[Federal Register Volume 66, Number 225 (Wednesday, November 21, 2001)]
[Rules and Regulations]
[Pages 58644-58647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-29029]
[[Page 58643]]
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Part IV
Department of the Interior
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Office of Surface Mining Reclamation and Enforcement
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30 CFR Parts 723 and 845
Civil Penalty Adjustments; Final Rule
Federal Register / Vol. 66, No. 225 / Wednesday, November 21, 2001 /
Rules and Regulations
[[Page 58644]]
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DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation and Enforcement
30 CFR Parts 723 and 845
RIN 1029-AC00
Civil Penalty Adjustments
AGENCY: Office of Surface Mining Reclamation and Enforcement, Interior.
ACTION: Final rule.
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SUMMARY: This rule adjusts the penalty amount of certain civil monetary
penalties authorized by the Surface Mining Control and Reclamation Act
of 1977 (SMCRA). The rule implements the Federal Civil Penalties
Inflation Adjustment Act of 1990 which requires that civil monetary
penalties be adjusted for inflation at least once every four years.
EFFECTIVE DATE: November 28, 2001.
FOR FURTHER INFORMATION CONTACT: Andy DeVito, Office of Surface Mining
Reclamation and Enforcement, Room 117, South Interior Building, 1951
Constitution Avenue NW, Washington, DC 20240; Telephone (202) 208-2701.
E-mail: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
A. The Federal Civil Penalties Inflation Adjustment Act
B. Method of Calculation
C. Example of a Calculation
D. Civil Monetary Penalties Affected by this Adjustment
E. Effect of the Rule in Federal Program States and on Indian
Lands
F. Effect of the Rule on Approved State Programs.
II. Procedural Matters and Required Determinations
I. Background
A. The Federal Civil Penalties Inflation Adjustment Act
In an effort to maintain the deterrent effect of civil monetary
penalties (CMPs) and promote compliance with the law, the Federal Civil
Penalties Inflation Adjustment Act of 1990 (Inflation Adjustment Act)
(28 U.S.C. 2461 note) was amended by the Debt Collection Improvement
Act of 1996 (Pub. L. 104-134) to require Federal agencies to regularly
adjust CMPs for inflation. The Inflation Adjustment Act, as amended,
requires each agency to make an initial inflationary adjustment for all
applicable CMPs, and to make subsequent adjustments at least once every
four years thereafter. The Office of Surface Mining Reclamation and
Enforcement (we or OSM) last adjusted the CMP's authorized by SMCRA on
November 28, 1997 (62 FR 63274). To satisfy the requirement of the
Inflation Adjustment Act, we are again adjusting our CMP's according to
the formula set forth in the law.
Under the Inflation Adjustment Act, the inflation adjustment for a
CMP is determined by increasing the CMP by the amount of the cost-of-
living adjustment, which is defined as the percentage of each CMP by
which the Consumer Price Index 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 the CMP was
last set or adjusted. The Inflation Adjustment Act defines the Consumer
Price Index as the Consumer Price Index for all urban consumers
published by the Department of Labor (CPI-U). See 28 U.S.C. 2461 note.
In addition, the Inflation Adjustment Act specifies that any resulting
increases in a CMP (1) must be rounded according to a stated rounding
formula, and (2) should apply only to violations that occur after the
date the increase takes effect.
B. Method of Calculation
Since this adjustment will be effective before December 31, 2001,
we must use the CPI-U for the month of June 2000. That figure is 172.4.
We last adjusted our civil monetary penalties in November 1997.
Therefore, we must use the CPI-U for June 1997 which is 160.3. The
factor that we have used in calculating the increase is 172.4 divided
by 160.3, or 1.0754834, rounded to 1.075 (i.e., a 7.5 percent
increase).
Any increase under this adjustment is then subject to the rounding
formula set forth in section 5(a) of the Inflation Adjustment Act.
Under the formula, any increase must be rounded to the nearest:
(1) Multiple of $10 in the case of penalties less than or equal to
$100;
(2) Multiple of $100 in the case of penalties greater than $100 but
less than or equal to $1,000;
(3) Multiple of $1,000 in the case of penalties greater than $1,000
but less than or equal to $10,000;
(4) Multiple of $5,000 in the case of penalties greater than
$10,000 but less than or equal to $100,000;
(5) Multiple of $10,000 in the case of penalties greater than
$100,000 but less than or equal to $200,000; and
(6) Multiple of $25,000 in the case of penalties greater than
$200,000.
C. Example of a Calculation
To explain the inflation adjustment calculation for the CMP amounts
that were last adjusted in 1997, we will use the following example. Our
regulations at 30 CFR 845.15(b) presently require the imposition of a
civil penalty of not less that $825 for each day during which an
operator fails to abate a violation within the specified abatement
period contained in a notice of violation or a cessation order.
Multiplying the $825 by the inflation factor of 1.075 results in a sum
of $886.88. Then we round the raw inflation amount according to the
rounding rules in section 5(a) of the Inflation Adjustment Act. Since
we round only the increased amount, we calculate the increase amount by
subtracting the current penalty amount from the raw inflation
adjustment. Accordingly, the increased amount for the penalty in our
example is $61.88 (i.e., $886.88 minus $825.00). Under the rounding
rules, if the penalty is more than $100 but less than $1,000, we round
the increase to the nearest multiple of $100 (i.e., $61.88 is rounded
to $100.00). Finally, we add the rounded increase to the existing
penalty which results in a new Sec. 845.15(b) penalty amount of $925.00
(i.e., $825.00 plus $100.00) for each day during which the failure to
abate continues.
D. Civil Monetary Penalties Affected by This Adjustment
Section 518 of SMCRA, 30 U.S.C. 1268, authorizes the Secretary of
the Interior to assess CMPs for violations of SMCRA. OSM's regulations
implementing the CMP provisions of section 518 are located in 30 CFR
723.14, 723.15, 724.14, 845.14, 845.15, and 846.14. Because of the
rounding formula specified in the Inflation Adjustment Act, a
substantial number of the CMP's in those sections will remain unchanged
at this review. Those CMP's (the ones for which no adjustment is being
made in 2001) will be subject to slightly different treatment when
calculating the 2005 adjustment. Under the Inflation Adjustment Act,
when we adjust those penalties in 2005, we will be required to use the
CPI-U for June of the year when they were last adjusted which will be
the CPI-U for June 1997. The 1997 CPI-U will be compared to the June
CPI-U for 2004 to arrive at the factor which will be used to calculate
the inflation increase.
E. Effect of the Rule in Federal Program States and on Indian Lands
The increase in civil monetary penalties contained in this rule
will apply through cross-referencing to the following Federal program
states: California, Georgia, Idaho, Massachusetts, Michigan, North
Carolina, Oregon, Rhode Island, South Dakota, Tennessee and Washington.
The Federal programs for these States appear
[[Page 58645]]
at 30 CFR parts 905, 910, 912, 921, 922, 933, 937, 939, 941, 942 and
947, respectively. The increase in civil monetary penalties also
applies through cross-referencing to Indian lands under the Federal
program for Indian lands as provided in 30 CFR 750.
F. Effect of the Rule on Approved State Programs
Section 518(i) of SMCRA and 30 CFR 840.13(a) require that the civil
penalty provisions of each State program contain penalties which are
``no less stringent than'' those set forth in SMCRA. Following
publication of this final rule, we will evaluate the State programs
approved under section 503 of SMCRA to determine any changes in those
programs that will be necessary. When we determine that a particular
State program provision should be amended in order to be made no less
stringent than the revised Federal regulations, the particular State
will be notified in accordance with the provisions of 30 CFR 732.17.
II. Procedural Matters and Required Determinations
Administrative Procedure Act
This final rule has been issued without prior public notice or
opportunity for public comment. The Administrative Procedure Act (APA)
(5 U.S.C. 553) provides an exception to the notice and comment
procedures when an agency finds there is good cause for dispensing with
such procedures on the basis that they are impracticable, unnecessary
or contrary to the public interest. We have determined that under 5
U.S.C. 553(b)(3)(B), good cause exists for dispensing with the notice
of proposed rulemaking and public comment procedures for this rule.
This rulemaking is consistent with the statutory authority and
requirements set forth in the Inflation Adjustment Act as amended by
the Debt Collection Improvement Act of 1996. The Inflation Adjustment
Act requires that we adjust our CMPs once every four years and
specifies the manner in which the adjustment is to be made.
Accordingly, the adjustments made may be seen as ministerial,
technical, and non-controversial. For these same reasons, we believe
there is good cause under 5 U.S.C. 553(d)(3) of the APA to have the
rule become effective on a date that is less than 30 days after the
date of publication in the Federal Register.
Executive Order 12866--Regulatory Planning and Review
This rule is not considered a significant regulatory action under
the provisions of Executive Order 12866. The rule adjusts OSM's CMPs
according to the formula contained in the law. OSM has no discretion in
making the adjustments. Further, most coal mining operations subject to
these regulations do not engage in prohibited activities and practices,
and, as a result, we believe that the aggregate economic impact of
these revised regulations will be minimal, affecting only those who may
engage in prohibited behavior in violation of SMCRA. In calendar years
1999 and 2000 combined, we issued a total of 101 violation notices (24
cessation orders and 77 notices of violations. The total CMP amount
assessed by OSM for all of these violations was $664,795.
We do not keep records of the amount of CMPs assessed by State
Regulatory Authorities. In a 1980 decision on OSM's regulations
governing CMPs, the U.S. District Court for the District of Columbia
held that ``because section 518 of SMCRA fails to enumerate a point
system for assessing civil penalties, the imposition of this
requirement upon the States is inconsistent with [SMCRA].''
Consequently, we cannot require that the CMP provisions contained in a
State's regulatory program mirror the point/penalty provisions of 30
CFR 723.14 and 845.14. The State regulatory programs, however, are
required to have civil penalty provisions that are no less stringent
than those set forth in section 518 of SMCRA. This includes the CMP
provisions of section 518(h) which require the assessment of at least
the minimum CMP specified there for the failure to abate a violation
within the period of time permitted for abatement. During the past two
years, the States issued a total of 743 failure-to-abate cessation
orders. If you assume that each failure-to-abate cessation order was
assessed the minimum CMP authorized, the annual assessment for all CMPs
issued by all States for all failure-to-abate cessation orders would be
substantially less than the dollar threshold established in Executive
Order 12866 for a significant rule. Consequently, the amount of the
CMPs that will eventually be assessed under the revised schedule
contained in this rule by both OSM and the States is not expected to
exceed the threshold contained in Executive Order 12866 for a
significant rule.
Regulatory Flexibility Act
The Department of the Interior certifies that this proposed
revision will not have a significant economic impact on a substantial
number of small entities under the Regulatory Flexibility Act (5 U.S.C.
601 et seq.). The aggregate economic impact of this rulemaking on small
business entities should be minimal, affecting only those who violate
the provisions of SMCRA. As indicated above, the number of civil
penalties assessed over a two-year period was not significant when
compared to the number of Federal inspections performed (over 2,000 in
calendar year 2,000).
Small Business Regulatory Enforcement Fairness Act
This rule is not a major rule under 5 U.S.C. 804(2), the Small
Business Regulatory Enforcement Fairness Act. This rule:
1. Does not have an annual effect on the economy of $100 million or
more for the reasons stated above.
2. Will not cause a major increase in costs or prices for
consumers, individual industries, federal, state, or local government
agencies, or geographic regions because the rule does not impose new
requirements on the coal mining industry or consumers.
3. Does not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S. based enterprises to compete with foreign-based enterprises for
the reasons stated above.
Unfunded Mandates Reform Act
For purposes of compliance with the Unfunded Mandates Reform Act of
1995, this rule does not impose any obligations that individually or
cumulatively would require an aggregate expenditure of $100 million or
more by State, local, and Tribal governments and the private sector in
any given year.
Federal Paperwork Reduction Act
This rule does not contain collections of information which require
approval by the Office of Management and Budget under 44 U.S.C. 3501 et
seq.
National Environmental Policy Act
We have reviewed this rule and determined that it is categorically
excluded from the requirement to prepare an environmental document
under the National Environmental Policy Act of 1969. This determination
was made in accordance with the Departmental Manual (516 DM 2, Appendix
1.10).
Executive Order 12988--Civil Justice Reform
In accordance with Executive Order 12988, the Department of the
Interior has determined that this rule (1) does not unduly burden the
judicial system
[[Page 58646]]
and (2) meets the requirements of sections 3(a) and 3(b)(2) of the
Order. Additional remarks follow concerning individual elements of the
Executive Order:
1. What is the preemptive effect, if any, to be given to the
regulation?
This regulation will have the same preemptive effect as other
standards adopted pursuant to SMCRA. To retain primacy, States have to
adopt and apply standards for their regulatory programs that are no
less effective than those set forth in OSM's regulations. Any State law
that is inconsistent with or that would preclude implementation of the
proposed regulation would be subject to preemption under SMCRA section
505 and implementing regulations at 30 CFR 730.11. To the extent that
the proposed regulation would result in preemption of State law, the
provisions of SMCRA are intended to preclude inconsistent State laws
and regulations. This approach is established in SMCRA, and has been
judicially affirmed. See Hodel v. Virginia Surface Mining and
Reclamation Ass'n, 452 U.S. 264 (1981).
2. What is the effect on existing Federal law or regulation, if
any, including all provisions repealed or modified?
This rule modifies the implementation of SMCRA as described herein,
and is not intended to modify the implementation of any other Federal
statute. The preceding discussion of this rule specifies the Federal
regulatory provisions that are affected by this rule.
3. What is the retroactive effect, if any, to be given to the
regulation?
This rule is not intended to have a retroactive effect. The
increase in the amount of CMPs will apply only to violations that occur
after the date the increase takes effect.
4. Are administrative proceedings required before parties may file
suit in court? Which proceedings apply? Is the exhaustion of
administrative remedies required?
No administrative proceedings are required before parties may file
suit in court challenging the provisions of this rule under section
526(a) of SMCRA, 30 U.S.C. 1276(a). Prior to any judicial challenges to
the application of the rule, however, administrative proceedings must
be exhausted, unless specified otherwise. In situations involving OSM
application of the rule, applicable administrative proceedings may be
found in 30 CFR 723.19, 845.19 and 43 CFR part 4. In situations
involving State regulatory authority application of the provisions
equivalent to those contained in this rule, applicable administrative
procedures are set forth in the particular State program.
5. Does the rule define key terms, either explicitly or by
reference to other regulations or statutes that explicitly define those
items?
Terms which are important to the understanding of this rule are
discussed in the rule.
Executive Order 13211--Regulations That Significantly Affect the
Supply, Distribution, or Use of Energy
Executive Order 13211 requires agencies to prepare a Statement of
Energy Effects for a rule that is (1) considered significant under
Executive Order 12866, and (2) likely to have a significant adverse
effect on the supply, distribution, or use of energy. Because this rule
is not considered significant under Executive Order 12866 and is not
expected to have a significant adverse effect on the supply,
distribution, or use of energy, a Statement of Energy Effects is not
required.
Executive Order 12630--Takings
In accordance with Executive Order 12630, the rule does not have
takings implications. This determination is based on the fact that the
rule will not have an impact on the use or value of private property
and so, does not result in significant costs to the government.
Executive Order 13132--Federalism
This rule does not have Federalism implications. It will not have
``substantial direct effects 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.''
List of Subjects
30 CFR Part 723
Administrative practice and procedure, Penalties, Surface mining,
Underground mining.
30 CFR Part 845
Administrative practice and procedure, Law enforcement, Penalties,
Reporting and recordkeeping requirements, Surface mining, Underground
mining.
Dated: November 7, 2001.
J. Steven Griles,
Acting Assistant Secretary, Land and Minerals Management.
For the reasons set out in the preamble, 30 CFR parts 723 and 845
are amended as follows.
PART 723--CIVIL PENALTIES
1. The authority citation for Part 723 is revised to read as
follows:
Authority: 28 U.S.C. 2461, 30 U.S.C. 1201 et seq., Pub. L. 100-
34, Pub. L. 101-410, and Pub. L. 104-134.
2. Section 723.14 is amended by revising the table to read as
follows:
Sec. 723.14 Determination of amount of penalty.
* * * * *
------------------------------------------------------------------------
Points Dollars
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1............................................................ 22
2............................................................ 44
3............................................................ 66
4............................................................ 98
5............................................................ 110
6............................................................ 132
7............................................................ 154
8............................................................ 176
9............................................................ 198
10........................................................... 220
11........................................................... 242
12........................................................... 264
13........................................................... 286
14........................................................... 308
15........................................................... 330
16........................................................... 352
17........................................................... 374
18........................................................... 396
19........................................................... 418
20........................................................... 440
21........................................................... 462
22........................................................... 484
23........................................................... 506
24........................................................... 528
25........................................................... 550
26........................................................... 660
27........................................................... 870
28........................................................... 980
29........................................................... 1,090
30........................................................... 1,100
31........................................................... 1,210
32........................................................... 1,320
33........................................................... 1,430
34........................................................... 1,540
35........................................................... 1,650
36........................................................... 1,760
37........................................................... 1,870
38........................................................... 1,980
39........................................................... 2,090
40........................................................... 2,200
41........................................................... 2,310
42........................................................... 2,420
43........................................................... 2,530
44........................................................... 2,640
45........................................................... 2,750
46........................................................... 2,860
47........................................................... 2,970
48........................................................... 3,080
49........................................................... 3,190
50........................................................... 3,300
51........................................................... 3,410
52........................................................... 3,520
53........................................................... 3,630
54........................................................... 3,740
55........................................................... 3,850
56........................................................... 3,960
57........................................................... 4,070
58........................................................... 4,180
59........................................................... 4,290
60........................................................... 4,400
61........................................................... 4,510
62........................................................... 4,620
63........................................................... 4,730
[[Page 58647]]
64........................................................... 4,840
65........................................................... 4,950
66........................................................... 5,060
67........................................................... 5,170
68........................................................... 5,280
69........................................................... 5,390
70........................................................... 5,500
------------------------------------------------------------------------
3. In Sec. 723.15, paragraph (b) is amended by changing the dollar
amount ``$825'' to ``$925.''
PART 845--CIVIL PENALTIES
4. The authority citation for Part 845 is revised to read as
follows:
Authority: 28 U.S.C. 2461, 30 U.S.C. 1201 et seq., Pub. L. 100-
34, Pub. L. 100-202, Pub. L. 100-446, Pub. L. 101-410, and Pub. L.
104-134.
5. Section 845.14 is amended by revising the table to read as
follows:
Sec. 845.14 Determination of amount of penalty.
* * * * *
------------------------------------------------------------------------
Points Dollars
------------------------------------------------------------------------
1............................................................ 22
2............................................................ 44
3............................................................ 66
4............................................................ 98
5............................................................ 110
6............................................................ 132
7............................................................ 154
8............................................................ 176
9............................................................ 198
10........................................................... 220
11........................................................... 242
12........................................................... 264
13........................................................... 286
14........................................................... 308
15........................................................... 330
16........................................................... 352
17........................................................... 374
18........................................................... 396
19........................................................... 418
20........................................................... 440
21........................................................... 462
22........................................................... 484
23........................................................... 506
24........................................................... 528
25........................................................... 550
26........................................................... 660
27........................................................... 870
28........................................................... 980
29........................................................... 1,090
30........................................................... 1,100
31........................................................... 1,210
32........................................................... 1,320
33........................................................... 1,430
34........................................................... 1,540
35........................................................... 1,650
36........................................................... 1,760
37........................................................... 1,870
38........................................................... 1,980
39........................................................... 2,090
40........................................................... 2,200
41........................................................... 2,310
42........................................................... 2,420
43........................................................... 2,530
44........................................................... 2,640
45........................................................... 2,750
46........................................................... 2,860
47........................................................... 2,970
48........................................................... 3,080
49........................................................... 3,190
50........................................................... 3,300
51........................................................... 3,410
52........................................................... 3,520
53........................................................... 3,630
54........................................................... 3,740
55........................................................... 3,850
56........................................................... 3,960
57........................................................... 4,070
58........................................................... 4,180
59........................................................... 4,290
60........................................................... 4,400
61........................................................... 4,510
62........................................................... 4,620
63........................................................... 4,730
64........................................................... 4,840
65........................................................... 4,950
66........................................................... 5,060
67........................................................... 5,170
68........................................................... 5,280
69........................................................... 5,390
70........................................................... 5,500
------------------------------------------------------------------------
Sec. 845.15 [Amended]
6. In Sec. 845.15, paragraph (b) is amended by changing the dollar
amount ``$825'' to ``$925.''
[FR Doc. 01-29029 Filed 11-20-01; 8:45 am]
BILLING CODE 4310-05-P