Source: https://www.federalregister.gov/documents/2013/11/06/2013-26648/civil-monetary-penalty-inflation-adjustment-rule
Timestamp: 2016-09-29 20:29:17
Document Index: 240892730

Matched Legal Cases: ['art2', '§\u200919', '§\u200919', '§\u200919', '§\u200919', '§\u200919', '§\u200919', 'art3', '§\u200919', '§\u200919', 'art 19']

:: Civil Monetary Penalty Inflation Adjustment Rule
66643-66648
https://www.federalregister.gov/d/2013-26648
Pursuant to section 4 of the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. 2461 note, as amended by the DCIA, 31 U.S.C. 3701 note, each federal agency is required to issue regulations adjusting for inflation the statutory civil monetary penalties [1] (“civil penalties” or “penalties”) that can be imposed under the laws administered by that agency. The purpose of these adjustments is to Start Printed Page 66644maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes. The DCIA requires adjustments to be made at least once every four years following the initial adjustment. EPA's initial adjustment to each statutory civil penalty amount was published in the Federal Register on December 31, 1996 (61 FR 69360), and became effective on January 30, 1997 (“the 1996 Rule”). EPA's second adjustment to civil penalty amounts was published in the Federal Register on February 13, 2004 (69 FR 7121), and became effective on March 15, 2004 (“the 2004 Rule”). EPA's third adjustment to civil penalty amounts was published in the Federal Register on December 11, 2008 (73 FR 75340), as corrected in the Federal Register on January 7, 2009 (74 FR 626), and became effective on January 12, 2009 (“the 2008 Rule”).
1. Determine the Cost-of-Living Adjustment (COLA). The COLA is determined by calculating the percentage increase, if any, by which the Consumer Price Index [2] for all-urban consumers (CPI-U) for the month of June of the calendar year preceding the adjustment exceeds the CPI-U for the month of June of the calendar year in which the amount of such civil monetary penalty was last set or adjusted.[3] Accordingly, the COLA applied under this rule equals the percentage by which the CPI-U for June 2012 (i.e., June of the year preceding this year), exceeds the CPI-U for June of the year in which the amount of a specific penalty was last adjusted (i.e., 2008, 2004 or 1996, as the case may be). Given that the last inflation adjustment was published on December 11, 2008, the COLA for most civil penalties set forth in this rule was calculated by determining the percentage by which the CPI-U for June 2012 (229.478) exceeds the CPI-U for June 2008 (218.815), resulting in a COLA of 4.87 percent. For those few civil penalty amounts that were last adjusted under the 2004 Rule, the COLA equals 20.97 percent, calculated by determining the percentage by which the CPI-U for June 2012 (229.478) exceeds the CPI-U for June 2004 (189.7). In the case of the maximum civil penalty that can be imposed under section 311(b)(7)(A) of the Clean Water Act, 33 U.S.C. 1321(b)(7)(A), which is the sole civil penalty last adjusted under the 1996 Rule, the COLA is 46.45 percent, determined by calculating the percentage by which the CPI-U for June 2012 (229.478) exceeds the CPI-U for June 1996 (156.7).
In contrast, this rule does not adjust those civil penalty amounts where the raw inflation amounts are not high enough to round up to the required multiple stated in the DCIA. For example, under section 3008(a)(3) of the Resource Conservation and Recovery Act, 42 U.S.C. 6928(a)(3), the Administrator may assess a civil penalty of up to $37,500 per day of noncompliance for each violation. This penalty was last adjusted for inflation under the 2008 Rule. Multiplying the applicable 4.87 percent COLA to the statutory civil penalty amount of $37,500, the raw inflation increase equals only $1,827.40; the DCIA rounding rule requires a raw inflation increase increment to be rounded to the nearest multiple of $5,000 for penalties greater than $10,000 but less than or equal to $100,000. Because this raw inflation increase is not sufficient to be rounded up to a multiple of $5,000, in accordance with the DCIA's rounding rule, this rule does not increase the $37,500 penalty amount. However, if during the development of EPA's next Civil Monetary Penalty Inflation Adjustment Rule, anticipated to be Start Printed Page 66645promulgated in 2017, the raw inflation increase can be rounded up to the next multiple of $5,000, statutory maximum penalty amounts currently at $37,500 will be increased to $42,500.
This action contains no federal mandates under the provisions of Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 1531-1538 for state, local, or tribal governments or the private sector. The action implements mandates specifically and explicitly set forth by Congress in the DCIA without the exercise of any policy discretion by EPA. By applying the adjustment formula and rounding rules prescribed by the DCIA, this rule adjusts for inflation the statutory maximum and, in some cases, the minimum, amount of civil penalties that can be assessed by EPA in an administrative enforcement action, or by the U.S. Attorney General in a civil judicial case, for violations of EPA-administered statutes and their implementing regulations. Because the calculation of any increase is formula-driven, EPA has no policy discretion to vary the amount of the adjustment. Given that the Agency has made a “good cause” finding that this rule is not subject to notice and comment requirements under the APA or any other statute (see Section IV of this notice), it is not subject to sections 202 and 205 of UMRA. EPA has also determined that this action is not subject to the requirements of section 203 of UMRA because it contains no regulatory requirements that might significantly or uniquely affect small governments. This rule merely increases Start Printed Page 66646the amount of civil penalties that could conceivably be imposed in the context of a federal civil administrative enforcement action or civil judicial case for violations of EPA-administered statutes and their implementing regulations.
Pub. L. 101-410, 28 U.S.C. 2461 note; Public Law 104-134, 31 U.S.C. 3701 note.
Start Amendment Part2. Revise § 19.2 to read as follows:End Amendment Part
§ 19.2 Effective date.
The increased penalty amounts set forth in the seventh and last column of Table 1 to § 19.4 apply to all violations under the applicable statutes and regulations which occur after December 6, 2013. The penalty amounts in the sixth column of Table 1 to § 19.4 apply to violations under the applicable statutes and regulations which occurred after January 12, 2009, through December 6, 2013. The penalty amounts in the fifth column of Table 1 to § 19.4 apply to all violations under the applicable statutes and regulations Start Printed Page 66647which occurred after March 15, 2004, through January 12, 2009. The penalty amounts in the fourth column of Table 1 to § 19.4 apply to all violations under the applicable statutes and regulations which occurred after January 30, 1997, through March 15, 2004.
Start Amendment Part3. Revise § 19.4 to read as follows:End Amendment Part
§ 19.4 Penalty adjustment and table.
Table 1 of Section 19.4—Civil Monetary Penalty Inflation AdjustmentsU.S. Code CitationEnvironmental statuteStatutory penalties, as enactedPenalties effective after January 30, 1997 through March 15, 2004Penalties effective after March 15, 2004 through January 12, 2009Penalties effective after January 12, 2009 through December 6, 2013Penalties effective after December 6, 20137 U.S.C. 136 l. (a)(1)FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT (FIFRA)$5,000$5,500$6,500$7,500$7,5007 U.S.C. 136 l. (a)(2)FIFRA$500/$1,000$550/$1,000$650/$1,100$750/$1,100$750/$1,10015 U.S.C. 2615(a)(1)TOXIC SUBSTANCES CONTROL ACT (TSCA)$25,000$27,500$32,500$37,500$37,50015 U.S.C. 2647(a)TSCA$5,000$5,500$6,500$7,500$7,50015 U.S.C. 2647(g)TSCA$5,000$5,000$5,500$7,500$7,50031 U.S.C. 3802(a)(1)PROGRAM FRAUD CIVIL REMEDIES ACT (PFCRA)$5,000$5,500$6,500$7,500$7,50031 U.S.C. 3802(a)(2)PFCRA$5,000$5,500$6,500$7,500$7,50033 U.S.C. 1319(d)CLEAN WATER ACT (CWA)$25,000$27,500$32,500$37,500$37,50033 U.S.C. 1319(g)(2)(A)CWA$10,000/$25,000$11,000/$27,500$11,000/$32,500$16,000/$37,500$16,000/$37,50033 U.S.C. 1319(g)(2)(B)CWA$10,000/$125,000$11,000/$137,500$11,000/$157,500$16,000/$177,500$16,000/$187,50033 U.S.C. 1321(b)(6)(B)(i)CWA$10,000/$25,000$11,000/$27,500$11,000/$32,500$16,000/$37,500$16,000/$37,50033 U.S.C. 1321(b)(6)(B)(ii)CWA$10,000/$125,000$11,000/$137,500$11,000/$157,500$16,000/$177,500$16,000/$187,50033 U.S.C. 1321(b)(7)(A)CWA$25,000/$1,000$27,500/$1,100$32,500/$1,100$37,500/$1,100$37,500/$2,10033 U.S.C. 1321(b)(7)(B)CWA$25,000$27,500$32,500$37,500$37,50033 U.S.C. 1321(b)(7)(C)CWA$25,000$27,500$32,500$37,500$37,50033 U.S.C. 1321(b)(7)(D)CWA$100,000/$3,000$110,000/$3,300$130,000/$4,300$140,000/$4,300$150,000/$5,30033 U.S.C. 1414b(d)(1) 1MARINE PROTECTION, RESEARCH, AND SANCTUARIES ACT (MPRSA)$600$660$760$860$86033 U.S.C. 1415(a)MPRSA$50,000/$125,000$55,000/$137,500$65,000/$157,500$70,000/$177,500$75,000/$187,50033 U.S.C. 1901 note (see 1409(a)(2)(A))CERTAIN ALASKAN CRUISE SHIP OPERATIONS (CACSO)$10,000/$25,000$10,000/$25,000 2$10,000/$25,000$11,000/$27,500$11,000/$27,50033 U.S.C. 1901 note (see 1409(a)(2)(B))CACSO$10,000/$125,000$10,000/$125,000$10,000/$125,000$11,000/$137,500$11,000/$147,50033 U.S.C. 1901 note (see 1409(b)(1))CACSO$25,000$25,000$25,000$27,500$27,50042 U.S.C. 300g-3(b)SAFE DRINKING WATER ACT (SDWA)$25,000$27,500$32,500$37,500$37,50042 U.S.C. 300g-3(g)(3)(A)SDWA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 300g-3(g)(3)(B)SDWA$5,000/$25,000$5,000/$25,000$6,000/$27,500$7,000/$32,500$7,000/$32,50042 U.S.C. 300g-3(g)(3)(C)SDWA$25,000$25,000$27,500$32,500$32,50042 U.S.C. 300h-2(b)(1)SDWA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 300h-2(c)(1)SDWA$10,000/$125,000$11,000/$137,500$11,000/$157,500$16,000/$177,500$16,000/$187,50042 U.S.C. 300h-2(c)(2)SDWA$5,000/$125,000$5,500/$137,500$6,500/$157,500$7,500/$177,500$7,500/$187,50042 U.S.C. 300h-3(c)SDWA$5,000/$10,000$5,500/$11,000$6,500/$11,000$7,500/$16,000$7,500/$16,00042 U.S.C. 300i(b)SDWA$15,000$15,000$16,500$16,500$21,50042 U.S.C. 300i-1(c)SDWA$20,000/$50,000$22,000/$55,000 3$100,000/$1,000,000$110,000/$1,100,000$120,000/$1,150,00042 U.S.C. 300j(e)(2)SDWA$2,500$2,750$2,750$3,750$3,75042 U.S.C. 300j-4(c)SDWA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 300j-6(b)(2)SDWA$25,000$25,000$27,500$32,500$32,50042 U.S.C. 300j-23(d)SDWA$5,000/$50,000$5,500/$55,000$6,500/$65,000$7,500/$70,000$7,500/$75,00042 U.S.C. 4852d(b)(5)RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT OF 1992$10,000$11,000$11,000$16,000$16,00042 U.S.C. 4910(a)(2)NOISE CONTROL ACT OF 1972$10,000$11,000$11,000$16,000$16,00042 U.S.C. 6928(a)(3)RESOURCE CONSERVATION AND RECOVERY ACT (RCRA)$25,000$27,500$32,500$37,500$37,50042 U.S.C. 6928(c)RCRA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 6928(g)RCRA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 6928(h)(2)RCRA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 6934(e)RCRA$5,000$5,500$6,500$7,500$7,50042 U.S.C. 6973(b)RCRA$5,000$5,500$6,500$7,500$7,500Start Printed Page 6664842 U.S.C. 6991e(a)(3)RCRA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 6991e(d)(1)RCRA$10,000$11,000$11,000$16,000$16,00042 U.S.C. 6991e(d)(2)RCRA$10,000$11,000$11,000$16,000$16,00042 U.S.C. 7413(b)CLEAN AIR ACT (CAA)$25,000$27,500$32,500$37,500$37,50042 U.S.C. 7413(d)(1)CAA$25,000/$200,000$27,500/$220,000$32,500/$270,000$37,500/$295,000$37,500/$320,00042 U.S.C. 7413(d)(3)CAA$5,000$5,500$6,500$7,500$7,50042 U.S.C. 7524(a)CAA$2,500/$25,000$2,750/$27,500$2,750/$32,500$3,750/$37,500$3,750/$37,50042 U.S.C. 7524(c)(1)CAA$200,000$220,000$270,000$295,000$320,00042 U.S.C. 7545(d)(1)CAA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 9604(e)(5)(B)COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT (CERCLA)$25,000$27,500$32,500$37,500$37,50042 U.S.C. 9606(b)(1)CERCLA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 9609(a)(1)CERCLA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 9609(b)CERCLA$25,000/$75,000$27,500/$82,500$32,500/$97,500$37,500/$107,500$37,500/$117,50042 U.S.C. 9609(c)CERCLA$25,000/$75,000$27,500/$82,500$32,500/$97,500$37,500/$107,500$37,500/$117,50042 U.S.C. 11045(a)EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-KNOW ACT (EPCRA)$25,000$27,500$32,500$37,500$37,50042 U.S.C. 11045(b)(1)(A) 4EPCRA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 11045(b)(2)EPCRA$25,000/$75,000$27,500/$82,500$32,500/$97,500$37,500/$107,500$37,500/$117,50042 U.S.C. 11045(b)(3)EPCRA$25,000/$75,000$27,500/$82,500$32,500/$97,500$37,500/$107,500$37,500/$117,50042 U.S.C. 11045(c)(1)EPCRA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 11045(c)(2)EPCRA$10,000$11,000$11,000$16,000$16,00042 U.S.C. 11045(d)(1)EPCRA$25,000$27,500$32,500$37,500$37,50042 U.S.C. 14304(a)(1)MERCURY-CONTAINING AND RECHARGEABLE BATTERY MANAGEMENT ACT (BATTERY ACT)$10,000$10,000$11,000$16,000$16,00042 U.S.C. 14304(g)BATTERY ACT$10,000$10,000$11,000$16,000$16,0001 Note that 33 U.S.C. 1414b (d)(1)(B) contains additional penalty escalation provisions that must be applied to the penalty amounts set forth in this Table. The amounts set forth in this Table reflect an inflation adjustment to the calendar year 1992 penalty amount expressed in section 104B(d)(1)(A), which is used to calculate the applicable penalty amount under MPRSA section 104B(d)(1)(B) for violations that occur in any subsequent calendar year.2 CACSO was passed on December 21, 2000 as part of Title XIV of the Consolidated Appropriations Act of 2001, Pub. L. 106-554, 33 U.S.C. 1901 note.3 The original statutory penalty amounts of $20,000 and $50,000 under section 1432(c) of the SDWA, 42 U.S.C. 300i-1(c), were subsequently increased by Congress pursuant to section 403 of the Public Health Security and Bioterrorism Preparedness and Response Act of 2002, Public Law No. 107-188 (June 12, 2002), to $100,000 and $1,000,000, respectively. EPA did not adjust these new penalty amounts in its 2004 Civil Monetary Penalty Inflation Adjustment Rule (“2004 Rule”), 69 FR 7121 (February 13, 2004), because they had gone into effect less than two years prior to the 2004 Rule.4 Consistent with how the EPA's other penalty authorities are displayed under Part 19.4, this Table now delineates, on a subpart-by-subpart basis, the penalty authorities enumerated under section 325(b) of EPCRA, 42 U.S.C. 11045(b) (i.e., 42 U.S.C. 11045(b)(1)(A), (b)(2), and (b)(3)).
Section 3 of the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. 2461 note, as amended by the DCIA, 31 U.S.C. 3701 note, defines “civil monetary penalty” to mean “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. . . .”
Section 3 of the DCIA defines “Consumer Price Index” to mean “the Consumer Price Index for all-urban consumers published by the Department of Labor.” Interested parties may find the relevant Consumer Price Index, published by the Department of Labor's Bureau of Labor Statistics, on the Internet. To access this information, go to the CPI Home Page at: ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt.
Section 5(b) of the DCIA defines the term “cost-of-living adjustment” to mean “the percentage (if any) for each civil monetary penalty by which—(1) the Consumer Price Index for the month of June of the calendar year preceding the adjustment, exceeds (2) the Consumer Price Index for the month of June of the calendar year in which the amount of such civil monetary penalty was last set or adjusted pursuant to law.”