| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Download our free e-book! Corrosion Under Insulation. Sponsored by Thermion.

Paint and Coatings Industry News

Main News Page

U.S. to Shutter Hazmat Deadbeats

Tuesday, August 19, 2014

More items for Health & Safety

Comment | More

Federal officials have a message for hazmat penalty dodgers: Pay up or shut down.

That's the gist of the Pipeline and Hazardous Materials Safety Administration's recently announced final rule, "Hazardous Materials: Failure to Pay Civil Penalties."

The rule will prohibit a company that fails to pay a civil penalty or to abide by a payment agreement from performing activities regulated by Hazardous Materials Regulations (49 CFR 171-180) until the payment is made.

The rule takes effect Sept. 8, 2014.

Ceasing Operations

The rule applies to penalties assessed by any of the Department of Transportation's operating administrations: PHMSA, Federal Aviation Administration, Federal Motor Carrier Safety Administration, and Federal Railroad Administration.

PHMSA Final Rule
Images: PHMSA

PHMSA's new final rule requires the payment of a civil penalty by prohibiting performing activities regulated by Hazardous Materials Regulations once the payment is 45 days past due.

If a payment has not been received within 45 days after its due date, the agency that issued the enforcement action will send a Cessation of Operations Order (COO). The COO notifies the respondent that it must stop hazardous-materials operations within 91 days of failure to make the payment.

Appeal Provision

The respondent will have 20 days to appeal the order. But those appeals will be limited strictly to whether the fine has been paid, officials warn.

The four agencies "caution regulated entities not to construe the right to appeal a COO as an opportunity to re-argue the merits of the penalty assessment."

The only information that would prevent stopping operations would be proof of payment, proof of bankruptcy debtor status, and an inability to pay or Emergency Stay issued by a Federal District Court.

"Although the impact of this type of stepped-up enforcement activity remains to be seen, this rule is still another reason for companies to take seriously civil penalties imposed by federal agencies." said E. Colette Nelson, Chief Advocacy Officer of the American Subcontractor's Association.

Violators 'Not Fit' for Hazmat

The rule was made in accordance with the Moving Ahead for Progress in the 21st Century Act (MAP-21). That measure amended the Federal Hazardous Material Transportation Law to prohibit violators that have failed to pay a civil penalty from engaging in hazardous-aterials operations.

Hazardous Materials Regulations

Federal agencies warn not to appeal a Cessation of Operations Order just to re-argue the merits of the penalty assessment.

"PHMSA believes that persons who fail to comply with the Hazmat Law and fail to pay civil penalties are not fit to transport hazardous materials, as they are more likely to jeopardize public safety and/or the environment," the rule says.

"This final rule and underlying legislation may encourage companies that disregard the HMR to exit the hazardous-materials arena because continuing hazardous-materials transportation after a COO is punishable by additional penalties and criminal prosecution."

$20M for Safety

In addition to the new rule, Transportation Secretary Anthony Foxx has announced $20.2 million in grants for planning and training to improve the nation's response to transportation incidents involving hazardous materials, such as crude oil rail spills.

PHMSA's Hazardous Materials Emergency Preparedness grants program allows grantees to implement planning and training programs based on each community's unique needs.

"Safety is our highest priority, and these grants will help first responders across the country get the training they need to stay safe and protect other people," said Foxx.

"These grants are another tool in the Department's comprehensive approach to improving the transportation of crude oil and other hazardous material across the country."

All 50 states, five U.S. territories, and seven Native American Indian tribes received HMEP grant funding this year. Washington, D.C., did not apply for funding, the DOT said.


Tagged categories: Department of Transportation (DOT); Enforcement; hazardous materials; PHMSA; Regulations

Comment Join the Conversation:

Sign in to our community to add your comments.

Clemco Industries Corp.
Powerful Protection in a Small Package

Mounts inside blast helmet, alerts operator to dangerous breathing-air condition by audible, visual, and vibratory alarms. Easily calibrated, battery operated.

able equipment rental

Construction equipment, plus compressors up to 1,800 cfm of air power & a fleet of service vehicles providing repairs to customer owned fleets. 866-468-2666.


The Next Generation
of Blasting

• Lightest
• Coolest
• Most Comfortable
• Most Dependable

Desco Mfg. Co., Inc.

Dust - Free Surface Prep
Made EASY!

Efficient-Fast clean/remove
Advanced Containment
Safe - Well Below OSHA
Yes! - Innovative Solutions!
DESCO Mfg.Co., Inc.

Sidewinder/Persyst Enterprises, Inc.
The Sidewinder Model M2 Solvent Recycler

Combat the rising cost of gunwash, thinners, acetone & more while drastically reducing waste disposal coat.

Mitsubishi Gas Chemical America
Performance Amine 1,3-BAC

A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.

Blastox/The TDJ Group, Inc.
Blastox® - One Step Lead Abatement

Sandblast additive delivered to jobsite pre-blended to eliminate hazardous abrasive wastes. Why mix, meter or apply at the job-site? Blast with ease and
Let your painters paint!

Sherwin-Williams Water & Wastewater App

Our coatings and linings expertise available 24/7, allowing you to explore the best Sherwin-Williams solutions for your water and wastewater treatment facility. Download today!

US Minerals
US Minerals -
Black Magnum

With nationwide production and distribution capabilities, U.S. Minerals supplies a complete range of coal slag and other abrasives to meet all of your blasting needs.

Advanced Recycling Systems

Recycling Machines, Dust Collectors, Rapid Deployment units are time-tested and approved for the rugged industrial environment. Contact ARS today!

Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker

EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us

© Copyright 2000-2016, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail