28756 Federal Register / Vol. 87, No. 91 / Wednesday, May 11, 2022 / Rules and Regulations 

PART 430—ENERGY CONSERVATION 

PROGRAM FOR CONSUMER 

PRODUCTS 

■ 1. The authority citation for part 430 

continues to read as follows: 

Authority: 42 U.S.C. 6291–6309; 28 U.S.C. 

2461 note. 

■ 2. Appendix Y to subpart B of part 430 

is amended by revising section 4.2.1(a) 

to read as follows: 

Appendix Y to Subpart B of Part 430— 

Uniform Test Method for Measuring the 

Energy Consumption of Battery 

Chargers 

* * * * * 

4.2. * * * 

4.2.1. * * * 

* * * * * 

(a) UPS Operating Mode Conditions. If the 

UPS can operate in two or more distinct 

normal modes as more than one UPS 

architecture, conduct the test in its lowest 

input dependency as well as in its highest 

input dependency mode where VFD 

represents the highest possible input 

dependency, followed by VI and then VFI. 

* * * * * 

[FR Doc. 2022–10083 Filed 5–10–22; 8:45 am] 

BILLING CODE 6450–01–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Parts 107, 120, 142, and 146 

RIN 3245–AH81 

Civil Monetary Penalties Inflation 

Adjustments 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Final rule. 

SUMMARY: The Small Business 

Administration (SBA) is amending its 

regulations to adjust for inflation the 

amount of certain civil monetary 

penalties that are within the jurisdiction 

of the agency. 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 May 11, 

2022. 

FOR FURTHER INFORMATION CONTACT: 

Arlene Embrey, 202–205–6976 or at 

arlene.embrey@sba.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On November 2, 2015, the Federal 

Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015 (the 2015 

Inflation Adjustment Act), Public Law 

114–74, 129 Stat. 584, was enacted. This 

act amended the Federal Civil Penalties 

Inflation Adjustment Act of 1990, Public 

Law 101–410, 104 Stat. 890 (the 1990 

Inflation Adjustment Act), to improve 

the effectiveness of civil monetary 

penalties and to maintain their deterrent 

effect. The 2015 Inflation Adjustment 

Act required agencies to issue a final 

rule by August 1, 2016, to adjust the 

level of civil monetary penalties with an 

initial ‘‘catch-up’’ adjustment and to 

annually adjust these monetary 

penalties for inflation by January 15 of 

each subsequent year. 

Based on the definition of a ‘‘civil 

monetary penalty’’ in the 1990 Inflation 

Adjustment Act, agencies are to make 

adjustments only to the civil penalties 

that (i) are for a specific monetary 

amount as provided by federal law or 

have a maximum amount provided for 

by federal law; (ii) are assessed or 

enforced by an agency; and (iii) are 

enforced or assessed in an 

administrative proceeding or a civil 

action in the Federal courts. Therefore, 

penalties that are stated as a percentage 

of an indeterminate amount or as a 

function of a violation (penalties that 

encompass actual damages incurred) are 

not to be adjusted. 

SBA published in the Federal 

Register an interim final rule with its 

initial adjustments to the civil monetary 

penalties, including an initial ‘‘catchup’’ adjustment, on May 19, 2016, (81 

FR 31489) with an effective date of 

August 1, 2016. SBA published its first 

annual adjustments to the monetary 

penalties on February 9, 2017 (82 FR 

9967), with an immediate effective date. 

SBA published its subsequent annual 

adjustments for 2018 on February 21, 

2018 (83 FR 7361), for 2019 on April 1, 

2019 (84 FR 12059), for 2020 on March 

10, 2020 (85 FR 13725), and for 2021 on 

September 24, 2021 (86 FR 52955), all 

with immediate effective dates. This 

rule will establish the adjusted penalty 

amounts for 2022 with an immediate 

effective date upon publication. 

On December 15, 2021, the Office of 

Management and Budget (OMB) 

published its annual guidance 

memorandum for 2022 civil monetary 

penalties inflation adjustments (M–22– 

07, Implementation of Penalty Inflation 

Adjustments for 2022, Pursuant to the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015). The memorandum provides the 

formula for calculating the annual 

adjustments based on the Consumer 

Price Index for all Urban Consumers 

(CPI–U) for the month of October 

preceding the adjustment, and 

specifically on the change between the 

October CPI–U preceding the date of 

adjustment and the prior year’s CPI–U. 

Based on this methodology, the 2022 

civil monetary penalty inflation 

adjustment factor is 1.06222 (October 

2021 CPI–U (276.589)/October 2020 

CPI–U (260.388). The annual adjustment 

amounts identified in this rule were 

obtained by applying this multiplier of 

1.06222 to those penalty amounts that 

were published in SBA’s 2021 

adjustments to civil monetary penalties 

at 86 FR 52955 (September 24, 2021). 

II. Civil Money Penalties Adjusted by 

This Rule 

This rule adjusts civil monetary 

penalties authorized by the Small 

Business Act, the Small Business 

Investment Act of 1958 (SBIAct), the 

Program Fraud Civil Remedies Act, and 

the Byrd Amendment to the Federal 

Regulation of Lobbying Act. These 

penalties and the implementing 

regulations are discussed below. 

1. 13 CFR 107.665—Civil Penalties 

SBA licenses, regulates, and provides 

financial assistance to financial entities 

called small business investment 

companies (SBICs). Pursuant to section 

315 of the SBIAct, 15 U.S.C. 687g, SBA 

may impose a penalty on any SBIC for 

each day that it fails to comply with 

SBA’s regulations or directives 

governing the filing of regular or special 

reports. The penalty for non-compliance 

is incorporated in § 107.665 of the SBIC 

program regulations. 

This rule amends § 107.665 to adjust 

the current civil penalty from $274 to 

$291 per day of failure to file. The 

current civil penalty of $274 was 

multiplied by the multiplier of 1.06222 

to reach a product of $291, rounded to 

the nearest dollar. 

2. 13 CFR 120.465—Civil Penalty for 

Late Submission of Required Reports 

According to the regulations at 

§ 120.465, any SBA Supervised Lender, 

as defined in 13 CFR 120.10, that 

violates a regulation or written directive 

issued by the SBA Administrator 

regarding the filing of any regular or 

special report is subject to the civil 

penalty amount stated in § 120.465(b) 

for each day the company fails to file 

the report, unless the SBA Supervised 

Lender can show that there is 

reasonable cause for its failure to file. 

This penalty is authorized by section 

23(j)(1) of the Small Business Act, 15 

U.S.C. 650(j)(1). 

This rule amends § 120.465(b) to 

adjust the current civil penalty to $7,244 

per day of failure to file from $6,820 per 

day of failure to file. The current civil 


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Federal Register / Vol. 87, No. 91 / Wednesday, May 11, 2022 / Rules and Regulations 28757 

penalty of $6,820 was multiplied by the 

multiplier of 1.06222 to reach a product 

of $7,244, rounded to the nearest dollar. 

3. 13 CFR 120.1500—Types of Formal 

Enforcement Actions—SBA Lenders 

According to the regulations at 

§ 120.1500(b), SBA may assess a civil 

monetary penalty against a 7(a) Lender. 

In determining whether to assess a civil 

monetary penalty and, if so, in what 

amount, SBA may consider: The gravity 

(e.g., severity and frequency) of the 

violation; the history of previous 

violations; the financial resources and 

good faith of the 7(a) Lender; and any 

other matters as justice may require. 

This penalty is authorized by the Small 

Business Act, 15 U.S.C. 657t(e)(2)(B). 

This rule amends § 120.1500(b)(2) to 

adjust the current civil penalty from 

$252,955 to $268,694. The current civil 

penalty of $252,955 was multiplied by 

the multiplier of 1.06222 to reach a 

product of $268,694, rounded to the 

nearest dollar. 

4. 13 CFR 142.1—Overview of 

Regulations 

SBA has promulgated regulations at 

13 CFR part 142 to implement the civil 

penalties authorized by the Program 

Fraud Civil Remedies Act of 1986 

(PFCRA), 31 U.S.C. 3801–3812. Under 

the current regulation at 13 CFR 

142.1(b), a person who submits, or 

causes to be submitted, a false claim or 

a false statement to SBA is subject to a 

civil penalty of not more than $11,803, 

for each statement or claim. 

This rule amends § 142.1(b) to adjust 

the current civil penalty from $11,803 to 

$12,537. The adjusted civil penalty 

amount was calculated by multiplying 

the current civil penalty of $11,803 by 

the multiplier of 1.06222 to reach a 

product of $12,537, rounded to the 

nearest dollar. 

5. 13 CFR 146.400—Penalties 

SBA’s regulations at 13 CFR part 146 

govern lobbying activities by recipients 

of federal financial assistance. These 

regulations implement the authority in 

31 U.S.C. 1352 and impose penalties on 

any recipient that fails to comply with 

certain requirements in the part. 

Specifically, under § 146.400(a) and (b), 

penalties may be imposed on those who 

make prohibited expenditures or fail to 

file the required disclosure forms or to 

amend such forms, if necessary. 

This rule amends § 146.400(a) and (b) 

to adjust the current civil penalty 

amounts to ‘‘not less than $22,021 and 

not more than $220,209.’’ The current 

civil penalty amounts of $20,731 and 

$207,314 were multiplied by the 

multiplier of 1.06222 to reach a product 

of $22,021 and $220,213, respectively, 

rounded to the nearest dollar. 

This rule also amends § 146.400(e) to 

adjust the civil penalty that may be 

imposed for a first-time violation of 

§ 146.400(a) and (b) to $22,021 and to 

adjust the civil penalty that may be 

imposed for second and subsequent 

offenses to ‘‘not less than $22,021 and 

not more than $220,213.’’ The current 

civil penalty amounts of $20,731 and 

$207,314 were multiplied by the 

multiplier of 1.06222 to reach a product 

of $22,021 and $220,213 respectively, 

rounded to the nearest dollar. 

Compliance With Executive Orders 

12866, 12988, 13132, and the 

Administrative Procedure Act (5 U.S.C. 

553), the Congressional Review Act (5 

U.S.C. 801–808), the Paperwork 

Reduction Act (44 U.S.C. Ch. 35) and 

the Regulatory Flexibility Act (5 U.S.C. 

601–612) 

Executive Order 12866 

The Office of Management and Budget 

has determined that this final rule is not 

a significant regulatory action under 

Executive Order 12866. 

Executive Order 12988 

This action meets applicable 

standards set forth in sections 3(a) and 

3(b)(2) of Executive Order 12988, Civil 

Justice Reform, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. The action does not have 

retroactive or preemptive effect. 

Executive Order 13132 

For the purpose of Executive Order 

13132, SBA determined that the rule 

will not have substantial direct effects 

on the States, on the relationship 

between the national government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government. Therefore, 

this final rule has no federalism 

implications warranting preparation of a 

federalism assessment. 

The Administrative Procedure Act 

(APA) 

The APA requires agencies generally 

to provide notice and an opportunity for 

public comment before adopting a rule 

unless the agency for good cause finds 

that notice and comment are 

impracticable, unnecessary, or contrary 

to the public interest. 5 U.S.C. 553(b). 

The APA also requires agencies to allow 

at least 30-days after publication for a 

final rule to become effective ‘‘except as 

otherwise provided by the agency for 

good cause found and published with 

the rule.’’ 5 U.S.C. 553(d). For the 

following reasons prior public notice, an 

opportunity for public comment, and a 

delayed effective date are not required 

for this rule. The 2015 Inflation 

Adjustment Act directs agencies to 

adjust their civil penalties annually 

notwithstanding section 553 of the APA. 

28 U.S.C. 2461 note, sec. 4(b)(2). 

This exemption from the notice and 

comment, and delayed effective date 

requirements of the APA, in effect 

provides SBA with the good cause 

justification to promulgate this as a final 

rule that will become effective 

immediately on the date it is published 

in the Federal Register. Additionally, 

the 2015 Inflation Adjustment Act 

provides a non-discretionary cost-ofliving formula for making the annual 

adjustment to the civil monetary 

penalties; SBA merely performs the 

ministerial task of calculating the 

amount of the adjustments. Therefore, 

even without the statutory exemption 

from the APA, notice and comment 

would be unnecessary. 

The Congressional Review Act (CRA) 

The Office of Management and Budget 

determined that this rule is not a major 

rule under 5 U.S.C. 804(2). 

Paperwork Reduction Act 

SBA has determined that this rule 

does not impose additional reporting or 

recordkeeping requirements. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

requires agencies to consider the effect 

of their regulatory actions on small 

entities, including small non-profit 

businesses, and small local 

governments. Pursuant to the RFA, 

when an agency issues a rule, the 

agency must prepare an analysis that 

describes whether the impact of the rule 

will have a significant economic impact 

on a substantial number of such small 

entities. However, the RFA requires 

such analysis only where notice and 

comment rulemaking are required. As 

stated above, SBA has express statutory 

authority to issue this rule without 

regard to the notice and comment 

requirement of the APA. Since notice 

and comment is not required before this 

rule is issued, SBA is not required to 

prepare a regulatory analysis. 

List of Subjects 

13 CFR Part 107 

Investment companies, Loan 

programs-business, Reporting and 

recordkeeping requirements, Small 

businesses. 

13 CFR Part 120 

Loan programs-business, Reporting 

and recordkeeping requirements, Small 

businesses. 


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28758 Federal Register / Vol. 87, No. 91 / Wednesday, May 11, 2022 / Rules and Regulations 

13 CFR Part 142 

Administrative practice and 

procedure, Claims, Fraud, Penalties. 

13 CFR Part 146 

Government contracts, Grant 

programs, Loan programs, Lobbying, 

Penalties, Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, SBA amends 13 CFR parts 

107, 120, 142, and 146 as follows: 

PART 107—SMALL BUSINESS 

INVESTMENT COMPANIES 

■ 1. The authority citation for part 107 

continues to read as follows: 

Authority: 15 U.S.C. 681, 683, 687(c), 687b, 

687d, 687g, 687m. 

§ 107.665 [Amended] 

■ 2. Amend § 107.665 by removing 

‘‘$274’’ and add in its place ‘‘$291’’. 

PART 120—BUSINESS LOANS 

■ 3. The authority citation for part 120 

continues to read as follows: 

Authority: 15 U.S.C. 634(b)(6), (b)(7), 

(b)(14), (h), and note, 636(a), (h), and (m), 

636m, 650, 687(f), 696(3), 697, 697a, and 

697e; Public Law 111–5, 123 Stat. 115; Public 

Law 111–240, 124 Stat. 2504; Public Law 

116–260, 134 Stat. 1182. 

§ 120.465 [Amended] 

■ 4. In § 120.465, amend paragraph (b) 

by removing ‘‘$6,820’’ and adding in its 

place ‘‘$7,244’’. 

§ 120.1500 [Amended] 

■ 5. In § 120.1500, amend paragraph 

(b)(2) by removing ‘‘$252,955’’ and 

adding in its place ‘‘268,694’’. 

PART 142—PROGRAM FRAUD CIVIL 

REMEDIES ACT REGULATIONS 

■ 6. The authority citation for part 142 

continues to read as follows: 

Authority: 15 U.S.C. 634(b); 31 U.S.C. 

3803(g)(2). 

§ 142.1 [Amended] 

■ 7. In § 142.1, amend paragraph (b) by 

removing ‘‘$11,803’’ and adding in its 

place ‘‘$12,537’’. 

PART 146—NEW RESTRICTIONS ON 

LOBBYING 

■ 8. The authority citation for part 146 

is revised to read as follows: 

Authority: 31 U.S.C. 1352 and 15 U.S.C. 

634(b)(6). 

§ 146.400 [Amended] 

■ 9. Amend § 146.400 by removing 

‘‘$20,731’’ wherever it appears and 

adding in its place ‘‘$22,021’’ and by 

removing ‘‘$207,314’’ wherever it 

appears and adding in its place 

‘‘$220,213’’. 

Isabella Casillas Guzman, 

Administrator. 

[FR Doc. 2022–10080 Filed 5–10–22; 8:45 am] 

BILLING CODE 8026–03–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 746 

[Docket No. 220505–0111] 

RIN 0694–AI87 

Expansion of Sanctions Against 

Russian Industry Sectors Under the 

Export Administration Regulations 

(EAR) 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Final rule. 

SUMMARY: In response to the Russian 

Federation’s (Russia’s) ongoing 

aggression against Ukraine, the 

Department of Commerce is expanding 

the existing sanctions against Russian 

industry sectors by imposing a license 

requirement for exports, reexports, or 

transfers (in-country) to and within 

Russia for additional items subject to 

the Export Administration Regulations 

(EAR) identified under specific 

Schedule B numbers or Harmonized 

Tariff Schedule codes. The Bureau of 

Industry and Security (BIS) is taking 

these actions to further restrict Russia’s 

ability to withstand the economic 

impact of the multilateral sanctions, 

further limit sources of revenue that 

could support Russia’s military 

capabilities, and to better align with the 

European Union’s controls. 

DATES: This rule is effective on May 9, 

2022. 

FOR FURTHER INFORMATION CONTACT: For 

questions on this final rule, contact 

Eileen Albanese, Director, Office of 

National Security and Technology 

Transfer Controls, Bureau of Industry 

and Security, Department of Commerce, 

Phone: (202) 482–0092, Fax: (202) 482– 

482–3355, Email: rpd2@bis.doc.gov. For 

emails, include ‘‘Russia Industry Sector 

Sanctions Expansion’’ in the subject 

line. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In response to Russia’s February 2022 

invasion of Ukraine, BIS imposed 

extensive sanctions on Russia under the 

Export Administration Regulations (15 

CFR parts 730–774) (EAR) as part of the 

final rule Implementation of Sanctions 

Against Russia Under the Export 

Administration Regulations (EAR) (the 

Russia Sanctions rule), effective on 

February 24, 2022, and published on 

March 3, 2022 (87 FR 12226). Since the 

publication of the Russia Sanctions rule, 

BIS has published a number of final 

rules imposing additional stringent 

export controls on Russia. These actions 

reflect the U.S. Government’s position 

that Russia’s invasion of Ukraine 

flagrantly violated international law, 

was contrary to U.S. national security 

and foreign policy interests, and 

undermined global order, peace, and 

security, all of which necessitated the 

imposition of stringent and expansive 

sanctions. 

The export control measures in this 

final rule build upon the policy 

objectives set forth in one of the 

subsequent rules, a final rule effective 

on March 3, 2022, and published on 

March 8, 2022 (87 FR 12856), Expansion 

of Sanctions Against the Russian 

Industry Sector Under the Export 

Administration Regulations (EAR) 

(Russian Industry Sector Sanctions 

rule). Among other things, the Russian 

Industry Sector Sanctions rule revised 

part 746 of the EAR (Embargoes and 

Other Special Controls) by adding a new 

paragraph (a)(1)(ii) which imposed an 

additional license requirement for 

exports, reexports, and transfers (incountry) to or within Russia of any 

items subject to the EAR if identified 

under certain Schedule B or 

Harmonized Tariff Schedule 6 (HTS) 

codes. The Russian Industry Sector 

Sanctions rule also added supplement 

no. 4 to part 746—HTS Codes and 

Schedule B Numbers that Require a 

License for Export, Reexport, and 

Transfer (in-country) to or within Russia 

pursuant to § 746.5(a)(1)(ii)—which 

identifies HTS codes and Schedule B 

numbers that are subject to the license 

requirement set forth in paragraph 

(a)(1)(ii). The four columns added in 

supplement no. 4 to part 746 consisted 

of: The Harmonized Tariff Schedule 

(HTS)–6 Code, HTS Description, 

Schedule B and Schedule B Description 

to assist exporters, reexporters, and 

transferors in identifying the items 

subject to this license requirement. 

This final rule builds upon the policy 

objectives set forth in the Russian 

Sanctions rule and the Russian Industry 

Sector Sanctions rule by expanding 

upon the latter to further restrict 

Russia’s access to items that it needs to 

support its military capabilities. The 

expansion of these export controls 

under the EAR, implemented in parallel 


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