Hazmat Carriers Face Higher Fines

Motor carriers and shippers cited for hazardous materials violations face far greater penalties following the passage of the new federal highway reauthorization law.

Fleets recently blasted the Federal Motor Carrier Safety Administration over a change in its Compliance, Safety, Accountability program related to hazmat transport.

A provision in the highway legislation signed into law last month by President Obama allows the Pipeline and Hazardous Materials Safety Administration to assess fines of up to $75,000 per day, per violation, from the former $50,000 limit.

In cases of death, severe injury, serious illness or substantial property damage, PHMSA can fine a carrier or shipper up to $175,000 per day, per violation, an increase from the former $100,000 ceiling.

PHMSA regards serious incidents as those in which a fatality or major injury was caused by the release of a hazardous material, the evacuation of 25 or more people was required as a result of release of a hazardous material or exposure to a fire and it caused the closure of a major transportation artery.

A PHSMA spokesman said the agency had sought the increase since Congress passed the previous highway bill in 2005.

During 2011, members of regulated hazmat industries, including shippers and carriers, were assessed civil penalties totaling $2.1 million in 388 cases.