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[Federal Register: January 8, 1997 (Volume 62, Number 5)]

[Rules and Regulations]               

[Page 1207-1217]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]





[[Page 1207]]



_______________________________________________________________________



Part IV











Department of Transportation











_______________________________________________________________________







Research and Special Programs Administration







_______________________________________________________________________







49 CFR Part 171, et al.







Hazardous Materials in Intrastate Commerce and Improvements to 

Hazardous Materials Identification Systems; Final Rules





[[Page 1208]]







DEPARTMENT OF TRANSPORTATION



Research and Special Programs Administration



49 CFR Parts 171, 173 and 180



[Docket HM-200; Amdt. Nos. 171-150, 173-259, and 180-11]

RIN 2137-AB37



 

Hazardous Materials in Intrastate Commerce



AGENCY: Research and Special Programs Administration (RSPA), DOT.



ACTION: Final rule.



-----------------------------------------------------------------------



SUMMARY: This final rule requires that all intrastate shippers and 

carriers comply with the Hazardous Materials Regulations (HMR) with 

certain exceptions. This action is necessary to comply with amendments 

to the Federal hazardous materials transportation law mandating that 

DOT regulate the transportation of hazardous materials in intrastate 

commerce. The intended effect of this rule is to raise the level of 

safety in the transportation of hazardous materials by applying a 

uniform system of safety regulations to all hazardous materials 

transported in commerce throughout the United States.



DATES: Effective date: October 1, 1997.

    Permissive compliance date: Compliance with the requirements as 

adopted herein is authorized as of April 8, 1997. This time period 

provides sufficient time for receipt and resolution of any petitions 

for reconsideration received on this final rule.



FOR FURTHER INFORMATION CONTACT: Diane LaValle or Deborah Boothe, (202) 

366-8553, Office of Hazardous Materials Standards, RSPA, 400 Seventh 

Street, SW., Washington, DC 20590-0001.



SUPPLEMENTARY INFORMATION:



I. Background



    Currently, the Hazardous Materials Regulations (HMR; 49 CFR parts 

171-180) do not apply to highway transportation by intrastate carriers, 

except for the transportation of hazardous substances, hazardous 

wastes, marine pollutants, and flammable cryogenic liquids in portable 

tanks and cargo tanks. The HMR apply to all hazardous materials 

transported in commerce by rail car, aircraft, or vessel. A July 1986 

report by the Office of Technology Assessment (OTA), then an agency of 

Congress, entitled ``Transportation of Hazardous Materials,'' 

highlighted the need for national uniformity in the regulation of 

hazardous materials transportation and packaging requirements.

    In response to the OTA report, RSPA published an advance notice of 

proposed rulemaking in the Federal Register on June 29, 1987 [52 FR 

24195] which requested comments on extending the application of the HMR 

to all intrastate transportation in commerce as a means of promoting 

national uniformity and transportation safety. In 1990, the Federal 

hazardous material transportation law was amended to require the 

Secretary to regulate hazardous materials transportation in intrastate 

commerce. 49 U.S.C. 5103(b)(1)

    RSPA proposed to extend the application of the HMR to all 

intrastate transportation of hazardous materials in commerce in a 

notice of proposed rulemaking (NPRM) published on July 9, 1993 [58 FR 

36920]. A correction to the NPRM was published on July 15, 1993 [58 FR 

38111]. The NPRM requested comments on the need for, and possible 

consequences of, extending the application of the HMR to all intrastate 

transportation of hazardous materials in commerce.

    More than 200 comments were received in response to the NPRM. While 

most of the commenters supported the idea of uniformity, a significant 

number requested relief from the application of the HMR (or portions 

thereof). Among the concerns expressed were the appropriateness of 

regulating: (1) Small quantities of hazardous materials that are used 

incidental to a primary business that is other than transportation; and 

(2) the operation of small cargo tank motor vehicles.

    The major objections raised were that: (1) uniform treatment of all 

intrastate hazmat shippers and carriers under the HMR would be 

extremely detrimental to rural and small businesses, including 

petroleum marketers and farmers; (2) although all States have adopted 

the HMR, certain States have deviated from the regulations, 

particularly regarding highway shipments, e.g., by ``grandfathering'' 

non-DOT specification cargo tanks, or exempting farm operations; and 

(3) regulation of user quantities of hazardous materials transported 

incidental to the primary responsibility of the carrier (i.e., 

materials of trade) could create burdens for these carriers.

    In response to comments to the NPRM, RSPA published a supplemental 

notice of proposed rulemaking (SNPRM) in the Federal Register on March 

20, 1996 [61 FR 11484]. The three proposals addressed in the SNPRM were 

exceptions from the HMR for: (1) ``Materials of trade,'' (2) non-

specification small cargo tank motor vehicles (i.e., less than 13,250 

liters (3,500 gallon) capacity) used exclusively in intrastate 

transportation of flammable liquid petroleum products, and (3) certain 

requirements addressing use of registered inspectors for these small 

cargo tank motor vehicles used to transport flammable liquid petroleum 

fuels.



II. Summary of Regulatory Amendments



    RSPA received more than 1200 comments on the SNPRM from a variety 

of organizations, including trade associations, petroleum marketers, 

public service commissions, state police, farmers and farm co-

operatives, water and power companies, members of Congress, State and 

Federal government agencies, waste haulers and fertilizer associations.



A. Extension of the HMR to Intrastate Transportation



    Commenters in support of the expansion of the HMR to intrastate 

carriage stated that deviations from a uniform domestic scheme should 

be minimized. One commenter stated that the report by OTA entitled 

``Transportation of Hazardous Materials'' was right on target by 

identifying the need for uniformity in transportation of hazardous 

materials, and that the action taken by RSPA in response to the report 

and the Federal hazardous materials transportation law was correct.

    Petroleum marketers and the agricultural community, many of whom 

are small businesses, opposed extending the HMR to intrastate movement 

of hazardous materials. Some of these commenters stated that the 

additional requirements, such as for shipping papers and placarding, 

would provide little or no benefit to public safety when compared to 

the increased cost of regulation. These commenters urged RSPA to issue 

an exception from the regulations that recognizes the needs of 

agricultural producers by waiving the application of certain 

requirements of the HMR. Other commenters expressed concerns about the 

requirements for specification cargo tanks used to transport hazardous 

materials (other than combustible liquids) and stated that the cost of 

retrofitting non-specification cargo tanks would be prohibitive.

    As required by the Federal hazardous materials transportation law, 

this rule extends the application of the HMR to intrastate 

transportation of hazardous materials by highway and provides 

exceptions for: (1) Materials of trade transported by interstate and 

intrastate motor carriers; (2) certain non-



[[Page 1209]]



specification packagings in intrastate transportation; (3) inspectors 

of small cargo tank motor vehicles, used for flammable liquid petroleum 

fuels in interstate and intrastate transportation; and (4) certain 

agricultural products transported in intrastate commerce under 

specified conditions. Section 171.1 is revised to extend the scope of 

the HMR to intrastate transportation of hazardous materials. In 

addition Sec. 171.8 is reorganized for clarity and therefore 

republished in its entirety for the convenience of the reader.



B. Exceptions for Materials of Trade



    Prompted by comments submitted to the NPRM and petitions for 

rulemaking, RSPA proposed in the SNPRM to limit regulatory requirements 

for the transportation of certain hazardous materials used as materials 

of trade. Factors leading to RSPA's determination included: (1) The 

relatively small quantity of these hazardous materials that are 

normally carried on a motor vehicle; (2) the general reliance on a DOT 

specification or U.N. standard packaging (or components thereof) as the 

principal packaging; and (3) a motor vehicle operator's familiarity 

with the hazardous material being transported.

    Materials of trade include, subject to certain limitations, 

hazardous materials carried on a motor vehicle for protecting the 

health and safety of the motor vehicle operator (such as insect 

repellant or self-contained breathing apparatus) or for supporting the 

operation or maintenance of a motor vehicle (such as a spare battery or 

engine starting fluid). They also include certain hazardous materials 

carried by a private motor carrier engaged in a principal business 

which is other than transportation, such as lawn care, plumbing, 

welding, door-to-door sale of consumer goods, and farm operations.

    In proposed Sec. 173.6, RSPA identified types and quantities of 

hazardous materials for which exceptions would be provided. Specific 

limitations (such as maximum gross weight of materials of trade that 

may be carried on a motor vehicle) and safety provisions (such as 

packaging and hazard communication) were proposed to strike a balance 

between safety and the impact of full application of the HMR.

    Most commenters to the SNPRM supported the materials of trade 

proposal, and offered many suggestions for its modification or 

expansion.

1. Definition of material of trade (Sec. 171.8)

    One commenter requested that the first two criteria (carried for 

the purpose of protecting the health and safety of the motor vehicle 

operator or passengers; and carried for the purpose of supporting the 

operation or maintenance of the motor vehicle) should be expanded to 

all modes allowing materials of trade to be carried by air or water. 

The same commenter also requested that the third criteria (carried by a 

private carrier in direct support of a principal business that is other 

than transportation) should be limited to materials used that day which 

would limit the scope of the materials of trade exception. Two 

commenters requested that RSPA expand the third criteria of the 

definition from private motor carrier to include use of a contract 

carrier dedicated to a private carrier (i.e., an exclusive use contract 

carrier). In addition, some commenters noted that the materials of 

trade definition would exclude maintenance vehicles such as tow trucks 

and railroad motor vehicles that carry materials of trade for the 

purpose of supporting the operation or maintenance of another motor 

vehicle or a rail car.

    RSPA believes that the materials of trade exception should apply 

only to highway transportation, as proposed. The HMR already provide 

modal exceptions for certain hazardous materials used as carrier's 

equipment and supplies (e.g, Sec. 175.10). This final rule is intended 

to provide similar relief for highway transportation. The second 

criteria, however, is expanded to include maintenance vehicles that 

carry materials of trade for the purpose of supporting the operation or 

maintenance of motor vehicles rather than ``the motor vehicle on which 

it is carried'' as was originally proposed. Under the third criteria, 

any private carrier, including a railroad operating its motor vehicles 

in maintenance-of-way service, is eligible for the materials of trade 

exception. RSPA did not intend to limit the materials of trade 

exception to materials used the same day. Rather, the primary factor is 

that the hazardous material is used incidental to the private carrier's 

principal business.

2. Limitation of Materials of Trade Exception to Certain Classes of 

Hazardous Materials (Sec. 173.6(a))

    Commenters requested inclusion of the following additional classes 

and divisions of hazardous materials within the materials of trade 

exception:



Test kits containing Division 4.3 materials;

Power cartridge devices, Division 1.4;

Division 1.4S igniters used by railroads for welding rail;

Division 1.4G railway torpedoes;

Division 6.2 infectious substances (home health care);

Display fireworks; and

Chlorine gas in 20-pound cylinders.



    RSPA agrees that test kits containing small amounts of Division 4.3 

materials may be safely transported as materials of trade. These types 

of test kits are frequently transported and used by electric utilities 

and used oil handlers and contain very small quantities of a Division 

4.3 material. Therefore, Sec. 173.6 includes Division 4.3 materials 

when transported in quantities that correspond to the small quantity 

exceptions in Sec. 173.4. A power device cartridge (used to project 

fastening devices) which is classed in Division 1.4 Compatibility Group 

S (1.4S) may be reclassed as ORM-D if transported in accordance with 

the requirements of Sec. 173.63(b). A power cartridge device that is 

reclassed as ORM-D meets the criteria for a material of trade.

    The level of hazard posed by other materials suggested by 

commenters is not consistent with the intent of the materials of trade 

exception. For that reason, explosives such as igniters used for 

welding rail, railway torpedoes, Division 6.2 materials (infectious 

substances and regulated medical waste), Division 2.3 materials (such 

as chlorine gas, a poison by inhalation material in Hazard Zone B) and 

display fireworks are not included in the materials of trade exception.

3. Gross Mass or Capacity of Packagings for Materials of Trade 

(Sec. 173.6(a))

    Some commenters requested that larger container capacities be 

authorized for materials of trade, such as a permanently attached tanks 

having a capacity not greater than 400 gallons for dilute mixtures of 

hazardous materials.

    Commenters expressed concern that, while a small container filled 

with a concentrated hazardous material may meet the criteria for 

material of trade, when the same amount is transported in an aqueous 

solution in a bulk packaging, it no longer qualifies for the material 

of trade exception. An example is chlorpyrifos, a pesticide, which has 

a reportable quantity of one pound. As a concentrate, chlorpyrifos 

would qualify as a material of trade. However, due to its one-pound 

reportable quantity, when diluted with water in a 300-gallon capacity 

cargo tank or portable tank to the 1 or 2 percent concentration in 

which the product is normally applied, the tank will contain a 

reportable quantity and would be a hazardous substance subject to the 

HMR as a Class 9 material. Notwithstanding the fact that the same 

amount of chlorpyrifos (in concentrated form) would be excepted from 

most regulatory requirements when transported in conformance with



[[Page 1210]]



Sec. 173.6, under the proposal a tank of diluted material would not be 

subject to regulatory relief. In some cases these solutions may be 

diluted to such an extent that they are no longer subject to the HMR. 

RSPA agrees that the increased volume that comes with dilution poses no 

additional threat to the environment. Accordingly, 

Sec. 173.6(a)(1)(iii) authorizes a dilute mixture (up to 2 percent 

concentration) in a non-specification bulk packaging having a capacity 

equal to or less than 1500 liters (400 gallons) when properly classed 

as a Class 9 liquid. A material of trade is authorized in a packaging 

having a maximum capacity of 30 liters (8 gallons). When the 30 liter 

quantity is diluted with 1500 liters of water, it produces a 2 percent 

concentration mixture. A condition specified in Sec. 173.6(c)(2) 

requires that the bulk packaging (capacity greater than 119 gallons) 

containing the diluted material of trade must be marked with the four-

digit identification number marking (as prescribed by Sec. 172.332) to 

be authorized for transportation as a material of trade.

4. Materials Excluded From the Materials of Trade Exception 

(Sec. 173.6(a)(4))

    A few commenters stated that hazardous materials associated with 

the identification numbers UN2924 and UN2925 should not be excluded 

from the materials of trade exception. These commenters contended that 

other dual hazard materials are authorized under proposed 

Sec. 173.6(a)(1), and use of a generic proper shipping name for such 

dual hazard materials is not reason to exclude them from the materials 

of trade exception. Commenters also stated that the list of prohibited 

hazardous materials associated with certain identification numbers was 

recently removed from the small quantity exception in Sec. 173.4. RSPA 

agrees and the identification numbers proposed for inclusion in 

paragraph (a)(4) are not adopted.

    Commenters requested clarification on the inclusion of hazardous 

wastes as materials of trade. RSPA confirms that hazardous wastes are 

not included in the materials of trade exception. Inclusion of 

hazardous wastes as materials of trade would conflict with other 

requirements such as those pertaining to manifests (40 CFR Part 262 and 

49 CFR 171.3 and 172.205).

5. Packaging for Materials of Trade (Sec. 173.6(b))

    Many commenters requested clarification of the packaging 

requirements for materials of trade. Some commenters stated that it 

would not be possible to determine whether a non-tested package has 

equal or greater strength and integrity as one that meets DOT's 

performance standards. Another commenter stated that the packaging 

requirements for materials that are not manufactured should be 

clarified. No alternatives were suggested by commenters.

    By requiring the manufacturer's original packaging, RSPA is 

effectively requiring DOT-authorized packagings or their equivalent for 

materials of trade. A packaging that has equal or greater strength and 

integrity should be capable of passing the performance tests required 

for a packaging for that particular hazardous material. As with all 

hazardous materials packagings, the packaging must be compatible with 

the lading. If the manufacturer's original packaging is not available, 

shippers may refer to the HMR to determine what type of packaging is 

authorized or required and then make a determination as to what 

packaging may be used for that material of trade. If doubt remains, 

shippers and carriers are advised to use a specification packaging.

    Commenters also requested an exception from the packaging 

requirements for salespersons to transport hazardous materials in an 

open box. An exception is already provided from the outer packaging 

requirements for receptacles that are secured against movement in 

cages, carts, bins, boxes or compartments in Sec. 173.6(b)(3). 

Therefore, a salesperson may transport an open box containing inner 

receptacles as long as they are secured against movement.

    One commenter stated that requirements for packaging gasoline 

should reference the Occupational Safety and Health Administration's 

(OSHA) regulations applicable to construction activities (29 CFR 

1926.152). These OSHA requirements address storage and use of gasoline 

at construction sites rather than transportation. The OSHA standard 

that addresses safety cans for gasoline is 29 CFR 1910.106 which is 

referenced as an option for packaging gasoline in Sec. 173.6(b)(4).

    One commenter stated that RSPA should require that all cylinders 

have the gauge removed and a protective cap in place for cylinders 

capable of receiving a cap. Another commenter asked whether manifolding 

is authorized for compressed gas cylinders. RSPA believes that it is 

unnecessary for cylinders to have the gauges removed and protective 

caps in place. Section 173.6(b)(1) requires all materials of trade 

packages to be securely closed, secured against movement, and protected 

against damage. Accordingly, all valves must be closed on all 

cylinders, but manifolding of cylinders charged with gases that are 

materials of trade is not prohibited.

6. Hazard Communication (Sec. 173.6(c))

    Several large shipping and manufacturing companies requested that 

the materials of trade marking requirement include the manufacturer's 

name and telephone number, precautionary/warning statements, trade name 

and associated hazard, or at least the proper shipping name and 

identification number.

    RSPA is satisfied that marking each package with an indication of 

the hazardous material it contains (with the addition of marking ``RQ'' 

on a package containing a reportable quantity of a hazardous substance) 

is adequate for a material of trade. In case of a spill, carriers need 

to know if the spill needs to be reported to the National Response 

Center, thus the requirement for the ``RQ'' marking. Additional marking 

requirements would be of small value due to the quantity limits of most 

hazardous materials allowed under the materials of trade exception, and 

in view of the fact that a cylinder containing compressed gas must bear 

the required DOT hazard warning label. A provision is added in 

Sec. 173.6(c)(1) to require a packaging to be marked ``RQ'' when it 

contains a hazardous substance in a reportable quantity.

    One commenter stated that vehicle operators should be made aware of 

appropriate emergency action. A few of the commenters believe that 

hazardous materials require more than a passing knowledge that they 

exist to transport them safely. One commenter stated that carriers 

should still be required to provide training for their employees.

    One purpose of the materials of trade exception is to provide 

appropriate relief to private carriers transporting small quantities of 

hazardous materials. These private carriers generally transport the 

same types of materials repeatedly. Through experience, they gain a 

basic knowledge of the hazardous material being transported. RSPA does 

not believe these types and quantities of hazardous materials warrant 

more restrictive regulation than what was proposed other than the 

retention of the ``RQ'' marking requirement, which has been in effect 

since 1980.

7. Aggregate gross weight of materials of trade on a vehicle 

(Sec. 173.6(d))

    Many commenters wanted the maximum gross weight allowed on the 

vehicle raised from 150 kg (330



[[Page 1211]]



pounds), especially when transporting compressed gas cylinders. They 

stated that cylinders can weigh up to 200 pounds each, and various 

commenters suggested raising the weight restriction to levels between 

500 and 1000 pounds. RSPA agrees that steel cylinders could easily 

exceed the maximum gross weight for materials of trade on a transport 

vehicle. Paragraph (d) allows a maximum gross weight of 200 kg (440 

pounds) which would typically accommodate two cylinders of compressed 

gas, each having a gross weight of 100 kg (220 pounds) as limited by 

Sec. 173.6(a)(2).



C. Exceptions for Certain Non-Specification Packagings Used in 

Intrastate Transportation (Sec. 173.8)



    The proposals in Sec. 173.8 generated numerous comments both in 

support of the proposals and in opposition to the exceptions proposed. 

Comments in support of the proposals were generally submitted by 

petroleum marketer associations and individual marketers. Comments 

opposed to the proposals were submitted by State agencies, chemical 

manufacturers, interstate motor carrier associations, and the National 

Transportation Safety Board (NTSB).

    Some commenters, such as the NTSB, oppose any use in hazardous 

materials service (other than for combustible liquids) of any non-

specification cargo tank past the three year transition provision 

proposed in the SNPRM. Commenters, including State agencies, stated 

that an authorization to allow the continued use of non-specification 

cargo tanks beyond the three year transition period will continue to 

place the public at risk, by allowing substandard levels of safety. 

Commenters believe that the level of potential hazard presented by a 

cargo tank motor vehicle of less than 3,500 gallons is comparable to 

risks presented by larger cargo tanks and that the fact that these 

cargo tank motor vehicles operate within a single State does not 

diminish the risk. The Hazardous Materials Advisory Council stated that 

deviations from a uniform domestic regulatory scheme should be 

minimized. The State Police of Idaho described a scenario involving a 

small cargo tank motor vehicle that resulted in a major hazardous 

materials incident and forest fire. As a result of this incident, Idaho 

implemented a complete statewide inspection program on similar type 

motor vehicles. In support of their opposition to the proposal in this 

section the Idaho State Police stated:



    The result of this incident caused us to complete a statewide 

inspection effort on all similar type vehicles. We were alarmed at 

what we found. Several tanks of the same size as the one involved 

with the fire were found to have the same type of leaks, going 

directly on the exhaust system under the tank. Other violations 

noted included domes with missing seals, inspections that were many 

years expired, many drivers with no hazardous materials training at 

all, and much of the equipment in disrepair. We found that in many 

cases the people operating this type of tankers had just bought the 

business and started hauling gasoline * * *.

    * * * Yet we found a huge majority of this type of tankers that 

were literally bombs waiting to go off. We believe this is not a 

problem unique to Idaho, and it is representative of this type of 

tankers across the nation.

    There are many reasons for the poor condition of this type of 

tankers. They typically travel state and county roads. They rarely, 

if ever travel through ports of entry or weigh stations and are 

almost never inspected. Yet, this type of vehicle in a poor state of 

repair present the greatest danger to safety when compared to large 

semi-tanker type units.

    Small ``Mom and Pop'' tanks load and unload right next to homes, 

schools, hospitals and businesses of all kinds and sizes. They are 

close to large numbers of people as they travel around loading and 

unloading. Yet the drivers/owners/operators have the least training 

and the poorest equipment.



    Comments in support of the proposed exceptions provided in this 

section state that the proposal is a good first step in reducing the 

regulatory burdens on the small business petroleum marketer. Commenters 

believe that States should be allowed to provide exceptions for 

businesses within their State. They stated that the safety record of 

these small cargo tank motor vehicles is very good. They also state 

that it would be extremely burdensome to totally replace the fleet of 

non-specification cargo tanks with specification cargo tanks, without 

quantifiable data that demonstrate significant increases in safety.

    RSPA believes that the exceptions provided in Sec. 173.8 are 

responsive to concerns about the economic and regulatory impacts on 

small businesses that currently operate non-specification small cargo 

tanks. RSPA also believes that the conditions prescribed in this 

section provide for an acceptable level of safety. As provided in this 

final rule, a small non-specification cargo tank motor vehicle may only 

be operated by an intrastate motor carrier of flammable liquid 

petroleum products in a State that allows its use and it must be 

operated in conformance with the requirements of that State. In 

addition, after June 30, 2000, the tank would have to meet the Part 180 

requirements (except for Sec. 180.405(g)) in the same manner as 

required for DOT MC 306 cargo tank motor vehicles. Since the exception 

for continued use of non-specification cargo tanks applies only to 

those in operation within a State prior to July 1, 1998, no additional 

non-specification cargo tanks may be placed in service after that date. 

Therefore, as the non-specification cargo tanks are replaced, they 

would be replaced with cargo tanks meeting the specification 

requirements of the HMR.

    The Petroleum Marketers Association of America (PMAA) requested 

that RSPA extend the date that a non-specification cargo tank may be 

authorized by a state statute or regulation. They requested an 

additional two years, until July 1, 1998, so that state legislatures 

would be able to provide such exceptions prior to implementation of 

these regulations. As requested, the dates within this section have 

been revised to provide an additional two years for States to 

incorporate any additional exceptions in their State laws or 

regulations. Additionally, a three year transition was intended for 

bulk packagings under Sec. 173.8 (a) and (d)(6); therefore, the dates 

referenced in these paragraphs have been changed to read ``June 30, 

2000.''

    PMAA also asked that RSPA adopt a ``truck by truck interpretation'' 

of what constitutes an ``intrastate motor carrier,'' because it 

believes that a company should not be considered an interstate carrier 

of hazardous materials when its hazardous materials vehicles never 

leave its ``home'' State, but other vehicles used by the carrier 

transport non-hazardous materials across State lines. In addition, PMAA 

asked that ``intrastate'' transportation be interpreted to include 

movements that are no more than 100 miles outside the carrier's 

``home'' State, because one delivery out of State ``to a person who 

would otherwise never receive any gasoline or diesel fuel * * * will 

cause all of the other trucks in the fleet to be subject to the federal 

HMR.''

    In essence, PMAA is asking RSPA to create new exceptions from 

requirements in the HMR that have, for many years, been applicable to 

all interstate motor carriers. If RSPA were to adopt PMAA's request, 

regarding movements up to 100 miles, an adjacent State would be 

compelled to accept exceptions that apply in a carrier's ``home'' State 

even if those exceptions had not been adopted in the adjacent State. 

RSPA has consistently interpreted ``interstate motor carrier'' as any 

carrier that, in the course of its business, travels between States, or 

between a State and a foreign country, or between two points in a 

single State through another State or a foreign country. For this 

reason,



[[Page 1212]]



RSPA believes that the proper meaning of the term ``intrastate 

commerce,'' as used in 49 U.S.C. 5103(b)(1) and the HMR, includes only 

those carriers who transport property or persons solely within the 

boundaries of a single State.

    One commenter requested that the capacity of a cargo tank motor 

vehicle be revised to read ``3,500 gallons or less'' rather than ``less 

than 3,500 gallons.'' RSPA is not adopting this request. Limiting the 

capacity of these cargo tanks to ``less than 3,500 gallons'' is 

consistent with the registration requirements in Sec. 107.601.

    The California Highway Patrol (CHP) stated that the proposed volume 

limitations are inadequate for gasoline used to refuel other vehicles 

and equipment. According to CHP, in the State of California currently 

there are thousands of tanks smaller than 119 gallons used to transport 

gasoline as cargo. These tanks are permanently secured to transport 

vehicles and are protected from damage or leakage in the event of a 

rollover. CHP states that these tanks provide farm, timber and 

construction industries with a practical, safe and economical means of 

dispensing gasoline for equipment used on job sites. Currently, these 

packagings are not considered cargo tanks, since by definition a cargo 

tank is a bulk packaging (i.e., has a capacity greater than 119 

gallons). Since the small 119-gallon tanks are not cargo tanks they are 

not covered by the exceptions provided in this section. RSPA has 

determined that the exception in proposed Sec. 173.8 for small ``cargo 

tanks'' used to transport flammable liquid petroleum products should be 

equally applicable to non-bulk metal permanently secured tanks that are 

authorized by the State in which they are transported. Therefore, a 

provision is added in paragraph (c) to authorize non-bulk tanks, that 

are permanently mounted and protected against leakage or damage in the 

event of a turnover, for transportation of flammable liquid petroleum 

products. As such, after June 30, 2000, these non-bulk tanks would be 

required to meet the part 180 inspection and testing requirements 

(except Sec. 180.405(g) which addresses manhole assemblies) as if they 

were MC 306 cargo tank motor vehicles. Packagings that cannot meet the 

part 180 requirements must be removed from hazardous materials service 

by the end of the three year transition period, consistent with the 

transition period for other non-specification bulk packagings 

authorized under Sec. 173.8 (b) and (c).

    The Petroleum Marketers of Iowa (PMI) requested that RSPA delay 

publication of this final rule as it relates to the hydrostatic or 

pressure testing of cargo tanks used in intrastate transportation. PMI 

states that they are in the process of requesting that the Iowa State 

University Center for Nondestructive Testing conduct a review and study 

of the testing of these cargo tanks. RSPA is not delaying publication 

of this final rule as requested by PMI because any proposal for 

alternative non-destructive testing procedures for cargo tanks would be 

beyond the scope of this rulemaking proceeding. In addition, a three-

year transition period is being provided for application of the testing 

and inspection requirements of Part 180 to intrastate carriers. This 

should be sufficient time for the submission and handling of a well 

supported petition for rulemaking on the subject. Adoption of 

alternative or substitute testing procedures for the currently required 

hydrostatic and pressure testing requirements for cargo tanks could 

have a substantial effect on the manner of determining the continuing 

qualification and integrity of all cargo tanks, specification and non-

specification alike. RSPA has encouraged PMI to consult with 

potentially affected parties, such as the Truck Trailer Manufacturers 

Association, National Tank Truck Carriers, Inc., the Federal Highway 

Administration's Office of Motor Carrier Safety, as well as RSPA, in 

regard to the methodologies to be employed in such a study.

    Other commenters requested an expansion of the exception to include 

products such as petroleum crude oil, and natural gas liquids and 

condensates. Petroleum crude oil and natural gas liquids are flammable 

liquid petroleum products and, as such, are already afforded the 

exception. RSPA is clarifying that although all flammable liquid 

petroleum products are included in the exception in Sec. 173.8 (b) and 

(c), liquefied petroleum gases are not. The HMR currently provide for 

the use in intrastate commerce of certain non-specification cargo tanks 

for propane, see 173.315(k). RSPA does not believe that an expansion of 

the materials covered by the exceptions provided in this section is 

necessary or warranted.

    Based on the foregoing and the changes described above, Sec. 173.8 

is otherwise adopted as proposed.



D. Exception for use of a Registered Inspector



    RSPA received several comments regarding the proposed exception in 

Sec. 180.409 that allows a person to perform an annual external visual 

inspection and leakage test on small cargo tank motor vehicles used 

exclusively for flammable liquid petroleum fuels without being a 

registered inspector. Commenters to the SNPRM disagreed over this 

exception.

    Commenters who opposed the exception stated that the use of 

substandard cargo tanks to transport hazardous materials over public 

highways would reduce safety. One commenter stated that registered 

inspector test costs were nominal, and that initially over 90% of all 

3500-gallon tanks required repairs to pass the tests when such tests 

became mandatory under the part 180 requirements. After five years of 

annual testing, only 20-25% of tanks required repairs to pass the 

tests. Other commenters opposed to the proposal stated that the current 

requirement that inspectors be registered should be retained. They also 

believe that the training and qualifications of persons performing 

inspections, who are not registered, would not be adequate. The Idaho 

State Police stated: ``Our previous first hand observations and 

experience indicate this absolutely will not work. Our inspections 

revealed all the tank defects that would have been found had the tanks 

been inspected. Several owners told us they had checked their tanks and 

did not see anything wrong with them. Many did not even know how to 

check internal valves for correct operation.''

    Commenters in support of the exception stated that it would provide 

``valuable relief to industry.'' They noted that using a registered 

inspector resulted in time away from their business to travel to a 

registered inspector site and financial hardship. A few commenters 

requested elimination of the annual leak test and the 5-year 

hydrostatic test altogether, and that RSPA should require a monthly 

visual inspection to be performed by the owner, including recordkeeping 

requirements. RSPA has also been asked by the Federal Highway 

Administration to clarify that the exception applies only to persons 

who perform visual inspection and leakage tests on their own cargo tank 

motor vehicles.

    Prior to January 1, 1991, the HMR's inspection and periodic retest 

requirements did not apply to cargo tank motor vehicles with a capacity 

of 3,000 gallons or less used exclusively in flammable liquid service. 

This exception was fully evaluated and ultimately removed in a final 

rule published June 12, 1989 under Docket HM-183, [54 FR 24982]. RSPA 

determined that periodic tests were necessary for these small cargo 

tanks to ensure that product retention integrity is maintained. No new 

data was presented



[[Page 1213]]



for consideration sufficient to support a revision of this requirement.

    After consideration of all comments, RSPA believes that the 

regulatory relief requested by small businesses, is not from the 

registration procedure itself, but is relief from the educational and 

years of experience requirements that prevent more persons who wish to 

perform these tests from registering. In addition, RSPA is clarifying 

that the exception from registration provided in Sec. 180.409(c) for 

inspectors of non-bulk permanently secured tanks for flammable liquid 

petroleum fuel applies only to motor carriers who perform the annual 

visual inspection and leakage test on motor vehicles that they own or 

control.

    In this final rule RSPA is providing exceptions from the education 

and years of experience requirements in the definition of ``Registered 

Inspector'' in Sec. 171.8 for inspectors of small cargo tank motor 

vehicles carrying flammable liquid petroleum fuels. These inspectors 

must still register under Part 107 of this chapter. RSPA is also 

clarifying that this exception applies only if the person performs the 

annual external visual inspection and leakage tests on cargo tanks that 

they own or operate. In addition, inspectors of permanently mounted 

non-bulk tanks authorized under Sec. 173.8(c) are totally excepted from 

the registration requirements. Motor carriers should be aware that the 

other tests required for these permanently mounted tanks by 

Sec. 180.407(c), e.g., the periodic hydrostatic test, must be performed 

by a registered inspector. Cargo tank repair, modification, stretching 

and rebarreling are also required to be performed by a registered 

facility.



E. Exceptions for Agricultural Operations



    RSPA received more than 500 comments from farmers and agricultural 

supply businesses who expressed concern that a final rule would 

prohibit states from granting exceptions for farmers. Some of these 

commenters agreed that, although uniform regulations promote consistent 

enforcement of the HMR, the nature of agriculture and its importance to 

their state's economy demands that farmers be granted some reasonable 

relief from the impact of full application of the HMR. Commenters 

alleged that the loss of intrastate exemptions would undoubtedly have a 

major economic impact on the agricultural industry. They also claimed 

that costs would be approximately $2,000 to $3,500 per year per farm. 

They strongly encouraged RSPA to develop an exception for agricultural 

movements consistent with currently authorized state exceptions. 

Specific requests included exceptions for: (1) Agricultural products in 

movements of up to 5,000 pounds of a single class of hazardous material 

on a transport vehicle; (2) any quantity of agricultural products when 

diluted in water in preparation for field application; (3) ammonium 

nitrate fertilizer when transported in fertilizer application equipment 

in quantities of less than 468 cubic feet; and (4) diesel fuel and 

gasoline when transported in metal cargo tanks of up to 300 gallons 

capacity.

    In a conference report (H.R. Rep. No. 785, 104th Cong., 2d Sess. 67 

(1996)) accompanying the FY 1997 DOT appropriations bill, Congress 

expressed concerns that this rulemaking might increase compliance costs 

to farmers and agribusinesses and encouraged RSPA ``to give serious 

consideration to establishing an agriculture exemption consistent with 

similar exemptions already granted by the department.''

    RSPA believes that confusion exists on the estimates of the burden 

of complying with the HMR. For example, a carrier who routinely 

transports the same hazardous material may use a ``permanent'' shipping 

paper by laminating a document containing the required description of 

the materials and emergency response information. In this circumstance, 

it is not necessary to prepare a new document for each trip. Other 

commenters believe that this final rule will require more farmers to 

obtain a commercial drivers license (CDL) or comply with a different 

level of financial responsibility. Nothing in this final rule will 

require any additional person to obtain a CDL, nor does it eliminate 

any waivers from the CDL authorized by the Federal Highway 

Administration. Other commenters still mistakenly believe that this 

final rule will require compliance with the Federal Motor Carrier 

Safety Regulations (FMCSR; 49 CFR Parts 390-397). For example, the 

Illinois Farm Bureau stated that for those farmers who haul hazardous 

materials, under the proposed regulation, part 391 of the FMCSR would 

be applied to them. As stated the preamble to the SNPRM, RSPA has 

determined that this final rule will not subject additional motor 

carriers, including farmers, to the provisions of the FMCSR. RSPA did 

not propose to and has not subjected any new motor carriers to the 

provisions of the FMCSR. The provisions of Sec. 177.804 remain 

unchanged and do not extend the application of FMCSR requirements to 

motor carriers not currently required to comply with the FMCSR. The 

regulations that address CDL requirements, financial responsibility 

requirements, and drug testing are independent requirements and nothing 

in this final rule impacts their applicability to a motor carrier.

    RSPA agrees that agricultural operations should be recognized (see 

Sec. 173.5 in the present regulations) in those States that have chosen 

to provide exceptions, but not necessarily to the same extent as the 

present state exceptions.

    RSPA is adding definitions for ``agricultural product'' and 

``farmer'' in Sec. 171.8 and is providing exceptions from the 

requirements of Subparts G (Emergency Response Information) and H 

(Training) of Part 172 of this subchapter, in addition to exceptions 

already provided in Sec. 173.5 for transport by farmers when such a 

transportation activity is authorized before July 1, 1998 by the State 

in which the transportation takes place. RSPA believes that the 

exceptions provided in Secs. 173.5 (Agricultural operations), 173.6 

(Materials of trade), and 173.8 (Exceptions for non-specification 

packagings used in intrastate transportation) will provide substantial 

though not total relief to farmers. For example, many small quantities 

of packaged hazardous materials meet the definition of materials of 

trade and may be transported with minimum shipping requirements, such 

as a general marking on the package to communicate hazard warning 

information, and notification to the motor vehicle operator of the 

materials of trade provisions for stowage and securely closing 

packages. Dilute materials (up to 2 percent concentration) in aqueous 

solutions that are properly classed as Class 9 materials will qualify 

for the materials of trade exception when in packagings having a 

capacity equal to or less than 1500 liters (400 gallons). In addition, 

flammable liquid petroleum products in intrastate transportation are 

authorized to be transported in small non-specification cargo tanks if 

authorized by the State before July 1, 1998. The other requirements of 

the HMR, including marking and placarding vehicles, hazmat training, 

shipping papers, emergency response information and emergency response 

telephone number requirements, except as stated in Sec. 173.5(a) apply 

to the hazardous materials being transported under this section.

    In addition to the other exceptions provided in this section, RSPA 

is providing an exception, under specified conditions, from the HMR for 

movements of agricultural products, excluding Class 2 materials, that 

are



[[Page 1214]]



moved between fields of a single farm. This exception applies to a 

farmer, who is an intrastate private motor carrier, and who transports 

an agricultural product between fields of his farm over local roads. 

Movement of the agricultural product must conform to the requirements 

of the State in which it is transported and must be specifically 

authorized by current State law or regulation in effect before July 1, 

1998. For the purposes of this section, a local road does not include 

an ``interstate highway.'' RSPA believes that this exception provides 

regulatory relief for farmers without compromising safety.



III. Regulatory Analyses and Notices



A. Executive Order 12866 and DOT Regulatory Policies and Procedures



    This final rule is considered a significant regulatory action under 

section 3(f) of Executive Order 12866 and, therefore, was reviewed by 

the Office of Management and Budget. This final rule is considered 

significant under the Regulatory Policies and Procedures of the 

Department of Transportation (44 FR 11034) due to significant public 

and congressional interest. A regulatory evaluation is available for 

review in the Docket.



B. Executive Order 12612



    This final rule has been analyzed in accordance with the principles 

and criteria contained in Executive Order 12612 (``Federalism''). The 

Federal hazardous materials transportation law (49 U.S.C. 5101-5127) 

contains an express preemption provision that preempts State, local, 

and Indian tribe requirements on certain covered subjects. Covered 

subjects are:

    (i) the designation, description, and classification of hazardous 

material;

    (ii) the packing, repacking, handling, labeling, marking, and 

placarding of hazardous material;

    (iii) the preparation, execution, and use of shipping documents 

pertaining to hazardous material and requirements respecting the 

number, content, and placement of such documents;

    (iv) the written notification, recording, and reporting of the 

unintentional release in transportation of hazardous material; or

    (v) the design, manufacturing, fabrication, marking, maintenance, 

reconditioning, repairing, or testing of a package or container which 

is represented, marked, certified, or sold as qualified for use in the 

transportation of hazardous material.

    This rule concerns the packaging, marking, labeling, placarding and 

description of hazardous materials on shipping papers. This rule 

preempts State, local, or Indian tribe requirements in accordance with 

the standards set forth above.

    Thus, RSPA lacks discretion in this area, and preparation of a 

federalism assessment is not warranted. Title 49 U.S.C. 5125(b)(2) 

provides that if DOT issues a regulation concerning any of the covered 

subjects, DOT must determine and publish in the Federal Register the 

effective date of Federal preemption. That effective date may not be 

earlier than the 90th day following the date of issuance of the final 

rule and not later than two years after the date of issuance. RSPA 

determined that the effective date of Federal preemption for the 

requirements in this rule concerning covered subjects is January 1, 

1998.



C. Regulatory Flexibility Act



    This final rule will affect many small business entities that ship 

or transport hazardous materials, but any adverse economic impact 

should be minimal. Many small entities affected by this final rule will 

receive relief from current regulatory requirements. The regulatory 

evaluation developed in support of this final rule includes a benefit-

cost analysis that favors its adoption, primarily due to the positive 

net benefits that may be realized by small entities.

    RSPA estimates that 8,400 for-hire intrastate carriers that are 

small business entities will be affected by this rule. This is based on 

the best available data indicating there are approximately 420,000 

trucks used in intrastate (208,000) or local (212,000) transportation 

services, and that nationwide statistics on truck use indicate 

approximately 2% of all trucks engaged in for-hire transportation carry 

hazardous materials. RSPA conservatively estimates that each of the 

8,400 affected trucks is owned by a separate entity and that each 

operator is a small business.

    In addition to entities engaged in purely intrastate for-hire 

transportation of hazardous material, this rule applies to motor 

vehicle operators engaged in agriculture, mining, construction, 

manufacturing, wholesale trade, retail trade, utilities, and a broad 

assortment of service industries, including lawn maintenance, plumbing, 

painting and welding. The Associated Builders and Contractors and the 

National Association of Plumbing-Heating-Cooling Contractors cite 

Bureau of Labor Statistics data in Employment and Wages Annual Averages 

1992 that estimate there are 629,779 construction establishments, and 

that 533,455 of these entities employ less than 10 persons. Data from 

the Small Business Administration indicate there are 73,000 plumbing 

companies, 24,000 welding companies, 26,000 lawn care service 

companies, and 31,000 painting companies. For these industries, there 

is no data readily available that distinguishes entities engaged in 

purely intrastate operations. RSPA conservatively estimates 90% of the 

total number do not operate outside their home state.

    The minimal adverse economic impact on small entities is attributed 

to the fact that, because every State has already adopted hazardous 

materials transportation safety regulations, virtually every intrastate 

shipper or carrier of hazardous materials is already subject to 

regulations that are the same as or similar to those in the Federal 

Hazardous Materials Regulations (HMR). Twenty States have adopted the 

HMR in their entirety, and the vast majority of remaining States have 

adopted transportation safety regulations similar to the HMR. Many 

exceptions provided by the latter group of States are being 

incorporated in this final rule, especially with respect to 

agricultural operations (Sec. 173.5), materials of trade exceptions 

(Sec. 173.6), and exceptions for non-specification packagings used in 

intrastate transportation (Sec. 173.8).

    The scope of the materials-of-trade exception is not restricted to 

purely intrastate motor carriers. Thus, RSPA is providing significant 

regulatory relief to small (and many large) entities that currently 

transport hazardous materials by motor vehicle in interstate commerce. 

These small entities now may carry certain hazardous materials in 

alternative packagings that provide equal or greater strength and 

integrity to DOT specification packagings, and the paperwork burden 

associated with preparation and retention of hazardous materials 

shipping papers is completely removed, as is the requirement for 

reporting incidents involving the unintentional release of a hazardous 

material that meets the criteria for a material-of trade. In effect, 

RSPA believes there could be an aggregate net benefit to small entities 

whose transportation of hazardous materials is limited to materials of 

trade.

    Based upon readily available information concerning the size and 

nature of entities likely affected by this final rule, I certify this 

rule will not have a significant economic impact on a substantial 

number of small entities under criteria of the Regulatory Flexibility 

Act.



[[Page 1215]]



D. Paperwork Reduction Act



    Under the Paperwork Reduction Act of 1995, no person is required to 

respond to a collection of information unless it displays a valid OMB 

control number. Information collection requirements in 49 CFR parts 172 

and 177 pertaining to shipping papers are currently approved under OMB 

control number 2137-0039. Information collection requirements contained 

in 49 CFR part 171 pertaining to incident reporting are currently 

approved under OMB control number 2137-0039. Information collection 

requirements pertaining to cargo tank specification requirements, 

including testing, in 49 CFR part 180 are approved under OMB control 

number 2137-0014. Requirements pertaining to marking of bulk containers 

in 49 CFR part 172 are approved under OMB control number 2137-0575. 

RSPA believes that any increase in burden as a result of this final 

rule has been offset by exceptions provided in this and other recent 

final rules. For example: increases in the burden for the preparation 

of shipping papers for intrastate transportation of hazardous materials 

will be offset by the exceptions from shipping paper requirements 

provided for materials of trade; and increased burdens resulting from 

intrastate motor carriers being required to submit incident reports 

have been offset by the elimination of the incident reporting 

requirements for limited quantities (see HM-222B; 61 FR 27166). RSPA 

will submit revised information collection burden estimates as a result 

of this final rule to OMB for approval prior to the compliance dates in 

this rulemaking.



E. Regulations Identifier Number (RIN)



    A regulation identifier number (RIN) is assigned to each regulatory 

action listed in the Unified Agenda of Federal Regulations. The 

Regulatory Information Service Center publishes the Unified Agenda in 

April and October of each year. The RIN number contained in the heading 

of this document can be used to cross-reference this action with the 

Unified Agenda.



List of Subjects



49 CFR Part 171



    Exports, Hazardous materials transportation, Hazardous waste, 

Imports, Incorporation by reference, Reporting and recordkeeping 

requirements.



49 CFR Part 173



    Hazardous materials transportation, Packaging and containers, 

Radioactive materials, Reporting and recordkeeping requirements, 

Uranium.



49 CFR Part 180



    Hazardous materials transportation, Motor carriers, Motor vehicle 

safety, Packaging and containers, Reporting and recordkeeping 

requirements.

    In consideration of the foregoing, 49 CFR parts 171, 173, and 180 

are amended as follows:



PART 171--GENERAL INFORMATION, REGULATIONS, AND DEFINITIONS



    1. The authority citation for part 171 continues to read as 

follows:

    Authority: 49 U.S.C. 5101-5127; 49 CFR 1.53.



    2. Section 171.1 is revised to read as follows:





Sec. 171.1  Purpose and scope.



    (a) This subchapter prescribes requirements of the Department of 

Transportation governing--

    (1) The offering of hazardous materials for transportation and 

transportation of hazardous materials in interstate, intrastate, and 

foreign commerce by rail car, aircraft, motor vehicle, and vessel 

(except as delegated at Sec. 1.46(t) of this title).

    (2) The representation that a hazardous material is present in a 

package, container, rail car, aircraft, motor vehicle, or vessel.

    (3) The manufacture, fabrication, marking, maintenance, 

reconditioning, repairing, or testing of a packaging or container which 

is represented, marked, certified, or sold for use in transportation of 

hazardous materials.

    (4) The use of terms and symbols prescribed in this subchapter for 

the marking, labeling, placarding and description of hazardous 

materials and packagings used in their transport.

    (b) Any person who, under contract with any department, agency, or 

instrumentality of the executive, legislative, or judicial branch of 

the Federal Government, transports, or causes to be transported or 

shipped, a hazardous material or manufactures, fabricates, marks, 

maintains, reconditions, repairs, or tests a package or container which 

is represented, marked, certified, or sold by such person as qualified 

for use in the transportation of a hazardous material shall be subject 

to and comply with all provisions of the Federal hazardous materials 

transportation law, all orders and regulations issued thereunder, and 

all other substantive and procedural requirements of Federal, State, 

and local governments and Indian tribes (except any such requirements 

that have been preempted by the Federal hazardous materials 

transportation law or any other Federal law), in the same manner and to 

the same extent as any person engaged in such activities that are in or 

affect commerce is subject to such provisions, orders, regulations, and 

requirements.

    3. In Sec. 171.8, the following definitions are added in 

alphabetical order:





Sec. 171.8  Definitions and abbreviations.



* * * * *

    Agricultural product means a hazardous material, other than a 

hazardous waste, whose end use directly supports the production of an 

agricultural commodity including, but not limited to a fertilizer, 

pesticide, soil amendment or fuel. An agricultural product is limited 

to a material in Class 3, 8 or 9, Division 2.1, 2.2, 5.1, or 6.1, or an 

ORM-D material.

* * * * *

    Farmer means a person engaged in the production or raising of 

crops, poultry, or livestock.

* * * * *

    Material of trade means a hazardous material, other than a 

hazardous waste, that is carried on a motor vehicle--

    (1) For the purpose of protecting the health and safety of the 

motor vehicle operator or passengers;

    (2) For the purpose of supporting the operation or maintenance of a 

motor vehicle (including its auxiliary equipment); or

    (3) By a private motor carrier (including vehicles operated by a 

rail carrier) in direct support of a principal business that is other 

than transportation by motor vehicle.

* * * * *



PART 173--SHIPPERS--GENERAL REQUIREMENTS FOR SHIPMENTS AND 

PACKAGINGS



    4. The authority citation for part 173 continues to read as 

follows:



    Authority: 49 U.S.C. 5101-5127; 49 CFR 1.53.



    5. Section 173.5 is revised to read as follows:





Sec. 173.5  Agricultural operations.



    (a) The transportation of an agricultural product other than a 

Class 2 material, over local roads between fields of the same farm, is 

excepted from the requirements of this subchapter when:

    (1) It is transported by a farmer who is an intrastate private 

motor carrier; and

    (2) The movement of the agricultural product conforms to 

requirements of the



[[Page 1216]]



State in which it is transported and is specifically authorized by a 

State statute or regulation in effect before July 1, 1998.

    (b) The transportation of an agricultural product to or from a 

farm, within 150 miles of the farm, is excepted from the requirements 

in subparts G and H of part 172 of this subchapter when:

    (1) It is transported by a farmer who is an intrastate private 

motor carrier;

    (2) The total amount of agricultural product being transported on a 

single vehicle does not exceed:

    (i) 7,300 kg (16,094 lbs.) of ammonium nitrate fertilizer properly 

classed as Division 5.1, PG III, in a bulk packaging, or

    (ii) 1900 L (502 gallons) for liquids or gases, or 2,300 kg (5,070 

lbs.) for solids, of any other agricultural product;

    (3) The packaging conforms to requirements of the State in which it 

is transported and is specifically authorized for transportation of the 

agricultural product by a State statute or regulation in effect on or 

before July 1, 1998; and

    (4) Each person having any responsibility for transporting the 

agricultural product or preparing the agricultural product for shipment 

has been instructed in the applicable requirements of this subchapter.

    (c) Formulated liquid agricultural products in specification 

packagings of 220 L (58 gallons) capacity, or less, with closures 

manifolded to a closed mixing system and equipped with positive dry 

disconnect devices may be transported by a private motor carrier 

between a final distribution point and an ultimate point of application 

or for loading aboard an airplane for aerial application.

    (d) See Sec. 173.315(m) pertaining to nurse tanks of anhydrous 

ammonia.

    (e) See Sec. 173.6 pertaining to materials of trade.

    6. A new Sec. 173.6 is added to read as follows:





Sec. 173.6  Materials of trade exceptions.



    When transported by motor vehicle in conformance with this section, 

a material of trade (see Sec. 171.8 of this subchapter) is not subject 

to any other requirements of this subchapter besides those set forth or 

referenced in this section.

    (a) Materials and amounts. A material of trade is limited to the 

following:

    (1) A Class 3, 8, 9, Division 4.1, 5.1, 6.1, or ORM-D material 

contained in a packaging having a gross mass or capacity not over--

    (i) 0.5 kg (1 pound) or 0.5 L (1 pint) for a Packing Group I 

material;

    (ii) 30 kg (66 pounds) or 30 L (8 gallons) for a Packing Group II, 

Packing Group III, or ORM-D material;

    (iii) 1500 L (400 gallons) for a diluted mixture, not to exceed 2 

percent concentration, of a Class 9 material;

    (2) A Division 2.1 or 2.2 material in a cylinder with a gross 

weight not over 100 kg (220 pounds); or

    (3) A Division 4.3 material in Packing Group II or III contained in 

a packaging having a gross capacity not exceeding 30 ml (1 ounce).

    (4) This section does not apply to a hazardous material that is 

self-reactive (see Sec. 173.124), poisonous by inhalation (see 

Sec. 173.133), or a hazardous waste.

    (b) Packaging. (1) Packagings must be leak tight for liquids and 

gases, sift proof for solids, and be securely closed, secured against 

movement, and protected against damage.

    (2) Each material must be packaged in the manufacturer's original 

packaging, or a packaging of equal or greater strength and integrity.

    (3) Outer packagings are not required for receptacles (e.g., cans 

and bottles) that are secured against movement in cages, carts, bins, 

boxes or compartments.

    (4) For gasoline, a packaging must be made of metal or plastic and 

conform to requirements of this subchapter or requirements of the 

Occupational Safety and Health Administration of the Department of 

Labor contained in 29 CFR 1910.106.

    (5) A cylinder or other pressure vessel containing a Division 2.1 

or 2.2 material must conform to packaging, qualification, maintenance, 

and use requirements of this subchapter, except that outer packagings 

are not required. Manifolding of cylinders is authorized provided all 

valves are tightly closed.

    (c) Hazard communication. (1) A non-bulk packaging other than a 

cylinder (including a receptacle transported without an outer 

packaging) must be marked with a common name or proper shipping name to 

identify the material it contains, including the letters ``RQ'' if it 

contains a reportable quantity of a hazardous substance.

    (2) A bulk packaging containing a diluted mixture of a Class 9 

material must be marked on two opposing sides with the four-digit 

identification number of the material. The identification number must 

be displayed on orange panels or, alternatively, a white square-on-

point configuration having the same outside dimensions as a placard (at 

least 273 mm (10.8 inches) on a side), in the manner specified in 

Sec. 172.332 (b) and(c) of this subchapter. Each digit in the 

identification number marking must be at least 25 mm (one inch) high 

and 6 mm (0.24 inch) wide.

    (3) A DOT specification cylinder (except DOT specification 39) must 

be marked and labeled as prescribed in this subchapter. Each DOT-39 

cylinder must display the markings specified in Sec. 178.65-14.

    (4) The operator of a motor vehicle that contains a material of 

trade must be informed of the presence of the hazardous material 

(including whether the package contains a reportable quantity) and must 

be informed of the requirements of this section.

    (d) Aggregate gross weight. Except for permanently mounted tanks 

authorized by paragraph (a)(1)(iii) of this section, the aggregate 

gross weight of all materials of trade on a motor vehicle may not 

exceed 200 kg (440 pounds). A material of trade may be transported on a 

motor vehicle under the provisions of this section with other hazardous 

materials without affecting its eligibility for exceptions provided by 

this section.

    7. A new Sec. 173.8 is added to read as follows:





Sec. 173.8  Exceptions for non-specification packagings used in 

intrastate transportation.



    (a) Non-specification bulk packagings. Notwithstanding requirements 

for specification packagings in subpart F of this part and parts 178 

and 180 of this subchapter, a non-specification bulk packaging may be 

used for transportation of a hazardous material by an intrastate motor 

carrier until July 1, 2000, in accordance with the provisions of 

paragraph (d) of this section.

    (b) Non-specification cargo tanks for petroleum products. 

Notwithstanding requirements for specification packagings in subpart F 

of this part and parts 178 and 180 of this subchapter, a non-

specification cargo tank motor vehicle having a capacity of less than 

13,250 liters (3,500 gallons) may be used by an intrastate motor 

carrier for transportation of a flammable liquid petroleum product in 

accordance with the provisions of paragraph (d) of this section.

    (c) Permanently secured non-bulk tanks for petroleum products. 

Notwithstanding requirements for specification packagings in subpart F 

of this part 173 and parts 178 and 180 of this subchapter, a non-

specification metal tank permanently secured to a transport vehicle and 

protected against leakage or damage in the event of a turnover, having 

a capacity of less than 450 liters (119 gallons), may be used by an 

intrastate motor carrier for transportation of a flammable liquid



[[Page 1217]]



petroleum product in accordance with the provisions of paragraph (d) of 

this section.

    (d) Additional requirements. A packaging used under the provisions 

of paragraphs (a), (b) or (c) of this section must--

    (1) Be operated by an intrastate motor carrier and in use as a 

packaging for hazardous material before July 1, 1998;

    (2) Be operated in conformance with the requirements of the State 

in which it is authorized;

    (3) Be specifically authorized by a State statute or regulation in 

effect before July 1, 1998, for use as a packaging for the hazardous 

material being transported;

    (4) Be offered for transportation and transported in conformance 

with all other applicable requirements of this subchapter;

    (5) Not be used to transport a flammable cryogenic liquid, 

hazardous substance, hazardous waste, or marine pollutant; and

    (6) On and after July 1, 2000, for a tank authorized under 

paragraph (b) or (c) of this section, conform to all requirements in 

part 180 (except for Sec. 180.405(g)) of this subchapter in the same 

manner as required for a DOT specification MC 306 cargo tank motor 

vehicle.



PART 180--CONTINUING QUALIFICATION AND MAINTENANCE OF PACKAGINGS



    8. The authority citation for part 180 continues to read as 

follows:



    Authority: 49 U.S.C. 5101-5127; 49 CFR 1.53.





    9. In Sec. 180.409, the introductory text of paragraph (a) is 

revised, paragraph (b) is redesignated as paragraph (d), and new 

paragraphs (b) and (c) are added to read as follows:





Sec. 180.409  Minimum qualifications for inspectors and testers.



    (a) Except as otherwise provided in this section, any person 

performing or witnessing the inspections and tests specified in 

Sec. 180.407(c) must--

* * * * *

    (b) A person who only performs annual external visual inspections 

and leakage tests on a cargo tank motor vehicle, owned or operated by 

that person, with a capacity of less than 13,250 liters (3,500 gallons) 

used exclusively for flammable liquid petroleum fuels, is not required 

to meet the educational and years of experience requirements set forth 

in the definition of ``Registered Inspector'' in Sec. 171.8 of this 

subchapter. Although not required to meet the educational and years of 

experience requirements, a person who performs visual inspections or 

leakage tests or signs the inspection reports must have the knowledge 

and ability to perform such inspections and tests and must perform them 

as required by this subchapter, and must register with the Department 

as required by subpart F of part 107 of this chapter.

    (c) A person who performs only annual external visual inspections 

and leakage tests on a permanently mounted non-bulk tank, owned or 

operated by that person, for petroleum products as authorized by 

Sec. 173.8(c) of this subchapter, is not required to be registered in 

accordance with subpart F of part 107 of this chapter. In addition the 

person who signs the inspection report required by Sec. 180.417(b) of 

this subpart for such non-bulk tanks is not required to be registered. 

Although not required to register, a person who performs visual 

inspections or leakage tests or signs the inspection reports must have 

the knowledge and ability to perform such inspections and tests and 

must perform them as required by this subchapter.

* * * * *

    Issued in Washington, DC on December 30, 1996 under authority 

delegated in 49 CFR, part 1.

D.K. Sharma,

Administrator.

[FR Doc. 97-188 Filed 1-7-97; 8:45 am]

BILLING CODE 4910-60-P





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