[Federal Register Volume 61, Number 252 (Tuesday, December 31, 1996)]
[Rules and Regulations]
[Pages 69360-69366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32972]



[[Page 69359]]

_______________________________________________________________________

Part V





Environmental Protection Agency





_______________________________________________________________________



40 CFR Parts 19 and 27



Civil Monetary Penalty Inflation Adjustment Rule; Final Rule

Federal Register / Vol. 61, No. 252 / Tuesday, December 31, 1996 / 
Rules and Regulations

[[Page 69360]]



ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 19 and 27

[FRL-5671-1]


Civil Monetary Penalty Inflation Adjustment Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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

SUMMARY: The Environmental Protection Agency (``EPA'') is issuing this 
final Civil Monetary Penalty Inflation Adjustment Rule as mandated by 
the Debt Collection Improvement Act of 1996 to adjust EPA's civil 
monetary penalties (``CMPs'') for inflation on a periodic basis. Prior 
to this new law, EPA's penalties had never been adjusted for inflation. 
This rule will allow EPA's penalties to keep pace with inflation and 
thereby maintain the deterrent effect Congress intended when it 
originally specified penalties.
    This first mandatory adjustment increases almost all of EPA's 
penalty provisions by ten percent (except for new penalty provisions 
enacted into law in 1996, which are not being increased). The Agency is 
required to review its penalties again at least once every four years 
thereafter and to adjust them as necessary for inflation according to a 
specified formula.

EFFECTIVE DATE: January 30, 1997.

FOR FURTHER INFORMATION CONTACT: Steven M. Spiegel, Office of 
Regulatory Enforcement, Multimedia Enforcement Division, Mail Code 
2248W, 401 M Street, SW, Washington, D.C. 20460, or at (703) 308-8507. 
Further information may also be requested by electronic mail (e-mail) 
to: [email protected].

SUPPLEMENTARY INFORMATION: Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note; Pub. L. 101-410, 
enacted October 5, 1990; 104 Stat. 890), as amended by the Debt 
Collection Improvement Act of 1996 (31 U.S.C. 3701 note; Public Law 
104-134, enacted April 26, 1996; 110 Stat. 1321), (``DCIA''), each 
Federal agency is required to issue regulations adjusting for inflation 
the maximum civil monetary penalties that can be imposed pursuant to 
such agency's statutes. With the adoption of this rule implementing 
these statutes, all violations which take place after January 30, 1997 
will be subject to the new statutory maximum civil penalty amounts.
    With the exception of the new penalty provisions added by the 1996 
amendments to the Safe Drinking Water Act, all of the statutory penalty 
provisions administered by EPA are being increased. All of these 
increases are for the maximum allowed, ten percent. The affected 
penalty provisions and their statutory maximum amounts are set out in 
Table 1 of the new 40 CFR 19.4.
    Section 5 of the DCIA sets forth the formula for adjusting the 
penalties for inflation:

    The inflation adjustment described under section 4 shall be 
determined by increasing the maximum CMP or the range of minimum and 
maximum CMPs, as applicable, for each CMP by the cost-of-living 
adjustment. * * * The term ``cost-of-living'' adjustment is the 
percentage for each CMP by which the Consumer Price Index (CPI) for 
the month of June of the calendar year preceding the adjustment, 
exceeds the Consumer Price Index for the month of June of the 
calendar year in which the amount of such CMP was last set or 
adjusted pursuant to law. Any increase determined under this 
amendment shall be rounded * * *.

    However, the DCIA also sets a ten percent cap on the first 
adjustment for inflation. Since EPA's penalties have never previously 
been adjusted for inflation, this first statutorily required adjustment 
will be limited to ten percent. Table A below sets forth each CMP 
provision which is being increased pursuant to the DCIA and the 
intermediate calculations performed to arrive at the adjusted final 
maximum penalty contained in the last column and in today's rule.

                                      Table A.--Summary of Civil Monetary Penalty Inflation Adjustment Calculations                                     
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  Year                                                                                                  
                                                penalty                                           Maximum penalty    Maximum penalty    Maximum penalty 
                            Civil monetary       amount    Maximum penalty    Inflation factor    increase amount      amount after    amount after P.L.
  U.S. Code  citation    penalty  description   was last  amount set by law    calculation \1\    after P.L. 101-   increase and P.L.   101-410 rounding
                                                 set by    as of  10/23/96                        410 rounding \2\   101-410 rounding    and 10% limit  
                                                  law                                                                                                   
--------------------------------------------------------------------------------------------------------------------------------------------------------
7 U.S.C. 1361 (1).....  FEDERAL INSECTICIDE,        1978  $5,000...........         456.7/195.3  $7,000...........  $12,000..........  $5,500           
                         FUNGICIDE, &                                                                                                                   
                         RODENTICIDE ACT                                                                                                                
                         CIVIL PENALTY--                                                                                                                
                         GENERAL--COMMERCIAL                                                                                                            
                         APPLICATORS, ETC.                                                                                                              
7 U.S.C. 1361 (2).....  FEDERAL INSECTICIDE,        1978  500/1,000........         456.7/195.3  700/1,000........  1,200/2,000......  550/1,100        
                         FUNGICIDE, &                                                                                                                   
                         RODENTICIDE ACT                                                                                                                
                         CIVIL PENALTY--                                                                                                                
                         PRIVATE APPLICATORS--                                                                                                          
                         1ST & SUBSEQUENT                                                                                                               
                         OFFENSES OR                                                                                                                    
                         VIOLATIONS.                                                                                                                    
15 U.S.C. 2615........  TOXIC SUBSTANCES            1976  25,000...........         456.7/170.1  40,000...........  65,000...........  27,500           
                         CONTROL ACT CIVIL                                                                                                              
                         PENALTY.                                                                                                                       
15 U.S.C. 2647(a).....  ASBESTOS HAZARD             1986  5,000............         456.7/327.9  2,000............  7,000............  5,500            
                         EMERGENCY RESPONSE                                                                                                             
                         ACT CIVIL PENALTY.                                                                                                             
31 U.S.C. 3802(a)(1)..  PROGRAM FRAUD CIVIL         1986  5,000............         456.7/327.9  2,000............  7,000............  5,500            
                         REMEDIES ACT/                                                                                                                  
                         VIOLATION INVOLVING                                                                                                            
                         FALSE CLAIM.                                                                                                                   
31 U.S.C. 3802(a)(2)..  PROGRAM FRAUD CIVIL         1986  5,000............         456.7/327.9  2,000............  7,000............  5,500            
                         REMEDIES ACT/                                                                                                                  
                         VIOLATION INVOLVING                                                                                                            
                         FALSE STATEMENT.                                                                                                               
33 U.S.C. 1319(d).....  CLEAN WATER ACT             1987  25,000...........         456.7/340.1  10,000...........  35,000...........  27,500           
                         VIOLATION/CIVIL                                                                                                                
                         JUDICIAL PENALTY.                                                                                                              
33 U.S.C.               CLEAN WATER ACT             1987  10,000/25,000....         456.7/340.1  3,000/10,000.....  13,000/35,000....  11,000/27,500    
 1319(g)(2)(A).          VIOLATION/                                                                                                                     
                         ADMINISTRATIVE                                                                                                                 
                         PENALTY PER                                                                                                                    
                         VIOLATION AND                                                                                                                  
                         MAXIMUM.                                                                                                                       

[[Page 69361]]

                                                                                                                                                        
33 U.S.C.               CLEAN WATER ACT             1987  10,000/125,000...         456.7/340.1  3,000/40,000.....  13,000/165,000...  11,000/137,500   
 1319(g)(2)(B).          VIOLATION/                                                                                                                     
                         ADMINISTRATIVE                                                                                                                 
                         PENALTY PER                                                                                                                    
                         VIOLATION AND                                                                                                                  
                         MAXIMUM.                                                                                                                       
33 U.S.C.               CLEAN WATER ACT             1990  10,000/25,000....         456.7/389.1  2,000/5,000......   12,000/30,000...  11,000 /27,500   
 1321(b)(6)(B)(I).       VIOLATION/ADMIN                                                                                                                
                         PENALTY OF SEC                                                                                                                 
                         311(b)(3) & (j) PER                                                                                                            
                         VIOLATION AND                                                                                                                  
                         MAXIMUM.                                                                                                                       
33 U.S.C.               CLEAN WATER ACT             1990  10,000/125,000...         456.7/389.1  2,000/20,000.....  12,000/145,000...  11,000/137,500   
 1321(b)(6)(B)(ii).      VIOLATION/ADMIN                                                                                                                
                         PENALTY OF SEC                                                                                                                 
                         311(b)(3) & (j) PER                                                                                                            
                         VIOLATION AND                                                                                                                  
                         MAXIMUM.                                                                                                                       
33 U.S.C.               CLEAN WATER ACT             1990  10,000 or........         456.7/389.1  5,000 or 200.....  15,000 or 1,200..  11,000 or 1,100  
 1321(b)(7)(A).          VIOLATION/CIVIL                  1,000 per b/u....                      per barrel/unit..  per barrel/unit..   per             
                         JUDICIAL PENALTY OF                                                                                           barrel or unit   
                         SEC 311(b)(3)--PER                                                                                                             
                         VIOLATION PER DAY OR                                                                                                           
                         PER BARREL OR UNIT.                                                                                                            
33 U.S.C.               CLEAN WATER ACT             1990  25,000...........         456.7/389.1  5,000............  30,000...........  27,500           
 1321(b)(7)(B).          VIOLATION/CIVIL                                                                                                                
                         JUDICIAL PENALTY OF                                                                                                            
                         SEC 311 (c) &                                                                                                                  
                         (e)(1)(B).                                                                                                                     
33 U.S.C. 1321(b)(7)    CLEAN WATER ACT             1990  25,000...........         456.7/389.1  5,000............  30,000...........  27,500           
 C).                     VIOLATION/CIVIL                                                                                                                
                         JUDICIAL PENALTY OF                                                                                                            
                         SEC 311(j).                                                                                                                    
33 U.S.C.               CLEAN WATER ACT             1990  100,000 or 3,000          456.7/389.1  15,000 or 1,000    115,000 or 4,000   11,000 or        
 1321(b)(7)(D).          VIOLATION/MINIMUM                 per b/u.                               per b/u.           per barrel/unit.  3,300            
                         CIVIL JUDICIAL                                                                                                per barrel/unit  
                         PENALTY OF SEC                                                                                                                 
                         311(b)(3)--PER                                                                                                                 
                         VIOLATION OR PER                                                                                                               
                         BARREL/UNIT.                                                                                                                   
33 U.S.C. 1414b(d)....  MARINE PROTECTION,          1988  600..............         456.7/353.5  200..............  800..............  660              
                         RESEARCH AND                                                                                                                   
                         SANCTUARIES ACT VIOL                                                                                                           
                         SEC 104b(d).                                                                                                                   
33 U.S.C. 1415(a).....  MARINE PROTECTION,          1988  50,000/125,000...         456.7/353.5  15,000/40,000....  65,000/165,000...  55,000/137,500   
                         RESEARCH AND                                                                                                                   
                         SANCTUARIES ACT                                                                                                                
                         VIOLATIONS--FIRST &                                                                                                            
                         SUBSEQUENT                                                                                                                     
                         VIOLATIONS.                                                                                                                    
42 U.S.C. 300g-3(b)...  SAFE DRINKING WATER         1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
                         ACT/CIVIL JUDICIAL                                                                                                             
                         PENALTY OF SEC                                                                                                                 
                         1414(b).                                                                                                                       
42 U.S.C. 300g-3(c)...  SAFE DRINKING WATER         1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
                         ACT/CIVIL JUDICIAL                                                                                                             
                         PENALTY OF SEC                                                                                                                 
                         1414(c).                                                                                                                       
42 U.S.C. 300g-         SAFE DRINKING WATER         1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
 3(g)(3)(A).             ACT/CIVIL JUDICIAL                                                                                                             
                         PENALTY OF SEC.                                                                                                                
                         1414(g)(3)(A).                                                                                                                 
42 U.S.C. 300g-         SAFE DRINKING WATER         1986  5,000............         456.7/327.9  2,000............  7,000............  5,500            
 3(g)(3)(B).             ACT/MAXIMUM                                                                                                                    
                         ADMINISTRATIVE                                                                                                                 
                         PENALTY PER SEC.                                                                                                               
                         1414(g)(3)(B).                                                                                                                 
42 U.S.C. 300h-2(b)(1)  CIVIL JUDICIAL              1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
                         PENALTY/VIOLATIONS                                                                                                             
                         OF REQS--UNDERGROUND                                                                                                           
                         INJECTION CONTROL.                                                                                                             
42 U.S.C. 300h-2(c)(1)  CIVIL ADMINISTRATIVE        1986  10,000/125,000...         456.7/327.9  4,000/50,000.....  14,000/175,000...  11,000/137,500   
                         PENALTY--VIOLATIONS                                                                                                            
                         OF REQS--UNDERGROUND                                                                                                           
                         INJECTION CONTROL--                                                                                                            
                         PER VIOLATION AND                                                                                                              
                         MAXIMUM.                                                                                                                       
42 U.S.C. 300h-2(c)(2)  CIVIL ADMINISTRATIVE        1986  5,000/125,000....         456.7/327.9  2,000/50,000.....  7,000/175,000....  5,500/137,500    
                         PENALTY--VIOLATIONS                                                                                                            
                         OF REQS--UNDERGROUND                                                                                                           
                         INJECTION CONTROL                                                                                                              
                         PER VIOLATION &                                                                                                                
                         MAXIMUM.                                                                                                                       
42 U.S.C. 300h-3(c)(1)  VIOLATION/OPERATION         1974  5,000............         456.7/146.9  11,000...........  16,000...........  5,500            
                         OF NEW UNDERGROUND                                                                                                             
                         INJECTION WELL.                                                                                                                
42 U.S.C. 300h-3(c)(2)  WILLFUL VIOLATION/          1974  10,000...........         456.7/146.9  21,000...........  31,000...........  11,000           
                         OPERATION OF NEW                                                                                                               
                         UNDERGROUND                                                                                                                    
                         INJECTION WELL.                                                                                                                
42 U.S.C. 300i-1(b)...  ATTEMPTING TO OR            1986  20,000/50,000....         456.7/327.9  10,000/20,000....  30,000/70,000....  22,000/55,000    
                         TAMPERING WITH                                                                                                                 
                         PUBLIC WATER SYSTEM/                                                                                                           
                         CIVIL JUDICIAL                                                                                                                 
                         PENALTY.                                                                                                                       
42 U.S.C. 300j(e)(2)..  FAILURE TO COMPLY W/        1974  2,500............         456.7/146.9  5,000............  7,500............  2,750            
                         ORDER ISSUED UNDER                                                                                                             
                         SEC. 1`441(c)(1).                                                                                                              
42 U.S.C. 300j-4(c)...  REFUSAL TO COMPLY           1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
                         WITH REQS OF SEC.                                                                                                              
                         1445(a) OR (b).                                                                                                                

[[Page 69362]]

                                                                                                                                                        
42 U.S.C. 300j-23(d)..  VIOLATIONS/SECTION          1988  5,000/50,000.....         456.7/353.5  1,000/15,000.....  6,000/65,000.....  5,500/55,000     
                         1463(b)--FIRST                                                                                                                 
                         OFFENSE/REPEAT                                                                                                                 
                         OFFENSE.                                                                                                                       
42 U.S.C. 6928(a)(3)..  RESOURCE CONSERVATION       1984  25,000...........         456.7/310.7  10,000...........  35,000...........  27,500           
                         & RECOVERY ACT/                                                                                                                
                         VIOLATION SUBTITLE C                                                                                                           
                         ASSESSED PER ORDER.                                                                                                            
42 U.S.C. 6928(c).....  RES. CONS. & REC. ACT/      1984  25,000...........         456.7/310.7  10,000...........  35,000...........  27,500           
                         CONTINUED                                                                                                                      
                         NONCOMPLIANCE OF                                                                                                               
                         COMPLIANCE ORDER.                                                                                                              
42 U.S.C. 6928(g).....  RESOURCE CONSERVATION       1976  25,000...........         456.7/170.1  40,000...........  65,000...........  27,500           
                         & RECOVERY ACT/                                                                                                                
                         VIOLATION SUBTITLE C.                                                                                                          
42 U.S.C. 6928(h)(2)..  RES. CONS. & REC. ACT/      1984  25,000...........         456.7/310.7  10,000...........  35,000...........  27,500           
                         NONCOMPLIANCE OF                                                                                                               
                         CORRECTIVE ACTION                                                                                                              
                         ORDER.                                                                                                                         
42 U.S.C. 6934(e).....  RES. CONS. & REC. ACT/      1976  25,000...........         456.7/170.1  8,000............  13,000...........  5,500            
                         NONCOMPLIANCE WITH                                                                                                             
                         SECTION 3013 ORDER.                                                                                                            
42 U.S.C. 6973(b).....  RES. CONS. & REC. ACT/      1976  5,000............         456.7/170.1  8,000............  13,000...........  5,500            
                         VIOLATIONS OF                                                                                                                  
                         ADMINISTRATIVE ORDER.                                                                                                          
42 U.S.C. 6991e(a)(3).  RES. CONS. & REC. ACT/      1984  25,000...........         456.7/310.7  10,000...........  35,000...........  27,500           
                         NONCOMPLIANCE WITH                                                                                                             
                         UST ADMIN. ORDER.                                                                                                              
42 U.S.C. 6991e(d)(1).  RES. CONS. & REC. ACT/      1984  10,000...........         456.7/310.7  5,000............  15,000...........  11,000           
                         FAILURE TO NOTIFY OR                                                                                                           
                         SUBMIT FALSE INFO.                                                                                                             
42 U.S.C. 6991e(d) (2)  VIOLATIONS OF               1984  10,000...........         456.7/310.7  5,000............  15,000...........  11,000           
                         SPECIFIED UST                                                                                                                  
                         REGULATORY                                                                                                                     
                         REQUIREMENTS.                                                                                                                  
42 U.S.C. 6992(d) (2).  NONCOMPLIANCE W/            1988  25,000...........         456.7/353.5  5,000............  30,000...........  27,500           
                         MEDICAL WASTE                                                                                                                  
                         TRACKING ACT                                                                                                                   
                         ASSESSED THRU ADMIN                                                                                                            
                         ORDER.                                                                                                                         
42 U.S.C. 6992d(a) (4)  NONCOMPLIANCE W/            1988  25,000...........         456.7/353.5  5,000............  30,000...........  27,500           
                         MEDICAL WASTE                                                                                                                  
                         TRACKING ACT ADMIN                                                                                                             
                         ORDER.                                                                                                                         
42 U.S.C. 6992d(d)....  MEDICAL WASTE               1988  25,000...........         456.7/353.5  5,000............  30,000...........  27,500           
                         TRACKING ACT                                                                                                                   
                         VIOLATIONS--JUDICIAL                                                                                                           
                         PENALTY.                                                                                                                       
42 U.S.C. 7413(b).....  CLEAN AIR ACT/              1977  25,000...........         456.7/181.8  40,000...........  65,000...........  27,500           
                         VIOLATIONS/OWNERS &                                                                                                            
                         OPS OF STATIONARY                                                                                                              
                         AIR POLLUTION                                                                                                                  
                         SOURCES--JUDICIAL                                                                                                              
                         PENALTIES.                                                                                                                     
42 U.S.C. 7413(d)(1)..  CLEAN AIR ACT/              1977  25,000/200,000...         456.7/181.8  40,000/300,000...  65,000/300,000...  27,500/220,000   
                         STATIONARY AIR                                                                                                                 
                         POLLUTION SOURCES--                                                                                                            
                         ADMINISTRATIVE                                                                                                                 
                         PENALTIES PER                                                                                                                  
                         VIOLATION AND                                                                                                                  
                         MAXIMUM.                                                                                                                       
42 U.S.C. 7413(d)(3)..  CLEAN AIR ACT/MINOR         1990  5,000............         456.7/389.1  1,000............  6,000............  5,500            
                         VIOLATIONS/                                                                                                                    
                         STATIONARY AIR                                                                                                                 
                         POLLUTION SOURCES--                                                                                                            
                         FIELD CITATIONS.                                                                                                               
42 U.S.C. 7524(a).....  TAMPERING OR                1977  2,500............         456.7/181.8  2,000............  6,500............  2,750            
                         MANUFACTURE/SALE OF                                                                                                            
                         DEFEAT DEVICES IN                                                                                                              
                         VIOLATION OF                                                                                                                   
                         7522(a)(3)(A) OR                                                                                                               
                         (a)(3)(B)--BY                                                                                                                  
                         PERSONS.                                                                                                                       
42 U.S.C. 7524(a).....  VIOLATION OF 7522           1990  25,000...........         456.7/389.1  5,000............  30,000...........  27,500           
                         (a)(3)(A) OR                                                                                                                   
                         (a)(3)(B)--BY                                                                                                                  
                         MANUFACTURERS OR                                                                                                               
                         DEALERS; ALL                                                                                                                   
                         VIOLATIONS OF                                                                                                                  
                         7522(a) (1), (2),                                                                                                              
                         (4), & (5) BY ANYONE.                                                                                                          
42 U.S.C. 7524(c).....  ADMINISTRATIVE              1990  200,000..........         456.7/389.1  30,000...........  230,000..........  220,000          
                         PENALTIES AS SET IN                                                                                                            
                         7524(a) & 7545(d)                                                                                                              
                         WITH A MAXIMUM                                                                                                                 
                         ADMINISTRATIVE                                                                                                                 
                         PENALTY.                                                                                                                       
42 U.S.C. 7545(d).....  VIOLATIONS OF FUELS         1990  25,000...........         456.7/389.1  5,000............  30,000...........  27,500           
                         REGULATIONS.                                                                                                                   
42 U.S.C.               SUPERFUND AMEND. &          1986  25,000...........         456.7/389.1  10,000...........  35,000...........  27,500           
 9604(e)(5)(B).          REAUTHORIZATION ACT/                                                                                                           
                         NONCOMPLIANCE W/                                                                                                               
                         REQUEST FOR INFO OR                                                                                                            
                         ACCESS.                                                                                                                        
42 U.S.C. 9606(b).....  SUPERFUND/WORK NOT          1986  25,000...........         456.7/389.1  10,000...........  35,000...........  27,500           
                         PERFORMED W/                                                                                                                   
                         IMMINENT,                                                                                                                      
                         SUBSTANTIAL                                                                                                                    
                         ENDANGERMENT.                                                                                                                  

[[Page 69363]]

                                                                                                                                                        
42 U.S.C. 9609(a) &     SUPERFUND/ADMIN.            1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
 (b).                    PENALTY VIOLATIONS                                                                                                             
                         UNDER 42 U.S.C.                                                                                                                
                         SECT. 9603, 9608, OR                                                                                                           
                         9622+.                                                                                                                         
42 U.S.C. 9609(b).....  SUPERFUND/ADMIN.            1986  75,000...........         456.7/327.9  30,000...........  105,000..........  82,500           
                         PENALTY VIOLATIONS--                                                                                                           
                         SUBSEQUENT.                                                                                                                    
42 U.S.C. 9609(c).....  SUPERFUND/CIVIL             1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
                         JUDICIAL PENALTY/                                                                                                              
                         VIOLATIONS OF SECT.                                                                                                            
                         9603, 9608, 9622.                                                                                                              
42 U.S.C. 9609(c).....  SUPERFUND/CIVIL             1986  75,000...........         456.7/327.9  30,000...........  105,000..........  82,500           
                         JUDICIAL PENALTY/                                                                                                              
                         SUBSEQUENT                                                                                                                     
                         VIOLATIONS OF SECT.                                                                                                            
                         9603, 9608, 9622.                                                                                                              
42 U.S.C. 11045(a) &    EMERGENCY PLANNING          1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
 (b) (1), (2) & (3).     AND COMMUNITY RIGHT-                                                                                                           
                         T0-KNOW ACT CLASS I                                                                                                            
                         & II ADMINISTRATIVE                                                                                                            
                         AND CIVIL PENALTIES.                                                                                                           
42 U.S.C. 11045(b) (2)  EPCRA CLASS I & II          1986  75,000...........         456.7/327.9  30,000...........  105,000..........  82,500           
 & (3).                  ADMINISTRATIVE AND                                                                                                             
                         CIVIL PENALTIES--                                                                                                              
                         SUBSEQUENT                                                                                                                     
                         VIOLATIONS.                                                                                                                    
42 U.S.C. 11045(c)(1).  EPCRA CIVIL AND             1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
                         ADMINISTRATIVE                                                                                                                 
                         REPORTING PENALTIES                                                                                                            
                         FOR VIOLATIONS OF                                                                                                              
                         SECTIONS 11022 OR                                                                                                              
                         11023.                                                                                                                         
42 U.S.C. 11045(c)(2).  EPCRA CIVIL AND             1986  10,000...........         456.7/327.9  4,000............  14,000...........  11,000           
                         ADMINISTRATIVE                                                                                                                 
                         REPORTING PENALTIES                                                                                                            
                         FOR VIOLATIONS OF                                                                                                              
                         SECTIONS 11021 OR                                                                                                              
                         11043(b).                                                                                                                      
42 U.S.C. 11045(d) (2)  EPCRA--FRIVOLOUS            1986  25,000...........         456.7/327.9  10,000...........  35,000...........  27,500           
 & (3).                  TRADE SECRET CLAIMS--                                                                                                          
                         CIVIL AND                                                                                                                      
                         ADMINISTRATIVE                                                                                                                 
                         PENALTIES.                                                                                                                     
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The ``inflation factor'' is the result of dividing the June 1995 CPI by the CPI for June of the year the penalty was last set or adjusted.          
\2\ The penalties must be rounded after the inflation adjustment pursuant to Public Law 101-410 Sec. 5A.                                                

    Future adjustments also be made in accordance with the statutory 
formula. Since today's inflation adjustments are being made in December 
1996, the next scheduled adjustment will cover inflation from June 1996 
to June of the year in which the next adjustment is made. The DCIA 
requires that penalties be adjusted for inflation at least once every 
four years.

Procedural Requirements

I. Administrative Procedure Act

    In accordance with 5 U.S.C. 553(b), the Administrative Procedure 
Act (``APA''), EPA generally publishes a rule in a proposed form and 
solicits public comment on it before issuing the rule in final. 
However, 5 U.S.C. 553(b)(3)(B), of the APA provides an exception to the 
public comment requirement if the agency finds good cause to omit 
advance notice and public participation. Good cause is shown when 
public comment is ``impracticable, unnecessary, or contrary to the 
public interest''.
    Accordingly, EPA finds that providing an opportunity for public 
comment prior to publication of this rule is not necessary because EPA 
is carrying out a ministerial, non-discretionary duty specified in an 
Act of Congress. This rule incorporates requirements specifically set 
forth in the DCIA requiring EPA to issue a regulation implementing 
inflation adjustments for all its civil penalty provisions by October 
23, 1996. The formula for the amount of the penalty adjustment is 
prescribed by Congress in the DCIA as well. Prior notice and 
opportunity to comment are therefore unnecessary in this case because 
these changes are not subject to the exercise of discretion by EPA. 
These technical changes, required by law, do not substantively alter 
the existing regulatory framework nor in any way affect the terms under 
which civil penalties are assessed by EPA.

II. Small Business Regulatory Enforcement Fairness Act

    Under 5 U.S.C. 801(a)(1)(A), as added by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (``SBREFA''), EPA submitted 
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 prior to publication of the rule in 
today's Federal Register. This rule is a not a ``major rule'' as 
defined by 5 U.S.C. 804(a).

III. Executive Order 12866-Regulatory Review

    Under Executive Order 12866, (58 FR 51735 (October 4, 1993)), the 
Agency must determine whether the regulatory action is ``significant'' 
and therefore subject to Office of Management and Budget (``OMB'') 
review and the requirements of the Executive Order. The Executive Order 
defines ``significant regulatory action'' as one that is likely to 
result in a rule that may:

    (1) have an annual effect on the economy of $100 million or more 
or adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) create a serious inconsistency or otherwise interfere with 
an action taken or planned by another agency;
    (3) materially alter the budgetary impact of entitlements, 
grants, user fees, or loan programs or the rights and obligations of 
recipients thereof; or
    (4) raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.


[[Page 69364]]


    EPA has determined that this rule is not a ``significant regulatory 
action'' under the terms of Executive Order 12866 and is therefore not 
subject to OMB review.

IV. 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 certain regulatory actions on State, local, and 
tribal governments and the private sector. Under sections 201, 202 and 
205 of the UMRA, EPA generally must assess effects and prepare a 
written statement of economic and regulatory alternatives analyses for 
proposed and final rules with Federal mandates, as defined by the UMRA, 
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.
    UMRA Section 201 excepts agencies from assessing effects on State, 
local or tribal governments or the private sector of rules that 
incorporate requirements specifically set forth in law. Since this rule 
incorporates requirements specifically set forth in the DCIA, EPA is 
not required to assess its regulatory effects under Section 201. 
Further, the section 202 and 205 requirements do not apply to today's 
action because they apply only to rules for which a general notice of 
proposed rulemaking is published, and such notice was not published for 
this rule since it was not required based on the finding of good cause 
contained in Section I above. Additionally, today's action contains no 
Federal mandates for State, local or tribal governments or for the 
private sector because it does not impose any enforceable duties on 
these entities.
    In addition, even if the assessment requirements of UMRA Title II 
otherwise applied to this rule, the requirements of section 203 of UMRA 
(requiring EPA to develop a small government agency plan before EPA 
establishes any regulatory requirements that may significantly or 
uniquely affect small governments, including tribal governments) would 
not apply here. This rule contains no regulatory requirements that 
might significantly or uniquely affect small governments because the 
prescribed inflation adjustments do not change a small government's 
regulatory obligations. Additionally, this rule will have a similar 
effect on all individuals and entities subject to civil monetary 
penalties.

V. Regulatory Flexibility Act

    In accordance with 5 U.S.C. 603, the Agency has determined that the 
regulation being issued today is not subject to the Regulatory 
Flexibility Act (``RFA''), which generally requires an agency to 
conduct a regulatory flexibility analysis of any significant impact the 
rule will have on a substantial number of small entities. By its terms, 
the RFA applies only to rules subject to notice-and-comment rulemaking 
requirements under the APA or any other statute. Today's rule is not 
subject to notice and comment requirements under the APA or any other 
statute because it is exempted. As discussed in Section I, while the 
rule is subject to the APA, the Agency has invoked the ``good cause'' 
exemption from the APA notice and comment requirements.
    The Agency nonetheless has assessed the potential of this rule to 
adversely impact small entities. This rule contains no regulatory 
requirements that might significantly or uniquely affect small entities 
because the prescribed inflation adjustments have similar effect on all 
entities subject to civil monetary penalties and does not substantively 
alter the existing regulatory framework.

VI. Paperwork Reduction Act

    This action contains no reporting or record keeping requirements 
for any non-federal persons or entities and consequently is not subject 
to the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.

List of Subjects

40 CFR Part 19

    Environmental protection, Administrative practice and procedure, 
Penalties.

40 CFR Part 27

    Administrative practice and procedure, Assessments, False claims, 
False statements, Penalties.

    Dated: December 20, 1996.
Carol M. Browner,
Administrator.
    For the reasons set out in the preamble, title 40, chapter I of 
the Code of Federal Regulations is amended by adding a new part 19 
as follows:

    1. By adding a new part 19 to read as follows:

PART 19--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION

Sec.
19.1  Applicability.
19.2  Effective Date.
19.3  [Reserved].
19.4  Penalty Adjustment and Table.

    Authority: Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note; 
Pub. L. 104-134, 110 Stat. 1321, 31 U.S.C. 3701 note.

PART 19--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION


Sec. 19.1  Applicability.

    This part applies to each statutory provision under the laws 
administered by the Environmental Protection Agency concerning the 
maximum civil monetary penalty which may be assessed in either civil 
judicial or administrative proceedings.


Sec. 19.2  Effective Date.

    The increased penalty amounts set forth in this rule apply to all 
violations under the applicable statutes and regulations which occur 
after January 30, 1997.


Sec. 19.3  [Reserved].


Sec. 19.4  Penalty Adjustment and Table.

    The adjusted statutory penalty provisions and their maximum 
applicable amounts are set out in Table 1. The last column in the table 
provides the newly effective maximum penalty amounts.

                     Table 1 of Section 19.4.--Civil Monetary Penalty Inflation Adjustments                     
----------------------------------------------------------------------------------------------------------------
        U.S. Code citation               Civil monetary penalty description         New maximum  penalty amount 
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 136(1)..................  FEDERAL INSECTICIDE, FUNGICIDE, & RODENTICIDE  $5,500                        
                                    ACT CIVIL PENALTY--GENERAL--COMMERCIAL                                      
                                    APPLICATORS, ETC.                                                           
7 U.S.C. 136(2)..................  FEDERAL INSECTICIDE, FUNGICIDE, & RODENTICIDE  550/1,000                     
                                    ACT CIVIL PENALTY--PRIVATE APPLICATORS--                                    
                                    FIRST AND SUBSEQUENT OFFENSES OR VIOLATIONS.                                
15 U.S.C. 2615...................  TOXIC SUBSTANCES CONTROL ACT CIVIL PENALTY...  27,500                        
15 U.S.C. 2647(a)................  ASBESTOS HAZARD EMERGENCY RESPONSE ACT CIVIL   5,500                         
                                    PENALTY.                                                                    
31 U.S.C. 3802(a)(1).............  PROGRAM FRAUD CIVIL REMEDIES ACT/VIOLATION     5,500                         
                                    INVOLVING FALSE CLAIM.                                                      

[[Page 69365]]

                                                                                                                
31 U.S.C. 3802(a)(2).............  PROGRAM FRAUD CIVIL REMEDIES ACT/VIOLATION     5,500                         
                                    INVOLVING FALSE STATEMENT.                                                  
33 U.S.C. 1319(d)................  CLEAN WATER ACT VIOLATION/CIVIL JUDICIAL       27,500                        
                                    PENALTY.                                                                    
33 U.S.C. 1319(g)(2)(A)..........  CLEAN WATER ACT VIOLATION/ADMINISTRATIVE       11,000/27,500                 
                                    PENALTY PER VIOLATION AND MAXIMUM.                                          
33 U.S.C. 1319(g)(2)(B)..........  CLEAN WATER ACT VIOLATION/ADMINISTRATIVE       11,000/137,500                
                                    PENALTY PER VIOLATION AND MAXIMUM.                                          
33 U.S.C. 1321(b)(6)(B)(I).......  CLEAN WATER ACT VIOLATION/ADMIN PENALTY OF     11,000/27,500                 
                                    SEC 311(B)(3)&(J) PER VIOLATION AND MAXIMUM.                                
33 U.S.C. 1321(b)(6)(B)(ii)......  CLEAN WATER ACT VIOLATION/ADMIN PENALTY OF     11,000/137,500                
                                    SEC 311(B)(3)&(J) PER VIOLATION AND MAXIMUM.                                
33 U.S.C. 1321(b)(7)(A)..........  CLEAN WATER ACT VIOLATION/CIVIL JUDICIAL       11,000 or 1,100 per barrel or 
                                    PENALTY OF SEC 311(b)(3)--PER VIOLATION PER    unit                         
                                    DAY OR PER BARREL OR UNIT.                                                  
33 U.S.C. 1321(b)(7)(B)..........  CLEAN WATER ACT VIOLATION/CIVIL JUDICIAL       27,500                        
                                    PENALTY OF SEC 311(c)&(e)(1)(B).                                            
33 U.S.C. 1321(b)(7)(C)..........  CLEAN WATER ACT VIOLATION/CIVIL JUDICIAL       27,500                        
                                    PENALTY OF SEC 311(j).                                                      
33 U.S.C. 1321(b)(7)(D)..........  CLEAN WATER ACT VIOLATION/MINIMUM CIVIL        11,000 or 3,300               
                                    JUDICIAL PENALTY OF SEC 311(b)(3)--PER        per barrel or unit            
                                    VIOLATION OR PER BARREL/UNIT.                                               
33 U.S.C. 1414b(d)...............  MARINE PROTECTION, RESEARCH & SANCTUARIES ACT  660                           
                                    VIOL SEC 104b(d).                                                           
33 U.S.C. 1415(a)................  MARINE PROTECTION RESEARCH AND SANCTUARIES     55,000/137,500                
                                    ACT VIOLATIONS--FIRST AND SUBSEQUENT                                        
                                    VIOLATIONS.                                                                 
42 U.S.C. 300g-3(b)..............  SAFE DRINKING WATER ACT/CIVIL JUDICIAL         27,500                        
                                    PENALTY OF SEC 1414(b).                                                     
42 U.S.C. 300g-3(c)..............  SAFE DRINKING WATER ACT/CIVIL JUDICIAL         27,500                        
                                    PENALTY OF SEC 1414(c).                                                     
42 U.S.C. 300g-3(g)(3)(A)........  SAFE DRINKING WATER ACT/CIVIL JUDICIAL         27,500                        
                                    PENALTY OF SEC. 1414(g)(3)(a).                                              
42 U.S.C. 300g-3(g)(3)(B)........  SAFE DRINKING WATER ACT/MAXIMUM                5,500                         
                                    ADMINISTRATIVE PENALTY PER SEC.                                             
                                    1414(g)(3)(B).                                                              
42 U.S.C. 300h-2(b)(1)...........  CIVIL JUDICIAL PENALTY/VIOLATIONS OF REQS--    27,500                        
                                    UNDERGROUND INJECTION CONTROL (UIC).                                        
42 U.S.C. 300h-2(c)(1)...........  CIVIL ADMIN PENALTY/VIOLATIONS OF UIC REQS--   11,000 / 137,500              
                                    PER VIOLATION AND MAXIMUM.                                                  
42 U.S.C. 300h-2(c)(2)...........  CIVIL ADMIN PENALTY/VIOLATIONS OF UIC REQS--   11,000                        
                                    PER VIOLATION AND MAXIMUM.                                                  
42 U.S.C. 300h-3(c)(1)...........  VIOLATION/OPERATION OF NEW UNDERGROUND         5,500                         
                                    INJECTION WELL.                                                             
42 U.S.C. 300h-3(c)(2)...........  WILLFUL VIOLATION/OPERATION OF NEW             11,000                        
                                    UNDERGROUND INJECTION WELL.                                                 
42 U.S.C. 300i-1(b)..............  ATTEMPTING TO OR TAMPERING WITH PUBLIC WATER   22,000 / 55,000               
                                    SYSTEM/CIVIL JUDICIAL PENALTY.                                              
42 U.S.C. 300j(e)(2).............  FAILURE TO COMPLY W/ORDER ISSUED UNDER SEC.    2,750                         
                                    1441(c)(1).                                                                 
42 U.S.C. 300j-4(c)..............  REFUSAL TO COMPLY WITH REQS. OF SEC. 1445(a)   27,500                        
                                    OR (b).                                                                     
42 U.S.C. 300j-23(d).............  VIOLATIONS/SECTION 1463(b)--FIRST OFFENSE/     5,500 / 55,000                
                                    REPEAT OFFENSE.                                                             
42 U.S.C. 6928(a)(3).............  RESOURCE CONSERVATION & RECOVERY ACT/          27,500                        
                                    VIOLATION SUBTITLE C ASSESSED PER ORDER.                                    
42 U.S.C. 6928(c)................  RES. CONS. & REC. ACT/CONTINUED NONCOMPLIANCE  27,500                        
                                    OF COMPLIANCE ORDER.                                                        
42 U.S.C. 6928(g)................  RESOURCE CONSERVATION & RECOVERY ACT/          27,500                        
                                    VIOLATION SUBTITLE C.                                                       
42 U.S.C. 6928(h)(2).............  RES. CONS. & REC. ACT/NONCOMPLIANCE OF         27,500                        
                                    CORRECTIVE ACTION ORDER.                                                    
42 U.S.C. 6934(e)................  RES. CONS. & REC. ACT/NONCOMPLIANCE WITH       5,500                         
                                    SECTION 3013 ORDER.                                                         
42 U.S.C. 6973(b)................  RES. CONS. & REC. ACT/VIOLATIONS OF            5,500                         
                                    ADMINISTRATIVE ORDER.                                                       
42 U.S.C. 6991e(a)(3)............  RES. CONS. & REC. ACT/NONCOMPLIANCE WITH UST   27,500                        
                                    ADMINISTRATIVE ORDER.                                                       
42 U.S.C. 6991e(d)(1)............  RES. CONS. & REC. ACT/FAILURE TO NOTIFY OR     11,000                        
                                    SUBMIT FALSE INFO.                                                          
42 U.S.C. 6991e(d)(2)............  VIOLATIONS OF SPECIFIED UST REGULATORY         11,000                        
                                    REQUIREMENTS.                                                               
42 U.S.C. 6992d(a)(2)............  NONCOMPLIANCE W/MEDICAL WASTE TRACKING ACT     27,500                        
                                    ASSESSED THRU ADMIN ORDER.                                                  
42 U.S.C. 6992d(a)(4)............  NONCOMPLIANCE W/MEDICAL WASTE TRACKING ACT     27,500                        
                                    ADMINISTRATIVE ORDER.                                                       
42 U.S.C. 6992d(d)...............  VIOLATIONS OF MEDICAL WASTE TRACKING ACT--     27,500                        
                                    JUDICIAL PENALTIES.                                                         
42 U.S.C. 7413(b)................  CLEAN AIR ACT/VIOLATION/OWNERS & OPS OF        27,500                        
                                    STATIONARY AIR POLLUTION SOURCES--JUDICIAL                                  
                                    PENALTIES.                                                                  
42 U.S.C. 7413(d)(1).............  CLEAN AIR ACT/VIOLATION/OWNERS & OPS OF        27,500/220,000                
                                    STATIONARY AIR POLLUTION SOURCES--                                          
                                    ADMINISTRATIVE PENALTIES PER VIOLATION & MAX.                               
42 U.S.C. 7413(d)(3).............  CLEAN AIR ACT/MINOR VIOLATIONS/STATIONARY AIR  5,500                         
                                    POLLUTION SOURCES--FIELD CITATIONS.                                         
42 U.S.C. 7524(a)................  TAMPERING OR MANUFACTURE/SALE OF DEFEAT        2,750                         
                                    DEVICES IN VIOLATION OF 7522(a)(3)(A) OR                                    
                                    (a)(3)(B)--BY PERSONS.                                                      
42 U.S.C. 7524(a)................  VIOLATION OF 7522(a)(3)(A) OR (a)(3)(B)--BY    27,500                        
                                    MANUFACTURERS OR DEALERS; ALL VIOLATIONS OF                                 
                                    7522(a)(1), (2), (4), & (5) BY ANYONE.                                      
42 U.S.C. 7524(c)................  ADMINISTRATIVE PENALTIES AS SET IN 7524(a) &   220,000                       
                                    (7545(d) WITH A MAXIMUM ADMINISTRATIVE                                      
                                    PENALTY.                                                                    
42 U.S.C. 7545(d)................  VIOLATIONS OF FUELS REGULATIONS..............  27,500                        
42 U.S.C. 9604(e)(5)(B)..........  SUPERFUND AMEND. & REAUTHORIZATION ACT/        27,500                        
                                    NONCOMPLIANCE W/REQUEST FOR INFO OR ACCESS.                                 

[[Page 69366]]

                                                                                                                
42 U.S.C. 9606(b)................  SUPERFUND/WORK NOT PERFORMED W/IMMINENT,       27,500                        
                                    SUBSTANTIAL ENDANGERMENT.                                                   
42 U.S.C. 9609(a) & (b)..........  SUPERFUND/ADMIN. PENALTY VIOLATIONS UNDER 42   27,500                        
                                    U.S.C. SECT. 9603, 9608, OR 9622.                                           
42 U.S.C. 9609(b)................  SUPERFUND/ADMIN. PENALTY VIOLATIONS--          82,500                        
                                    SUBSEQUENT.                                                                 
42 U.S.C. 9609(c)................  SUPERFUND/CIVIL JUDICIAL PENALTY/VIOLATIONS    27,500                        
                                    OF SECT. 9603, 9608, 9622.                                                  
42 U.S.C. 9609(c)................  SUPERFUND/CIVIL JUDICIAL PENALTY/SUBSEQUENT    82,500                        
                                    VIOLATIONS OF SECT. 9603, 9608, 9622.                                       
42 U.S.C. 11045(a) & (b)(1), (2)   EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-     27,500                        
 & (3).                             KNOW ACT CLASS I & II ADMINISTRATIVE AND                                    
                                    CIVIL PENALTIES.                                                            
42 U.S.C. 11045(b) & (2)(3)......  EPCRA CLASS I & II ADMINISTRATIVE AND CIVIL    82,500                        
                                    PENALTIES--SUBSEQUENT VIOLATIONS.                                           
42 U.S.C. 11045(c)(1)............  EPCRA CIVIL AND ADMINISTRATIVE REPORTING       27,500                        
                                    PENALTIES FOR VIOLATIONS OF SECTIONS 11022                                  
                                    OR 11023.                                                                   
42 U.S.C. 11045(c)(2)............  EPCRA CIVIL AND ADMINISTRATIVE REPORTING       11,000                        
                                    PENALTIES FOR VIOLATIONS OF SECTIONS 11021                                  
                                    OR 11043(b).                                                                
42 U.S.C. 11045(d) & (2)(3)......  EPCRA--FRIVOLOUS TRADE SECRET CLAIMS--CIVIL    27,500                        
                                    AND ADMINISTRATIVE PENALTIES.                                               
----------------------------------------------------------------------------------------------------------------

PART 27--[AMENDED]

    2. The authority citation for part 27 is revised to read as 
follows:

    Authority: 31 U.S.C. 3801-3812; Pub. L. 101-410, 104 Stat. 890, 
28 U.S.C. 2461 note; Pub. L. 104-134, 110 Stat. 1321, 31 U.S.C. 3701 
note.

    4. Section 27.3 is amended by revising paragraphs (a)(1) and (b)(1) 
to read as follows:


Sec. 27.3  Basis for civil penalties and assessments.

    (a) Claims. (1) Except as provided in paragraph (c) of this 
section, any person who makes a claim that the person knows or has 
reason to know--
    (i) Is false, fictitious, or fraudulent;
    (ii) Includes or is supported by any written statement which 
asserts a material fact which is false, fictitious, or fraudulent;
    (iii) Includes, or is supported by, any written statement that--
    (A) Omits a material fact;
    (B) Is false, fictitious, or fraudulent as a result of such 
omission; and
    (C) Is a statement in which the person making such statement has a 
duty to include such material fact; or
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed, shall be subject, in addition 
to any other remedy that may be prescribed by law, to a civil penalty 
of not more than $5,500 1 for each such claim.
---------------------------------------------------------------------------

    \1\  As adjusted in accordance with the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890), 
as amended by the Debt Collection Improvement Act of 1996 (Pub. L. 
104-134, 110 Stat. 1321).
---------------------------------------------------------------------------

* * * * *
    (b) Statements. (1) Except as provided in paragraph (c) of this 
section, any person who makes a written statement that--
    (i) The person knows or has reason to know--
    (A) Asserts a material fact which is false, factitious, or 
fraudulent; or
    (B) Is false, factitious, or fraudulent because it omits a material 
fact that the person making the statement has a duty to include in such 
statement; and
    (ii) Contains, or is accompanied by, an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement, shall be subject, in addition to any other remedy that may 
be prescribed by law, to a civil penalty of not more than $5,500 2 
for each such statement.
---------------------------------------------------------------------------

    \2\  As adjusted in accordance with the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890), 
as amended by the Debt Collection Improvement Act of 1996 (Pub. L. 
104-134, 110 Stat. 1321).
---------------------------------------------------------------------------

* * * * *
[FR Doc. 96-32972 Filed 12-30-96; 8:45 am]
BILLING CODE 6560-50-P