2017 Revisions to the Civil Penalty Inflation Adjustment Tables, 17097-17101 [2017-06766]

Download as PDF 17097 Rules and Regulations Federal Register Vol. 82, No. 67 Monday, April 10, 2017 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Parts 13 and 406 [Docket No. FAA–2016–7004; Amdt. Nos. 13–39, 406–11] RIN 2120–AK90 2017 Revisions to the Civil Penalty Inflation Adjustment Tables Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: This final rule provides the 2017 inflation adjustment to civil penalty amounts that may be imposed for violations of Federal Aviation Administration (FAA) regulations and the Hazardous Materials Regulations, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. It also finalizes the catchup inflation adjustment interim final rule required by the same Act. DATES: Effective April 10, 2017. FOR FURTHER INFORMATION CONTACT: Cole R. Milliard, Attorney, Office of the Chief Counsel, Enforcement Division, AGC– 300, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone (202) 267–3452; email cole.milliard@faa.gov. SUPPLEMENTARY INFORMATION: SUMMARY: pmangrum on DSK3GDR082PROD with RULES Authority for This Rulemaking and Applicable Statutes The FAA’s authority to issue rules on aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency’s authority. The Secretary of Transportation’s authority to regulate the transportation of hazardous materials (‘‘hazmat’’) by air is in chapter 51 of title 49; civil penalty authority is in section 5123. The Secretary’s authority to regulate VerDate Sep<11>2014 14:16 Apr 07, 2017 Jkt 241001 commercial space transportation may be found at 51 U.S.C. subtitle V, sections 50901–50923 (chapter 509), which provides for the Department of Transportation (DOT), and, through delegation, the FAA to impose civil penalties on persons who violate chapter 509, a regulation issued under chapter 509, or any term or condition of a license or permit issued or transferred under chapter 509. 51 U.S.C. 50906(h)– (i), 50917. This rule implements the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), Public Law 101–410, as amended by the Debt Collection Improvement Act (DCIA) of 1996, Public Law 104–134, and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act), Public Law 114–74, codified at 28 U.S.C. 2461 note. The FCPIAA, DCIA, and the 2015 Act require federal agencies to adjust minimum and maximum civil penalty amounts for inflation to preserve their deterrent impact. The 2015 Act amended the formula and frequency of inflation adjustments. It required an initial catchup adjustment in the form of an interim final rule, followed by annual adjustments of civil penalty amounts using a statutorily mandated formula. Background On July 5, 2016, the FAA issued an interim final rule entitled, ‘‘Revisions to the Civil Penalty Inflation Adjustment Tables’’ (the IFR) to implement the requirement for an initial catch-up adjustment.1 This final rule (1) finalizes the catch-up adjustment interim final rule; and (2) provides the required annual adjustment of civil penalty maximums and minimums in accordance with the FCPIAA, as amended.2 Overview of Final Rule The FCPIAA, as amended, provides a formula for annual inflationary adjustments that increase civil penalty maximums and minimums by a cost-ofliving adjustment (COLA). Under the FCPIAA, as amended by the 2015 Act, the COLA for each civil penalty is the percent change between the U.S. Department of Labor’s Consumer Price 1 81 FR 43463. A correction and technical amendments were made in 81 FR 51079 (Aug. 3, 2016). 2 28 U.S.C. 2461 note. PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 Index for all-urban consumers (CPI–U) for the month of October of the calendar year preceding the adjustment and the CPI–U for the month of October of the previous calendar year. Any resulting increase must be rounded to the nearest $1. As required by the FCPIAA, this final rule provides the 2017 annual adjustments to the civil penalty maximums and minimums provided in 14 Code of Federal Regulations (14 CFR) 13.301 and 406.9. Method of Calculation of Adjustments to Civil Penalty Amounts Provided in 14 CFR 13.301 and 406.9 The 2015 Act directed the Office of Management and Budget (OMB) to issue guidance on implementing the 2017 annual inflation adjustment required by the 2015 Act no later than December 15, 2016.3 On December 16, 2016, the OMB released this required guidance, which provides instructions on how to calculate the 2017 annual adjustment.4 To derive the 2017 adjustment, the FAA must multiply the maximum or minimum penalty amount by the percent change between the October 2016 CPI–U and the October 2015 CPI– U. In this case, October 2016 CPI–U (241.729)/October 2015 CPI–U (237.838) = Multiplier (1.01636).5 Accordingly, the agency multiplied the civil penalty maximums and minimums provided in current 14 CFR 13.301 and 406.9 by 1.01636 to derive the updated maximums and minimums provided in this final rule. As examples, the agency has provided the calculations for the adjustments for the civil penalties authorized by 49 U.S.C. 5123(a)(1) (hazmat) and 51 U.S.C. 50917 (commercial space): Adjusted penalty for 2016 6 * Multiplier = Adjusted penalty for 2017 Sec. 5123(a)(1): $77,114 * 1.01636 = $78,376 Sec. 50917: $225,867 * 1.01636 = $229,562 3 28 U.S.C. 2461 note. Memorandum M–17–11. 5 28 U.S.C. 2461 note; OMB Memorandum M–17– 11. 6 The adjusted penalty for 2016 includes the catch-up adjustment also mandated by the 2015 Act, and reflected in current 14 CFR 13.301 and 406.9 as amended by the IFR. 81 FR 43463 (July 5, 2016) and 81 FR 51079 (August 3, 2016). 4 OMB E:\FR\FM\10APR1.SGM 10APR1 17098 Federal Register / Vol. 82, No. 67 / Monday, April 10, 2017 / Rules and Regulations Option to Forgo Annual Civil Penalty Adjustment The agency notes that the 2015 Act provides the Administrator with the option to forgo adjustment only in a single circumstance, which is not present at this time. If, within the twelve months preceding January 15, 2017, an FAA civil penalty subject to this inflation adjustment were increased more than it would be by this inflation adjustment, the Administrator could choose to not make the adjustment. None of the civil penalties subject to the 2017 adjustment increased at all during the relevant time period. Accordingly, the Administrator cannot forego adjustment of any penalty. pmangrum on DSK3GDR082PROD with RULES Administrative Procedure Act Section 553 of the Administrative Procedure Act requires agencies to provide an opportunity for notice and comment on rulemaking and also requires agencies to delay a rule’s effective date for 30 days following the date of publication in the Federal Register unless an agency finds good cause to forgo these requirements. However, section 4(b)(2) of the 2015 Act requires agencies to adjust civil monetary penalties notwithstanding section 553 of the Administrative Procedure Act (APA) and publish annual inflation adjustments in the Federal Register. ‘‘This means that the public procedure the APA generally requires . . . is not required for agencies to issue regulations implementing the annual adjustment.’’ OMB Memorandum M–17–11. Even if the 2015 Act did not except this rulemaking from section 553 of the APA, the agency has good cause to dispense with notice and comment. Section 553(b)(B), authorizes agencies to dispense with notice and comment procedures for rulemaking if the agency finds good cause that notice and comment are impracticable, unnecessary, or contrary to public interest. The annual adjustments to civil penalties for inflation and the method of calculating those adjustments are established by section 5 of the FCPIAA, as amended, leaving no discretion for the Administrator. Accordingly, public comment would be impracticable because the Administrator would be unable to consider such comments in the rulemaking process. Regulatory Evaluation Changes to Federal regulations must undergo several economic analyses. First, Executive Order (E.O.) 12866 and Executive Order 13563 direct that each Federal agency shall propose or adopt a VerDate Sep<11>2014 14:16 Apr 07, 2017 Jkt 241001 regulation only upon a reasoned determination that the benefits of the intended regulation justify its costs. Second, the Regulatory Flexibility Act of 1980 (Public Law 96–354) requires agencies to analyze the economic impact of regulatory changes on small entities. Third, the Trade Agreements Act (Public Law 96–39) prohibits agencies from setting standards that create unnecessary obstacles to the foreign commerce of the United States. In developing U.S. standards, the Trade Act requires agencies to consider international standards and, where appropriate, that they be the basis of U.S. standards. Fourth, the Unfunded Mandates Reform Act of 1995 (Public Law 104–4) requires agencies to prepare a written assessment of the costs, benefits, and other effects of proposed or final rules that include a Federal mandate likely to result in the expenditure by State, local, or tribal governments, in the aggregate, or by the private sector, of $100 million or more annually (adjusted for inflation with base year of 1995). This portion of the preamble summarizes the FAA’s analysis of the economic impacts of this final rule. Department of Transportation Order DOT 2100.5 prescribes policies and procedures for simplification, analysis, and review of regulations. If the expected cost impact is so minimal that a proposed or final rule does not warrant a full evaluation, this order permits that a statement to that effect and the basis for it to be included in the preamble if a full regulatory evaluation of the cost and benefits is not prepared. Such a determination has been made for this final rule. The reasoning for this determination follows. This rule adjusts for inflation to civil penalties for violations of aviation safety, hazmat, and commercial space provisions in accord with the Federal Civil Penalties Inflation Adjustment Act Improvement Act (the 2015 Act), Pub. L. 114–74, Section 701 (November 2, 2015). The Director of OMB provided guidance to agencies in a December 16, 2016 memorandum on how to calculate the 2017 annual adjustment required by the 2015 Act. The FAA must follow the direction of Congress and is using statutorily-mandated guidance provided by OMB in calculating the annual inflation adjustment. Applying Congress’s directions and OMB’s guidance, the FAA has determined that this rule imposes no additional social cost. Civil penalties are, like taxes, an economic transfer. OMB guidance A–4 states that transfers are monetary payments from one group to another and thus not a social cost. OMB further PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 dictates that transfers should not be included in estimates of the benefits and costs due to regulation. As transfers do not add social cost, this is a minimal cost rule. OMB also directs that distributional impacts of transfers should be considered. The term ‘‘distributional effect’’ refers to the impact of a regulatory action across the population and economy, divided up in various ways (e.g. income groups, race, sex, industrial sector, geography). Distributional effects may arise through transfer payments like civil penalties that stem from regulatory enforcement action. While persons paying civil penalties may experience distributional effects, these discrete effects are far outweighed by the positive effects of civil penalties. Compliance with FAA statutes and regulations is essential to safety. The FAA intends for civil penalties to serve as a punitive action against those who violate FAA statutes and regulations. Civil penalties also deter future violations. As a result, they support the FAA’s mission of aviation, hazmat, and commercial space safety, which benefits the public at large. Thus, the cost impact of this rulemaking is minimal, and a full regulatory evaluation is not required in accordance with DOT Order 2100.5. The Office of Information and Regulatory Affairs (OIRA) Administrator has determined that agency regulations exclusively implementing this annual adjustment are not significant regulatory actions under E.O. 12866, provided they are consistent with the guidance in OMB Memorandum M–17–11, Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The agency has determined that this regulation is consistent with OMB Memorandum M– 17–11 because it serves only to provide the 2017 annual civil penalty adjustment using the formula established by the 2015 Act. Thus, per OMB Memorandum M–17–11, the regulation is not significant. The FAA has further determined that this final rule is not ‘‘significant’’ as defined in DOT’s Regulatory Policies and Procedures. The FAA made this determination because this final rule does not (a) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency, (b) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (c) raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in E.O. 12866. E:\FR\FM\10APR1.SGM 10APR1 Federal Register / Vol. 82, No. 67 / Monday, April 10, 2017 / Rules and Regulations pmangrum on DSK3GDR082PROD with RULES Regulatory Flexibility Determination The Regulatory Flexibility Act of 1980 (Public Law 96–354) (RFA) establishes ‘‘as a principle of regulatory issuance that agencies shall endeavor, consistent with the objectives of the rule and of applicable statutes, to fit regulatory and informational requirements to the scale of the businesses, organizations, and governmental jurisdictions subject to regulation.’’ To achieve this principle, agencies are required to solicit and consider flexible regulatory proposals and to explain the rationale for their actions to assure that such proposals are given serious consideration.’’ The RFA covers a wide-range of small entities, including small businesses, not-forprofit organizations, and small governmental jurisdictions. Agencies must perform a review to determine whether a rule will have a significant economic impact on a substantial number of small entities. If the agency determines that it will, the agency must prepare a regulatory flexibility analysis as described in the RFA. However, if an agency determines that a rule is not expected to have a significant economic impact on a substantial number of small entities, section 605(b) of the RFA provides that the head of the agency may so certify and a regulatory flexibility analysis is not required. The certification must include a statement providing the factual basis for this determination, and the reasoning should be clear. The FAA believes that this final rule does not have a significant economic impact on a substantial number of small entities for the following reasons. While this final rule is likely to impact a substantial number of small entities, it will impose only minimal costs. This final rule simply identifies the amount of the inflation adjustment to existing civil monetary penalty maximums and minimums for violations of the statutory and regulatory provisions the FAA enforces. The penalty amounts are those specified by statute or called for under the inflation adjustment statutes, and the information in this rule is required by the Debt Collection Improvement Act of 1996.7 As civil penalties are economic transfers, by OMB direction, these are not included in the calculation of social costs. Therefore, as provided in section 605(b), the head of the FAA certifies that this rule will not result in 7 The 2015 Act, Public Law 114–74, codified at 28 U.S.C. 2461 note, specifies the method of calculating the inflation adjustment, and OMB Memorandum M–17–11 provides the guidance required by the 2015 Act for agencies in calculating the 2017 annual inflation adjustment. VerDate Sep<11>2014 14:16 Apr 07, 2017 Jkt 241001 a significant economic impact on a substantial number of small entities. Moreover, although the FAA has completed the analysis to support the certification provided by section 605(b), the RFA does not apply to this rulemaking because notice and comment rulemaking under section 553 of the APA is not required.8 Section 4(b)(2) of the 2015 Act specifically excludes this rulemaking implementing each adjustment following the initial catch-up adjustment from section 553 of the APA. International Trade Impact Assessment The Trade Agreements Act of 1979 (Public Law 96–39), as amended by the Uruguay Round Agreements Act (Public Law 103–465), prohibits Federal agencies from establishing standards or engaging in related activities that create unnecessary obstacles to the foreign commerce of the United States. Pursuant to these Acts, the establishment of standards is not considered an unnecessary obstacle to the foreign commerce of the United States, so long as the standard has a legitimate domestic objective, such as the protection of safety, and does not operate in a manner that excludes imports that meet this objective. The statute also requires consideration of international standards and, where appropriate, that they be the basis for U.S. standards. The FAA has assessed the potential effect of this final rule and determined that it would impose identical inflation adjusted civil penalties on domestic and international entities that violate aviation safety, hazmat, and commercial space provisions in Titles 49 and 51 of the U.S. Code and regulations issued under those provisions, and thus would have a neutral trade impact. Furthermore, the inflation adjustment is a legitimate domestic objective preserving the existing deterrent impact of aviation, hazmat, and commercial space safety statutes and regulations. Therefore, we have determined that this rule will result in a neutral impact on international trade. Unfunded Mandates Assessment Title II of the Unfunded Mandates Reform Act of 1995 (Public Law 104–4) requires each Federal agency to prepare a written statement assessing the effects of any Federal mandate in a proposed or final agency rule that may result in an expenditure of $100 million or more (in 1995 dollars) in any one year by State, local, and tribal governments, in the aggregate, or by the private sector; such 85 PO 00000 U.S.C. 604(a). Frm 00003 Fmt 4700 Sfmt 4700 17099 a mandate is deemed to be a ‘‘significant regulatory action.’’ The FAA currently uses an inflation-adjusted value of $155 million in lieu of $100 million. This final rule does not contain such a mandate; therefore, the requirements of Title II of the Act do not apply. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires that the FAA consider the impact of paperwork and other information collection burdens imposed on the public. The FAA has determined that there are no current or new requirements for information collection associated with this rule. International Compatibility In keeping with U.S. obligations under the Convention on International Civil Aviation, it is FAA policy to conform to International Civil Aviation Organization (ICAO) Standards and Recommended Practices to the maximum extent practicable. The FAA has determined that there are no ICAO Standards and Recommended Practices that correspond to these regulations. Environmental Analysis FAA Order 1050.1F identifies FAA actions that are categorically excluded from preparation of an environmental assessment or environmental impact statement under the National Environmental Policy Act in the absence of extraordinary circumstances. The FAA has determined that this action qualifies for categorical exclusion under the National Environmental Policy Act in accordance with FAA Order 1050.1F, ‘‘Environmental Impacts: Policies and Procedures,’’ paragraph 5–6.6.f, which covers regulations not expected to cause any potentially significant environmental impacts. The FAA has also determined that there are no extraordinary circumstances requiring an environmental assessment or environmental impact statement. Federalism The FAA has analyzed this final rule under the principles and criteria of Executive Order 13132, Federalism. The agency determined that this action will not have a substantial direct effect on the States, or the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government, and, therefore, does not have federalism implications. E:\FR\FM\10APR1.SGM 10APR1 17100 Federal Register / Vol. 82, No. 67 / Monday, April 10, 2017 / Rules and Regulations Regulations That Significantly Affect Energy Supply, Distribution, or Use The FAA has analyzed this final rule under Executive Order 13211, Actions Concerning Regulations that Significantly Affect Energy Supply, Distribution, or Use (May 18, 2001). The agency has determined that it is not a ‘‘significant energy action’’ under the executive order and it is not likely to have a significant adverse effect on the supply, distribution, or use of energy. Availability of Rulemaking Documents You can get an electronic copy of rulemaking documents using the Internet by— 1. Searching the Federal eRulemaking Portal (http://www.regulations.gov); 2. Visiting the FAA’s Regulations and Policies Web page at http:// www.faa.gov/regulations_policies; or 3. Accessing the Government Printing Office’s Web page at http:// www.gpo.gov/fdsys. You can also get a copy by sending a request to the Federal Aviation Administration, Office of Rulemaking, ARM–1, 800 Independence Avenue SW., Washington, DC 20591, or by calling (202) 267–9680. Make sure to identify the amendment number or docket number of this rulemaking. CHAPTER I—FEDERAL AVIATION ADMINISTRATION, DEPARTMENT OF TRANSPORTATION List of Subjects ■ PART 13—INVESTIGATIVE AND ENFORCEMENT PROCEDURES 1. The authority citation for part 13 is revised to read as follows: 14 CFR Part 13 Administrative practice and procedure, Air transportation, Hazardous materials transportation, Investigations, Law enforcement, Penalties. 14 CFR Part 406 Administrative procedure and review, Commercial space transportation, Enforcement, Investigations, Penalties, Rules of adjudication. The Amendment Accordingly, the interim rule amending 14 CFR parts 13 and 406 which was published at 81 FR 43463 on July 5, 2016, is adopted as a final rule with the following changes: Authority: 18 U.S.C. 6002, 28 U.S.C. 2461 (note); 49 U.S.C. 106(g), 5121–5124, 40113– 40114, 44103–44106, 44701–44703, 44709– 44710, 44713, 44725, 46101–46111, 46301, 46302 (for a violation of 49 U.S.C. 46504), 46304–46316, 46318, 46501–46502, 46504– 46507, 47106, 47107, 47111, 47122, 47306, 47531–47532; 49 CFR 1.83. 2. Amend § 13.301 by revising the section heading and paragraph (c) to read as follows: ■ § 13.301 Inflation adjustments of civil monetary penalties. * * * * * (c) Minimum and maximum civil monetary penalties within the jurisdiction of the FAA are as follows: TABLE OF MINIMUM AND MAXIMUM CIVIL MONETARY PENALTY AMOUNTS FOR CERTAIN VIOLATIONS OCCURRING ON OR AFTER JANUARY 15, 2017 United States Code citation 49 U.S.C. 5123(a)(1). 49 U.S.C. 5123(a)(2). 49 U.S.C. 46301(a)(1). 49 U.S.C. 46301(a)(1). 49 U.S.C. 46301(a)(3). pmangrum on DSK3GDR082PROD with RULES New minimum penalty amount 2016 maximum penalty amount New maximum penalty amount N/A N/A $77,114 ................... $78,376. N/A N/A 179,933 ................... 182,877. $463 $471 77,114 ..................... 78,376. N/A N/A 32,140 ..................... 32,666. N/A N/A 1,414 ....................... 1,437. N/A N/A 1,414 ....................... 1,437. N/A N/A No change. N/A N/A Increase above otherwise applicable maximum amount not to exceed 3 times the amount of revenues that are used in violation of such section. 12,856 ..................... 13,066. N/A N/A 12,856 ..................... 13,066. Violation of hazardous materials transportation law. Violation of hazardous materials transportation law resulting in death, serious illness, severe injury, or substantial property destruction. Violation of hazardous materials transportation law relating to training. Violation by a person other than an individual or small business concern under 49 U.S.C. 46301(a)(1)(A) or (B). Violation by an airman serving as an airman under 49 U.S.C. 46301(a)(1)(A) or (B) (but not covered by 46301(a)(5)(A) or (B)). Violation by an individual or small business concern under 49 U.S.C. 46301(a)(1)(A) or (B) (but not covered in 49 U.S.C. 46301(a)(5)). Violation of 49 U.S.C. 47107(b) (or any assurance made under such section) or 49 U.S.C. 47133. 49 U.S.C. 5123(a)(3). 49 U.S.C. 46301(a)(1). 49 U.S.C. 46301(a)(5)(A). 49 U.S.C. 46301(a)(5)(B)(i). VerDate Sep<11>2014 2016 minimum penalty amount Civil monetary penalty description Violation by an individual or small business concern (except an airman serving as an airman) under 49 U.S.C. 46301(a)(5)(A)(i) or (ii). Violation by an individual or small business concern related to the transportation of hazardous materials. 14:16 Apr 07, 2017 Jkt 241001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\10APR1.SGM 10APR1 Federal Register / Vol. 82, No. 67 / Monday, April 10, 2017 / Rules and Regulations 17101 TABLE OF MINIMUM AND MAXIMUM CIVIL MONETARY PENALTY AMOUNTS FOR CERTAIN VIOLATIONS OCCURRING ON OR AFTER JANUARY 15, 2017—Continued 2016 minimum penalty amount United States Code citation Civil monetary penalty description 49 U.S.C. 46301(a)(5)(B)(ii). 2016 maximum penalty amount New maximum penalty amount N/A N/A 12,856 ..................... 13,066. N/A N/A 12,856 ..................... 13,066. N/A N/A 12,856 ..................... 13,066. N/A N/A N/A N/A 4,126 ....................... 22,587 ..................... 4,194. 22,957. N/A N/A N/A N/A 34,172 ..................... 12,856 ..................... 34,731. 13,066. N/A N/A See 49 U.S.C. 46301(a)(1) and (a)(5), above. See 49 U.S.C. 46301(a)(1) and (a)(5), above. Violation by an individual or small business concern related to the registration or recordation under 49 U.S.C. chapter 441, of an aircraft not used to provide air transportation. Violation by an individual or small business concern of 49 U.S.C. 44718(d), relating to limitation on construction or establishment of landfills. Violation by an individual or small business concern of 49 U.S.C. 44725, relating to the safe disposal of life-limited aircraft parts. Tampering with a smoke alarm device .... Knowingly providing false information about alleged violation involving the special aircraft jurisdiction of the United States. Interference with cabin or flight crew ...... Permanent closure of an airport without providing sufficient notice. Violation of 49 U.S.C. 47528–47530, relating to the prohibition of operating certain aircraft not complying with stage 3 noise levels. 49 U.S.C. 46301(a)(5)(B)(iii). 49 U.S.C. 46301(a)(5)(B)(iv). 49 U.S.C. 46301(b) 49 U.S.C. 46302 ..... 49 U.S.C. 46318 ..... 49 U.S.C. 46319 ..... 49 U.S.C. 47531 ..... CHAPTER III—COMMERCIAL SPACE TRANSPORTATION, FEDERAL AVIATION ADMINISTRATION, DEPARTMENT OF TRANSPORTATION 3. The authority citation for part 406 continues to read as follows: Special Conditions: Embraer S.A. Model ERJ 190–300 Airplane; Flight Envelope Protection, General Limiting Requirements Authority: 51 U.S.C. 50901–50923. 4. Amend § 406.9 by revising paragraph (a) to read as follows: ■ Federal Aviation Administration (FAA), DOT. AGENCY: Civil penalties. (a) Civil penalty liability. Under 51 U.S.C. 50917(c), a person found by the FAA to have violated a requirement of the Act, a regulation issued under the Act, or any term or condition of a license or permit issued or transferred under the Act, is liable to the United States for a civil penalty of not more than $229,562 for each violation. A separate violation occurs for each day the violation continues. * * * * * Issued under the authority provided by 28 U.S.C. 2461 note, 49 U.S.C. 106(f) and 44701(a), and 51 U.S.C. 50901 in Washington, DC, on February 13, 2017. Michael P. Huerta, Administrator. [FR Doc. 2017–06766 Filed 4–7–17; 8:45 am] BILLING CODE 4910–13–P VerDate Sep<11>2014 14:16 Apr 07, 2017 Jkt 241001 Federal Aviation Administration [Docket No. FAA–2016–9402; Special Conditions No. 25–655–SC] ■ § 406.9 DEPARTMENT OF TRANSPORTATION 14 CFR Part 25 PART 406—INVESTIGATIONS, ENFORCEMENT, AND ADMINISTRATIVE REVIEW pmangrum on DSK3GDR082PROD with RULES New minimum penalty amount Final special conditions; request for comments. ACTION: These special conditions are issued for the Embraer S.A. (Embraer) Model ERJ 190–300 airplane. This airplane will have a novel or unusual design feature when compared to the state of technology envisioned in the airworthiness standards for transportcategory airplanes. This design feature is a new control architecture and a full digital flight-control system, both of which provide flight-envelope protections. The applicable airworthiness regulations do not contain adequate or appropriate safety standards for this design feature. These special conditions contain the additional safety standards that the Administrator considers necessary to establish a level SUMMARY: PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 of safety equivalent to that established by the existing airworthiness standards. DATES: This action is effective on Embraer on April 10, 2017. We must receive your comments by May 25, 2017. ADDRESSES: Send comments identified by docket number FAA–2016–9402 using any of the following methods: • Federal eRegulations Portal: Go to http://www.regulations.gov/and follow the online instructions for sending your comments electronically. • Mail: Send comments to Docket Operations, M–30, U.S. Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room W12–140, West Building Ground Floor, Washington, DC 20590–0001. • Hand Delivery or Courier: Take comments to Docket Operations in Room W12–140 of the West Building Ground Floor at 1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. • Fax: Fax comments to Docket Operations at 202–493–2251. Privacy: The FAA will post all comments it receives, without change, to http://www.regulations.gov/, including any personal information the commenter provides. Using the search function of the docket Web site, anyone can find and read the electronic form of all comments received into any FAA docket, including the name of the E:\FR\FM\10APR1.SGM 10APR1

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[Federal Register Volume 82, Number 67 (Monday, April 10, 2017)]
[Rules and Regulations]
[Pages 17097-17101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06766]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 82, No. 67 / Monday, April 10, 2017 / Rules 
and Regulations

[[Page 17097]]



DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 13 and 406

[Docket No. FAA-2016-7004; Amdt. Nos. 13-39, 406-11]
RIN 2120-AK90


2017 Revisions to the Civil Penalty Inflation Adjustment Tables

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This final rule provides the 2017 inflation adjustment to 
civil penalty amounts that may be imposed for violations of Federal 
Aviation Administration (FAA) regulations and the Hazardous Materials 
Regulations, as required by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015. It also finalizes the catch-up 
inflation adjustment interim final rule required by the same Act.

DATES: Effective April 10, 2017.

FOR FURTHER INFORMATION CONTACT: Cole R. Milliard, Attorney, Office of 
the Chief Counsel, Enforcement Division, AGC-300, Federal Aviation 
Administration, 800 Independence Avenue SW., Washington, DC 20591; 
telephone (202) 267-3452; email cole.milliard@faa.gov.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking and Applicable Statutes

    The FAA's authority to issue rules on aviation safety is found in 
Title 49 of the United States Code. Subtitle I, Section 106, describes 
the authority of the FAA Administrator. Subtitle VII, Aviation 
Programs, describes in more detail the scope of the agency's authority. 
The Secretary of Transportation's authority to regulate the 
transportation of hazardous materials (``hazmat'') by air is in chapter 
51 of title 49; civil penalty authority is in section 5123. The 
Secretary's authority to regulate commercial space transportation may 
be found at 51 U.S.C. subtitle V, sections 50901-50923 (chapter 509), 
which provides for the Department of Transportation (DOT), and, through 
delegation, the FAA to impose civil penalties on persons who violate 
chapter 509, a regulation issued under chapter 509, or any term or 
condition of a license or permit issued or transferred under chapter 
509. 51 U.S.C. 50906(h)-(i), 50917.
    This rule implements the Federal Civil Penalties Inflation 
Adjustment Act of 1990 (FCPIAA), Public Law 101-410, as amended by the 
Debt Collection Improvement Act (DCIA) of 1996, Public Law 104-134, and 
the Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015 (2015 Act), Public Law 114-74, codified at 28 U.S.C. 2461 note. 
The FCPIAA, DCIA, and the 2015 Act require federal agencies to adjust 
minimum and maximum civil penalty amounts for inflation to preserve 
their deterrent impact. The 2015 Act amended the formula and frequency 
of inflation adjustments. It required an initial catch-up adjustment in 
the form of an interim final rule, followed by annual adjustments of 
civil penalty amounts using a statutorily mandated formula.

Background

    On July 5, 2016, the FAA issued an interim final rule entitled, 
``Revisions to the Civil Penalty Inflation Adjustment Tables'' (the 
IFR) to implement the requirement for an initial catch-up 
adjustment.\1\ This final rule (1) finalizes the catch-up adjustment 
interim final rule; and (2) provides the required annual adjustment of 
civil penalty maximums and minimums in accordance with the FCPIAA, as 
amended.\2\
---------------------------------------------------------------------------

    \1\ 81 FR 43463. A correction and technical amendments were made 
in 81 FR 51079 (Aug. 3, 2016).
    \2\ 28 U.S.C. 2461 note.
---------------------------------------------------------------------------

Overview of Final Rule

    The FCPIAA, as amended, provides a formula for annual inflationary 
adjustments that increase civil penalty maximums and minimums by a 
cost-of-living adjustment (COLA). Under the FCPIAA, as amended by the 
2015 Act, the COLA for each civil penalty is the percent change between 
the U.S. Department of Labor's Consumer Price Index for all-urban 
consumers (CPI-U) for the month of October of the calendar year 
preceding the adjustment and the CPI-U for the month of October of the 
previous calendar year. Any resulting increase must be rounded to the 
nearest $1. As required by the FCPIAA, this final rule provides the 
2017 annual adjustments to the civil penalty maximums and minimums 
provided in 14 Code of Federal Regulations (14 CFR) 13.301 and 406.9.

Method of Calculation of Adjustments to Civil Penalty Amounts Provided 
in 14 CFR 13.301 and 406.9

    The 2015 Act directed the Office of Management and Budget (OMB) to 
issue guidance on implementing the 2017 annual inflation adjustment 
required by the 2015 Act no later than December 15, 2016.\3\ On 
December 16, 2016, the OMB released this required guidance, which 
provides instructions on how to calculate the 2017 annual 
adjustment.\4\
---------------------------------------------------------------------------

    \3\ 28 U.S.C. 2461 note.
    \4\ OMB Memorandum M-17-11.
---------------------------------------------------------------------------

    To derive the 2017 adjustment, the FAA must multiply the maximum or 
minimum penalty amount by the percent change between the October 2016 
CPI-U and the October 2015 CPI-U. In this case, October 2016 CPI-U 
(241.729)/October 2015 CPI-U (237.838) = Multiplier (1.01636).\5\ 
Accordingly, the agency multiplied the civil penalty maximums and 
minimums provided in current 14 CFR 13.301 and 406.9 by 1.01636 to 
derive the updated maximums and minimums provided in this final rule.
---------------------------------------------------------------------------

    \5\ 28 U.S.C. 2461 note; OMB Memorandum M-17-11.
---------------------------------------------------------------------------

    As examples, the agency has provided the calculations for the 
adjustments for the civil penalties authorized by 49 U.S.C. 5123(a)(1) 
(hazmat) and 51 U.S.C. 50917 (commercial space):

Adjusted penalty for 2016 \6\ * Multiplier = Adjusted penalty for 2017
---------------------------------------------------------------------------

    \6\ The adjusted penalty for 2016 includes the catch-up 
adjustment also mandated by the 2015 Act, and reflected in current 
14 CFR 13.301 and 406.9 as amended by the IFR. 81 FR 43463 (July 5, 
2016) and 81 FR 51079 (August 3, 2016).
---------------------------------------------------------------------------

Sec. 5123(a)(1): $77,114 * 1.01636 = $78,376
Sec. 50917: $225,867 * 1.01636 = $229,562

[[Page 17098]]

Option to Forgo Annual Civil Penalty Adjustment

    The agency notes that the 2015 Act provides the Administrator with 
the option to forgo adjustment only in a single circumstance, which is 
not present at this time. If, within the twelve months preceding 
January 15, 2017, an FAA civil penalty subject to this inflation 
adjustment were increased more than it would be by this inflation 
adjustment, the Administrator could choose to not make the adjustment. 
None of the civil penalties subject to the 2017 adjustment increased at 
all during the relevant time period. Accordingly, the Administrator 
cannot forego adjustment of any penalty.

Administrative Procedure Act

    Section 553 of the Administrative Procedure Act requires agencies 
to provide an opportunity for notice and comment on rulemaking and also 
requires agencies to delay a rule's effective date for 30 days 
following the date of publication in the Federal Register unless an 
agency finds good cause to forgo these requirements. However, section 
4(b)(2) of the 2015 Act requires agencies to adjust civil monetary 
penalties notwithstanding section 553 of the Administrative Procedure 
Act (APA) and publish annual inflation adjustments in the Federal 
Register. ``This means that the public procedure the APA generally 
requires . . . is not required for agencies to issue regulations 
implementing the annual adjustment.'' OMB Memorandum M-17-11.
    Even if the 2015 Act did not except this rulemaking from section 
553 of the APA, the agency has good cause to dispense with notice and 
comment. Section 553(b)(B), authorizes agencies to dispense with notice 
and comment procedures for rulemaking if the agency finds good cause 
that notice and comment are impracticable, unnecessary, or contrary to 
public interest. The annual adjustments to civil penalties for 
inflation and the method of calculating those adjustments are 
established by section 5 of the FCPIAA, as amended, leaving no 
discretion for the Administrator. Accordingly, public comment would be 
impracticable because the Administrator would be unable to consider 
such comments in the rulemaking process.

Regulatory Evaluation

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order (E.O.) 12866 and Executive Order 13563 
direct that each Federal agency shall propose or adopt a regulation 
only upon a reasoned determination that the benefits of the intended 
regulation justify its costs. Second, the Regulatory Flexibility Act of 
1980 (Public Law 96-354) requires agencies to analyze the economic 
impact of regulatory changes on small entities. Third, the Trade 
Agreements Act (Public Law 96-39) prohibits agencies from setting 
standards that create unnecessary obstacles to the foreign commerce of 
the United States. In developing U.S. standards, the Trade Act requires 
agencies to consider international standards and, where appropriate, 
that they be the basis of U.S. standards. Fourth, the Unfunded Mandates 
Reform Act of 1995 (Public Law 104-4) requires agencies to prepare a 
written assessment of the costs, benefits, and other effects of 
proposed or final rules that include a Federal mandate likely to result 
in the expenditure by State, local, or tribal governments, in the 
aggregate, or by the private sector, of $100 million or more annually 
(adjusted for inflation with base year of 1995). This portion of the 
preamble summarizes the FAA's analysis of the economic impacts of this 
final rule.
    Department of Transportation Order DOT 2100.5 prescribes policies 
and procedures for simplification, analysis, and review of regulations. 
If the expected cost impact is so minimal that a proposed or final rule 
does not warrant a full evaluation, this order permits that a statement 
to that effect and the basis for it to be included in the preamble if a 
full regulatory evaluation of the cost and benefits is not prepared. 
Such a determination has been made for this final rule. The reasoning 
for this determination follows.
    This rule adjusts for inflation to civil penalties for violations 
of aviation safety, hazmat, and commercial space provisions in accord 
with the Federal Civil Penalties Inflation Adjustment Act Improvement 
Act (the 2015 Act), Pub. L. 114-74, Section 701 (November 2, 2015). The 
Director of OMB provided guidance to agencies in a December 16, 2016 
memorandum on how to calculate the 2017 annual adjustment required by 
the 2015 Act. The FAA must follow the direction of Congress and is 
using statutorily-mandated guidance provided by OMB in calculating the 
annual inflation adjustment. Applying Congress's directions and OMB's 
guidance, the FAA has determined that this rule imposes no additional 
social cost. Civil penalties are, like taxes, an economic transfer. OMB 
guidance A-4 states that transfers are monetary payments from one group 
to another and thus not a social cost. OMB further dictates that 
transfers should not be included in estimates of the benefits and costs 
due to regulation. As transfers do not add social cost, this is a 
minimal cost rule. OMB also directs that distributional impacts of 
transfers should be considered. The term ``distributional effect'' 
refers to the impact of a regulatory action across the population and 
economy, divided up in various ways (e.g. income groups, race, sex, 
industrial sector, geography). Distributional effects may arise through 
transfer payments like civil penalties that stem from regulatory 
enforcement action. While persons paying civil penalties may experience 
distributional effects, these discrete effects are far outweighed by 
the positive effects of civil penalties. Compliance with FAA statutes 
and regulations is essential to safety. The FAA intends for civil 
penalties to serve as a punitive action against those who violate FAA 
statutes and regulations. Civil penalties also deter future violations. 
As a result, they support the FAA's mission of aviation, hazmat, and 
commercial space safety, which benefits the public at large. Thus, the 
cost impact of this rulemaking is minimal, and a full regulatory 
evaluation is not required in accordance with DOT Order 2100.5.
    The Office of Information and Regulatory Affairs (OIRA) 
Administrator has determined that agency regulations exclusively 
implementing this annual adjustment are not significant regulatory 
actions under E.O. 12866, provided they are consistent with the 
guidance in OMB Memorandum M-17-11, Implementation of the 2017 annual 
adjustment pursuant to the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015. The agency has determined that this 
regulation is consistent with OMB Memorandum M-17-11 because it serves 
only to provide the 2017 annual civil penalty adjustment using the 
formula established by the 2015 Act. Thus, per OMB Memorandum M-17-11, 
the regulation is not significant.
    The FAA has further determined that this final rule is not 
``significant'' as defined in DOT's Regulatory Policies and Procedures. 
The FAA made this determination because this final rule does not (a) 
create a serious inconsistency or otherwise interfere with an action 
taken or planned by another agency, (b) materially alter the budgetary 
impact of entitlements, grants, user fees, or loan programs or the 
rights and obligations of recipients thereof; or (c) raise novel legal 
or policy issues arising out of legal mandates, the President's 
priorities, or the principles set forth in E.O. 12866.

[[Page 17099]]

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Public Law 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation.'' To achieve this principle, agencies are 
required to solicit and consider flexible regulatory proposals and to 
explain the rationale for their actions to assure that such proposals 
are given serious consideration.'' The RFA covers a wide-range of small 
entities, including small businesses, not-for-profit organizations, and 
small governmental jurisdictions.
    Agencies must perform a review to determine whether a rule will 
have a significant economic impact on a substantial number of small 
entities. If the agency determines that it will, the agency must 
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a rule is not expected to 
have a significant economic impact on a substantial number of small 
entities, section 605(b) of the RFA provides that the head of the 
agency may so certify and a regulatory flexibility analysis is not 
required. The certification must include a statement providing the 
factual basis for this determination, and the reasoning should be 
clear.
    The FAA believes that this final rule does not have a significant 
economic impact on a substantial number of small entities for the 
following reasons. While this final rule is likely to impact a 
substantial number of small entities, it will impose only minimal 
costs. This final rule simply identifies the amount of the inflation 
adjustment to existing civil monetary penalty maximums and minimums for 
violations of the statutory and regulatory provisions the FAA enforces. 
The penalty amounts are those specified by statute or called for under 
the inflation adjustment statutes, and the information in this rule is 
required by the Debt Collection Improvement Act of 1996.\7\ As civil 
penalties are economic transfers, by OMB direction, these are not 
included in the calculation of social costs. Therefore, as provided in 
section 605(b), the head of the FAA certifies that this rule will not 
result in a significant economic impact on a substantial number of 
small entities.
---------------------------------------------------------------------------

    \7\ The 2015 Act, Public Law 114-74, codified at 28 U.S.C. 2461 
note, specifies the method of calculating the inflation adjustment, 
and OMB Memorandum M-17-11 provides the guidance required by the 
2015 Act for agencies in calculating the 2017 annual inflation 
adjustment.
---------------------------------------------------------------------------

    Moreover, although the FAA has completed the analysis to support 
the certification provided by section 605(b), the RFA does not apply to 
this rulemaking because notice and comment rulemaking under section 553 
of the APA is not required.\8\ Section 4(b)(2) of the 2015 Act 
specifically excludes this rulemaking implementing each adjustment 
following the initial catch-up adjustment from section 553 of the APA.
---------------------------------------------------------------------------

    \8\ 5 U.S.C. 604(a).
---------------------------------------------------------------------------

International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Public Law 96-39), as amended by 
the Uruguay Round Agreements Act (Public Law 103-465), prohibits 
Federal agencies from establishing standards or engaging in related 
activities that create unnecessary obstacles to the foreign commerce of 
the United States. Pursuant to these Acts, the establishment of 
standards is not considered an unnecessary obstacle to the foreign 
commerce of the United States, so long as the standard has a legitimate 
domestic objective, such as the protection of safety, and does not 
operate in a manner that excludes imports that meet this objective. The 
statute also requires consideration of international standards and, 
where appropriate, that they be the basis for U.S. standards.
    The FAA has assessed the potential effect of this final rule and 
determined that it would impose identical inflation adjusted civil 
penalties on domestic and international entities that violate aviation 
safety, hazmat, and commercial space provisions in Titles 49 and 51 of 
the U.S. Code and regulations issued under those provisions, and thus 
would have a neutral trade impact. Furthermore, the inflation 
adjustment is a legitimate domestic objective preserving the existing 
deterrent impact of aviation, hazmat, and commercial space safety 
statutes and regulations. Therefore, we have determined that this rule 
will result in a neutral impact on international trade.

Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Public Law 
104-4) requires each Federal agency to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in an expenditure of $100 million or more 
(in 1995 dollars) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $155 million in lieu of $100 
million. This final rule does not contain such a mandate; therefore, 
the requirements of Title II of the Act do not apply.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. The FAA has determined that 
there are no current or new requirements for information collection 
associated with this rule.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these regulations.

Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined that this action qualifies for categorical exclusion under 
the National Environmental Policy Act in accordance with FAA Order 
1050.1F, ``Environmental Impacts: Policies and Procedures,'' paragraph 
5-6.6.f, which covers regulations not expected to cause any potentially 
significant environmental impacts. The FAA has also determined that 
there are no extraordinary circumstances requiring an environmental 
assessment or environmental impact statement.

Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. The agency determined 
that this action will not have a substantial direct effect on the 
States, or the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, and, therefore, does not have federalism 
implications.

[[Page 17100]]

Regulations That Significantly Affect Energy Supply, Distribution, or 
Use

    The FAA has analyzed this final rule under Executive Order 13211, 
Actions Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). The agency has determined that it 
is not a ``significant energy action'' under the executive order and it 
is not likely to have a significant adverse effect on the supply, 
distribution, or use of energy.

Availability of Rulemaking Documents

    You can get an electronic copy of rulemaking documents using the 
Internet by--
    1. Searching the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visiting the FAA's Regulations and Policies Web page at http://www.faa.gov/regulations_policies; or
    3. Accessing the Government Printing Office's Web page at http://www.gpo.gov/fdsys.
    You can also get a copy by sending a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. Make 
sure to identify the amendment number or docket number of this 
rulemaking.

List of Subjects

14 CFR Part 13

    Administrative practice and procedure, Air transportation, 
Hazardous materials transportation, Investigations, Law enforcement, 
Penalties.

14 CFR Part 406

    Administrative procedure and review, Commercial space 
transportation, Enforcement, Investigations, Penalties, Rules of 
adjudication.

The Amendment

    Accordingly, the interim rule amending 14 CFR parts 13 and 406 
which was published at 81 FR 43463 on July 5, 2016, is adopted as a 
final rule with the following changes:

CHAPTER I--FEDERAL AVIATION ADMINISTRATION, DEPARTMENT OF 
TRANSPORTATION

PART 13--INVESTIGATIVE AND ENFORCEMENT PROCEDURES

0
1. The authority citation for part 13 is revised to read as follows:

    Authority: 18 U.S.C. 6002, 28 U.S.C. 2461 (note); 49 U.S.C. 
106(g), 5121-5124, 40113-40114, 44103-44106, 44701-44703, 44709- 
44710, 44713, 44725, 46101-46111, 46301, 46302 (for a violation of 
49 U.S.C. 46504), 46304-46316, 46318, 46501-46502, 46504-46507, 
47106, 47107, 47111, 47122, 47306, 47531-47532; 49 CFR 1.83.


0
2. Amend Sec.  13.301 by revising the section heading and paragraph (c) 
to read as follows:


Sec.  13.301  Inflation adjustments of civil monetary penalties.

* * * * *
    (c) Minimum and maximum civil monetary penalties within the 
jurisdiction of the FAA are as follows:

                Table of Minimum and Maximum Civil Monetary Penalty Amounts for Certain Violations Occurring on or After January 15, 2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Civil monetary penalty      2016 minimum     New minimum     2016 maximum penalty       New maximum penalty
     United States Code citation                description           penalty amount  penalty amount           amount                    amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
49 U.S.C. 5123(a)(1).................  Violation of hazardous                    N/A             N/A  $77,114.................  $78,376.
                                        materials transportation law.
49 U.S.C. 5123(a)(2).................  Violation of hazardous                    N/A             N/A  179,933.................  182,877.
                                        materials transportation law
                                        resulting in death, serious
                                        illness, severe injury, or
                                        substantial property
                                        destruction.
49 U.S.C. 5123(a)(3).................  Violation of hazardous                   $463            $471  77,114..................  78,376.
                                        materials transportation law
                                        relating to training.
49 U.S.C. 46301(a)(1)................  Violation by a person other               N/A             N/A  32,140..................  32,666.
                                        than an individual or small
                                        business concern under 49
                                        U.S.C. 46301(a)(1)(A) or (B).
49 U.S.C. 46301(a)(1)................  Violation by an airman                    N/A             N/A  1,414...................  1,437.
                                        serving as an airman under
                                        49 U.S.C. 46301(a)(1)(A) or
                                        (B) (but not covered by
                                        46301(a)(5)(A) or (B)).
49 U.S.C. 46301(a)(1)................  Violation by an individual or             N/A             N/A  1,414...................  1,437.
                                        small business concern under
                                        49 U.S.C. 46301(a)(1)(A) or
                                        (B) (but not covered in 49
                                        U.S.C. 46301(a)(5)).
49 U.S.C. 46301(a)(3)................  Violation of 49 U.S.C.                    N/A             N/A  Increase above otherwise  No change.
                                        47107(b) (or any assurance                                     applicable maximum
                                        made under such section) or                                    amount not to exceed 3
                                        49 U.S.C. 47133.                                               times the amount of
                                                                                                       revenues that are used
                                                                                                       in violation of such
                                                                                                       section.
49 U.S.C. 46301(a)(5)(A).............  Violation by an individual or             N/A             N/A  12,856..................  13,066.
                                        small business concern
                                        (except an airman serving as
                                        an airman) under 49 U.S.C.
                                        46301(a)(5)(A)(i) or (ii).
49 U.S.C. 46301(a)(5)(B)(i)..........  Violation by an individual or             N/A             N/A  12,856..................  13,066.
                                        small business concern
                                        related to the
                                        transportation of hazardous
                                        materials.

[[Page 17101]]

 
49 U.S.C. 46301(a)(5)(B)(ii).........  Violation by an individual or             N/A             N/A  12,856..................  13,066.
                                        small business concern
                                        related to the registration
                                        or recordation under 49
                                        U.S.C. chapter 441, of an
                                        aircraft not used to provide
                                        air transportation.
49 U.S.C. 46301(a)(5)(B)(iii)........  Violation by an individual or             N/A             N/A  12,856..................  13,066.
                                        small business concern of 49
                                        U.S.C. 44718(d), relating to
                                        limitation on construction
                                        or establishment of
                                        landfills.
49 U.S.C. 46301(a)(5)(B)(iv).........  Violation by an individual or             N/A             N/A  12,856..................  13,066.
                                        small business concern of 49
                                        U.S.C. 44725, relating to
                                        the safe disposal of life-
                                        limited aircraft parts.
49 U.S.C. 46301(b)...................  Tampering with a smoke alarm              N/A             N/A  4,126...................  4,194.
                                        device.
49 U.S.C. 46302......................  Knowingly providing false                 N/A             N/A  22,587..................  22,957.
                                        information about alleged
                                        violation involving the
                                        special aircraft
                                        jurisdiction of the United
                                        States.
49 U.S.C. 46318......................  Interference with cabin or                N/A             N/A  34,172..................  34,731.
                                        flight crew.
49 U.S.C. 46319......................  Permanent closure of an                   N/A             N/A  12,856..................  13,066.
                                        airport without providing
                                        sufficient notice.
49 U.S.C. 47531......................  Violation of 49 U.S.C. 47528-             N/A             N/A  See 49 U.S.C.             See 49 U.S.C.
                                        47530, relating to the                                         46301(a)(1) and (a)(5),   46301(a)(1) and (a)(5),
                                        prohibition of operating                                       above.                    above.
                                        certain aircraft not
                                        complying with stage 3 noise
                                        levels.
--------------------------------------------------------------------------------------------------------------------------------------------------------

CHAPTER III--COMMERCIAL SPACE TRANSPORTATION, FEDERAL AVIATION 
ADMINISTRATION, DEPARTMENT OF TRANSPORTATION

PART 406--INVESTIGATIONS, ENFORCEMENT, AND ADMINISTRATIVE REVIEW

0
3. The authority citation for part 406 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.


0
4. Amend Sec.  406.9 by revising paragraph (a) to read as follows:


Sec.  406.9   Civil penalties.

    (a) Civil penalty liability. Under 51 U.S.C. 50917(c), a person 
found by the FAA to have violated a requirement of the Act, a 
regulation issued under the Act, or any term or condition of a license 
or permit issued or transferred under the Act, is liable to the United 
States for a civil penalty of not more than $229,562 for each 
violation. A separate violation occurs for each day the violation 
continues.
* * * * *

    Issued under the authority provided by 28 U.S.C. 2461 note, 49 
U.S.C. 106(f) and 44701(a), and 51 U.S.C. 50901 in Washington, DC, 
on February 13, 2017.
Michael P. Huerta,
Administrator.
[FR Doc. 2017-06766 Filed 4-7-17; 8:45 am]
 BILLING CODE 4910-13-P