Rule2022-00616
Civil Monetary Penalty Inflation Adjustments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 13, 2022
Effective
January 13, 2022
Issuing agencies
Energy DepartmentFederal Energy Regulatory Commission
Abstract
The Federal Energy Regulatory Commission (Commission) is issuing a final rule to amend its regulations governing the maximum civil monetary penalties assessable for violations of statutes, rules, and orders within the Commission's jurisdiction. The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended most recently by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, requires the Commission to issue this final rule.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 9 (Thursday, January 13, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 9 (Thursday, January 13, 2022)]
[Rules and Regulations]
[Pages 2036-2037]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00616]
[[Page 2036]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 250 and 385
[Docket No. RM22-6-000; Order No. 882]
Civil Monetary Penalty Inflation Adjustments
AGENCY: Federal Energy Regulatory Commission, Department of Energy.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission (Commission) is
issuing a final rule to amend its regulations governing the maximum
civil monetary penalties assessable for violations of statutes, rules,
and orders within the Commission's jurisdiction. The Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended most recently by
the Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015, requires the Commission to issue this final rule.
DATES: This final rule is effective January 13, 2022.
FOR FURTHER INFORMATION CONTACT: Todd Hettenbach, Attorney, Office of
Enforcement, Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426. Phone: (202) 502-8794, email:
<a href="/cdn-cgi/l/email-protection#1642797272385e73626273787477757e567073647538717960"><span class="__cf_email__" data-cfemail="94c0fbf0f0badcf1e0e0f1faf6f5f7fcd4f2f1e6f7baf3fbe2">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
1. In this final rule, the Federal Energy Regulatory Commission
(Commission) is complying with its statutory obligation to amend the
civil monetary penalties provided by law for matters within the
agency's jurisdiction.
I. Background
2. The Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (2015 Adjustment Act),\1\ which further
amended the Federal Civil Penalties Inflation Adjustment Act of 1990
(1990 Adjustment Act),\2\ required the head of each Federal agency to
issue a rule by July 2016 adjusting for inflation each ``civil monetary
penalty'' provided by law within the agency's jurisdiction and to make
further inflation adjustments on an annual basis every January 15
thereafter.\3\
---------------------------------------------------------------------------
\1\ Public Law 114-74, Sec. 701, 129 Stat. 584, 599.
\2\ Public Law 101-410, 104 Stat. 890 (codified as amended at 28
U.S.C. 2461 note).
\3\ 28 U.S.C. 2461 note, at (4). The Commission made its January
2021 adjustment on January 8, 2021, in Docket No. RM21-8-000. See
Civil Monetary Penalty Inflation Adjustments, Order No. 875, 86 FR
8131 (Feb. 4, 2021), 174 FERC ] 61,015 (2021).
---------------------------------------------------------------------------
II. Discussion
3. The 2015 Adjustment Act defines a civil monetary penalty as 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; (B) is assessed or enforced by an
agency pursuant to Federal law; and (C) is assessed or enforced
pursuant to an administrative proceeding or a civil action in the
federal courts.\4\ This definition applies to the maximum civil
penalties that may be imposed under the Federal Power Act (FPA),\5\ the
Natural Gas Act (NGA),\6\ the Natural Gas Policy Act of 1978 (NGPA),\7\
and the Interstate Commerce Act (ICA).\8\
---------------------------------------------------------------------------
\4\ 28 U.S.C. 2461 note at (3).
\5\ 16 U.S.C. 791a et seq.
\6\ 15 U.S.C. 717 et seq.
\7\ 15 U.S.C. 3301 et seq.
\8\ 49 App. U.S.C. 1 et seq.
---------------------------------------------------------------------------
4. Under the 2015 Adjustment Act, the first step for such
adjustment of a civil monetary penalty for inflation requires
determining the percentage by which the U.S. Department of Labor's
Consumer Price Index for all-urban consumers (CPI-U) for October of the
preceding year exceeds the CPI-U for October of the year before
that.\9\ The CPI-U for October 2021 exceeded the CPI-U for October 2020
by 6.222%.\10\ 5. The second step requires multiplying the CPI-U
percentage increase by the applicable existing maximum civil monetary
penalty.\11\ This step results in a base penalty increase amount.
---------------------------------------------------------------------------
\9\ 28 U.S.C. 2461 note at (5)(b)(1).
\10\ See, e.g., Memorandum from Shalanda D. Young, Office of
Management and Budget, Implementation of the Penalty Inflation
Adjustments for 2022, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (Dec. 15, 2021).
\11\ 28 U.S.C. 2461 note at (5)(a).
---------------------------------------------------------------------------
6. The third step requires rounding the base penalty increase
amount to the nearest dollar and adding that amount to the base penalty
to calculate the new adjusted maximum civil monetary penalty.\12\
---------------------------------------------------------------------------
\12\ Id.
---------------------------------------------------------------------------
7. Under the 2015 Adjustment Act, an agency is directed to use the
maximum civil monetary penalty applicable at the time of assessment of
a civil penalty, regardless of the date on which the violation
occurred.\13\
---------------------------------------------------------------------------
\13\ Id. at (6).
---------------------------------------------------------------------------
8. The adjustments that the Commission is required to make pursuant
to the 2015 Adjustment Act are reflected in the following table:
------------------------------------------------------------------------
Existing maximum New adjusted
Source civil monetary maximum civil
penalty monetary penalty
------------------------------------------------------------------------
16 U.S.C. 825o-1(b), Sec. 316A $1,307,164 per $1,388,496 per
of the Federal Power Act. violation, per violation, per
day. day.
16 U.S.C. 823b(c), Sec. 31(c) of $23,607 per $25,075 per
the Federal Power Act. violation, per violation, per
day. day.
16 U.S.C. 825n(a), Sec. 315(a) $3,083 per $3,275 per
of the Federal Power Act. violation. violation.
15 U.S.C. 717t-1, Sec. 22 of the $1,307,164 per $1,388,496 per
Natural Gas Act. violation, per violation, per
day. day.
15 U.S.C. 3414(b)(6)(A)(i), Sec. $1,307,164 per $1,388,496 per
504(b)(6)(A)(i) of the Natural violation, per violation, per
Gas Policy Act of 1978. day. day.
49 App. U.S.C. 6(10) (1988), $1,368 per offense $1,453 per offense
Sec. 6(10) of the Interstate and $69 per day and $73 per day
Commerce Act. after the first after the first
day. day.
49 App. U.S.C. 16(8) (1988), $13,685 per $14,536 per
Sec. 16(8) of the Interstate violation, per violation, per
Commerce Act. day. day.
49 App. U.S.C. 19a(k) (1988), $1,368 per $1,453 per
Sec. 19a(k) of the Interstate offense, per day. offense, per day.
Commerce Act.
49 App. U.S.C. 20(7)(a) (1988), $1,368 per $1,453 per
Sec. 20(7)(a) of the Interstate offense, per day. offense, per day.
Commerce Act.
------------------------------------------------------------------------
III. Administrative Findings
9. Congress directed that agencies issue final rules to adjust
their maximum civil monetary penalties notwithstanding the requirements
of the Administrative Procedure Act (APA).\14\ Because the Commission
is required by law to undertake these inflation adjustments
notwithstanding the notice and comment requirements that otherwise
would apply pursuant to the
[[Page 2037]]
APA, and because the Commission lacks discretion with respect to the
method and amount of the adjustments, prior notice and comment would be
impractical, unnecessary, and contrary to the public interest.
---------------------------------------------------------------------------
\14\ Id. at (3)(b)(2).
---------------------------------------------------------------------------
IV. Regulatory Flexibility Statement
10. The Regulatory Flexibility Act, as amended, requires agencies
to certify that rules promulgated under their authority will not have a
significant economic impact on a substantial number of small
businesses.\15\ The requirements of the Regulatory Flexibility Act
apply only to rules promulgated following notice and comment.\16\ The
requirements of the Regulatory Flexibility Act do not apply to this
rulemaking because the Commission is issuing this final rule without
notice and comment.
---------------------------------------------------------------------------
\15\ 5 U.S.C. 601 et seq.
\16\ 5 U.S.C. 603, 604.
---------------------------------------------------------------------------
V. Paperwork Reduction Act
11. This rule does not require the collection of information. The
Commission is therefore not required to submit this rule for review to
the Office of Management and Budget pursuant to the Paperwork Reduction
Act of 1995.\17\
---------------------------------------------------------------------------
\17\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------
VI. Document Availability
12. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and print the contents of this document via the
internet through the Commission's Home Page (<a href="http://www.ferc.gov">http://www.ferc.gov</a>). At
this time, the Commission has suspended access to the Commission's
Public Reference Room due to the President's March 13, 2020
proclamation declaring a National Emergency concerning the Novel
Coronavirus Disease (COVID-19).
13. From the Commission's Home Page on the internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and downloading. To access this document in eLibrary, type
the docket number (excluding the last three digits) in the docket
number field.
14. User assistance is available for eLibrary and the Commission's
website during normal business hours from the Commission's Online
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at
<a href="/cdn-cgi/l/email-protection#65030017060a0b090c0b00161015150a171125030017064b020a13"><span class="__cf_email__" data-cfemail="482e2d3a2b27262421262d3b3d3838273a3c082e2d3a2b662f273e">[email protected]</span></a>, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659, <a href="/cdn-cgi/l/email-protection#29595c4b45404a075b4c4f4c5b4c474a4c5b464644694f4c5b4a074e465f"><span class="__cf_email__" data-cfemail="b1c1c4d3ddd8d29fc3d4d7d4c3d4dfd2d4c3dededcf1d7d4c3d29fd6dec7">[email protected]</span></a>.
VII. Effective Date and Congressional Notification
15. For the same reasons the Commission has determined that public
notice and comment are unnecessary, impractical, and contrary to the
public interest, the Commission finds good cause to adopt an effective
date that is less than 30 days after the date of publication in the
Federal Register pursuant to the APA,\18\ and therefore, the regulation
is effective upon publication in the Federal Register.
---------------------------------------------------------------------------
\18\ 5 U.S.C. 553(d)(3).
---------------------------------------------------------------------------
16. The Commission has determined, with the concurrence of the
Administrator of the Office of Information and Regulatory Affairs of
the Office of Management and Budget, that this rule is not a ``major
rule'' as defined in section 351 of the Small Business Regulatory
Enforcement Fairness Act of 1996. This final rule is being submitted to
the Senate, House, and Government Accountability Office.
List of Subjects
18 CFR Part 250
Natural gas, Reporting and recordkeeping requirements.
18 CFR Part 385
Administrative practice and procedure, Electric power, Penalties,
Pipelines, Reporting and recordkeeping requirements.
By the Commission.
Issued: January 7, 2022.
Debbie-Anne A. Reese,
Deputy Secretary.
In consideration of the foregoing, the Commission amends parts 250
and 385, chapter I, title 18, Code of Federal Regulations as follows:
PART 250--FORMS
0
1. The authority citation for part 250 continues to read as follows:
Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352;
28 U.S.C. 2461 note.
0
2. Revise Sec. 250.16(e)(1) to read as follows:
Sec. 250.16 Format of compliance plan for transportation services
and affiliate transactions.
* * * * *
(e) * * *
(1) Any person who transports gas for others pursuant to subpart B
or G of part 284 of this chapter and who knowingly violates the
requirements of Sec. Sec. 358.4 and 358.5 of this chapter, this
section, or Sec. 284.13 of this chapter will be subject, pursuant to
sections 311(c), 501, and 504(b)(6) of the Natural Gas Policy Act of
1978, to a civil penalty, which the Commission may assess, of not more
than $1,388,496 for any one violation.
* * * * *
PART 385--RULES OF PRACTICE AND PROCEDURE
0
3. The authority citation for part 385 continues to read as follows:
Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717w, 3301-3432; 16
U.S.C. 791a-825v, 2601-2645; 28 U.S.C. 2461; 31 U.S.C 3701, 9701; 42
U.S.C. 7101-7352, 16441, 16451-16463; 49 U.S.C. 60502; 49 App.
U.S.C. 1-85 (1988); 28 U.S.C. 2461 note (1990); 28 U.S.C. 2461 note
(2015).
0
4. Revise Sec. 385.1504(a) to read as follows:
Sec. 385.1504 Maximum civil penalty (Rule 1504).
(a) Except as provided in paragraph (b) of this section, the
Commission may assess a civil penalty of up to $25,075 for each day
that the violation continues.
* * * * *
0
5. Revise Sec. 385.1602 to read as follows:
Sec. 385.1602 Civil penalties, as adjusted (Rule 1602).
The current inflation-adjusted civil monetary penalties provided by
law within the jurisdiction of the Commission are:
(a) 15 U.S.C. 3414(b)(6)(A)(i), Natural Gas Policy Act of 1978:
$1,388,496.
(b) 16 U.S.C. 823b(c), Federal Power Act: $25,075 per day.
(c) 16 U.S.C. 825n(a), Federal Power Act: $3,275.
(d) 16 U.S.C. 825o-1(b), Federal Power Act: $1,388,496 per day.
(e) 15 U.S.C. 717t-1, Natural Gas Act: $1,388,496 per day.
(f) 49 App. U.S.C. 6(10) (1988), Interstate Commerce Act: $1,453
per offense and $73 per day after the first day.
(g) 49 App. U.S.C. 16(8) (1988), Interstate Commerce Act: $14,536
per day.
(h) 49 App. U.S.C. 19a(k) (1988), Interstate Commerce Act: $1,453
per day.
(i) 49 App. U.S.C. 20(7)(a) (1988), Interstate Commerce Act: $1,453
per day.
[FR Doc. 2022-00616 Filed 1-12-22; 8:45 am]
BILLING CODE 6717-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on January 13, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.