Many years ago when many of the environmental laws were improved, circa 1990, there were various civil penalty per-day and total ceilings in place in the congressional law (USC).  Fairly round numbers were favored, such as $10,000, $25,000, and $200,000.

     After a time, inflation was recognized, and, via 61 FR 69360 (31 Dec. 1996), effective 30 Jan. 1997, 40 CFR 19 was added that increased most potential penalties 10 % leading to $11,000, 27,500, $220,000, etc.

     The “rounding formula law” is profoundly obscure and hard to cite (It is even more difficult to find.).  Read cites to it in the FR.  It requires adjustments every four years.

     Well, obviously from then to 68 FR 39882 (3 July 2003) is about four years, so EPA proposes to make the new penalties $11,000, $32,500, and $245,000, etc. by applying a 14.8 % increase to the 1997 values in accordance with the directions of the law and or God.

11,000 base x 0.148 = 1,628 increase prior to rounding
1,628 increase prior to rounding = 0 increase rounded 
11,000 base + 0 increase rounded = 11,000 new penalty 

27,500 base x 0.148 = 4,070 increase prior to rounding
4,070 increase prior to rounding = 5,000 increase rounded 
27,500 base + 5,000 increase rounded = 32,500 new penalty 

220,000 base x 0.148 = 32,560 increase prior to rounding
32,560 increase prior to rounding = 25,000 increase rounded 
220,000 base + 25,000 increase rounded = 245,000 new penalty 

     Comment was due 4 August 2003.

68 FR 39882 (3 July 2003)  The incredible methods and numbers.

61 FR 69360 (31 Dec. 1996)  How the 10% increase was done

67 FR 41343 (18 June 2002)  The failed attempt at penalty adjustment

67 FR 41363 (18 June 2002)  Failed attempt part 2

40 CFR 19 (July 2002)  Current regulation

thomas.loc.gov  A “rounding formula law” possibility