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![handle is hein.gao/gaocrptaoeg0001 and id is 1 raw text is:
GAO
,Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548
B-290021
July 15, 2002
Mr. Robert E. Fabricant
General Counsel
U.S. Environmental Protection Agency
Subject: Federal Civil Penalties Inflation Adjustment Act
Dear Mr. Fabricant:
Earlier this year, GAO initiated a review of the implementation of the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended (Inflation Adjustment Act).'
This act generally requires federal agencies to issue regulations adjusting their
covered civil monetary penalties for changes in the cost of living by October 23, 1996,
and to make necessary adjustments at least once every 4 years thereafter. Section 4,
28 U.S.C. § 2461 note. The statute defines a cost-of-living adjustment as the
percentage change in the Consumer Price Index (CPI) between June of the calendar
year in which the penalty was last set or adjusted and June of the calendar year
preceding the adjustment. Section 5, 28 U.S.C. § 2461 note. The statute limited the
first adjustment to 10 percent and includes a mechanism for rounding penalty
increases. Sections 5 and 6, 28 U.S.C. § 2461 note. With regard to rounding, the
statute sets out penalty ranges, from amounts less than or equal to $100 to amounts
greater than $200,000, and provides different dollar multiples for rounding the
increase in each penalty range. Section 5, 28 U.S.C. § 2461 note. The statute
provides, for example, that [a]ny increase.., shall be rounded to the nearest...
multiple of $10 in the case of penalties less than or equal to $100. Id. (Emphasis
added.)
The Environmental Protection Agency (EPA) made its first round of civil penalty
adjustments under the Inflation Adjustment Act on December 31, 1996. 61 Fed.
Reg. 69,360. Because all of EPA's covered penalties had been in place for at least
5 years, and the amount of inflation occurring during that period was more than
' The Inflation Adjustment Act is codified at 28 U.S.C. § 2461 note. The 1990 act was
amended in 1996 by the Debt Collection Improvement Act, which added the
requirement for agencies to adjust their civil penalties by regulation. Pub. L.
No. 104-134, § 31001, 110 Stat. 1321-373 (1996).](ViewImageLocal?handle=hein.gao/gaocrptaoeg0001&div=1&collection=&method=preview&ext=.png&size=3)