[Federal Register Volume 84, Number 26 (Thursday, February 7, 2019)]
[Rules and Regulations]
[Pages 2433-2436]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01191]
=======================================================================
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
10 CFR Parts 2 and 13
[NRC-2017-0088; 3150-AK02]
Adjustment of Civil Penalties for Inflation for Fiscal Year 2019
AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending its
regulations to adjust the maximum civil
[[Page 2434]]
monetary penalties it can assess under statutes enforced by the agency.
These changes are mandated by the Federal Civil Penalties Inflation
Adjustment Act of 1990 (FCPIAA), as amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (2015
Improvements Act). The NRC is amending its regulations to adjust the
maximum penalty amount for a violation of the Atomic Energy Act of
1954, as amended (AEA), or any regulation or order issued under the AEA
from $290,875 to $298,211 per violation, per day. Additionally, the NRC
is amending provisions concerning program fraud civil penalties by
adjusting the maximum penalty amount under the Program Fraud Civil
Remedies Act from $11,181 to $11,463 for each false claim or statement.
DATES: This final rule is effective on February 7, 2019.
ADDRESSES: Please refer to Docket ID NRC-2017-0088 when contacting the
NRC about the availability of information for this action. You may
obtain publicly-available information related to this action by any of
the following methods:
Federal Rulemaking website: Go to http://www.regulations.gov and search for Docket ID NRC-2017-0088. Address
questions about NRC dockets to Carol Gallagher; telephone: 301-415-
3463; email: [email protected]. For technical questions, contact
the individual listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly-available documents online in the
ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin Web-based ADAMS
Search.'' For problems with ADAMS, please contact the NRC's Public
Document Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or
by email to [email protected]. The ADAMS accession number for each
document referenced (if it is available in ADAMS) is provided the first
time that it is mentioned in the SUPPLEMENTARY INFORMATION section.
NRC's PDR: You may examine and purchase copies of public
documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555
Rockville Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Eric Michel, Office of the General
Counsel, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001;
telephone: 301-415-0932, email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Discussion
III. Rulemaking Procedure
IV. Section-by-Section Analysis
V. Regulatory Analysis
VI. Regulatory Flexibility Act
VII. Backfitting and Issue Finality
VIII. Plain Writing
IX. National Environmental Policy Act
X. Paperwork Reduction Act
XI. Congressional Review Act
I. Background
Congress passed the FCPIAA in 1990 to allow for regular adjustment
for inflation of civil monetary penalties, maintain the deterrent
effect of such penalties and promote compliance with the law, and
improve the collection of civil monetary penalties by the Federal
government (Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note).
Pursuant to this authority, and as amended by the Debt Collection
Improvement Act of 1996 (Pub. L. 104-34, 110 Stat. 1321-373), the NRC
increased, via rulemaking, the penalty amounts for violations of the
AEA (codified at Sec. 2.205 of title 10 of the Code of Federal
Regulations (10 CFR)) and Program Fraud Civil Remedies Act (codified at
Sec. 13.3) on four occasions between 1996 and 2008.\1\
---------------------------------------------------------------------------
\1\ Adjustment of Civil Penalties for Inflation, 73 FR 54,671;
Sept. 23, 2008; Adjustment of Civil Penalties for Inflation, 69 FR
62,393; Oct. 26, 2004; Adjustment of Civil Penalties for Inflation;
Miscellaneous Administrative Changes, 65 FR 59,270; Oct. 4, 2000;
Adjustment of Civil Monetary Penalties for Inflation, 61 FR 53,554;
Oct. 11, 1996. An adjustment was not performed in 2012 because the
FCPIAA at the time required agencies to round their penalty amounts
to the nearest multiple of $1,000 or $10,000, depending on the size
of the penalty amount, and the 2012 adjustments based on the
statutory formula were small enough that no adjustment resulted.
---------------------------------------------------------------------------
On November 2, 2015, Congress amended the FCPIAA through the 2015
Improvements Act (Sec. 701, Pub. L. 114-74, 129 Stat. 599). The 2015
Improvements Act required that the head of each agency perform an
initial ``catch-up'' adjustment via rulemaking, adjusting the civil
monetary penalties enforced by that agency according to the percentage
change in the Consumer Price Index (CPI) between the month of October
2015 and the month of October of the calendar year when the penalty
amount was last established by Congress. The NRC performed this catch-
up rulemaking on July 1, 2016 (81 FR 43019).
The 2015 Improvements Act also requires that the head of each
agency continue to adjust penalty amounts, rounded to the nearest
dollar, on an annual basis. Specifically, each civil monetary penalty
is to be adjusted based on the percentage change between the CPI for
the previous month of October, and the CPI for the month of October in
the year preceding that. The NRC most recently adjusted its civil
penalties for inflation according to this statutory formula on January
12, 2018 (83 FR 1515). This year's adjustment is based on the
percentage change between the CPI for October 2018 and October 2017.
II. Discussion
Section 234 of the AEA limits civil penalties for violations of the
AEA to $100,000 per day, per violation (42 U.S.C. 2282). However, as
discussed in Section I, ``Background,'' of this document, the NRC has
increased this amount several times since 1996 per the FCPIAA, as
amended. Using the formula in the 2015 Improvements Act, the $290,875
amount last established in January 2018 will increase by 2.522 percent,
resulting in a new penalty amount of $298,211. This is based on the
percentage change between the October 2018 CPI (252.885) and the
October 2017 CPI (246.663). Therefore, the NRC is amending Sec. 2.205
to reflect a new maximum civil monetary penalty under the AEA in the
amount of $298,211 per day, per violation. This represents an increase
of $7,336.
Monetary penalties under the Program Fraud Civil Remedies Act were
established in 1986 at $5,000 per claim (Pub. L. 99-509, 100 Stat.
1938; 31 U.S.C. 3802). The NRC has also adjusted this amount (currently
set at $11,181) multiple times pursuant to the FCPIAA, as amended,
since 1996. Using the formula in the 2015 Improvements Act, the $11,181
amount last established in January 2018 will also increase by 2.522
percent, resulting in a new civil monetary penalty amount of $11,463.
Therefore, the NRC is amending Sec. 13.3 to reflect a new maximum
penalty amount of $11,463 per claim or statement. This represents an
increase of $282.
As permitted by the 2015 Improvements Act, the NRC may apply these
increased penalty amounts to any penalties assessed by the agency after
the effective date of this rulemaking (February 7, 2019), regardless of
whether the associated violation occurred before or after this date
(Pub. L. 114-74, 129 Stat. 600; 28 U.S.C. 2461 note). The NRC assesses
civil penalty amounts for violations of the AEA based on the class of
licensee and severity of the violation, in accordance with the NRC
Enforcement Policy (ADAMS Accession No. ML18138A138).
[[Page 2435]]
III. Rulemaking Procedure
The 2015 Improvements Act expressly exempts this final rule from
the notice and comment requirements of the Administrative Procedure
Act, by directing agencies to adjust civil monetary penalties for
inflation ``notwithstanding section 553 of title 5, United States
Code'' (Pub. L. 114-74, 129 Stat. 599; 28 U.S.C. 2461 note). As such,
this final rule is being issued without prior public notice or
opportunity for public comment, with an effective date of February 7,
2019.
IV. Section-by-Section Analysis
Section 2.205 Civil Penalties
This final rule revises paragraph (j) by replacing ``$290,875''
with ``$298,211''.
Section 13.3 Basis for Civil Penalties and Assessments
This final rule revises paragraphs (a)(1)(iv) and (b)(1)(ii) by
replacing ``$11,181'' with ``$11,463''.
V. Regulatory Analysis
This final rule adjusts for inflation the maximum civil monetary
penalty amounts the NRC may assess under the AEA and under the Program
Fraud Civil Remedies Act of 1986. The formula for determining the
amount of the adjustment is mandated by Congress in the FCPIAA, as
amended by the 2015 Improvements Act (codified at 28 U.S.C. 2461 note).
Congress passed this 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 diminishes
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. Therefore,
these are the anticipated impacts of this rulemaking. Direct monetary
impacts fall only upon licensees or other persons subjected to NRC
enforcement for violations of the AEA and regulations and orders issued
under the AEA (Sec. 2.205), or those licensees or persons subjected to
liability pursuant to the provisions of the Program Fraud Civil
Remedies Act of 1986 (31 U.S.C. 3801-3812) and the NRC's implementing
regulations (10 CFR part 13).
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to regulations for
which a Federal agency is not required by law, including the rulemaking
provisions of the Administrative Procedure Act, 5 U.S.C. 553(b), to
publish a general notice of proposed rulemaking (5 U.S.C. 604). As
discussed in this document under Section III., ``Rulemaking
Procedure,'' the NRC has determined that this final rule is exempt from
the requirements of 5 U.S.C. 553(b) and notice and comment need not be
provided. Accordingly, the NRC also determines that the requirements of
the Regulatory Flexibility Act do not apply to this final rule.
VII. Backfit and Issue Finality
The NRC has not prepared a backfit analysis for this final rule.
This final rule does not involve any provision that would impose a
backfit, nor is it inconsistent with any issue finality provision, as
those terms are defined in 10 CFR chapter I. As mandated by Congress,
this final rule increases penalty amounts for violations of already-
existing NRC regulations and requirements. This final rule does not
modify any licensee systems, structures, components, designs,
approvals, or procedures required for the construction or operation of
any facility.
VIII. Plain Writing
The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal
agencies to write documents in a clear, concise, and well-organized
manner. The NRC has written this document to be consistent with the
Plain Writing Act as well as the Presidential Memorandum, ``Plain
Language in Government Writing,'' published June 10, 1998 (63 FR
31883).
IX. National Environmental Policy Act
The NRC has determined that this final rule is the type of action
described as a categorical exclusion in Sec. 51.22(c)(1). Therefore,
neither an environmental impact statement nor an environmental
assessment has been prepared for this final rule.
X. Paperwork Reduction Act
This final rule does not contain a collection of information as
defined in the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)
and, therefore, is not subject to the requirements of the Paperwork
Reduction Act of 1995.
XI. Congressional Review Act
This final rule is a rule as defined in the Congressional Review
Act (5 U.S.C. 801-808). However, the Office of Management and Budget
has not found it to be a major rule as defined in the Congressional
Review Act.
List of Subjects
10 CFR Part 2
Administrative practice and procedure, Antitrust, Byproduct
material, Classified information, Confidential business information;
Freedom of information, Environmental protection, Hazardous waste,
Nuclear energy, Nuclear materials, Nuclear power plants and reactors,
Penalties, Reporting and recordkeeping requirements, Sex
discrimination, Source material, Special nuclear material, Waste
treatment and disposal.
10 CFR Part 13
Administrative practice and procedure, Claims, Fraud, Organization
and function (Government agencies), Penalties.
For the reasons set out in the preamble and under the authority of
the Atomic Energy Act of 1954, as amended; the Energy Reorganization
Act of 1974, as amended; 28 U.S.C. 2461 note; and 5 U.S.C. 552 and 553,
the NRC is adopting the following amendments to 10 CFR parts 2 and 13:
PART 2--AGENCY RULES OF PRACTICE AND PROCEDURE
0
1. The authority citation for part 2 continues to read as follows:
Authority: Atomic Energy Act of 1954, secs. 29, 53, 62, 63, 81,
102, 103, 104, 105, 161, 181, 182, 183, 184, 186, 189, 191, 234 (42
U.S.C. 2039, 2073, 2092, 2093, 2111, 2132, 2133, 2134, 2135, 2201,
2231, 2232, 2233, 2234, 2236, 2239, 2241, 2282); Energy
Reorganization Act of 1974, secs. 201, 206 (42 U.S.C. 5841, 5846);
Nuclear Waste Policy Act of 1982, secs. 114(f), 134, 135, 141 (42
U.S.C. 10134(f), 10154, 10155, 10161); Administrative Procedure Act
(5 U.S.C. 552, 553, 554, 557, 558); National Environmental Policy
Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note.
Section 2.205(j) also issued under 28 U.S.C. 2461 note.
Sec. 2.205 [Amended]
0
2. In Sec. 2.205, in paragraph (j), remove the amount ``$290,875'' and
add in its place the amount ``$298,211''.
PART 13--PROGRAM FRAUD CIVIL REMEDIES
0
3. The authority citation for part 13 continues to read as follows:
Authority: 31 U.S.C. 3801 through 3812; 44 U.S.C. 3504 note.
Section 13.3 also issued under 28 U.S.C. 2461 note. Section
13.13 also issued under 31 U.S.C. 3730.
Sec. 13.3 [Amended]
0
4. In Sec. 13.3, in paragraphs (a)(1)(iv) and (b)(1)(ii), remove the
amount
[[Page 2436]]
``$11,181'' and add in its place the amount ``$11,463''.
Dated in Rockville, Maryland, this 31st date of January, 2019.
For the Nuclear Regulatory Commission.
Margaret M. Doane,
Executive Director for Operations.
[FR Doc. 2019-01191 Filed 2-6-19; 8:45 am]
BILLING CODE 7590-01-P