1674 Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Rules and Regulations 

USPS MARKETING MAIL 

ECR Letters—Barcoded 

saturation price—(including Plus 

One) high density or high density plus 

price—(including Plus One) 

* * * * * 

600 Basic Standards for All Mailing 

Services 

* * * * * 

602 Addressing 

* * * * * 

[Add new section 11.0 to 602; to read 

as follows:] 

11.0 Commercial Plus One Mailpieces 

11.1 General 

11.1.1 Definition 

The commercial mail Plus One 

product is a bundled offering consisting 

of a host mailpiece and a Plus One card. 

Both the host mailpiece and the Plus 

One card must meet the applicable basic 

standards of a USPS Marketing mail 

saturation letter in 245.6.0, be entered at 

a destination sectional center facility 

(DSCF), and meet automation standards 

with a correct mailing address and 

intelligent mail barcode, (IMb). The Plus 

One mailpiece (card) must meet the 

following additional standards: 

• Have at least a six-month 

relationship with the host mailer. 

• Be addressed to the same delivery 

points as the host mailpiece. 

• Be sorted and presented separately 

from the host piece. 

• Must not exceed 6 inches long by 

9.5 inches high. 

• Must be at least 0.009 inches thick, 

card stock. 

• Must have ‘‘Plus One’’ marking 

directly below Permit indicia. 

11.1.2 Mail Preparation 

Each Plus One mailing must be trayed 

and labeled according to 245.6.7. 

Palletized mailings must be prepared 

according to 705.8.10.3. 

11.1.3 Documentation 

When requested by USPS, Plus One 

mailpiece mailers must provide 

standardized documentation according 

to 203.3.0, to establish that the 

applicable distribution standards are 

met. Spoilage of host pieces may affect 

eligibility to mail Plus One pieces in the 

following manner: 

a. File must show that at least 90% of 

host pieces are saturation mail, the 

remainder may be high density or high 

density plus. 

b. The total number of Plus One 

pieces must be less than or equal to the 

number of host pieces. 

11.1.4 Extra Services 

Items mailed with Plus One 

mailpieces may not be combined with 

any extra service. 

* * * * * 

Notice 123 (Price List) 

[Revise prices as applicable.] 

* * * * * 

Ruth B. Stevenson, 

Chief Counsel, Ethics and Legal Compliance. 

[FR Doc. 2022–00396 Filed 1–7–22; 11:15 am] 

BILLING CODE P 

POSTAL SERVICE 

39 CFR Parts 233 and 273 

Inspection Service Authority; Civil 

Monetary Penalty Inflation Adjustment 

AGENCY: Postal ServiceTM. 

ACTION: Interim final rule. 

SUMMARY: This document updates postal 

regulations by implementing inflation 

adjustments to civil monetary penalties 

that may be imposed under consumer 

protection and mailability provisions 

enforced by the Postal Service pursuant 

to the Deceptive Mail Prevention and 

Enforcement Act and the Postal 

Accountability and Enhancement Act, 

as well as the civil monetary penalty 

that may be imposed by the Postal 

Service for false claims and statements 

under the Program Fraud Civil 

Remedies Act. These adjustments are 

required under the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015. This 

document includes the adjustments for 

2022 for the statutory civil monetary 

penalties subject to the 2015 Act and all 

necessary updates authorized by the 

2015 Act for regulatory civil monetary 

penalties. 

DATES: Effective January 12, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Louis DiRienzo, (202) 268–3028, 

ljdirienzo@uspis.gov. 

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (2015 Act), Public Law 114–74, 

129 Stat. 584, amended the Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (1990 Act), Public Law 101–410, 

104 Stat. 890 (28 U.S.C. 2461 note), to 

improve the effectiveness of civil 

monetary penalties and to maintain 

their deterrent effect. Section 3 of the 

1990 Act specifically includes the Postal 

Service in the definition of ‘‘agency’’ 

subject to its provisions. 

Beginning in 2017, the 2015 Act 

requires the Postal Service to make an 

annual adjustment for inflation to civil 

penalties that meet the definition of 

‘‘civil monetary penalty’’ under the 

1990 Act. The Postal Service must make 

the annual adjustment for inflation and 

publish the adjustment in the Federal 

Register by January 15 of each year. The 

Postal Service has not completed the 

annual adjustments for the civil 

monetary penalty that may be imposed 

under the Program Fraud Civil 

Remedies Act. In order to satisfy the 

annual adjustment requirement, the 

Postal Service is making all annual 

adjustments at this time. Each penalty 

will be adjusted as instructed by the 

Office of Management and Budget 

(OMB) based on the Consumer Price 

Index (CPI–U) from the most recent 

October. OMB has furnished detailed 

instructions regarding the annual 

adjustment for 2022 in memorandum 

M–22–07, Implementation of Penalty 

Inflation Adjustments for 2022, 

Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (December 15, 2021), 

https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf. 

This year, OMB has advised that an 

adjustment multiplier of 1.06222 will be 

used. The new penalty amount must be 

rounded to the nearest dollar. 

The 2015 Act allows the interim final 

rule and annual inflation adjustments to 

be published without prior public 

notice or opportunity for public 

comment. 

Adjustments to Postal Service Civil 

Monetary Penalties 

Civil monetary penalties may be 

assessed for postal offenses under 

sections 106 and 108 of the Deceptive 

Mail Prevention and Enforcement Act, 

Public Law 106–168, 113 Stat. 1811, 

1814 (see, 39 U.S.C. 3012(a), (c)(1), (d), 

and 3017 (g)(2), (h)(1)(A)); and section 

1008 of the Postal Accountability and 

Enhancement Act, Public Law 109–435, 

120 Stat. 3259–3261 (see, 39 U.S.C. 3018 

(c)(1)(A)). The statutory civil monetary 

penalties subject to the 2015 Act and the 

amount of each penalty after 

implementation of the annual 

adjustment for inflation are as follows: 

39 U.S.C. 3012(a)—False 

Representations and Lottery Orders 

Under 39 U.S.C. 3005(a)(1)–(3), the 

Postal Service may issue administrative 

orders prohibiting persons from using 

the mail to obtain money through false 

representations or lotteries. Persons who 

evade, attempt to evade, or fail to 

comply with an order to stop such 

prohibited practices may be liable to the 


lotter on DSK11XQN23PROD with RULES1
Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Rules and Regulations 1675 

United States for a civil penalty under 

39 U.S.C. 3012(a). The regulations 

implemented pursuant to this section 

currently impose a $74,825 penalty for 

each mailing less than 50,000 pieces, 

$149,647 for each mailing of 50,000 to 

100,000 pieces, and $14,966 for each 

additional 10,000 pieces above 100,000 

not to exceed $2,992,956. The new 

penalties will be as follows: A $79,481 

penalty for each mailing less than 

50,000 pieces, $158,958 for each mailing 

of 50,000 to 100,000 pieces, and $15,897 

for each additional 10,000 pieces above 

100,000 not to exceed $3,179,178. 

39 U.S.C. 3012(c)(1)—False 

Representation and Lottery Penalties in 

Lieu of or as Part of an Order 

In lieu of or as part of an order issued 

under 39 U.S.C. 3005(a)(1)–(3), the 

Postal Service may assess a civil 

penalty. Currently, the amount of this 

penalty, set in the implementing 

regulations to 39 U.S.C. 3012(c)(1), is 

$37,412 for each mailing that is less 

than 50,000 pieces, $74,825 for each 

mailing of 50,000 to 100,000 pieces, and 

an additional $7,482 for each additional 

10,000 pieces above 100,000 not to 

exceed $1,496,478. The new penalties 

will be $39,740 for each mailing that is 

less than 50,000 pieces, $79,481 for each 

mailing of 50,000 to 100,000 pieces, and 

an additional $7,948 for each additional 

10,000 pieces above 100,000 not to 

exceed $1,589,589. 

39 U.S.C. 3012(d)—Misleading 

References to the United States 

Government; Sweepstakes and 

Deceptive Mailings 

Persons may be liable to the United 

States for a civil penalty under 39 U.S.C. 

3012(d) for sending certain deceptive 

mail matter described in 39 U.S.C. 

3001((h)–(k), including: 

• Solicitations making false claims of 

Federal Government connection or 

approval; 

• Certain solicitations for the 

purchase of a product or service that 

may be obtained without cost from the 

Federal Government; 

• Solicitations containing improperly 

prepared ‘‘facsimile checks’’; and 

• Certain solicitations for ‘‘skill 

contests’’ and ‘‘sweepstakes’’ sent to 

individuals who, in accordance with 39 

U.S.C. 3017(d), have requested that such 

materials not be mailed to them. 

Currently, under the implementing 

regulations, this penalty is not to exceed 

$14,966 for each mailing. The new 

penalty will be $15,897. 

39 U.S.C. 3017(g)(2)—Commercial Use 

of Lists of Persons Electing Not To 

Receive Skill Contest or Sweepstakes 

Mailings 

Under 39 U.S.C. 3017(g)(2), the Postal 

Service may impose a civil penalty 

against a person who provides 

information for commercial use about 

individuals who, in accordance with 39 

U.S.C. 3017(d), have elected not to 

receive certain sweepstakes and contest 

information. Currently, this civil 

penalty may not exceed $2,992,956 per 

violation, pursuant to the implementing 

regulations. The new penalty may not 

exceed $3,179,178 per violation. 

39 U.S.C. 3017(h)(1)(A)—Reckless 

Mailing of Skill Contest or Sweepstakes 

Matter 

Currently, under 39 U.S.C. 

3017(h)(1)(A) and its implementing 

regulations, any promoter who 

recklessly mails nonmailable skill 

contest or sweepstakes matter may be 

liable to the United States in the amount 

of $14,966 per violation for each mailing 

to an individual. The new penalty is 

$15,897 per violation. 

39 U.S.C. 3018(c)(1)(A)—Hazardous 

Material 

Under 39 U.S.C. 3018(c)(1)(A), the 

Postal Service may impose a civil 

penalty payable into the Treasury of the 

United States on a person who 

knowingly mails nonmailable hazardous 

materials or fails to follow postal laws 

on mailing hazardous materials. 

Currently, this civil penalty is at least 

$324, but not more than $129,032 for 

each violation, pursuant to the 

implementing regulations. The new 

penalty is at least $344, but not more 

than $137,060 for each violation. 

Adjustments to Regulatory Postal 

Service Civil Monetary Penalties 

In October 1986, Congress enacted the 

Program Fraud Civil Remedies Act, 31 

U.S.C. 3801–3812. The Program Fraud 

Civil Remedies Act established an 

administrative remedy against any 

person who makes, or causes to be 

made, a false claim or written statement 

to certain Federal agencies. The Act 

requires each covered agency to 

promulgate rules and regulations 

necessary to implement its provisions. 

The Postal Service’s implementing 

regulations are found in part 273 of title 

39, Code of Federal Regulations. The 

Program Fraud Civil Remedies Act 

established a maximum penalty of 

$5,000 for each violation. The Federal 

Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015, 28 U.S.C. 

2461 note, required all Federal agencies 

to (1) adjust the penalty amount to 2016 

inflation levels with an initial ‘‘catchup’’ inflation adjustment; and (2) make 

subsequent annual adjustments for 

inflation. This rule incorporates the 

initial ‘‘catch-up’’ adjustment to 2016 

inflation levels and the annual 

adjustments for 2017 through 2022, and 

applies those adjustments cumulatively 

to the civil monetary penalties that the 

Program Fraud Civil Remedies Act 

imposes. The adjustment factors are as 

follows: 2016—2.15628; 2017—1.01636; 

2018—1.02041; 2019—1.02522; 2020— 

1.01764; 2021—1.01182; 2022—1.06222. 

After applying all adjustments, the 

new penalty amount is $12,537. 

List of Subjects 

39 CFR Part 233 

Administrative practice and 

procedure, Banks, Banking, Credit, 

Crime, Infants and children, Law 

enforcement, Penalties, Privacy, 

Seizures and forfeitures. 

39 CFR Part 273 

Administrative practice and 

procedure, Claims, Fraud, Penalties. 

For the reasons set out in the 

preamble, the Postal Service amends 39 

CFR parts 233 and 273 as follows: 

PART 233—INSPECTION SERVICE 

AUTHORITY 

■ 1. The authority citation for part 233 

continues to read as follows: 

Authority: 39 U.S.C. 101, 102, 202, 204, 

401, 402, 403, 404, 406, 410, 411, 1003, 

3005(e)(1), 3012, 3017, 3018; 12 U.S.C. 3401– 

3422; 18 U.S.C. 981, 983, 1956, 1957, 2254, 

3061; 21 U.S.C. 881; Pub. L. 101–410, 104 

Stat. 890 (28 U.S.C. 2461 note); Pub. L. 104– 

208, 110 Stat. 3009; Secs. 106 and 108, Pub. 

L. 106–168, 113 Stat. 1806 (39 U.S.C. 3012, 

3017); Pub. L. 114–74, 129 Stat. 584. 

§ 233.12 [Amended] 

■ 2. In § 233.12: 

■ a. In paragraph (a), remove ‘‘$74,825’’ 

and add in its place ‘‘$79,481’’, remove 

‘‘$149,647’’ and add in its place 

‘‘$158,958’’, remove ‘‘$14,966’’ and add 

in its place ‘‘$15,897’’, and remove 

‘‘$2,992,956’’ and add in its place 

‘‘$3,179,178’’. 

■ b. In paragraph (b), remove ‘‘$37,412’’ 

and add in its place ‘‘$39,740’’, remove 

‘‘$74,825’’ and add in its place 

‘‘$79,481’’, remove ‘‘$7,482’’ and add in 

its place ‘‘$7,948’’, and remove 

‘‘$1,496,478’’ and add in its place 

‘‘$1,589,589’’. 

■ c. In paragraph (c)(4), remove 

‘‘$14,966’’ and add in its place 

‘‘$15,897’’. 

■ d. In paragraph (d), remove 

‘‘$2,992,956’’ and add in its place 

‘‘$3,179,178’’. 


lotter on DSK11XQN23PROD with RULES1
1676 Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Rules and Regulations 

1The Federal Civil Penalties Inflation Adjustment 

Act of 1990, Public Law 101–410, 28 U.S.C. 2461 

note, defines ‘‘civil monetary penalty’’ as any 

penalty, fine, or other sanction that—(1)(i) is for a 

specific monetary amount as provided by Federal 

law; or (ii) has a maximum amount provided for by 

Federal law; and (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. 

2The Federal Civil Penalties Inflation Adjustment 

Act Improvements Act of 2015 (Section 701 of Pub. 

L.114–74) was signed into law on November 2, 

2015, and further amended the Federal Civil 

Penalties Inflation Adjustment Act of 1990. 

3Under Section 3(2)(A) of the 2015 Act, ‘‘civil 

monetary penalty’’ means ‘‘a specific monetary 

amount as provided by Federal law’’; or ‘‘has a 

maximum amount provided for by Federal law.’’ 

EPA-administered statutes generally refer to 

statutory maximum penalties, with the following 

exceptions: Section 311(b)(7)(D) of the Clean Water 

Act, 33 U.S.C. 1321(b)(7)(D), refers to a minimum 

penalty of ‘‘not less than $100,000 . . .’’; Section 

104B(d)(1) of the Marine Protection, Research, and 

Sanctuaries Act, 33 U.S.C. 1414b(d)(1), refers to an 

exact penalty of $600 ‘‘[f]or each dry ton (or 

equivalent) of sewage sludge or industrial waste 

dumped or transported by the person in violation 

of this subsection in calendar year 1992 . . .’’; and 

Section 325(d)(1) of the Emergency Planning and 

Community Right-to-Know Act, 42 U.S.C. 

11045(d)(1), refers to an exact civil penalty of 

$25,000 for each frivolous trade secret claim. 

4Current and historical CPI–U’s can be found on 

the Bureau of Labor Statistics’ website here: https:// 

www.bls.gov/cpi/tables/supplemental-files/ 

historical-cpi-u-202110.pdf. 

■ e. In paragraph (e), remove ‘‘$14,966’’ 

and add in its place ‘‘$15,897’’. 

■ f. In paragraph (f), remove ‘‘$324’’ and 

add in its place ‘‘$344’’ and remove 

‘‘$129,032’’ and add in its place 

‘‘$137,060’’. 

PART 273—ADMINISTRATION OF 

PROGRAM FRAUD CIVIL REMEDIES 

ACT 

■ 3. The authority citation for part 273 

continues to read as follows: 

Authority: 31 U.S.C. Chapter 38; 39 U.S.C. 

401. 

■ 4. In § 273.3, in paragraph (a)(1)(iv), 

add a sentence to the end of the 

paragraph to read as follows: 

§ 273.3 Liability for false claims and 

statements. 

* * * * * 

(a) * * * 

(1) * * * 

(iv) * * * As adjusted under Public 

Law 114–74, the penalty is $12,537 per 

claim. 

* * * * * 

Joshua Hofer, 

Attorney, Ethics & Legal Compliance. 

[FR Doc. 2022–00373 Filed 1–11–22; 8:45 am] 

BILLING CODE 7710–12–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 19 

[FRL–5906.6–01–OECA] 

Civil Monetary Penalty Inflation 

Adjustment 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is promulgating this final 

rule to adjust the level of the maximum 

(and minimum) statutory civil monetary 

penalty amounts under the statutes the 

EPA administers. This action is 

mandated by the Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended through the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 (‘‘the 2015 

Act’’). The 2015 Act prescribes a 

formula for annually adjusting the 

statutory maximum (and minimum) 

amount of civil monetary penalties to 

reflect inflation, maintain the deterrent 

effect of statutory civil monetary 

penalties, and promote compliance with 

the law. The rule does not establish 

specific civil monetary penalty amounts 

the EPA may seek in particular cases, as 

appropriate given the facts of particular 

cases and applicable agency penalty 

policies. The EPA’s civil penalty 

policies, which guide enforcement 

personnel on how to exercise the EPA’s 

discretion within statutory penalty 

authorities, take into account a number 

of fact-specific considerations, e.g., the 

seriousness of the violation, the 

violator’s good faith efforts to comply, 

any economic benefit gained by the 

violator as a result of its noncompliance, 

and a violator’s ability to pay. 

DATES: This final rule is effective 

January 12, 2022. 

FOR FURTHER INFORMATION CONTACT: 

David Smith-Watts, Office of Civil 

Enforcement, Office of Enforcement and 

Compliance Assurance, Mail Code 

2241A, Environmental Protection 

Agency, 1200 Pennsylvania Avenue 

NW, Washington, DC 20460, telephone 

number: (202) 564–4083; smithwatts.david@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Since 1996, Federal agencies have 

been required to issue regulations 

adjusting for inflation the statutory civil 

monetary penalties 1 that can be 

imposed under the laws administered 

by that agency. The Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended by the Debt 

Collection Improvement Act of 1996 

(DCIA), required agencies to review 

their statutory civil monetary penalties 

every four years, and to adjust the 

statutory civil monetary penalty 

amounts for inflation if the increase met 

the DCIA’s adjustment methodology. In 

accordance with the DCIA, the EPA 

reviewed and, as appropriate, adjusted 

the civil monetary penalty levels under 

each of the statutes the agency 

implements in 1996 (61 FR 69360), 2004 

(69 FR 7121), 2008 (73 FR 75340), and 

2013 (78 FR 66643). 

The 2015 Act 2 required each Federal 

agency to adjust the level of statutory 

civil monetary penalties under the laws 

implemented by that agency with an 

initial ‘‘catch-up’’ adjustment through 

an interim final rulemaking. The 2015 

Act also required Federal agencies, 

beginning on January 15, 2017, to make 

subsequent annual adjustments for 

inflation. Section 4 of the 2015 Act 

requires each Federal agency to publish 

these adjustments by January 15 of each 

year. The purpose of the 2015 Act is to 

maintain the deterrent effect of civil 

monetary penalties by translating 

originally enacted statutory civil penalty 

amounts to today’s dollars and rounding 

statutory civil penalties to the nearest 

dollar. 

As required by the 2015 Act, the EPA 

issued a catch-up rule on July 1, 2016, 

which was effective August 1, 2016 (81 

FR 43091). The EPA has made five 

annual adjustments since then: On 

January 12, 2017, effective on January 

15, 2017 (82 FR 3633); on January 10, 

2018, effective on January 15, 2018 (83 

FR 1190); on February 6, 2019, effective 

February 6, 2019 (84 FR 2056), and 

issued a subsequent correction on 

February 25, 2019 (84 FR 5955); on 

January 13, 2020, effective the same day 

(85 FR 1751); and on December 23, 

2020, effective the same day (85 FR 

83818). This rule implements the sixth 

annual adjustment mandated by the 

2015 Act. 

The 2015 Act provides a formula for 

calculating the adjustments. Each 

statutory maximum and minimum 3

civil monetary penalty, as currently 

adjusted, is multiplied by the cost-ofliving adjustment multiplier, which is 

the percentage by which the Consumer 

Price Index for all Urban Consumers 

(CPI–U) for the month of October 2021 

exceeds the CPI–U for the month of 

October 2020.4

With this rule, the new statutory 

maximum and minimum penalty levels 

listed in the third column of Table 1 of 

40 CFR 19.4 will apply to all civil 

monetary penalties assessed on or after 

January 12, 2022, for violations that 

occurred after November 2, 2015, the 


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