81_FR_44066 81 FR 43937 - Civil Monetary Penalty Inflation Adjustments

81 FR 43937 - Civil Monetary Penalty Inflation Adjustments

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 81, Issue 129 (July 6, 2016)

Page Range43937-43941
FR Document2016-15947

The Federal Energy Regulatory Commission (Commission) is issuing an interim final rule to amend its regulations governing the maximum civil monetary penalties assessable for violations of statutes, rules, and orders within the Commission's jurisdiction. The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended most recently by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, requires the Commission to issue this interim final rule.

Federal Register, Volume 81 Issue 129 (Wednesday, July 6, 2016)
[Federal Register Volume 81, Number 129 (Wednesday, July 6, 2016)]
[Rules and Regulations]
[Pages 43937-43941]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15947]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 250 and 385

[Docket No. RM16-16-000; Order No. 826]


Civil Monetary Penalty Inflation Adjustments

AGENCY: Federal Energy Regulatory Commission, Department of Energy.

ACTION: Interim final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is 
issuing an interim final rule to amend its regulations governing the 
maximum civil monetary penalties assessable for violations of statutes, 
rules, and orders within the Commission's jurisdiction. The Federal 
Civil Penalties Inflation Adjustment Act of 1990, as amended most 
recently by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, requires the Commission to issue this interim 
final rule.

DATES: Effective Date: This interim final rule is effective July 6, 
2016.

FOR FURTHER INFORMATION CONTACT: Todd Hettenbach, Attorney, Office of 
Enforcement, Federal Energy Regulatory Commission, 888 First Street 
NE., Washington, DC 20426, (202) 502-8794, [email protected].

SUPPLEMENTARY INFORMATION:

Order No. 826

Interim Final Rule

    1. In this interim final rule, the Federal Energy Regulatory 
Commission (Commission) is complying with its statutory obligation to 
amend the civil monetary penalties provided by law for matters within 
the agency's jurisdiction.

I. Background

    2. The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (2015 Adjustment Act),\1\ which further 
amended the Federal Civil Penalties Inflation Adjustment Act of 1990 
(1990 Adjustment Act),\2\ requires the head of each federal agency to 
issue an ``interim final rule'' by July 1, 2016 adjusting for inflation 
each ``civil monetary penalty'' provided by law within the agency's 
jurisdiction. The agency must then update each such civil monetary 
penalty on an annual basis every January 15 thereafter.\3\
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    \1\ Sec. 701, Public Law 114-74, 129 Stat. 584, 599.
    \2\ Public Law 101-410, 104 Stat. 890 (codified as amended at 28 
U.S.C. 2461 note).
    \3\ 28 U.S.C. 2461 note, at (4).
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II. Discussion

    3. The 2015 Adjustment Act defines a civil monetary penalty as any 
penalty, fine, or other sanction that: (A)(i) Is for a specific 
monetary amount as provided by federal law or (ii) has a maximum amount 
provided for by federal law; (B) is assessed or enforced by an agency 
pursuant to federal law; and (C) is assessed or enforced pursuant to an 
administrative proceeding or a civil action in the federal courts.\4\ 
This definition applies to the maximum civil penalties that may be 
imposed under the Federal Power Act (FPA),\5\ the Natural Gas Act 
(NGA),\6\ the Natural Gas Policy Act of 1978 (NGPA),\7\ and the 
Interstate Commerce Act (ICA).\8\
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    \4\ Id. (3).
    \5\ 16 U.S.C. 791a et seq.
    \6\ 15 U.S.C. 717 et seq.
    \7\ 15 U.S.C. 3301 et seq.
    \8\ 49 App. U.S.C. 1 et seq. (1988).
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    4. Under the 2015 Adjustment Act, for the initial adjustment, the 
first step for such adjustment of a civil monetary penalty for 
inflation requires determining the percentage by which the U.S. 
Department of Labor's Consumer Price Index for all-urban consumers 
(CPI-U) for October of the preceding year exceeds the CPI-U for October 
of the year in which the civil monetary penalty was last set or 
adjusted under a provision of law other than the 1990 and 2015 
Adjustment Acts.\9\ The Office of Management and Budget has instructed 
agencies to use the CPI-U for 1914 when calculating the inflation 
multiplier for penalties established or last adjusted prior to 
1914.\10\ Adjustments previously made for inflation pursuant to the 
1990 Adjustment Act must be excluded.\11\ The first adjustment, which 
is the subject of the present interim final rule, is limited to 150 
percent of the civil monetary penalty that was in effect on November 2, 
2015.\12\
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    \9\ 28 U.S.C. 2461 note, at (5)(b)..
    \10\ See Memorandum from Shaun Donovan, Office of Management and 
Budget, Implementation of the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, 6 (Feb. 24, 2016).
    \11\ Id. (5)(b)(2)(A).
    \12\ Id. (5)(b)(2)(C).

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[[Page 43938]]

    5. The second step requires multiplying the CPI-U percentage 
increase by the applicable November 2, 2015 civil monetary penalty.\13\ 
This step results in a base penalty increase amount.
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    \13\ Id. (5)(a).
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    6. The third step requires rounding the base penalty increase 
amount to the nearest dollar.\14\
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    \14\ Id.
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    7. Under the 2015 Adjustment Act, an agency is directed to use the 
civil monetary penalty applicable at the time of assessment of a civil 
penalty, regardless of the date on which the violation occurred.\15\
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    \15\ Id. (6).
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    8. The Commission currently has civil monetary penalty authority of 
up to $1,000,000 per violation, per day under section 316A(b) of the 
FPA.\16\ This civil monetary penalty applies to violations of 
provisions of Part II of the FPA and to violations of rules and orders 
promulgated pursuant to Part II of the FPA. Congress increased this 
Civil Monetary Penalty in 2005 from $10,000 to $1,000,000, and it 
expanded the scope of conduct to which the penalty applies. The 
Commission has not adjusted this civil monetary penalty for inflation. 
Inflation during the relevant period was 19.397 percent \17\--the 
percentage by which the CPI-U for October of the prior year (October 
2015, for which the CPI-U=237.838) exceeds the CPI-U for October of the 
year in which the Civil Monetary Penalty was last set or adjusted 
(October 2005, for which the CPI-U=199.2). The resulting civil monetary 
penalty is $1,193,970.\18\
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    \16\ 16 U.S.C. 825o-1(b).
    \17\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, http://www.bls.gov/cpi/cpid1602.pdf 
(last visited March 22, 2016); see also Memorandum from Shaun 
Donovan, at 6.
    \18\ The Commission may impose a penalty against a user, owner, 
or operator of the bulk-power system for a violation of a 
reliability standard pursuant to FPA section 215(c)(3), 16 U.S.C. 
824o(c)(3). The Commission concluded in 2006 that FPA section 316A 
establishes the limit on such monetary penalties. See Rule 
Concerning Certification of the Electric Reliability Organization, 
and Procedures for the Establishment, Approval, and Enforcement of 
Electric Reliability Standards, Order No. 672, 71 FR 8662, 8711 
(Feb. 17, 2006).
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    9. The Commission currently has civil monetary penalty authority of 
$11,000 per violation, per day under section 31(c) of the FPA.\19\ This 
civil monetary penalty applies to licensees, permittees, and exemptees 
who: (a) Violate or fail or refuse to comply with any rule or 
regulation issued under Part I of the FPA; (b) violate or fail or 
refuse to comply with any term or condition of a license, permit, or 
exemption under Part I of the FPA; or (c) violate or fail or refuse to 
comply with any order issued pursuant to the Commission's authority to 
monitor and investigate licenses and permits issued under Part I of the 
FPA. Congress established this civil monetary penalty at $10,000 in 
1986.\20\ The only time that the Commission adjusted this civil 
monetary penalty was in 2002, when it increased the civil monetary 
penalty from $10,000 to $11,000 to account for inflation pursuant to 
the 1990 Adjustment Act.\21\ According to the 2015 Adjustment Act, 
however, the Commission must disregard such increases made pursuant to 
the 1990 Adjustment Act. Inflation between October 1986 and October 
2015 was 115.628 percent--the percentage by which the CPI-U for October 
of the prior year (October 2015, for which the CPI-U=237.838) exceeds 
the CPI-U for October of the year in which the civil monetary penalty 
was last set or adjusted for purposes of the 2015 Adjustment Act 
(October 1986, for which the CPI-U=110.3).\22\ The resulting increase 
rounded to the nearest dollar is $11,563, and the resulting civil 
monetary penalty is $21,563.
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    \19\ 16 U.S.C. 823b(c); 18 CFR 385.1602(b).
    \20\ Electric Consumers Protection Act of 1986, Section 12(c), 
Pub. L. 99-495, 100 Stat 1243.
    \21\ Civil Monetary Penalty Inflation Adjustment Rule, Order No. 
692, 67 FR 52410, 52412 (Aug. 12, 2002) (renumbered from Order No. 
890).
    \22\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, http://www.bls.gov/cpi/cpid1602.pdf 
(last visited March 22, 2016); see also Memorandum from Shaun 
Donovan, at 6.
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    10. Under section 315(a) of the FPA, public utilities or licensees 
are currently subject to civil forfeiture for any willful failure to: 
Comply with any order of the Commission; file any report required under 
the FPA or any rule or regulation promulgated pursuant to the FPA; 
submit any information or document required by the Commission in the 
course of an investigation conducted under the FPA; or to appear at any 
hearing or investigation in response to a subpoena issued under the 
FPA.\23\ Congress established this civil monetary penalty at $1,000 in 
1935.\24\ The only time that the Commission adjusted it was in 2002, 
when the Commission increased the civil monetary penalty from $1,000 to 
$1,100 to account for inflation pursuant to the 1990 Adjustment 
Act.\25\ The Commission must disregard such increases made pursuant to 
the 1990 Adjustment Act. Inflation during the relevant period was 
1,636.044 percent--the percentage by which the CPI-U for October of the 
prior year (October 2015, for which the CPI-U=237.838) exceeds the CPI-
U for October of the year in which the Civil Monetary Penalty was last 
set or adjusted (October 1935, for which the CPI-U=13.7).\26\ However, 
the 2015 Adjustment Act caps civil monetary penalty increases at 150 
percent, so the resulting increase is $1,750 and the resulting civil 
monetary penalty is $2,750.
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    \23\ 16 U.S.C. 825n(a); 18 CFR 385.1602(c).
    \24\ 49 Stat. 803, 861 (codified at 16 U.S.C. 825n(a)).
    \25\ Civil Monetary Penalty Inflation Adjustment Rule, 67 FR at 
52412.
    \26\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, http://www.bls.gov/cpi/cpid1602.pdf 
(last visited March 22, 2016); see also Memorandum from Shaun 
Donovan, at 6.
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    11. The Commission currently has civil monetary penalty authority 
of $1,000,000 per violation, per day under section 22 of the NGA.\27\ 
This civil monetary penalty applies to violations of the NGA, and to 
violations of rules, regulations, restrictions, conditions, and orders 
promulgated pursuant to the NGA. Congress established this civil 
monetary penalty in 2005, and neither the Commission nor Congress has 
adjusted it for inflation. Inflation during the relevant period was 
19.397 percent--the percentage by which the CPI-U for October of the 
prior year (October 2015, for which the CPI-U=237.838) exceeds the CPI-
U for October of the year in which the civil monetary penalty was last 
set or adjusted (October 2005, for which the CPI-U=199.2).\28\ The 
resulting civil monetary penalty is $1,193,970.
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    \27\ 15 U.S.C. 717t-1.
    \28\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, http://www.bls.gov/cpi/cpid1602.pdf 
(last visited March 22, 2016); see also Memorandum from Shaun 
Donovan, at 6.
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    12. The Commission currently has civil monetary penalty authority 
of $1,000,000 per violation, per day, under section 504(b)(6)(A)(i) of 
the NGPA.\29\ This civil monetary penalty applies to violations of any 
provision of the NGPA and to violations of any rule or order issued 
under the NGPA, including 18 CFR 358.4, 358.5, 250.16, and 284.13. 
Congress increased this Civil Monetary Penalty in 2005 from $5,000 to 
$1,000,000, and the Commission has not adjusted it since. Nor has it 
made conforming changes to one of its regulations, 18 CFR 250.16(e), to 
reflect the statutory increase of this civil monetary penalty. 
Inflation during the relevant period was 19.397 percent--the percentage 
by which the CPI-U for October of the prior year

[[Page 43939]]

(October 2015, for which the CPI-U=237.838) exceeds the CPI-U for 
October of the year in which the civil monetary penalty was last set or 
adjusted (October 2005, for which the CPI-U=199.2).\30\ The resulting 
civil monetary penalty is $1,193,970.
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    \29\ 15 U.S.C. 3414(b)(6)(A)(i).
    \30\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, at http://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from 
Shaun Donovan, at 6. The Office of Management and Budget has 
instructed agencies to use the CPI-U for 1914 when calculating the 
inflation multiplier for penalties established or last adjusted 
prior to 1914. See Memorandum from Shaun Donovan, at 6.
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    13. Under section 6(10) of the ICA, pipeline carriers, receivers, 
and trustees are currently subject to a civil penalty for failure or 
refusal to comply with regulations or orders concerning posting and 
filing rate schedules issued by the Commission under section 6 of the 
ICA.\31\ Congress established this civil monetary penalty in 1910 at 
$500 per offense and $25 per day after the first day,\32\ and that 
penalty has not been adjusted since. Inflation during the relevant 
period was 2,254.832 percent--the percentage by which the CPI-U for 
October of the prior year (October 2015, for which the CPI-U=237.838) 
exceeds the CPI-U for October 1914 (for which the CPI-U=10.1).\33\ 
However, the 2015 Adjustment Act caps civil monetary penalty increases 
at 150 percent, so the base penalty increase is $750, and the per day 
increase is $37.50. The resulting civil monetary penalty is $1250 per 
offense and $62.50 per day after the first day.
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    \31\ 49 App. U.S.C. 6(10) (1988).
    \32\ 36 Stat. 539, 548 (codified at 49 App. U.S.C. 6(10) (1988).
    \33\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, at http://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from 
Shaun Donovan, Office of Management and Budget, Implementation of 
the Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015, 6 (Feb. 24, 2016). The Office of Management and Budget 
has instructed agencies to use the CPI-U for 1914 when calculating 
the inflation multiplier for penalties established or last adjusted 
prior to 1914. See Memorandum from Shaun Donovan, at 6.
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    14. Under section 16(8) of the ICA, pipeline carriers, 
representatives or agents of carriers, receivers, trustees, or agents 
of the above are currently subject to a civil penalty for knowing or 
neglectful failure to comply with orders issued by the Commission under 
sections 3 (prohibiting undue or unreasonable preferences, advantages, 
discrimination, or disadvantages), 13 (concerning Commission 
investigations and power to set aside, after full hearing, any ``rate, 
fare, charge, classification, regulation, or practice caus[ing] any 
undue or reasonable advantage, preference, or prejudice . . . .''), or 
15 (empowering the Commission, after full hearing, to set aside any 
rate, fare, or charge that ``is or will be unjust or unreasonable or 
unjustly discriminatory or unduly preferential or prejudicial, or 
otherwise in violation of any provisions of [the ICA]'').\34\ Congress 
initially established this civil monetary penalty in 1910 at $5,000 per 
offense, per day,\35\ and it has not been adjusted since. Inflation 
during the relevant period was 2,254.832 percent--percentage by which 
the CPI-U for October of the prior year (October 2015, for which the 
CPI-U=237.838) exceeds the CPI-U for October 1914 (for which the CPI-
U=10.1).\36\ However, the 2015 Adjustment Act caps civil monetary 
penalty increases at 150 percent, so the resulting increase is $7,500 
and the resulting civil monetary penalty is $12,500 per day.
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    \34\ 49 App. U.S.C. 16(8) (1988).
    \35\ 36 Stat. 539, 554 (codified at 49 App. U.S.C. 16(8) 
(1988)).
    \36\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, at http://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from 
Shaun Donovan, at 6. The Office of Management and Budget has 
instructed agencies to use the CPI-U for 1914 when calculating the 
inflation multiplier for penalties established or last adjusted 
prior to 1914. See Memorandum from Shaun Donovan, at 6.
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    15. Under section 19a(k) of the ICA, pipeline carriers, receivers 
of pipeline carriers, and operating trustees are currently subject to a 
civil penalty for their failure to comply with Commission's 
requirements to provide information, or to provide access, in 
connection with the Commission's valuation of a pipeline carrier's 
property under section 19(a) of the ICA.\37\ Congress established this 
civil monetary penalty in 1913 at $500 per offense, per day,\38\ and it 
has not been adjusted since. Inflation during the relevant period was 
2,254.832 percent--percentage by which the CPI-U for October of the 
prior year (October 2015, for which the CPI-U=237.838) exceeds the CPI-
U for October 1914 (for which the CPI-U=10.1).\39\ However, the 2015 
Adjustment Act caps civil monetary penalty increases at 150 percent, so 
the resulting increase is $750 and the resulting civil monetary penalty 
is $1,250 per offense, per day.
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    \37\ 49 App. U.S.C. 19a(k) (1988).
    \38\ 37 Stat. 701, 703 (codified at 49 App. U.S.C. 19a(k) 
(1988)).
    \39\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, at http://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from 
Shaun Donovan, at 6. The Office of Management and Budget has 
instructed agencies to use the CPI-U for 1914 when calculating the 
inflation multiplier for penalties established or last adjusted 
prior to 1914. See Memorandum from Shaun Donovan, at 6.
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    16. Under section 20(7)(a) of the ICA, pipeline carriers and their 
lessors are currently subject to a civil penalty for their failure to 
keep or submit certain accounts, records, or memoranda required by the 
Commission under authority granted in section 20 of the ICA.\40\ 
Congress last adjusted this civil monetary penalty in 1940 at $500 per 
offense, per day,\41\ and it has not been adjusted since. Inflation 
during the relevant period was 1,598.843 percent--percentage by which 
the CPI-U for October of the prior year (October 2015, for which the 
CPI-U=237.838) exceeds the CPI-U for October of the year in which the 
civil monetary penalty was last set or adjusted (October 1940, for 
which the CPI-U=14).\42\ However, the 2015 Adjustment Act caps civil 
monetary penalty increases at 150 percent, so the resulting increase is 
$750 and the resulting civil monetary penalty is $1,250 per offense, 
per day.
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    \40\ 49 App. U.S.C. 20(7)(a) (1988).
    \41\ 54 Stat. 916, 918 (codified at 49 App. U.S.C. 20(7)(a) 
(1988)).
    \42\ See Bureau of Labor Statistics, Table 24. Historical 
Consumer Price Index for All Urban Consumers (CPI-U): U.S. City 
Average, All Items--Continued, at http://www.bls.gov/cpi/cpid1602.pdf (last visited March 22, 2016); see also Memorandum from 
Shaun Donovan, at 6.
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    17. The preceding adjustments are reflected in the following table:

------------------------------------------------------------------------
                                Existing maximum
           Source                civil  monetary     New adjusted civil
                                     penalty          monetary penalty
------------------------------------------------------------------------
16 U.S.C. 825o-1(b), Sec.     $1,000,000 per        $1,193,970 per
 316A of the Federal Power     violation, per day.   violation, per day.
 Act.
16 U.S.C. 823b(c), Sec.       $11,000 per           $21,563 per
 31(c) of the Federal Power    violation, per day.   violation, per day.
 Act.

[[Page 43940]]

 
16 U.S.C. 825n(a), Sec.       $ 1,100 per           $2,750 per
 315(a) of the Federal Power   violation.            violation.
 Act.
15 U.S.C. 717t-1, Sec. 22 of  $1,000,000 per        $1,193,970 per
 the Natural Gas Act.          violation, per day.   violation, per day.
15 U.S.C. 3414(b)(6)(A)(i),   $1,000,000 per        $1,193,970 per
 Sec. 504(b)(6)(A)(i) of the   violation, per day.   violation, per day.
 Natural Gas Policy Act of
 1978.
49 App. U.S.C. 6(10) (1988),  $500 per offense and  $1,250 per offense
 Sec. 6(10) of the             $25 per day after     and $62.50 per day
 Interstate Commerce Act.      the first day.        after the first
                                                     day.
49 App. U.S.C. 16(8) (1988),  $5,000 per            $12,500 per
 Sec. 16(8) of the             violation, per day.   violation, per day.
 Interstate Commerce Act.
49 App. U.S.C. 19a(k)         $500 per offense,     $1,250 per offense,
 (1988), Sec. 19a(k) of the    per day.              per day.
 Interstate Commerce Act.
49 App. U.S.C. 20(7)(a)       $500 per offense,     $1,250 per offense,
 (1988), Sec. 20(7)(a) of      per day.              per day.
 the Interstate Commerce Act.
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III. Administrative Findings

    18. Under the Administrative Procedure Act, a final rule may be 
issued without prior public notice and comment if the agency finds that 
notice and comment are impractical, unnecessary, or contrary to the 
public interest.\43\ The Commission finds that prior notice and comment 
for this rulemaking would be impractical, unnecessary, and contrary to 
the public interest. The Commission is required by law to adopt an 
interim final rule adjusting its civil monetary penalties for 
inflation. Moreover, the formula for the civil monetary penalty 
adjustment is prescribed by Congress and is not subject to the 
Commission's discretion. Because the Commission is required by law to 
undertake these inflation adjustments, and because the Commission lacks 
discretion with respect to the method and amount of the adjustments, 
prior notice and comment would be impractical, unnecessary, and 
contrary to the public interest.
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    \43\ 5 U.S.C. 553(b)(3)(B).
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IV. Regulatory Flexibility Statement

    19. The Regulatory Flexibility Act, as amended, requires agencies 
to certify that rules promulgated under their authority will not have a 
significant economic impact on a substantial number of small 
businesses.\44\ The requirements of the Regulatory Flexibility Act 
apply only to rules promulgated following notice and comment.\45\ The 
requirements of the Regulatory Flexibility Act do not apply to this 
rulemaking because the Commission is issuing this interim final rule 
without notice and comment.
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    \44\ 5 U.S.C. 601 et seq.
    \45\ 5 U.S.C. 603, 604.
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V. Paperwork Reduction Act

    20. This rule does not require the collection of information. The 
Commission is therefore not required to submit this rule for review to 
the Office of Management and Budget pursuant to the Paperwork Reduction 
Act of 1995.\46\
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    \46\ 44 U.S.C. 3507(d).
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VI. Document Availability

    21. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and print the contents of this document via the 
Internet through the Commission's Home Page (http://www.ferc.gov) and 
in the Commission's Public Reference Room during normal business hours 
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A, 
Washington, DC 20426.
    22. From the Commission's Home Page on the Internet, this 
information is available on eLibrary. The full text of this document is 
available on eLibrary in PDF and Microsoft Word format for viewing, 
printing, and downloading. To access this document in eLibrary, type 
the docket number (excluding the last three digits) in the docket 
number field.
    23. User assistance is available for eLibrary and the Commission's 
Web site during normal business hours from the Commission's Online 
Support at 202-502-6652 (toll free at 1-866-208-3676) or email at 
[email protected], or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659, [email protected].

VII. Effective Date and Congressional Notification

    24. For the same reasons the Commission has determined that public 
notice and comment are unnecessary, impractical, and contrary to the 
public interest, the Commission finds good cause to adopt an effective 
date that is less than 30 days after the date of publication in the 
Federal Register pursuant to the Administrative Procedure Act,\47\ and 
therefore, the regulation is effective upon publication in the Federal 
Register.
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    \47\ 5 U.S.C. 553(d)(3).
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    25. The Commission has determined, with the concurrence of the 
Administrator of the Office of Information and Regulatory Affairs of 
the Office of Management and Budget, that this rule is not a ``major 
rule'' as defined in section 351 of the Small Business Regulatory 
Enforcement Fairness Act of 1996. This Final Rule is being submitted to 
the Senate, House, and Government Accountability Office.

List of Subjects

18 CFR Part 250

    Natural gas, Reporting and recordkeeping requirements.

18 CFR Part 385

    Administrative practice and procedure, Electric power, Penalties, 
Pipelines, Reporting and recordkeeping requirements.

    By the Commission.

    Issued: June 29, 2016.
Kimberly D. Bose,
Secretary.

    In consideration of the foregoing, the Commission amends parts 250 
and 385, Chapter I, Title 18, Code of Federal Regulations as follows:

PART 250--FORMS

0
1. The authority citation for part 250 is revised to read as follows:

    Authority: 15 U.S.C. 717-717w, 3301-3432; 42 U.S.C. 7101-7352; 
28 U.S.C. 2461 note.


0
2. Amend Sec.  250.16 by revising paragraph (e)(1) to read as follows:


Sec.  250.16  Format of compliance plan transportation services and 
affiliate transactions.

* * * * *
    (e) Penalty for failure to comply. (1) Any person who transports 
gas for others pursuant to Subparts B or G of

[[Page 43941]]

Part 284 of this chapter and who knowingly violates the requirements of 
Sec. Sec.  358.4 and 358.5, Sec.  250.16, or Sec.  284.13 of this 
chapter will be subject, pursuant to sections 311(c), 501, and 
504(b)(6) of the Natural Gas Policy Act of 1978, to a civil penalty, 
which the Commission may assess, of not more than $1,193,970 for any 
one violation.
* * * * *

PART 385--RULES OF PRACTICE AND PROCEDURE

0
3. The authority citation for part 385 is revised to read as follows:

    Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16 
U.S.C. 791a-825v, 2601-2645; 28 U.S.C. 2461; 31 U.S.C. 3701, 9701; 
42 U.S.C. 7101-7352, 16441, 16451-16463; 49 U.S.C. 60502; 49 App. 
U.S.C. 1-85 (1988); 28 U.S.C. 2461 note (1990); 28 U.S.C. 2461 note 
(2015).


0
4. Revise Sec.  385.1504(a) to read as follows:


Sec.  385.1504  Maximum civil penalty (Rule 1504).

    (a) Except as provided in paragraph (b) of this section, the 
Commission may assess a civil penalty of up to $21,563 for each day 
that the violation continues.
* * * * *

0
5. Revise Sec.  385.1601 to read as follows:


Sec.  385.1601  Scope and purpose (Rule 1601).

    The purpose of this subpart is to make inflation adjustments to the 
civil monetary penalties provided by law within the jurisdiction of the 
Commission. These penalties shall be subject to review and adjustment 
as necessary at least every year in accordance with the Federal Civil 
Penalties Inflation Act of 1990, as amended by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015.

0
6. Revise Sec.  385.1602 to read as follows:


Sec.  385.1602  Civil penalties, as adjusted (Rule 1602).

    The current inflation-adjusted civil monetary penalties provided by 
law within the jurisdiction of the Commission are:
    (a) 15 U.S.C. 3414(b)(6)(A)(i), Natural Gas Policy Act of 1978: 
$1,193,970 per day.
    (b) 16 U.S.C. 823b(c), Federal Power Act: $21,563 per day.
    (c) 16 U.S.C. 825n(a), Federal Power Act: $2,750.
    (d) 16 U.S.C. 825o-1(b), Federal Power Act: $1,193,970 per day.
    (e) 15 U.S.C. 717t-1, Natural Gas Act: $1,193,970 per day.
    (f) 49 App. U.S.C. 6(10) (1988), Interstate Commerce Act: $1,250 
per offense and $62.50 per day after the first day.
    (g) 49 App. U.S.C. 16(8) (1988), Interstate Commerce Act: $12,500 
per day.
    (h) 49 App. U.S.C. 19a(k) (1988), Interstate Commerce Act: $1,250 
per day.
    (i) 49 App. U.S.C. 20(7)(a) (1988), Interstate Commerce Act: $1,250 
per day.

[FR Doc. 2016-15947 Filed 7-5-16; 8:45 am]
BILLING CODE 6717-01-P



                                                             Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Rules and Regulations                                                       43937

                                           Federal Register notice concerning                         Dated: June 29, 2016.                                     of 1990 (1990 Adjustment Act),2
                                           environmental, civil rights, and other                   Lisa Mensah,                                                requires the head of each federal agency
                                           applicable Federal state, and local law;                 Under Secretary, Rural Development.                         to issue an ‘‘interim final rule’’ by July
                                             (vi) Obtaining disbursement of loan                      Dated: June 29, 2016.                                     1, 2016 adjusting for inflation each
                                           funds according to this section and the                  Alexis Taylor,                                              ‘‘civil monetary penalty’’ provided by
                                                                                                    Deputy Under Secretary, Farm and Foreign
                                                                                                                                                                law within the agency’s jurisdiction.
                                           annual Federal Register notice within 5
                                                                                                    Agricultural Services.                                      The agency must then update each such
                                           years. Any loan funds not disbursed
                                                                                                    [FR Doc. 2016–16005 Filed 7–5–16; 8:45 am]
                                                                                                                                                                civil monetary penalty on an annual
                                           within that time will be deobligated and                                                                             basis every January 15 thereafter.3
                                           become unavailable for disbursement.                     BILLING CODE 3410–XV–P

                                             (2) Agency responsibilities. (i) Based                                                                             II. Discussion
                                           on the information presented by the Re-                                                                                 3. The 2015 Adjustment Act defines a
                                           lender and any additional information                    DEPARTMENT OF ENERGY                                        civil monetary penalty as any penalty,
                                           that may be requested by the Agency,                                                                                 fine, or other sanction that: (A)(i) Is for
                                                                                                    Federal Energy Regulatory
                                           the Agency will determine the eligibility                                                                            a specific monetary amount as provided
                                                                                                    Commission
                                           of the applicant and project under this                                                                              by federal law or (ii) has a maximum
                                           subpart.                                                                                                             amount provided for by federal law; (B)
                                                                                                    18 CFR Parts 250 and 385
                                                                                                                                                                is assessed or enforced by an agency
                                             (ii) The Agency will notify the re-                    [Docket No. RM16–16–000; Order No. 826]                     pursuant to federal law; and (C) is
                                           lender of its determination and any                                                                                  assessed or enforced pursuant to an
                                           administrative review or appeal rights                   Civil Monetary Penalty Inflation                            administrative proceeding or a civil
                                           for Agency decisions made under this                     Adjustments                                                 action in the federal courts.4 This
                                           subpart. Programmatic decisions based                                                                                definition applies to the maximum civil
                                           on clear and objective statutory or                      AGENCY:  Federal Energy Regulatory
                                                                                                    Commission, Department of Energy.                           penalties that may be imposed under
                                           regulatory requirements are not                                                                                      the Federal Power Act (FPA),5 the
                                           appealable; however, such decisions are                  ACTION: Interim final rule.
                                                                                                                                                                Natural Gas Act (NGA),6 the Natural Gas
                                           reviewable for appealability by the                      SUMMARY:    The Federal Energy                              Policy Act of 1978 (NGPA),7 and the
                                           National Appeals Division (NAD). The                     Regulatory Commission (Commission) is                       Interstate Commerce Act (ICA).8
                                           applicant and re-lender may appeal any                   issuing an interim final rule to amend                         4. Under the 2015 Adjustment Act, for
                                           Agency decision that directly and                        its regulations governing the maximum                       the initial adjustment, the first step for
                                           adversely impacts them. For an adverse                   civil monetary penalties assessable for                     such adjustment of a civil monetary
                                           decision that impacts the applicant, the                 violations of statutes, rules, and orders                   penalty for inflation requires
                                           re-lender and applicant must jointly                     within the Commission’s jurisdiction.                       determining the percentage by which
                                           execute a written request for appeal for                 The Federal Civil Penalties Inflation                       the U.S. Department of Labor’s
                                           an alleged adverse decision made by the                  Adjustment Act of 1990, as amended                          Consumer Price Index for all-urban
                                           Agency. An adverse decision that only                    most recently by the Federal Civil                          consumers (CPI–U) for October of the
                                           impacts the re-lender may be appealed                    Penalties Inflation Adjustment Act                          preceding year exceeds the CPI–U for
                                           by the re-lender only. A decision by a                   Improvements Act of 2015, requires the                      October of the year in which the civil
                                           re-lender adverse to the interest of an                  Commission to issue this interim final                      monetary penalty was last set or
                                           applicant or borrower is not a decision                  rule.                                                       adjusted under a provision of law other
                                                                                                                                                                than the 1990 and 2015 Adjustment
                                           by the Agency, whether or not                            DATES:  Effective Date: This interim final                  Acts.9 The Office of Management and
                                           concurred in by the Agency. Appeals                      rule is effective July 6, 2016.                             Budget has instructed agencies to use
                                           will be conducted by USDA NAD and                        FOR FURTHER INFORMATION CONTACT:                            the CPI–U for 1914 when calculating the
                                           will be handled in accordance with 7                     Todd Hettenbach, Attorney, Office of                        inflation multiplier for penalties
                                           CFR part 11.                                             Enforcement, Federal Energy Regulatory                      established or last adjusted prior to
                                             (iii) For approved eligible borrowers                  Commission, 888 First Street NE.,                           1914.10 Adjustments previously made
                                           and projects, the Agency will confirm                    Washington, DC 20426, (202) 502–8794,                       for inflation pursuant to the 1990
                                           that all environmental requirements as                   Todd.Hettenbach@ferc.gov.                                   Adjustment Act must be excluded.11
                                           specified in this subpart and 7 CFR part                 SUPPLEMENTARY INFORMATION:                                  The first adjustment, which is the
                                           1970 have been met and that the Re-                                                                                  subject of the present interim final rule,
                                                                                                    Order No. 826                                               is limited to 150 percent of the civil
                                           lender has provided adequate security
                                           for its loan, before the Agency will                     Interim Final Rule                                          monetary penalty that was in effect on
                                           disburse funds to the Re-lender;                                                                                     November 2, 2015.12
                                                                                                      1. In this interim final rule, the
                                             (iv) The Agency will service each re-                  Federal Energy Regulatory Commission
                                                                                                                                                                  2 Public Law 101–410, 104 Stat. 890 (codified as
                                           lender’s loan in accordance with 7 CFR                   (Commission) is complying with its                          amended at 28 U.S.C. 2461 note).
                                           part 1951, subpart E. The Agency may                     statutory obligation to amend the civil                       3 28 U.S.C. 2461 note, at (4).

                                           suspend further disbursements, and                       monetary penalties provided by law for                        4 Id. (3).

                                           pursue any other available and                           matters within the agency’s jurisdiction.                     5 16 U.S.C. 791a et seq.
                                                                                                                                                                  6 15 U.S.C. 717 et seq.
                                           appropriate remedies, if any of the re-                  I. Background                                                 7 15 U.S.C. 3301 et seq.
                                           lender loans become troubled,
                                                                                                      2. The Federal Civil Penalties                              8 49 App. U.S.C. 1 et seq. (1988).
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                                           delinquent, or otherwise in default                                                                                    9 28 U.S.C. 2461 note, at (5)(b)..
                                                                                                    Inflation Adjustment Act Improvements
                                           status, or if the re-lender is not meeting                                                                             10 See Memorandum from Shaun Donovan, Office
                                                                                                    Act of 2015 (2015 Adjustment Act),1
                                           the terms of its Relender’s Agreement.                   which further amended the Federal
                                                                                                                                                                of Management and Budget, Implementation of the
                                                                                                                                                                Federal Civil Penalties Inflation Adjustment Act
                                                                                                    Civil Penalties Inflation Adjustment Act                    Improvements Act of 2015, 6 (Feb. 24, 2016).
                                                                                                                                                                  11 Id. (5)(b)(2)(A).
                                                                                                         1 Sec.   701, Public Law 114–74, 129 Stat. 584, 599.     12 Id. (5)(b)(2)(C).




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                                           43938                 Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Rules and Regulations

                                             5. The second step requires                                license, permit, or exemption under Part                   Inflation during the relevant period was
                                           multiplying the CPI–U percentage                             I of the FPA; or (c) violate or fail or                    1,636.044 percent—the percentage by
                                           increase by the applicable November 2,                       refuse to comply with any order issued                     which the CPI–U for October of the
                                           2015 civil monetary penalty.13 This step                     pursuant to the Commission’s authority                     prior year (October 2015, for which the
                                           results in a base penalty increase                           to monitor and investigate licenses and                    CPI–U=237.838) exceeds the CPI–U for
                                           amount.                                                      permits issued under Part I of the FPA.                    October of the year in which the Civil
                                             6. The third step requires rounding                        Congress established this civil monetary                   Monetary Penalty was last set or
                                           the base penalty increase amount to the                      penalty at $10,000 in 1986.20 The only                     adjusted (October 1935, for which the
                                           nearest dollar.14                                            time that the Commission adjusted this                     CPI–U=13.7).26 However, the 2015
                                             7. Under the 2015 Adjustment Act, an                       civil monetary penalty was in 2002,                        Adjustment Act caps civil monetary
                                           agency is directed to use the civil                          when it increased the civil monetary                       penalty increases at 150 percent, so the
                                           monetary penalty applicable at the time                      penalty from $10,000 to $11,000 to                         resulting increase is $1,750 and the
                                           of assessment of a civil penalty,                            account for inflation pursuant to the                      resulting civil monetary penalty is
                                           regardless of the date on which the                          1990 Adjustment Act.21 According to                        $2,750.
                                           violation occurred.15                                        the 2015 Adjustment Act, however, the                         11. The Commission currently has
                                             8. The Commission currently has civil                      Commission must disregard such                             civil monetary penalty authority of
                                           monetary penalty authority of up to                          increases made pursuant to the 1990                        $1,000,000 per violation, per day under
                                           $1,000,000 per violation, per day under                      Adjustment Act. Inflation between                          section 22 of the NGA.27 This civil
                                           section 316A(b) of the FPA.16 This civil                     October 1986 and October 2015 was                          monetary penalty applies to violations
                                           monetary penalty applies to violations                       115.628 percent—the percentage by                          of the NGA, and to violations of rules,
                                           of provisions of Part II of the FPA and                      which the CPI–U for October of the                         regulations, restrictions, conditions, and
                                           to violations of rules and orders                            prior year (October 2015, for which the                    orders promulgated pursuant to the
                                           promulgated pursuant to Part II of the                       CPI–U=237.838) exceeds the CPI–U for                       NGA. Congress established this civil
                                           FPA. Congress increased this Civil                           October of the year in which the civil                     monetary penalty in 2005, and neither
                                           Monetary Penalty in 2005 from $10,000                        monetary penalty was last set or                           the Commission nor Congress has
                                           to $1,000,000, and it expanded the                           adjusted for purposes of the 2015                          adjusted it for inflation. Inflation during
                                           scope of conduct to which the penalty                        Adjustment Act (October 1986, for                          the relevant period was 19.397
                                           applies. The Commission has not                              which the CPI–U=110.3).22 The                              percent—the percentage by which the
                                           adjusted this civil monetary penalty for                     resulting increase rounded to the                          CPI–U for October of the prior year
                                           inflation. Inflation during the relevant                     nearest dollar is $11,563, and the                         (October 2015, for which the CPI–
                                           period was 19.397 percent 17—the                             resulting civil monetary penalty is                        U=237.838) exceeds the CPI–U for
                                           percentage by which the CPI–U for                            $21,563.                                                   October of the year in which the civil
                                           October of the prior year (October 2015,                        10. Under section 315(a) of the FPA,                    monetary penalty was last set or
                                           for which the CPI–U=237.838) exceeds                         public utilities or licensees are currently                adjusted (October 2005, for which the
                                           the CPI–U for October of the year in                         subject to civil forfeiture for any willful                CPI–U=199.2).28 The resulting civil
                                           which the Civil Monetary Penalty was                         failure to: Comply with any order of the                   monetary penalty is $1,193,970.
                                           last set or adjusted (October 2005, for                      Commission; file any report required                          12. The Commission currently has
                                           which the CPI–U=199.2). The resulting                        under the FPA or any rule or regulation                    civil monetary penalty authority of
                                           civil monetary penalty is $1,193,970.18                      promulgated pursuant to the FPA;                           $1,000,000 per violation, per day, under
                                             9. The Commission currently has civil                      submit any information or document                         section 504(b)(6)(A)(i) of the NGPA.29
                                           monetary penalty authority of $11,000                        required by the Commission in the                          This civil monetary penalty applies to
                                           per violation, per day under section                         course of an investigation conducted                       violations of any provision of the NGPA
                                           31(c) of the FPA.19 This civil monetary                      under the FPA; or to appear at any                         and to violations of any rule or order
                                           penalty applies to licensees, permittees,                    hearing or investigation in response to                    issued under the NGPA, including 18
                                           and exemptees who: (a) Violate or fail                       a subpoena issued under the FPA.23                         CFR 358.4, 358.5, 250.16, and 284.13.
                                           or refuse to comply with any rule or                         Congress established this civil monetary                   Congress increased this Civil Monetary
                                           regulation issued under Part I of the                        penalty at $1,000 in 1935.24 The only                      Penalty in 2005 from $5,000 to
                                           FPA; (b) violate or fail or refuse to                        time that the Commission adjusted it                       $1,000,000, and the Commission has not
                                           comply with any term or condition of a                       was in 2002, when the Commission                           adjusted it since. Nor has it made
                                                                                                        increased the civil monetary penalty                       conforming changes to one of its
                                             13 Id.   (5)(a).                                           from $1,000 to $1,100 to account for                       regulations, 18 CFR 250.16(e), to reflect
                                             14 Id.                                                     inflation pursuant to the 1990                             the statutory increase of this civil
                                             15 Id. (6).                                                Adjustment Act.25 The Commission                           monetary penalty. Inflation during the
                                             16 16  U.S.C. 825o–1(b).                                   must disregard such increases made                         relevant period was 19.397 percent—the
                                              17 See Bureau of Labor Statistics, Table 24.
                                                                                                        pursuant to the 1990 Adjustment Act.                       percentage by which the
                                           Historical Consumer Price Index for All Urban
                                           Consumers (CPI–U): U.S. City Average, All Items—
                                                                                                                                                                   CPI–U for October of the prior year
                                                                                                           20 Electric Consumers Protection Act of 1986,
                                           Continued, http://www.bls.gov/cpi/cpid1602.pdf
                                           (last visited March 22, 2016); see also Memorandum           Section 12(c), Pub. L. 99–495, 100 Stat 1243.                 26 See Bureau of Labor Statistics, Table 24.
                                                                                                           21 Civil Monetary Penalty Inflation Adjustment
                                           from Shaun Donovan, at 6.                                                                                               Historical Consumer Price Index for All Urban
                                              18 The Commission may impose a penalty against            Rule, Order No. 692, 67 FR 52410, 52412 (Aug. 12,          Consumers (CPI–U): U.S. City Average, All Items—
                                           a user, owner, or operator of the bulk-power system          2002) (renumbered from Order No. 890).                     Continued, http://www.bls.gov/cpi/cpid1602.pdf
                                                                                                           22 See Bureau of Labor Statistics, Table 24.            (last visited March 22, 2016); see also Memorandum
                                           for a violation of a reliability standard pursuant to
                                           FPA section 215(c)(3), 16 U.S.C. 824o(c)(3). The             Historical Consumer Price Index for All Urban              from Shaun Donovan, at 6.
                                           Commission concluded in 2006 that FPA section                Consumers (CPI–U): U.S. City Average, All Items—              27 15 U.S.C. 717t–1.
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                                           316A establishes the limit on such monetary                  Continued, http://www.bls.gov/cpi/cpid1602.pdf                28 See Bureau of Labor Statistics, Table 24.

                                           penalties. See Rule Concerning Certification of the          (last visited March 22, 2016); see also Memorandum         Historical Consumer Price Index for All Urban
                                           Electric Reliability Organization, and Procedures for        from Shaun Donovan, at 6.                                  Consumers (CPI–U): U.S. City Average, All Items—
                                                                                                           23 16 U.S.C. 825n(a); 18 CFR 385.1602(c).
                                           the Establishment, Approval, and Enforcement of                                                                         Continued, http://www.bls.gov/cpi/cpid1602.pdf
                                           Electric Reliability Standards, Order No. 672, 71 FR            24 49 Stat. 803, 861 (codified at 16 U.S.C. 825n(a)).   (last visited March 22, 2016); see also Memorandum
                                           8662, 8711 (Feb. 17, 2006).                                     25 Civil Monetary Penalty Inflation Adjustment          from Shaun Donovan, at 6.
                                              19 16 U.S.C. 823b(c); 18 CFR 385.1602(b).                 Rule, 67 FR at 52412.                                         29 15 U.S.C. 3414(b)(6)(A)(i).




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                                                              Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Rules and Regulations                                                         43939

                                           (October 2015, for which the CPI–                        discrimination, or disadvantages), 13                       day,38 and it has not been adjusted
                                           U=237.838) exceeds the CPI–U for                         (concerning Commission investigations                       since. Inflation during the relevant
                                           October of the year in which the civil                   and power to set aside, after full                          period was 2,254.832 percent—
                                           monetary penalty was last set or                         hearing, any ‘‘rate, fare, charge,                          percentage by which the CPI–U for
                                           adjusted (October 2005, for which the                    classification, regulation, or practice                     October of the prior year (October 2015,
                                           CPI–U=199.2).30 The resulting civil                      caus[ing] any undue or reasonable                           for which the CPI–U=237.838) exceeds
                                           monetary penalty is $1,193,970.                          advantage, preference, or prejudice                         the CPI–U for October 1914 (for which
                                              13. Under section 6(10) of the ICA,                   . . . .’’), or 15 (empowering the                           the CPI–U=10.1).39 However, the 2015
                                           pipeline carriers, receivers, and trustees               Commission, after full hearing, to set                      Adjustment Act caps civil monetary
                                           are currently subject to a civil penalty                 aside any rate, fare, or charge that ‘‘is or                penalty increases at 150 percent, so the
                                           for failure or refusal to comply with                    will be unjust or unreasonable or                           resulting increase is $750 and the
                                           regulations or orders concerning posting                 unjustly discriminatory or unduly                           resulting civil monetary penalty is
                                           and filing rate schedules issued by the                  preferential or prejudicial, or otherwise
                                           Commission under section 6 of the                                                                                    $1,250 per offense, per day.
                                                                                                    in violation of any provisions of [the
                                           ICA.31 Congress established this civil                   ICA]’’).34 Congress initially established                      16. Under section 20(7)(a) of the ICA,
                                           monetary penalty in 1910 at $500 per                     this civil monetary penalty in 1910 at                      pipeline carriers and their lessors are
                                           offense and $25 per day after the first                  $5,000 per offense, per day,35 and it has                   currently subject to a civil penalty for
                                           day,32 and that penalty has not been                     not been adjusted since. Inflation during                   their failure to keep or submit certain
                                           adjusted since. Inflation during the                     the relevant period was 2,254.832                           accounts, records, or memoranda
                                           relevant period was 2,254.832 percent—                   percent—percentage by which the CPI–                        required by the Commission under
                                           the percentage by which the CPI–U for                    U for October of the prior year (October                    authority granted in section 20 of the
                                           October of the prior year (October 2015,                 2015, for which the CPI–U=237.838)                          ICA.40 Congress last adjusted this civil
                                           for which the CPI–U=237.838) exceeds                     exceeds the CPI–U for October 1914 (for                     monetary penalty in 1940 at $500 per
                                           the CPI–U for October 1914 (for which                    which the CPI–U=10.1).36 However, the                       offense, per day,41 and it has not been
                                           the CPI–U=10.1).33 However, the 2015                     2015 Adjustment Act caps civil                              adjusted since. Inflation during the
                                           Adjustment Act caps civil monetary                       monetary penalty increases at 150                           relevant period was 1,598.843 percent—
                                           penalty increases at 150 percent, so the                 percent, so the resulting increase is                       percentage by which the CPI–U for
                                           base penalty increase is $750, and the                   $7,500 and the resulting civil monetary                     October of the prior year (October 2015,
                                           per day increase is $37.50. The resulting                penalty is $12,500 per day.                                 for which the CPI–U=237.838) exceeds
                                           civil monetary penalty is $1250 per                         15. Under section 19a(k) of the ICA,                     the CPI–U for October of the year in
                                           offense and $62.50 per day after the first               pipeline carriers, receivers of pipeline                    which the civil monetary penalty was
                                           day.                                                     carriers, and operating trustees are                        last set or adjusted (October 1940, for
                                              14. Under section 16(8) of the ICA,                   currently subject to a civil penalty for
                                           pipeline carriers, representatives or                                                                                which the CPI–U=14).42 However, the
                                                                                                    their failure to comply with
                                           agents of carriers, receivers, trustees, or                                                                          2015 Adjustment Act caps civil
                                                                                                    Commission’s requirements to provide
                                           agents of the above are currently subject                                                                            monetary penalty increases at 150
                                                                                                    information, or to provide access, in
                                           to a civil penalty for knowing or                        connection with the Commission’s                            percent, so the resulting increase is $750
                                           neglectful failure to comply with orders                 valuation of a pipeline carrier’s property                  and the resulting civil monetary penalty
                                           issued by the Commission under                           under section 19(a) of the ICA.37                           is $1,250 per offense, per day.
                                           sections 3 (prohibiting undue or                         Congress established this civil monetary                       17. The preceding adjustments are
                                           unreasonable preferences, advantages,                    penalty in 1913 at $500 per offense, per                    reflected in the following table:

                                                                                                                     Existing maximum civil
                                                                  Source                                                                                              New adjusted civil monetary penalty
                                                                                                                       monetary penalty

                                           16 U.S.C. 825o–1(b), Sec. 316A of the Federal             $1,000,000 per violation, per day ....................     $1,193,970 per violation, per day.
                                             Power Act.
                                           16 U.S.C. 823b(c), Sec. 31(c) of the Federal              $11,000 per violation, per day .........................   $21,563 per violation, per day.
                                             Power Act.


                                              30 See Bureau of Labor Statistics, Table 24.          Act of 2015, 6 (Feb. 24, 2016). The Office of                  38 37 Stat. 701, 703 (codified at 49 App. U.S.C.

                                           Historical Consumer Price Index for All Urban            Management and Budget has instructed agencies to            19a(k) (1988)).
                                           Consumers (CPI–U): U.S. City Average, All Items—         use the CPI–U for 1914 when calculating the                    39 See Bureau of Labor Statistics, Table 24.
                                           Continued, at http://www.bls.gov/cpi/cpid1602.pdf        inflation multiplier for penalties established or last      Historical Consumer Price Index for All Urban
                                           (last visited March 22, 2016); see also Memorandum       adjusted prior to 1914. See Memorandum from                 Consumers (CPI–U): U.S. City Average, All Items—
                                           from Shaun Donovan, at 6. The Office of                  Shaun Donovan, at 6.                                        Continued, at http://www.bls.gov/cpi/cpid1602.pdf
                                           Management and Budget has instructed agencies to            34 49 App. U.S.C. 16(8) (1988).                          (last visited March 22, 2016); see also Memorandum
                                           use the CPI–U for 1914 when calculating the                 35 36 Stat. 539, 554 (codified at 49 App. U.S.C.         from Shaun Donovan, at 6. The Office of
                                           inflation multiplier for penalties established or last                                                               Management and Budget has instructed agencies to
                                           adjusted prior to 1914. See Memorandum from              16(8) (1988)).
                                                                                                                                                                use the CPI–U for 1914 when calculating the
                                                                                                       36 See Bureau of Labor Statistics, Table 24.
                                           Shaun Donovan, at 6.                                                                                                 inflation multiplier for penalties established or last
                                              31 49 App. U.S.C. 6(10) (1988).                       Historical Consumer Price Index for All Urban               adjusted prior to 1914. See Memorandum from
                                              32 36 Stat. 539, 548 (codified at 49 App. U.S.C.      Consumers (CPI–U): U.S. City Average, All Items—            Shaun Donovan, at 6.
                                           6(10) (1988).                                            Continued, at http://www.bls.gov/cpi/cpid1602.pdf              40 49 App. U.S.C. 20(7)(a) (1988).
                                                                                                    (last visited March 22, 2016); see also Memorandum             41 54 Stat. 916, 918 (codified at 49 App. U.S.C.
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                                              33 See Bureau of Labor Statistics, Table 24.

                                           Historical Consumer Price Index for All Urban            from Shaun Donovan, at 6. The Office of                     20(7)(a) (1988)).
                                           Consumers (CPI–U): U.S. City Average, All Items—         Management and Budget has instructed agencies to               42 See Bureau of Labor Statistics, Table 24.

                                           Continued, at http://www.bls.gov/cpi/cpid1602.pdf        use the CPI–U for 1914 when calculating the                 Historical Consumer Price Index for All Urban
                                           (last visited March 22, 2016); see also Memorandum       inflation multiplier for penalties established or last      Consumers (CPI–U): U.S. City Average, All Items—
                                           from Shaun Donovan, Office of Management and             adjusted prior to 1914. See Memorandum from                 Continued, at http://www.bls.gov/cpi/cpid1602.pdf
                                           Budget, Implementation of the Federal Civil              Shaun Donovan, at 6.                                        (last visited March 22, 2016); see also Memorandum
                                           Penalties Inflation Adjustment Act Improvements             37 49 App. U.S.C. 19a(k) (1988).                         from Shaun Donovan, at 6.



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                                           43940               Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Rules and Regulations

                                                                                                                         Existing maximum civil
                                                                   Source                                                                                                   New adjusted civil monetary penalty
                                                                                                                           monetary penalty

                                           16 U.S.C. 825n(a), Sec. 315(a) of the Federal              $ 1,100 per violation ........................................   $2,750 per violation.
                                             Power Act.
                                           15 U.S.C. 717t–1, Sec. 22 of the Natural Gas               $1,000,000 per violation, per day ....................           $1,193,970 per violation, per day.
                                             Act.
                                           15 U.S.C. 3414(b)(6)(A)(i), Sec. 504(b)(6)(A)(i)           $1,000,000 per violation, per day ....................           $1,193,970 per violation, per day.
                                             of the Natural Gas Policy Act of 1978.
                                           49 App. U.S.C. 6(10) (1988), Sec. 6(10) of the             $500 per offense and $25 per day after the                       $1,250 per offense and $62.50 per day after
                                             Interstate Commerce Act.                                   first day.                                                       the first day.
                                           49 App. U.S.C. 16(8) (1988), Sec. 16(8) of the             $5,000 per violation, per day ...........................        $12,500 per violation, per day.
                                             Interstate Commerce Act.
                                           49 App. U.S.C. 19a(k) (1988), Sec. 19a(k) of               $500 per offense, per day ...............................        $1,250 per offense, per day.
                                             the Interstate Commerce Act.
                                           49 App. U.S.C. 20(7)(a) (1988), Sec. 20(7)(a)              $500 per offense, per day ...............................        $1,250 per offense, per day.
                                             of the Interstate Commerce Act.



                                           III. Administrative Findings                              submit this rule for review to the Office                         regulation is effective upon publication
                                              18. Under the Administrative                           of Management and Budget pursuant to                              in the Federal Register.
                                           Procedure Act, a final rule may be                        the Paperwork Reduction Act of 1995.46                              25. The Commission has determined,
                                           issued without prior public notice and                                                                                      with the concurrence of the
                                                                                                     VI. Document Availability                                         Administrator of the Office of
                                           comment if the agency finds that notice
                                           and comment are impractical,                                21. In addition to publishing the full                          Information and Regulatory Affairs of
                                           unnecessary, or contrary to the public                    text of this document in the Federal                              the Office of Management and Budget,
                                           interest.43 The Commission finds that                     Register, the Commission provides all                             that this rule is not a ‘‘major rule’’ as
                                           prior notice and comment for this                         interested persons an opportunity to                              defined in section 351 of the Small
                                           rulemaking would be impractical,                          view and print the contents of this                               Business Regulatory Enforcement
                                           unnecessary, and contrary to the public                   document via the Internet through the                             Fairness Act of 1996. This Final Rule is
                                           interest. The Commission is required by                   Commission’s Home Page (http://                                   being submitted to the Senate, House,
                                           law to adopt an interim final rule                        www.ferc.gov) and in the Commission’s                             and Government Accountability Office.
                                           adjusting its civil monetary penalties for                Public Reference Room during normal
                                                                                                     business hours (8:30 a.m. to 5:00 p.m.                            List of Subjects
                                           inflation. Moreover, the formula for the
                                           civil monetary penalty adjustment is                      Eastern time) at 888 First Street NE.,                            18 CFR Part 250
                                           prescribed by Congress and is not                         Room 2A, Washington, DC 20426.                                      Natural gas, Reporting and
                                           subject to the Commission’s discretion.                     22. From the Commission’s Home                                  recordkeeping requirements.
                                           Because the Commission is required by                     Page on the Internet, this information is
                                           law to undertake these inflation                          available on eLibrary. The full text of                           18 CFR Part 385
                                           adjustments, and because the                              this document is available on eLibrary                              Administrative practice and
                                           Commission lacks discretion with                          in PDF and Microsoft Word format for                              procedure, Electric power, Penalties,
                                           respect to the method and amount of the                   viewing, printing, and downloading. To                            Pipelines, Reporting and recordkeeping
                                           adjustments, prior notice and comment                     access this document in eLibrary, type                            requirements.
                                           would be impractical, unnecessary, and                    the docket number (excluding the last
                                                                                                                                                                         By the Commission.
                                           contrary to the public interest.                          three digits) in the docket number field.
                                                                                                       23. User assistance is available for                              Issued: June 29, 2016.
                                           IV. Regulatory Flexibility Statement                      eLibrary and the Commission’s Web site                            Kimberly D. Bose,
                                             19. The Regulatory Flexibility Act, as                  during normal business hours from the                             Secretary.
                                           amended, requires agencies to certify                     Commission’s Online Support at 202–                                 In consideration of the foregoing, the
                                           that rules promulgated under their                        502–6652 (toll free at 1–866–208–3676)                            Commission amends parts 250 and 385,
                                           authority will not have a significant                     or email at ferconlinesupport@ferc.gov,                           Chapter I, Title 18, Code of Federal
                                           economic impact on a substantial                          or the Public Reference Room at (202)                             Regulations as follows:
                                           number of small businesses.44 The                         502–8371, TTY (202) 502–8659,
                                           requirements of the Regulatory                            public.referenceroom@ferc.gov.                                    PART 250—FORMS
                                           Flexibility Act apply only to rules                       VII. Effective Date and Congressional
                                           promulgated following notice and                                                                                            ■  1. The authority citation for part 250
                                                                                                     Notification                                                      is revised to read as follows:
                                           comment.45 The requirements of the
                                           Regulatory Flexibility Act do not apply                     24. For the same reasons the                                      Authority: 15 U.S.C. 717–717w, 3301–
                                           to this rulemaking because the                            Commission has determined that public                             3432; 42 U.S.C. 7101–7352; 28 U.S.C. 2461
                                           Commission is issuing this interim final                  notice and comment are unnecessary,                               note.
                                           rule without notice and comment.                          impractical, and contrary to the public                           ■ 2. Amend § 250.16 by revising
                                                                                                     interest, the Commission finds good                               paragraph (e)(1) to read as follows:
                                           V. Paperwork Reduction Act                                cause to adopt an effective date that is
                                             20. This rule does not require the                      less than 30 days after the date of                               § 250.16 Format of compliance plan
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                                           collection of information. The                            publication in the Federal Register                               transportation services and affiliate
                                           Commission is therefore not required to                   pursuant to the Administrative                                    transactions.
                                                                                                     Procedure Act,47 and therefore, the                               *     *    *      *     *
                                             43 5 U.S.C. 553(b)(3)(B).                                                                                                   (e) Penalty for failure to comply. (1)
                                             44 5 U.S.C. 601 et seq.                                      46 44   U.S.C. 3507(d).                                      Any person who transports gas for
                                             45 5 U.S.C. 603, 604.                                        47 5   U.S.C. 553(d)(3).                                     others pursuant to Subparts B or G of


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                                                               Federal Register / Vol. 81, No. 129 / Wednesday, July 6, 2016 / Rules and Regulations                                            43941

                                           Part 284 of this chapter and who                             (e) 15 U.S.C. 717t–1, Natural Gas Act:              II. Calculation of Adjustment
                                           knowingly violates the requirements of                     $1,193,970 per day.
                                           §§ 358.4 and 358.5, § 250.16, or § 284.13                    (f) 49 App. U.S.C. 6(10) (1988),                       The OMB issued guidance on
                                           of this chapter will be subject, pursuant                  Interstate Commerce Act: $1,250 per                   calculating the catch-up adjustment. See
                                           to sections 311(c), 501, and 504(b)(6) of                  offense and $62.50 per day after the first            February 24, 2016, Memorandum for the
                                           the Natural Gas Policy Act of 1978, to                     day.                                                  Heads of Executive Departments and
                                           a civil penalty, which the Commission                        (g) 49 App. U.S.C. 16(8) (1988),                    Agencies, from Shaun Donovan,
                                           may assess, of not more than $1,193,970                    Interstate Commerce Act: $12,500 per                  Director, Office of Management and
                                           for any one violation.                                     day.                                                  Budget, Subject: Implementation of the
                                           *     *     *     *    *                                     (h) 49 App. U.S.C. 19a(k) (1988),                   Federal Civil Penalties Inflation
                                                                                                      Interstate Commerce Act: $1,250 per                   Adjustment Act Improvements Act of
                                           PART 385—RULES OF PRACTICE AND                             day.                                                  2015. Under this guidance, the
                                           PROCEDURE                                                    (i) 49 App. U.S.C. 20(7)(a) (1988),                 Commission has identified one
                                                                                                      Interstate Commerce Act: $1,250 per                   applicable civil monetary penalty and
                                           ■  3. The authority citation for part 385                  day.                                                  calculated the catch-up adjustment.
                                           is revised to read as follows:                             [FR Doc. 2016–15947 Filed 7–5–16; 8:45 am]            This rule adjusts the level of the civil
                                             Authority: 5 U.S.C. 551–557; 15 U.S.C.                   BILLING CODE 6717–01–P                                monetary penalty contained in 25 CFR
                                           717–717z, 3301–3432; 16 U.S.C. 791a–825v,                                                                        575.4 (‘‘The Chairman may assess a civil
                                           2601–2645; 28 U.S.C. 2461; 31 U.S.C. 3701,                                                                       fine, not to exceed $25,000 per
                                           9701; 42 U.S.C. 7101–7352, 16441, 16451–                   DEPARTMENT OF THE INTERIOR                            violation, against a tribe, management
                                           16463; 49 U.S.C. 60502; 49 App. U.S.C. 1–85
                                                                                                                                                            contractor, or individual operating
                                           (1988); 28 U.S.C. 2461 note (1990); 28 U.S.C.              National Indian Gaming Commission
                                           2461 note (2015).                                                                                                Indian gaming for each notice of
                                                                                                                                                            violation . . .’’). The OMB provided to
                                           ■ 4. Revise § 385.1504(a) to read as                       25 CFR Part 575                                       agencies a table of multipliers to adjust
                                           follows:                                                                                                         the penalty level based on the year that
                                                                                                      Civil Penalty Inflation Adjustment
                                           § 385.1504       Maximum civil penalty (Rule                                                                     the penalty was established or last
                                           1504).                                                     AGENCY:  National Indian Gaming                       adjusted by statute or regulation. The
                                             (a) Except as provided in paragraph                      Commission.                                           multiplier for 1988 (when the Indian
                                           (b) of this section, the Commission may                    ACTION: Interim final rule.                           Gaming Regulatory Act was enacted) is
                                           assess a civil penalty of up to $21,563                                                                          1.97869 ($25,000 × 1.97869 = $49,467).
                                                                                                      SUMMARY:   In compliance with the
                                           for each day that the violation                                                                                  III. Regulatory Matters
                                                                                                      Federal Civil Penalties Inflation
                                           continues.
                                                                                                      Adjustment Act Improvements Act of                    Regulatory Planning and Review
                                           *      *     *    *      *                                 2015 and Office of Management and
                                           ■ 5. Revise § 385.1601 to read as                          Budget (OMB) guidance, this rule                         This interim final rule is not a
                                           follows:                                                   adjusts the level of the civil monetary               significant rule and OMB has reviewed
                                                                                                      penalty, contained in the National                    this rule under Executive Order 12866.
                                           § 385.1601       Scope and purpose (Rule
                                           1601).                                                     Indian Gaming Commission’s (NIGC or                   This rule provides an initial catch-up
                                                                                                      Commission) regulation, with an initial               adjustment of penalties to account for
                                             The purpose of this subpart is to make
                                                                                                      ‘‘catch-up’’ adjustment.                              inflation.
                                           inflation adjustments to the civil
                                                                                                      DATES: This interim final rule will have
                                           monetary penalties provided by law                                                                                  (1) This rule will not have an effect of
                                           within the jurisdiction of the                             an effective date of August 1, 2016.
                                                                                                                                                            $100 million or more on the economy or
                                           Commission. These penalties shall be                       FOR FURTHER INFORMATION CONTACT:                      will not adversely affect, in a material
                                           subject to review and adjustment as                        Contact Armando J. Acosta, Senior                     way, the economy, productivity,
                                           necessary at least every year in                           Attorney, Office of General Counsel,                  competition, jobs, the environment,
                                           accordance with the Federal Civil                          National Indian Gaming Commission, at                 public health or safety, or state, local, or
                                           Penalties Inflation Act of 1990, as                        (202) 632–7003; fax (202) 632–7066 (not               tribal governments or communities.
                                           amended by the Federal Civil Penalties                     toll-free numbers).
                                                                                                      SUPPLEMENTARY INFORMATION:
                                                                                                                                                               (2) This rule will not create a serious
                                           Inflation Adjustment Act Improvements
                                                                                                                                                            inconsistency or otherwise interfere
                                           Act of 2015.                                               I. Background                                         with an action taken or planned by
                                           ■ 6. Revise § 385.1602 to read as
                                                                                                         On November 2, 2015, the President                 another agency.
                                           follows:
                                                                                                      signed into law the Federal Civil                        (3) This rule does not involve
                                           § 385.1602 Civil penalties, as adjusted                    Penalties Inflation Adjustment Act                    entitlements, grants, user fees, or loan
                                           (Rule 1602).                                               Improvements Act of 2015 (Sec. 701 of                 programs or the rights or obligations of
                                             The current inflation-adjusted civil                     Pub. L. 114–74) (the Act). The Act                    recipients.
                                           monetary penalties provided by law                         requires federal agencies to adjust the
                                                                                                                                                               (4) This regulatory change does not
                                           within the jurisdiction of the                             level of civil monetary penalties with an
                                                                                                      initial ‘‘catch-up’’ adjustment through               raise novel legal or policy issues.
                                           Commission are:
                                             (a) 15 U.S.C. 3414(b)(6)(A)(i), Natural                  an interim final rulemaking and then                  Regulatory Flexibility Act
                                           Gas Policy Act of 1978: $1,193,970 per                     make subsequent annual adjustments
                                           day.                                                       for inflation. A civil monetary penalty is              The Commission certifies that this
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                                             (b) 16 U.S.C. 823b(c), Federal Power                     any assessment with a dollar amount                   document will not have a significant
                                           Act: $21,563 per day.                                      that is levied for a violation of a federal           economic effect on a substantial number
                                             (c) 16 U.S.C. 825n(a), Federal Power                     civil statute or regulation, and is                   of small entities under the Regulatory
                                           Act: $2,750.                                               assessed or enforceable through a civil               Flexibility Act (5 U.S.C. 601 et seq.)
                                             (d) 16 U.S.C. 825o–1(b), Federal                         action in federal court or an                         because the rule makes adjustments for
                                           Power Act: $1,193,970 per day.                             administrative proceeding.                            inflation.


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Document Created: 2016-07-06 07:56:15
Document Modified: 2016-07-06 07:56:15
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.
ContactTodd Hettenbach, Attorney, Office of Enforcement, Federal Energy Regulatory Commission, 888 First Street NE., Washington, DC 20426, (202) 502-8794, [email protected]
FR Citation81 FR 43937 
CFR Citation18 CFR 250
18 CFR 385
CFR AssociatedNatural Gas; Reporting and Recordkeeping Requirements; Administrative Practice and Procedure; Electric Power; Penalties and Pipelines

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