Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 533 

spans or any other portion of the bridge, 

is strictly prohibited. Report any contact 

with the bridge or associated structures 

immediately to VTS Port Arthur on 

channels 65A, 13 or 16 VHF–FM or by 

telephone at (409) 719–5070. 

(d) Informational broadcasts. The 

Coast Guard will inform the public 

through public of the effective period of 

this safety zone through VTS 

Advisories, Broadcast Notices to 

Mariners (BNMs), Local Notice to 

Mariners (LNMs), and/or Marine Safety 

Information Bulletins (MSIBs) as 

appropriate. 

Dated: December 26, 2018. 

K.J. Pierre, 

Commander, U.S. Coast Guard, Acting 

Captain of the Port Marine Safety Unit Port 

Arthur. 

[FR Doc. 2019–00423 Filed 1–30–19; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2018–1063] 

RIN 1625–AA00 

Safety Zones, Delaware River; 

Maintenance Dredging 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary interim rule and 

request for comments. 

SUMMARY: The Coast Guard is 

establishing temporary safety zones in 

portions of New Castle Range, Marcus 

Hook Range, Deepwater Point Range, 

and Anchorage 7 off Marcus Hook 

Range on the Delaware River. The safety 

zones will temporarily restrict vessel 

traffic from transiting or anchoring in a 

portion of the Delaware River while 

dredging operations are being 

conducted to facilitate the Delaware 

River annual maintenance project for 

the main navigational channel of the 

Delaware River. This regulation is 

necessary to provide for the safety of life 

on navigable waters of the Delaware 

River, in the vicinity of dredging 

activity and is intended to protect 

mariners from the hazards associated 

with pipe-laying and dredging 

operations. 

DATES: This rule is effective without 

actual notice from January 31, 2019, 

through May 31, 2019. For the purposes 

of enforcement, actual notice will be 

used from January 15, 2019, through 

January 31, 2019. 

Comments and related material must 

be received by the Coast Guard on or 

before March 4, 2019. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2018– 

1063 in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with this 

rule. You may submit comments 

identified by docket number USCG– 

2018–1063 using the Federal 

eRulemaking Portal at http://

www.regulations.gov. See the ‘‘Public 

Participation and Request for 

Comments’’ portion for further 

instructions on submitting comments. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email Petty Officer Edmund Ofalt, U.S. 

Coast Guard, Sector Delaware Bay, 

Waterways Management Division, 

telephone (215) 271–4889, email 

Edmund.j.ofalt@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

COTP Captain of the Port 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of proposed rulemaking 

§ Section 

U.S.C. United States Code 

II. Background Information and 

Regulatory History 

The Coast Guard is issuing this 

temporary rule without prior notice and 

opportunity to comment pursuant to 

authority under section 4(a) of the 

Administrative Procedure Act (APA) (5 

U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

impracticable, unnecessary, or contrary 

to the public interest. Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule because doing 

so would be impractical and contrary to 

the public interest. Final details for the 

dredging operation were not received by 

the Coast Guard until January 9, 2019. 

Vessels transiting through New Castle 

Range, Marcus Hook Range, Deepwater 

Point Range, or entering the waters of 

Anchorage 7 off Marcus Hook Range 

during dredging operations may be at 

risk. We are taking immediate action to 

help protect the safety of the project 

personnel, vessels, and the marine 

environment on the navigable waters 

within the safety zones while dredging 

is being conducted. It is important to 

have these regulations in effect during 

dredging operations and it is 

impracticable to delay the regulations. 

We are issuing this rule and, under 5 

U.S.C. 553(d)(3), the Coast Guard finds 

that good cause exists for making it 

effective less than 30 days after 

publication in the Federal Register 

because doing so would be contrary to 

the public interest. Allowing this 

dredging operation to go forward 

without safety zones in place would 

expose mariners and the public to 

unnecessary dangers. 

III. Legal Authority and Need for Rule 

The Coast Guard is issuing this rule 

under authority in 33 U.S.C. 1231. The 

Captain of the Port (COTP), Delaware 

Bay, has determined that potential 

hazards associated with dredging 

operations beginning on or after January 

15, 2019, will be a safety concern for 

vessels attempting to transit the 

Delaware River, along New Castle 

Range, Marcus Hook Range, Deepwater 

Point Range, and Anchorage 7 off 

Marcus Hook Range. This rule is needed 

to protect personnel, vessels, and the 

marine environment on the navigable 

waters within the safety zones while 

dredging operations are being 

conducted. 

IV. Discussion of the Rule 

This rule establishes safety zones on 

portions of the Delaware River from 

January 15, 2019 until May 31, 2019, 

unless cancelled earlier by the COTP. 

The safety zones are necessary to 

facilitate the main channel annual 

maintenance of New Castle Range, 

Marcus Hook Range, Deepwater Point 

Range, and Anchorage 7 off Marcus 

Hook Range (as described in 33 CFR 

110.157(a)(8)). Maintenance dredging in 

the channel will most likely be 

conducted with the dredge ESSEX, 

though other dredges may be used, 

along with associated dredge pipeline 

and boosters. The pipeline consists of a 

combination of floating hoses 

immediately behind the dredge and 

submerged pipeline leading to upland 

disposal areas. Due to the hazards 

related to dredging operations, the 

associated pipeline, and the location of 

the submerged pipeline, safety zones are 

being established in the following areas: 

(1) Safety zone one includes all 

navigable waters within 250 yards of the 

dredge displaying lights and shapes for 

vessels restricted in ability to maneuver 

as described in 33 CFR 83.27 and all 

related dredge equipment when the 

dredge is operating in New Castle 

Range, Marcus Hook Range, Deepwater 

Point Range, and Anchorage 7. This 

safety zone is being established for the 


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534 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 

duration of the maintenance project. 

Vessels requesting to transit the safety 

zone must contact the dredge on VHF 

channel 13 or 16 at least 1 hour prior 

to arrival to arrange safe passage. At 

least one side of the main navigational 

channel will be kept clear for safe 

passage of vessels in the vicinity of the 

safety zone. At no time will the entire 

main navigational channel be closed to 

vessel traffic. Vessels should avoid 

meetings in these areas where one side 

of the main navigational channel is 

open and proceed per this rule and the 

Rules of the Road (33 CFR subchapter 

E). 

(2) Safety zone two includes all the 

waters of Anchorage 7 off Marcus Hook 

Range, as described in 33 CFR 

110.157(a)(8). Vessels wishing to anchor 

in Anchorage 7 off Marcus Hook Range 

must obtain permission from the COTP 

at least 24 hours in advance by calling 

(215) 271–4807. The COTP will permit 

only one vessel to anchor at a time on 

a ‘‘first-come, first-served’’ basis. 

Vessels will only be allowed to anchor 

for a 12 hour period. Vessels that 

require an examination by the Public 

Health Service, Customs, or Immigration 

authorities will be directed to an 

anchorage by the COTP for the required 

inspection. Vessels are encouraged to 

use Anchorage 9 near the entrance to 

Mantua Creek, Anchorage 10 at Naval 

Base, Philadelphia, and Anchorage 6 off 

Deepwater Point Range as alternative 

anchorages. 

Entry into, transiting, or anchoring 

within safety zone one is prohibited 

unless vessels obtain permission from 

the COTP or make satisfactory passing 

arrangements with the operating dredge 

per this rule and the Rules of the Road 

(33 CFR subchapter E). Though the 

dredge ESSEX is the primary dredge to 

be used in these operations, the COTP 

may update the information and the 

dredge being utilized with these 

dredging operations via Marine Safety 

Information Bulletin and Broadcast 

Notice to Mariners. 

The COTP will activate and terminate 

the safety zones individually once all 

submerged pipeline has been recovered 

and dredging operations are completed 

in each respective range. Notice of the 

activation and the termination of the 

safety zones will be made in accordance 

with 33 CFR 165.7. 

V. Regulatory Analyses 

We developed this rule after 

considering numerous statutes and 

executive orders related to rulemaking. 

Below we summarize our analyses 

based on a number of these statutes and 

Executive orders, and we discuss First 

Amendment rights of protestors. 

A. Regulatory Planning and Review 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits. 

Executive Order 13771 directs agencies 

to control regulatory costs through a 

budgeting process. This rule has not 

been designated a ‘‘significant 

regulatory action,’’ under Executive 

Order 12866. Accordingly, it has not 

been reviewed by the Office of 

Management and Budget (OMB), and 

pursuant to OMB guidance it is exempt 

from the requirements of Executive 

Order 13771. 

This regulatory action determination 

is based on the size, location, and 

duration of the safety zones. Although 

this regulation will restrict access to 

regulated areas, the effect of this rule 

will not be significant because there are 

a number of alternate anchorages 

available for vessels to anchor. 

Furthermore, vessels may transit 

through the safety zone with the 

permission of the COTP or make 

satisfactory passing arrangements with 

the dredge ESSEX or other dredges that 

may be used in accordance with this 

rule and the Rules of the Road (33 CFR 

subchapter E). Notification of the safety 

zones to the maritime public will be 

made via maritime advisories allowing 

mariners to alter their plans 

accordingly. 

B. Impact on Small Entities 

The Regulatory Flexibility Act of 

1980, 5 U.S.C. 601–612, as amended, 

requires Federal agencies to consider 

the potential impact of regulations on 

small entities during rulemaking. The 

term ‘‘small entities’’ comprises small 

businesses, not-for-profit organizations 

that are independently owned and 

operated and are not dominant in their 

fields, and governmental jurisdictions 

with populations of less than 50,000. 

The Coast Guard certifies under 5 U.S.C. 

605(b) that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

While some owners or operators of 

vessels intending to transit the safety 

zones may be small entities, for the 

reasons stated in section V.A above, this 

rule will not have a significant 

economic impact on any vessel owner 

or operator. 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (Pub. L. 104–121), 

we want to assist small entities in 

understanding this rule. If the rule 

would affect your small business, 

organization, or governmental 

jurisdiction and you have questions 

concerning its provisions or options for 

compliance, please contact the person 

listed in the FOR FURTHER INFORMATION

CONTACT section. 

Small businesses may send comments 

on the actions of Federal employees 

who enforce, or otherwise determine 

compliance with, Federal regulations to 

the Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and the Regional Small Business 

Regulatory Fairness Boards. The 

Ombudsman evaluates these actions 

annually and rates each agency’s 

responsiveness to small business. If you 

wish to comment on actions by 

employees of the Coast Guard, call 

1–888–REG–FAIR (1–888–734–3247). 

The Coast Guard will not retaliate 

against small entities that question or 

complain about this rule or any policy 

or action of the Coast Guard. 

C. Collection of Information 

This rule will not call for a new 

collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520). 

D. Federalism and Indian Tribal 

Governments 

A rule has implications for federalism 

under Executive Order 13132, 

Federalism, if it has a substantial direct 

effect on the States, on the relationship 

between the national government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government. We have 

analyzed this rule under that Order and 

have determined that it is consistent 

with the fundamental federalism 

principles and preemption requirements 

described in Executive Order 13132. 

Also, this rule does not have tribal 

implications under Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments, 

because it does not have a substantial 

direct effect on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. If you 

believe this rule has implications for 

federalism or Indian tribes, please 

contact the person listed in the FOR

FURTHER INFORMATION CONTACT section 

above. 

E. Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 


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Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 535 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 (adjusted for inflation) or 

more in any one year. Though this rule 

will not result in such an expenditure, 

we do discuss the effects of this rule 

elsewhere in this preamble. 

F. Environment 

We have analyzed this rule under 

Department of Homeland Security 

Management Directive 023–01 and 

Commandant Instruction M16475.lD, 

which guide the Coast Guard in 

complying with the National 

Environmental Policy Act of 1969 (42 

U.S.C. 4321–4370f), and have 

determined that it is one of a category 

of actions that do not individually or 

cumulatively have a significant effect on 

the human environment. This rule 

involves a safety zone that will close 

only one side of the main navigational 

channel and vessels can request 

permission to enter the channel. It is 

categorically excluded from further 

review under paragraph L60(a) of 

Appendix A, Table 1 of DHS Instruction 

Manual 023–01–001–01, Rev. 01. A 

Record of Environmental Consideration 

(REC) supporting this determination is 

available in the docket where indicated 

under ADDRESSES. 

G. Protest Activities 

The Coast Guard respects the First 

Amendment rights of protesters. 

Protesters are asked to contact the 

person listed in the FOR FURTHER

INFORMATION CONTACT section to 

coordinate protest activities so that your 

message can be received without 

jeopardizing the safety or security of 

people, places or vessels. 

VI. Public Participation and Request for 

Comments 

We view public participation as 

essential to effective rulemaking, and 

will consider all comments and material 

received during the comment period. 

Your comment can help shape this 

rulemaking. If you submit a comment, 

please include the docket number for 

this rulemaking, indicate the specific 

section of this document to which each 

comment applies, and provide a reason 

for each suggestion or recommendation. 

We encourage you to submit 

comments through the Federal 

eRulemaking Portal at http://

www.regulations.gov. If your material 

cannot be submitted using http://

www.regulations.gov, contact the person 

in the FOR FURTHER INFORMATION

CONTACT section of this document for 

alternate instructions. 

We accept anonymous comments. All 

comments received will be posted 

without change to http://

www.regulations.gov and will include 

any personal information you have 

provided. For more about privacy and 

the docket, visit http://

www.regulations.gov/privacyNotice. 

Documents mentioned in this TIR as 

being available in the docket, and all 

public comments, will be in our online 

docket at http://www.regulations.gov 

and can be viewed by following that 

website’s instructions. Additionally, if 

you go to the online docket and sign up 

for email alerts, you will be notified 

when comments are posted. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine safety, Navigation 

(water), Reporting and recordkeeping 

requirements, Security measures, 

Waterways. 

For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

■ 1. The authority citation for part 165 

continues to read as follows: 

Authority: 33 U.S.C. 1231; 50 U.S.C. 191; 

33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; 

Department of Homeland Security Delegation 

No. 0170.1. 

■ 2. Add § 165.T05–1063 to read as 

follows: 

§ 165.T05–1063 Safety Zones, Delaware 

River; Maintenance Dredging. 

(a) Location. The following areas are 

safety zones: 

(1) Safety zone one includes all waters 

within 250 yards of the dredge 

displaying lights and shapes for vessels 

restricted in ability to maneuver as 

described in 33 CFR 83.27, as well as all 

related dredge equipment, while the 

dredge is operating in New Castle 

Range, Marcus Hook Range, and 

Deepwater Point Range. For 

enforcement purposes, New Castle 

Range, Marcus Hook Range, and 

Deepwater Point Range include all 

navigable waters of the Delaware River 

shoreline to shoreline, bound by a line 

drawn perpendicular to the center line 

of the channel at the farthest upriver 

point of the range to a line drawn 

perpendicular to the center line of the 

channel at the farthest downriver point 

of the range. 

(2) Safety zone two includes all the 

waters of Anchorage 7 off Marcus Hook 

Range, as described in 33 CFR 

110.157(a)(8), which is depicted on U.S. 

Nautical Chart 12312. 

(b) Definitions. As used in this 

section, designated representative 

means a Coast Guard Patrol 

Commander, including a Coast Guard 

petty officer, warrant or commissioned 

officer on board a Coast Guard vessel or 

on board a Federal, State, or local law 

enforcement vessel assisting the Captain 

of the Port, Delaware Bay in the 

enforcement of the safety zone. 

(c) Regulations. (1) Entry into or 

transiting within safety zone one in 

paragraph (a)(1) of this section is 

prohibited unless vessels obtain 

permission from the Captain of the Port 

via VHF–FM channel 16 or 215–271– 

4807, or make satisfactory passing 

arrangements via VHF–FM channel 13 

or 16 with the operating dredge per this 

section and the rules of the road (33 

CFR subchapter E). Vessels requesting to 

transit shall contact the operating 

dredge via VHF–FM channel 13 or 16 at 

least 1 hour prior to arrival. 

(2) Vessels granted permission to 

enter and transit safety zone one in 

paragraph (a)(1) of this section must do 

so in accordance with any directions or 

orders of the Captain of the Port, his 

designated representative, or the dredge. 

No person or vessel may enter or remain 

in a safety zone without permission 

from the Captain of the Port or the 

dredge. 

(3) All vessels transiting safety zone 

one in paragraph (a)(1) of this section 

must operate at the minimum safe speed 

necessary to maintain steerage and 

reduce wake. 

(4) Vessels desiring to anchor in safety 

zone two in paragraph (a)(2) of this 

section, Anchorage 7 off Marcus Hook 

Range, must obtain permission from the 

COTP at least 24 hours in advance by 

calling (215) 271–4807. The COTP will 

permit one vessel at a time to anchor on 

a ‘‘first-come, first-served’’ basis. 

Vessels will only be allowed to anchor 

for a 12 hour period. Vessels that 

require an examination by the Public 

Health Service, Customs, or Immigration 

authorities will be directed to an 

anchorage for the required inspection by 

the COTP. 

(5) This section applies to all vessels 

except those engaged in the following 

operations: Enforcement of laws, service 

of aids to navigation, and emergency 

response. 

(d) Enforcement. The U.S. Coast 

Guard may be assisted in the patrol and 

enforcement of the safety zones by 

Federal, State, and local agencies. 

(e) Enforcement period. These zones 

will be enforced 24 hours a day while 

operations are being conducted from 

January 15, 2019 through May 31, 2019 

unless cancelled earlier by the COTP. 


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536 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 

Dated: January 14, 2019. 

Scott E. Anderson, 

Captain, U.S. Coast Guard, Captain of the 

Port, Delaware Bay. 

[FR Doc. 2019–00075 Filed 1–30–19; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Parts 36 and 42 

RIN 2900–AQ55 

Federal Civil Penalties Inflation 

Adjustment Act Amendments 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is providing public notice 

of inflationary adjustments to the 

maximum civil monetary penalties 

assessed or enforced by VA, as 

implemented by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015, for calendar 

year 2019. VA may impose civil 

monetary penalties for false loan 

guaranty certifications. Also, VA may 

impose civil monetary penalties for 

fraudulent claims or written statements 

made in connection with VA programs 

generally. The Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended by the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015, sets forth a formula that 

increases the maximum statutory 

amounts for civil monetary penalties 

and directs VA to give public notice of 

the new maximum amounts by 

regulation. Accordingly, VA is 

providing notice of the calendar year 

2019 inflationary adjustments that 

increase maximum civil monetary 

penalties from $22,363 to $22,927 for 

false loan guaranty certifications and 

from $11,181 to $11,463 for fraudulent 

claims or written statements made in 

connection with VA programs generally. 

DATES: Effective Date: This rule is 

effective January 31, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Michael Shores, Director, Office of 

Regulation Policy and Management 

(00REG), Department of Veterans 

Affairs, 810 Vermont Avenue NW, 

Washington, DC 20420, (202) 461–4921. 

(This is not a toll-free number.) 

SUPPLEMENTARY INFORMATION: On 

November 2, 2015, the President signed 

into law the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (2015 Act) (Pub. L. 114–74, 

sec. 701, 129 Stat. 599), which amended 

the Federal Civil Penalties Inflation 

Adjustment Act of 1990 (Pub. L. 101– 

410, 104 Stat. 890), to improve the 

effectiveness of civil monetary penalties 

and to maintain their deterrent effect. 

The 2015 Act was codified in a note 

following 28 U.S.C. 2461. The 2015 Act 

requires agencies to publish annual 

adjustments for inflation, based on the 

percent change between the Consumer 

Price Index for All Urban Consumers 

(CPI–U) for the month of October 

preceding the date of the adjustment 

and the prior year’s October CPI–U. 28 

U.S.C. 2461 note, secs. 4(a) and (b) and 

5(b)(1). This rule implements the 2019 

calendar year inflation adjustment 

amounts. 

Under 38 U.S.C. 3710(g)(4)(B), VA is 

authorized to levy civil monetary 

penalties against private lenders that 

originate VA-guaranteed loans if a 

lender falsely certifies that they have 

complied with certain credit 

information and loan processing 

standards, as set forth by chapter 37, 

title 38 U.S.C. and part 36, title 38 CFR. 

Under section 3710(g)(4)(B), any lender 

who knowingly and willfully makes 

such a false certification shall be liable 

to the United States Government for a 

civil penalty equal to two times the 

amount of the Secretary’s loss on the 

loan involved or to another appropriate 

amount, not to exceed $10,000, 

whichever is greater. VA implemented 

the penalty amount in 38 CFR 

36.4340(k)(1)(i) and (k)(3). On December 

14, 2018, OMB issued Circular M–19– 

04. This circular reflects that the 

October 2017 CPI–U was 246.663 and 

the October 2018 CPI–U was 252.885, 

resulting in an inflation adjustment 

multiplier of 1.02522. Accordingly, the 

calendar year 2019 inflation revision 

imposes an adjustment from $22,363 to 

$22,927. 

Under 31 U.S.C. 3802, VA can impose 

monetary penalties against any person 

who makes, presents, or submits a claim 

or written statement to VA that the 

person knows or has reason to know is 

false, fictitious, or fraudulent, or who 

engages in other covered conduct. The 

statute permits, in addition to any other 

remedy that may be prescribed by law, 

a civil penalty of not more than $5,000 

for each claim. 31 U.S.C. 3802(a)(1) and 

(2). VA implemented the penalty 

amount in 38 CFR 42.3(a)(1) and (b)(1). 

As previously noted, Circular M–19–04 

reflects an inflation adjustment 

multiplier of 1.02522. Therefore, the 

calendar year 2019 inflation revision 

imposes an adjustment from $11,181 to 

$11,463. 

Accordingly, VA is revising 38 CFR 

36.4340(k)(1)(i) and (3) and 38 CFR 

42.3(a)(1)(iv) and (b)(1)(ii) to reflect the 

2019 inflationary adjustments for civil 

monetary penalties assessed or enforced 

by VA. 

Administrative Procedure Act 

The Secretary of Veterans Affairs 

finds that there is good cause under 5 

U.S.C. 553(b)(B) and (d)(3) to dispense 

with the opportunity for prior notice 

and public comment and to publish this 

rule with an immediate effective date. 

The 2015 Act requires agencies to make 

annual adjustments for inflation to the 

allowed amounts of civil monetary 

penalties ‘‘notwithstanding section 553 

of title 5, United States Code.’’ 28 U.S.C. 

2461 note, sec. 4(a) and (b). The penalty 

adjustments, and the methodology used 

to determine the adjustments, are set by 

the terms of the 2015 Act. VA has no 

discretion to make changes in those 

areas. Therefore, an opportunity for 

prior notice and public comment and a 

delayed effective date is unnecessary. 

Executive Orders 12866, 13563, and 

13771 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

12866 (Regulatory Planning and 

Review) defines a ‘‘significant 

regulatory action’’ requiring review by 

OMB, unless OMB waives such review, 

as any regulatory action that is likely to 

result in a rule that may: (1) Have an 

annual effect on the economy of $100 

million or more or adversely affect in a 

material way the economy, a sector of 

the economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) Create 

a serious inconsistency or otherwise 

interfere with an action taken or 

planned by another agency; (3) 

Materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) Raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

The economic, interagency, 

budgetary, legal, and policy 

implications of this regulatory action 


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