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1975/01/03 HR15223 Transportation Safety Act of 1974 (1)
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1975/01/03 HR15223 Transportation Safety Act of 1974 (1)
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White House Records Office: Legislation Case Files
Legislation Case Files
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Department of Transportation. National Highway Traffic Safety Administration. 1970-
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The original documents are located in Box 21, folder "1975/01/03 HR15223 Transportation
Safety Act of 1974 (1)" of the White House Records Office: Legislation Case Files at the
Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 21 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
ACTION
seltil ,E
THE WHITE HOUSE
Last Day: January 4
WASHINGTON
January 2, 1975
Poted 1/4/75
MEMORANDUM FOR
THE PRESIDENT
archurs 1/6/75
FROM:
KEN COLE
SUBJECT:
Enrolled Bill H.R. 15223
Transportation Safety Act of 1974
Attached for your consideration is H.R. 15223, sponsored
by Representative Staggers, which:
-- Authorizes appropriations of $7 million for fiscal
year 1975 and expands the authority of the Secretary
of Transportation to regulate the transportation
of hazardous materials;
-- authorizes appropriations of $35 million for fiscal
year 1975 to carry out the Federal Rail Safety Act
of 1970;
-- establishes the National Transportation Safety Board
as an independent agency and expands its powers; and
-- provides for concurrent submission of the National
Transportation Safety Board's budget and legislative
recommendations to the Congress.
OMB recommends approval and provides additional background
information in its enrolled bill report (Tab A).
Max Friedersdorf (Loen) and Phil Areeda both recommend
approval. Paul Theis has approved the text of the proposed
signing statement.
RECOMMENDATION
That you sign H.R. 15223 (Tab C)
Signing Statement (Tab B)
Approve MR4
Disapprove
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 3 0 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 15223 - Transportation Safety
Act of 1974
Sponsor - Rep. Staggers (D) West Virginia
Last Day for Action
January 4, 1975 - Saturday
Purpose
Authorizes appropriations of $7 million for fiscal year 1975
and expands the authority of the Secretary of Transportation
to regulate the transportation of hazardous materials; autho-
rizes appropriations of $35 million for fiscal year 1975 to
carry out the Federal Rail Safety Act of 1970; establishes
the National Transportation Safety Board (NTSB) as an inde-
pendent agency and expands its powers; and provides for con-
current submission of NTSB's budget and legislative recommenda-
tions to the Congress.
Agency Recommendations
Office of Management and Budget
Approval
Department of Transportation
Approval
National Transportation Safety Board
Approval
Atomic Energy Commission
Approval
Department of Justice
Defers
Department of Defense
Defers to OMB
Department of Labor
2
Discussion
In its original version, H.R. 15223 was a much broader bill,
containing many objectionable provisions relating to the
transportation of hazardous materials, to rail safety, and to
establishing the NTSB as an independent agency with greatly
expanded powers. After much debate within the Congress and
discussions with the executive agencies, Congress eliminated
some of those objectionable features. One key provision relating
to the NTSB was not eliminated -- the submission of its budget
and legislative recommendations to the Congress at the same time
they are sent to the President or to OMB.
The main features of the bill are described below.
Title I - Hazardous Materials
H.R. 15223 would expand DOT's authority to regulate the transporta-
tion of hazardous materials in interstate or foreign commerce.
The bill defines hazardous materials as "a particular quantity
and form of material in commerce [that] may pose an unreasonable
risk to health and safety or property," and would include, but
not be limited to, "explosives, radioactive materials, etiologic
agents, flammable liquids or solids, combustible liquids or solids,
poisons, oxidizing or corrosive materials, and compressed gases."
It would exempt firearms or ammunition from being transported for
personal use.
H.R. 15223 would extend DOT's authority to the manufacture, main-
tenance, repair and testing of containers to be used in the
transportation of hazardous materials -- a desirable improvement.
Currently, DOT's authority covers only shippers of hazardous
materials, not container manufacturers.
The bill would authorize DOT to exempt certain shippers or
manufacturers from the hazardous material regulations if their
methods result in an equal or higher degree of safety than the
regulations require. Exemptions, which would be renewable every
two years, could be issued only after public notice and an oppor-
tunity for public comment.
A provision requested by DOT would permit the use of civil
penalties for violations of hazardous material regulations.
Current law is limited to criminal penalties, which are much
harder to prosecute. Thus, shippers know that only the most
flagrant violations will usually be prosecuted. The civil
penalties will enable DOT to bring actions more frequently and
thus provide greater incentives to shippers to conform with
regulations.
3
Another desirable section removes the provision in current law
which requires mandatory delegation of the Secretary's hazardous
material authority to the modal administrations. Since many
hazardous material problems are intermodal in nature, especially
as to container manufacturers, this should result in substantial
improvement in the enforcement process. It will permit a
coordinated approach to enforcement, rather than the current
fragmented one.
The bill would also delete the current statutory definition of
combustible liquids and would authorize DOT to define, by
regulations, the flashpoint for combustible and flammable
liquids. This will allow standards which are more consistent
with existing Federal standards and with international guidelines
and will allow greater flexibility to update the standards in
response to technological development.
One objectionable provision of title I places restrictions on the
transportation of radioactive materials on passenger airplanes.
The provision would prohibit radioactive materials having a
specific activity of 0.002 microcuries per gram or greater from
being carried on passenger planes unless the material is for use
in research, medical treatment, or medical diagnosis. This
could prevent the transportation of relatively harmless materials
such as certain electronic tubes.
Another objectionable provision would permit DOT to require all
shippers and manufacturers to register every two years with
DOT and would prohibit those who are not registered from engaging
in hazardous materials activities. This would have limited
impact, however, since it would not allow DOT to suspend, revoke
or refuse to accept a valid registration, although other provisions
of the law would allow noncompliance with the regulations to be
penalized. While this authority is discretionary, rather than
mandatory, there is a great deal of pressure from Congress and
other interested parties to implement it. Its implementation
could generate substantial paperwork of little real benefit.
The title would provide that State or local laws which conflict
with the Federal laws would be preempted. Preemption would not
take place, however, if a State or local law (1) affords an equal
or greater degree of protection to the public than is afforded
by the Federal law and (2) does not unreasonably burden commerce.
This will create a substantial administrative burden.
4
The bill would also authorize DOT to suspend or restrict the
transportation of a hazardous material if it presents an imminent
hazard to the public safety. Justice objects to this provision
because it would allow DOT to represent itself in the courts,
rather than having the Attorney General do so, as is customary.
This provision is an improvement over earlier versions, however,
which would have allowed DOT to represent itself in many more
types of cases.
The bill would authorize appropriations of $7 million for this
title for fiscal year 1975. However, DOT has already received
the appropriation for its hazardous materials activities for
this year, and thus this authorization is not needed.
Title II - Rail Safety
Title II of H.R. 15223 contains a provision which limits the
amount spent for research to no more than the amount spent on
rail safety enforcement. In letters to the House Commerce and
the conference committees, DOT opposed this provision because
of the precedent it sets. However, in its views letter on the
enrolled bill, DOT points out that it will not interfere with
the rail safety program. The bill would set a bad precedent by
setting goals for the first time for staff levels of safety
personnel. In addition, those staff numbers are excessively
high.
The title would require a comprehensive report to the Congress
by March 17, 1976, on rail safety. It would authorize DOT to
impose civil penalties, in addition to the current criminal
penalties, for violations of the Railroad Accident Reports
Act.
The bill would authorize appropriations of $35 million for the
implementation of this title for fiscal year 1975. However,
DOT has already received its appropriation for rail safety
activities for this year, and thus this authorization is not
needed.
Some undesirable provisions relating to citizen suits and
petitions contained in the Senate passed version of the bill
were deleted at DOT's request.
5
Title III - National Transportation Safety Board
Title III would establish the NTSB as a completely independent
agency. Currently, it is nominally within DOT for organizational
purposes, although DOT does not perform any personnel or budget
services for NTSB. Many people, however, view the NTSB as part
of DOT, although no one appears to doubt its independence in
the areas of accident investigation and transportation safety
recommendations.
This bill would provide for a five person board to be appointed
by the President, with the advice and consent of the Senate,
with no more than three members to be of the same political
party. The present Board members would serve until the expira-
tion of their terms. It would require the NTSB to submit an
annual report to Congress and to review and report on the safety
actions of other Federal agencies. It would authorize appropria-
tions of $12 million each for fiscal years 1975 and 1976. However,
NTSB has already received its appropriation for this year, and
thus this authorization is not needed.
As originally passed by the Senate, the bill also provided for
a large expansion in NTSB's powers. In letters to the Senate
Commerce and conference committees, both OMB and DOT strongly
opposed this expansion of powers and stated a preference to leave
the NTSB within DOT. While the conference committee did not
delete Title III from the bill, it did eliminate some of the
objectionable provisions, especially those relating to authorizing
a safety advocacy role for the NTSB.
The title originally stated that a member of the Board who is
designated as chairman or vice chairman by the President, with
the advice and consent of the Senate, would serve as chairman or
vice chairman throughout his term as a Board member. This could
restrict a President's ability to designate as chairman someone
who would work well with his Administration; e.g., an outgoing
President might designate a chairman who would serve throughout
the entire term of a new President. This runs counter to the
recommendation of the first Hoover commission that the chairman
of a commission should serve at the President's pleasure. The
conference committee did amend this section to provide for two-
year terms for the chairman and vice chairman of the NTSB. While
less than we desired, this compromise does provide greater flexi-
bility than the original provision.
6
Navy, in its report to the Conferees on the enrolled bill,
stated that it objects to the NTSB authority to investigate
accidents between Navy vessels and private vessels. The
Navy pointed out that they are already authorized to investi-
gate such accidents and the authority in NTSB would be dupli-
cative. Furthermore, Navy lists other reasons they object
to NTSB authority to investigate accidents involving Navy
ships, including security considerations.
However, Navy has advised us that it hopes to work out regula-
tions with the NTSB to eliminate such duplication and Navy
defers to OMB on whether the enrolled bill should be approved.
Finally, one highly objectionable provision which remains in
the enrolled bill provides for submission of NTSB's budget
and legislative recommendations to the Congress at the same
time that they are sent to the President or to OMB. OMB
advised the conference committee that this concurrent submis-
sion proposal would "not be in accord with the President's
program, because if such "bypass" provisions were widely
adopted, they would severely limit the President's power to
present unified and coordinated budget and legislative pro-
grams. In response to this, the conference committee deleted
a provision prohibiting OMB or anyone else from "requesting"
prior submission of NTSB's budget to the President or OMB,
but left in the prohibition against "requiring" such prior
submission.
Both the House and Senate have been putting "bypass" provisions
in pending bills dealing with regulatory agencies and Govern-
ment corporations. Such provisions were included in two recent
bills which you approved (P.L. 93-463 and P.L. 93-495), which
contained features which were felt of sufficient importance
to warrant approval despite the "bypass" provisions. They are
also included in S. 3418 -- the privacy bill -- and H.R. 10710 --
the trade reform bill -- both of which are enrolled and awaiting
your action.
We have considered recommending that you disapprove this bill
because of the bypass provisions, but have decided not to do
so for the following reasons. In the overall context of a
bill which generally strengthens the Government's hazardous
materials and rail safety activities, this provision does not
seem weighty enough to warrant disapproval. Also, assuming
your approval of S. 3418 and H.R. 10710, there will be four
recent precedents for the NTSB bypass provisions -- most of
them affecting so-called independent, regulatory commissions.
7
We believe that the executive branch should continue to oppose
bypass provisions and to seek repeal of those enacted this
year. Proposals were submitted to the Congress to repeal the
bypass provisions in P.L. 93-463 and P.L. 93-495, but neither
was passed in the short time before the session ended.
Director
Enclosures
STATEMENT BY THE PRESIDENT
I am signing into law today H.R. 15223, the
Transportation Safety Act of 1974. This bill will make
revisions to laws concerning the transportation of
hazardous materials, authorize funds for rail safety
enforcement and research, and make the National
Transportation Safety Board (NTSB) a completely
independent agency.
This bill will expand the powers of the Department
of Transportation to regulate the safe transportation of
hazardous materials. While this expansion of powers goes
against my general goal of reducing Federal regulation
where possible, I recognize the problems that have existed
in the past with the handling of hazardous materials.
That concern has led me to approve the bill because of
the significant dangers associated with handling these
materials and the possible effects on people living near
transportation facilities.
I remain committed, however, to the principle of main-
taining the minimum possible Federal involvement in matters
that are best handled by State, local or private authorities,
and the elimination of unnecessary regulation. I am directing
the Secretary of Transportation to implement this bill in such
a way as to insure the public safety, while at the same time
not putting any unnecessary burden or paperwork on our Nation's
industry and trade. I think regulations on hazardous materials
can be enforced in a way to meet both these objectives.
Travel in the United States will be safer because of
Federal actions which will be taken under this new law.
However, the Congress and the Executive also have the re-
sponsibility to ensure that expenditures of the taxpayer's
2
dollars are kept to an absolute minimum and that only
the most necessary new Federal programs are pursued.
This requires the President and the Congress to carefully
review the total Federal budget and not each item separately.
H.R. 15223 requires NTSB to submit its budget and legislative
recommendations directly to the Congress. This severely
limits my ability to view these recommendations in the
context of the overall budgets and their effect on the
economy, in public borrowing, and other considerations.
Although I have signed H.R. 15223 into law because
it will improve transportation safety, I will ask Congress
to correct this unacceptable budget and legislative
submission provision.
X (om')
ok LD OL/PAT
STATEMENT BY THE PRESIDENT
I am signing into law today H.R. 15223, the Transportation
Safety Act of 1974. This bill will make revisions to laws con-
cerning the transportation of hazardous materials, authorize
funds for rail safety enforcement and research, and make the
National Transportation Safety Board (NTSB) a completely inde-
pendent agency.
This bill will expand the powers of the Department of
Transportation to regulate the safe transportation of hazardous
materials. While this expansion of powers goes against my
general goal of reducing Federal regulation where possible, I
recognize the problems that have existed in the past with the
handling of hazardous materials. That concern has led me to
approve the bill because of the significant dangers associated
possible
with handling these materials and the effects on people living
near transportation facilities. I remain committed, however,
to the principle of maintaining the minimum possible Federal
involvement in matters that are best handled by State, local or
private authorities, and the elimination of unnecessary regula-
tion. I am directing the Secretary of Transportation to imple-
ment this bill in such a way as to insure the public safety,
while at the same time not putting any unnecessary burden or
paperwork on our Nation's industry and trade. I think regulations
on hazardous materials can be enforced in a way to meet both
these objectives.
SEALE FORD LIDRARY
Travel in the United States will be safer because
of federal actions which will be taken under this new
X
law. However, the Congress and the Executive also have
the responsibility to ensure that expenditures of the
are
taxpayer's dollars is kept to an absolute minimum and
that only the most necessary new federal programs are
pursued. This requires the President and the Congress
to carefully review the total federal budget and not
X
each item separately. H.R. 15223 requires NTSB to sub-
mit its budget and legislative recommendations directly
the
to Congress. This severely limits my ability to view
X
^
these recommendations in the context of the overall
budgets and their effect on the economy, in public bor-
rowing, and other considerations.
Although I have signed H.R. 15223 into law because
it will improve transportation safety, I will ask Congress
to correct this unacceptable budget and legislative
submission provision.
STATEMENT BY THE PRESIDENT
I am signing into law today H.R. 15223, the
Transportation Safety Act of 1974. This bill will make
revisions to laws concerning the transportation of
hazardous materials, authorize funds for rail safety
enforcement and research, and make the National
Transportation Safety Board (NTSB) a completely
independent agency.
This bill will expand the powers of the Department
of Transportation to regulate the safe transportation of
hazardous materials. While this expansion of powers goes
against my general goal of reducing Federal regulation
where possible, I recognize the problems that have existed
in the past with the handling of hazardous materials.
That concern has led me to approve the bill because of
the significant dangers associated with handling these
materials and the possible effects on people living near
transportation facilities.
I remain committed, however, to the principle of main-
taining the minimum possible Federal involvement in matters
that are best handled by State, local or private authorities,
and the elimination of unnecessary regulation. I am directing
the Secretary of Transportation to implement this bill in such
a way as to insure the public safety, while at the same time
not putting any unhecessary burden or paperwork on our Nation's
industry and trade. I think regulations on hazardous materials
can be enforced in a way to meet both these objectives.
Travel in the United States will be safer because of
Federal actions which will be taken under this new law.
However, the Congress and the Executive also have the re-
sponsibility to ensure that expenditures of the taxpayer's
2
dollars are kept to an absolute minimum and that only
the most necessary new Federal programs are pursued.
This requires the President and the Congress to carefully
review the total Federal budget and not each item separately.
H.R. 15223 requires NTSB to submit its budget and legislative
recommendations directly to the Congress. This severely
limits my ability to view these recommendations in the
context of the overall budgets and their effect on the
economy, in public borrowing, and other considerations.
Although I have signed H.R. 15223 into law because
it will improve transportation safety, I will ask Congress
to correct this unacceptable budget and legislative
submission provision.
E IIL DEPART
DEPARTMENT OF THE NAVY
OFFICE OF THE SECRETARY
WASHINGTON. D. C. 20350
THE
THIRIA
December 30, 1974
Dear Mr. Ash:
Your transmittal sheet dated December 24, 1974 enclosing a facsimile of an
enrolled bill of Congress, H.R. 15223, "To regulate commerce by improving
the protections afforded the public against risk connected with the trans-
portation of hazardous materials, and for other purposes" has been received.
The Department of the Navy has been assigned the responsibility for the
preparation of a report thereon expressing the views of the Department of
Defense.
The House of Representatives passed H.R. 15223 on June 24, 1974. Thereafter,
the Senate passed H.R. 15223 on October 8, 1974 after amending it to conform
to S. 4057.
Title I of the act is essentially the same as the House-passed version of
H.R. 15223, and provides coordinated and consolidated regulatory and enforce-
ment power over the transportation of hazardous materials.
Title II of the act is concerned with increased safety on the railroads of
the United States. Title III of the act creates an independent National
Transportation Safety Board (hereafter referred to as Board) and increases
the independent Board's jurisdiction to include, inter alia , investigation
and determination of probable cause of any accident involving a vessel of
U.S. registry (including a public vessel involved in an accident with a
nonpublic vessel) when the Board determines that such investigation and
finding is in the public interest.
An investigation by the Board would duplicate investigations already being
made because, in almost every such accident, the Navy conducts an investi-
gation or Court of Inquiry of its own. Further, the Coast Guard conducts
its own investigation, so that there could be as many as three separate
investigations made at Government expense of the same accident. In
addition, the Navy already has organizations looking into Navy safety
conditions, and this function is coordinated and implemented through
the Navy Safety Center (NSC). The Committee report accompanying the
bill fails to demonstrate that current Coast Guard and Navy marine
investigatory procedures are inadequate or that a serious marine safety
problem exists warranting the expense of yet another official hearing on
the same accident.
Further, the act contains inadequate procedural safeguards for controlling
the authority of the Board to hold marine investigations. Specifically,
these powers include:
a. Record Monitoring: Section 304(a)(8) gives the National Trans-
portation Safety Board authority to monitor safety records and programs
of other Government agencies. This could result in an unwarranted inter-
ference in Navy operations requiring additional burdensome reporting by
the command concerned.
b. Unrestricted Hearing Authority: Section 304(b)(1) permits the
Board, or a single member or employee appointed by the Board, to convene
hearings to carry out the purpose of the bill, including authority to
require by subpoena the attendance, testimony, and production of evidence
and to manage the hearings in such a manner as the Board or such employee
deems advisable. The Board may require hearings to be held anywhere in
the United States. This uncontrolled power could, in the case of a
serious marine casualty involving a Navy ship, virtually put that ship
out of service at whatever time and for whatever period the Board desired.
Even the Public Vessels Act provides that no officer or crewmember of a
public vessel may be subpoenaed without the consent of the Secretary or
the commanding officer of the ship. 46 U.S.C. § 784. This broad and un-
limited subpoena power of the Board, including the authority to demand
access to classified Navy documents, possibly might also adversely affect
national security and inhibit the mission and functions of the U.S. Navy.
C. Security Considerations: Section 304(b)(2) authorizes inspection
of records and files without any mention of security consideration. In
view of the security classification and sensitive nature of many opera-
tions and equipment, the interests of national security are best served
by limiting access to such records and equipments and, in some cases,
to an entire ship.
d. Improper Timing: Section 304(c) of the bill provides that the
Board's investigation reports shall not "be admitted as evidence or used
in any suit or action for damages growing out of any matter mentioned in
such report or reports." Section 304(a)(2) of the bill states, however,
that the Board must cause written reports to be made available to the
public at reasonable cost and to publish in the Federal Register notices
when such reports are available. Therefore, a Board's investigation
of an accident later to be litigated could be an adversary proceeding.
If the Board's hearing in such a case is not governed by the legal
safeguards of a court proceeding, and there is no indication in the
bill that it will be, it is difficult to believe that a spirit of coop-
eration will prevail enabling the Board to discover the real facts
and, as a result, to recommend "meaningful responses to reduce the
likelihood of recurrence of transportation accidents similar to those
investigated by the Board." Section 304(a)(3). The danger of counter-
productive Board investigations, hearings, and reports could be sub-
stantially reduced if the Board postponed its hearings until the
facts of the accident have been adjudicated by the courts of law. Or,
if no litigation appears likely, the Board's hearing procedures should,
at a minimum, contain all the procedural safeguards for determining facts
that are used in a court of law.
2
e. Overly Broad Delegations of Authority: Delegations of authority
by the Board are indefensibly broad and vague. In many cases powers
may be exercised by the Board, or a member of the Board, or even by a
single employee of the Board, with no standards indicating how such
authority will be used in sensitive situations where unqualified persons
clearly should not be given broad discretionary authority.
f. Excessive Interference in Naval Procedures: The broad powers of
the Board set forth in Section 304(b)(1) could be considered as consti-
tuting authority for the Board to require production of any Navy inves-
tigation into an accident under investigation by the Board. This might
cause Navy investigative bodies and subsequent reviewers to be affected
in their conduct regarding the matter under investigation. For example,
recommendations for remedial action or findings and opinions regarding
fault or performance of duty might be affected if it were known or anti-
cipated that such recommendations and opinions would be reviewed by the
Board and possibly become a part of its record.
g. Potential Violations of Individual Rights: There is scant
evidence indicating that the Board's investigations will provide the safe-
guards to naval personnel currently used in Navy Judge Advocate General's
Manual investigations (JAGMAN 0304 and 0305) and Coast Guard investigations
into marine casualties (JAGMAN 1208).
The Department of the Navy, on behalf of the Department of Defense, defers
to the views of the Office of Management and Budget as to whether the
reservations enumerated above are more than offset by the overall merits
of the bill.
Sincerely yours,
DSPUTS
D. S. Potter
Honorable Roy L. Ash
Acting Secretary of the Navy
Director, Office of Management and Budget
Washington, D. C. 20350
3
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 931
Date:
December 30, 1974
Time: 10:00 p.m.
FOR ACTION: Mike Duval
CC (for information): Warren Hendriks
Phil Areeda oh
Jerry Jones
Max Friedersdorf th
Jack Marsh
FROM THE STAFF SECRETARY
DUE: Date: Tuesday, December 31
Time: 1:00 p.m.
SUBJECT:
Enrolled Bill H.R. 15223 - Transportation Safety Act of 1974
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For
the President
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 931
Date:
December 30, 1974
Time:
10:00 p.m.
FOR ACTION: Mike Duval
CC (for information): Warren Hendriks
Phil Areeda
Jerry Jones
Max Friedersdorf
Jack Marsh
FROM THE STAFF SECRETARY
DUE: Date: Tuesday, December 31
Time: 1:00 p.m.
SUBJECT:
Enrolled Bill H.R. 15223 - Transportation Safety Act of 1974
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please
return
OK Judy Johnston, w/ Signing Ground Floor West Statement
to
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
Warren K. Hendri
delay in submitting the required material, please
For the President
telephone the Staff Secretary immediately.
15223
THE WHITE HOUSE
WASHINGTON
DATE: 1/3/75
TO:
FROM: Max L. Friedersdorf
Please handle
Please see me
For your information
Other
Theid Comments ASAP
OK/VL
Vern Loen:
May I please have your approval
of the attached signing statement
asap. You have already signed off
on the bill but statement was not
in package.
Judy Johnston
X
01<
LD
ol/ear
STATEMENT BY THE PRESIDENT
I am signing into law today H.R. 15223, the Transportation
Safety Act of 1974. This bill will make revisions to laws con-
cerning the transportation of hazardous materials, authorize
funds for rail safety enforcement and research, and make the
National Transportation Safety Board (NTSB) a completely inde-
pendent agency.
This bill will expand the powers of the Department of
Transportation to regulate the safe transportation of hazardous
materials. While this expansion of powers goes against my
general goal of reducing Federal regulation where possible, I
recognize the problems that have existed in the past with the
handling of hazardous materials. That concern has led me to
approve the bill because of the significant dangers associated
Jossible
with handling these materials and the effects on people living
near transportation facilities. I remain committed, however,
to the principle of maintaining the minimum possible Federal
involvement in matters that are best handled by State, local or
private authorities, and the elimination of unnecessary regula-
tion. I am directing the Secretary of Transportation to imple-
ment this bill in such a way as to insure the public safety,
while at the same time not putting any unnecessary burden or
paperwork on our Nation's industry and trade. I think regulations
on hazardous materials can be enforced in a way to meet both
these objectives.
Travel in the United States will be safer because
X
of federal actions which will be taken under this new
law. However, the Congress and the Executive also have
the responsibility to ensure that expenditures of the
taxpayer's dollars is kept to an absolute minimum and
that only the most necessary new federal programs are
pursued. This requires the President and the Congress
to carefully review the total federal budget and not
X
each item separately. H.R. 15223 requires NTSB to sub-
mit its budget and legislative recommendations directly
the
to Congress. This severely limits my ability to view
X
n
these recommendations in the context of the overall
budgets and their effect on the economy, in public bor-
rowing, and other considerations.
Although I have signed H.R. 15223 into law because
it will improve transportation safety, I will ask Congress
to correct this unacceptable budget and legislative
submission provision.
THE WHITE HOUSE
WASHINGTON
December 31, 1974
MEMORANDUM FOR:
WARREN HENDRIKS
FROM: Van Laenfor for MAX L. FRIEDERSDORF
SUBJECT:
Action Memorandum - Log No. 931
The Office of Legislative Affairs concurs with the Agencies
that the enrolled bill should be signed.
Attachments
THE WHITE HOUSE
CTION MEMORANDUM
WASHINGTON
LOG NO.: 931
Date:
December 30, 1974
Time:
10:00 p.m.
FOR ACTION: Mike Duval
CC (for information): Warren Hendriks
Phil Areeda
Jerry Jones
Max Friedersdorf
Jack Marsh
FROM THE STAFF SECRETARY
DUE: Date: Tuesday, December 31
Time: 1:00 p.m.
SUBJECT:
Enrolled Bill H.R. 15223 - Transportation Safety Act of 1974
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Frepare Agenda and Brief
Dratt Repiy
For Your Comments
Draft Remarks
REMARKS.
Please return to Judy Johnston, Ground Floor West Wing
No Objection And
P
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
TE you any questions or if you unlicipate
H
the
For the President
teleph the Staff Secretary immediately.
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY OF TRANSPORTATION
*
WASHINGTON, D.C. 20590
UNITED STATES OF AMERICA
DEC 2 0 1974
GENERAL COUNSEL
Honorable Roy L. Ash
Director
Office of Management and Budget
Executive Office Building
Washington, D. C. 20503
Dear Mr. Ash:
This letter is in response to your request for the Department's
comments regarding H.R. 15223, an enrolled bill, entitled:
"The Transportation Safety Act of 1974".
Title I of the bill would greatly strengthen the Department's
hazardous materials program by: (1) centralizing the existing
authority in the Secretary; (2) providing the Secretary with
direct authority over the manufacturers of hazardous materials
containers; and (3) providing civil penalty authority, in addition
to the criminal sanctions. Essentially, these were the three
objectives that the Department wished to achieve when it
submitted its own legislation. Title II of the bill provides the
Department with necessary authorizations for its rail safety
program. Title III of the bill provides for an independent
National Transportation Safety Board, and also provides in
section 304(b)(7) for the concurrent submission of the NTSB
budget and legislative program to the Congress and the President.
Your office indicated to us, and we stated in our letter on
this bill to the House and Senate Conferees, that passage of the
bill with the requirement for concurrent submission of the NTSB
budget and legislative program would not be in accord with the
President's program.
Although the Department also objects to the inclusion of section
304(b)(7), we believe that its inclusion is vastly outweighed by the
GERALD
2
bill's other beneficial provisions, and we strongly recommend that
the President sign the bill for the following reasons. First, the
Department needs this bill if it is to have an effective hazardous
materials program. Title I basically contains the major elements
of the Department's original legislative request. We have testified
before the Congress that the present hazardous materials program
needs to be greatly improved. There have been several major
hazardous materials incidents that have focused attention upon the
need to strengthen the hazardous materials program. The problem
will get worse with the rapidly increasing volume of hazardous
materials transportation. Without this legislation we cannot substantially
improve the hazardous materials program. Also, the form of this
bill is good. Many of the provisions that we objected to in Title I,
II, and III have been deleted from this bill. In addition, approval
of this measure would forestall demands for more severe restrictions
on the transportation of hazardous materials, many of which are
vital to future industrial growth and development.
Secondly, this bill may represent the last chance to amend the
present hazardous materials laws. Under the recent House Committee
changes, the surface transportation jurisdiction was split between
the Commerce and Public Works Committees. The hazardous
materials problem is uniquely intermodal, and introduction of the
bill in the next Congress would have to face review by at least
the Commerce and Public Works Committees, and possibly by
the Merchant Marine and Judiciary Committees.
Thirdly, if the bill is not signed into law, the Department would
not have any authorizations for its important rail safety program.
Finally, with respect to section 304(b)(7), the provision was amended
to delete the prohibitions against "requesting" a prior submission
from the NTSB. The authority to request, but not require, prior
review, coupled with the President's authority to appoint Board
members does not leave the Administration totally lacking in a
review mechanism.
The following is our detailed analysis of the bill.
Sections 101-105. The Secretary is authorized to regulate the
transportation of hazardous materials in interstate commerce or in
any commerce "affecting" interstate commerce. The conference
report makes clear that non-commercial transportation is not to be
3
covered. Any rulemaking must include the "opportunity for an
informal oral presentation" - which is more of an annoyance than
a serious impediment. Except for the last procedural requirement,
the Department supports these sections.
Section 106. This section authorizes the Secretary to "register"
any hazardous materials carrier, shipper or container manufacturer.
The provisions allowing the Secretary to revoke or suspend a
registration were specifically deleted, and the report indicates
that the Secretary may not revoke or suspend a registration. In
view of the other enforcement mechanisms, we do not believe
that the removal of the revocation or suspension power is critical
to our program.
Section 107. This section requires that all exemptions be granted
only after notice and comment. We support these provisions.
This section also provides that nothing in this hazardous materials
title or in the regulations issued thereunder shall be construed "to
regulate or prohibit the transportation by an individual, for personal
use", of any firearms or ammunition or "to prohibit any transportation
of firearms or ammunition in commerce." We object to this
exclusion, although the conference report views this confusingly
drafted restriction in a limited manner as applying only to "firearms
and ammunition for personal use". We note, however, that this
exclusion will be of little effect since unloaded firearms may not
be regulated by this bill and ammunition may still be regulated under
18 U.S.C. 831 et seq. Moreover, the quoted language appears to
permit "regulation" of ammunition that falls short of "prohibition".
Section 108. This section prohibits the transportation of radioactive
materials on passenger aircraft except for certain research or
medical materials. We object to this section, but it will impact
upon a limited amount of transportation.
Section 109. This section sets forth the general powers and duties
of the Secretary and carries forward the provisions of the Hazardous
Materials Control Act of 1970 requiring an annual report. We do
not have any objection.
4
Section 110. This section provides for civil and criminal penalties
for violations of the act or any regulations issued under the act.
The civil penalty section would apply to any person who "knowingly"
violates the Act or regulation. "Knowingly" is not defined in the
bill, but the conference report indicates that a civil penalty may
be imposed if the defendant "knowingly committed the act which
constitutes the violation (it is not necessary to show that he knew
the act constituted a violation)". The conference report would
seem to indicate that the Congress intended to adopt the Supreme
Court's interpretation of "knowingly" in 18 U.S.C. 831 et seq. in
which the Court held that a person could be convicted of "knowingly"
violating a hazardous material regulation without proof that he knew
the content of a specified regulation, so long as the Government
proved he knew that the material was a "hazardous material"
which was covered by a regulatory scheme. U.S. V. International-
Minerals & Chemical Corp., 91 Ct. 1697, 402 U.S. 558(1971).
Although the Department would have preferred that the civil penalty
provision did not include the reference to "knowingly", we do not
think that such a requirement will have a substantial impact upon
the effectiveness of the civil penalty provision.
Section 111. This section provides for injunctive relief and authorizes
court action if the Secretary determines that there is an imminent
hazard. We do not have any objection to this section.
Section 112. This section retains the Senate provision preempting
State regulation of hazardous materials unless the Secretary finds
that the State regulations are more stringent than the Federal Standard
and do not "unreasonably" burden interstate commerce. ("Unreasonable"
was added in the conference bill). This section also excludes
interstate oil and gas pipelines from the operation of this act. The
exclusion of gas pipelines is not important since they are already
covered by the Gas Pipeline Safety Act, which is similar in its
operation to this act. Interstate oil pipelines are covered by
18 U.S.C. 831 et seq., but that act does not provide civil penalties.
5
Section 113. This section provides for certain conforming amendments
to the Federal Aviation Act and the Dangerous Cargo Act. In
addition, this section removes the provisions in the Department of
Transportation Act requiring mandatory delegation of the Secretary's
hazardous materials authority. The language in the House bill
requiring delegation of the "enforcement" authority was not retained
in this bill. We fully support these changes.
Sections 114, 115. Section 114 provides that the Act is effective
on the date of enactment. Section 115 provides an authorization
of $7 million for fiscal year 1975.
We also note that the conference bill does not contain the House
provision relating to "spacer-cars", the Senate provisions for
citizens suits or citizens petitions, nor the Senate provision which
attempted to define the Department's role in relation to OSHA,
to which we objected.
RAIL SAFETY
This title requires the Secretary to prepare a comprehensive
rail safety report. It also authorizes the Secretary to impose
civil penalties for violations of the Accident Reports Act. $35
million is authorized to carry out the purposes of the Federal
Railroad Safety Act of 1970 for fiscal 1975. This amount is then
allocated for particular functions relating to the Federal Railroad
Safety Act. This title did adopt the House language which provided
that the amount spent for research may not exceed the amount
spent for enforcement. Although we objected to this limitation
for the precedent it might create, it will not interfere with the
rail safety program, and we support this title. We also note
that the provisions relating to citizen suits and petitions included
in the Senate bill were not included inthe conference bill.
6
NATIONAL TRANSPORTATION SAFETY BOARD
This title establishes the NTSB as an independent agency on and
after April 1, 1975. The present Board members are grandfathered
until the expiration of their terms, except that a new Chairman
must be appointed by January 1, 1976. As indicated before,
section 304(b)(7) would provide for the concurrent submission of
the NTSB budget and legislative programs to the President and
the Congress. In addition to this provision, the Department had
previously objected to several proposed expansions of the NTSB
authority, but the conference bill was modified to meet substantially
the Department's objections.
Although the NTSB was given the authority to investigate "major
marine casualties", the bill specifically provides that the bill
is not intended to diminish the Coast Guard authority in any way
and that the Coast Guard and the NTSB will jointly issue regulations
to define their respective roles. The section dealing with "safety
advocacy" has been deleted, and a correction was made to ensure
that the rulemaking authority of the Board is of a procedural
nature only. Title III does not substantially expand the functions
of the NTSB, nor does it take any functions from the Department.
Although the Department did not favor title III, we do not have
any strong objection to this title as it is presently proposed.
SUMMARY
Once again the Department wishes to stress that it strongly
recommends that the President sign this bill. The Department
needs the hazardous materials and rail safety titles, and we
think the benefits that will accrue from the enactment of these
two titles outweigh the possible problems that could arise because
of Section 304(b)(7).
Sincerely,
Rod Elgot
Rodney E. Eyster
AMOUNT *
NATIONAL TRANSPORTATION SAFETY BOARD
DEPARTMENT OF TRANSPORTATION
*
WASHINGTON, D.C. 20591
BOARD
OFFICE OF
THE CHAIRMAN
December 23, 1974
Mr. W. H. Rommel
Assistant Director for Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
Dear Mr. Rommel:
This is in response to your request for views of the National
Transportation Safety Board on the enrolled bill, H. R. 15223, "To
amend the Federal Railroad Safety Act of 1970 and the Hazardous
Materials Transportation Control Act of 1970 to authorize additional
appropriations and for other purposes. 11
The Safety Board recommends that the President approve this
bill.
With respect to Titles I and II of H. R. 15223, concerning
transportation of hazardous materials and rail safety, the Safety
Board views both of these portions of the bill as beneficial to the
effort to achieve greater safety in the transportation modes
affected. However, since Department of Transportation agencies
rather than the Safety Board are directly involved in the implementa-
tion and enforcement of these Titles, we defer to the Department for
specific comment on Titles I and II.
The Safety Board believes Title III of H.R. 15223 will provide
a significant improvement in the functions and operations of the
Safety Board. At the same time, as Senator Hartke noted in submitting
the conference report to the Senate: "The structure of the National
Transportation Safety Board was left largely unchanged by the
conferees who agreed that it has proved sufficient in the past and
should be sufficient for the independent agency. 11
-2-
The greatest change with respect to Safety Board functions
affected by H. R. 15223 concern the responsibilities in the area of
surface transportation safety. The basic functions involving the
Board's role in aviation safety remain virtually the same as under
existing law. We believe that the minor modifications enhance our
responsibilities in regard to the investigation and the determination of
probable cause.
H. R. 15223 makes the following changes in the responsibilities
of the Safety Board in surface transportation:
1. It provides clear and understandable evidence-gathering
authority for use in accident investigations and other
safety investigations, replacing an irregular pattern of
derived authorities. A new authority for the reporting
of accidents, which is essential to achieving a productive
investigation, is also provided.
2. A broader pattern of functions is provided from which safety
improvement recommendations can be derived with more
flexibility. These include special safety investigations,
assessments of the effectiveness of investigations made by
others, evaluation of adequacy of hazardous materials safe-
guards, and publication of recommended procedures for
accident investigations.
3. H. R. 15223 provides in railroad safety and pipeline safety
the same complete coverage, by some form of investigation,
of all fatal accidents within the Federal purview that is now
found in aviation. When this authority is coordinated with
actions of the Federal Railroad Administration, the Office
of Pipeline Safety and the States, and the requirement is
made that the Board issue annual statistical reports, the
result will be a centralized review of fatality causes
determined by a Federal authority (instead of private
reports) in these fields.
4. The total volume of safety improvement work of the Board in
all four surface modes will be increased, while permitting an
improved balance of effort among the modes as compared with
the present statute.
-3-
5. Close cooperation with the States in the investigation of highway
accidents is authorized. This opens to investigative authority
certain classes of highway accidents which were previously
difficult to reach.
6. The legislation effectively requires that statistical accident data
generated by the Board be coordinated with data generated by
other transportation agencies. This will improve and regularize
comparisons of overall results between and within modes.
7. H. R. 15223 maintains almost the same pattern of marine accident
investigative action in relation to the Coast Guard but requires
publication of reports of accidents involving certain public vessels
which were investigated heretofore only by the operating agencies
for their internal purposes. Some changes will be necessary in
existing agreements, and new regulations will be required to define
more closely conditions of investigations. The bill does not
increase the volume of the present type of marine casualty
investigations.
8. The bill specifically provides authority in the performance of
investigations, and studies which will facilitate such investigations,
and permits expansion of the base of expert manpower when needed.
9. Detailed appraisals in annual reports to Congress of accident
investigation and accident prevention activities of other Government
agencies will be required. This will be particularly effective in
that a different point of view from that of the agencies themselves
will be presented.
10. Appraisal, evaluation, review, and recommendations for legislative
administrative action and change with respect to transportation
safety will be required every 2 years.
11. Broader public notice of NTSB investigative actions will be required.
The overall effect of the changes which would result from enactment
of H. R. 15223 is to produce a more flexible and better coordinated pattern
of authorities and functions than before. The investigative patterns of the
Administrations of the Department of Transportation need not be altered,
but may be coordinated by changes in existing agreements. The previous
-4-
absence of a statistical function in the surface modes, which hindered
comparative appraisals, has been corrected.
The Safety Board will not require the full $12 million authorized for
FY 1975; however, it is anticipated there will be a need for supplemental
appropriations not exceeding $1 million in FY 1975. The Safety Board
will require the full $12 million authorized in the bill for FY 1976.
Sincerely acting
H. Reed
Chairman
ATOMIC ENERGY COMMISSION
UNITED STATES
ATOMIC ENERGY COMMISSION
WASHINGTON. D.C. 20545
UNITED STATES OF RECEIVED
DEC 2 7 1974
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Attn: Martha Ramsey
Legislative Reference Division
Office of Management and Budget
Dear Mr. Rommel:
The Atomic Energy Commission is pleased to respond to your request
for views and recommendations regarding Enrolled Bill H.R. 15223,
"[t]o regulate commerce by improving the protections afforded the
public against risks connected with the transportation of hazardous
materials, and for other purposes."
We believe the objectives of this bill are meritorious and the
Atomic Energy Commission recommends that the President sign this
bill.
Title I of the bill relating to the transportation of hazardous
materials, and particularly Section 108 thereof, is of immediate
interest to us. The other two titles relate to improvement of rail
safety (Title II) and establishment of the National Transportation
Board, currently within the Department of Transportation, as an
independent safety board (Title III).
Subsection 108(a) of the bill provides in pertinent part that, within
120 days after enactment, the Secretary of DOT shall issue such
regulations which:
"
shall prohibit any transportation of
radioactive materials on any such [passenger-
carrying] aircraft unless the radioactive
materials involved are intended for use in,
or incident to, research, or medical diagnosis
or treatment, so long as such materials as
prepared for and during transportation do not
pose an unreasonable hazard to health and safety."
Subsection 106(a) is technically incorrect where it refers to "extremely
hazardous materials" rather than to "hazardous materials" as is the case
DEC 2 7 1974
Wilfred H. Rommel
- 2 -
in subsection 106(b). However, we understand that DOT intends,
upon enactment of the bill, to issue a corrective regulation designed
to rectify this matter. Similarly, a corrective amendment can be
made in the next Congress for the syntactical error which appears
in subsection 113(b), paragraph (1), where the words "and inserting
in lieu thereof" should be deleted and the words "the following"
substituted therefor.
Sincerely
Commissioner
DERALD
ASSISTANT ATTORNEY GENERAL
LEGISLATIVE AFFAIRS
Department of Justice
Washington, D.C. 20530
DEC 23 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D.C. 20503
Dear Mr. Ash:
In compliance with your request, I have examined a facsimile of
the enrolled bill H.R. 15223, 93d Congress, the "Federal Railroad
Safety Act."
The enrolled bill relates most expressly to the responsibilities
of the Department of Transportation, and it is to that Department
that we defer on the issue of Executive approval.
Our main problem insofar as this legislation is concerned regards
those portions of the bill which affect the litigative authority of
the Department. We were fortunate that the Conference Report, in
sections 110(b) and 111 (a), retained the House language. However,
sections 111 (b) and 304(b)(3) remain inconsistent with your circular
no. 99, published June 30, 1970.
Sincerely,
W.Pokestraw W. Vincent Rakestraw
Assistant Attorney General
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 3 0 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 15223 - Transportation Safety
Act of 1974
Sponsor - Rep. Staggers (D) West Virginia
Last Day for Action
January 4, 1975 - Saturday
Purpose
Authorizes appropriations of $7 million for fiscal year 1975
and expands the authority of the Secretary of Transportation
to regulate the transportation of hazardous materials; autho-
rizes appropriations of $35 million for fiscal year 1975 to
carry out the Federal Rail Safety Act of 1970; establishes
the National Transportation Safety Board (NTSB) as an inde-
pendent agency and expands its powers; and provides for con-
current submission of NTSB's budget and legislative recommenda-
tions to the Congress.
Agency Recommendations
Office of Management and Budget
Approval
Department of Transportation
Approval
National Transportation Safety Board
Approval
Atomic Energy Commission
Approval
Department of Justice
Defers
Department of Defense
Defers to OMB
Department of Labor
3
Phil Areeda:
May I please have your approval of the
attached signing statement. You have
already signed off on the bill, but
package did not contain statement.
Judy Johnston
No objection P Ant