[Federal Register Volume 89, Number 9 (Friday, January 12, 2024)]
[Rules and Regulations]
[Pages 2174-2176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00592]


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SURFACE TRANSPORTATION BOARD

49 CFR Part 1022

[Docket No. EP 716 (Sub-No. 9)]


Civil Monetary Penalties--2024 Adjustment

AGENCY: Surface Transportation Board.

ACTION: Final rule.

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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 12, 2024.

FOR FURTHER INFORMATION CONTACT: Amy Ziehm at (202) 245-0391. 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, 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 appears 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 appears at 49 U.S.C. 
16101-16106.\1\ The Board has regulations at 49 CFR pt. 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.
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    \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.
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    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 1.03241, which reflects the percentage change 
between the October 2023 CPI-U (307.671) and the October 2022 CPI-U 
(298.012). 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 2023, and the adjusted 
statutory civil penalty level for 2024.

[[Page 2175]]

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.

List of Subjects in 49 CFR Part 1022

    Administrative practice and procedures, Brokers, Civil penalties, 
Freight forwarders, Motor carriers, Pipeline carriers, Rail carriers, 
Water carriers.

    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 9, 2024.
    By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and 
Schultz. Board Member Primus concurred with a separate expression.

BOARD MEMBER PRIMUS, concurring:
    When the Board adjusted its civil monetary penalties last year, I 
wrote separately to express concern about the adequacy of the penalties 
afforded by statute. Civ. Monetary Penalties--2023 Adjustment, EP 716 
(Sub-No. 8) (STB served Jan. 13, 2023), slip op. at 3-4 (Member Primus 
concurring). That 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 $9,413 to $9,718. For the reasons I stated last year, those 
penalties are unlikely to provide the deterrent effect intended by 
Congress, and Congress should address this inadequacy.

Kenyatta Clay,
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)
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                                                                               2023-- Penalty   2024-- Adjusted
                                                     Civil monetary penalty        amount        penalty amount
                U.S. Code citation                        description        -----------------------------------
                                                                              EP 716_8 (2023)   EP 716_9 (2024)
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                                                  Rail Carrier
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49 U.S.C. 11901(a)...............................  Unless otherwise                    $9,413             $9,718
                                                    specified, maximum
                                                    penalty for each knowing
                                                    violation under this
                                                    part, and for each day.
49 U.S.C. 11901(b)...............................  For each violation under               942                973
                                                    Sec.   11124(a)(2) or
                                                    (b).
49 U.S.C. 11901(b)...............................  For each day violation                  48                 50
                                                    continues.
49 U.S.C. 11901(c)...............................  Maximum penalty for each             9,413              9,718
                                                    knowing violation under
                                                    Sec.  Sec.   10901-10906.
49 U.S.C. 11901(d)...............................  For each violation under           187-942            193-973
                                                    Sec.  Sec.   11123 or
                                                    11124(a)(1).
49 U.S.C. 11901(d)...............................  For each day violation                  94                 97
                                                    continues.
49 U.S.C. 11901(e)(1), (4).......................  For each violation under               942                973
                                                    Sec.  Sec.   11141-
                                                    11145, for each day.
49 U.S.C. 11901(e)(2), (4).......................  For each violation under               187                193
                                                    Sec.   11144(b)(1), for
                                                    each day.
49 U.S.C. 11901(e)(3)-(4)........................  For each violation of                  187                193
                                                    reporting requirements,
                                                    for each day.
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                                             Motor and Water Carrier
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49 U.S.C. 14901(a)...............................  Minimum penalty for each             1,288              1,330
                                                    violation and for each
                                                    day.
49 U.S.C. 14901(a)...............................  For each violation under            12,883             13,301
                                                    Sec.  Sec.   13901 or
                                                    13902(c).
49 U.S.C. 14901(a)...............................  For each violation                  32,208             33,252
                                                    related to
                                                    transportation of
                                                    passengers.
49 U.S.C. 14901(b)...............................  For each violation of the    25,767-51,534      26,602-53,204
                                                    hazardous waste rules
                                                    under Sec.   3001 of the
                                                    Solid Waste Disposal Act.

[[Page 2176]]

 
49 U.S.C. 14901(d)(1)............................  Minimum penalty for each             1,881              1,942
                                                    violation of household
                                                    good regulations, and
                                                    for each day.
49 U.S.C. 14901(d)(2)............................  Minimum penalty for each            18,826             19,436
                                                    instance of
                                                    transportation of
                                                    household goods if
                                                    broker provides estimate
                                                    without carrier
                                                    agreement.
49 U.S.C. 14901(d)(3)............................  Minimum penalty for each            47,061             48,586
                                                    instance of
                                                    transportation of
                                                    household goods without
                                                    being registered.
49 U.S.C. 14901(e)...............................  Minimum penalty for each             3,765              3,887
                                                    violation of a
                                                    transportation rule.
49 U.S.C. 14901(e)...............................  Minimum penalty for each             9,413              9,718
                                                    additional violation.
49 U.S.C. 14903(a)...............................  Maximum penalty for                188,257            194,359
                                                    undercharge or
                                                    overcharge of tariff
                                                    rate, for each violation.
49 U.S.C. 14904(a)...............................  For first violation,                   376                388
                                                    rebates at less than the
                                                    rate in effect.
49 U.S.C. 14904(a)...............................  For all subsequent                     472                487
                                                    violations.
49 U.S.C. 14904(b)(1)............................  Maximum penalty for first              942                973
                                                    violation for
                                                    undercharges by freight
                                                    forwarders.
49 U.S.C. 14904(b)(1)............................  Maximum penalty for                  3,765              3,887
                                                    subsequent violations.
49 U.S.C. 14904(b)(2)............................  Maximum penalty for other              942                973
                                                    first violations under
                                                    Sec.   13702.
49 U.S.C. 14904(b)(2)............................  Maximum penalty for                  3,765              3,887
                                                    subsequent violations.
49 U.S.C. 14905(a)...............................  Maximum penalty for each            18,826             19,436
                                                    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            2,577              2,661
                                                    attempt to evade
                                                    regulation.
49 U.S.C. 14906..................................  Minimum amount for each              6,441              6,650
                                                    subsequent attempt to
                                                    evade regulation.
49 U.S.C. 14907..................................  Maximum penalty for                  9,413              9,718
                                                    recordkeeping/reporting
                                                    violations.
49 U.S.C. 14908(a)(2)............................  Maximum penalty for                  3,765              3,887
                                                    violation of Sec.
                                                    14908(a)(1).
49 U.S.C. 14910..................................  When another civil                     942                973
                                                    penalty is not specified
                                                    under this part, for
                                                    each violation, for each
                                                    day.
49 U.S.C. 14915(a)(1)-(2)........................  Minimum penalty for                 14,960             15,445
                                                    holding a household
                                                    goods shipment hostage,
                                                    for each day.
49 U.S.C. 14916(c)(1)............................  Maximum penalty for each            12,883             13,301
                                                    knowing violation under
                                                    Sec.   14916(a) for
                                                    unlawful brokerage
                                                    activities.
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                                                Pipeline Carrier
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49 U.S.C. 16101(a)...............................  Maximum penalty for                  9,413              9,718
                                                    violation of this part,
                                                    for each day.
49 U.S.C. 16101(b)(1), (4).......................  For each recordkeeping                 942                973
                                                    violation under Sec.
                                                    15722, each day.
49 U.S.C. 16101(b)(2), (4).......................  For each inspection                    187                193
                                                    violation liable under
                                                    Sec.   15722, each day.
49 U.S.C. 16101(b)(3)-(4)........................  For each reporting                     187                193
                                                    violation under Sec.
                                                    15723, each day.
49 U.S.C. 16103(a)...............................  Maximum penalty for                  1,881              1,942
                                                    improper disclosure of
                                                    information.
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[FR Doc. 2024-00592 Filed 1-11-24; 8:45 am]
BILLING CODE 4915-01-P