[Federal Register Volume 90, Number 5 (Wednesday, January 8, 2025)]
[Rules and Regulations]
[Pages 1375-1378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00206]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 19
[FRL-5906.9-01-OECA]
Civil Monetary Penalty Inflation Adjustment
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
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SUMMARY: The Environmental Protection Agency (EPA) is promulgating this
final rule to adjust the level of the maximum and minimum statutory
civil monetary penalty amounts under the statutes the EPA administers.
This action is mandated by the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended through the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (``the 2015 Act'').
The 2015 Act prescribes a formula for annually adjusting the statutory
maximum and minimum amount of civil monetary penalties to reflect
inflation, maintain the deterrent effect of statutory civil monetary
penalties, and promote compliance with the law. The rule does not
establish specific civil monetary penalty amounts the EPA may seek in
particular cases. The EPA calculates those amounts, as appropriate,
based on the facts of particular cases and applicable agency penalty
policies. The EPA's civil penalty policies, which guide enforcement
personnel on how to exercise the EPA's discretion within statutory
penalty authorities, take into account a number of fact-specific
considerations, e.g., the seriousness of the violation, the violator's
good faith efforts to comply, any economic benefit gained by the
violator as a result of its noncompliance, and the violator's ability
to pay.
DATES: This final rule is effective January 8, 2025.
FOR FURTHER INFORMATION CONTACT: David Smith-Watts, Office of Civil
Enforcement, Office of Enforcement and Compliance Assurance, Mail Code
2241A, Environmental Protection Agency, 1200 Pennsylvania Avenue NW,
Washington, DC 20460, telephone number: (202) 564-4083; [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
The 2015 Act \1\ requires each Federal agency to adjust the
statutory civil monetary penalties under the laws implemented by that
agency annually, to account for inflation. Section 4 of the 2015 Act
requires each Federal agency to publish these adjustments by January 15
of each year. The purpose of the 2015 Act is to maintain the deterrent
effect of civil monetary penalties by translating originally enacted
statutory civil penalty amounts to today's dollars and rounding
statutory civil penalties to the nearest dollar.
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\1\ The Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Section 701 of Pub. L.114-74) was signed
into law on November 2, 2015, and amended the Federal Civil
Penalties Inflation Adjustment Act of 1990.
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Since January 15, 2017, the EPA has made eight annual adjustments:
(1) on January 12, 2017, effective on January 15, 2017 (82 FR 3633);
(2) on January 10, 2018, effective on January 15, 2018 (83 FR 1190);
(3) on February 6, 2019, effective the same day (84 FR 2056), with a
subsequent correction on February 25, 2019 (84 FR 5955); (4) on January
13, 2020, effective the same day (85 FR 1751); (5) on December 23,
2020, effective the same day (85 FR 83818); (6) on January 12, 2022,
effective the same day (87 FR 1676); (7) on January 6, 2023, effective
the same day (88 FR 986); and (8) on December 27, 2023, effective the
same day (88 FR 89309). This rule implements the ninth annual
adjustment mandated by the 2015 Act.
The 2015 Act provides a formula for calculating the adjustments.
Each statutory maximum and minimum \2\ civil monetary penalty, as
currently adjusted, is multiplied by the cost-of-living adjustment
multiplier, which is the percentage by which the Consumer Price Index
for all Urban Consumers (CPI-U) for the month of October 2024 exceeds
the CPI-U for the month of October 2023.\3\
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\2\ Under Section 3(2)(A) of the 2015 Act, a `` `civil monetary
penalty' [is] any penalty, fine or other sanction that- is for a
specific monetary amount as provided by Federal law; or has a
maximum amount provided for by Federal law.'' EPA-administered
statutes generally refer to statutory maximum penalties, with the
following exceptions: Section 311(b)(7)(D) of the Clean Water Act,
33 U.S.C. 1321(b)(7)(D), refers to a minimum penalty of ``not less
than $100,000 . . .''; Section 104b(d)(1)(A) of the Marine
Protection, Research, and Sanctuaries Act, 33 U.S.C. 1414b(d)(1)(A),
refers to an exact penalty of $600 ``[f]or each dry ton (or
equivalent) of sewage sludge or industrial waste dumped or
transported by the person in violation of this subsection in
calendar year 1992 . . .''; and Section 325(d)(1) of the Emergency
Planning and Community Right-to-Know Act, 42 U.S.C. 11045(d)(1),
refers to an exact civil penalty of $25,000 for each frivolous trade
secret claim.
\3\ Current and historical CPI-Us can be found on the Bureau of
Labor Statistics' websites here: https://www.bls.gov/cpi/tables/supplemental-files/historical-cpi-u-202410.pdf and https://www.bls.gov/news.release/cpi.nr0.htm.
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With this rule, the new statutory maximum and minimum penalty
levels listed in the third column of Table 1 of 40 CFR 19.4 will apply
to all civil monetary penalties assessed on or after January 8, 2025,
for violations that occurred after November 2, 2015, the date the 2015
Act was enacted. The former maximum and minimum statutory civil
monetary penalty levels, which are in the fourth column of Table 1 to
40 CFR 19.4, will now apply only to violations that occurred after
November 2, 2015, where the penalties were assessed on or after
December 27, 2023, but before January 8, 2025. The statutory civil
monetary penalty levels that apply to violations that occurred on or
before November 2, 2015, are codified at Table 2 to 40 CFR 19.4. The
fifth column of Table 1 and the seventh column of Table 2 display the
statutory civil monetary penalty levels as originally enacted.
The formula for determining the cost-of-living or inflation
adjustment to statutory civil monetary penalties consists of the
following steps:
Step 1: The cost-of-living adjustment multiplier for 2025 is the
percentage by which the CPI-U of October 2024 (315.664) exceeds the
CPI-U for the month of October 2023 (307.671), which is 1.02598.\4\
Multiply 1.02598 by the current penalty amount. This is the raw
adjusted penalty value.
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\4\ Section 5(b) of the 2015 Act provides that the term ``cost-
of-living adjustment'' means the percentage (if any) for each civil
monetary penalty by which--
(A) the Consumer Price Index for the month of October preceding
the date of the adjustment, exceeds
(B) the Consumer Price Index for the month of October 1 year
before the month of October referred to in subparagraph (A).
Because the CPI-U for October 2024 is 315.664 and the CPI-U for
October 2023 is 307.671, the cost-of-living multiplier is 1.02598
(315.664 divided by 307.671).
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Step 2: Round the raw adjusted penalty value. Section 5 of the 2015
Act states that any adjustment shall be rounded to the nearest multiple
of $1. The result is the final penalty value for the year.
II. The 2015 Act Requires Federal Agencies To Publish Annual Penalty
Inflation Adjustments Notwithstanding Section 553 of the Administrative
Procedure Act
Pursuant to section 4 of the 2015 Act, each Federal agency is
required to
[[Page 1376]]
publish adjustments no later than January 15 each year. In accordance
with section 553 of the Administrative Procedure Act (APA), 5 U.S.C.
553, most rules are subject to notice and comment and are effective no
earlier than 30 days after publication in the Federal Register.
However, section 4(b)(2) of the 2015 Act provides that each agency
shall make the annual inflation adjustments ``notwithstanding section
553'' of the APA. Consistent with the language of the 2015 Act, this
rule is not subject to notice and an opportunity for public comment and
will be effective on January 8, 2025.
III. Statutory and Executive Order Reviews
Additional information about these statutes and Executive orders
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 14094: Modernizing Regulatory Review
This action is not a significant regulatory action as defined in
Executive Order 12866, as amended by Executive Order 14094, and was
therefore not subject to a requirement for Executive Order 12866
review.
B. Paperwork Reduction Act (PRA)
This action does not impose an information collection burden under
the PRA. This rule merely increases the level of statutory civil
monetary penalties that can be imposed in the context of a Federal
civil administrative enforcement action or civil judicial case for
violations of EPA-administered statutes and their implementing
regulations.
C. Regulatory Flexibility Act (RFA)
This action is not subject to the RFA. The RFA applies only to
rules subject to notice and comment rulemaking requirements under the
Administrative Procedure Act (APA), 5 U.S.C. 553, or any other statute.
Because the 2015 Act directs Federal agencies to publish this rule
notwithstanding section 553 of the APA, this rule is not subject to
notice and comment requirements or the RFA.
D. Unfunded Mandates Reform Act (UMRA)
This action does not contain an unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect
small governments. This action implements mandates specifically and
explicitly set forth in the 2015 Act without the exercise of any policy
discretion by the EPA. This action also imposes no enforceable duty on
any state, local or tribal governments or the private sector. Because
the calculation of any increase is formula-driven pursuant to the 2015
Act, the EPA has no policy discretion to vary the amount of the
adjustment.
E. Executive Order 13132: Federalism
This action does not have federalism implications. It will not have
a substantial direct effect on the States, on the relationship between
the National Government and the States, or on the distribution of power
and responsibilities among the various levels of government.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have Tribal implications as specified in
Executive Order 13175. This rule merely reconciles the real value of
current statutory civil monetary penalty levels to keep pace with the
levels originally set by Congress when the statutes were enacted or
amended. The calculation of the increases is formula-driven and
prescribed by statute, and the EPA has no discretion to vary the amount
of the adjustment to reflect any views or suggestions provided by
commenters. Accordingly, this rule will not have a substantial direct
effect on tribal governments, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.
Thus, Executive Order 13175 does not apply to this action.
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
The EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that the EPA has reason to believe may disproportionately affect
children, per the definition of ``covered regulatory action'' in
section 2-202 of the Executive Order. Therefore, this action is not
subject to Executive Order 13045 because it does not concern an
environmental health risk or safety risk. Since this action does not
concern human health, the EPA's Policy on Children's Health also does
not apply.
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution or Use
This action is not subject to Executive Order 13211, because it is
not a significant regulatory action under Executive Order 12866.
I. National Technology Transfer and Advancement Act (NTTAA)
This rulemaking does not involve technical standards.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations and
Executive Order 14096: Revitalizing Our Nation's Commitment to
Environmental Justice for All
The EPA believes that this type of action does not concern human
health or environmental conditions and therefore cannot be evaluated
with respect to potentially disproportionate and adverse effects on
communities with environmental justice concerns. As mandated by the
2015 Act, this rule adjusts for inflation the statutory civil monetary
penalty amounts of the statutes administered by the EPA.
The EPA acknowledges that the annual mandatory increase in civil
penalty amounts to account for inflation may result in further
deterrents of environmental violations that may trigger civil
penalties. Deterring violations has the benefit of promoting the
overarching purpose of environmental enforcement and may have a
positive impact on the human health or environment of all populations
including communities with environmental justice concerns.
K. Congressional Review Act (CRA)
This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. The CRA allows the issuing agency to make a rule
effective sooner than otherwise provided by the CRA if the agency makes
a good cause finding that notice and comment rulemaking procedures are
impracticable, unnecessary or contrary to the public interest (5 U.S.C.
808(2)). The EPA finds that the APA's notice and comment rulemaking
procedures are unnecessary because the 2015 Act directs Federal
agencies to publish their annual penalty inflation adjustments
``notwithstanding section 553 [of the APA].''
List of Subjects in 40 CFR Part 19
Environmental protection, Administrative practice and procedure,
Penalties.
Jane Nishida,
Acting Administrator.
For the reasons set out in the preamble, the EPA amends title 40,
[[Page 1377]]
chapter I, part 19 of the Code of Federal Regulations as follows:
PART 19--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION
0
1. The authority citation for part 19 continues to read as follows:
Authority: Pub. L. 101-410, Oct. 5, 1990, 104 Stat. 890, as
amended by Pub. L. 104-134, title III, sec. 31001(s)(1), Apr. 26,
1996, 110 Stat. 1321-373; Pub. L. 105-362, title XIII, sec. 1301(a),
Nov. 10, 1998, 112 Stat. 3293; Pub. L. 114-74, title VII, sec.
701(b), Nov. 2, 2015, 129 Stat. 599.
0
2. Revise Sec. 19.2 to read as follows:
Sec. 19.2 Effective date.
(a) The statutory civil monetary penalty levels set forth in the
third column of Table 1 of Sec. 19.4 apply to all violations which
occur or occurred after November 2, 2015, where the penalties are
assessed on or after January 8, 2025. The statutory civil monetary
penalty levels set forth in the fourth column of table 1 of Sec. 19.4
apply to all violations which occurred after November 2, 2015, where
the penalties were assessed on or after December 27, 2023, but before
January 8, 2025.
(b) The statutory monetary penalty levels in the third column of
table 2 to Sec. 19.4 apply to all violations which occurred after
December 6, 2013, through November 2, 2015, and to violations occurring
after November 2, 2015, where penalties were assessed before August 1,
2016. The statutory civil monetary penalty levels set forth in the
fourth column of table 2 of Sec. 19.4 apply to all violations which
occurred after January 12, 2009, through December 6, 2013. The
statutory civil monetary penalty levels set forth in the fifth column
of table 2 of Sec. 19.4 apply to all violations which occurred after
March 15, 2004, through January 12, 2009. The statutory civil monetary
penalty levels set forth in the sixth column of table 2 of Sec. 19.4
apply to all violations which occurred after January 30, 1997, through
March 15, 2004.
0
3. Revise the section heading, introductory text, and table 1 of Sec.
19.4 to read as follows:
Sec. 19.4 Statutory civil monetary penalties, as adjusted for
inflation, and tables.
Table 1 of this section sets out the statutory civil monetary
penalty provisions of statutes administered by the EPA, with the third
column setting out the latest operative statutory civil monetary
penalty levels for violations that occur or occurred after November 2,
2015, where penalties are assessed on or after January 8, 2025. The
fourth column displays the operative statutory civil monetary penalty
levels where penalties were assessed on or after December 27, 2023, but
before January 8, 2025. Table 2 of this section sets out the statutory
civil monetary penalty provision of statutes administered by the EPA,
with the operative statutory civil monetary penalty levels, as adjusted
for inflation, for violations that occurred on or before November 2,
2015, and for violations that occurred after November 2, 2015, where
penalties were assessed before August 1, 2016.
Table 1 of Sec. 19.4--Civil Monetary Penalty Inflation Adjustments
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Statutory civil
Statutory civil monetary penalties for
monetary penalties for violations that
violations that occur occurred after November Statutory civil
U.S. code citation Environmental statute or occurred after 2, 2015, where monetary penalties, as
November 2, 2015, where penalties were assessed enacted
penalties are assessed on or after December
on or after January 8, 27, 2023, but before
2025 January 8, 2025
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7 U.S.C. 136l(a)(1)......................... FEDERAL INSECTICIDE, FUNGICIDE, $24,885 $24,255 $5,000
AND RODENTICIDE ACT (FIFRA).
7 U.S.C. 136l(a)(2) \1\..................... FIFRA.......................... 3,650/2,353/3,650 3,558/2,293/3,558 1,000/500/1,000
15 U.S.C. 2615(a)(1)........................ TOXIC SUBSTANCES CONTROL ACT 49,772 48,512 37,500
(TSCA).
15 U.S.C. 2647(a)........................... TSCA........................... 14,308 13,946 5,000
15 U.S.C. 2647(g)........................... TSCA........................... 11,823 11,524 5,000
31 U.S.C. 3802(a)(1)........................ PROGRAM FRAUD CIVIL REMEDIES 14,308 13,946 5,000
ACT (PFCRA).
31 U.S.C. 3802(a)(2)........................ PFCRA.......................... 14,308 13,946 5,000
33 U.S.C. 1319(d)........................... CLEAN WATER ACT (CWA).......... 68,445 66,712 25,000
33 U.S.C. 1319(g)(2)(A)..................... CWA............................ 27,378/68,445 26,685/66,712 10,000/25,000
33 U.S.C. 1319(g)(2)(B)..................... CWA............................ 27,378/342,218 26,685/333,552 10,000/125,000
33 U.S.C. 1321(b)(6)(B)(i).................. CWA............................ 23,647/59,114 23,048/57,617 10,000/25,000
33 U.S.C. 1321(b)(6)(B)(ii)................. CWA............................ 23,647/295,564 23,048/288,080 10,000/125,000
33 U.S.C. 1321(b)(7)(A)..................... CWA............................ 59,114/2,364 57,617/2,304 25,000/1,000
33 U.S.C. 1321(b)(7)(B)..................... CWA............................ 59,114 57,617 25,000
33 U.S.C. 1321(b)(7)(C)..................... CWA............................ 59,114 57,617 25,000
33 U.S.C. 1321(b)(7)(D)..................... CWA............................ 236,451/7,093 230,464/6,913 100,000/3,000
33 U.S.C. 1414b(d)(1)(A).................... MARINE PROTECTION, RESEARCH, 1,575 1,535 600
AND SANCTUARIES ACT (MPRSA).
33 U.S.C. 1415(a)........................... MPRSA.......................... 248,851/328,265 242,550/319,953 50,000/125,000
33 U.S.C. 1901 note (see 1409(a)(2)(A))..... CERTAIN ALASKAN CRUISE SHIP 18,142/45,354 17,683/44,206 10,000/25,000
OPERATIONS (CACSO).
33 U.S.C. 1901 note (see 1409(a)(2)(B))..... CACSO.......................... 18,142/226,768 17,683/221,026 10,000/125,000
33 U.S.C. 1901 note (see 1409(b)(1))........ CACSO.......................... 45,354 44,206 25,000
33 U.S.C. 1908(b)(1)........................ ACT TO PREVENT POLLUTION FROM 93,058 90,702 25,000
SHIPS (APPS).
33 U.S.C. 1908(b)(2)........................ APPS........................... 18,610 18,139 5,000
42 U.S.C. 300g-3(b)......................... SAFE DRINKING WATER ACT (SDWA). 71,545 69,733 25,000
42 U.S.C. 300g-3(g)(3)(A)................... SDWA........................... 71,545 69,733 25,000
42 U.S.C. 300g-3(g)(3)(B)................... SDWA........................... 14,308/49,848 13,946/48,586 5,000/25,000
42 U.S.C. 300g-3(g)(3)(C)................... SDWA........................... 49,848 48,586 25,000
42 U.S.C. 300h-2(b)(1)...................... SDWA........................... 71,545 69,733 25,000
42 U.S.C. 300h-2(c)(1)...................... SDWA........................... 28,619/357,729 27,894/348,671 10,000/125,000
42 U.S.C. 300h-2(c)(2)...................... SDWA........................... 14,308/357,729 13,946/348,671 5,000/125,000
[[Page 1378]]
42 U.S.C. 300h-3(c)......................... SDWA........................... 24,885/53,088 24,255/51,744 5,000/10,000
42 U.S.C. 300i(b)........................... SDWA........................... 29,911 29,154 15,000
42 U.S.C. 300i-1(c)......................... SDWA........................... 174,109/1,741,100 169,700/1,697,012 100,000/1,000,000
42 U.S.C. 300j(e)(2)........................ SDWA........................... 12,442 12,127 2,500
42 U.S.C. 300j-4(c)......................... SDWA........................... 71,545 69,733 25,000
42 U.S.C. 300j-6(b)(2)...................... SDWA........................... 49,848 48,586 25,000
42 U.S.C. 300j-23(d)........................ SDWA........................... 13,132/131,308 12,799/127,983 5,000/50,000
42 U.S.C. 4852d(b)(5)....................... RESIDENTIAL LEAD-BASED PAINT 22,263 21,699 10,000
HAZARD REDUCTION ACT OF 1992.
42 U.S.C. 4910(a)(2)........................ NOISE CONTROL ACT OF 1972...... 47,041 45,850 10,000
42 U.S.C. 6928(a)(3)........................ RESOURCE CONSERVATION AND 124,426 121,275 25,000
RECOVERY ACT (RCRA).
42 U.S.C. 6928(c)........................... RCRA........................... 74,943 73,045 25,000
42 U.S.C. 6928(g)........................... RCRA........................... 93,058 90,702 25,000
42 U.S.C. 6928(h)(2)........................ RCRA........................... 74,943 73,045 25,000
42 U.S.C. 6934(e)........................... RCRA........................... 18,610 18,139 5,000
42 U.S.C. 6973(b)........................... RCRA........................... 18,610 18,139 5,000
42 U.S.C. 6991e(a)(3)....................... RCRA........................... 74,943 73,045 25,000
42 U.S.C. 6991e(d)(1)....................... RCRA........................... 29,980 29,221 10,000
42 U.S.C. 6991e(d)(2)....................... RCRA........................... 29,980 29,221 10,000
42 U.S.C. 7413(b)........................... CLEAN AIR ACT (CAA)............ 124,426 121,275 25,000
42 U.S.C. 7413(d)(1)........................ CAA............................ 59,114/472,901 57,617/460,926 25,000/200,000
42 U.S.C. 7413(d)(3)........................ CAA............................ 11,823 11,524 5,000
42 U.S.C. 7524(a)........................... CAA............................ 59,114/5,911 57,617/5,761 25,000/2,500
42 U.S.C. 7524(c)(1)........................ CAA............................ 472,901 460,926 200,000
42 U.S.C. 7545(d)(1)........................ CAA............................ 59,114 57,617 25,000
42 U.S.C. 9604(e)(5)(B)..................... COMPREHENSIVE ENVIRONMENTAL 71,545 69,733 25,000
RESPONSE, COMPENSATION, AND
LIABILITY ACT (CERCLA).
42 U.S.C. 9606(b)(1)........................ CERCLA......................... 71,545 69,733 25,000
42 U.S.C. 9609(a)(1)........................ CERCLA......................... 71,545 69,733 25,000
42 U.S.C. 9609(b)........................... CERCLA......................... 71,545/214,637 69,733/209,202 25,000/75,000
42 U.S.C. 9609(c)........................... CERCLA......................... 71,545/214,637 69,733/209,202 25,000/75,000
42 U.S.C. 11045(a).......................... EMERGENCY PLANNING AND 71,545 69,733 25,000
COMMUNITY RIGHT-TO-KNOW ACT
(EPCRA).
42 U.S.C. 11045(b)(1)(A).................... EPCRA.......................... 71,545 69,733 25,000
42 U.S.C. 11045(b)(2)....................... EPCRA.......................... 71,545/214,637 69,733/209,202 25,000/75,000
42 U.S.C. 11045(b)(3)....................... EPCRA.......................... 71,545/214,637 69,733/209,202 25,000/75,000
42 U.S.C. 11045(c)(1)....................... EPCRA.......................... 71,545 69,733 25,000
42 U.S.C. 11045(c)(2)....................... EPCRA.......................... 28,619 27,894 10,000
42 U.S.C. 11045(d)(1)....................... EPCRA.......................... 71,545 69,733 25,000
42 U.S.C. 14304(a)(1)....................... MERCURY-CONTAINING AND 19,942 19,437 10,000
RECHARGEABLE BATTERY
MANAGEMENT ACT (BATTERY ACT).
42 U.S.C. 14304(g).......................... BATTERY ACT.................... 19,942 19,437 10,000
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\1\ Note that 7 U.S.C. 136l(a)(2) contains three separate statutory maximum civil penalty provisions. The first mention of $1,000 and the $500 statutory
maximum civil penalty amount were originally enacted in 1978 (Pub. L. 95-396), and the second mention of $1,000 was enacted in 1972 (Pub. L. 92-516).
* * * * *
[FR Doc. 2025-00206 Filed 1-7-25; 8:45 am]
BILLING CODE 6560-50-P