81 FR 48885 - Hazardous Materials: FAST Act Insurance and Liability Study; Request for Comments
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration Federal Register Volume 81, Issue 143 (July 26, 2016)
Pipeline and Hazardous Materials Safety Administration
Federal Register Volume 81, Issue 143 (July 26, 2016)
| Page Range | 48885-48886 | |
| FR Document | 2016-17615 |
[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)] [Notices] [Pages 48885-48886] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-17615] [[Page 48885]] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration [Docket No. PHMSA-2016-0074 (Notice No. 2016-13)] Hazardous Materials: FAST Act Insurance and Liability Study; Request for Comments AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT. ACTION: Notice and request for comments. ----------------------------------------------------------------------- SUMMARY: On December 4, 2015, President Obama signed legislation entitled, ``Fixing America's Surface Transportation Act of 2015'' (the FAST Act). The FAST Act includes the ``Hazardous Materials Transportation Safety Improvement Act of 2015'' in Sections 7001 through 7311, which provides direction for PHMSA's hazardous materials safety program. Section 7310 of the FAST Act requires the Secretary of Transportation to initiate a study of the levels and structure of insurance for railroad carriers transporting hazardous materials, which must be initiated within four months of the enactment of the FAST Act. Within a year of initiation, the Secretary must submit a report with the results of the study and recommendations for addressing liability issues with rail transportation of hazmat to Congress. PHMSA initiated this insurance study in March 2016 and is on schedule to complete it by April 2017. Specifically, PHMSA entered into an inter-agency agreement with the U.S. Department of Transportation (DOT) Office of Research and Technology's Volpe National Transportation Systems Center to conduct the study, which is required to examine current and future levels and mechanisms to insure rail carriers transporting all hazardous materials. The study will evaluate the following: (1) The level and structure of insurance, including self-insurance, available in the private market against the full liability potential for damages arising from an accident or incident involving a train transporting hazardous materials; (2) The level and structure of insurance necessary and appropriate to efficiently allocate risk and financial responsibility for claims; and to ensure that a railroad carrier transporting hazardous materials can continue to operate despite the risk of an accident or incident; and (3) The potential applicability for a train transporting hazardous materials, of an alternative insurance model, including a secondary liability coverage pool or pools to supplement commercial insurance; and other models administered by the Federal Government. DATES: Comments on this notice will be accepted until September 9, 2016. ADDRESSES: You may submit comments identified by the docket number (PHMSA-2016-0074) by any of the following methods:Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting comments. Fax: (202) 493-2251. Mail: Docket Operations, M-30, Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001. Hand Delivery: To Docket Operations, Room W12-140 on the ground floor of the West Building, 1200 New Jersey Avenue SE., Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. Instructions: All submissions must include the agency name and docket number for this notice. Internet users may access comments received by DOT at: http://www.regulations.gov. Note that the comments received will be posted without change to: http://www.regulations.gov and will include any personal information provided. When providing comments, please identify the following: Organization Name, Type of Organization (e.g. rail carrier, shipper, insurer, trade organization, government, etc.), and An explanation of your interest in this study. FOR FURTHER INFORMATION CONTACT: Robert Benedict, (202) 366-8553, Program Development Division, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Avenue SE., Washington, DC 20590-0001. Request for Comments: As part of this study, PHMSA is conducting a review of existing data and literature with regard to current insurance liability levels and structure for rail carriers transporting hazardous materials. This review examines publically available insurance and liability data, including information released by the rail carriers, information released by industry trade associations, data and reports regarding the insurance industry, previous academic, government, or industry studies, and other public sources. Given the large scope of this study, PHMSA is seeking public comment. Specifically, in an effort to provide an opportunity for stakeholder input on the study and potential sources of data and literature, PHMSA is issuing this notice requesting comment on insurance and liability coverage for rail carriers transporting hazardous materials. PHMSA is requesting input that would inform the study, as well as any available insurance and liability literature and data that may be relevant to this topic. In addition, PHMSA is seeking input and data related to the following specific questions. Level and Structure of Insurance and Liability Coverage 1. Please comment on, or provide data relating to, the current level, structure, and type of liability insurance coverage (including self-insurance and retentions) available for hazardous materials transportation by rail. Specifically, please address the following: Cost and scope of coverage State and Federal Requirements Changes in the cost or availability of liability insurance Issues unique to your industry, commodity, and/or entity size 2. Are the current levels of liability insurance coverage for hazardous materials transportation by rail appropriate? If not, what would be considered an appropriate level? Are there policy or market changes that could alter your perspective on what is adequate? How do you anticipate this changing in the future? 3. What are the drivers of the current coverage limits for hazardous materials transportation liability insurance? Are there policy or market changes that could enable the availability of higher coverage limits? How do you anticipate this changing in the future? 4. As hazardous materials transportation by rail is a cross-border enterprise, how, if at all, do foreign requirements related to insurance and liability coverage impact the level, structure and type of insurance and liability coverage held domestically? Insurance and Liability Alternatives 5. Please comment on, or provide data relating to, any previous or current initiatives for sharing the cost of insurance and/or legal liability for hazardous material by rail incidents between shipper and carrier. 6. Please comment on, or provide data relating to, any other legislative, policy, or voluntary approaches from other industries that may be applicable to [[Page 48886]] liability and insurance related to hazardous materials transportation by rail. To the extent possible, please comment on any potential economic, safety, and environmental considerations related to these alternative approaches. 7. Other industries and foreign governments have implemented programs that impose fees to fund secondary liability coverage and/or create liability caps. Is this a feasible alternative for hazardous materials transportation by rail? Other Information 8. Please provide any potential studies and data sources that may inform this study. 9. Commenters are invited to address any other considerations related to liability and the rail transport of hazardous materials not addressed above. Signed in Washington, DC, on July 21, 2016. William Schoonover, Acting Associate Administrator for Hazardous Materials Safety, Pipeline and Hazardous Materials Safety Administration. [FR Doc. 2016-17615 Filed 7-25-16; 8:45 am] BILLING CODE 4910-60-P
![Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices 48885
DEPARTMENT OF TRANSPORTATION liability coverage pool or pools to opportunity for stakeholder input on the
supplement commercial insurance; and study and potential sources of data and
Pipeline and Hazardous Materials other models administered by the literature, PHMSA is issuing this notice
Safety Administration Federal Government. requesting comment on insurance and
[Docket No. PHMSA–2016–0074 (Notice No. DATES: Comments on this notice will be liability coverage for rail carriers
2016–13)] accepted until September 9, 2016. transporting hazardous materials.
ADDRESSES: You may submit comments PHMSA is requesting input that would
Hazardous Materials: FAST Act identified by the docket number inform the study, as well as any
Insurance and Liability Study; Request (PHMSA–2016–0074) by any of the available insurance and liability
for Comments following methods: literature and data that may be relevant
• Federal eRulemaking Portal: Go to to this topic.
AGENCY: Pipeline and Hazardous In addition, PHMSA is seeking input
Materials Safety Administration http://www.regulations.gov. Follow the
online instructions for submitting and data related to the following
(PHMSA), DOT. specific questions.
ACTION: Notice and request for comments.
comments. • Fax: (202) 493–2251. Level and Structure of Insurance and
• Mail: Docket Operations, M–30, Liability Coverage
SUMMARY: On December 4, 2015, Ground Floor, Room W12–140, 1200
New Jersey Avenue SE., Washington, 1. Please comment on, or provide data
President Obama signed legislation
DC 20590–0001. relating to, the current level, structure,
entitled, ‘‘Fixing America’s Surface
• Hand Delivery: To Docket and type of liability insurance coverage
Transportation Act of 2015’’ (the FAST
Operations, Room W12–140 on the (including self-insurance and
Act). The FAST Act includes the
ground floor of the West Building, 1200 retentions) available for hazardous
‘‘Hazardous Materials Transportation
New Jersey Avenue SE., Washington, materials transportation by rail.
Safety Improvement Act of 2015’’ in
DC 20590–0001, between 9 a.m. and 5 Specifically, please address the
Sections 7001 through 7311, which
p.m., Monday through Friday, except following:
provides direction for PHMSA’s
Federal holidays. • Cost and scope of coverage
hazardous materials safety program.
Instructions: All submissions must • State and Federal Requirements
Section 7310 of the FAST Act requires
• Changes in the cost or availability
the Secretary of Transportation to include the agency name and docket
of liability insurance
initiate a study of the levels and number for this notice. Internet users
• Issues unique to your industry,
structure of insurance for railroad may access comments received by DOT
commodity, and/or entity size
carriers transporting hazardous at: http://www.regulations.gov. Note that 2. Are the current levels of liability
materials, which must be initiated the comments received will be posted insurance coverage for hazardous
within four months of the enactment of without change to: http:// materials transportation by rail
the FAST Act. Within a year of www.regulations.gov and will include appropriate?
initiation, the Secretary must submit a any personal information provided. • If not, what would be considered an
report with the results of the study and When providing comments, please appropriate level?
recommendations for addressing identify the following: • Are there policy or market changes
liability issues with rail transportation • Organization Name, that could alter your perspective on
of hazmat to Congress. PHMSA initiated • Type of Organization (e.g. rail what is adequate?
this insurance study in March 2016 and carrier, shipper, insurer, trade • How do you anticipate this
is on schedule to complete it by April organization, government, etc.), and changing in the future?
2017. Specifically, PHMSA entered into • An explanation of your interest in 3. What are the drivers of the current
an inter-agency agreement with the U.S. this study. coverage limits for hazardous materials
Department of Transportation (DOT) FOR FURTHER INFORMATION CONTACT: transportation liability insurance?
Office of Research and Technology’s Robert Benedict, (202) 366–8553, • Are there policy or market changes
Volpe National Transportation Systems Program Development Division, that could enable the availability of
Center to conduct the study, which is Pipeline and Hazardous Materials Safety higher coverage limits?
required to examine current and future Administration, U.S. Department of • How do you anticipate this
levels and mechanisms to insure rail Transportation, 1200 New Jersey changing in the future?
carriers transporting all hazardous Avenue SE., Washington, DC 20590– 4. As hazardous materials
materials. The study will evaluate the 0001. transportation by rail is a cross-border
following: (1) The level and structure of Request for Comments: As part of this enterprise, how, if at all, do foreign
insurance, including self-insurance, study, PHMSA is conducting a review of requirements related to insurance and
available in the private market against existing data and literature with regard liability coverage impact the level,
the full liability potential for damages to current insurance liability levels and structure and type of insurance and
arising from an accident or incident structure for rail carriers transporting liability coverage held domestically?
involving a train transporting hazardous hazardous materials. This review
materials; (2) The level and structure of examines publically available insurance Insurance and Liability Alternatives
insurance necessary and appropriate to and liability data, including information 5. Please comment on, or provide data
efficiently allocate risk and financial released by the rail carriers, information relating to, any previous or current
responsibility for claims; and to ensure released by industry trade associations, initiatives for sharing the cost of
srobinson on DSK5SPTVN1PROD with NOTICES
that a railroad carrier transporting data and reports regarding the insurance insurance and/or legal liability for
hazardous materials can continue to industry, previous academic, hazardous material by rail incidents
operate despite the risk of an accident government, or industry studies, and between shipper and carrier.
or incident; and (3) The potential other public sources. 6. Please comment on, or provide data
applicability for a train transporting Given the large scope of this study, relating to, any other legislative, policy,
hazardous materials, of an alternative PHMSA is seeking public comment. or voluntary approaches from other
insurance model, including a secondary Specifically, in an effort to provide an industries that may be applicable to
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![48886 Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices
liability and insurance related to DATES: Written comments are welcome aid in protecting and securing the U.S.
hazardous materials transportation by and must be received on or before financial system.
rail. To the extent possible, please September 26, 2016. Title: Imposition of Special Measure
comment on any potential economic, ADDRESSES: Written comments should against Banco Delta Asia, including its
safety, and environmental be submitted to: Financial Crimes subsidiaries Delta Asia Credit Limited
considerations related to these Enforcement Network, P.O. Box 39, and Delta Asia Insurance Limited, as a
alternative approaches. Vienna, VA 22183, Attention: Comment financial institution of primary money
7. Other industries and foreign Request; Imposition of Special Measure laundering concern.
governments have implemented against Banco Delta Asia. Office of Management and Budget
programs that impose fees to fund • Comments also may be submitted (‘‘OMB’’) Control Number: 1506–0045.
secondary liability coverage and/or by electronic mail to the following Abstract: FinCEN is issuing this
create liability caps. Is this a feasible Internet address: notice to renew the OMB control
alternative for hazardous materials regcomments@fincen.gov, with the number for the imposition of a special
transportation by rail? caption, ‘‘Attention: Comment Request; measure against Banco Delta Asia,
Other Information Imposition of Special Measure against including its subsidiaries Delta Asia
Banco Delta Asia’’ in the body of the Credit Limited and Delta Asia Insurance
8. Please provide any potential Limited, as a financial institution of
studies and data sources that may text.
inform this study. • Please submit by one method only. primary money laundering concern
All comments submitted by either pursuant to the authority contained in
9. Commenters are invited to address 31 U.S.C. 5318A.
any other considerations related to method in response to this notice will
become a matter of public record. Current Action: Renewal without
liability and the rail transport of
Therefore, you should submit only change for existing proposed
hazardous materials not addressed
information that you wish to make regulations.
above.
publicly available. Type of Review: Extension of a
Signed in Washington, DC, on July 21, currently approved information
Inspection of comments: Comments
2016. collection.
will be posted on the FinCEN public
William Schoonover, Affected Public: Businesses and
Web site. Persons wishing to review the
Acting Associate Administrator for comments submitted may access the certain not-for-profit institutions.
Hazardous Materials Safety, Pipeline and Burden: Estimated Number of
posted comments by going to https://
Hazardous Materials Safety Administration. Respondents: 5,000.
www.fincen.gov/statutes_regs/frn/.
[FR Doc. 2016–17615 Filed 7–25–16; 8:45 am] Estimated Number of Responses:
FOR FURTHER INFORMATION CONTACT:
BILLING CODE 4910–60–P
FinCEN Resource Center at 1–800–767– 5,000.
2825 or 1–703–905–3591 (not a toll free Estimated Number of Hours: 5,000.
number) and select option 3 for An agency may not conduct or
DEPARTMENT OF THE TREASURY sponsor, and a person is not required to
regulatory questions. Email inquiries
can be sent to FRC@fincen.gov. respond to, a collection of information
Financial Crimes Enforcement unless it displays a valid control
Network; Proposed Renewal Without SUPPLEMENTARY INFORMATION:
number assigned by OMB. Records
Change; Comment Request; Abstract: The Director of FinCEN is required to be retained under the Act
Imposition of Special Measure Against the delegated administrator of the Bank must be retained for five years.
Banco Delta Asia, Including Its Secrecy Act (‘‘Act’’). The Act authorizes Generally, information collected
Subsidiaries Delta Asia Credit Limited the Director to issue regulations to pursuant to the Act is confidential but
and Delta Asia Insurance Limited, as a require all financial institutions defined may be shared as provided by law with
Financial Institution of Primary Money as such in the Act to maintain or file regulatory and law enforcement
Laundering Concern certain reports or records that have been authorities.
determined to have a high degree of
AGENCY: Financial Crimes Enforcement usefulness in criminal, tax, or regulatory Request for Comments
Network, Department of the Treasury. investigations or proceedings, or in the
ACTION: Notice and request for Comments submitted in response to
conduct of intelligence or counter- this notice will be summarized and/or
comments. intelligence activities, including included in the request for OMB
SUMMARY: As part of a continuing effort analysis, to protect against international approval. All comments will become a
to reduce paperwork and respondent terrorism.1 matter of public record. Comments are
burden, the Financial Crimes The notice of final rulemaking invited on: (a) Whether the collection of
Enforcement Network (‘‘FinCEN’’) implemented section 5318A of Title 31, information is necessary for the proper
invites comment on a renewal, without United States Code, by adding section performance of the functions of the
change, to information collection § 1010.655 to 31 CFR Chapter X. In agency, including whether the
requirements finalized on March 19, general, the regulations require covered information shall have practical utility;
2007 (72 FR 12730, RIN 1506–AA83) financial institutions to establish, (b) the accuracy of the agency’s estimate
imposing a special measure against document, and maintain programs as an of the burden of the collection of
Banco Delta Asia, including its information; (c) ways to enhance the
1 Public Law 91–508, as amended and codified at
subsidiaries Delta Asia Credit Limited quality, utility, and clarity of the
srobinson on DSK5SPTVN1PROD with NOTICES
12 U.S.C. 1829b, 12 U.S.C. 1951–1959 and 31 U.S.C.
and Delta Asia Insurance Limited, as a 5311–5332. Language expanding the scope of the
information to be collected; (d) ways to
financial institution of primary money Bank Secrecy Act to intelligence or counter- minimize the burden of the collection of
laundering concern. This request for intelligence activities to protect against information on respondents, including
comments is being made pursuant to the international terrorism was added by section 358 of through the use of automated collection
the Uniting and Strengthening America by
Paperwork Reduction Act of 1995, Providing Appropriate Tools Required to Intercept
techniques or other forms of information
Public Law 104–13, 44 U.S.C. and Obstruct Terrorism Act of 2001, Public Law technology; and (e) estimates of capital
3506(c)(2)(A). 107–56. or start-up costs and costs of operation,
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Document Created: 2018-02-08 08:00:41
Document Modified: 2018-02-08 08:00:41
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice and request for comments. | |
| Dates | Comments on this notice will be accepted until September 9, 2016. | |
| Contact | Robert Benedict, (202) 366-8553, Program Development Division, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, 1200 New Jersey Avenue SE., Washington, DC 20590-0001. | |
| FR Citation | 81 FR 48885 |
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