Liability Insurance Session IV Training

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Transcript Liability Insurance Session IV Training

Federal Motor Carrier Safety Administration

2010 COHMED Conference Training Session IV

James O. Simmons Chief, Hazardous Material Division January 25, 2010

U.S. Department of Transportation

Federal Motor Carrier Safety Administration

What will be covered in this Session?

• Prior to April 16, 2009 • Regulations as we knew it • The “misconception” of the exception • FMCSA action • Oh Boy here it comes!!!

• The Aftermath • Where are we today and what did we learn?

U.S. Department of Transportation

Federal Motor Carrier Safety Administration

Prior to April 16, 2009

• HM transported w/o correct amount of insurance • 49 CFR 387 was not uniformly applied and parts were misinterpreted • Over 12,000 motor carriers was not identified as having the correct amount of insurance in L&I • 49 CFR 173.220(g) was hailed King of all regulation U.S. Department of Transportation

Federal Motor Carrier Safety Administration

Regulation as we knew it

• 49 CFR 387.9

• 49 CFR 171.8

• 49 CFR 172.101

• 49 CFR 173.220(g) U.S. Department of Transportation

Federal Motor Carrier Safety Administration

49 CFR 387.9

• The minimum levels of financial responsibility referred to in § 387.7

of this subpart are hereby prescribed as follows: (3) For-hire and Private (In interstate or foreign commerce, in any quantity; or in intrastate commerce, in bulk only; with a gross vehicle weight rating of 10,001 or more pounds). Oil listed in 49 CFR 172.101

; hazardous waste, hazardous materials, and hazardous substances defined in 49 CFR 171.8 and listed in 49 CFR 172.101

, but not mentioned in (2) above or (4) below requires $1,000,000 U.S. Department of Transportation

Federal Motor Carrier Safety Administration

49 CFR 171.8

Hazardous material

means a substance or material that the Secretary of Transportation has determined is capable of posing an unreasonable risk to health, safety, and property when transported in commerce, and has designated as hazardous under section 5103 of Federal hazardous materials transportation law (49 U.S.C. 5103). The term includes hazardous substances, hazardous wastes, marine pollutants, elevated temperature materials,

materials designated as hazardous in the Hazardous Materials Table (see 49 CFR 172.101),

and materials that meet the defining criteria for hazard classes and divisions in part 173 of subchapter C of this chapter.

U.S. Department of Transportation

Federal Motor Carrier Safety Administration

49 CFR 172.101

• Vehicle, flammable gas powered, 9, UN3166 • Vehicle, flammable liquid powered, 9, UN3166 U.S. Department of Transportation

Federal Motor Carrier Safety Administration

49 CFR 173.220(g)

Exceptions.

Except as provided in paragraph (e)(2) of this section, shipments made under the provisions of this section— (1)Are

not subject

to any other requirements of this

subchapter

, for transportation by motor vehicle or rail car; and (2) Are

not subject

to the requirements of subparts D, E and F (marking, labeling and placarding, respectively) of part 172 of this subchapter or § 172.604 of this subchapter (emergency response telephone number)… U.S. Department of Transportation

Federal Motor Carrier Safety Administration

The “Misconception” of the Exception

• The exception, 49 CFR § 173.220(g) under the Hazardous Materials Regulations, which excuses the carrier from the marking, labeling, and shipping paper requirements of the HMR, Carrier Safety Regulations (FMCSR).

does not

extend to the insurance requirements under the Federal Motor • Motor carriers that transport vehicles, defined as HM in 49 CFR § 171.8 and listed in 49 CFR household good movers). § 172.101, are considered a HM motor carrier, and must maintain the minimum level of financial responsibility regardless of the type of operation (i.e. car haulers, U.S. Department of Transportation

Federal Motor Carrier Safety Administration

Now hold on a Minute!!!

• Interpretation of Tow away Operations under emergency conditions • Intrastate transportation of Hazardous Materials U.S. Department of Transportation

Federal Motor Carrier Safety Administration

FMCSA Actions

• Gathered and Analyzed Data • Policy to Field • Prepared notification to affected industry U.S. Department of Transportation

Federal Motor Carrier Safety Administration

Oh Boy!! Here it comes

• 3½ weeks of phone calls • IT system overload • Additional staff burden • Clarification to Senior Management of actions taken U.S. Department of Transportation

Federal Motor Carrier Safety Administration

The Aftermath

• Worked with Associations • Uniform Enforcement Policy • New process for industry notification U.S. Department of Transportation

Federal Motor Carrier Safety Administration

Where are we today and what did we learn?

• IT system should be updated • Regulation should be updated • Updated and uniform policy U.S. Department of Transportation

Federal Motor Carrier Safety Administration

Questions

U.S. Department of Transportation

Federal Motor Carrier Safety Administration

James O. Simmons Division Chief Hazardous Materials Division 202-493-0496 [email protected]

U.S. Department of Transportation