82_FR_19405 82 FR 19325 - Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties

82 FR 19325 - Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties

DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration

Federal Register Volume 82, Issue 80 (April 27, 2017)

Page Range19325-19328
FR Document2017-08530

The Pipeline and Hazardous Materials Safety Administration (PHMSA) is revising references in its regulations to the maximum civil penalties for violations of Federal pipeline safety laws, or any PHMSA regulations or orders issued thereunder. Under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990, Federal agencies are required to adjust their civil monetary penalties effective January 15, 2017, and annually thereafter, to account for changes in inflation. PHMSA finds good cause to amend the regulations related to civil penalties without notice or opportunity for public comment. Advance public notice is unnecessary for the reasons described in the SUPPLEMENTARY INFORMATION section.

Federal Register, Volume 82 Issue 80 (Thursday, April 27, 2017)
[Federal Register Volume 82, Number 80 (Thursday, April 27, 2017)]
[Rules and Regulations]
[Pages 19325-19328]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08530]


=======================================================================
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DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

49 CFR Part 190

[Docket No. PHMSA-2016-0010; Amdt. No. 190-17]
RIN-2137-AF16


Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties

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

ACTION: Final rule.

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

SUMMARY: The Pipeline and Hazardous Materials Safety Administration 
(PHMSA) is revising references in its regulations to the maximum civil 
penalties for violations of Federal pipeline safety laws, or any PHMSA 
regulations or orders issued thereunder. Under the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, which 
further amended the Federal Civil Penalties Inflation Adjustment Act of 
1990, Federal agencies are required to adjust their civil monetary 
penalties effective January 15, 2017, and annually thereafter, to 
account for changes in inflation.
    PHMSA finds good cause to amend the regulations related to civil 
penalties without notice or opportunity for public comment. Advance 
public notice is

[[Page 19326]]

unnecessary for the reasons described in the SUPPLEMENTARY INFORMATION 
section.

DATES: The effective date of this final rule is April 27, 2017.

FOR FURTHER INFORMATION CONTACT: Ahuva Battams, Attorney-Advisor, 
Pipeline Safety Division, Office of Chief Counsel, the Pipeline and 
Hazardous Materials Safety Administration, by telephone at 202-366-4400 
or email at [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Civil Penalty Amendments
II. Justification for the Final Rule
III. Rulemaking Analyses and Notices
    A. Statutory/Legal Authority for This Rulemaking
    B. Executive Order 12866, Executive Order 13563, and Department 
of Transportation (DOT) Regulatory Policies and Procedures
    C. Executive Order 13132
    D. Executive Order 13175
    E. Executive Order 13211
    F. Regulatory Flexibility Act, Executive Order 13272, and DOT 
Procedures and Policies
    G. Paperwork Reduction Act
    H. Unfunded Mandates Reform Act of 1995
    I. Environmental Assessment
    J. Executive Order 13609 and International Trade Analysis
    K. Privacy Act
    L. Regulation Identifier Number (RIN)
    M. Executive Order 13609 and International Trade Analysis

I. Civil Penalty Amendments

    On June 30, 2016, PHMSA published an interim final rule, (81 FR 
42564) in the Federal Register. Under the Pipeline Safety, Regulatory 
Certainty, and Job Creation Act of 2015 (the 2015 Act), Public Law 114-
74, and consistent with the process outlined in the Office of 
Management and Budget's (OMB) Memorandum for the Heads of Executive 
Departments and Agencies: ``Implementation of the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015,'' M-16-06 
(OMB Memorandum M-16-06), the interim final rule stated that PHMSA is 
revising references in its regulations to the maximum civil penalties 
for violations of Federal pipeline safety laws, or any PHMSA 
regulations or orders issued thereunder.
    Pursuant to the 2015 Act, and consistent with the process outlined 
in the OMB memorandum titled ``Memorandum for the Heads of Executive 
Departments and Agencies: Implementation of the 2017 annual adjustment 
pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015,'' M-17-11 (OMB Memorandum M-17-11), PHMSA is 
again revising references in these regulations to the maximum civil 
penalties for violations. Based on the cost-of-living adjustment 
multiplier for 2017, derived from the Consumer Price Index (CPI-U) for 
the month of October 2016 (not seasonally adjusted), a multiplier of 
1.01636 was used to calculate updated maximum civil penalty amounts.
    The revised penalties are as follows:

----------------------------------------------------------------------------------------------------------------
                                                                 Current maximum civil    Revised maximum civil
           Violated statute                  CFR citation               penalty                  penalty
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 60101 et seq., and any       49 CFR 190.223(a)......  $205,638 for each        $209,002 for each
 regulation or order issued                                      violation for each day   violation for each day
 thereunder.                                                     the violation            the violation
                                                                 continues, with a        continues, with a
                                                                 maximum penalty not to   maximum penalty not to
                                                                 exceed $2,056,380 for    exceed $2,090,022 for
                                                                 a related series of      a related series of
                                                                 violations.              violations.
49 U.S.C. 60103; 49 U.S.C. 60111.....  49 CFR 190.223(c)......  A penalty not to exceed  An administrative civil
                                                                 $75,123 which may be     penalty not to exceed
                                                                 in addition to other     $76,352, which may be
                                                                 penalties under 40       in addition to other
                                                                 U.S.C. 60101, et seq.    penalties assessed
                                                                                          under 49 U.S.C. 60101,
                                                                                          et seq.
49 U.S.C. 60129......................  49 CFR 190.223(d)......  A penalty not to exceed  A penalty not to exceed
                                                                 $1,194.                  $1,214.
----------------------------------------------------------------------------------------------------------------

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

II. Justification for Final Rule

    PHMSA is proceeding directly to a final rule without providing a 
notice of proposed rulemaking or an opportunity for public comment. 
This action is permitted, in part, because the 2015 Act directs PHMSA 
to adjust the civil monetary penalties in accordance with the schedule 
provided in the 2015 Act, notwithstanding the notice and public comment 
procedures in the Administrative Procedure Act (APA). However, PHMSA 
also notes that the APA authorizes agencies to forego providing the 
opportunity for prior public notice and comment if an agency finds good 
cause that notice and public procedure are ``impracticable, 
unnecessary, or contrary to the public interest'' (5 U.S.C. 
553(b)(3)(B)). In this instance, public comment is unnecessary because 
by making these technical amendments, PHMSA is not exercising 
discretion in a way that could be informed by public comment. PHMSA is 
required under the 2015 Act and directed by the OMB Guidance to publish 
this final rule by January 15, 2017, with the penalty levels stated 
herein slated to take effect on that date. Further, PHMSA is mandated 
by the 2015 Act and directed by the OMB Guidance to adjust the penalty 
levels pursuant to the specific procedures also stated herein. Any 
public comments received through notice and public procedure would 
therefore not affect PHMSA's obligation to comply with the 2015 Act, 
nor would they affect the methods used by PHMSA to adjust the penalty 
levels.

III. Rulemaking Analyses and Notices

A. Statutory/Legal Authority for This Rulemaking

    This final rule is published under the authority of the 2015 Act, 
as well 49 U.S.C. 60101, et seq. These statutes provide PHMSA with the 
authority to levy civil penalties for violations of Federal pipeline 
safety laws. The 2015 Act requires penalties levied by Federal agencies 
pursuant to these laws to be adjusted. Beginning in January 2017, the 
2015 Act requires such penalties to be adjusted on an annual basis no 
later than January 15 of each year.

[[Page 19327]]

B. Executive Orders 12866 and 13563, and Department of Transportation 
(DOT) Regulatory Policies and Procedures

    This final rule has been evaluated in accordance with existing DOT 
policies and procedures and determined to be non-significant under 
Executive Order 12866, Regulatory Planning and Review, 58 FR 51735 
(October 4, 1993), and Executive Order 13563, Improving Regulation and 
Regulatory Review, 76 FR 3821 (January 21, 2011). Consistent with 
guidance in OMB Memorandum M-17-11, this final rule is considered to be 
a non-significant regulatory action under Executive Order 12866. 
Further, this final rule is not significant under the regulatory 
policies and procedures of the DOT because it is limited to a 
ministerial act in which the agency has no discretion and where the 
economic impact of the final rule is minimal (44 FR 11034). 
Accordingly, preparation of a regulatory evaluation is not warranted.
    This final rule imposes no new costs upon persons conducting 
operations in compliance with Federal pipeline statutes and 
regulations. Those operators not in compliance with these statues and 
regulations may experience an increased cost based on the penalties 
levied against them for non-compliance; however, this is an avoidable, 
variable cost and thus is not considered in any evaluation of the 
significance of this regulatory action. The amendments in this final 
rule could provide a deterrent effect that could potentially lead to 
safety benefits; however, PHMSA does not expect such benefits to be 
significant. Overall, it is anticipated that costs and benefits from 
this final rule would be minimal in real dollars.

C. Executive Order 13132

    PHMSA has analyzed this final rule according to Executive Order 
13132 on Federalism, 64 FR 43255 (August 10, 1999). The final rule does 
not have a substantial direct effect on the States, the relationship 
between the national government and the States, or the distribution of 
power and responsibilities among the various levels of government. The 
final rule neither imposes substantial direct compliance costs on State 
and local governments nor preempts state law governing intrastate 
pipelines. Therefore, the consultation and funding requirements of 
Executive Order 13132 do not apply.

D. Executive Order 13175

    This final rule has been analyzed in accordance with the principles 
and criteria contained in Executive Order 13175 on consultation and 
coordination with Indian tribal governments, 65 FR 67249 (November 9, 
2000). Because the final rule does not have tribal implications, does 
not impose substantial direct compliance costs, and is required by 
statute, the funding and consultation requirements of Executive Order 
13175 do not apply.

E. Executive Order 13211

    This final rule is not a ``significant energy action'' under 
Executive Order 13211, Actions Concerning Regulations that 
Significantly Affect Energy Supply, Distribution, or Use, 66 FR 28355 
(May 22, 2001). It is not likely to have a significant adverse effect 
on supply, distribution, or energy use. Further, the Office of 
Information and Regulatory Affairs (OIRA) within OMB has not designated 
this final rule as a significant energy action.

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

    The Regulatory Flexibility Act, 5 U.S.C. 601-611, requires each 
agency to analyze proposed regulations and assess their impact on small 
businesses and other small entities to determine whether this final 
rule is expected to have a significant impact on a substantial number 
of small entities. The provisions of this final rule may apply 
specifically to all businesses using pipelines to transport hazardous 
liquids, gas, and liquefied natural gas (LNG) in interstate commerce. 
Therefore, PHMSA certifies this final rule would not have a significant 
economic impact on a substantial number of small entities.

G. Paperwork Reduction Act

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

H. Unfunded Mandates Reform Act of 1995

    This final rule does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995, Public Law 104-4. It does not 
result in costs of $100 million or more (adjusted for inflation) in any 
year for either State, local, or tribal governments, in the aggregate, 
or to the private sector, and is the least burdensome alternative that 
achieves the objective of the final rule.

I. Environmental Assessment

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

J. Executive Order 13609 and International Trade Analysis

    Under Executive Order 13609, Promoting International Regulatory 
Cooperation, agencies must consider whether the impacts associated with 
significant variations between domestic and international regulatory 
approaches are unnecessary or may impair the ability of American 
business to export and compete internationally, 77 FR 26413 (May 4, 
2012). In meeting shared challenges involving health, safety, labor, 
security, environmental, and other issues, international regulatory 
cooperation can identify approaches that are at least as protective as 
those that are or would be adopted in the absence of such cooperation. 
International regulatory cooperation can also reduce, eliminate, or 
prevent unnecessary differences in regulatory requirements.
    Similarly, the Trade Agreements Act of 1979 (Pub. L. 96-39), as 
amended by the Uruguay Round Agreements Act (Pub. L. 103-465), 
prohibits Federal agencies from establishing any standards or engaging 
in related activities that create unnecessary obstacles to the foreign 
commerce of the United States. For purposes of these requirements, 
Federal agencies may participate in the establishment of

[[Page 19328]]

international standards so long as the standards have a legitimate 
domestic objective--such as providing for safety--and do not operate to 
exclude imports that meet this objective. The statute also requires 
consideration of international standards and, where appropriate, using 
them as the basis for U.S. standards.
    PHMSA participates in the establishment of international standards 
in order to protect the safety of the American public, and we have 
assessed the effects of this final rule to ensure that it does not 
cause unnecessary obstacles to foreign trade. Accordingly, this final 
rule is consistent with Executive Order 13609 and PHMSA's obligations.

K. Privacy Act

    Anyone is able to search the electronic form of written 
communications and comments received into our dockets by the name of 
the individual submitting the document (or signing the document, if 
submitted on behalf of an association, business, labor union, etc.). 
You may review DOT's complete Privacy Act Statement, published on April 
11, 2000 (65 FR 19476), in the Federal Register at: https://www.thefederalregister.org/fdsys/pkg/FR-2000-04-11/pdf/00-8505.pdf.

L. Regulation Identifier Number (RIN)

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

M. Executive Order 13609 and International Trade Analysis

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

List of Subjects in 49 CFR Part 190

    Administrative practice and procedure, Penalties, Pipeline safety.

    Accordingly, the interim rule amending 49 CFR part 190 which was 
published at 81 FR 42564 on June 30, 2016, is adopted as a final rule 
with the following changes:

PART 190--PIPELINE SAFETY ENFORCEMENT AND REGULATORY PROCEDURES

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

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


0
2. In Sec.  190.223 paragraphs (a), (c), and (d) are revised to read as 
follows:


Sec.  190.223  Maximum penalties.

    (a) Any person found to have violated a provision of 49 U.S.C. 
60101, et seq., or any regulations or orders issued thereunder, is 
subject to an administrative civil penalty not to exceed $209,002 for 
each violation for each day the violation continues, with a maximum 
administrative civil penalty not to exceed $2,090,022 for any related 
series of violations.
* * * * *
    (c) Any person found to have violated any standard or order under 
49 U.S.C. 60103 is subject to an administrative civil penalty not to 
exceed $76,352, which may be in addition to other penalties to which 
such person may be subject under paragraph (a) of this section.
    (d) Any person who is determined to have violated any standard or 
order under 49 U.S.C. 60129 is subject to an administrative civil 
penalty not to exceed $1,214, which may be in addition to other 
penalties to which such person may be subject under paragraph (a) of 
this section.
* * * * *

    Issued in Washington, DC, on April 24, 2017, under authority 
delegated in 49 CFR 1.97.
Howard W. McMillan,
Administrator.
[FR Doc. 2017-08530 Filed 4-26-17; 8:45 am]
 BILLING CODE 4910-60-P



                                                                Federal Register / Vol. 82, No. 80 / Thursday, April 27, 2017 / Rules and Regulations                                              19325

                                             attractive when these services are                      Stat. 56. Interpret or apply 47 U.S.C. 201,             (1) FCC (on behalf of SIP Forum), 445
                                             interoperable than when they are not                    218, 222, 225, 226, 227, 228, 254(k), 616, 620,       12th Street SW., Washington, DC 20554,
                                             interoperable. These benefits outweigh                  and the Middle Class Tax Relief and Job               (888) 225–5322 (voice), (844) 432–2275
                                             any burdens associated with                             Creation Act of 2012, Pub. L. 112–96, unless          (videophone), (888) 835–5322 (TTY).
                                                                                                     otherwise noted.
                                             compliance. Moreover, because all of                                                                            (i) VRS US Providers Profile TWG–
                                             the VRS providers participated in the                   ■  2. Amend § 64.621 by:                              6.1, the US VRS Provider
                                             discussions associated with the                         ■  a. In paragraph (a)(1), removing the               Interoperability Profile, September 23,
                                             development of the standards, the                       first instance of ‘‘VRS’’ and adding in its           2015. https://www.fcc.gov/files/sip-
                                             Bureau believes that these standards are                place ‘‘Video Relay Service (VRS)’’;                  forum-vrs-us-providers-profile-twg-6-1.
                                             acceptable to all VRS providers,                        ■ b. Revising paragraph (a)(3); and                     (ii) [Reserved]
                                             including small entities. Further, to                   ■ c. Adding paragraphs (b) and (c) to                   (2) The following standards are
                                             minimize any adverse impact on VRS                      read as follows:                                      available from the Internet Engineering
                                             providers, the Bureau adopted an                                                                              Task Force (IETF) Secretariat, 5177
                                             alternative that narrows the scope of                   § 64.621    Interoperability and portability.         Brandin Court, Fremont, CA 94538,
                                             application of the technical standard for                 (a) * * *                                           510–492–4080.
                                             the interface between provider networks                   (3) Beginning no later than April 27,                 (i) The Interoperability Profile for
                                             and user equipment and software, so                     2018, all VRS providers must ensure                   Relay User Equipment, draft-vrs-rue-
                                             that it governs only the interface                      that their VRS access technologies and                dispatch-00, July 20, 2016 https://
                                             between a provider’s network and user                   their video communication service                     datatracker.ietf.org/doc/draft-vrs-rue-
                                             equipment that employs designated                       platforms are interoperable with the                  dispatch/.
                                             open-source user software, rather than                  VRS Access Technology Reference                         (ii) Request for Comments (RFC) 6351,
                                             all user equipment and software. Lastly,                Platform, including for point-to-point                xCard: vCard XML Representation
                                             document DA 17–76 allows extended                       calls, in accordance with the                         (August 2011) https://tools.ietf.org/
                                             implementation periods to ensure that                   Interoperability Profile for Relay User               html/rfc6351.
                                             providers have sufficient time to                       Equipment (RUE Profile). No VRS                       [FR Doc. 2017–08488 Filed 4–26–17; 8:45 am]
                                             implement the standards.                                provider shall be compensated for                     BILLING CODE 6712–01–P
                                                                                                     minutes of use involving their VRS
                                             Ordering Clauses                                        access technologies or video
                                                Pursuant to sections 1, 2, 4(i), 4(j), 225           communication service platforms that                  DEPARTMENT OF TRANSPORTATION
                                             and 303(r) of the Communications Act                    are not interoperable with the VRS
                                             of 1934, as amended, 47 U.S.C. 151, 152,                Access Technology Reference Platform.                 Pipeline and Hazardous Materials
                                             154(i), 154(j), 225, 303(r), and the                    *      *    *     *     *                             Safety Administration
                                             authority delegated by the Commission                     (b) Technical standards for
                                             in Structure and Practices of the Video                 interoperability and portability. (1)                 49 CFR Part 190
                                             Relay Service Program et al., Report and                Beginning no later than August 25,
                                             Order, published at 78 FR 40582, July 5,                                                                      [Docket No. PHMSA–2016–0010; Amdt. No.
                                                                                                     2017, VRS providers shall ensure that                 190–17]
                                             2013, document DA 17–76 is adopted,                     their provision of VRS and video
                                             and part 64 of the Commission’s rules                   communications, including their access                RIN–2137–AF16
                                             is amended.                                             technology, meets the requirements of
                                                The Commission’s Consumer and                        the VRS Provider Interoperability                     Pipeline Safety: Inflation Adjustment of
                                             Governmental Affairs Bureau, Reference                  Profile.                                              Maximum Civil Penalties
                                             Information Center, shall send a copy of                  (2) Beginning no later than October                 AGENCY:  Pipeline and Hazardous
                                             document DA 17–76, including the                        24, 2017, VRS providers shall provide a               Materials Safety Administration
                                             Final Regulatory Flexibility Analysis to                standard xCard export interface to                    (PHMSA), Department of Transportation
                                             the Chief Counsel for Advocacy of the                   enable users to import their lists of                 (DOT).
                                             Small Business Administration.                          contacts in xCard XML format, in                      ACTION: Final rule.
                                             List of Subjects in 47 CFR Part 64                      accordance with IETF RFC 6351.
                                                                                                       (c) Incorporation by reference. The                 SUMMARY:   The Pipeline and Hazardous
                                               Incorporation by reference,
                                                                                                     standards required in this section are                Materials Safety Administration
                                             Individuals with disabilities,
                                                                                                     incorporated by reference into this                   (PHMSA) is revising references in its
                                             Telecommunications relay services,
                                                                                                     section with the approval of the Director             regulations to the maximum civil
                                             Video relay services.
                                                                                                     of the Federal Register under 5 U.S.C.                penalties for violations of Federal
                                             Federal Communications Commission.                      552(a) and 1 CFR part 51. All approved                pipeline safety laws, or any PHMSA
                                             Karen Peltz Strauss,                                    material is available for inspection at               regulations or orders issued thereunder.
                                             Deputy Bureau Chief, Consumer and                       the Federal Communications                            Under the Federal Civil Penalties
                                             Governmental Affairs Bureau.                            Commission (FCC), 445 12th Street,                    Inflation Adjustment Act Improvements
                                               For the reasons discussed in the                      SW., Reference Information Center,                    Act of 2015, which further amended the
                                             preamble, the Federal Communications                    Room CY–A257, Washington, DC 20554,                   Federal Civil Penalties Inflation
                                             Commission amends 47 part 64 as                         (202) 418–0270, and is available from                 Adjustment Act of 1990, Federal
                                             follows:                                                the sources indicated below. It is also               agencies are required to adjust their
                                                                                                     available for inspection at the National              civil monetary penalties effective
                                             PART 64—MISCELLANEOUS RULES                             Archives and Records Administration                   January 15, 2017, and annually
nlaroche on DSK30NT082PROD with RULES




                                             RELATING TO COMMON CARRIERS                             (NARA). For information on the                        thereafter, to account for changes in
                                                                                                     availability of this material at NARA,                inflation.
                                             ■ 1. The authority citation for part 64 is              call 202–741–6030 or go to http://                      PHMSA finds good cause to amend
                                             revised to read as follows:                             www.archives.gov/federal_register/                    the regulations related to civil penalties
                                               Authority: 47 U.S.C. 154, 225, 254(k);                code_of_federal_regulations/ibr_                      without notice or opportunity for public
                                             403(b)(2)(B), (c), 715, Pub. L. 104–104, 110            locations.htm.                                        comment. Advance public notice is


                                        VerDate Sep<11>2014   14:36 Apr 26, 2017   Jkt 241001   PO 00000   Frm 00007   Fmt 4700   Sfmt 4700   E:\FR\FM\27APR1.SGM   27APR1


                                             19326               Federal Register / Vol. 82, No. 80 / Thursday, April 27, 2017 / Rules and Regulations

                                             unnecessary for the reasons described in                      F. Regulatory Flexibility Act, Executive           interim final rule stated that PHMSA is
                                             the SUPPLEMENTARY INFORMATION section.                           Order 13272, and DOT Procedures and             revising references in its regulations to
                                                                                                              Policies                                        the maximum civil penalties for
                                             DATES:  The effective date of this final                      G. Paperwork Reduction Act
                                                                                                                                                              violations of Federal pipeline safety
                                             rule is April 27, 2017.                                       H. Unfunded Mandates Reform Act of 1995
                                                                                                           I. Environmental Assessment                        laws, or any PHMSA regulations or
                                             FOR FURTHER INFORMATION CONTACT:                              J. Executive Order 13609 and International         orders issued thereunder.
                                             Ahuva Battams, Attorney-Advisor,                                 Trade Analysis                                     Pursuant to the 2015 Act, and
                                             Pipeline Safety Division, Office of Chief                     K. Privacy Act                                     consistent with the process outlined in
                                             Counsel, the Pipeline and Hazardous                           L. Regulation Identifier Number (RIN)              the OMB memorandum titled
                                             Materials Safety Administration, by                           M. Executive Order 13609 and                       ‘‘Memorandum for the Heads of
                                             telephone at 202–366–4400 or email at                            International Trade Analysis                    Executive Departments and Agencies:
                                             ahuva.battams@dot.gov.                                    I. Civil Penalty Amendments                            Implementation of the 2017 annual
                                                                                                                                                              adjustment pursuant to the Federal Civil
                                             SUPPLEMENTARY INFORMATION:
                                                                                                          On June 30, 2016, PHMSA published                   Penalties Inflation Adjustment Act
                                             Table of Contents                                         an interim final rule, (81 FR 42564) in                Improvements Act of 2015,’’ M–17–11
                                                                                                       the Federal Register. Under the Pipeline               (OMB Memorandum M–17–11), PHMSA
                                             I. Civil Penalty Amendments
                                                                                                       Safety, Regulatory Certainty, and Job                  is again revising references in these
                                             II. Justification for the Final Rule
                                                                                                       Creation Act of 2015 (the 2015 Act),                   regulations to the maximum civil
                                             III. Rulemaking Analyses and Notices
                                                A. Statutory/Legal Authority for This
                                                                                                       Public Law 114–74, and consistent with                 penalties for violations. Based on the
                                                   Rulemaking                                          the process outlined in the Office of                  cost-of-living adjustment multiplier for
                                                B. Executive Order 12866, Executive Order              Management and Budget’s (OMB)                          2017, derived from the Consumer Price
                                                   13563, and Department of Transportation             Memorandum for the Heads of                            Index (CPI–U) for the month of October
                                                   (DOT) Regulatory Policies and                       Executive Departments and Agencies:                    2016 (not seasonally adjusted), a
                                                   Procedures                                          ‘‘Implementation of the Federal Civil                  multiplier of 1.01636 was used to
                                                C. Executive Order 13132                               Penalties Inflation Adjustment Act                     calculate updated maximum civil
                                                D. Executive Order 13175                               Improvements Act of 2015,’’ M–16–06                    penalty amounts.
                                                E. Executive Order 13211                               (OMB Memorandum M–16–06), the                             The revised penalties are as follows:

                                                    Violated statute                        CFR citation                   Current maximum civil penalty                   Revised maximum civil penalty

                                             49 U.S.C. 60101 et seq.,               49 CFR 190.223(a) ...........    $205,638 for each violation for each day         $209,002 for each violation for each day
                                               and any regulation or                                                   the violation continues, with a max-             the violation continues, with a max-
                                               order issued thereunder.                                                imum     penalty    not   to    exceed           imum      penalty    not   to   exceed
                                                                                                                       $2,056,380 for a related series of vio-          $2,090,022 for a related series of vio-
                                                                                                                       lations.                                         lations.
                                             49 U.S.C. 60103; 49 U.S.C.             49 CFR 190.223(c) ............   A penalty not to exceed $75,123 which            An administrative civil penalty not to ex-
                                               60111.                                                                  may be in addition to other penalties            ceed $76,352, which may be in addi-
                                                                                                                       under 40 U.S.C. 60101, et seq.                   tion to other penalties assessed under
                                                                                                                                                                        49 U.S.C. 60101, et seq.
                                             49 U.S.C. 60129 ..................     49 CFR 190.223(d) ...........    A penalty not to exceed $1,194 ..............    A penalty not to exceed $1,214.



                                               The 2015 Act only applies to                            for public comment. This action is                     2015 Act and directed by the OMB
                                             prospective penalties and does not                        permitted, in part, because the 2015 Act               Guidance to adjust the penalty levels
                                             retrospectively change any civil                          directs PHMSA to adjust the civil                      pursuant to the specific procedures also
                                             penalties previously assessed or                          monetary penalties in accordance with                  stated herein. Any public comments
                                             enforced. Further, under the 2015 Act,                    the schedule provided in the 2015 Act,                 received through notice and public
                                             PHMSA is required to publish annual                       notwithstanding the notice and public                  procedure would therefore not affect
                                             inflation adjustments for each penalty                    comment procedures in the                              PHMSA’s obligation to comply with the
                                             levied under 49 U.S.C. 60101, et seq., in                 Administrative Procedure Act (APA).                    2015 Act, nor would they affect the
                                             the Federal Register no later than                        However, PHMSA also notes that the                     methods used by PHMSA to adjust the
                                             January 15 of each year.                                  APA authorizes agencies to forego                      penalty levels.
                                               The 2015 Act does not alter PHMSA’s                     providing the opportunity for prior
                                             existing authority to assess penalties                    public notice and comment if an agency                 III. Rulemaking Analyses and Notices
                                             levied for violations under 49 U.S.C.                     finds good cause that notice and public                A. Statutory/Legal Authority for This
                                             60101, et seq. Additionally, if future                    procedure are ‘‘impracticable,                         Rulemaking
                                             penalties or penalty adjustments are                      unnecessary, or contrary to the public
                                             enacted by statute or regulation,                         interest’’ (5 U.S.C. 553(b)(3)(B)). In this              This final rule is published under the
                                             PHMSA will not adjust these penalties                     instance, public comment is                            authority of the 2015 Act, as well 49
                                             for inflation in the first year after the                 unnecessary because by making these                    U.S.C. 60101, et seq. These statutes
                                             penalties are in effect. PHMSA will                       technical amendments, PHMSA is not                     provide PHMSA with the authority to
                                             apply new annual penalty levels to any                    exercising discretion in a way that could              levy civil penalties for violations of
                                             penalties assessed on or after the date                   be informed by public comment.                         Federal pipeline safety laws. The 2015
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                                             these new penalty levels take effect.                     PHMSA is required under the 2015 Act                   Act requires penalties levied by Federal
                                                                                                       and directed by the OMB Guidance to                    agencies pursuant to these laws to be
                                             II. Justification for Final Rule
                                                                                                       publish this final rule by January 15,                 adjusted. Beginning in January 2017, the
                                                PHMSA is proceeding directly to a                      2017, with the penalty levels stated                   2015 Act requires such penalties to be
                                             final rule without providing a notice of                  herein slated to take effect on that date.             adjusted on an annual basis no later
                                             proposed rulemaking or an opportunity                     Further, PHMSA is mandated by the                      than January 15 of each year.


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                                                                Federal Register / Vol. 82, No. 80 / Thursday, April 27, 2017 / Rules and Regulations                                       19327

                                             B. Executive Orders 12866 and 13563,                    13175 on consultation and coordination                actions and prepare a detailed statement
                                             and Department of Transportation                        with Indian tribal governments, 65 FR                 on actions significantly affecting the
                                             (DOT) Regulatory Policies and                           67249 (November 9, 2000). Because the                 quality of the human environment (42
                                             Procedures                                              final rule does not have tribal                       U.S.C. 4321–4375). When developing
                                                This final rule has been evaluated in                implications, does not impose                         potential regulatory requirements,
                                                                                                     substantial direct compliance costs, and              PHMSA evaluates those requirements to
                                             accordance with existing DOT policies
                                                                                                     is required by statute, the funding and               consider the environmental impact of
                                             and procedures and determined to be
                                                                                                     consultation requirements of Executive                these amendments. Specifically,
                                             non-significant under Executive Order
                                                                                                     Order 13175 do not apply.                             PHMSA evaluates the risk of release and
                                             12866, Regulatory Planning and Review,
                                                                                                                                                           resulting environmental impact; the risk
                                             58 FR 51735 (October 4, 1993), and                      E. Executive Order 13211                              to human safety, including any risk to
                                             Executive Order 13563, Improving                          This final rule is not a ‘‘significant              first responders; if the proposed
                                             Regulation and Regulatory Review, 76                    energy action’’ under Executive Order                 regulation would be carried out in a
                                             FR 3821 (January 21, 2011). Consistent                  13211, Actions Concerning Regulations                 defined geographic area; and the
                                             with guidance in OMB Memorandum                         that Significantly Affect Energy Supply,              resources, especially in environmentally
                                             M–17–11, this final rule is considered to               Distribution, or Use, 66 FR 28355 (May                sensitive areas, that could be impacted
                                             be a non-significant regulatory action                  22, 2001). It is not likely to have a                 by any proposed regulations.
                                             under Executive Order 12866. Further,                   significant adverse effect on supply,                    This final rule would be generally
                                             this final rule is not significant under                distribution, or energy use. Further, the             applicable to pipeline operators, and
                                             the regulatory policies and procedures                  Office of Information and Regulatory                  would not be carried out in a defined
                                             of the DOT because it is limited to a                   Affairs (OIRA) within OMB has not                     geographic area. The adjusted, increased
                                             ministerial act in which the agency has                 designated this final rule as a significant           civil penalties listed in this final rule
                                             no discretion and where the economic                    energy action.                                        may act as a deterrent to those violating
                                             impact of the final rule is minimal (44                                                                       Federal pipeline safety laws, or any
                                             FR 11034). Accordingly, preparation of                  F. Regulatory Flexibility Act, Executive              PHMSA regulations or orders issued
                                             a regulatory evaluation is not warranted.               Order 13272, and DOT Procedures and                   thereunder. This may result in a
                                                This final rule imposes no new costs                 Policies                                              positive environmental impact as a
                                             upon persons conducting operations in                      The Regulatory Flexibility Act, 5                  result of increased compliance with
                                             compliance with Federal pipeline                        U.S.C. 601–611, requires each agency to               Federal pipeline safety laws and any
                                             statutes and regulations. Those                         analyze proposed regulations and assess               PHMSA regulations or orders issued
                                             operators not in compliance with these                  their impact on small businesses and                  thereunder. Based on the above
                                             statues and regulations may experience                  other small entities to determine                     discussion, PHMSA concludes there are
                                             an increased cost based on the penalties                whether this final rule is expected to                no significant environmental impacts
                                             levied against them for non-compliance;                 have a significant impact on a                        associated with this final rule.
                                             however, this is an avoidable, variable                 substantial number of small entities.
                                             cost and thus is not considered in any                                                                        J. Executive Order 13609 and
                                                                                                     The provisions of this final rule may                 International Trade Analysis
                                             evaluation of the significance of this                  apply specifically to all businesses
                                             regulatory action. The amendments in                    using pipelines to transport hazardous                   Under Executive Order 13609,
                                             this final rule could provide a deterrent               liquids, gas, and liquefied natural gas               Promoting International Regulatory
                                             effect that could potentially lead to                   (LNG) in interstate commerce.                         Cooperation, agencies must consider
                                             safety benefits; however, PHMSA does                    Therefore, PHMSA certifies this final                 whether the impacts associated with
                                             not expect such benefits to be                          rule would not have a significant                     significant variations between domestic
                                             significant. Overall, it is anticipated that            economic impact on a substantial                      and international regulatory approaches
                                             costs and benefits from this final rule                 number of small entities.                             are unnecessary or may impair the
                                             would be minimal in real dollars.                                                                             ability of American business to export
                                                                                                     G. Paperwork Reduction Act                            and compete internationally, 77 FR
                                             C. Executive Order 13132                                                                                      26413 (May 4, 2012). In meeting shared
                                                                                                       This final rule imposes no new
                                               PHMSA has analyzed this final rule                    requirements for recordkeeping or                     challenges involving health, safety,
                                             according to Executive Order 13132 on                   reporting.                                            labor, security, environmental, and
                                             Federalism, 64 FR 43255 (August 10,                                                                           other issues, international regulatory
                                             1999). The final rule does not have a                   H. Unfunded Mandates Reform Act of                    cooperation can identify approaches
                                             substantial direct effect on the States,                1995                                                  that are at least as protective as those
                                             the relationship between the national                      This final rule does not impose                    that are or would be adopted in the
                                             government and the States, or the                       unfunded mandates under the                           absence of such cooperation.
                                             distribution of power and                               Unfunded Mandates Reform Act of                       International regulatory cooperation can
                                             responsibilities among the various                      1995, Public Law 104–4. It does not                   also reduce, eliminate, or prevent
                                             levels of government. The final rule                    result in costs of $100 million or more               unnecessary differences in regulatory
                                             neither imposes substantial direct                      (adjusted for inflation) in any year for              requirements.
                                             compliance costs on State and local                     either State, local, or tribal governments,              Similarly, the Trade Agreements Act
                                             governments nor preempts state law                      in the aggregate, or to the private sector,           of 1979 (Pub. L. 96–39), as amended by
                                             governing intrastate pipelines.                         and is the least burdensome alternative               the Uruguay Round Agreements Act
                                             Therefore, the consultation and funding                 that achieves the objective of the final              (Pub. L. 103–465), prohibits Federal
                                                                                                                                                           agencies from establishing any
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                                             requirements of Executive Order 13132                   rule.
                                             do not apply.                                                                                                 standards or engaging in related
                                                                                                     I. Environmental Assessment                           activities that create unnecessary
                                             D. Executive Order 13175                                   The National Environmental Policy                  obstacles to the foreign commerce of the
                                               This final rule has been analyzed in                  Act of 1969 (NEPA), as amended,                       United States. For purposes of these
                                             accordance with the principles and                      requires Federal agencies to consider                 requirements, Federal agencies may
                                             criteria contained in Executive Order                   the consequences of major Federal                     participate in the establishment of


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                                             19328              Federal Register / Vol. 82, No. 80 / Thursday, April 27, 2017 / Rules and Regulations

                                             international standards so long as the                  year. The RIN contained in the heading                ■ 2. In § 190.223 paragraphs (a), (c), and
                                             standards have a legitimate domestic                    of this document can be used to cross-                (d) are revised to read as follows:
                                             objective—such as providing for                         reference this action in the Unified
                                             safety—and do not operate to exclude                    Agenda.                                               § 190.223    Maximum penalties.
                                             imports that meet this objective. The                                                                           (a) Any person found to have violated
                                                                                                     M. Executive Order 13609 and
                                             statute also requires consideration of                                                                        a provision of 49 U.S.C. 60101, et seq.,
                                                                                                     International Trade Analysis
                                             international standards and, where                                                                            or any regulations or orders issued
                                             appropriate, using them as the basis for                   Sections 3 and 4 of Executive Order                thereunder, is subject to an
                                             U.S. standards.                                         13609 direct an agency to conduct a                   administrative civil penalty not to
                                               PHMSA participates in the                             regulatory analysis and ensure that a                 exceed $209,002 for each violation for
                                             establishment of international standards                proposed rule does not cause                          each day the violation continues, with
                                             in order to protect the safety of the                   unnecessary obstacles to foreign trade.               a maximum administrative civil penalty
                                             American public, and we have assessed                   This requirement applies if a rule                    not to exceed $2,090,022 for any related
                                             the effects of this final rule to ensure                constitutes a significant regulatory                  series of violations.
                                             that it does not cause unnecessary                      action, or if a regulatory evaluation must
                                             obstacles to foreign trade. Accordingly,                be prepared for the rule. This interim                *     *     *     *    *
                                             this final rule is consistent with                      final rule is not a significant regulatory              (c) Any person found to have violated
                                             Executive Order 13609 and PHMSA’s                       action, but a regulatory action under                 any standard or order under 49 U.S.C.
                                             obligations.                                            Section 3(e) of Executive Order 12866.                60103 is subject to an administrative
                                                                                                     PHMSA is not required under Executive                 civil penalty not to exceed $76,352,
                                             K. Privacy Act
                                                                                                     Orders 12866 and 13563 to submit a                    which may be in addition to other
                                                Anyone is able to search the                         regulatory analysis.                                  penalties to which such person may be
                                             electronic form of written                                                                                    subject under paragraph (a) of this
                                             communications and comments                             List of Subjects in 49 CFR Part 190
                                                                                                                                                           section.
                                             received into our dockets by the name                     Administrative practice and
                                             of the individual submitting the                                                                                (d) Any person who is determined to
                                                                                                     procedure, Penalties, Pipeline safety.
                                             document (or signing the document, if                                                                         have violated any standard or order
                                                                                                       Accordingly, the interim rule                       under 49 U.S.C. 60129 is subject to an
                                             submitted on behalf of an association,                  amending 49 CFR part 190 which was
                                             business, labor union, etc.). You may                                                                         administrative civil penalty not to
                                                                                                     published at 81 FR 42564 on June 30,                  exceed $1,214, which may be in
                                             review DOT’s complete Privacy Act                       2016, is adopted as a final rule with the
                                             Statement, published on April 11, 2000                                                                        addition to other penalties to which
                                                                                                     following changes:                                    such person may be subject under
                                             (65 FR 19476), in the Federal Register
                                             at: https://www.gpo.gov/fdsys/pkg/FR-                   PART 190—PIPELINE SAFETY                              paragraph (a) of this section.
                                             2000-04-11/pdf/00-8505.pdf.                             ENFORCEMENT AND REGULATORY                            *     *     *     *    *
                                             L. Regulation Identifier Number (RIN)                   PROCEDURES                                              Issued in Washington, DC, on April 24,
                                                                                                                                                           2017, under authority delegated in 49 CFR
                                                A regulation identifier number (RIN)                 ■ 1. The authority citation for part 190              1.97.
                                             is assigned to each regulatory action                   continues to read as follows:
                                                                                                                                                           Howard W. McMillan,
                                             listed in the Unified Agenda of Federal                   Authority: 33 U.S.C. 1321(b); 49 U.S.C.
                                             Regulations. The Regulatory Information                                                                       Administrator.
                                                                                                     60101 et seq.; 49 CFR 1.97; Pub. L. 114–74,
                                             Service Center publishes the Unified                    section 701; Pub. L. No: 112–90, section 2;           [FR Doc. 2017–08530 Filed 4–26–17; 8:45 am]
                                             Agenda in the spring and fall of each                   Pub. L. 101–410, sections 4–6.                        BILLING CODE 4910–60–P
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Document Created: 2017-04-27 01:40:08
Document Modified: 2017-04-27 01:40:08
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
ActionFinal rule.
DatesThe effective date of this final rule is April 27, 2017.
ContactAhuva Battams, Attorney-Advisor, Pipeline Safety Division, Office of Chief Counsel, the Pipeline and Hazardous Materials Safety Administration, by telephone at 202-366-4400 or email at [email protected]
FR Citation82 FR 19325 
CFR AssociatedAdministrative Practice and Procedure; Penalties and Pipeline Safety

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