82 FR 32139 - Civil Penalties
DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration Federal Register Volume 82, Issue 132 (July 12, 2017)
National Highway Traffic Safety Administration
Federal Register Volume 82, Issue 132 (July 12, 2017)
| Page Range | 32139-32140 | |
| FR Document | 2017-14526 |
[Federal Register Volume 82, Number 132 (Wednesday, July 12, 2017)] [Rules and Regulations] [Pages 32139-32140] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-14526] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration 49 CFR Part 578 [Docket No. NHTSA-2016-0136] RIN 2127-AL82 Civil Penalties AGENCY: National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT). ACTION: Final rule; delay of effective date. ----------------------------------------------------------------------- SUMMARY: NHTSA is delaying the effective date of the final rule entitled ``Civil Penalties,'' published in the Federal Register on December 28, 2016, because NHTSA is reconsidering the appropriate level for CAFE civil penalties. DATES: As of July 7, 2017, the effective date of the final rule published in the Federal Register on December 28, 2016, at 81 FR 95489, is delayed indefinitely pending reconsideration. FOR FURTHER INFORMATION CONTACT: Rebecca Schade, Office of Chief Counsel, at (202) 366-2992. SUPPLEMENTARY INFORMATION: On July 5, 2016, NHTSA published an interim final rule updating the maximum civil penalty amounts for violations of statutes and regulations administered by NHTSA, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act). The penalty for exceeding an applicable Corporate Average Fuel Economy (CAFE) standard was among the penalties adjusted for inflation in the interim final rule. In accordance with the Inflation Adjustment Act and guidance on calculating the inflationary adjustment mandated by the Act issued by the Office of Management and Budget, NHTSA increased the civil penalty for failing to meet an applicable CAFE standard from $5.50 per tenth of a mile per gallon (mpg) to $14 per tenth of an mpg. The Auto Alliance and Global Automakers jointly petitioned NHTSA for reconsideration of the interim final rule regarding the inflationary adjustment of CAFE non-compliance penalties (hereafter, the Alliance and Global petition will be referred to as the ``Industry Petition'') \1\ on August 1, 2016. The Industry Petition argued that NHTSA used the wrong base year to calculate the inflationary adjustment to the CAFE civil penalty and raised concerns about applying the adjusted civil penalty retroactively. The Industry Petition also argued that in the event that NHTSA chose not to adopt the base year suggested in the petition, NHTSA should seek comment on whether NHTSA should adopt a lower penalty level than the one in the interim final rule based on ``negative economic impacts,'' as permitted by the Inflation Adjustment Act. --------------------------------------------------------------------------- \1\ Jaguar Land Rover North America, LLC also filed a petition for reconsideration in response to the July 5, 2016 interim final rule raising the same concerns as those raised in the Industry Petition. Both petitions can be found in Docket No. NHTSA-2016-0075, accessible via www.regulations.gov. --------------------------------------------------------------------------- On December 28, 2016, NHTSA published a final rule in response to the Industry Petition.\2\ To address concerns raised in the Industry Petition about applying the adjusted penalty retroactively, NHTSA delayed application of the $14 per tenth of an mpg penalty until the 2019 model year, which begins in October 2018 for most manufacturers. The final rule did not address the other points raised in the Industry Petition. --------------------------------------------------------------------------- \2\ 81 FR 95489. --------------------------------------------------------------------------- The December 28, 2016 final rule is not yet effective and would currently become effective on July 10, 2017.\3\ --------------------------------------------------------------------------- \3\ 82 FR 8694 (Jan. 30, 2017); 82 FR 15302 (Mar. 28, 2017); 82 FR 29009 (June 27, 2017). --------------------------------------------------------------------------- NHTSA is now reconsidering the final rule because the final rule did not give adequate consideration to all of the relevant issues, including the potential economic consequences of increasing CAFE penalties by potentially $1 billion per year, as estimated in the Industry Petition. Thus, in a separate document [[Page 32140]] published in this Federal Register, NHTSA is seeking comment on whether $14 per tenth of an mpg is the appropriate penalty level for civil penalties for violations of CAFE standards given the requirements of the Inflation Adjustment Act and the Energy Policy and Conservation Act (EPCA) of 1975, which authorizes civil penalties for violations of CAFE standards.\4\ Because NHTSA is reconsidering the final rule, NHTSA is delaying the effective date pending reconsideration. --------------------------------------------------------------------------- \4\ NHTSA incorporates the discussions in the document seeking comment on the appropriate CAFE civil penalties level by reference. --------------------------------------------------------------------------- There is good cause to implement this delay without notice and comment under 5 U.S.C. 553(b)(B) and 553(d)(3) because those procedures are impracticable, unnecessary, and contrary to the public interest in these circumstances, where the effective date of the rule is imminent. Moreover, the agency is, through a separate document, already seeking out public comments on the underlying issues, which may be extensive, and additional time will be required to thoughtfully consider and address those comments before deciding on the appropriate course of regulatory action. A delay in the effective date is therefore consistent with NHTSA's statutory authority to administer the CAFE standards program and its inherent authority to do so efficiently and in the public interest. In addition, no party will be harmed by the delay in the effective date of the rule. On the contrary, the rule does not increase CAFE penalties before Model Year 2019, and therefore, the delay will not affect the civil penalty amounts assessed against any manufacturer for violating a CAFE standard prior to the 2019 model year at the earliest, i.e., until sometime in 2020. Therefore, the increased penalty rate set forth in the rule would not be applied for current violations, so there is no immediate, concrete impact from the delay. Authority: Pub. L. 101-410, Pub. L. 104-134, Pub. L. 109-59, Pub. L. 114-74, Pub L. 114-94, 49 U.S.C. 32902 and 32912; delegation of authority at 49 CFR 1.81, 1.95. Jack Danielson, Acting Deputy Administrator. [FR Doc. 2017-14526 Filed 7-7-17; 11:15 am] BILLING CODE 4910-59-P
![Federal Register / Vol. 82, No. 132 / Wednesday, July 12, 2017 / Rules and Regulations 32139
Review) defines a ‘‘significant approved this document on July 5, 2017, exceeding an applicable Corporate
regulatory action,’’ which requires for publication. Average Fuel Economy (CAFE) standard
review by the Office of Management and was among the penalties adjusted for
List of Subjects in 38 CFR Part 74
Budget, as ‘‘any regulatory action that is inflation in the interim final rule. In
likely to result in a rule that may: (1) Administrative practice and accordance with the Inflation
Have an annual effect on the economy procedures, Privacy, Reporting and Adjustment Act and guidance on
of $100 million or more or adversely recordkeeping requirements, Small calculating the inflationary adjustment
affect in a material way the economy, a business, Veteran, Veteran-owned small mandated by the Act issued by the
sector of the economy, productivity, business, Verification. Office of Management and Budget,
competition, jobs, the environment, Dated: July 7, 2017. NHTSA increased the civil penalty for
public health or safety, or State, local, Michael Shores, failing to meet an applicable CAFE
or tribal governments or communities; Director, Regulation Policy & Management,
standard from $5.50 per tenth of a mile
(2) Create a serious inconsistency or Office of the Secretary, Department of per gallon (mpg) to $14 per tenth of an
otherwise interfere with an action taken Veterans Affairs. mpg.
or planned by another agency; (3) The Auto Alliance and Global
Materially alter the budgetary impact of PART 74—VETERANS SMALL Automakers jointly petitioned NHTSA
entitlements, grants, user fees, or loan BUSINESS REGULATIONS for reconsideration of the interim final
programs or the rights and obligations of rule regarding the inflationary
Accordingly, the interim rule adjustment of CAFE non-compliance
recipients thereof; or (4) Raise novel
amending 38 CFR part 74 which was penalties (hereafter, the Alliance and
legal or policy issues arising out of legal
published at 82 FR 11154 on February Global petition will be referred to as the
mandates, the President’s priorities, or
21, 2017, is adopted as final without ‘‘Industry Petition’’) 1 on August 1,
the principles set forth in this Executive
change. 2016. The Industry Petition argued that
Order.’’
[FR Doc. 2017–14600 Filed 7–11–17; 8:45 am] NHTSA used the wrong base year to
The economic, interagency,
budgetary, legal, and policy BILLING CODE 8320–01–P calculate the inflationary adjustment to
implications of this regulatory action the CAFE civil penalty and raised
have been examined and it has been concerns about applying the adjusted
DEPARTMENT OF TRANSPORTATION civil penalty retroactively. The Industry
determined not to be a significant
regulatory action under Executive Order Petition also argued that in the event
National Highway Traffic Safety
12866. that NHTSA chose not to adopt the base
Administration
year suggested in the petition, NHTSA
Unfunded Mandates should seek comment on whether
49 CFR Part 578
The Unfunded Mandates Reform Act NHTSA should adopt a lower penalty
of 1995 requires, at 2 U.S.C. 1532, that [Docket No. NHTSA–2016–0136] level than the one in the interim final
agencies prepare an assessment of RIN 2127–AL82 rule based on ‘‘negative economic
anticipated costs and benefits before impacts,’’ as permitted by the Inflation
issuing any rule that may result in the Civil Penalties Adjustment Act.
expenditure by state, local, and tribal On December 28, 2016, NHTSA
AGENCY: National Highway Traffic published a final rule in response to the
governments, in the aggregate, or by the
Safety Administration (NHTSA), Industry Petition.2 To address concerns
private sector, of $100 million or more
Department of Transportation (DOT). raised in the Industry Petition about
(adjusted annually for inflation) in any
given year. This final rule has no such ACTION: Final rule; delay of effective applying the adjusted penalty
effect on state, local, and tribal date. retroactively, NHTSA delayed
governments, or on the private sector. application of the $14 per tenth of an
SUMMARY: NHTSA is delaying the mpg penalty until the 2019 model year,
Paperwork Reduction Act effective date of the final rule entitled which begins in October 2018 for most
‘‘Civil Penalties,’’ published in the manufacturers. The final rule did not
This document contains no provisions Federal Register on December 28, 2016,
constituting a collection of information address the other points raised in the
because NHTSA is reconsidering the Industry Petition.
under the Paperwork Reduction Act of appropriate level for CAFE civil
1995 (44 U.S.C. 3501–3521). The December 28, 2016 final rule is
penalties. not yet effective and would currently
Catalog of Federal Domestic Assistance DATES: As of July 7, 2017, the effective become effective on July 10, 2017.3
date of the final rule published in the NHTSA is now reconsidering the final
This final rule affects the verification
Federal Register on December 28, 2016, rule because the final rule did not give
guidelines of veteran-owned small
at 81 FR 95489, is delayed indefinitely adequate consideration to all of the
businesses, for which there is no Catalog
pending reconsideration. relevant issues, including the potential
of Federal Domestic Assistance program
FOR FURTHER INFORMATION CONTACT:
economic consequences of increasing
number.
Rebecca Schade, Office of Chief CAFE penalties by potentially $1 billion
Signing Authority Counsel, at (202) 366–2992. per year, as estimated in the Industry
Petition. Thus, in a separate document
The Secretary of Veterans Affairs, or SUPPLEMENTARY INFORMATION: On July 5,
designee, approved this document and 2016, NHTSA published an interim 1 Jaguar Land Rover North America, LLC also
authorized the undersigned to sign and final rule updating the maximum civil
nlaroche on DSK30NT082PROD with RULES
filed a petition for reconsideration in response to
submit the document to the Office of the penalty amounts for violations of the July 5, 2016 interim final rule raising the same
Federal Register for publication statutes and regulations administered by concerns as those raised in the Industry Petition.
Both petitions can be found in Docket No. NHTSA–
electronically as an official document of NHTSA, pursuant to the Federal Civil 2016–0075, accessible via www.regulations.gov.
the Department of Veterans Affairs. Gina Penalties Inflation Adjustment Act 2 81 FR 95489.
S. Farrisee, Deputy Chief of Staff, Improvements Act of 2015 (Inflation 3 82 FR 8694 (Jan. 30, 2017); 82 FR 15302 (Mar.
Department of Veterans Affairs, Adjustment Act). The penalty for 28, 2017); 82 FR 29009 (June 27, 2017).
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![32140 Federal Register / Vol. 82, No. 132 / Wednesday, July 12, 2017 / Rules and Regulations
published in this Federal Register, DEPARTMENT OF TRANSPORTATION Docket: For access to the docket to
NHTSA is seeking comment on whether read background documents or
$14 per tenth of an mpg is the National Highway Traffic Safety comments received, go to http://
appropriate penalty level for civil Administration www.regulations.gov or the street
penalties for violations of CAFE address listed above. NHTSA will
standards given the requirements of the 49 CFR Part 578 continue to file relevant information in
Inflation Adjustment Act and the Energy [Docket No. NHTSA–2017–0059] the Docket as it becomes available.
Policy and Conservation Act (EPCA) of Privacy Act: In accordance with 5
1975, which authorizes civil penalties Civil Penalties U.S.C. 553(c), DOT solicits comments
for violations of CAFE standards.4 from the public to better inform its
AGENCY: National Highway Traffic
Because NHTSA is reconsidering the rulemaking process. DOT posts these
Safety Administration (NHTSA),
final rule, NHTSA is delaying the comments, without edit, including any
Department of Transportation (DOT).
effective date pending reconsideration. personal information the commenter
ACTION: Reconsideration of final rule;
provides, to http://www.regulations.gov,
There is good cause to implement this request for comments. as described in the system of records
delay without notice and comment notice (DOT/ALL–14 FDMS), which can
SUMMARY: NHTSA seeks comment on
under 5 U.S.C. 553(b)(B) and 553(d)(3) be reviewed at https://
whether and how to amend the civil
because those procedures are www.transportation.gov/privacy.
penalty rate for violations of Corporate
impracticable, unnecessary, and Anyone is able to search the electronic
Average Fuel Economy (CAFE)
contrary to the public interest in these standards. NHTSA initially raised the form of all comments received into any
circumstances, where the effective date civil penalty rate for CAFE standard of DOT’s dockets by the name of the
of the rule is imminent. Moreover, the violations for inflation in 2016, but individual submitting the comment (or
agency is, through a separate document, upon further consideration, NHTSA signing the comment, if submitted on
already seeking out public comments on believes that obtaining additional public behalf of an association, business, labor
the underlying issues, which may be input on how to proceed with CAFE union, etc.).
extensive, and additional time will be civil penalties in the future will be FOR FURTHER INFORMATION CONTACT:
required to thoughtfully consider and helpful. Therefore, NHTSA is issuing Thomas Healy, Office of the Chief
address those comments before deciding this document to seek public comment Counsel, NHTSA, telephone (202) 366–
on the appropriate course of regulatory as it sua sponte reconsiders its final rule 2992, facsimile (202) 366–3820, 1200
action. A delay in the effective date is regarding the appropriate inflationary New Jersey Avenue SE., Washington,
therefore consistent with NHTSA’s adjustment for CAFE civil penalties. DC 20590.
statutory authority to administer the DATES: Comments: Comments must be
SUPPLEMENTARY INFORMATION:
CAFE standards program and its received by October 10, 2017. See the
inherent authority to do so efficiently SUPPLEMENTARY INFORMATION section I. Statutory and Regulatory Background
and in the public interest. In addition, below for more information on NHTSA sets 1 and enforces 2 CAFE
no party will be harmed by the delay in submitting comments.
standards for the United States, and in
the effective date of the rule. On the ADDRESSES: You may submit comments doing so, assesses civil penalties against
contrary, the rule does not increase to the docket number identified in the vehicle manufacturers who fall short of
CAFE penalties before Model Year 2019, heading of this document by any of the their compliance obligations and are
and therefore, the delay will not affect following methods: unable to make up the shortfall with
the civil penalty amounts assessed • Federal eRulemaking Portal: Go to credits.3 The amount of the civil penalty
against any manufacturer for violating a http://www.regulations.gov. Follow the was originally set by statute in 1975,
CAFE standard prior to the 2019 model online instructions for submitting and for most of the duration of the
year at the earliest, i.e., until sometime comments. CAFE program, has been $5.50 per each
• Mail: Docket Management Facility,
in 2020. Therefore, the increased tenth of a mile per gallon that a
M–30, U.S. Department of
penalty rate set forth in the rule would manufacturer’s fleet average CAFE level
Transportation, West Building, Ground
not be applied for current violations, so falls short of its compliance obligation,
Floor, Room W12–140, 1200 New Jersey
there is no immediate, concrete impact multiplied by the number of vehicles in
Avenue SE., Washington, DC 20590.
from the delay. • Hand Delivery or Courier: U.S. the fleet 4 that has the shortfall. The
Department of Transportation, West basic equation for calculating a
Authority: Pub. L. 101–410, Pub. L. 104–
Building, Ground Floor, Room W12– manufacturer’s civil penalty amount is
134, Pub. L. 109–59, Pub. L. 114–74, Pub L.
140, 1200 New Jersey Avenue SE., as follows:
114–94, 49 U.S.C. 32902 and 32912;
delegation of authority at 49 CFR 1.81, 1.95. Washington, DC, between 9 a.m. and 5
1 49 U.S.C. 32902.
p.m. Eastern time, Monday through
Jack Danielson, Friday, except Federal holidays.
2 49 U.S.C. 32911, 32912.
3 Credits may be either earned (for over-
Acting Deputy Administrator. • Fax: 202–493–2251. compliance by a given manufacturer’s fleet, in a
[FR Doc. 2017–14526 Filed 7–7–17; 11:15 am] Regardless of how you submit your given model year) or purchased (in which case,
BILLING CODE 4910–59–P comments, you must include the docket another manufacturer earned the credits by over-
number identified in the heading of this complying and chose to sell that surplus). 49 U.S.C.
32903; 49 CFR part 538.
document. Note that all comments 4 A manufacturer may have up to three fleets of
nlaroche on DSK30NT082PROD with RULES
received, including any personal vehicles, for CAFE compliance purposes, in any
information provided, will be posted given model year—a domestic passenger car fleet,
without change to http:// an imported passenger car fleet, and a light truck
www.regulations.gov. Please see the fleet. Each fleet belonging to each manufacturer has
its own compliance obligation, with the potential
4 NHTSA incorporates the discussions in the ‘‘Privacy Act’’ heading below. for either over-compliance or under-compliance.
document seeking comment on the appropriate You may call the Docket Management There is no overarching CAFE requirement for a
CAFE civil penalties level by reference. Facility at 202–366–9324. manufacturer’s total production.
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Document Created: 2017-07-12 03:00:13
Document Modified: 2017-07-12 03:00:13
| 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; delay of effective date. | |
| Dates | As of July 7, 2017, the effective date of the final rule published in the Federal Register on December 28, 2016, at 81 FR 95489, is delayed indefinitely pending reconsideration. | |
| Contact | Rebecca Schade, Office of Chief Counsel, at (202) 366-2992. | |
| FR Citation | 82 FR 32139 | |
| RIN Number | 2127-AL82 |
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