Federal Register / Vol. 73, No. 185 / Tuesday, September 23, 2008 / Rules and Regulations 54671 

Dated: September 17, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E8–22146 Filed 9–22–08; 8:45 am] 

BILLING CODE 3410–02–P 

NUCLEAR REGULATORY 

COMMISSION 

10 CFR Parts 2 and 13 

RIN 3150–AI45 

[NRC–2008–0412] 

Adjustment of Civil Penalties for 

Inflation 

AGENCY: Nuclear Regulatory 

Commission. 

ACTION: Final rule. 

SUMMARY: The Nuclear Regulatory 

Commission (NRC) is amending its 

regulations to adjust the maximum Civil 

Monetary Penalties (CMPs) it can assess 

under statutes within the jurisdiction of 

the NRC. These changes were mandated 

by Congress in the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended by the Debt 

Collection Improvement Act of 1996. 

The NRC is amending its regulations to 

adjust the maximum CMP for a violation 

of the Atomic Energy Act of 1954, as 

amended, (AEA) or any regulation or 

order issued under the AEA from 

$130,000 to $140,000 per violation per 

day. Further, the provisions concerning 

program fraud civil penalties are being 

amended by adjusting the maximum 

CMP under the Program Fraud Civil 

Remedies Act from $6,000 to $7,000 for 

each false claim or statement. 

DATES: This rule is effective on October 

23, 2008. 

ADDRESSES: You can access publicly 

available documents related to this 

document using the following methods: 

Federal e-Rulemaking Portal: Go to 

http://www.regulations.gov and search 

for documents filed under Docket ID 

[NRC–2008–0412]. Address questions 

about NRC dockets to Carol Gallagher 

301–415–5905; e-mail 

Carol.Gallagher@nrc.gov. 

NRC’s Public Document Room (PDR): 

The public may examine and have 

copied for a fee publicly available 

documents at the NRC’s PDR, Public 

File Area O F21, One White Flint North, 

11555 Rockville Pike, Rockville, 

Maryland. 

NRC’s Agencywide Documents Access 

and Management System (ADAMS): 

Publicly available documents created or 

received at the NRC are available 

electronically at the NRC’s electronic 

Reading Room at http://www.nrc.gov/ 

reading-rm/adams.html. From this page, 

the public can gain entry into ADAMS, 

which provides text and image files of 

NRC’s public documents. If you do not 

have access to ADAMS or if there are 

problems in accessing the documents 

located in ADAMS, contact the NRC’s 

PDR reference staff at 1–899–397–4209, 

301–415–4737, or by e-mail to 

pdr.resource@nrc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Maxwell C. Smith, Office of the General 

Counsel, U.S. Nuclear Regulatory 

Commission, Washington, DC 20555– 

0001, telephone 301–415–1246, e-mail: 

maxwell.smith@nrc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

II. Discussion 

III. Procedural Background 

IV. Voluntary Consensus Standard 

V. Environmental Impact: Categorical 

Exclusion 

VI. Paperwork Reduction Act Statement 

VII. Regulatory Analysis 

VIII. Regulatory Flexibility Certification 

IX. Backfit Analysis 

X. Congressional Review Act 

I. Background 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended, 

requires that the head of each agency 

adjust by regulations the CMPs within 

the jurisdiction of the agency for 

inflation at least once every four years. 

The NRC’s last adjustment to the CMPs 

within its jurisdiction became effective 

on November 26, 2004. (October 26, 

2004; 69 FR 62393). 

The inflation adjustment is to be 

determined by increasing the maximum 

CMPs by the percentage that the 

Consumer Price Index (CPI) for the 

month of June of the calendar year 

preceding the adjustment exceeds the 

CPI for the month of June in the last 

calendar year in which the amount of 

the penalty was last adjusted. Applying 

this formula results in a 9.8 percent 

increase to the maximum CMPs for 

violations of the AEA. During the 2004 

inflation adjustment, the CMPs for 

violations of the Program Fraud Civil 

Remedies Act remained unchanged. 

Therefore, for this update the percentage 

change to CMPs for violations of the 

Program Fraud Civil Remedies Act is 

the change in the CPI from June 2000 

(the date it was last adjusted for 

inflation) until June 2007, which is a 

difference of 21 percent. In the case of 

penalties greater than $1,000, but less 

than or equal to $10,000, inflation 

adjustment increases are to be rounded 

to the nearest multiple of $1,000. 

Increases are to be rounded to the 

nearest multiple of $10,000 in the case 

of penalties greater than $100,000 but 

less than or equal to $200,000. 

II. Discussion 

Section 234 of the AEA limits civil 

penalties for violations of the Atomic 

Energy Act to $100,000 per day per 

violation. In 1996, under the Debt 

Collection Improvement Act (DCIA), the 

NRC adjusted this figure to $110,000. 

The DCIA also amended the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990 to require that the head of each 

agency adjust the CMPs within the 

jurisdiction of the agency for inflation at 

least once every four years. Therefore, in 

2000 the NRC adjusted the maximum 

CMPs to $120,000, and in 2004 the NRC 

adjusted the maximum CMPs to 

$130,000. The NRC is required to adjust 

the CMPS within its jurisdiction again 

this year. After this mandatory 

adjustment for inflation, the adjusted 

maximum CMP for a violation of the 

AEA or any regulation or order issued 

under the AEA will be $140,000 per day 

per violation (rounding the amount of 

the inflation adjustment increase, 9.8 

percent, to the nearest multiple of 

$10,000). Thus, the NRC is amending 

§ 2.205 to reflect a new maximum CMP 

under the AEA in the amount of 

$140,000 per day per violation. The 

amended maximum CMP applies only 

to violations that occur after the 

effective date of this final rule. 

Monetary penalties under the Program 

Fraud Civil Remedies Act, 31 U.S.C. 

3801 and 3802, and the NRC’s 

implementing regulations, § 13.3(a)(1) 

and (b)(1) are currently limited to 

$6,000. In 2004, when the NRC last 

adjusted CMPs for inflation, these 

penalties did not meet the statutory 

criteria to be changed because the 

inflation increase was not large enough. 

The NRC must adjust CMPs for the 

change in inflation since the last time 

the CMPs were adjusted. For the 

Program Fraud Civil Remedies Act 

CMPs, this means the change in the CPI 

since 2000; that difference is 21 percent. 

When this change is applied to 

§ 13.3(a)(1) and (b)(1) (and rounding to 

the nearest multiple of $1,000) the new 

penalty amount will be $7,000. Thus, 

the NRC is amending § 13.3(a)(1) and 

(b)(1) by increasing the maximum civil 

penalty for each false statement or claim 

under the Program Fraud Civil 

Remedies Act from $6,000 to $7,000. 

The amended CMP applies only to 

violations that occur after the effective 

date of this final rule. 

The Commission has no discretion to 

set alternative levels of adjusted civil 

penalties because the amount of 

inflation adjustment must be calculated 

by a formula established by statute. 


jlentini on PROD1PC65 with RULES
54672 Federal Register / Vol. 73, No. 185 / Tuesday, September 23, 2008 / Rules and Regulations 

Conforming changes to the NRC 

Enforcement Policy (NUREG–1600) will 

be made as part of the overall revisions 

to the Enforcement Policy currently 

taking place. (January 25, 2007; 72 FR 

3429). 

III. Procedural Background 

This final rule has been issued 

without prior public notice or 

opportunity for public comments. The 

Administrative Procedure Act (5 U.S.C. 

553(b)(B)) does not require an agency to 

use the public notice and comment 

process ‘‘when the agency for good 

cause finds (and incorporates the 

finding and a brief statement of reasons 

therefore in the rules issued) that notice 

and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest.’’ In this instance, 

the NRC finds, for good cause, that 

solicitation of public comment on this 

final rule is unnecessary and 

impractical. Congress has required the 

NRC to adjust the CMPs within NRC 

jurisdiction for inflation at least once 

every four years, and provided no 

discretion regarding the substance of the 

amendments. The NRC is required only 

to perform ministerial computations to 

determine the inflation adjustment to 

the CMPs. 

IV. 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 

using such a standard is inconsistent 

with applicable law or is otherwise 

impractical. There are no consensus 

standards that apply to the inflation 

adjustment requirements in this final 

rule. Thus, the provisions of the Act do 

not apply to this rulemaking. 

V. Environmental Impact: Categorical 

Exclusion 

The Commission has determined that 

this final rule is the type of action 

described as a categorical exclusion in 

10 CFR 51.22(c)(1) and (2). Therefore, 

neither an environmental impact 

statement nor an environmental 

assessment has been prepared for this 

final rule. 

VI. Paperwork Reduction Act 

Statement 

This final rule does not contain new 

or amended information collection 

requirements subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). 

Public Protection Notification 

The NRC may not conduct or sponsor, 

and a person is not required to respond 

to, a request for information or an 

information collection requirement 

unless the requesting document 

displays a currently valid OMB control 

number. 

VII. Regulatory Analysis 

This final rule adjusts for inflation the 

maximum civil penalties under the 

Atomic Energy Act of 1954, as amended, 

and under the Program Fraud Civil 

Remedies Act of 1986. The adjustments 

and the formula for determining the 

amount of the adjustment are mandated 

by Congress in the Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (Pub. L. 101–410, 104 Stat. 890), as 

amended by the Debt Collection 

Improvement Act of 1996, as amended 

(Pub. L. 104–134, 110 Stat. 1321–358, 

373, codified at 28 U.S.C. 2461 note). 

Congress passed that legislation on the 

basis of its findings that the power to 

impose monetary civil penalties is 

important to deterring violations of 

Federal law and furthering the policy 

goals of Federal laws and regulations. 

Congress has also found that inflation 

has diminished the impact of these 

penalties and their effect. The principal 

purposes of this legislation are to 

provide for adjustment of civil monetary 

penalties for inflation, maintain the 

deterrent effect of civil monetary 

penalties, and promote compliance with 

the law. Thus, these are anticipated 

impacts of implementation of the 

mandatory provisions of the legislation. 

Direct monetary impacts fall only upon 

licensees or other persons subjected to 

NRC enforcement or those licensees or 

persons subjected to liability under the 

provisions of the Program Fraud Civil 

Remedies Act of 1986 (31 U.S.C. 3801– 

3812) and the NRC’s implementing 

regulations (10 CFR Part 13). 

VIII. Regulatory Flexibility 

Certification 

As required by the Regulatory 

Flexibility Act of 1980, 5 U.S.C. 605(b), 

the Commission certifies that this final 

rule would not have a significant 

economic impact upon a substantial 

number of small entities. 

IX. Backfit Analysis 

The NRC has determined that these 

amendments do not involve any 

provision which would impose a backfit 

under the backfit rule, §§ 50.109, 70.76, 

72.62, 76.76; therefore, a backfit analysis 

need not be prepared. 

X. Congressional Review Act 

In accordance with the Congressional 

Review Act, the NRC has determined 

that this action is not a major rule and 

has verified this determination with the 

Office of Information and Regulatory 

Affairs of OMB. 

List of Subjects 

10 CFR Part 2 

Administrative practice and 

procedure, Antitrust, Byproduct 

material, Classified information, 

Environmental protection, Nuclear 

materials, Nuclear power plants and 

reactors, Penalties, Sex discrimination, 

Source material, Special nuclear 

material, Waste treatment and disposal. 

10 CFR Part 13 

Claims, Fraud, Organization and 

function (government agencies), 

Penalties. 

■ 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 adopting the following 

amendments to 10 CFR parts 2 and 13. 

PART 2—RULES OF PRACTICE FOR 

DOMESTIC LICENSING PROCEEDINGS 

AND ISSUANCE OF ORDERS 

■ 1. The authority citation for part 2 

continues to read as follows: 

Authority: Secs.161, 181, 68 Stat. 948, 953, 

as amended (42 U.S.C. 2201, 2231); sec. 191, 

as amended, Public Law 87–615, 76 Stat. 409 

(42 U.S.C. 2241); sec. 201, 88 Stat.1242, as 

amended (42 U.S.C. 5841); 5 U.S.C. 552; sec. 

1704, 112 Stat. 2750 (44 U.S.C. 3504 note). 

Section 2.101 also issued under secs. 53, 

62, 63, 81, 103, 104, 68 Stat. 930, 932, 933, 

935, 936, 937, 938, as amended (42 U.S.C. 

2073, 2092, 2093, 2111, 2133, 2134, 2135); 

sec. 114(f), Public Law 97–425, 96 Stat. 2213, 

as amended (42 U.S.C. 10143(f)); sec. 102, 

Public Law 91–190, 83 Stat. 853, as amended 

(42 U.S.C. 4332); sec. 301, 88 Stat. 1248 (42 

U.S.C. 5871). 

Sections 2.102, 2.103, 2.104, 2.105, 2.721 

also issued under secs. 102, 103, 104, 105, 

183i, 189, 68 Stat. 936, 937, 938, 954, 955, 

as amended (42 U.S.C. 2132, 2133, 2134, 

2135, 2233, 2239). Section 2.105 also issued 

under Public Law 97–415, 96 Stat. 2073 (42 

U.S.C. 2239). Sections 2.200–2.206 also 

issued under secs. 161 b, i, o, 182, 186, 234, 

68 Stat. 948–951, 955, 83 Stat. 444, as 

amended (42 U.S.C. 2201 (b), (i), (o), 2236, 

2282); sec. 206, 88 Stat 1246 (42 U.S.C. 5846). 

Section 2.205(j) also issued under Public Law 

101–410, 104 Stat. 90, as amended by section 

3100(s), Public Law 104–134, 110 Stat. 1321– 

373 (28 U.S.C. 2461 note). Subpart C also 

issued under sec. 189, 68 Stat. 955 (42 U.S.C. 

2239). Sections 2.600–2.606 also issued 

under sec. 102, Public Law 91–190, 83 Stat. 

853, as amended (42 U.S.C. 4332). Section 


jlentini on PROD1PC65 with RULES
Federal Register / Vol. 73, No. 185 / Tuesday, September 23, 2008 / Rules and Regulations 54673 

2.301 also issued under 5 U.S.C. 554. 

Sections 2.343, 2.346, 2.712 also issued 

under 5 U.S.C. 557. Section 2.340 also issued 

under secs. 135, 141, Public Law 97–425, 96 

Stat. 2232, 2241 (42 U.S.C. 10155, 10161). 

Section 2.390 also issued under sec. 103, 68 

Stat. 936, as amended (42 U.S.C. 2133) and 

5 U.S.C. 552. Sections 2.800 and 2.808 also 

issued under 5 U.S.C. 553. Section 2.809 also 

issued under 5 U.S.C. 553, and sec. 29, 

Public Law 85–256, 71 Stat. 579, as amended 

(42 U.S.C. 2039). Subpart K also issued under 

sec. 189, 68 Stat. 955 (42 U.S.C. 2239); sec. 

134, Public Law 97–425, 96 Stat. 2230 (42 

U.S.C. 10154). 

Subpart L also issued under sec. 189, 68 

Stat. 955 (42 U.S.C. 2239). Subpart M also 

issued under sec. 184 (42 U.S.C. 2234) and 

sec. 189, 68 Stat. 955 (42 U.S.C. 2239). 

Appendix A also issued under sec. 6, Public 

Law 91–550, 84 Stat. 1473 (42 U.S.C. 2135). 

■ 2. In § 2.205, paragraph (j) is revised 

to read as follows: 

§ 2.205 Civil penalties. 

* * * * * 

(j) Amount. A civil monetary penalty 

imposed under section 234 of the 

Atomic Energy Act of 1954, as amended, 

or any other statute within the 

jurisdiction of the Commission that 

provides for the imposition of a civil 

penalty in an amount equal to the 

amount set forth in Section 234, may 

not exceed $140,000 for each violation. 

If any violation is a continuing one, 

each day of such violation shall 

constitute a separate violation for the 

purposes of computing the applicable 

civil penalty. 

PART 13—PROGRAM FRAUD CIVIL 

REMEDIES 

■ 3. The authority citation for part 13 

continues to read as follows: 

Authority: Public Law 99–509, sec. 6101– 

6104, 100 Stat. 1874 (31 U.S.C. 3801–3812); 

sec. 1704, 112 Stat. 2750 (44 U.S.C. 3504 

note). Sections 13.13(a) and (b) also issued 

under section Public Law 101–410, 104 Stat. 

890, as amended by section 31001(s), Public 

Law 104–134, 110 Stat. 1321–373 (28 U.S.C. 

2461 note). 

■ 4. In § 13.3, paragraphs (a)(1)(iv) and 

(b)(1)(ii) are revised to read as follows: 

§ 13.3 Basis for civil penalties and 

assessments. 

(a) * * * 

(1) * * * 

(iv) Is for payment for the provision 

of property or services which the person 

has not provided as claimed, shall be 

subject, in addition to any other remedy 

that may be prescribed by law, to a civil 

penalty of not more than $7,000 for each 

such claim. 

* * * * * 

(b) * * * 

(1) * * * 

(ii) Contains or is accompanied by an 

express certification or affirmation of 

the truthfulness and accuracy of the 

contents of the statement, shall be 

subject, in addition to any other remedy 

that may be prescribed by law, to a civil 

penalty of not more than $7,000 for each 

such statement. 

* * * * * 

Dated at Rockville, Maryland, this 4th day 

of September 2008. 

For the Nuclear Regulatory Commission. 

Bruce S. Mallett, 

Acting Executive Director for Operations. 

[FR Doc. E8–22172 Filed 9–22–08; 8:45 am] 

BILLING CODE 7590–01–P 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Part 1231 

RIN 2590–AA08 

Golden Parachute Payments 

AGENCY: Federal Housing Finance 

Agency. 

ACTION: Correcting amendments. 

SUMMARY: The Federal Housing Finance 

Agency has determined, insofar as it 

relates to indemnification payments, to 

rescind that portion of the Interim Final 

Rule, published in the Federal Register 

on September 16, 2008 (73 FR 53356). 

That portion of the rule will be subject 

to a separate rulemaking, which will be 

published for public comment in the 

near term. Insofar as the Interim Final 

Rule addresses factors related to golden 

parachute payments, that portion of the 

rule remains effective and available for 

comment. This document corrects 

specific provisions in the rule referring 

to indemnification payments. 

DATES: Effective Date: September 23, 

2008. 

FOR FURTHER INFORMATION CONTACT: 

Alfred M. Pollard, General Counsel 

(OFHEO), telephone (202) 414–3788; or 

Christopher Curtis, General Counsel 

(FHFB), telephone (202) 408–2802 (not 

toll-free numbers), Federal Housing 

Finance Agency, Fourth Floor, 1700 G 

Street, NW., Washington, DC 20552. The 

telephone number for the 

Telecommunications Device for the Deaf 

is (800) 877–8339. 

Need for Correction 

As published on September 16, 2008, 

and on September 19, 2008, the interim 

final regulation contained clerical and 

other errors, which these amendments 

correct. 

List of Subjects in 12 CFR Part 1231 

Golden parachutes, Governmentsponsored enterprises. 

■ Accordingly, part 1231 of Title 12 

CFR Chapter XII is corrected by making 

the following correcting amendments: 

PART 1231—GOLDEN PARACHUTE 

PAYMENTS 

■ 1. The authority citation for part 1231 

continues to read as follows: 

Authority: 12 U.S.C. 4518(e). 

■ 2. Section 1231.1 is revised to read as 

follows: 

§ 1231.1 Purpose. 

The purpose of this part is to 

implement section 1318(e) of the Act by 

setting forth the standards that the 

Director will take into consideration in 

determining whether to limit or prohibit 

golden parachute payments to entityaffiliated parties. 

■ 3. Section 1231.5 is amended by 

revising the introductory text and 

paragraph (f) to read as follows: 

§ 1231.5 Factors to be taken into account. 

In determining whether to prohibit or 

limit any golden parachute payment, the 

Director shall consider the following 

factors— 

* * * * * 

(f) Any other factor the Director 

determines relevant to the facts and 

circumstances surrounding the golden 

parachute payment, including but not 

limited to negligence, gross negligence, 

neglect, willful misconduct, breach of 

fiduciary duty, and malfeasance on the 

part of an entity-affiliated party. 

Dated: September 18, 2008. 

James B. Lockhart III, 

Director, Federal Housing Finance Agency. 

[FR Doc. E8–22260 Filed 9–19–08; 11:15 am] 

BILLING CODE 8070–01–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 123 

RIN 3245–AF78 

Military Reservist Economic Injury 

Disaster Loans 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Direct final rule. 

SUMMARY: SBA makes economic injury 

disaster loans to small businesses that 

have been adversely affected by specific 

events. If a small business has an 

essential employee or owner who is a 

member of a reserve component of the 


jlentini on PROD1PC65 with RULES