2017 Legislative & Regulatory Priorities Julie L. Heckman Executive Director American Pyrotechnics Association

January 30, 2017, Executive Order Sec. 2, Titled “Reducing Regulation and Controlling Regulatory Costs. In essence a “freeze” on new regulations.

Interim guidance was issued by the White House on February 2, 2017 For every proposed or newly promulgated regulation an Agency must identify 2 existing regulations to be repealed. The total incremental cost of all new regulations, including repealed regulations, to be finalized in 2017 shall be no greater than zero. Any new incremental costs associated with new regulations shall be offset by the elimination of existing costs associated with at least 2 prior regulations.

Which New Regulations are Covered? The EO applies to FY2017 and only to “significant” regulatory actions between January 20 and September 30, 2017. Includes significant final regulations for which agencies issued a NPR before noon on Jan. 20. Applies to significant guidance documents as well. Does not apply to regulatory actions by independent agencies (e.g. CPSC).

Which Existing Regulatory Actions, if Repealed or Revised, would be Considered Deregulatory Actions? Any existing regulatory action that imposes costs and the repeal or revision will produce verifiable savings may qualify. Meaningful burden reduction through the repeal or streamlining of mandatory reporting, recordkeeping or disclosure requirements may also qualify. Agencies should confirm they will continue to achieve their regulatory objectives after the deregulation action is undertaken.

Additional Clarifications Regulations issued before January 20, 2017 “that are vacated or remanded by a court” generally do NOT count as regulations that may be repealed in exchange for a new one. However, regulations that are overturned by Congress under the Congressional Review Act may “generally” count. The guidance allows for a waiver from the EO for regulations that address “critical” health, safety or financial matters.

Unintended Consequences of the EO During this transition period, several agencies have implemented a “gag order”. Communications with industry are very strained and will remain until key political positions are staffed and the agencies feel comfortable that any actions taken / discussed support the spirit of the EO and support President Trump’s “business friendly” directive.

Hazardous Materials Burdensome Regulations for Repeal or Reform Streamline Processing of Special Permits & Approvals. Redundant Vetting and Credentialing. Redundant Motor Carrier Safety Fitness Standards. Hazard Communication Simplification – Simplify Class 1 placarding.

Rescind FMCSA’s Safety Fitness Determination NPR APA, along with 25 other trade associations and 25+ state and regional associations have met with the PTT and submitted a letter to Sec. Chao to rescind the SFD proposed rule. Under the proposed SFD rule, carriers will no longer be rated as Satisfactory, Conditional, or Unsatisfactory but rather “fit” or “unfit”. The proposed methodology utilizes the flawed CSA SMS data and scores. Reform of CSA / SMS process was mandated by Congress.

Regulations / Legislation We Are Supporting Partnering with TRALA to obtain relief from FMCSA’s Electronic Logging Device (ELD) Mandate for short-term rental trucks (rentals <30 days). PHMSA HM-215N rulemaking to harmonize U.S. requirements for shipping of hazardous materials with global standards that became effective January 1, 2017.

Briefing Document for Congressional Staff Congressional staff requested a briefing document to help bring new staffers and MoC up-to-date on hazardous materials transportation key issues: Preemption – to ensure that state & local regs do not impede interstate commerce. Special Permits & Approvals Fees – preventing increase in HM registration costs.

Hill Briefing Continued Programmatic Authority: PHMSA has unique expertise and preeminent authority to regulate hazardous materials transportation, while other agencies (e.g., OSHA, DHS) have an interest. OSHA tried to exercise authority over container labelling under GHS and DHS oversees a wide range of security issues related to hazmat.

More. . . . International Affairs. PHMSA is mandated by Congress under Section 5120 of the HMTA to be the lead US agency at international forums that harmonize global standards for the safe & secure transport of hazardous materials – including the U.N. Committee of Experts on the Transport of Dangerous Goods.

More . . . Background Checks. Transporters, distributors and end users of hazardous materials are subject to a myriad of regulations to ensure these shipments are secure: CFATS TWIC CDLs with HM endorsement

What Will Happen with Other Recently Issued Regulations? Entry-Level Driver Training Requirements National Drug & Alcohol Testing Clearing House CSA Hours-of-Service (34hour restart) Pre-employment Screening Program (driver inspections) ELD mandate

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