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NACD Opposes DOT Proposal to Triple Hazardous Materials Registration Fees for Some

The National Association of Chemical Distributors (NACD) filed comments this week in opposition to a notice of proposed rulemaking from the Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) to increase the hazardous materials registration fees for registration year 2010-2011 and following years.

PHMSA proposes to increase the fee for those not qualifying as small businesses or not-for-profit organizations from $975 to $2975, plus a $25 administrative fee, in order to fully fund the Hazardous Materials Emergency Preparedness (HMEP) grant program. In 2005, Congress authorized the HMEP program to be funded at a level of $28 million, double its previous level.

NACD’s comments oppose the fee increases, pointing out that there has been no justification or adequate explanation of how the additional funds would be spent. The comments also suggest that if DOT is able to provide a stronger case on why additional funds are needed and how they will be allocated, that the agency consider a performance-based fee structure rather than an arbitrary tripling of fees for many registrants. “Under such a system, those entities with poor incident histories and safety records should pay higher fees as they are the ones causing emergency response resources to be used. Entities with good safety records and incident histories have already invested substantial time and expense in hazardous materials safety training,” wrote NACD Vice President of Government Affairs, Jennifer Gibson.

To view NACD’s full comments, go to :

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