1550 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 

7See 49 FR 39593 (Oct. 9, 1984). 

8See 48 FR 35158 (Aug. 3, 1983). 

9See 54 FR 19556 (May 8, 1989). 

10See 51 FR 34490 (Sep. 29, 1986). 

11See 58 FR 19657 (Apr. 15, 1993). 

12See 75 FR 55310 (Sep. 10, 2010). 

13See 77 FR 2708 (Jan. 19, 2012). 

1Sec. 701, Public Law 114–74, 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 2017 adjustment on January 9, 

2017, in Docket No. RM17–9–000. See Civil 

Monetary Penalty Inflation Adjustments, Order No. 

834, 82 FR 8137 (Jan. 24, 2017), FERC Stats. & Regs. 

¶ 31,390 (2017). 

4 Id. (3). 

NFA to perform the full range of 

registration processing functions with 

respect to applicants for and persons 

registered as a: futures commission 

merchant, commodity pool operator, or 

commodity trading advisor; 7

introducing broker; 8 leverage 

transaction merchant; 9 floor broker; 10

floor trader; 11 retail foreign exchange 

dealer; 12 and swap dealer or major swap 

participant (collectively, registrants).13

Additionally, the NFA has adopted, and 

the Commission has approved, rules 

that govern the performance of the 

registration functions. For example, 

NFA Rule 501 pertains to the NFA’s 

authority to deny, condition, suspend, 

and revoke registration for registrants. 

NFA Rule 504 sets forth the procedures 

governing applicants and registrants 

disqualified from registration under 

sections 8a(2), 8a(3), or 8a(4) of the Act. 

In light of NFA’s experience in 

processing and maintaining exchange 

disciplinary and access denial actions 

on behalf of the Commission, the 

Commission has determined that it will 

continue to delegate these functions to 

the NFA. This Notice and Order is in 

accord with the Commission’s previous 

delegations to the NFA to perform 

registration processing functions with 

respect to applicants and registrants, in 

that, an individual’s or firm’s 

disciplinary history clearly is a factor 

that must be considered in any fitness 

determination. Deeming the NFA as the 

custodian of all exchange § 9.11 filings, 

and delegating to the NFA the 

responsibility for processing such filings 

and generating reports with the 

information amassed, should ensure 

that the NFA has the necessary 

information to continue to make 

appropriate registration determinations. 

Further, the Commission believes that 

this delegation order will enhance 

efficiency by permitting the 

Commission to carry out its statutory 

responsibilities under the CEA, while 

also freeing up Commission resources to 

be directed to other parts of its 

regulatory mandate. 

IV. Conclusion and Order 

The Commission has determined, in 

accordance with section 8a(10) of the 

Act, to delegate to the NFA the authority 

to perform the following functions: 

(1) To process exchange disciplinary 

information filed with it by an exchange 

or the Commission for inclusion in the 

BASIC system; 

(2) To provide the Commission with 

access to a Management Report 

summarizing all recent exchange 

disciplinary information and to provide 

the Commission with the capability to 

generate standardized reports on the 

BASIC system; 

(3) To assist the Commission in 

enforcing exchange compliance with 

regulation 9.11 filing requirements; and 

(4) To serve as the official custodian 

of a database containing records of all 

exchange disciplinary and access denial 

actions filed with the NFA for inclusion 

in the BASIC system. 

The NFA is authorized to perform all 

functions specified herein until such 

time as the Commission orders 

otherwise. Nothing in this Notice and 

Order shall affect the Commission’s 

oversight authority of exchange 

disciplinary programs. The Commission 

is retaining all of its oversight authority, 

including its authority to review and to 

modify exchange disciplinary actions 

and to take enforcement or other 

remedial action against exchanges for 

noncompliance with § 9.11. The NFA 

may submit to the Commission for 

clarification any specific matters that 

have been delegated to it, and 

Commission staff will be available to 

discuss with NFA staff issues relating to 

implementation of this Notice and 

Order. 

Issued in Washington, DC, on January 9, 

2018, by the Commission. 

Christopher J. Kirkpatrick, 

Secretary of the Commission. 

Appendix to Performance of Certain 

Functions by the National Futures 

Association With Respect to Regulation 

9.11—Commission Voting Summary 

On this matter, Chairman Giancarlo and 

Commissioners Quintenz and Behnam voted 

in the affirmative. No Commissioner voted in 

the negative. 

[FR Doc. 2018–00468 Filed 1–11–18; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 250 and 385 

[Docket No. RM18–4–000; Order No. 839] 

Civil Monetary Penalty Inflation 

Adjustments 

AGENCY: Federal Energy Regulatory 

Commission. 

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 12, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Todd Hettenbach, Attorney, Office of 

Enforcement, Federal Energy Regulatory 

Commission, 888 First Street NE, 

Washington, DC 20426, (202) 502–8794 

Todd.Hettenbach@ferc.gov. 

SUPPLEMENTARY INFORMATION: 

Order No. 839 

Final Rule 

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. 

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 


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Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 1551 

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. (1988). 

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

10See, e.g., Memorandum from Mick Mulvaney, 

Office of Management and Budget, Implementation 

of the Penalty Inflation Adjustments for 2018, 

Pursuant to the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 2015, 1 (Dec. 

15, 2017). 

11 Id. (5)(a). 

12 Id. 

13 Id. (6). 

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

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

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

17 44 U.S.C. 3507(d). 

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 2017 exceeded the 

CPI–U for October 2016 by 2.041 

percent.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.

$1,213,503 per violation, per day .................... $1,238,271 per violation, per day. 

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

Sec. 31(c) of the Federal Power Act ..................

$21,916 per violation, per day ......................... $22,363 per violation, per day. 

16 U.S.C. 825n(a), .............................................

Sec. 315(a) of the Federal Power Act ...............

$2,795 per violation ......................................... $2,852 per violation. 

15 U.S.C. 717t–1, ...............................................

Sec. 22 of the Natural Gas Act ..........................

$1,213,503 per violation, per day .................... $1,238,271 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.

$1,213,503 per violation, per day .................... $1,238,271 per violation, per day. 

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

Interstate Commerce Act.

$1,270 per offense and $64 per day after the 

first day.

$1,296 per offense and $65 per day after the 

first day. 

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

Interstate Commerce Act.

$12,705 per violation, per day ......................... $12,964 per violation, per day. 

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

the Interstate Commerce Act.

$1,270 per offense, per day ............................ $1,296 per offense, per day. 

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

of the Interstate Commerce Act.

$1,270 per offense, per day ............................ $1,296 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 

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) and in the Commission’s 

Public Reference Room during normal 

business hours (8:30 a.m. to 5:00 p.m. 

Eastern time) at 888 First Street NE, 

Room 2A, Washington DC 20426. 

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. 


sradovich on DSK3GMQ082PROD with RULES
1552 Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Rules and Regulations 

18 5 U.S.C. 553(d)(3). 

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 Administrative 

Procedure Act,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 8, 2018. 

Kimberly D. Bose, 

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. Amend § 250.16 by revising 

paragraph (e)(1) to read as follows: 

§ 250.16 Format of compliance plan 

transportation services and affiliate 

transactions. 

* * * * * 

(e) * * * (1) Any person who 

transports gas for others pursuant to 

subparts B or G of part 284 of this 

chapter and who knowingly violates the 

requirements of §§ 358.4 and 358.5, 

§ 250.16, 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 $1,238,271 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 $22,363 

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: $1,238,271. 

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

Act: $22,363 per day. 

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

Act: $2,852. 

(d) 16 U.S.C. 825o–1(b), Federal 

Power Act: $1,238,271 per day. 

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

$1,238,271 per day. 

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

Interstate Commerce Act: $1,296 per 

offense and $65 per day after the first 

day. 

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

Interstate Commerce Act: $12,964 per 

day. 

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

Interstate Commerce Act: $1,296 per 

day. 

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

Interstate Commerce Act: $1,296 per 

day. 

[FR Doc. 2018–00415 Filed 1–11–18; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 16 

[Docket No. TTB–2018–0002; Notice No. 

171] 

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 $20,111, with each day 

constituting a separate offense. This 

document announces that this 

maximum penalty is being increased to 

$20,521. 

DATES: The new maximum civil penalty 

for violations of the ABLA takes effect 

on January 12, 2018 and applies to 

penalties that are assessed after that 

date. 

FOR FURTHER INFORMATION CONTACT: Rita 

D. Butler, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street NW, Box 

12, Washington, DC 20005; (202) 453– 

1039, ext. 101. 

SUPPLEMENTARY INFORMATION: 

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 


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