Just in time for the holidays, the U.S. Environmental Protection
Agency (EPA) has issued a Final Rule increasing many civil
penalties for violations of environmental laws. The EPA Final Rule
is effective Dec. 6, 2013, and it is important to note that the
adjusted civil penalties are only applicable to violations
occurring after this effective date.
At least every four years, each federal agency (including EPA)
is required to adjust for inflation statutory civil penalties by
issuing regulations. Inflation increases are rounded to the nearest
multiple of $25,000 for the largest penalty-related number, but
where the cost of living inflation adjustment is not sufficient to
be rounded up to a multiple of $5,000, no change is made. For
example, the Clean Air Act potential penalties for violating a
State Implementation Plan (SIP) under 42 U.S.C. §7413(d)(1)
are currently $37,500 per day authorized up to a total penalty
amount of $295,000. With the inflation adjustment, the
