On January 12, 2017, EPA published a final rule adjusting for inflation the civil
monetary penalty amounts for the statutes it administers. This most
recent adjustment follows on the heels of a major adjustment
finalized in July 2016. These adjustments are mandated by 2015
revisions to the Federal Civil Penalties Inflation Adjustment Act.
The new law required agencies to make initial "catch-up"
adjustments by July 2016, followed by annual inflation adjustments
beginning January 15, 2017. In the past, EPA only adjusted penalty
levels for inflation once every several years.
The annual inflation adjustments are based on a cost-of-living
multiplier determined by changes to the Consumer Price Index. The
changes impact all of the federal environmental statutes. Under
these most recent adjustments, for example, the per day, per
violation maximum civil penalties under the Clean Air Act (CAA),
Clean Water Act (CWA), and the Resource Conservation and Recovery
Act (RCRA)
