May 17, 1999

Dockets Unit
U.S. Department of Transportation
Room PL 401
400 7th Street, S.W.
Washington, DC 20590

Re: RSPA-99-5137[HM-208(c)], "Hazardous Materials Transportation; Registration and Fee Assessment Program"

Dear Mr. Roberts:

The Hazardous Materials Advisory Council (HMAC) is an international, non-profit, educational organization devoted to promoting safety in the domestic and international transportation and handling of hazardous materials, substances and wastes. HMAC represents shippers, carriers of all modes, container manufacturers and reconditioners, emergency response and waste clean-up companies, and a variety of other companies and trade associations involved in the field of hazardous materials transportation.

We have reviewed this NPRM which proposes to increase funding available for Hazardous Materials Emergency Preparedness Grants Program (HMEP) administered by RSPA by modifying the annual Registration and Fee Assessment program. In 1994, HMAC facilitated and submitted a consensus report from an Industry Working Group Industry Working Group on this very subject and we are most pleased to see that many of that group's recommendations have been incorporated into the current rulemaking.

We support a major goal of this NPRM, i.e. to fully fund the HMEP Grants Program to the $12.8 million authorized by law and recognize that the current registration program generates much less than that goal. RSPA's proposal has two major thrusts: Expansion of the registrant base and introduction of a two-tier fee structure.

Expanded Registrant Base.

HMAC fully concurs that anyone who transports or offers hazardous materials in an amount requiring placarding should be included within the registration and fee assessment program. This greatly simplifies the requirement to register since placarding is a generally understood measure of hazard presented by the shipment and it would provide more funding through a modest increase in the registrant base. While we are not keen on granting exceptions to the "placarded load" threshold, we recognize the considerations that have prompted RSPA to craft the proposed "farmers exception" and would not oppose this narrow exclusion.

Two-Tier Fee Structure.

HMAC could not come to a consensus view on whether a single (flat fee) structure or a two-tier system of registration is preferable. We are concerned, however, whichever system is finally adopted that RSPA carefully scrutinize their analysis to ensure that the $14.3 million goal is not significantly overshot. Since the NPRM notes that surpluses are not required to be returned, budgeters could be prone to include other programs into this off-budget funding mechanism which was originally developed to support only the HMEP Grants Program. (For example, this is how the publication and distribution of the NAERG came to be funded with registration monies.) Additionally, we feel that it is essential that grant recipients be required to certify to RSPA that funds received are being utilized only for purposes authorized by the enabling statute.

HMAC fully supports multi-year registration which is proposed in this NPRM. This would significantly lessen the current cost of annually exchanging certification papers in the cab/wheelhouse of transport units.

HMAC appreciates the opportunity to submit these comments on this NPRM. If you should have any questions on the issues we have raised, please feel free to contact HMAC at 202-289-4550.

Sincerely,

Jonathan Collom
President