Source: https://www.federalregister.gov/documents/2018/01/11/2018-00206/inflation-adjustment-of-civil-monetary-penalties
Timestamp: 2019-02-19 20:57:15
Document Index: 223075403

Matched Legal Cases: ['art 218', '§\u2009429', '§\u2009429', '§\u2009490', '§\u2009501', 'art 1013', 'art 851']

A Rule by the Energy Department on 01/11/2018
1289-1293 (5 pages)
10 CFR 207
10 CFR 501
https://www.federalregister.gov/d/2018-00206 https://www.federalregister.gov/d/2018-00206
Start Preamble Start Printed Page 1289
The Department of Energy (“DOE”) publishes this final rule to adjust DOE's civil monetary penalties (“CMPs”) for inflation as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (collectively referred to herein as “the Act”). This rule adjusts CMPs within the jurisdiction of DOE to the maximum amount required by the Act.
In order to improve the effectiveness of CMPs and to maintain their deterrent effect, the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. 2461 note (“the Inflation Adjustment Act”), as further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74) (“the 2015 Act”), requires Federal agencies to adjust each CMP provided by law within the jurisdiction of the agency. The 2015 Act requires agencies to adjust the level of CMPs with an initial “catch-up” adjustment through an interim final rulemaking and to make subsequent annual adjustments for inflation, notwithstanding 5 U.S.C. 553. DOE's initial catch-up adjustment interim final rule was published June 28, 2016 (81 FR 41790) and adopted as final without amendment on December 30, 2016 (81 FR 96349). The 2015 Act also provides that any increase in a CMP shall apply only to CMPs, including those whose associated violation predated such increase, which are assessed after the date the increase takes effect.
In accordance with the 2015 Act, the Office of Management and Budget (OMB) must issue annually guidance on adjustments to civil monetary penalties. This final rule to adjust civil monetary penalties for 2018 is issued in accordance with applicable law and OMB's guidance memorandum on implementation of the 2018 annual adjustment.[1]
The method of calculating CMP adjustments applied in this final rule is required by the 2015 Act. Under the 2015 Act, annual inflation adjustments subsequent to the initial catch-up adjustment are to be based on the percent change between the October Consumer Price Index for all Urban Consumers (CPI-U) preceding the date of the adjustment, and the prior year's October CPI-U. Pursuant to the aforementioned OMB guidance memorandum, the adjustment multiplier for 2018 is 1.02041. In order to complete the 2018 annual adjustment, each CMP is multiplied by the 2018 adjustment multiplier. Under the 2015 Act, any increase in CMP must be rounded to the nearest multiple of $1.
The following list summarizes DOE authorities containing CMPs, and the penalties before and after adjustment.
10 CFR 207.7 $10,1641 $10,371.
10 CFR 218.42 22,015 22,464.
10 CFR 429.120 440 449.
10 CFR 431.382 440 449.
10 CFR 490.604 8,523 8,697.
10 CFR 501.181 — 90,063 — 91,901
8/mcf 8/mcf.
— 36/bbl 37/bbl.
10 CFR 601.400 and App A — minimum 19,246 — minimum 19,639.
— maximum 192,459 — maximum 196,387.
10 CFR 820.81 201,106 205,211.
10 CFR 824.1 and App A 143,715 146,648.
10 CFR 824.4 and App A 143,715 146,648.
10 CFR 851.5 and App B 93,332 95,237.
10 CFR 1013.3 10,957 11,181.
10 CFR 1017.29 258,811 264,093.
10 CFR 1050.303 19,621 20,021.
50 U.S.C. 2731 2 8,797 8,977.
The 2015 Act requires that annual adjustments for inflation subsequent to the initial “catch-up” adjustment be made notwithstanding 5 U.S.C. 553.
This rule has been determined not to be a significant regulatory action under Executive Order 12866, “Regulatory Planning and Review,” 58 FR 51735 (October 4, 1993). Accordingly, this action was not subject to review under that Executive Order by the Office of Information and Regulatory Affairs of the Office of Management and Budget.
Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use,” 66 FR 28355 (May 22, 2001) requires Federal agencies to prepare and submit to OMB, a Statement of Energy Effects for any proposed significant energy action. A “significant energy action” is defined as any action by an agency that promulgated or is expected to lead to promulgation of a final rule, and that: (1) Is a significant regulatory action under Executive Order 12866, or any successor order; and (2) is likely to have a significant adverse effect on the supply, distribution, or use of energy, or (3) is designated by the Administrator of OIRA as a significant energy action. For any proposed significant energy action, the agency must give a detailed statement of any adverse effects on Start Printed Page 1291energy supply, distribution, or use should the proposal be implemented, and of reasonable alternatives to the action and their expected benefits on energy supply, distribution, and use. This regulatory action would not have a significant adverse effect on the supply, distribution, or use of energy and is therefore not a significant energy action. Accordingly, DOE has not prepared a Statement of Energy Effects.
Issued in Washington, DC, on January 4, 2018.
(c) * * * (1) Any person who violates any provision of this subpart or any order issued pursuant thereto shall be subject to a civil penalty of not more than $10,371 for each violation. * * *
(b) * * * (1) Any person who violates any provision of this part 218 or any order issued pursuant thereto shall be subject to a civil penalty of not more than $22,464 for each violation.
§ 429.120
Maximum civil penalty.
Any person who knowingly violates any provision of § 429.102(a) may be subject to assessment of a civil penalty of no more than $449 for each violation.
(b) In accordance with sections 333 and 345 of the Act, any person who knowingly violates any provision of paragraph (a) of this section may be subject to assessment of a civil penalty of no more than $449 for each violation.
(a) Civil penalties. Whoever violates § 490.603 shall be subject to a civil Start Printed Page 1292penalty of not more than $8,697 for each violation.
Authority: 42 U.S.C. 7101 et seq.; 42 U.S.C. 8301 et seq.; 42 U.S.C. 8701 et seq.; E.O. 12009, 42 FR 46267; 28 U.S.C. 2461 note.
§ 501.181
(c) * * * (1) Any person who violates any provisions of the Act (other than section 402) or any rule or order thereunder will be subject to the following civil penalty, which may not exceed $91,901 for each violation: Any person who operates a powerplant or major fuel burning installation under an exemption, during any 12-calendar-month period, in excess of that authorized in such exemption will be assessed a civil penalty of up to $8 for each MCF of natural gas or up to $37 for each barrel of oil used in excess of that authorized in the exemption.
(b) Any person who fails to file or amend the disclosure form (see appendix B to this part) to be filed or amended if required herein, shall be subject to a civil penalty of not less than $19,639 and not more than $196,387 for each such failure.
a. Removing “$19,246” wherever it appears and adding in its place “$19,639”.
b. Removing “$192,459” wherever it appears and adding in its place “$196,387”.
c. Removing the second instance of the phrase “Any person who fails to file the required certification” and adding in its place the phrase “Any person who fails to file the required statement”.
Any person subject to a penalty under 42 U.S.C. 2282a shall be subject to a civil penalty in an amount not to exceed $205,211 for each such violation.
Authority: 42 U.S.C. 2201, 2282b, 7101 et seq., 50 U.S.C. 2401 et seq.; 28 U.S.C. 2461 note.
* * * Subsection a. provides that any person who has entered into a contract or agreement with the Department of Energy, or a subcontract or subagreement thereto, and who violates (or whose employee violates) any applicable rule, regulation or order under the Act relating to the security or safeguarding of Restricted Data or other classified information, shall be subject to a civil penalty not to exceed $146,648 for each violation. * * *
(c) The Director may propose imposition of a civil penalty for violation of a requirement of a regulation or rule under paragraph (a) of this section or a compliance order issued under paragraph (b) of this section, not to exceed $146,648 for each violation.
(a) A contractor that is indemnified under section 170d. of the AEA (or any subcontractor or supplier thereto) and that violates (or whose employee violates) any requirement of this part shall be subject to a civil penalty of up to $95,237 for each such violation.* * *
(1) * * * A Severity Level I violation would be subject to a base civil penalty of up to 100% of the maximum base civil penalty of $95,237.
(2) * * * A Severity Level II violation would be subject to a base civil penalty up to 50% of the maximum base civil penalty ($47,618).
(1) DOE may assess civil penalties of up to $95,237 per violation per day on contractors (and their subcontractors Start Printed Page 1293and suppliers) that are indemnified by the Price-Anderson Act, 42 U.S.C. 2210(d). See 10 CFR 851.5(a).
24. The authority citation for part 1013 continues to read as follows:
(d) * * * The court in which such action is brought may assess a civil penalty against such employee in any amount not to exceed the retail value of the gift improperly solicited or received plus $20,021.
1. OMB's annual guidance memorandum was issued on December 15, 2017, providing the 2018 adjustment multiplier and addressing how to apply it.
2. Implemented by 10 CFR 820.81, 10 CFR 851.5, and appendix B to 10 CFR part 851.
[FR Doc. 2018-00206 Filed 1-10-18; 8:45 am]