NACD: Why Is Hazmat Registration Fee Increase Needed?

The National Association of Chemical Distributors (NACD) recently filed comments with the Pipeline and Hazardous Materials Safety Administration (PHMSA) of the U.S. Department of Transportation (DOT) on a proposal to increase the hazardous materials registration fees for registration year 2009-2010 and following years.

PHMSA is proposing to increase the fee for those not qualifying as small businesses or not-for-profit organizations from $975 to $2,475, plus a $25 administrative fee, in order to fully fund the Hazardous Materials Emergency Preparedness (HMEP) grant program, which Congress in 2005 authorized to be funded at a level of $28 million, double its previous level.

NACD's comments raise concerns about the fee increases, pointing out that in 2003, DOT was forced to issue refunds to registrants because of a substantial surplus in the HMEP fund. "Before implementing such significant fee increases, DOT must demonstrate why the additional funds are needed and specifically how they will be spent," says Jennifer Gibson, NACD vice president of Government Affairs, in the comments.

The comments also raise the point that during this time of skyrocketing energy and transportation costs, the fee increase would be a significant burden for hazardous materials carriers.

To view the full comments, visit

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