Rule2025-00570
Civil Monetary Penalties-2025 Adjustment
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 14, 2025
Effective
January 14, 2025
Issuing agencies
Surface Transportation Board
Abstract
The Surface Transportation Board (Board) is issuing a final rule to implement the annual inflationary adjustment to its civil monetary penalties, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
Full Text
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<title>Federal Register, Volume 90 Issue 8 (Tuesday, January 14, 2025)</title>
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[Federal Register Volume 90, Number 8 (Tuesday, January 14, 2025)]
[Rules and Regulations]
[Pages 3041-3043]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00570]
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SURFACE TRANSPORTATION BOARD
49 CFR Part 1022
[Docket No. EP 716 (Sub-No. 10)]
Civil Monetary Penalties--2025 Adjustment
AGENCY: Surface Transportation Board.
ACTION: Final rule.
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SUMMARY: The Surface Transportation Board (Board) is issuing a final
rule to implement the annual inflationary adjustment to its civil
monetary penalties, pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015.
DATES: This final rule is effective January 14, 2025.
FOR FURTHER INFORMATION CONTACT: Sarah Fancher at (202) 245-0355. If
you require an accommodation under the Americans with Disabilities Act,
please call (202) 245-0245.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (2015 Act), enacted as part of the Bipartisan Budget Act of
2015, Public Law 114-74, sec. 701, 129 Stat. 584, 599-601, requires
agencies to adjust their civil penalties for inflation annually,
beginning on July 1, 2016, and no later than January 15 of every year
thereafter. In accordance with the 2015 Act, annual inflation
adjustments are to be based on the percent change between the Consumer
Price Index for all Urban Consumers (CPI-U) for October of the previous
year and the October CPI-U of the year before that. Penalty level
adjustments should be rounded to the nearest dollar.
II. Discussion
The statutory definition of civil monetary penalty covers various
civil penalty provisions under the Rail (Part A); Motor Carriers, Water
Carriers, Brokers, and Freight Forwarders (Part B); and Pipeline
Carriers (Part C) provisions of the Interstate Commerce Act, as
amended. The Board's civil (and criminal) penalty authority related to
rail transportation is codified at 49 U.S.C. 11901-11908. The Board's
penalty authority related to motor carriers, water carriers, brokers,
and freight forwarders appears at 49 U.S.C. 14901-14916. The Board's
penalty authority related to pipeline carriers is codified at 49 U.S.C.
16101-16106.\1\ The Board has regulations at 49 CFR part 1022 that
codify the method set forth in the 2015 Act for annually adjusting for
inflation the civil monetary penalties within the Board's jurisdiction.
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\1\ The Board also has various criminal penalty authority,
enforceable in a federal criminal court. Congress has not, however,
authorized federal agencies to adjust statutorily prescribed
criminal penalty provisions for inflation, and this rule does not
address those provisions.
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As set forth in this final rule, the Board is amending 49 CFR part
1022 to make an annual inflation adjustment to the civil monetary
penalties in conformance with the requirements of the 2015 Act. The
adjusted penalties set forth in the rule will apply only to violations
that occur after the effective date of this regulation.
In accordance with the 2015 Act, the annual adjustment adopted here
is calculated by multiplying each current penalty by the cost-of-living
adjustment factor of 1.02598, which reflects the percentage change
between the October 2024 CPI-U (315.664) and the October 2023 CPI-U
(307.671). The table at the end of this decision shows the statutory
citation for each civil penalty, a description of the provision, the
adjusted statutory civil penalty level for 2024, and the adjusted
statutory civil penalty level for 2025.
III. Final Rule
The final rule set forth at the end of this decision is being
issued without notice and comment pursuant to the rulemaking provision
of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), which
does not require that process ``when the agency for good cause finds''
that public notice and comment are ``unnecessary.'' Here, Congress has
mandated that the agency make an annual inflation adjustment to its
civil monetary penalties. The Board has no discretion to set
alternative levels of adjusted civil monetary penalties, because the
amount of the inflation adjustment must be calculated in accordance
with the statutory formula. Given the absence of discretion, the Board
has determined that there is good cause to promulgate this rule without
soliciting public comment and to make this regulation effective
immediately upon publication.
IV. Regulatory Flexibility Statement
The Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612,
generally requires an agency to prepare a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Because the Board has determined that notice and comment are not
required under the APA for this rulemaking, the requirements of the RFA
do not apply.
V. Congressional Review Act
Pursuant to the Congressional Review Act, 5 U.S.C. 801-808, the
Office of Information and Regulatory Affairs has designated this rule
as a non-major rule, as defined by 5 U.S.C. 804(2).
VI. Paperwork Reduction Act
This final rule does not contain a new or amended information
collection requirement subject to the Paperwork Reduction Act of 1995,
44 U.S.C. 3501-3521.
It is ordered:
1. The Board amends its rules as set forth in this decision. Notice
of the final rule will be published in the Federal Register.
2. This decision is effective on its date of publication in the
Federal Register.
Decided: January 7, 2025.
By the Board, Board Members Fuchs, Hedlund, Primus, and Schultz.
Board Member Primus concurred with a separate expression.
BOARD MEMBER PRIMUS, concurring:
For the past couple years when the Board adjusted its civil
monetary penalties, I wrote separately to express concern about the
adequacy of the penalties afforded by statute. Civ. Monetary
Penalties--2024 Adjustment, EP 716 (Sub-No. 9) (STB served Jan. 12,
2024), slip op. at 3 (Member Primus concurring); Civ. Monetary
Penalties--2023 Adjustment, EP 716 (Sub-No. 8) (STB served Jan. 13,
2023), slip op. at 3-4 (Member Primus concurring). My concern remains
today. The Board's decision, consistent with the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015, makes
minor adjustments to its civil penalties--for example, increasing the
penalty in 49 U.S.C. 11901(a) from $9,718 to $9,970. For the reasons I
have stated previously, those penalties are unlikely to provide the
deterrent effect intended by Congress, and Congress should address this
inadequacy.
List of Subjects in 49 CFR Part 1022
Administrative practice and procedures, Brokers, Civil penalties,
Freight forwarders, Motor carriers,
[[Page 3042]]
Pipeline carriers, Rail carriers, Water carriers.
Eden Besera,
Clearance Clerk.
For the reasons set forth in the preamble, part 1022 of title 49,
chapter X, of the Code of Federal Regulations is amended as follows:
PART 1022--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT
0
1. The authority citation for part 1022 continues to read as follows:
Authority: 5 U.S.C. 551-557; 28 U.S.C. 2461 note; 49 U.S.C.
11901, 14901, 14903, 14904, 14905, 14906, 14907, 14908, 14910,
14915, 14916, 16101, 16103.
0
2. Revise Sec. 1022.4(b) to read as follows:
Sec. 1022.4 Cost-of-living adjustments of civil monetary penalties.
* * * * *
(b) The cost-of-living adjustment required by the statute results
in the following adjustments to the civil monetary penalties within the
jurisdiction of the Board:
Table 1 to Paragraph (b)
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2024-- penalty 2025-- adjusted
Civil monetary penalty amount penalty amount
U.S. Code citation description -----------------------------------
EP 716_9 (2024) EP 716_10 (2025)
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Rail Carrier
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49 U.S.C. 11901(a)............................... Unless otherwise $9,718 $9,970
specified, maximum
penalty for each knowing
violation under this
part, and for each day.
49 U.S.C. 11901(b)............................... For each violation under 973 998
sec. 11124(a)(2) or (b).
49 U.S.C. 11901(b)............................... For each day violation 50 51
continues.
49 U.S.C. 11901(c)............................... Maximum penalty for each 9,718 9,970
knowing violation under
secs. 10901-10906.
49 U.S.C. 11901(d)............................... For each violation under 193-973 198-998
sec. 11123 or
11124(a)(1).
49 U.S.C. 11901(d)............................... For each day violation 97 100
continues.
49 U.S.C. 11901(e)(1), (4)....................... For each violation under 973 998
secs. 11141-11145, for
each day.
49 U.S.C. 11901(e)(2), (4)....................... For each violation under 193 198
sec. 11144(b)(1), for
each day.
49 U.S.C. 11901(e)(3)-(4)........................ For each violation of 193 198
reporting requirements,
for each day.
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Motor and Water Carrier
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49 U.S.C. 14901(a)............................... Minimum penalty for each 1,330 1,365
violation and for each
day.
49 U.S.C. 14901(a)............................... For each violation under 13,301 13,647
secs. 13901 or 13902(c).
49 U.S.C. 14901(a)............................... For each violation 33,252 34,116
related to
transportation of
passengers.
49 U.S.C. 14901(b)............................... For each violation of the 26,602-53,204 27,293-54,586
hazardous waste rules
under sec. 3001 of the
Solid Waste Disposal Act.
49 U.S.C. 14901(d)(1)............................ Minimum penalty for each 1,942 1,992
violation of household
good regulations, and
for each day.
49 U.S.C. 14901(d)(2)............................ Minimum penalty for each 19,436 19,941
instance of
transportation of
household goods if
broker provides estimate
without carrier
agreement.
49 U.S.C. 14901(d)(3)............................ Minimum penalty for each 48,586 49,848
instance of
transportation of
household goods without
being registered.
49 U.S.C. 14901(e)............................... Minimum penalty for each 3,887 3,988
violation of a
transportation rule.
49 U.S.C. 14901(e)............................... Minimum penalty for each 9,718 9,970
additional violation.
49 U.S.C. 14903(a)............................... Maximum penalty for 194,359 199,408
undercharge or
overcharge of tariff
rate, for each violation.
49 U.S.C. 14904(a)............................... For first violation, 388 398
rebates at less than the
rate in effect.
49 U.S.C. 14904(a)............................... For all subsequent 487 500
violations.
49 U.S.C. 14904(b)(1)............................ Maximum penalty for first 973 998
violation for
undercharges by freight
forwarders.
49 U.S.C. 14904(b)(1)............................ Maximum penalty for 3,887 3,988
subsequent violations.
49 U.S.C. 14904(b)(2)............................ Maximum penalty for other 973 998
first violations under
sec. 13702.
49 U.S.C. 14904(b)(2)............................ Maximum penalty for 3,887 3,988
subsequent violations.
49 U.S.C. 14905(a)............................... Maximum penalty for each 19,436 19,941
knowing violation of
sec, 14103(a), and
knowingly authorizing,
consenting to, or
permitting a violation
of sec. 14103(a) or (b).
49 U.S.C. 14906.................................. Minimum penalty for first 2,661 2,730
attempt to evade
regulation.
49 U.S.C. 14906.................................. Minimum amount for each 6,650 6,823
subsequent attempt to
evade regulation.
49 U.S.C. 14907.................................. Maximum penalty for 9,718 9,970
recordkeeping/reporting
violations.
49 U.S.C. 14908(a)(2)............................ Maximum penalty for 3,887 3,988
violation of sec.
14908(a)(1).
49 U.S.C. 14910.................................. When another civil 973 998
penalty is not specified
under this part, for
each violation, for each
day.
49 U.S.C. 14915(a)(1)-(2)........................ Minimum penalty for 15,445 15,846
holding a household
goods shipment hostage,
for each day.
49 U.S.C. 14916(c)(1)............................ Maximum penalty for each 13,301 13,647
knowing violation under
sec. 14916(a) for
unlawful brokerage
activities.
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Pipeline Carrier
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49 U.S.C. 16101(a)............................... Maximum penalty for 9,718 9,970
violation of this part,
for each day.
[[Page 3043]]
49 U.S.C. 16101(b)(1), (4)....................... For each recordkeeping 973 998
violation under sec.
15722, each day.
49 U.S.C. 16101(b)(2), (4)....................... For each inspection 193 198
violation liable under
sec. 15722, each day.
49 U.S.C. 16101(b)(3)-(4)........................ For each reporting 193 198
violation under sec.
15723, each day.
49 U.S.C. 16103(a)............................... Maximum penalty for 1,942 1,992
improper disclosure of
information.
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[FR Doc. 2025-00570 Filed 1-13-25; 8:45 am]
BILLING CODE 4915-01-P
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</html>Indexed from Federal Register on January 14, 2025.
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