PHMSA Increases Maximum Civil Penalties for HMR Violations

The Pipeline and Hazardous Material Safety Administration published a direct final rule in today’s Federal Register (78 FR 22798-22800) raising the maximum civil penalties “for a knowing violation of the Federal hazardous material transportation law or a regulation, order, special permit, or approval issued under that law”. Since PHMSA is simply incorporating Congressional requirements (from §33010 of of MAP-21 (Pub. L. 112-141) it has bypassed the normal publish-comment-and-review regulatory process.

Today’s rule will change 49 CFR §107.329 and §171.1 to:

• Revise the maximum civil penalty from $55,000 to $75,000 for a person who knowingly violates the Federal hazardous material transportation law or a regulation, order, special permit, or approval issued under that law;

• Revise the maximum civil penalty from $110,000 to $175,000 for a person who knowingly violates the Federal hazardous material transportation law or a regulation, order, special permit, or approval issued under that law that results in death, serious illness, or severe injury to any person or substantial destruction of the property;

• Remove the current $250 minimum civil penalty; and

• Revise the minimum penalty amount to $450 for a violation related to training.

The effective date for the rule is today and it will “apply to violations occurring on or after October 1, 2012”.