Civil Monetary Penalties-2025 Adjustment, 3041-3043 [2025-00570]
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[Federal Register Volume 90, Number 8 (Tuesday, January 14, 2025)] [Rules and Regulations] [Pages 3041-3043] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2025-00570] ======================================================================= ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD 49 CFR Part 1022 [Docket No. EP 716 (Sub-No. 10)] Civil Monetary Penalties--2025 Adjustment AGENCY: Surface Transportation Board. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Surface Transportation Board (Board) is issuing a final rule to implement the annual inflationary adjustment to its civil monetary penalties, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. DATES: This final rule is effective January 14, 2025. FOR FURTHER INFORMATION CONTACT: Sarah Fancher at (202) 245-0355. If you require an accommodation under the Americans with Disabilities Act, please call (202) 245-0245. SUPPLEMENTARY INFORMATION: I. Background The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act), enacted as part of the Bipartisan Budget Act of 2015, Public Law 114-74, sec. 701, 129 Stat. 584, 599-601, requires agencies to adjust their civil penalties for inflation annually, beginning on July 1, 2016, and no later than January 15 of every year thereafter. In accordance with the 2015 Act, annual inflation adjustments are to be based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for October of the previous year and the October CPI-U of the year before that. Penalty level adjustments should be rounded to the nearest dollar. II. Discussion The statutory definition of civil monetary penalty covers various civil penalty provisions under the Rail (Part A); Motor Carriers, Water Carriers, Brokers, and Freight Forwarders (Part B); and Pipeline Carriers (Part C) provisions of the Interstate Commerce Act, as amended. The Board's civil (and criminal) penalty authority related to rail transportation is codified at 49 U.S.C. 11901-11908. The Board's penalty authority related to motor carriers, water carriers, brokers, and freight forwarders appears at 49 U.S.C. 14901-14916. The Board's penalty authority related to pipeline carriers is codified at 49 U.S.C. 16101-16106.\1\ The Board has regulations at 49 CFR part 1022 that codify the method set forth in the 2015 Act for annually adjusting for inflation the civil monetary penalties within the Board's jurisdiction. --------------------------------------------------------------------------- \1\ The Board also has various criminal penalty authority, enforceable in a federal criminal court. Congress has not, however, authorized federal agencies to adjust statutorily prescribed criminal penalty provisions for inflation, and this rule does not address those provisions. --------------------------------------------------------------------------- As set forth in this final rule, the Board is amending 49 CFR part 1022 to make an annual inflation adjustment to the civil monetary penalties in conformance with the requirements of the 2015 Act. The adjusted penalties set forth in the rule will apply only to violations that occur after the effective date of this regulation. In accordance with the 2015 Act, the annual adjustment adopted here is calculated by multiplying each current penalty by the cost-of-living adjustment factor of 1.02598, which reflects the percentage change between the October 2024 CPI-U (315.664) and the October 2023 CPI-U (307.671). The table at the end of this decision shows the statutory citation for each civil penalty, a description of the provision, the adjusted statutory civil penalty level for 2024, and the adjusted statutory civil penalty level for 2025. III. Final Rule The final rule set forth at the end of this decision is being issued without notice and comment pursuant to the rulemaking provision of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), which does not require that process ``when the agency for good cause finds'' that public notice and comment are ``unnecessary.'' Here, Congress has mandated that the agency make an annual inflation adjustment to its civil monetary penalties. The Board has no discretion to set alternative levels of adjusted civil monetary penalties, because the amount of the inflation adjustment must be calculated in accordance with the statutory formula. Given the absence of discretion, the Board has determined that there is good cause to promulgate this rule without soliciting public comment and to make this regulation effective immediately upon publication. IV. Regulatory Flexibility Statement The Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612, generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Because the Board has determined that notice and comment are not required under the APA for this rulemaking, the requirements of the RFA do not apply. V. Congressional Review Act Pursuant to the Congressional Review Act, 5 U.S.C. 801-808, the Office of Information and Regulatory Affairs has designated this rule as a non-major rule, as defined by 5 U.S.C. 804(2). VI. Paperwork Reduction Act This final rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3521. It is ordered: 1. The Board amends its rules as set forth in this decision. Notice of the final rule will be published in the Federal Register. 2. This decision is effective on its date of publication in the Federal Register. Decided: January 7, 2025. By the Board, Board Members Fuchs, Hedlund, Primus, and Schultz. Board Member Primus concurred with a separate expression. BOARD MEMBER PRIMUS, concurring: For the past couple years when the Board adjusted its civil monetary penalties, I wrote separately to express concern about the adequacy of the penalties afforded by statute. Civ. Monetary Penalties--2024 Adjustment, EP 716 (Sub-No. 9) (STB served Jan. 12, 2024), slip op. at 3 (Member Primus concurring); Civ. Monetary Penalties--2023 Adjustment, EP 716 (Sub-No. 8) (STB served Jan. 13, 2023), slip op. at 3-4 (Member Primus concurring). My concern remains today. The Board's decision, consistent with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, makes minor adjustments to its civil penalties--for example, increasing the penalty in 49 U.S.C. 11901(a) from $9,718 to $9,970. For the reasons I have stated previously, those penalties are unlikely to provide the deterrent effect intended by Congress, and Congress should address this inadequacy. List of Subjects in 49 CFR Part 1022 Administrative practice and procedures, Brokers, Civil penalties, Freight forwarders, Motor carriers, [[Page 3042]] Pipeline carriers, Rail carriers, Water carriers. Eden Besera, Clearance Clerk. For the reasons set forth in the preamble, part 1022 of title 49, chapter X, of the Code of Federal Regulations is amended as follows: PART 1022--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT 0 1. The authority citation for part 1022 continues to read as follows: Authority: 5 U.S.C. 551-557; 28 U.S.C. 2461 note; 49 U.S.C. 11901, 14901, 14903, 14904, 14905, 14906, 14907, 14908, 14910, 14915, 14916, 16101, 16103. 0 2. Revise Sec. 1022.4(b) to read as follows: Sec. 1022.4 Cost-of-living adjustments of civil monetary penalties. * * * * * (b) The cost-of-living adjustment required by the statute results in the following adjustments to the civil monetary penalties within the jurisdiction of the Board: Table 1 to Paragraph (b) ---------------------------------------------------------------------------------------------------------------- 2024-- penalty 2025-- adjusted Civil monetary penalty amount penalty amount U.S. Code citation description ----------------------------------- EP 716_9 (2024) EP 716_10 (2025) ---------------------------------------------------------------------------------------------------------------- Rail Carrier ---------------------------------------------------------------------------------------------------------------- 49 U.S.C. 11901(a)............................... Unless otherwise $9,718 $9,970 specified, maximum penalty for each knowing violation under this part, and for each day. 49 U.S.C. 11901(b)............................... For each violation under 973 998 sec. 11124(a)(2) or (b). 49 U.S.C. 11901(b)............................... For each day violation 50 51 continues. 49 U.S.C. 11901(c)............................... Maximum penalty for each 9,718 9,970 knowing violation under secs. 10901-10906. 49 U.S.C. 11901(d)............................... For each violation under 193-973 198-998 sec. 11123 or 11124(a)(1). 49 U.S.C. 11901(d)............................... For each day violation 97 100 continues. 49 U.S.C. 11901(e)(1), (4)....................... For each violation under 973 998 secs. 11141-11145, for each day. 49 U.S.C. 11901(e)(2), (4)....................... For each violation under 193 198 sec. 11144(b)(1), for each day. 49 U.S.C. 11901(e)(3)-(4)........................ For each violation of 193 198 reporting requirements, for each day. ---------------------------------------------------------------------------------------------------------------- Motor and Water Carrier ---------------------------------------------------------------------------------------------------------------- 49 U.S.C. 14901(a)............................... Minimum penalty for each 1,330 1,365 violation and for each day. 49 U.S.C. 14901(a)............................... For each violation under 13,301 13,647 secs. 13901 or 13902(c). 49 U.S.C. 14901(a)............................... For each violation 33,252 34,116 related to transportation of passengers. 49 U.S.C. 14901(b)............................... For each violation of the 26,602-53,204 27,293-54,586 hazardous waste rules under sec. 3001 of the Solid Waste Disposal Act. 49 U.S.C. 14901(d)(1)............................ Minimum penalty for each 1,942 1,992 violation of household good regulations, and for each day. 49 U.S.C. 14901(d)(2)............................ Minimum penalty for each 19,436 19,941 instance of transportation of household goods if broker provides estimate without carrier agreement. 49 U.S.C. 14901(d)(3)............................ Minimum penalty for each 48,586 49,848 instance of transportation of household goods without being registered. 49 U.S.C. 14901(e)............................... Minimum penalty for each 3,887 3,988 violation of a transportation rule. 49 U.S.C. 14901(e)............................... Minimum penalty for each 9,718 9,970 additional violation. 49 U.S.C. 14903(a)............................... Maximum penalty for 194,359 199,408 undercharge or overcharge of tariff rate, for each violation. 49 U.S.C. 14904(a)............................... For first violation, 388 398 rebates at less than the rate in effect. 49 U.S.C. 14904(a)............................... For all subsequent 487 500 violations. 49 U.S.C. 14904(b)(1)............................ Maximum penalty for first 973 998 violation for undercharges by freight forwarders. 49 U.S.C. 14904(b)(1)............................ Maximum penalty for 3,887 3,988 subsequent violations. 49 U.S.C. 14904(b)(2)............................ Maximum penalty for other 973 998 first violations under sec. 13702. 49 U.S.C. 14904(b)(2)............................ Maximum penalty for 3,887 3,988 subsequent violations. 49 U.S.C. 14905(a)............................... Maximum penalty for each 19,436 19,941 knowing violation of sec, 14103(a), and knowingly authorizing, consenting to, or permitting a violation of sec. 14103(a) or (b). 49 U.S.C. 14906.................................. Minimum penalty for first 2,661 2,730 attempt to evade regulation. 49 U.S.C. 14906.................................. Minimum amount for each 6,650 6,823 subsequent attempt to evade regulation. 49 U.S.C. 14907.................................. Maximum penalty for 9,718 9,970 recordkeeping/reporting violations. 49 U.S.C. 14908(a)(2)............................ Maximum penalty for 3,887 3,988 violation of sec. 14908(a)(1). 49 U.S.C. 14910.................................. When another civil 973 998 penalty is not specified under this part, for each violation, for each day. 49 U.S.C. 14915(a)(1)-(2)........................ Minimum penalty for 15,445 15,846 holding a household goods shipment hostage, for each day. 49 U.S.C. 14916(c)(1)............................ Maximum penalty for each 13,301 13,647 knowing violation under sec. 14916(a) for unlawful brokerage activities. ---------------------------------------------------------------------------------------------------------------- Pipeline Carrier ---------------------------------------------------------------------------------------------------------------- 49 U.S.C. 16101(a)............................... Maximum penalty for 9,718 9,970 violation of this part, for each day. [[Page 3043]] 49 U.S.C. 16101(b)(1), (4)....................... For each recordkeeping 973 998 violation under sec. 15722, each day. 49 U.S.C. 16101(b)(2), (4)....................... For each inspection 193 198 violation liable under sec. 15722, each day. 49 U.S.C. 16101(b)(3)-(4)........................ For each reporting 193 198 violation under sec. 15723, each day. 49 U.S.C. 16103(a)............................... Maximum penalty for 1,942 1,992 improper disclosure of information. ---------------------------------------------------------------------------------------------------------------- [FR Doc. 2025-00570 Filed 1-13-25; 8:45 am] BILLING CODE 4915-01-P
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