[Federal Register Volume 75, Number 143 (Tuesday, July 27, 2010)]
[Rules and Regulations]
[Pages 43840-43844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-18321]
[[Page 43840]]
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DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
49 CFR Part 209
[Docket No. FRA-2004-17530; Notice No. 2]
RIN 2130-ZA03
Inflation Adjustment of the Ordinary Maximum and Aggravated
Maximum Civil Monetary Penalties for a Violation of the Hazardous
Material Transportation Laws and Regulations
AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).
ACTION: Final rule.
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SUMMARY: FRA is adjusting the ordinary maximum penalty and the
aggravated maximum penalty that it will apply when assessing a civil
monetary penalty for a violation of the Federal hazardous material
transportation laws or a regulation, special permit, or approval issued
under those laws. The aggravated maximum penalty is available only for
a violation that results in death, serious illness, or severe injury to
any person or substantial destruction of property. In particular, FRA
is increasing the ordinary maximum civil monetary penalty per violation
from $50,000 to $55,000 and the aggravated maximum civil penalty from
$100,000 to $110,000. The minimum civil monetary penalty for a
violation related to training remains at $450. The minimum civil
monetary penalty per violation for other hazardous material violations
remains at $250. These adjustments are required by the Federal Civil
Penalties Inflation Adjustment Act of 1990 as amended by the Debt
Collection Improvement Act of 1996.
DATES: Effective Date: September 27, 2010.
FOR FURTHER INFORMATION CONTACT: Roberta J. Stewart, Trial Attorney,
Office of Chief Counsel, FRA, 1200 New Jersey Avenue, SE., Mail Stop
10, Washington, DC 20590 (telephone 202-493-6027),
[email protected].
SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation
Adjustment Act of 1990 (Inflation Act) requires that an agency adjust
by regulation each maximum civil monetary penalty (CMP), or range of
minimum and maximum penalties, within that agency's jurisdiction by
October 23, 1996, and adjust those penalty amounts once every four
years thereafter to reflect inflation. Public Law 101-410, 104 Stat.
890, 28 U.S.C. 2461, note, as amended by Section 31001(s)(1) of the
Debt Collection Improvement Act of 1996, Public Law 104-134, 110 Stat.
1321-373, April 26, 1996. Congress recognized the important role that
civil penalties play in deterring violations of Federal laws and
regulations and realized that inflation has diminished the impact of
these penalties. In the Inflation Act, Congress found a way to counter
the effect that inflation has had on the civil penalties by having the
agencies charged with enforcement responsibility administratively
adjust the civil penalties.
This final rule is published under the authority of 49 U.S.C. 5123
and 5124, which provide civil and criminal penalties for violations of
Federal hazardous material transportation law or a regulation, order,
special permit or approval issued under that law. The hazardous
material transportation regulations are issued by the Pipeline and
Hazardous Materials Safety Administration (PHMSA). 49 CFR 1.53(b). FRA
is authorized as the delegate of the Secretary of Transportation to
enforce the hazardous material statutes and regulations. 49 CFR
1.49(s).
Calculation of the Adjustment
The Inflation Act requires each Federal agency to periodically
adjust CMPs that it administers to consider the effects of inflation.
The Inflation Act is set forth in a note to 29 U.S.C. 2461. According
to Section 5 of the Inflation Act, the maximum and minimum CMPs must be
increased based on a ``cost-of-living adjustment'' determined by the
increase in the Consumer Price Index (CPI) for the month of June of the
calendar year preceding the adjustment as compared to the CPI for the
month of June in the year in which the last adjustment was made. The
Inflation Act also specifies that the amount of the adjustment must be
rounded to the nearest multiple of $100 for a penalty between $100 and
$1,000; that the amount of the adjustment must be rounded to the
nearest multiple of $5,000, for a penalty between $10,000 and $100,000;
and that the first CMP adjustment is limited to 10 percent of the
original penalty amount. Any increased CMP applies only to violations
that occur after the date the increase takes effect. FRA utilizes
Bureau of Labor Statistics data to calculate inflation adjusted CMP
amounts.
Section 7120 of the Hazardous Materials Safety and Security
Reauthorization Act of 2005 (Title VII of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users
(``SAFETEA-LU,'' Pub. L. 109-59, 119 Stat. 1905)) amended 49 U.S.C.
5123(a) to reset the maximum and minimum CMPs for a knowing violation
of the Federal hazardous material transportation laws, 49 U.S.C. 5101
et seq., or a regulation, order, special permit, or approval issued
under that law as follows:
--Maximum civil penalty: $50,000, except that amount may be increased
to $100,000 for a violation that results in death, serious illness, or
severe injury to a person or substantial destruction of property.
--Minimum civil penalty: $250, except that the minimum civil penalty
for a violation related to training is $450.
Before the enactment of SAFETEA-LU, the inflation-adjusted maximum
civil penalty for a hazardous material violation was $32,500, and the
inflation-adjusted minimum civil penalty for a hazardous materials
violation was $275. 69 FR 30590, May 28, 2004. To implement these
SAFETEA-LU amendments to the maximum and minimum penalties, FRA issued
a final rule that was published on December 26, 2006, 71 FR 77293,
making the new maximum and minimum penalties effective with respect to
violations on or after December 26, 2006.
Under the Inflation Act, FRA is now required to adjust the maximum
and minimum civil penalties set forth in 49 U.S.C. 5123(a), as amended
by SAFETEA-LU. Because these adjustments are the first adjustments to
the amounts reset in SAFETEA-LU, an increase in the maximum and minimum
civil penalty amounts is limited to 10 percent.
Because this adjustment and the amount thereof are mandated by
statute, notice of proposed rulemaking is unnecessary, and there is
good cause to make the adjusted ordinary maximum and aggravated maximum
civil penalties applicable to any violation occurring on or after
September 27, 2010. 5 U.S.C. 553(b), (d).
PHMSA recently issued a final rule to adjust its maximum and
minimum civil monetary penalties per the Inflation Act. See 74 FR 68701
(December 29, 2009). FRA's maximum and minimum CMPs that it assesses
for violations of the hazardous material transportation laws and
regulations have historically mirrored PHMSA's. However, for this round
of CMP inflation adjustments, FRA notes that there is one discrepancy
between PHMSA's adjusted CMPs and FRA's adjusted CMPs. Because PHMSA's
inflation adjustments were performed in calendar year 2009, PHMSA
calculated its new maximum
[[Page 43841]]
and minimum penalties using the CPIs from June 2008 and June 2005. FRA,
on the other hand, is calculating the inflation adjustment of its CMPs
for hazardous material violations in calendar year 2010, and is
therefore using the CPIs from June 2009 and June 2005. The CPI increase
between June 2008 and June 2005 was greater than the CPI increase
between June 2009 and June 2005. As calculated by PHMSA, its minimum
CMP for violations related to training increased ten percent from $450
to $495. 74 FR 68701. In FRA's calculations, as described below, the
minimum CMP for violations related to training remains at $450, due to
the different years of CPIs used to calculate the inflation increase.
Calculations To Determine Hazardous Material Civil Monetary Penalty
Updates for Violations On or After September 27, 2010
1. Ordinary and Aggravated Maximum Civil Monetary Penalties
As required, this year FRA reevaluated the ordinary and aggravated
maximum hazardous material civil penalties and concluded that they
should be increased to $55,000 and $110,000, respectively, as the next
calculations show. The June 2009 CPI of 646.121 (the CPI in the year
before the year that the present adjustment is being made) divided by
the CPI for June 2005 of 582.6 (the year that the then-current maximum
penalty of $32,500 was reset by SAFETEA-LU) equals an inflation factor
of 1.10903; $50,000 times 1.10903 equals $55,451.50. The raw inflation
adjustment amount of $5,452 is rounded to the nearest $5,000, which is
$5,000. Because this is the first adjustment for this penalty, any
increase is capped at 10 percent of the current penalty amount; $5,000
is 10 percent of $50,000 and does not exceed the 10 percent limit.
Therefore, the inflation-adjusted ordinary maximum CMP is $50,000 plus
$5,000, or $55,000, and is applicable to all of the hazardous material
laws and regulations enforced by FRA.
Applying the same calculations to the $100,000 aggravated maximum
penalty for certain, more serious violations, $100,000 times 1.10903
equals $110,903. The raw inflation adjustment amount of $10,903 is
rounded to the nearest $5,000, which is $10,000. Because this is the
first adjustment for this penalty, any increase is capped at 10 percent
of the current penalty amount; $10,000 is 10 percent of $100,000 and
does not exceed the 10 percent limit. Therefore, the inflation-adjusted
aggravated maximum CMP for certain hazardous material violations is
$110,000. This maximum may apply to CMPs for a violation of the
hazardous material laws or regulations that results in death, serious
illness, or severe injury to a person or substantial destruction of
property. The new ordinary and aggravated maximum CMPs will apply to
violations that occur on or after September 27, 2010.
2. Minimum Civil Monetary Penalty for Hazardous Materials Violations
Related to Training
FRA also reevaluated the minimum CMP for a training violation and
determined that it should remain at $450, as the following calculations
show: $450 times the inflation factor of 1.10903 equals $499. The raw
inflation adjustment amount of $49 is rounded to the nearest $100,
which is $0. The inflation-adjusted minimum CMP for training violations
therefore does not change, and remains at $450.
3. Minimum Civil Monetary Penalty for All Other Hazardous Material
Violations
Applying the adjustment calculation, FRA has determined that the
minimum CMP for all other hazardous material violations should remain
at $250, as the following calculations show: $250 times the inflation
factor of 1.10903 equals $277. The raw inflation adjustment amount of
$27 is rounded to the nearest $100, which is $0. Therefore, the minimum
CMP remains at $250.
Public Participation
FRA is proceeding to a final rule without providing a notice of
proposed rulemaking or an opportunity for public comment. Public
comment is unnecessary because, in making these technical amendments,
FRA is not exercising discretion in a way that could be informed by
public comment. As such, notice and comment procedures are
``impracticable, unnecessary, or contrary to the public interest''
within the meaning of the Administrative Procedure Act, 5 U.S.C.
553(b)(3)(B). Likewise, the adjustments required by the Inflation Act
are ministerial acts over which FRA has no discretion, making public
comment unnecessary. FRA is issuing these amendments as a final rule
applicable to all future hazardous material civil penalty cases under
its authority to cite for violations that occur on or after the
effective date of this final rule.
Regulatory Impact
A. Executive Order 12866 and DOT Regulatory Policies and Procedures
This rule has been evaluated in accordance with existing policies
and procedures. It is not considered a significant regulatory action
under section 3(f) of Executive Order 12866 and, therefore, was not
reviewed by the Office of Management and Budget (OMB). This rule is not
significant under DOT Regulatory Policies and Procedures. 44 FR 11034.
The cost of complying with existing substantive regulations is not
being increased. The adjustment for inflation of the maximum and
minimum CMP is a limited ministerial act over which the agency has no
discretion. The economic impact of the final rule is minimal to the
extent that preparation of a regulatory evaluation is not warranted.
B. Regulatory Flexibility Determination
FRA certifies that this final rule will not have a significant
economic impact on a substantial number of small entities. This rule
applies to shippers and carriers of hazardous material and persons who
manufacture, mark, certify, or sell packagings, containers and
packaging components as qualified for use in transporting hazardous
materials in commerce, some of whom are small entities. However, there
is no economic impact on any person who complies with Federal hazardous
material transportation law and the regulations, orders, special
permits and approvals issued under that law.
C. Federalism
This final rule has been analyzed in accordance with the principles
and criteria contained in Executive Order 13132 (``Federalism''), and
the President's May 20, 2009 memorandum on ``Preemption'' (74 FR 24693,
May 22, 2009). As amended in 2005, 49 U.S.C. 5125(h) provided that the
preemption provisions in Federal hazardous material transportation law
do ``not apply to any * * * penalty * * * utilized by a State,
political subdivision of a State, or Indian tribe to enforce a
requirement applicable to the transportation of hazardous material.''
Accordingly, this final rule does not have any preemptive effect on the
amount or nature of penalties imposed by a State, local, or Indian
Tribal government for violations of their requirements which are
consistent with requirements in Federal hazardous material
transportation law and the regulations prescribed under that law.
Preparation of a federalism assessment is not warranted.
D. International Trade Impact Assessment
The Trade Agreement Act of 1979 prohibits Federal agencies from
engaging in any standards or related activities that create unnecessary
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obstacles to the foreign commerce of the United States. Legitimate
domestic objectives, such as safety, are not considered unnecessary
obstacles. The statute also requires consideration of international
standards and where appropriate, that they be the basis for U.S.
standards. This rulemaking is purely domestic in nature and is not
expected to affect trade opportunities for U.S. firms doing business
overseas or for foreign firms doing business in the United States.
E. Paperwork Reduction Act
There are no new information collection requirements in this final
rule.
F. Compliance With the Unfunded Mandates Reform Act of 1995
The final rule issued today will not result in the expenditure, in
the aggregate, of $141,300,000 or more in any one year by State, local,
or Indian Tribal governments, or the private sector, and thus
preparation of a statement is not required.
G. Environmental Assessment
There are no significant environmental impacts associated with this
final rule.
H. Energy Impact
According to definitions set forth in Executive Order 13211, there
will be no significant energy action as a result of the issuance of
this final rule.
I. Privacy Act
Anyone is able to search the electronic form of any written
communications and comments received into any of our dockets by the
name of the individual submitting the document (or signing the
document, if submitted on behalf of an association, business, labor
union, etc.). You may review DOT's complete Privacy Act Statement in
the Federal Register published on April 11, 2000 (Volume 65, Number 70,
pages 19477-78) or online at http://www.dot.gov/privacy.html.
List of Subjects in 49 CFR Part 209
Administrative practice and procedure, Hazardous materials
transportation, Penalties, Railroad safety, Reporting and recordkeeping
requirements.
The Final Rule
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In consideration of the foregoing, Part 209 of Subtitle B, Chapter II
of Title 49 of the Code of Federal Regulations is amended as follows:
PART 209--[AMENDED]
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1. The authority citation for Part 209 continues to read as follows:
Authority: 49 U.S.C. 5123, 5124, 20103, 20107, 20111, 20112,
20114; 28 U.S.C. 2461, note; and 49 CFR 1.49.
Sec. 209.103 [Amended]
0
2. Section 209.103 is revised by:
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a. Removing the numerical amount ``$50,000'' in paragraph (a) and
replacing it with the numerical amount ``$55,000''; and
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b. Removing the numerical amount ``$100,000'' in paragraph (a)(1) and
replacing it with the numerical amount ``$110,000''; and
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c. Removing the date of ``August 10, 2005'' in paragraph (c) and
replacing it with ``September 27, 2010''.
Sec. 209.105 [Amended]
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3. Section 209.105(c) is revised by:
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a. Removing the numerical amount ``$50,000'' in the last sentence and
replacing it with the numerical amount ``$55,000''; and
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b. Removing the numerical amount ``$100,000'' in the last sentence and
replacing it with the numerical amount ``$110,000''.
Appendix B to Part 209--[AMENDED]
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4. Appendix B to Part 209 is amended by:
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a. Removing the numerical amount ``$50,000'' in the first paragraph
below the heading ``APPENDIX B TO PART 209--FEDERAL RAILROAD
ADMINISTRATION GUIDELINES FOR INITIAL HAZARDOUS MATERIAL ASSESSMENTS''
and replacing it with the numerical amount ``$55,000''; and
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b. Removing the numerical amount ``$100,000'' in the first paragraph
below the heading ``APPENDIX B TO PART 209--FEDERAL RAILROAD
ADMINISTRATION GUIDELINES FOR INITIAL HAZARDOUS MATERIALS ASSESSMENTS''
and replacing it with the numerical amount ``$110,000''.
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5. Footnote 2 to Appendix B to Part 209 is amended by:
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a. Removing the numerical amount ``$50,000'' and replacing it with the
numerical amount ``$55,000''; and
0
b. Removing the numerical amount ``$100,000'' and replacing it with the
numerical amount ``$110,000''.
Issued in Washington, DC, on July 21, 2010.
Joseph C. Szabo,
Administrator, Federal Railroad Administration.
Note: This appendix will not appear in the Code of Federal
Regulations.
Appendix: ``Step-by-Step Calculations to Determine Civil Monetary
Penalty Updates: 2010''
Step-by-Step Calculations to Determine Hazardous Material Civil Penalty
Inflation Adjustments: 2010
Ordinary and Aggravated Maximum Civil Penalties
These calculations follow U.S. Department of Transportation and
Government Accountability Office (GAO), formerly the General
Accounting Office, guidance to determine if the minimum civil
monetary penalty (CMP) should be updated according to the Inflation
Act. (Sources for guidance: (1) GAO attachment to memorandum with
subject ``Annual Review of Department of Transportation's (DOT)
Civil Penalties Inflation Adjustment,'' dated July 10, 2003; (2)
policy paper entitled ``Federal Civil Penalties Inflation Adjustment
Act of 1990'').
Maximum Civil Monetary Penalties
The current ordinary maximum CMP is $50,000, set on August 10,
2005, by Section 7120 of the Hazardous Materials Safety and Security
Reauthorization Act of 2005 (Title VII of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users
(``SAFETEA-LU,'' Pub. L. 109-59, 119 Stat. 1905)), which amended 49
U.S.C. 5123(a).
Step 1: Find the Consumer Price Index (CPI). (BLS, 1967 Base,
U.S. City Average).
The CPI for June of the preceding year, i.e., CPI for June 2009 =
646.121
The CPI for June of the year the CMP was last set or adjusted under
the Inflation Act, i.e., CPI for June 2005 = 582.6
Step 2: Calculate the Cost of Living Adjustment (COLA), or the
Inflation Factor.
[GRAPHIC] [TIFF OMITTED] TR27JY10.000
Step 3: Find the Raw Inflation Adjustment or Inflation
Adjustment Before Rounding.
Raw Inflation Adjustment = CMP x COLA = $50,000 x 1.10903 =
$55,451.50 [ap] $55,452
Step 4: Round the Raw Inflation Adjustment Amount.
[[Page 43843]]
Recall that the increase in the CMP is rounded, according to the
rounding rules.
Increase = Raw Inflation Adjustment - Original CMP = $55,452 -
$50,000 = $5,452
Use the following rounding rule: ``If the current unadjusted
penalty is greater than $10,000 and less than or equal to $100,000,
round the increase to the nearest multiple of $5,000.'' (Federal
Civil Penalties Inflation Adjustment Act of 1990, p. 4.) Multiples
of $5,000 are $0, $5,000, $10,000. * * * The nearest multiple of
$5,000 is therefore $5,000. Rounded, the $5,452 increase = $5,000
Step 5: Find the Inflation Adjusted Penalty After Rounding.
CMP after rounding = Original CMP + Rounded Increase = $50,000 +
$5,000 = $55,000
Step 6: Apply a 10% Ceiling if necessary.
10% of $50,000 is $5,000, so the increase does not exceed the
10% cap.
Step 7: Determine New Penalty.
The new maximum CMP = $55,000
With respect to hazardous material violations that occur on or
after [insert date 60 days after publication], the maximum CMP rises
from $50,000 to $55,000.
The current maximum CMP for a hazardous material violation that
results in death, serious illness, or severe injury to any person or
substantial destruction of property is $100,000, set on August 10,
2005, by Section 7120 of the Hazardous Materials Safety and Security
Reauthorization Act of 2005 (Title VII of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users
(``SAFETEA-LU,'' Pub. L. 109-59, 119 Stat. 1905)), which amended 49
U.S.C. 5123(a).
Step 1: Find the Consumer Price Index (CPI). (BLS, 1967 Base,
U.S. City Average).
The CPI for June of the preceding year, i.e., CPI for June 2009 =
646.121
The CPI for June of the year the CMP was last set or adjusted under
the Inflation Act, i.e., CPI for June 2005 = 582.6
Step 2: Calculate the Cost of Living Adjustment (COLA), or the
Inflation Factor.
[GRAPHIC] [TIFF OMITTED] TR27JY10.001
Step 3: Find the Raw Inflation Adjustment or Inflation
Adjustment Before Rounding.
Raw Inflation Adjustment = CMP x COLA = $100,000 x 1.10903 =
$110,903 [ap] $110,900
Step 4: Round the Raw Inflation Adjustment Amount.
Recall that the increase in the CMP is rounded, according to the
rounding rules.
Increase = Raw Inflation Adjustment - Original CMP = $110,900 -
$100,000 = $10,900.
Use the following rounding rule: ``If the current unadjusted
penalty is greater than $10,000 and less than or equal to $100,000,
round the increase to the nearest multiple of $5,000.'' (Federal
Civil Penalties Inflation Adjustment Act of 1990, p. 4.) Multiples
of $5,000 are $0, $5,000, $10,000. * * * The nearest multiple of
$5,000 is therefore $10,000. Rounded, the $10,900 increase =
$10,000.
Step 5: Find the Inflation Adjusted Penalty After Rounding.
CMP after rounding = Original CMP + Rounded Increase = $100,000 +
$10,000 = $110,000
Step 6: Apply a 10% Ceiling if necessary.
This is the first time that the statutorily reset CMP is being
adjusted, so the 10% cap applies; 10% of $100,000 is $10,000, so the
increase does not exceed the 10% cap.
Step 7: Determine New Penalty.
The new aggravated maximum CMP for certain hazardous material
violations = $110,000.
With respect to hazardous material violations that occur on or
after [insert date 60 days after publication], this aggravated
maximum CMP rises from $100,000 to $110,000.
Minimum Civil Monetary Penalty for Training Violations
The current minimum CMP for hazardous material violations
related to training is $450, set on August 10, 2005, by Section 7120
of the Hazardous Materials Safety and Security Reauthorization Act
of 2005.
Step 1: Find the Consumer Price Index (CPI). (BLS, 1967 Base,
U.S. City Average)
The CPI for June of the preceding year, i.e., CPI for June 2009
= 646.121.
The CPI for June of the year the CMP was last set or adjusted under
the Inflation Act, i.e., CPI for June 2005 = 582.6
Step 2: Calculate the Cost of Living Adjustment (COLA), or the
Inflation Factor.
[GRAPHIC] [TIFF OMITTED] TR27JY10.002
Step 3: Find the Raw Inflation Adjustment or Inflation
Adjustment Before Rounding.
Raw Inflation Adjustment = CMP x COLA = $450 x 1.10903 = $499
Step 4: Round the Raw Inflation Adjustment Amount.
Recall that the increase in the CMP is rounded, according to the
rounding rules.
Increase = Raw Inflation Adjustment - Original CMP = $499 - $450 =
$49
Use the following rounding rule: ``If the current unadjusted
penalty is greater than $100 and less than or equal to $1,000, round
the increase to the nearest multiple of $100.'' (Federal Civil
Penalties Inflation Adjustment Act of 1990, p. 4)
Multiples of $100 are $0, $100, $200.
The nearest multiple of $100 is therefore $0. Rounded, the $49
increase = $0.
Step 5: Find the Inflation Adjusted Penalty After Rounding.
CMP after rounding = Original CMP + Rounded Increase = $450 + $0 =
$450.
Step 6: Apply a 10% Ceiling if necessary.
The penalty amount did not increase, so the 10% cap does not
apply.
Step 7: Determine New Penalty.
The new minimum CMP for training violations = $450
With respect to hazardous material violations that occur on or
after [insert date 60 days after publication], the minimum CMP for
training violations remains $450.
Minimum Civil Monetary Penalty for All Other Hazardous Material
Violations
The current minimum CMP is $250, set on August 10, 2005, by
Section 7120 of the Hazardous Materials Safety and Security
Reauthorization Act of 2005 (Title VII of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users
(``SAFETEA-LU,'' Pub.
Step 1: Find the Consumer Price Index (CPI). (BLS, 1967 Base,
U.S. City Average).
The CPI for June of the preceding year, i.e., CPI for June 2009 =
646.121
The CPI for June of the year the civil penalty was last set or
adjusted under the Inflation Act, i.e., CPI for June 2005 = 582.6
Step 2: Calculate the Cost of Living Adjustment (COLA), or the
Inflation Factor.
[GRAPHIC] [TIFF OMITTED] TR27JY10.003
[[Page 43844]]
Step 3: Find the Raw Inflation Adjustment or Inflation
Adjustment Before Rounding.
Raw Inflation Adjustment = CMP x COLA = $250 x 1.10903 = $277
Step 4: Round the Raw Inflation Adjustment Amount.
Recall that the increase in the CMP is rounded, according to the
rounding rules.
Increase = Raw Inflation Adjustment - Original CMP = $277 - $250 =
$27
Use the following rounding rule: ``If the current unadjusted
penalty is greater than $100 and less than or equal to $1,000, round
the increase to the nearest multiple of $100.'' (Federal Civil
Penalties Inflation Adjustment Act of 1990, p. 4) Multiples of $100
are $0, $100, $200.* * *
The nearest multiple of $100 is therefore $0. Rounded, the $27
increase = $0.
Step 5: Find the Inflation Adjusted Penalty After Rounding.
CMP after rounding = Original CMP + Rounded Increase = $250 + $0 =
$250.
Step 6: Apply a 10% Ceiling if Necessary.
The penalty amount did not increase, so the 10% cap does not
apply.
Step 7: Determine New Penalty.
The new minimum CMP = $250
With respect to hazardous materials violations, other than
training violations, that occur on or after September 27, 2010, the
minimum CMP remains $250.
[FR Doc. 2010-18321 Filed 7-26-10; 8:45 am]
BILLING CODE 4910-06-P