81 FR 96349 - Inflation Adjustment of Civil Monetary Penalties
DEPARTMENT OF ENERGY Federal Register Volume 81, Issue 251 (December 30, 2016)
Federal Register Volume 81, Issue 251 (December 30, 2016)
| Page Range | 96349-96353 | |
| FR Document | 2016-31035 |
[Federal Register Volume 81, Number 251 (Friday, December 30, 2016)] [Rules and Regulations] [Pages 96349-96353] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31035] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF ENERGY 10 CFR Parts 207, 218, 429, 431, 490, 501, 601, 820, 824, 851, 1013, 1017, and 1050 RIN 1990-AA46 Inflation Adjustment of Civil Monetary Penalties AGENCY: Office of the General Counsel, U.S. Department of Energy. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of Energy (``DOE'') publishes this final rule to adjust DOE's civil monetary penalties (``CMPs'') for inflation as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (collectively referred to herein as ``the Act''). This rule adjusts CMPs within the jurisdiction of DOE to the maximum amount required by the Act. DATES: This rule is effective December 30, 2016. FOR FURTHER INFORMATION CONTACT: Preeti Chaudhari, U.S. Department of Energy, Office of the General Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585, (202) 586-8078. SUPPLEMENTARY INFORMATION: I. Background II. Method of Calculation III. Summary of Final Rule IV. Final Rulemaking V. Regulatory Review I. Background In order to improve the effectiveness of CMPs and to maintain their deterrent effect, the Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. 2461 note (``the Inflation Adjustment Act''), as further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74) (``the 2015 Act''), requires Federal agencies to adjust each CMP provided by law within the jurisdiction of the agency. The 2015 Act requires agencies to adjust the level of CMPs with an initial ``catch-up'' adjustment through an interim final rulemaking and to make subsequent annual adjustments for inflation, notwithstanding 5 U.S.C. 553. DOE's initial catch-up adjustment interim final rule was published June 28, 2016 (81 FR 41790). DOE received no public comments in response to the interim final rule. The interim final rule is today adopted as final without amendment. The 2015 Act also provides that any increase in a CMP shall apply only to CMPs, including those whose associated violation predated such increase, which are assessed after the date the increase takes effect. In accordance with the 2015 Act, OMB issued a guidance memorandum on the implementation of the 2017 annual adjustment pursuant to the 2015 Act.\1\ This final rule is issued in accordance with applicable law and the OMB guidance memorandum. --------------------------------------------------------------------------- \1\ The guidance memorandum was issued on December 16, 2016, provides the 2017 adjustment multiplier, and addresses how to apply it. --------------------------------------------------------------------------- II. Method of Calculation The method of calculating CMP adjustments applied in this final rule is required by the 2015 Act. Under the 2015 Act, annual inflation adjustments subsequent to the initial catch-up adjustment are to be based on the percent change between the October Consumer Price Index for all Urban Consumers (CPI-U) preceding the date of the adjustment, and the prior year's October CPI-U. Pursuant to the aforementioned OMB guidance memorandum, the adjustment multiplier for 2017 is 1.01636. In order to complete the 2017 annual adjustment, each CMP is multiplied by the 2017 adjustment multiplier. Under the 2015 Act, any increase in CMP must be rounded to the nearest multiple of $1. III. Summary of the Final Rule The following list summarizes DOE authorities containing CMPs, and the penalties before and after adjustment. --------------------------------------------------------------------------- \2\ Implemented by 10 CFR 820.81, 10 CFR 851.5, and appendix B to 10 CFR part 851. ------------------------------------------------------------------------ DOE Authority containing civil monetary penalty Before adjustment After adjustment ------------------------------------------------------------------------ 10 CFR 207.7.................... $10,000........... $10,164. 10 CFR 218.42................... 21,661............ 22,015. 10 CFR 429.120.................. 433............... 440. 10 CFR 431.382.................. 433............... 440. 10 CFR 490.604.................. 8,386............. 8,523. 10 CFR 501.181.................. --88,613.......... --90,063. --8/mcf........... --8/mcf. --35/bbl.......... --36/bbl. 10 CFR 601.400 and App A........ --minimum 18,936.. --minimum 19,246 --maximum 189,361. --maximum 192,459. 10 CFR 820.81................... 197,869........... 201,106. 10 CFR 824.1 and App A.......... 141,402........... 143,715. 10 CFR 824.4 and App A.......... 141,402........... 143,715. 10 CFR 851.5 and App B.......... 91,830............ 93,332. 10 CFR 1013.3................... 10,781............ 10,957. 10 CFR 1017.29.................. 254,645........... 258,811. 10 CFR 1050.303................. 19,305............ 19,621. 50 U.S.C. 2731 \2\.............. 8,655............. 8,797. ------------------------------------------------------------------------ [[Page 96350]] IV. Final Rulemaking The 2015 Act requires that annual adjustments for inflation subsequent to the initial ``catch-up'' adjustment be made notwithstanding 5 U.S.C. 553. V. Regulatory Review A. Executive Order 12866 This rule has been determined not to be a significant regulatory action under Executive Order 12866, ``Regulatory Planning and Review,'' 58 FR 51735 (October 4, 1993). Accordingly, this action was not subject to review under that Executive Order by the Office of Information and Regulatory Affairs of the Office of Management and Budget. B. National Environmental Policy Act DOE has determined that this final rule is covered under the Categorical Exclusion found in DOE's National Environmental Policy Act regulations at paragraph A5 of Appendix A to Subpart D, 10 CFR part 1021, which applies to a rulemaking that amends an existing rule or regulation and that does not change the environmental effect of the rule or regulation being amended. Accordingly, neither an environmental assessment nor an environmental impact statement is required. C. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires preparation of an initial regulatory flexibility analysis for any rule that by law must be proposed for public comment. As discussed above, the 2015 Act requires that annual inflation adjustments subsequent to the initial catch-up adjustment be made notwithstanding 5 U.S.C. 553. Because a notice of proposed rulemaking is not required for this action pursuant to 5 U.S.C. 553, or any other law, no regulatory flexibility analysis has been prepared for this final rule. D. Paperwork Reduction Act This final rule imposes no new information collection requirements subject to the Paperwork Reduction Act. E. Unfunded Mandates Reform Act of 1995 The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally requires Federal agencies to examine closely the impacts of regulatory actions on State, local, and tribal governments. Section 201 excepts agencies from assessing effects on State, local or tribal governments or the private sector of rules that incorporate requirements specifically set forth in law. Because this rule incorporates requirements specifically set forth in 28 U.S.C. 2461 note, DOE is not required to assess its regulatory effects under Section 201. Unfunded Mandates Reform Act sections 202 and 205 do not apply to today's action because they apply only to rules for which a general notice of proposed rulemaking is published. Nevertheless, DOE has determined that this regulatory action does not impose a Federal mandate on State, local, or tribal governments or on the public sector. F. Treasury and General Government Appropriations Act, 1999 Section 654 of the Treasury and General Government Appropriations Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family Policymaking Assessment for any proposed rule that may affect family well being. This rule would not have any impact on the autonomy or integrity of the family as an institution. Accordingly, DOE has concluded that it is not necessary to prepare a Family Policymaking Assessment. G. Executive Order 13132 Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 4, 1999) imposes certain requirements on agencies formulating and implementing policies or regulations that preempt State law or that have federalism implications. Agencies are required to examine the constitutional and statutory authority supporting any action that would limit the policymaking discretion of the States and carefully assess the necessity for such actions. DOE has examined this rule and has determined that it would not preempt State law and would not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. No further action is required by Executive Order 13132. H. Executive Order 12988 With respect to the review of existing regulations and the promulgation of new regulations, section 3(a) of Executive Order 12988, ``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on Executive agencies the general duty to adhere to the following requirements: (1) Eliminate drafting errors and ambiguity; (2) write regulations to minimize litigation; and (3) provide a clear legal standard for affected conduct rather than a general standard and promote simplification and burden reduction. With regard to the review required by section 3(a), section 3(b) of Executive Order 12988 specifically requires that Executive agencies make every reasonable effort to ensure that the regulation: (1) Clearly specifies the preemptive effect, if any; (2) clearly specifies any effect on existing Federal law or regulation; (3) provides a clear legal standard for affected conduct while promoting simplification and burden reduction; (4) specifies the retroactive effect, if any; (5) adequately defines key terms; and (6) addresses other important issues affecting clarity and general draftsmanship under any guidelines issued by the Attorney General. Section 3(c) of Executive Order 12988 requires Executive agencies to review regulations in light of applicable standards in section 3(a) and section 3(b) to determine whether they are met or it is unreasonable to meet one or more of them. DOE has completed the required review and determined that, to the extent permitted by law, this rule meets the relevant standards of Executive Order 12988. I. Treasury and General Government Appropriations Act, 2001 The Treasury and General Government Appropriations Act, 2001 (44 U.S.C. 3516 note) provides for agencies to review most disseminations of information to the public under guidelines established by each agency pursuant to general guidelines issued by OMB. OMB's guidelines were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines were published at 67 FR 62446 (October 7, 2002). DOE has reviewed this rule under the OMB and DOE guidelines and has concluded that it is consistent with applicable policies in those guidelines. J. Executive Order 13211 Executive Order 13211, ``Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 (May 22, 2001) requires Federal agencies to prepare and submit to OMB, a Statement of Energy Effects for any proposed significant energy action. A ``significant energy action'' is defined as any action by an agency that promulgated or is expected to lead to promulgation of a final rule, and that: (1) Is a significant regulatory action under Executive Order 12866, or any successor order; and (2) is likely to have a significant adverse effect on the supply, distribution, or use of energy, or (3) is designated by the Administrator of OIRA as a significant energy action. For any proposed significant energy action, [[Page 96351]] the agency must give a detailed statement of any adverse effects on energy supply, distribution, or use should the proposal be implemented, and of reasonable alternatives to the action and their expected benefits on energy supply, distribution, and use. This regulatory action would not have a significant adverse effect on the supply, distribution, or use of energy and is therefore not a significant energy action. Accordingly, DOE has not prepared a Statement of Energy Effects. K. Congressional Notification As required by 5 U.S.C. 801, DOE will submit to Congress a report regarding the issuance of this final rule prior to the effective date set forth at the outset of this rulemaking. The report will state that it has been determined that the rule is not a ``major rule'' as defined by 5 U.S.C. 801(2). L. Approval of the Office of the Secretary The Secretary of Energy has approved publication of this final rule. List of Subjects 10 CFR Part 207 Administrative practice and procedure, Energy, Penalties. 10 CFR Part 218 Administrative practice and procedure, Penalties, Petroleum allocation. 10 CFR Part 429 Confidential business information, Energy conservation, Household appliances, Imports, Incorporation by reference, Reporting and recordkeeping requirements. 10 CFR Part 431 Administrative practices and procedure, Confidential business information, Energy conservation, Incorporation by reference, Reporting and recordkeeping requirements. 10 CFR Part 490 Administrative practice and procedure, Energy conservation, Penalties. 10 CFR Part 501 Administrative practice and procedure, Electric power plants, Energy conservation, Natural gas, Petroleum. 10 CFR Part 601 Government contracts, Grant programs, Loan programs, Penalties. 10 CFR Part 820 Administrative practice and procedure, Government contracts, Penalties, Radiation protection. 10 CFR Part 824 Government contracts, Nuclear materials, Penalties, Security measures. 10 CFR Part 851 Civil penalty, Hazardous substances, Occupational safety and health, Safety, Reporting and recordkeeping requirements. 10 CFR Part 1013 Administrative practice and procedure, Claims, Fraud, Penalties. 10 CFR Part 1017 Administrative practice and procedure, Government contracts, National Defense, Nuclear Energy, Penalties, Security measures. 10 CFR Part 1050 Decorations, medals, awards, Foreign relations, Government employees, Government property, Reporting and recordkeeping requirements. Issued in Washington, DC, on December 20, 2016. Steven Croley, General Counsel. For the reasons set forth in the preamble, DOE amends chapters II, III, and X of title 10 of the Code of Federal Regulations as set forth below. PART 207--COLLECTION OF INFORMATION 0 1. The authority citation for part 207 continues to read as follows: Authority: 15 U.S.C. 787 et seq.; 15 U.S.C. 791 et seq.; E.O. 11790, 39 FR 23185; 28 U.S.C. 2461 note. 0 2. Section 207.7 is amended by revising the first sentence of paragraph (c)(1) to read as follows: Sec. 207.7 Sanctions. * * * * * (c) * * * (1) Any person who violates any provision of this subpart or any order issued pursuant thereto shall be subject to a civil penalty of not more than $10,164 for each violation. * * * * * * * * PART 218--STANDBY MANDATORY INTERNATIONAL OIL ALLOCATION 0 3. The authority citation for part 218 continues to read as follows: Authority: 15 U.S.C. 751 et seq.; 15 U.S.C. 787 et seq.; 42 U.S.C. 6201 et seq.; 42 U.S.C. 7101 et seq.; E.O. 11790, 39 FR 23185; E.O. 12009, 42 FR 46267; 28 U.S.C. 2461 note. 0 4. Section 218.42 is amended by revising paragraph (b)(1) to read as follows: Sec. 218.42 Sanctions. * * * * * (b) * * * (1) Any person who violates any provision of this part 218 or any order issued pursuant thereto shall be subject to a civil penalty of not more than $22,015 for each violation. * * * * * PART 429--CERTIFICATION, COMPLIANCE, AND ENFORCEMENT FOR CONSUMER PRODUCTS AND COMMERCIAL AND INDUSTRIAL EQUIPMENT 0 5. The authority citation for part 429 continues to read as follows: Authority: 42 U.S.C. 6291-6317; 28 U.S.C. 2461 note. 0 6. Section 429.120 is amended by revising the first sentence to read as follows: Sec. 429.120 Maximum civil penalty. Any person who knowingly violates any provision of Sec. 429.102(a) may be subject to assessment of a civil penalty of no more than $440 for each violation. * * * PART 431--ENERGY EFFICIENCY PROGRAM FOR CERTAIN COMMERCIAL AND INDUSTRIAL EQUIPMENT 0 7. The authority citation for part 431 continues to read as follows: Authority: 42 U.S.C. 6291-6317; 28 U.S.C. 2461 note. 0 8. Section 431.382 is amended by revising paragraph (b) to read as follows: Sec. 431.382 Prohibited acts. * * * * * (b) In accordance with sections 333 and 345 of the Act, any person who knowingly violates any provision of paragraph (a) of this section may be subject to assessment of a civil penalty of no more than $440 for each violation. * * * * * PART 490--ALTERNATIVE FUEL TRANSPORTATION PROGRAM 0 9. The authority citation for part 490 continues to read as follows: Authority: 42 U.S.C. 7191 et seq.; 42 U.S.C. 13201, 13211, 13220, 13251 et seq; 28 U.S.C. 2461 note. 0 10. Section 490.604 is amended by revising paragraph (a) to read as follows: Sec. 490.604 Penalties and Fines. (a) Civil Penalties. Whoever violates Sec. 490.603 of this part shall be subject to [[Page 96352]] a civil penalty of not more than $8,523 for each violation. * * * * * PART 501--ADMINISTRATIVE PROCEDURES AND SANCTIONS 0 11. The authority citation for part 501 continues to read as follows: Authority: 42 U.S.C. 7101 et seq.; 42 U.S.C. 8301 et seq.; 42 U.S.C. 8701 et seq.; E.O. 12009, 42 FR 46267; 28 U.S.C. 2461 note. 0 12. Section 501.181 is amended by revising paragraph (c)(1) to read as follows: Sec. 501.181 Sanctions. * * * * * (c) * * * (1) Any person who violates any provisions of the Act (other than section 402) or any rule or order thereunder will be subject to the following civil penalty, which may not exceed $90,063 for each violation: Any person who operates a powerplant or major fuel burning installation under an exemption, during any 12-calendar-month period, in excess of that authorized in such exemption will be assessed a civil penalty of up to $8 for each MCF of natural gas or up to $36 for each barrel of oil used in excess of that authorized in the exemption. * * * * * PART 601--NEW RESTRICTIONS ON LOBBYING 0 13. The authority citation for part 601 continues to read as follows: Authority: 31 U.S.C. 1352; 42 U.S.C. 7254 and 7256; 31 U.S.C. 6301-6308; 28 U.S.C. 2461 note. 0 14. Section 601.400 is amended by revising paragraphs (a), (b) and (e) to read as follows: Sec. 601.400 Penalties. (a) Any person who makes an expenditure prohibited herein shall be subject to a civil penalty of not less than $19,246 and not more than $192,459 for each such expenditure. (b) Any person who fails to file or amend the disclosure form (see appendix B to this part) to be filed or amended if required herein, shall be subject to a civil penalty of not less than $19,246 and not more than $192,459 for each such failure. * * * * * (e) First offenders under paragraphs (a) or (b) of this section shall be subject to a civil penalty of $19,246, absent aggravating circumstances. Second and subsequent offenses by persons shall be subject to an appropriate civil penalty between $19,246 and $192,459, as determined by the agency head or his or her designee. * * * * * 0 15. Appendix A to part 601 is amended by: 0 a. Revising the last sentence of the second undesignated paragraph, in paragraph (3) of the section entitled, ``Certification for Contracts, Grants, Loans, and Cooperative Agreements''; and 0 b. Revising the last sentence of the third undesignated paragraph, in the section entitled, ``Statement for Loan Guarantees and Loan Insurance''. The revisions read as follows: Appendix A to Part 601--Certification Regarding Lobbying Certification for Contracts, Grants, Loans, and Cooperative Agreements * * * * * (3) * * * * * * Any person who fails to file the required certification shall be subject to a civil penalty of not less than $19,246 and not more than $192,459 for each such failure. Statement for Loan Guarantees and Loan Insurance * * * * * * * * Any person who fails to file the required statement shall be subject to a civil penalty of not less than $19,246 and not more than $192,459 for each such failure. PART 820--PROCEDURAL RULES FOR DOE NUCLEAR ACTIVITIES 0 16. The authority citation for part 820 continues to read as follows: Authority: 42 U.S.C. 2201; 2282(a); 7191; 28 U.S.C. 2461 note; 50 U.S.C. 2410. 0 17. Section 820.81 is amended by revising the first sentence to read as follows: Sec. 820.81 Amount of penalty. Any person subject to a penalty under 42 U.S.C. 2282a shall be subject to a civil penalty in an amount not to exceed $201,106 for each such violation. * * * PART 824--PROCEDURAL RULES FOR THE ASSESSMENT OF CIVIL PENALTIES FOR CLASSIFIED INFORMATION SECURITY VIOLATIONS 0 18. The authority citation for part 824 continues to read as follows: Authority: 42 U.S.C. 2201, 2282b, 7101 et seq., 50 U.S.C. 2401 et seq.; 28 U.S.C. 2461 note. 0 19. Section 824.1 is amended by revising the second sentence to read as follows: Sec. 824.1 Purpose and scope. * * * Subsection a. provides that any person who has entered into a contract or agreement with the Department of Energy, or a subcontract or subagreement thereto, and who violates (or whose employee violates) any applicable rule, regulation or order under the Act relating to the security or safeguarding of Restricted Data or other classified information, shall be subject to a civil penalty not to exceed $143,715 for each violation. * * * 0 20. Section 824.4 is amended by revising paragraph (c) to read as follows: Sec. 824.4 Civil penalties. * * * * * (c) The Director may propose imposition of a civil penalty for violation of a requirement of a regulation or rule under paragraph (a) of this section or a compliance order issued under paragraph (b) of this section, not to exceed $143,715 for each violation. * * * * * PART 851--WORKER SAFETY AND HEALTH PROGRAM 0 21. The authority citation for part 851 continues to read as follows: Authority: 42 U.S.C. 2201(i)(3), (p); 42 U.S.C. 2282c; 42 U.S.C. 5801 et seq.; 42 U.S.C. 7101 et seq.; 50 U.S.C. 2401 et seq.; 28 U.S.C. 2461 note. 0 22. Section 851.5 is amended by revising the first sentence of paragraph (a) to read as follows: Sec. 851.5 Enforcement. (a) A contractor that is indemnified under section 170d. of the AEA (or any subcontractor or supplier thereto) and that violates (or whose employee violates) any requirement of this part shall be subject to a civil penalty of up to $93,332 for each such violation. * * * * * * * * 0 23. Appendix B to part 851 is amended by: 0 a. Revising the last sentences of paragraphs (b)(1) and (2) in section VI; and 0 b. Revising paragraph 1.(e)(1) in section IX. The revisions read as follows: Appendix B to Part 851--General Statement of Enforcement Policy * * * * * VI. Severity of Violations * * * * * (b) * * * (1) * * * A Severity Level I violation would be subject to a base civil penalty of up to 100% of the maximum base civil penalty of $93,332. (2) * * * A Severity Level II violation would be subject to a base civil penalty up [[Page 96353]] to 50% of the maximum base civil penalty ($46,666). * * * * * IX. Enforcement Actions * * * * * 1. Notice of Violation * * * * * (e) * * * (1) DOE may assess civil penalties of up to $93,332 per violation per day on contractors (and their subcontractors and suppliers) that are indemnified by the Price-Anderson Act, 42 U.S.C. 2210(d). See 10 CFR 851.5(a). * * * * * PART 1013--PROGRAM FRAUD CIVIL REMEDIES AND PROCEDURES 0 24. The authority citation for part 1013 continues to reads as follows: Authority: 31 U.S.C. 3801-3812; 28 U.S.C. 2461 note. 0 25. Section 1013.3 is amended by revising paragraphs (a)(1)(iv) and (b)(1)(ii) to read as follows: Sec. 1013.3 Basis for civil penalties and assessments. (a) * * * (1) * * * (iv) Is for payment for the provision of property or services which the person has not provided as claimed, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $10,957 for each such claim. * * * * * (b) * * * (1) * * * (ii) Contains or is accompanied by an express certification or affirmation of the truthfulness and accuracy of the contents of the statement, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $10,957 for each such statement. * * * * * PART 1017--IDENTIFICATION AND PROTECTION OF UNCLASSIFIED CONTROLLED NUCLEAR INFORMATION 0 26. The authority citation for part 1017 continues to read as follows: Authority: 42 U.S.C. 7101 et seq.; 50 U.S.C. 2401 et seq.; 42 U.S.C. 2168; 28 U.S.C. 2461 note. 0 27. Section 1017.29 is amended by revising paragraph (c) to read as follows: Sec. 1017.29 Civil penalty. * * * * * (c) Amount of penalty. The Director may propose imposition of a civil penalty for violation of a requirement of a regulation under paragraph (a) of this section or a compliance order issued under paragraph (b) of this section, not to exceed $258,811 for each violation. * * * * * PART 1050--FOREIGN GIFTS AND DECORATIONS 0 28. The authority citation for part 1050 continues to read as follows: Authority: The Constitution of the United States, Article I, Section 9; 5 U.S.C. 7342; 22 U.S.C. 2694; 42 U.S.C. 7254 and 7262; 28 U.S.C. 2461 note. 0 29. Section 1050.303 is amended by revising the last sentence in paragraph (d) to read as follows: Sec. 1050.303 Enforcement. * * * * * (d) * * * The court in which such action is brought may assess a civil penalty against such employee in any amount not to exceed the retail value of the gift improperly solicited or received plus $19,621. [FR Doc. 2016-31035 Filed 12-29-16; 8:45 am] BILLING CODE 6450-01-P
![Federal Register / Vol. 81, No. 251 / Friday, December 30, 2016 / Rules and Regulations 96349
capacity of not more than 1,300,000 CMPs within the jurisdiction of DOE to adopted as final without amendment.
electrical kilowatts, each such the maximum amount required by the The 2015 Act also provides that any
combination of reactors shall be Act. increase in a CMP shall apply only to
considered to be a single nuclear reactor DATES: This rule is effective December CMPs, including those whose associated
for the sole purpose of assessing the 30, 2016. violation predated such increase, which
applicable financial protection required FOR FURTHER INFORMATION CONTACT:
are assessed after the date the increase
under this section. Preeti Chaudhari, U.S. Department of takes effect.
* * * * * Energy, Office of the General Counsel, In accordance with the 2015 Act,
Dated at Rockville, Maryland, this 15th day GC–33, 1000 Independence Avenue OMB issued a guidance memorandum
of December 2016. SW., Washington, DC 20585, (202) 586– on the implementation of the 2017
For the Nuclear Regulatory Commission. 8078. annual adjustment pursuant to the 2015
Michael R. Johnson, SUPPLEMENTARY INFORMATION: Act.1 This final rule is issued in
Acting Executive Director for Operations. I. Background accordance with applicable law and the
II. Method of Calculation OMB guidance memorandum.
[FR Doc. 2016–31368 Filed 12–29–16; 8:45 am] III. Summary of Final Rule
BILLING CODE 7590–01–P IV. Final Rulemaking II. Method of Calculation
V. Regulatory Review
The method of calculating CMP
I. Background adjustments applied in this final rule is
DEPARTMENT OF ENERGY required by the 2015 Act. Under the
In order to improve the effectiveness
10 CFR Parts 207, 218, 429, 431, 490, of CMPs and to maintain their deterrent 2015 Act, annual inflation adjustments
501, 601, 820, 824, 851, 1013, 1017, and effect, the Federal Civil Penalties subsequent to the initial catch-up
1050 Inflation Adjustment Act of 1990, 28 adjustment are to be based on the
U.S.C. 2461 note (‘‘the Inflation percent change between the October
RIN 1990–AA46 Adjustment Act’’), as further amended Consumer Price Index for all Urban
by the Federal Civil Penalties Inflation Consumers (CPI–U) preceding the date
Inflation Adjustment of Civil Monetary of the adjustment, and the prior year’s
Adjustment Act Improvements Act of
Penalties October CPI–U. Pursuant to the
2015 (Pub. L. 114–74) (‘‘the 2015 Act’’),
AGENCY: Office of the General Counsel, requires Federal agencies to adjust each aforementioned OMB guidance
U.S. Department of Energy. CMP provided by law within the memorandum, the adjustment
jurisdiction of the agency. The 2015 Act multiplier for 2017 is 1.01636. In order
ACTION: Final rule.
requires agencies to adjust the level of to complete the 2017 annual
SUMMARY: The Department of Energy CMPs with an initial ‘‘catch-up’’ adjustment, each CMP is multiplied by
(‘‘DOE’’) publishes this final rule to adjustment through an interim final the 2017 adjustment multiplier. Under
adjust DOE’s civil monetary penalties rulemaking and to make subsequent the 2015 Act, any increase in CMP must
(‘‘CMPs’’) for inflation as mandated by annual adjustments for inflation, be rounded to the nearest multiple of
the Federal Civil Penalties Inflation notwithstanding 5 U.S.C. 553. DOE’s $1.
Adjustment Act of 1990, as further initial catch-up adjustment interim final III. Summary of the Final Rule
amended by the Federal Civil Penalties rule was published June 28, 2016 (81 FR
Inflation Adjustment Act Improvements 41790). DOE received no public The following list summarizes DOE
Act of 2015 (collectively referred to comments in response to the interim authorities containing CMPs, and the
herein as ‘‘the Act’’). This rule adjusts final rule. The interim final rule is today penalties before and after adjustment.
DOE Authority containing civil monetary penalty Before adjustment After adjustment
10 CFR 207.7 .......................................................................................... $10,000 .......................................... $10,164.
10 CFR 218.42 ........................................................................................ 21,661 ............................................ 22,015.
10 CFR 429.120 ...................................................................................... 433 ................................................. 440.
10 CFR 431.382 ...................................................................................... 433 ................................................. 440.
10 CFR 490.604 ...................................................................................... 8,386 .............................................. 8,523.
10 CFR 501.181 ...................................................................................... —88,613 ........................................ —90,063.
—8/mcf .......................................... —8/mcf.
—35/bbl ......................................... —36/bbl.
10 CFR 601.400 and App A ................................................................... —minimum 18,936 ........................ —minimum 19,246
—maximum 189,361 ..................... —maximum 192,459.
10 CFR 820.81 ........................................................................................ 197,869 .......................................... 201,106.
10 CFR 824.1 and App A ....................................................................... 141,402 .......................................... 143,715.
10 CFR 824.4 and App A ....................................................................... 141,402 .......................................... 143,715.
10 CFR 851.5 and App B ....................................................................... 91,830 ............................................ 93,332.
10 CFR 1013.3 ........................................................................................ 10,781 ............................................ 10,957.
10 CFR 1017.29 ...................................................................................... 254,645 .......................................... 258,811.
10 CFR 1050.303 .................................................................................... 19,305 ............................................ 19,621.
srobinson on DSK5SPTVN1PROD with RULES
50 U.S.C. 2731 2 ..................................................................................... 8,655 .............................................. 8,797.
1 The guidance memorandum was issued on 2 Implemented by 10 CFR 820.81, 10 CFR 851.5,
December 16, 2016, provides the 2017 adjustment and appendix B to 10 CFR part 851.
multiplier, and addresses how to apply it.
VerDate Sep<11>2014 18:39 Dec 29, 2016 Jkt 241001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\30DER1.SGM 30DER1](https://thefederalregister.org/doc/81_FR_96600/page/1.svg)
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to 50% of the maximum base civil penalty a regulation under paragraph (a) of this to prohibit national banks from dealing
($46,666). section or a compliance order issued or investing in industrial or commercial
* * * * * under paragraph (b) of this section, not metals.1 The OCC proposed to: (i)
IX. Enforcement Actions
to exceed $258,811 for each violation. Exclude industrial and commercial
* * * * * metals from the terms ‘‘exchange,’’
* * * * * ‘‘coin,’’ and ‘‘bullion’’ in the ‘‘powers
1. Notice of Violation PART 1050—FOREIGN GIFTS AND clause’’ of the National Bank Act at 12
* * * * * DECORATIONS U.S.C. 24(Seventh); and (ii) provide that
(e) * * * dealing or investing in industrial or
(1) DOE may assess civil penalties of up to ■ 28. The authority citation for part commercial metal is not part of, or
$93,332 per violation per day on contractors 1050 continues to read as follows: incidental to, the business of banking.
(and their subcontractors and suppliers) that The proposed prohibitions were
Authority: The Constitution of the United
are indemnified by the Price-Anderson Act, generally consistent with
States, Article I, Section 9; 5 U.S.C. 7342; 22
42 U.S.C. 2210(d). See 10 CFR 851.5(a).
U.S.C. 2694; 42 U.S.C. 7254 and 7262; 28 recommendations made by the U.S.
* * * * * U.S.C. 2461 note. Senate Permanent Subcommittee on
■ 29. Section 1050.303 is amended by Investigations in 2014,2 as well as
PART 1013—PROGRAM FRAUD CIVIL recommendations described in a
revising the last sentence in paragraph
REMEDIES AND PROCEDURES September 2016 report to the U.S.
(d) to read as follows:
■ 24. The authority citation for part Congress and the Financial Stability
§ 1050.303 Enforcement. Oversight Council (FSOC) prepared by
1013 continues to reads as follows:
* * * * * the OCC, the Board of Governors of the
Authority: 31 U.S.C. 3801–3812; 28 U.S.C. (d) * * * The court in which such Federal Reserve System (‘‘Board’’), and
2461 note. action is brought may assess a civil the Federal Deposit Insurance
■ 25. Section 1013.3 is amended by penalty against such employee in any Corporation pursuant to section 620 of
revising paragraphs (a)(1)(iv) and amount not to exceed the retail value of the Dodd-Frank Wall Street Reform and
(b)(1)(ii) to read as follows: the gift improperly solicited or received Consumer Protection Act (‘‘Dodd-Frank
plus $19,621. Act’’).3
§ 1013.3 Basis for civil penalties and
assessments.
[FR Doc. 2016–31035 Filed 12–29–16; 8:45 am] A national bank may engage in
BILLING CODE 6450–01–P activities that are part of, or incidental
(a) * * * to, the business of banking under 12
(1) * * * U.S.C. 24(Seventh). Section 24(Seventh)
(iv) Is for payment for the provision lists several activities that are part of the
of property or services which the person DEPARTMENT OF THE TREASURY
business of banking; for example, it
has not provided as claimed, shall be Office of the Comptroller of the expressly provides that national banks
subject, in addition to any other remedy Currency may buy and sell exchange, coin, and
that may be prescribed by law, to a civil bullion. In addition to these enumerated
penalty of not more than $10,957 for 12 CFR Part 7 powers, section 24(Seventh) authorizes
each such claim. national banks to exercise all such
* * * * * [Docket ID OCC–2016–0022]
incidental powers as shall be necessary
(b) * * * RIN 1557–AD93 to carry on the business of banking.
(1) * * * National banks also are authorized to
(ii) Contains or is accompanied by an Industrial and Commercial Metals engage in any other activities not
express certification or affirmation of expressly enumerated in the statute that
AGENCY: Office of the Comptroller of the
the truthfulness and accuracy of the the Comptroller of the Currency
Currency (OCC), Treasury.
contents of the statement, shall be
subject, in addition to any other remedy ACTION: Final rule.
1 81 FR 63428 (Sept. 15, 2016).
that may be prescribed by law, to a civil SUMMARY: The OCC is finalizing a rule 2 ‘‘Wall Street Bank Involvement with Physical
penalty of not more than $10,957 for to prohibit national banks and federal Commodities,’’ U.S. Senate Permanent
each such statement. Subcommittee on Investigations, available at:
savings associations from dealing or http://www.hsgac.senate.gov/download/report-wall-
* * * * * investing in industrial or commercial street-involvement-with-physical-commodities
metals. (‘‘PSI Report’’).
PART 1017—IDENTIFICATION AND 3 ‘‘Report to Congress and the Financial Stability
PROTECTION OF UNCLASSIFIED DATES: This final rule is effective April Oversight Council Pursuant to Section 620 of the
CONTROLLED NUCLEAR 1, 2017. Dodd-Frank Act,’’ at 86–90 (September 2016),
available at: https://www.occ.gov/news-issuances/
INFORMATION FOR FURTHER INFORMATION CONTACT:
news-releases/2016/nr-ia-2016–107a.pdf (‘‘620
Casey Scott Laxton, Counsel, or Margo Study’’). Section 620 of the Dodd-Frank Act
■ 26. The authority citation for part Dey, Counsel, Securities and Corporate required the federal banking agencies to conduct a
1017 continues to read as follows: Practices Division, (202) 649–5510; Carl study and prepare a report, including
recommendations, on the types of activities and
Authority: 42 U.S.C. 7101 et seq.; 50 U.S.C. Kaminski, Special Counsel, Legislative investments permissible for banking entities, the
2401 et seq.; 42 U.S.C. 2168; 28 U.S.C. 2461 and Regulatory Activities Division, associated risks, and how banking entities mitigate
note. (202) 649–5490; or, for persons who are those risks. In a parallel action, the Board also
deaf or hard of hearing, TTY, (202) 649– issued a proposed rule in September 2016. The
■ 27. Section 1017.29 is amended by
srobinson on DSK5SPTVN1PROD with RULES
proposed Board rule addressed the physical
revising paragraph (c) to read as follows: 5597, 400 7th Street SW., Washington, commodities activities and investments of banking
DC 22019. holding companies and financial holding
§ 1017.29 Civil penalty. SUPPLEMENTARY INFORMATION: companies, including copper. Risk-Based Capital
* * * * * and Other Regulatory Requirements for Activities of
(c) Amount of penalty. The Director I. Background Financial Holding Companies Related to Physical
Commodities and Risk-Based Capital Requirements
may propose imposition of a civil In September 2016, the OCC issued a for Merchant Banking Investments, 81 FR 67220
penalty for violation of a requirement of Notice of Proposed Rulemaking (NPRM) (Sept. 30, 2016).
VerDate Sep<11>2014 18:11 Dec 29, 2016 Jkt 241001 PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 E:\FR\FM\30DER1.SGM 30DER1](https://thefederalregister.org/doc/81_FR_96600/page/5.svg)
Document Created: 2016-12-30 05:16:24
Document Modified: 2016-12-30 05:16:24
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective December 30, 2016. | |
| Contact | Preeti Chaudhari, U.S. Department of Energy, Office of the General Counsel, GC-33, 1000 Independence Avenue SW., Washington, DC 20585, (202) 586-8078. | |
| FR Citation | 81 FR 96349 | |
| RIN Number | 1990-AA46 | |
| CFR Citation | 10
CFR
1013 10 CFR 1017 10 CFR 1050 10 CFR 207 10 CFR 218 10 CFR 429 10 CFR 431 10 CFR 490 10 CFR 501 10 CFR 601 10 CFR 820 10 CFR 824 10 CFR 851 | |
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