Issue link: https://read.dmtmag.com/i/585738
16 Oil Prophets Mark S. Morgan PMAA Regulatory Counsel Washington, D.C. - The U.S. DOT's Pipeline and Hazardous Material Safety Administration (PHMSA) recently issued a controversial new regulatory interpretation that will likely change the way petroleum marketers placard (mark) cargo tank and transport vehicles. Until publication of the new interpretation in July, it was permissible under the U.S. DOT hazardous material regulations (HMR) to mark cargo tank vehicles containing diesel fuel with the UN1203 placard ordinarily used for gasoline instead of the NA1993 or UN 1202 diesel fuel placards. Section 40 CFR 172.336(c) of the HMR permits this by allowing marketers to placard (mark) cargo tanks transporting petroleum distillates to the lowest flashpoint of any single product in the shipment. The placard exception makes sense because emergency responders largely use the same techniques to fight gasoline and diesel fuel spills from cargo tank vehicles so there is no safety need to differentiate between the two fuels. Marketers like placarding to the lowest flashpoint because drivers are not required to change placards between alternating straight loads of diesel fuel and gasoline. Also, it avoids having to use multiple placards on split loads of gasoline and diesel fuel. Only the UN1203 placard is required for split loads of both diesel fuel and gasoline shipped in separate compartments instead of using an additional NA1993 placard for the compartment(s) containing diesel fuel. This valuable time saving exception in the HMR led many marketers to switch from interchangeable UN1203 and NA1993 placards to a single permanently mounted UN1203 placard. Marketers, drivers and enforcement authorities followed and understood the exception for nearly 20 years without concern or confusion. That all changed this July when PHMSA published an interpretative letter that significantly narrowed the placarding exception under Section 172.366(c). The new PHMSA interpretation was written in response to an inquiry made by a state enforcement officer. The new interpretation preserves the exception allowing placarding to the lowest flashpoint, but now restricts its use to simultaneous shipments of both gasoline and diesel fuel in separate compartments of the same cargo tank vehicle. In other words, straight shipments of diesel fuel can no longer be marked with the UN1203 placard for gasoline but must be marked with either the NA1993 or UN1202 placards for diesel fuel. As a result, many marketers may be forced to replace permanent cargo tank placard holders with interchangeable holders at a cost of approximately $400 to remain in compliance with the new PHMSA interpretation. Also, driver's schedules will be slowed down to allow for time to change placards between alternating straight runs of diesel fuel and gasoline, a task that can take up to 15 minutes. Marketers' risk of liability for non-compliance will be greater because placards will no longer be permanently affixed to cargo tanks but changed by drivers before each shipment. To say that the new interpretation of Section 172.366(c) has caused confusion and concern among marketers, drivers and enforcement officials is an understatement. The new interpretation is such a significant change to longstanding regulatory and enforcement policy that few know how to respond to it. Many state and local enforcement jurisdictions are either unaware of the change or holding off on enforcement until more clarification from PHMSA is provided. Some jurisdictions think it is a mistake and want a correction while others are prepared to implement it. The association that represents state and local enforcement authorities, the Commercial Vehicle Safety Alliance REGULATORY CORNER U.S. DOT Makes Surprise Changes to Long