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Federal Register / Vol. 86, No. 22 / Thursday, February 4, 2021 / Rules and Regulations
of 1990 1990 Adjustment Act,2
required the head of each Federal agency to issue a rule by July 2016
adjusting for inflation each civil monetary penalty provided by law within the agencys jurisdiction and to make further inflation adjustments on an annual basis every January 15
thereafter.3

jbell on DSKJLSW7X2PROD with RULES

II. Discussion 3. The 2015 Adjustment Act defines a civil monetary penalty as any penalty, fine, or other sanction that: Ai Is for a specific monetary amount as provided by Federal law; or ii has a maximum amount provided for by Federal law; B
is assessed or enforced by an agency pursuant to Federal law; and C is assessed or enforced pursuant to an administrative proceeding or a civil
action in the federal courts.4 This definition applies to the maximum civil penalties that may be imposed under the Federal Power Act FPA,5 the Natural Gas Act NGA,6 the Natural Gas Policy Act of 1978 NGPA,7 and the Interstate Commerce Act ICA.8
4. Under the 2015 Adjustment Act, the first step for such adjustment of a civil monetary penalty for inflation requires determining the percentage by which the U.S. Department of Labors Consumer Price Index for all-urban consumers CPIU for October of the preceding year exceeds the CPIU for October of the year before that.9 The CPIU for October 2020 exceeded the CPIU for October 2019 by 1.182%.10
5. The second step requires multiplying the CPIU percentage increase by the applicable existing
maximum civil monetary penalty.11
This step results in a base penalty increase amount.
6. The third step requires rounding the base penalty increase amount to the nearest dollar and adding that amount to the base penalty to calculate the new adjusted maximum civil monetary penalty.12
7. Under the 2015 Adjustment Act, an agency is directed to use the maximum civil monetary penalty applicable at the time of assessment of a civil penalty, regardless of the date on which the violation occurred.13
8. The adjustments that the Commission is required to make pursuant to the 2015 Adjustment Act are reflected in the following table:
New adjusted maximum civil monetary penalty
Source
Existing maximum civil monetary penalty
16 U.S.C. 825o1b, Sec. 316A of the Federal Power Act.
16 U.S.C. 823bc, Sec. 31c of the Federal Power Act 16 U.S.C. 825na, Sec. 315a of the Federal Power Act.
15 U.S.C. 717t1, Sec. 22 of the Natural Gas Act
15 U.S.C. 3414b6Ai, Sec. 504b6Ai of the Natural Gas Policy Act of 1978.
49 App. U.S.C. 610 1988, Sec. 610 of the Interstate Commerce Act.
49 App. U.S.C. 168 1988, Sec. 168 of the Interstate Commerce Act.
49 App. U.S.C. 19ak 1988, Sec. 19ak of the Interstate Commerce Act.
49 App. U.S.C. 207a 1988, Sec. 207a of the Interstate Commerce Act.

$1,291,894 per violation, per day

$1,307,164 per violation, per day.

$23,331 per violation, per day
$3,047 per violation

$23,607 per violation, per day.
$3,083 per violation.

$1,291,894 per violation, per day
$1,291,894 per violation, per day

$1,307,164 per violation, per day.
$1,307,164 per violation, per day.

$1,352 per offense and $68 per day after the first day.
$13,525 per violation, per day

$1,368 per offense and $69 per day after the first day.
$13,685 per violation, per day.

$1,352 per offense, per day

$1,368 per offense, per day.

$1,352 per offense, per day

$1,368 per offense, per day.

III. Administrative Findings
IV. Regulatory Flexibility Statement
V. Paperwork Reduction Act
9. Congress directed that agencies issue final rules to adjust their maximum civil monetary penalties notwithstanding the requirements of the Administrative Procedure Act APA.14
Because the Commission is required by law to undertake these inflation adjustments notwithstanding the notice and comment requirements that otherwise would apply pursuant to the APA, and because the Commission lacks discretion with respect to the method and amount of the adjustments, prior notice and comment would be impractical, unnecessary, and contrary to the public interest.

10. The Regulatory Flexibility Act, as amended, requires agencies to certify that rules promulgated under their authority will not have a significant economic impact on a substantial number of small businesses.15 The requirements of the Regulatory Flexibility Act apply only to rules promulgated following notice and comment.16 The requirements of the Regulatory Flexibility Act do not apply to this rulemaking because the Commission is issuing this final rule without notice and comment.

11. This rule does not require the collection of information. The Commission is therefore not required to submit this rule for review to the Office of Management and Budget pursuant to the Paperwork Reduction Act of 1995.17

2 Public Law 101410, 104 Stat. 890 codified as amended at 28 U.S.C. 2461 note.
3 28 U.S.C. 2461 note, at 4. The Commission made its January 2020 adjustment on January 2, 2020, in Docket No. RM202000. See Civil Monetary Penalty Inflation Adjustments, Order No.
865, 85 FR 2016 Jan. 14, 2020, 170 FERC 61,001
2020.
4 28 U.S.C. note at 3.

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U.S.C. 791a et seq.
U.S.C. 717 et seq.
7 15 U.S.C. 3301 et seq.
8 49 App. U.S.C. 1 et seq. 1988.
9 28 U.S.C. 2461 note at 5b1.
10 See, e.g., Memorandum from Russell T. Vought, Office of Management and Budget, Implementation of the Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil Penalties Inflation 6 15

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VI. Document Availability 12. In addition to publishing the full text of this document in the Federal Register, the Commission provides all interested persons an opportunity to view and print the contents of this document via the internet through the Commissions Home Page http
www.ferc.gov. At this time, the Commission has suspended access to Adjustment Act Improvements Act of 2015 Dec. 23, 2020.
11 28 U.S.C. 2461 note at 5a.
12 Id.
13 Id. at 6.
14 Id. at 3b2.
15 5 U.S.C. 601 et seq.
16 5 U.S.C. 603, 604.
17 44 U.S.C. 3507d.

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