This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

8943 

Vol. 87, No. 33 

Thursday, February 17, 2022 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Parts 2 and 171 

[NRC–2014–0264] 

RIN 3150–AJ51 

Receipts-Based NRC Size Standards 

AGENCY: U.S. Nuclear Regulatory 

Commission. 

ACTION: Final rule. 

SUMMARY: The U.S. Nuclear Regulatory 

Commission (NRC) is amending its 

small business size standards, which are 

used to qualify an NRC licensee as a 

‘‘small entity’’ under the Regulatory 

Flexibility Act of 1980, as amended. The 

purpose of these size standards is for 

reducing annual NRC license fees for 

small entities. These standards do not 

apply to the NRC’s contracts for goods 

and services. The NRC is increasing the 

upper and lower tiers for its receiptsbased small entity size standards for 

small businesses and small not-forprofit organizations. This change allows 

NRC standards to remain consistent 

with the inflation adjustments made by 

the Small Business Administration size 

standard for nonmanufacturing 

concerns. In addition, in accordance 

with the Small Business Runway 

Extension Act of 2018, the NRC is 

changing the calculation of annual 

average receipts for the receipts-based 

NRC size standard for small businesses 

that provide a service or small 

businesses not engaged in 

manufacturing from a 3-year averaging 

period to a 5-year averaging period. 

DATES: This final rule is effective on 

March 21, 2022. 

ADDRESSES: Please refer to Docket ID 

NRC–2014–0264 when contacting the 

NRC about the availability of 

information for this action. You may 

obtain publicly-available information 

related to this action by any of the 

following methods: 

• Federal Rulemaking Website: Go to 

https://www.regulations.gov and search 

for Docket ID NRC–2014–0264. Address 

questions about NRC dockets to Dawn 

Forder; telephone: 301–415–3407; 

email: Dawn.Forder@nrc.gov. For 

technical questions, contact the 

individual listed in the FOR FURTHER

INFORMATION CONTACT section of this 

final rule. 

• NRC’s Agencywide Documents 

Access and Management System 

(ADAMS): You may obtain publiclyavailable documents online in the 

ADAMS Public Documents collection at 

https://www.nrc.gov/reading-rm/ 

adams.html. To begin the search, select 

‘‘Begin Web-based ADAMS Search.’’ For 

problems with ADAMS, please contact 

the NRC’s Public Document Room (PDR) 

reference staff at 1–800–397–4209, 301– 

415–4737, or by email to pdr.resource@

nrc.gov. The ADAMS accession number 

for each document referenced (if it is 

available in ADAMS) is provided the 

first time that it is mentioned in this 

document. For the convenience of the 

reader, instructions about obtaining 

materials referenced in this document 

are provided in the ‘‘Availability of 

Documents’’ section of this document. 

FOR FURTHER INFORMATION CONTACT: Jo 

Jacobs, Office of the Chief Financial 

Officer, telephone: 301–415–8388; 

email: Jo.Jacobs@nrc.gov; or Billy 

Blaney, Office of the Chief Financial 

Officer, telephone: 301–415–5092; 

email: William.Blaney@nrc.gov. Both are 

staff of the U.S. Nuclear Regulatory 

Commission, Washington, DC 20555– 

0001. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

II. Discussion 

III. Public Comments 

IV. Regulatory Flexibility Certification 

V. Regulatory Analysis 

VI. Backfitting and Issue Finality 

VII. Plain Writing 

VIII. National Environmental Policy Act 

IX. Paperwork Reduction Act Public 

Protection Notification 

X. Congressional Review Act 

XI. Voluntary Consensus Standards 

XII. Availability of Guidance 

XIII. Availability of Documents 

I. Background 

The NRC’s current size standards are 

provided under part 2 of title 10 of the 

Code of Federal Regulations (10 CFR), 

‘‘Agency Rules of Practice and 

Procedure,’’ in § 2.810, ‘‘NRC size 

standards.’’ These standards were 

established on December 9, 1985 (50 FR 

50241), when the NRC implemented the 

requirements of the Regulatory 

Flexibility Act of 1980, as amended 

(RFA). The RFA requires agencies to 

consider the impact of rulemaking on 

small entities and, consistent with 

applicable statutes, study alternatives to 

minimize these impacts on applicable 

businesses, organizations, and 

government jurisdictions. The NRC’s 

regulations in § 2.810 and 10 CFR part 

171, ‘‘Annual Fees for Reactor Licenses 

and Fuel Cycle Licenses and Materials 

Licenses, Including Holders of 

Certificates of Compliance, 

Registrations, and Quality Assurance 

Program Approvals and Government 

Agencies Licensed by the NRC,’’ contain 

the criteria, in § 171.16(a) and (c), 

‘‘Annual fees: Materials licensees, 

holders of certificates of compliance, 

holders of sealed source and device 

registrations, holders of quality 

assurance program approvals, and 

government agencies licensed by the 

NRC,’’ that certain licensees use to 

qualify as small entities for the purpose 

of reducing annual license fees. The 

NRC’s current size standards under 

§ 2.810 are based on the Small Business 

Administration’s (SBA) receipts-based 

size standards for small businesses and 

small not-for-profit organizations, 

employee-based size standards for 

business concerns that are 

manufacturing and for small 

educational institutions that are not 

State or publicly supported entities, and 

population-based size standards for 

small governmental jurisdictions. 

In establishing the fiscal year (FY) 

1991 fee rule, the NRC determined that 

the annual fees would have a significant 

impact on a substantial number of small 

materials licensees. As a result, the NRC 

established a small entity fee tier in 

§ 171.16(c), which resulted in a subsidy 

program whereby small entities would 

pay a reduced annual fee (56 FR 31507; 

July 10, 1991). In FY 1992, the NRC 

established a second tier in § 171.16(c) 

to benefit the licensees that were very 

small entities. Pursuant to § 171.16(c), if 

a licensee qualifies as a small entity and 

provides the Commission with the 

proper certification, the licensee may 

pay a reduced annual fee. As part of the 

certification process, a licensee that 


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8944 Federal Register / Vol. 87, No. 33 / Thursday, February 17, 2022 / Rules and Regulations 

meets the NRC’s size standards for a 

small entity must complete NRC Form 

526, ‘‘Certification of Small Entity 

Status for the Purposes of Annual Fees,’’ 

certifying that it meets the NRC’s size 

standards for a small entity. 

The last revisions to the receiptsbased size standards in §§ 2.810 and 

171.16(c) to adjust for inflation were 

published in the Federal Register on 

July 3, 2012 (77 FR 39385), and in the 

FY 2013 final fee rule published in the 

Federal Register on July 1, 2013 (78 FR 

39479), respectively. More recently, in 

FY 2020, the NRC surveyed its materials 

licensees to help determine whether to 

change the size standards in § 2.810 (85 

FR 6225; February 4, 2020). With the 

exception of inflation-related increases 

and adjusting the methodology for 

calculating average gross-receipts to be 

consistent with the Small Business 

Runway Extension Act of 2018 (Runway 

Act) and SBA regulations, the survey 

results did not suggest that the NRC 

should change its small entity size 

standards. 

The Runway Act amended section 

3(a)(2)(C)(ii)(II) of the Small Business 

Act (15 U.S.C. 632(a)(2)(C)(ii)(II)), to 

modify the requirements for the small 

business size standards prescribed by an 

agency without separate statutory 

authority to issue size standards. 

Subsequently, on December 5, 2019, the 

SBA published a final rule modifying its 

method for calculating average annual 

receipts used to prescribe size standards 

for small businesses (84 FR 66561). As 

a result of adjustments for inflation 

described more fully in the 

‘‘Discussion’’ section of this document, 

the NRC must revise its receipts-based 

size standards from a 3-year averaging 

period to a 5-year averaging period to 

comply with the Runway Act. 

In order to amend § 2.810, the NRC 

must follow the procedures of the Small 

Business Act, and SBA’s implementing 

regulations in 13 CFR 121.903, ‘‘How 

may an agency use size standards for its 

programs that are different than those 

established by SBA?’’ because the NRC 

does not have separate statutory 

authority to issue size standards. 

Accordingly, the NRC has sent this final 

rule to SBA for review and has received 

the approval of the SBA Administrator. 

II. Discussion 

The NRC is amending § 2.810 to 

increase the receipts-based small entity 

size standard from $7.0 million to $8.0 

million for small businesses and small, 

not-for-profit organizations. These 

amendments are to remain consistent 

with inflation adjustments made by the 

SBA to its size standard for 

nonmanufacturing concerns. Most 

recently, the SBA adjusted this standard 

for inflation on July 18, 2019 (84 FR 

34261). In addition, the NRC is also 

amending the average gross-receipts 

calculation process to change from a 3- 

year averaging period to a 5-year 

averaging period, as required by SBA 

regulations and in response to the 

Runway Act. 

Further, and analogous to the 

inflation adjustment in § 2.810, the NRC 

is amending § 171.16(c) to increase the 

upper-tier receipts-based small entity 

size standard from $7.0 million to $8.0 

million for small businesses and small, 

not-for-profit organizations. Likewise, 

the NRC is increasing the lower-tier 

receipts-based size standard from 

$485,000 to $555,000, based upon the 

percent change in the upper tier. 

III. Public Comments 

The NRC published a proposed rule 

on July 26, 2021 (86 FR 39980), and 

requested public comment on its 

proposed revisions to 10 CFR parts 2 

and 171. The comment period on the 

proposed rule closed on August 25, 

2021. The NRC did not receive any 

public comments on the proposed rule. 

IV. Regulatory Flexibility Certification 

Under the Regulatory Flexibility Act 

of 1980, as amended (RFA), the 

Commission certifies that this final rule, 

if adopted, will not have a significant 

economic impact on a substantial 

number of small entities. This final rule 

is administrative in that this final rule 

will revise the criteria in 10 CFR parts 

2 and 171 that the NRC uses to 

determine which of its licensees qualify 

as small entities for the purposes of 

compliance with the RFA. The 

amendments to the size standards 

conform to the SBA’s revised standard 

and is expected to result in an increase 

in the number of NRC licensees that 

qualify as small entities. 

V. Regulatory Analysis 

The RFA requires agencies to consider 

the impact of rulemaking on small 

entities and, consistent with applicable 

statutes, study alternatives to minimize 

the impacts on applicable businesses, 

organizations, and government 

jurisdictions. In previous rulemakings to 

amend its size standards, the NRC has 

adjusted the criteria that the NRC uses 

to determine which of its licensees 

qualify as small entities for the purposes 

of compliance with the RFA. 

For the NRC’s size standards, 

rulemaking is required to amend the 

methodology for calculating average 

gross-receipts and the upper and lower 

tier receipts-based size standards to 

reflect adjustments for inflation. The 

NRC has not revised the receipts-based 

size standards in §§ 2.810 and 171.16(c) 

since 2012 and 2013, respectively; 

therefore, this final rule includes 

adjustments for inflation. This final rule 

amends §§ 2.810 and 171.16(c) to 

increase the NRC’s upper-tier receiptsbased size standard from $7.0 million to 

$8.0 million for small businesses and 

small not-for-profit organizations, in 

order to remain consistent with the 

adjustments for inflation made to the 

SBA’s size standard for 

nonmanufacturing. In addition, this 

final rule amends § 171.16(c) to increase 

the lower-tier receipts-based size 

standard from $485,000 to $555,000, 

consistent with the percentage change 

in the upper-tier. Furthermore, for 

consistency with the Runway Act and 

SBA regulations, the NRC is amending 

its methodology for calculating the 

average gross-receipts from a 3-year 

averaging period to a 5-year averaging 

period. 

The NRC estimates that the final rule 

provides the following benefits and 

costs: 

Benefits 

• This action will result in continued 

compliance with the RFA, since the 

final rule will reduce the impact of 

annual fees on small entities by 

increasing the receipts-based size 

standards in § 2.810 and the tiers in 

§ 171.16(c) that licensees use to qualify 

as small entities. 

• While it is not certain how many 

licensees would qualify as small entities 

under the receipts-based size standards 

that are being adjusted, the staff 

estimates that 95 additional licensees (a 

12-percent increase) will potentially 

qualify as small entities and be eligible 

to pay a reduced annual fee. 

• The licensees can have increased 

regulatory confidence that the NRC has 

amended the agency’s receipts-based 

size standards to be consistent with the 

SBA’s practices, and, as stated in SECY– 

20–0111, ‘‘Rulemaking Plan to Amend 

the Receipts-Based NRC Size Standards 

(NRC–2014–0264),’’ (ADAMS Accession 

No. ML20268B327), that the NRC will 

review the current size standards and 

determine whether proposed 

amendments are needed every 5 years or 

sooner based on the SBA’s adjustments. 

Costs 

• The cost impact of changing the 

average gross-receipts from a 3-year 

averaging period to a 5-year averaging 

period is not known, as the average 

gross-receipts have been based on a 3- 

year averaging period since the NRC 

established its size standards in 1985. 

Every licensee will likely need to 


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Federal Register / Vol. 87, No. 33 / Thursday, February 17, 2022 / Rules and Regulations 8945 

expend some effort to evaluate its grossreceipts and may need to provide 

additional information if questions arise 

during the staff’s certification review. 

Modifying to a 5-year averaging period 

of gross-receipts may result in a negative 

impact in that some licensees that are 

close to the upper limit of their size 

standard could lose their small entity 

status, while others may newly qualify 

as small entities. Despite this cost, 

because the NRC is amending the 

receipts-based size standards to adjust 

for inflation, the NRC also is amending 

the average gross-receipts from a 3-year 

averaging period to a 5-year averaging 

period pursuant to the Runway Act. 

• The expected increase in additional 

licensees qualifying as small entities 

could possibly increase the NRC’s net 

budget authority as a result of additional 

licensees qualifying as small entities. 

The results of the regulatory analysis 

are cost-justified because the final rule 

would result in an estimated 95 

additional licensees (a 12-percent 

increase) who would qualify as small 

entities and be eligible to pay a reduced 

annual fee and the identified cost 

impacts are expected to be small and 

would not be passed onto other NRC’s 

applicants and licensees. The NRC did 

not identify any other alternatives to 

amend the receipts-based size standards 

under § 2.810, which are consistent with 

the adjustments made by the SBA. In 

addition, the NRC did not identify any 

alternatives to rulemaking to amend the 

upper and lower tiers under § 171.16(c) 

to reflect adjustments for inflation. 

VI. Backfitting and Issue Finality 

The NRC has determined that the 

backfit rule, §§ 50.109, 70.76, 72.62, and 

76.76 and the issue finality provisions 

in 10 CFR part 52 do not apply to this 

final rule and that an analysis is not 

required because these amendments do 

not require the modification of, or 

addition to, (1) systems, structures, 

components, or the design of a facility; 

(2) the design approval or 

manufacturing license for a facility; or 

(3) the procedures or organization 

required to design, construct, or operate 

a facility. 

VII. Plain Writing 

The Plain Writing Act of 2010 (Pub. 

L. 111–274) requires Federal agencies to 

write documents in a clear, concise, and 

well-organized manner. The NRC wrote 

this document to be consistent with the 

Plain Writing Act, as well as the 

Presidential Memorandum, ‘‘Plain 

Language in Government Writing,’’ 

published June 10, 1998 (63 FR 31885). 

VIII. National Environmental Policy 

Act 

The NRC has determined that this 

final rule is the type of action described 

in § 51.22(c)(1). Therefore, neither an 

environmental impact statement nor 

environmental assessment has been 

prepared for this final rule. 

IX. Paperwork Reduction Act 

This final rule does not contain a 

collection of information as defined in 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) and, therefore, 

is not subject to the requirements of the 

Act. 

Public Protection Notification 

The NRC may not conduct or sponsor, 

and a person is not required to respond 

to, a collection of information unless the 

document requesting or requiring the 

collection displays a currently valid 

OMB control number. 

X. Congressional Review Act 

This final rule is a rule as defined in 

the Congressional Review Act (5 U.S.C. 

801–808). However, the Office of 

Management and Budget has not found 

it to be a major rule as defined in the 

Congressional Review Act. 

XI. Voluntary Consensus Standards 

The National Technology Transfer 

and Advancement Act of 1995, Public 

Law 104–113, requires that Federal 

agencies use technical standards that are 

developed or adopted by voluntary 

consensus standards bodies unless the 

use of such a standard is inconsistent 

with applicable law or otherwise 

impractical. In this final rule, the action 

does not constitute the establishment of 

a standard that contains generally 

applicable requirements. 

XII. Availability of Guidance 

The NRC publishes a fee guidance 

document for small entities annually in 

conjunction with the NRC’s annual rule 

to revise its fee schedules. The ‘‘Small 

Entity Compliance Guide’’ is designed 

to assist businesses, organizations, 

educational institutions, and 

governmental jurisdictions in 

determining whether they qualify as 

small entities by providing the 

qualifying factors that make up the 

NRC’s definition of ‘‘small entity,’’ and 

the current small entity fees. The NRC 

will update the compliance guide each 

year when issuing the final fee rule and 

to align with the fee schedule of that 

year. As part of a future fee rule, the 

NRC will update the Small Entity 

Compliance Guide to reflect to changes 

in §§ 2.810 and 171.16(c). The FY 2021 

Small Entity Compliance Guide is 

available as indicated in the 

‘‘Availability of Documents,’’ section of 

this document. 

XIII. Availability of Documents 

Documents identified in the following 

table are available to interested persons 

through one or more of the following 

methods, as indicated. 

Document ADAMS accession No./web link/Federal Register Citation 

Public Law (Pub. L.) 115–324, ‘‘Small Business Runway Extension Act 

of 2018’’.

https://www.congress.gov/115/plaws/publ324/PLAW-115publ324.pdf. 

NRC Size Standard for Making Determinations Required by the Regulatory Flexibility Act of 1980 (December 9, 1985).50 FR 50241. 

Revision of Fee Schedules; 100 Percent Fee Recovery (July 10, 1991) 56 FR 31507. 

NRC Form 526, ‘‘Certification of Small Entity Status for the Purposes of 

Annual Fees Imposed under 10 CFR Part 171’’.

https://www.nrc.gov/reading-rm/doc-collections/forms/nrc526.pdf. 

Receipts-Based, Small Business Size Standard; Direct Final Rule (July 

3, 2012).

77 FR 39385. 

Revision of Fee Schedules; Fee Recovery for Fiscal Year 2013 (July 1, 

2013).

78 FR 39479. 

Survey of NRC’s Materials Licensees ...................................................... 85 FR 6225. 

Small Business Size Standards: Calculation of Annual Average Receipts; Final Rule (December 5, 2019).84 FR 66561. 

Small Business Size Standards: Adjustment of Monetary-Based Size 

Standards for Inflation.

84 FR 34261. 

Receipts-Based NRC Size Standards; Proposed Rule (July 26, 2021) .. 86 FR 39980. 

SECY–20–0111, ‘‘Rulemaking Plan to Amend the Receipts-Based NRC 

Size Standards (NRC–2014–0264).

ML20268B327. 


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8946 Federal Register / Vol. 87, No. 33 / Thursday, February 17, 2022 / Rules and Regulations 

Document ADAMS accession No./web link/Federal Register Citation 

FY 2021 U.S. Nuclear Regulatory Commission Small Entity Compliance Guide.ML21105A750. 

List of Subjects 

10 CFR Part 2 

Administrative practice and 

procedure, Antitrust, Byproduct 

material, Classified information, 

Confidential business information, 

Environmental protection, Freedom of 

information, Hazardous waste, Nuclear 

energy, Nuclear materials, Nuclear 

power plants and reactors, Penalties, 

Reporting and recordkeeping 

requirements, Sex discrimination, 

Source material, Special nuclear 

material, Waste treatment and disposal. 

10 CFR Part 171 

Annual charges, Byproduct material, 

Holders of certificates, Registrations, 

Approvals, Intergovernmental relations, 

Nonpayment penalties, Nuclear 

materials, Nuclear power plants and 

reactors, Source material, Special 

nuclear material. 

For the reasons set out in the 

preamble and under the authority of the 

Atomic Energy Act of 1954, as amended; 

the Energy Reorganization Act of 1974, 

as amended; and 5 U.S.C. 552 and 553, 

the NRC is amending 10 CFR parts 2 

and 171 as follows: 

PART 2—AGENCY RULES OF 

PRACTICE AND PROCEDURE 

■ 1. The authority citation for part 2 

continues to read as follows: 

Authority: Atomic Energy Act of 1954, 

secs. 29, 53, 62, 63, 81, 102, 103, 104, 105, 

161, 181, 182, 183, 184, 186, 189, 191, 234 

(42 U.S.C. 2039, 2073, 2092, 2093, 2111, 

2132, 2133, 2134, 2135, 2201, 2231, 2232, 

2233, 2234, 2236, 2239, 2241, 2282); Energy 

Reorganization Act of 1974, secs. 201, 206 

(42 U.S.C. 5841, 5846); Nuclear Waste Policy 

Act of 1982, secs. 114(f), 134, 135, 141 (42 

U.S.C. 10134(f), 10154, 10155, 10161); 

Administrative Procedure Act (5 U.S.C. 552, 

553, 554, 557, 558); National Environmental 

Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 

3504 note. 

Section 2.205(j) also issued under 28 

U.S.C. 2461 note. 

■ 2. In § 2.810, revise paragraphs (a)(1) 

and (b) to read as follows: 

§ 2.810 NRC size standards. 

* * * * * 

(a) * * * 

(1) Concern that provides a service or 

a concern not engaged in manufacturing 

with average gross receipts of $8.0 

million or less over its last 5 completed 

fiscal years; or 

* * * * * 

(b) A small organization is a not-forprofit organization which is 

independently owned and operated and 

has annual gross receipts of $8.0 million 

or less. 

* * * * * 

PART 171—ANNUAL FEES FOR 

REACTOR LICENSES AND FUEL 

CYCLE LICENSES AND MATERIALS 

LICENSES, INCLUDING HOLDERS OF 

CERTIFICATES OF COMPLIANCE, 

REGISTRATIONS, AND QUALITY 

ASSURANCE PROGRAM APPROVALS 

AND GOVERNMENT AGENCIES 

LICENSED BY THE NRC 

■ 3. The authority citation for part 171 

continues to read as follows: 

Authority: Atomic Energy Act of 1954, 

secs. 11, 161(w), 223, 234 (42 U.S.C. 2014, 

2201(w), 2273, 2282); Energy Reorganization 

Act of 1974, sec. 201 (42 U.S.C. 5841); 42 

U.S.C. 2215; 44 U.S.C. 3504 note. 

■ 4. In § 171.16, revise paragraph (c) to 

read as follows: 

§ 171.16 Annual fees: Materials licensees, 

holders of certificates of compliance, 

holders of sealed source and device 

registrations, holders of quality assurance 

program approvals, and government 

agencies licensed by the NRC. 

* * * * * 

(c) A licensee who is required to pay 

an annual fee under this section, in 

addition to 10 CFR part 72 licenses, may 

qualify as a small entity. If a licensee 

qualifies as a small entity and provides 

the Commission with the proper 

certification along with its annual fee 

payment, the licensee may pay reduced 

annual fees as shown in table 1 to this 

paragraph (c). Failure to file a small 

entity certification in a timely manner 

could result in the receipt of a 

delinquent invoice requesting the 

outstanding balance due and/or denial 

of any refund that might otherwise be 

due. The small entity fees are as follows: 

TABLE 1 TO PARAGRAPH (c) 

NRC small entity classification 

Maximum 

annual fee 

per licensed 

category 

Small Businesses Not Engaged in Manufacturing (Average gross receipts over the last 5 completed fiscal years): 

$555,000 to $8 million .................................................................................................................................................................. $4,900 

Less than $555,000 ...................................................................................................................................................................... 1,000 

Small Not-For-Profit Organizations (Annual Gross Receipts): 

$555,000 to $8 million .................................................................................................................................................................. 4,900 

Less than $555,000 ...................................................................................................................................................................... 1,000 

Manufacturing Entities that Have An Average of 500 Employees or Fewer: 

35 to 500 employees .................................................................................................................................................................... 4,900 

Fewer than 35 employees ............................................................................................................................................................ 1,000 

Small Governmental Jurisdictions (Including publicly supported educational institutions) (Population): 

20,000 to 49,999 .......................................................................................................................................................................... 4,900 

Fewer than 20,000 ....................................................................................................................................................................... 1,000 

Educational Institutions that are not State or Publicly Supported, and have 500 Employees or Fewer: 

35 to 500 employees .................................................................................................................................................................... 4,900 

Fewer than 35 employees ............................................................................................................................................................ 1,000 


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Federal Register / Vol. 87, No. 33 / Thursday, February 17, 2022 / Rules and Regulations 8947 

* * * * * 

Dated: January 27, 2022. 

For the Nuclear Regulatory Commission. 

Cherish K. Johnson, 

Chief Financial Officer. 

[FR Doc. 2022–03146 Filed 2–16–22; 8:45 am] 

BILLING CODE 7590–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 16 

[Docket No. TTB–2022–0001; Notice No. 

208] 

Civil Monetary Penalty Inflation 

Adjustment—Alcoholic Beverage 

Labeling Act 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notification of civil monetary 

penalty adjustment. 

SUMMARY: This document informs the 

public that the maximum penalty for 

violations of the Alcoholic Beverage 

Labeling Act (ABLA) is being adjusted 

in accordance with the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended. Prior to the 

publication of this document, any 

person who violated the provisions of 

the ABLA was subject to a civil penalty 

of not more than $21,633, with each day 

constituting a separate offense. This 

document announces that this 

maximum penalty is being increased to 

$22,979. 

DATES: The new maximum civil penalty 

for violations of the ABLA takes effect 

on February 17, 2022 and applies to 

penalties that are assessed after that 

date. 

FOR FURTHER INFORMATION CONTACT: 

Vonzella C. Johnson, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW, Box 12, Washington, DC 20005; 

(202) 508–0413. 

Background 

Statutory Authority for Federal Civil 

Monetary Penalty Inflation Adjustments 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990 (the Inflation 

Adjustment Act), Public Law 101–410, 

104 Stat. 890, 28 U.S.C. 2461 note, as 

amended by the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015, Public Law 114–74, section 

701, 129 Stat. 584, requires the regular 

adjustment and evaluation of civil 

monetary penalties to maintain their 

deterrent effect and helps to ensure that 

penalty amounts imposed by the 

Federal Government are properly 

accounted for and collected. A ‘‘civil 

monetary penalty’’ is defined in the 

Inflation Adjustment Act as any penalty, 

fine, or other such sanction that is: (1) 

For a specific monetary amount as 

provided by Federal law, or has a 

maximum amount provided for by 

Federal law; (2) assessed or enforced by 

an agency pursuant to Federal law; and 

(3) assessed or enforced pursuant to an 

administrative proceeding or a civil 

action in the Federal courts. 

The Inflation Adjustment Act, as 

amended, requires agencies to adjust 

civil monetary penalties by the inflation 

adjustment described in section 5 of the 

Inflation Adjustment Act. The Act also 

provides that any increase in a civil 

monetary penalty shall apply only to 

civil monetary penalties, including 

those whose associated violation 

predated such an increase, which are 

assessed after the date the increase takes 

effect. 

The Inflation Adjustment Act, as 

amended, provides that the inflation 

adjustment does not apply to civil 

monetary penalties under the Internal 

Revenue Code of 1986 or the Tariff Act 

of 1930. 

Alcoholic Beverage Labeling Act 

The Alcohol and Tobacco Tax and 

Trade Bureau (TTB) administers the 

Federal Alcohol Administration Act 

(FAA Act) pursuant to section 1111(d) 

of the Homeland Security Act of 2002, 

codified at 6 U.S.C. 531(d). The 

Secretary has delegated various 

authorities through Treasury 

Department Order 120–01, dated 

December 10, 2013 (superseding 

Treasury Department Order 120–01, 

dated January 24, 2003), to the TTB 

Administrator to perform the functions 

and duties in the administration and 

enforcement of this law. 

The FAA Act contains the Alcoholic 

Beverage Labeling Act (ABLA) of 1988, 

Public Law 100–690, 27 U.S.C. 213– 

219a, which was enacted on November 

18, 1988. Section 204 of the ABLA, 

codified in 27 U.S.C. 215, requires that 

a health warning statement appear on 

the labels of all containers of alcoholic 

beverages manufactured, imported, or 

bottled for sale or distribution in the 

United States, as well as on containers 

of alcoholic beverages that are 

manufactured, imported, bottled, or 

labeled for sale, distribution, or 

shipment to members or units of the 

U.S. Armed Forces, including those 

located outside the United States. 

The health warning statement 

requirement applies to containers of 

alcoholic beverages manufactured, 

imported, or bottled for sale or 

distribution in the United States on or 

after November 18, 1989. The statement 

reads as follows: 

GOVERNMENT WARNING: (1) According 

to the Surgeon General, women should not 

drink alcoholic beverages during pregnancy 

because of the risk of birth defects. (2) 

Consumption of alcoholic beverages impairs 

your ability to drive a car or operate 

machinery, and may cause health problems. 

Section 204 of the ABLA also 

specifies that the Secretary of the 

Treasury shall have the power to ensure 

the enforcement of the provisions of the 

ABLA and issue regulations to carry 

them out. In addition, section 207 of the 

ABLA, codified in 27 U.S.C. 218, 

provides that any person who violates 

the provisions of the ABLA is subject to 

a civil penalty of not more than $10,000, 

with each day constituting a separate 

offense. 

Most of the civil monetary penalties 

administered by TTB are imposed by 

the Internal Revenue Code of 1986, and 

thus are not subject to the inflation 

adjustment mandated by the Inflation 

Adjustment Act. The only civil 

monetary penalty enforced by TTB that 

is subject to the inflation adjustment is 

the penalty imposed by the ABLA at 27 

U.S.C. 218. 

TTB Regulations 

The TTB regulations implementing 

the ABLA are found in 27 CFR part 16, 

and the regulations implementing the 

Inflation Adjustment Act with respect to 

the ABLA penalty are found in 27 CFR 

16.33. This section indicates that, in 

accordance with the ABLA, any person 

who violates the provisions of this part 

is subject to a civil penalty of not more 

than $10,000. Further, pursuant to the 

provisions of the Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended, this civil penalty is subject to 

periodic cost-of-living adjustments. 

Accordingly, any person who violates 

the provisions of 27 CFR part 16 is 

subject to a civil penalty of not more 

than the amount listed at https://

www.ttb.gov/regulation_guidance/ 

ablapenalty.html. Each day constitutes a 

separate offense. 

To adjust the penalty, § 16.33(b) 

indicates that TTB will provide notice 

in the Federal Register, and at the 

website mentioned above, of cost-ofliving adjustments to the civil penalty 

for violations of 27 CFR part 16. 

Penalty Adjustment 

In this document, TTB is publishing 

its yearly adjustment to the maximum 

ABLA penalty, as required by the 

amended Inflation Adjustment Act. 


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