Hazmat Rules to Watch for 2026

The Federal government remains “shut down” as of this morning. When it re-opens, regulatory agencies will have their work cut out for them. This is especially true for US DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA), who proposed about 20 hazmat-related rulemakings in July 2025 that now wait to be finalized and enshrined in the Hazardous Materials Regulations (HMR). 

Many of these rules will directly impact shippers of hazardous materials nationwide. In the recently published Unified Agenda of Regulatory and De-regulatory Actions, PHMSA shares its road map to revise and update the HMR to clarify the regulations, provide new reliefs, and (hopefully) streamline compliance for stakeholders in several key areas. 

New Reliefs for Aerosols, Limited Quantities, and Lithium Batteries

For shippers of hazmat in limited quantities, proposed rule 2137-AG03 will allow for the use of a reduced size limited quantity marking (25 mm. by 25 mm.) for certain shipments.

Rule 2137-AG04 revises the definition of aerosols to include “pure gases,” aligning 49 CFR with international standards. The current definition of aerosol in 49 CFR 171.8 limits the category to products that contain gas "for the sole purpose of" expelling a liquid, paste, or powder. 

Third, PHMSA proposed rule 2137-AG05 to increase the quantities of lithium batteries that may be carried as materials of trade under the exception at 49 CFR 173.6. This exception covers relatively small amounts of hazardous materials carried in a motor vehicle for specific purposes, like to operate or maintain the vehicle or to protect the health and safety of the driver/passengers.

Hazmat Special Permit Improvements 

A hazmat “special permit” is a document issued by PHMSA that allows hazmat shippers, packaging manufacturers, and/or carriers to perform their roles in a way that would normally violate the HMR. A special permit may allow a shipper to use alternative packaging, for example, or exceed certain quantity limits, if the shipper can prove that their method is equally safe and effective at preventing releases during transportation. 

This year, PHMSA proposed rules to improve the process of obtaining and renewing hazmat special permits for shippers and other stakeholders, including: 

• Rule 2137-AG08 to allow the use of hazmat special permit packaging for as long as the package is safe and usable. Currently, the HMR forbids the use of special permit packaging after the special permit has expired
• Rule 2137-AG09 to allow renewal of a special permit at any time before it expires, instead of “at least 60 days before” as is currently required by 49 CFR 107.109(b)
• A series of rules to adopt the reliefs offered by certain long-standing hazmat special permits with proven safety records, including revised requirements for unloading drums from vehicles (2137-AG14), shipping refrigerators and air conditioners (2137-AG15 and 2137-AG16), use of intermediate bulk containers or IBC’s (2137-AG18)

Read more: DOT Hazmat Special Permit Actions 

To Be Withdrawn: Adjusting Registration Fees 

One of PHMSA’s responsibilities under the law is to provide funding, in the form of grants, that US States, Tribes, and Territories use to prepare for emergencies involving hazardous materials and respond to releases of hazmat. To fund the Hazardous Materials Emergency Preparedness (HMEP) grant program each year, PHMSA collects an annual “registration fee” from some shippers and transporters of hazardous materials. The grants are authorized by Congress, and Congress dictates how much money PHMSA may distribute through the HMEP.

In recent years, PHMSA has found that, to continue funding HMEP grants at the levels set by Congress, the agency needs to bring in more funds. In May 2024, PHMSA proposed a rule to increase registration fees (2137-AF59) for some stakeholders, as well as to implement electronic payments and allow carriers to maintain electronic or paper registration certifications. 

The agency now says that “…after a thorough review of the issues involved, PHMSA has decided to withdraw this rulemaking action in the near future.”

PHMSA intends to withdraw the rule by the end of 2025, and is pursing the electronic payment and electronic registration certificate provisions as separate rulemakings (See Above). With respect to raising more funding to cover their hazmat emergency grant responsibilities, PHMSA recognizes that there is a funding shortfall and plans to consider alternative options before proposing another solution.

Stay Tuned for Updates 

Lion will provide updates on these rules as the move forward through the Federal rulemaking process. Lion Members can view our full breakdown of the recently published "Spring 2025" Unified Agenda of Regulatory and De-regulatory Actions here. That Member Bulletin gives you the details about rules-in-progress from DOT/PHMSA, US EPA, and OSHA that will affect industry in the US in the months and years ahead.
 

Tags: 2025 rules, hazmat, new rules