The hazardous materials (hazmat) transportation industry is taking exception to proposals contained in President Bush’s fiscal year 2003 budget that would fund $6 million of its hazmat safety program through user registration fees. Earlier this year, the Department of Transportation’s Research and Special Programs Administration (RSPA) revealed that there was a $16 million surplus in its Hazardous Materials Emergency Preparedness (HMEP) grant program, which is funded by annual registration fees imposed on hazmat carriers. Industry has asked that the registration fees be reduced, and opposes the move to shift HMEP surpluses to the regular hazmat safety program.

RSPA raised hazmat registration fees significantly in 1999. By statute, the HMEP program is authorized to pay out only $14.3 million annually for emergency preparedness and hazmat training. The Bush budget for FY ’03 includes full funding for HMEP grants at $14.3 million, but proposes to use $6 million for hazmat safety programs. The Bush Administration made a similar proposal in its FY ’02 budget, which Congress opposed and did not implement.

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