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The 150 air-mile short-haul exemptions: Widely used and widely misused

2022-08-29T05:00:00Z

The 150 air-mile exemptions, which are in the regulations at 395.1(e)(1) and (2), allow a driver to use a time record in place of a log, provided that certain conditions are met. While this is possibly the most widely used hours-of-service exemption, it may be the most commonly misused exemption, as well.

The basics of logging exemptions

To be able to use this logging exemption in 395.1(e)(1), the driver must:

  • Stay within 150 air-miles of the work reporting location for the day (draw a 150 air-mile radius circle around the work reporting location for the day — the driver must stay within this circle),
  • Be back to — and released from — the work reporting location for his/her 8- or 10-hour break within 14 hours, and
  • Include the starting and ending times for the day and the total hours on duty on the time record for the day.

The company must retain the time record and have it available for inspection for six months.

Need more info? View our ezExplanation on the 150 air-mile exception.

What if the driver goes too far or works too many hours?

If the driver cannot meet the terms of the exemption (he or she goes too far or works too many hours), the driver must complete a regular driver’s log for the day as soon as the exemption no longer applies.

If the driver has had to complete a log 8 or fewer days out of the last 30 days, the driver can use a paper log for the day. If the driver had to complete a log more than 8 days out of the last 30 days, the driver needs to use an electronic log for the day (unless one of the ELD exemptions applies, such as operating a vehicle older than model year 2000).

30-minute break exemption

When a property-carrying driver is operating under the 150 air-mile exemption, the driver is also exempt from having to take the required 30-minute break (see 395.3(a)(3)(ii)).

If the driver began the day as a 150 air-mile driver and has driven more than 8 consecutive hours without a break, and something unexpected happens and the driver can no longer use the 150 air-mile exemption, the driver must stop and immediately take the 30-minute break as well as start logging. If the driver went outside of the 150 air-mile area before the driver had 8 hours of driving without a break from driving, the driver would be expected to take the break at the appropriate time.

Common myths

Here are some of the common myths and misunderstandings about the 150 air-mile exemption:

  • The driver must have the time records in the vehicle. Myth. The driver simply needs to explain to an officer during a roadside inspection that he/she does not have logs due to operating under the 150 air-mile exemption and that the required time records are back at the carrier’s office (just telling the officer, “I don’t have any logs” will lead to a violation, so the driver needs to know to provide the full explanation).
  • The driver must log the previous seven days if he/she had been using this exemption and suddenly can’t. Myth. If the driver cannot use the exemption on one particular day, that is the only day the driver must use a regular log (either paper or electronic).
  • Passenger-carrying drivers and drivers hauling hazardous materials cannot use this exemption. Myth. There are no restrictions on the use of this exemption, so any commercial driver can use it.
  • A driver that crosses state lines cannot use this exemption. Myth. As this exemption appears in the Federal Motor Carrier Administration (FMCSA) regulations, it can be used by interstate drivers.
  • Only drivers that operate out of a “company terminal” can use the 150 air-mile exemption. Myth. As long as the driver makes it back to the work reporting location for the day within the appropriate number of hours, the driver can use the exemption.
  • Drivers that move from one jobsite to another every few weeks cannot use this exemption. Myth. If a driver that normally uses this exemption switches work reporting locations, the day the driver switches work reporting locations is the only day the driver cannot use the exemption.
  • Drivers covered by this exemption are also exempt from the driver qualification (licensing and medical cards), driving, and vehicle inspection requirements. Myth. The only rules the driver is exempt from are the logging requirement in 395.8 and the 30-minute break requirement in 395.3.
  • The driver cannot drive more than 150 miles for the day. Myth. The driver can drive as many miles as he/she wants to or needs to, as long as the driver stays within the 150 air-mile radius circle and gets back to the work reporting location within the appropriate number of hours.
  • If a 150 air-mile driver gets into a vehicle with an ELD, the driver must use it. Myth. The carrier can have the driver log in and have the driver entered into the system as an “exempt driver,” or the carrier can request that the driver not log into the device and then attach a comment to the unassigned driving time generated by the driver’s movements. The comment would need to explain that the driver using the vehicle was a 150 air-mile driver who submitted a time record. It is up to the carrier to decide which option to use. If stopped for a roadside inspection, the driver will need to be able to explain to the inspector that he/she is an exempt driver using the 150 air-mile exemption, so using the electronic log is not required.

What’s different with the ‘150 air-mile non-CDL property-carrying drivers’

The 150 air-mile exemption at 395.1(e)(2) only applies to drivers that: Operate property-carrying vehicles that do not require a CDL to operate, and Stay within the 150 air-miles of their work reporting location.

If the driver stays within the 150 air-mile radius of the work reporting location, and returns to the work reporting location within 14 hours on 5 of the last 7 days, and 16 hours on 2 of the last seven days, the driver is allowed to use a time record in place of a log.

If the driver does not meet the terms of the exception, the driver will need to complete a log for the day. If the driver had to log more than 8 days out of the last 30 days, the driver will need to use an electronic log for the day. All of the other issues discussed above would apply to these drivers as well.

Managing the use

If you have drivers that use these exemptions, you will need to check time records to make sure they are complying with the appropriate time limits. You will also need to check movement records to verify that the drivers using these exemptions are staying within the mandated area (within 150 air-miles of the work reporting location for the day).

If a driver is over the hours limit, or has gone too far, you need to verify that the submitted a log for the day, either paper or electronic, depending on how many days the driver had to log out of the previous 30 days.

Verifying compliance is important

During an audit, if it is discovered that your drivers are using these exemptions incorrectly, you will be cited for not having drivers’ logs when required. Each day this occurred will be another violation, so the fine could be rather large if you are not managing the use of these exemptions!

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Most Recent Highlights In Environmental

EHS Monthly Round Up - April 2026

EHS Monthly Round Up - April 2026

In this April 2026 roundup video, we’ll review the most impactful environmental health and safety news.

Hi everyone! Welcome to the monthly news roundup video, where we’ll review the most impactful environmental health and safety news. Let’s take a look at what happened over the past month.

OSHA revised its National Emphasis Program on heat-related hazards. Going forward, the agency will prioritize inspections in 55 high-risk industries in indoor and outdoor work settings. The program remains in effect for 5 years from its April 10 effective date.

An OSHA proposed rule seeks to eliminate the November 18, 2036, deadline in the Walking-Working Surfaces standard that would require all fixed ladders extending more than 24 feet above a lower level to be equipped with personal fall arrest systems or ladder safety systems. OSHA also seeks feedback on nine specific questions related to the proposal, with comments due on June 5.

On April 17, OSHA revoked its House Falls in Marine Terminals standard at 1917.41. The agency said that because most cargo has been containerized and is moved by cranes, the standard is no longer necessary to protect employees.

Turning to environmental news, an EPA final rule further delays the submission period for the one-time PFAS report required of manufacturers. It pushes the start of the submission period to either 60 days after the effective date of a future final rule updating the PFAS Reporting Rule or January 31, 2027, whichever comes first.

An EPA final rule makes technical changes to the emission standards established in March 2024 for crude oil and natural gas facilities. The changes take effect June 8.

EPA published the draft 6th Contaminant Candidate List for the next group of contaminants to be considered for regulation under the Safe Drinking Water Act. The proposed list designates microplastics and pharmaceuticals as priority contaminant groups for the first time.

And finally, EPA plans to make significant changes to coal combustion residuals requirements. A proposed rule published April 13 would revise the regulations governing the disposal of coal combustion residuals in landfills and surface impoundments, as well as the beneficial use of coal combustion residuals.

Thanks for tuning in to the monthly news roundup. We’ll see you next month!

EHS Monthly Round Up - February 2026

EHS Monthly Round Up - February 2026

In this Februrary 2026 roundup video, we'll discuss the most impactful environmental health and safety news.

Hi everyone! Welcome to the monthly news roundup video, where we’ll review the most impactful environmental health and safety news. Let’s take a look at what happened over the past month.

Fatal work injuries fell 4 percent in 2024, largely due to a decline in workplace drug- and alcohol-related overdoses. According to the Bureau of Labor Statistics, overdose fatalities fell from 512 in 2023 to 410 in 2024. Across all types of workplace incidents, there were 5,070 fatal work injuries in 2024, compared to 5,283 in 2023. Transportation incidents continue to be the most frequent type of fatal event, accounting for over 38 percent of all occupational fatalities in 2024.

OSHA is fast-tracking a proposal to remove the 2036 obligation to upgrade fall protection systems on fixed ladders that extend over 24 feet. This follows an industry petition from major chemical and petroleum industry groups, which argue the provision is unjustified, costly, and not supported by the rulemaking record. OSHA frames the upcoming proposed action as deregulatory, allowing employers to update fixed ladders at the end of their service lives. We’ll provide updates as more information becomes available.

As OSHA leans into “deregulatory” actions, lawmakers are moving to pressure the agency to issue “regulatory” rulemaking to protect American workers. The latest legislative wave of bills aims to fill regulatory gaps, tackle emerging hazards, expand OSHA authority, and raise penalties. Topics addressed by these bills include musculoskeletal disorders, heat stress, infectious diseases, wildfire smoke, and workplace violence.

In a recently issued letter of interpretation, OSHA states that a burn injury caused by a personal lithium-ion battery fire is work related if it occurs in the workplace during assigned working hours. The letter details an incident where an employee was burned when their rechargeable lithium-ion batteries for e-cigarettes sparked a fire after coming into contact with a key used for work.

A new report from the Department of Labor Office of Inspector General concludes that OSHA struggles to meet its mission, particularly in high-risk industries like healthcare, construction, and manufacturing. Several pages point to OSHA’s difficulties in effectively enforcing annual injury and illness reporting requirements, reaching the nation’s high-risk worksites for inspection, and addressing workplace violence by regulatory or other action.

Turning to environmental news, EPA extended the deadlines for Facility Evaluation Reports and related requirements for coal combustion residuals facilities. In most instances, the deadlines have been moved one or two years out.

And finally, EPA announced a final rule eliminating the 2009 Endangerment Finding and related greenhouse gas emission requirements for on-highway vehicles and vehicle engines. When the final rule takes effect, manufacturers and importers of new motor vehicles and motor vehicle engines will no longer have to measure, report, certify, or comply with federal greenhouse gas emission standards.

Thanks for tuning in to the monthly news roundup. We’ll see you next month!

EHS Monthly Round Up - March 2026

EHS Monthly Round Up - March 2026

In this March 2026 roundup video, we'll review the most impactful environmental health and safety news.

Hi everyone! Welcome to the monthly news roundup video, where we’ll review the most impactful environmental health and safety news. Let’s take a look at what happened over the past month.

OSHA released an updated Job Safety and Health poster. Employers can use either the revised version or the older one, but the poster must be displayed in a conspicuous place where workers can easily see it.

OSHA recently removed a link from its Data topic webpage that displayed a list of “high-penalty cases” at or over $40,000 since 2015. The agency says it discontinued and removed it in December. The data is frozen and archived elsewhere.

OSHA published two new resources as part of its newly launched Safety Champions Program. The fact sheet provides an overview of how the program works, eligibility criteria, and key benefits. The step-by-step guide helps businesses navigate the core elements of OSHA’s Recommended Practices for Safety and Health Programs.

Several forces are nudging OSHA to address a number of workplace hazards and high-hazard industries. This comes from other agencies, safety organizations, watchdogs, legislative proposals, and persistent injury/fatality data. Among the hazards are combustible dust; first aid; personal protective equipment; and workplace violence. How all this translates into new regulations, guidance, programmed inspections, or other initiatives remains to be seen.

Turning to environmental news, EPA issued a proposed rule to require waste handlers to use electronic manifests to track all RCRA hazardous waste shipments. Stakeholders have until May 4 to comment on the proposal.

On March 10, EPA finalized stronger emission limits for new and existing large municipal waste combustors and made other changes to related standards.

And finally, EPA temporarily extended coverage under the 2021 Multi-Sector General Permit for industrial stormwater discharges until the agency issues a new general permit. The permit expired February 28 and remains in effect for facilities previously covered. EPA won’t take enforcement action against new facilities for unpermitted stormwater discharges if the facilities meet specific conditions.

Thanks for tuning in to the monthly news roundup. We’ll see you next month!

EHS Monthly Round Up - January 2026

EHS Monthly Round Up - January 2026

In this January 2026 roundup video, we'll review the most impactful environmental health and safety news.

Hi everyone! Welcome to the monthly news roundup video, where we’ll review the most impactful environmental health and safety news. Let’s take a look at what happened over the past month.

Chemical manufacturers, importers, distributors, and employers will have an extra four months to comply with the provisions of OSHA’s revised Hazard Communication standard. When the rule was revised in 2024, it contained staggered compliance dates for those who classify or use chemical substances and mixtures. The first compliance date is now May 19 rather than January 19 of 2026.

On January 8, OSHA issued further technical corrections to its Hazard Communication final rule. An initial set of corrections was published in October 2024, and OSHA continued to review the standard for errors. The agency said these corrections should reduce confusion during the chemical classification process and prevent errors on labels and safety data sheets.

In 2024, private industry employers reported 2.5 million nonfatal workplace injuries and illnesses, according to the Bureau of Labor Statistics. This is down 3.1 percent from 2023 and largely due to a decrease in respiratory illnesses. The greatest number of cases involving days away from work, job restriction, or transfer were caused by overexertion, repetitive motion, and bodily conditions, followed by contact incidents.

Registration is open for OSHA’s Safety Champions Program, which is designed to help employers develop and implement effective safety and health programs. Participants can work at their own pace through Introductory, Intermediate, and Advanced levels.

Turning to environmental news, on January 9, EPA withdrew its direct final rule on SDS/Tier II reporting tied to OSHA HazCom, before it had a chance to take effect. The direct final rule was published back on November 17, 2025, and was intended to relax the Tier II and safety data sheet reporting requirements and align with OSHA’s HazCom standard. EPA said it plans to write a new rule addressing all public comments.

And finally, EPA published a final rule that changes certain requirements for wastewater discharges from coal-fired steam electric power plants. It applies to the deadlines established by the preceding rule finalized in 2024.

Thanks for tuning in to the monthly news roundup. We’ll see you next month!

EPA postpones compliance for TCE uses with TSCA Section 6(g) exemptions
2026-05-07T05:00:00Z

EPA postpones compliance for TCE uses with TSCA Section 6(g) exemptions

On May 5, 2026, the Environmental Protection Agency (EPA) published a final rule postponing the effective date of compliance requirements for trichloroethylene (TCE) uses with Toxic Substances Control Act (TSCA) Section 6(g) exemptions until pending judicial review is concluded.

Who’s impacted?

The delay applies to the conditions imposed on each TSCA Section 6(g) exemption at 40 CFR 751.325, including the Workplace Chemical Protection Program requirements at 751.315.

Since the compliance requirements haven’t taken effect, facilities that use TCE with TSCA Section 6(g) exemptions don’t have to comply with the provisions yet.

Why the delay?

In December 2024, EPA released the final TCE rule (2024 TCE rule). The rule ultimately bans all uses of TCE, but it allows uses with TSCA Section 6(g) exemptions to continue for a limited time as long as facilities comply with strict workplace controls. Currently, the 2024 TCE rule is under judicial review. EPA has delayed the effective date of the requirements for TCE uses with TSCA Section 6(g) exemptions until the judicial challenges to the 2024 TCE rule are resolved.

If you have a sense of déjà vu, it’s for a good reason. This is the fifth time the agency has delayed the compliance requirements for TSCA Section 6(g) exemptions. However, EPA’s previous postponements established specific dates for the provisions to take effect, but this rule doesn’t.

Key to remember: EPA has delayed the compliance requirements for TCE uses with TSCA Section 6(g) exemptions until pending judicial review is concluded.

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Most Recent Highlights In Transportation

2026-05-04T05:00:00Z

Wisconsin adds requirements to federal lead and copper drinking water rule

Effective date: May 1, 2026

This applies to: Public water systems

Description of change: The Wisconsin Department of Natural Resources (department) finalized amendments to align state regulations with the Environmental Protection Agency’s (EPA’s) updated lead and copper control requirements for drinking water. While most of the amendments conform to federal standards, the state has additional standards. The department also:

  • Requires community water systems to make four contact attempts (two more than federal requirements) by two different means for elementary schools and childcare facilities to schedule lead monitoring,
  • Requires public water systems on reduced annual monitoring to analyze and report the same number of sample results for copper and lead (instead of the federal requirements that only half of the copper samples are analyzed),
  • Requires public water systems undergoing temporary treatment or source water changes (unregulated by EPA) for more than 30 days to notify the department 10 days before the planned change or as soon as possible for an unplanned emergency change,
  • Requires groundwater system water suppliers that request to limit their entry point sampling to obtain prior approval from the department,
  • Requires water suppliers that provide point-of-use treatment devices for the corrosion control treatment compliance flexibility option to submit a written plan to the department (not required by the federal rule),
  • Grants the department the authority to require analysis of total and dissolved lead during distribution system and site assessments where the federal rule doesn’t provide this authority to the state,
  • Requires water suppliers that request to invalidate a reported sample result to provide substantial evidence that the sample meets one of the invalidation criteria in the rule, and
  • Combines the lead and copper monitoring waivers into one waiver and requires public water systems to complete at least two 6-month rounds of standard tap water monitoring (for which the federal rule only requires one 6-month round).
2026-05-04T05:00:00Z

District of Columbia updates odor control permit rules

Effective date: April 10, 2026

This applies to: Entities required to obtain an operating air permit under Nuisance Odor Regulations

Description of change: The District of Columbia’s Department of Energy and Environment (DOEE) finalized a rulemaking that allows sources of nuisance odors to implement odor controls before obtaining an operating air permit under 20 DCMR Section 200.

To qualify, an entity must obtain from the DOEE written approval of the controls in the Odor Control Plan (OCP) decision letter. Additionally, the source must apply for an operating permit under 200.2 within 60 days of receiving an OCP decision letter.

Related state info: Clean air operating permits state comparison

2026-05-04T05:00:00Z

California permanently adopts emergency vehicle rules

Effective date: April 1, 2026

This applies to: New vehicle and engine manufacturers

Description of change: The California Air Resources Board (CARB) permanently adopted the Emergency Vehicle Emissions Regulations, which CARB adopted in 2025 as a temporary measure.

The rule reverts the emission standards and requirements for vehicle and engine manufacturers to the regulations in effect before the adoption of:

  • Advanced Clean Cars II (ACC II), and
  • Heavy-Duty Engine and Vehicle Omnibus Low NOx (Omnibus).

CARB allows manufacturers to comply with ACC II and Omnibus requirements voluntarily.

In 2025, the Environmental Protection Agency revoked CARB’s waivers to implement the ACC II, Omnibus, and Advanced Clean Trucks rules.

Hazardous waste manifests: Hybrid vs. fully electronic
2026-04-28T05:00:00Z

Hazardous waste manifests: Hybrid vs. fully electronic

More industries are embracing the exclusive use of electronic platforms. For example, digital payments are replacing cash, news sites are going fully online, and cloud storage is eclipsing external computer storage. And, based on recent proposed rulemaking, hazardous waste manifests may join the list.

The Environmental Protection Agency (EPA) proposed the Paper Manifest Sunset Rule in March 2026, planning to shift to electronic-only manifests for tracking hazardous waste that’s regulated by the Resource Conservation and Recovery Act (RCRA).

If the proposed rule is finalized, regulated entities will have to track all hazardous waste shipments electronically. Specifically, generators, transporters, and receiving facilities could only use hybrid or fully electronic manifests on the Hazardous Waste Electronic Manifest System (e-Manifest).

So, what are the differences between hybrid and fully electronic manifests? Let’s compare the distinctions and explore some of the benefits that electronic manifests can offer.

What’s a hybrid manifest?

EPA initially established the hybrid manifest for generators that couldn’t fully participate in electronic manifests when the e-Manifest launched in 2018. The hybrid manifest combines paper and electronic manifests, allowing generators that aren’t registered in e-Manifest or don’t have an EPA identification (ID) number to sign printed copies of electronic manifests.

Here’s the general hybrid manifest process:

  • The first transporter initiates an electronic manifest in e-Manifest. A hard copy of the electronic manifest is printed out, and the generator and initial transporter sign the paper copy.
  • The generator keeps a signed paper copy on-site. The transporter keeps a signed paper copy with the shipment until it’s delivered to the receiving facility.
  • From that point forward, the initial transporter and all subsequent waste handlers track the shipment in e-Manifest (using electronic signatures and electronic transmissions).
  • The manifest is complete when the receiving facility or exporter electronically signs it on e-Manifest.

What’s a fully electronic manifest?

The fully electronic manifest is tracked completely online. All handlers — generators, transporters, and receiving facilities or exporters — must have an EPA ID number and be registered in e-Manifest to use the fully electronic manifest.

The entire process is conducted on e-Manifest:

  • The manifest is created electronically in e-Manifest.
  • All handlers electronically sign the manifest in e-Manifest.
  • The manifest is complete when the receiving facility or exporter electronically signs it on e-Manifest.

What benefits do electronic manifests offer?

Regardless of whether EPA’s rule is finalized as is, electronic manifests offer hazardous waste handlers a range of benefits. Consider the following potential perks.

Compliance with existing regulations

Many handlers are already required to embrace electronic manifesting. In July 2024, EPA finalized the e-Manifest Third Rule, which requires:

  • Large quantity generators and small quantity generators to register for e-Manifest,
  • Exporters to submit manifests and continuation sheets to e-Manifest (and pay the associated fees), and
  • Waste handlers to submit manifest-related reports and data corrections to e-Manifest.

Streamlined recordkeeping for generators

Hazardous waste handlers using e-Manifest automatically meet the recordkeeping requirements to maintain records of manifests (paper or electronic) since the manifests are retained electronically in the system.

This eliminates the need to keep hard copies. It also provides a centralized place where handlers can access these documents at any time.

However, the provision doesn’t apply to generators using hybrid manifests; they must keep the initial paper copies of the electronic manifest for 3 years.

Reduced costs

Embracing electronic manifesting removes the costs associated with printing paper manifests from EPA-approved sources.

Keep in mind, there’s an unavoidable cost for receiving facilities and exporters. These entities have to pay user fees for each manifest they submit to e-Manifest.

Proactive preparation

EPA’s proposed Paper Manifest Sunset Rule would prohibit the use of paper manifests 2 years after the publication of a final rule. Hazardous waste handlers who transition to using only electronic manifests now will be better prepared to comply with future regulations. It gives businesses time to coordinate resources and address any unexpected issues.

Key to remember: Do you know the differences between hybrid and fully electronic hazardous waste manifests? The distinctions could be the difference between compliance and noncompliance.

EPA publishes first round of expiring TSCA CBI claims
2026-04-27T05:00:00Z

EPA publishes first round of expiring TSCA CBI claims

The Environmental Protection Agency (EPA) published the first list of expiring Confidential Business Information (CBI) claims for information submitted under the Toxic Substances Control Act (TSCA). The list covers CBI claims that expire from June 22, 2026, to July 31, 2026.

What are expiring CBI claims?

The Frank R. Lautenberg Chemical Safety for the 21st Century Act (which became law in June 2016) set an automatic 10-year expiration for most CBI claims made under TSCA. The first round of expiring claims starts in June 2026.

EPA allows businesses to request extensions of CBI protection for up to another 10 years.

How do I know if my CBI claims are expiring?

EPA will notify businesses of expiring CBI claims directly through the Central Data Exchange (CDX).

The agency will also release public lists of upcoming expiring CBI claims monthly on the “CBI Claim Expiration” webpage. The agency encourages businesses to review the lists to verify whether any of their claims are included.

How do I request an extension of expiring CBI claims?

Businesses seeking to extend a CBI claim beyond its expiration date must submit an extension request at least 30 days before the claim expires using the newly launched TSCA Section 14(e) CBI Claim Extension Request application in EPA’s CDX.

Here’s the general process:

  • EPA notifies the business of an expiring CBI claim directly through CDX and via the public lists on the “CBI Claim Expiration” webpage.
  • The business submits a request for extension through EPA’s CDX at least 30 days before the CBI claim expires. Requests must comply with the substantiation requirements at 40 CFR 703.5(a) and (b).
  • EPA reviews the submission and either grants or denies the request.

What are the possible results?

If EPA approves the extension request, the information in the CBI claim will remain protected for up to another 10 years.

If EPA denies the extension request, the agency can publicize the information in the claim 30 days after notifying the submitter in CDX. Further, if a business doesn’t submit an extension request at least 30 days before the expiration date, EPA may publicize the information without notifying the submitter.

Key to remember: EPA published the first round of expiring CBI claims for information submitted under TSCA. Businesses must submit extension requests to keep the information protected.

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Most Recent Highlights In Safety & Health

2026-04-24T05:00:00Z

North Dakota establishes AST regulations

Effective date: April 1, 2026

This applies to: Owners and operators of aboveground storage tanks (ASTs) and liquid fuel storage tanks

Description of change: The Department of Environmental Quality adopted technical standards and corrective action requirements for ASTs. The department also approved amendments to the registration dates and fee categories of the Petroleum Tank Release Compensation Fund for liquid fuels storage tanks.

Related state info: Aboveground storage tanks (ASTs) state comparison — ASTs

2026-04-24T05:00:00Z

Ohio finalizes sewage sludge amendments

Effective date: March 1, 2026

This applies to: Facilities regulated by the sewage sludge program

Description of change: The Ohio Environmental Protection Agency finalized changes to the sewage sludge program through its 5-year review of the regulations. The approved amendments:

  • Add professional operator of record requirements for privately owned treatment works;
  • Increase and add isolation distances for facilities;
  • Prohibit beneficial use of biosolids within a vulnerable hydrogeological setting;
  • Remove dioxin monitoring requirements; and
  • Add requirements for beneficial user certification (including the application and examination process, recordkeeping requirements, and reasons for suspending or revoking a certification).
2026-04-24T05:00:00Z

New Mexico adopts Clean Transportation Fuel Program rules

Effective date: April 1, 2026

This applies to: Transportation fuel produced in, imported into, or dispensed for use in New Mexico

Description of change: The New Mexico Environment Department finalized regulations to implement the Clean Transportation Fuel Program (CTFP) to reduce the carbon intensity of transportation fuel (including gasoline and diesel). The program covers transportation fuel producers, importers, and dispensers.

The CTFP:

  • Establishes annual statewide carbon intensity standards that apply to transportation fuel (e.g., gasoline and diesel) produced, imported, and dispensed for use in New Mexico;
  • Allocates credits and calculates deficits for regulated entities based on the fuel’s carbon intensity; and
  • Sets up a marketplace for selling and purchasing credits to comply with the carbon intensity standards.

The first compliance period runs from April 1, 2026, to December 31, 2027. The first compliance period report is due by April 30, 2028. Annual compliance reports will be due by April 30 for the previous calendar year.

2026-04-24T05:00:00Z

Maine lists materials covered for packaging stewardship program

Effective date: March 3, 2026

This applies to: Entities subject to the Stewardship Program for Packaging Regulations

Description of change: The Maine Department of Environmental Protection’s amendments to the Stewardship Program for Packaging Regulations (06-096 C.M.R. Chapter 428) include:

  • Aligning the rules with changes made by An Act to Improve Recycling by Updating the Stewardship Program for Packaging (L.D. 1423), and
  • Adding Appendix A — The Packaging Material Types List to the Stewardship Program for Packaging Regulations.

L.D. 1423:

  • Excludes certain commercial, cosmetic, medical, environmental, dangerous, hazardous, and flammable product packaging from the program requirements;
  • Excludes packaging of products related to public health and water quality testing from the program requirements;
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Civil Penalties Under ERISA Section 502(c)(4)

DEPARTMENT OF LABOR

Employee Benefits Security Administration

29 CFR Part 2560

RIN 1210-AB24

Civil Penalties Under ERISA Section 502(c)(4)

AGENCY: Employee Benefits Security Administration, Labor.

ACTION: Final rule.

SUMMARY: This document contains a final regulation that establishes procedures relating to the assessment of civil penalties by the Department of Labor under section 502(c)(4) of the Employee Retirement Income Security Act of 1974 (ERISA or the Act). The regulation is necessary to reflect recent amendments to section 502(c)(4) by the Pension Protection Act of 2006, under which the Secretary of Labor is granted authority to assess civil penalties not to exceed $1,000 per day for each violation of section 101( j), (k), or (l), or section 514(e)(3) of ERISA. The regulation will affect employee benefit plans, plan administrators and sponsors, fiduciaries, as well as participants, beneficiaries, employee representatives, and certain employers.

DATES: This final rule is effective on March 3, 2008.

FOR FURTHER INFORMATION CONTACT: Melissa R. Dennis, Office of Regulations and Interpretations, Employee Benefits Security Administration, (202) 693- 8500. This is not a toll-free number.

SUPPLEMENTARY INFORMATION:

A. Background

On August 17, 2006, the Pension Protection Act of 2006 (PPA), Public Law 109-280, 120 Stat. 780, amended title I of ERISA by adding or revising a substantial number of substantive provisions. In conjunction with many of these new or revised provisions, the PPA also amended the civil enforcement provisions in ERISA to provide the Secretary of Labor with authority to assess civil monetary penalties for violations of the substantive provisions.

Specifically, section 103(b)(1) of the PPA amended section 101 of ERISA by adding a new disclosure requirement under subsection ( j), under which the plan administrator of a single-employer defined benefit pension plan must provide written notice of limitations on benefits and benefit accruals to participants and beneficiaries pursuant to section 206(g) of ERISA (or the parallel Internal Revenue Code provision at section 436(b)).1 A notice of benefit limitations must be furnished within 30 days after a plan becomes subject to an ERISA section 206(g) funding-based restriction and at such other time as may be determined by the Secretary of the Treasury. Section 103(b)(2) of the PPA amended section 502(c)(4) of ERISA to provide the Secretary of Labor with the authority to assess a civil penalty of not more than $1,000 a day for each violation of ERISA section 101( j). The effective date of the provisions added by PPA section 103(b) is for plan years beginning on or after January 1, 2008.

1 Under section 101 of Reorganization Plan No. 4 of 1978 (43 FR 47713), the Secretary of the Treasury has interpretive jurisdiction over section 206(g) of ERISA.

Section 502(a)(1) of the PPA amended section 101 of ERISA by adding subsection (k), under which the plan administrator of a multiemployer pension plan must, upon written request, furnish certain documents to any plan participant, beneficiary, employee representative, or any employer that has an obligation to contribute to the plan. Section 502(a )(2) of the PPA amended section 502(c)(4) of ERISA to provide the Secretary of Labor with the authority to assess a civil penalty of not more than $1,000 a day for each violation of ERISA section 101(k). The effective date of the provisions added by PPA section 502(a) is for plan years beginning on or after January 1, 2008.

Section 502(b)(1) of the PPA amended section 101 of ERISA by adding subsection (l), under which a plan sponsor or plan administrator of a multiemployer employee benefit plan must, upon written request, furnish to any employer with an obligation to contribute to such plan, notice of potential withdrawal liability. Section 502(b)(2) of the PPA amended section 502(c)(4) of ERISA to provide the Secretary of Labor with the authority to assess a civil penalty of not more than $1,000 a day for each violation of ERISA section 101(l). The effective date of the provisions added by PPA section 502(b) is for plan years beginning on or after January 1, 2008.

Section 902(f)(1) of the PPA amended section 514 of ERISA by adding subsection (e)(3), under which the plan administrator of a plan with an automatic contribution arrangement shall provide to each participant, to whom the arrangement applies, notice of the participant's rights and obligations under such arrangement. Section 902(f)(2) of the PPA amended section 502(c)(4) of ERISA to provide the Secretary of Labor with the authority to assess a civil penalty of not more than $1,000 a day for each violation of ERISA section 514(e)(3). The effective date of the provisions added by PPA section 902(f) is August 17, 2006.

On December 19, 2007, the Department published in the Federal Register a proposed rule to implement section 502(c)(4) of ERISA and invited interested parties to comment.2 In response to the proposal, the Department received two written comments representing plans and plan sponsors. Copies of the two comments are available under the ''Public Comments'' section of the Department's Web site at http://www.dol.gov/ebsa. After careful consideration of the issues raised in the written comments, the Department is publishing a final regulation, to be codified at 29 CFR 2560.502c-4, without change.

272 FR 71842.

One commenter suggested that it may be premature to issue this civil penalty regulation in advance of substantive regulations under section 101( j), (k), or (l), or section 514(e )(3) of ERISA. As explained below, the civil penalty regulation being adopted herein is merely procedural in nature, i.e., it establishes the process by which the Department may assess civil penalties and the process by which the respondent may challenge that assessment. If the Department or the Secretary of the Treasury were to issue regulations under section 101( j), (k), or (l), or section 514(e)(3) of ERISA, they would not likely have any impact on such procedures.3 Moreover, the Secretary's authority to assess civil penalties under this section is not conditioned on the existence of substantive regulations implementing section 101( j), (k), or (l), or section 514(e)(3) of ERISA. For these reasons, the Department does not believe it is premature to establish this civil penalty regulation at this time.

3 Pursuant to section 101(c)(1)(A)(ii) of the Worker, Retiree, and Employer Recovery Act of 2008, Pub. L. 110-458, the Secretary of the Treasury, in consultation with the Secretary of Labor, shall have the authority to prescribe rules applicable to the notices required under section 101(j) of ERISA.

The commenters also asked whether the notice requirement in section 514(e)(3) of ERISA applies to plans with automatic contribution arrangements that are not intended to meet the requirements of the Department's regulation on qualified default investment alternatives, at 29 CFR 2550.404c-5. The notice requirement in section 514(e )(3) of ERISA applies only to automatic contribution arrangements described in section 514(e)(2) of ERISA. For purposes of section 514(e), section 514(e )(2) of ERISA, in relevant part, defines an automatic contribution arrangement as an arrangement under which ''contributions are invested in accordance with regulations prescribed by the Secretary under section 404(c)(5).'' Accordingly, the notice requirement in section 514(e)(3) of ERISA, as well as the related civil penalty provision in section 502(c)(4) of ERISA, extend only to automatic contribution arrangements described in §2550.404c-5(f)(1).

B. Overview of Section 2560.502c-4

In general, the final regulation sets forth how the maximum penalty amounts are computed, identifies the circumstances under which a penalty may be assessed, sets forth certain procedural rules for service and filing, and provides a plan administrator a means to contest an assessment by the Department and to request an administrative hearing.

Paragraph (a) of the regulation addresses the general application of section 502(c)(4) of ERISA, under which the plan administrator of an eligible plan shall be liable for civil penalties assessed by the Secretary of Labor in each case in which there is a failure or refusal, in whole or in part, to furnish the item(s) to each person entitled under the requirements of section 101( j), (k), or (l), or section 514(e)(3) of ERISA, as applicable.

Paragraph (b) of the regulation sets forth the amount of penalties that may be assessed under section 502(c)(4) of ERISA and provides that the penalty assessed under section 502(c)(4) for each separate violation is to be determined by the Department, taking into consideration the degree or willfulness of the failure or refusal. Paragraph (b) provides that the maximum amount assessed for each violation shall not exceed $1,000 per day per violation.4

4 The Federal Civil Penalties Inflation Adjustment Act of 1990 (the 1990 Act), Public Law 101-410, 104 Stat. 890, as amended by the Debt Collection Improvement Act of 1996 (the Act), Public Law 104-134, 110 Stat. 1321-373, generally provides that federal agencies adjust certain civil monetary penalties for inflation no later than 180 days after the enactment of the Act, and at least once every four years thereafter, in accordance with the guidelines specified in the 1990 Act. The Act specifies that any such increase in a civil monetary penalty shall apply only to violations that occur after the date the increase takes effect.

Paragraph (c) of the regulation provides that, prior to assessing a penalty under ERISA section 502(c )(4), the Department shall provide the plan administrator with written notice of the Department's intent to assess a penalty, the amount of such penalty, the number of individuals (e.g., participants and beneficiaries) on which the penalty is based, the period to which the penalty applies, and the reason(s) for the penalty. The notice would indicate the specific provision violated (i.e., section 101( j), (k), or (l), or section 514(e )(3) of ERISA). The notice is to be served in accordance with paragraph (i) of the regulation (service of notice provision).

Paragraph (d) of the regulation provides that the Department may determine not to assess a penalty, or to waive all or part of the penalty to be assessed, under ERISA section 502(c )(4), upon a showing by the administrator, under paragraph (e) of the regulation, of compliance with section 101(j), (k), or (l), or section 514(e)(3) of ERISA or that there were mitigating circumstances for noncompliance. Under paragraph (e) of the regulation, the administrator has 30 days from the date of the service of the notice issued under paragraph (c) of the regulation within which to file a statement making such a showing. When the Department serves the notice under paragraph (c) by certified mail, service is complete upon mailing but five (5) days are added to the time allowed for the filing of the statement (see §2560.502c-4(i)(2)).

Paragraph (f) of the regulation provides that a failure to file a timely statement under paragraph (e) shall be deemed to be a waiver of the right to appear and contest the facts alleged in the Department's notice of intent to assess a penalty for purposes of any adjudicatory proceeding involving the assessment of the penalty under section 502(c )(4) of ERISA, and to be an admission of the facts alleged in the notice of intent to assess. Such notice then becomes a final order of the Secretary 45 days from the date of service of the notice.

Paragraph (g)(1) of the regulation provides that, following a review of the facts alleged in the statement under paragraph (e), the Department shall notify the administrator of its intention to waive the penalty, in whole or in part, and/or assess a penalty. If it is the intention of the Department to assess a penalty, the notice shall indicate the amount of the penalty. Under paragraph (g )(2) of the regulation, this notice becomes a final order 45 days after the date of service of the notice, except as provided in paragraph (h).

Paragraph (h) of the regulation provides that the notice described in paragraph (g) will become a final order of the Department unless, within 30 days of the date of service of the notice, the plan administrator or representative files a request for a hearing to contest the assessment in administrative proceedings set forth in regulations issued under part 2570 of title 29 of the Code of Federal Regulations and files an answer, in writing, opposing the sanction. When the Department serves the notice under paragraph (g) by mail, service is complete upon mailing, but five days are added to the time allowed for the filing of a request for hearing and answer if the notice was served by certified mail (see 2560.502c-4( i )(2)).

Paragraph ( i)(1) of the regulation describes the rules relating to service of the Department's notice of penalty assessment (§2560.502c-4(c)) and the Department's notice of determination on a statement of reasonable cause (§2560.502c-4(g)). Paragraph (i)(1) provides that service by the Department shall be made by delivering a copy to the administrator or representative thereof; by leaving a copy at the principal office, place of business, or residence of the administrator or representative thereof; or by mailing a copy to the last known address of the administrator or representative thereof. As noted above, paragraph (i)(2) of this section provides that when service of a notice under paragraph (c) or (g) is by certified mail, service is complete upon mailing, but five days are added to the time allowed for the filing of a statement or a request for hearing and answer, as applicable. Service by regular mail is complete upon receipt by the addressee.

Paragraph ( i)(3) of the regulation, which relates to the filing of statements of reasonable cause, provides that a statement of reasonable cause shall be considered filed (i) upon mailing if accomplished using United States Postal Service certified mail or express mail, (ii) upon receipt by the delivery service if accomplished using a ''designated private delivery service'' within the meaning of 26 U.S.C. 7502(f), (iii) upon transmittal if transmitted in a manner specified in the notice of intent to assess a penalty as a method of transmittal to be accorded such special treatment, or (iv) in the case of any other method of filing, upon receipt by the Department at the address provided in the notice. This provision does not apply to the filing of requests for hearing and answers with the Office of the Administrative Law Judge (OALJ) which are governed by the Department's OALJ rules in 29 CFR 18.4.

Paragraph ( j) of the regulation clarifies the liability of the parties for penalties assessed under section 502(c )(4) of ERISA. Paragraph (j)(1) provides that, if more than one person is responsible as administrator for the failure to provide the required item(s), all such persons shall be jointly and severally liable for such failure. Paragraph (j)(2) provides that any person against whom a penalty is assessed under section 502(c)(4) of ERISA, pursuant to a final order, is personally liable for the payment of such penalty. Paragraph (j)(2) provides that liability for the payment of penalties assessed under section 502(c)(4) of ERISA is a personal liability of the person against whom the penalty is assessed and not a liability of the plan. It is the Department's view that payment of penalties assessed under ERISA section 502(c) from plan assets would not constitute a reasonable expense of administering a plan for purposes of sections 403 and 404 of ERISA. Consistent with section 101(l) of ERISA, for purposes of any civil penalty imposed under section 502(c)(4) of ERISA pursuant to the requirements of section 101(l) of ERISA, the term ''administrator'' shall include plan sponsor (within the meaning of section 3(16)(B) of the Act).

Paragraph (k) of the regulation establishes procedures for hearings before an Administrative Law Judge (ALJ) with respect to assessment by the Department of a civil penalty under ERISA section 502(c)(4), and for appealing an ALJ decision to the Secretary or her delegate. The procedures are the same procedures that would apply in the case of a civil penalty assessment under section 502(c)(7) of ERISA.

C. Regulatory Impact Analysis

Executive Order 12866

Under Executive Order 12866 (58 FR 51735), the Department must determine whether a regulatory action is ''significant'' and therefore subject to review by the Office of Management and Budget (OMB). Section 3(f) of the Executive Order defines a ''significant regulatory action'' as an action that is likely to result in a rule (1) having an annual effect on the economy of $100 million or more, or adversely and materially affecting a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local or tribal governments or communities (also referred to as ''economically significant''); (2) creating serious inconsistency or otherwise interfering with an action taken or planned by another agency; (3) materially altering the budgetary impacts of entitlement grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raising novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in the Executive Order. Pursuant to the terms of the Executive Order, it has been determined that this action is not ''significant'' within the meaning of section 3(f) of the Executive Order and therefore is not subject to review by OMB.

Regulatory Flexibility Act

The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA), imposes certain requirements with respect to federal rules that are subject to the notice and comment requirements of section 553(b) of the Administrative Procedure Act (5 U.S.C. 551 et seq.) and that are likely to have a significant economic impact on a substantial number of small entities. For purposes of its analyses under the RFA, EBSA continues to consider a small entity to be an employee benefit plan with fewer than 100 participants. The basis of this definition is found in section 104(a )(2) of ERISA, which permits the Secretary of Labor to prescribe simplified annual reporting for pension plans that cover fewer than 100 participants.

The terms of the statute pertaining to the assessment of civil penalties under section 502(c)(4) of ERISA do not vary relative to plan or plan administrator size. The operation of the statute will normally result in the assessment of lower penalties where small plans are involved, because penalty assessments are based, in part, on the number of plan participants. The opportunity for a plan administrator to present facts and circumstances related to a failure or refusal to provide appropriate disclosure that may be taken into consideration by the Department in assessing penalties under ERISA section 502(c )(4) may offer some degree of flexibility to small entities subject to penalty assessments. Penalty assessments will have no direct impact on small plans, because the plan administrator assessed a civil penalty is personally liable for the payment of that penalty pursuant to section 2560.502c-4(j).

The Department invited interested persons to submit comments on the impact of this rule on small entities and on any alternative approaches that may serve to minimize the impact on small plans or other entities while accomplishing the objectives of the statutory provisions when the notice of proposed rulemaking was published; however, no comments on these issues were received.

Paperwork Reduction Act

The final regulation is not subject to the requirements of the Paperwork Reduction Act of 1995 (PRA 95) (44 U.S.C. 3501 et seq.), because it does not contain a collection of information as defined in 44 U.S.C. 3502(3). Information otherwise provided to the Secretary in connection with the administrative and procedural requirements of this final rule is excepted from coverage by PRA 95 pursuant to 44 U.S.C. 3518(c)(1)(B), and related regulations at 5 CFR 1320.4(a)(2) and (c). These provisions generally except information provided as a result of an agency's civil or administrative action, investigation, or audit.

Congressional Review Act

This final rule is subject to the Congressional Review Act provisions of the Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 801 et seq.) and will be transmitted to the Congress and the Comptroller General for review.

Unfunded Mandates Reform Act

For purposes of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4), as well as Executive Order 12875, this rule does not include any Federal mandate that may result in expenditures by State, local, or tribal governments, and does not impose an annual burden exceeding $100 million, as adjusted for inflation, on the private sector.

Federalism Statement

Executive Order 13132 (August 4, 1999) outlines fundamental principles of federalism and requires the adherence to specific criteria by federal agencies in the process of their formulation and implementation of policies that have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. This final rule does not have federalism implications because it has no substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Section 514 of ERISA provides, with certain exceptions specifically enumerated, that the provisions of Titles I and IV of ERISA supersede any and all laws of the States as they relate to any employee benefit plan covered under ERISA. The requirements implemented in this final rule do not alter the fundamental reporting and disclosure, or administration and enforcement provisions of the statute with respect to employee benefit plans, and as such have no implications for the States or the relationship or distribution of power between the national government and the States.

Signed at Washington, DC, this 24th day of December 2008.

Bradford P. Campbell,

Assistant Secretary, Employee Benefits Security Administration, Department of Labor.

[FR Doc. E8-31188 Filed 12-31-08; 8:45 am]

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