Adjustment of Civil Penalties for Inflation for Fiscal Year 2020, 2281-2283 [2020-00304]
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Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Rules and Regulations
TABLE 1 TO § 2634.703—Continued
Date of violation
NUCLEAR REGULATORY
COMMISSION
Penalty
10 CFR Parts 2 and 13
Violation occurring after Nov.
2, 2015 ..............................
20,489
[NRC–2018–0048]
RIN 3150–AK11
(b) This remedy shall be in addition
to any other remedy available under
statutory or common law.
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PART 2636—LIMITATIONS ON
OUTSIDE EARNED INCOME,
EMPLOYMENT AND AFFILIATIONS
FOR CERTAIN NONCAREER
EMPLOYEES
Adjustment of Civil Penalties for
Inflation for Fiscal Year 2020
Nuclear Regulatory
Commission.
ACTION: Final rule.
AGENCY:
The U.S. Nuclear Regulatory
Commission (NRC) is amending its
regulations to adjust the maximum civil
■ 5. The authority citation for part 2636
monetary penalties it can assess under
continues to read as follows:
statutes enforced by the agency. These
changes are mandated by the Federal
Authority: 5 U.S.C. App. (Ethics in
Civil Penalties Inflation Adjustment Act
Government Act of 1978); Pub. L. 101–410,
of 1990, as amended by the Federal
104 Stat. 890, 28 U.S.C. 2461 note (Federal
Civil Penalties Inflation Adjustment Act
Civil Penalties Inflation Adjustment Act of
Improvements Act of 2015. The NRC is
1990), as amended by Sec. 31001, Pub. L.
amending its regulations to adjust the
104–134, 110 Stat. 1321 (Debt Collection
Improvement Act of 1996) and Sec. 701, Pub. maximum civil monetary penalty for a
violation of the Atomic Energy Act of
L. 114–74 (Federal Civil Penalties Inflation
1954, as amended, or any regulation or
Adjustment Act Improvements Act of 2015);
E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., order issued under the Atomic Energy
p. 215, as modified by E.O. 12731, 55 FR
Act from $298,211 to $303,471 per
42547, 3 CFR, 1990 Comp., p. 306.
violation, per day. Additionally, the
NRC is amending provisions concerning
■ 6. Section 2636.104 is amended by
program fraud civil penalties by
revising paragraph (a) to read as follows: adjusting the maximum civil monetary
penalty under the Program Fraud Civil
§ 2636.104 Civil, disciplinary and other
Remedies Act from $11,463 to $11,665
action.
for each false claim or statement.
(a) Civil action. Except when the
DATES: This final rule is effective on
employee engages in conduct in good
January 15, 2020.
faith reliance upon an advisory opinion
ADDRESSES: Please refer to Docket ID
issued under § 2636.103, an employee
who engages in any conduct in violation NRC–2018–0048 when contacting the
NRC about the availability of
of the prohibitions, limitations and
information for this action. You may
restrictions contained in this part may
obtain publicly-available information
be subject to civil action under 5 U.S.C.
app. 504(a) and a civil monetary penalty related to this action by any of the
following methods:
of not more than the amounts set in
• Federal Rulemaking Website: Go to
Table 1 to this section, as adjusted in
https://www.regulations.gov and search
accordance with the inflation
adjustment procedures prescribed in the for Docket ID NRC–2018–0048. Address
questions about NRC dockets to Carol
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended, or Gallagher; telephone: 301–415–3463;
email: Carol.Gallagher@nrc.gov. For
the amount of the compensation the
technical questions, contact the
individual received for the prohibited
individual listed in the FOR FURTHER
conduct, whichever is greater.
INFORMATION CONTACT section of this
document.
TABLE 1 TO § 2636.104
• NRC’s Agencywide Documents
Access and Management System
Date of violation
Penalty
(ADAMS): You may obtain publiclyavailable documents online in the
Violation occurring between
ADAMS Public Documents collection at
Sept. 29, 1999 and Nov. 2,
2015 ..................................
$11,000 https://www.nrc.gov/reading-rm/
Violation occurring after Nov.
adams.html. To begin the search, select
2, 2015 ..............................
20,489 ‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, please contact
*
*
*
*
*
the NRC’s Public Document Room (PDR)
[FR Doc. 2020–00479 Filed 1–14–20; 8:45 am]
reference staff at 1–800–397–4209, 301–
BILLING CODE 6345–03–P
415–4737, or by email to pdr.resource@
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SUMMARY:
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2281
nrc.gov. The ADAMS accession number
for each document referenced (if it is
available in ADAMS) is provided the
first time that it is mentioned in the
SUPPLEMENTARY INFORMATION section.
• NRC’s PDR: You may examine and
purchase copies of public documents at
the NRC’s PDR, Room O1–F21, One
White Flint North, 11555 Rockville
Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Eric
Michel, Office of the General Counsel,
U.S. Nuclear Regulatory Commission,
Washington, DC 20555–0001, telephone:
301–415–0932; email: Eric.Michel2@
nrc.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents:
I. Background
II. Discussion
III. Rulemaking Procedure
IV. Section-by-Section Analysis
V. Regulatory Analysis
VI. Regulatory Flexibility Act
VII. Backfitting and Issue Finality
VIII. Plain Writing
IX. National Environmental Policy Act
X. Paperwork Reduction Act
XI. Congressional Review Act
I. Background
Congress passed the Federal Civil
Penalties Inflation Adjustment Act of
1990 (FCPIAA) in 1990 to allow for
regular adjustment for inflation of civil
monetary penalties (CMPs), maintain
the deterrent effect of such penalties
and promote compliance with the law,
and improve the collection of CMPs by
the Federal Government (Pub. L. 101–
410, 104 Stat. 890; 28 U.S.C. 2461 note).
Pursuant to this authority, and as
amended by the Debt Collection
Improvement Act of 1996 (Pub. L. 104–
34, 110 Stat. 1321–373), the NRC
increased via rulemaking the CMP
amounts for violations of the Atomic
Energy Act of 1954, as amended (AEA)
(codified at § 2.205 of title 10 of the
Code of Federal Regulations (10 CFR))
and Program Fraud Civil Remedies Act
(codified at § 13.3) on four occasions
between 1996 and 2008.1
On November 2, 2015, Congress
amended the FCPIAA through the
Federal Civil Penalties Inflation
1 Adjustment of Civil Penalties for Inflation, (73
FR 54671; Sept. 23, 2008); Adjustment of Civil
Penalties for Inflation, (69 FR 62393; Oct. 26, 2004);
Adjustment of Civil Penalties for Inflation;
Miscellaneous Administrative Changes, (65 FR
59270; Oct. 4, 2000); Adjustment of Civil Monetary
Penalties for Inflation, (61 FR 53554; Oct. 11, 1996).
An adjustment was not performed in 2012 because
the FCPIAA at the time required agencies to round
their CMP amounts to the nearest multiple of
$1,000 or $10,000, depending on the size of the
CMP amount, and the 2012 adjustments based on
the statutory formula were small enough that no
adjustment resulted.
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Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Rules and Regulations
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Adjustment Act Improvements Act of
2015 (2015 Improvements Act) (Sec.
701, Pub. L. 114–74, 129 Stat. 599). The
2015 Improvements Act required that
the head of each agency perform an
initial ‘‘catch-up’’ adjustment via
rulemaking, adjusting the CMPs
enforced by that agency according to the
percentage change in the Consumer
Price Index (CPI) between the month of
October 2015 and the month of October
of the calendar year when the CMP
amount was last established by
Congress. The NRC performed this
catch-up rulemaking on July 1, 2016 (81
FR 43019).
The 2015 Improvements Act also
requires that the head of each agency
continue to adjust CMP amounts,
rounded to the nearest dollar, on an
annual basis. Specifically, each CMP is
to be adjusted based on the percentage
change between the CPI for the previous
month of October, and the CPI for the
month of October in the year preceding
that. The NRC most recently adjusted its
civil penalties for inflation according to
this statutory formula on February 7,
2019 (84 FR 2433). This year’s
adjustment is based on the percentage
change between the CPI for October
2018 and October 2019.
II. Discussion
Section 234 of the AEA limits civil
penalties for violations of the AEA to
$100,000 per day, per violation (42
U.S.C. 2282). However, as discussed in
Section I, ‘‘Background,’’ of this
document, the NRC has increased this
amount several times since 1996 per the
FCPIAA, as amended. Using the formula
in the 2015 Improvements Act, the
$298,211 amount last established in
February 2019 will increase by 1.764
percent, resulting in a new CMP amount
of $303,471. This is based on the
percentage change between the October
2018 CPI (252.885) and the October
2019 CPI (257.346). Therefore, the NRC
is amending § 2.205 to reflect a new
maximum CMP under the AEA in the
amount of $303,471 per day, per
violation. This represents an increase of
$5,260.
Monetary penalties under the Program
Fraud Civil Remedies Act were
established in 1986 at $5,000 per claim
(Pub. L. 99–509, 100 Stat. 1938; 31
U.S.C. 3802). The NRC also has adjusted
this amount (currently set at $11,463)
multiple times pursuant to the FCPIAA,
as amended, since 1996. Using the
formula in the 2015 Improvements Act,
the $11,463 amount last established in
February 2019 will also increase by
1.764 percent, resulting in a new CMP
amount of $11,665. Therefore, the NRC
is amending § 13.3 to reflect a new
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maximum CMP amount of $11,665 per
claim or statement. This represents an
increase of $202.
As permitted by the 2015
Improvements Act, the NRC may apply
these increased CMP amounts to any
penalties assessed by the agency after
the effective date of this rulemaking
(January 15, 2020), regardless of
whether the associated violation
occurred before or after this date (Pub.
L. 114–74, 129 Stat. 600; 28 U.S.C. 2461
note). The NRC assesses civil penalty
amounts for violations of the AEA based
on the class of licensee and severity of
the violation, in accordance with the
NRC Enforcement Policy. A
corresponding update to the NRC
Enforcement Policy is being published
today in the Rules section of the Federal
Register to reflect the updated CMP
amount in § 2.205 (Docket ID NRC–
2019–0242).
III. Rulemaking Procedure
The 2015 Improvements Act expressly
exempts this final rule from the notice
and comment requirements of the
Administrative Procedure Act, by
directing agencies to adjust CMPs for
inflation ‘‘notwithstanding section 553
of title 5, United States Code’’ (Pub. L.
114–74, 129 Stat. 599; 28 U.S.C. 2461
note). As such, this final rule is being
issued without prior public notice or
opportunity for public comment, with
an effective date of January 15, 2020.
IV. Section-by-Section Analysis
§ 2.205 Civil Penalties
This final rule revises paragraph (j) by
replacing ‘‘$298,211’’ with ‘‘$303,471’’.
§ 13.3 Basis for Civil Penalties and
Assessments
This final rule revises paragraphs
(a)(1)(iv) and (b)(1)(ii) by replacing
‘‘$11,463’’ with ‘‘$11,665’’.
V. Regulatory Analysis
This final rule adjusts for inflation the
maximum CMPs the NRC may assess
under the AEA and under the Program
Fraud Civil Remedies Act of 1986. The
formula for determining the amount of
the adjustment is mandated by Congress
in the FCPIAA, as amended by the 2015
Improvements Act (codified at 28 U.S.C.
2461 note). Congress passed this
legislation on the basis of its findings
that the power to impose monetary civil
penalties is important to deterring
violations of Federal law and furthering
the policy goals of Federal laws and
regulations. Congress has also found
that inflation diminishes the impact of
these penalties and their effect. The
principal purposes of this legislation are
to provide for adjustment of civil
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monetary penalties for inflation,
maintain the deterrent effect of civil
monetary penalties, and promote
compliance with the law. Therefore,
these are the anticipated impacts of this
rulemaking. Direct monetary impacts
fall only upon licensees or other persons
subjected to NRC enforcement for
violations of the AEA and regulations
and orders issued under the AEA
(§ 2.205), or those licensees or persons
subjected to liability pursuant to the
provisions of the Program Fraud Civil
Remedies Act of 1986 (31 U.S.C. 3801–
3812) and the NRC’s implementing
regulations (10 CFR part 13).
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act does
not apply to regulations for which a
Federal agency is not required by law,
including the rulemaking provisions of
the Administrative Procedure Act, 5
U.S.C 553(b), to publish a general notice
of proposed rulemaking (5 U.S.C. 604).
As discussed in this notice under
Section III., ‘‘Rulemaking Procedure,’’
the NRC has determined that this final
rule is exempt from the requirements of
5 U.S.C. 553(b) and notice and comment
need not be provided. Accordingly, the
NRC also determines that the
requirements of the Regulatory
Flexibility Act do not apply to this final
rule.
VII. Backfit and Issue Finality
The NRC has not prepared a backfit
analysis for this final rule. This final
rule does not involve any provision that
would impose a backfit, nor is it
inconsistent with any issue finality
provision, as those terms are defined in
10 CFR chapter I. As mandated by
Congress, this final rule increases CMP
amounts for violations of alreadyexisting NRC regulations and
requirements. This final rule does not
modify any licensee systems, structures,
components, designs, approvals, or
procedures required for the construction
or operation of any facility.
VIII. Plain Writing
The Plain Writing Act of 2010 (Pub.
L. 111–274) requires Federal agencies to
write documents in a clear, concise, and
well-organized manner. The NRC has
written this document to be consistent
with the Plain Writing Act as well as the
Presidential Memorandum, ‘‘Plain
Language in Government Writing,’’
published June 10, 1998 (63 FR 31883).
IX. National Environmental Policy Act
The NRC has determined that this
final rule is the type of action described
as a categorical exclusion in 10 CFR
51.22(c)(1). Therefore, neither an
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Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Rules and Regulations
environmental impact statement nor an
environmental assessment has been
prepared for this final rule.
X. Paperwork Reduction Act
This final rule does not contain a
collection of information as defined in
the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) and, therefore,
is not subject to the requirements of the
Paperwork Reduction Act of 1995.
XI. Congressional Review Act
This final rule is a rule as defined in
the Congressional Review Act (5 U.S.C.
801–808). However, the Office of
Management and Budget has not found
it to be a major rule as defined in the
Congressional Review Act.
List of Subjects
[Amended]
2. In § 2.205(j), remove the amount
‘‘$298,211’’ and add in its place the
amount ‘‘$303.471’’.
■
PART 13—PROGRAM FRAUD CIVIL
REMEDIES
3. The authority citation for part 13
continues to read as follows:
■
Authority: 31 U.S.C. 3801 through 3812;
44 U.S.C. 3504 note.
Section 13.3 also issued under 28 U.S.C.
2461 note.
Section 13.13 also issued under 31 U.S.C.
3730.
§ 13.3
[Amended]
4. In § 13.3(a)(1)(iv) and (b)(1)(ii),
remove the amount ‘‘$11,463’’ and add
in its place the amount ‘‘$11,665’’.
■
10 CFR Part 2
Administrative practice and
procedure, Antitrust, Byproduct
material, Classified information,
Confidential business information,
Environmental protection, Freedom of
information, Hazardous waste, Nuclear
energy, Nuclear materials, Nuclear
power plants and reactors, Penalties,
Reporting and recordkeeping
requirements, Sex discrimination,
Source material, Special nuclear
material, Waste treatment and disposal.
Dated in Rockville, Maryland, this 31st day
of December 2019.
For the Nuclear Regulatory Commission.
Margaret M. Doane,
Executive Director for Operations.
10 CFR Part 13
Administrative practice and
procedure, Claims, Fraud, Organization
and function (Government agencies),
Penalties.
For the reasons set out in the
preamble and under the authority of the
Atomic Energy Act of 1954, as amended;
the Energy Reorganization Act of 1974,
as amended; 28 U.S.C. 2461 note; and 5
U.S.C. 552 and 553, the NRC is adopting
the following amendments to 10 CFR
parts 2 and 13:
RIN 3055–AA16
PART 2—AGENCY RULES OF
PRACTICE AND PROCEDURE
1. The authority citation for part 2 is
revised to read as follows:
■
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§ 2.205
Authority: Atomic Energy Act of 1954,
secs. 29, 53, 62, 63, 81, 102, 103, 104, 105,
161, 181, 182, 183, 184, 186, 189, 191, 234
(42 U.S.C. 2039, 2073, 2092, 2093, 2111,
2132, 2133, 2134, 2135, 2201, 2231, 2232,
2233, 2234, 2236, 2239, 2241, 2282); Energy
Reorganization Act of 1974, secs. 201, 206
(42 U.S.C. 5841, 5846); Nuclear Waste Policy
Act of 1982, secs. 114(f), 134, 135, 141 (42
U.S.C. 10134(f), 10154, 10155, 10161);
Administrative Procedure Act (5 U.S.C. 552,
553, 554, 557, 558); National Environmental
Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C.
3504 note.
Section 2.205(j) also issued under 28
U.S.C. 2461 note.
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[FR Doc. 2020–00304 Filed 1–14–20; 8:45 am]
BILLING CODE 7590–01–P
FARM CREDIT SYSTEM INSURANCE
CORPORATION
12 CFR Part 1411
Rules of Practice and Procedure;
Adjusting Civil Money Penalties for
Inflation
Farm Credit System Insurance
Corporation.
ACTION: Final rule.
AGENCY:
This rule implements
inflation adjustments to civil money
penalties (CMPs) that the Farm Credit
System Insurance Corporation (FCSIC)
may impose under the Farm Credit Act
of 1971, as amended. These adjustments
are required by 2015 amendments to the
Federal Civil Penalties Inflation
Adjustment Act of 1990.
DATES:
Effective date: This regulation is
effective on January 15, 2020.
Applicability date: The adjusted
amounts of civil money penalties in this
rule are applicable to penalties assessed
on or after January 15, 2019, for conduct
occurring on or after November 2, 2015.
FOR FURTHER INFORMATION CONTACT:
Lynn M. Powalski, General Counsel,
Farm Credit System Insurance
Corporation, 1501 Farm Credit Drive,
McLean, Virginia 22102, (703) 883–
4380, TTY (703) 883–4390.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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I. Background
The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the 2015 Act) amended the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (the Inflation
Adjustment Act) 1 to improve the
effectiveness of civil monetary penalties
and to maintain their deterrent effect.
The Inflation Adjustment Act provides
for the regular evaluation of CMPs and
requires FCSIC, and every other Federal
agency with authority to impose CMPs,
to ensure that CMPs continue to
maintain their deterrent values.2
FCSIC must enact regulations that
annually adjust its CMPs pursuant to
the inflation adjustment formula of the
amended Inflation Adjustment Act and
rounded using a method prescribed by
the Inflation Adjustment Act. The new
amounts are applicable to penalties
assessed on or after January 15, 2019, for
conduct occurring on or after November
2, 2015. Agencies do not have discretion
in choosing whether to adjust a CMP, by
how much to adjust a CMP, or the
methods used to determine the
adjustment.
II. CMPs Imposed Pursuant to Section
5.65 of the Farm Credit Act
First, section 5.65(c) of the Farm
Credit Act, as amended (Act), provides
that any insured Farm Credit System
bank that willfully fails or refuses to file
any certified statement or pay any
required premium shall be subject to a
penalty of not more than $100 for each
day that such violations continue,
which penalty FCSIC may recover for its
use.3 Second, section 5.65(d) of the Act
provides that, except with the prior
written consent of the Farm Credit
Administration, it shall be unlawful for
any person convicted of any criminal
offense involving dishonesty or a breach
of trust to serve as a director, officer, or
employee of any System institution.4
For each willful violation of section
5.65(d), the institution involved shall be
subject to a penalty of not more than
1 Public Law 101–410, 104 Stat. 890 (Oct. 5,
1990), as amended by Public Law 104–134, title III,
sec. 31001(s)(1), 110 Stat. 1321–373 (Apr. 26, 1996);
Public Law 105–362, title XIII, sec. 1301(a), 112
Stat. 3293 (Nov. 10, 1998); Public Law 114–74, title
VII, sec. 701(b), 129 Stat. 599 (Nov. 2, 2015),
codified at 28 U.S.C. 2461 note.
2 Under the amended Inflation Adjustment Act, a
CMP is defined as any penalty, fine, or other
sanction that: (1) Either is for a specific monetary
amount as provided by Federal law or has a
maximum amount provided for by Federal law; (2)
is assessed or enforced by an agency pursuant to
Federal law; and (3) is assessed or enforced
pursuant to an administrative proceeding or a civil
action in the Federal courts. All three requirements
must be met for a fine to be considered a CMP.
3 12 U.S.C. 2277a–14(c).
4 12 U.S.C. 2277a–14(d).
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]]>Agencies
[Federal Register Volume 85, Number 10 (Wednesday, January 15, 2020)]
[Rules and Regulations]
[Pages 2281-2283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00304]
=======================================================================
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
10 CFR Parts 2 and 13
[NRC-2018-0048]
RIN 3150-AK11
Adjustment of Civil Penalties for Inflation for Fiscal Year 2020
AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending its
regulations to adjust the maximum civil monetary penalties it can
assess under statutes enforced by the agency. These changes are
mandated by the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015. The NRC is amending its regulations to
adjust the maximum civil monetary penalty for a violation of the Atomic
Energy Act of 1954, as amended, or any regulation or order issued under
the Atomic Energy Act from $298,211 to $303,471 per violation, per day.
Additionally, the NRC is amending provisions concerning program fraud
civil penalties by adjusting the maximum civil monetary penalty under
the Program Fraud Civil Remedies Act from $11,463 to $11,665 for each
false claim or statement.
DATES: This final rule is effective on January 15, 2020.
ADDRESSES: Please refer to Docket ID NRC-2018-0048 when contacting the
NRC about the availability of information for this action. You may
obtain publicly-available information related to this action by any of
the following methods:
Federal Rulemaking Website: Go to https://www.regulations.gov and search for Docket ID NRC-2018-0048. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly-available documents online in the
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS
Search.'' For problems with ADAMS, please contact the NRC's Public
Document Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or
by email to [email protected]. The ADAMS accession number for each
document referenced (if it is available in ADAMS) is provided the first
time that it is mentioned in the SUPPLEMENTARY INFORMATION section.
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Eric Michel, Office of the General
Counsel, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001,
telephone: 301-415-0932; email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents:
I. Background
II. Discussion
III. Rulemaking Procedure
IV. Section-by-Section Analysis
V. Regulatory Analysis
VI. Regulatory Flexibility Act
VII. Backfitting and Issue Finality
VIII. Plain Writing
IX. National Environmental Policy Act
X. Paperwork Reduction Act
XI. Congressional Review Act
I. Background
Congress passed the Federal Civil Penalties Inflation Adjustment
Act of 1990 (FCPIAA) in 1990 to allow for regular adjustment for
inflation of civil monetary penalties (CMPs), maintain the deterrent
effect of such penalties and promote compliance with the law, and
improve the collection of CMPs by the Federal Government (Pub. L. 101-
410, 104 Stat. 890; 28 U.S.C. 2461 note). Pursuant to this authority,
and as amended by the Debt Collection Improvement Act of 1996 (Pub. L.
104-34, 110 Stat. 1321-373), the NRC increased via rulemaking the CMP
amounts for violations of the Atomic Energy Act of 1954, as amended
(AEA) (codified at Sec. 2.205 of title 10 of the Code of Federal
Regulations (10 CFR)) and Program Fraud Civil Remedies Act (codified at
Sec. 13.3) on four occasions between 1996 and 2008.\1\
---------------------------------------------------------------------------
\1\ Adjustment of Civil Penalties for Inflation, (73 FR 54671;
Sept. 23, 2008); Adjustment of Civil Penalties for Inflation, (69 FR
62393; Oct. 26, 2004); Adjustment of Civil Penalties for Inflation;
Miscellaneous Administrative Changes, (65 FR 59270; Oct. 4, 2000);
Adjustment of Civil Monetary Penalties for Inflation, (61 FR 53554;
Oct. 11, 1996). An adjustment was not performed in 2012 because the
FCPIAA at the time required agencies to round their CMP amounts to
the nearest multiple of $1,000 or $10,000, depending on the size of
the CMP amount, and the 2012 adjustments based on the statutory
formula were small enough that no adjustment resulted.
---------------------------------------------------------------------------
On November 2, 2015, Congress amended the FCPIAA through the
Federal Civil Penalties Inflation
[[Page 2282]]
Adjustment Act Improvements Act of 2015 (2015 Improvements Act) (Sec.
701, Pub. L. 114-74, 129 Stat. 599). The 2015 Improvements Act required
that the head of each agency perform an initial ``catch-up'' adjustment
via rulemaking, adjusting the CMPs enforced by that agency according to
the percentage change in the Consumer Price Index (CPI) between the
month of October 2015 and the month of October of the calendar year
when the CMP amount was last established by Congress. The NRC performed
this catch-up rulemaking on July 1, 2016 (81 FR 43019).
The 2015 Improvements Act also requires that the head of each
agency continue to adjust CMP amounts, rounded to the nearest dollar,
on an annual basis. Specifically, each CMP is to be adjusted based on
the percentage change between the CPI for the previous month of
October, and the CPI for the month of October in the year preceding
that. The NRC most recently adjusted its civil penalties for inflation
according to this statutory formula on February 7, 2019 (84 FR 2433).
This year's adjustment is based on the percentage change between the
CPI for October 2018 and October 2019.
II. Discussion
Section 234 of the AEA limits civil penalties for violations of the
AEA to $100,000 per day, per violation (42 U.S.C. 2282). However, as
discussed in Section I, ``Background,'' of this document, the NRC has
increased this amount several times since 1996 per the FCPIAA, as
amended. Using the formula in the 2015 Improvements Act, the $298,211
amount last established in February 2019 will increase by 1.764
percent, resulting in a new CMP amount of $303,471. This is based on
the percentage change between the October 2018 CPI (252.885) and the
October 2019 CPI (257.346). Therefore, the NRC is amending Sec. 2.205
to reflect a new maximum CMP under the AEA in the amount of $303,471
per day, per violation. This represents an increase of $5,260.
Monetary penalties under the Program Fraud Civil Remedies Act were
established in 1986 at $5,000 per claim (Pub. L. 99-509, 100 Stat.
1938; 31 U.S.C. 3802). The NRC also has adjusted this amount (currently
set at $11,463) multiple times pursuant to the FCPIAA, as amended,
since 1996. Using the formula in the 2015 Improvements Act, the $11,463
amount last established in February 2019 will also increase by 1.764
percent, resulting in a new CMP amount of $11,665. Therefore, the NRC
is amending Sec. 13.3 to reflect a new maximum CMP amount of $11,665
per claim or statement. This represents an increase of $202.
As permitted by the 2015 Improvements Act, the NRC may apply these
increased CMP amounts to any penalties assessed by the agency after the
effective date of this rulemaking (January 15, 2020), regardless of
whether the associated violation occurred before or after this date
(Pub. L. 114-74, 129 Stat. 600; 28 U.S.C. 2461 note). The NRC assesses
civil penalty amounts for violations of the AEA based on the class of
licensee and severity of the violation, in accordance with the NRC
Enforcement Policy. A corresponding update to the NRC Enforcement
Policy is being published today in the Rules section of the Federal
Register to reflect the updated CMP amount in Sec. 2.205 (Docket ID
NRC-2019-0242).
III. Rulemaking Procedure
The 2015 Improvements Act expressly exempts this final rule from
the notice and comment requirements of the Administrative Procedure
Act, by directing agencies to adjust CMPs for inflation
``notwithstanding section 553 of title 5, United States Code'' (Pub. L.
114-74, 129 Stat. 599; 28 U.S.C. 2461 note). As such, this final rule
is being issued without prior public notice or opportunity for public
comment, with an effective date of January 15, 2020.
IV. Section-by-Section Analysis
Sec. 2.205 Civil Penalties
This final rule revises paragraph (j) by replacing ``$298,211''
with ``$303,471''.
Sec. 13.3 Basis for Civil Penalties and Assessments
This final rule revises paragraphs (a)(1)(iv) and (b)(1)(ii) by
replacing ``$11,463'' with ``$11,665''.
V. Regulatory Analysis
This final rule adjusts for inflation the maximum CMPs the NRC may
assess under the AEA and under the Program Fraud Civil Remedies Act of
1986. The formula for determining the amount of the adjustment is
mandated by Congress in the FCPIAA, as amended by the 2015 Improvements
Act (codified at 28 U.S.C. 2461 note). Congress passed this legislation
on the basis of its findings that the power to impose monetary civil
penalties is important to deterring violations of Federal law and
furthering the policy goals of Federal laws and regulations. Congress
has also found that inflation diminishes the impact of these penalties
and their effect. The principal purposes of this legislation are to
provide for adjustment of civil monetary penalties for inflation,
maintain the deterrent effect of civil monetary penalties, and promote
compliance with the law. Therefore, these are the anticipated impacts
of this rulemaking. Direct monetary impacts fall only upon licensees or
other persons subjected to NRC enforcement for violations of the AEA
and regulations and orders issued under the AEA (Sec. 2.205), or those
licensees or persons subjected to liability pursuant to the provisions
of the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801-3812)
and the NRC's implementing regulations (10 CFR part 13).
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to regulations for
which a Federal agency is not required by law, including the rulemaking
provisions of the Administrative Procedure Act, 5 U.S.C 553(b), to
publish a general notice of proposed rulemaking (5 U.S.C. 604). As
discussed in this notice under Section III., ``Rulemaking Procedure,''
the NRC has determined that this final rule is exempt from the
requirements of 5 U.S.C. 553(b) and notice and comment need not be
provided. Accordingly, the NRC also determines that the requirements of
the Regulatory Flexibility Act do not apply to this final rule.
VII. Backfit and Issue Finality
The NRC has not prepared a backfit analysis for this final rule.
This final rule does not involve any provision that would impose a
backfit, nor is it inconsistent with any issue finality provision, as
those terms are defined in 10 CFR chapter I. As mandated by Congress,
this final rule increases CMP amounts for violations of already-
existing NRC regulations and requirements. This final rule does not
modify any licensee systems, structures, components, designs,
approvals, or procedures required for the construction or operation of
any facility.
VIII. Plain Writing
The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal
agencies to write documents in a clear, concise, and well-organized
manner. The NRC has written this document to be consistent with the
Plain Writing Act as well as the Presidential Memorandum, ``Plain
Language in Government Writing,'' published June 10, 1998 (63 FR
31883).
IX. National Environmental Policy Act
The NRC has determined that this final rule is the type of action
described as a categorical exclusion in 10 CFR 51.22(c)(1). Therefore,
neither an
[[Page 2283]]
environmental impact statement nor an environmental assessment has been
prepared for this final rule.
X. Paperwork Reduction Act
This final rule does not contain a collection of information as
defined in the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)
and, therefore, is not subject to the requirements of the Paperwork
Reduction Act of 1995.
XI. Congressional Review Act
This final rule is a rule as defined in the Congressional Review
Act (5 U.S.C. 801-808). However, the Office of Management and Budget
has not found it to be a major rule as defined in the Congressional
Review Act.
List of Subjects
10 CFR Part 2
Administrative practice and procedure, Antitrust, Byproduct
material, Classified information, Confidential business information,
Environmental protection, Freedom of information, Hazardous waste,
Nuclear energy, Nuclear materials, Nuclear power plants and reactors,
Penalties, Reporting and recordkeeping requirements, Sex
discrimination, Source material, Special nuclear material, Waste
treatment and disposal.
10 CFR Part 13
Administrative practice and procedure, Claims, Fraud, Organization
and function (Government agencies), Penalties.
For the reasons set out in the preamble and under the authority of
the Atomic Energy Act of 1954, as amended; the Energy Reorganization
Act of 1974, as amended; 28 U.S.C. 2461 note; and 5 U.S.C. 552 and 553,
the NRC is adopting the following amendments to 10 CFR parts 2 and 13:
PART 2--AGENCY RULES OF PRACTICE AND PROCEDURE
0
1. The authority citation for part 2 is revised to read as follows:
Authority: Atomic Energy Act of 1954, secs. 29, 53, 62, 63, 81,
102, 103, 104, 105, 161, 181, 182, 183, 184, 186, 189, 191, 234 (42
U.S.C. 2039, 2073, 2092, 2093, 2111, 2132, 2133, 2134, 2135, 2201,
2231, 2232, 2233, 2234, 2236, 2239, 2241, 2282); Energy
Reorganization Act of 1974, secs. 201, 206 (42 U.S.C. 5841, 5846);
Nuclear Waste Policy Act of 1982, secs. 114(f), 134, 135, 141 (42
U.S.C. 10134(f), 10154, 10155, 10161); Administrative Procedure Act
(5 U.S.C. 552, 553, 554, 557, 558); National Environmental Policy
Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note.
Section 2.205(j) also issued under 28 U.S.C. 2461 note.
Sec. 2.205 [Amended]
0
2. In Sec. 2.205(j), remove the amount ``$298,211'' and add in its
place the amount ``$303.471''.
PART 13--PROGRAM FRAUD CIVIL REMEDIES
0
3. The authority citation for part 13 continues to read as follows:
Authority: 31 U.S.C. 3801 through 3812; 44 U.S.C. 3504 note.
Section 13.3 also issued under 28 U.S.C. 2461 note.
Section 13.13 also issued under 31 U.S.C. 3730.
Sec. 13.3 [Amended]
0
4. In Sec. 13.3(a)(1)(iv) and (b)(1)(ii), remove the amount
``$11,463'' and add in its place the amount ``$11,665''.
Dated in Rockville, Maryland, this 31st day of December 2019.
For the Nuclear Regulatory Commission.
Margaret M. Doane,
Executive Director for Operations.
[FR Doc. 2020-00304 Filed 1-14-20; 8:45 am]
BILLING CODE 7590-01-P
