[Federal Register Volume 69, Number 206 (Tuesday, October 26, 2004)]
[Rules and Regulations]
[Pages 62393-62394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23899]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 69, No. 206 / Tuesday, October 26, 2004 / 
Rules and Regulations

[[Page 62393]]



NUCLEAR REGULATORY COMMISSION

10 CFR Part 2

RIN 3150-AH55


Adjustment of Civil Penalties for Inflation

AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending its 
regulations to adjust the maximum Civil Monetary Penalties (CMPs) it 
can assess under statutes within the jurisdiction of the NRC. These 
changes are mandated by Congress in the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended by the Debt Collection 
Improvement Act of 1996. The NRC's Rules of Practice are amended by 
adjusting the maximum CMP for a violation of the Atomic Energy Act of 
1954, as amended, (AEA) or any regulation or order issued under the AEA 
from $120,000 to $130,000 per violation per day.

EFFECTIVE DATE: November 26, 2004.

FOR FURTHER INFORMATION CONTACT: Shelly D. Cole, Office of the General 
Counsel, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, 
telephone (301) 415-2549; e-mail [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990, as 
amended, requires that the head of each agency adjust by regulation the 
CMPs within the jurisdiction of the agency for inflation at least once 
every four years. The NRC's last adjustment to the CMPs within its 
jurisdiction occurred on November 3, 2000 (See 65 FR 59270; October 4, 
2000). Thus, another inflation adjustment must be made by November 3, 
2004.
    The inflation adjustment is to be determined by increasing the 
maximum CMPs by the percentage that the Consumer Price Index (CPI) for 
the month of June of the calendar year preceding the adjustment exceeds 
the CPI for the month of June of the last calendar year in which the 
amount of such penalty was last adjusted. For the purposes of this 
adjustment, applying this formula results in a seven percent increase 
to the maximum CMPs. In the case of penalties greater than $1,000, but 
less than or equal to $10,000, inflation adjustment increases are to be 
rounded to the nearest multiple of $1,000. Increases are to be rounded 
to the nearest multiple of $10,000 in the case of penalties greater 
than $100,000 but less than or equal to $200,000.

II. Discussion

    Section 234 of the AEA limits civil penalties for violations of the 
Atomic Energy Act to $100,000 per day per violation. In 1996, under the 
Debt Collection Improvement Act (DCIA), the NRC adjusted this figure to 
$110,000. The DCIA also amended the Federal Civil Penalties Inflation 
Adjustment Act of 1990 to require that the head of each agency adjust 
the CMPs within the jurisdiction of the agency for inflation at least 
once every four years. Therefore, in 2000, the NRC adjusted the maximum 
CMPs to $120,000 per day per violation. The NRC is required to adjust 
the CMPs within its jurisdiction again this year. After this mandatory 
adjustment for inflation, the adjusted maximum CMP for a violation of 
the AEA or any regulation or order issued under the AEA will be 
$130,000 per day per violation (rounding the amount of the inflation 
adjustment increase to the nearest multiple of $10,000). Thus, the NRC 
is amending Title 10 of the Code of Federal Regulations (10 CFR) 2.205 
to reflect a new maximum CMP under the AEA in the amount of $130,000 
per day per violation. The amended maximum CMP applies only to 
violations that occur after the effective date of this regulation.
    Monetary penalties under the Program Fraud Civil Remedies Act, 31 
United States Code (U.S.C.) 3801, 3802, and the NRC's implementing 
regulations at 10 CFR 13.3(a)(1) and (b)(1), are currently limited to 
$6,000.
    A seven percent increase, when rounded to the nearest multiple of 
$1000, as required by section 5 of the Federal Civil Penalties 
Inflation Adjustment Act of 1990, does not result in an adjustment to 
the maximum CMP. Thus, the maximum CMP will remain at $6,000 for each 
false statement or claim under the Program Fraud Civil Remedies Act.
    The Commission has no discretion to set alternative levels of 
adjusted civil penalties because the amount of inflation adjustment 
must be calculated by a formula established by statute. Conforming 
changes to the NRC Enforcement Policy (NUREG-1600) published in the 
Federal Register on May 1, 2000 (65 FR 25368), will be made and 
published in a notice accompanying this rule.

III. Procedural Background

    This final rule has been issued without prior public notice or 
opportunity for public comment. The Administrative Procedure Act (5 
U.S.C. 553(b)(B)) does not require an agency to use the public notice 
and comment process ``when the agency for good cause finds (and 
incorporates the finding and a brief statement of reasons therefor in 
the rules issued) that notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest.'' In 
this instance, the NRC finds, for good cause, that solicitation of 
public comment on this final rule is unnecessary and impractical. 
Congress has required the NRC to adjust the CMPs within NRC 
jurisdiction for inflation at least once every four years, and provided 
no discretion regarding the substance of the amendments. The NRC is 
required only to perform ministerial computations to determine the 
inflation adjustment to the CMPs.

IV. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, Pub. 
L. 104-113, requires that Federal agencies use technical standards 
developed by or adopted by voluntary consensus standards bodies unless 
the use of such a standard is inconsistent with applicable law or 
otherwise impractical. There are no consensus standards that apply to 
the inflation adjustment requirements in this final rule. Thus, the 
provisions of the Act do not apply to this rulemaking.

[[Page 62394]]

V. Environmental Impact: Categorical Exclusion

    The NRC has determined that this final rule is the type of action 
described as a categorical exclusion in 10 CFR 51.22(c)(1) and (2). 
Therefore, neither an environmental impact statement nor an 
environmental assessment has been prepared for this regulation. This 
action involves no policy determinations. It merely adjusts monetary 
civil penalties for inflation as required by statute.

VI. Paperwork Reduction Act Statement

    This final rule does not contain new or amended information 
collection requirements subject to the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.).

VII. Regulatory Analysis

    This final rule adjusts for inflation the maximum civil penalties 
under the AEA. The adjustments and the formula for determining the 
amount of the adjustment are mandated by Congress in 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, as 
amended (Pub. L. 104-134, 110 Stat. 1321-358, 373, codified at 28 
U.S.C. 2461 note). Congress passed that legislation on the basis of its 
findings that the power to impose monetary civil penalties is important 
to deterring violations of Federal law and furthering the policy goals 
of Federal laws and regulations. Congress has also found that inflation 
has diminished the impact of these penalties and their effect. The 
principal purposes of this legislation are to provide for adjustment of 
civil monetary penalties for inflation, maintain the deterrent effect 
of civil monetary penalties, and promote compliance with the law. Thus, 
these are anticipated impacts of implementation of the mandatory 
provisions of the legislation. Direct monetary impacts fall only upon 
licensees or other persons subjected to NRC enforcement.

VIII. Small Business Regulatory Enforcement Fairness Act

    In accordance with the Small Business Regulatory Enforcement 
Fairness Act of 1996, the NRC has determined that this action is not a 
major rule and has verified this determination with the Office of 
Information and Regulatory Affairs of OMB.

IX. Backfit Analysis

    The NRC has determined that these amendments do not involve any 
provisions which would impose backfits as defined in 10 CFR Chapter 1; 
therefore, a backfit analysis need not be prepared.

List of Subjects in 10 CFR Part 2

    Administrative practice and procedure, Antitrust, Byproduct 
material, Classified information, Environmental protection, Nuclear 
materials, Nuclear power plants and reactors, Penalties, Sex 
discrimination, Source material, Special nuclear material, Waste 
treatment and disposal.


0
For the reasons set out above and under the authority of the AEA; the 
Energy Reorganization Act of 1974, as amended; the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended; and 5 U.S.C. 
552 and 553; the NRC is adopting the following amendments to 10 CFR 
part 2.

PART 2--RULES OF PRACTICE FOR DOMESTIC LICENSING PROCEEDINGS AND 
ISSUANCES OF ORDERS

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

    Authority: Secs. 161, 181, 68 Stat. 948, 953, as amended (42 
U.S.C. 2201, 2231); sec. 191, as amended, Pub. L. 87-615, 76 Stat. 
409 (42 U.S.C. 2241); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 
5841); 5 U.S.C. 552; sec. 1704, 112 Stat. 2750 (44 U.S.C. 3504 
note).
    Section 2.101 also issued under secs. 53, 62, 63, 81, 103, 104, 
105, 68 Stat. 930, 932, 933. 935, 936, 937, 938, as amended (42 
U.S.C. 2073, 2092, 2093, 2111, 2133, 2134, 2135); sec. 114(f); Pub. 
L. 97-425, 96 Stat. 2213, as amended (42 U.S.C. 10143(0); sec. 102, 
Pub. L. 91-190, 83 Stat. 853, as amended (42 U.S.C. 4332); sec. 301, 
88 Stat. 1248 (42 U.S.C. 5871). Section 2.102, 2.103, 2.104, 2.105, 
2.321 also issued under secs. 102, 163, 104, 105, 183i, 189, 68 
Stat. 936, 937, 938, 954, 955, as amended (42 U.S.C. 2132, 2133, 
2134, 2135, 2233, 2239). Section 2.105 also issued under Pub. L. 97-
415, 96 Stat. 2073 (42 U.S.C. 2239). Sections 2.200-2.206 also 
issued under secs. 161 b. i, o, 182, 186, 234, 68 Stat. 948-951, 
955, 83 Stat. 444, as amended (42 U.S.C. 2201(b), (i), (o), 2236, 
2282); sec. 206, 88 Stat. 1246 (42 U.S.C. 5846). Section 2.205(j) 
also issued under Pub. L. 101-410, 104 Stat. 90, as amended by 
section 3100(s), Pub. L. 104-134, 110 Stat. 1321-373 (28 U.S.C. 2461 
note). Subpart C also issued under sec. 189, 68 Stat. 955 (42 U.S.C. 
2239). Sections 2.600-2.606 also issued under sec. 102, Pub. L. 91-
190, 83 Stat. 853, as amended (42 U.S.C. 4332). Section 2.700a also 
issued under 5 U.S.C. 554. Sections 2.343, 2.346, 2.754, 2.712, also 
issued under 5 U.S.C. 557. Section 2.764 also issued under secs. 
135, 141, Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 
10161). Section 2.790 also issued under sec. 103, 68 Stat. 936, as 
amended (42 U.S.C. 2133) and 5 U.S.C. 552. Sections 2.800 and 2.808 
also issued under 5 U.S.C. 553, Section 2.809 also issued under 5 
U.S.C. 553, and sec. 29, Pub, L. 85-256, 71 Stat. 579, as amended 
(42 U.S.C. 2039). Subpart K also issued under sec. 189, 68 Stat. 955 
(42 U.S.C. 2239); sec. 134, Pub. L. 97-425, 96 Stat. 2230 (42 U.S.C. 
10154). Subpart L also issued under sec. 189, 68 Stat. 955 (42 
U.S.C. 2239). Subpart M also issued under sec. 184 (42. U.S.C. 2234) 
and sec. 189, 68 Stat. 955 (42 U.S.C. 2239). Subpart N also issued 
under sec. 189, 68 Stat. 955 (42 U.S.C. 2239). Appendix A also 
issued under sec. 6, Pub. L. 91-550, 84 Stat. 1473 (42 U.S.C. 2135).


0
2. In Sec.  2.205 paragraph (j) is revised to read as follows:


Sec.  2.205  Civil Penalties.

* * * * *
    (j) Amount. A civil monetary penalty imposed under Section 234 of 
the Atomic Energy Act of 1954, as amended, or any other statute within 
the jurisdiction of the Commission that provides for the imposition of 
a civil penalty in an amount equal to the amount set forth in Section 
234, may not exceed $130,000 for each violation. If any violation is a 
continuing one, each day of such violation shall constitute a separate 
violation for the purpose of computing the applicable civil penalty.

    Dated in Rockville, Maryland, this 12th day of October, 2004.

    For the Nuclear Regulatory Commission.
Luis A. Reyes,
Executive Director for Operations.
[FR Doc. 04-23899 Filed 10-25-04; 8:45 am]
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