Federal Register / Vol. 62, No. 64 / Thursday, April 3, 1997 / Rules and Regulations 15827

EFFECTIVE DATE: 0901 UTC May 22,

1997.

FOR FURTHER INFORMATION CONTACT:

William Buck, Airspace Specialist,

Operations Branch, AWP–530, Air

Traffic Division, Western-Pacific

Region, Federal Aviation

Administration, 15000 Aviation

Boulevard, Lawndale, California 90261,

telephone (310) 725–6556.

SUPPLEMENTARY INFORMATION:

History

On February 12, 1997, the FAA

proposed to amend part 71 of the

Federal Aviation Regulations (14 CFR

part 71) by establishing a Class E

airspace area at Fallbrook, CA (62 FR

6508). This action will provide adequate

controlled airspace to accommodate a

GPS SIAP to RWY 18 at Fallbrook

Community Airpark, Fallbrook, CA.

Interested parties were invited to

participate in this rulemaking

proceeding by submitting written

comments on the proposal to the FAA.

No comments to the proposal were

received. Class E airspace designations

are published in paragraph 6005 of FAA

Order 7400.9D dated September 4, 1996,

and effective September 16, 1996, which

is incorporated by reference in 14 CFR

71.1. The Class E airspace designations

listed in this document will be

published subsequently in this Order.

The Rule

This amendment to part 71 of the

Federal Aviation Regulations (14 CFR

part 71) establishes a Class E airspace

area at Fallbrook, CA. The development

of a GPS SIAP to RWY 18 has made this

action necessary. The effect of this

action will provide adequate airspace

for aircraft executing the GPS RWY 18

SIAP at Fallbrook Community Airpark,

Fallbrook, CA.

The FAA has determined that this

regulation only involves an established

body of technical regulations for which

frequent and routine amendments are

necessary to keep them operationally

current. Therefore, this regulation—(1)

is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 10034; February 26, 1979); and (3)

does not warrant preparation of a

Regulatory Evaluation as the anticipated

impact is so minimal. Since this is a

routine matter that will only affect air

traffic procedures and air navigation, it

is certified that this rule will not have

a significant economic impact on a

substantial number of small entities

under the criteria of the Regulatory

Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference,

Navigation (air).

Adoption of the Amendment

In consideration of the foregoing, the

Federal Aviation Administration

amends 14 CFR part 71 as follows:

PART 71—[AMENDED]

1. The authority citation for 14 CFR

part 71 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113,

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389; 14 CFR 11.69.

§ 71.1 [Amended]

2. The incorporation by reference in

14 CFR 71.1 of the Federal Aviation

Administration Order 7400.9D, Airspace

Designations and Reporting Points,

dated September 4, 1996, and effective

September 16, 1996, is amended as

follows:

Paragraph 6005 Class E airspace area

extending upward from 700 feet or more

above the surface of the earth.

* * * * *

AWP CA E5 Fallbrook, CA [New]

Fallbrook Community Airpark, CA

(Lat. 33°21′15′′ N, long. 117°15′03′′ W)

* * * * *

That airspace extending upward from 700

feet above the surface within a 6-mile radius

of the Fallbrook Community Airpark and

within 4 miles west and 5.3 miles east of the

014° bearing from the Fallbrook Community

Airpark, extending from the 6-mile radius to

20.5 miles north of the airport, excluding the

portion within the Camp Pendleton, CA,

Class E airspace area.

Issued in Los Angeles, California, on

March 14, 1997.

George D. Williams,

Manager, Air Traffic Division, Western-Pacific

Region.

[FR Doc. 97–8496 Filed 4–2–97; 8:45 am]

BILLING CODE 4910–13–M

14 CFR Part 71

[Airspace Docket No. 96–AWP–27]

Amendment of Class E Airspace; San

Jose, CA

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Final rule; correction.

SUMMARY: This action corrects an error

in the geographic coordinates of a final

rule that was published in the Federal

Register on February 25, 1997 (62 FR

8369), Airspace Docket No. 96–AWP–

27.

EFFECTIVE DATE: 0901 UTC March 27,

1997.

FOR FURTHER INFORMATION CONTACT:

William Buck, Airspace Specialist,

Operations Branch, AWP–530, Air

Traffic Division, Western-Pacific

Region, Federal Aviation

Administration, 15000 Aviation

Boulevard, Lawndale, California 90261,

telephone (310) 725–6556.

SUPPLEMENTARY INFORMATION:

History

Federal Register Document 97–4578,

Airspace Docket No. 96–AWP–27,

published on February 25, 1997 (62 FR

8369), revised the description of the

Class E airspace area at San Jose, CA. An

error was discovered in the geographic

coordinates for the San Jose, CA, Class

E airspace area. This action corrects that

error.

Correction to Notice of Proposed

Rulemaking

Accordingly, pursuant to the

authority delegated to me, the

geographic coordinates for the Class E

airspace area at San Jose, CA, as

published in the Federal Register on

February 25, 1997 (62 FR 8369) (Federal

Register Document 97–4578; page 8369,

column 3), is corrected as follows:

§ 71.1 [Corrected]

* * * * *

AWP CA E5 San Jose, CA [Corrected]

By removing ‘‘(lat. 37°22′00′′ N, long.

121°08′04′′ W, and lat. 37°22′00′′ N, long.

121°24′04′′ W.) and substituting ‘‘(lat.

37°22′00′′ N, long. 122°08′04′′ W, and lat.

37°22′00′′ N, long. 122°24′04′′ W.)’’.

* * * * *

Issued in Los Angeles, California, on

March 4, 1997.

George D. Williams,

Manager, Air Traffic Division, Western-Pacific

Region.

[FR Doc. 97–8499 Filed 4–2–97; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

18 CFR Part 2

[Docket No. RM97–2–000; Order No. 594]

Statement of Compliance With Section

223 of the Small Business Regulatory

Enforcement Fairness Act of 1996;

Policy Statement

Issued March 26, 1997.

AGENCY: Federal Energy Regulatory

Commission.

ACTION: Final rule; policy statement.
15828 Federal Register / Vol. 62, No. 64 / Thursday, April 3, 1997 / Rules and Regulations

1Pub. L. 104–121, 110 Stat. 860, et seq., Section

201, et seq. (1996). Section 223 is part of Subtitle

B of SBREFA, entitled ‘‘Regulatory Enforcement

Reforms.’’ Subtitle B is codified as a note to 5 U.S.C.

§ 601 (1996), which is part of the Regulatory

Flexibility Act. Because of this, we will use the

session law citations in this policy statement.

2Pub. L. No. 104–121, 110 Stat. 858, Section

203(6) (1996).

3 Id., Section 223(a). In addition to the

requirements of section 223, section 213(b) of

SBREFA requires agencies regulating the activities

of small entities to establish a program by March

29, 1997, for responding to inquiries concerning

information on, and advice about, compliance with

statutory and regulatory requirements. Id., Section

213(b). The Commission has already established

and publicized advice programs for small entities

offered by its Office of Hydroelectric Licensing and

Office of Pipeline Regulation, as well as the

availability of assistance through the Enforcement

Task Force Hotline. Additionally, Commission staff

from the Office of General Counsel, the Office of

Electric Power Regulation and the Office of Chief

Accountant respond to compliance inquiries made

by all entities, regardless of size. Thus, the

Commission has complied with section 213(b).

SUMMARY: The Commission is issuing

this Policy Statement in compliance

with section 223 of the Small Business

Regulatory Enforcement Fairness Act of

1996 (SBREFA). Section 223 of SBREFA

requires each agency regulating the

activities of small entities to establish a

policy to provide for the reduction, and

under appropriate circumstances, for

the waiver of civil penalties for

violations of statutory or regulatory

requirements by small entities.

It is the policy of the Commission that

to be considered for a reduction or

waiver of a penalty, a small entity must

not have a history of previous

violations, and the violations at issue

must not have been the product of

willful or criminal conduct, or have

caused loss of life or injury to persons,

damage to property or the environment,

or endangered persons, property or the

environment. A small entity that

complies with those standards is

eligible for consideration for a waiver or

reduction of a civil penalty. An eligible

small entity will be granted a waiver if

it can also demonstrate that it performed

timely remedial efforts, made a good

faith effort to comply with the law and

did not obtain an economic benefit from

the violations. If an eligible small entity

cannot meet the criteria for waiver of a

civil penalty, it may be eligible for

consideration of a reduced penalty.

Upon the request of a small entity, the

Commission will consider the entity’s

ability to pay before assessing a civil

penalty.

The Commission reserves the right to

waive or reduce civil penalties in

circumstances other than those listed

under this Policy if it is in the public

interest to do so.

DATES: This rule is effective March 29,

1997.

FOR FURTHER INFORMATION CONTACT:

Stuart Fischer, Office of General

Counsel, Federal Energy Regulatory

Commission, 888 First Street, NE.,

Washington, D.C. 20426, Telephone:

(202) 208–1033.

SUPPLEMENTARY INFORMATION: In

addition to publishing the full text of

this document in the Federal Register,

the Commission also provides all

interested persons an opportunity to

inspect or copy the contents of this

document during normal business hours

in the Public Reference Room at 888

First Street, N.E., Washington, D.C.

20426.

The Commission Issuance Posting

System (CIPS), an electronic bulletin

board service, provides access to the

texts of formal documents issued by the

Commission. CIPS is available at no

charge to the user and may be accessed

using a personal computer with a

modem by dialing 202–208–1397 if

dialing locally or 1–800–856–3920 if

dialing long distance. To access CIPS,

set your communications software to

19200, 14400, 12000, 9600, 7200, 4800,

2400, or 1200 bps, full duplex, no

parity, 8 data bits and 1 stop bit. The

full text of this order will be available

on CIPS in ASCII and WordPerfect 5.1

format. CIPS user assistance is available

at 202–208–2474.

CIPS is also available on the Internet

through the Fed World system. Telnet

software is required. To access CIPS via

the Internet, point your browser to the

URL address: http://www.fedworld.gov

and select the ‘‘Go to the FedWorld

Telnet Site’’ button. When your Telnet

software connects you, log on to the

FedWorld system, scroll down and

select FedWorld by typing: 1 and at the

command line and type: /go FERC.

FedWorld may also be accessed by

Telnet at the address fedworld.gov.

Finally, the complete text on diskette

in WordPerfect format may be

purchased from the Commission’s copy

contractor, La Dorn Systems

Corporation. La Dorn Systems

Corporation is also located in the Public

Reference room at 888 First Street, N.E.,

Washington, D.C. 20426.

Before Commissioners: Elizabeth Anne

Moler, Chair; Vicky A. Bailey, James J.

Hoecker, William L. Massey, and Donald F.

Santa, Jr.

STATEMENT OF PENALTY REDUCTION/

WAIVER POLICY TO COMPLY WITH

SECTION 223 OF THE SMALL BUSINESS

REGULATORY ENFORCEMENT FAIRNESS

ACT OF 1996

I. Introduction

The Commission is issuing this Policy

Statement in compliance with section

223 of the Small Business Regulatory

Enforcement Fairness Act of 1996

(SBREFA).1 Section 223 of SBREFA

requires each agency regulating the

activities of small entities to establish a

policy to provide for the reduction, and

under appropriate circumstances, for

the waiver of civil penalties for

violations of statutory or regulatory

requirements by small entities.

It is the policy of the Commission that

to be considered for a reduction or

waiver of a penalty, a small entity must

not have a history of previous

violations, and the violations at issue

must not have been the product of

willful or criminal conduct, or have

caused loss of life or injury to persons,

damage to property or the environment,

or endangered persons, property or the

environment. A small entity that

complies with those standards is

eligible for consideration for a waiver or

reduction of a civil penalty. An eligible

small entity will be granted a waiver if

it can demonstrate that it also performed

timely remedial efforts, made a good

faith effort to comply with the law and

did not obtain an economic benefit from

the violations. If an eligible small entity

cannot meet the criteria for waiver of a

civil penalty, it may be eligible for

consideration of a reduced penalty.

Upon the request of a small entity, the

Commission will consider the entity’s

ability to pay before assessing a civil

penalty.

The Commission reserves the right to

waive or reduce civil penalties in

circumstances other than those listed

under this Policy if it is in the public

interest to do so.

II. Background

A. SBREFA

President Clinton signed SBREFA into

law on March 29, 1996. The stated

purpose of SBREFA is, among other

things, ‘‘to create a more cooperative

regulatory environment among agencies

and small businesses that is less

punitive and more solution oriented.’’ 2

Many of the provisions of SBREFA,

such as congressional review of agency

rulemaking, a right to judicial review

under the Regulatory Flexibility Act

(RFA), and amendments to the Equal

Access to Justice Act became effective

either on the date of enactment or

within 90 days of that date. However,

section 223 of SBREFA, entitled ‘‘Rights

of Small Entities In Enforcement

Actions,’’ takes effect by March 29,

1997, one year after enactment.3 Section

223(a) of SBREFA requires each agency

regulating the activities of small entities

to establish a policy or program
Federal Register / Vol. 62, No. 64 / Thursday, April 3, 1997 / Rules and Regulations 15829

4 Id., Section 223(a).

5 Id., Section 223(b).

6 Id., Section 221(1).

7 5 U.S.C. Section 601 (1994).

8 15 U.S.C. Section 632(a)(1) (1994).

9 5 U.S.C. Section 601(3) (1994).

10 15 U.S.C. Section 632(a) (1994).

11 13 CFR 121.101–201.

12 13 CFR 121.201.

13 Id.

14 Id., Section 121.103.

15 5 U.S.C. Section 601(4) (1994).

16 5 U.S.C. Section 601(5) (1994).

17Pub. L. 104–121, 110 Stat. 862, Section 223(b)

(1)–(6) (1996).

18 Id., Section 223(a) (1996).

19 16 U.S.C. Section 823b(c)(1994).

20 16 U.S.C. Section 825o–1 (1994).

21 15 U.S.C. Section 3414(b)(6) (1994).

22 16 U.S.C. 823b(c)(1994).

23 18 CFR 385.1505.

24See, e. g., Clifton Power Corp. v. FERC, 88 F.3d

1258, 1267 (D.C. Cir. 1996); Bluestone Energy

Design, Inc. v. FERC, 74 F.3d 1288, 1295 (D.C. Cir.

1996).

25 16 U.S.C. 825o–1 (1994).

26 15 U.S.C. 3414(b)(6)(A) (1994). The NGPA

defines ‘‘knowing’’ as actual knowledge or

constructive knowledge deemed to be possessed by

a reasonable individual who acts under similar

circumstances. 15 U.S.C. 3414(b)(6)(B) (1994).

providing for the reduction and, under

appropriate circumstances, the waiver

of civil penalties for violations of

statutory or regulatory requirements by

small entities.4 Penalty reduction/

waiver policies or programs are ‘‘subject

to the requirements or limitations of

other statutes.’’ 5

1. Definition of ‘‘Small Entity’’

Section 221(1) of SBREFA defines the

term ‘‘small entity’’ as having the same

meaning as in section 601 of the RFA.6

Section 601 of the RFA, in turn, defines

‘‘small entity’’ as ‘‘small business,’’

‘‘small organization’’ and ‘‘small

governmental jurisdiction.’’ 7

Under Section 601(3) of the RFA, a

‘‘small business’’ has the same meaning

as ‘‘small business concern’’ under

section 632(a) of the Small Business

Act,8 unless an agency, after

consultation with the Office of

Advocacy of the Small Business

Administration (SBA) and after

opportunity for notice and comment,

establishes its own definition.9

Section 632(a)(1) of the Small

Business Act defines a ‘‘small business

concern’’ as an enterprise ‘‘which is

independently owned and operated and

which is not dominant in its field of

operation.’’ 10 The SBA has applied the

definition of small business to a number

of specific industries based on the sizes

of the enterprises and their affiliations.11

The SBA defines a ‘‘Natural Gas

Transmission Company,’’ which

includes an interstate natural gas

pipeline, as a small business if it has

less than $5,000,000 in revenues.12 The

SBA considers an electric utility,

including a hydroelectric project, a

small business if it produces up to four

million megawatt hours per year.13

When the SBA determines whether an

enterprise is a small business, it counts

the enterprise’s affiliations. Family

enterprises or enterprises in which the

same individual or individuals have a

controlling interest are aggregated

together for this purpose.14 If the

aggregate total of the affiliated

enterprises exceeds the size requirement

for small businesses, none of the

affiliated enterprises is considered a

small business.

The RFA defines ‘‘small organization’’

as a not-for-profit enterprise which is

independently owned and operated and

not dominant in its field.15 The RFA

defines a ‘‘small governmental

jurisdiction’’ as a governmental entity

with a population of less than 50,000.16

2. Conditions and Exclusions

SBREFA does not mandate the

content of a penalty reduction/waiver

policy. Subject to the requirements or

limitations of other statutes, section

223(b) of SBREFA suggests, but does not

require, several conditions or exclusions

that may be included in such a policy.

These are: Requiring correction of the

violation within a reasonable period of

time; limiting the applicability of the

reduction/waiver policy to violations

discovered through participation in a

compliance assistance or audit program

operated or supported by the agency or

a state; excluding small entities that

have been subject to multiple

enforcement actions by the agency;

excluding violations involving willful or

criminal conduct; excluding violations

that pose serious health, safety or

environmental threats; and requiring a

good faith effort to comply with the

law.17 In addition to the suggested

conditions and exclusions, section

223(a) of SBREFA states that ‘‘under

appropriate circumstances’’ an agency

may consider ability to pay in

determining penalty assessments on

small entities.18

B. The Commission’s Civil Penalty

Authority

The Commission has the authority to

assess civil penalties under section 31(c)

of the Federal Power Act (FPA),19

section 316A of the FPA,20 and section

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

of 1978 (NGPA).21 The Natural Gas Act

does not provide for civil penalties.

1. The FPA

Section 31(c) of the FPA provides for

penalties up to $10,000 per violation per

day and requires that:

In determining the amount of a proposed

penalty, the Commission shall take into

consideration the nature and seriousness of

the violation, failure or refusal and the efforts

of the licensee to remedy the violation,

failure, or refusal in a timely manner.22

The factors the Commission considers

in assessing civil penalties are: Whether

the person had actual knowledge of the

violation or constructive knowledge

deemed to be possessed by a reasonable

individual acting under similar

circumstances; whether the person has

a history of previous violations; whether

the violation caused loss of life or injury

to persons; whether economic benefits

were derived because of the violation;

whether the violation caused damage to

property or the environment; whether

the violation endangered persons,

property or the environment; whether

there were timely, untimely or no

remedial efforts; and whether there are

any other pertinent considerations.23

The section 385.1505 factors are similar

to the conditions and exclusions

suggested under section 223(b) of

SBREFA.

Under the ‘‘other pertinent

considerations’’ factor, the Commission

has considered the size of a project, the

gross revenues earned and whether the

entity relied on advice given by

Commission staff. While the

Commission is not required under the

FPA to consider an entity’s ability to

pay, the Commission has considered

that factor when the respondent raised

the issue.24

The Commission also has civil

penalty authority under section 316A of

the FPA,25 to remedy violations of

sections 211, 212, 213 and 214 of that

statute. Sections 211 and 212 of the FPA

concern wheeling electric power.

Section 213 contains reporting

requirements involving requests for

wholesale transmission services.

Section 214 deals with sales by exempt

wholesale generators.

2. The NGPA

Section 3414(b)(6) of the NGPA

provides for civil penalties up to $5,000

per violation per day and does not

identify specific required factors to

consider when assessing penalties, other

than requiring that the violation is

‘‘knowing.’’ 26 However, the

Commission has informally considered

factors similar to those in section

385.1505 when analyzing NGPA civil

penalty matters.
15830 Federal Register / Vol. 62, No. 64 / Thursday, April 3, 1997 / Rules and Regulations

27See, Pub. L. 104–121, 110 Stat. 862, Section

223(b)(3)–(5) (1996).

28 Id., Section 223(b)(2).

29See, e.g., 18 CFR 385.1505(b)(8)-(10). The

Commission considers good faith when determining

the types of remedial efforts made by the violator

and whether the violator had actual or constructive

knowledge of the violation. See, e. g., 18 CFR

385.1505(b) (1), (2) and (8)–(10). 30 5 U.S.C. 804(2) (1996).

III. Discussion

A. Eligibility for Penalty Reduction or

Waiver

The Commission is adopting many of

the exclusions suggested by section

223(b) of SBREFA. Specifically, to be

considered for a reduction or waiver of

a penalty, a small entity must not have

a history of previous violations, and the

violations at issue must not have been

the product of willful or criminal

conduct, or have caused loss of life or

injury to persons, damage to property or

the environment, or endangered

persons, property or the environment. 27

While SBREFA suggests limiting

penalty reduction or waiver policies to

violations discovered through a small

entity’s participation in a compliance

assistance or audit program, 28 we will

not make this a prerequisite because it

would be too limiting. Requiring

participation in a compliance assistance

program could exclude first time

violators who did not recognize their

need for compliance assistance.

Although seeking compliance assistance

may be an indication of good faith for

purposes of a penalty waiver or

reduction, it will not be used as a bar

to eligibility for this Waiver/Reduction

Policy.

B. Criteria for Waiver or Reduction of a

Civil Penalty

If it meets all of the eligibility criteria

for this Waiver/Reduction Policy, a

small entity will be granted a waiver of

a civil penalty if it can also demonstrate

that it performed timely remedial

efforts, made a good faith effort to

comply with the law and did not derive

an economic benefit from the violations.

The requirements for timely remedial

efforts and good faith are conditions

suggested for penalty waiver or

reduction under sections 223(b)(1) and

(6) of SBREFA. These conditions are

similar to factors that the Commission

already considers under its regulations

when determining civil penalties. 29

While the requirement that the small

entity not be allowed to retain economic

benefits from the violations is not a

condition or exclusion identified in

SBREFA, the Commission believes that

this factor must be considered when

determining whether to waive or reduce

civil penalties. The final penalty

amount should capture any economic

benefits derived from violations.

Otherwise small entities could be

encouraged to violate statutory and

regulatory requirements for profit.

Violators should not be able to retain

economic benefits that are unavailable

to small entities that comply with

statutory and regulatory requirements.

If an eligible small entity meets some,

but not all, of the criteria for a waiver

of a civil penalty, it may still be eligible

for a penalty reduced from that which

would otherwise be appropriate. The

appropriateness of a penalty and the

level of reduction will be decided on a

case-by-case basis by considering the

same criteria used for determining a

waiver.

In determining whether to reduce a

civil penalty, the Commission will also

consider, upon request, the small

entity’s ability to pay. In considering

ability to pay, the Commission is

following the suggestion in section

223(a) of SBREFA. If a small entity

wants the Commission to consider its

ability to pay a civil penalty, the entity

must provide written documentation

demonstrating its financial condition.

Acceptable documentation includes, but

is not limited to: Federal income tax

returns, state income tax returns,

income statements, balance sheets,

statements of change in financial

position, bank statements for loans and

checking accounts. The Commission

reserves the right to request more than

one type of verifying data on financial

condition. In analyzing ability to pay,

the Commission will consider the small

entity’s cost of compliance with

statutory and regulatory requirements.

The Commission reserves the right to

waive or reduce civil penalties in

circumstances other than those listed

under this Policy if it is in the public

interest to do so.

IV. Administrative Effective Date and

Congressional Notification

Under the terms of 5 U.S.C. 553(d)(2),

this Policy Statement is effective on

March 29, 1997. 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 Policy Statement is not a major

rule within the meaning of section 251

of Subtitle E of SBREFA.30 The

Commission is submitting this Policy

Statement to both Houses of Congress

and to the Comptroller General.

List of Subjects in 18 CFR Part 2

Administrative practice and

procedure, Electric power, Natural gas,

Pipelines, Reporting and recordkeeping

requirements.

By the Commission.

Lois D. Cashell,

Secretary.

In consideration of the foregoing, the

Commission amends Part 2, Chapter I,

Title 18 of the Code of Federal

Regulations as set forth below.

PART 2—GENERAL POLICY AND

INTERPRETATIONS

1. The authority citation for Part 2 is

revised to read as follows:

Authority: 5 U.S.C. 601; 15 U.S.C. 717–

717w, 3301–3432; 16 U.S.C. 792–825y, 2601–

2645; 42 U.S.C. 4321–4361, 7101–7352.

2. Part 2 is amended by adding an

undesignated center heading and

§ 2.500, to read as follows:

Statement of Penalty Reduction/Waiver

Policy to Comply With the Small

Business Regulatory Enforcement

Fairness Act of 1996

§ 2.500 Penalty reduction/waiver policy for

small entities.

(a) It is the policy of the Commission

that any small entity is eligible to be

considered for a reduction or waiver of

a civil penalty if it has no history of

previous violations, and the violations

at issue are not the product of willful or

criminal conduct, have not caused loss

of life or injury to persons, damage to

property or the environment or

endangered persons, property or the

environment. An eligible small entity

will be granted a waiver if it can also

demonstrate that it performed timely

remedial efforts, made a good faith effort

to comply with the law and did not

obtain an economic benefit from the

violations. An eligible small entity that

cannot meet the criteria for waiver of a

civil penalty may be eligible for

consideration of a reduced penalty.

Upon the request of a small entity, the

Commission will consider the entity’s

ability to pay before assessing a civil

penalty.

(b) Notwithstanding paragraph (a) of

this section, the Commission reserves

the right to waive or reduce civil

penalties in appropriate individual

circumstances where it determines that

a waiver or reduction is warranted by

the public interest.

[FR Doc. 97–8314 Filed 4–2–97; 8:45 am]

BILLING CODE 6714–01–P