Source: https://www.federalregister.gov/documents/2020/04/15/2020-07390/civil-monetary-penalty-inflation-adjustments
Timestamp: 2020-08-07 01:58:02
Document Index: 82971796

Matched Legal Cases: ['ART 846', 'arts 723', 'arts 903', 'art 512', 'arts 723', 'art 723', '§\u2009723', '§\u2009723', '§\u2009723', 'art 724', '§\u2009724', 'art 845', '§\u2009845', '§\u2009845', '§\u2009845', 'art 846', '§\u2009846']

Federal Register :: Civil Monetary Penalty Inflation Adjustments
A Rule by the Surface Mining Reclamation and Enforcement Office on 04/15/2020
Effective April 15, 2020.
85 FR 20830
20830-20836 (7 pages)
Docket ID: OSM-2019-0015
S2D2S SS08011000 SX064A00 20XS501520
1029-AC78
2020-07390
as of 08/06/2020 at 8:15 pm EDT
OSM-2019-0015
Civil Monetary Inflation and Adjustments
A. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015
B. Calculation of Adjustments
C. Effect of the Rule in Federal Program States and on Indian Lands
D. Effect of the Rule on Approved State Programs
A. Regulatory Planning and Review (Executive Orders 12866, 13563, and 13771)
E. Takings (Executive Order 12630)
H. Consultation with Indian Tribes (Executive Order 13175 and Departmental Policy)
K. Effects on Energy Supply, Distribution, and Use (Executive Order 13211)
M. Data Quality Act
N. Administrative Procedure Act
PART 846—INDIVIDUAL CIVIL PENALTIES
https://www.federalregister.gov/d/2020-07390
Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act), which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (1990 Act), and Office of Management and Budget (OMB) guidance, this rule adjusts for inflation the level of civil monetary penalties assessed under the Surface Mining Control and Reclamation Act of 1977 (SMCRA).
Kathleen Vello, Office of Surface Mining Reclamation and Enforcement, 1849 C Street NW, Mail Stop 4550, Washington, DC 20240; Telephone (202) 208-1908. Email: kvello@osmre.gov.
Section 518 of SMCRA, 30 U.S.C. 1268, authorizes the Secretary of the Interior to assess civil monetary penalties (CMPs) for violations of SMCRA. The Office of Surface Mining Reclamation and Enforcement's (OSMRE) regulations implementing the CMP provisions of section 518 are located in 30 CFR parts 723, 724, 845, and 846. We are adjusting CMPs in six sections—30 CFR 723.14, 723.15, 724.14, 845.14, 845.15, and 846.14.
On November 2, 2015, the President signed the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114-74) (2015 Act) into law. The 2015 Act, which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (codified as amended at 28 U.S.C. 2461 note), requires Federal agencies to promulgate rules to adjust the level of CMPs to account for inflation. The 2015 Act required an initial “catch-up” adjustment. OSMRE published the initial adjustment in the Federal Register on July 8, 2016 (81 FR 44535), and the adjustment took effect on August 1, 2016. The 2015 Act also requires agencies to publish annual inflation adjustments in the Federal Register no later than January 15 of each year. These adjustments are aimed at maintaining the deterrent effect of civil penalties and furthering the policy goals of the statutes that authorize the penalties. Further, the 2015 Act provides that agencies must adjust civil monetary penalties “notwithstanding section 553 of [the Administrative Procedure Act].” Therefore, the public procedure that the Administrative Procedure Act generally requires for rulemaking—notice, an opportunity for comment, and a delay in the effective date—is not required for agencies to issue regulations implementing the annual CMP adjustments. See also December 16, 2019, Memorandum for the Heads of Executive Departments and Start Printed Page 20831Agencies (M-20-05), from Russell T. Vought, Acting Director, Office of Management and Budget, Implementation of Penalty Inflation Adjustments for 2020, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (OMB Memorandum).
Pursuant to SMCRA and the 2015 Act, this final rule reflects the statutorily required CMP adjustments as follows:
Points (where applicable)
Current penalty dollar amounts
Adjusted penalty dollar amounts
30 CFR 723.14 1 $67 $68
2 135 137
3 202 206
4 269 274
5 336 342
6 404 411
7 471 479
8 537 546
9 605 616
10 673 685
11 739 752
12 807 821
13 873 888
14 941 958
15 1,010 1,028
16 1,076 1,095
17 1,143 1,163
18 1,212 1,233
19 1,278 1,301
20 1,345 1,369
21 1,413 1,438
22 1,480 1,506
23 1,547 1,574
24 1,614 1,642
25 1,681 1,711
26 2,018 2,054
27 2,354 2,396
28 2,689 2,736
29 2,898 2,949
30 3,364 3,423
31 3,699 3,764
32 4,035 4,106
33 4,372 4,449
34 4,708 4,791
35 5,044 5,133
36 5,380 5,475
37 5,718 5,819
38 6,053 6,160
39 6,389 6,502
40 6,724 6,843
41 7,063 7,188
42 7,398 7,529
43 7,734 7,870
44 8,071 8,213
45 8,407 8,555
46 8,744 8,898
47 9,079 9,239
48 9,417 9,583
49 9,752 9,924
50 10,088 10,266
51 10,423 10,607
52 10,762 10,952
53 11,098 11,294
54 11,433 11,635
55 11,771 11,979
56 12,106 12,320
57 12,442 12,661
58 12,778 13,003
59 13,116 13,347
60 13,451 13,688
61 13,787 14,030
62 14,124 14,373
63 14,461 14,716
64 14,797 15,058
65 15,132 15,399
66 15,470 15,743
67 15,805 16,084
68 16,141 16,426
69 16,477 16,768
70 16,815 17,112
30 CFR 723.15(b) (Assessment of separate violations for each day) 2,522 2,566
30 CFR 724.14(b) (Individual civil penalties) 16,815 17,112
30 CFR 845.14 1 67 68
Start Printed Page 20833
30 CFR 845.15(b) (Assessment of separate violations for each day) 2,522 2,566
30 CFR 846.14(b) (Individual civil penalties) 16,815 17,112
In the chart above, there are no numbers listed in the “Points” column relative to 30 CFR 723.15(b), 30 CFR 724.14(b), 30 CFR 845.15(b), and 30 CFR 846.14(b) because those regulatory provisions do not set forth numbers of points. For those provisions, the current regulations only set forth the dollar amounts shown in the chart in the “Current Penalty Dollar Amounts” column; the adjusted amounts, which we are adopting in this rule, are shown in the “Adjusted Penalty Dollar Amounts” column.
OMB issued guidance on the 2020 annual adjustments for inflation. See OMB Memorandum (December 16, 2019). The OMB Memorandum notes that the 1990 Act defines “civil monetary penalty” as “any penalty, fine, or other sanction that . . . is for a specific monetary amount as provided by Federal law; or . . . has a maximum amount provided for by Federal law; and . . . is assessed or enforced by an agency pursuant to Federal law; and . . . is assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts . . . .” It further instructs that agencies “are to adjust `the maximum civil monetary penalty or the range of minimum and maximum civil monetary penalties, as applicable, for each civil monetary penalty by the cost-of-living adjustment.' ” See December 16, 2019 OMB Memorandum. The 1990 Act, as amended by the 2015 Act, and the OMB Memorandum specify that the annual inflation adjustments are based on the percent change between the Consumer Price Index for all Urban Consumers (the CPI-U) published by the Department of Labor for the month of October in the year of the previous adjustment, and the October CPI-U for the preceding year. The recent OMB Memorandum specified that the cost-of-living adjustment multiplier for 2020, not seasonally adjusted, is 1.01764 (the October 2019 CPI-U (257.346) divided by the October 2018 CPI-U (252.885) = 1.01764). OSMRE used this guidance to identify applicable CMPs and calculate the required inflation adjustments. The 1990 Act, as amended by the 2015 Act, specifies that any resulting increases in CMPs must be rounded according to a stated rounding formula and that the increased CMPs apply only to violations that occur after the date the increase takes effect.
Generally, OSMRE assigns points to a violation as described in 30 CFR 723.13 and 845.13. The CMP owed is based on the number of points received, ranging from one point to 70 points. For example, under our existing regulations in 30 CFR 845.14, a violation totaling 70 points would amount to a $16,815 CMP. To adjust this amount, we multiply $16,815 by the 2020 inflation factor of 1.01764, resulting in a raw adjusted amount of $17,111.62. Because the 2015 Act requires us to round any increase in the CMP amount to the nearest dollar, in this case a violation of 70 points would amount to a new CMP of $17,112. Pursuant to the 2015 Act, the increases in this final rule apply to CMPs assessed after the date the increases take effect, even if the associated violation predates the applicable increase.
OSMRE directly regulates surface coal mining and reclamation operations within a State or on Tribal lands if the State or Tribe does not obtain its own approved program pursuant to sections 503 or 710(j) of SMCRA, 30 U.S.C. 1253 or 1300(j). The increases in CMPs contained in this rule will apply to the following Federal program States: Arizona, California, Georgia, Idaho, Massachusetts, Michigan, North Carolina, Oregon, Rhode Island, South Dakota, Tennessee, and Washington. The Federal programs for those States appear at 30 CFR parts 903, 905, 910, 912, 921, 922, 933, 937, 939, 941, 942, and 947, respectively. Under 30 CFR 750.18, the increase in CMPs also applies to Indian lands under the Federal program for Indian lands.
As a result of litigation, see In re Permanent Surface Mining Regulation Litigation, No. 79-1144, Mem. Op. (D.D.C. May 16, 1980), 19 Env't. Rep. Cas. (BNA) 1477, State regulatory programs are not required to mirror all of the penalty provisions of our regulations. Thus, this rule has no effect on CMPs in States with SMCRA primacy.
Executive Order 12866 provides that the Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget will review all significant rules. OIRA has determined that agency regulations exclusively implementing the annual inflation adjustments are not significant, provided they are consistent with the OMB Memorandum. Because this final rule exclusively implements the annual inflation adjustments, is consistent with the OMB Memorandum, and will have an annual impact of less than $100 million, it is not significant under Executive Order 12866.
Executive Order 13563 reaffirms the principles of Executive Order 12866 while calling for improvements in the Nation's regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. The Executive order directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. Executive Order 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this rule in a manner consistent with these requirements, to the extent permitted by statute.
Executive Order 13771 of January 30, 2017, directs Federal agencies to reduce the regulatory burden on regulated entities and control regulatory costs. Executive Order 13771, however, applies only to significant regulatory actions, as defined in Section 3(f) of Executive Order 12866. As mentioned Start Printed Page 20834above, OIRA has determined that agency regulations exclusively implementing the annual adjustments are generally not significant regulatory actions under Executive Order 12866, provided they are consistent with the OMB Memorandum (see OMB Memorandum, M-20-05, at 3) and have an annual impact of less than $100 million. Because this final rule exclusively implements the annual adjustments, is consistent with the OMB Memorandum, and will have an annual impact less than $100 million, Executive Order 13771 does not apply to this rulemaking.
The Regulatory Flexibility Act (RFA) requires an agency to prepare a regulatory flexibility analysis for all rules unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency is required to first publish a proposed rule. See 5 U.S.C. 603(a) and 604(a). The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires agencies to adjust civil penalties annually for inflation “notwithstanding section 553 [of the Administrative Procedure Act].” Thus, no proposed rule will be published, and the RFA does not apply to this rulemaking.
(c) Will not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises.
This rule does not impose an unfunded mandate on State, local, or Tribal governments, or the private sector, of more than $100 million per year. The rule does not have a significant or unique effect on State, local, or Tribal governments or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required.
The Department of the Interior strives to strengthen its government-to-government relationship with Tribes through a commitment to consultation with Tribes and recognition of their right to self-governance and Tribal sovereignty. We have evaluated this rule under the Department's consultation policy, under Departmental Manual Part 512, Chapters 4 and 5, and under the criteria in Executive Order 13175 and have determined that it has no substantial direct effects on Federally-recognized Tribes or Alaska Native Claims Settlement Act (ANCSA) Corporations, and that consultation under the Department's Tribal consultation policy is not required.
We are required by Executive Orders 12866 (section 1(b)(12)), 12988 (section 3(b)(1)(B)), and 13563 (section 1(a)), and by the Presidential Memorandum of June 1, 1998, to write all rules in plain language. This means that each rule we publish must:
If you believe that we have not met these requirements in issuing this final rule, please contact the individual listed in the FOR FURTHER INFORMATION CONTACT section. Your comments should be as specific as possible in order to help us determine whether any future revisions to the rule are necessary. For example, you should tell us the numbers of the sections or paragraphs that you find unclear, which sections or sentences are too long, the sections where you feel lists or tables would be useful, etc.
We are issuing this final rule without prior public notice or opportunity for public comment. As discussed above, the Federal Civil Penalties Inflation Start Printed Page 20835Adjustment Act Improvements Act of 2015 requires agencies to publish adjusted penalties annually. Under the 2015 Act, the public procedure that the Administrative Procedure Act generally requires—notice, an opportunity for comment, and a delay in the effective date—is not required for agencies to issue regulations implementing the annual adjustments required by the 2015 Act. See OMB Memorandum, M-20-05, at 4.
For the reasons given in the preamble, the Department of the Interior amends 30 CFR parts 723, 724, 845, and 846 as set forth below.
1. The authority citation for part 723 continues to read as follows:
2. Revise the table in § 723.14 to read as follows:
24 1,642
30 3,423
33 4,449
34 4,791
35 5,133
36 5,475
38 6,160
40 6,843
42 7,529
44 8,213
45 8,555
46 8,898
47 9,239
49 9,924
50 10,266
51 10,607
52 10,952
53 11,294
56 12,320
57 12,661
58 13,003
60 13,688
61 14,030
62 14,373
64 15,058
65 15,399
66 15,743
67 16,084
68 16,426
69 16,768
70 17,112
3. In § 723.15, revise introductory text of paragraph (b) to read as follows:
§ 723.15
Assessment of separate violations for each day.
(b) In addition to the civil penalty provided for in paragraph (a) of this section, whenever a violation contained in a notice of violation or cessation order has not been abated within the abatement period set in the notice or order or as subsequently extended pursuant to section 521(a) of the Act, 30 U.S.C. 1271(a), a civil penalty of not less than $2,566 will be assessed for each day during which such failure to abate continues, except that:
4. The authority citation for part 724 continues to read as follows:
5. In § 724.14, revise the first sentence of paragraph (b) to read as follows:
(b) The penalty will not exceed $17,112 for each violation. * * *
6. The authority citation for part 845 continues to read as follows:
7. Revise the table in § 845.14 to read as follows:
Start Printed Page 20836
8. In § 845.15, revise introductory text of paragraph (b) to read as follows:
§ 845.15
9. The authority citation for part 846 continues to read as follows:
10. In § 846.14, revise the first sentence of paragraph (b) to read as follows:
[FR Doc. 2020-07390 Filed 4-14-20; 8:45 am]