Civil Monetary Penalty Inflation Adjustment Rule

SUMMARY: The Environmental Protection Agency (``EPA'') is issuing this

final Civil Monetary Penalty Inflation Adjustment Rule as mandated by

the Debt Collection Improvement Act of 1996 to adjust EPA's civil

monetary penalties (``CMPs'') for inflation on a periodic basis. Prior

to this new law, EPA's penalties had never been adjusted for inflation.

This rule will allow EPA's penalties to keep pace with inflation and

thereby maintain the deterrent effect Congress intended when it

originally specified penalties.

This first mandatory adjustment increases almost all of EPA's

penalty provisions by ten percent (except for new penalty provisions

enacted into law in 1996, which are not being increased). The Agency is

required to review its penalties again at least once every four years

thereafter and to adjust them as necessary for inflation according to a

specified formula.

EFFECTIVE DATE: January 30, 1997.

FOR FURTHER INFORMATION CONTACT: Steven M. Spiegel, Office of

Regulatory Enforcement, Multimedia Enforcement Division, Mail Code

2248W, 401 M Street, SW, Washington, D.C. 20460, or at (703) 308-8507.

Further information may also be requested by electronic mail (e-mail)

to: [email protected].

SUPPLEMENTARY INFORMATION: Pursuant to the Federal Civil Penalties

Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note; Pub. L. 101-410,

enacted October 5, 1990; 104 Stat. 890), as amended by the Debt

Collection Improvement Act of 1996 (31 U.S.C. 3701 note; Public Law

104-134, enacted April 26, 1996; 110 Stat. 1321), (``DCIA''), each

Federal agency is required to issue regulations adjusting for inflation

the maximum civil monetary penalties that can be imposed pursuant to

such agency's statutes. With the adoption of this rule implementing

these statutes, all violations which take place after January 30, 1997

will be subject to the new statutory maximum civil penalty amounts.

With the exception of the new penalty provisions added by the 1996

amendments to the Safe Drinking Water Act, all of the statutory penalty

provisions administered by EPA are being increased. All of these

increases are for the maximum allowed, ten percent. The affected

penalty provisions and their statutory maximum amounts are set out in

Table 1 of the new 40 CFR 19.4.

Section 5 of the DCIA sets forth the formula for adjusting the

penalties for inflation:

The inflation adjustment described under section 4 shall be

determined by increasing the maximum CMP or the range of minimum and

maximum CMPs, as applicable, for each CMP by the cost-of-living

adjustment. * * * The term ``cost-of-living'' adjustment is the

percentage for each CMP by which the Consumer Price Index (CPI) for

the month of June of the calendar year preceding the adjustment,

exceeds the Consumer Price Index for the month of June of the

calendar year in which the amount of such CMP was last set or

adjusted pursuant to law. Any increase determined under this

amendment shall be rounded * * *.

However, the DCIA also sets a ten percent cap on the first

adjustment for inflation. Since EPA's penalties have never previously

been adjusted for inflation, this first statutorily required adjustment

will be limited to ten percent. Table A below sets forth each CMP

provision which is being increased pursuant to the DCIA and the

intermediate calculations performed to arrive at the adjusted final

maximum penalty contained in the last column and in today's rule.

Table A.--Summary of Civil Monetary Penalty Inflation Adjustment Calculations

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

Year

penalty Maximum penalty Maximum penalty Maximum penalty

Civil monetary amount Maximum penalty Inflation factor increase amount amount after amount after P.L.

U.S. Code citation penalty description was last amount set by law calculation \1\ after P.L. 101- increase and P.L. 101-410 rounding

set by as of 10/23/96 410 rounding \2\ 101-410 rounding and 10% limit

law

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

7 U.S.C. 1361 (1)..... FEDERAL INSECTICIDE, 1978 $5,000........... 456.7/195.3 $7,000........... $12,000.......... $5,500

FUNGICIDE, &

RODENTICIDE ACT

CIVIL PENALTY--

GENERAL--COMMERCIAL

APPLICATORS, ETC.

7 U.S.C. 1361 (2)..... FEDERAL INSECTICIDE, 1978 500/1,000........ 456.7/195.3 700/1,000........ 1,200/2,000...... 550/1,100

FUNGICIDE, &

RODENTICIDE ACT

CIVIL PENALTY--

PRIVATE APPLICATORS--

1ST & SUBSEQUENT

OFFENSES OR

VIOLATIONS.

15 U.S.C. 2615........ TOXIC SUBSTANCES 1976 25,000........... 456.7/170.1 40,000........... 65,000........... 27,500

CONTROL ACT CIVIL

PENALTY.

15 U.S.C. 2647(a)..... ASBESTOS HAZARD 1986 5,000............ 456.7/327.9 2,000............ 7,000............ 5,500

EMERGENCY RESPONSE

ACT CIVIL PENALTY.

31 U.S.C. 3802(a)(1).. PROGRAM FRAUD CIVIL 1986 5,000............ 456.7/327.9 2,000............ 7,000............ 5,500

REMEDIES ACT/

VIOLATION INVOLVING

FALSE CLAIM.

31 U.S.C. 3802(a)(2).. PROGRAM FRAUD CIVIL 1986 5,000............ 456.7/327.9 2,000............ 7,000............ 5,500

REMEDIES ACT/

VIOLATION INVOLVING

FALSE STATEMENT.

33 U.S.C. 1319(d)..... CLEAN WATER ACT 1987 25,000........... 456.7/340.1 10,000........... 35,000........... 27,500

VIOLATION/CIVIL

JUDICIAL PENALTY.

33 U.S.C. CLEAN WATER ACT 1987 10,000/25,000.... 456.7/340.1 3,000/10,000..... 13,000/35,000.... 11,000/27,500

1319(g)(2)(A). VIOLATION/

ADMINISTRATIVE

PENALTY PER

VIOLATION AND

MAXIMUM.

[[Page 69361]]

33 U.S.C. CLEAN WATER ACT 1987 10,000/125,000... 456.7/340.1 3,000/40,000..... 13,000/165,000... 11,000/137,500

1319(g)(2)(B). VIOLATION/

ADMINISTRATIVE

PENALTY PER

VIOLATION AND

MAXIMUM.

33 U.S.C. CLEAN WATER ACT 1990 10,000/25,000.... 456.7/389.1 2,000/5,000...... 12,000/30,000... 11,000 /27,500

1321(b)(6)(B)(I). VIOLATION/ADMIN

PENALTY OF SEC

311(b)(3) & (j) PER

VIOLATION AND

MAXIMUM.

33 U.S.C. CLEAN WATER ACT 1990 10,000/125,000... 456.7/389.1 2,000/20,000..... 12,000/145,000... 11,000/137,500

1321(b)(6)(B)(ii). VIOLATION/ADMIN

PENALTY OF SEC

311(b)(3) & (j) PER

VIOLATION AND

MAXIMUM.

33 U.S.C. CLEAN WATER ACT 1990 10,000 or........ 456.7/389.1 5,000 or 200..... 15,000 or 1,200.. 11,000 or 1,100

1321(b)(7)(A). VIOLATION/CIVIL 1,000 per b/u.... per barrel/unit.. per barrel/unit.. per

JUDICIAL PENALTY OF barrel or unit

SEC 311(b)(3)--PER

VIOLATION PER DAY OR

PER BARREL OR UNIT.

33 U.S.C. CLEAN WATER ACT 1990 25,000........... 456.7/389.1 5,000............ 30,000........... 27,500

1321(b)(7)(B). VIOLATION/CIVIL

JUDICIAL PENALTY OF

SEC 311 (c) &

(e)(1)(B).

33 U.S.C. 1321(b)(7) CLEAN WATER ACT 1990 25,000........... 456.7/389.1 5,000............ 30,000........... 27,500

C). VIOLATION/CIVIL

JUDICIAL PENALTY OF

SEC 311(j).

33 U.S.C. CLEAN WATER ACT 1990 100,000 or 3,000 456.7/389.1 15,000 or 1,000 115,000 or 4,000 11,000 or

1321(b)(7)(D). VIOLATION/MINIMUM per b/u. per b/u. per barrel/unit. 3,300

CIVIL JUDICIAL per barrel/unit

PENALTY OF SEC

311(b)(3)--PER

VIOLATION OR PER

BARREL/UNIT.

33 U.S.C. 1414b(d).... MARINE PROTECTION, 1988 600.............. 456.7/353.5 200.............. 800.............. 660

RESEARCH AND

SANCTUARIES ACT VIOL

SEC 104b(d).

33 U.S.C. 1415(a)..... MARINE PROTECTION, 1988 50,000/125,000... 456.7/353.5 15,000/40,000.... 65,000/165,000... 55,000/137,500

RESEARCH AND

SANCTUARIES ACT

VIOLATIONS--FIRST &

SUBSEQUENT

VIOLATIONS.

42 U.S.C. 300g-3(b)... SAFE DRINKING WATER 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

ACT/CIVIL JUDICIAL

PENALTY OF SEC

1414(b).

42 U.S.C. 300g-3(c)... SAFE DRINKING WATER 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

ACT/CIVIL JUDICIAL

PENALTY OF SEC

1414(c).

42 U.S.C. 300g- SAFE DRINKING WATER 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

3(g)(3)(A). ACT/CIVIL JUDICIAL

PENALTY OF SEC.

1414(g)(3)(A).

42 U.S.C. 300g- SAFE DRINKING WATER 1986 5,000............ 456.7/327.9 2,000............ 7,000............ 5,500

3(g)(3)(B). ACT/MAXIMUM

ADMINISTRATIVE

PENALTY PER SEC.

1414(g)(3)(B).

42 U.S.C. 300h-2(b)(1) CIVIL JUDICIAL 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

PENALTY/VIOLATIONS

OF REQS--UNDERGROUND

INJECTION CONTROL.

42 U.S.C. 300h-2(c)(1) CIVIL ADMINISTRATIVE 1986 10,000/125,000... 456.7/327.9 4,000/50,000..... 14,000/175,000... 11,000/137,500

PENALTY--VIOLATIONS

OF REQS--UNDERGROUND

INJECTION CONTROL--

PER VIOLATION AND

MAXIMUM.

42 U.S.C. 300h-2(c)(2) CIVIL ADMINISTRATIVE 1986 5,000/125,000.... 456.7/327.9 2,000/50,000..... 7,000/175,000.... 5,500/137,500

PENALTY--VIOLATIONS

OF REQS--UNDERGROUND

INJECTION CONTROL

PER VIOLATION &

MAXIMUM.

42 U.S.C. 300h-3(c)(1) VIOLATION/OPERATION 1974 5,000............ 456.7/146.9 11,000........... 16,000........... 5,500

OF NEW UNDERGROUND

INJECTION WELL.

42 U.S.C. 300h-3(c)(2) WILLFUL VIOLATION/ 1974 10,000........... 456.7/146.9 21,000........... 31,000........... 11,000

OPERATION OF NEW

UNDERGROUND

INJECTION WELL.

42 U.S.C. 300i-1(b)... ATTEMPTING TO OR 1986 20,000/50,000.... 456.7/327.9 10,000/20,000.... 30,000/70,000.... 22,000/55,000

TAMPERING WITH

PUBLIC WATER SYSTEM/

CIVIL JUDICIAL

PENALTY.

42 U.S.C. 300j(e)(2).. FAILURE TO COMPLY W/ 1974 2,500............ 456.7/146.9 5,000............ 7,500............ 2,750

ORDER ISSUED UNDER

SEC. 1`441(c)(1).

42 U.S.C. 300j-4(c)... REFUSAL TO COMPLY 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

WITH REQS OF SEC.

1445(a) OR (b).

[[Page 69362]]

42 U.S.C. 300j-23(d).. VIOLATIONS/SECTION 1988 5,000/50,000..... 456.7/353.5 1,000/15,000..... 6,000/65,000..... 5,500/55,000

1463(b)--FIRST

OFFENSE/REPEAT

OFFENSE.

42 U.S.C. 6928(a)(3).. RESOURCE CONSERVATION 1984 25,000........... 456.7/310.7 10,000........... 35,000........... 27,500

& RECOVERY ACT/

VIOLATION SUBTITLE C

ASSESSED PER ORDER.

42 U.S.C. 6928(c)..... RES. CONS. & REC. ACT/ 1984 25,000........... 456.7/310.7 10,000........... 35,000........... 27,500

CONTINUED

NONCOMPLIANCE OF

COMPLIANCE ORDER.

42 U.S.C. 6928(g)..... RESOURCE CONSERVATION 1976 25,000........... 456.7/170.1 40,000........... 65,000........... 27,500

& RECOVERY ACT/

VIOLATION SUBTITLE C.

42 U.S.C. 6928(h)(2).. RES. CONS. & REC. ACT/ 1984 25,000........... 456.7/310.7 10,000........... 35,000........... 27,500

NONCOMPLIANCE OF

CORRECTIVE ACTION

ORDER.

42 U.S.C. 6934(e)..... RES. CONS. & REC. ACT/ 1976 25,000........... 456.7/170.1 8,000............ 13,000........... 5,500

NONCOMPLIANCE WITH

SECTION 3013 ORDER.

42 U.S.C. 6973(b)..... RES. CONS. & REC. ACT/ 1976 5,000............ 456.7/170.1 8,000............ 13,000........... 5,500

VIOLATIONS OF

ADMINISTRATIVE ORDER.

42 U.S.C. 6991e(a)(3). RES. CONS. & REC. ACT/ 1984 25,000........... 456.7/310.7 10,000........... 35,000........... 27,500

NONCOMPLIANCE WITH

UST ADMIN. ORDER.

42 U.S.C. 6991e(d)(1). RES. CONS. & REC. ACT/ 1984 10,000........... 456.7/310.7 5,000............ 15,000........... 11,000

FAILURE TO NOTIFY OR

SUBMIT FALSE INFO.

42 U.S.C. 6991e(d) (2) VIOLATIONS OF 1984 10,000........... 456.7/310.7 5,000............ 15,000........... 11,000

SPECIFIED UST

REGULATORY

REQUIREMENTS.

42 U.S.C. 6992(d) (2). NONCOMPLIANCE W/ 1988 25,000........... 456.7/353.5 5,000............ 30,000........... 27,500

MEDICAL WASTE

TRACKING ACT

ASSESSED THRU ADMIN

ORDER.

42 U.S.C. 6992d(a) (4) NONCOMPLIANCE W/ 1988 25,000........... 456.7/353.5 5,000............ 30,000........... 27,500

MEDICAL WASTE

TRACKING ACT ADMIN

ORDER.

42 U.S.C. 6992d(d).... MEDICAL WASTE 1988 25,000........... 456.7/353.5 5,000............ 30,000........... 27,500

TRACKING ACT

VIOLATIONS--JUDICIAL

PENALTY.

42 U.S.C. 7413(b)..... CLEAN AIR ACT/ 1977 25,000........... 456.7/181.8 40,000........... 65,000........... 27,500

VIOLATIONS/OWNERS &

OPS OF STATIONARY

AIR POLLUTION

SOURCES--JUDICIAL

PENALTIES.

42 U.S.C. 7413(d)(1).. CLEAN AIR ACT/ 1977 25,000/200,000... 456.7/181.8 40,000/300,000... 65,000/300,000... 27,500/220,000

STATIONARY AIR

POLLUTION SOURCES--

ADMINISTRATIVE

PENALTIES PER

VIOLATION AND

MAXIMUM.

42 U.S.C. 7413(d)(3).. CLEAN AIR ACT/MINOR 1990 5,000............ 456.7/389.1 1,000............ 6,000............ 5,500

VIOLATIONS/

STATIONARY AIR

POLLUTION SOURCES--

FIELD CITATIONS.

42 U.S.C. 7524(a)..... TAMPERING OR 1977 2,500............ 456.7/181.8 2,000............ 6,500............ 2,750

MANUFACTURE/SALE OF

DEFEAT DEVICES IN

VIOLATION OF

7522(a)(3)(A) OR

(a)(3)(B)--BY

PERSONS.

42 U.S.C. 7524(a)..... VIOLATION OF 7522 1990 25,000........... 456.7/389.1 5,000............ 30,000........... 27,500

(a)(3)(A) OR

(a)(3)(B)--BY

MANUFACTURERS OR

DEALERS; ALL

VIOLATIONS OF

7522(a) (1), (2),

(4), & (5) BY ANYONE.

42 U.S.C. 7524(c)..... ADMINISTRATIVE 1990 200,000.......... 456.7/389.1 30,000........... 230,000.......... 220,000

PENALTIES AS SET IN

7524(a) & 7545(d)

WITH A MAXIMUM

ADMINISTRATIVE

PENALTY.

42 U.S.C. 7545(d)..... VIOLATIONS OF FUELS 1990 25,000........... 456.7/389.1 5,000............ 30,000........... 27,500

REGULATIONS.

42 U.S.C. SUPERFUND AMEND. & 1986 25,000........... 456.7/389.1 10,000........... 35,000........... 27,500

9604(e)(5)(B). REAUTHORIZATION ACT/

NONCOMPLIANCE W/

REQUEST FOR INFO OR

ACCESS.

42 U.S.C. 9606(b)..... SUPERFUND/WORK NOT 1986 25,000........... 456.7/389.1 10,000........... 35,000........... 27,500

PERFORMED W/

IMMINENT,

SUBSTANTIAL

ENDANGERMENT.

[[Page 69363]]

42 U.S.C. 9609(a) & SUPERFUND/ADMIN. 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

(b). PENALTY VIOLATIONS

UNDER 42 U.S.C.

SECT. 9603, 9608, OR

9622+.

42 U.S.C. 9609(b)..... SUPERFUND/ADMIN. 1986 75,000........... 456.7/327.9 30,000........... 105,000.......... 82,500

PENALTY VIOLATIONS--

SUBSEQUENT.

42 U.S.C. 9609(c)..... SUPERFUND/CIVIL 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

JUDICIAL PENALTY/

VIOLATIONS OF SECT.

9603, 9608, 9622.

42 U.S.C. 9609(c)..... SUPERFUND/CIVIL 1986 75,000........... 456.7/327.9 30,000........... 105,000.......... 82,500

JUDICIAL PENALTY/

SUBSEQUENT

VIOLATIONS OF SECT.

9603, 9608, 9622.

42 U.S.C. 11045(a) & EMERGENCY PLANNING 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

(b) (1), (2) & (3). AND COMMUNITY RIGHT-

T0-KNOW ACT CLASS I

& II ADMINISTRATIVE

AND CIVIL PENALTIES.

42 U.S.C. 11045(b) (2) EPCRA CLASS I & II 1986 75,000........... 456.7/327.9 30,000........... 105,000.......... 82,500

& (3). ADMINISTRATIVE AND

CIVIL PENALTIES--

SUBSEQUENT

VIOLATIONS.

42 U.S.C. 11045(c)(1). EPCRA CIVIL AND 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

ADMINISTRATIVE

REPORTING PENALTIES

FOR VIOLATIONS OF

SECTIONS 11022 OR

11023.

42 U.S.C. 11045(c)(2). EPCRA CIVIL AND 1986 10,000........... 456.7/327.9 4,000............ 14,000........... 11,000

ADMINISTRATIVE

REPORTING PENALTIES

FOR VIOLATIONS OF

SECTIONS 11021 OR

11043(b).

42 U.S.C. 11045(d) (2) EPCRA--FRIVOLOUS 1986 25,000........... 456.7/327.9 10,000........... 35,000........... 27,500

& (3). TRADE SECRET CLAIMS--

CIVIL AND

ADMINISTRATIVE

PENALTIES.

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

\1\ The ``inflation factor'' is the result of dividing the June 1995 CPI by the CPI for June of the year the penalty was last set or adjusted.

\2\ The penalties must be rounded after the inflation adjustment pursuant to Public Law 101-410 Sec. 5A.

Future adjustments also be made in accordance with the statutory

formula. Since today's inflation adjustments are being made in December

1996, the next scheduled adjustment will cover inflation from June 1996

to June of the year in which the next adjustment is made. The DCIA

requires that penalties be adjusted for inflation at least once every

four years.

Procedural Requirements

I. Administrative Procedure Act

In accordance with 5 U.S.C. 553(b), the Administrative Procedure

Act (``APA''), EPA generally publishes a rule in a proposed form and

solicits public comment on it before issuing the rule in final.

However, 5 U.S.C. 553(b)(3)(B), of the APA provides an exception to the

public comment requirement if the agency finds good cause to omit

advance notice and public participation. Good cause is shown when

public comment is ``impracticable, unnecessary, or contrary to the

public interest''.

Accordingly, EPA finds that providing an opportunity for public

comment prior to publication of this rule is not necessary because EPA

is carrying out a ministerial, non-discretionary duty specified in an

Act of Congress. This rule incorporates requirements specifically set

forth in the DCIA requiring EPA to issue a regulation implementing

inflation adjustments for all its civil penalty provisions by October

23, 1996. The formula for the amount of the penalty adjustment is

prescribed by Congress in the DCIA as well. Prior notice and

opportunity to comment are therefore unnecessary in this case because

these changes are not subject to the exercise of discretion by EPA.

These technical changes, required by law, do not substantively alter

the existing regulatory framework nor in any way affect the terms under

which civil penalties are assessed by EPA.

II. Small Business Regulatory Enforcement Fairness Act

Under 5 U.S.C. 801(a)(1)(A), as added by the Small Business

Regulatory Enforcement Fairness Act of 1996 (``SBREFA''), EPA submitted

a report containing this rule and other required information to the

U.S. Senate, the U.S. House of Representatives and the Comptroller

General of the United States prior to publication of the rule in

today's Federal Register. This rule is a not a ``major rule'' as

defined by 5 U.S.C. 804(a).

III. Executive Order 12866-Regulatory Review

Under Executive Order 12866, (58 FR 51735 (October 4, 1993)), the

Agency must determine whether the regulatory action is ``significant''

and therefore subject to Office of Management and Budget (``OMB'')

review and the requirements of the Executive Order. The Executive Order

defines ``significant regulatory action'' as one that is likely to

result in a rule that may:

(1) have an annual effect on the economy of $100 million or more

or adversely affect in a material way the economy, a sector of the

economy, productivity, competition, jobs, the environment, public

health or safety, or State, local, or tribal governments or

communities;

(2) create a serious inconsistency or otherwise interfere with

an action taken or planned by another agency;

(3) materially alter the budgetary impact of entitlements,

grants, user fees, or loan programs or the rights and obligations of

recipients thereof; or

(4) raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

the Executive Order.

[[Page 69364]]

EPA has determined that this rule is not a ``significant regulatory

action'' under the terms of Executive Order 12866 and is therefore not

subject to OMB review.

IV. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 (``UMRA''),

Public Law 104-4, establishes requirements for Federal agencies to

assess the effects of certain regulatory actions on State, local, and

tribal governments and the private sector. Under sections 201, 202 and

205 of the UMRA, EPA generally must assess effects and prepare a

written statement of economic and regulatory alternatives analyses for

proposed and final rules with Federal mandates, as defined by the UMRA,

that may result in expenditures to State, local, and tribal

governments, in the aggregate, or to the private sector, of $100

million or more in any one year.

UMRA Section 201 excepts agencies from assessing effects on State,

local or tribal governments or the private sector of rules that

incorporate requirements specifically set forth in law. Since this rule

incorporates requirements specifically set forth in the DCIA, EPA is

not required to assess its regulatory effects under Section 201.

Further, the section 202 and 205 requirements do not apply to today's

action because they apply only to rules for which a general notice of

proposed rulemaking is published, and such notice was not published for

this rule since it was not required based on the finding of good cause

contained in Section I above. Additionally, today's action contains no

Federal mandates for State, local or tribal governments or for the

private sector because it does not impose any enforceable duties on

these entities.

In addition, even if the assessment requirements of UMRA Title II

otherwise applied to this rule, the requirements of section 203 of UMRA

(requiring EPA to develop a small government agency plan before EPA

establishes any regulatory requirements that may significantly or

uniquely affect small governments, including tribal governments) would

not apply here. This rule contains no regulatory requirements that

might significantly or uniquely affect small governments because the

prescribed inflation adjustments do not change a small government's

regulatory obligations. Additionally, this rule will have a similar

effect on all individuals and entities subject to civil monetary

penalties.

V. Regulatory Flexibility Act

In accordance with 5 U.S.C. 603, the Agency has determined that the

regulation being issued today is not subject to the Regulatory

Flexibility Act (``RFA''), which generally requires an agency to

conduct a regulatory flexibility analysis of any significant impact the

rule will have on a substantial number of small entities. By its terms,

the RFA applies only to rules subject to notice-and-comment rulemaking

requirements under the APA or any other statute. Today's rule is not

subject to notice and comment requirements under the APA or any other

statute because it is exempted. As discussed in Section I, while the

rule is subject to the APA, the Agency has invoked the ``good cause''

exemption from the APA notice and comment requirements.

The Agency nonetheless has assessed the potential of this rule to

adversely impact small entities. This rule contains no regulatory

requirements that might significantly or uniquely affect small entities

because the prescribed inflation adjustments have similar effect on all

entities subject to civil monetary penalties and does not substantively

alter the existing regulatory framework.

VI. Paperwork Reduction Act

This action contains no reporting or record keeping requirements

for any non-federal persons or entities and consequently is not subject

to the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.

List of Subjects

40 CFR Part 19

Environmental protection, Administrative practice and procedure,

Penalties.

40 CFR Part 27

Administrative practice and procedure, Assessments, False claims,

False statements, Penalties.

Dated: December 20, 1996.

Carol M. Browner,

Administrator.

For the reasons set out in the preamble, title 40, chapter I of

the Code of Federal Regulations is amended by adding a new part 19

as follows:

1. By adding a new part 19 to read as follows:

PART 19--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION

Sec.

19.1 Applicability.

19.2 Effective Date.

19.3 [Reserved].

19.4 Penalty Adjustment and Table.

Authority: Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note;

Pub. L. 104-134, 110 Stat. 1321, 31 U.S.C. 3701 note.

PART 19--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION

Sec. 19.1 Applicability.

This part applies to each statutory provision under the laws

administered by the Environmental Protection Agency concerning the

maximum civil monetary penalty which may be assessed in either civil

judicial or administrative proceedings.

Sec. 19.2 Effective Date.

The increased penalty amounts set forth in this rule apply to all

violations under the applicable statutes and regulations which occur

after January 30, 1997.

Sec. 19.3 [Reserved].

Sec. 19.4 Penalty Adjustment and Table.

The adjusted statutory penalty provisions and their maximum

applicable amounts are set out in Table 1. The last column in the table

provides the newly effective maximum penalty amounts.

Table 1 of Section 19.4.--Civil Monetary Penalty Inflation Adjustments

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

U.S. Code citation Civil monetary penalty description New maximum penalty amount

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7 U.S.C. 136(1).................. FEDERAL INSECTICIDE, FUNGICIDE, & RODENTICIDE $5,500

ACT CIVIL PENALTY--GENERAL--COMMERCIAL

APPLICATORS, ETC.

7 U.S.C. 136(2).................. FEDERAL INSECTICIDE, FUNGICIDE, & RODENTICIDE 550/1,000

ACT CIVIL PENALTY--PRIVATE APPLICATORS--

FIRST AND SUBSEQUENT OFFENSES OR VIOLATIONS.

15 U.S.C. 2615................... TOXIC SUBSTANCES CONTROL ACT CIVIL PENALTY... 27,500

15 U.S.C. 2647(a)................ ASBESTOS HAZARD EMERGENCY RESPONSE ACT CIVIL 5,500

PENALTY.

31 U.S.C. 3802(a)(1)............. PROGRAM FRAUD CIVIL REMEDIES ACT/VIOLATION 5,500

INVOLVING FALSE CLAIM.

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31 U.S.C. 3802(a)(2)............. PROGRAM FRAUD CIVIL REMEDIES ACT/VIOLATION 5,500

INVOLVING FALSE STATEMENT.

33 U.S.C. 1319(d)................ CLEAN WATER ACT VIOLATION/CIVIL JUDICIAL 27,500

PENALTY.

33 U.S.C. 1319(g)(2)(A).......... CLEAN WATER ACT VIOLATION/ADMINISTRATIVE 11,000/27,500

PENALTY PER VIOLATION AND MAXIMUM.

33 U.S.C. 1319(g)(2)(B).......... CLEAN WATER ACT VIOLATION/ADMINISTRATIVE 11,000/137,500

PENALTY PER VIOLATION AND MAXIMUM.

33 U.S.C. 1321(b)(6)(B)(I)....... CLEAN WATER ACT VIOLATION/ADMIN PENALTY OF 11,000/27,500

SEC 311(B)(3)&(J) PER VIOLATION AND MAXIMUM.

33 U.S.C. 1321(b)(6)(B)(ii)...... CLEAN WATER ACT VIOLATION/ADMIN PENALTY OF 11,000/137,500

SEC 311(B)(3)&(J) PER VIOLATION AND MAXIMUM.

33 U.S.C. 1321(b)(7)(A).......... CLEAN WATER ACT VIOLATION/CIVIL JUDICIAL 11,000 or 1,100 per barrel or

PENALTY OF SEC 311(b)(3)--PER VIOLATION PER unit

DAY OR PER BARREL OR UNIT.

33 U.S.C. 1321(b)(7)(B).......... CLEAN WATER ACT VIOLATION/CIVIL JUDICIAL 27,500

PENALTY OF SEC 311(c)&(e)(1)(B).

33 U.S.C. 1321(b)(7)(C).......... CLEAN WATER ACT VIOLATION/CIVIL JUDICIAL 27,500

PENALTY OF SEC 311(j).

33 U.S.C. 1321(b)(7)(D).......... CLEAN WATER ACT VIOLATION/MINIMUM CIVIL 11,000 or 3,300

JUDICIAL PENALTY OF SEC 311(b)(3)--PER per barrel or unit

VIOLATION OR PER BARREL/UNIT.

33 U.S.C. 1414b(d)............... MARINE PROTECTION, RESEARCH & SANCTUARIES ACT 660

VIOL SEC 104b(d).

33 U.S.C. 1415(a)................ MARINE PROTECTION RESEARCH AND SANCTUARIES 55,000/137,500

ACT VIOLATIONS--FIRST AND SUBSEQUENT

VIOLATIONS.

42 U.S.C. 300g-3(b).............. SAFE DRINKING WATER ACT/CIVIL JUDICIAL 27,500

PENALTY OF SEC 1414(b).

42 U.S.C. 300g-3(c).............. SAFE DRINKING WATER ACT/CIVIL JUDICIAL 27,500

PENALTY OF SEC 1414(c).

42 U.S.C. 300g-3(g)(3)(A)........ SAFE DRINKING WATER ACT/CIVIL JUDICIAL 27,500

PENALTY OF SEC. 1414(g)(3)(a).

42 U.S.C. 300g-3(g)(3)(B)........ SAFE DRINKING WATER ACT/MAXIMUM 5,500

ADMINISTRATIVE PENALTY PER SEC.

1414(g)(3)(B).

42 U.S.C. 300h-2(b)(1)........... CIVIL JUDICIAL PENALTY/VIOLATIONS OF REQS-- 27,500

UNDERGROUND INJECTION CONTROL (UIC).

42 U.S.C. 300h-2(c)(1)........... CIVIL ADMIN PENALTY/VIOLATIONS OF UIC REQS-- 11,000 / 137,500

PER VIOLATION AND MAXIMUM.

42 U.S.C. 300h-2(c)(2)........... CIVIL ADMIN PENALTY/VIOLATIONS OF UIC REQS-- 11,000

PER VIOLATION AND MAXIMUM.

42 U.S.C. 300h-3(c)(1)........... VIOLATION/OPERATION OF NEW UNDERGROUND 5,500

INJECTION WELL.

42 U.S.C. 300h-3(c)(2)........... WILLFUL VIOLATION/OPERATION OF NEW 11,000

UNDERGROUND INJECTION WELL.

42 U.S.C. 300i-1(b).............. ATTEMPTING TO OR TAMPERING WITH PUBLIC WATER 22,000 / 55,000

SYSTEM/CIVIL JUDICIAL PENALTY.

42 U.S.C. 300j(e)(2)............. FAILURE TO COMPLY W/ORDER ISSUED UNDER SEC. 2,750

1441(c)(1).

42 U.S.C. 300j-4(c).............. REFUSAL TO COMPLY WITH REQS. OF SEC. 1445(a) 27,500

OR (b).

42 U.S.C. 300j-23(d)............. VIOLATIONS/SECTION 1463(b)--FIRST OFFENSE/ 5,500 / 55,000

REPEAT OFFENSE.

42 U.S.C. 6928(a)(3)............. RESOURCE CONSERVATION & RECOVERY ACT/ 27,500

VIOLATION SUBTITLE C ASSESSED PER ORDER.

42 U.S.C. 6928(c)................ RES. CONS. & REC. ACT/CONTINUED NONCOMPLIANCE 27,500

OF COMPLIANCE ORDER.

42 U.S.C. 6928(g)................ RESOURCE CONSERVATION & RECOVERY ACT/ 27,500

VIOLATION SUBTITLE C.

42 U.S.C. 6928(h)(2)............. RES. CONS. & REC. ACT/NONCOMPLIANCE OF 27,500

CORRECTIVE ACTION ORDER.

42 U.S.C. 6934(e)................ RES. CONS. & REC. ACT/NONCOMPLIANCE WITH 5,500

SECTION 3013 ORDER.

42 U.S.C. 6973(b)................ RES. CONS. & REC. ACT/VIOLATIONS OF 5,500

ADMINISTRATIVE ORDER.

42 U.S.C. 6991e(a)(3)............ RES. CONS. & REC. ACT/NONCOMPLIANCE WITH UST 27,500

ADMINISTRATIVE ORDER.

42 U.S.C. 6991e(d)(1)............ RES. CONS. & REC. ACT/FAILURE TO NOTIFY OR 11,000

SUBMIT FALSE INFO.

42 U.S.C. 6991e(d)(2)............ VIOLATIONS OF SPECIFIED UST REGULATORY 11,000

REQUIREMENTS.

42 U.S.C. 6992d(a)(2)............ NONCOMPLIANCE W/MEDICAL WASTE TRACKING ACT 27,500

ASSESSED THRU ADMIN ORDER.

42 U.S.C. 6992d(a)(4)............ NONCOMPLIANCE W/MEDICAL WASTE TRACKING ACT 27,500

ADMINISTRATIVE ORDER.

42 U.S.C. 6992d(d)............... VIOLATIONS OF MEDICAL WASTE TRACKING ACT-- 27,500

JUDICIAL PENALTIES.

42 U.S.C. 7413(b)................ CLEAN AIR ACT/VIOLATION/OWNERS & OPS OF 27,500

STATIONARY AIR POLLUTION SOURCES--JUDICIAL

PENALTIES.

42 U.S.C. 7413(d)(1)............. CLEAN AIR ACT/VIOLATION/OWNERS & OPS OF 27,500/220,000

STATIONARY AIR POLLUTION SOURCES--

ADMINISTRATIVE PENALTIES PER VIOLATION & MAX.

42 U.S.C. 7413(d)(3)............. CLEAN AIR ACT/MINOR VIOLATIONS/STATIONARY AIR 5,500

POLLUTION SOURCES--FIELD CITATIONS.

42 U.S.C. 7524(a)................ TAMPERING OR MANUFACTURE/SALE OF DEFEAT 2,750

DEVICES IN VIOLATION OF 7522(a)(3)(A) OR

(a)(3)(B)--BY PERSONS.

42 U.S.C. 7524(a)................ VIOLATION OF 7522(a)(3)(A) OR (a)(3)(B)--BY 27,500

MANUFACTURERS OR DEALERS; ALL VIOLATIONS OF

7522(a)(1), (2), (4), & (5) BY ANYONE.

42 U.S.C. 7524(c)................ ADMINISTRATIVE PENALTIES AS SET IN 7524(a) & 220,000

(7545(d) WITH A MAXIMUM ADMINISTRATIVE

PENALTY.

42 U.S.C. 7545(d)................ VIOLATIONS OF FUELS REGULATIONS.............. 27,500

42 U.S.C. 9604(e)(5)(B).......... SUPERFUND AMEND. & REAUTHORIZATION ACT/ 27,500

NONCOMPLIANCE W/REQUEST FOR INFO OR ACCESS.

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42 U.S.C. 9606(b)................ SUPERFUND/WORK NOT PERFORMED W/IMMINENT, 27,500

SUBSTANTIAL ENDANGERMENT.

42 U.S.C. 9609(a) & (b).......... SUPERFUND/ADMIN. PENALTY VIOLATIONS UNDER 42 27,500

U.S.C. SECT. 9603, 9608, OR 9622.

42 U.S.C. 9609(b)................ SUPERFUND/ADMIN. PENALTY VIOLATIONS-- 82,500

SUBSEQUENT.

42 U.S.C. 9609(c)................ SUPERFUND/CIVIL JUDICIAL PENALTY/VIOLATIONS 27,500

OF SECT. 9603, 9608, 9622.

42 U.S.C. 9609(c)................ SUPERFUND/CIVIL JUDICIAL PENALTY/SUBSEQUENT 82,500

VIOLATIONS OF SECT. 9603, 9608, 9622.

42 U.S.C. 11045(a) & (b)(1), (2) EMERGENCY PLANNING AND COMMUNITY RIGHT-TO- 27,500

& (3). KNOW ACT CLASS I & II ADMINISTRATIVE AND

CIVIL PENALTIES.

42 U.S.C. 11045(b) & (2)(3)...... EPCRA CLASS I & II ADMINISTRATIVE AND CIVIL 82,500

PENALTIES--SUBSEQUENT VIOLATIONS.

42 U.S.C. 11045(c)(1)............ EPCRA CIVIL AND ADMINISTRATIVE REPORTING 27,500

PENALTIES FOR VIOLATIONS OF SECTIONS 11022

OR 11023.

42 U.S.C. 11045(c)(2)............ EPCRA CIVIL AND ADMINISTRATIVE REPORTING 11,000

PENALTIES FOR VIOLATIONS OF SECTIONS 11021

OR 11043(b).

42 U.S.C. 11045(d) & (2)(3)...... EPCRA--FRIVOLOUS TRADE SECRET CLAIMS--CIVIL 27,500

AND ADMINISTRATIVE PENALTIES.

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PART 27--[AMENDED]

2. The authority citation for part 27 is revised to read as

follows:

Authority: 31 U.S.C. 3801-3812; Pub. L. 101-410, 104 Stat. 890,

28 U.S.C. 2461 note; Pub. L. 104-134, 110 Stat. 1321, 31 U.S.C. 3701

note.

4. Section 27.3 is amended by revising paragraphs (a)(1) and (b)(1)

to read as follows:

Sec. 27.3 Basis for civil penalties and assessments.

(a) Claims. (1) Except as provided in paragraph (c) of this

section, any person who makes a claim that the person knows or has

reason to know--

(i) Is false, fictitious, or fraudulent;

(ii) Includes or is supported by any written statement which

asserts a material fact which is false, fictitious, or fraudulent;

(iii) Includes, or is supported by, any written statement that--

(A) Omits a material fact;

(B) Is false, fictitious, or fraudulent as a result of such

omission; and

(C) Is a statement in which the person making such statement has a

duty to include such material fact; or

(iv) Is for payment for the provision of property or services which

the person has not provided as claimed, shall be subject, in addition

to any other remedy that may be prescribed by law, to a civil penalty

of not more than $5,500 1 for each such claim.

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\1\ As adjusted in accordance with 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 (Pub. L.

104-134, 110 Stat. 1321).

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(b) Statements. (1) Except as provided in paragraph (c) of this

section, any person who makes a written statement that--

(i) The person knows or has reason to know--

(A) Asserts a material fact which is false, factitious, or

fraudulent; or

(B) Is false, factitious, or fraudulent because it omits a material

fact that the person making the statement has a duty to include in such

statement; and

(ii) Contains, or is accompanied by, an express certification or

affirmation of the truthfulness and accuracy of the contents of the

statement, shall be subject, in addition to any other remedy that may

be prescribed by law, to a civil penalty of not more than $5,500 2

for each such statement.

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\2\ As adjusted in accordance with 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 (Pub. L.

104-134, 110 Stat. 1321).

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[FR Doc. 96-32972 Filed 12-30-96; 8:45 am]

BILLING CODE 6560-50-P