116(b)(2)(C) to make available at

least 75 percent of the training grant amount for training public

sector employees employed or used by a political subdivision of the

State. These provisions ensure that funds are provided to the local

emergency response teams for planning purposes, and that training is

provided to first responders.

Since 1993, all States and territories and 35 Native American

tribes have been awarded planning and training grants totaling $38.6

million. These grants, which were supplemented by funds from States,

tribes, and local agencies, were used to:

Train 576,000 hazardous materials responders;

Conduct 1,825 commodity flow studies;

[[Page 18788]]

Write or update more than 1,000 emergency plans during the

first grant period, 1,200 in the second, 4,475 in the third, and 5,775

in the fourth;

Conduct 2,850 emergency response exercises; and

Assist 1,200 LEPCs during the first year, 2,225 in the

second, 2,150 in the third, and 1,900 in the fourth.

In addition, over the past six years, HMEP Grants Program funds

have been used to support the following related activities in the total

amounts indicated:

$2.1 million for development and periodic updating of a

national curriculum of courses necessary to train public sector

emergency response and preparedness teams. The curriculum guidelines,

developed by a committee of Federal, State, and local experts, include

criteria for establishing training programs for emergency responders at

five progressively more skilled levels: first responder awareness,

first responder operations, hazardous materials technician, hazardous

materials specialist, and on-scene commander. To date, there have been

three major and many minor updates to the curriculum guidelines. The

guidelines are used to qualify courses for inclusion in the list. In

this way, a national list of courses is generated in full partnership

with the States and other interested parties. In addition, RSPA used

some of the registration fees to distribute more than 16,000 copies of

the HMEP interagency-developed curriculum guidelines to grantees,

LEPCs, SERCs, and local fire departments. A small portion of the funds

is used for coordination with other Federal agencies through the

National Response Team Training/Curriculum Sub-Committee, chaired by

RSPA. The guidelines are available from the Federal Emergency

Management Agency (FEMA) via its internet web site at http://

www.fema.gov/emi/hmep or by calling FEMA at 301-447-1009.

$1.7 million to monitor public sector emergency response

planning and training for an accident or incident involving hazardous

materials, and to provide technical assistance to a State or Native

American tribe for carrying out emergency response training and

planning for an accident or incident involving hazardous materials.

$3.3 million for periodic updating and distribution of the

North American Emergency Response Guidebook.

$0.5 million for supplemental grants to the International

Association of Fire Fighters (IAFF) to train instructors to conduct

hazardous materials response training programs.

$2.0 million for administrative costs of carrying out the

HMEP Grants Program.

The HMEP Grants Program has allowed RSPA to support a wide array of

emergency preparedness planning and training activities of States and

Native American tribes, thereby enabling them to better respond to

numerous hazardous-materials-related emergencies. The experiences of

emergency response personnel in actual emergency situations during the

last six years demonstrate the effectiveness of the grants program. A

few representative examples attest to the benefits of this program:

On October 25, 1995, a tank car containing nitrogen

tetroxide ruptured in Bogalusa, Louisiana, causing evacuation of a

large part of the town. The emergency plans of St. Tammany and

Washington parishes, written and updated in part with HMEP grants

funds, were implemented during this accident. Sergeant Robert Pinero of

the Louisiana State Police said, ``Twelve State and local agencies

involved in the Bogalusa response received training because of the HMEP

Grants Program and we were able to effectively respond to this

accident.''

On April 21, 1996, an explosion at a chemical plant in

Lodi, New Jersey, killed four people. Local emergency plans had

recently been updated with HMEP grant funds to include a transportation

perspective and updated mutual aid plans. According to Sergeant Lance

Oram of the New Jersey State Police, ``Mutual aid from surrounding

communities, made possible by updated plans, was critical to limiting

the effect of the accident, as was hazardous materials emergency

training of local responders.''

The Commonwealth of Virginia has implemented a hazardous

materials response team organization in part with HMEP funding. Steven

Patrick, Hazardous Materials Officer for the Virginia State Department

of Emergency Services, stated, ``It would have been impossible to

implement or maintain the response team organization without the

training and planning grants provided by the HMEP Grants Program.''

Virginia's regional response team approach was used in Lynchburg,

Virginia, on March 31, 1998, when a 61-car freight train carrying

acetone derailed and an explosion and fire occurred, resulting in the

evacuation of a 36-block area, including a school, and $1 million in

damages to a nearby storage warehouse. Two regional hazardous materials

teams trained to the technician level using HMEP grant funds responded

to this accident. The availability of trained teams was instrumental in

minimizing the time and expense necessary to respond to the accident

according to the Virginia Department of Emergency Services.

2. Increased Funding of the HMEP Grants Program

The HMEP Grants Program has accomplished much in a short period of

time, but many needs are not being met. Between 1993 and 1998, the

average of $6.4 million available for planning and training grants has

been only 50% of the $12.8 million authorized by the law for these

purposes ($5 million for planning and $7.8 million for training). The

HMEP training grants are essential for providing adequate training of

those persons throughout the nation responsible for responding to

emergencies involving the release of hazardous materials, both through

direct Federal financial assistance for such training and by

encouraging the provision of additional state and local funds for this

purpose.

In a recent review, RSPA estimated that 800,000 shipments of

hazardous materials make their way through the national transportation

system each day. These shipments range in size and type from single

small parcels of consumer commodities, such as flammable adhesives and

corrosive paint strippers, to bulk shipments of gasoline in cargo tank

motor vehicles and flammable or toxic gases in railroad tank cars. Such

shipments are transported in every State, every day of the year, and it

is impossible to predict with any degree of certainty when and where an

incident may occur. The potential threat requires the development of

emergency plans and training of emergency responders on the broadest

possible scale. Yet, RSPA also believes there are over 2 million

emergency responders requiring initial training or periodic

recertification training, including more than 250,000 paid

firefighters, 800,000 volunteer firefighters, 725,000 law enforcement

officers, and 500,000 emergency medical services (EMS) providers.

The continuing need for training for emergency response personnel,

whether paid or volunteer, is partially the result of a relatively high

rate of turnover. Emergency response personnel must be available at any

time and at a moment's notice to respond to situations that by their

very nature are unpredictable and pose a threat not only to the public

in general but to the responder in particular. This turnover means that

each year there is a significant number of recently recruited

responders who must be trained at the most basic level.

[[Page 18789]]

In addition, training at more advanced levels is not simply desirable,

it is essential if emergency response personnel capable of effectively

and safely responding to serious releases of hazardous materials are to

be provided. For this reason, RSPA advocates advanced training at the

first responder operations, hazardous materials technician, hazardous

materials specialist, and on-scene commander levels in every emergency

response team in the country. An increase in the funds available to the

HMEP Grants Program will encourage the State, tribal, and local

agencies to provide this more advanced, and more expensive, training.

The unmet needs of States and Native American tribes for financial

assistance in emergency preparedness planning and training for

transportation-related incidents involving hazardous materials are

great. RSPA is determined to narrow the current gap between the

authorized grant levels and the available Federal funds by its careful

targeting of the additional funds collected as a result of this

rulemaking. RSPA believes that it is essential to increase the awards

for emergency planning and training grants to the full $12.8 million

authorized by the law and, at the same time, maintain current funding

of the additional activities supported by the HMEP Grants Program

described above. We fully expect that the additional funds collected as

a result of this rulemaking effort will enable us to achieve that

objective. For FY-2000, RSPA is seeking Congressional appropriations of

$14.3 million in support of HMEP Grants Program activities to permit

funding for:

Training and planning grants ($12.8 million);

Grants/support to certain national organizations to train

instructors to conduct hazardous materials response training programs

($250,000);

Revising, publishing, and distributing the North American

Emergency Response Guidebook ($600,000 per year average);

Monitoring and technical assistance ($150,000);

Continuing development of a national training curriculum

($200,000); and

Administering the grants program ($300,000).

II. Meeting the Need for Increased Funding

A. Publicity Campaigns to Notify Affected Persons

RSPA has conducted extensive outreach efforts to increase awareness

of the registration requirement. Approximately 780,000 informational

brochures have been distributed through direct mailing campaigns and

during presentations to industry. Those mailing campaigns targeted,

among others:

(1) More than 60,000 carriers and shippers identified as carriers

or shippers of hazardous materials by the Federal Highway

Administration's (FHWA) Office of Motor Carriers (OMC);

(2) 6,000 motor carriers required to maintain financial

responsibility in the amount of $1 million or $5 million in insurance;

(3) 700 railroad companies known to the Federal Railroad

Administration (FRA);

(4) More than 22,000 generators and 13,000 transporters of

hazardous waste identified by the Environmental Protection Agency;

(5) Over 16,500 carriers and shippers identified in RSPA's

Hazardous Materials Incident Reporting System;

(6) Approximately 4,000 holders of hazardous materials exemptions

issued by RSPA;

(7) Thousands of shippers and carriers who are members of trade

associations with interests in the transportation of hazardous

materials; and

(8) Thousands of carriers and shippers known to State agencies.

To avoid duplication of mailings when possible, RSPA has cross-

checked its registration data base with other lists provided by the

various Federal and State agencies and industry sources. Annually, RSPA

mails registration brochures and forms to hazardous materials shippers

and carriers newly entered into the OMC census of highway carriers and

shippers and into the RSPA list of shippers and carriers named on the

hazardous materials incident report form. The registration program has

been publicized in trade magazines and industry newsletters. Seven

notices of the registration requirements have been published in the

Federal Register.

B. Measures to Enhance Compliance

Many commenters to Docket HM-208B (60 FR 5822, January 30, 1995)

questioned whether a significant number of persons required to register

failed to do so, and whether an accelerated enforcement program would

raise sufficient funds to support the HMEP Grants Program fully. In

1994, to ensure compliance with the registration requirements, RSPA

proposed that offerors and transporters verify the registration status

of each other before transportation begins (Docket HM-208A, 59 FR

15602, April 1, 1994). Most commenters opposed this proposal.

Commenters overwhelmingly believed that Federal and State agencies, and

not industry, should be responsible for enforcing the regulations.

Commenters opposing this proposal cited logistical problems,

administrative burdens, and increased costs as reasons for their

opposition. RSPA did not adopt the proposal in the final rule (59 FR

32930, June 27, 1994).

The DOT modal administrations have incorporated verification of

registration into their normal compliance inspection routines.

Enforcement efforts sponsored by FHWA indicate a relatively high

compliance rate by motor carriers. Enforcement of the registration

requirements was a key element of ROADCHECK-93, and ROADCHECK-95,

nationwide inspection efforts led by FHWA. In ROADCHECK-93, of 2,300

placarded trucks that were checked for proof of registration, 88% were

registered and had proof on board. Of the 12% that did not have proof

on board, 80% were already registered. In ROADCHECK-95, 1,220 placarded

trucks were stopped. Of these, 91% were registered and had proof of

registration on board. Of the 9% that did not have proof on board, 60%

were registered. This indicates a compliance rate among highway

carriers of over 95%.

The safety compliance reviews conducted by FHWA (motor carriers)

and RSPA (non-bulk shippers and other offerors) confirm high rates of

compliance with the registration rule by industry. The following table

contains a summary of compliance statistics.

Summary of Compliance Reviews--Hazardous Materials Registration Rule (1995-1997)

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

Number of

Number of citations for Percent of

Period and agency inspections failure to failures to

register register

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

FY 95 FHWA...................................................... 2,338 100 4.3

FY 96 FHWA...................................................... 3,215 79 2.5

FY 97 FHWA...................................................... 1,369 44 3.2

[[Page 18790]]

FY 98 FHWA...................................................... 2,032 35 1.7

CY 95 RSPA...................................................... 586 19 3.2

CY 96 RSPA...................................................... 610 15 2.5

CY 97 RSPA...................................................... 875 20 2.3

CY 98 RSPA...................................................... 1,053 26 2.5

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

FRA publicized the registration program through technical bulletins

and informational brochures distributed to its regional offices and all

FRA inspectors. FRA checks for registrations during compliance reviews

and issues notices of defects for failure to register. FRA, FHWA, and

28 State enforcement agencies have issued more than 700 informal

notices of the requirement to register, a form developed for use in

ROADCHECK-93, but used beyond that operation. The majority of these

notices were issued in 1993, 1994, and 1995.

RSPA's goal remains 100% compliance. Therefore, RSPA once again

requests assistance from all interested persons to identify those

elements of affected industries, or individual companies, that they

suspect are required to file a registration statement and pay a fee,

but have not done so. Suspected violations of the registration

requirements, as well as other possible violations of the Hazardous

Materials Regulations, may be reported by calling RSPA's Hazardous

Materials Regulations Information Center at (800) 467-4922.

C. DOT Inspector General Recommendations

In 1996 the DOT Office of Inspector General performed a review of

the hazardous materials registration program, concentrating on RSPA's

efforts to inform the public of the registration requirements. The OIG

issued a ``Management Advisory'' on April 3, 1998, as a result of this

review, which made several recommendations, including one that called

on RSPA to establish a graduated registration fee schedule based on the

types and quantities of hazardous materials transported in order to

increase the grants program funds. That recommendation is addressed in

this notice. The other recommendations were related to increasing

RSPA's efforts to encourage compliance with the current registration

requirements through additional public information efforts.

To implement these recommendations, in May 1998 RSPA sent brochures

to 42,300 companies that were identified as carriers or shippers of

hazardous materials by the OMC. All of these companies had previously

been sent information on the registration program since 1992. In

October 1998 RSPA resent brochures to 33,000 of these companies in an

effort to ensure that companies likely to be required to register had

been informed of the registration program. RSPA also mailed

registration information to 6,229 companies in the OMC insurance record

database that are insured for $1 million or $5 million. RSPA estimates

that approximately 800 companies registered as a result of the May 1998

mailing and approximately 200 in response to the October 1998 mailing.

While these new registrations provide an additional $250,000 in annual

fees to support the HMEP Grants Program, it is an amount far short of

what is necessary to enhance funding for the program at the intended

level. The results of this effort are consistent with RSPA's finding

that at least 90% of the persons required to file a registration

statement and pay a fee are complying with the current rule, and that

little additional levels of revenue may be obtained by a more

aggressive compliance enforcement effort.

D. RSPA's Past Proposal to Increase Funding the Grants Program

On January 30, 1995, RSPA published a notice of proposed rulemaking

under Docket HM-208B (60 FR 5822) proposing a three-tier registration

fee schedule. The proposed registration fee schedule was based on

various factors related to the extent of a company's involvement in the

transportation of hazardous materials. After considering over 300

comments from the public and other interested parties, RSPA concluded

that it needed more time to assess the registration and grant programs

and to reconsider fee equity based on the risks posed by various types

and quantities of hazardous materials. A final rule adopting some minor

revisions to the registration program, but maintaining a flat fee of

$300, was published on May 23, 1995 (60 FR 27231). In the four years

since that proposal, providing funds to support planning and training

aspects of the HMEP Grants Program at the levels authorized by Congress

has been an important goal for RSPA and the grant recipients.

E. Negotiated Rulemaking Convening Report

RSPA has considered advice, comments, and suggestions from the

public and interested industry groups made in previous rulemakings, and

at meetings, seminars, workshops, and discussions concerning the

reauthorization of the hazardous materials safety program. In the

Spring of 1998, in anticipation of this proposed rulemaking, RSPA

awarded a contract to assess the feasibility of addressing this issue

through a negotiated rulemaking. The convenor contacted approximately

40 representatives of the hazardous materials industry and State

regulatory agencies affected by the registration and grants programs to

ascertain issues of concern to these parties. The convenor recommended

that RSPA should proceed to use the negotiated rulemaking process to

develop an NPRM on the registration and fee requirements.

Although RSPA determined not to convene a committee, the convening

report has been useful in formulating this current proposal. A copy of

the Convening Report has been entered into this docket and is available

for review through DOT's Docket Unit and via the Internet at the URL

indicated in the addresses section of this document.

III. Proposal to Increase Funding of the HMEP Grants Program

In setting a registration fee, RSPA believes that its proposal

should meet the following objectives: (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.

[[Page 18791]]

Alternatives considered by RSPA for increasing the funds available

for the HMEP Grants Program included: (1) Increasing the flat fee

imposed on current registrants; (2) imposing a flat-fee on an expanded

base of registrants; (3) imposing a two-tier fee schedule on the

current registrants; and (4) imposing a two-tier fee schedule on an

expanded base of registrants. RSPA has concluded that imposing a two-

tiered fee schedule on an expanded base of registrants is the best

approach to meet the objectives listed above. The preliminary

regulatory evaluation prepared in support of this notice of proposed

rulemaking contains a discussion of each of those alternatives. A copy

of the preliminary regulatory evaluation was entered into the docket

and is available for review by all interested parties.

A. Impose a Two-Tier Fee Schedule on an Expanded Base of Registrants

RSPA proposes to expand the number of persons required to register

and to impose a fee schedule based on the size of the business. The

base of registrants would be expanded to all persons offering or

transporting a shipment of hazardous materials that requires

placarding, with the exception of farmers, as discussed below. A two-

tier fee schedule would be created, with the lower fee imposed on

registrants meeting the U.S. Small Business Administration (SBA)

criteria for a small business, also discussed below. This alternative

would distribute fees according to a long-established measurement of

business size and ensure the collection of sufficient funds to support

the HMEP Grants Program at an enhanced level. Under this proposal, RSPA

would achieve its goal of raising $14.3 million annually (exclusive of

funds collected for administrative processing), by collecting a fee of

$300 (which includes a $25 processing fee) from approximately 43,500

registrants that are small businesses and a fee of $2,000 (which

includes a $25 processing fee) from an estimated 1,500 registrants not

meeting the criteria for a small business. Should the amount actually

collected exceed $14.3 million, the law, at Sec. 5108(g)(2)(B),

specifies that the Secretary of Transportation shall adjust the amount

being collected to reflect any unexpended balance in the account.

However, the Secretary is not required to refund any fee.

This alternative recognizes the risks posed to health and safety or

property by the transportation of hazardous materials in significant

quantities that require placarding. It would require that shippers,

carriers and other persons involved in the shipment of a placarded load

of hazardous materials bear a fair share of the financial burden that

falls on State and local government agencies to develop emergency plans

and to train first-on-the-scene responders.

Expanded Base

RSPA proposes to expand the base of persons required to register to

include, with one exception, offerors, carriers, and other persons who

transport or cause to be transported hazardous materials in a bulk

packaging, freight container, unit load device, transport vehicle, or

rail car that must display a hazard warning placard, under the

provisions of subpart F of part 172 of the Hazardous Materials

Regulations (HMR; 49 CFR parts 171-180).

The one exception is for those activities of a ``farmer,'' as

defined in Sec. 171.8 of the HMR, that support the farmers farming

operations. Absent this exception, the registration rule would

potentially apply to a very large number of the nation's more than two

million farms. If the actual number of affected farmers were only one

percent of the total number of farms, i.e., 20,600, that segment of the

economy would nearly equal the current number of 27,000 registrants

drawn from all segments of the economy. However, this is not a blanket

exception for all farmers from the registration rule. If a farmer

offers for transportation or transports in commerce a hazardous

material that is specifically identified in Sec. 5108(a)(1) of the law,

that farmer must submit a registration statement and pay the required

fee.

RSPA's proposal to expand the base of persons required to register

by including all placarded loads is responsive to concerns raised by

numerous persons who participated in earlier rulemaking proceedings on

this topic and through the convening process discussed earlier in this

preamble. This proposed expansion of the base to include all placarded

loads incorporates three important elements. First, the classes and

quantities of hazardous materials for which placarding is required pose

a substantial threat to health and safety or property during

transportation. Second, the application of generally well understood

hazard communication criteria for placarding greatly simplifies the

matter of whether a shipper, carrier or other person is required to

register. Simplification of the regulations similarly makes the rule

much easier to enforce, thereby further assuring a high rate of

compliance. Third, by expanding the scope of the registration rule RSPA

expects that it will have the financial resources necessary to increase

funding of planning and training grants under the HMEP Grants Program

to levels currently authorized by the law.

RSPA estimates that the proposed expansion of the universe of

additional persons required to register will result in an additional

15,000 to 18,000 registrations, for a total of 42,000 to 45,000

annually. This is based on RSPA's review of the best available data

from a number of sources, including the FHWA's Office of Motor Carriers

(OMC) database of motor carriers and their shippers, the 1992 Truck

Inventory and Use Survey conducted by the U.S. Census Bureau, and the

1992 Economic Census, also conducted by the U.S. Census Bureau.

While none of these sources discussed above contain the number of

persons who offer or transport hazardous materials in shipments that

require placarding, RSPA believes its estimate of the total number of

registrants is conservative and reasonable. We request information on

other sources from which to better estimate the number of persons who

would be required to register under the proposed rule. If such new

information suggests a number significantly larger than RSPA's current

estimate, RSPA would consider adjusting the proposed registration fees

to avoid collecting an amount in excess of the $14.3 million needed to

enhance funding of the HMEP Grants Program.

In addition, RSPA is interested in public comments on the

advisability of expanding the number of persons required to register as

proposed above, especially in relation to the economic impact of

adopting or not adopting this element of the proposal.

Two-tier Schedule of Fees

RSPA proposes a two-tier fee schedule based on information that:

(1) Is readily available to potential registrants; (2) can be verified

by inspection and enforcement personnel; and (3) is based on one or

more of the fee determinants permitted by law. Although the

registration statement is excepted by 49 U.S.C. 5108 from requirements

of the Paperwork Reduction Act, RSPA seeks to avoid any approach that

entails a large record keeping and accounting burden on industry and

the government. For example, basing the annual registration fee on a

person's hazardous materials shipments could require significant

changes in the way a registrant handles its paperwork tracking and

accounting procedures. Further, law enforcement personnel would have to

verify this information in order to ensure that a person's annual fee

is in fact commensurate with its activities.

[[Page 18792]]

RSPA believes that its goals are best met by establishing a two-

tier fee schedule under which a company not meeting the small-business

criterion established for it by the SBA at 13 CFR 121.201 pays a larger

fee than that required for a small business. Upon careful review of

census data concerning establishments identified by SIC codes

corresponding to operations involving the likely manufacture,

distribution, or sale (wholesale and retail) of hazardous materials,

RSPA estimates that of the 27,000 current registrants, approximately

1,000 registrants do not qualify as a SBA small business. If the base

of registrants is expanded to include all persons who offer or

transport placarded shipments, RSPA estimates that 1,500 shippers,

carriers, and offerors of hazardous materials would not qualify as a

SBA small business, while an estimated 43,500 registrants would meet

the criterion established by SBA appropriate to their commercial

activity.

RSPA believes this regulatory approach provides fee levels that

reflect a key factor contained in 49 U.S.C. 5108(g)(2)(A),

specifically, the relative size of a business. In addition, this

proposal addresses the different levels of risk posed by smaller

companies that are engaged in fewer and smaller shipments of hazardous

materials as compared to larger companies that annually manufacture,

offer, and transport thousands of tons of hazardous materials. RSPA

maintains that five of the specific factors permitted by 49 U.S.C.

5108(g)(2)(A) as fee determinants were intended to be indications of

the level of risk imposed by the registrant, and that two were intended

to be indications of the size of the business (see the list of fee

determinants above). Use of the SBA standards for differentiating small

businesses offers a simple and direct factor that is commonly used and

established by Federal regulation. The use of alternative size

criteria, even though they could be defined to reflect, for instance,

the relative percentage of specific hazardous materials related

businesses, would impose additional and possibly significant record-

keeping requirements on the registrants.

RSPA believes that the use of the SBA size criteria as a fee

determinant will not impose any additional recordkeeping requirements

on the registrants since existing personnel and payroll records can be

used to substantiate the number of employees, and financial records

subject to routine audits can be used to substantiate gross annual

receipts.

The SBA size standards for small businesses are readily available

and relatively simple to apply to a business. Each Standard Industrial

Code is assigned a standard that is either the number of employees or

the gross annual receipts of the business. If a registrant's number of

employees or gross annual receipts is equal to or less than the

standard assigned to the SIC category that best describes its

commercial activities, it qualifies as a small business. In most

instances a registrant will be able to immediately determine whether it

meets the small business definition. For instance, the size standard

for SIC Division D (Manufacturing) is the number of employees, and

depending on the product manufactured can be 500, 750, 1000, or 1,500.

Any registrant whose primary business is manufacturing that employs 500

persons or less, will qualify as a small business, and, again depending

on the SIC code, may qualify as a small business with up to 750 or 1000

employees. Registrants whose primary business falls within the SIC

Major Group ``Motor Freight Transportation and Warehousing'' are

defined as small businesses if the gross annual receipts are equal to

or less than $18.5 million, with two exceptions (``Garbage and Refuse

Collection, without Disposal'' has an upper limit of $6.0 million, and

``Terminal and Joint Terminal Maintenance Facilities for Motor Freight

Transportation'' has a limit of $5.0 million). Here again, RSPA

believes that most motor carriers will immediately recognize whether

they meet the SBA criterion for a small business.

The SBA size criteria in 13 CFR part 121 are applied to a

``business concern'' or ``business entity.'' For the purposes of

determining the appropriate registration fee, the SBA criteria are to

be applied to the registering ``person'' as defined in 49 CFR 107.3,

even if that ``person'' is substantively different from the SBA

``concern'' or ``entity.'' For example, the SBA, at 13 CFR 121.103(a),

sometimes looks beyond the specific operations of a legally organized

business to consider whether its affiliation with another business

concern or business entity through identical or substantially identical

business or economic interests, such as family members, persons with

common investments, or firms that are economically dependent through

contractual or other relationships, may be treated as one party with

such interests aggregated. In its application of requirements for

registration RSPA makes no such distinction and each business concern

or business entity subject to the registration regulation would be

required to file a separate registration statement and pay the

appropriate fee.

Under this proposal, a foreign carrier that transports a specified

type and quantity of hazardous material within the United States would

have to determine its small-business status by applying the criteria in

13 CFR 121.201, using the U.S. Dollar equivalent of annual receipts or

the number of employees, as appropriate.

RSPA is interested in public comments on the advisability of

imposing a two-tier schedule of fees as proposed above, particularly in

relation to the alternative of maintaining the greater simplicity of a

flat fee collected from all registrants regardless of their business

size or amount and type of hazardous materials activities.

Lower Administrative Fee for All Registrants.

In this notice, RSPA proposes to reduce the processing fee to $25

in order to bring the aggregate amount collected closer to the amounts

needed to process the registration statement and to issue the

Certificate of Registration. All amounts collected by RSPA (including

the processing fee) are deposited into the U.S. Treasury, and Congress

appropriates funds for RSPA to process registration statements, issue

registration certificates, and perform the related parts of the

registration program. In Fiscal Years 1996-99, the amounts needed by

RSPA to administer the registration program, and appropriated by

Congress, have been about one-half of the total processing fees

collected. Although the current proposal would increase the number of

persons required to register and pay a registration fee, RSPA estimates

that a processing fee of $25 per registration statement will still be

necessary and sufficient to administer the registration program at that

level.

B. Registration Procedures

In connection with the proposed fee schedule, RSPA notes that

additional information would be required on the Registration Statement

submitted by persons subject to the registration requirements. The

proposed new information includes the SIC Code and certification of

whether the registrant meets the SBA standards for a small business.

The SIC Code would replace the former indication of ``Industrial

Classification'' on the Registration Statement.

At the request of various industry representatives, RSPA is also

proposing to permit registration for one, two, or three years on a

single registration

[[Page 18793]]

statement. Registration for more than a single year would be strictly

optional. Registrants that register for years in advance would not

receive RSPA's courtesy mailing of registration materials in the years

for which they have pre-registered, but would receive a notice to

register when their current registration is about to expire. A single

administrative fee of $25 would be collected for each registration

statement submitted under this proposal, whether for one, two, or three

years, and a single registration statement and number would be issued

for the entire period.

IV. Fiscal Year 2000 Budget Request and Hazardous Materials

Transportation Reauthorization Proposal

The Administration's Fiscal Year 2000 Budget and the Hazardous

Materials Transportation Reauthorization proposals to Congress include

legislative authority to fund RSPA's entire Hazardous Materials Safety

Program from the registration fee program, beginning with the fourth

quarter of fiscal year 2000. If this authority is granted, RSPA will

initiate additional rulemaking action to collect the approximately

$32.5 million needed to adequately fund both the HMEP Grants program

($14.3 million) and the remainder of RSPA's Hazardous Materials Program

($18.2 million).

V. Rulemaking Analyses and Notices

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

This proposed rule is considered a significant regulatory action

under section 3(f) of Executive Order 12866 and was reviewed by the

Office of Management and Budget. The rule is considered significant

under the Regulatory Policies and Procedures of the Department of

Transportation [44 FR 11034]. A regulatory evaluation is available for

review in the public docket. This proposal is intended to collect

annual registration fees in the amount of $14.3 million to support

activities of the HMEP Grants Program. Because Federal hazardous

materials transportation law mandates the establishment and collection

of fees, the discretionary aspects of this rulemaking are limited to

setting the amount of the fee within the statutory range for each

person subject to the registration program, and to extending the

registration requirements to persons who transport or cause the

transportation of hazardous materials but who are not specifically

required to register by law. The proposed fees are not related to the

cost of RSPA's hazardous materials safety programs. The fees to be paid

by shippers and carriers of certain hazardous materials in

transportation are related to the benefits received by these persons

from the sale and transportation of hazardous materials and from

emergency response services provided by public sector resources, should

an accident or incident occur. The fees are also related to expenses

incurred by State, Native American tribal, and local hazardous

materials emergency preparedness and response activities.

B. Executive Order 12612

This action has been analyzed in accordance with Executive Order

12612 (``Federalism''). States and local governments are ``persons''

under 49 U.S.C. 5102, but are specifically exempted from the

requirement to file a registration statement. The regulations herein

have no substantial effects on the States, on the current Federal-State

relationship, or on the current distribution of power and

responsibilities among the various levels of government. This

registration regulation has no preemptive effect. It does not impair

the ability of States, local governments or Native American tribes to

impose their own fees or registration or permit requirements on

intrastate, interstate or foreign offerors or carriers of hazardous

materials. Thus, RSPA lacks discretion in this area, and preparation of

a federalism assessment is not warranted.

C. Executive Order 13084

RSPA believes that revised regulations evolving from this NPRM

would have no significant or unique effect on the communities of Indian

tribal governments when analyzed under the principles and criteria

contained in Executive Order 13084 (``Consultation and Coordination

with Indian Tribal Governments''). Therefore, the funding and

consultation requirements of this Executive Order would not apply.

Nevertheless, this NPRM specifically requests comments from affected

persons, including Indian tribal governments, as to its potential

impact.

D. Regulatory Flexibility Act

The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires each

agency to review regulations and assess their impact on small entities

unless the agency determines that a rule is not expected to have a

significant impact on a substantial number of small entities. Based on

its preliminary regulatory evaluation prepared in support of this

proposal, RSPA certifies that this proposed rule would not have a

significant economic impact on a substantial number of small entities.

This proposal would expand the number of persons subject to RSPA's

registration and fee program to include all persons who offer for

transportation or transport a shipment of hazardous materials required

to be placarded. RSPA is also proposing to maintain at the current

level the combined registration and processing fee in the amount of

$300 as authorized by the Federal hazardous materials transportation

law for persons meeting the Small Business Administration (SBA)

definition of small business. In addition, RSPA is proposing a limited

exception for farmers that offer for transportation or transport

certain shipments of hazardous materials in support of their farm

operations.

Approximately 27,000 persons registered with RSPA for each of the

last two registration years, and these persons are expected to engage

in hazardous materials transportation activities that require

registration in the coming years. Approximately 65% (17,550) of these

persons are carriers or carriers-and-shippers, the remaining 35%

(9,450) being shippers or other offerors who do not transport hazardous

materials. RSPA estimates that the proposed expansion of the universe

of persons required to register will result in an additional 15,000 to

18,000 registrations, for a total of 42,000 to 45,000 annual

registrations. This represents the least number of registrations that

can be reasonably expected under the proposed rule.

The 1992 Truck Inventory and Use Survey (TIUS-92) conducted by the

Bureau of the Census as part of the Census of Transportation indicates

that there were 17 million trucks (not including pickups, vans, utility

vehicles, and station wagons) in the United States. Except for a few

specialized vehicle types, essentially all of those 17 million trucks

may be used in the transportation of hazardous materials. With

deregulation of the trucking industry there are essentially no economic

barriers to entry into this field of transportation; carriers that are

ready, willing, and able to transport hazardous materials are generally

free to do so. The data indicate that only 360,000 of the 17 million

trucks are actually used to carry placarded shipments of hazardous

materials. The number of companies maintaining these trucks was not

included in the census, but fleet sizes were provided. The number of

fleets that included a truck that carried hazardous materials is

estimated to be 40,000. This number contains an undetermined number of

[[Page 18794]]

farmers who would be excepted under the proposed rule.

The number of persons who offer shipments of hazardous materials

for transportation exclusively by rail, air, or water is thought to be

quite small by comparison to multi-modal shippers, and probably does

not exceed 500 to 1,000. An increase is expected in the number of motor

carriers that would be required to register and in the number of

persons that offer shipments of hazardous materials that require

placarding for transportation. RSPA expects that the estimated 15,000

to 18,000 new registrants will be divided in approximately the same

proportion as the current mix of registrants, i.e., 65% (9,750 to

11,700) would be carriers or carriers-and-shippers, and 35% (5,250 to

6,300) would be persons who never transport their own shipments of

hazardous materials. Of the estimated 15,000 to 18,000 new registrants,

RSPA estimates that all but 400 to 500 are small businesses.

RSPA believes the $300 in annual registration fees is so small as

to not constitute a significant burden on any small business. For

example, an independent owner-operator, i.e., a motor carrier not

operating under lease to a registered motor carrier, probably

represents the smallest of all small businesses potentially subject to

requirements in this proposed rule. These owner-operators typically own

one truck and average 2,000 revenue-miles per week at an estimated cost

per mile of $0.80 cents. Assuming the typical independent owner-

operator is in service 40 weeks per year, the additional cost per mile

attributed to $300 in registration and processing fees is $0.00375

cents. Stated differently, the independent owner-operator's increased

cost of doing business would be less that one-half of 1% of current

costs. That does not represent a significant impact on an independent

owner-operator's cost of doing business.

As indicated above, there are nearly 17 million vehicles in either

private commercial operations or for-hire service. Assuming, on the

basis of census data, that one-truck-only operators comprise 28% of the

national fleet, it follows that there are at least 4.25 million

concerns that could, at their discretion, engage in the transportation

of hazardous materials. In this analysis, RSPA notes that the estimated

total number of 9,750 to 11,700 persons described as carriers or

carriers-and-shippers that the agency expects would be subject to the

requirement to register is less than one-half of 1% of the 4.25 million

very small carriers that comprise the for-hire and commercial business

services sector of the national economy. That is neither a substantial

number of all potentially affected transporters, nor is it a

substantial number of the 97% of those operators that RSPA believes

meet SBA criteria for a small business.

E. Unfunded Mandates Reform Act of 1995

This proposed rule would not impose unfunded mandates under the

Unfunded Mandates Reform Act of 1995. It would 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.

This proposed rule is the least burdensome alternative that achieves

the objective of the rule.

F. Paperwork Reduction Act

Under 49 U.S.C. 5108(i), reporting and recordkeeping requirements

pertaining to the registration rule are specifically excepted from

information management requirements of the Paperwork Reduction Act (44

U.S.C. 3501 et seq.)

G. Impact on Business Processes and Computer Systems (Year 2000)

Many computers that use two digits to keep track of dates may, on

January 1, 2000, recognize ``double zero'' not as 2000 but as 1900.

This glitch, the Year 2000 problem, could cause computers to stop

running or to start generating erroneous data. The Year 2000 problem

poses a threat to the global economy in which Americans live and work.

With the help of the President's Council on Year 2000 Conversion,

Federal agencies are reaching out to increase awareness of the problem

and to offer support. We do not want to impose new requirements that

would mandate business process changes when the resources necessary to

implement those requirements would otherwise be applied to the Year

2000 problem.

This NPRM does not propose business process changes or require

modification to computer systems. Because the NPRM apparently does not

affect organizations' ability to respond to the Year 2000 problem, we

do not intend to delay the effectiveness of the proposed requirements

in the NPRM.

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 can 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.

Accordingly, RSPA proposes to amend 49 CFR part 107 as follows:

PART 107--HAZARDOUS MATERIALS PROGRAM PROCEDURES

1. The authority citation for part 107 would continue 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.

Subpart G--Registration of Persons Who Offer or Transport Hazardous

Materials

2. Section 107.601 would be revised to read as follows:

Sec. 107.601 Applicability

(a) The registration and fee requirements of this subpart apply to

any person who offers for transportation, or transports, in foreign,

interstate or intrastate commerce--

(1) A highway route-controlled quantity of a Class 7 (radioactive)

material, as defined in Sec. 173.403 of this chapter;

(2) More than 25 kg (55 pounds) of a Division 1.1, 1.2, or 1.3

(explosive) material (see Sec. 173.50 of this chapter) in a motor

vehicle, rail car or freight container;

(3) More than one L (1.06 quarts) per package of a material

extremely toxic by inhalation (i.e., ``material poisonous by

inhalation,'' as defined in Sec. 171.8 of this chapter, that meets the

criteria for ``hazard zone A,'' as specified in Secs. 173.116(a) or

173.133(a) of this chapter);

(4) A shipment of a quantity of hazardous materials in a bulk

packaging (see Sec. 171.8 of this chapter) having a capacity equal to

or greater than 13,248 L (3,500 gallons) for liquids or gases or more

than 13.24 cubic meters (468 cubic feet) for solids;

(5) A shipment in other than a bulk packaging of 2,268 kg (5,000

pounds) gross weight or more of one class of hazardous materials for

which placarding of a vehicle, rail car, or freight container is

required for that class, under the provisions of subpart F of part 172

of this chapter; or

(6) Except as provided in paragraph (b) of this section, a quantity

of hazardous material that requires

[[Page 18795]]

placarding, under provisions of subpart F of part 172 of this chapter.

(b) Paragraph (a)(6) of this section does not apply to those

activities of a farmer, as defined in Sec. 171.8 of this chapter, that

are in direct support of the farmers farming operations.

(c) In this subpart, the term ``shipment'' means the offering or

loading of hazardous material at one loading facility using one

transport vehicle, or the transport of that transport vehicle.

3. In Sec. 107.608, paragraphs (a), (b), and (d) would be revised

to read as follows:

Sec. 107.608 General registration requirements.

(a) Except as provided in Sec. 107.616(d), each person subject to

this subpart must submit a complete and accurate registration statement

on DOT Form F 5800.2 not later than June 30 for each registration year,

or in time to comply with paragraph (b) of this section, whichever is

later. Each registration year begins on July 1 and ends on June 30 of

the following year.

(b) No person required to file a registration statement may

transport a hazardous material or cause a hazardous material to be

transported or shipped, unless such person has on file, in accordance

with Sec. 107.620, a current Certificate of Registration in accordance

with the requirements of this subpart.

* * * * *

(d) Copies of DOT Form F 5800.2 and instructions for its completion

may be obtained from the Hazardous Materials Registration Program, DHM-

60, U.S. Department of Transportation, Washington, DC 20590-0001, by

calling 617-494-2545 or 202-366-4109, or via the Internet at http://

hazmat.dot.gov.

* * * * *

4. Section 107.612 would be revised to read as follows:

Sec. 107.612 Amount of fee.

(a) Registration year 1999-2000 and earlier. For all registration

years through 1999-2000, each person subject to the requirements of

Sec. 107.601(a)(1)-(5) must pay an annual fee of $300 (which includes a

$50 processing fee).

(b) Registration year 2000-2001 and following. For each

registration year beginning with 2000-2001, 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 standard

industrial classification (SIC) code that describes that person's

primary commercial activity must pay an annual fee of $300 (which

includes a $25 processing fee).

(2) Other than a small business. Each person that does not meet

criteria specified in paragraph (b)(1) of this section must pay an

annual fee of $2,000 (which includes a $25 processing fee).

(3) The processing fee is limited to $25 for each registration

statement filed for more than one year, as provided in Sec. 107.616(c).

5. In Sec. 107.616, paragraphs (c) and (d)(2) would be revised to

read as follows:

Sec. 107.616 Payment procedures.

* * * * *

(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.

(d) * * *

(2) Pay a registration and processing fee of $350 (including a $50

expedited handling fee). For registration years 2000-2001 and

following, persons who do not meet the criteria for a small business,

as specified in Sec. 107.612(b)(1), must enclose payment of $1,700 with

the expedited follow-up material, for a total of $2,050 (including a

$50 expedited handling fee); and

* * * * *

Issued in Washington, D.C. on April 12, 1999, under authority

delegated in 49 CFR part 106.

Alan I. Roberts,

Associate Administrator for Hazardous Materials Safety.

[FR Doc. 99-9453 Filed 4-14-99; 8:45 am]

BILLING CODE 4910-60-P