83_FR_19265 83 FR 19180 - Civil Monetary Penalty Inflation Adjustment Rule

83 FR 19180 - Civil Monetary Penalty Inflation Adjustment Rule

DEPARTMENT OF DEFENSE
Department of the Army, Corps of Engineers

Federal Register Volume 83, Issue 85 (May 2, 2018)

Page Range19180-19184
FR Document2018-09316

The U.S. Army Corps of Engineers (Corps) is issuing this final rule to adjust its civil monetary penalties under the Clean Water Act (CWA) and the National Fishing Enhancement Act to account for inflation. This action is mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act), which requires agencies to adjust the levels of civil monetary penalties with an initial ``catch-up'' adjustment followed by annual adjustments for inflation. The Inflation Adjustment Act prescribes a formula for adjusting statutory civil penalties to reflect inflation, maintain the deterrent effect of statutory civil penalties, and promote compliance with the law. Using the adjustment criteria provided in the December 15, 2017, Office of Management and Budget Memorandum regarding the ``Implementation of Penalty Inflation Adjustments for 2018, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015'', the 2018 annual adjustment for inflation will increase the Class I civil penalty under Section 309 of the Clean Water Act to $21,394 per violation, and the maximum civil penalty increases to $53,484. The judicial civil penalty under Section 404(s) of the Clean Water Act increases to $53,484 per day for each violation. Under the National Fishing Enhancement Act, the Class I civil penalty increases to $23,426 per violation.

Federal Register, Volume 83 Issue 85 (Wednesday, May 2, 2018)
[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Rules and Regulations]
[Pages 19180-19184]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-09316]


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DEPARTMENT OF DEFENSE

Department of the Army, Corps of Engineers

33 CFR Part 326

RIN 0710-AA77


Civil Monetary Penalty Inflation Adjustment Rule

AGENCY: U.S. Army Corps of Engineers, Department of Defense.

ACTION: Final rule.

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

SUMMARY: The U.S. Army Corps of Engineers (Corps) is issuing this final 
rule to adjust its civil monetary penalties under the Clean Water Act 
(CWA) and the National Fishing Enhancement Act to account for 
inflation. This action is mandated by the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation 
Adjustment Act), which requires agencies to adjust the levels of civil 
monetary penalties with an initial ``catch-up'' adjustment followed by 
annual adjustments for inflation. The Inflation Adjustment Act 
prescribes a formula for adjusting statutory civil penalties to reflect 
inflation, maintain the deterrent effect of statutory civil penalties, 
and promote compliance with the law. Using the adjustment criteria 
provided in the December 15, 2017, Office of Management and Budget 
Memorandum regarding the ``Implementation of Penalty Inflation 
Adjustments for 2018, Pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015'', the 2018 annual adjustment 
for inflation will increase the Class I civil penalty under Section 309 
of the Clean Water Act to $21,394 per violation, and the maximum civil 
penalty increases to $53,484. The judicial civil penalty under Section 
404(s) of the Clean Water Act increases to $53,484 per day for each 
violation. Under the National Fishing Enhancement Act, the Class I 
civil penalty increases to $23,426 per violation.

DATES: This final rule is effective on May 2, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Stacey M. Jensen at 202-761-5856 
or by email at [email protected] or access the U.S. Army 
Corps of Engineers Regulatory Home Page at http://www.usace.army.mil/Missions/CivilWorks/RegulatoryProgramandPermits.aspx.

SUPPLEMENTARY INFORMATION:

Executive Summary

    The Corps is publishing this final rule to adjust its civil 
monetary penalties for inflation pursuant to the Inflation Adjustment 
Act. This law requires the Corps to publish annual adjustments for 
inflation. The purpose of the Inflation Adjustment Act is to maintain 
the deterrent effect of civil penalties by translating originally 
enacted statutory civil penalty amounts to today's dollars and rounding 
statutory civil penalties to the nearest dollar. The Inflation 
Adjustment Act required agencies to publish annual adjustments 
beginning no later than January 15 of each calendar year. Accordingly, 
the Corps is providing the second annual adjustment effective May 2, 
2018, in this final rule. The rule will apply prospectively, to penalty 
assessments beginning on its effective date. Subsequently, the Corps 
intends to continue to publish annual adjustments as required by the 
Inflation Adjustment Act, no later than January 15 of each calendar 
year.
    The Inflation Adjustment Act does not require agencies to implement 
the required adjustments through a notice and comment process unless 
proposing an adjustment of less than the amount otherwise required, and 
the Corps is not exercising any discretion it may have to make a lesser 
adjustment. For the annual adjustments, the Inflation Adjustment Act 
provides a clear formula for adjustment of the civil penalties, and the 
Corps has no discretion to vary the amount of the adjustment to reflect 
any views or suggestions provided by commenters. The Inflation 
Adjustment Act further provides that the increased penalty levels apply 
to penalties assessed after the effective date of the increase. For 
these reasons, the Corps finds that notice and comment would be 
impracticable and unnecessary in this situation and contrary to the 
language of the Inflation Adjustment Act.
    Section 4 of the Inflation Adjustment Act directs federal agencies 
to publish annual penalty inflation adjustments. In accordance with 
Section 553 of the Administrative Procedures Act (APA), most rules are 
subject to notice and comment and are effective no earlier than 30 days 
after publication in the Federal Register. Section 4(b)(2) of the 
Inflation Adjustment Act further provides that each agency shall make 
the annual inflation adjustments ``notwithstanding section 553'' of the 
APA. According to the December 2017 OMB guidance issued to Federal 
agencies on the implementation of the 2018 annual adjustment, the 
phrase ``notwithstanding section 553'' means that ``the public 
procedure the APA generally requires--notice, an opportunity for 
comment, and a delay in effective date--is not required for agencies to 
issue regulations implementing the annual adjustment.'' Consistent with 
the language of the Inflation Adjustment Act and OMB's implementation 
guidance, this rule is not subject to notice and opportunity for public 
comment.

Background

    On August 3, 2011, the Deputy Secretary of Defense delegated to the 
Secretary of the Army the authority and responsibility to adjust 
penalties administered by the U.S. Army Corps of Engineers. On August 
29, 2011, the Secretary of the Army delegated that authority and 
responsibility to the Assistant Secretary of the Army for Civil Works.

[[Page 19181]]

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, 
Public Law 114-74, 701 (Inflation Adjustment Act), which further 
amended the Federal Civil Penalties Inflation Adjustment Act of 1990 as 
previously amended by the 1996 Debt Collection Improvement Act (DCIA; 
collectively, ``prior inflation adjustment Acts''), to improve the 
effectiveness of civil monetary penalties and to maintain their 
deterrent effect. The Inflation Adjustment Act requires agencies to do 
the following: (1) Adjust the level of civil monetary penalties with an 
initial ``catch-up'' adjustment, through a final rule to be published 
by July 1, 2016; and (2) beginning no later than January 15, 2017, make 
subsequent annual adjustments for inflation. The Inflation Adjustment 
Act does not alter an agency's statutory authority, to the extent it 
exists, to assess penalties below the maximum level. The final rule 
implementing the initial ``catch-up'' adjustment mandated by the 
Inflation Adjustment Act as well as the 2017 annual inflation 
adjustment mandated by the Act was effective on December 12, 2017. This 
final rule fulfills the requirement for the 2018 annual inflation 
adjustment and is effective on May 2, 2018.
    The Inflation Adjustment Act amends prior inflation adjustment Acts 
by substantially revising the method of calculating inflation 
adjustments. Prior inflation adjustment Acts required adjustments to 
civil penalties to be rounded significantly. For example, a penalty 
increase that was greater than $1,000, but less than or equal to 
$10,000, would be rounded to the nearest multiple of $1,000. While this 
allowed penalties to be kept at round numbers, it meant that agencies 
often would not increase penalties at all if the inflation factor was 
not large enough. Furthermore, increases to penalties were capped at 10 
percent, which meant that longer periods without an inflation 
adjustment could cause a penalty to rapidly lose value in real terms. 
Over time, this formula caused agency civil penalties to lose value 
relative to total inflation, thereby undermining Congress' original 
purpose in enacting statutory civil monetary penalties to be a 
deterrent and to promote compliance with the law. The Inflation 
Adjustment Act has removed these rounding rules. Penalties now are 
simply rounded to the nearest dollar. This rounding ensures that 
penalties will be increased each year to more effectively keep up with 
inflation.
    The Inflation Adjustment Act required a ``catch-up'' adjustment 
that reset the inflation calculations by excluding prior inflationary 
adjustments under prior inflation adjustment Acts, and subsequent, 
annual adjustments to all civil penalties under the laws implemented by 
that agency. With this rule, the new statutory maximum penalty levels 
listed in Table 1 will apply to all statutory civil penalties assessed 
on or after the effective date of this rule.
    Table 1 shows the calculation of the 2018 annual inflation 
adjustment based on the guidance provided by OMB (see December 15, 
2017, Memorandum for the Heads of Executive Departments and Agencies, 
from Mick Mulvaney, Director, OMB, Subject: Implementation of Penalty 
Inflation Adjustments for 2018, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015). The OMB provided to 
agencies the cost-of-living adjustment multiplier for 2018, based on 
the CPI-U for the month of October 2017, not seasonally adjusted, which 
is 1.02041. Agencies are to adjust ``the maximum civil monetary penalty 
or the range of minimum and maximum civil monetary penalties, as 
applicable, for each civil monetary penalty by the cost-of-living 
adjustment.'' For 2018, agencies multiply each applicable penalty by 
the multiplier, 1.02041, and round to the nearest dollar. The 
multiplier should be applied to the most recent penalty amount, i.e., 
the one that includes the initial catch-up adjustment mandated by the 
Inflation Adjustment Act as well as the 2017 annual inflation 
adjustment. Column (1) contains the United States Code citations for 
the penalty statute. Column (2) contains the dollar amount most 
recently established by law (other than prior inflation adjustment 
Acts) for each civil monetary penalty. Column (3) in Table 1 sets out 
the penalty levels which were in effect prior to this rulemaking. 
Column (4) in Table 1 sets out the 2018 Inflation Adjustment Multiplier 
while Column (5) sets out the new penalty levels which take effect upon 
publication of this final rule in the Federal Register.

                                                     Table 1
----------------------------------------------------------------------------------------------------------------
                                      Current civil
                                     monetary penalty    Current CMP amount  2018 inflation    CMP amount as of
             Citation                  (CMP) amount      in effect prior to    adjustment        May 2, 2018
                                    established by law    this rulemaking      multiplier
----------------------------------------------------------------------------------------------------------------
CWA, 33 U.S.C. 1319(g)(2)(A).....  $10,000 per          $20,966 per                 1.02041  $21,394 per
                                    violation, with a    violation, with a                    violation, with a
                                    maximum of $25,000.  maximum of $52,414.                  maximum of
                                                                                              $53,484.
CWA, 33 U.S.C. 1344(s)(4)........  Maximum of $25,000   Maximum of $52,414          1.02041  Maximum of $53,484
                                    per day for each     per day for each                     per day for each
                                    violation.           violation.                           violation.
National Fishing Enhancement Act,  Maximum of $10,000   Maximum of $22,957          1.02041  Maximum of $23,426
 33 U.S.C. 2104(e).                 per violation.       per violation.                       per violation.
----------------------------------------------------------------------------------------------------------------

    In summary, under this final rule the minimum Class I civil penalty 
for violations under CWA Section 309(g)(2)(A), 33 U.S.C. 1319(g)(2)A), 
will increase from $20,966 per violation to $21,394, and the maximum 
penalty will increase from $52,414 per violation to $53,484. 
Judicially-imposed civil penalties under CWA Section 404(s)(4), 33 
U.S.C. 1344(s)(4), will increase from a maximum of $52,414 per day for 
each violation to $53,484. Finally, the Class I civil penalty for 
violations of Section 205(e) of the National Fishing Enhancement Act, 
33 U.S.C. 2104(e), will increase from a maximum of $22,957 per 
violation to $23,426.
    This rule will not result in any additional costs to implement the 
Corps Regulatory Program because the Class I civil penalties and 
judicial civil penalties have been in effect since 1990 when the Corps 
first promulgated regulations regarding such penalties (Class I civil 
penalties were first established by statute in 1987). This rule merely 
adjusts the value of current statutory civil penalties to reflect and 
keep pace with the levels originally set by Congress when the statutes 
were enacted, as required by the Inflation Adjustment Act. This rule 
will result in additional costs to members of the regulated public who 
do not comply with the terms and conditions of issued Department of the 
Army permits and either receive a final Class I civil administrative 
penalty order from a District Engineer or are subject to a

[[Page 19182]]

judicial civil penalty. The rule increases the minimum and maximum 
penalty amounts to $21,394 and $53,484 for Class I civil administrative 
penalties under the Clean Water Act, to a maximum of $53,484 for 
judicially-imposed civil penalties under the Clean Water Act, and to a 
maximum of $23,426 for Class I civil administrative penalties under the 
National Fishing Enhancement Act. The benefit of this rule will be to 
improve the effectiveness of Corps civil monetary penalties by 
maintaining their deterrent effect and promoting compliance with the 
law.

Administrative Requirements

Plain Language

    In compliance with the principles in the President's Memorandum of 
June 1, 1998, regarding plain language, this preamble is written using 
plain language. The use of ``we'' in this notice refers to the Corps 
and the use of ``you'' refers to the reader. We have also used the 
active voice, short sentences, and common everyday terms except for 
necessary technical terms.

Paperwork Reduction Act

    This final rule will not impose any new information collection 
burden under the provisions of the Paperwork Production Act (44 U.S.C. 
3501 et seq.). This action merely increases the level of statutory 
civil penalties that could be imposed in the context of a federal civil 
administrative enforcement action or civil judicial case for violations 
of Corps-administered statutes and their implementing regulations.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. For the Corps regulatory program 
under Section 10 of the Rivers and Harbors Act of 1899, Section 404 of 
the Clean Water Act, and Section 103 of the Marine Protection, Research 
and Sanctuaries Act of 1972, the current OMB approval number for 
information requirements is maintained by the Corps of Engineers (OMB 
approval number 0710-0003). However, there are no new approval or 
application processes required as a result of this rulemaking that 
necessitate a new Information Collection Request (ICR). The regulation 
would not impose reporting or recordkeeping requirements. Therefore, 
this action is not subject to the Paperwork Reduction Act.

Executive Order 12866 and Executive Order 13563, ``Improving Regulation 
and Regulatory Review''

    The OMB has not designated this final rule a ``significant 
regulatory action'' under Executive Order 12866. Accordingly, OMB has 
not reviewed this rule. Moreover, this final rule makes 
nondiscretionary adjustments to existing civil monetary penalties in 
accordance with the Inflation Adjustment Act and OMB guidance. The 
Corps, therefore, did not consider alternatives and does not have the 
flexibility to alter the adjustments of the civil monetary penalty 
amounts as provided in this rule. To the extent this rule increases 
civil monetary penalties, it would result in an increase in transfers 
from persons or entities assessed a civil monetary penalty to the 
government.

Executive Order 13132

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires the Corps to develop an accountable process to 
ensure ``meaningful and timely input by State and local officials in 
the development of regulatory policies that have Federalism 
implications.'' The phrase ``policies that have Federalism 
implications'' is defined in the Executive Order to include regulations 
that have ``substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.''
    This rule does not have Federalism implications. This 
nondiscretionary action is required by the Inflation Adjustment Act and 
will have no substantial direct effects on the States, on the 
relationship between the Federal government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, Executive Order 13132 does not apply to this 
rule.

Regulatory Flexibility Act (RFA), as Amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et 
seq.

    The RFA generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to notice-and-comment 
rulemaking requirements under the Administrative Procedure Act or any 
other statute unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Small entities include small businesses, small organizations and small 
governmental jurisdictions.
    The Regulatory Flexibility Act applies only to rules subject to 
notice-and-comment rulemaking requirements under the Administrative 
Procedure Act, 5 U.S.C. 553, or any other statute. See 5 U.S.C. 601-
612. The Regulatory Flexibility Act does not apply to this final rule 
because a notice-and-comment rulemaking process is not required for the 
reasons stated above.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and Tribal 
governments and the private sector. Under Section 202 of the UMRA, the 
agencies generally must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local, and Tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any one year. Before promulgating a rule for which a 
written statement is needed, section 205 of the UMRA generally requires 
the agencies to identify and consider a reasonable number of regulatory 
alternatives and adopt the least costly, most cost-effective, or least 
burdensome alternative that achieves the objectives of the rule. The 
provisions of section 205 do not apply when they are inconsistent with 
applicable law. Moreover, section 205 allows the Corps to adopt an 
alternative other than the least costly, most cost-effective, or least 
burdensome alternative if the agency publishes with the final rule an 
explanation why that alternative was not adopted. Before the Corps 
establishes any regulatory requirements that may significantly or 
uniquely affect small governments, including Tribal governments, they 
must have developed under Section 203 of the UMRA a small

[[Page 19183]]

government agency plan. The plan must provide for notifying potentially 
affected small governments, enabling officials of affected small 
governments to have meaningful and timely input in the development of 
regulatory proposals with significant Federal intergovernmental 
mandates, and informing, educating, and advising small governments on 
compliance with the regulatory requirements.
    We have determined that this final rule does not impose new 
substantive requirements and therefore does not contain a Federal 
mandate that may result in expenditures of $100 million or more for 
State, local, and Tribal governments, in the aggregate, or the private 
sector in any one year. Therefore, this rule is not subject to the 
requirements of Sections 202 and 205 of the UMRA. For the same reasons, 
we have determined that this final rule contains no regulatory 
requirements that might significantly or uniquely affect small 
governments. Therefore, this final rule is not subject to the 
requirements of Section 203 of UMRA. Therefore, no actions are deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995.

National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), Public Law 104-113, section 12(d) (15 U.S.C. 272 
note) directs us to use voluntary consensus standards in our regulatory 
activities, unless to do so would be inconsistent with applicable law 
or otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures, and business practices) that are developed or adopted by 
voluntary consensus standards bodies. The NTTAA directs us to provide 
Congress, through OMB, explanations when we decide not to use available 
and applicable voluntary consensus standards.
    This rule does not involve technical standards. Therefore, we did 
not consider the use of any voluntary consensus standards.

Executive Order 13045

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997), applies 
to any rule that: (1) Is determined to be ``economically significant'' 
as defined under Executive Order 12866, and (2) concerns an 
environmental health or safety risk that we have reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, we must evaluate the environmental health or 
safety effects of the rule on children, and explain why the regulation 
is preferable to other potentially effective and reasonably feasible 
alternatives.
    This rule is not subject to this Executive Order because it is not 
economically significant as defined in Executive Order 12866. In 
addition, it does not concern an environmental or safety risk that we 
have reason to believe may have a disproportionate effect on children.

Executive Order 13175

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000), 
requires agencies to develop an accountable process to ensure 
``meaningful and timely input by tribal officials in the development of 
regulatory policies that have tribal implications.'' The phrase 
``policies that have tribal implications'' is defined in the Executive 
Order to include regulations that have ``substantial direct effects on 
one or more Indian tribes, on the relationship between the Federal 
government and the Indian tribes, or on the distribution of power and 
responsibilities between the Federal government and Indian tribes.''
    This rule does not have tribal implications. The rule imposes no 
new substantive obligations on tribal governments but instead merely 
adjusts the value of current statutory civil monetary penalties to 
reflect and keep pace with the levels originally set by Congress when 
the statutes were enacted. The calculation of the increases is formula-
driven and prescribed by statute and OMB guidance, and the Corps has no 
discretion to vary the amount of the adjustment to reflect any views or 
suggestions provided by commenters. Therefore, Executive Order 13175 
does not apply to this rule.

Environmental Documentation

    The Corps prepares appropriate environmental documentation, 
including Environmental Impact Statements when required, for all permit 
decisions. Therefore, environmental documentation under the National 
Environmental Policy Act is not required for this rule. This final rule 
does not constitute a major Federal action significantly affecting the 
quality of the human environment because it merely increases the value 
of statutory civil monetary penalties to reflect and keep pace with the 
levels originally set by Congress when the statutes were enacted. The 
calculation of the increases is formula-driven and prescribed by 
statute and OMB guidance, and the Corps has no discretion to vary the 
amount of the adjustment.
    Appropriate environmental documentation has been, or will be, 
prepared for each permit action that is subject to the civil penalty 
process. Therefore, environmental documentation under the National 
Environmental Policy Act (NEPA) is not required for this final rule.

Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, 
generally provides that before a rule may take effect, the agency 
promulgating the rule must submit a rule report, which includes a copy 
of the rule, to each House of the Congress and to the Comptroller 
General of the United States. We will submit a report containing this 
rule and other required information to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule cannot take effect until 60 days after it is published in 
the Federal Register. This rule is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

Executive Order 12898

    Executive Order 12898 requires that, to the greatest extent 
practicable and permitted by law, each Federal agency must make 
achieving environmental justice part of its mission. Executive Order 
12898 provides that each Federal agency conduct its programs, policies, 
and activities that substantially affect human health or the 
environment in a manner that ensures that such programs, policies, and 
activities do not have the effect of excluding persons (including 
populations) from participation in, denying persons (including 
populations) the benefits of, or subjecting persons (including 
populations) to discrimination under such programs, policies, and 
activities because of their race, color, or national origin. This rule 
is not expected to negatively impact any community, and therefore is 
not expected to cause any disproportionately high and adverse impacts 
to minority or low-income communities. This rule relates solely to the 
adjustments to civil penalties to account for inflation.

Executive Order 13211

    This rule is not a ``significant energy action'' as defined in 
Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply,

[[Page 19184]]

Distribution, or Use'' (66 FR 28355, May 22, 2001) because it is not 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy. This rule relates only to the 
adjustments to civil penalties to account for inflation. This rule is 
consistent with current agency practice, does not impose new 
substantive requirements, and therefore will not have a significant 
adverse effect on the supply, distribution, or use of energy.

List of Subjects in 33 CFR Part 326

    Administrative practice and procedure, Intergovernmental relations, 
Investigations, Law enforcement, Navigation (water), Water pollution 
control, Waterways.

    Dated: April 19, 2018.

R.D. James,
Assistant Secretary of the Army (Civil Works).

    For the reasons set forth in the preamble, the Corps amends 33 CFR 
part 326 as follows:

PART 326--ENFORCEMENT

0
1. The authority citation for part 326 continues to read as follows:

    Authority: 33 U.S.C. 401 et seq.; 33 U.S.C. 1344; 33 U.S.C. 
1413; 33 U.S.C. 2104; 33 U.S.C. 1319; 28 U.S.C. 2461 note.


0
2. Amend Sec.  326.6 by revising paragraph (a)(1) to read as follows:


Sec.  326.6  Class I administrative penalties.

    (a) Introduction. (1) This section sets forth procedures for 
initiation and administration of Class I administrative penalty orders 
under Section 309(g) of the Clean Water Act, judicially-imposed civil 
penalties under Section 404(s) of the Clean Water Act, and Section 205 
of the National Fishing Enhancement Act. Under Section 309(g)(2)(A) of 
the Clean Water Act, Class I civil penalties may not exceed $21,394 per 
violation, except that the maximum amount of any Class I civil penalty 
shall not exceed $53,484. Under Section 404(s)(4) of the Clean Water 
Act, judicially-imposed civil penalties may not exceed $53,484 per day 
for each violation. Under Section 205(e) of the National Fishing 
Enhancement Act, penalties for violations of permits issued in 
accordance with that Act shall not exceed $23,426 for each violation.

------------------------------------------------------------------------
                                             Statutory civil monetary
                                          penalty amount for violations
  Environmental statute and U.S. Code    that occurred after November 2,
                citation                   2015, and are assessed on or
                                                after May 2, 2018
------------------------------------------------------------------------
Clean Water Act (CWA), Section           $21,394 per violation, with a
 309(g)(2)(A), 33 U.S.C. 1319(g)(2)(A).   maximum of $53,484.
CWA, Section 404(s)(4), 33 U.S.C.        Maximum of $53,484 per day for
 1344(s)(4).                              each violation.
National Fishing Enhancement Act,        Maximum of $23,426 per
 Section 205(e), 33 U.S.C. 2104(e).       violation.
------------------------------------------------------------------------

* * * * *

[FR Doc. 2018-09316 Filed 5-1-18; 8:45 am]
BILLING CODE 3720-58-P



                                             19180              Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Rules and Regulations

                                             notice of enforcement because August                    Federal Civil Penalties Inflation                     intends to continue to publish annual
                                             11, 2018 is the second Saturday in                      Adjustment Act of 1990, as amended by                 adjustments as required by the Inflation
                                             August.                                                 the Federal Civil Penalties Inflation                 Adjustment Act, no later than January
                                                Coast Guard regulations for recurring                Adjustment Act Improvements Act of                    15 of each calendar year.
                                             marine events and regattas within                       2015 (Inflation Adjustment Act), which                   The Inflation Adjustment Act does
                                             Captain of the Port Delaware Bay Zone,                  requires agencies to adjust the levels of             not require agencies to implement the
                                             appear in § 100.501, Coast Guard Sector                 civil monetary penalties with an initial              required adjustments through a notice
                                             Delaware Bay, COTP Zone which                           ‘‘catch-up’’ adjustment followed by                   and comment process unless proposing
                                             specifies the location of the regulated                 annual adjustments for inflation. The                 an adjustment of less than the amount
                                             area for this regulated area as all waters              Inflation Adjustment Act prescribes a                 otherwise required, and the Corps is not
                                             of the New Jersey ICW bounded by a                      formula for adjusting statutory civil                 exercising any discretion it may have to
                                             line connecting the following points:                   penalties to reflect inflation, maintain              make a lesser adjustment. For the
                                             Latitude 39°21′20″ N, longitude                         the deterrent effect of statutory civil               annual adjustments, the Inflation
                                             074°27′18″ W, thence northeast to                       penalties, and promote compliance with                Adjustment Act provides a clear
                                             latitude 39°21′27.47″ N, longitude                      the law. Using the adjustment criteria                formula for adjustment of the civil
                                             074°27′10.31″ W, thence northeast to                    provided in the December 15, 2017,                    penalties, and the Corps has no
                                             latitude 39°21′33″ N, longitude                         Office of Management and Budget                       discretion to vary the amount of the
                                             074°26′57″ W, thence northwest to                       Memorandum regarding the                              adjustment to reflect any views or
                                             latitude 39°21′37″ N, longitude                         ‘‘Implementation of Penalty Inflation                 suggestions provided by commenters.
                                             074°27′03″ W, thence southwest to                       Adjustments for 2018, Pursuant to the                 The Inflation Adjustment Act further
                                             latitude 39°21′29.88″ N, longitude                      Federal Civil Penalties Inflation                     provides that the increased penalty
                                             074°27′14.31″ W, thence south to                        Adjustment Act Improvements Act of                    levels apply to penalties assessed after
                                             latitude 39°21′19″ N, longitude                         2015’’, the 2018 annual adjustment for                the effective date of the increase. For
                                             074°27′22″ W, thence east to latitude                   inflation will increase the Class I civil             these reasons, the Corps finds that
                                             39°21′18.14″ N, longitude 074°27′19.25″                 penalty under Section 309 of the Clean                notice and comment would be
                                             W, thence north to point of origin, near                Water Act to $21,394 per violation, and               impracticable and unnecessary in this
                                             Atlantic City, NJ.                                      the maximum civil penalty increases to                situation and contrary to the language of
                                                The Captain of the Port, Delaware Bay                $53,484. The judicial civil penalty                   the Inflation Adjustment Act.
                                             will be enforcing the Special Local                     under Section 404(s) of the Clean Water                  Section 4 of the Inflation Adjustment
                                             Regulation as specified in § 100.501(c).                Act increases to $53,484 per day for                  Act directs federal agencies to publish
                                                This notice of enforcement is issued                 each violation. Under the National                    annual penalty inflation adjustments. In
                                             under authority of 33 CFR 100.501 and                   Fishing Enhancement Act, the Class I                  accordance with Section 553 of the
                                             33 U.S.C. 1233. The Coast Guard will                    civil penalty increases to $23,426 per                Administrative Procedures Act (APA),
                                             provide the maritime community with                     violation.                                            most rules are subject to notice and
                                             advanced notice of enforcement of                                                                             comment and are effective no earlier
                                                                                                     DATES: This final rule is effective on
                                             regulation by Broadcast Notice to                                                                             than 30 days after publication in the
                                                                                                     May 2, 2018.
                                             Mariners (BNM), Local Notice to                                                                               Federal Register. Section 4(b)(2) of the
                                                                                                     FOR FURTHER INFORMATION CONTACT: Ms.
                                             Mariners and on-scene notice by                                                                               Inflation Adjustment Act further
                                                                                                     Stacey M. Jensen at 202–761–5856 or by                provides that each agency shall make
                                             designated representative.
                                                                                                     email at stacey.m.jensen@                             the annual inflation adjustments
                                               Dated: April 26, 2018.                                usace.army.mil or access the U.S. Army                ‘‘notwithstanding section 553’’ of the
                                             Scott E. Anderson,                                      Corps of Engineers Regulatory Home                    APA. According to the December 2017
                                             Captain, U.S. Coast Guard, Captain of the               Page at http://www.usace.army.mil/                    OMB guidance issued to Federal
                                             Port Delaware Bay.                                      Missions/CivilWorks/RegulatoryProgram                 agencies on the implementation of the
                                             [FR Doc. 2018–09327 Filed 5–1–18; 8:45 am]              andPermits.aspx.                                      2018 annual adjustment, the phrase
                                             BILLING CODE 9110–04–P                                  SUPPLEMENTARY INFORMATION:                            ‘‘notwithstanding section 553’’ means
                                                                                                                                                           that ‘‘the public procedure the APA
                                                                                                     Executive Summary
                                                                                                                                                           generally requires—notice, an
                                             DEPARTMENT OF DEFENSE                                      The Corps is publishing this final rule            opportunity for comment, and a delay in
                                                                                                     to adjust its civil monetary penalties for            effective date—is not required for
                                             Department of the Army, Corps of
                                                                                                     inflation pursuant to the Inflation                   agencies to issue regulations
                                             Engineers
                                                                                                     Adjustment Act. This law requires the                 implementing the annual adjustment.’’
                                                                                                     Corps to publish annual adjustments for               Consistent with the language of the
                                             33 CFR Part 326
                                                                                                     inflation. The purpose of the Inflation               Inflation Adjustment Act and OMB’s
                                             RIN 0710–AA77                                           Adjustment Act is to maintain the                     implementation guidance, this rule is
                                                                                                     deterrent effect of civil penalties by                not subject to notice and opportunity for
                                             Civil Monetary Penalty Inflation                        translating originally enacted statutory              public comment.
                                             Adjustment Rule                                         civil penalty amounts to today’s dollars
                                                                                                     and rounding statutory civil penalties to             Background
                                             AGENCY:  U.S. Army Corps of Engineers,
                                             Department of Defense.                                  the nearest dollar. The Inflation                       On August 3, 2011, the Deputy
                                             ACTION: Final rule.                                     Adjustment Act required agencies to                   Secretary of Defense delegated to the
                                                                                                     publish annual adjustments beginning                  Secretary of the Army the authority and
                                             SUMMARY:   The U.S. Army Corps of                       no later than January 15 of each                      responsibility to adjust penalties
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                                             Engineers (Corps) is issuing this final                 calendar year. Accordingly, the Corps is              administered by the U.S. Army Corps of
                                             rule to adjust its civil monetary                       providing the second annual adjustment                Engineers. On August 29, 2011, the
                                             penalties under the Clean Water Act                     effective May 2, 2018, in this final rule.            Secretary of the Army delegated that
                                             (CWA) and the National Fishing                          The rule will apply prospectively, to                 authority and responsibility to the
                                             Enhancement Act to account for                          penalty assessments beginning on its                  Assistant Secretary of the Army for Civil
                                             inflation. This action is mandated by the               effective date. Subsequently, the Corps               Works.


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                                                                Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Rules and Regulations                                               19181

                                                On November 2, 2015, the President                   penalty increase that was greater than                on the guidance provided by OMB (see
                                             signed into law the Federal Civil                       $1,000, but less than or equal to                     December 15, 2017, Memorandum for
                                             Penalties Inflation Adjustment Act                      $10,000, would be rounded to the                      the Heads of Executive Departments and
                                             Improvements Act of 2015, Public Law                    nearest multiple of $1,000. While this                Agencies, from Mick Mulvaney,
                                             114–74, 701 (Inflation Adjustment Act),                 allowed penalties to be kept at round                 Director, OMB, Subject: Implementation
                                             which further amended the Federal                       numbers, it meant that agencies often                 of Penalty Inflation Adjustments for
                                             Civil Penalties Inflation Adjustment Act                would not increase penalties at all if the            2018, Pursuant to the Federal Civil
                                             of 1990 as previously amended by the                    inflation factor was not large enough.                Penalties Inflation Adjustment Act
                                             1996 Debt Collection Improvement Act                    Furthermore, increases to penalties were              Improvements Act of 2015). The OMB
                                             (DCIA; collectively, ‘‘prior inflation                  capped at 10 percent, which meant that                provided to agencies the cost-of-living
                                             adjustment Acts’’), to improve the                      longer periods without an inflation                   adjustment multiplier for 2018, based
                                             effectiveness of civil monetary penalties               adjustment could cause a penalty to                   on the CPI–U for the month of October
                                             and to maintain their deterrent effect.                 rapidly lose value in real terms. Over                2017, not seasonally adjusted, which is
                                             The Inflation Adjustment Act requires                   time, this formula caused agency civil                1.02041. Agencies are to adjust ‘‘the
                                             agencies to do the following: (1) Adjust                penalties to lose value relative to total             maximum civil monetary penalty or the
                                             the level of civil monetary penalties                   inflation, thereby undermining                        range of minimum and maximum civil
                                             with an initial ‘‘catch-up’’ adjustment,                Congress’ original purpose in enacting                monetary penalties, as applicable, for
                                             through a final rule to be published by                 statutory civil monetary penalties to be              each civil monetary penalty by the cost-
                                             July 1, 2016; and (2) beginning no later                a deterrent and to promote compliance                 of-living adjustment.’’ For 2018,
                                             than January 15, 2017, make subsequent                  with the law. The Inflation Adjustment                agencies multiply each applicable
                                             annual adjustments for inflation. The                   Act has removed these rounding rules.                 penalty by the multiplier, 1.02041, and
                                             Inflation Adjustment Act does not alter                 Penalties now are simply rounded to the               round to the nearest dollar. The
                                             an agency’s statutory authority, to the                 nearest dollar. This rounding ensures                 multiplier should be applied to the most
                                             extent it exists, to assess penalties below             that penalties will be increased each                 recent penalty amount, i.e., the one that
                                             the maximum level. The final rule                       year to more effectively keep up with                 includes the initial catch-up adjustment
                                             implementing the initial ‘‘catch-up’’                   inflation.                                            mandated by the Inflation Adjustment
                                             adjustment mandated by the Inflation                       The Inflation Adjustment Act                       Act as well as the 2017 annual inflation
                                             Adjustment Act as well as the 2017                      required a ‘‘catch-up’’ adjustment that               adjustment. Column (1) contains the
                                             annual inflation adjustment mandated                    reset the inflation calculations by                   United States Code citations for the
                                             by the Act was effective on December                    excluding prior inflationary adjustments              penalty statute. Column (2) contains the
                                             12, 2017. This final rule fulfills the                  under prior inflation adjustment Acts,                dollar amount most recently established
                                             requirement for the 2018 annual                         and subsequent, annual adjustments to                 by law (other than prior inflation
                                             inflation adjustment and is effective on                all civil penalties under the laws                    adjustment Acts) for each civil monetary
                                             May 2, 2018.                                            implemented by that agency. With this                 penalty. Column (3) in Table 1 sets out
                                                The Inflation Adjustment Act amends                  rule, the new statutory maximum                       the penalty levels which were in effect
                                             prior inflation adjustment Acts by                      penalty levels listed in Table 1 will                 prior to this rulemaking. Column (4) in
                                             substantially revising the method of                    apply to all statutory civil penalties                Table 1 sets out the 2018 Inflation
                                             calculating inflation adjustments. Prior                assessed on or after the effective date of            Adjustment Multiplier while Column
                                             inflation adjustment Acts required                      this rule.                                            (5) sets out the new penalty levels
                                             adjustments to civil penalties to be                       Table 1 shows the calculation of the               which take effect upon publication of
                                             rounded significantly. For example, a                   2018 annual inflation adjustment based                this final rule in the Federal Register.

                                                                                                                         TABLE 1
                                                                                         Current civil monetary             Current CMP amount in           2018 inflation         CMP amount as of
                                                          Citation                       penalty (CMP) amount                 effect prior to this           adjustment              May 2, 2018
                                                                                           established by law                     rulemaking                  multiplier

                                             CWA, 33 U.S.C. 1319(g)(2)(A) ..         $10,000 per violation, with a       $20,966 per violation, with a              1.02041   $21,394 per violation, with a
                                                                                       maximum of $25,000.                 maximum of $52,414.                                  maximum of $53,484.
                                             CWA, 33 U.S.C. 1344(s)(4) .......       Maximum of $25,000 per day          Maximum of $52,414 per day                 1.02041   Maximum of $53,484 per day
                                                                                       for each violation.                 for each violation.                                  for each violation.
                                             National Fishing Enhancement            Maximum of $10,000 per vio-         Maximum of $22,957 per vio-                1.02041   Maximum of $23,426 per vio-
                                               Act, 33 U.S.C. 2104(e).                 lation.                             lation.                                              lation.



                                                In summary, under this final rule the                205(e) of the National Fishing                        merely adjusts the value of current
                                             minimum Class I civil penalty for                       Enhancement Act, 33 U.S.C. 2104(e),                   statutory civil penalties to reflect and
                                             violations under CWA Section                            will increase from a maximum of                       keep pace with the levels originally set
                                             309(g)(2)(A), 33 U.S.C. 1319(g)(2)A),                   $22,957 per violation to $23,426.                     by Congress when the statutes were
                                             will increase from $20,966 per violation                  This rule will not result in any                    enacted, as required by the Inflation
                                             to $21,394, and the maximum penalty                     additional costs to implement the Corps               Adjustment Act. This rule will result in
                                             will increase from $52,414 per violation                Regulatory Program because the Class I                additional costs to members of the
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                                             to $53,484. Judicially-imposed civil                    civil penalties and judicial civil                    regulated public who do not comply
                                             penalties under CWA Section 404(s)(4),                  penalties have been in effect since 1990              with the terms and conditions of issued
                                             33 U.S.C. 1344(s)(4), will increase from                when the Corps first promulgated                      Department of the Army permits and
                                             a maximum of $52,414 per day for each                   regulations regarding such penalties                  either receive a final Class I civil
                                             violation to $53,484. Finally, the Class                (Class I civil penalties were first                   administrative penalty order from a
                                             I civil penalty for violations of Section               established by statute in 1987). This rule            District Engineer or are subject to a


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                                             19182              Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Rules and Regulations

                                             judicial civil penalty. The rule increases              Section 404 of the Clean Water Act, and               Executive Order 13132 does not apply
                                             the minimum and maximum penalty                         Section 103 of the Marine Protection,                 to this rule.
                                             amounts to $21,394 and $53,484 for                      Research and Sanctuaries Act of 1972,
                                                                                                                                                           Regulatory Flexibility Act (RFA), as
                                             Class I civil administrative penalties                  the current OMB approval number for
                                                                                                                                                           Amended by the Small Business
                                             under the Clean Water Act, to a                         information requirements is maintained                Regulatory Enforcement Fairness Act of
                                             maximum of $53,484 for judicially-                      by the Corps of Engineers (OMB                        1996 (SBREFA), 5 U.S.C. 601 et seq.
                                             imposed civil penalties under the Clean                 approval number 0710–0003). However,
                                             Water Act, and to a maximum of                          there are no new approval or                             The RFA generally requires an agency
                                             $23,426 for Class I civil administrative                application processes required as a                   to prepare a regulatory flexibility
                                             penalties under the National Fishing                    result of this rulemaking that necessitate            analysis of any rule subject to notice-
                                             Enhancement Act. The benefit of this                    a new Information Collection Request                  and-comment rulemaking requirements
                                             rule will be to improve the effectiveness               (ICR). The regulation would not impose                under the Administrative Procedure Act
                                             of Corps civil monetary penalties by                    reporting or recordkeeping                            or any other statute unless the agency
                                             maintaining their deterrent effect and                  requirements. Therefore, this action is               certifies that the rule will not have a
                                             promoting compliance with the law.                      not subject to the Paperwork Reduction                significant economic impact on a
                                                                                                     Act.                                                  substantial number of small entities.
                                             Administrative Requirements                                                                                   Small entities include small businesses,
                                                                                                     Executive Order 12866 and Executive                   small organizations and small
                                             Plain Language
                                                                                                     Order 13563, ‘‘Improving Regulation                   governmental jurisdictions.
                                               In compliance with the principles in                  and Regulatory Review’’                                  The Regulatory Flexibility Act applies
                                             the President’s Memorandum of June 1,                                                                         only to rules subject to notice-and-
                                             1998, regarding plain language, this                       The OMB has not designated this final
                                                                                                                                                           comment rulemaking requirements
                                             preamble is written using plain                         rule a ‘‘significant regulatory action’’
                                                                                                                                                           under the Administrative Procedure
                                             language. The use of ‘‘we’’ in this notice              under Executive Order 12866.
                                                                                                                                                           Act, 5 U.S.C. 553, or any other statute.
                                             refers to the Corps and the use of ‘‘you’’              Accordingly, OMB has not reviewed
                                                                                                                                                           See 5 U.S.C. 601–612. The Regulatory
                                             refers to the reader. We have also used                 this rule. Moreover, this final rule
                                                                                                                                                           Flexibility Act does not apply to this
                                             the active voice, short sentences, and                  makes nondiscretionary adjustments to
                                                                                                                                                           final rule because a notice-and-comment
                                             common everyday terms except for                        existing civil monetary penalties in                  rulemaking process is not required for
                                             necessary technical terms.                              accordance with the Inflation                         the reasons stated above.
                                                                                                     Adjustment Act and OMB guidance.
                                             Paperwork Reduction Act                                 The Corps, therefore, did not consider                Unfunded Mandates Reform Act
                                                This final rule will not impose any                  alternatives and does not have the                       Title II of the Unfunded Mandates
                                             new information collection burden                       flexibility to alter the adjustments of the           Reform Act of 1995 (UMRA), Public
                                             under the provisions of the Paperwork                   civil monetary penalty amounts as                     Law 104–4, establishes requirements for
                                             Production Act (44 U.S.C. 3501 et seq.).                provided in this rule. To the extent this             Federal agencies to assess the effects of
                                             This action merely increases the level of               rule increases civil monetary penalties,              their regulatory actions on State, local,
                                             statutory civil penalties that could be                 it would result in an increase in                     and Tribal governments and the private
                                             imposed in the context of a federal civil               transfers from persons or entities                    sector. Under Section 202 of the UMRA,
                                             administrative enforcement action or                    assessed a civil monetary penalty to the              the agencies generally must prepare a
                                             civil judicial case for violations of                   government.                                           written statement, including a cost-
                                             Corps-administered statutes and their                   Executive Order 13132                                 benefit analysis, for proposed and final
                                             implementing regulations.                                                                                     rules with ‘‘Federal mandates’’ that may
                                                Burden means the total time, effort, or                 Executive Order 13132, entitled                    result in expenditures to State, local,
                                             financial resources expended by persons                 ‘‘Federalism’’ (64 FR 43255, August 10,               and Tribal governments, in the
                                             to generate, maintain, retain, or disclose              1999), requires the Corps to develop an               aggregate, or to the private sector, of
                                             or provide information to or for a                      accountable process to ensure                         $100 million or more in any one year.
                                             Federal agency. This includes the time                  ‘‘meaningful and timely input by State                Before promulgating a rule for which a
                                             needed to review instructions; develop,                 and local officials in the development of             written statement is needed, section 205
                                             acquire, install, and utilize technology                regulatory policies that have Federalism              of the UMRA generally requires the
                                             and systems for the purposes of                         implications.’’ The phrase ‘‘policies that            agencies to identify and consider a
                                             collecting, validating, and verifying                   have Federalism implications’’ is                     reasonable number of regulatory
                                             information, processing and                             defined in the Executive Order to                     alternatives and adopt the least costly,
                                             maintaining information, and disclosing                 include regulations that have                         most cost-effective, or least burdensome
                                             and providing information; adjust the                   ‘‘substantial direct effects on the States,           alternative that achieves the objectives
                                             existing ways to comply with any                        on the relationship between the national              of the rule. The provisions of section
                                             previously applicable instructions and                  government and the States, or on the                  205 do not apply when they are
                                             requirements; train personnel to be able                distribution of power and                             inconsistent with applicable law.
                                             to respond to a collection of                           responsibilities among the various                    Moreover, section 205 allows the Corps
                                             information; search data sources;                       levels of government.’’                               to adopt an alternative other than the
                                             complete and review the collection of                      This rule does not have Federalism                 least costly, most cost-effective, or least
                                             information; and transmit or otherwise                  implications. This nondiscretionary                   burdensome alternative if the agency
                                             disclose the information.                               action is required by the Inflation                   publishes with the final rule an
                                                An agency may not conduct or                         Adjustment Act and will have no                       explanation why that alternative was
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                                             sponsor, and a person is not required to                substantial direct effects on the States,             not adopted. Before the Corps
                                             respond to, a collection of information                 on the relationship between the Federal               establishes any regulatory requirements
                                             unless it displays a currently valid OMB                government and the States, or on the                  that may significantly or uniquely affect
                                             control number. For the Corps                           distribution of power and                             small governments, including Tribal
                                             regulatory program under Section 10 of                  responsibilities among the various                    governments, they must have developed
                                             the Rivers and Harbors Act of 1899,                     levels of government. Therefore,                      under Section 203 of the UMRA a small


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                                                                Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Rules and Regulations                                          19183

                                             government agency plan. The plan must                   the regulatory action meets both criteria,            enacted. The calculation of the increases
                                             provide for notifying potentially                       we must evaluate the environmental                    is formula-driven and prescribed by
                                             affected small governments, enabling                    health or safety effects of the rule on               statute and OMB guidance, and the
                                             officials of affected small governments                 children, and explain why the                         Corps has no discretion to vary the
                                             to have meaningful and timely input in                  regulation is preferable to other                     amount of the adjustment.
                                             the development of regulatory proposals                 potentially effective and reasonably                     Appropriate environmental
                                             with significant Federal                                feasible alternatives.                                documentation has been, or will be,
                                             intergovernmental mandates, and                            This rule is not subject to this                   prepared for each permit action that is
                                             informing, educating, and advising                      Executive Order because it is not                     subject to the civil penalty process.
                                             small governments on compliance with                    economically significant as defined in                Therefore, environmental
                                             the regulatory requirements.                            Executive Order 12866. In addition, it                documentation under the National
                                                We have determined that this final                   does not concern an environmental or                  Environmental Policy Act (NEPA) is not
                                             rule does not impose new substantive                    safety risk that we have reason to                    required for this final rule.
                                             requirements and therefore does not                     believe may have a disproportionate
                                                                                                                                                           Congressional Review Act
                                             contain a Federal mandate that may                      effect on children.
                                             result in expenditures of $100 million or                                                                       The Congressional Review Act, 5
                                                                                                     Executive Order 13175                                 U.S.C. 801 et seq., as amended by the
                                             more for State, local, and Tribal
                                             governments, in the aggregate, or the                      Executive Order 13175, entitled                    Small Business Regulatory Enforcement
                                             private sector in any one year.                         ‘‘Consultation and Coordination with                  Fairness Act of 1996, generally provides
                                             Therefore, this rule is not subject to the              Indian Tribal Governments’’ (65 FR                    that before a rule may take effect, the
                                             requirements of Sections 202 and 205 of                 67249, November 6, 2000), requires                    agency promulgating the rule must
                                             the UMRA. For the same reasons, we                      agencies to develop an accountable                    submit a rule report, which includes a
                                             have determined that this final rule                    process to ensure ‘‘meaningful and                    copy of the rule, to each House of the
                                             contains no regulatory requirements that                timely input by tribal officials in the               Congress and to the Comptroller General
                                             might significantly or uniquely affect                  development of regulatory policies that               of the United States. We will submit a
                                             small governments. Therefore, this final                have tribal implications.’’ The phrase                report containing this rule and other
                                             rule is not subject to the requirements                 ‘‘policies that have tribal implications’’            required information to the U.S. Senate,
                                             of Section 203 of UMRA. Therefore, no                   is defined in the Executive Order to                  the U.S. House of Representatives, and
                                             actions are deemed necessary under the                  include regulations that have                         the Comptroller General of the United
                                             provisions of the Unfunded Mandates                     ‘‘substantial direct effects on one or                States. A major rule cannot take effect
                                             Reform Act of 1995.                                     more Indian tribes, on the relationship               until 60 days after it is published in the
                                                                                                     between the Federal government and                    Federal Register. This rule is not a
                                             National Technology Transfer and                        the Indian tribes, or on the distribution             ‘‘major rule’’ as defined by 5 U.S.C.
                                             Advancement Act                                         of power and responsibilities between                 804(2).
                                               Section 12(d) of the National                         the Federal government and Indian
                                             Technology Transfer and Advancement                     tribes.’’                                             Executive Order 12898
                                             Act of 1995 (NTTAA), Public Law 104–                       This rule does not have tribal                        Executive Order 12898 requires that,
                                             113, section 12(d) (15 U.S.C. 272 note)                 implications. The rule imposes no new                 to the greatest extent practicable and
                                             directs us to use voluntary consensus                   substantive obligations on tribal                     permitted by law, each Federal agency
                                             standards in our regulatory activities,                 governments but instead merely adjusts                must make achieving environmental
                                             unless to do so would be inconsistent                   the value of current statutory civil                  justice part of its mission. Executive
                                             with applicable law or otherwise                        monetary penalties to reflect and keep                Order 12898 provides that each Federal
                                             impractical. Voluntary consensus                        pace with the levels originally set by                agency conduct its programs, policies,
                                             standards are technical standards (e.g.,                Congress when the statutes were                       and activities that substantially affect
                                             materials specifications, test methods,                 enacted. The calculation of the increases             human health or the environment in a
                                             sampling procedures, and business                       is formula-driven and prescribed by                   manner that ensures that such programs,
                                             practices) that are developed or adopted                statute and OMB guidance, and the                     policies, and activities do not have the
                                             by voluntary consensus standards                        Corps has no discretion to vary the                   effect of excluding persons (including
                                             bodies. The NTTAA directs us to                         amount of the adjustment to reflect any               populations) from participation in,
                                             provide Congress, through OMB,                          views or suggestions provided by                      denying persons (including
                                             explanations when we decide not to use                  commenters. Therefore, Executive Order                populations) the benefits of, or
                                             available and applicable voluntary                      13175 does not apply to this rule.                    subjecting persons (including
                                             consensus standards.                                                                                          populations) to discrimination under
                                                                                                     Environmental Documentation
                                               This rule does not involve technical                                                                        such programs, policies, and activities
                                             standards. Therefore, we did not                          The Corps prepares appropriate                      because of their race, color, or national
                                             consider the use of any voluntary                       environmental documentation,                          origin. This rule is not expected to
                                             consensus standards.                                    including Environmental Impact                        negatively impact any community, and
                                                                                                     Statements when required, for all permit              therefore is not expected to cause any
                                             Executive Order 13045                                   decisions. Therefore, environmental                   disproportionately high and adverse
                                               Executive Order 13045, ‘‘Protection of                documentation under the National                      impacts to minority or low-income
                                             Children from Environmental Health                      Environmental Policy Act is not                       communities. This rule relates solely to
                                             Risks and Safety Risks’’ (62 FR 19885,                  required for this rule. This final rule               the adjustments to civil penalties to
                                             April 23, 1997), applies to any rule that:              does not constitute a major Federal
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                                                                                                                                                           account for inflation.
                                             (1) Is determined to be ‘‘economically                  action significantly affecting the quality
                                             significant’’ as defined under Executive                of the human environment because it                   Executive Order 13211
                                             Order 12866, and (2) concerns an                        merely increases the value of statutory                 This rule is not a ‘‘significant energy
                                             environmental health or safety risk that                civil monetary penalties to reflect and               action’’ as defined in Executive Order
                                             we have reason to believe may have a                    keep pace with the levels originally set              13211, ‘‘Actions Concerning Regulations
                                             disproportionate effect on children. If                 by Congress when the statutes were                    That Significantly Affect Energy Supply,


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                                             19184                Federal Register / Vol. 83, No. 85 / Wednesday, May 2, 2018 / Rules and Regulations

                                             Distribution, or Use’’ (66 FR 28355, May                      Dated: April 19, 2018.                             administration of Class I administrative
                                             22, 2001) because it is not likely to have                R.D. James,                                            penalty orders under Section 309(g) of
                                             a significant adverse effect on the                       Assistant Secretary of the Army (Civil Works).         the Clean Water Act, judicially-imposed
                                             supply, distribution, or use of energy.                                                                          civil penalties under Section 404(s) of
                                                                                                         For the reasons set forth in the                     the Clean Water Act, and Section 205 of
                                             This rule relates only to the adjustments
                                                                                                       preamble, the Corps amends 33 CFR                      the National Fishing Enhancement Act.
                                             to civil penalties to account for
                                                                                                       part 326 as follows:                                   Under Section 309(g)(2)(A) of the Clean
                                             inflation. This rule is consistent with
                                             current agency practice, does not                         PART 326—ENFORCEMENT                                   Water Act, Class I civil penalties may
                                             impose new substantive requirements,                                                                             not exceed $21,394 per violation, except
                                             and therefore will not have a significant                 ■ 1. The authority citation for part 326               that the maximum amount of any Class
                                             adverse effect on the supply,                             continues to read as follows:                          I civil penalty shall not exceed $53,484.
                                             distribution, or use of energy.                             Authority: 33 U.S.C. 401 et seq.; 33 U.S.C.          Under Section 404(s)(4) of the Clean
                                                                                                       1344; 33 U.S.C. 1413; 33 U.S.C. 2104; 33               Water Act, judicially-imposed civil
                                             List of Subjects in 33 CFR Part 326                       U.S.C. 1319; 28 U.S.C. 2461 note.                      penalties may not exceed $53,484 per
                                                                                                       ■ 2. Amend § 326.6 by revising                         day for each violation. Under Section
                                               Administrative practice and
                                                                                                       paragraph (a)(1) to read as follows:                   205(e) of the National Fishing
                                             procedure, Intergovernmental relations,                                                                          Enhancement Act, penalties for
                                             Investigations, Law enforcement,                          § 326.6    Class I administrative penalties.           violations of permits issued in
                                             Navigation (water), Water pollution                         (a) Introduction. (1) This section sets              accordance with that Act shall not
                                             control, Waterways.                                       forth procedures for initiation and                    exceed $23,426 for each violation.

                                                                                                                                      Statutory civil monetary penalty amount for violations that occurred
                                                              Environmental statute and U.S. Code citation                            after November 2, 2015, and are assessed on or after May 2, 2018

                                             Clean Water Act (CWA), Section 309(g)(2)(A), 33 U.S.C. 1319(g)(2)(A)                    $21,394 per violation, with a maximum of $53,484.
                                             CWA, Section 404(s)(4), 33 U.S.C. 1344(s)(4) ........................................   Maximum of $53,484 per day for each violation.
                                             National Fishing Enhancement Act, Section 205(e), 33 U.S.C. 2104(e)                     Maximum of $23,426 per violation.



                                             *      *       *       *      *                           (MOAs), each of which constitutes the                  and via electronic mail at bloeth.mark@
                                             [FR Doc. 2018–09316 Filed 5–1–18; 8:45 am]                mechanism for the transfer of authority                epa.gov.
                                             BILLING CODE 3720–58–P                                    from the EPA to each respective air                    SUPPLEMENTARY INFORMATION:
                                                                                                       pollution control agency. The MOAs
                                                                                                       and the corresponding delegations of                   I. Background
                                             ENVIRONMENTAL PROTECTION                                  authority were effective upon signature                   Section 129 of the Clean Air Act (the
                                             AGENCY                                                    by the Regional Administrator on April                 ‘‘CAA’’ or ‘‘Act’’), titled ‘‘Solid Waste
                                                                                                       2, 2018. The MOAs delineate policies,                  Combustion,’’ requires the EPA to
                                             40 CFR Part 62                                            responsibilities, and procedures by                    develop and adopt standards for solid
                                                                                                       which the Federal plan will be                         waste incineration units pursuant to
                                             [EPA–R04–OAR–2018–0119; FRL–9977–
                                             22—Region 4]
                                                                                                       administered and enforced by the                       sections 111(d) and 129 of the Act. On
                                                                                                       NCDEQ and WNCRAQA, respectively,                       March 21, 2011, the EPA promulgated
                                             Delegation of Authority to North                          as well as the authorities retained by the             new source performance standards
                                             Carolina and the Western North                            EPA.                                                   (NSPS) and emissions guidelines (EG)
                                             Carolina Regional Air Quality Agency                      DATES:    This rule is effective on June 1,            for SSI units located at wastewater
                                             of Federal Plan for Existing Sewage                       2018.                                                  treatment facilities designed to treat
                                             Sludge Incineration Units                                                                                        domestic sewage sludge. See 76 FR
                                                                                                       ADDRESSES:   The EPA has established a
                                             AGENCY:  Environmental Protection                                                                                15372. Codified at 40 CFR part 60,
                                                                                                       docket for this action under Docket
                                             Agency (EPA).                                                                                                    subparts LLLL and MMMM, these final
                                                                                                       Identification No. EPA–R04–OAR–
                                                                                                                                                              rules set limits for nine pollutants under
                                             ACTION: Final rule.                                       2018–0119. The index to the docket for
                                                                                                                                                              section 129 of the CAA: Cadmium (Cd),
                                                                                                       this action is available electronically at
                                             SUMMARY:   The EPA is providing notice                                                                           carbon monoxide (CO), hydrogen
                                                                                                       www.regulations.gov and in hard copy
                                             of and is codifying its prior approval of                                                                        chloride (HCl), lead (Pb), mercury (Hg),
                                                                                                       at EPA Region 4, 61 Forsyth St. SW,
                                             requests submitted by the North                                                                                  nitrogen oxides (NOX), particulate
                                                                                                       Atlanta, Georgia. While all documents
                                             Carolina Department of Environmental                                                                             matter (PM), polychlorinated dibenzo-p-
                                                                                                       in the docket are listed in the index,
                                             Quality (NCDEQ), through its Division                                                                            dioxins and polychlorinated
                                                                                                       some information may be publicly
                                             of Air Quality, and the Western North                                                                            dibenzofurans (PCDDs/PCFDs), and
                                                                                                       available only at the hard copy location
                                             Carolina Regional Air Quality Agency                                                                             sulfur dioxide (SO2). The EG apply to
                                                                                                       (e.g., copyrighted material), and some
                                             (WNCRAQA) for delegation of authority                                                                            existing SSI units, which are those units
                                                                                                       may not be publicly available at either
                                             to implement and enforce the Federal                                                                             that commenced construction on or
                                                                                                       location (e.g., confidential business
                                             plan for existing affected Sewage Sludge                                                                         before October 14, 2010. See 40 CFR
                                                                                                       information).
                                             Incineration (SSI) units. The Federal                                                                            60.5060.
                                             plan establishes emission limits and                      FOR FURTHER INFORMATION CONTACT:                          CAA section 129 also requires each
daltland on DSKBBV9HB2PROD with RULES




                                             monitoring, operating, and                                Mark Bloeth, Air, Pesticides and Toxics                state in which SSI units are operating to
                                             recordkeeping requirements for SSI                        Management Division, U.S.                              submit a plan to implement and enforce
                                             units constructed on or before October                    Environmental Protection Agency                        the EG with respect to such units. State
                                             14, 2010. NCDEQ and WNCRAQA                               Region 4, 61 Forsyth Street SW, Atlanta,               plan requirements must be ‘‘at least as
                                             representatives have signed separate but                  Georgia, 30303–8960. Mr. Bloeth can be                 protective’’ as the EG and become
                                             similar Memoranda of Agreement                            reached via telephone at (404) 562–9013                federally enforceable upon approval by


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Document Created: 2018-05-02 00:49:24
Document Modified: 2018-05-02 00:49:24
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 May 2, 2018.
ContactMs. Stacey M. Jensen at 202-761-5856 or by email at [email protected] or access the U.S. Army Corps of Engineers Regulatory Home Page at http://www.usace.army.mil/ Missions/CivilWorks/RegulatoryProgramandPermits.aspx.
FR Citation83 FR 19180 
RIN Number0710-AA77
CFR AssociatedAdministrative Practice and Procedure; Intergovernmental Relations; Investigations; Law Enforcement; Navigation (water); Water Pollution Control and Waterways

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