HazMat Fines Increase

The Pipeline and Hazardous Materials Safety Administration (PHMSA) published a final rule in the federal register, 74FR68701 (Docket No. PHMSA-2009-0411) in the December 29th Federal Register adjusting the fines for civil violations of the hazardous materials regulations (HMR). The minimum and maximum fines were increased by 10% based on increases in the Consumer Price Index (CPI-U) between 2005 and 2008. The final rule became effective on December 31st and will apply to violations that take place on or after January 1st, 2010. The new minimum fine for most HMR civil violations will be $275 (up from $250). The minimum fines for training related violations will be $495 (up from $450). The maximum fine for most HMR civil violations will be $55,000 (up from $50,000). Those violations that result in serious illness or severe injury to any person or substantial destruction of property will have a new maximum fine of $110,000 (up from $100,000). PHMSA notes that there is no economic impact on any person who complies with Federal hazardous material transportation law and the regulations, orders, special permits, and approvals issued under that law.