In a Final Rule effective April 17, 2013, and in accordance with the “Moving Ahead for Progress in the 21st Century Act” (MAP-21), the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) revised references in its regulations to the maximum and minimum 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. Under the revisions, the maximum civil penalty for a knowing violation is now $75,000, except the penalty is $175,000 where the violation results in death, serious illness, or severe injury to any person or substantial destruction of property. Further, the minimum civil penalty amount was removed, except for violations related to training where a $450 minimum penalty still applies. The changes to the civil penalty amounts apply to violations occurring on or after October 1, 2012.
As the revisions are set forth changes in the law and are part of PHMSA’s general statements of agency policy and procedure, there was not a period of notice and comment on this Final Rule. PHMSA observed that only a small number of penalty actions fall within the scope of the Final Rule and therefore anticipates that the impact will be minimum.
Maximum Civil Penalty: Under the revised 49 C.F.R. §107.329, the maximum civil penalty increases 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. The maximum civil penalty for a violation that results in death, serious illness, or severe injury to any person or substantial destruction of property increases from $110,000 to $175,000.
Minimum Civil Penalty: Under the revised 49 C.F.R. § 171.1, the $250 minimum civil penalty has been removed, except for a $450 minimum civil penalty for a violation related to training.
The Final Rule in full can be found in 78 FR 22798 or on the GPO website.
For further information or questions regarding PHMSA's Final Rule, contact Ronce Almond at (202) 457-7790.