[Federal Register Volume 72, Number 172 (Thursday, September 6, 2007)]
[Rules and Regulations]
[Pages 51194-51199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17170]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 
223, 224, 225, 228, 229, 230, 231, 232, 233, 234, 235, 236, 238, 
239, 240, 241, and 244

[Docket No. FRA-2004-17529; Notice No. 5]
RIN 2130-AB66


Inflation Adjustment of Ordinary Maximum Civil Monetary Penalty 
for a Violation of a Federal Railroad Safety Law or Federal Railroad 
Administration Safety Regulation

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Final rule.

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SUMMARY: To comply with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, FRA is adjusting the ordinary maximum penalty 
that it will apply when assessing a civil penalty for a violation of 
railroad safety statutes and regulations under its authority. In 
particular, FRA is increasing the ordinary maximum civil penalty from 
$11,000 to $16,000.

EFFECTIVE DATE: October 9, 2007.

FOR FURTHER INFORMATION CONTACT: Sarah Grimmer, Trial Attorney, Office 
of Chief Counsel, FRA, 1120 Vermont Avenue, NW., Mail Stop 10, 
Washington, DC 20590 (telephone 202-493-6390), [email protected].

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act of 1990 (Inflation Act) requires that an agency adjust 
by regulation each maximum civil monetary penalty (CMP), or range of 
minimum and maximum CMPs, within that agency's jurisdiction by October 
23, 1996 and adjust those penalty amounts once every four years 
thereafter to reflect inflation. Public Law 101-410, 104 Stat. 890, 28 
U.S.C. 2461, note, as amended by Section 31001(s)(1) of the Debt 
Collection Improvement Act of 1996, Public Law 104-134, 110 Stat. 1321-
373, April 26, 1996. Congress recognized the important role that CMPs 
play in deterring violations of Federal law and regulations and 
realized that inflation has diminished the impact of these penalties. 
In the Inflation Act,

[[Page 51195]]

Congress found a way to counter the effect that inflation has had on 
the CMPs by having the agencies charged with enforcement responsibility 
administratively adjust the CMPs.

Calculation of the Adjustment

    Under the Inflation Act, the inflation adjustment is to be 
calculated by increasing the maximum CMP, or the range of minimum and 
maximum CMPs, by the percentage that the Consumer Price Index (CPI) for 
the month of June of the calendar year preceding the adjustment (here, 
June 2006) exceeds the CPI for the month of June of the last calendar 
year in which the amount of such penalty was last set or adjusted 
(here, June 1998 for the ordinary maximum). The Inflation Act also 
specifies that the amount of the adjustment must be rounded to the 
nearest multiple of $100 for a penalty between $100 and $1,000, or to 
the nearest multiple of $5,000 for a penalty of more than $10,000 and 
less than or equal to $100,000. The first adjustment may not exceed an 
increase of ten percent. FRA utilized Bureau of Labor Statistics data 
to calculate adjusted CMP amounts.
    FRA is authorized as the delegate of the Secretary of 
Transportation to enforce the Federal railroad safety statutes and 
regulations, including the civil penalty provisions at 49 U.S.C. ch. 
213. 49 CFR 1.49; 49 U.S.C. ch. 201-213. FRA currently has 28 
regulations that contain provisions that reference its authority to 
impose civil penalties if a person violates any requirement in the 
pertinent portion of a statute or the Code of Federal Regulations. In 
this final rule, FRA is amending each of those separate regulatory 
provisions and the corresponding footnotes in each Schedule of Civil 
Penalties to raise the ordinary maximum CMP to $16,000.
    With the exception of the penalties relating to the hours of 
service laws (49 U.S.C. ch. 211), the ordinary maximum CMP for a 
violation of the rail safety laws and regulations was established by 
the Rail Safety Improvement Act of 1988, which set a $10,000 limit for 
a CMP imposed for any ordinary violation, and a $20,000 limit for a 
grossly negligent violation or a pattern of repeated violations that 
has created an imminent hazard of death or injury or caused death or 
injury (aggravated violations). In 1998, after applying the adjustment 
calculation in the Inflation Act, FRA determined that the ordinary 
maximum CMP for any single violation needed to be increased to $11,000 
and that the maximum CMP for aggravated violations needed to be 
increased to $22,000. FRA amended each of its regulations by final rule 
to reflect the increased CMPs. 63 FR 11618.
    The Rail Safety Enforcement and Review Act (RSERA) in 1992 
increased the range of the minimum and maximum civil penalties for a 
violation of the hours of service laws, making these minimum and 
maximum penalty amounts uniform with those of FRA's other regulatory 
provisions. Before enactment of RSERA, the penalty was ``up to $1,000 
per violation.'' RSERA increased the minimum civil penalty for an hours 
of service violation to $500, the ordinary maximum civil penalty to 
$10,000, and the aggravated maximum to $20,000. By applying the same 
adjustment calculation using the 1992 CPI, the ordinary and aggravated 
maximum penalties for violations of the hours of service laws were 
raised to equal those of the other rail safety laws and regulations: 
$11,000 and $22,000. In 1998, FRA had applied the adjustment 
calculation in the Inflation Act to the minimum CMP and had determined 
that it would not need to be increased. In 2004, FRA by applying the 
adjustment calculation using the June 2003 CPI determined that the 
minimum CMP should be increased from $500 to $550. FRA also determined 
in 2004 under the same rationale that the aggravated maximum CMP should 
be increased from $22,000 to $27,000. 69 FR 30592.

Calculations To Determine Civil Monetary Penalty Updates for 2007

1. Minimum CMP

    As required, this year, FRA reevaluated the minimum CMP and 
concluded that it should remain at $550, as the next calculations show. 
The June 2006 CPI of 607.8 divided by the CPI for June 2004 of 568.2 
(since the last update was in 2004) equals an inflation factor of 
1.06969; $550 times 1.06969 equals $588. The raw inflation adjustment 
amount of $38 is rounded to the nearest multiple of 100, or zero. The 
inflation-adjusted minimum penalty is $550 plus zero, or $550. See 
appendix.

2. Aggravated Maximum CMP

    FRA also reevaluated the CMP for an aggravated violation and 
determined that it should remain at $27,000, as the following 
calculations show. The June 2006 CPI of 607.8 divided by the CPI for 
June 2004 of 568.2 (since the last update was in 2004) equals an 
inflation factor of 1.06969; $27,000 times 1.06969 equals $28,882. The 
raw inflation adjustment amount of $1,882 is rounded to the nearest 
multiple of $5,000, which is zero. The rounded raw inflation adjustment 
amount is zero. The inflation-adjusted aggravated maximum penalty 
remains $27,000.

3. Ordinary Maximum CMP

    Applying the adjustment calculation using the June 2006 CPI, FRA 
has determined that the ordinary maximum CMP should be increased from 
$11,000 to $16,000, as the next calculations show.
    The June 2006 CPI of 607.8 divided by the June 1998 CPI of 488.2 
(since the last update was in 1998) equals an inflation factor of 
1.24498; $11,000 times 1.24498 equals $13,695, or a raw inflation 
adjustment amount of $2,695, which is rounded up to the nearest 
multiple of $5,000, which is $5,000. Therefore, the ordinary maximum 
CMP should be increased by $5,000, or to $16,000. Because this is the 
second time that the ordinary maximum CMP has been adjusted under the 
Act, the ten-percent cap on the increase does not apply. This new FRA 
ordinary maximum penalty will apply to violations that occur on or 
after October 9, 2007.

Public Participation

    FRA is proceeding to a final rule without providing a notice of 
proposed rulemaking or an opportunity for public comment. The 
adjustments required by the Act are ministerial acts over which FRA has 
no discretion, making public comment unnecessary. FRA is issuing these 
amendments as a final rule applicable to all future rail safety civil 
penalty cases under its authority.

Regulatory Impact

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

    This rule has been evaluated in accordance with existing policies 
and procedures. It is not considered a significant regulatory action 
under section 3(f) of Executive Order 12866 and, therefore, was not 
reviewed by the Office of Management and Budget. This rule is not 
significant under the Regulatory Policies and Procedures of the 
Department of Transportation (44 FR 11034) because it is limited to a 
ministerial act on which the agency has no discretion. The economic 
impact of the final rule is minimal to the extent that preparation of a 
regulatory evaluation is not warranted.

B. Regulatory Flexibility Determination

    FRA certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities. Although 
this rule will apply to railroads and others that are considered small 
entities, there is no economic impact on any person who complies

[[Page 51196]]

with the Federal railroad safety laws and the regulations and orders 
issued under those laws.

C. Federalism

    This final rule will not have a substantial effect on the States, 
on the relationship between the national government and the States, or 
the distribution of power and responsibilities among the various levels 
of government. Thus, in accordance with Executive Order 13132, 
preparation of a Federalism assessment is not warranted.

D. Paperwork Reduction Act

    There are no new information collection requirements in this final 
rule.

E. Compliance With the Unfunded Mandates Reform Act of 1995

    The final rule issued today will not result in the expenditure, in 
the aggregate, of $128,100,000 or more in any one year by State, local, 
or Indian Tribal governments, or the private sector, and thus 
preparation of a statement is not required.

F. Environmental Assessment

    There are no significant environmental impacts associated with this 
final rule.

G. Energy Impact

    According to definitions set forth in Executive Order 13211, there 
will be no significant energy action as a result of the issuance of 
this final rule.

List of Subjects in 49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 
219, 220, 221, 222, 223, 224, 225, 228, 229, 230, 231, 232, 233, 
234, 235, 236, 238, 239, 240, 241, and 244

    Railroad safety, Penalties.

The Final Rule

0
In consideration of the foregoing, parts 209, 213, 214, 215, 216, 217, 
218, 219, 220, 221, 222, 223, 224, 225, 228, 229, 230, 231, 232, 233, 
234, 235, 236, 238, 239, 240, 241, and 244, of subtitle B, chapter II 
of title 49 of the Code of Federal Regulations are amended as follows:

PART 209--[AMENDED]

0
1. The authority citation for part 209 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 20111, 20112, 20114; 28 
U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  209.409  [Amended]

0
2. Section 209.409 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

Appendix A to Part 209--[Amended]

0
3. Appendix A to part 209 is amended by removing the numerical amount 
``$11,000'' in the third paragraph below the heading ``Penalty 
Schedules; Assessment of Maximum Penalties,'' and replacing it with the 
numerical amount ``$16,000''.

PART 213--[AMENDED]

0
4. The authority citation for part 213 continues to read as follows:

    Authority: 49 U.S.C. 20102-20114 and 20142; 28 U.S.C. 2461, 
note; and 49 CFR 1.49(m).


Sec.  213.15  [Amended]

0
5. Paragraph (a) of Sec.  213.15 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

PART 214--[AMENDED]

0
6. The authority citation for part 214 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 
CFR 1.49.


Sec.  214.5  [Amended]

0
7. Section 214.5 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 215--[AMENDED]

0
8. The authority citation for part 215 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 
CFR 1.49.


Sec.  215.7  [Amended]

0
9. Section 215.7 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

Appendix B to Part 215--[Amended]

0
10. Footnote 1 of Appendix B to Part 215--Schedule of Civil Penalties, 
is amended by removing the numerical amount ``$10,000'' and adding in 
its place the numerical amount ``16,000''.

PART 216--[AMENDED]

0
11. The authority citation for part 216 continues to read as follows:

    Authority: 49 U.S.C. 20102-20104, 20107, 20111, 20133, 20701-
20702, 21301-21302, 21304; 28 U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  216.7  [Amended]

0
12. Section 216.7 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 217--[AMENDED]

0
13. The authority citation for part 217 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 
CFR 1.49.


Sec.  217.5  [Amended]

0
14. Section 217.5 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 218--[AMENDED]

0
15. The authority citation for part 218 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 
CFR 1.49.


Sec.  218.9  [Amended]

0
16. Section 218.9 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

Appendix A to Part 218 [Amended]

0
17. Footnote 1 of Appendix A to Part 218 is amended by removing the 
numerical amount ``$22,000'' and adding in its place the numerical 
amount ``$27,000''.

PART 219--[AMENDED]

0
18. The authority citation for part 219 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 20140, 21301, 21304, 21311; 
28 U.S.C. 2461, note; and 49 CFR 1.49(m).


Sec.  219.9  [Amended]

0
19. Paragraph (a) of Sec.  219.9 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

PART 220--[AMENDED]

0
20. The authority citation for part 220 continues to read as follows:

    Authority: 49 U.S.C. 20102-20103, 20107, 21301-21302, 21304, 
21311; 28 U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  220.7  [Amended]

0
21. Section 220.7 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

[[Page 51197]]

PART 221--[AMENDED]

0
22. The authority citation for part 221 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 
CFR 1.49.


Sec.  221.7  [Amended]

0
23. Section 221.7 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 222--[AMENDED]

0
24. The authority citation for part 222 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 20153, 21301, 21304; 28 
U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  222.11  [Amended]

0
25. Section 222.11 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 223--[AMENDED]

0
26. The authority citation for part 223 continues to read as follows:

    Authority: 49 U.S.C. 20102-03, 20133, 20701-20702, 21301-02, 
21304; 28 U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  223.7  [Amended]

0
27. Section 223.7 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 224--[AMENDED]

0
28. The authority citation for part 224 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 20148 and 21301; 28 U.S.C. 
2461; and 49 CFR 1.49.


Sec.  224.11  [Amended]

0
29. Section 224.11 is amended by removing the amount ``$11,000'' and 
adding in its place the numerical amount ``$16,000''.

PART 225--[AMENDED]

0
30. The authority citation for part 225 continues to read as follows:

    Authority: 49 U.S.C. 103, 322(a), 20103, 20107, 20901-02, 21301, 
21302, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  225.29  [Amended]

0
31. Section 225.29 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 228--[AMENDED]

0
32. The authority citation for part 228 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 21101-21108; 28 U.S.C. 2461, 
note and 49 CFR 1.49.


Sec.  228.21  [Amended]

0
33. Section 228.21 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

Appendix A to Part 228--Requirements of the Hours of Service Act: 
Statement of Agency Policy and Interpretation

0
34. In appendix A to part 228, the ninth paragraph below the heading 
``General Provisions,'' which is entitled ``Penalty'' is amended by 
adding the following at the end of the paragraph:
* * * * *
    Penalty. * * * Effective October 9, 2007, the ordinary maximum 
penalty of $11,000 was raised to $16,000 as required under the law; 
however, the minimum penalty and the maximum penalty for a grossly 
negligent violation did not need to be adjusted.
* * * * *

PART 229--[AMENDED]

0
35. The authority citation for part 229 continues to read as follows:

    Authority:  49 U.S.C. 20102-20103, 20107, 20133, 20137-20138, 
20143, 20701-20703, 21301-21302, 21304; 28 U.S.C. 2461, note; and 49 
CFR 1.49 (c), (m).


Sec.  229.7  [Amended]

0
36. Paragraph (b) of Sec.  229.7 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

Appendix B to Part 229--[Amended]

0
37. Footnote 1 to Appendix B of Part 229 is amended by removing the 
numerical amount of ``$10,000'' and adding in its place the numerical 
amount ``$16,000''.

PART 230--[AMENDED]

0
38. The authority citation for part 230 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 20702; 28 U.S.C. 2461, note; 
and 49 CFR 1.49.


Sec.  230.4  [Amended]

0
39. Paragraph (a) of Sec.  230.4 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

PART 231--[AMENDED]

0
40. The authority citation for part 231 continues to read as follows:

    Authority: 49 U.S.C. 20102-20103, 20107, 20131, 20301-20303, 
21301-21302, 21304; 28 U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  231.0  [Amended]

0
41. Paragraph (f) of Sec.  231.0 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

PART 232--[AMENDED]

0
42. The authority citation for part 232 continues to read as follows:

    Authority: 49 U.S.C. 20102-20103, 20107, 20133, 20141, 20301-
20303, 20306, 21301-21302, 21304; 28 U.S.C. 2461, note; and 49 CFR 
1.49.


Sec.  232.11  [Amended]

0
43. Paragraph (a) of Sec.  232.11 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

Appendix A To Part 232--[AMENDED]

0
44. Footnote 1 to Appendix A of Part 232 is amended by removing the 
numerical amount of ``$11,000'' and adding in its place the numerical 
amount ``$16,000''.

PART 233--[AMENDED]

0
45. The authority citation for part 233 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 
CFR 1.49.


Sec.  233.11  [Amended]

0
46. Section 233.11 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 234--[AMENDED]

0
47. The authority citation for part 234 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 
CFR 1.49.


Sec.  234.6  [Amended]

0
48. Paragraph (a) of Sec.  234.6 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

PART 235--[AMENDED]

0
49. The authority citation for part 235 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 
CFR 1.49.


Sec.  235.9  [Amended]

0
50. Section 235.9 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

[[Page 51198]]

PART 236--[AMENDED]

0
51. The authority citation for part 236 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note and 49 
CFR 1.49.


Sec.  236.0  [Amended]

0
52. Paragraph (f) of Sec.  236.0 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

PART 238--[AMENDED]

0
53. The authority citation for part 238 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 20133, 20141, 20302-20303, 
20306, 20701-20702, 21301-21302, 21304; 28 U.S.C. 2461, note; 49 CFR 
1.49.


Sec.  238.11  [Amended]

0
54. Paragraph (a) of Sec.  238.11 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

Appendix A to Part 238--[AMENDED]

0
55. Footnote 1 to Appendix A of part 238 is amended by removing the 
numerical amount of ``$10,000'' and adding in its place the numerical 
amount ``$16,000''.

PART 239--[AMENDED]

0
56. The authority citation for part 239 continues to read as follows:

    Authority: 49 U.S.C. 20102-20103, 20105-20114, 20133, 21301, 
21304, and 21311; 28 U.S.C. 2461, note; and 49 CFR 1.49(c), (g), 
(m).


Sec.  239.11  [Amended]

0
57. Section 239.11 is amended by removing the numerical amount 
``$11,000'' and adding in its place the numerical amount ``$16,000''.

PART 240--[AMENDED]

0
58. The authority citation for part 240 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 20135, 21301, 21304, 21311; 
28 U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  240.11  [Amended]

0
59. Paragraph (a) of Sec.  240.11 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

PART 241--[Amended]

0
60. The authority citation for part 241 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 21301, 21304, 21311; 28 
U.S.C. 2461, note; 49 CFR 1.49.


Sec.  241.15  [Amended]

0
61. Paragraph (a) of Sec.  241.15 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

PART 244--[Amended]

0
62. The authority citation for part 244 continues to read as follows:

    Authority: 49 U.S.C. 20103, 20107, 21301; 5 U.S.C. 553 and 559; 
28 U.S.C. 2461, note; and 49 CFR 1.49.


Sec.  244.5  [Amended]

0
63. Paragraph (a) of Sec.  244.5 is amended by removing the numerical 
amount ``$11,000'' and adding in its place the numerical amount 
``$16,000''.

Joseph H. Boardman,
Administrator, Federal Railroad Administration.

Appendix:

    Step by Step Calculations To Determine Civil Monetary Penalty 
Updates: 2007
    Note: This appendix will not appear in the Code of Federal 
Regulations.

Step by Step Calculations To Determine Civil Monetary Penalty Updates: 
2007

    These calculations follow DOT and Government Accounting Office 
guidance to determine if the CMPs should be updated according to the 
Inflation Act. (Sources for guidance: (1) GAO attachment to 
Memorandum with subject, ``Annual Review of Department of 
Transportation's (DOT) Civil Penalties Inflation Adjustment'' dated 
July 10, 2003; (2) policy paper entitled ``Federal Civil Penalties 
Inflation Adjustment Act of 1990.''). Overall, there is no change in 
the minimum ($550) and aggravated maximum penalties ($27,000) for 
2007, but the ordinary maximum rises from $11,000 to $16,000 under 
the Inflation Act.

Minimum

    The current minimum CMP is $550, last updated on May 28, 2004. 
See 69 FR 30592.

Step 1: Find the Consumer Price Index (CPI). (BLS, 1967 Base, U.S. 
City Avg.)
    The CPI for June of the preceding year, i.e., CPI for June 2006 
= 607.8
    The CPI for June of the year the CMP was last set or adjusted 
under the Inflation Act, i.e., CPI for June 2004 = 568.2
Step 2: Calculate the Cost of Living Adjustment (COLA), or the 
Inflation Factor.
[GRAPHIC] [TIFF OMITTED] TR06SE07.006

Step 3: Find the Raw Inflation Adjustment or Inflation Adjustment 
Before Rounding.
    Raw Inflation Adjustment = CMP x COLA = $550 x 1.06969 = $588.33 
[ap] $588

Step 4: Round the Raw Inflation Adjustment Amount.
    Recall that the increase in the CMP is rounded, according to the 
rounding rules. Increase = Raw Inflation Adjustment--Original CMP = 
$588 - $550 = $38
    Use the following rounding rule: ``If the current unadjusted 
penalty is greater than $100 and less than or equal to $1,000, round 
the increase to the nearest multiple of $100.'' (Federal Civil 
Penalties Inflation Adjustment Act of 1990, p. 4)
    The nearest multiple of $100 is $0.
    Rounded, the $38 increase = $0

Step 5: Find the Inflation Adjusted Penalty After Rounding.
    CMP after rounding = Original CMP + Rounded Increase = $550 + $0 
= $550

Step 6: Apply a 10% Ceiling if Necessary.
    As the minimum CMP has been adjusted previously according to the 
Inflation Act, the 10% cap for first time adjustments does not 
apply.

Step 7: Determine New Penalty
    The new minimum CMP = $550
    For 2007, the minimum CMP stays the same.

Ordinary Maximum

    The current ordinary maximum CMP is $11,000, last updated on 
March 10, 1998. See 63 FR 11619.

Step 1: Find the Consumer Price Index (CPI).
    The CPI for June of the preceding year, i.e., CPI for June 2006 
= 607.8
    The CPI for June of the year the CMP was last set or adjusted 
under the Inflation Act, i.e., CPI for June 1998 = 488.2

Step 2: Calculate the Cost of Living Adjustment (COLA), or the 
Inflation Factor.

[[Page 51199]]

[GRAPHIC] [TIFF OMITTED] TR06SE07.007

Step 3: Find the Raw Inflation Adjustment or Inflation Adjustment 
Before Rounding.
    Raw Inflation Adjustment = CMP x COLA
    Raw Inflation Adjustment = $11,000 x 1.24498 = $13,694.78 [ap] 
$13,695

Step 4: Round the Raw Inflation Adjustment Amount.
    Recall that the increase in the CMP is rounded, according to the 
rounding rules.
    Increase = Raw Inflation Adjustment - Original CMP
    Increase = $13,695 - $11,000 = $2,695
    Use the following rounding rule: ``If the current unadjusted 
penalty is greater than $10,000 and less than or equal to $100,000, 
round the increase to the nearest multiple of $5,000.'' (Federal 
Civil Penalties Inflation Adjustment Act of 1990, p. 4)
    The nearest multiple of $5,000 is $5,000.
    Rounded, the $2,695 increase = $5,000

Step 5: Find the Inflation Adjusted Penalty After Rounding.
    CMP after rounding = Original CMP + Rounded Increase
    CMP after rounding = $11,000 + $5,000 = $16,000

Step 6: Apply a 10% Ceiling if Necessary.
    As the ordinary maximum CMP has been adjusted previously 
according to the Inflation Act, the 10% cap for first time 
adjustments does not apply.

Step 7: Determine New Penalty
    The new ordinary maximum CMP = $16,000
    For 2007, the ordinary maximum CMP rises from $11,000 to 
$16,000.

Aggravated Maximum

    The current aggravated maximum CMP is $27,000, last updated on 
May 28, 2004. See 69 FR 30592.
Step 1: Find the Consumer Price Index (CPI).
    The CPI for June of the preceding year, i.e., CPI for June 2006 
= 607.8
    The CPI for June of the year the CMP was last set or adjusted 
under the Inflation Act, i.e., CPI for June 2004 = 568.2
Step 2: Calculate the Cost of Living Adjustment (COLA), or the 
Inflation Factor.
[GRAPHIC] [TIFF OMITTED] TR06SE07.008

Step 3: Find the Raw Inflation Adjustment or Inflation Adjustment 
Before Rounding.
    Raw Inflation Adjustment = CMP x COLA
    Raw Inflation Adjustment = $27,000 x 1.06969 = $28,881.63 [ap] 
$28,882

Step 4: Round the Raw Inflation Adjustment Amount.
    Recall that the increase in the CMP is rounded, according to the 
rounding rules.
    Increase = Raw Inflation Adjustment - Original CMP
    Increase = $28,882 - $27,000 = $1,882
    Use the following rounding rule: ``If the current unadjusted 
penalty is greater than $10,000 and less than or equal to $100,000, 
round the increase to the nearest multiple of $5,000.'' (Federal 
Civil Penalties Inflation Adjustment Act of 1990, p. 4)
    The nearest multiple of $5,000 is $0.
    Rounded, the $1,882 increase = $0
Step 5: Find the Inflation Adjusted Penalty After Rounding.
    CMP after rounding = Original CMP + Rounded Increase
    CMP after rounding = $27,000 + $0 = $27,000
Step 6: Apply a 10% Ceiling if Necessary.
    As the aggravated maximum CMP has been adjusted previously 
according to the Inflation Act, the 10% cap for first time 
adjustments does not apply.
Step 7: Determine New Penalty
    The new aggravated maximum CMP = $27,000
    For 2007, the aggravated maximum CMP stays the same.

[FR Doc. E7-17170 Filed 9-5-07; 8:45 am]
BILLING CODE 4910-06-P