Civil Monetary Penalty Inflation Adjustment Rule, 43091-43096 [2016-15411]

Download as PDF Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations FURTHER INFORMATION CONTACT section above. E. Unfunded Mandates Reform Act F. Environment We have analyzed this rule under Department of Homeland Security Management Directive 023–01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321–4370f), and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves a safety zone lasting less than 2 hours that will prohibit entry 300 feet from the left descending bank into the Ohio River from mile 42.5 to mile 43.0. It is categorically excluded from further review under paragraph 34(g) of Figure 2–1 of the Commandant Instruction. An environmental analysis checklist supporting this determination and a Categorical Exclusion Determination are available in the docket where indicated under ADDRESSES. We seek any comments or information that may lead to the discovery of a significant environmental impact from this rule. G. Protest Activities asabaliauskas on DSK3SPTVN1PROD with RULES The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the FOR FURTHER INFORMATION CONTACT section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places or vessels. List of Subjects in 33 CFR Part 165 Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways. PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS ENVIRONMENTAL PROTECTION AGENCY 1. The authority citation for part 165 continues to read as follows: 40 CFR Part 19 ■ The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531–1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble. Authority: 33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; Department of Homeland Security Delegation No. 0170.1. 2. Add § 165.T08–0335 to read as follows: ■ § 165.T08–0335 Safety Zone; Ohio River Mile 42.5 to Mile 43.0, Chester, WV. (a) Location. The following area is a safety zone: All waters extending 300 feet from the left descending bank into the Ohio River from mile 42.5 to mile 43.0. (b) Definitions. As used in this section, designated representative means a Coast Guard Patrol Commander, including a Coast Guard coxswain, petty officer, or other officer operating a Coast Guard vessel and a Federal, State, and local officer designated by or assisting the Captain of the Port Pittsburgh (COTP) in the enforcement of the safety zone. (c) Regulations. (1) Under the general safety zone regulations in § 165.23, you may not enter the safety zone described in paragraph (a) of this section unless authorized by the COTP or the COTP’s designated representative. (2) To seek permission to enter, contact the COTP or the COTP’s representative at 412–221–0807. Those in the safety zone must comply with all lawful orders or directions given to them by the COTP or the COTP’s designated representative. (d) Enforcement period. This section will be enforced from 9:30 p.m. to 11:00 p.m. on July 4, 2016. (e) Informational broadcasts. The COTP or a designated representative will inform the public through broadcast notices to mariners of the enforcement period for the safety zone as well as any changes in the dates and times of enforcement. L. Mcclain, Jr., Commander, U.S. Coast Guard, Captain of the Port Pittsburgh. [FR Doc. 2016–15689 Filed 6–30–16; 8:45 am] BILLING CODE 9110–04–P For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 43091 [FRL–9948–48–OECA] RIN 2020–AA51 Civil Monetary Penalty Inflation Adjustment Rule Environmental Protection Agency (EPA). ACTION: Interim final rule. AGENCY: The Environmental Protection Agency (EPA) is promulgating this interim final rule to adjust the level of statutory civil monetary penalty amounts for the statutes that the agency administers. This action is mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended through 2015 (‘‘the 2015 Act’’), which prescribes a formula for adjusting statutory civil penalties to reflect inflation, maintain the deterrent effect of statutory civil penalties, and promote compliance with the law. The rule does not necessarily revise the penalty amounts that EPA chooses to seek pursuant to its civil penalty policies in a particular case. EPA’s civil penalty policies, which guide enforcement personnel in how to exercise EPA’s statutory penalty authorities, take into account a number of fact-specific considerations, e.g., the seriousness of the violation, the violator’s good faith efforts to comply, any economic benefit gained by the violator as a result of its noncompliance, and a violator’s ability to pay. DATES: This interim final rule is effective on August 1, 2016. FOR FURTHER INFORMATION CONTACT: Susan O’Keefe, Office of Civil Enforcement, Office of Enforcement and Compliance Assurance, Environmental Protection Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460, telephone number: (202) 564–4021; okeefe.susan@epa.gov. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background Since 1990, Federal agencies have been required to issue regulations adjusting for inflation the statutory civil penalties 1 that can be imposed under 1 The Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101–410, 28 U.S.C. 2461 note, defines ‘‘civil monetary penalty’’ as ‘‘any penalty, fine, or other sanction that—(A)(i) is for a specific monetary amount as provided by Federal law; or (ii) has a maximum amount provided for by Federal law; and (B) is assessed or enforced by an agency pursuant to Federal law; and (C) is assessed Continued PO 00000 Frm 00109 Fmt 4700 Sfmt 4700 E:\FR\FM\01JYR1.SGM 01JYR1 43092 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations asabaliauskas on DSK3SPTVN1PROD with RULES the laws administered by that agency. The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 (DCIA), required agencies to review their statutory civil penalties every 4 years, and to adjust the statutory civil penalty amounts for inflation if the increase met the DCIA’s adjustment methodology. In accordance with the DCIA, EPA reviewed and, as appropriate, adjusted the civil penalty levels under each of the statutes the agency implements in 1996 (61 FR 69360), 2004 (69 FR 7121), 2008 (73 FR 75340), and 2013 (78 FR 66643). Over time, the DCIA formula caused statutory civil penalties to lose value relative to total inflation. The 2015 Act requires agencies to: (1) Adjust the level of statutory civil penalties with an initial ‘‘catch-up’’ adjustment through an interim final rulemaking; and (2) beginning January 15, 2017, make subsequent annual adjustments for inflation. This rule implements the statutorily mandated initial catch-up adjustments. The purpose of the 2015 Act 2 is to provide a mechanism to address these issues by translating originally enacted statutory civil penalty amounts to today’s dollars and rounding statutory civil penalties to the nearest dollar. Once Federal agencies issue the 2016 one-time catchup rule, each statutory civil penalty amount will be adjusted every year to reflect the inflation that has thereafter accrued. Pursuant to section 5(b)(2)(A) of the 2015 Act, this initial catch-up ‘‘cost-ofliving adjustment’’ is, for each statutory civil penalty, the percentage by which the Consumer Price Index for all Urban Consumers (CPI–U) for the month of October 2015 exceeds the CPI–U for the month of October of the year during which the amount of that civil penalty was established (i.e., originally enacted) or last adjusted by statute or regulation (other than pursuant to the Federal Civil Penalties Inflation Adjustment Act). However, section 5(b)(2)(C) of the 2015 Act provides that the maximum amount of any initial catch-up increase shall not exceed 150 percent of the level that was in effect on November 2, 2015. Table 2 or enforced pursuant to an administrative proceeding or a civil action in the Federal courts.’’ 2 The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 701 of Pub. L. 114–74) was signed into law on Nov. 2, 2015, and further amended the Federal Civil Penalties Inflation Adjustment Act of 1990. VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 to 40 CFR 19.4 presents the results of these calculations and adjustments, identifying: (1) The maximum or minimum 3 penalty level established when each statutory section was originally enacted or last adjusted by Congress; 4 and (2) the statutory maximum or minimum civil penalty level, adjusted for inflation under the 2015 Act, that applies to statutory civil penalties assessed on or after August 1, 2016 for violations that occurred after November 2, 2015, the date the 2015 Act was enacted. The formula 5 for determining the cost-of-living or inflation adjustment to statutory civil penalties consists of the following five-step process: Step 1: Identify the latest year that the penalty level or range was established (i.e., originally enacted) or last adjusted by statute or regulation (other than pursuant to the Federal Civil Penalties Inflation Adjustment Act). Step 2: Calculate the cost-of-living adjustment, which is the percentage for that statutory civil penalty by which the CPI–U for the month of October 2015 exceeds the CPI–U for the month of October of the year identified in Step 1 (hereafter referred to the ‘‘cost-of-living multiplier.’’) 6 3 Under Section 3(2)(A) of the 2015 Act, ‘‘civil monetary penalty’’ means ‘‘a specific monetary amount as provided by Federal law’’; or ‘‘has a maximum amount provided for by Federal law.’’ EPA-administered statutes generally refer to statutory maximum civil penalties, with the following exceptions: Section 311(b)(7)(D) of the Clean Water Act, 33 U.S.C. 1321(b)(7)(D), refers to a minimum penalty of ‘‘not less than $100,000 . . .’’; Section 104B(d)(1) of the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. 1414b(d)(1), refers to an exact penalty of $600 ‘‘[f]or each dry ton (or equivalent) of sewage sludge or industrial waste dumped or transported by person in calendar year 1992 . . . ’’; and Section 325(d)(1) of the Emergency Planning and Community Rightto-Know Act, 42 U.S.C. 11045(d)(1), refers to an exact civil penalty of $25,000 for each frivolous trade secret claim. 4 Section 5(b)(2)(B) provides that the cost-ofliving-adjustment ‘‘shall be applied to the amount of the civil monetary penalty as it was most recently established or adjusted under a provision of law other than under this Act.’’ Because EPA has not adjusted any of the statutory civil penalty levels identified at 40 CFR 19.4 for inflation outside of the inflation adjustments made pursuant to the DCIA, the initial cost-of-living adjustment is calculated based on the statutory civil penalty amount as originally enacted or last adjusted by Congress. 5 Office of Management and Budget Memorandum, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015 (OMB Memorandum M–16–06) at p. 8, Appendix (February 24, 2016). 6 See OMB Memorandum M–16–06 at p. 6 for a list of the applicable cost-of-living multipliers by year. PO 00000 Frm 00110 Fmt 4700 Sfmt 4700 Step 3: Multiply the statutory civil penalty level derived from Step 1 by the cost-of-living multiplier calculated in Step 2 and round to the nearest dollar. Step 4: To calculate the 150 percent increase limitation, identify the statutory civil penalty amount in effect on November 2, 2015 7 and multiply by 2.5.8 Step 5: Compare the statutory civil penalty amounts in Step 3 and Step 4, and take the lesser of the two amounts. The lesser amount is the statutory maximum (or minimum) civil penalty that can be assessed on or after August 1, 2016, for violations that occur after November 2, 2015. Under this rule, these amounts are listed in Table 2 of 40 CFR 19.4. For example, with this rule, the new statutory maximum total penalty that may be assessed in an administrative penalty enforcement action under Clean Air Act (CAA) section 113(d)(1), 42 U.S.C. 7413(d)(1), and CAA section 205(c)(1), 42 U.S.C. 7524(c)(1), is increasing from $320,000 to $356,312.9 Both of these statutory maximum penalty amounts were established or last adjusted by Congress in 1990, meaning that the applicable cost-ofliving multiplier is 1.78156. Multiplying the originally enacted statutory penalty level of $200,000 by the cost-of-living multiplier of 1.78156 yields a statutory civil penalty level of $356,312 (see Column D). To determine the 150 percent statutory cap, multiply the inflation adjusted statutory civil maximum penalty level of $320,000, in effect as of November 2, 2015, by 2.5, which equals $800,000 (see Column F). The new statutory civil penalty level is the lesser of the Columns D and F, resulting in an upward adjustment for inflation of $36,312 (see Column H) and the new statutory civil penalty level of $356,312 (see Column G). 7 78 FR 66643 (November 6, 2013). calculate the 150 percent increase limitation, multiply the inflation adjusted statutory civil penalty amounts in effect on November 2, 2015 by 2.5 or 250 percent. 9 Note that CAA section 113(d)(1) and section 205(c)(1) authorize the imposition of a higher statutory maximum civil penalty in an administrative enforcement action if the EPA Administrator and the Attorney General jointly decide that a higher statutory maximum civil penalty is appropriate in a particular matter. 8 To E:\FR\FM\01JYR1.SGM 01JYR1 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations Multiplier Original statutory civil penalty level × multipier Statutory civil penalty level as of November 2, 2015 Statutory civil penalty level (as of November 2, 2015) × 2.5 New statutory civil penalty level: The lesser of (D) and (F) Difference in penalty levels between (G) and (E) B C D E F G H CLEAN AIR ACT (CAA), 42 U.S.C. 7413(d)(1), 7524(c)(1) ........................... $200,000 1.78156 $356,312 $320,000 $800,000 $356,312 $36,312 Year enacted Original statutory civil penalty level A Citation 1990 asabaliauskas on DSK3SPTVN1PROD with RULES The 2015 Act allows agencies to limit the catch-up adjustment to less than the otherwise required amount only under narrowly defined circumstances. To do so, EPA must determine, and the Director of the Office of Management and Budget (OMB) must concur, that ‘‘increasing the civil monetary penalty by the otherwise required amount will have a negative economic impact; or the social costs of increasing the civil monetary penalty by the otherwise required amount outweigh the benefits.’’10 In its February 24, 2016 guidance to Federal agencies on the implementation of the 2015 Act, OMB made clear that it expects reductions from the statutorily prescribed catch-up adjustment levels ‘‘to be rare.’’11 This rare exception does not apply to the civil penalty provisions covered by this rule. With this rule, the new statutory maximum (or minimum) penalty levels listed in Table 2 to 40 CFR 19.4 will apply to all statutory civil penalties assessed on or after August 1, 2016, for violations that occurred after November 2, 2015, when the 2015 Act was enacted. The statutory civil penalty levels, as codified at Table 1 to 40 CFR 19.4, will continue to apply to (1) violations that occurred on or before November 2, 2015, and (2) violations that occurred after November 2, 2015, where the penalty assessment was made prior to August 1, 2016. II. The 2015 Act Requires Federal Agencies To Issue These Adjustments by Interim Final Rule Section 4 of the 2015 Act directs Federal agencies to publish the initial catch-up adjustment through an interim final rule no later than July 1, 2016, which must be effective no later than August 1, 2016. Because the 2015 Act prescribes the formula that Federal agencies must follow to calculate the mandated inflation adjustments, the law does not provide Federal agencies any discretion to vary the amount of the statutory civil penalty changes to reflect 4(c)(1) of the 2015 Act. OMB Memorandum M–16–06 at p.3. any views or suggestions provided by commenters. Accordingly, pursuant to the 2015 Act and 5 U.S.C. 553(b)(3)(B), EPA finds that there is good cause to promulgate this rule without providing for public comment. It would be impracticable and unnecessary to delay publication of this rule pending opportunity for notice and comment because the 2015 Act does not allow agencies to alter the rule based on public comment. not significantly or uniquely affect small governments. This action is required by the 2015 Act, without the exercise of any policy discretion by EPA. This action also imposes no enforceable duty on any state, local or tribal governments or the private sector. Because the calculation of any increase is formuladriven pursuant to the 2015 Act, EPA has no policy discretion to vary the amount of the adjustment. III. Statutory and Executive Order Reviews This action does not have federalism implications. It will not have a substantial direct effect on the states, or on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review Under Executive Order 12866, OMB determined this interim final rule to be a ‘‘non-significant’’ regulatory action and, therefore, it did not undergo interagency review.12 B. Paperwork Reduction Act (PRA) This action does not impose an information collection burden under the PRA. This rule merely increases the level of statutory civil penalties that could be imposed in the context of a Federal civil administrative enforcement action or civil judicial case for violations of EPA-administered statutes and their implementing regulations. C. Regulatory Flexibility Act (RFA) This action is not subject to the RFA. The RFA applies only to rules subject to notice and comment rulemaking requirements under the Administrative Procedure Act (APA), 5 U.S.C. 553, or any other statute. This rule is not subject to notice and comment requirements because the 2015 Act does not allow agencies to alter the rule based on public comment. D. Unfunded Mandates Reform Act (UMRA) This action does not contain any unfunded mandate as described in UMRA, 2 U.S.C. 1531–1538, and does 10 Section 11 See VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 43093 12 See PO 00000 OMB Memorandum M–16–06 at pp. 3–4. Frm 00111 Fmt 4700 Sfmt 4700 E. Executive Order 13132: Federalism F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments This action does not have tribal implications as specified in Executive Order 13175. This rule merely reconciles the real value of current statutory civil penalty levels to reflect and keep pace with the levels originally set by Congress when the statutes were enacted. The calculation of the increases is formula-driven and prescribed by statute, and EPA has no discretion to vary the amount of the adjustment to reflect any views or suggestions provided by commenters. Accordingly, this rule will not have a substantial direct effect on tribal governments, on the relationship between the Federal government and Indian tribes, or on the distribution of power and responsibilities between the Federal government and Indian tribes. G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks The EPA interprets Executive Order 13045 as applying only to those regulatory actions that concern environmental health or safety risks that EPA has reason to believe may disproportionately affect children, per the definition of ‘‘covered regulatory E:\FR\FM\01JYR1.SGM 01JYR1 43094 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations action’’ in section 2–202 of the Executive Order. This action is not subject to Executive Order 13045 because it does not concern an environmental health risk or safety risk. H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use This action is not subject to Executive Order 13211 because it is not a significant regulatory action under Executive Order 12866. I. National Technology Transfer and Advancement Act The rule does not involve technical standards. J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations Executive Order 12898 (59 FR 7629, February 16, 1994) establishes Federal executive policy on environmental justice. Its main provision directs Federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States. The primary purpose of this rule is to reconcile the real value of current statutory civil penalty levels to reflect and keep pace with the levels originally set by Congress when the statutes were enacted. Because calculation of the increases is formula-driven, EPA has no discretion in updating the rule to reflect the allowable statutory civil penalties derived from applying the formula. Since there is no discretion under the 2015 Act in determining the statutory civil penalty level, EPA cannot vary the amount of the statutory civil penalty adjustment to address other issues, including environmental justice issues. K. Congressional Review Act (CRA) This action is subject to the CRA, and EPA will submit a rule report to each House of the Congress and to the Comptroller General of the United States. The CRA allows the issuing agency to make a rule effective sooner than otherwise provided by the CRA if the agency finds that notice and comment rulemaking procedures are impracticable, unnecessary or contrary to the public interest (5 U.S.C. 808(2)). This rule is not subject to notice and comment requirements because the 2015 Act does not allow agencies to alter the rule based on public comment. List of Subjects in 40 CFR Part 19 Environmental protection, Administrative practice and procedure, Penalties. Dated: June 23, 2016. Gina McCarthy, Administrator. PART 19—ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION 1. The authority citation for part 19 is revised to read as follows: ■ Authority: Pub. L. 101–410, Oct. 5, 1990, 104 Stat. 890, as amended by Pub. L. 104– 134, title III, sec. 31001(s)(1), Apr. 26, 1996, 110 Stat. 1321–373; Pub. L. 105–362, title XIII, sec. 1301(a), Nov. 10, 1998, 112 Stat. 3293; Pub. L. 114–74, title VII, sec. 701(b), Nov. 2, 2015, 129 Stat. 599. 2. Revise § 19.2 to read as follows: § 19.2 3. Amend § 19.4 by: a. Revising the section heading and the introductory text; ■ b. In Table 1, amending the last column heading by removing the text ‘‘Penalties effective after December 6, 2013’’; and adding ‘‘Statutory civil penalties for violations that occurred after December 6, 2013 through November 2, 2015, or are assessed before August 1, 2016’’ in its place; and ■ c. Adding a new Table 2. The revisions and addition read as follows: ■ ■ § 19.4 Statutory civil penalties, as adjusted for inflation, and tables. For the reasons set out in the preamble, title 40, chapter I, part 19 of the Code of Federal Regulations is amended as follows: ■ violations which occurred after December 6, 2013 through November 2, 2015, and to violations occurring after November 2, 2015, where penalties are assessed before August 1, 2016. The statutory civil penalty levels set forth in the last column of Table 2 to § 19.4 apply to all violations which occur after November 2, 2015, where the penalties are assessed on or after August 1, 2016. Effective date. The penalty levels in the last column of Table 1 to § 19.4 apply to all Table 1 to § 19.4 sets out the statutory civil penalty provisions of statutes administered by EPA, with the original statutory civil penalty levels, as enacted, and the operative statutory civil penalty levels, as adjusted for inflation, for violations occurring on or before November 2, 2015, and for violations occurring after November 2, 2015, where penalties are assessed before August 1, 2016. Table 2 sets out the statutory civil penalty provisions of statutes administered by EPA, with the original statutory civil penalty levels, as enacted, with the last column displaying the operative statutory civil penalty levels where penalties are assessed on or after August 1, 2016, for violations that occurred after November 2,2015. * * * * * TABLE 2 OF SECTION 19.4—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS Statutory civil penalties, as enacted Environmental statute 7 U.S.C. 136l.(a)(1) ...................................... asabaliauskas on DSK3SPTVN1PROD with RULES U.S. Code citation FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT (FIFRA). FIFRA ........................................................... 7 U.S.C. 136l.(a)(2) 1 .................................... Statutory civil penalties for violations that occurred after November 2, 2015 and assessed on or after August 1, 2016 $5,000 $18,750 1,000/500/1,000 2,750/1,772/2,750 1 Note that 7 U.S.C. 136l.(a)(2) contains three separate statutory maximum civil penalty provisions. The first mention of $1,000 and the $500 statutory maximum civil penalty amount were originally enacted in 1978 (Pub. L 95–396), and the second mention of $1,000 was enacted in 1972 (Pub. L. 92–516). VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 PO 00000 Frm 00112 Fmt 4700 Sfmt 4700 E:\FR\FM\01JYR1.SGM 01JYR1 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 43095 TABLE 2 OF SECTION 19.4—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS Statutory civil penalties, as enacted U.S. Code citation Environmental statute 15 U.S.C. 2615(a)(1) .................................... TOXIC SUBSTANCES CONTROL ACT (TSCA). TSCA ............................................................ TSCA ............................................................ PROGRAM FRAUD CIVIL REMEDIES ACT (PFCRA). PFCRA ......................................................... CLEAN WATER ACT (CWA) ....................... CWA ............................................................. CWA ............................................................. CWA ............................................................. CWA ............................................................. CWA ............................................................. CWA ............................................................. CWA ............................................................. CWA ............................................................. MARINE PROTECTION, RESEARCH, AND SANCTUARIES ACT (MPRSA). MPRSA ......................................................... CERTAIN ALASKAN CRUISE SHIP OPERATIONS (CACSO). CACSO ......................................................... CACSO ......................................................... ACT TO PREVENT POLLUTION FROM SHIPS (APPS). APPS ............................................................ SAFE DRINKING WATER ACT (SDWA) .... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... SDWA ........................................................... RESIDENTIAL LEAD—BASED PAINT HAZARD REDUCTION ACT OF 1992. NOISE CONTROL ACT OF 1972 ................ RESOURCE CONSERVATION AND RECOVERY ACT (RCRA). RCRA ........................................................... RCRA ........................................................... RCRA ........................................................... RCRA ........................................................... RCRA ........................................................... RCRA ........................................................... RCRA ........................................................... RCRA ........................................................... CLEAN AIR ACT (CAA) ............................... CAA .............................................................. CAA .............................................................. CAA .............................................................. CAA .............................................................. CAA .............................................................. COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT (CERCLA). CERCLA ....................................................... CERCLA ....................................................... CERCLA ....................................................... CERCLA ....................................................... EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-KNOW ACT (EPCRA). 15 U.S.C. 2647(a) ......................................... 15 U.S.C. 2647(g) ......................................... 31 U.S.C. 3802(a)(1) .................................... 31 33 33 33 33 33 33 33 33 33 33 U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. 3802(a)(2) .................................... 1319(d) ......................................... 1319(g)(2)(A) ............................... 1319(g)(2)(B) ............................... 1321(b)(6)(B)(i) ............................ 1321(b)(6)(B)(ii) ........................... 1321(b)(7)(A) ............................... 1321(b)(7)(B) ............................... 1321(b)(7)(C) ............................... 1321(b)(7)(D) ............................... 1414b(d)(1) .................................. 33 U.S.C. 1415(a) ......................................... 33 U.S.C. 1901 note (see 1409(a)(2)(A)) ..... 33 U.S.C. 1901 note (see 1409(a)(2)(B)) ..... 33 U.S.C. 1901 note (see 1409(b)(1)) ......... 33 U.S.C. 1908(b)(1) .................................... 33 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. 1908(b)(2) .................................... 300g–3(b) ..................................... 300g–3(g)(3)(A) ........................... 300g–3(g)(3)(B) ........................... 300g–3(g)(3)(C) ........................... 300h–2(b)(1) ................................ 300h–2(c)(1) ................................ 300h–2(c)(2) ................................ 300h–3(c) ..................................... 300i(b) .......................................... 300i–1(c) ...................................... 300j(e)(2) ..................................... 300j–4(c) ...................................... 300j–6(b)(2) ................................. 300j–23(d) .................................... 4852d(b)(5) .................................. asabaliauskas on DSK3SPTVN1PROD with RULES 42 U.S.C. 4910(a)(2) .................................... 42 U.S.C. 6928(a)(3) .................................... 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. 6928(c) ......................................... 6928(g) ......................................... 6928(h)(2) .................................... 6934(e) ......................................... 6973(b) ......................................... 6991e(a)(3) .................................. 6991e(d)(1) .................................. 6991e(d)(2) .................................. 7413(b) ......................................... 7413(d)(1) .................................... 7413(d)(3) .................................... 7524(a) ......................................... 7524(c)(1) .................................... 7545(d)(1) .................................... 9604(e)(5)(B) ............................... 42 42 42 42 42 U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. 9606(b)(1) .................................... 9609(a)(1) .................................... 9609(b) ......................................... 9609(c) ......................................... 11045(a) ....................................... VerDate Sep<11>2014 16:44 Jun 30, 2016 Jkt 238001 PO 00000 Frm 00113 Fmt 4700 Sfmt 4700 Statutory civil penalties for violations that occurred after November 2, 2015 and assessed on or after August 1, 2016 25,000 37,500 5,000 5,000 5,000 10,781 8,908 10,781 5,000 25,000 10,000/25,000 10,000/125,000 10,000/25,000 10,000/125,000 25,000/1,000 25,000 25,000 100,000/3,000 600 10,781 51,570 20,628/51,570 20,628/257,848 17,816/44,539 17,816/222,695 44,539/1,782 44,539 44,539 178,156/5,345 1,187 50,000/125,000 10,000/25,000 187,500/247,336 13,669/34,172 10,000/125,000 25,000 25,000 13,669/170,861 34,172 70,117 5,000 25,000 25,000 5,000/25,000 25,000 25,000 10,000/125,000 5,000/125,000 5,000/10,000 15,000 100,000/1,000,000 2,500 25,000 25,000 5,000/50,000 10,000 14,023 53,907 53,907 10,781/37,561 37,561 53,907 21,563/269,535 10,781/269,535 18,750/40,000 22,537 131,185/1,311,850 9,375 53,907 37,561 9,893/98,935 16,773 10,000 25,000 35,445 93,750 25,000 25,000 25,000 5,000 5,000 25,000 10,000 10,000 25,000 25,000/200,000 5,000 25,000/2,500 200,000 25,000 25,000 56,467 70,117 56,467 14,023 14,023 56,467 22,587 22,587 93,750 44,539/356,312 8,908 44,539/4,454 356,312 44,539 53,907 25,000 25,000 25,000/75,000 25,000/75,000 25,000 53,907 53,907 53,907/161,721 53,907/161,721 53,907 E:\FR\FM\01JYR1.SGM 01JYR1 43096 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations TABLE 2 OF SECTION 19.4—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS U.S. Code citation 42 42 42 42 42 42 42 U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. 11045(b)(1)(A) ............................. 11045(b)(2) .................................. 11045(b)(3) .................................. 11045(c)(1) .................................. 11045(c)(2) .................................. 11045(d)(1) .................................. 14304(a)(1) .................................. 42 U.S.C. 14304(g) ....................................... [FR Doc. 2016–15411 Filed 6–30–16; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [Docket No. EPA–R02–OAR–2016–0059; FRL–9948–57–Region 2] Approval of Air Quality Implementation Plans; New Jersey, Carbon Monoxide Maintenance Plan Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: The Environmental Protection Agency (EPA) is approving a State Implementation Plan (SIP) revision submitted by the New Jersey Department of Environmental Protection. This revision establishes an updated ten-year carbon monoxide (CO) limited maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island (NYNNJLI) CO area which includes the following areas: Hudson, Essex, Bergen, and Union Counties, and the municipalities of Clifton, Passaic and Paterson in Passaic County. New Jersey qualifies for a limited maintenance plan, rather than a full maintenance plan, because monitoring concentrations of CO are less than 85% of the standard. In a limited maintenance plan, future-year projection inventories and transportation conformity budgets are not required. In addition, EPA is also approving the 2007 Attainment/Base Year CO emissions inventory and the shutdown of 5 CO maintenance monitors in New Jersey. The New Jersey portion of the NYNNJLI CO area was redesignated to attainment of the CO National Ambient Air Quality Standard (NAAQS) on asabaliauskas on DSK3SPTVN1PROD with RULES SUMMARY: VerDate Sep<11>2014 16:44 Jun 30, 2016 Statutory civil penalties, as enacted Environmental statute Jkt 238001 Statutory civil penalties for violations that occurred after November 2, 2015 and assessed on or after August 1, 2016 25,000 25,000/75,000 25,000/75,000 25,000 10,000 25,000 10,000 53,907 53,907/161,721 53,907/161,721 53,907 21,563 53,907 15,025 10,000 15,025 EPCRA ......................................................... EPCRA ......................................................... EPCRA ......................................................... EPCRA ......................................................... EPCRA ......................................................... EPCRA ......................................................... MERCURY—CONTAINING AND RECHARGEABLE BATTERY MANAGEMENT ACT (BATTERY ACT). BATTERY ACT ............................................. August 23, 2002 and a maintenance plan was also approved at that time. By this action, EPA is approving a second limited maintenance plan for this area because it provides for continued attainment of the CO NAAQS for an additional ten years. The intended effect of this rulemaking is to approve a SIP revision that will insure continued maintenance of the CO NAAQS. DATES: This final rule is effective on August 1, 2016. ADDRESSES: The EPA has established a docket for this action under Docket ID No. EPA–R02–OAR–2016–0059. All documents in the docket are listed on the https://www.regulations.gov Web site. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available electronically through https:// www.regulations.gov. I. What action is EPA taking? FOR FURTHER INFORMATION CONTACT: Section 118(e) of the transportation conformity rule (40 CFR part 93) states that a conformity determination cannot be made using submitted motor vehicle emission budgets (‘‘budgets’’) until EPA makes a positive determination that the submitted budgets are adequate. In accordance with our rule, the limited maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island (NYNNJLI) CO area was posted for adequacy review on July 27, 2015 on EPA’s conformity Web site: https://www.epa.gov/otaq/ stateresources/transconf/adequacy.htm. As a general rule, however, limited maintenance plans, such as the maintenance plan for the NYNNJLI CO area, do not include budgets. Instead, for those areas that qualify under our Henry Feingersh, Air Programs Branch, Environmental Protection Agency, 290 Broadway, 25th Floor, New York, New York 10007–1866, telephone number (212) 637–3382, or by email at feingersh.henry@epa.gov. SUPPLEMENTARY INFORMATION: The supplementary Information section is arranged as follows: Table of Contents I. What Action is EPA Taking? II. What Comments did EPA Receive on its Proposal and What are EPA’s Responses? III. What is the Adequacy Status of the CO Limited Maintenance Plan for the New Jersey Portion of the New York-Northern New Jersey-Long Island Area? IV. What is EPA’s Final Action? V. Statutory and Executive Order Reviews PO 00000 Frm 00114 Fmt 4700 Sfmt 4700 EPA is approving New Jersey’s SIP revision updating their existing ten-year carbon monoxide (CO) maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island (NYNNJLI) CO area, which includes the following areas: Hudson, Essex, Bergen, and Union Counties, and the municipalities of Clifton, Passaic and Paterson in Passaic County, with another ten-year plan. The reader is referred to the March 25, 2016 (81 FR 16102) proposal for details on this rulemaking. II. What comments did EPA receive on its proposal and what are EPA’s responses? EPA did not receive any comments on our proposed approval of the updated CO limited maintenance plan. EPA is approving the New Jersey SIP revision request. III. What is the adequacy status of the CO limited maintenance plan for the New Jersey portion of the New YorkNorthern New Jersey-Long Island area? E:\FR\FM\01JYR1.SGM 01JYR1

Agencies

[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43091-43096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15411]


=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 19

[FRL-9948-48-OECA]
RIN 2020-AA51


Civil Monetary Penalty Inflation Adjustment Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is promulgating this 
interim final rule to adjust the level of statutory civil monetary 
penalty amounts for the statutes that the agency administers. This 
action is mandated by the Federal Civil Penalties Inflation Adjustment 
Act of 1990, as amended through 2015 (``the 2015 Act''), which 
prescribes a formula for adjusting statutory civil penalties to reflect 
inflation, maintain the deterrent effect of statutory civil penalties, 
and promote compliance with the law. The rule does not necessarily 
revise the penalty amounts that EPA chooses to seek pursuant to its 
civil penalty policies in a particular case. EPA's civil penalty 
policies, which guide enforcement personnel in how to exercise EPA's 
statutory penalty authorities, take into account a number of fact-
specific considerations, e.g., the seriousness of the violation, the 
violator's good faith efforts to comply, any economic benefit gained by 
the violator as a result of its noncompliance, and a violator's ability 
to pay.

DATES: This interim final rule is effective on August 1, 2016.

FOR FURTHER INFORMATION CONTACT: Susan O'Keefe, Office of Civil 
Enforcement, Office of Enforcement and Compliance Assurance, 
Environmental Protection Agency, 1200 Pennsylvania Avenue NW., 
Washington, DC 20460, telephone number: (202) 564-4021; 
okeefe.susan@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    Since 1990, Federal agencies have been required to issue 
regulations adjusting for inflation the statutory civil penalties \1\ 
that can be imposed under

[[Page 43092]]

the laws administered by that agency. The Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended by the Debt Collection 
Improvement Act of 1996 (DCIA), required agencies to review their 
statutory civil penalties every 4 years, and to adjust the statutory 
civil penalty amounts for inflation if the increase met the DCIA's 
adjustment methodology. In accordance with the DCIA, EPA reviewed and, 
as appropriate, adjusted the civil penalty levels under each of the 
statutes the agency implements in 1996 (61 FR 69360), 2004 (69 FR 
7121), 2008 (73 FR 75340), and 2013 (78 FR 66643). Over time, the DCIA 
formula caused statutory civil penalties to lose value relative to 
total inflation.
---------------------------------------------------------------------------

    \1\ The Federal Civil Penalties Inflation Adjustment Act of 
1990, Public Law 101-410, 28 U.S.C. 2461 note, defines ``civil 
monetary penalty'' as ``any penalty, fine, or other sanction that--
(A)(i) is for a specific monetary amount as provided by Federal law; 
or (ii) has a maximum amount provided for by Federal law; and (B) is 
assessed or enforced by an agency pursuant to Federal law; and (C) 
is assessed or enforced pursuant to an administrative proceeding or 
a civil action in the Federal courts.''
---------------------------------------------------------------------------

    The 2015 Act requires agencies to: (1) Adjust the level of 
statutory civil penalties with an initial ``catch-up'' adjustment 
through an interim final rulemaking; and (2) beginning January 15, 
2017, make subsequent annual adjustments for inflation. This rule 
implements the statutorily mandated initial catch-up adjustments. The 
purpose of the 2015 Act \2\ is to provide a mechanism to address these 
issues by translating originally enacted statutory civil penalty 
amounts to today's dollars and rounding statutory civil penalties to 
the nearest dollar. Once Federal agencies issue the 2016 one-time 
catch-up rule, each statutory civil penalty amount will be adjusted 
every year to reflect the inflation that has thereafter accrued.
---------------------------------------------------------------------------

    \2\ The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Section 701 of Pub. L. 114-74) was signed 
into law on Nov. 2, 2015, and further amended the Federal Civil 
Penalties Inflation Adjustment Act of 1990.
---------------------------------------------------------------------------

    Pursuant to section 5(b)(2)(A) of the 2015 Act, this initial catch-
up ``cost-of-living adjustment'' is, for each statutory civil penalty, 
the percentage by which the Consumer Price Index for all Urban 
Consumers (CPI-U) for the month of October 2015 exceeds the CPI-U for 
the month of October of the year during which the amount of that civil 
penalty was established (i.e., originally enacted) or last adjusted by 
statute or regulation (other than pursuant to the Federal Civil 
Penalties Inflation Adjustment Act). However, section 5(b)(2)(C) of the 
2015 Act provides that the maximum amount of any initial catch-up 
increase shall not exceed 150 percent of the level that was in effect 
on November 2, 2015. Table 2 to 40 CFR 19.4 presents the results of 
these calculations and adjustments, identifying: (1) The maximum or 
minimum \3\ penalty level established when each statutory section was 
originally enacted or last adjusted by Congress; \4\ and (2) the 
statutory maximum or minimum civil penalty level, adjusted for 
inflation under the 2015 Act, that applies to statutory civil penalties 
assessed on or after August 1, 2016 for violations that occurred after 
November 2, 2015, the date the 2015 Act was enacted.
---------------------------------------------------------------------------

    \3\ Under Section 3(2)(A) of the 2015 Act, ``civil monetary 
penalty'' means ``a specific monetary amount as provided by Federal 
law''; or ``has a maximum amount provided for by Federal law.'' EPA-
administered statutes generally refer to statutory maximum civil 
penalties, with the following exceptions: Section 311(b)(7)(D) of 
the Clean Water Act, 33 U.S.C. 1321(b)(7)(D), refers to a minimum 
penalty of ``not less than $100,000 . . .''; Section 104B(d)(1) of 
the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. 
1414b(d)(1), refers to an exact penalty of $600 ``[f]or each dry ton 
(or equivalent) of sewage sludge or industrial waste dumped or 
transported by person in calendar year 1992 . . . ''; and Section 
325(d)(1) of the Emergency Planning and Community Right-to-Know Act, 
42 U.S.C. 11045(d)(1), refers to an exact civil penalty of $25,000 
for each frivolous trade secret claim.
    \4\ Section 5(b)(2)(B) provides that the cost-of-living-
adjustment ``shall be applied to the amount of the civil monetary 
penalty as it was most recently established or adjusted under a 
provision of law other than under this Act.'' Because EPA has not 
adjusted any of the statutory civil penalty levels identified at 40 
CFR 19.4 for inflation outside of the inflation adjustments made 
pursuant to the DCIA, the initial cost-of-living adjustment is 
calculated based on the statutory civil penalty amount as originally 
enacted or last adjusted by Congress.
---------------------------------------------------------------------------

    The formula \5\ for determining the cost-of-living or inflation 
adjustment to statutory civil penalties consists of the following five-
step process:
---------------------------------------------------------------------------

    \5\ Office of Management and Budget Memorandum, Implementation 
of the Federal Civil Penalties Inflation Adjustment Act Improvement 
Act of 2015 (OMB Memorandum M-16-06) at p. 8, Appendix (February 24, 
2016).
---------------------------------------------------------------------------

    Step 1: Identify the latest year that the penalty level or range 
was established (i.e., originally enacted) or last adjusted by statute 
or regulation (other than pursuant to the Federal Civil Penalties 
Inflation Adjustment Act).
    Step 2: Calculate the cost-of-living adjustment, which is the 
percentage for that statutory civil penalty by which the CPI-U for the 
month of October 2015 exceeds the CPI-U for the month of October of the 
year identified in Step 1 (hereafter referred to the ``cost-of-living 
multiplier.'') \6\
---------------------------------------------------------------------------

    \6\ See OMB Memorandum M-16-06 at p. 6 for a list of the 
applicable cost-of-living multipliers by year.
---------------------------------------------------------------------------

    Step 3: Multiply the statutory civil penalty level derived from 
Step 1 by the cost-of-living multiplier calculated in Step 2 and round 
to the nearest dollar.
    Step 4: To calculate the 150 percent increase limitation, identify 
the statutory civil penalty amount in effect on November 2, 2015 \7\ 
and multiply by 2.5.\8\
---------------------------------------------------------------------------

    \7\ 78 FR 66643 (November 6, 2013).
    \8\ To calculate the 150 percent increase limitation, multiply 
the inflation adjusted statutory civil penalty amounts in effect on 
November 2, 2015 by 2.5 or 250 percent.
---------------------------------------------------------------------------

    Step 5: Compare the statutory civil penalty amounts in Step 3 and 
Step 4, and take the lesser of the two amounts. The lesser amount is 
the statutory maximum (or minimum) civil penalty that can be assessed 
on or after August 1, 2016, for violations that occur after November 2, 
2015. Under this rule, these amounts are listed in Table 2 of 40 CFR 
19.4.
    For example, with this rule, the new statutory maximum total 
penalty that may be assessed in an administrative penalty enforcement 
action under Clean Air Act (CAA) section 113(d)(1), 42 U.S.C. 
7413(d)(1), and CAA section 205(c)(1), 42 U.S.C. 7524(c)(1), is 
increasing from $320,000 to $356,312.\9\ Both of these statutory 
maximum penalty amounts were established or last adjusted by Congress 
in 1990, meaning that the applicable cost-of-living multiplier is 
1.78156. Multiplying the originally enacted statutory penalty level of 
$200,000 by the cost-of-living multiplier of 1.78156 yields a statutory 
civil penalty level of $356,312 (see Column D). To determine the 150 
percent statutory cap, multiply the inflation adjusted statutory civil 
maximum penalty level of $320,000, in effect as of November 2, 2015, by 
2.5, which equals $800,000 (see Column F). The new statutory civil 
penalty level is the lesser of the Columns D and F, resulting in an 
upward adjustment for inflation of $36,312 (see Column H) and the new 
statutory civil penalty level of $356,312 (see Column G).
---------------------------------------------------------------------------

    \9\ Note that CAA section 113(d)(1) and section 205(c)(1) 
authorize the imposition of a higher statutory maximum civil penalty 
in an administrative enforcement action if the EPA Administrator and 
the Attorney General jointly decide that a higher statutory maximum 
civil penalty is appropriate in a particular matter.

[[Page 43093]]



 
                                                    A             B              C            D             E             F             G             H
--------------------------------------------------------------------------------------------------------------------------------------------------------
CLEAN AIR ACT (CAA), 42 U.S.C. 7413(d)(1),       1990      $200,000       1.78156      $356,312      $320,000      $800,000      $356,312       $36,312
 7524(c)(1)................................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The 2015 Act allows agencies to limit the catch-up adjustment to 
less than the otherwise required amount only under narrowly defined 
circumstances. To do so, EPA must determine, and the Director of the 
Office of Management and Budget (OMB) must concur, that ``increasing 
the civil monetary penalty by the otherwise required amount will have a 
negative economic impact; or the social costs of increasing the civil 
monetary penalty by the otherwise required amount outweigh the 
benefits.''\10\ In its February 24, 2016 guidance to Federal agencies 
on the implementation of the 2015 Act, OMB made clear that it expects 
reductions from the statutorily prescribed catch-up adjustment levels 
``to be rare.''\11\ This rare exception does not apply to the civil 
penalty provisions covered by this rule.
---------------------------------------------------------------------------

    \10\ Section 4(c)(1) of the 2015 Act.
    \11\ See OMB Memorandum M-16-06 at p.3.
---------------------------------------------------------------------------

    With this rule, the new statutory maximum (or minimum) penalty 
levels listed in Table 2 to 40 CFR 19.4 will apply to all statutory 
civil penalties assessed on or after August 1, 2016, for violations 
that occurred after November 2, 2015, when the 2015 Act was enacted. 
The statutory civil penalty levels, as codified at Table 1 to 40 CFR 
19.4, will continue to apply to (1) violations that occurred on or 
before November 2, 2015, and (2) violations that occurred after 
November 2, 2015, where the penalty assessment was made prior to August 
1, 2016.

II. The 2015 Act Requires Federal Agencies To Issue These Adjustments 
by Interim Final Rule

    Section 4 of the 2015 Act directs Federal agencies to publish the 
initial catch-up adjustment through an interim final rule no later than 
July 1, 2016, which must be effective no later than August 1, 2016. 
Because the 2015 Act prescribes the formula that Federal agencies must 
follow to calculate the mandated inflation adjustments, the law does 
not provide Federal agencies any discretion to vary the amount of the 
statutory civil penalty changes to reflect any views or suggestions 
provided by commenters. Accordingly, pursuant to the 2015 Act and 5 
U.S.C. 553(b)(3)(B), EPA finds that there is good cause to promulgate 
this rule without providing for public comment. It would be 
impracticable and unnecessary to delay publication of this rule pending 
opportunity for notice and comment because the 2015 Act does not allow 
agencies to alter the rule based on public comment.

III. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    Under Executive Order 12866, OMB determined this interim final rule 
to be a ``non-significant'' regulatory action and, therefore, it did 
not undergo interagency review.\12\
---------------------------------------------------------------------------

    \12\ See OMB Memorandum M-16-06 at pp. 3-4.
---------------------------------------------------------------------------

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the PRA. This rule merely increases the level of statutory civil 
penalties that could be imposed in the context of a Federal civil 
administrative enforcement action or civil judicial case for violations 
of EPA-administered statutes and their implementing regulations.

C. Regulatory Flexibility Act (RFA)

    This action is not subject to the RFA. The RFA applies only to 
rules subject to notice and comment rulemaking requirements under the 
Administrative Procedure Act (APA), 5 U.S.C. 553, or any other statute. 
This rule is not subject to notice and comment requirements because the 
2015 Act does not allow agencies to alter the rule based on public 
comment.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. This action is required by the 2015 Act, without the 
exercise of any policy discretion by EPA. This action also imposes no 
enforceable duty on any state, local or tribal governments or the 
private sector. Because the calculation of any increase is formula-
driven pursuant to the 2015 Act, EPA has no policy discretion to vary 
the amount of the adjustment.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
a substantial direct effect on the states, or on the relationship 
between the national government and the states, or on the distribution 
of power and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive Order 13175. This rule merely reconciles the real value of 
current statutory civil penalty levels to reflect and keep pace with 
the levels originally set by Congress when the statutes were enacted. 
The calculation of the increases is formula-driven and prescribed by 
statute, and EPA has no discretion to vary the amount of the adjustment 
to reflect any views or suggestions provided by commenters. 
Accordingly, this rule will not have a substantial direct effect on 
tribal governments, on the relationship between the Federal government 
and Indian tribes, or on the distribution of power and responsibilities 
between the Federal government and Indian tribes.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that EPA has reason to believe may disproportionately affect children, 
per the definition of ``covered regulatory

[[Page 43094]]

action'' in section 2-202 of the Executive Order. This action is not 
subject to Executive Order 13045 because it does not concern an 
environmental health risk or safety risk.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act

    The rule does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994) establishes 
Federal executive policy on environmental justice. Its main provision 
directs Federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    The primary purpose of this rule is to reconcile the real value of 
current statutory civil penalty levels to reflect and keep pace with 
the levels originally set by Congress when the statutes were enacted. 
Because calculation of the increases is formula-driven, EPA has no 
discretion in updating the rule to reflect the allowable statutory 
civil penalties derived from applying the formula. Since there is no 
discretion under the 2015 Act in determining the statutory civil 
penalty level, EPA cannot vary the amount of the statutory civil 
penalty adjustment to address other issues, including environmental 
justice issues.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, and EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. The CRA allows the issuing agency to make a rule 
effective sooner than otherwise provided by the CRA if the agency finds 
that notice and comment rulemaking procedures are impracticable, 
unnecessary or contrary to the public interest (5 U.S.C. 808(2)). This 
rule is not subject to notice and comment requirements because the 2015 
Act does not allow agencies to alter the rule based on public comment.

List of Subjects in 40 CFR Part 19

    Environmental protection, Administrative practice and procedure, 
Penalties.

    Dated: June 23, 2016.
Gina McCarthy,
Administrator.

    For the reasons set out in the preamble, title 40, chapter I, part 
19 of the Code of Federal Regulations is amended as follows:

PART 19--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION

0
1. The authority citation for part 19 is revised to read as follows:

    Authority: Pub. L. 101-410, Oct. 5, 1990, 104 Stat. 890, as 
amended by Pub. L. 104-134, title III, sec. 31001(s)(1), Apr. 26, 
1996, 110 Stat. 1321-373; Pub. L. 105-362, title XIII, sec. 1301(a), 
Nov. 10, 1998, 112 Stat. 3293; Pub. L. 114-74, title VII, sec. 
701(b), Nov. 2, 2015, 129 Stat. 599.


0
2. Revise Sec.  19.2 to read as follows:


Sec.  19.2  Effective date.

    The penalty levels in the last column of Table 1 to Sec.  19.4 
apply to all violations which occurred after December 6, 2013 through 
November 2, 2015, and to violations occurring after November 2, 2015, 
where penalties are assessed before August 1, 2016. The statutory civil 
penalty levels set forth in the last column of Table 2 to Sec.  19.4 
apply to all violations which occur after November 2, 2015, where the 
penalties are assessed on or after August 1, 2016.

0
3. Amend Sec.  19.4 by:
0
a. Revising the section heading and the introductory text;
0
b. In Table 1, amending the last column heading by removing the text 
``Penalties effective after December 6, 2013''; and adding ``Statutory 
civil penalties for violations that occurred after December 6, 2013 
through November 2, 2015, or are assessed before August 1, 2016'' in 
its place; and
0
c. Adding a new Table 2.
    The revisions and addition read as follows:


Sec.  19.4  Statutory civil penalties, as adjusted for inflation, and 
tables.

    Table 1 to Sec.  19.4 sets out the statutory civil penalty 
provisions of statutes administered by EPA, with the original statutory 
civil penalty levels, as enacted, and the operative statutory civil 
penalty levels, as adjusted for inflation, for violations occurring on 
or before November 2, 2015, and for violations occurring after November 
2, 2015, where penalties are assessed before August 1, 2016. Table 2 
sets out the statutory civil penalty provisions of statutes 
administered by EPA, with the original statutory civil penalty levels, 
as enacted, with the last column displaying the operative statutory 
civil penalty levels where penalties are assessed on or after August 1, 
2016, for violations that occurred after November 2, 2015.
---------------------------------------------------------------------------

    \1\ Note that 7 U.S.C. 136l.(a)(2) contains three separate 
statutory maximum civil penalty provisions. The first mention of 
$1,000 and the $500 statutory maximum civil penalty amount were 
originally enacted in 1978 (Pub. L 95-396), and the second mention 
of $1,000 was enacted in 1972 (Pub. L. 92-516).
---------------------------------------------------------------------------

* * * * *

                      Table 2 of Section 19.4--Civil Monetary Penalty Inflation Adjustments
----------------------------------------------------------------------------------------------------------------
                                                                                             Statutory civil
                                                                                              penalties for
                                                                                             violations that
        U.S. Code citation             Environmental statute        Statutory civil           occurred after
                                                                 penalties, as enacted     November 2, 2015 and
                                                                                           assessed on or after
                                                                                              August 1, 2016
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 136l.(a)(1)..............  FEDERAL INSECTICIDE,                         $5,000                  $18,750
                                     FUNGICIDE, AND
                                     RODENTICIDE ACT (FIFRA).
7 U.S.C. 136l.(a)(2) \1\..........  FIFRA.....................          1,000/500/1,000        2,750/1,772/2,750

[[Page 43095]]

 
15 U.S.C. 2615(a)(1)..............  TOXIC SUBSTANCES CONTROL                     25,000                   37,500
                                     ACT (TSCA).
15 U.S.C. 2647(a).................  TSCA......................                    5,000                   10,781
15 U.S.C. 2647(g).................  TSCA......................                    5,000                    8,908
31 U.S.C. 3802(a)(1)..............  PROGRAM FRAUD CIVIL                           5,000                   10,781
                                     REMEDIES ACT (PFCRA).
31 U.S.C. 3802(a)(2)..............  PFCRA.....................                    5,000                   10,781
33 U.S.C. 1319(d).................  CLEAN WATER ACT (CWA).....                   25,000                   51,570
33 U.S.C. 1319(g)(2)(A)...........  CWA.......................            10,000/25,000            20,628/51,570
33 U.S.C. 1319(g)(2)(B)...........  CWA.......................           10,000/125,000           20,628/257,848
33 U.S.C. 1321(b)(6)(B)(i)........  CWA.......................            10,000/25,000            17,816/44,539
33 U.S.C. 1321(b)(6)(B)(ii).......  CWA.......................           10,000/125,000           17,816/222,695
33 U.S.C. 1321(b)(7)(A)...........  CWA.......................             25,000/1,000             44,539/1,782
33 U.S.C. 1321(b)(7)(B)...........  CWA.......................                   25,000                   44,539
33 U.S.C. 1321(b)(7)(C)...........  CWA.......................                   25,000                   44,539
33 U.S.C. 1321(b)(7)(D)...........  CWA.......................            100,000/3,000            178,156/5,345
33 U.S.C. 1414b(d)(1).............  MARINE PROTECTION,                              600                    1,187
                                     RESEARCH, AND SANCTUARIES
                                     ACT (MPRSA).
33 U.S.C. 1415(a).................  MPRSA.....................           50,000/125,000          187,500/247,336
33 U.S.C. 1901 note (see            CERTAIN ALASKAN CRUISE                10,000/25,000            13,669/34,172
 1409(a)(2)(A)).                     SHIP OPERATIONS (CACSO).
33 U.S.C. 1901 note (see            CACSO.....................           10,000/125,000           13,669/170,861
 1409(a)(2)(B)).
33 U.S.C. 1901 note (see            CACSO.....................                   25,000                   34,172
 1409(b)(1)).
33 U.S.C. 1908(b)(1)..............  ACT TO PREVENT POLLUTION                     25,000                   70,117
                                     FROM SHIPS (APPS).
33 U.S.C. 1908(b)(2)..............  APPS......................                    5,000                   14,023
42 U.S.C. 300g-3(b)...............  SAFE DRINKING WATER ACT                      25,000                   53,907
                                     (SDWA).
42 U.S.C. 300g-3(g)(3)(A).........  SDWA......................                   25,000                   53,907
42 U.S.C. 300g-3(g)(3)(B).........  SDWA......................             5,000/25,000            10,781/37,561
42 U.S.C. 300g-3(g)(3)(C).........  SDWA......................                   25,000                   37,561
42 U.S.C. 300h-2(b)(1)............  SDWA......................                   25,000                   53,907
42 U.S.C. 300h-2(c)(1)............  SDWA......................           10,000/125,000           21,563/269,535
42 U.S.C. 300h-2(c)(2)............  SDWA......................            5,000/125,000           10,781/269,535
42 U.S.C. 300h-3(c)...............  SDWA......................             5,000/10,000            18,750/40,000
42 U.S.C. 300i(b).................  SDWA......................                   15,000                   22,537
42 U.S.C. 300i-1(c)...............  SDWA......................        100,000/1,000,000        131,185/1,311,850
42 U.S.C. 300j(e)(2)..............  SDWA......................                    2,500                    9,375
42 U.S.C. 300j-4(c)...............  SDWA......................                   25,000                   53,907
42 U.S.C. 300j-6(b)(2)............  SDWA......................                   25,000                   37,561
42 U.S.C. 300j-23(d)..............  SDWA......................             5,000/50,000             9,893/98,935
42 U.S.C. 4852d(b)(5).............  RESIDENTIAL LEAD--BASED                      10,000                   16,773
                                     PAINT HAZARD REDUCTION
                                     ACT OF 1992.
42 U.S.C. 4910(a)(2)..............  NOISE CONTROL ACT OF 1972.                   10,000                   35,445
42 U.S.C. 6928(a)(3)..............  RESOURCE CONSERVATION AND                    25,000                   93,750
                                     RECOVERY ACT (RCRA).
42 U.S.C. 6928(c).................  RCRA......................                   25,000                   56,467
42 U.S.C. 6928(g).................  RCRA......................                   25,000                   70,117
42 U.S.C. 6928(h)(2)..............  RCRA......................                   25,000                   56,467
42 U.S.C. 6934(e).................  RCRA......................                    5,000                   14,023
42 U.S.C. 6973(b).................  RCRA......................                    5,000                   14,023
42 U.S.C. 6991e(a)(3).............  RCRA......................                   25,000                   56,467
42 U.S.C. 6991e(d)(1).............  RCRA......................                   10,000                   22,587
42 U.S.C. 6991e(d)(2).............  RCRA......................                   10,000                   22,587
42 U.S.C. 7413(b).................  CLEAN AIR ACT (CAA).......                   25,000                   93,750
42 U.S.C. 7413(d)(1)..............  CAA.......................           25,000/200,000           44,539/356,312
42 U.S.C. 7413(d)(3)..............  CAA.......................                    5,000                    8,908
42 U.S.C. 7524(a).................  CAA.......................             25,000/2,500             44,539/4,454
42 U.S.C. 7524(c)(1)..............  CAA.......................                  200,000                  356,312
42 U.S.C. 7545(d)(1)..............  CAA.......................                   25,000                   44,539
42 U.S.C. 9604(e)(5)(B)...........  COMPREHENSIVE                                25,000                   53,907
                                     ENVIRONMENTAL RESPONSE,
                                     COMPENSATION, AND
                                     LIABILITY ACT (CERCLA).
42 U.S.C. 9606(b)(1)..............  CERCLA....................                   25,000                   53,907
42 U.S.C. 9609(a)(1)..............  CERCLA....................                   25,000                   53,907
42 U.S.C. 9609(b).................  CERCLA....................            25,000/75,000           53,907/161,721
42 U.S.C. 9609(c).................  CERCLA....................            25,000/75,000           53,907/161,721
42 U.S.C. 11045(a)................  EMERGENCY PLANNING AND                       25,000                   53,907
                                     COMMUNITY RIGHT-TO-KNOW
                                     ACT (EPCRA).

[[Page 43096]]

 
42 U.S.C. 11045(b)(1)(A)..........  EPCRA.....................                   25,000                   53,907
42 U.S.C. 11045(b)(2).............  EPCRA.....................            25,000/75,000           53,907/161,721
42 U.S.C. 11045(b)(3).............  EPCRA.....................            25,000/75,000           53,907/161,721
42 U.S.C. 11045(c)(1).............  EPCRA.....................                   25,000                   53,907
42 U.S.C. 11045(c)(2).............  EPCRA.....................                   10,000                   21,563
42 U.S.C. 11045(d)(1).............  EPCRA.....................                   25,000                   53,907
42 U.S.C. 14304(a)(1).............  MERCURY--CONTAINING AND                      10,000                   15,025
                                     RECHARGEABLE BATTERY
                                     MANAGEMENT ACT (BATTERY
                                     ACT).
42 U.S.C. 14304(g)................  BATTERY ACT...............                   10,000                   15,025
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2016-15411 Filed 6-30-16; 8:45 am]
 BILLING CODE 6560-50-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.