Civil Monetary Penalty Inflation Adjustment Rule
Summary
The U.S. Army Corps of Engineers (Corps) is issuing this final rule to adjust its civil monetary penalties (CMP) under the Rivers and Harbors Appropriation Act of 1922 (RHA), the Clean Water Act (CWA), and the National Fishing Enhancement Act (NFEA) to account for inflation.
Compliance Requirements
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Adjust its civil monetary penalties (CMP) under the Rivers and Harbors Appropriation Act of 1922 (RHA), the Clean Water Act (CWA), and the National Fishing Enhancement Act (NFEA) to account for inflation.; Assess a civil penalty of up to $7,156 per violation under 33 U.S.C. 555, as amended, for failing to provide timely, accurate, and complete statements or reports required to be submitted by the regulation in this section.; Class I civil penalties may not exceed $27,379 per violation, except that the maximum amount of any Class I civil penalty shall not exceed $68,446 under Section 309(g)(2)(A) of the Clean Water Act.; Judicially-imposed civil penalties may not exceed $68,446 per day for each violation under Section 404(s)(4) of the Clean Water Act.; Penalties for violations of permits issued in accordance with the National Fishing Enhancement Act shall not exceed $29,980 for each violation under Section 205(e) of the Act.
Deadline: 2025-08-08(08/08/2025)
Market Impacts
Adjustment of civil monetary penalties under the Rivers and Harbors Appropriation Act of 1922, the Clean Water Act, and the National Fishing Enhancement Act to account for inflation.; Entities must adhere to the new statutory maximum penalty levels for violations assessed on or after the effective date of this rule.
Validated Company Impacts
Duke Energy CORP
Duke Energy operates electric utilities and infrastructure involving generation, transmission, and distribution of electricity, which often requires water usage and discharge activities regulated under the Clean Water Act. The company's operations in the Southeast and Midwest regions of the U.S. fall directly under the jurisdiction of this federal rule, which adjusts penalties for CWA violations. The rule focuses on civil monetary penalties for waterway navigation, water pollution control, and fishing enhancement violations, which does not align with the company's disclosed risk factors. The company's regulatory risks (CCR regulations and EPA Rule 111) relate to coal combustion residuals and generation investments, not waterway or pollution penalties under the cited acts.
Energy Transfer LP
Energy Transfer LP operates extensive pipeline infrastructure that crosses waterways and navigable waters, making it subject to Rivers and Harbors Appropriation Act requirements for structures in navigable waters. The company's pipeline operations and facilities also fall under Clean Water Act jurisdiction for potential water pollution impacts from construction, maintenance, and potential spills. The Civil Monetary Penalty Inflation Adjustment Rule specifically targets entities subject to waterway navigation, water pollution control, and fishing enhancement regulations under the Rivers and Harbors Act, Clean Water Act, and National Fishing Enhancement Act. The company's risk profile shows no exposure to environmental compliance, waterway operations, or regulatory penalties in these specific areas, indicating no alignment with the rule's risk impacts.
Matson, Inc.
Matson, Inc. operates a major ocean shipping and logistics business that involves significant maritime operations subject to Rivers and Harbors Act requirements for navigation and waterway use, as well as Clean Water Act compliance for vessel operations and port activities. The company's core business of container shipping, terminal operations, and maritime transportation directly falls under the jurisdiction of these regulations and would be subject to the adjusted civil monetary penalties for violations. The Civil Monetary Penalty Inflation Adjustment Rule specifically targets entities involved in water navigation, water pollution control, and waterways operations under the Rivers and Harbors Act, Clean Water Act, and National Fishing Enhancement Act. The company's risk factors show no exposure to environmental regulations, waterway operations, or pollution control activities, focusing instead on technology, cybersecurity, and market competition risks with no geographic or operational overlap.
Essential Utilities, Inc.
Essential Utilities operates a regulated water segment providing water and wastewater services, which directly falls under Clean Water Act jurisdiction where this rule adjusts civil monetary penalties for violations. The company's water pollution control activities and waterway operations align with the markets targeted by this inflation adjustment rule. The rule focuses on civil monetary penalties for waterway and environmental violations, which does not align with the company's disclosed risk factors of cybersecurity, infrastructure adequacy, capital expenditure, and property maintenance. The only potential connection is the general 'Regulatory Oversight' risk, but this is too broad and non-specific to water/environmental regulations to constitute meaningful alignment.
American Water Works Company, Inc.
American Water Works operates water and wastewater treatment facilities across multiple states, directly subject to Clean Water Act regulations and permitting requirements. As a major water utility, the company's core operations involve water pollution control and discharge activities that fall under CWA jurisdiction, making it highly susceptible to these penalty adjustments. The rule's focus on civil monetary penalties for waterway and environmental violations has minimal alignment with the company's disclosed risk factors. While the company mentions 'Environmental Regulations' and 'Regulatory Compliance Risks' generally, there is no specific indication of operations involving waterways, navigation, or water pollution control that would be directly subject to these penalty adjustments.
CALIFORNIA WATER SERVICE GROUP
California Water Service Group operates as a water utility in California, directly subject to Clean Water Act regulations through its water management and pollution control activities. The company's infrastructure operations and water resource management fall under CWA jurisdiction, making it highly susceptible to the adjusted civil monetary penalties for violations. The Civil Monetary Penalty Inflation Adjustment Rule focuses on environmental compliance penalties for waterway navigation, pollution control, and fishing enhancement violations, which have no connection to the company's sole identified risk of IT/OT systems disruption and cybersecurity. The rule addresses regulatory compliance in physical environmental operations, while the company's risk profile centers on technology infrastructure and cyber threats.
CARNIVAL CORP
Carnival Corporation operates a global cruise fleet that navigates waterways subject to the Rivers and Harbors Appropriation Act and Clean Water Act, with direct exposure to civil monetary penalties for environmental compliance violations related to water pollution and navigation regulations. The company's extensive maritime operations and environmental risk management focus align directly with the rule's jurisdiction over waterway navigation and pollution control. The rule focuses on civil monetary penalties for waterway and environmental violations, which does not align with the company's disclosed risk factors of geopolitical/travel concerns, debt burden, cybersecurity, reputation incidents, or sustainability scrutiny. The company's single regulatory compliance risk is not specified to include waterway or environmental regulations.
MASTEC INC
MasTec Inc operates extensively in utility infrastructure and heavy civil construction, including water and wastewater treatment plants, pipeline systems, and environmental remediation projects that fall directly under Clean Water Act jurisdiction. The company's construction activities involving waterways, dredging, and environmental compliance make it highly susceptible to the civil monetary penalties outlined in this rule. The Civil Monetary Penalty Inflation Adjustment Rule specifically targets entities subject to waterway navigation, water pollution control, and fishing enhancement regulations under the Rivers and Harbors Act, Clean Water Act, and National Fishing Enhancement Act. The company's risk factors show no exposure to environmental compliance, waterway operations, or regulatory penalties in these specific areas, indicating no alignment with the rule's risk impacts.
GRANITE CONSTRUCTION INC
Granite Construction Inc operates extensively in heavy civil construction, including water infrastructure projects, bridges, dams, and environmental remediation that fall directly under Clean Water Act jurisdiction and Rivers and Harbors Act requirements. The company's core business activities involving waterway construction, dredging, and environmental compliance make them highly susceptible to the civil monetary penalties outlined in this rule. The rule focuses on civil monetary penalties for waterway and environmental violations, which does not align with the company's disclosed risks related to mineral resource estimation, mining operations, price volatility, and market demand. The only potential indirect connection is through the general 'Regulatory Change Risk', but this is not specific to water or environmental regulations that the rule targets.
IDACORP INC
IDACORP operates utility operations including electricity generation and distribution, which explicitly involves compliance with environmental regulations including the Clean Water Act. The company's business description specifically mentions Clean Water Act compliance, directly aligning with this rule's penalty adjustments for CWA violations. The rule focuses on civil monetary penalties for waterway navigation, pollution control, and fishing enhancement violations, which does not align with the company's risk factors related to energy demand, transmission constraints, hydropower dependence, weather impacts, and rate adjustments. The only potential indirect connection is through regulatory compliance risks, but the specific water-related regulations are not mentioned in the company's disclosed risks.
WASTE MANAGEMENT INC
Waste Management operates extensive landfill and waste disposal operations that are directly regulated under the Clean Water Act, particularly for stormwater runoff and leachate management from landfills. The company's water pollution control activities and potential permit violations fall squarely within the scope of CMP adjustments for Clean Water Act violations. The Civil Monetary Penalty Inflation Adjustment Rule focuses on penalties for waterway navigation, water pollution control, and fishing enhancement violations, which do not align with the company's disclosed risks related to renewable fuels (RINs market volatility, RFS program changes), interest rates, recycling commodity prices, or renewable energy investments. The company's regulatory compliance risks appear unrelated to environmental or waterway regulations.