PHMSA Increasing Penalties for 2024

2024 is off to a roaring start! The start of the new year may mark new beginnings and resolutions, but PHMSA has also used it as an opportunity to increase penalties for non-compliance when shipping dangerous goods. On December 28^th, 2023, PHMSA provided a final rule that calls for a 2024 adjustment to civil penalty amounts that will be imposed for violations of certain DOT regulations.

What is the Ruling?

As they have in years past due to the 2015 Federal Civic Penalties Inflation Adjustment Improvements Act, PHMSA has announced an increase in penalties for non-compliance when shipping dangerous goods. This act was designed to help deter shippers from ignoring the dangerous goods regulations. In order for PHMSA to develop the 2024 adjustment, the department multiplied the maximum or minimum penalty amount by the percent change between the October 2023 Consumer Price Index for All Urban Consumers (CPI–U) and the October 2022 CPI–U. In this case, the percent change between the October 2023 CPI–U and the October 2022 CPI–U was 1.032412. This means that all previous penalties from 2023 are increased by multiplying the previous penalty by 1.032412. For Example:

The minimum penalty for violation of hazardous materials transportation law relating to training is going from $582 to $601.
The maximum penalty for violation of hazardous materials transportation law relating to training is going from $96,624 to $99,756.
A violation of hazardous materials transportation law resulting in death, serious illness, severe injury, or substantial property destruction is going from $225,455 to $232,762.

The Federal Register has a complete list of the increasing penalties here.

How to Avoid These Penalties?

It all starts with training. Not only is training required, but it will also provide you with the knowledge to choose the correct packaging, labels, placards, and D.G. declarations. Effective training in the various dangerous goods regulations is the perfect way to safeguard you and your company from avoiding these penalties. Do you have questions about Training? Take a look at the Training Courses that ICC offers or contact our team of experts at 855.734.5469 or send us an email, we’re happy to help.