PHMSA is publishing an Interim Final Rule to revise references in its regulations to the maximum civil penalties for violations of the Federal Pipeline Safety Laws, or any PHMSA regulation or order issued thereunder, to account for changes in inflation. These adjusted penalties will apply to violations occurring on or after the effective date of August 1, 2016. This only applies to penalties prospectively and does not retrospectively change any civil penalties previously assessed or enforced. The revised penalties are shown as follows:
Violated Statute | CFR Citation | Base Year | Current Maximum Civil Penalty | Revised Maximum Civil Penalty |
49 U.S.C. 60101 et seq., and any regulation or order issued thereunder. | 49 CFR 190.223(a) | 2012 | $200,000 for each violation for each day the violation continues, with a maximum penalty not to exceed $2,000,000 for a related series of violations. | $205,638 for each violation for the each day the violation continues, with a maximum penalty not to exceed $2,056,380 for a related series of violations. |
49 U.S.C. 60103; 49 U.S.C. 60111 | 49 CFR 190.223(c) | 1996 | A penalty not to exceed $50,000, which may be in addition to other penalties under 40 U.S.C. 60101, et seq. | An administrative civil penalty not to exceed $75,123, which may be in addition to other penalties assessed under 49 U.S.C. 60101, et seq. |
49 U.S.C. 60129 | 49 CFR 190.223(d) | 2005 | A penalty not to exceed $1,000. | A penalty not to exceed $1,194. |
Starting in January 2017, PHMSA is required to publish in the Federal Register annual inflation adjustments for each penalty levied under 49 U.S.C. 60101, et seq., and do so no later than January 15 of each year.