Detailed Information on the
Hazardous Materials Transportation Safety Assessment

Develop a strategic plan for the program that ties to DOT and PHMSA strategic plans and goals.

Schedule a comprehensive program evaluation.

Complete first components of the program evaluation--comparison with other programs and assessment of effectiveness-- in FY 08

Develop an efficiency measure related to the processing of exemption review process.

Measure: Percent of incident reports filed electronically

Explanation:Electronic filing reduces costs through eliminating the need for data entry

Measure: Percentage of non-compliant reinspections

Explanation:

Measure: Number of serious hazardous materials incidents in transportation

Explanation:

Measure: Percentage of Special Permit Applications Completed within 120 days. (New measure, added February 2008)

Explanation:PHMSA maintains an information system to monitor the processing of special permit applications. Most special permits require minimal work before resolution (e.g., renewals of existing special permits, or extension of an existing special permit to a new holder.) Applications for a new special permit, or a request to modify an existing special permit, require more scrutiny and study, and thus take longer to issue. To track customer service, Congress requires that PHMSA publish a list of special permits that have been pending for 180 days or more. As a measure of efficiency and customer service, PHMSA is now tracking new and modified special permit applications that are completed in 120 days or less.

Is the program purpose clear?

Explanation: The purpose of the program, as stated in its mission statement, "is to minimize the likelihood of and provide adequate protection against the risks to life and property inherent in the transportation of hazardous material (hazmat) in commerce through regulation and enforcement." The Federal Hazardous Materials Transportation Act outlines the same purpose for the program.

Evidence: 49 USC 5101; Office of Hazardous Materials Safety (OHMS) website: http://hazmat.dot.gov/contact/about.htm

Does the program address a specific and existing problem, interest, or need?

Explanation: The OHMS program, within the Pipeline and Hazardous Materials Safety Administration (PHMSA), addresses a specific problem: minimizing the risk associated with the transport of hazardous materials. The frequency of hazardous material shipments and the accidents/incidents associated with those shipments demonstrates a need for Federal regulation of the transportation of hazardous materials. In 1998, OHMS estimated that there were over 800,000 hazardous material shipments per day. In 2004, OHMS reports that there were 14,515 incidents associated with the transportation of hazardous materials, including 433 serious incidents.

Evidence: Hazardous Materials Shipments, October 1998, (http://hazmat.dot.gov/pubs/hms/hmship.pdf), currently being updated; Ten Year Hazardous Materials Incidents Data: http://hazmat.dot.gov/pubs/inc/data/tenyr.pdf

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: The OHMS program design avoids duplication of efforts at all levels of government. Within the Department of Transportation (DOT), OHMS issues all transportation related hazmat regulations; no other DOT mode has this responsibility. OHMS's enforcement responsibility is limited to packaging manufacturers, retesters and reconditioners, and multimodal shippers of hazardous materials. Hazmat enforcement responsibilities related to transportation carriers are delegated to the Federal Aviation Administration (FAA), Federal Railroad Administration (FRA) and Federal Motor Carrier Safety Administration (FMCSA). OHMS also works with other Federal agencies responsible for hazmat handling at fixed facilities, Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to avoid duplication. Finally, State and local agencies are responsible for local planning and incident response, not DOT. Federal hazmat law preempts non-Federal actions, so non-Federal entities do not duplicate Federal efforts.

Evidence: 49 CFR Part 1 delegates authority for regulations to PHMSA and enforcement to DOT modal administrations

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: No program evaluations or reviews have identified program design flaws that would limit the program's effectiveness or efficiency. For instance, the program review completed in 2000 identified improvements that could be made within the program framework, but did not suggest that an alternate mechanism would be more effective or efficient.

Evidence: Department Wide Program Evaluation of the Hazardous Materials Transportation Programs (http://hazmat.dot.gov/pubs/reports/hmpe_report.pdf)

Is the program design effectively targeted so that resources will address the program's purpose directly and will reach intended beneficiaries?

Explanation: OHMS provides a benefit to the general public through its regulation all of hazmat transportation and enforcement oversight of and outreach to hazardous materials shippers and manufacturers of hazmat packaging. OHMS lacks an overarching analytically-driven process to allocate resources among its regulations, outreach, or enforcement activities to achieve its intended outcomes. Within each programmatic area (regulatory, enforcement, outreach) OHMS targets budgetary resources according to changes in demand from the regulated community or OHMS's perceived risk, but OHMS cannot demonstrate that the overall blend of activities is targeted effectively to reach the highest practicable percentage of targeted beneficiaries.

Evidence: PHMSA FY 2006 Budget Submission to Congress p. 95-102; Exhibit III-B Justification Narrative for Hazardous Materials Safety Expansion of Hazmat Field Offices

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The Hazardous Materials Safety long term goal is the reduction in serious hazardous materials incidents. Reducing serious incidents reflects the overall program purpose of reducing deaths, injuries, property damage and economic disruptions from hazardous materials incidents. The performance measure for the long term goal is the number of serious hazardous materials transportation incidents. Serious hazardous materials incidents are a comprehensive measure for the success for this performance goal because the definition of serious incident involves a fatality, evacuation of 25 or more persons, closure of major transportation artery, deviation of aircraft flight plan or operation, or release of radioactive, severe marine pollutant or bulk quantity of hazardous material.

Evidence: DOT Strategic Plan (www.dot.gov/stratplan2008/strategic_plan.htm)

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: The Hazardous Materials Safety target is to reduce the number of serious hazardous materials incidents to 488 by 2008. Annual targets are developed to evaluate progress toward the long-term target. While the program has baseline data and a target for its long term measure, DOT has identified the target as one that is not ambitious and will be rebaselined in the 2007 Budget process.

Evidence: DOT Strategic Plan (www.dot.gov/stratplan2008/strategic_plan.htm ); DOT 2007 Performance Budget Instructions for OST Submission

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation: The annual performance measure is the number of serious hazardous materials incidents in transportation, the same as the long term performance measure. Another annual performance measure is the percentage of noncompliant reinspections. Reducing noncompliance of reinspected entities is considered a proxy for measuring the effectiveness of the enforcement program. The program's efficiency measure is the percent of incident reports filed electronically. Electronic filing is expected to reduce costs and provide faster access to users and better quality data. The program will work with OMB to develop an additional efficiency measure related to the processing of exemption requests.

Evidence: PHMSA FY 2006 Budget Submission to Congress, p. 95; Research and Special Programs Administration (RSPA) FY2005 Budget Submission, p. 52

Does the program have baselines and ambitious targets for its annual measures?

Explanation: The program collects data on hazardous materials incidents, and applies a definition of serious incidents to calculate the baseline. Annual targets are developed to evaluate progress toward the long-term target. While the program has baselined and targets for its annual measures, DOT has identified these as ones that are not ambitious and will be rebaselined in the 2007 Budget process.

Evidence: PHMSA FY 2006 Budget Submission; DOT PAR: www.dot.gov/perfacc2004/performancereport.htm; DOT 2007 Performance Budget Instructions for OST Submission

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: While OHMS has responsibility for developing all regulations for hazmat transportation, program partners from the other DOT modal administrations (FAA, FMCSA, FRA) share responsibility for enforcement of those regulations. Since each of these modes contributes to the serious incident measure, the efforts of all of these partners directly contributes to DOT's safety goals of reducing deaths, injuries and property damage from hazardous materials transportation incidents and compliance with hazardous materials shipment regulations.

Evidence: 49 CFR Part 1. Delegation of enforcement authority to Operating Administrations; FAA-Office of Security and Hazardous Materials (ash.faa.gov/Hazmat.asp); DOT Performance and Accountability Report (PAR): www.dot.gov/perfacc2004/performancereport.htm

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: There have not been any recent independent program evaluations conducted by the private sector, the DOT Inspector General (IG), Government Accountability Office (GAO), or the National Transportation Safety Board (NTSB). OHMS does not have a plan to conduct program reviews on a periodic basis, such as every two to five years. The most recent comprehensive evaluation, the DOT-Wide Hazardous Materials Program Evaluation, was completed in 2000. This report examined all components of the DOT-wide hazmat program and developed a series of recommendations to improve the integration and performance of those components.

Evidence: Department Wide Program Evaluation of the Hazardous Materials Transportation Programs (http://hazmat.dot.gov/pubs/reports/hmpe_report.pdf)

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: PHMSA submitted a FY 2006 performance based budget request to Congress that demonstrated the relationship between program funding levels and the annual and long term performance measures. In addition, the hazmat program piloted marginal cost analysis in the FY 2006 budget request. Lastly, the budget requests for hazmat programs in FAA, FRA, and FMCSA also tied hazmat funding to DOT's overall hazmat safety goal.

Evidence: PHMSA FY 2006 Budget Submission to Congress, p. 95-102; FAA, FRA, and FMCSA FY 2006 Congressional Justifications

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: The program has both long-term and annual performance goals, but does not have a current strategic plan. There is a statement of work and funding allocated for development of an OHMS strategic plan. Once a strategic plan is completed, OHMS will identify and address any strategic planning deficiencies.

Evidence: Volpe Project Plan Agreement PH-A3

Are all regulations issued by the program/agency necessary to meet the stated goals of the program, and do all regulations clearly indicate how the rules contribute to achievement of the goals?

Explanation: OHMS's regulatory program design employs a risk based management approach to ensure that hazmat regulations achieve program goals. OHMS's regulatory program conducts research, risk assessments, and policy development and also outreaches to Federal, State, and local stakeholders to seek broad policy input in selecting priorities. To identify and address regulatory gaps, OHMS incorporates legislative mandates and third-party independent recommendation from the NTSB, DOT IG, and the GAO into its regulations. OHMS minimizes superfluous regulations by promulgating approved exemptions and developing amendments so existing regulations are not obsolete.

Evidence: Through examples, the following list illustrates how OHMS designs its regulations to meet the goals of the program: HM-213B NPRM on wetlines on cargo tanks (http://hazmat.dot.gov/regs/rules/final/69fr/docs/69fr-78375.pdf); HM-224E interim final rule on lithium batteries: (http://hazmat.dot.gov/regs/rules/final/69fr/docs/69fr-75207.pdf); DOT Guidance and Regulatory Checklist: OST Docket No. 58 Adoption of Regulatory policies and procedures

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: OHMS maintains the Hazardous Materials Information System (HMIS) which tracks all hazmat transportation incident data, including serious incidents. HMIS data is made available to Federal agencies, State and local governments, and private emergency response organizations. OHMS draws on this data to track program performance, plan regulatory and outreach initiatives, provide a statistical basis for research and analysis, target entities for enforcement efforts, and review applications for exemption renewals. In addition to HMIS, OHMS collects data on the number and types of requests for clarification or assistance. This data is analyzed for indications that a rule may need to be amended.

Evidence: Incident data: hazmat.dot.gov/pubs/inc/data/2004/2004frm.htm; Reliability and use of HMIS data in the DOT PAR FY2004, Appendix C p. 272: www.dot.gov/perfacc2004/pdf/entireparreport.pdf

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: Within PHMSA, the Associate Administrator and the Directors of all OHMS program offices have clearly defined performance standards included in their performance plans that tie to DOT strategic goals. Program partners (FAA, FRA, and FMCSA) all report on serious incidents which directly contribute to the performance goal.

Evidence: Performance plans of the Associate Administrator and the Deputy Associate Administrator for Hazardous Materials Safety

Are funds (Federal and partners') obligated in a timely manner and spent for the intended purpose?

Explanation: Funds are obligated and spent for the intended purpose in a timely manner. At the end of FY 2004, less than 2% of three-year funds remained unobligated. The program continues to receive a clean audit as part of the consolidated DOT IG audit.

Evidence: End of year fund status report DOT IG Audit of Financial Statements: www.oig.dot.gov/item.jsp?id=1438

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: The program has procedures to achieve program efficiencies. In 2004, OHMS conducted a streamlined competitive sourcing study which resulted in a performance decision to have the work performed in-house. OHMS is utilizing a performance based contract to develop a database that will enable shippers and manufacturers to submit incident reports electronically. The percent of incident reports submitted electronically will be used as an efficiency measure. The database is expected to reduce OHMS data entry costs, better target OHMS enforcement efforts, and provide efficiencies for the companies reporting the incidents. The program will work with OMB to develop an additional efficiency measure related to the processing of exemption requests.

Evidence: Exhibit 300 for Intermodal Hazmat Database System; RSPA FY2004 Competitive Sourcing Plan

Does the program collaborate and coordinate effectively with related programs?

Explanation: The program coordinates extensively with its partners in the other DOT modal administrations, as well as with related programs outside of DOT. Within DOT, the program jointly develops regulatory agendas with the partner modes, including coordinating the necessary background research. OHMS also participates in a number of international forums to harmonize the US Hazardous Materials Regulations (HMR) with international standards and regulations. OHMS also works with other Federal agencies like OSHA, EPA, and ATF.

Evidence: PHMSA and FAA Air-Specific Hazardous Materials Priorities, March 21, 2005; HMPE meeting agenda and meeting summary; International Standards portion of OHMS website: http://hazmat.dot.gov/regs/intl/intstandards.htm

Does the program use strong financial management practices?

Explanation: OHMS develops an annual expenditure plan by program element to allocate and manage the program expenditures. Using data from DELPHI (DOT's accounting system), OHMS tracks monthly program expenditures and reconciles that data with its expenditure plan and procurement requests.

Evidence: Expenditure plan; Management Accounts Structure; Status of Funds report

Has the program taken meaningful steps to address its management deficiencies?

Explanation: OHMS is addressing management deficiencies by developing a strategic plan and addressing workforce planning. OHMS did not previously have a strategic plan. OHMS continues to use workforce planning to address present and future staffing needs. In December 2004, new legislation established PHMSA and also created a new position: Chief Safety Officer. These organizational changes have sharpened OHMS's traditional safety focus.

Evidence: P.L. 108-426; Workforce planning example: fields expansion QAv2.wpd; Volpe Project Plan Agreement PH-A3

Did the program seek and take into account the views of all affected parties (e.g., consumers; large and small businesses; State, local and tribal governments; beneficiaries; and the general public) when developing significant regulations?

Explanation: OHMS involves affected parties throughout the development of its regulations. OHMS obtains input from affected parties through notices of proposed rulemaking (NPRM) and Section 610 small business reviews. In addition, outreach includes posting information on the OHMS website, invitational travel to bring in affected populations, work with tribal governments, industry meetings, workshops, and public meetings. All significant rulemaking are developed according to OMB and DOT standards. Interim rulemakings are issued rarely, and only when a risk has been identified that needs to be addressed immediately.

Evidence: HM-213B NPRM on wetlines on cargo tanks: http://hazmat.dot.gov/regs/rules/final/69fr/docs/69fr-78375.pdf; HM-224E interim final rule on lithium batteries: http://hazmat.dot.gov/regs/rules/final/69fr/docs/69fr-75207.pdf; Notice announcing section 610 small business review of Part 173 of the regulations: http://hazmat.dot.gov/regs/rules/final/70fr/docs/70fr-7670.pdf

Did the program prepare adequate regulatory impact analyses if required by Executive Order 12866, regulatory flexibility analyses if required by the Regulatory Flexibility Act and SBREFA, and cost-benefit analyses if required under the Unfunded Mandates Reform Act; and did those analyses comply with OMB guidelines?

Explanation: All OHMS regulations comply with OMB guidelines for regulatory impact analysis, regulatory flexibility analysis, and analysis based on Unfunded Reform Act. OHMS reviews portions of its program annually to ensure compliance with SBREFA.

Evidence: HM-213B wetlines regulatory evaluation: (http://dmses.dot.gov/docimages/pdf91/309693_web.pdf); HM-232 security plan final rule regulatory evaluation (http://dmses.dot.gov/docimages/pdf85/239987_web.pdf); DOT Regulatory guidance: OST Docket No. 58 Adoption of Regulatory policies and procedures

Does the program systematically review its current regulations to ensure consistency among all regulations in accomplishing program goals?

Explanation: As a result of recent regulatory reviews, OHMS has revised regulations related to the transportation of infectious substances, radioactive materials, and hazardous materials in cargo tank motor vehicles. The program initiates regulatory reviews in response to: (1) petitions for rulemaking from the regulated industry; (2) enforcement issues identified by PHMSA or operating administration enforcement staff; (3) inquiries from the public or requests for written interpretations that indicate a widespread problem related to the clarity or consistency of the regulations; (4) revisions to international standards that affect the HMR; (5) statutory requirements; or (6) catastrophic events resulting from the transportation of hazardous materials (e.g. oxygen canisters on ValuJet crash). The goal has been to keep the regulations as streamlined as possible to enable easier compliance and more efficient enforcement.

Evidence: Analysis Required by Section 610 of the Regulatory Flexibility Act Impact of Part 171 of the HMR on Small Entities; HM-226 infectious substances final rule: http://hazmat.dot.gov/regs/rules/final/67fr/docs/67fr-53118.pdf

Are the regulations designed to achieve program goals, to the extent practicable, by maximizing the net benefits of its regulatory activity?

Explanation: OHMS's regulatory design is effective at maximizing net benefits. For all new regulations, OHMS evaluates the costs and benefits of each alternative before deciding on a course of action. Information collection requirements are reviewed on a regular basis to reduce the compliance burden. OHMS's exemptions process allows companies to pursue an alternative method for compliance. If a shipper or manufacturer develops a more cost-effective means of meeting the program's safety standards, then they may be granted an exemption from the rule. All other shippers or manufacturers who choose to utilize the new product may also be granted an exemption. This is a cost effective process for encouraging companies to develop better methods for achieving hazmat safety.

Evidence: HM-229 Incident reporting final rule: http://hazmat.dot.gov/regs/notices/nprm/68fr-67745.pdf; HM-224E interim final rule on lithium batteries: http://hazmat.dot.gov/regs/rules/final/69fr/docs/69fr-75207.pdf OHMS Exemption process: http:/hazmat.dot.gov/exempapp/approvals/exsys.htm

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: Over the past five years OHMS has met its annual performance goals, which track progress toward meeting the long-term goal of 488 serious incidents in 2008. However, DOT has required PHMSA to rebaseline the targets in the 2007 Budget because the targets "have been easily surpassed ... and does not provide usable performance information." It will be easier to assess progress once the targets are rebaselined.

Evidence: PHMSA FY 2006 Budget Submission to Congress, p. 95; DOT PAR FY 2004: www.dot.gov/perfacc2004/performancereport.htm; FY 2007 DOT Performance Budget Instructions for OST Submission

Does the program (including program partners) achieve its annual performance goals?

Explanation: Over the past five years OHMS has met its annual performance goals. However, DOT has required PHMSA to rebaseline the targets for the serious incident measure in the 2007 Budget because the targets "have been easily surpassed ... and does not provide usable performance information." It will be easier to assess progress once the targets are rebaselined.

Evidence: PHMSA FY 2006 Budget Submission to Congress, p. 95; DOT PAR FY 2004: www.dot.gov/perfacc2004/performancereport.htm; FY 2007 DOT Performance Budget Instructions for OST Submission

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: OHMS's exemption process provides efficiencies and cost-savings for both the regulated community and the Federal government. If a shipper or manufacturer develops a more cost-effective means of meeting the program's safety standards in a rule, then that company can apply for an exemption. Once an exemption is approved, all other manufacturers or shippers can also use the exemption. IT improvements have also lead to improved efficiencies in OHMS program operation. The new system reduces duplicate inspections and allows improved targeting of inspections. This will reduce the number of inspector visits to out-of-business facilities from 10% of visits to 5% over a five year transition period--equivalent to 90 additional inspections a year.

Evidence: Exhibit 300 for the Intermodal Hazmat Database System; PHMSA FY 2006 Budget Submission to Congress, p. 97; OHMS Exemption process: http://hazmat.dot.gov/exempapp/approvals/exsys.htm

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: The Hazmat program compares favorably to programs in other countries as well as other DOT safety programs. The U.S. hazmat program is a model for many governments throughout the world and assists many governments and the United Nations in improving their safety programs. In addition, the Emergency Response Guidebook developed by OHMS is utilized by Canada and Mexico and has been published in more than 17 separate languages. OHMS compares favorably to other agencies like the FMCSA and the Office of Pipeline Safety in achieving DOT's safety performance goal.

Evidence: OHMS International Standards website: hazmat.dot.gov/regs/intl/intstandards.htm; Emergency Response Guidebook: hazmat.dot.gov/pubs/erg/gydebook.htm; DOT PAR 2004: www.dot.gov/perfacc2004/performancereport.htm

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: There have been no recent independent program evaluations conducted to confirm that the program is achieving results. The 2000 Department-wide program evaluation indicated that the OHMS program is effective, noting that "DOT's hazardous materials program works reasonably well but needs to be improved." However, the report also stated that, "the Department is hampered by the lack of reliable, timely, and accurate information with which to evaluate program effectiveness."

Evidence: Department Wide Program Evaluation of the Hazardous Materials Transportation Programs (http://hazmat.dot.gov/pubs/reports/hmpe_report.pdf)

Were programmatic goals (and benefits) achieved at the least incremental societal cost and did the program maximize net benefits?

Explanation: OHMS conducts regulatory impact analysis (RIA) and look back studies to determine if the implemented regulations maximize net benefits at the least incremental societal cost. In addition, the program looks back every three years and revises its information collection rules to identify ways to lower the burden. Lastly, approved exemptions are periodically incorporated into regulations, lowering the costs of compliance.

Evidence: Regulatory Impact Analysis of Part 171 of the HMR; Analysis Required by Section 610 of the Regulatory Flexibility Act - Impact of Parts 174 and 177 of the HMR on Small Entities; Look back study on OHMS information collections; Incorporation of exemptions final rule: http://hazmat.dot.gov/regs/rules/final/70fr/docs/70fr-3302.pdf