1902 Federal Register / Vol. 90, No. 6 / Friday, January 10, 2025 / Rules and Regulations 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Parts 36 and 42 

RIN 2900–AS26 

Federal Civil Penalties Inflation 

Adjustment Act Amendments 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is amending its regulations 

to adjust for inflation the amount of 

civil monetary penalties that are within 

VA’s jurisdiction. These adjustments 

comply with the requirement in the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended by 

the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015, to make annual adjustments to the 

penalties. 

DATES: This rule is effective January 10, 

2025. 

FOR FURTHER INFORMATION CONTACT: 

Stephanie Li, Assistant Director, 

Regulations, Legislation, Engagement, 

and Training, Loan Guaranty Service 

(26), Veterans Benefits Administration, 

Department of Veterans Affairs, 810 

Vermont Avenue NW, Washington, DC 

20420, 202–632–8862. (This is not a 

toll-free number.) 

SUPPLEMENTARY INFORMATION: On 

November 2, 2015, the President signed 

into law the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (2015 Act) (Pub. L. 114–74, 

section 701, 129 Stat. 584, 599–600), 

which amended the Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (Pub. L. 101–410, section 5, 104 

Stat. 890, 891–892), to improve the 

effectiveness of civil monetary penalties 

and to maintain their deterrent effect. 

The amended statute, codified in a note 

following 28 U.S.C. 2461, requires 

agencies to publish annual adjustments 

for inflation based on the percentage 

change between the Consumer Price 

Index (defined in the statute as the 

Consumer Price Index for all-urban 

consumers (CPI–U) published by the 

Department of Labor) for the month of 

October preceding the date of the 

adjustment and the prior year’s October 

CPI–U. 28 U.S.C. 2461 note, sections 

4(a) and (b) and 5(b)(1). This rule 

implements the 2025 calendar year 

inflation adjustment amounts. 

Under 38 U.S.C. 3710(g)(4)(B), VA is 

authorized to levy civil monetary 

penalties against private lenders that 

originate VA-guaranteed loans if a 

lender falsely certifies that they have 

complied with certain credit 

information and loan processing 

standards as set forth by 38 U.S.C. Ch. 

37 and 38 CFR part 36. Under section 

3710(g)(4)(B), any lender who 

knowingly and willfully makes such a 

false certification shall be liable to the 

United States Government for a civil 

penalty equal to two times the amount 

of the Secretary’s loss on the loan 

involved or to another appropriate 

amount, not to exceed $10,000, 

whichever is greater. VA implemented 

the penalty amount in 38 CFR 

36.4340(k)(1)(i) and (k)(3). On December 

17, 2024, the Office of Management and 

Budget (OMB) issued OMB Circular M– 

25–02. This circular reflects that the 

October 2023 CPI–U was 307.671 and 

the October 2024 CPI–U was 315.664, 

resulting in an inflation adjustment 

multiplier of 1.02598. Accordingly, the 

calendar year 2025 inflation revision 

imposes an adjustment from $27,894 to 

$28,619. 

Under 31 U.S.C. 3802, VA can impose 

monetary penalties against any person 

who makes, presents, or submits a claim 

or written statement to VA that the 

person knows or has reason to know is 

false, fictitious, or fraudulent, or who 

engages in other covered conduct. The 

statute permits, in addition to any other 

remedy that may be prescribed by law, 

a civil penalty of not more than $5,000 

for each claim. 31 U.S.C. 3802(a)(1) and 

(2). VA implemented the penalty 

amount in 38 CFR 42.3(a)(1)(iv) and 

(b)(1)(ii). As previously noted, OMB 

Circular M–25–02 reflects an inflation 

adjustment multiplier of 1.02598. 

Therefore, the calendar year 2025 

inflation revision imposes an 

adjustment from $13,946 to $14,308. 

Accordingly, VA is revising 38 CFR 

36.4340(k)(1)(i) and (3) and 38 CFR 

42.3(a)(1)(iv) and (b)(1)(ii) to reflect the 

2025 inflationary adjustments for civil 

monetary penalties assessed or enforced 

by VA. 

Administrative Procedure Act 

The Secretary of Veterans Affairs 

finds that there is good cause under 5 

U.S.C. 553(b)(B) and (d)(3) to publish 

this rule without prior opportunity for 

public comment and to publish this rule 

with an immediate effective date. The 

statute requires agencies to make annual 

adjustments for inflation to the allowed 

amounts of civil monetary penalties 

‘‘notwithstanding section 553 of title 5, 

United States Code.’’ 28 U.S.C. 2461 

note, sections 4(a) and (b). The penalty 

adjustments, and the methodology used 

to determine the adjustments, are set by 

the terms of the statute. VA has no 

discretion to make changes in those 

areas. Therefore, an opportunity for 

prior notice and public comment and a 

delayed effective date are unnecessary. 

Executive Orders 12866, 13563, and 

14094 

Executive Order 12866 (Regulatory 

Planning and Review) directs agencies 

to assess the costs and benefits of 

available regulatory alternatives and, 

when regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

14094 (Executive Order on Modernizing 

Regulatory Review) supplements and 

reaffirms the principles, structures, and 

definitions governing contemporary 

regulatory review established in 

Executive Order 12866 of September 30, 

1993 (Regulatory Planning and Review), 

and Executive Order 13563 of January 

18, 2011 (Improving Regulation and 

Regulatory Review). The Office of 

Information and Regulatory Affairs has 

determined that this rulemaking is not 

a significant regulatory action under 

Executive Order 12866, as amended by 

Executive Order 14094. The Regulatory 

Impact Analysis associated with this 

rulemaking can be found as a 

supporting document at 

www.regulations.gov. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act, 5 

U.S.C. 601 through 612, is not 

applicable to this rulemaking because 

notice of proposed rulemaking is not 

required. 5 U.S.C. 601(2), 603(a), and 

604(a). 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by state, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This final rule will have no 

such effect on state, local, and tribal 

governments, or on the private sector. 

Paperwork Reduction Act 

This final rule contains no provisions 

constituting a collection of information 

under the Paperwork Reduction Act of 

1995 (44 U.S.C. 3501–3521). 


khammond on DSK9W7S144PROD with RULES
Federal Register / Vol. 90, No. 6 / Friday, January 10, 2025 / Rules and Regulations 1903 

Congressional Review Act 

Pursuant to Subtitle E of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (known as the 

Congressional Review Act) (5 U.S.C. 801 

et seq.), the Office of Information and 

Regulatory Affairs designated this rule 

as not satisfying the criteria under 5 

U.S.C. 804(2). 

List of Subjects 

38 CFR Part 36 

Condominiums, housing, individuals 

with disabilities, loan programs— 

housing and community development, 

loan programs—Veterans, manufactured 

homes, mortgage insurance, reporting 

and recordkeeping requirements, 

Veterans. 

38 CFR Part 42 

Administrative practice and 

procedure, claims, fraud, penalties. 

Signing Authority 

Denis McDonough, Secretary of 

Veterans Affairs, approved and signed 

this document on December 31, 2024, 

and authorized the undersigned to sign 

and submit the document to the Office 

of the Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. 

Consuela Benjamin, 

Regulation Development Coordinator, Office 

of Regulation Policy & Management, Office 

of General Counsel, Department of Veterans 

Affairs. 

For the reasons stated in the 

preamble, the Department of Veterans 

Affairs amends 38 CFR parts 36 and 42 

as set forth below: 

PART 36—LOAN GUARANTY 

■ 1. The authority citation for part 36 

continues to read as follows: 

Authority: 38 U.S.C. 501 and 3720. 

§ 36.4340 [Amended] 

■ 2. In § 36.4340, amend paragraphs 

(k)(1)(i) introductory text and (k)(3) by 

removing ‘‘$27,894’’ and adding in its 

place ‘‘$28,619’’. 

PART 42—STANDARDS 

IMPLEMENTING THE PROGRAM 

FRAUD CIVIL REMEDIES ACT 

■ 3. The authority citation for part 42 

continues to read as follows: 

Authority: Pub. L. 99–509, secs. 6101– 

6104, 100 Stat. 1874, codified at 31 U.S.C. 

3801–3812. 

§ 42.3 [Amended] 

■ 4. In § 42.3, amend paragraphs 

(a)(1)(iv) and (b)(1)(ii) by removing 

‘‘$13,946’’ and adding in its place 

‘‘$14,308’’. 

[FR Doc. 2025–00094 Filed 1–8–25; 8:45 am] 

BILLING CODE 8320–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–HQ–OAR–2021–0863; EPA–R03– 

OAR–2023–0179; FRL–12161–03–OAR] 

RIN 2060–AW38 

Excess Emissions During Periods of 

Startup, Shutdown, and Malfunction; 

Partial Withdrawals of Findings of 

Failure To Submit State 

Implementation Plan (SIP) 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Direct final rule; withdrawal. 

SUMMARY: Due to the receipt of adverse 

comment, the Environmental Protection 

Agency (EPA) is withdrawing the 

November 26, 2024, direct final rule to 

partially withdraw two final actions 

finding that 13 States and/or local air 

pollution control agencies failed to 

submit State Implementation Plan (SIP) 

revisions required by the Clean Air Act 

(CAA) in a timely manner to address the 

EPA’s 2015 findings of substantial 

inadequacy and ‘‘SIP calls’’ for 

provisions applying to excess emissions 

during periods of startup, shutdown, 

and malfunction (SSM). The EPA will 

address all comments received in a 

subsequent final rule for which the EPA 

will not institute a second comment 

period. 

DATES: Effective January 10, 2025, the 

EPA withdraws the direct final rule 

published at 89 FR 93187 on November 

26, 2024. 

FOR FURTHER INFORMATION CONTACT: 

General questions concerning this 

document should be addressed to, 

Sydney Lawrence, Office of Air Quality 

Planning and Standards, Air Quality 

Policy Division, 109 T.W. Alexander 

Drive, Research Triangle Park, NC 

27711; by telephone (919) 541–4768; or 

by email at lawrence.sydney@epa.gov. 

SUPPLEMENTARY INFORMATION: On 

November 26, 2024, the EPA published 

a direct final rule (89 FR 93187) to 

partially withdraw two final actions 

finding that 13 States and/or local air 

pollution control agencies failed to 

submit SIP revisions required by the 

CAA to address the EPA’s 2015 findings 

of substantial inadequacy and ‘‘SIP 

calls’’ for provisions applying to excess 

emissions during periods of SSM. In the 

proposal for the direct final rule 

published on the same day (89 FR 

93243), the EPA stated that written 

comments must be received on or before 

December 26, 2024. The EPA stated that 

if any relevant adverse comments are 

received on the proposal, the EPA will 

publish a timely withdrawal of the 

direct final rule in the Federal Register. 

On December 22, 2024, an adverse 

comment dated December 18, 2024, was 

posted in the docket that the EPA 

interprets as relevant and adverse. 

Therefore, the EPA is withdrawing the 

direct final rule and will publish a 

subsequent final rule wherein the EPA 

will address all comments received. The 

EPA will not institute a second 

comment period on the subsequent final 

rule. 

List of Subjects in 40 CFR Part 52 

Environmental protection, 

Administrative practice and procedure, 

Air pollution control, Approval and 

promulgation of implementation plans, 

Incorporation by reference, 

Intergovernmental relations, and 

Reporting and recordkeeping 

requirements. 

Joesph Goffman, 

Assistant Administrator. 

[FR Doc. 2025–00433 Filed 1–8–25; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2024–0349; FRL–12130– 

02–R9] 

Air Plan Revisions; Arizona; Maricopa 

County Air Quality Department 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is finalizing a limited 

approval and limited disapproval of 

revisions to the Maricopa County Air 

Quality Department (MCAQD or 

‘‘County’’) portion of the Arizona State 

Implementation Plan (SIP). These 

revisions concern emissions of volatile 

organic compounds (VOCs) from 

loading of organic liquids and gasoline. 

Under the authority of the Clean Air Act 

(CAA or ‘‘Act’’), this action 

simultaneously approves local rules that 

regulate these emission sources and 

directs Arizona to correct rule 

deficiencies. We are also finalizing a 

disapproval of MCAQD’s reasonably 

available control technology (RACT) 

demonstration for the source categories 


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