Civil Monetary Penalty Inflation Adjustments, 43937-43941 [2016-15947]
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Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Rules and Regulations
Federal Register notice concerning
environmental, civil rights, and other
applicable Federal state, and local law;
(vi) Obtaining disbursement of loan
funds according to this section and the
annual Federal Register notice within 5
years. Any loan funds not disbursed
within that time will be deobligated and
become unavailable for disbursement.
(2) Agency responsibilities. (i) Based
on the information presented by the Relender and any additional information
that may be requested by the Agency,
the Agency will determine the eligibility
of the applicant and project under this
subpart.
(ii) The Agency will notify the relender of its determination and any
administrative review or appeal rights
for Agency decisions made under this
subpart. Programmatic decisions based
on clear and objective statutory or
regulatory requirements are not
appealable; however, such decisions are
reviewable for appealability by the
National Appeals Division (NAD). The
applicant and re-lender may appeal any
Agency decision that directly and
adversely impacts them. For an adverse
decision that impacts the applicant, the
re-lender and applicant must jointly
execute a written request for appeal for
an alleged adverse decision made by the
Agency. An adverse decision that only
impacts the re-lender may be appealed
by the re-lender only. A decision by a
re-lender adverse to the interest of an
applicant or borrower is not a decision
by the Agency, whether or not
concurred in by the Agency. Appeals
will be conducted by USDA NAD and
will be handled in accordance with 7
CFR part 11.
(iii) For approved eligible borrowers
and projects, the Agency will confirm
that all environmental requirements as
specified in this subpart and 7 CFR part
1970 have been met and that the Relender has provided adequate security
for its loan, before the Agency will
disburse funds to the Re-lender;
(iv) The Agency will service each relender’s loan in accordance with 7 CFR
part 1951, subpart E. The Agency may
suspend further disbursements, and
pursue any other available and
appropriate remedies, if any of the relender loans become troubled,
delinquent, or otherwise in default
status, or if the re-lender is not meeting
the terms of its Relender’s Agreement.
Dated: June 29, 2016.
Lisa Mensah,
Under Secretary, Rural Development.
Dated: June 29, 2016.
Alexis Taylor,
Deputy Under Secretary, Farm and Foreign
Agricultural Services.
[FR Doc. 2016–16005 Filed 7–5–16; 8:45 am]
BILLING CODE 3410–XV–P
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of 1990 (1990 Adjustment Act),2
requires the head of each federal agency
to issue an ‘‘interim final rule’’ by July
1, 2016 adjusting for inflation each
‘‘civil monetary penalty’’ provided by
law within the agency’s jurisdiction.
The agency must then update each such
civil monetary penalty on an annual
basis every January 15 thereafter.3
II. Discussion
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Parts 250 and 385
[Docket No. RM16–16–000; Order No. 826]
Civil Monetary Penalty Inflation
Adjustments
Federal Energy Regulatory
Commission, Department of Energy.
ACTION: Interim final rule.
AGENCY:
The Federal Energy
Regulatory Commission (Commission) is
issuing an interim final rule to amend
its regulations governing the maximum
civil monetary penalties assessable for
violations of statutes, rules, and orders
within the Commission’s jurisdiction.
The Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended
most recently by the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015, requires the
Commission to issue this interim final
rule.
SUMMARY:
Effective Date: This interim final
rule is effective July 6, 2016.
FOR FURTHER INFORMATION CONTACT:
Todd Hettenbach, Attorney, Office of
Enforcement, Federal Energy Regulatory
Commission, 888 First Street NE.,
Washington, DC 20426, (202) 502–8794,
Todd.Hettenbach@ferc.gov.
SUPPLEMENTARY INFORMATION:
DATES:
Order No. 826
Interim Final Rule
1. In this interim final rule, the
Federal Energy Regulatory Commission
(Commission) is complying with its
statutory obligation to amend the civil
monetary penalties provided by law for
matters within the agency’s jurisdiction.
I. Background
2. The Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 (2015 Adjustment Act),1
which further amended the Federal
Civil Penalties Inflation Adjustment Act
1 Sec.
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3. The 2015 Adjustment Act defines a
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; (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.4 This
definition applies to the maximum civil
penalties that may be imposed under
the Federal Power Act (FPA),5 the
Natural Gas Act (NGA),6 the Natural Gas
Policy Act of 1978 (NGPA),7 and the
Interstate Commerce Act (ICA).8
4. Under the 2015 Adjustment Act, for
the initial adjustment, the first step for
such adjustment of a civil monetary
penalty for inflation requires
determining the percentage by which
the U.S. Department of Labor’s
Consumer Price Index for all-urban
consumers (CPI–U) for October of the
preceding year exceeds the CPI–U for
October of the year in which the civil
monetary penalty was last set or
adjusted under a provision of law other
than the 1990 and 2015 Adjustment
Acts.9 The Office of Management and
Budget has instructed agencies to use
the CPI–U for 1914 when calculating the
inflation multiplier for penalties
established or last adjusted prior to
1914.10 Adjustments previously made
for inflation pursuant to the 1990
Adjustment Act must be excluded.11
The first adjustment, which is the
subject of the present interim final rule,
is limited to 150 percent of the civil
monetary penalty that was in effect on
November 2, 2015.12
2 Public Law 101–410, 104 Stat. 890 (codified as
amended at 28 U.S.C. 2461 note).
3 28 U.S.C. 2461 note, at (4).
4 Id. (3).
5 16 U.S.C. 791a et seq.
6 15 U.S.C. 717 et seq.
7 15 U.S.C. 3301 et seq.
8 49 App. U.S.C. 1 et seq. (1988).
9 28 U.S.C. 2461 note, at (5)(b)..
10 See Memorandum from Shaun Donovan, Office
of Management and Budget, Implementation of the
Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, 6 (Feb. 24, 2016).
11 Id. (5)(b)(2)(A).
12 Id. (5)(b)(2)(C).
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5. The second step requires
multiplying the CPI–U percentage
increase by the applicable November 2,
2015 civil monetary penalty.13 This step
results in a base penalty increase
amount.
6. The third step requires rounding
the base penalty increase amount to the
nearest dollar.14
7. Under the 2015 Adjustment Act, an
agency is directed to use the civil
monetary penalty applicable at the time
of assessment of a civil penalty,
regardless of the date on which the
violation occurred.15
8. The Commission currently has civil
monetary penalty authority of up to
$1,000,000 per violation, per day under
section 316A(b) of the FPA.16 This civil
monetary penalty applies to violations
of provisions of Part II of the FPA and
to violations of rules and orders
promulgated pursuant to Part II of the
FPA. Congress increased this Civil
Monetary Penalty in 2005 from $10,000
to $1,000,000, and it expanded the
scope of conduct to which the penalty
applies. The Commission has not
adjusted this civil monetary penalty for
inflation. Inflation during the relevant
period was 19.397 percent 17—the
percentage by which the CPI–U for
October of the prior year (October 2015,
for which the CPI–U=237.838) exceeds
the CPI–U for October of the year in
which the Civil Monetary Penalty was
last set or adjusted (October 2005, for
which the CPI–U=199.2). The resulting
civil monetary penalty is $1,193,970.18
9. The Commission currently has civil
monetary penalty authority of $11,000
per violation, per day under section
31(c) of the FPA.19 This civil monetary
penalty applies to licensees, permittees,
and exemptees who: (a) Violate or fail
or refuse to comply with any rule or
regulation issued under Part I of the
FPA; (b) violate or fail or refuse to
comply with any term or condition of a
13 Id.
(5)(a).
14 Id.
15 Id.
(6).
U.S.C. 825o–1(b).
17 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, at 6.
18 The Commission may impose a penalty against
a user, owner, or operator of the bulk-power system
for a violation of a reliability standard pursuant to
FPA section 215(c)(3), 16 U.S.C. 824o(c)(3). The
Commission concluded in 2006 that FPA section
316A establishes the limit on such monetary
penalties. See Rule Concerning Certification of the
Electric Reliability Organization, and Procedures for
the Establishment, Approval, and Enforcement of
Electric Reliability Standards, Order No. 672, 71 FR
8662, 8711 (Feb. 17, 2006).
19 16 U.S.C. 823b(c); 18 CFR 385.1602(b).
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license, permit, or exemption under Part
I of the FPA; or (c) violate or fail or
refuse to comply with any order issued
pursuant to the Commission’s authority
to monitor and investigate licenses and
permits issued under Part I of the FPA.
Congress established this civil monetary
penalty at $10,000 in 1986.20 The only
time that the Commission adjusted this
civil monetary penalty was in 2002,
when it increased the civil monetary
penalty from $10,000 to $11,000 to
account for inflation pursuant to the
1990 Adjustment Act.21 According to
the 2015 Adjustment Act, however, the
Commission must disregard such
increases made pursuant to the 1990
Adjustment Act. Inflation between
October 1986 and October 2015 was
115.628 percent—the percentage by
which the CPI–U for October of the
prior year (October 2015, for which the
CPI–U=237.838) exceeds the CPI–U for
October of the year in which the civil
monetary penalty was last set or
adjusted for purposes of the 2015
Adjustment Act (October 1986, for
which the CPI–U=110.3).22 The
resulting increase rounded to the
nearest dollar is $11,563, and the
resulting civil monetary penalty is
$21,563.
10. Under section 315(a) of the FPA,
public utilities or licensees are currently
subject to civil forfeiture for any willful
failure to: Comply with any order of the
Commission; file any report required
under the FPA or any rule or regulation
promulgated pursuant to the FPA;
submit any information or document
required by the Commission in the
course of an investigation conducted
under the FPA; or to appear at any
hearing or investigation in response to
a subpoena issued under the FPA.23
Congress established this civil monetary
penalty at $1,000 in 1935.24 The only
time that the Commission adjusted it
was in 2002, when the Commission
increased the civil monetary penalty
from $1,000 to $1,100 to account for
inflation pursuant to the 1990
Adjustment Act.25 The Commission
must disregard such increases made
pursuant to the 1990 Adjustment Act.
20 Electric Consumers Protection Act of 1986,
Section 12(c), Pub. L. 99–495, 100 Stat 1243.
21 Civil Monetary Penalty Inflation Adjustment
Rule, Order No. 692, 67 FR 52410, 52412 (Aug. 12,
2002) (renumbered from Order No. 890).
22 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, at 6.
23 16 U.S.C. 825n(a); 18 CFR 385.1602(c).
24 49 Stat. 803, 861 (codified at 16 U.S.C. 825n(a)).
25 Civil Monetary Penalty Inflation Adjustment
Rule, 67 FR at 52412.
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Inflation during the relevant period was
1,636.044 percent—the percentage by
which the CPI–U for October of the
prior year (October 2015, for which the
CPI–U=237.838) exceeds the CPI–U for
October of the year in which the Civil
Monetary Penalty was last set or
adjusted (October 1935, for which the
CPI–U=13.7).26 However, the 2015
Adjustment Act caps civil monetary
penalty increases at 150 percent, so the
resulting increase is $1,750 and the
resulting civil monetary penalty is
$2,750.
11. The Commission currently has
civil monetary penalty authority of
$1,000,000 per violation, per day under
section 22 of the NGA.27 This civil
monetary penalty applies to violations
of the NGA, and to violations of rules,
regulations, restrictions, conditions, and
orders promulgated pursuant to the
NGA. Congress established this civil
monetary penalty in 2005, and neither
the Commission nor Congress has
adjusted it for inflation. Inflation during
the relevant period was 19.397
percent—the percentage by which the
CPI–U for October of the prior year
(October 2015, for which the CPI–
U=237.838) exceeds the CPI–U for
October of the year in which the civil
monetary penalty was last set or
adjusted (October 2005, for which the
CPI–U=199.2).28 The resulting civil
monetary penalty is $1,193,970.
12. The Commission currently has
civil monetary penalty authority of
$1,000,000 per violation, per day, under
section 504(b)(6)(A)(i) of the NGPA.29
This civil monetary penalty applies to
violations of any provision of the NGPA
and to violations of any rule or order
issued under the NGPA, including 18
CFR 358.4, 358.5, 250.16, and 284.13.
Congress increased this Civil Monetary
Penalty in 2005 from $5,000 to
$1,000,000, and the Commission has not
adjusted it since. Nor has it made
conforming changes to one of its
regulations, 18 CFR 250.16(e), to reflect
the statutory increase of this civil
monetary penalty. Inflation during the
relevant period was 19.397 percent—the
percentage by which the
CPI–U for October of the prior year
26 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, at 6.
27 15 U.S.C. 717t–1.
28 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, at 6.
29 15 U.S.C. 3414(b)(6)(A)(i).
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(October 2015, for which the CPI–
U=237.838) exceeds the CPI–U for
October of the year in which the civil
monetary penalty was last set or
adjusted (October 2005, for which the
CPI–U=199.2).30 The resulting civil
monetary penalty is $1,193,970.
13. Under section 6(10) of the ICA,
pipeline carriers, receivers, and trustees
are currently subject to a civil penalty
for failure or refusal to comply with
regulations or orders concerning posting
and filing rate schedules issued by the
Commission under section 6 of the
ICA.31 Congress established this civil
monetary penalty in 1910 at $500 per
offense and $25 per day after the first
day,32 and that penalty has not been
adjusted since. Inflation during the
relevant period was 2,254.832 percent—
the percentage by which the CPI–U for
October of the prior year (October 2015,
for which the CPI–U=237.838) exceeds
the CPI–U for October 1914 (for which
the CPI–U=10.1).33 However, the 2015
Adjustment Act caps civil monetary
penalty increases at 150 percent, so the
base penalty increase is $750, and the
per day increase is $37.50. The resulting
civil monetary penalty is $1250 per
offense and $62.50 per day after the first
day.
14. Under section 16(8) of the ICA,
pipeline carriers, representatives or
agents of carriers, receivers, trustees, or
agents of the above are currently subject
to a civil penalty for knowing or
neglectful failure to comply with orders
issued by the Commission under
sections 3 (prohibiting undue or
unreasonable preferences, advantages,
discrimination, or disadvantages), 13
(concerning Commission investigations
and power to set aside, after full
hearing, any ‘‘rate, fare, charge,
classification, regulation, or practice
caus[ing] any undue or reasonable
advantage, preference, or prejudice
. . . .’’), or 15 (empowering the
Commission, after full hearing, to set
aside any rate, fare, or charge that ‘‘is or
will be unjust or unreasonable or
unjustly discriminatory or unduly
preferential or prejudicial, or otherwise
in violation of any provisions of [the
ICA]’’).34 Congress initially established
this civil monetary penalty in 1910 at
$5,000 per offense, per day,35 and it has
not been adjusted since. Inflation during
the relevant period was 2,254.832
percent—percentage by which the CPI–
U for October of the prior year (October
2015, for which the CPI–U=237.838)
exceeds the CPI–U for October 1914 (for
which the CPI–U=10.1).36 However, the
2015 Adjustment Act caps civil
monetary penalty increases at 150
percent, so the resulting increase is
$7,500 and the resulting civil monetary
penalty is $12,500 per day.
15. Under section 19a(k) of the ICA,
pipeline carriers, receivers of pipeline
carriers, and operating trustees are
currently subject to a civil penalty for
their failure to comply with
Commission’s requirements to provide
information, or to provide access, in
connection with the Commission’s
valuation of a pipeline carrier’s property
under section 19(a) of the ICA.37
Congress established this civil monetary
penalty in 1913 at $500 per offense, per
day,38 and it has not been adjusted
since. Inflation during the relevant
period was 2,254.832 percent—
percentage by which the CPI–U for
October of the prior year (October 2015,
for which the CPI–U=237.838) exceeds
the CPI–U for October 1914 (for which
the CPI–U=10.1).39 However, the 2015
Adjustment Act caps civil monetary
penalty increases at 150 percent, so the
resulting increase is $750 and the
resulting civil monetary penalty is
$1,250 per offense, per day.
16. Under section 20(7)(a) of the ICA,
pipeline carriers and their lessors are
currently subject to a civil penalty for
their failure to keep or submit certain
accounts, records, or memoranda
required by the Commission under
authority granted in section 20 of the
ICA.40 Congress last adjusted this civil
monetary penalty in 1940 at $500 per
offense, per day,41 and it has not been
adjusted since. Inflation during the
relevant period was 1,598.843 percent—
percentage by which the CPI–U for
October of the prior year (October 2015,
for which the CPI–U=237.838) exceeds
the CPI–U for October of the year in
which the civil monetary penalty was
last set or adjusted (October 1940, for
which the CPI–U=14).42 However, the
2015 Adjustment Act caps civil
monetary penalty increases at 150
percent, so the resulting increase is $750
and the resulting civil monetary penalty
is $1,250 per offense, per day.
17. The preceding adjustments are
reflected in the following table:
Source
Existing maximum civil
monetary penalty
16 U.S.C. 825o–1(b), Sec. 316A of the Federal
Power Act.
16 U.S.C. 823b(c), Sec. 31(c) of the Federal
Power Act.
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43939
$1,000,000 per violation, per day ....................
$1,193,970 per violation, per day.
$11,000 per violation, per day .........................
$21,563 per violation, per day.
30 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, at https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, at 6. The Office of
Management and Budget has instructed agencies to
use the CPI–U for 1914 when calculating the
inflation multiplier for penalties established or last
adjusted prior to 1914. See Memorandum from
Shaun Donovan, at 6.
31 49 App. U.S.C. 6(10) (1988).
32 36 Stat. 539, 548 (codified at 49 App. U.S.C.
6(10) (1988).
33 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, at https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, Office of Management and
Budget, Implementation of the Federal Civil
Penalties Inflation Adjustment Act Improvements
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Act of 2015, 6 (Feb. 24, 2016). The Office of
Management and Budget has instructed agencies to
use the CPI–U for 1914 when calculating the
inflation multiplier for penalties established or last
adjusted prior to 1914. See Memorandum from
Shaun Donovan, at 6.
34 49 App. U.S.C. 16(8) (1988).
35 36 Stat. 539, 554 (codified at 49 App. U.S.C.
16(8) (1988)).
36 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, at https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, at 6. The Office of
Management and Budget has instructed agencies to
use the CPI–U for 1914 when calculating the
inflation multiplier for penalties established or last
adjusted prior to 1914. See Memorandum from
Shaun Donovan, at 6.
37 49 App. U.S.C. 19a(k) (1988).
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New adjusted civil monetary penalty
38 37 Stat. 701, 703 (codified at 49 App. U.S.C.
19a(k) (1988)).
39 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, at https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, at 6. The Office of
Management and Budget has instructed agencies to
use the CPI–U for 1914 when calculating the
inflation multiplier for penalties established or last
adjusted prior to 1914. See Memorandum from
Shaun Donovan, at 6.
40 49 App. U.S.C. 20(7)(a) (1988).
41 54 Stat. 916, 918 (codified at 49 App. U.S.C.
20(7)(a) (1988)).
42 See Bureau of Labor Statistics, Table 24.
Historical Consumer Price Index for All Urban
Consumers (CPI–U): U.S. City Average, All Items—
Continued, at https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum
from Shaun Donovan, at 6.
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Source
Existing maximum civil
monetary penalty
16 U.S.C. 825n(a), Sec. 315(a) of the Federal
Power Act.
15 U.S.C. 717t–1, Sec. 22 of the Natural Gas
Act.
15 U.S.C. 3414(b)(6)(A)(i), Sec. 504(b)(6)(A)(i)
of the Natural Gas Policy Act of 1978.
49 App. U.S.C. 6(10) (1988), Sec. 6(10) of the
Interstate Commerce Act.
49 App. U.S.C. 16(8) (1988), Sec. 16(8) of the
Interstate Commerce Act.
49 App. U.S.C. 19a(k) (1988), Sec. 19a(k) of
the Interstate Commerce Act.
49 App. U.S.C. 20(7)(a) (1988), Sec. 20(7)(a)
of the Interstate Commerce Act.
$ 1,100 per violation ........................................
$2,750 per violation.
$1,000,000 per violation, per day ....................
$1,193,970 per violation, per day.
$1,000,000 per violation, per day ....................
$1,193,970 per violation, per day.
$500 per offense and $25 per day after the
first day.
$5,000 per violation, per day ...........................
$1,250 per offense and $62.50 per day after
the first day.
$12,500 per violation, per day.
$500 per offense, per day ...............................
$1,250 per offense, per day.
$500 per offense, per day ...............................
$1,250 per offense, per day.
III. Administrative Findings
18. Under the Administrative
Procedure Act, a final rule may be
issued without prior public notice and
comment if the agency finds that notice
and comment are impractical,
unnecessary, or contrary to the public
interest.43 The Commission finds that
prior notice and comment for this
rulemaking would be impractical,
unnecessary, and contrary to the public
interest. The Commission is required by
law to adopt an interim final rule
adjusting its civil monetary penalties for
inflation. Moreover, the formula for the
civil monetary penalty adjustment is
prescribed by Congress and is not
subject to the Commission’s discretion.
Because the Commission is required by
law to undertake these inflation
adjustments, and because the
Commission lacks discretion with
respect to the method and amount of the
adjustments, prior notice and comment
would be impractical, unnecessary, and
contrary to the public interest.
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IV. Regulatory Flexibility Statement
19. The Regulatory Flexibility Act, as
amended, requires agencies to certify
that rules promulgated under their
authority will not have a significant
economic impact on a substantial
number of small businesses.44 The
requirements of the Regulatory
Flexibility Act apply only to rules
promulgated following notice and
comment.45 The requirements of the
Regulatory Flexibility Act do not apply
to this rulemaking because the
Commission is issuing this interim final
rule without notice and comment.
V. Paperwork Reduction Act
20. This rule does not require the
collection of information. The
Commission is therefore not required to
submit this rule for review to the Office
of Management and Budget pursuant to
the Paperwork Reduction Act of 1995.46
VI. Document Availability
21. In addition to publishing the full
text of this document in the Federal
Register, the Commission provides all
interested persons an opportunity to
view and print the contents of this
document via the Internet through the
Commission’s Home Page (https://
www.ferc.gov) and in the Commission’s
Public Reference Room during normal
business hours (8:30 a.m. to 5:00 p.m.
Eastern time) at 888 First Street NE.,
Room 2A, Washington, DC 20426.
22. From the Commission’s Home
Page on the Internet, this information is
available on eLibrary. The full text of
this document is available on eLibrary
in PDF and Microsoft Word format for
viewing, printing, and downloading. To
access this document in eLibrary, type
the docket number (excluding the last
three digits) in the docket number field.
23. User assistance is available for
eLibrary and the Commission’s Web site
during normal business hours from the
Commission’s Online Support at 202–
502–6652 (toll free at 1–866–208–3676)
or email at ferconlinesupport@ferc.gov,
or the Public Reference Room at (202)
502–8371, TTY (202) 502–8659,
public.referenceroom@ferc.gov.
18 CFR Part 250
Natural gas, Reporting and
recordkeeping requirements.
18 CFR Part 385
Administrative practice and
procedure, Electric power, Penalties,
Pipelines, Reporting and recordkeeping
requirements.
By the Commission.
Issued: June 29, 2016.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the
Commission amends parts 250 and 385,
Chapter I, Title 18, Code of Federal
Regulations as follows:
PART 250—FORMS
24. For the same reasons the
Commission has determined that public
notice and comment are unnecessary,
impractical, and contrary to the public
interest, the Commission finds good
cause to adopt an effective date that is
less than 30 days after the date of
publication in the Federal Register
pursuant to the Administrative
Procedure Act,47 and therefore, the
Authority: 15 U.S.C. 717–717w, 3301–
3432; 42 U.S.C. 7101–7352; 28 U.S.C. 2461
note.
46 44
47 5
Jkt 238001
List of Subjects
■
U.S.C. 553(b)(3)(B).
44 5 U.S.C. 601 et seq.
45 5 U.S.C. 603, 604.
12:09 Jul 05, 2016
regulation is effective upon publication
in the Federal Register.
25. The Commission has determined,
with the concurrence of the
Administrator of the Office of
Information and Regulatory Affairs of
the Office of Management and Budget,
that this rule is not a ‘‘major rule’’ as
defined in section 351 of the Small
Business Regulatory Enforcement
Fairness Act of 1996. This Final Rule is
being submitted to the Senate, House,
and Government Accountability Office.
VII. Effective Date and Congressional
Notification
43 5
VerDate Sep<11>2014
New adjusted civil monetary penalty
PO 00000
U.S.C. 3507(d).
U.S.C. 553(d)(3).
Frm 00014
Fmt 4700
Sfmt 4700
1. The authority citation for part 250
is revised to read as follows:
2. Amend § 250.16 by revising
paragraph (e)(1) to read as follows:
■
§ 250.16 Format of compliance plan
transportation services and affiliate
transactions.
*
*
*
*
*
(e) Penalty for failure to comply. (1)
Any person who transports gas for
others pursuant to Subparts B or G of
E:\FR\FM\06JYR1.SGM
06JYR1
Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Rules and Regulations
Part 284 of this chapter and who
knowingly violates the requirements of
§§ 358.4 and 358.5, § 250.16, or § 284.13
of this chapter will be subject, pursuant
to sections 311(c), 501, and 504(b)(6) of
the Natural Gas Policy Act of 1978, to
a civil penalty, which the Commission
may assess, of not more than $1,193,970
for any one violation.
*
*
*
*
*
PART 385—RULES OF PRACTICE AND
PROCEDURE
3. The authority citation for part 385
is revised to read as follows:
■
(e) 15 U.S.C. 717t–1, Natural Gas Act:
$1,193,970 per day.
(f) 49 App. U.S.C. 6(10) (1988),
Interstate Commerce Act: $1,250 per
offense and $62.50 per day after the first
day.
(g) 49 App. U.S.C. 16(8) (1988),
Interstate Commerce Act: $12,500 per
day.
(h) 49 App. U.S.C. 19a(k) (1988),
Interstate Commerce Act: $1,250 per
day.
(i) 49 App. U.S.C. 20(7)(a) (1988),
Interstate Commerce Act: $1,250 per
day.
[FR Doc. 2016–15947 Filed 7–5–16; 8:45 am]
Authority: 5 U.S.C. 551–557; 15 U.S.C.
717–717z, 3301–3432; 16 U.S.C. 791a–825v,
2601–2645; 28 U.S.C. 2461; 31 U.S.C. 3701,
9701; 42 U.S.C. 7101–7352, 16441, 16451–
16463; 49 U.S.C. 60502; 49 App. U.S.C. 1–85
(1988); 28 U.S.C. 2461 note (1990); 28 U.S.C.
2461 note (2015).
BILLING CODE 6717–01–P
4. Revise § 385.1504(a) to read as
follows:
25 CFR Part 575
■
§ 385.1504
1504).
Scope and purpose (Rule
ehiers on DSK5VPTVN1PROD with RULES
§ 385.1602 Civil penalties, as adjusted
(Rule 1602).
The current inflation-adjusted civil
monetary penalties provided by law
within the jurisdiction of the
Commission are:
(a) 15 U.S.C. 3414(b)(6)(A)(i), Natural
Gas Policy Act of 1978: $1,193,970 per
day.
(b) 16 U.S.C. 823b(c), Federal Power
Act: $21,563 per day.
(c) 16 U.S.C. 825n(a), Federal Power
Act: $2,750.
(d) 16 U.S.C. 825o–1(b), Federal
Power Act: $1,193,970 per day.
12:09 Jul 05, 2016
Jkt 238001
National Indian Gaming
Commission.
ACTION: Interim final rule.
AGENCY:
The purpose of this subpart is to make
inflation adjustments to the civil
monetary penalties provided by law
within the jurisdiction of the
Commission. These penalties shall be
subject to review and adjustment as
necessary at least every year in
accordance with the Federal Civil
Penalties Inflation Act of 1990, as
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015.
■ 6. Revise § 385.1602 to read as
follows:
VerDate Sep<11>2014
National Indian Gaming Commission
Civil Penalty Inflation Adjustment
Maximum civil penalty (Rule
(a) Except as provided in paragraph
(b) of this section, the Commission may
assess a civil penalty of up to $21,563
for each day that the violation
continues.
*
*
*
*
*
■ 5. Revise § 385.1601 to read as
follows:
§ 385.1601
1601).
DEPARTMENT OF THE INTERIOR
In compliance with the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 and Office of Management and
Budget (OMB) guidance, this rule
adjusts the level of the civil monetary
penalty, contained in the National
Indian Gaming Commission’s (NIGC or
Commission) regulation, with an initial
‘‘catch-up’’ adjustment.
DATES: This interim final rule will have
an effective date of August 1, 2016.
FOR FURTHER INFORMATION CONTACT:
Contact Armando J. Acosta, Senior
Attorney, Office of General Counsel,
National Indian Gaming Commission, at
(202) 632–7003; fax (202) 632–7066 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
On November 2, 2015, the President
signed into law the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (Sec. 701 of
Pub. L. 114–74) (the Act). The Act
requires federal agencies to adjust the
level of civil monetary penalties with an
initial ‘‘catch-up’’ adjustment through
an interim final rulemaking and then
make subsequent annual adjustments
for inflation. A civil monetary penalty is
any assessment with a dollar amount
that is levied for a violation of a federal
civil statute or regulation, and is
assessed or enforceable through a civil
action in federal court or an
administrative proceeding.
PO 00000
Frm 00015
Fmt 4700
Sfmt 4700
43941
II. Calculation of Adjustment
The OMB issued guidance on
calculating the catch-up adjustment. See
February 24, 2016, Memorandum for the
Heads of Executive Departments and
Agencies, from Shaun Donovan,
Director, Office of Management and
Budget, Subject: Implementation of the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015. Under this guidance, the
Commission has identified one
applicable civil monetary penalty and
calculated the catch-up adjustment.
This rule adjusts the level of the civil
monetary penalty contained in 25 CFR
575.4 (‘‘The Chairman may assess a civil
fine, not to exceed $25,000 per
violation, against a tribe, management
contractor, or individual operating
Indian gaming for each notice of
violation . . .’’). The OMB provided to
agencies a table of multipliers to adjust
the penalty level based on the year that
the penalty was established or last
adjusted by statute or regulation. The
multiplier for 1988 (when the Indian
Gaming Regulatory Act was enacted) is
1.97869 ($25,000 × 1.97869 = $49,467).
III. Regulatory Matters
Regulatory Planning and Review
This interim final rule is not a
significant rule and OMB has reviewed
this rule under Executive Order 12866.
This rule provides an initial catch-up
adjustment of penalties to account for
inflation.
(1) This rule will not have an effect of
$100 million or more on the economy or
will not adversely affect, in a material
way, the economy, productivity,
competition, jobs, the environment,
public health or safety, or state, local, or
tribal governments or communities.
(2) This rule will not create a serious
inconsistency or otherwise interfere
with an action taken or planned by
another agency.
(3) This rule does not involve
entitlements, grants, user fees, or loan
programs or the rights or obligations of
recipients.
(4) This regulatory change does not
raise novel legal or policy issues.
Regulatory Flexibility Act
The Commission certifies that this
document will not have a significant
economic effect on a substantial number
of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.)
because the rule makes adjustments for
inflation.
E:\FR\FM\06JYR1.SGM
06JYR1
]]>Agencies
[Federal Register Volume 81, Number 129 (Wednesday, July 6, 2016)]
[Rules and Regulations]
[Pages 43937-43941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15947]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 250 and 385
[Docket No. RM16-16-000; Order No. 826]
Civil Monetary Penalty Inflation Adjustments
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) is
issuing an interim final rule to amend its regulations governing the
maximum civil monetary penalties assessable for violations of statutes,
rules, and orders within the Commission's jurisdiction. The Federal
Civil Penalties Inflation Adjustment Act of 1990, as amended most
recently by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, requires the Commission to issue this interim
final rule.
DATES: Effective Date: This interim final rule is effective July 6,
2016.
FOR FURTHER INFORMATION CONTACT: Todd Hettenbach, Attorney, Office of
Enforcement, Federal Energy Regulatory Commission, 888 First Street
NE., Washington, DC 20426, (202) 502-8794, Todd.Hettenbach@ferc.gov.
SUPPLEMENTARY INFORMATION:
Order No. 826
Interim Final Rule
1. In this interim final rule, the Federal Energy Regulatory
Commission (Commission) is complying with its statutory obligation to
amend the civil monetary penalties provided by law for matters within
the agency's jurisdiction.
I. Background
2. The Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (2015 Adjustment Act),\1\ which further
amended the Federal Civil Penalties Inflation Adjustment Act of 1990
(1990 Adjustment Act),\2\ requires the head of each federal agency to
issue an ``interim final rule'' by July 1, 2016 adjusting for inflation
each ``civil monetary penalty'' provided by law within the agency's
jurisdiction. The agency must then update each such civil monetary
penalty on an annual basis every January 15 thereafter.\3\
---------------------------------------------------------------------------
\1\ Sec. 701, Public Law 114-74, 129 Stat. 584, 599.
\2\ Public Law 101-410, 104 Stat. 890 (codified as amended at 28
U.S.C. 2461 note).
\3\ 28 U.S.C. 2461 note, at (4).
---------------------------------------------------------------------------
II. Discussion
3. The 2015 Adjustment Act defines a 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; (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.\4\
This definition applies to the maximum civil penalties that may be
imposed under the Federal Power Act (FPA),\5\ the Natural Gas Act
(NGA),\6\ the Natural Gas Policy Act of 1978 (NGPA),\7\ and the
Interstate Commerce Act (ICA).\8\
---------------------------------------------------------------------------
\4\ Id. (3).
\5\ 16 U.S.C. 791a et seq.
\6\ 15 U.S.C. 717 et seq.
\7\ 15 U.S.C. 3301 et seq.
\8\ 49 App. U.S.C. 1 et seq. (1988).
---------------------------------------------------------------------------
4. Under the 2015 Adjustment Act, for the initial adjustment, the
first step for such adjustment of a civil monetary penalty for
inflation requires determining the percentage by which the U.S.
Department of Labor's Consumer Price Index for all-urban consumers
(CPI-U) for October of the preceding year exceeds the CPI-U for October
of the year in which the civil monetary penalty was last set or
adjusted under a provision of law other than the 1990 and 2015
Adjustment Acts.\9\ The Office of Management and Budget has instructed
agencies to use the CPI-U for 1914 when calculating the inflation
multiplier for penalties established or last adjusted prior to
1914.\10\ Adjustments previously made for inflation pursuant to the
1990 Adjustment Act must be excluded.\11\ The first adjustment, which
is the subject of the present interim final rule, is limited to 150
percent of the civil monetary penalty that was in effect on November 2,
2015.\12\
---------------------------------------------------------------------------
\9\ 28 U.S.C. 2461 note, at (5)(b)..
\10\ See Memorandum from Shaun Donovan, Office of Management and
Budget, Implementation of the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, 6 (Feb. 24, 2016).
\11\ Id. (5)(b)(2)(A).
\12\ Id. (5)(b)(2)(C).
---------------------------------------------------------------------------
[[Page 43938]]
5. The second step requires multiplying the CPI-U percentage
increase by the applicable November 2, 2015 civil monetary penalty.\13\
This step results in a base penalty increase amount.
---------------------------------------------------------------------------
\13\ Id. (5)(a).
---------------------------------------------------------------------------
6. The third step requires rounding the base penalty increase
amount to the nearest dollar.\14\
---------------------------------------------------------------------------
\14\ Id.
---------------------------------------------------------------------------
7. Under the 2015 Adjustment Act, an agency is directed to use the
civil monetary penalty applicable at the time of assessment of a civil
penalty, regardless of the date on which the violation occurred.\15\
---------------------------------------------------------------------------
\15\ Id. (6).
---------------------------------------------------------------------------
8. The Commission currently has civil monetary penalty authority of
up to $1,000,000 per violation, per day under section 316A(b) of the
FPA.\16\ This civil monetary penalty applies to violations of
provisions of Part II of the FPA and to violations of rules and orders
promulgated pursuant to Part II of the FPA. Congress increased this
Civil Monetary Penalty in 2005 from $10,000 to $1,000,000, and it
expanded the scope of conduct to which the penalty applies. The
Commission has not adjusted this civil monetary penalty for inflation.
Inflation during the relevant period was 19.397 percent \17\--the
percentage by which the CPI-U for October of the prior year (October
2015, for which the CPI-U=237.838) exceeds the CPI-U for October of the
year in which the Civil Monetary Penalty was last set or adjusted
(October 2005, for which the CPI-U=199.2). The resulting civil monetary
penalty is $1,193,970.\18\
---------------------------------------------------------------------------
\16\ 16 U.S.C. 825o-1(b).
\17\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum from Shaun
Donovan, at 6.
\18\ The Commission may impose a penalty against a user, owner,
or operator of the bulk-power system for a violation of a
reliability standard pursuant to FPA section 215(c)(3), 16 U.S.C.
824o(c)(3). The Commission concluded in 2006 that FPA section 316A
establishes the limit on such monetary penalties. See Rule
Concerning Certification of the Electric Reliability Organization,
and Procedures for the Establishment, Approval, and Enforcement of
Electric Reliability Standards, Order No. 672, 71 FR 8662, 8711
(Feb. 17, 2006).
---------------------------------------------------------------------------
9. The Commission currently has civil monetary penalty authority of
$11,000 per violation, per day under section 31(c) of the FPA.\19\ This
civil monetary penalty applies to licensees, permittees, and exemptees
who: (a) Violate or fail or refuse to comply with any rule or
regulation issued under Part I of the FPA; (b) violate or fail or
refuse to comply with any term or condition of a license, permit, or
exemption under Part I of the FPA; or (c) violate or fail or refuse to
comply with any order issued pursuant to the Commission's authority to
monitor and investigate licenses and permits issued under Part I of the
FPA. Congress established this civil monetary penalty at $10,000 in
1986.\20\ The only time that the Commission adjusted this civil
monetary penalty was in 2002, when it increased the civil monetary
penalty from $10,000 to $11,000 to account for inflation pursuant to
the 1990 Adjustment Act.\21\ According to the 2015 Adjustment Act,
however, the Commission must disregard such increases made pursuant to
the 1990 Adjustment Act. Inflation between October 1986 and October
2015 was 115.628 percent--the percentage by which the CPI-U for October
of the prior year (October 2015, for which the CPI-U=237.838) exceeds
the CPI-U for October of the year in which the civil monetary penalty
was last set or adjusted for purposes of the 2015 Adjustment Act
(October 1986, for which the CPI-U=110.3).\22\ The resulting increase
rounded to the nearest dollar is $11,563, and the resulting civil
monetary penalty is $21,563.
---------------------------------------------------------------------------
\19\ 16 U.S.C. 823b(c); 18 CFR 385.1602(b).
\20\ Electric Consumers Protection Act of 1986, Section 12(c),
Pub. L. 99-495, 100 Stat 1243.
\21\ Civil Monetary Penalty Inflation Adjustment Rule, Order No.
692, 67 FR 52410, 52412 (Aug. 12, 2002) (renumbered from Order No.
890).
\22\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum from Shaun
Donovan, at 6.
---------------------------------------------------------------------------
10. Under section 315(a) of the FPA, public utilities or licensees
are currently subject to civil forfeiture for any willful failure to:
Comply with any order of the Commission; file any report required under
the FPA or any rule or regulation promulgated pursuant to the FPA;
submit any information or document required by the Commission in the
course of an investigation conducted under the FPA; or to appear at any
hearing or investigation in response to a subpoena issued under the
FPA.\23\ Congress established this civil monetary penalty at $1,000 in
1935.\24\ The only time that the Commission adjusted it was in 2002,
when the Commission increased the civil monetary penalty from $1,000 to
$1,100 to account for inflation pursuant to the 1990 Adjustment
Act.\25\ The Commission must disregard such increases made pursuant to
the 1990 Adjustment Act. Inflation during the relevant period was
1,636.044 percent--the percentage by which the CPI-U for October of the
prior year (October 2015, for which the CPI-U=237.838) exceeds the CPI-
U for October of the year in which the Civil Monetary Penalty was last
set or adjusted (October 1935, for which the CPI-U=13.7).\26\ However,
the 2015 Adjustment Act caps civil monetary penalty increases at 150
percent, so the resulting increase is $1,750 and the resulting civil
monetary penalty is $2,750.
---------------------------------------------------------------------------
\23\ 16 U.S.C. 825n(a); 18 CFR 385.1602(c).
\24\ 49 Stat. 803, 861 (codified at 16 U.S.C. 825n(a)).
\25\ Civil Monetary Penalty Inflation Adjustment Rule, 67 FR at
52412.
\26\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum from Shaun
Donovan, at 6.
---------------------------------------------------------------------------
11. The Commission currently has civil monetary penalty authority
of $1,000,000 per violation, per day under section 22 of the NGA.\27\
This civil monetary penalty applies to violations of the NGA, and to
violations of rules, regulations, restrictions, conditions, and orders
promulgated pursuant to the NGA. Congress established this civil
monetary penalty in 2005, and neither the Commission nor Congress has
adjusted it for inflation. Inflation during the relevant period was
19.397 percent--the percentage by which the CPI-U for October of the
prior year (October 2015, for which the CPI-U=237.838) exceeds the CPI-
U for October of the year in which the civil monetary penalty was last
set or adjusted (October 2005, for which the CPI-U=199.2).\28\ The
resulting civil monetary penalty is $1,193,970.
---------------------------------------------------------------------------
\27\ 15 U.S.C. 717t-1.
\28\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, https://www.bls.gov/cpi/cpid1602.pdf
(last visited March 22, 2016); see also Memorandum from Shaun
Donovan, at 6.
---------------------------------------------------------------------------
12. The Commission currently has civil monetary penalty authority
of $1,000,000 per violation, per day, under section 504(b)(6)(A)(i) of
the NGPA.\29\ This civil monetary penalty applies to violations of any
provision of the NGPA and to violations of any rule or order issued
under the NGPA, including 18 CFR 358.4, 358.5, 250.16, and 284.13.
Congress increased this Civil Monetary Penalty in 2005 from $5,000 to
$1,000,000, and the Commission has not adjusted it since. Nor has it
made conforming changes to one of its regulations, 18 CFR 250.16(e), to
reflect the statutory increase of this civil monetary penalty.
Inflation during the relevant period was 19.397 percent--the percentage
by which the CPI-U for October of the prior year
[[Page 43939]]
(October 2015, for which the CPI-U=237.838) exceeds the CPI-U for
October of the year in which the civil monetary penalty was last set or
adjusted (October 2005, for which the CPI-U=199.2).\30\ The resulting
civil monetary penalty is $1,193,970.
---------------------------------------------------------------------------
\29\ 15 U.S.C. 3414(b)(6)(A)(i).
\30\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, at https://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from
Shaun Donovan, at 6. The Office of Management and Budget has
instructed agencies to use the CPI-U for 1914 when calculating the
inflation multiplier for penalties established or last adjusted
prior to 1914. See Memorandum from Shaun Donovan, at 6.
---------------------------------------------------------------------------
13. Under section 6(10) of the ICA, pipeline carriers, receivers,
and trustees are currently subject to a civil penalty for failure or
refusal to comply with regulations or orders concerning posting and
filing rate schedules issued by the Commission under section 6 of the
ICA.\31\ Congress established this civil monetary penalty in 1910 at
$500 per offense and $25 per day after the first day,\32\ and that
penalty has not been adjusted since. Inflation during the relevant
period was 2,254.832 percent--the percentage by which the CPI-U for
October of the prior year (October 2015, for which the CPI-U=237.838)
exceeds the CPI-U for October 1914 (for which the CPI-U=10.1).\33\
However, the 2015 Adjustment Act caps civil monetary penalty increases
at 150 percent, so the base penalty increase is $750, and the per day
increase is $37.50. The resulting civil monetary penalty is $1250 per
offense and $62.50 per day after the first day.
---------------------------------------------------------------------------
\31\ 49 App. U.S.C. 6(10) (1988).
\32\ 36 Stat. 539, 548 (codified at 49 App. U.S.C. 6(10) (1988).
\33\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, at https://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from
Shaun Donovan, Office of Management and Budget, Implementation of
the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015, 6 (Feb. 24, 2016). The Office of Management and Budget
has instructed agencies to use the CPI-U for 1914 when calculating
the inflation multiplier for penalties established or last adjusted
prior to 1914. See Memorandum from Shaun Donovan, at 6.
---------------------------------------------------------------------------
14. Under section 16(8) of the ICA, pipeline carriers,
representatives or agents of carriers, receivers, trustees, or agents
of the above are currently subject to a civil penalty for knowing or
neglectful failure to comply with orders issued by the Commission under
sections 3 (prohibiting undue or unreasonable preferences, advantages,
discrimination, or disadvantages), 13 (concerning Commission
investigations and power to set aside, after full hearing, any ``rate,
fare, charge, classification, regulation, or practice caus[ing] any
undue or reasonable advantage, preference, or prejudice . . . .''), or
15 (empowering the Commission, after full hearing, to set aside any
rate, fare, or charge that ``is or will be unjust or unreasonable or
unjustly discriminatory or unduly preferential or prejudicial, or
otherwise in violation of any provisions of [the ICA]'').\34\ Congress
initially established this civil monetary penalty in 1910 at $5,000 per
offense, per day,\35\ and it has not been adjusted since. Inflation
during the relevant period was 2,254.832 percent--percentage by which
the CPI-U for October of the prior year (October 2015, for which the
CPI-U=237.838) exceeds the CPI-U for October 1914 (for which the CPI-
U=10.1).\36\ However, the 2015 Adjustment Act caps civil monetary
penalty increases at 150 percent, so the resulting increase is $7,500
and the resulting civil monetary penalty is $12,500 per day.
---------------------------------------------------------------------------
\34\ 49 App. U.S.C. 16(8) (1988).
\35\ 36 Stat. 539, 554 (codified at 49 App. U.S.C. 16(8)
(1988)).
\36\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, at https://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from
Shaun Donovan, at 6. The Office of Management and Budget has
instructed agencies to use the CPI-U for 1914 when calculating the
inflation multiplier for penalties established or last adjusted
prior to 1914. See Memorandum from Shaun Donovan, at 6.
---------------------------------------------------------------------------
15. Under section 19a(k) of the ICA, pipeline carriers, receivers
of pipeline carriers, and operating trustees are currently subject to a
civil penalty for their failure to comply with Commission's
requirements to provide information, or to provide access, in
connection with the Commission's valuation of a pipeline carrier's
property under section 19(a) of the ICA.\37\ Congress established this
civil monetary penalty in 1913 at $500 per offense, per day,\38\ and it
has not been adjusted since. Inflation during the relevant period was
2,254.832 percent--percentage by which the CPI-U for October of the
prior year (October 2015, for which the CPI-U=237.838) exceeds the CPI-
U for October 1914 (for which the CPI-U=10.1).\39\ However, the 2015
Adjustment Act caps civil monetary penalty increases at 150 percent, so
the resulting increase is $750 and the resulting civil monetary penalty
is $1,250 per offense, per day.
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\37\ 49 App. U.S.C. 19a(k) (1988).
\38\ 37 Stat. 701, 703 (codified at 49 App. U.S.C. 19a(k)
(1988)).
\39\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, at https://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from
Shaun Donovan, at 6. The Office of Management and Budget has
instructed agencies to use the CPI-U for 1914 when calculating the
inflation multiplier for penalties established or last adjusted
prior to 1914. See Memorandum from Shaun Donovan, at 6.
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16. Under section 20(7)(a) of the ICA, pipeline carriers and their
lessors are currently subject to a civil penalty for their failure to
keep or submit certain accounts, records, or memoranda required by the
Commission under authority granted in section 20 of the ICA.\40\
Congress last adjusted this civil monetary penalty in 1940 at $500 per
offense, per day,\41\ and it has not been adjusted since. Inflation
during the relevant period was 1,598.843 percent--percentage by which
the CPI-U for October of the prior year (October 2015, for which the
CPI-U=237.838) exceeds the CPI-U for October of the year in which the
civil monetary penalty was last set or adjusted (October 1940, for
which the CPI-U=14).\42\ However, the 2015 Adjustment Act caps civil
monetary penalty increases at 150 percent, so the resulting increase is
$750 and the resulting civil monetary penalty is $1,250 per offense,
per day.
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\40\ 49 App. U.S.C. 20(7)(a) (1988).
\41\ 54 Stat. 916, 918 (codified at 49 App. U.S.C. 20(7)(a)
(1988)).
\42\ See Bureau of Labor Statistics, Table 24. Historical
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, All Items--Continued, at https://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from
Shaun Donovan, at 6.
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17. The preceding adjustments are reflected in the following table:
------------------------------------------------------------------------
Existing maximum
Source civil monetary New adjusted civil
penalty monetary penalty
------------------------------------------------------------------------
16 U.S.C. 825o-1(b), Sec. $1,000,000 per $1,193,970 per
316A of the Federal Power violation, per day. violation, per day.
Act.
16 U.S.C. 823b(c), Sec. $11,000 per $21,563 per
31(c) of the Federal Power violation, per day. violation, per day.
Act.
[[Page 43940]]
16 U.S.C. 825n(a), Sec. $ 1,100 per $2,750 per
315(a) of the Federal Power violation. violation.
Act.
15 U.S.C. 717t-1, Sec. 22 of $1,000,000 per $1,193,970 per
the Natural Gas Act. violation, per day. violation, per day.
15 U.S.C. 3414(b)(6)(A)(i), $1,000,000 per $1,193,970 per
Sec. 504(b)(6)(A)(i) of the violation, per day. violation, per day.
Natural Gas Policy Act of
1978.
49 App. U.S.C. 6(10) (1988), $500 per offense and $1,250 per offense
Sec. 6(10) of the $25 per day after and $62.50 per day
Interstate Commerce Act. the first day. after the first
day.
49 App. U.S.C. 16(8) (1988), $5,000 per $12,500 per
Sec. 16(8) of the violation, per day. violation, per day.
Interstate Commerce Act.
49 App. U.S.C. 19a(k) $500 per offense, $1,250 per offense,
(1988), Sec. 19a(k) of the per day. per day.
Interstate Commerce Act.
49 App. U.S.C. 20(7)(a) $500 per offense, $1,250 per offense,
(1988), Sec. 20(7)(a) of per day. per day.
the Interstate Commerce Act.
------------------------------------------------------------------------
III. Administrative Findings
18. Under the Administrative Procedure Act, a final rule may be
issued without prior public notice and comment if the agency finds that
notice and comment are impractical, unnecessary, or contrary to the
public interest.\43\ The Commission finds that prior notice and comment
for this rulemaking would be impractical, unnecessary, and contrary to
the public interest. The Commission is required by law to adopt an
interim final rule adjusting its civil monetary penalties for
inflation. Moreover, the formula for the civil monetary penalty
adjustment is prescribed by Congress and is not subject to the
Commission's discretion. Because the Commission is required by law to
undertake these inflation adjustments, and because the Commission lacks
discretion with respect to the method and amount of the adjustments,
prior notice and comment would be impractical, unnecessary, and
contrary to the public interest.
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\43\ 5 U.S.C. 553(b)(3)(B).
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IV. Regulatory Flexibility Statement
19. The Regulatory Flexibility Act, as amended, requires agencies
to certify that rules promulgated under their authority will not have a
significant economic impact on a substantial number of small
businesses.\44\ The requirements of the Regulatory Flexibility Act
apply only to rules promulgated following notice and comment.\45\ The
requirements of the Regulatory Flexibility Act do not apply to this
rulemaking because the Commission is issuing this interim final rule
without notice and comment.
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\44\ 5 U.S.C. 601 et seq.
\45\ 5 U.S.C. 603, 604.
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V. Paperwork Reduction Act
20. This rule does not require the collection of information. The
Commission is therefore not required to submit this rule for review to
the Office of Management and Budget pursuant to the Paperwork Reduction
Act of 1995.\46\
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\46\ 44 U.S.C. 3507(d).
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VI. Document Availability
21. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and print the contents of this document via the
Internet through the Commission's Home Page (https://www.ferc.gov) and
in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A,
Washington, DC 20426.
22. From the Commission's Home Page on the Internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and downloading. To access this document in eLibrary, type
the docket number (excluding the last three digits) in the docket
number field.
23. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from the Commission's Online
Support at 202-502-6652 (toll free at 1-866-208-3676) or email at
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659, public.referenceroom@ferc.gov.
VII. Effective Date and Congressional Notification
24. For the same reasons the Commission has determined that public
notice and comment are unnecessary, impractical, and contrary to the
public interest, the Commission finds good cause to adopt an effective
date that is less than 30 days after the date of publication in the
Federal Register pursuant to the Administrative Procedure Act,\47\ and
therefore, the regulation is effective upon publication in the Federal
Register.
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\47\ 5 U.S.C. 553(d)(3).
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25. The Commission has determined, with the concurrence of the
Administrator of the Office of Information and Regulatory Affairs of
the Office of Management and Budget, that this rule is not a ``major
rule'' as defined in section 351 of the Small Business Regulatory
Enforcement Fairness Act of 1996. This Final Rule is being submitted to
the Senate, House, and Government Accountability Office.
List of Subjects
18 CFR Part 250
Natural gas, Reporting and recordkeeping requirements.
18 CFR Part 385
Administrative practice and procedure, Electric power, Penalties,
Pipelines, Reporting and recordkeeping requirements.
By the Commission.
Issued: June 29, 2016.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the Commission amends parts 250
and 385, Chapter I, Title 18, Code of Federal Regulations as follows:
PART 250--FORMS
0
1. The authority citation for part 250 is revised to read as follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352;
28 U.S.C. 2461 note.
0
2. Amend Sec. 250.16 by revising paragraph (e)(1) to read as follows:
Sec. 250.16 Format of compliance plan transportation services and
affiliate transactions.
* * * * *
(e) Penalty for failure to comply. (1) Any person who transports
gas for others pursuant to Subparts B or G of
[[Page 43941]]
Part 284 of this chapter and who knowingly violates the requirements of
Sec. Sec. 358.4 and 358.5, Sec. 250.16, or Sec. 284.13 of this
chapter will be subject, pursuant to sections 311(c), 501, and
504(b)(6) of the Natural Gas Policy Act of 1978, to a civil penalty,
which the Commission may assess, of not more than $1,193,970 for any
one violation.
* * * * *
PART 385--RULES OF PRACTICE AND PROCEDURE
0
3. The authority citation for part 385 is revised to read as follows:
Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16
U.S.C. 791a-825v, 2601-2645; 28 U.S.C. 2461; 31 U.S.C. 3701, 9701;
42 U.S.C. 7101-7352, 16441, 16451-16463; 49 U.S.C. 60502; 49 App.
U.S.C. 1-85 (1988); 28 U.S.C. 2461 note (1990); 28 U.S.C. 2461 note
(2015).
0
4. Revise Sec. 385.1504(a) to read as follows:
Sec. 385.1504 Maximum civil penalty (Rule 1504).
(a) Except as provided in paragraph (b) of this section, the
Commission may assess a civil penalty of up to $21,563 for each day
that the violation continues.
* * * * *
0
5. Revise Sec. 385.1601 to read as follows:
Sec. 385.1601 Scope and purpose (Rule 1601).
The purpose of this subpart is to make inflation adjustments to the
civil monetary penalties provided by law within the jurisdiction of the
Commission. These penalties shall be subject to review and adjustment
as necessary at least every year in accordance with the Federal Civil
Penalties Inflation Act of 1990, as amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015.
0
6. Revise Sec. 385.1602 to read as follows:
Sec. 385.1602 Civil penalties, as adjusted (Rule 1602).
The current inflation-adjusted civil monetary penalties provided by
law within the jurisdiction of the Commission are:
(a) 15 U.S.C. 3414(b)(6)(A)(i), Natural Gas Policy Act of 1978:
$1,193,970 per day.
(b) 16 U.S.C. 823b(c), Federal Power Act: $21,563 per day.
(c) 16 U.S.C. 825n(a), Federal Power Act: $2,750.
(d) 16 U.S.C. 825o-1(b), Federal Power Act: $1,193,970 per day.
(e) 15 U.S.C. 717t-1, Natural Gas Act: $1,193,970 per day.
(f) 49 App. U.S.C. 6(10) (1988), Interstate Commerce Act: $1,250
per offense and $62.50 per day after the first day.
(g) 49 App. U.S.C. 16(8) (1988), Interstate Commerce Act: $12,500
per day.
(h) 49 App. U.S.C. 19a(k) (1988), Interstate Commerce Act: $1,250
per day.
(i) 49 App. U.S.C. 20(7)(a) (1988), Interstate Commerce Act: $1,250
per day.
[FR Doc. 2016-15947 Filed 7-5-16; 8:45 am]
BILLING CODE 6717-01-P
