CTA Calls for Disciplined Review of PHMSA’s Proposed Fee Increase

(Ottawa, ON)  In a letter to the U.S. Department of Transportation (DOT), the Canadian Trucking Alliance (CTA) urged the Pipeline and Hazardous Materials Safety Administration (PHMSA) to review the proposed increase to the registration and fee assessment program for hazmat transporters.  CTA reiterated the importance of funding safety and environmental initiatives such as the Hazardous Materials and Emergency Preparedness grants program (HMEP), but questioned the application and level of need for the proposed increase.

“CTA finds it troubling that in the face of federal budget constraints, U.S. agencies are developing a propensity for significant fee hikes to maintain programs on a status quo basis, rather than taking a hard look at programs and determining where cuts to non-essential components can be made,” said CTA President David Bradley.   Bradley cited recent proposed fee increases by the Animal and Plant Health Inspection Service (APHIS) and the Federal Motor Carrier Safety Administration (FMCSA).  Faced with industry opposition and calls for review, APHIS withdrew their proposal and the FMCSA proposal is under review.

“There is nothing in the NPRM that would suggest an analysis has been done of the administrative costs to run the program, or that an effort was made to look at the purposes for which funds are distributed,” Bradley continued.  “The proposal makes no attempt to direct funds at the core components of the program, which in CTA’s view, are training of hazardous materials responders and the conduct of emergency response exercises.”

CTA has further concerns that the fee assigned to large carriers ($25.5 million in gross revenue) is partially based on revenues that are derived from domestic business in Canada that should be completely beyond the reach of the U.S. government. 

“This is patently unfair in CTA’s view, and it is our position that the determination of large carrier status should be based solely on revenue earned in the United States to haul hazardous materials,” explained Bradley.

CTA continues to monitor this issue as PHMSA works toward a final decision.