[Federal Register Volume 82, Number 10 (Tuesday, January 17, 2017)]
[Rules and Regulations]
[Pages 4796-4797]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00690]


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

SURFACE TRANSPORTATION BOARD

49 CFR Part 1022

[Docket No. EP 716 (Sub-No. 2)]


Civil Monetary Penalties--2017 Adjustment

AGENCY: Surface Transportation Board.

ACTION: Final rule.

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

SUMMARY: The Surface Transportation Board (Board) is issuing a final 
rule to implement the annual inflationary adjustment to its civil 
monetary penalties, pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015.

DATES: This final rule is effective January 17, 2017, and is applicable 
beginning January 13, 2017.

FOR FURTHER INFORMATION CONTACT: Sarah Fancher: (202) 245-0355. Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (2015 Act), passed as part of the Bipartisan Budget Act of 
2015, Public Law 114-74, 129 Stat. 599, requires agencies to adjust 
their civil penalties for inflation annually, beginning on January 15, 
2017, and no later than January 15 of every year thereafter. In 
accordance with the 2015 Act, annual inflation adjustments will be 
based on the percent change between the Consumer Price Index for all 
Urban Consumers (CPI-U) for October of the previous year and the 
October CPI-U of the year before that. Penalty level adjustments should 
be rounded to the nearest dollar.

II. Discussion

    The statutory definition of civil monetary penalty covers various 
civil penalty provisions under the Rail (Part A), Motor Carriers, Water 
Carriers, Brokers, and Freight Forwarders (Part B), and Pipeline 
Carriers (Part C) provisions of the Interstate Commerce Act, as amended 
by the ICC Termination Act of 1995. The Board's civil (and criminal) 
penalty authority related to rail transportation appears at 49 U.S.C. 
11901-11908. The Board's penalty authority related to motor carriers, 
water carriers, brokers, and freight forwarders appears at 49 U.S.C. 
14901-14915. The Board's penalty authority related to pipeline carriers 
appears at 49 U.S.C. 16101-16106.\1\ The Board has regulations at 49 
CFR pt. 1022, which codify the method set forth in the 2015 Act for 
annually adjusting for inflation the civil monetary penalties within 
the Board's jurisdiction.\2\
---------------------------------------------------------------------------

    \1\ The Board also has criminal penalty authority, enforceable 
in a federal criminal court. Congress has not, however, authorized 
federal agencies to adjust statutorily-prescribed criminal penalty 
provisions for inflation, and this rule does not address those 
provisions.
    \2\ The current statutory civil penalties were set through an 
interim final rule, Civil Monetary Penalty Inflation Adjustment 
Rule, EP 716 (Sub-No. 1) (STB served Oct. 20, 2016). In that 
decision, the Board issued a ``catch-up adjustment'' for its civil 
monetary penalties as mandated by the 2015 Act.
---------------------------------------------------------------------------

    As set forth in this final rule, the Board is amending 49 CFR pt. 
1022 so that its regulations and civil monetary penalties conform to 
the requirements of the 2015 Act. The adjusted penalties set forth in 
the rule will apply only to violations which occur after the effective 
date of this regulation.
    In accordance with the 2015 Act, the annual adjustment adopted here 
is calculated by multiplying each current penalty by the cost-of-living 
adjustment factor of 1.01636, which reflects the percentage change 
between the October 2016 CPI-U (724.113) and the October 2015 CPI-U 
(712.458). The table at the end of this decision shows the relevant 
statutory provision of each civil penalty and a description, the 
current baseline statutory civil penalty level, and the adjusted 
statutory civil penalty level for 2017.

III. Final Rule

    The final rule is set forth at the end of this decision. This final 
rule is issued without prior public notice or opportunity for public 
comment. The Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), 
does not require that process ``when the agency for good cause finds'' 
that public notice and comment are ``unnecessary.'' Here, Congress has 
mandated that the agency make the inflation adjustment to its civil 
monetary penalties. The Board has no discretion to set alternative 
levels of adjusted civil monetary penalties, because the amount of the 
inflation adjustment must be calculated in accordance with the 
statutory formula. The Board simply determines the amount of inflation 
adjustments by performing technical, ministerial computations. Because 
the Board has no discretion to do anything except promulgate the rule 
and perform ministerial computations to apply it, the Board has 
determined that there is good cause to promulgate this rule without 
soliciting public comment and to make this regulation effective 
immediately upon publication.

IV. Regulatory Flexibility Statement

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801 et 
seq., generally requires an agency to prepare a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Because the Board has determined that notice and comment are not 
required under the APA for this rulemaking, the requirements of the RFA 
do not apply.

V. Paperwork Reduction Act

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

 List of Subjects in 49 CFR Part 1022

    Administrative practice and procedures, Brokers, Civil penalties, 
Freight forwarders, Motor carriers, Pipeline carriers, Rail carriers, 
Water carriers.

    It is ordered:
    1. The Board amends its rules as set forth in this decision. Notice 
of the final rule will be published in the Federal Register.
    2. This decision is effective on its date of service.

    Decided: January 9, 2017.

    By the Board, Chairman Elliott, Vice Chairman Miller, and 
Commissioner Begeman.

Kenyatta Clay,
Clearance Clerk.
    For the reasons set forth in the preamble, part 1022 of title 49, 
chapter X, of the Code of Federal Regulations is amended as follows:

PART 1022--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

0
1. The authority citation for part 1022 continues to read as follows:

    Authority:  5 U.S.C. 551-557; 28 U.S.C. 2461 note; 49 U.S.C. 
11901, 14901, 14903, 14904, 14905, 14906, 14907, 14908, 14910, 
14915, 16101, 16103.

[[Page 4797]]


0
2. Revise Sec.  1022.4(b) to read as follows:


Sec.  1022.4  Cost-of-living adjustments of civil monetary penalties.

* * * * *
    (b) The cost-of-living adjustment required by the statute results 
in the following adjustments to the civil monetary penalties within the 
jurisdiction of the Board:

----------------------------------------------------------------------------------------------------------------
                                                 Civil monetary penalty       Baseline penalty  Adjusted penalty
            U.S. code citation                        description                  amount         amount (2017)
----------------------------------------------------------------------------------------------------------------
                                          Rail Carrier Civil Penalties
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 11901(a).......................  Unless otherwise specified,                  $7,512            $7,635
                                            maximum penalty for each knowing
                                            violation under this part, and
                                            for each day.
49 U.S.C. 11901(b).......................  For each violation under Sec.                   751               763
                                            11124(a)(2) or (b).
49 U.S.C. 11901(b).......................  For each day violation continues.                38                39
49 U.S.C. 11901(c).......................  Maximum penalty for each knowing              7,512             7,635
                                            violation under Sec.  Sec.
                                            10901-10906.
49 U.S.C. 11901(d).......................  For each violation under Sec.               150-751           152-763
                                            Sec.   11123 or 11124(a)(1).
49 U.S.C. 11901(d).......................  For each day violation continues.                75                76
49 U.S.C. 11901(e)(1)....................  For each violation under Sec.                   751               763
                                            Sec.   11141-11145.
49 U.S.C. 11901(e)(2)....................  For each violation under Sec.                   150               152
                                            11144(b)(1).
49 U.S.C. 11901(e)(3-4)..................  For each violation of reporting                 150               152
                                            requirements, for each day.
----------------------------------------------------------------------------------------------------------------
                                     Motor and Water Carrier Civil Penalties
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 14901(a).......................  Minimum penalty for each                      1,028             1,045
                                            violation and for each day.
49 U.S.C. 14901(a).......................  For each violation under Sec.                10,282            10,450
                                            Sec.   13901 or 13902(c).
49 U.S.C. 14901(a).......................  For each violation related to                25,705            26,126
                                            transportation of passengers.
49 U.S.C. 14901(b).......................  For each violation of the             20,564-41,128     20,900-41,801
                                            hazardous waste rules under Sec.
                                              3001 of the Solid Waste
                                            Disposal Act.
49 U.S.C. 14901(d)(1)....................  Minimum penalty for each                      1,502             1,527
                                            violation of household good
                                            regulations, and for each day.
49 U.S.C. 14901(d)(2)....................  Minimum penalty for each instance            15,025            15,271
                                            of transportation of household
                                            goods if broker provides
                                            estimate without carrier
                                            agreement.
49 U.S.C. 14901(d)(3)....................  Minimum penalty for each instance            37,561            38,175
                                            of transportation of household
                                            goods without being registered.
49 U.S.C. 14901(e).......................  Minimum penalty for each                      3,005             3,054
                                            violation of a transportation
                                            rule.
49 U.S.C. 14901(e).......................  Minimum penalty for each                      7,512             7,635
                                            additional violation.
49 U.S.C. 14903(a).......................  Maximum penalty for undercharge             150,245           152,703
                                            or overcharge of tariff rate,
                                            for each violation.
49 U.S.C. 14904(a).......................  For first violation, rebates at                 300               305
                                            less than the rate in effect.
49 U.S.C. 14904(a).......................  For all subsequent violations....               376               382
49 U.S.C. 14904(b)(1)....................  Maximum penalty for first                       751               763
                                            violation for undercharges by
                                            freight forwarders.
49 U.S.C. 14904(b)(1)....................  Maximum penalty for subsequent                3,005             3,054
                                            violations.
49 U.S.C. 14904(b)(2)....................  Maximum penalty for other first                 751               763
                                            violations under Sec.   13702.
49 U.S.C. 14904(b)(2)....................  Maximum penalty for subsequent                3,005             3,054
                                            violations.
49 U.S.C. 14905(a).......................  Maximum penalty for each knowing             15,025            15,271
                                            violation of Sec.   14103(a),
                                            and knowingly authorizing,
                                            consenting to, or permitting a
                                            violation of Sec.   14103(a) &
                                            (b).
49 U.S.C. 14906..........................  Minimum penalty for first attempt             2,056             2,090
                                            to evade regulation.
49 U.S.C. 14906..........................  Minimum amount for each                       5,141             5,225
                                            subsequent attempt to evade
                                            regulation.
49 U.S.C. 14907..........................  Maximum penalty for recordkeeping/            7,512             7,635
                                            reporting violations.
49 U.S.C. 14908(a)(2)....................  Maximum penalty for violation of              3,005             3,054
                                            Sec.   14908(a)(1).
49 U.S.C. 14910..........................  When another civil penalty is not               751               763
                                            specified under this part, for
                                            each violation, for each day.
49 U.S.C. 14915(a)(1) & (2)..............  Minimum penalty for holding a                11,940            12,135
                                            household goods shipment
                                            hostage, for each day.
----------------------------------------------------------------------------------------------------------------
                                        Pipeline Carrier Civil Penalties
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 16101(a).......................  Maximum penalty for violation of              7,512             7,635
                                            this part, for each day.
49 U.S.C. 16101(b)(1) & (4)..............  For each recordkeeping violation                751               763
                                            under Sec.   15722, each day.
49 U.S.C. 16101(b)(2) & (4)..............  For each inspection violation                   150               152
                                            liable under Sec.   15722, each
                                            day.
49 U.S.C. 16101(b)(3) & (4)..............  For each reporting violation                    150               152
                                            under Sec.   15723, each day.
49 U.S.C. 16103(a).......................  Maximum penalty for improper                  1,502             1,527
                                            disclosure of information.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2017-00690 Filed 1-13-17; 8:45 am]
 BILLING CODE 4915-01-P