81_FR_42690 81 FR 42564 - Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties

81 FR 42564 - Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties

DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration

Federal Register Volume 81, Issue 126 (June 30, 2016)

Page Range42564-42566
FR Document2016-15529

PHMSA is revising references in its regulations to the maximum civil penalties for violations of the Federal Pipeline Safety Laws, or any PHMSA regulation or order issued thereunder. Under the ``Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,'' which further amended the ``Federal Civil Penalties Inflation Adjustment Act of 1990,'' federal agencies are required to adjust their civil monetary penalties effective August 1, 2016, and then annually thereafter, to account for changes in inflation. PHMSA finds good cause to amend the regulation related to civil penalties without notice and opportunity for public comment. For the reasons described below, advance public notice is unnecessary.

Federal Register, Volume 81 Issue 126 (Thursday, June 30, 2016)
[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42564-42566]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15529]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Part 190

[Docket No. PHMSA-2016-0010]
RIN-2137-AF16


Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA), 
DOT.

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: PHMSA is revising references in its regulations to the maximum 
civil penalties for violations of the Federal Pipeline Safety Laws, or 
any PHMSA regulation or order issued thereunder. Under the ``Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015,'' 
which further amended the ``Federal Civil Penalties Inflation 
Adjustment Act of 1990,'' federal agencies are required to adjust their 
civil monetary penalties effective August 1, 2016, and then annually 
thereafter, to account for changes in inflation.
    PHMSA finds good cause to amend the regulation related to civil 
penalties without notice and opportunity for public comment. For the 
reasons described below, advance public notice is unnecessary.

DATES: The effective date of this interim final rule is August 1, 2016.

FOR FURTHER INFORMATION CONTACT: Aaron Glaser, Attorney-Advisor, 
Pipeline Safety Division, Office of Chief Counsel, Pipeline and 
Hazardous Materials Safety Administration, by telephone at 202-366-6318 
or by email at [email protected]; Melanie Stevens, Attorney-Advisor, 
Pipeline Safety Division, Office of Chief Counsel, Pipeline and 
Hazardous Materials Safety Administration, by telephone at 202-366-5466 
or by email at [email protected].

SUPPLEMENTARY INFORMATION: 

I. Procedures

Background

    Section 701 of the ``Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015'' (Pub. L. 114-72) (the 2015 Act) amended 
the ``Federal Civil Penalties Inflation Adjustment Act of 1990'' (Pub. 
L. 101-410) (Inflation Adjustment Act) to require that federal agencies 
adjust their civil penalties with an initial ``catch-up'' adjustment 
through an interim final rulemaking by July 1, 2016, as well as make 
subsequent annual adjustments for inflation. This interim rule adjusts 
the maximum civil penalties assessed under 49 U.S.C. 60101, et seq., or 
regulations or orders issued thereunder. These adjusted penalties will 
apply to violations occurring on or after the effective date of August 
1, 2016.
    On February 24, 2016, the Office of Management and Budget (OMB) 
issued a ``Memorandum for the Heads of Executive Departments and 
Agencies, Implementation of the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015,'' M-16-06 (OMB Memorandum M-
16-06), providing guidance to federal agencies on how to update their 
civil penalties pursuant to the 2015 Act. OMB Memorandum M-16-06 
directs agencies to use multipliers to adjust their civil monetary 
penalties, or the minimum and maximum penalties, based on the year the 
penalty was established or last adjusted by statute or regulation other 
than under the Inflation Adjustment Act (Base Year). For the catch-up 
adjustment, the agency must use the multiplier, based on the Consumer 
Price Index for October 2015, provided in the table of OMB Memorandum 
M-16-06 and multiply it by the current maximum penalty amount. After 
making an adjustment, all penalty levels must be rounded to the nearest 
dollar, but no penalty level may be increased by more than 150 percent 
of corresponding penalty levels in effect on November 2, 2015.
    PHMSA is revising the maximum civil penalty amounts in its 
regulations, consistent with the process outlined in OMB Memorandum M-
16-06. The ``Pipeline Safety, Regulatory Certainty, and Job Creation 
Act of 2011'' (the 2011 Act) (Public Law No: 112-90) adjusted the 
maximum civil penalties for violations under 49 U.S.C. 60101, et seq. 
In 2013, PHMSA amended 49 Code of Federal Regulations (CFR) Sec.  
190.223(a) to conform to the 2011 Act, effective January 2, 2012. (78 
FR 58897). Based on the 2012 effective date, a multiplier 1.02819 was 
used to calculate the updated penalties for violations under 49 U.S.C. 
60101, et seq., and any regulation or order issued thereunder. The 
civil penalty amounts for violations of 49 U.S.C. 60103 and 60111 were 
last set by Congress in 1994 with the Revision of Title 49, United 
States Code Annotated, Transportation (Pub. L. 103-272), and last 
adjusted by PHMSA in 1996 via regulation amending 49 CFR 190.223(c) (61 
FR 18515). The 1996 multiplier of 1.50245 was used to calculate the 
updated penalties for violations of 49 U.S.C. 60103 and 60111. Lastly, 
the penalty amount for violations of 49 U.S.C. 60129 was last set by 
Congress in 2002 with the passage of the ``Pipeline Safety Improvement 
Act of 2002,'' (Pub. L. 107-355), and last adjusted by PHMSA in 2005 
via regulation amending 49 CFR 190.223(d) (70 FR 11137). The 2005 
multiplier of 1.19397 was used to calculate the updated penalties for 
violations of 49 U.S.C. 60129. These revised penalties are shown as 
follows:

[[Page 42565]]



----------------------------------------------------------------------------------------------------------------
                                                                   Current maximum civil   Revised maximum civil
        Violated statute            CFR Citation      Base year           penalty                 penalty
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 60101 et seq., and     49 CFR 190.223(a).         2012  $200,000 for each       $205,638 for each
 any regulation or order issued                                    violation for each      violation for each
 thereunder..                                                      day the violation       day the violation
                                                                   continues, with a       continues, with a
                                                                   maximum penalty not     maximum penalty not
                                                                   to exceed $2,000,000    to exceed $2,056,380
                                                                   for a related series    for a related series
                                                                   of violations.          of violations.
49 U.S.C. 60103;49 U.S.C. 60111  49 CFR 190.223(a).         1996  A penalty not to        An administrative
                                                                   exceed $50,000, which   civil penalty not to
                                                                   may be in addition to   exceed $75,123, which
                                                                   other penalties under   may be in addition to
                                                                   40 U.S.C. 60101, et     other penalties
                                                                   seq.                    assessed under 49
                                                                                           U.S.C. 60101, et seq.
49 U.S.C. 60129................  49 CFR 190.223(d).         2005  A penalty not to        A penalty not to
                                                                   exceed $1,000.          exceed $1,194.
----------------------------------------------------------------------------------------------------------------

    The 2015 Act only applies to penalties prospectively and does not 
retrospectively change any civil penalties previously assessed or 
enforced.
    Starting in January 2017, PHMSA is required to publish in the 
Federal Register annual inflation adjustments for each penalty levied 
under 49 U.S.C. 60101, et seq., and do so no later than January 15 of 
each year.
    The 2015 Act does not alter PHMSA's existing authority to assess 
penalties levied for violations under 49 U.S.C. 60101, et seq. 
Additionally, if future penalties or penalty adjustments are enacted by 
statute or regulation, PHMSA will not adjust these penalties for 
inflation in the first year after these penalties are in effect. PHMSA 
will apply new annual penalty levels to any penalties assessed on or 
after the date these new levels take effect.

II. Justification for Interim Final Rule

    The Administrative Procedure Act (APA) authorizes agencies to 
forego providing the opportunity for prior public notice and comment if 
an agency finds good cause that notice and public procedure are 
unnecessary. See 5 U.S.C. 553(b)(3)(B). In this instance, PHMSA is 
required under the 2015 Act and directed by the OMB Guidance to publish 
this rule by July 1, 2016, with the penalty levels stated herein to 
take effect no later than August 1, 2016. Further, PHMSA is mandated by 
the 2015 Act and directed by the OMB Guidance to adjust the penalty 
levels pursuant to the specific procedures also stated herein. Any 
public comments received through notice and public procedure would 
therefore not affect PHMSA's obligation to comply with the 2015 Act or 
OMB Guidance, nor would they affect the methods used by PHMSA to adjust 
the penalty levels. PHMSA, therefore, finds good cause that APA notice 
and comment are unnecessary for this interim final rule.

III. Rulemaking Analyses and Notices

A. Statutory/Legal Authority for This Rulemaking

    This rule is published under the authority of the 2015 Act, as well 
49 U.S.C. 60101 et seq. These statutes provide PHMSA with the authority 
to levy civil penalties for violations of the federal Pipeline Safety 
Laws. The 2015 Act requires penalties levied by federal agencies 
pursuant to these laws to be adjusted, and for the new adjusted 
penalties to take effect no later than August 1, 2016. Further, 
beginning in January 2017, the 2015 Act requires such penalties to be 
adjusted on an annual basis no later than January 15 of each year.

B. Executive Orders 12866 and 13563, and DOT Regulatory Policies and 
Procedures

    This rule has been evaluated in accordance with existing DOT 
policies and procedures and determined to be non-significant under 
Executive Orders 12866 and 12563. This rule is considered a regulatory 
action under Section 3(e) of Executive Order 12866, and pursuant to 
Section 6(a)(3)(D) of Executive Order 12866. Further, this interim 
final rule is not significant under the Regulatory Policies and 
Procedures of the Department of Transportation because it is limited to 
a ministerial act on which the agency has no discretion and the 
economic impact of this rule is minimal. (44 FR 11034). Accordingly, 
preparation of a regulatory evaluation is not warranted.
    This rule imposes no new costs upon persons conducting operations 
in compliance with federal pipeline statutes and regulations. Those 
operators not in compliance with these statutes and regulations may 
experience an increased cost, based on the penalties levied against 
them for non-compliance; however, this is an avoidable, variable cost 
and thus, is not considered in any evaluation of the significance of 
this regulatory action. The amendments in this rule could provide a 
deterrent effect that could potentially lead to safety benefits; 
however, PHMSA does not expect such benefits to be significant. 
Overall, it is anticipated that costs and benefits from this rule would 
be minimal in real dollars.

C. Executive Order 13132

    PHMSA has analyzed this rule according to Executive Order 13132 on 
federalism. The interim final rule does not have a substantial direct 
effect on the states, the relationship between the national government 
and the states, or the distribution of power and responsibilities among 
the various levels of government. The rule neither imposes substantial 
direct compliance costs on state and local governments nor preempts 
state law governing intrastate pipelines. Therefore, the consultation 
and funding requirements of Executive Order 13132 do not apply.

D. Executive Order 13175

    This rule has been analyzed in accordance with the principles and 
criteria contained in Executive Order 13175 on consultation and 
coordination with Indian tribal governments. Because the rule does not 
have tribal implications, does not impose substantial direct compliance 
costs, and is required by statute, the funding and consultation 
requirements of Executive Order 13175 do not apply.

E. Executive Order 13211

    This rule is not a ``significant energy action'' under Executive 
Order 13211 on actions concerning regulations that significantly affect 
energy supply, distribution, or use. It is not likely to have a 
significant adverse effect on supply, distribution, or energy use. 
Further, the Office of Information and Regulatory Affairs (OIRA) within 
OMB has not designated this rule as a significant energy action.

F. Regulatory Flexibility Act, Executive Order 13272, and DOT 
Procedures and Policies

    The Regulatory Flexibility Act (5 U.S.C. 601-611) requires each 
agency to analyze proposed regulations and assess their impact on small 
businesses and

[[Page 42566]]

other small entities to determine whether the rule is expected to have 
a significant impact on a substantial number of small entities. The 
provisions of this interim final rule may apply specifically to all 
businesses using pipelines to transport hazardous liquids, gas, and LNG 
in interstate commerce. Therefore, PHMSA certifies this rule would not 
have a significant economic impact on a substantial number of small 
entities.

G. Unfunded Mandates Reform Act of 1995

    This rule does not impose unfunded mandates under the Unfunded 
Mandates Reform Act of 1995. It does not result in costs of 
$155,000,000 or more, adjusted for inflation, in any year for either 
state, local, or tribal governments, in the aggregate, or to the 
private sector, and is the least-burdensome alternative that achieves 
the objective of the rule.

H. Paperwork Reduction Act

    This interim final rule imposes no new requirements for 
recordkeeping or reporting.

I. Environmental Assessment

    The National Environmental Policy Act of 1969 (NEPA), as amended 
(42 U.S.C. 4321-4375), requires federal agencies to consider the 
consequences of major federal actions and prepare a detailed statement 
on actions significantly affecting the quality of the human 
environment. When developing potential regulatory requirements, PHMSA 
evaluates those requirements to consider the environmental impact of 
these amendments. Specifically, PHMSA evaluates the risk of release and 
resulting environmental impact; risk to human safety, including any 
risk to first responders; if the proposed regulation would be carried 
out in a defined geographic area; and the resources, especially in 
environmentally sensitive areas, that could be impacted by any proposed 
regulations.
    This interim final rule would be generally applicable to pipeline 
operators, and would not be carried out in a defined geographic area. 
The adjusted, increased civil penalties listed in this interim final 
rule may act as a deterrent to those violating the Federal Pipeline 
Safety Laws, or any PHMSA regulation or order issued thereunder. This 
may result in a positive environmental impact as a result of increased 
compliance with the Federal Pipeline Safety Laws and any PHMSA 
regulations or orders issued thereunder. Based on the above discussion, 
PHMSA concludes there are no significant environmental impacts 
associated with this interim final rule.

J. Privacy Act

    Anyone is able to search the electronic form of any written 
communications and comments received into any of our dockets by the 
name of the individual submitting the document (or signing the 
document, if submitted on behalf of an association, business, labor 
union, etc.). You may review DOT's complete Privacy Act Statement in 
the Federal Register published on April 11, 2000 (Volume 65, Number 70, 
pages 19477-78) or online at https://www.federalregister.gov/articles/2000/04/11/00-8505/privacy-act-of-1974-systems-of-records or https://www.thefederalregister.org/fdsys/pkg/FR-2000-04-11/pdf/00-8505.pdf.

K. Executive Order 13609 and International Trade Analysis

    Sections 3 and 4 of Executive Order 13609 direct an agency to 
conduct a regulatory analysis and ensure that a proposed rule does not 
cause unnecessary obstacles to foreign trade. This requirement applies 
if a rule constitutes a significant regulatory action, or if a 
regulatory evaluation must be prepared for the rule. This interim final 
rule is not a significant regulatory action, but a regulatory action 
under Section 3(e) of Executive Order 12866. PHMSA is not required 
under Executive Orders 12866 and 13563 to submit a regulatory analysis.

L. Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
the spring and fall of each year. The RIN contained in the heading of 
this document can be used to cross-reference this action in the Unified 
Agenda.

List of Subjects in 49 CFR Part 190

    Administrative practice and procedure, Penalties, Pipeline safety.

    In consideration of the foregoing, PHMSA is amending 49 CFR part 
190 as follows:

PART 190--PIPELINE SAFETY ENFORCEMENT AND REGULATORY PROCEDURES

0
1. The authority citation for part 190 is revised to read as follows:

    Authority: 33 U.S.C. 1321(b); 49 U.S.C. 60101 et seq.; 49 CFR 
1.97; Pub. L. 114-74, section 701; Pub. L. No: 112-90, section 2; 
Pub. L. 101-410, sections 4-6.


0
2. Section 190.223 is amended by revising paragraphs (a) though (d) to 
read as follows:


Sec.  190.223  Maximum penalties.

    (a) Any person found to have violated a provision of 49 U.S.C. 
60101 et seq., or any regulation or order issued thereunder is subject 
to an administrative civil penalty not to exceed $205,638 for each 
violation for each day the violation continues, except that the maximum 
administrative civil penalty may not exceed $2,056,380 for any related 
series of violations.
    (b) Any person found to have violated a provision of 33 U.S.C. 
1321(j) or any regulation or order issued thereunder is subject to an 
administrative civil penalty under 33 U.S.C. 1321(b)(6), as adjusted by 
40 CFR 19.4.
    (c) Any person found to have violated any standard or order under 
49 U.S.C. 60103 is subject to an administrative civil penalty not to 
exceed $75,123, which may be in addition to other penalties to which 
such person may be subject under paragraph (a) of this section.
    (d) Any person who is determined to have violated any standard or 
order under 49 U.S.C. 60129 is subject to an administrative civil 
penalty not to exceed $1,194, which may be in addition to other 
penalties to which such person may be subject under paragraph (a) of 
this section.
* * * * *

    Issued in Washington, DC, under authority delegated in 49 CFR 
Part 1.97.
Marie Therese Dominguez,
Administrator.
[FR Doc. 2016-15529 Filed 6-29-16; 8:45 am]
BILLING CODE 4910-60-P



                                              42564              Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations

                                              ■  a. Removing the basic clause date of                 ACTION:   Interim final rule.                          Improvements Act of 2015,’’ M–16–06
                                              ‘‘(OCT 2015)’’ and adding ‘‘(JUN 2016)’’                                                                       (OMB Memorandum M–16–06),
                                              in its place;                                           SUMMARY:    PHMSA is revising references               providing guidance to federal agencies
                                              ■ b. In paragraph (a), in the definition of             in its regulations to the maximum civil                on how to update their civil penalties
                                              ‘‘designated country’’ in paragraph (i),                penalties for violations of the Federal                pursuant to the 2015 Act. OMB
                                              adding, in alphabetical order, the                      Pipeline Safety Laws, or any PHMSA                     Memorandum M–16–06 directs agencies
                                              country of ‘‘Ukraine’’; and                             regulation or order issued thereunder.                 to use multipliers to adjust their civil
                                              ■ c. In the Alternate II clause—                        Under the ‘‘Federal Civil Penalties                    monetary penalties, or the minimum
                                              ■ i. Removing the clause date of ‘‘(OCT                 Inflation Adjustment Act Improvements
                                                                                                                                                             and maximum penalties, based on the
                                              2015)’’ and adding ‘‘(JUN 2016)’’ in its                Act of 2015,’’ which further amended
                                                                                                                                                             year the penalty was established or last
                                              place; and                                              the ‘‘Federal Civil Penalties Inflation
                                                                                                                                                             adjusted by statute or regulation other
                                              ■ ii. In paragraph (a), in the definition               Adjustment Act of 1990,’’ federal
                                                                                                                                                             than under the Inflation Adjustment Act
                                              of ‘‘designated country’’ in paragraph                  agencies are required to adjust their
                                                                                                                                                             (Base Year). For the catch-up
                                              (i), adding, in alphabetical order, the                 civil monetary penalties effective
                                                                                                      August 1, 2016, and then annually                      adjustment, the agency must use the
                                              country of ‘‘Ukraine’’.
                                                                                                      thereafter, to account for changes in                  multiplier, based on the Consumer Price
                                              252.225–7045      [Amended]                             inflation.                                             Index for October 2015, provided in the
                                              ■  4. Amend section 252.225–7045 by—                       PHMSA finds good cause to amend                     table of OMB Memorandum M–16–06
                                              ■  a. Removing the basic clause date of                 the regulation related to civil penalties              and multiply it by the current maximum
                                              ‘‘(OCT 2015)’’ and adding ‘‘(JUN 2016)’’                without notice and opportunity for                     penalty amount. After making an
                                              in its place;                                           public comment. For the reasons                        adjustment, all penalty levels must be
                                              ■ b. In paragraph (a), in the definition of             described below, advance public notice                 rounded to the nearest dollar, but no
                                              ‘‘designated country’’ in paragraph (i),                is unnecessary.                                        penalty level may be increased by more
                                              adding, in alphabetical order, the                      DATES: The effective date of this interim
                                                                                                                                                             than 150 percent of corresponding
                                              country of ‘‘Ukraine’’;                                 final rule is August 1, 2016.                          penalty levels in effect on November 2,
                                              ■ c. In the Alternate I clause—                                                                                2015.
                                                                                                      FOR FURTHER INFORMATION CONTACT:
                                              ■ i. Removing the clause date of ‘‘(OCT                                                                           PHMSA is revising the maximum
                                                                                                      Aaron Glaser, Attorney-Advisor,
                                              2015)’’ and adding ‘‘(JUN 2016)’’ in its                                                                       civil penalty amounts in its regulations,
                                                                                                      Pipeline Safety Division, Office of Chief
                                              place; and                                                                                                     consistent with the process outlined in
                                              ■ ii. In paragraph (a), in the definition
                                                                                                      Counsel, Pipeline and Hazardous
                                                                                                      Materials Safety Administration, by                    OMB Memorandum M–16–06. The
                                              of ‘‘designated country’’ in paragraph                                                                         ‘‘Pipeline Safety, Regulatory Certainty,
                                              (i), adding, in alphabetical order, the                 telephone at 202–366–6318 or by email
                                                                                                      at aaron.glaser@dot.gov; Melanie                       and Job Creation Act of 2011’’ (the 2011
                                              country of ‘‘Ukraine’’;
                                                                                                      Stevens, Attorney-Advisor, Pipeline                    Act) (Public Law No: 112–90) adjusted
                                              ■ d. In the Alternate II clause—
                                              ■ i. Removing the clause date of ‘‘(OCT                 Safety Division, Office of Chief Counsel,              the maximum civil penalties for
                                              2015)’’ and adding ‘‘(JUN 2016)’’ in its                Pipeline and Hazardous Materials Safety                violations under 49 U.S.C. 60101, et seq.
                                              place; and                                              Administration, by telephone at 202–                   In 2013, PHMSA amended 49 Code of
                                              ■ ii. In paragraph (a), in the definition               366–5466 or by email at                                Federal Regulations (CFR) § 190.223(a)
                                              of ‘‘designated country’’ in paragraph                  melanie.stevens@dot.gov.                               to conform to the 2011 Act, effective
                                              (i), adding, in alphabetical order, the                 SUPPLEMENTARY INFORMATION:                             January 2, 2012. (78 FR 58897). Based
                                              country of ‘‘Ukraine’’; and                                                                                    on the 2012 effective date, a multiplier
                                                                                                      I. Procedures                                          1.02819 was used to calculate the
                                              ■ e. In the Alternate III clause—
                                              ■ i. Removing the clause date of ‘‘(OCT                 Background                                             updated penalties for violations under
                                              2015)’’ and adding ‘‘(JUN 2016)’’ in its                                                                       49 U.S.C. 60101, et seq., and any
                                                                                                         Section 701 of the ‘‘Federal Civil
                                              place; and                                                                                                     regulation or order issued thereunder.
                                                                                                      Penalties Inflation Adjustment Act
                                              ■ ii. In paragraph (a), in the definition                                                                      The civil penalty amounts for violations
                                                                                                      Improvements Act of 2015’’ (Pub. L.
                                              of ‘‘designated country’’ in paragraph                  114–72) (the 2015 Act) amended the                     of 49 U.S.C. 60103 and 60111 were last
                                              (i), adding, in alphabetical order, the                 ‘‘Federal Civil Penalties Inflation                    set by Congress in 1994 with the
                                              country of ‘‘Ukraine’’.                                 Adjustment Act of 1990’’ (Pub. L. 101–                 Revision of Title 49, United States Code
                                              [FR Doc. 2016–15258 Filed 6–29–16; 8:45 am]             410) (Inflation Adjustment Act) to                     Annotated, Transportation (Pub. L. 103–
                                              BILLING CODE 5001–06–P                                  require that federal agencies adjust their             272), and last adjusted by PHMSA in
                                                                                                      civil penalties with an initial ‘‘catch-               1996 via regulation amending 49 CFR
                                                                                                      up’’ adjustment through an interim final               190.223(c) (61 FR 18515). The 1996
                                              DEPARTMENT OF TRANSPORTATION                            rulemaking by July 1, 2016, as well as                 multiplier of 1.50245 was used to
                                                                                                      make subsequent annual adjustments                     calculate the updated penalties for
                                              Pipeline and Hazardous Materials                        for inflation. This interim rule adjusts               violations of 49 U.S.C. 60103 and 60111.
                                              Safety Administration                                   the maximum civil penalties assessed                   Lastly, the penalty amount for violations
                                                                                                      under 49 U.S.C. 60101, et seq., or                     of 49 U.S.C. 60129 was last set by
                                              49 CFR Part 190                                         regulations or orders issued thereunder.               Congress in 2002 with the passage of the
                                              [Docket No. PHMSA–2016–0010]                            These adjusted penalties will apply to                 ‘‘Pipeline Safety Improvement Act of
                                                                                                      violations occurring on or after the                   2002,’’ (Pub. L. 107–355), and last
                                              RIN–2137–AF16                                           effective date of August 1, 2016.                      adjusted by PHMSA in 2005 via
srobinson on DSK5SPTVN1PROD with RULES




                                                                                                         On February 24, 2016, the Office of                 regulation amending 49 CFR 190.223(d)
                                              Pipeline Safety: Inflation Adjustment of
                                                                                                      Management and Budget (OMB) issued                     (70 FR 11137). The 2005 multiplier of
                                              Maximum Civil Penalties
                                                                                                      a ‘‘Memorandum for the Heads of                        1.19397 was used to calculate the
                                              AGENCY: Pipeline and Hazardous                          Executive Departments and Agencies,                    updated penalties for violations of 49
                                              Materials Safety Administration                         Implementation of the Federal Civil                    U.S.C. 60129. These revised penalties
                                              (PHMSA), DOT.                                           Penalties Inflation Adjustment Act                     are shown as follows:



                                         VerDate Sep<11>2014   20:00 Jun 29, 2016   Jkt 238001   PO 00000   Frm 00112   Fmt 4700   Sfmt 4700   E:\FR\FM\30JNR1.SGM   30JNR1


                                                                 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations                                                42565

                                                 Violated statute            CFR Citation            Base year            Current maximum civil penalty                   Revised maximum civil penalty

                                              49 U.S.C. 60101 et        49 CFR 190.223(a)                   2012   $200,000 for each violation for each day          $205,638 for each violation for each day
                                                seq., and any reg-                                                   the violation continues, with a max-              the violation continues, with a max-
                                                ulation or order                                                     imum     penalty    not   to    exceed            imum      penalty    not   to   exceed
                                                issued thereunder..                                                  $2,000,000 for a related series of vio-           $2,056,380 for a related series of vio-
                                                                                                                     lations.                                          lations.
                                              49 U.S.C. 60103;49        49 CFR 190.223(a)                   1996   A penalty not to exceed $50,000, which            An administrative civil penalty not to ex-
                                                U.S.C. 60111.                                                        may be in addition to other penalties             ceed $75,123, which may be in addi-
                                                                                                                     under 40 U.S.C. 60101, et seq.                    tion to other penalties assessed under
                                                                                                                                                                       49 U.S.C. 60101, et seq.
                                              49 U.S.C. 60129 ......    49 CFR 190.223(d)                   2005   A penalty not to exceed $1,000 ..............     A penalty not to exceed $1,194.



                                                The 2015 Act only applies to                          III. Rulemaking Analyses and Notices                   benefits; however, PHMSA does not
                                              penalties prospectively and does not                                                                           expect such benefits to be significant.
                                                                                                      A. Statutory/Legal Authority for This
                                              retrospectively change any civil                                                                               Overall, it is anticipated that costs and
                                                                                                      Rulemaking
                                              penalties previously assessed or                                                                               benefits from this rule would be
                                              enforced.                                                 This rule is published under the                     minimal in real dollars.
                                                                                                      authority of the 2015 Act, as well 49
                                                Starting in January 2017, PHMSA is                                                                           C. Executive Order 13132
                                                                                                      U.S.C. 60101 et seq. These statutes
                                              required to publish in the Federal                      provide PHMSA with the authority to                      PHMSA has analyzed this rule
                                              Register annual inflation adjustments                   levy civil penalties for violations of the             according to Executive Order 13132 on
                                              for each penalty levied under 49 U.S.C.                 federal Pipeline Safety Laws. The 2015                 federalism. The interim final rule does
                                              60101, et seq., and do so no later than                 Act requires penalties levied by federal               not have a substantial direct effect on
                                              January 15 of each year.                                agencies pursuant to these laws to be                  the states, the relationship between the
                                                The 2015 Act does not alter PHMSA’s                   adjusted, and for the new adjusted                     national government and the states, or
                                              existing authority to assess penalties                  penalties to take effect no later than                 the distribution of power and
                                              levied for violations under 49 U.S.C.                   August 1, 2016. Further, beginning in                  responsibilities among the various
                                              60101, et seq. Additionally, if future                  January 2017, the 2015 Act requires                    levels of government. The rule neither
                                                                                                      such penalties to be adjusted on an                    imposes substantial direct compliance
                                              penalties or penalty adjustments are
                                                                                                      annual basis no later than January 15 of               costs on state and local governments nor
                                              enacted by statute or regulation,
                                                                                                      each year.                                             preempts state law governing intrastate
                                              PHMSA will not adjust these penalties                                                                          pipelines. Therefore, the consultation
                                              for inflation in the first year after these             B. Executive Orders 12866 and 13563,                   and funding requirements of Executive
                                              penalties are in effect. PHMSA will                     and DOT Regulatory Policies and                        Order 13132 do not apply.
                                              apply new annual penalty levels to any                  Procedures
                                              penalties assessed on or after the date                                                                        D. Executive Order 13175
                                                                                                        This rule has been evaluated in
                                              these new levels take effect.                           accordance with existing DOT policies                     This rule has been analyzed in
                                                                                                                                                             accordance with the principles and
                                              II. Justification for Interim Final Rule                and procedures and determined to be
                                                                                                                                                             criteria contained in Executive Order
                                                                                                      non-significant under Executive Orders
                                                 The Administrative Procedure Act                                                                            13175 on consultation and coordination
                                                                                                      12866 and 12563. This rule is
                                              (APA) authorizes agencies to forego                                                                            with Indian tribal governments. Because
                                                                                                      considered a regulatory action under
                                              providing the opportunity for prior                                                                            the rule does not have tribal
                                                                                                      Section 3(e) of Executive Order 12866,
                                                                                                                                                             implications, does not impose
                                              public notice and comment if an agency                  and pursuant to Section 6(a)(3)(D) of
                                                                                                                                                             substantial direct compliance costs, and
                                              finds good cause that notice and public                 Executive Order 12866. Further, this
                                                                                                                                                             is required by statute, the funding and
                                              procedure are unnecessary. See 5 U.S.C.                 interim final rule is not significant
                                                                                                                                                             consultation requirements of Executive
                                              553(b)(3)(B). In this instance, PHMSA is                under the Regulatory Policies and
                                                                                                                                                             Order 13175 do not apply.
                                              required under the 2015 Act and                         Procedures of the Department of
                                              directed by the OMB Guidance to                         Transportation because it is limited to a              E. Executive Order 13211
                                              publish this rule by July 1, 2016, with                 ministerial act on which the agency has                  This rule is not a ‘‘significant energy
                                              the penalty levels stated herein to take                no discretion and the economic impact                  action’’ under Executive Order 13211 on
                                              effect no later than August 1, 2016.                    of this rule is minimal. (44 FR 11034).                actions concerning regulations that
                                              Further, PHMSA is mandated by the                       Accordingly, preparation of a regulatory               significantly affect energy supply,
                                              2015 Act and directed by the OMB                        evaluation is not warranted.                           distribution, or use. It is not likely to
                                              Guidance to adjust the penalty levels                     This rule imposes no new costs upon                  have a significant adverse effect on
                                                                                                      persons conducting operations in                       supply, distribution, or energy use.
                                              pursuant to the specific procedures also
                                                                                                      compliance with federal pipeline                       Further, the Office of Information and
                                              stated herein. Any public comments
                                                                                                      statutes and regulations. Those                        Regulatory Affairs (OIRA) within OMB
                                              received through notice and public
                                                                                                      operators not in compliance with these                 has not designated this rule as a
                                              procedure would therefore not affect                    statutes and regulations may experience
                                              PHMSA’s obligation to comply with the                                                                          significant energy action.
                                                                                                      an increased cost, based on the penalties
srobinson on DSK5SPTVN1PROD with RULES




                                              2015 Act or OMB Guidance, nor would                     levied against them for non-compliance;                F. Regulatory Flexibility Act, Executive
                                              they affect the methods used by PHMSA                   however, this is an avoidable, variable                Order 13272, and DOT Procedures and
                                              to adjust the penalty levels. PHMSA,                    cost and thus, is not considered in any                Policies
                                              therefore, finds good cause that APA                    evaluation of the significance of this                   The Regulatory Flexibility Act (5
                                              notice and comment are unnecessary for                  regulatory action. The amendments in                   U.S.C. 601–611) requires each agency to
                                              this interim final rule.                                this rule could provide a deterrent effect             analyze proposed regulations and assess
                                                                                                      that could potentially lead to safety                  their impact on small businesses and


                                         VerDate Sep<11>2014   20:00 Jun 29, 2016   Jkt 238001   PO 00000   Frm 00113   Fmt 4700   Sfmt 4700   E:\FR\FM\30JNR1.SGM    30JNR1


                                              42566              Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations

                                              other small entities to determine                       environmental impacts associated with                  section 701; Pub. L. No: 112–90, section 2;
                                              whether the rule is expected to have a                  this interim final rule.                               Pub. L. 101–410, sections 4–6.
                                              significant impact on a substantial                                                                            ■ 2. Section 190.223 is amended by
                                                                                                      J. Privacy Act
                                              number of small entities. The provisions                                                                       revising paragraphs (a) though (d) to
                                              of this interim final rule may apply                      Anyone is able to search the                         read as follows:
                                              specifically to all businesses using                    electronic form of any written
                                              pipelines to transport hazardous liquids,               communications and comments                            § 190.223   Maximum penalties.
                                              gas, and LNG in interstate commerce.                    received into any of our dockets by the                  (a) Any person found to have violated
                                              Therefore, PHMSA certifies this rule                    name of the individual submitting the                  a provision of 49 U.S.C. 60101 et seq.,
                                              would not have a significant economic                   document (or signing the document, if                  or any regulation or order issued
                                              impact on a substantial number of small                 submitted on behalf of an association,                 thereunder is subject to an
                                              entities.                                               business, labor union, etc.). You may                  administrative civil penalty not to
                                                                                                      review DOT’s complete Privacy Act                      exceed $205,638 for each violation for
                                              G. Unfunded Mandates Reform Act of
                                              1995                                                    Statement in the Federal Register                      each day the violation continues, except
                                                                                                      published on April 11, 2000 (Volume                    that the maximum administrative civil
                                                This rule does not impose unfunded                    65, Number 70, pages 19477–78) or                      penalty may not exceed $2,056,380 for
                                              mandates under the Unfunded                             online at https://                                     any related series of violations.
                                              Mandates Reform Act of 1995. It does                    www.federalregister.gov/articles/2000/                   (b) Any person found to have violated
                                              not result in costs of $155,000,000 or                  04/11/00–8505/privacy-act-of-1974-                     a provision of 33 U.S.C. 1321(j) or any
                                              more, adjusted for inflation, in any year               systems-of-records or https://                         regulation or order issued thereunder is
                                              for either state, local, or tribal                      www.gpo.gov/fdsys/pkg/FR–2000–04–                      subject to an administrative civil
                                              governments, in the aggregate, or to the                11/pdf/00–8505.pdf.                                    penalty under 33 U.S.C. 1321(b)(6), as
                                              private sector, and is the least-                                                                              adjusted by 40 CFR 19.4.
                                              burdensome alternative that achieves                    K. Executive Order 13609 and                             (c) Any person found to have violated
                                              the objective of the rule.                              International Trade Analysis                           any standard or order under 49 U.S.C.
                                              H. Paperwork Reduction Act                                 Sections 3 and 4 of Executive Order                 60103 is subject to an administrative
                                                                                                      13609 direct an agency to conduct a                    civil penalty not to exceed $75,123,
                                                This interim final rule imposes no                                                                           which may be in addition to other
                                                                                                      regulatory analysis and ensure that a
                                              new requirements for recordkeeping or                                                                          penalties to which such person may be
                                                                                                      proposed rule does not cause
                                              reporting.                                                                                                     subject under paragraph (a) of this
                                                                                                      unnecessary obstacles to foreign trade.
                                              I. Environmental Assessment                             This requirement applies if a rule                     section.
                                                                                                      constitutes a significant regulatory                     (d) Any person who is determined to
                                                 The National Environmental Policy
                                                                                                      action, or if a regulatory evaluation must             have violated any standard or order
                                              Act of 1969 (NEPA), as amended (42
                                                                                                      be prepared for the rule. This interim                 under 49 U.S.C. 60129 is subject to an
                                              U.S.C. 4321–4375), requires federal
                                                                                                      final rule is not a significant regulatory             administrative civil penalty not to
                                              agencies to consider the consequences
                                                                                                      action, but a regulatory action under                  exceed $1,194, which may be in
                                              of major federal actions and prepare a
                                                                                                      Section 3(e) of Executive Order 12866.                 addition to other penalties to which
                                              detailed statement on actions
                                                                                                      PHMSA is not required under Executive                  such person may be subject under
                                              significantly affecting the quality of the
                                                                                                      Orders 12866 and 13563 to submit a                     paragraph (a) of this section.
                                              human environment. When developing
                                              potential regulatory requirements,                      regulatory analysis.                                   *     *     *    *     *
                                              PHMSA evaluates those requirements to                   L. Regulation Identifier Number (RIN)                    Issued in Washington, DC, under authority
                                              consider the environmental impact of                                                                           delegated in 49 CFR Part 1.97.
                                              these amendments. Specifically,                            A regulation identifier number (RIN)                Marie Therese Dominguez,
                                              PHMSA evaluates the risk of release and                 is assigned to each regulatory action                  Administrator.
                                              resulting environmental impact; risk to                 listed in the Unified Agenda of Federal
                                                                                                                                                             [FR Doc. 2016–15529 Filed 6–29–16; 8:45 am]
                                              human safety, including any risk to first               Regulations. The Regulatory Information
                                                                                                                                                             BILLING CODE 4910–60–P
                                              responders; if the proposed regulation                  Service Center publishes the Unified
                                              would be carried out in a defined                       Agenda in the spring and fall of each
                                              geographic area; and the resources,                     year. The RIN contained in the heading
                                                                                                      of this document can be used to cross-                 SURFACE TRANSPORTATION BOARD
                                              especially in environmentally sensitive
                                              areas, that could be impacted by any                    reference this action in the Unified
                                                                                                                                                             49 CFR Chapter X
                                              proposed regulations.                                   Agenda.
                                                 This interim final rule would be                                                                            [Docket No. EP 719]
                                                                                                      List of Subjects in 49 CFR Part 190
                                              generally applicable to pipeline
                                              operators, and would not be carried out                   Administrative practice and                          Small Entity Size Standards Under the
                                              in a defined geographic area. The                       procedure, Penalties, Pipeline safety.                 Regulatory Flexibility Act
                                              adjusted, increased civil penalties listed                In consideration of the foregoing,                   AGENCY:  Surface Transportation Board
                                              in this interim final rule may act as a                 PHMSA is amending 49 CFR part 190 as                   (Board or STB).
                                              deterrent to those violating the Federal                follows:                                               ACTION: Final statement of agency
                                              Pipeline Safety Laws, or any PHMSA                                                                             policy.
                                              regulation or order issued thereunder.                  PART 190—PIPELINE SAFETY
srobinson on DSK5SPTVN1PROD with RULES




                                              This may result in a positive                           ENFORCEMENT AND REGULATORY                             SUMMARY:   On July 11, 2013, the Board
                                              environmental impact as a result of                     PROCEDURES                                             issued a notice of proposed size
                                              increased compliance with the Federal                                                                          standards for purposes of the Regulatory
                                              Pipeline Safety Laws and any PHMSA                      ■  1. The authority citation for part 190              Flexibility Act, along with a request for
                                              regulations or orders issued thereunder.                is revised to read as follows:                         public comment. This decision
                                              Based on the above discussion, PHMSA                      Authority: 33 U.S.C. 1321(b); 49 U.S.C.              discusses the comment received in
                                              concludes there are no significant                      60101 et seq.; 49 CFR 1.97; Pub. L. 114–74,            response to the proposed size standards


                                         VerDate Sep<11>2014   20:00 Jun 29, 2016   Jkt 238001   PO 00000   Frm 00114   Fmt 4700   Sfmt 4700   E:\FR\FM\30JNR1.SGM   30JNR1



Document Created: 2018-02-08 07:45:30
Document Modified: 2018-02-08 07:45:30
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule.
DatesThe effective date of this interim final rule is August 1, 2016.
ContactAaron Glaser, Attorney-Advisor, Pipeline Safety Division, Office of Chief Counsel, Pipeline and Hazardous Materials Safety Administration, by telephone at 202-366-6318 or by email at [email protected]; Melanie Stevens, Attorney-Advisor, Pipeline Safety Division, Office of Chief Counsel, Pipeline and Hazardous Materials Safety Administration, by telephone at 202-366-5466 or by email at [email protected]
FR Citation81 FR 42564 
CFR AssociatedAdministrative Practice and Procedure; Penalties and Pipeline Safety

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR