2036 Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations 

1Public Law 114–74, Sec. 701, 129 Stat. 584, 599. 

2Public Law 101–410, 104 Stat. 890 (codified as 

amended at 28 U.S.C. 2461 note). 3 28 U.S.C. 2461 note, at (4). The Commission 

made its January 2021 adjustment on January 8, 

2021, in Docket No. RM21–8–000. See Civil 

Monetary Penalty Inflation Adjustments, Order No. 

875, 86 FR 8131 (Feb. 4, 2021), 174 FERC ¶ 61,015 

(2021). 

4 28 U.S.C. 2461 note at (3). 

5 16 U.S.C. 791a et seq. 

6 15 U.S.C. 717 et seq. 

7 15 U.S.C. 3301 et seq. 

8 49 App. U.S.C. 1 et seq. 

9 28 U.S.C. 2461 note at (5)(b)(1). 

10See, e.g., Memorandum from Shalanda D. 

Young, Office of Management and Budget, 

Implementation of the Penalty Inflation 

Adjustments for 2022, Pursuant to the Federal Civil 

Penalties Inflation Adjustment Act Improvements 

Act of 2015 (Dec. 15, 2021). 

11 28 U.S.C. 2461 note at (5)(a). 

12 Id. 

13 Id. at (6). 

14 Id. at (3)(b)(2). 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 250 and 385 

[Docket No. RM22–6–000; Order No. 882] 

Civil Monetary Penalty Inflation 

Adjustments 

AGENCY: Federal Energy Regulatory 

Commission, Department of Energy. 

ACTION: Final rule. 

SUMMARY: The Federal Energy 

Regulatory Commission (Commission) is 

issuing a final rule to amend its 

regulations governing the maximum 

civil monetary penalties assessable for 

violations of statutes, rules, and orders 

within the Commission’s jurisdiction. 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended 

most recently by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015, requires the 

Commission to issue this final rule. 

DATES: This final rule is effective 

January 13, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Todd Hettenbach, Attorney, Office of 

Enforcement, Federal Energy Regulatory 

Commission, 888 First Street NE, 

Washington, DC 20426. Phone: (202) 

502–8794, email: Todd.Hettenbach@

ferc.gov. 

SUPPLEMENTARY INFORMATION: 

1. In this final rule, the Federal 

Energy Regulatory Commission 

(Commission) is complying with its 

statutory obligation to amend the civil 

monetary penalties provided by law for 

matters within the agency’s jurisdiction. 

I. Background 

2. The Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (2015 Adjustment Act),1

which further amended the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990 (1990 Adjustment Act),2

required the head of each Federal 

agency to issue a rule by July 2016 

adjusting for inflation each ‘‘civil 

monetary penalty’’ provided by law 

within the agency’s jurisdiction and to 

make further inflation adjustments on 

an annual basis every January 15 

thereafter.3

II. Discussion 

3. The 2015 Adjustment Act defines a 

civil monetary penalty as any penalty, 

fine, or other sanction that: (A)(i) Is for 

a specific monetary amount as provided 

by Federal law; or (ii) has a maximum 

amount provided for by Federal law; (B) 

is assessed or enforced by an agency 

pursuant to Federal law; and (C) is 

assessed or enforced pursuant to an 

administrative proceeding or a civil 

action in the federal courts.4 This 

definition applies to the maximum civil 

penalties that may be imposed under 

the Federal Power Act (FPA),5 the 

Natural Gas Act (NGA),6 the Natural Gas 

Policy Act of 1978 (NGPA),7 and the 

Interstate Commerce Act (ICA).8

4. Under the 2015 Adjustment Act, 

the first step for such adjustment of a 

civil monetary penalty for inflation 

requires determining the percentage by 

which the U.S. Department of Labor’s 

Consumer Price Index for all-urban 

consumers (CPI–U) for October of the 

preceding year exceeds the CPI–U for 

October of the year before that.9 The 

CPI–U for October 2021 exceeded the 

CPI–U for October 2020 by 6.222%.10 5. 

The second step requires multiplying 

the CPI–U percentage increase by the 

applicable existing maximum civil 

monetary penalty.11 This step results in 

a base penalty increase amount. 

6. The third step requires rounding 

the base penalty increase amount to the 

nearest dollar and adding that amount 

to the base penalty to calculate the new 

adjusted maximum civil monetary 

penalty.12

7. Under the 2015 Adjustment Act, an 

agency is directed to use the maximum 

civil monetary penalty applicable at the 

time of assessment of a civil penalty, 

regardless of the date on which the 

violation occurred.13

8. The adjustments that the 

Commission is required to make 

pursuant to the 2015 Adjustment Act 

are reflected in the following table: 

Source Existing maximum civil 

monetary penalty 

New adjusted maximum civil 

monetary penalty 

16 U.S.C. 825o–1(b), Sec. 316A of the Federal Power Act ................... $1,307,164 per violation, per day .. $1,388,496 per violation, per day. 

16 U.S.C. 823b(c), Sec. 31(c) of the Federal Power Act ....................... $23,607 per violation, per day ....... $25,075 per violation, per day. 

16 U.S.C. 825n(a), Sec. 315(a) of the Federal Power Act ..................... $3,083 per violation ....................... $3,275 per violation. 

15 U.S.C. 717t–1, Sec. 22 of the Natural Gas Act ................................. $1,307,164 per violation, per day .. $1,388,496 per violation, per day. 

15 U.S.C. 3414(b)(6)(A)(i), Sec. 504(b)(6)(A)(i) of the Natural Gas Policy Act of 1978.$1,307,164 per violation, per day .. $1,388,496 per violation, per day. 

49 App. U.S.C. 6(10) (1988), Sec. 6(10) of the Interstate Commerce 

Act.

$1,368 per offense and $69 per 

day after the first day.

$1,453 per offense and $73 per 

day after the first day. 

49 App. U.S.C. 16(8) (1988), Sec. 16(8) of the Interstate Commerce 

Act.

$13,685 per violation, per day ....... $14,536 per violation, per day. 

49 App. U.S.C. 19a(k) (1988), Sec. 19a(k) of the Interstate Commerce 

Act.

$1,368 per offense, per day .......... $1,453 per offense, per day. 

49 App. U.S.C. 20(7)(a) (1988), Sec. 20(7)(a) of the Interstate Commerce Act.$1,368 per offense, per day .......... $1,453 per offense, per day. 

III. Administrative Findings 

9. Congress directed that agencies 

issue final rules to adjust their 

maximum civil monetary penalties 

notwithstanding the requirements of the 

Administrative Procedure Act (APA).14

Because the Commission is required by 

law to undertake these inflation 

adjustments notwithstanding the notice 

and comment requirements that 

otherwise would apply pursuant to the 


jspears on DSK121TN23PROD with RULES1
Federal Register / Vol. 87, No. 9 / Thursday, January 13, 2022 / Rules and Regulations 2037 

15 5 U.S.C. 601 et seq. 

16 5 U.S.C. 603, 604. 

17 44 U.S.C. 3507(d). 18 5 U.S.C. 553(d)(3). 

APA, and because the Commission lacks 

discretion with respect to the method 

and amount of the adjustments, prior 

notice and comment would be 

impractical, unnecessary, and contrary 

to the public interest. 

IV. Regulatory Flexibility Statement 

10. The Regulatory Flexibility Act, as 

amended, requires agencies to certify 

that rules promulgated under their 

authority will not have a significant 

economic impact on a substantial 

number of small businesses.15 The 

requirements of the Regulatory 

Flexibility Act apply only to rules 

promulgated following notice and 

comment.16 The requirements of the 

Regulatory Flexibility Act do not apply 

to this rulemaking because the 

Commission is issuing this final rule 

without notice and comment. 

V. Paperwork Reduction Act 

11. This rule does not require the 

collection of information. The 

Commission is therefore not required to 

submit this rule for review to the Office 

of Management and Budget pursuant to 

the Paperwork Reduction Act of 1995.17

VI. Document Availability 

12. In addition to publishing the full 

text of this document in the Federal 

Register, the Commission provides all 

interested persons an opportunity to 

view and print the contents of this 

document via the internet through the 

Commission’s Home Page (http://

www.ferc.gov). At this time, the 

Commission has suspended access to 

the Commission’s Public Reference 

Room due to the President’s March 13, 

2020 proclamation declaring a National 

Emergency concerning the Novel 

Coronavirus Disease (COVID–19). 

13. From the Commission’s Home 

Page on the internet, this information is 

available on eLibrary. The full text of 

this document is available on eLibrary 

in PDF and Microsoft Word format for 

viewing, printing, and downloading. To 

access this document in eLibrary, type 

the docket number (excluding the last 

three digits) in the docket number field. 

14. User assistance is available for 

eLibrary and the Commission’s website 

during normal business hours from the 

Commission’s Online Support at (202) 

502–6652 (toll free at 1–866–208–3676) 

or email at ferconlinesupport@ferc.gov, 

or the Public Reference Room at (202) 

502–8371, TTY (202) 502–8659, 

public.referenceroom@ferc.gov. 

VII. Effective Date and Congressional 

Notification 

15. For the same reasons the 

Commission has determined that public 

notice and comment are unnecessary, 

impractical, and contrary to the public 

interest, the Commission finds good 

cause to adopt an effective date that is 

less than 30 days after the date of 

publication in the Federal Register 

pursuant to the APA,18 and therefore, 

the regulation is effective upon 

publication in the Federal Register. 

16. The Commission has determined, 

with the concurrence of the 

Administrator of the Office of 

Information and Regulatory Affairs of 

the Office of Management and Budget, 

that this rule is not a ‘‘major rule’’ as 

defined in section 351 of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996. This final rule is 

being submitted to the Senate, House, 

and Government Accountability Office. 

List of Subjects 

18 CFR Part 250 

Natural gas, Reporting and 

recordkeeping requirements. 

18 CFR Part 385 

Administrative practice and 

procedure, Electric power, Penalties, 

Pipelines, Reporting and recordkeeping 

requirements. 

By the Commission. 

Issued: January 7, 2022. 

Debbie-Anne A. Reese, 

Deputy Secretary. 

In consideration of the foregoing, the 

Commission amends parts 250 and 385, 

chapter I, title 18, Code of Federal 

Regulations as follows: 

PART 250—FORMS 

■ 1. The authority citation for part 250 

continues to read as follows: 

Authority: 15 U.S.C. 717–717w, 3301– 

3432; 42 U.S.C. 7101–7352; 28 U.S.C. 2461 

note. 

■ 2. Revise § 250.16(e)(1) to read as 

follows: 

§ 250.16 Format of compliance plan for 

transportation services and affiliate 

transactions. 

* * * * * 

(e) * * * 

(1) Any person who transports gas for 

others pursuant to subpart B or G of part 

284 of this chapter and who knowingly 

violates the requirements of §§ 358.4 

and 358.5 of this chapter, this section, 

or § 284.13 of this chapter will be 

subject, pursuant to sections 311(c), 501, 

and 504(b)(6) of the Natural Gas Policy 

Act of 1978, to a civil penalty, which 

the Commission may assess, of not more 

than $1,388,496 for any one violation. 

* * * * * 

PART 385—RULES OF PRACTICE AND 

PROCEDURE 

■ 3. The authority citation for part 385 

continues to read as follows: 

Authority: 5 U.S.C. 551–557; 15 U.S.C. 

717–717w, 3301–3432; 16 U.S.C. 791a–825v, 

2601–2645; 28 U.S.C. 2461; 31 U.S.C 3701, 

9701; 42 U.S.C. 7101–7352, 16441, 16451– 

16463; 49 U.S.C. 60502; 49 App. U.S.C. 1–85 

(1988); 28 U.S.C. 2461 note (1990); 28 U.S.C. 

2461 note (2015). 

■ 4. Revise § 385.1504(a) to read as 

follows: 

§ 385.1504 Maximum civil penalty (Rule 

1504). 

(a) Except as provided in paragraph 

(b) of this section, the Commission may 

assess a civil penalty of up to $25,075 

for each day that the violation 

continues. 

* * * * * 

■ 5. Revise § 385.1602 to read as 

follows: 

§ 385.1602 Civil penalties, as adjusted 

(Rule 1602). 

The current inflation-adjusted civil 

monetary penalties provided by law 

within the jurisdiction of the 

Commission are: 

(a) 15 U.S.C. 3414(b)(6)(A)(i), Natural 

Gas Policy Act of 1978: $1,388,496. 

(b) 16 U.S.C. 823b(c), Federal Power 

Act: $25,075 per day. 

(c) 16 U.S.C. 825n(a), Federal Power 

Act: $3,275. 

(d) 16 U.S.C. 825o–1(b), Federal 

Power Act: $1,388,496 per day. 

(e) 15 U.S.C. 717t–1, Natural Gas Act: 

$1,388,496 per day. 

(f) 49 App. U.S.C. 6(10) (1988), 

Interstate Commerce Act: $1,453 per 

offense and $73 per day after the first 

day. 

(g) 49 App. U.S.C. 16(8) (1988), 

Interstate Commerce Act: $14,536 per 

day. 

(h) 49 App. U.S.C. 19a(k) (1988), 

Interstate Commerce Act: $1,453 per 

day. 

(i) 49 App. U.S.C. 20(7)(a) (1988), 

Interstate Commerce Act: $1,453 per 

day. 

[FR Doc. 2022–00616 Filed 1–12–22; 8:45 am] 

BILLING CODE 6717–01–P 


jspears on DSK121TN23PROD with RULES1