Hazardous Materials: FAST Act Insurance and Liability Study; Request for Comments, 48885-48886 [2016-17615]

Download as PDF Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices 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 Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT. ACTION: Notice and request for comments. AGENCY: 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 srobinson on DSK5SPTVN1PROD with NOTICES SUMMARY: VerDate Sep<11>2014 20:28 Jul 25, 2016 Jkt 238001 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 PO 00000 Frm 00150 Fmt 4703 Sfmt 4703 48885 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 E:\FR\FM\26JYN1.SGM 26JYN1 48886 Federal Register / Vol. 81, No. 143 / Tuesday, July 26, 2016 / Notices 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 DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network; Proposed Renewal Without Change; Comment Request; Imposition of Special Measure Against Banco Delta Asia, Including Its Subsidiaries Delta Asia Credit Limited and Delta Asia Insurance Limited, as a Financial Institution of Primary Money Laundering Concern Financial Crimes Enforcement Network, Department of the Treasury. ACTION: Notice and request for comments. AGENCY: As part of a continuing effort to reduce paperwork and respondent burden, the Financial Crimes Enforcement Network (‘‘FinCEN’’) invites comment on a renewal, without change, to information collection requirements finalized on March 19, 2007 (72 FR 12730, RIN 1506–AA83) imposing a special measure against Banco Delta Asia, including its subsidiaries Delta Asia Credit Limited and Delta Asia Insurance Limited, as a financial institution of primary money laundering concern. This request for comments is being made pursuant to the Paperwork Reduction Act of 1995, Public Law 104–13, 44 U.S.C. 3506(c)(2)(A). srobinson on DSK5SPTVN1PROD with NOTICES SUMMARY: VerDate Sep<11>2014 20:28 Jul 25, 2016 Jkt 238001 Written comments are welcome and must be received on or before September 26, 2016. ADDRESSES: Written comments should be submitted to: Financial Crimes Enforcement Network, P.O. Box 39, Vienna, VA 22183, Attention: Comment Request; Imposition of Special Measure against Banco Delta Asia. • Comments also may be submitted by electronic mail to the following Internet address: regcomments@fincen.gov, with the caption, ‘‘Attention: Comment Request; Imposition of Special Measure against Banco Delta Asia’’ in the body of the text. • Please submit by one method only. All comments submitted by either method in response to this notice will become a matter of public record. Therefore, you should submit only information that you wish to make publicly available. Inspection of comments: Comments will be posted on the FinCEN public Web site. Persons wishing to review the comments submitted may access the posted comments by going to https:// www.fincen.gov/statutes_regs/frn/. FOR FURTHER INFORMATION CONTACT: FinCEN Resource Center at 1–800–767– 2825 or 1–703–905–3591 (not a toll free number) and select option 3 for regulatory questions. Email inquiries can be sent to FRC@fincen.gov. SUPPLEMENTARY INFORMATION: Abstract: The Director of FinCEN is the delegated administrator of the Bank Secrecy Act (‘‘Act’’). The Act authorizes the Director to issue regulations to require all financial institutions defined as such in the Act to maintain or file certain reports or records that have been determined to have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism.1 The notice of final rulemaking implemented section 5318A of Title 31, United States Code, by adding section § 1010.655 to 31 CFR Chapter X. In general, the regulations require covered financial institutions to establish, document, and maintain programs as an DATES: 1 Public Law 91–508, as amended and codified at 12 U.S.C. 1829b, 12 U.S.C. 1951–1959 and 31 U.S.C. 5311–5332. Language expanding the scope of the Bank Secrecy Act to intelligence or counterintelligence activities to protect against international terrorism was added by section 358 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107–56. PO 00000 Frm 00151 Fmt 4703 Sfmt 4703 aid in protecting and securing the U.S. financial system. Title: Imposition of Special Measure against Banco Delta Asia, including its subsidiaries Delta Asia Credit Limited and Delta Asia Insurance Limited, as a financial institution of primary money laundering concern. Office of Management and Budget (‘‘OMB’’) Control Number: 1506–0045. Abstract: FinCEN is issuing this notice to renew the OMB control number for the imposition of a special measure against Banco Delta Asia, including its subsidiaries Delta Asia Credit Limited and Delta Asia Insurance Limited, as a financial institution of primary money laundering concern pursuant to the authority contained in 31 U.S.C. 5318A. Current Action: Renewal without change for existing proposed regulations. Type of Review: Extension of a currently approved information collection. Affected Public: Businesses and certain not-for-profit institutions. Burden: Estimated Number of Respondents: 5,000. Estimated Number of Responses: 5,000. Estimated Number of Hours: 5,000. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Records required to be retained under the Act must be retained for five years. Generally, information collected pursuant to the Act is confidential but may be shared as provided by law with regulatory and law enforcement authorities. Request for Comments Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, E:\FR\FM\26JYN1.SGM 26JYN1

Agencies

[Federal Register Volume 81, Number 143 (Tuesday, July 26, 2016)]
[Notices]
[Pages 48885-48886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17615]



[[Page 48885]]

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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