The Pipeline and Hazardous Materials Safety Administration (PHMSA), an agency within the U.S. Department of Transportation, has withdrawn a proposed rule that would have raised registration fees for companies and organizations involved in transporting or offering hazardous materials. Published in the Federal Register on November 20, 2025, this withdrawal ends a rulemaking process initiated in May 2024 under docket number PHMSA-2022-0033. The move prioritizes reducing economic burdens on the hazardous materials transportation sector, consistent with broader federal directives to ease regulatory compliance. By halting the fee increases, PHMSA ensures that funding for emergency response programs remains stable without additional costs to registrants, affecting thousands of businesses and nonprofits that handle hazardous substances.
Background and Original Proposal
PHMSA oversees the registration and fee assessment program under 49 CFR Part 107, which requires entities transporting or offering specific categories and quantities of hazardous materials to register annually and pay fees. These fees fund grants for state, local, and tribal emergency response planning and training, as well as the development of resources like the Emergency Response Guidebook. The program stems from statutory mandates in the Hazardous Materials Transportation Act, aimed at enhancing safety and preparedness for incidents involving materials such as chemicals, explosives, and radioactive substances.
In the May 24, 2024, notice of proposed rulemaking (NPRM) titled 'Hazardous Materials: Adjusting Registration and Fee Assessment Program' (HM-208J), PHMSA sought to adjust fees upward for the first time in several years. Specifically, it proposed raising the annual fee for small businesses and not-for-profit organizations from $250 to $375, an increase of $125. For larger entities not qualifying as small businesses or nonprofits, the fee would have risen from $2,575 to $3,000, a $425 hike. The NPRM also included minor updates, such as mandating electronic-only payments and clarifying recordkeeping rules for certificates of registration. PHMSA justified these changes as necessary to maintain funding levels for its grants program amid rising costs, citing the need to support first responders in handling hazardous materials incidents.
Reasons for Withdrawal
The withdrawal notice explains that PHMSA is pulling back the proposal to alleviate 'undue economic burdens' on the hazardous materials transportation community. This decision directly references Executive Order 14192, 'Unleashing Prosperity Through Deregulation,' issued by President Trump on February 6, 2025. The order directs federal agencies to minimize unnecessary regulatory burdens on industry and the public. PHMSA notes that stakeholder feedback during the comment period highlighted 'uncertainty' regarding the fee increases, reinforcing the need to avoid additional costs.
Furthermore, PHMSA determined that the fee hikes were not essential for sustaining its programs. The agency stated, 'PHMSA has determined that a fee increase is not necessary to maintain the level of funding needed to carry out the mission of its grants program.' This assessment ensures continued support for emergency response activities without imposing new financial strains. Key players in this process include PHMSA Administrator Paul J. Roberti, who signed the withdrawal, and the broader Department of Transportation under which PHMSA operates. Industry groups, such as transporters and chemical manufacturers, likely influenced the outcome through public comments, though the notice does not detail specific submissions.
Related Legal and Policy Context
The registration program operates under authority from 49 U.S.C. 5108, which mandates fees to cover the costs of hazardous materials safety initiatives. Past adjustments, such as those in 2010 and earlier, have followed similar rulemaking processes, often balancing fiscal needs with economic impacts. For instance, a 2000 rulemaking established tiered fees based on business size, recognizing the disproportionate burden on smaller entities.
Executive Order 14192 builds on prior deregulation efforts, such as those under Executive Order 13771 from 2017, which required agencies to offset new regulations by repealing others. Perspectives on this withdrawal vary. Industry advocates may view it as a welcome relief, reducing operational costs in a sector facing supply chain challenges and inflation. Conversely, safety organizations and first responders might express concern that stagnant fees could eventually strain grant funding if costs rise, potentially affecting training quality. PHMSA's notice does not endorse any viewpoint but acknowledges the balance between economic relief and program sustainability.
Separate Ongoing Initiatives
While withdrawing the fee increase, PHMSA is advancing two elements from the original NPRM through independent rulemakings. On July 1, 2025, the agency published 'Hazardous Materials: Modernizing Payments To and From America's Bank Account (HM-268H)' under docket PHMSA-2025-0096, proposing electronic-only registration payments to streamline processes and reduce administrative overhead. A companion NPRM, 'Hazardous Materials: Reducing Recordkeeping Requirements for Domestic Carriers (HM-268I)' under docket PHMSA-2025-0097, seeks to update recordkeeping by allowing electronic or paper certificates and removing outdated applicability dates.
These actions reflect PHMSA's focus on efficiency without fee changes. The notice confirms no public comments specifically opposed these procedural updates, facilitating their progression.
Implications and Future Considerations
This withdrawal maintains the status quo for registration fees, potentially benefiting over 40,000 registrants by avoiding immediate cost increases. Short-term implications include continued stability for emergency response funding, while long-term effects could involve reassessing fee structures if inflation erodes program resources. Different perspectives highlight a tension: deregulation supporters praise the move for fostering economic growth, while safety experts emphasize the need for adequate funding to prevent incidents like chemical spills or transportation accidents.
Looking ahead, PHMSA may monitor program funding and revisit fees if necessary, guided by statutory requirements and executive directives. Ongoing debates could center on balancing deregulation with safety imperatives, especially as hazardous materials transportation evolves with new technologies and global supply chains. Stakeholders, including policymakers and industry, will likely watch for future proposals that address these dynamics without imposing undue burdens.