PHMSA ISSUES FINAL RULE REVISING MAXIMUM AND MINIMUM PENALTIES
The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Final Rule updating the references in its regulations to reflect the maximum and minimum civil penalties for a knowing violation, which Congress revised on July 6, 2012. Effective as of October 1, 2012, the maximum civil penalty for a knowing violation is $75,000 or $175,000 for a violation that results in death, serious illness, or severe injury to any person or substantial destruction of property. In addition, there is no longer a minimum civil penalty amount, except for training violations, which have a minimum civil penalty amount of $450.
Pursuant to the Final Rule, PHMSA has made the following changes in 49 C.F.R. Section 107.329, Appendix A to subpart D of 49 C.F.R. part 107, and 49 C.F.R. Section 171.1:
- Revised 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.
- Revised 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.
- Removed the $250 minimum civil penalty and revised the minimum penalty amount to $450 for a violation related to training.
These revisions reflect changes in the law and are part of PHMSA’s general statements of agency policy and procedure. Therefore, PHMSA was not required to provide a notice and comment period before issuing the Final Rule.
The Final Rule is effective April 17, 2013. If you have any questions regarding these revisions or compliance with the federal hazardous materials transportation law or regulations, please contact our office.