82_FR_8147 82 FR 8133 - Adjustment of Civil Penalties for Inflation for FY 2017

82 FR 8133 - Adjustment of Civil Penalties for Inflation for FY 2017

NUCLEAR REGULATORY COMMISSION

Federal Register Volume 82, Issue 14 (January 24, 2017)

Page Range8133-8135
FR Document2017-01313

The U.S. Nuclear Regulatory Commission (NRC) is amending its regulations to adjust the maximum civil monetary penalties (CMPs) it can assess under statutes enforced by the agency. These changes are mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Improvements Act). The NRC is amending its regulations to adjust the maximum CMP for a violation of the Atomic Energy Act of 1954, as amended (AEA), or any regulation or order issued under the AEA from $280,469 to $285,057 per violation, per day. Additionally, the NRC is amending provisions concerning program fraud civil penalties by adjusting the maximum CMP under the Program Fraud Civil Remedies Act from $10,781 to $10,957 for each false claim or statement.

Federal Register, Volume 82 Issue 14 (Tuesday, January 24, 2017)
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Rules and Regulations]
[Pages 8133-8135]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01313]


=======================================================================
-----------------------------------------------------------------------

NUCLEAR REGULATORY COMMISSION

10 CFR Parts 2 and 13

[NRC-2016-0165]
RIN 3150-AJ82


Adjustment of Civil Penalties for Inflation for FY 2017

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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

SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending its 
regulations to adjust the maximum civil monetary penalties (CMPs) it 
can assess under statutes enforced by the agency. These changes are 
mandated by the Federal Civil Penalties Inflation Adjustment Act of 
1990 (FCPIAA), as amended by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (2015 Improvements Act). The 
NRC is amending its regulations to adjust the maximum CMP for a 
violation of the Atomic Energy Act of 1954, as amended (AEA), or any 
regulation or order issued under the AEA from $280,469 to $285,057 per 
violation, per day. Additionally, the NRC is amending provisions 
concerning program fraud civil penalties by adjusting the maximum CMP 
under the Program Fraud Civil Remedies Act from $10,781 to $10,957 for 
each false claim or statement.

DATES: This final rule is effective on January 24, 2017.

ADDRESSES: Please refer to Docket ID NRC-2016-0165 when contacting the 
NRC about the availability of information for this action. You may 
obtain publicly-available information related to this action by any of 
the following methods:
     Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2016-0165. Address 
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: Carol.Gallagher@nrc.gov. For technical questions, contact 
the individual listed in the FOR FURTHER INFORMATION CONTACT section of 
this document.
     NRC's Agencywide Documents Access and Management System 
(ADAMS): You may obtain publicly-available documents online in the 
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``ADAMS Public Documents'' and 
then select ``Begin Web-based ADAMS Search.'' For problems with ADAMS, 
please contact the NRC's Public Document Room (PDR) reference staff at 
1-800-397-4209, 301-415-4737, or by email to pdr.resource@nrc.gov. The 
ADAMS accession number for each document referenced (if it is available 
in ADAMS) is provided the first time that it is mentioned in the 
SUPPLEMENTARY INFORMATION section.
     NRC's PDR: You may examine and purchase copies of public 
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 
Rockville Pike, Rockville, Maryland 20852.

FOR FURTHER INFORMATION CONTACT: Eric Michel, Office of the General 
Counsel, telephone: 301-287-3704, email: Eric.Michel2@nrc.gov, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001.

SUPPLEMENTARY INFORMATION: 

Table of Contents

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


[[Page 8134]]



I. Background

    Congress passed the FCPIAA in 1990 to allow for regular adjustment 
for inflation of CMPs, maintain the deterrent effect of such penalties 
and promote compliance with the law, and improve the collection of CMPs 
by the Federal government (Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 
2461 note). The Debt Collection Improvement Act of 1996 amended the 
FCPIAA to require the head of each agency to review, and if necessary 
adjust by regulation, the CMPs assessed under statutes enforced by that 
agency at least once every 4 years, in accordance with a statutory 
formula linked to the percentage change in the Consumer Price Index 
(CPI) (Pub. L. 104-34, 110 Stat. 1321-373). Pursuant to this authority, 
the NRC increased the CMP amounts for violations of the AEA (codified 
at Sec.  2.205 of title 10 of the Code of Federal Regulations (10 CFR)) 
and Program Fraud Civil Remedies Act (codified at 10 CFR 13.3) on four 
occasions between 1996 and 2008.\1\
---------------------------------------------------------------------------

    \1\ Adjustment of Civil Penalties for Inflation, 73 FR 54671 
(September 23, 2008); Adjustment of Civil Penalties for Inflation, 
69 FR 62393 (October 26, 2004); Adjustment of Civil Penalties for 
Inflation; Miscellaneous Administrative Changes, 65 FR 59270 
(October 4, 2000); Adjustment of Civil Monetary Penalties for 
Inflation, 61 FR 53554 (October 11, 1996). An adjustment was not 
performed in 2012 because the FCPIAA at the time required agencies 
to round their CMP amounts to the nearest multiple of $1,000 or 
$10,000, depending on the size of the CMP amount, and the 2012 
adjustments based on the statutory formula were not large enough to 
warrant an adjustment.
---------------------------------------------------------------------------

    On November 2, 2015, Congress amended the FCPIAA through the 2015 
Improvements Act (Sec. 701, Pub. L. 114-74, 129 Stat. 599). The 2015 
Improvements Act required that the head of each agency perform a 
``catch-up'' adjustment by rulemaking, not later than July 1, 2016, 
adjusting the CMPs within the jurisdiction of that agency according to 
the percentage change in the CPI between the month of October 2015 and 
October of the calendar year when the CMP amount was last established 
by Congress. The NRC performed this rulemaking on July 1, 2016 (81 FR 
43019), increasing the amounts codified at 10 CFR 2.205 and 10 CFR 13.3 
to $280,469 and $10,781, respectively.
    The 2015 Improvements Act also requires that the head of each 
agency continue to adjust CMP amounts, rounded to the nearest dollar, 
each year thereafter. Specifically, each CMP is to be adjusted based on 
the percentage change between the CPI for the previous month of 
October, and the CPI for the month of October in the year preceding 
that. Therefore, the CMP adjustment required to be performed in 2017 is 
to be based on the percentage change between the CPI for the month of 
October 2016 and October 2015.

II. Discussion

    Section 234 of the AEA limits civil penalties for violations of the 
AEA to $100,000 per day, per violation (42 U.S.C. 2282). However, as 
discussed in the Background section of this document, the NRC has 
increased this amount several times since 1996 under the FCPIAA, as 
amended. Using the formula in the 2015 Improvements Act, the $280,469 
amount last established in July 2016 will increase by 1.636 percent, 
resulting in a new CMP amount of $285,057. This is based on the 
percentage change between the October 2016 CPI (241.729) and the 
October 2015 CPI (237.838).\2\ The NRC is amending 10 CFR 2.205 to 
reflect a new maximum CMP under the AEA in the amount of $285,057 per 
day, per violation. This represents an increase of $4,588.
---------------------------------------------------------------------------

    \2\ These figures are confirmed by guidance from the Office of 
Management and Budget (OMB) concerning implementation of the 2015 
Improvements Act. See OMB M-17-11, Implementation of the 2017 annual 
adjustment pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (December 16, 2016), 
available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
---------------------------------------------------------------------------

    Monetary penalties under the Program Fraud Civil Remedies Act were 
established in 1986 at $5,000 per claim (Pub. L. 99-509, 100 Stat. 
1938; 31 U.S.C. 3802). Since 1996 the NRC has adjusted this amount 
(currently set at $10,781) multiple times under the FCPIAA, as amended. 
Using the same previously discussed formula in the 2015 Improvements 
Act, the $10,781 amount will increase by 1.636 percent, resulting in a 
new CMP amount of $10,957. Therefore, the NRC is amending 10 CFR 13.3 
to reflect a new maximum CMP amount of $10,957 per claim. This 
represents an increase of $176.
    As permitted by the 2015 Improvements Act, the NRC may apply these 
increased CMP amounts to any penalties assessed by the agency after the 
effective date of this final rule (January 24, 2017), regardless of 
whether the associated violation occurred before or after this date 
(Pub. L. 114-74, 129 Stat. 600; 28 U.S.C. 2461 note). The NRC assesses 
civil penalty amounts, based on the class of licensee and severity of 
the violation, in accordance with the NRC Enforcement Policy (ADAMS 
Accession No. ML16197A561).

III. Rulemaking Procedure

    The 2015 Improvements Act expressly states that agencies shall make 
the adjustments required by the act ``notwithstanding section 553 of 
title 5, United States Code''. Therefore, because this final rule has 
been expressly exempted by Congress from the notice and comment 
requirements of the Administrative Procedure Act (5 U.S.C. 553), it is 
being issued without prior public notice or opportunity for public 
comment, with an immediate effective date.

IV. Section-by-Section Analysis

10 CFR 2.205

    Paragraph (j) in Sec.  2.205 is revised by replacing ``$280,469'' 
with ``$285,057.''

10 CFR 13.3

    Paragraphs (a)(1)(iv) and (b)(1)(ii) in Sec.  13.3 are revised by 
replacing ``$10,781'' with ``$10,957.''

V. Regulatory Analysis

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

VI. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to regulations for 
which a Federal agency is not required by law, including the rulemaking 
provisions of

[[Page 8135]]

the Administrative Procedure Act, 5 U.S.C 553(b), to publish a general 
notice of proposed rulemaking. 5 U.S.C. 604. As discussed in this 
notice under Section III, ``Rulemaking Procedure,'' the NRC has 
determined that this final rule is exempt from the requirements of 5 
U.S.C. 553(b) and that notice and comment need not be provided. 
Accordingly, the NRC also determines that the requirements of the 
Regulatory Flexibility Act do not apply to this final rule.

VII. Backfitting and Issue Finality

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

VIII. Plain Writing

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

IX. National Environmental Policy Act

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

X. Paperwork Reduction Statement

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

XI. Congressional Review Act

    This final rule is a rule as defined in the Congressional Review 
Act (5 U.S.C. 801-808). However, the Office of Management and Budget 
has not found it to be a major rule as defined in the Congressional 
Review Act.

List of Subjects

10 CFR Part 2

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

10 CFR Part 13

    Administrative practice and procedure, Claims, Fraud, Organization 
and function (government agencies), Penalties.
    For the reasons set out in the preamble and under the authority of 
the Atomic Energy Act of 1954, as amended; the Energy Reorganization 
Act of 1974, as amended; 28 U.S.C. 2461 note; and 5 U.S.C. 552 and 553, 
the NRC is adopting the following amendments to 10 CFR parts 2 and 13.

PART 2--AGENCY RULES OF PRACTICE AND PROCEDURE

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

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

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


Sec.  2.205  Civil penalties.

* * * * *
    (j) Amount. A civil monetary penalty imposed under Section 234 of 
the Atomic Energy Act of 1954, as amended, or any other statute within 
the jurisdiction of the Commission that provides for the imposition of 
a civil penalty in an amount equal to the amount set forth in Section 
234, may not exceed $285,057 for each violation. If any violation is a 
continuing one, each day of such violation shall constitute a separate 
violation for the purposes of computing the applicable civil penalty.

PART 13--PROGRAM FRAUD CIVIL REMEDIES

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

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

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


Sec.  13.3   Basis for civil penalties and assessments.

    (a) * * *
    (1) * * *
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed, shall be subject, in addition 
to any other remedy that may be prescribed by law, to a civil penalty 
of not more than $10,957 for each such claim.
* * * * *
    (b) * * *
    (1) * * *
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement, shall be subject, in addition to any other remedy that may 
be prescribed by law, to a civil penalty of not more than $10,957 for 
each such statement.
* * * * *

    Dated in Rockville, Maryland, this 9th day of January, 2017.

    For the Nuclear Regulatory Commission.
Victor M. McCree,
Executive Director for Operations.
[FR Doc. 2017-01313 Filed 1-23-17; 8:45 am]
 BILLING CODE 7590-01-P



                                                                Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations                                                8133

                                              may assess against the individual a civil               § 2636.104    Civil, disciplinary and other            to $10,957 for each false claim or
                                              monetary penalty in any amount, not to                  action.                                                statement.
                                              exceed the amounts set forth below, as                    (a) Civil action. Except when the
                                              provided by section 102(f)(6)(C)(ii) of                 employee engages in conduct in good                    DATES: This final rule is effective on
                                              the Act and as adjusted in accordance                   faith reliance upon an advisory opinion                January 24, 2017.
                                              with the inflation adjustment                           issued under § 2636.103, an employee                   ADDRESSES:            Please refer to Docket ID
                                              procedures of the Federal Civil Penalties               who engages in any conduct in violation                       NRC–2016–0165 when contacting the
                                              Inflation Adjustment Act of 1990, as                    of the prohibitions, limitations and                          NRC about the availability of
                                              amended:                                                restrictions contained in this part may                       information for this action. You may
                                                                                                      be subject to civil action under 5 U.S.C.                     obtain publicly-available information
                                                       Date of violation                              app. 504(a) and a civil monetary penalty
                                                                                                 Penalty                                                            related to this action by any of the
                                                                                                      of not more than the amounts set forth                        following methods:
                                              Violation occurring between Sept.                       below, as adjusted in accordance with
                                                 29, 1999 and Nov. 2, 2015 .......                $5,500
                                                                                                      the inflation adjustment procedures                               • Federal Rulemaking Web site: Go to
                                              Violation occurring after Nov. 2,                                                                                     http://www.regulations.gov and search
                                                 2015 ..........................................      prescribed in the Federal Civil Penalties
                                                                                                   9,623
                                                                                                      Inflation Adjustment Act of 1990, as                          for Docket ID NRC–2016–0165. Address
                                                                                                      amended, or the amount of the                                 questions about NRC dockets to Carol
                                              ■ 4. Section 2634.703 is revised to read                                                                              Gallagher; telephone: 301–415–3463;
                                              as follows:                                             compensation the individual received
                                                                                                      for the prohibited conduct, whichever is                      email: Carol.Gallagher@nrc.gov. For
                                              § 2634.703 Misuse of public reports.                    greater.                                                      technical questions, contact the
                                                                                                                                                                    individual listed in the FOR FURTHER
                                                 (a) The Attorney General may bring a
                                                                                                                  Date     of  violation                    Penalty INFORMATION CONTACT section of this
                                              civil action against any person who
                                                                                                                                                                    document.
                                              obtains or uses a report filed under this
                                              part for any purpose prohibited by
                                                                                                         Violation occurring between Sept.                              • NRC’s Agencywide Documents
                                                                                                            29, 1999 and Nov. 2, 2015 .......               $11,000
                                              section 105(c)(1) of the Act, as                                                                                      Access and Management System
                                                                                                         Violation occurring after Nov. 2,
                                              incorporated in § 2634.603(f). The court                      2015 ..........................................  19,246 (ADAMS): You may obtain publicly-
                                              in which the action is brought may                                                                                    available documents online in the
                                              assess against the person a civil                          *      *       *         *         *                       ADAMS Public Documents collection at
                                              monetary penalty in any amount, not to [FR Doc. 2017–00627 Filed 1–23–17; 8:45 am]                                    http://www.nrc.gov/reading-rm/
                                              exceed the amounts set forth below, as                     BILLING CODE 6345–03–P
                                                                                                                                                                    adams.html. To begin the search, select
                                              provided by section 105(c)(2) of the Act                                                                              ‘‘ADAMS Public Documents’’ and then
                                              and as adjusted in accordance with the                                                                                select ‘‘Begin Web-based ADAMS
                                              inflation adjustment procedures                            NUCLEAR REGULATORY                                         Search.’’ For problems with ADAMS,
                                              prescribed in the Federal Civil Penalties COMMISSION                                                                  please contact the NRC’s Public
                                              Inflation Adjustment Act of 1990, as                                                                                  Document Room (PDR) reference staff at
                                              amended:                                                   10 CFR Parts 2 and 13                                      1–800–397–4209, 301–415–4737, or by
                                                                                                                                                                    email to pdr.resource@nrc.gov. The
                                                       Date of violation                         Penalty [NRC–2016–0165]                                            ADAMS accession number for each
                                                                                                         RIN 3150–AJ82                                              document referenced (if it is available in
                                              Violation occurring between Sept.                                                                                     ADAMS) is provided the first time that
                                                 29, 1999 and Nov. 2, 2015 .......               $11,000 Adjustment of Civil Penalties for                          it is mentioned in the SUPPLEMENTARY
                                              Violation occurring after Nov. 2,                          Inflation for FY 2017                                      INFORMATION section.
                                                 2015 ..........................................  19,246
                                                                                                         AGENCY: Nuclear Regulatory                                     • NRC’s PDR: You may examine and
                                                 (b) This remedy shall be in addition                    Commission.                                                purchase copies of public documents at
                                              to any other remedy available under                        ACTION: Final rule.                                        the NRC’s PDR, Room O1–F21, One
                                              statutory or common law.                                                                                              White Flint North, 11555 Rockville
                                                                                                         SUMMARY: The U.S. Nuclear Regulatory                       Pike, Rockville, Maryland 20852.
                                              PART 2636—LIMITATIONS ON                                   Commission (NRC) is amending its
                                              OUTSIDE EARNED INCOME,                                     regulations to adjust the maximum civil FOR FURTHER INFORMATION CONTACT: Eric
                                              EMPLOYMENT AND AFFILIATIONS                                monetary penalties (CMPs) it can assess Michel, Office of the General Counsel,
                                              FOR CERTAIN NONCAREER                                      under statutes enforced by the agency.                     telephone: 301–287–3704, email:
                                              EMPLOYEES                                                  These changes are mandated by the                          Eric.Michel2@nrc.gov, U.S. Nuclear
                                                                                                         Federal Civil Penalties Inflation                          Regulatory Commission, Washington,
                                              ■ 5. The authority citation for part 2636                                                                             DC 20555–0001.
                                                                                                         Adjustment Act of 1990 (FCPIAA), as
                                              continues to read as follows:                              amended by the Federal Civil Penalties                     SUPPLEMENTARY INFORMATION:
                                                 Authority: 5 U.S.C. App. (Ethics in                     Inflation Adjustment Act Improvements
                                              Government Act of 1978); Pub. L. 101–410,                  Act of 2015 (2015 Improvements Act).                       Table of Contents
                                              104 Stat. 890, 28 U.S.C. 2461 note (Federal                The NRC is amending its regulations to
                                              Civil Penalties Inflation Adjustment Act of                                                                           I. Background
                                              1990), as amended by Sec. 31001, Pub. L.
                                                                                                         adjust the maximum CMP for a violation
                                                                                                                                                                    II. Discussion
                                              104–134, 110 Stat. 1321 (Debt Collection                   of the Atomic Energy Act of 1954, as                       III. Rulemaking Procedure
                                              Improvement Act of 1996) and Sec. 701, Pub. amended (AEA), or any regulation or                                       IV. Section-by-Section Analysis
sradovich on DSK3GMQ082PROD with RULES




                                              L. 114–74 (Federal Civil Penalties Inflation               order issued under the AEA from                            V. Regulatory Analysis
                                              Adjustment Act Improvements Act of 2015);                  $280,469 to $285,057 per violation, per                    VI. Regulatory Flexibility Act
                                              E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., day. Additionally, the NRC is amending VII. Backfitting and Issue Finality
                                              p. 215, as modified by E.O. 12731, 55 FR                   provisions concerning program fraud                        VIII. Plain Writing
                                              42547, 3 CFR, 1990 Comp., p. 306.                          civil penalties by adjusting the                           IX. National Environmental Policy Act
                                              ■ 6. Section 2636.104 is amended by                        maximum CMP under the Program                              X. Paperwork Reduction Act
                                              revising paragraph (a) to read as follows: Fraud Civil Remedies Act from $10,781                                      XI. Congressional Review Act



                                         VerDate Sep<11>2014   17:47 Jan 23, 2017   Jkt 241001   PO 00000   Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\24JAR1.SGM   24JAR1


                                              8134              Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations

                                              I. Background                                           required to be performed in 2017 is to                 III. Rulemaking Procedure
                                                 Congress passed the FCPIAA in 1990                   be based on the percentage change                         The 2015 Improvements Act expressly
                                              to allow for regular adjustment for                     between the CPI for the month of                       states that agencies shall make the
                                              inflation of CMPs, maintain the                         October 2016 and October 2015.                         adjustments required by the act
                                              deterrent effect of such penalties and                  II. Discussion                                         ‘‘notwithstanding section 553 of title 5,
                                              promote compliance with the law, and                                                                           United States Code’’. Therefore, because
                                              improve the collection of CMPs by the                      Section 234 of the AEA limits civil
                                                                                                                                                             this final rule has been expressly
                                              Federal government (Pub. L. 101–410,                    penalties for violations of the AEA to
                                                                                                                                                             exempted by Congress from the notice
                                              104 Stat. 890; 28 U.S.C. 2461 note). The                $100,000 per day, per violation (42
                                                                                                                                                             and comment requirements of the
                                              Debt Collection Improvement Act of                      U.S.C. 2282). However, as discussed in
                                                                                                                                                             Administrative Procedure Act (5 U.S.C.
                                              1996 amended the FCPIAA to require                      the Background section of this
                                                                                                                                                             553), it is being issued without prior
                                              the head of each agency to review, and                  document, the NRC has increased this
                                                                                                                                                             public notice or opportunity for public
                                              if necessary adjust by regulation, the                  amount several times since 1996 under
                                                                                                                                                             comment, with an immediate effective
                                              CMPs assessed under statutes enforced                   the FCPIAA, as amended. Using the
                                                                                                                                                             date.
                                              by that agency at least once every 4                    formula in the 2015 Improvements Act,
                                              years, in accordance with a statutory                   the $280,469 amount last established in                IV. Section-by-Section Analysis
                                              formula linked to the percentage change                 July 2016 will increase by 1.636 percent,              10 CFR 2.205
                                              in the Consumer Price Index (CPI) (Pub.                 resulting in a new CMP amount of
                                                                                                      $285,057. This is based on the                           Paragraph (j) in § 2.205 is revised by
                                              L. 104–34, 110 Stat. 1321–373).
                                                                                                      percentage change between the October                  replacing ‘‘$280,469’’ with ‘‘$285,057.’’
                                              Pursuant to this authority, the NRC
                                              increased the CMP amounts for                           2016 CPI (241.729) and the October                     10 CFR 13.3
                                              violations of the AEA (codified at                      2015 CPI (237.838).2 The NRC is
                                                                                                      amending 10 CFR 2.205 to reflect a new                    Paragraphs (a)(1)(iv) and (b)(1)(ii) in
                                              § 2.205 of title 10 of the Code of Federal                                                                     § 13.3 are revised by replacing
                                              Regulations (10 CFR)) and Program                       maximum CMP under the AEA in the
                                                                                                      amount of $285,057 per day, per                        ‘‘$10,781’’ with ‘‘$10,957.’’
                                              Fraud Civil Remedies Act (codified at
                                              10 CFR 13.3) on four occasions between                  violation. This represents an increase of              V. Regulatory Analysis
                                              1996 and 2008.1                                         $4,588.                                                   This final rule adjusts for inflation the
                                                 On November 2, 2015, Congress                           Monetary penalties under the Program                maximum CMPs the NRC may assess
                                              amended the FCPIAA through the 2015                     Fraud Civil Remedies Act were                          under the AEA and under the Program
                                              Improvements Act (Sec. 701, Pub. L.                     established in 1986 at $5,000 per claim                Fraud Civil Remedies Act of 1986. The
                                              114–74, 129 Stat. 599). The 2015                        (Pub. L. 99–509, 100 Stat. 1938; 31                    formula for determining the amount of
                                              Improvements Act required that the                      U.S.C. 3802). Since 1996 the NRC has                   the adjustment is mandated by Congress
                                              head of each agency perform a ‘‘catch-                  adjusted this amount (currently set at                 in the FCPIAA, as amended by the 2015
                                              up’’ adjustment by rulemaking, not later                $10,781) multiple times under the                      Improvements Act (codified at 28 U.S.C.
                                              than July 1, 2016, adjusting the CMPs                   FCPIAA, as amended. Using the same                     2461 note). Congress passed this
                                              within the jurisdiction of that agency                  previously discussed formula in the                    legislation on the basis of its findings
                                              according to the percentage change in                   2015 Improvements Act, the $10,781                     that the power to impose monetary civil
                                              the CPI between the month of October                    amount will increase by 1.636 percent,                 penalties is important to deterring
                                              2015 and October of the calendar year                   resulting in a new CMP amount of                       violations of Federal law and furthering
                                              when the CMP amount was last                            $10,957. Therefore, the NRC is                         the policy goals of Federal laws and
                                              established by Congress. The NRC                        amending 10 CFR 13.3 to reflect a new                  regulations. Congress has also found
                                              performed this rulemaking on July 1,                    maximum CMP amount of $10,957 per                      that inflation has diminished the impact
                                              2016 (81 FR 43019), increasing the                      claim. This represents an increase of                  of these penalties and their effect. The
                                              amounts codified at 10 CFR 2.205 and                    $176.                                                  principal purposes of this legislation are
                                              10 CFR 13.3 to $280,469 and $10,781,                       As permitted by the 2015                            to provide for adjustment of civil
                                              respectively.                                           Improvements Act, the NRC may apply                    monetary penalties for inflation,
                                                 The 2015 Improvements Act also                       these increased CMP amounts to any                     maintain the deterrent effect of civil
                                              requires that the head of each agency                   penalties assessed by the agency after                 monetary penalties, and promote
                                              continue to adjust CMP amounts,                         the effective date of this final rule                  compliance with the law. Therefore,
                                              rounded to the nearest dollar, each year                (January 24, 2017), regardless of                      these are the anticipated impacts of this
                                              thereafter. Specifically, each CMP is to                whether the associated violation                       final rule. Direct monetary impacts fall
                                              be adjusted based on the percentage                     occurred before or after this date (Pub.               only upon licensees or other persons
                                              change between the CPI for the previous                 L. 114–74, 129 Stat. 600; 28 U.S.C. 2461               subjected to NRC enforcement for
                                              month of October, and the CPI for the                   note). The NRC assesses civil penalty                  violations of the AEA and regulations
                                              month of October in the year preceding                  amounts, based on the class of licensee                and orders issued under the AEA (10
                                              that. Therefore, the CMP adjustment                     and severity of the violation, in                      CFR 2.205), or those licensees or
                                                                                                      accordance with the NRC Enforcement                    persons subjected to liability pursuant
                                                1 Adjustment of Civil Penalties for Inflation, 73
                                                                                                      Policy (ADAMS Accession No.                            to the provisions of the Program Fraud
                                              FR 54671 (September 23, 2008); Adjustment of Civil      ML16197A561).
                                              Penalties for Inflation, 69 FR 62393 (October 26,                                                              Civil Remedies Act of 1986 (31 U.S.C.
                                              2004); Adjustment of Civil Penalties for Inflation;                                                            3801–3812) and the NRC’s
                                              Miscellaneous Administrative Changes, 65 FR               2 These figures are confirmed by guidance from
                                                                                                                                                             implementing regulations (10 CFR part
sradovich on DSK3GMQ082PROD with RULES




                                              59270 (October 4, 2000); Adjustment of Civil            the Office of Management and Budget (OMB)
                                              Monetary Penalties for Inflation, 61 FR 53554           concerning implementation of the 2015                  13).
                                              (October 11, 1996). An adjustment was not               Improvements Act. See OMB M–17–11,
                                              performed in 2012 because the FCPIAA at the time        Implementation of the 2017 annual adjustment
                                                                                                                                                             VI. Regulatory Flexibility Act
                                              required agencies to round their CMP amounts to         pursuant to the Federal Civil Penalties Inflation        The Regulatory Flexibility Act does
                                              the nearest multiple of $1,000 or $10,000,              Adjustment Act Improvements Act of 2015
                                              depending on the size of the CMP amount, and the        (December 16, 2016), available at https://
                                                                                                                                                             not apply to regulations for which a
                                              2012 adjustments based on the statutory formula         www.whitehouse.gov/sites/default/files/omb/            Federal agency is not required by law,
                                              were not large enough to warrant an adjustment.         memoranda/2017/m-17-11_0.pdf.                          including the rulemaking provisions of


                                         VerDate Sep<11>2014   17:47 Jan 23, 2017   Jkt 241001   PO 00000   Frm 00004   Fmt 4700   Sfmt 4700   E:\FR\FM\24JAR1.SGM   24JAR1


                                                                Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations                                                8135

                                              the Administrative Procedure Act, 5                     List of Subjects                                       PART 13—PROGRAM FRAUD CIVIL
                                              U.S.C 553(b), to publish a general notice                                                                      REMEDIES
                                                                                                      10 CFR Part 2
                                              of proposed rulemaking. 5 U.S.C. 604.
                                              As discussed in this notice under                         Administrative practice and                          ■ 3. The authority citation for part 13
                                              Section III, ‘‘Rulemaking Procedure,’’                  procedure, Antitrust, Byproduct                        continues to read as follows:
                                              the NRC has determined that this final                  material, Classified information,                         Authority: 31 U.S.C. 3801 through 3812;
                                              rule is exempt from the requirements of                 Confidential business information,                     44 U.S.C. 3504 note. Section 13.3 also issued
                                              5 U.S.C. 553(b) and that notice and                     Freedom of information, Environmental                  under 28 U.S.C. 2461 note. Section 13.13 also
                                              comment need not be provided.                           protection, Hazardous waste, Nuclear                   issued under 31 U.S.C. 3730.
                                              Accordingly, the NRC also determines                    energy, Nuclear materials, Nuclear                     ■ 4. Amend § 13.3 by revising
                                              that the requirements of the Regulatory                 power plants and reactors, Penalties,                  paragraphs (a)(1)(iv) and (b)(1)(ii) to
                                              Flexibility Act do not apply to this final              Reporting and recordkeeping                            read as follows:
                                              rule.                                                   requirements, Sex discrimination,
                                                                                                      Source material, Special nuclear                       § 13.3 Basis for civil penalties and
                                              VII. Backfitting and Issue Finality                     material, Waste treatment and disposal.                assessments.
                                                                                                                                                               (a) * * *
                                                The NRC has not prepared a backfit                    10 CFR Part 13                                           (1) * * *
                                              analysis for this final rule. This final                  Administrative practice and                            (iv) Is for payment for the provision
                                              rule does not involve any provision that                procedure, Claims, Fraud, Organization                 of property or services which the person
                                              would impose a backfit, nor is it                       and function (government agencies),                    has not provided as claimed, shall be
                                              inconsistent with any issue finality                    Penalties.                                             subject, in addition to any other remedy
                                              provision, as those terms are defined in                  For the reasons set out in the                       that may be prescribed by law, to a civil
                                              10 CFR chapter I. As mandated by                        preamble and under the authority of the                penalty of not more than $10,957 for
                                              Congress, this final rule adjusts CMP                   Atomic Energy Act of 1954, as amended;                 each such claim.
                                              amounts for violations of already-                      the Energy Reorganization Act of 1974,                 *      *     *    *     *
                                              existing NRC regulations and                            as amended; 28 U.S.C. 2461 note; and 5                   (b) * * *
                                              requirements. This final rule does not                  U.S.C. 552 and 553, the NRC is adopting                  (1) * * *
                                              modify any licensee system, structures,                 the following amendments to 10 CFR                       (ii) Contains or is accompanied by an
                                              components, designs, approvals, or                      parts 2 and 13.                                        express certification or affirmation of
                                              procedures required for the construction                                                                       the truthfulness and accuracy of the
                                              or operation of any facility.                           PART 2—AGENCY RULES OF                                 contents of the statement, shall be
                                                                                                      PRACTICE AND PROCEDURE                                 subject, in addition to any other remedy
                                              VIII. Plain Writing                                                                                            that may be prescribed by law, to a civil
                                                                                                      ■ 1. The authority citation for part 2                 penalty of not more than $10,957 for
                                                The Plain Writing Act of 2010 (Pub.                   continues to read as follows:
                                              L. 111–274) requires Federal agencies to                                                                       each such statement.
                                              write documents in a clear, concise, and                  Authority: Atomic Energy Act of 1954,                *      *     *    *     *
                                                                                                      secs. 29, 53, 62, 63, 81, 102, 103, 104, 105,
                                              well-organized manner. The NRC has                      161, 181, 182, 183, 184, 186, 189, 191, 234              Dated in Rockville, Maryland, this 9th day
                                              written this document to be consistent                  (42 U.S.C. 2039, 2073, 2092, 2093, 2111,               of January, 2017.
                                              with the Plain Writing Act as well as the               2132, 2133, 2134, 2135, 2201, 2231, 2232,                For the Nuclear Regulatory Commission.
                                              Presidential Memorandum, ‘‘Plain                        2233, 2234, 2236, 2239, 2241, 2282); Energy            Victor M. McCree,
                                              Language in Government Writing,’’                       Reorganization Act of 1974, secs. 201, 206             Executive Director for Operations.
                                              published June 10, 1998 (63 FR 31883).                  (42 U.S.C. 5841, 5846); Nuclear Waste Policy
                                                                                                      Act of 1982, secs. 114(f), 134, 135, 141 (42           [FR Doc. 2017–01313 Filed 1–23–17; 8:45 am]
                                              IX. National Environmental Policy Act                   U.S.C. 10134(f), 10154, 10155, 10161);                 BILLING CODE 7590–01–P
                                                                                                      Administrative Procedure Act (5 U.S.C. 552,
                                                 The NRC has determined that this                     553, 554, 557, 558); National Environmental
                                              final rule is the type of action described              Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C.         FEDERAL TRADE COMMISSION
                                              as a categorical exclusion in 10 CFR                    3504 note.
                                              51.22(c)(1). Therefore, neither an                        Section 2.205(j) also issued under 28                16 CFR Part 1
                                              environmental impact statement nor an                   U.S.C. 2461 note.
                                              environmental assessment has been                       ■ 2. Amend § 2.205 by revising                         Adjustments to Civil Penalty Amounts
                                              prepared for this final rule.                           paragraph (j) to read as follows:
                                                                                                                                                             AGENCY:    Federal Trade Commission.
                                              X. Paperwork Reduction Statement                        § 2.205    Civil penalties.                            ACTION:   Final rule.
                                                                                                      *      *    *     *     *
                                                 This final rule does not contain a                      (j) Amount. A civil monetary penalty                SUMMARY:  The Federal Trade
                                              collection of information as defined in                 imposed under Section 234 of the                       Commission (‘‘FTC’’ or ‘‘Commission’’)
                                              the Paperwork Reduction Act of 1995                     Atomic Energy Act of 1954, as amended,                 is confirming certain amendments made
                                              (44 U.S.C. 3501 et seq.) and, therefore,                or any other statute within the                        on an interim final basis to the civil
                                              is not subject to the requirements of the               jurisdiction of the Commission that                    penalty amounts within its jurisdiction
                                              Paperwork Reduction Act of 1995.                        provides for the imposition of a civil                 in June 2016 and implementing further
                                                                                                      penalty in an amount equal to the                      adjustments to the civil penalty
                                              XI. Congressional Review Act
sradovich on DSK3GMQ082PROD with RULES




                                                                                                      amount set forth in Section 234, may                   amounts within its jurisdiction to
                                                 This final rule is a rule as defined in              not exceed $285,057 for each violation.                account for inflation, as required by law.
                                              the Congressional Review Act (5 U.S.C.                  If any violation is a continuing one,                  DATES: Effective: January 24, 2017.
                                              801–808). However, the Office of                        each day of such violation shall                       FOR FURTHER INFORMATION CONTACT:
                                              Management and Budget has not found                     constitute a separate violation for the                Kenny A. Wright, Attorney, Office of the
                                              it to be a major rule as defined in the                 purposes of computing the applicable                   General Counsel, FTC, 600
                                              Congressional Review Act.                               civil penalty.                                         Pennsylvania Avenue NW., Washington,


                                         VerDate Sep<11>2014   17:47 Jan 23, 2017   Jkt 241001   PO 00000   Frm 00005   Fmt 4700   Sfmt 4700   E:\FR\FM\24JAR1.SGM   24JAR1



Document Created: 2018-02-01 15:12:15
Document Modified: 2018-02-01 15:12:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective on January 24, 2017.
ContactEric Michel, Office of the General Counsel, telephone: 301-287-3704, email: [email protected], U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.
FR Citation82 FR 8133 
RIN Number3150-AJ82
CFR Citation10 CFR 13
10 CFR 2
CFR AssociatedClaims; Fraud; Organization and Function (government Agencies); Administrative Practice and Procedure; Antitrust; Byproduct Material; Classified Information; Confidential Business Information; Freedom of Information; Environmental Protection; Hazardous Waste; Nuclear Energy; Nuclear Materials; Nuclear Power Plants and Reactors; Penalties; Reporting and Recordkeeping Requirements; Sex Discrimination; Source Material; Special Nuclear Material and Waste Treatment and Disposal

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR