81_FR_43146 81 FR 43019 - Adjustment of Civil Penalties for Inflation

81 FR 43019 - Adjustment of Civil Penalties for Inflation

NUCLEAR REGULATORY COMMISSION

Federal Register Volume 81, Issue 127 (July 1, 2016)

Page Range43019-43021
FR Document2016-15399

The U.S. Nuclear Regulatory Commission (NRC) is amending its regulations to adjust the maximum Civil Monetary Penalties (CMPs) it can assess under statutes enforced by the agency. These changes are mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Improvements Act). The NRC is amending its regulations to adjust the maximum CMP for a violation of the Atomic Energy Act of 1954, as amended (AEA), or any regulation or order issued under the AEA from $140,000 to $280,469 per violation, per day. Additionally, the NRC is amending provisions concerning program fraud civil penalties by adjusting the maximum CMP under the Program Fraud Civil Remedies Act from $7,000 to $10,781 for each false claim or statement.

Federal Register, Volume 81 Issue 127 (Friday, July 1, 2016)
[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43019-43021]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15399]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 2 and 13

[NRC-2016-0057]
RIN 3150-AJ72


Adjustment of Civil Penalties for Inflation

AGENCY: Nuclear Regulatory Commission.

ACTION: Interim final rule.

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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending its 
regulations to adjust the maximum Civil Monetary Penalties (CMPs) it 
can assess under statutes enforced by the agency. These changes are 
mandated by the Federal Civil Penalties Inflation Adjustment Act of 
1990 (FCPIAA), as amended by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (2015 Improvements Act). The 
NRC is amending its regulations to adjust the maximum CMP for a 
violation of the Atomic Energy Act of 1954, as amended (AEA), or any 
regulation or order issued under the AEA from $140,000 to $280,469 per 
violation, per day. Additionally, the NRC is amending provisions 
concerning program fraud civil penalties by adjusting the maximum CMP 
under the Program Fraud Civil Remedies Act from $7,000 to $10,781 for 
each false claim or statement.

DATES: This interim final rule is effective on August 1, 2016.

ADDRESSES: Please refer to Docket ID NRC-2016-0057 when contacting the 
NRC about the availability of information for this action. You may 
obtain publicly-available information related to this action by any of 
the following methods:
     Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2016-0057. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, contact 
the individual listed in the FOR FURTHER INFORMATION CONTACT section of 
this document.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly-available documents online in the 
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and 
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS, 
please contact the NRC's Public Document Room (PDR) reference staff at 
1-800-397-4209, 301-415-4737, or by email to [email protected]. The 
ADAMS accession number for each document referenced (if it is available 
in ADAMS) is provided the first time that it is mentioned in the 
SUPPLEMENTARY INFORMATION section.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Eric Michel, Office of the General 
Counsel, telephone: 301-287-3704, email: [email protected], U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
II. Discussion
III. Procedural Background
IV. Section-by-Section Analysis
V. Regulatory Flexibility Certification
VI. Regulatory Analysis
VII. Backfitting and Issue Finality
VIII. Plain Writing
IX. National Environmental Policy Act
X. Paperwork Reduction Act
XI. Congressional Review Act

I. Background

    Congress passed the FCPIAA in 1990 to allow for regular adjustment 
for inflation of CMPs, maintain the deterrent effect of civil monetary 
penalties and promote compliance with the law, and improve the 
collection of CMPs by the Federal government (Pub. L. 101-410, 104 
Stat. 890; 28 U.S.C. 2461 note). As amended by the Debt Collection 
Improvement Act of 1996, the FCPIAA required that the head of each 
agency review, and if necessary adjust by regulation, the CMPs assessed 
under statutes enforced by that agency at least once every 4 years, in 
accordance with a statutory formula linked to the percentage change in 
the Consumer Price Index (CPI) (Pub. L. 104-134, 110 Stat. 1321-373). 
The NRC has amended the CMP amounts under statutes it enforces (the AEA 
and Program Fraud Civil Remedies Act) four times, most recently in 2008 
(September 23, 2008; 73 FR 54671). An adjustment was not performed in 
2012 because the FCPIAA required agencies to round their CMP amounts to 
the nearest multiple of $1,000 or $10,000, depending on the size of the 
CMP amount, and the 2012 adjustments based on the statutory formula 
were small enough that no adjustment resulted.
    On November 2, 2015, the FCPIAA was amended by the 2015 
Improvements Act (Sec. 701, Pub. L. 114-74, 129 Stat. 599). The 2015 
Improvements Act requires that the head of each agency through an 
interim final rulemaking make an initial ``catch-up'' adjustment of the 
CMPs assessed under statutes enforced by that agency by July 1, 2016, 
to be effective no later than August 1, 2016. This initial catch-up 
adjustment is to be calculated according to the percentage change 
between the CPI for the month of October 2015 and the CPI for the month 
of October of the calendar year when the CMP amount was last 
established by some means other than a FCPIAA adjustment. The increase 
for the initial catch up adjustment may not exceed 150 percent of the 
CMP amount as of the date of the enactment of the 2015 Improvements 
Act. Following the initial catch-up adjustment, agencies must continue 
to adjust their CMPs by January 15 of each year. This calculation is 
based on the percentage change between the CPI for the preceding month 
of October and the CPI for the month of October in the preceding year. 
All increases under the 2015 Improvements Act are to be rounded to the 
nearest multiple of one dollar.

II. Discussion

    Section 234 of the AEA limits civil penalties for violations of the 
AEA to $100,000 per day, per violation (42 U.S.C. 2282). Congress 
established the $100,000 amount in 1980 (Pub. L. 96-295, 94 Stat. 787). 
As discussed in Section I, ``Background,'' of this

[[Page 43020]]

document, the NRC has adjusted this amount (currently set at $140,000) 
on four occasions since 1980, each time pursuant to the FCPIAA. For 
purposes of calculating the initial catch-up adjustment under the 2015 
Improvements Act, the relevant baseline year for AEA CMPs is 1980 (the 
last time the CMP was established by some means other than a FCPIAA 
adjustment). Using the formula in the 2015 Improvements Act, the 
$100,000 amount established in 1980 will increase by 280.469 percent, 
resulting in a new CMP figure of $280,469.\1\ The 2015 Improvements Act 
caps the increase in penalty levels for the initial catch-up adjustment 
at no more than 150 percent of the CMP level in effect as of November 
2, 2015, which means the amount of increase for AEA CMPs cannot exceed 
$210,000 (150 percent of the current $140,000 amount). A new CMP amount 
of $280,469 is an increase of $140,469, which is within the limit 
imposed by the 2015 Improvements Act. Therefore, the NRC is amending 
Sec.  2.205 of title 10 of the Code of Federal Regulations (10 CFR) to 
reflect a new maximum CMP under the AEA in the amount of $280,469 per 
day, per violation.
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    \1\ This figure is confirmed by guidance from the Office of 
Management and Budget (OMB) concerning implementation of the 2015 
Improvements Act. See OMB M-16-06, Implementation of the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 
(Feb. 24, 2016), available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
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    Monetary penalties under the Program Fraud Civil Remedies Act were 
established in 1986 at $5,000 per claim (Pub. L. 99-509, 100 Stat. 
1938; 31 U.S.C. 3802). The NRC has adjusted this amount (currently set 
at $7,000) multiple times pursuant to the FCPIAA since 1986. Using 1986 
as the baseline year, the $5,000 amount will increase by 215.628 
percent, resulting in a new CMP amount of $10,781. This is a $3,781 
increase from the current $7,000 CMP amount, which is less than the 
statutory cap of a $10,500 increase (150 percent of $7,000). Therefore, 
the NRC is amending 10 CFR 13.3 to reflect a new maximum CMP amount of 
$10,781 per claim.
    As permitted by the 2015 Improvements Act, the NRC may apply these 
increased CMP amounts to any penalties assessed by the agency after the 
effective date of this interim final rule (August 1, 2016), regardless 
of whether the associated violation occurred before or after this date 
(Pub. L. 114-74, 129 Stat. 600; 28 U.S.C. 2461 note). Conforming 
changes to the NRC Enforcement Policy (ADAMS Accession No. ML15029A148) 
will be published in a forthcoming Federal Register notice before the 
effective date of this interim final rule (August 1, 2016).

III. Procedural Background

    This interim final rule has been issued without prior public notice 
or opportunity for public comments. The Administrative Procedure Act (5 
U.S.C. 553(b)(B)) does not require an agency to use the public notice 
and comment process ``when the agency for good cause finds (and 
incorporates the finding and a brief statement of reasons therefore in 
the rules issued) that notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest.'' In 
this instance, the NRC finds, for good cause, that solicitation of 
public comment on this interim final rule is unnecessary. Through the 
FCPIAA and 2015 Improvements Act, Congress has provided a non-
discretionary statutory formula by which the NRC must adjust its CMPs 
for inflation. Requesting public comment on these CMP adjustments, 
which are required by statute, would not result in a different amount.

IV. Section-by-Section Analysis

    Paragraph (j) in Sec.  2.205 is revised by replacing ``$140,000'' 
with ``$280,469''.
    Paragraphs (a)(1)(iv) and (b)(1)(ii) in Sec.  13.3 are revised by 
replacing ``$7,000'' with ``$10,781''.

V. Regulatory Flexibility Certification

    Under the Regulatory Flexibility Act (5 U.S.C. 605(b)), the NRC 
certifies that this interim final rule will not have a significant 
economic impact on a substantial number of small entities.

VI. Regulatory Analysis

    This interim final rule adjusts for inflation the maximum CMPs the 
NRC may assess under the AEA and under the Program Fraud Civil Remedies 
Act of 1986. The formula for determining the amount of the adjustment 
is mandated by Congress in the FCPIAA, as amended by the 2015 
Improvements Act (28 U.S.C. 2461 note). Congress passed this 
legislation on the basis of its findings that the power to impose 
monetary civil penalties is important to deterring violations of 
Federal law and furthering the policy goals of Federal laws and 
regulations. Congress has also found that inflation has diminished the 
impact of these penalties and their effect. The principal purposes of 
this legislation are to provide for adjustment of civil monetary 
penalties for inflation, maintain the deterrent effect of civil 
monetary penalties, and promote compliance with the law. Therefore, 
these are the anticipated impacts of this rulemaking. Direct monetary 
impacts fall only upon licensees or other persons subjected to NRC 
enforcement for violations of the AEA and regulations and orders issued 
under the AEA (10 CFR 2.205), or those licensees or persons subjected 
to liability pursuant to the provisions of the Program Fraud Civil 
Remedies Act of 1986 (31 U.S.C. 3801-3812) and the NRC's implementing 
regulations (10 CFR part 13).

VII. Backfit and Issue Finality

    The NRC has not prepared a backfit analysis for this rulemaking. 
This interim final rule does not involve any provision that would 
impose a backfit, nor is it inconsistent with any issue finality 
provision, as those terms are defined in 10 CFR chapter I. As mandated 
by Congress, this interim final rule increases CMP amounts for 
violations of already-existing NRC regulations and requirements. This 
interim final rule does not modify any licensee system, structures, 
components, designs, approvals, or procedures required for the design, 
construction, or operation of any facility.

VIII. Plain Writing

    The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal 
agencies to write documents in a clear, concise, and well-organized 
manner. The NRC has written this document to be consistent with the 
Plain Writing Act as well as the Presidential Memorandum, ``Plain 
Language in Government Writing,'' published June 10, 1998 (63 FR 
31883).

IX. National Environmental Policy Act

    The NRC has determined that this interim final rule is the type of 
action described as a categorical exclusion in 10 CFR 51.22(c)(1) and 
(2). Therefore, neither an environmental impact statement nor an 
environmental assessment has been prepared for this interim final rule.

X. Paperwork Reduction Statement

    This interim final rule does not contain a collection of 
information as defined in the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501 et seq.) and, therefore, is not subject to the requirements 
of the Paperwork Reduction Act of 1995.

XI. Congressional Review Act

    This interim final rule is a rule as defined in the Congressional 
Review Act (5 U.S.C. 801-808). However, the Office of Management and 
Budget has

[[Page 43021]]

not found it to be a major rule as defined in the Congressional Review 
Act.

List of Subjects

10 CFR Part 2

    Administrative practice and procedure, Antitrust, Byproduct 
material, Classified information, Confidential business information; 
Freedom of information, Environmental protection, Hazardous waste, 
Nuclear energy, Nuclear materials, Nuclear power plants and reactors, 
Penalties, Reporting and recordkeeping requirements, Sex 
discrimination, Source material, Special nuclear material, Waste 
treatment and disposal.

10 CFR Part 13

    Administrative practice and procedure, Claims, Fraud, Organization 
and function (Government agencies), Penalties.

    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended; the Energy Reorganization 
Act of 1974, as amended; 28 U.S.C. 2461 note; and 5 U.S.C. 552 and 553, 
the NRC is adopting the following amendments to 10 CFR parts 2 and 13.

PART 2--AGENCY RULES OF PRACTICE AND PROCEDURE

0
1. The authority citation for part 2 is revised to read as follows:

    Authority: Atomic Energy Act of 1954, secs. 29, 53, 62, 63, 81, 
102, 103, 104, 105, 161, 181, 182, 183, 184, 186, 189, 191, 234 (42 
U.S.C. 2039, 2073, 2092, 2093, 2111, 2132, 2133, 2134, 2135, 2201, 
2231, 2232, 2233, 2234, 2236, 2239, 2241, 2282); Energy 
Reorganization Act of 1974, secs. 201, 206 (42 U.S.C. 5841, 5846); 
Nuclear Waste Policy Act of 1982, secs. 114(f), 134, 135, 141 (42 
U.S.C. 10134(f), 10154, 10155, 10161); Administrative Procedure Act 
(5 U.S.C. 552, 553, 554, 557, 558); National Environmental Policy 
Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note.
    Section 2.205(j) also issued under 28 U.S.C. 2461 note.


0
2. Amend Sec.  2.205 by revising paragraph (j) to read as follows:


Sec.  2.205  Civil penalties.

* * * * *
    (j) Amount. A civil monetary penalty imposed under Section 234 of 
the Atomic Energy Act of 1954, as amended, or any other statute within 
the jurisdiction of the Commission that provides for the imposition of 
a civil penalty in an amount equal to the amount set forth in Section 
234, may not exceed $280,469 for each violation. If any violation is a 
continuing one, each day of such violation shall constitute a separate 
violation for the purposes of computing the applicable civil penalty.

PART 13--PROGRAM FRAUD CIVIL REMEDIES

0
3. The authority citation for part 13 is revised to read as follows:

    Authority: 31 U.S.C. 3801 through 3812; 44 U.S.C. 3504 note.
    Section 13.3 also issued under 28 U.S.C. 2461 note.
    Section 13.13 also issued under 31 U.S.C. 3730.


0
4. Amend Sec.  13.3 by revising paragraphs (a)(1)(iv) and (b)(1)(ii) to 
read as follows:


Sec.  13.3  Basis for civil penalties and assessments.

    (a) * * *
    (1) * * *
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed, shall be subject, in addition 
to any other remedy that may be prescribed by law, to a civil penalty 
of not more than $10,781 for each such claim.
* * * * *
    (b) * * *
    (1) * * *
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement, shall be subject, in addition to any other remedy that may 
be prescribed by law, to a civil penalty of not more than $10,781 for 
each such statement.
* * * * *

    Dated in Rockville, Maryland, this 20 day of June, 2016.

    For the Nuclear Regulatory Commission.
Victor M. McCree,
Executive Director for Operations.
[FR Doc. 2016-15399 Filed 6-30-16; 8:45 am]
 BILLING CODE 7590-01-P



                                                                        Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations                                        43019

                                                  organization is required to obtain a                    ADDRESSES:   Please refer to Docket ID                 CMPs by the Federal government (Pub.
                                                  financial audit under this section, it                  NRC–2016–0057 when contacting the                      L. 101–410, 104 Stat. 890; 28 U.S.C.
                                                  must provide a copy of the audit to FAS                 NRC about the availability of                          2461 note). As amended by the Debt
                                                  within 60 days after the end of its fiscal              information for this action. You may                   Collection Improvement Act of 1996,
                                                  year.                                                   obtain publicly-available information                  the FCPIAA required that the head of
                                                     (f) FAS, the USDA Office of Inspector                related to this action by any of the                   each agency review, and if necessary
                                                  General, or the U.S. Government                         following methods:                                     adjust by regulation, the CMPs assessed
                                                  Accountability Office may conduct or                       • Federal Rulemaking Web site: Go to                under statutes enforced by that agency
                                                  arrange for additional audits of any                    http://www.regulations.gov and search                  at least once every 4 years, in
                                                  recipients or subrecipients, including                  for Docket ID NRC–2016–0057. Address                   accordance with a statutory formula
                                                  for-profit entities and foreign                         questions about NRC dockets to Carol                   linked to the percentage change in the
                                                  organizations. Recipients and                           Gallagher; telephone: 301–415–3463;                    Consumer Price Index (CPI) (Pub. L.
                                                  subrecipients must promptly comply                      email: Carol.Gallagher@nrc.gov. For                    104–134, 110 Stat. 1321–373). The NRC
                                                  with all requests related to such audits.               technical questions, contact the                       has amended the CMP amounts under
                                                  If FAS conducts or arranges for an                      individual listed in the FOR FURTHER                   statutes it enforces (the AEA and
                                                  additional audit, such as an audit with                 INFORMATION CONTACT section of this                    Program Fraud Civil Remedies Act) four
                                                  respect to a particular agreement, FAS                  document.                                              times, most recently in 2008 (September
                                                  will fund the full cost of such an audit,                  • NRC’s Agencywide Documents                        23, 2008; 73 FR 54671). An adjustment
                                                  in accordance with 2 CFR 200.503(d).                    Access and Management System                           was not performed in 2012 because the
                                                                                                          (ADAMS): You may obtain publicly-                      FCPIAA required agencies to round
                                                    Dated: June 24, 2016.
                                                                                                          available documents online in the                      their CMP amounts to the nearest
                                                  Suzanne Palmieri,                                                                                              multiple of $1,000 or $10,000,
                                                                                                          ADAMS Public Documents collection at
                                                  Acting Administrator, Foreign Agricultural                                                                     depending on the size of the CMP
                                                  Service.
                                                                                                          http://www.nrc.gov/reading-rm/
                                                                                                          adams.html. To begin the search, select                amount, and the 2012 adjustments
                                                  [FR Doc. 2016–15537 Filed 6–30–16; 8:45 am]                                                                    based on the statutory formula were
                                                                                                          ‘‘ADAMS Public Documents’’ and then
                                                  BILLING CODE 3410–10–P
                                                                                                          select ‘‘Begin Web-based ADAMS                         small enough that no adjustment
                                                                                                          Search.’’ For problems with ADAMS,                     resulted.
                                                                                                          please contact the NRC’s Public                           On November 2, 2015, the FCPIAA
                                                  NUCLEAR REGULATORY                                      Document Room (PDR) reference staff at                 was amended by the 2015
                                                  COMMISSION                                              1–800–397–4209, 301–415–4737, or by                    Improvements Act (Sec. 701, Pub. L.
                                                                                                          email to pdr.resource@nrc.gov. The                     114–74, 129 Stat. 599). The 2015
                                                  10 CFR Parts 2 and 13                                                                                          Improvements Act requires that the
                                                                                                          ADAMS accession number for each
                                                  [NRC–2016–0057]                                         document referenced (if it is available in             head of each agency through an interim
                                                                                                          ADAMS) is provided the first time that                 final rulemaking make an initial ‘‘catch-
                                                  RIN 3150–AJ72                                                                                                  up’’ adjustment of the CMPs assessed
                                                                                                          it is mentioned in the SUPPLEMENTARY
                                                                                                          INFORMATION section.
                                                                                                                                                                 under statutes enforced by that agency
                                                  Adjustment of Civil Penalties for                                                                              by July 1, 2016, to be effective no later
                                                  Inflation                                                  • NRC’s PDR: You may examine and
                                                                                                          purchase copies of public documents at                 than August 1, 2016. This initial catch-
                                                  AGENCY:  Nuclear Regulatory                                                                                    up adjustment is to be calculated
                                                                                                          the NRC’s PDR, Room O1–F21, One
                                                  Commission.                                                                                                    according to the percentage change
                                                                                                          White Flint North, 11555 Rockville
                                                                                                                                                                 between the CPI for the month of
                                                  ACTION: Interim final rule.                             Pike, Rockville, Maryland 20852.
                                                                                                                                                                 October 2015 and the CPI for the month
                                                                                                          FOR FURTHER INFORMATION CONTACT: Eric                  of October of the calendar year when the
                                                  SUMMARY:   The U.S. Nuclear Regulatory                  Michel, Office of the General Counsel,
                                                  Commission (NRC) is amending its                                                                               CMP amount was last established by
                                                                                                          telephone: 301–287–3704, email:                        some means other than a FCPIAA
                                                  regulations to adjust the maximum Civil                 Eric.Michel2@nrc.gov, U.S. Nuclear
                                                  Monetary Penalties (CMPs) it can assess                                                                        adjustment. The increase for the initial
                                                                                                          Regulatory Commission, Washington,                     catch up adjustment may not exceed
                                                  under statutes enforced by the agency.                  DC 20555–0001.
                                                  These changes are mandated by the                                                                              150 percent of the CMP amount as of the
                                                                                                          SUPPLEMENTARY INFORMATION:                             date of the enactment of the 2015
                                                  Federal Civil Penalties Inflation
                                                  Adjustment Act of 1990 (FCPIAA), as                                                                            Improvements Act. Following the initial
                                                                                                          Table of Contents
                                                  amended by the Federal Civil Penalties                                                                         catch-up adjustment, agencies must
                                                                                                          I. Background                                          continue to adjust their CMPs by
                                                  Inflation Adjustment Act Improvements                   II. Discussion
                                                  Act of 2015 (2015 Improvements Act).                                                                           January 15 of each year. This calculation
                                                                                                          III. Procedural Background                             is based on the percentage change
                                                  The NRC is amending its regulations to                  IV. Section-by-Section Analysis
                                                  adjust the maximum CMP for a violation                                                                         between the CPI for the preceding
                                                                                                          V. Regulatory Flexibility Certification
                                                  of the Atomic Energy Act of 1954, as                    VI. Regulatory Analysis
                                                                                                                                                                 month of October and the CPI for the
                                                  amended (AEA), or any regulation or                     VII. Backfitting and Issue Finality                    month of October in the preceding year.
                                                  order issued under the AEA from                         VIII. Plain Writing                                    All increases under the 2015
                                                  $140,000 to $280,469 per violation, per                 IX. National Environmental Policy Act                  Improvements Act are to be rounded to
                                                  day. Additionally, the NRC is amending                  X. Paperwork Reduction Act                             the nearest multiple of one dollar.
                                                                                                          XI. Congressional Review Act
                                                  provisions concerning program fraud
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                                                                                                                                 II. Discussion
                                                  civil penalties by adjusting the                        I. Background                                             Section 234 of the AEA limits civil
                                                  maximum CMP under the Program                             Congress passed the FCPIAA in 1990                   penalties for violations of the AEA to
                                                  Fraud Civil Remedies Act from $7,000                    to allow for regular adjustment for                    $100,000 per day, per violation (42
                                                  to $10,781 for each false claim or                      inflation of CMPs, maintain the                        U.S.C. 2282). Congress established the
                                                  statement.                                              deterrent effect of civil monetary                     $100,000 amount in 1980 (Pub. L. 96–
                                                  DATES:  This interim final rule is                      penalties and promote compliance with                  295, 94 Stat. 787). As discussed in
                                                  effective on August 1, 2016.                            the law, and improve the collection of                 Section I, ‘‘Background,’’ of this


                                             VerDate Sep<11>2014   16:44 Jun 30, 2016   Jkt 238001   PO 00000   Frm 00037   Fmt 4700   Sfmt 4700   E:\FR\FM\01JYR1.SGM   01JYR1


                                                  43020                 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations

                                                  document, the NRC has adjusted this                     Enforcement Policy (ADAMS Accession                    compliance with the law. Therefore,
                                                  amount (currently set at $140,000) on                   No. ML15029A148) will be published in                  these are the anticipated impacts of this
                                                  four occasions since 1980, each time                    a forthcoming Federal Register notice                  rulemaking. Direct monetary impacts
                                                  pursuant to the FCPIAA. For purposes                    before the effective date of this interim              fall only upon licensees or other persons
                                                  of calculating the initial catch-up                     final rule (August 1, 2016).                           subjected to NRC enforcement for
                                                  adjustment under the 2015                                                                                      violations of the AEA and regulations
                                                                                                          III. Procedural Background
                                                  Improvements Act, the relevant baseline                                                                        and orders issued under the AEA (10
                                                  year for AEA CMPs is 1980 (the last                        This interim final rule has been                    CFR 2.205), or those licensees or
                                                  time the CMP was established by some                    issued without prior public notice or                  persons subjected to liability pursuant
                                                  means other than a FCPIAA                               opportunity for public comments. The                   to the provisions of the Program Fraud
                                                  adjustment). Using the formula in the                   Administrative Procedure Act (5 U.S.C.                 Civil Remedies Act of 1986 (31 U.S.C.
                                                  2015 Improvements Act, the $100,000                     553(b)(B)) does not require an agency to               3801–3812) and the NRC’s
                                                  amount established in 1980 will                         use the public notice and comment                      implementing regulations (10 CFR part
                                                  increase by 280.469 percent, resulting in               process ‘‘when the agency for good                     13).
                                                  a new CMP figure of $280,469.1 The                      cause finds (and incorporates the
                                                                                                          finding and a brief statement of reasons               VII. Backfit and Issue Finality
                                                  2015 Improvements Act caps the
                                                  increase in penalty levels for the initial              therefore in the rules issued) that notice                The NRC has not prepared a backfit
                                                  catch-up adjustment at no more than                     and public procedure thereon are                       analysis for this rulemaking. This
                                                  150 percent of the CMP level in effect                  impracticable, unnecessary, or contrary                interim final rule does not involve any
                                                  as of November 2, 2015, which means                     to the public interest.’’ In this instance,            provision that would impose a backfit,
                                                  the amount of increase for AEA CMPs                     the NRC finds, for good cause, that                    nor is it inconsistent with any issue
                                                  cannot exceed $210,000 (150 percent of                  solicitation of public comment on this                 finality provision, as those terms are
                                                  the current $140,000 amount). A new                     interim final rule is unnecessary.                     defined in 10 CFR chapter I. As
                                                  CMP amount of $280,469 is an increase                   Through the FCPIAA and 2015                            mandated by Congress, this interim final
                                                  of $140,469, which is within the limit                  Improvements Act, Congress has                         rule increases CMP amounts for
                                                  imposed by the 2015 Improvements Act.                   provided a non-discretionary statutory                 violations of already-existing NRC
                                                  Therefore, the NRC is amending § 2.205                  formula by which the NRC must adjust                   regulations and requirements. This
                                                  of title 10 of the Code of Federal                      its CMPs for inflation. Requesting public              interim final rule does not modify any
                                                  Regulations (10 CFR) to reflect a new                   comment on these CMP adjustments,                      licensee system, structures,
                                                  maximum CMP under the AEA in the                        which are required by statute, would                   components, designs, approvals, or
                                                  amount of $280,469 per day, per                         not result in a different amount.                      procedures required for the design,
                                                  violation.                                                                                                     construction, or operation of any
                                                                                                          IV. Section-by-Section Analysis
                                                    Monetary penalties under the Program                                                                         facility.
                                                  Fraud Civil Remedies Act were                             Paragraph (j) in § 2.205 is revised by
                                                                                                          replacing ‘‘$140,000’’ with ‘‘$280,469’’.              VIII. Plain Writing
                                                  established in 1986 at $5,000 per claim
                                                  (Pub. L. 99–509, 100 Stat. 1938; 31                       Paragraphs (a)(1)(iv) and (b)(1)(ii) in                The Plain Writing Act of 2010 (Pub.
                                                  U.S.C. 3802). The NRC has adjusted this                 § 13.3 are revised by replacing ‘‘$7,000’’             L. 111–274) requires Federal agencies to
                                                  amount (currently set at $7,000)                        with ‘‘$10,781’’.                                      write documents in a clear, concise, and
                                                  multiple times pursuant to the FCPIAA                   V. Regulatory Flexibility Certification                well-organized manner. The NRC has
                                                  since 1986. Using 1986 as the baseline                                                                         written this document to be consistent
                                                                                                            Under the Regulatory Flexibility Act                 with the Plain Writing Act as well as the
                                                  year, the $5,000 amount will increase by
                                                                                                          (5 U.S.C. 605(b)), the NRC certifies that              Presidential Memorandum, ‘‘Plain
                                                  215.628 percent, resulting in a new CMP
                                                                                                          this interim final rule will not have a                Language in Government Writing,’’
                                                  amount of $10,781. This is a $3,781
                                                                                                          significant economic impact on a                       published June 10, 1998 (63 FR 31883).
                                                  increase from the current $7,000 CMP
                                                                                                          substantial number of small entities.
                                                  amount, which is less than the statutory                                                                       IX. National Environmental Policy Act
                                                  cap of a $10,500 increase (150 percent                  VI. Regulatory Analysis
                                                  of $7,000). Therefore, the NRC is                                                                                The NRC has determined that this
                                                                                                             This interim final rule adjusts for                 interim final rule is the type of action
                                                  amending 10 CFR 13.3 to reflect a new                   inflation the maximum CMPs the NRC
                                                  maximum CMP amount of $10,781 per                                                                              described as a categorical exclusion in
                                                                                                          may assess under the AEA and under                     10 CFR 51.22(c)(1) and (2). Therefore,
                                                  claim.                                                  the Program Fraud Civil Remedies Act
                                                    As permitted by the 2015                                                                                     neither an environmental impact
                                                                                                          of 1986. The formula for determining                   statement nor an environmental
                                                  Improvements Act, the NRC may apply                     the amount of the adjustment is
                                                  these increased CMP amounts to any                                                                             assessment has been prepared for this
                                                                                                          mandated by Congress in the FCPIAA,                    interim final rule.
                                                  penalties assessed by the agency after                  as amended by the 2015 Improvements
                                                  the effective date of this interim final                Act (28 U.S.C. 2461 note). Congress                    X. Paperwork Reduction Statement
                                                  rule (August 1, 2016), regardless of                    passed this legislation on the basis of its              This interim final rule does not
                                                  whether the associated violation                        findings that the power to impose                      contain a collection of information as
                                                  occurred before or after this date (Pub.                monetary civil penalties is important to               defined in the Paperwork Reduction Act
                                                  L. 114–74, 129 Stat. 600; 28 U.S.C. 2461                deterring violations of Federal law and                of 1995 (44 U.S.C. 3501 et seq.) and,
                                                  note). Conforming changes to the NRC                    furthering the policy goals of Federal                 therefore, is not subject to the
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                                                    1 This figure is confirmed by guidance from the
                                                                                                          laws and regulations. Congress has also                requirements of the Paperwork
                                                  Office of Management and Budget (OMB)
                                                                                                          found that inflation has diminished the                Reduction Act of 1995.
                                                  concerning implementation of the 2015                   impact of these penalties and their
                                                  Improvements Act. See OMB M–16–06,                      effect. The principal purposes of this                 XI. Congressional Review Act
                                                  Implementation of the Federal Civil Penalties           legislation are to provide for adjustment                This interim final rule is a rule as
                                                  Inflation Adjustment Act Improvements Act of 2015
                                                  (Feb. 24, 2016), available at https://
                                                                                                          of civil monetary penalties for inflation,             defined in the Congressional Review
                                                  www.whitehouse.gov/sites/default/files/omb/             maintain the deterrent effect of civil                 Act (5 U.S.C. 801–808). However, the
                                                  memoranda/2016/m-16-06.pdf.                             monetary penalties, and promote                        Office of Management and Budget has


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                                                                        Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations                                          43021

                                                  not found it to be a major rule as                      constitute a separate violation for the                ACTION:Interim final rule and request
                                                  defined in the Congressional Review                     purposes of computing the applicable                   for comment.
                                                  Act.                                                    civil penalty.
                                                                                                                                                                 SUMMARY:    The Office of the Comptroller
                                                  List of Subjects                                        PART 13—PROGRAM FRAUD CIVIL                            of the Currency (OCC) is amending its
                                                  10 CFR Part 2                                           REMEDIES                                               rules of practice and procedure for
                                                                                                                                                                 national banks and its rules of practice
                                                    Administrative practice and                           ■ 3. The authority citation for part 13 is             and procedure in adjudicatory
                                                  procedure, Antitrust, Byproduct                         revised to read as follows:                            proceedings for Federal savings
                                                  material, Classified information,                                                                              associations to publish the maximum
                                                  Confidential business information;                        Authority: 31 U.S.C. 3801 through 3812; 44
                                                                                                          U.S.C. 3504 note.                                      amount, adjusted for inflation, of each
                                                  Freedom of information, Environmental                     Section 13.3 also issued under 28 U.S.C.             civil money penalty within its
                                                  protection, Hazardous waste, Nuclear                    2461 note.                                             jurisdiction to administer. These actions
                                                  energy, Nuclear materials, Nuclear                        Section 13.13 also issued under 31 U.S.C.            are required under the Federal Civil
                                                  power plants and reactors, Penalties,                   3730.                                                  Penalties Inflation Adjustment Act of
                                                  Reporting and recordkeeping                                                                                    1990, as amended by the Federal Civil
                                                  requirements, Sex discrimination,                       ■ 4. Amend § 13.3 by revising
                                                                                                                                                                 Penalties Inflation Adjustment Act
                                                  Source material, Special nuclear                        paragraphs (a)(1)(iv) and (b)(1)(ii) to
                                                                                                                                                                 Improvements Act of 2015.
                                                  material, Waste treatment and disposal.                 read as follows:
                                                                                                                                                                 DATES: This rule is effective on August
                                                  10 CFR Part 13                                          § 13.3 Basis for civil penalties and                   1, 2016. Comments must be submitted
                                                                                                          assessments.                                           by August 30, 2016.
                                                    Administrative practice and
                                                  procedure, Claims, Fraud, Organization                    (a) * * *                                            ADDRESSES: Because paper mail in the
                                                  and function (Government agencies),                       (1) * * *                                            Washington, DC area and at the OCC is
                                                  Penalties.                                                (iv) Is for payment for the provision                subject to delay, commenters are
                                                                                                          of property or services which the person               encouraged to submit comments
                                                    For the reasons set out in the
                                                                                                          has not provided as claimed, shall be                  through the Federal eRulemaking Portal
                                                  preamble and under the authority of the
                                                                                                          subject, in addition to any other remedy               or email, if possible. Please use the title
                                                  Atomic Energy Act of 1954, as amended;
                                                                                                          that may be prescribed by law, to a civil              ‘‘Rules of Practice and Procedure; Rules
                                                  the Energy Reorganization Act of 1974,
                                                                                                          penalty of not more than $10,781 for                   of Practice and Procedure in
                                                  as amended; 28 U.S.C. 2461 note; and 5
                                                                                                          each such claim.                                       Adjudicatory Proceedings; Civil Money
                                                  U.S.C. 552 and 553, the NRC is adopting
                                                  the following amendments to 10 CFR                      *      *     *    *     *                              Penalty Inflation Adjustments’’ to
                                                  parts 2 and 13.                                           (b) * * *                                            facilitate the organization and
                                                                                                            (1) * * *                                            distribution of the comments. You may
                                                  PART 2—AGENCY RULES OF                                    (ii) Contains or is accompanied by an                submit comments by any of the
                                                  PRACTICE AND PROCEDURE                                  express certification or affirmation of                following methods:
                                                                                                          the truthfulness and accuracy of the                      • Federal eRulemaking Portal—
                                                  ■ 1. The authority citation for part 2 is               contents of the statement, shall be                    ‘‘Regulations.gov’’: Go to
                                                  revised to read as follows:                             subject, in addition to any other remedy               www.regulations.gov. Enter ‘‘Docket ID
                                                    Authority: Atomic Energy Act of 1954,                 that may be prescribed by law, to a civil              OCC–2016–0008’’ in the Search Box and
                                                  secs. 29, 53, 62, 63, 81, 102, 103, 104, 105,           penalty of not more than $10,781 for                   click ‘‘Search.’’ Click on ‘‘Comment
                                                  161, 181, 182, 183, 184, 186, 189, 191, 234             each such statement.                                   Now’’ to submit public comments.
                                                  (42 U.S.C. 2039, 2073, 2092, 2093, 2111,                                                                          • Click on the ‘‘Help’’ tab on the
                                                  2132, 2133, 2134, 2135, 2201, 2231, 2232,
                                                                                                          *      *     *    *     *
                                                                                                                                                                 Regulations.gov home page to get
                                                  2233, 2234, 2236, 2239, 2241, 2282); Energy               Dated in Rockville, Maryland, this 20 day            information on using Regulations.gov,
                                                  Reorganization Act of 1974, secs. 201, 206              of June, 2016.                                         including instructions for submitting
                                                  (42 U.S.C. 5841, 5846); Nuclear Waste Policy              For the Nuclear Regulatory Commission.
                                                  Act of 1982, secs. 114(f), 134, 135, 141 (42
                                                                                                                                                                 public comments.
                                                  U.S.C. 10134(f), 10154, 10155, 10161);                  Victor M. McCree,                                         • Email: regs.comments@
                                                  Administrative Procedure Act (5 U.S.C. 552,             Executive Director for Operations.                     occ.treas.gov.
                                                  553, 554, 557, 558); National Environmental             [FR Doc. 2016–15399 Filed 6–30–16; 8:45 am]               • Mail: Legislative and Regulatory
                                                  Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C.          BILLING CODE 7590–01–P
                                                                                                                                                                 Activities Division, Office of the
                                                  3504 note.                                                                                                     Comptroller of the Currency, 400 7th
                                                    Section 2.205(j) also issued under 28                                                                        Street SW., Suite 3E–218, Mail Stop
                                                  U.S.C. 2461 note.                                                                                              9W–11, Washington, DC 20219.
                                                                                                          DEPARTMENT OF THE TREASURY                                • Hand Delivery/Courier: 400 7th
                                                  ■ 2. Amend § 2.205 by revising
                                                  paragraph (j) to read as follows:                       Office of the Comptroller of the                       Street SW., Suite 3E–218, Mail Stop
                                                                                                          Currency                                               9W–11, Washington, DC 20219.
                                                  § 2.205   Civil penalties.                                                                                        • Fax: (571) 465–4326.
                                                  *      *    *     *     *                                                                                         Instructions: You must include
                                                     (j) Amount. A civil monetary penalty                 12 CFR Parts 19 and 109                                ‘‘OCC’’ as the agency name and ‘‘Docket
                                                  imposed under Section 234 of the                        [Docket ID OCC–2016–0008]                              ID OCC–2016–0008’’ in your comment.
                                                  Atomic Energy Act of 1954, as amended,                                                                         In general, OCC will enter all comments
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                                                  or any other statute within the                         RIN 1557–AE04                                          received into the docket and publish
                                                  jurisdiction of the Commission that                     Rules of Practice and Procedure;                       them on the Regulations.gov Web site
                                                  provides for the imposition of a civil                  Rules of Practice and Procedure in                     without change, including any business
                                                  penalty in an amount equal to the                       Adjudicatory Proceedings; Civil Money                  or personal information that you
                                                  amount set forth in Section 234, may                    Penalty Inflation Adjustments                          provide such as name and address
                                                  not exceed $280,469 for each violation.                                                                        information, email addresses, or phone
                                                  If any violation is a continuing one,                   AGENCY: Office of the Comptroller of the               numbers. Comments received, including
                                                  each day of such violation shall                        Currency, Treasury.                                    attachments and other supporting


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Document Created: 2016-07-14 11:37:56
Document Modified: 2016-07-14 11:37:56
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.
DatesThis interim final rule is effective on August 1, 2016.
ContactEric Michel, Office of the General Counsel, telephone: 301-287-3704, email: [email protected], U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.
FR Citation81 FR 43019 
RIN Number3150-AJ72
CFR Citation10 CFR 13
10 CFR 2
CFR AssociatedClaims; Fraud; Organization and Function (government Agencies); Administrative Practice and Procedure; Antitrust; Byproduct Material; Classified Information; Confidential Business Information; Freedom of Information; Environmental Protection; Hazardous Waste; Nuclear Energy; Nuclear Materials; Nuclear Power Plants and Reactors; Penalties; Reporting and Recordkeeping Requirements; Sex Discrimination; Source Material; Special Nuclear Material and Waste Treatment and Disposal

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