79978 Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Rules and Regulations 

serves the producer’s renewable fuel 

facility. 

(iii) The process heat produced from 

combustion of gas at a renewable fuel 

facility described in paragraph (f)(12)(i) 

of this section shall not be considered 

derived from biomass if any other party 

relied upon the contracted volume of 

biogas for the creation of RINs. 

* * * * * 

6. Section 80.1451 is amended by 

revising paragraph (b)(1)(ii)(M) to read 

as follows: 

§ 80.1451 What are the reporting 

requirements under the RFS program? 

* * * * * 

(b) * * * 

(1) * * * 

(ii) * * * 

(M) The type of co-products produced 

with each batch. 

* * * * * 

■ 7. Section 80.1452 is amended as 

follows: 

■ a. By revising paragraphs (b) 

introductory text, (b)(1), (b)(2), (b)(4), 

(b)(5), (b)(6), (b)(9), (b)(13), and (b)(15). 

■ b. By revising paragraphs (c) 

introductory text, (c)(4), (c)(5), and 

(c)(7). 

§ 80.1452 What are the requirements 

related to the EPA Moderated Transaction 

System (EMTS)? 

* * * * * 

(b) Starting July 1, 2010, each time a 

domestic or foreign producer or 

importer of renewable fuel assigns RINs 

to a batch of renewable fuel pursuant to 

§ 80.1426(e), all the following 

information must be submitted to EPA 

via the submitting party’s EMTS 

account within five (5) business days of 

the date of RIN assignment. 

(1) The name of the renewable fuel 

producer or importer. 

(2) The EPA company registration 

number of the renewable fuel or foreign 

ethanol producer, as applicable. 

* * * * * 

(4) The EPA facility registration 

number of the renewable fuel or foreign 

ethanol producer, as applicable. 

(5) The importer’s EPA facility 

registration number if applicable. 

(6) The D code of RINs generated for 

the batch. 

* * * * * 

(9) The fuel type of the batch. 

* * * * * 

(13) The type and quantity of 

feedstock(s) used for the batch. 

* * * * * 

(15) The type and quantity of coproducts produced with the batch of 

renewable fuel. 

* * * * * 

(c) Starting July 1, 2010, each time 

any party sells, separates, or retires RINs 

generated on or after July 1, 2010, all the 

following information must be 

submitted to EPA via the submitting 

party’s EMTS account within five (5) 

business days of the reportable event. 

Starting July 1, 2010, each time any 

party purchases RINs generated on or 

after July 1, 2010, all the following 

information must be submitted to EPA 

via the submitting party’s EMTS 

account within ten (10) business days of 

the reportable event. The reportable 

event for a RIN purchase or sale occurs 

on the date of transfer per 

§ 80.1453(a)(4). The reportable event for 

a RIN separation or retirement occurs on 

the date of separation or retirement as 

described in § 80.1429. 

* * * * * 

(4) The RIN status (Assigned or 

Separated). 

(5) The D code of the RINs. 

* * * * * 

(7) The date of transfer per 

§ 80.1453(a)(4), if applicable. 

* * * * * 

■ 8. Section 80.1454 is amended by 

revising paragraph (b)(3)(xi) and adding 

a new paragraph (b)(3)(xii). 

§ 80.1454 What are the recordkeeping 

requirements under the RFS program? 

* * * * * 

(b) * * * 

(3) * * * 

(xi) For RINs generated for ethanol 

produced from corn starch at a facility 

using a pathway in Table 1 to § 80.1426 

that requires the use of one or more of 

the advanced technologies listed in 

Table 2 to § 80.1426, documentation to 

demonstrate that employment of the 

required advanced technology or 

technologies was conducted in 

accordance with the specifications in 

Tables 1 and 2 to § 80.1426, including 

any requirement for application to 90% 

of the production on a calendar year 

basis. 

(xii) All commercial documents and 

additional information related to details 

of RIN generation. 

* * * * * 

■ 9. Section 80.1464 is amended by 

revising paragraph (b)(1)(iii) to read as 

follows: 

§ 80.1464 What are the attest engagement 

requirements under the RFS program? 

* * * * * 

(b) * * * 

(1) * * * 

(iii) Verify that the proper number of 

RINs were generated and assigned 

pursuant to the requirements of 

§ 80.1426 for each batch of renewable 

fuel produced or imported. For RINs 

generated for ethanol produced from 

corn starch at a facility using a pathway 

in Table 1 to § 80.1426 that requires the 

use of one or more of the advanced 

technologies listed in Table 2 to 

§ 80.1426, verify that the required 

advanced technology or technologies 

were employed in accordance with the 

specifications in Tables 1 and 2 to 

§ 80.1426, including any requirement 

for application to 90% of the production 

on a calendar year basis. 

* * * * * 

[FR Doc. 2010–31910 Filed 12–20–10; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF TRANSPORTATION 

National Highway Traffic Safety 

Administration 

49 CFR Part 578 

[Docket No. NHTSA–2010–0114; Notice 2] 

RIN 2127–AK78 

Civil Penalties 

AGENCY: National Highway Traffic 

Safety Administration (NHTSA), DOT. 

ACTION: Final Rule. 

SUMMARY: This document increases the 

maximum civil penalty amounts for 

related series of violations of the 

National Traffic and Motor Vehicle 

Safety Act, as amended (Vehicle Safety 

Act) and increases the liability for a 

violation of odometer disclosure or 

other odometer requirements with 

intent to defraud. This action is taken 

pursuant to the Federal Civil Monetary 

Penalty Inflation Adjustment Act of 

1990, as amended by the Debt 

Collection Improvement Act of 1996, 

which requires NHTSA to review and, 

as warranted, adjust penalties based on 

inflation at least every four years. 

DATES: This final rule is effective 

January 20, 2011. 

ADDRESSES: Petitions for reconsideration 

should refer to the docket number and 

be submitted to: Administrator, National 

Highway Traffic Safety Administration, 

1200 New Jersey Avenue, SE., West 

Building, Fourth Floor, Washington, DC 

20590, with a copy to the DOT docket. 

Copies to the docket may be submitted 

electronically [identified by DOT Docket 

ID Number NHTSA–2010–0114] by 

visiting the following Web site: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

online instructions for submitting 

comments. 

Privacy Act: Anyone is able to search 

the electronic form of all comments 


jlentini on DSKJ8SOYB1PROD with RULES
Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Rules and Regulations 79979 

1 Individuals interested in deriving the CPI 

figures used by the agency may visit the Department 

of Labor’s Consumer Price Index Home Page at 

http://www.bls.gov/cpi/home.htm. Scroll down to 

‘‘Most Requested Statistics’’ and select the ‘‘All 

Urban Consumers (Current Series)’’ option, select 

the ‘‘U.S. ALL ITEMS 1967=100—CUUR0000AA0’’ 

box, and click on the ‘‘Retrieve Data’’ button. 

received into any of our dockets by the 

name of the individual submitting the 

comment (or signing the comment, if 

submitted on behalf of an association, 

business, labor union, etc.). You may 

review DOT’s complete Privacy Act 

Statement in the Federal Register 

published on April 11, 2000 (65 FR 

19477, 19477–78). 

FOR FURTHER INFORMATION CONTACT: 

Jessica Lang, Office of Chief Counsel, 

NHTSA, telephone (202) 366–5902, 

facsimile (202) 366–3820, 1200 New 

Jersey Avenue, SE., Washington, DC 

20590. 

SUPPLEMENTARY INFORMATION: 

Background 

In order to preserve the remedial 

impact of civil penalties and to foster 

compliance with the law, the Federal 

Civil Monetary Penalty Inflation 

Adjustment Act of 1990 (28 U.S.C. 2461, 

Notes, Pub. L. 101–410), as amended by 

the Debt Collection Improvement Act of 

1996 (Pub. L. 104–134) (referred to 

collectively as the ‘‘Adjustment Act’’ or, 

in context, the ‘‘Act’’), requires us and 

other Federal agencies to adjust civil 

penalties for inflation. Under the 

Adjustment Act, following an initial 

adjustment that was capped by the Act, 

these agencies must make further 

adjustments, as warranted, to the 

amounts of penalties in statutes they 

administer at least once every four 

years. 

NHTSA’s initial adjustment of civil 

penalties under the Adjustment Act was 

published on February 4, 1997. 62 FR 

5167. At that time, we codified the 

penalties under statutes administered by 

NHTSA, as adjusted, in 49 CFR Part 

578, Civil Penalties. Since that time, we 

have adjusted available penalties on a 

number of occasions. See 75 FR 49879, 

49880 (Aug. 16, 2010) 

On August 16, 2010, the Agency 

published a Notice of Proposed 

Rulemaking (NPRM) entitled ‘‘Civil 

Penalties’’ which proposed the 

adjustment for inflation of civil 

penalties for related series of violations 

of the Vehicle Safety Act and the 

liability for a violation of the odometer 

law with intent to defraud. 75 FR 49879. 

The Agency received no comments to 

this NPRM. 

Under the Adjustment Act, we now 

adjust the civil penalties available for 

related series of violations of the 

Vehicle Safety Act and an amount for a 

violation of odometer disclosure or 

other odometer requirements with 

intent to defraud. 

Method of Calculation—Adjustments 

Under the Adjustment Act, we first 

calculate the inflation adjustment for 

each applicable civil penalty by 

arithmetically increasing the maximum 

civil penalty amount per violation by a 

cost-of-living adjustment. Section 5(b) of 

the Adjustment Act defines the ‘‘cost-ofliving’’ adjustment as: 

The percentage (if any) for each civil 

monetary penalty by which— 

(1) The Consumer Price Index for the 

month of June of the calendar year 

preceding the adjustment exceeds 

(2) The Consumer Price Index for the 

month of June of the calendar year in 

which the amount of such civil 

monetary penalty was last set or 

adjusted pursuant to law. 

Because the adjustment is intended to 

be effective before December 31, 2010, 

the ‘‘Consumer Price Index [CPI] for the 

month of June of the calendar year 

preceding the adjustment’’ is the CPI for 

June 2009. This figure, based on the 

Adjustment Act’s requirement of using 

the CPI ‘‘for all-urban consumers 

published by the Department of Labor,’’ 

is 646.1.1

NHTSA now adjusts the maximum 

penalty for a related series of violations 

of the Vehicle Safety Act, in general, as 

well as those for violations of 49 U.S.C. 

30166 or a regulation thereunder. See 49 

U.S.C. 30165(a)(1) and (a)(3). These 

amounts were last adjusted in 2006 (CPI 

= 607.8). 71 FR 28279, 28281—82. 

Accordingly, the factor that we use to 

calculate these increases is 1.06 (646.1/ 

607.8). 

NHTSA also now adjusts the 

odometer law’s maximum penalty for 

intent to defraud. See 49 U.S.C. 

32709(d), 32710(a). This amount was 

last adjusted in 1999 (CPI = 497.9). 64 

FR 37876, 37878. Accordingly, the 

factor that we use to calculate this 

increase is 1.30 (646.1/497.9). 

Using these inflation factors, increases 

above the current maximum penalty 

levels are calculated and are then 

subject to a specific rounding formula 

set forth in Section 5(a) of the 

Adjustment Act. 28 U.S.C. 2461, Notes. 

Under that formula: 

Any increase shall be rounded to the 

nearest 

(1) Multiple of $10 in the case of 

penalties less than or equal to $100; 

(2) Multiple of $100 in the case of 

penalties greater than $100 but less than 

or equal to $1,000; 

(3) Multiple of $1,000 in the case of 

penalties greater than $1,000 but less 

than or equal to $10,000; 

(4) Multiple of $5,000 in the case of 

penalties greater than $10,000 but less 

than or equal to $100,000; 

(5) Multiple of $10,000 in the case of 

penalties greater than $100,000 but less 

than or equal to $200,000; and 

(6) Multiple of $25,000 in the case of 

penalties greater than $200,000. 

Amendments to Maximum Penalties 

Maximum Penalty (a Related Series of 

Violations) Under the Motor Vehicle 

Safety Act in General (49 CFR 

578.6(a)(1)) and Section 30166 (49 CFR 

578.6(a)(3)) 

The maximum civil penalty for a 

related series of violations under the 

Vehicle Safety Act or a regulation issued 

thereunder is $16,375,000 as specified 

in 49 CFR 578.6(a)(1). The underlying 

statutory provision is 49 U.S.C. 

30165(a)(1). The maximum civil penalty 

for a related series of violations of 49 

U.S.C. 30166 or a regulation issued 

thereunder is $16,375,000 as specified 

in 49 CFR 578.6(a)(3). The underlying 

statutory provision is 49 U.S.C. 

30165(a)(3). 

Applying the appropriate inflation 

factor (1.06) raises each of the 

$16,375,000 penalties to $17,357,500, an 

increase of $982,500. Under the 

rounding formula, any increase in a 

penalty’s amount shall be rounded to 

the nearest $25,000 in the case of 

penalties greater than $200,000. 

Accordingly, today we amend Section 

578.6(a)(1) and Section 578.6(a)(3) of 

Title 49 Code of Federal Regulations to 

increase the maximum civil penalty for 

a related series of violations from 

$16,375,000 to $17,350,000. 

Amount for Violation With Intent To 

Defraud Under the Odometer Standards 

Provision, 49 U.S.C. Chapter 327 (49 

CFR § 578.6(f)(2)) 

The liability for a violation of the 

odometer statute, 49 U.S.C. Chapter 327, 

or a regulation or order, with intent to 

defraud is three times the actual 

damages or $2,000, whichever is greater, 

as specified in 49 CFR 578.6(f)(2). The 

underlying statutory provisions are 49 

U.S.C. 32709(d)(1) and 49 U.S.C. 

32710(a). Applying the appropriate 

inflation factor (1.30) raises the $2,000 

figure to $2,600, an increase of $600. 

Under the rounding formula, any 

increase in a penalty’s amount shall be 

rounded to the nearest multiple of 

$1,000 in the case of penalties greater 


jlentini on DSKJ8SOYB1PROD with RULES
79980 Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Rules and Regulations 

than $1,000, but less than or equal to 

$10,000. In this case, the increase would 

be $1,000. Accordingly, today we 

amend Section 578.6(f)(2) to increase 

the amount for a violation of the statute 

or a regulation prescribed or order 

issued thereunder with intent to defraud 

from three times the actual damages or 

$2,000, whichever is greater, to three 

times the actual damages or $3,000, 

whichever is greater. 

Rulemaking Analyses and Notices 

Executive Order 12866 and DOT 

Regulatory Policies and Procedures 

We have considered the impact of this 

rulemaking action under Executive 

Order 12866 and the Department of 

Transportation’s regulatory policies and 

procedures. This rulemaking document 

was not reviewed under Executive 

Order 12866, ‘‘Regulatory Planning and 

Review.’’ This action is limited to the 

adoption of adjustments of civil 

penalties under statutes that the agency 

enforces, and has been determined to be 

not ‘‘significant’’ under the Department 

of Transportation’s regulatory policies 

and procedures. 

Regulatory Flexibility Act 

We have also considered the impacts 

of this notice under the Regulatory 

Flexibility Act. I certify this final rule 

will not have a significant economic 

impact on a substantial number of small 

entities. The following provides the 

factual basis for this certification under 

5 U.S.C. 605(b). 

The Small Business Administration 

(SBA) regulations define a small 

business in part as a business entity 

‘‘which operates primarily within the 

United States.’’ 13 CFR 121.105(a). 

SBA’s size standards were previously 

organized according to Standard 

Industrial Classification (SIC) Codes. 

SIC Code 336211 ‘‘Motor Vehicle Body 

Manufacturing’’ applied a small 

business size standard of 1,000 

employees or fewer. SBA now uses size 

standards based on the North American 

Industry Classification System (NAICS), 

Subsector 336—Transportation 

Equipment Manufacturing, which 

provides a small business size standard 

of 1,000 employees or fewer for 

automobile manufacturing businesses. 

Other motor vehicle-related industries 

have lower size requirements that range 

between 500 and 750 employees. 

Many small businesses are subject to 

the penalty provisions of Title 49 U.S.C. 

Chapters 301 (motor vehicles, in general 

and Section 30166) and 327 (odometer 

requirements); therefore, small 

businesses may be affected by this final 

rule. Entities that are potentially 

affected vary by statute and may include 

manufacturers of motor vehicles and 

motor vehicle equipment, sellers of 

vehicles and equipment, repair shops 

and others. 

The adjustment to penalty amounts in 

49 U.S.C. 30165(a)(1), relating to motor 

vehicle safety, in general, and in 49 

U.S.C. 30165 (a)(3), relating to Section 

30166, potentially impacts numerous 

entities including manufacturers, sellers 

and importers of motor vehicles and 

motor vehicle equipment. We do not 

have data on how many other entities 

within the ambit of 49 U.S.C. 

30165(a)(1) and (a)(3) are small 

businesses, but the number is 

considerable. 

The adjustment to penalty amounts in 

Chapter 327 relating to odometer 

requirements potentially impacts a 

number of small businesses including 

repair businesses, used car dealers, 

businesses that are lessors of vehicles, 

auction houses, and entities making 

devices that could change an odometer’s 

mileage. Although we do not have 

information on how many of these 

entities are small businesses, we believe 

a large percentage are small businesses. 

As noted throughout this preamble, 

this final rule on civil penalties 

increases the maximum penalty 

amounts that the agency could obtain 

for certain violations of provisions 

related to motor vehicle safety in 

general and for 49 U.S.C. 30166 

violations, including regulations 

thereunder. This final rule does not set 

the amount of penalties for any 

particular series of violations under the 

Vehicle Safety Act. Under Vehicle 

Safety Act, the agency takes into 

account the size of a business when 

determining the appropriate penalty in 

an individual case. See 49 U.S.C. 

30165(c). 

Today’s penalty adjustments would 

not affect our civil penalty policy under 

the Small Business Regulatory 

Enforcement Fairness Act (SBREFA). 

See 62 FR 37115 (July 10, 1997). As a 

matter of policy, we intend to continue 

to consider the appropriateness of the 

penalty amount to the size of the 

business charged. In these matters, there 

would not be a significant economic 

impact on small businesses. 

The amount in civil actions by state 

attorneys general and private persons 

for violations of the odometer statute or 

a regulation prescribed or order issued 

under that statute is set by statute. It 

requires intent to defraud, and is three 

times actual damages or, as set today, 

$3,000, whichever is greater. The statute 

also provides for costs and attorneys 

fees. 49 U.S.C. 32710. Thus, the $3,000 

figure is but one aspect of costs that a 

violator may face. The vast majority of 

civil actions settle. 

Small organizations and governmental 

jurisdictions would not be significantly 

affected as the price of motor vehicles 

and equipment ought not to change as 

the result of this final rule. As explained 

above, this action is limited to the 

adoption of a statutory directive, and 

has been determined to be not 

‘‘significant’’ under the Department of 

Transportation’s regulatory policies and 

procedures. 

Executive Order 13132 (Federalism) 

Executive Order 13132 requires 

NHTSA to develop an accountable 

process to ensure ‘‘meaningful and 

timely input by State and local officials 

in the development of regulatory 

policies that have federalism 

implications.’’ ‘‘Policies that have 

federalism implications’’ is defined in 

the Executive Order to include 

regulations that have ‘‘substantial direct 

effects 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.’’ Under 

Section 6 of Executive Order 13132, the 

agency may not issue a regulation with 

Federalism implications that imposes 

substantial direct compliance costs, and 

that is not required by statute, unless 

the Federal government provides the 

funds necessary to pay the direct 

compliance costs incurred by State and 

local governments, the agency consults 

with State and local governments, or the 

agency consults with State and local 

officials early in the process of 

developing the regulation. 

This final rule will not have 

substantial direct effects 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, as specified in 

Executive Order 13132. Thus, the 

requirements of Section 6 of the 

Executive Order do not apply. 

Unfunded Mandates Reform Act of 1995 

The Unfunded Mandates Reform Act 

of 1995, Public Law 104–4, requires 

agencies to prepare a written assessment 

of the cost, 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 more than $100 

million annually. Because this final rule 

will not have a $100 million effect, no 

Unfunded Mandates assessment will be 

prepared. 


jlentini on DSKJ8SOYB1PROD with RULES
Federal Register / Vol. 75, No. 244 / Tuesday, December 21, 2010 / Rules and Regulations 79981 

Executive Order 12778 (Civil Justice 

Reform) 

This final rule does not have a 

retroactive or preemptive effect. Judicial 

review of a rule based on this proposal 

may be obtained pursuant to 5 U.S.C. 

702. That section does not require that 

a petition for reconsideration be filed 

prior to seeking judicial review. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1980, we state that 

there are no requirements for 

information collection associated with 

this rulemaking action. 

List of Subjects in 49 CFR Part 578 

Motor vehicle safety, Penalties. 

■ In consideration of the foregoing, 49 

CFR part 578 is amended as set forth 

below. 

PART 578—CIVIL AND CRIMINAL 

PENALTIES 

■ 1. The authority citation for part 578 

continues to read as follows: 

Authority: Pub. L. 101–410, Pub. L. 104– 

134, 49 U.S.C. 30165, 30170, 30505, 32304A, 

32308, 32309, 32507, 32709, 32710, 32912, 

and 33115 as amended; delegation of 

authority at 49 CFR 1.50. 

■ 2. Section 578.6, paragraphs (a)(1), 

(a)(3) and (f)(2) are revised to read as 

follows: 

§ 578.6 Civil penalties for violations of 

specified provisions of Title 49 of the United 

States Code. 

(a) Motor vehicle safety—(1) In 

general. A person who violates any of 

sections 30112, 30115, 30117 through 

30122, 30123(a), 30125(c), 30127, or 

30141 through 30147 of Title 49 of the 

United States Code or a regulation 

prescribed under any of those sections 

is liable to the United States 

Government for a civil penalty of not 

more than $6,000 for each violation. A 

separate violation occurs for each motor 

vehicle or item of motor vehicle 

equipment and for each failure or 

refusal to allow or perform an act 

required by any of those sections. The 

maximum civil penalty under this 

paragraph for a related series of 

violations is $17,350,000. 

* * * * * 

(3) Section 30166. A person who 

violates section 30166 of Title 49 of the 

United States Code or a regulation 

prescribed under that section is liable to 

the United States Government for a civil 

penalty for failing or refusing to allow 

or perform an act required under that 

section or regulation. The maximum 

penalty under this paragraph is $6,000 

per violation per day. The maximum 

penalty under this paragraph for a 

related series of daily violations is 

$17,350,000. 

* * * * * 

(f) * * * 

(2) A person that violates 49 U.S.C. 

Chapter 327 or a regulation prescribed 

or order issued thereunder, with intent 

to defraud, is liable for three times the 

actual damages or $3,000, whichever is 

greater. 

* * * * * 

Issued on: December 15, 2010. 

David L. Strickland, 

Administrator. 

[FR Doc. 2010–32008 Filed 12–20–10; 8:45 am] 

BILLING CODE 4910–59–P 


jlentini on DSKJ8SOYB1PROD with RULES