Hazardous Materials: Modernizing Payments To and From America's Bank Account

SUPPLEMENTARY INFORMATION

I. PHMSA Action

A. What action is PHMSA taking in this final rule?

PHMSA is revising 49 CFR 107.616 to eliminate the option to pay the hazardous materials transportation registration fee by paper check and require electronic payment.

B. Does this action apply to me?

Effective 30 days after publication of this final rule, persons subject to the registration requirements in 49 CFR 107.601 must pay registration fees electronically.

C. Why is PHMSA taking this action?

PHMSA is taking this action in response to commenter feedback and to advance the goals of Executive Order (E.O.) 14247 (Modernizing Payments To and From America's Bank Account).\1\ Executive Order 14247 directs that, as soon as practicable and to the extent permitted by law, all payments to the Federal Government must be processed electronically. The Order further requires the Secretary of the Treasury to take appropriate action to eliminate the need for the Department of the Treasury's (“Treasury”) physical lockbox services and to expedite the receipt of Federal payments--including fees-- through electronic means.

\1\ 90 FR 14001 (Mar. 25, 2025).

II. Summary of Comments Received in Response to the Notice of Proposed Rulemaking

PHMSA published a notice of proposed rulemaking (NPRM), cited as HM-268H, to gather feedback on revising the hazardous materials registration fee payment system.\2\ Please refer to the NPRM for background and discussion of the proposed change.

\2\ 90 FR 28528 (Jul. 1, 2025).

The following table alphabetically lists commenters to the NPRM:

Commenter name Docket No.

Council on Safe Transportation of PHMSA-2025-0096-0003

Hazardous Articles, Inc.

(COSTHA). Dangerous Goods Advisory Council. PHMSA-2025-0096-0005 Institute of Makers of Explosives PHMSA-2025-0096-0004 National Tank Truck Carriers..... PHMSA-2025-0096-0002 Nuclear Energy Institute......... PHMSA-2025-0097-0002

All commenters supported the proposed amendment requiring electronic-only payment of hazardous materials transportation registration fees. COSTHA expressed support for the proposal but requested clarification on whether members must use a credit card or may continue to make electronic bank-to-bank or Automated Clearing House (ACH) payments. COSTHA noted that many members use ACH payments through the Department's e-Commerce

site and that some users find ACH payments more practical and cost- effective than credit card transactions.

PHMSA is not removing the ability to make ACH payments. The electronic-only payment system will rely exclusively on digital or electronic methods for transactions related to hazardous materials transportation registration fees. Funds may be transferred through electronic networks using credit or debit cards, mobile wallets, direct bank transfers, or other digital platforms--including use of ACH payments.

III. Regulatory Analysis and Notices

A. Legal Authority

This final rule is published under the authority of the Secretary of Transportation as set forth in the Federal Hazardous Materials Transportation Laws (49 U.S.C. 5101 et seq.) and delegated to the PHMSA Administrator pursuant to 49 CFR 1.97.

B. Executive Order 12866; Regulatory Planning and Review

C. Executive Orders 14192 and 14219

PHMSA has determined that this final rule is an E.O. 14192 (Unleashing Prosperity Through Deregulation) deregulatory action.\6\ PHMSA finds the total costs of the rule on the regulated community will be less than zero. This final rule does not implicate any of the factors identified in section 2(a) of E.O. 14219 (Ensuring Lawful Governance) indicative of a regulation that is “unlawful . . . [or] that undermine[s] the national interest.” \7\

\6\ 90 FR 9065 (Feb. 6, 2025).

\7\ 90 FR 10583 (Feb. 25, 2025).

D. Energy-Related Executive Orders 13211, 14154, and 14156

PHMSA has analyzed this final rule in accordance with the principles and criteria contained in E.O. 14156 (Declaring a National Energy Emergency) and E.O. 14154 (Unleashing American Energy).\8\ The President has declared a national emergency to address America's inadequate energy development production, transportation, refining, and generation capacity and asserted a Federal policy to unleash American energy by ensuring access to abundant supplies of reliable, affordable energy from (inter alia) the removal of “undue burden[s]” on the identification, development, or use of domestic energy resources. PHMSA finds this final rule to be consistent with E.O. 14156 and E.O. 14154 because it will not hinder or unduly burden the transportation or production of energy or energy-related products.

\8\ 90 FR 8433 (Jan. 29, 2025); 90 FR 8353 (Jan. 29, 2025).

In addition, this final rule is not a “significant energy action” under E.O. 13211 (Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use), which requires Federal agencies to prepare a Statement of Energy Effects for any “significant energy action.” \9\ Because this final rule is not a significant action under E.O. 12866, it will not have a significant adverse effect on supply, distribution, or energy use; accordingly, OIRA has not designated this final rule as a significant energy action.

\9\ 66 FR 28355 (May 22, 2001).

E. Executive Order 13132: Federalism

F. Regulatory Flexibility Act

The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires Federal agencies to conduct a Final Regulatory Flexibility Analysis (FRFA) for a final rule that has been subject to a notice-and-comment rulemaking under the APA unless the agency head certifies that the final rule in the rulemaking will not have a significant economic impact on a substantial number of small entities. E.O. 13272 (Proper Consideration of Small Entities in Agency Rulemaking) obliges agencies to establish procedures promoting compliance with the Regulatory Flexibility Act.\11\ DOT posts information on a dedicated web page to help small businesses understand and navigate Federal regulatory processes.\12\ PHMSA developed this final rule in accordance with E.O. 13272 and DOT implementing guidance to ensure compliance with the Regulatory Flexibility Act. PHMSA has concluded that the incremental costs of the final rule will be negligible and certifies that the final rule will not have a significant impact on a substantial number of small entities.

\11\ 67 FR 53461 (Aug. 16, 2002).

\12\ DOT, Rulemaking Requirements Related to Small Entities (last accessed Sept 3, 2024), available at: https://www.transportation.gov/regulations/rulemaking-requirements-concerning-small-entities.

G. Unfunded Mandates Reform Act of 1995

The Unfunded Mandates Reform Act (UMRA, 2 U.S.C. 1501 et seq.) requires agencies to assess the effects of Federal regulatory actions on State, local, and Tribal governments, and the private sector. For any proposed or final rule that includes a Federal mandate that may result in the expenditure by State, local, and Tribal governments, in the aggregate of $100 million or more (in 1996 dollars) in any given year, the agency must prepare, amongst other things, a written statement that qualitatively and quantitatively assesses the costs and benefits of the Federal mandate.

This final rule does not impose unfunded mandates under UMRA because it does not result in costs of $100 million or more (in 1996 dollars) per year for either State, local, or Tribal governments, or to the private sector.

H. National Environmental Policy Act

PHMSA has analyzed this rule pursuant to the National Environmental Policy Act (NEPA; 42 U.S.C. 4321 et seq.) and has determined it is categorically excluded under 23 CFR 771.117(c)(20), which applies to the promulgation of rules, regulations, and directives. Under Section 9 of DOT Order 5610.1D, PHMSA may apply a categorical exclusion (CE) established in another Operating Administration's procedures. PHMSA followed the requirements outlined in DOT Order 5610.1D to apply the Federal Highway Administration's CE to this deregulatory action. PHMSA has determined no unusual circumstances are present under 23 CFR 771.117(b). PHMSA's Categorical Exclusion Determination memo for this action is available on PHMSA's website.\13\

\13\ DOT, PHMSA, Implementing Procedures (Aug. 28, 2025), https://www.phmsa.dot.gov/planning-and-analytics/environmental-analysis-and-compliance/implementing-procedures.

I. Executive Order 13175

PHMSA analyzed this final rule according to the principles and criteria in E.O. 13175 (Consultation and Coordination with Indian Tribal Governments) and DOT Order 5301.1A (Department of Transportation Tribal Consultation Policies and Procedures).\14\ E.O. 13175 requires agencies to assure meaningful and timely input from Tribal government representatives in the development of rules that significantly or uniquely affect Tribal communities by imposing “substantial direct compliance costs” or “substantial direct effects” on such communities or the relationship or distribution of power between the Federal Government and Tribes.

\14\ 65 FR 67249 (Nov. 9, 2000).

PHMSA assessed the impact of the final rule and determined that it will not significantly or uniquely affect Tribal communities or Indian Tribal governments. The rulemaking's regulatory amendments have a broad, national scope; therefore, this final rule will not significantly or uniquely affect Tribal communities, much less impose substantial compliance costs on Tribal governments or mandate Tribal action. For these reasons, PHMSA has concluded that the funding and consultation requirements of E.O. 13175 and DOT Order 5301.1A do not apply.

J. Paperwork Reduction Act

The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) and its implementing regulations at 5 CFR 1320.8(d) require that PHMSA provide interested members of the public and affected agencies with an opportunity to comment on information collection and recordkeeping requests. This rulemaking will not create, amend, or rescind any existing information collections.

K. Executive Order 13609 and International Trade Analysis

E.O. 13609 (Promoting International Regulatory Cooperation) requires agencies consider whether the impacts associated with significant variations between domestic and international regulatory approaches are unnecessary or may impair the ability of American business to export and to compete internationally.\15\ In meeting shared challenges involving health, safety, labor, security, environmental, and other issues, international regulatory cooperation can identify approaches that are at least as protective as those that are or would be adopted in the absence of such cooperation. International regulatory cooperation can also reduce, eliminate, or prevent unnecessary differences in regulatory requirements.

\15\ 77 FR 26413 (May 4, 2012).

Similarly, the Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal agencies from establishing any standards or engaging in related activities that create unnecessary obstacles to the foreign commerce of the United States. For purposes of these requirements, Federal agencies may

participate in the establishment of international standards, so long as the standards have a legitimate domestic objective, such as providing for safety, and do not operate to exclude imports that meet this objective. The statute also requires consideration of international standards and, where appropriate, that they be the basis for U.S. standards.

PHMSA engages with international standards setting bodies to protect the safety of the American public. PHMSA has assessed the effects of this final rule and has determined that its regulatory amendments will not cause unnecessary obstacles to foreign trade.

L. Cybersecurity and Executive Order 14028

Executive Order 14028 (Improving the Nation's Cybersecurity) directed the Federal Government to improve its efforts to identify, to deter, and to respond to “persistent and increasingly sophisticated malicious cyber campaigns.” \16\ PHMSA has considered the effects of the final rule and has determined that its regulatory amendments would not materially affect the cybersecurity risk profile for affected entities.

\16\ 86 FR 26633 (May 17, 2021).

M. Privacy Act Statement

In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to www.regulations.gov, as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at http://www.dot.gov/privacy. DOT's complete Privacy Act Statement in the Federal Register published on April 11, 2000, or on DOT's website at http://www.dot.gov/privacy.

List of Subjects in 49 CFR Part 107