PHMSA Increases Civil Penalties

PHMSA Increases Penalties.pdf

On April 19, 2017 (82 FR 18397) Pipeline and Hazardous Materials Safety Administration (PHMSA) in a final rule, revised 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. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which amended the Federal Civil Penalties Inflation Adjustment Act of 1990, required Agencies to update their civil monetary penalties in August 2016 through an interim final rulemaking. PHMSA has elected to do the 2017 update in a final rulemaking without providing a notice of proposed rulemaking or an opportunity for public comment . Per this final rule, the maximum civil penalty for a knowing violation is now $78,376, except for violations that result in death, serious illness, or severe injury to any person or substantial destruction of property, for which the maximum civil penalty is $182,877. In addition, the minimum civil penalty amount for a violation relating to training is now $471.  The effective date of this final rule is April 19, 2017.