Rule2022-03750
Oil and Gas and Sulfur Operations on the Outer Continental Shelf-Civil Penalty Inflation Adjustment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 24, 2022
Effective
February 24, 2022
Issuing agencies
Interior DepartmentSafety and Environmental Enforcement Bureau
Abstract
This final rule adjusts the level of the maximum daily civil monetary penalty contained in the Bureau of Safety and Environmental Enforcement (BSEE) regulations for violations of the Outer Continental Shelf Lands Act (OCSLA), in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget (OMB) guidance. The civil penalty inflation adjustment, using a 1.06222 multiplier, accounts for one year of inflation based on the Consumer Price Index (CPI) spanning from October 2020 to October 2021.
Full Text
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<title>Federal Register, Volume 87 Issue 37 (Thursday, February 24, 2022)</title>
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[Federal Register Volume 87, Number 37 (Thursday, February 24, 2022)]
[Rules and Regulations]
[Pages 10306-10308]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03750]
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DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement
30 CFR Part 250
[Docket ID: BSEE-2022-0002; 223E1700D2 EEEE500000 ET1SF0000.EAQ000]
RIN 1014-AA55
Oil and Gas and Sulfur Operations on the Outer Continental
Shelf--Civil Penalty Inflation Adjustment
AGENCY: Bureau of Safety and Environmental Enforcement, Interior.
ACTION: Final rule.
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SUMMARY: This final rule adjusts the level of the maximum daily civil
monetary penalty contained in the Bureau of Safety and Environmental
Enforcement (BSEE) regulations for violations of the Outer Continental
Shelf Lands Act (OCSLA), in accordance with the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 and Office of
Management and Budget (OMB) guidance. The civil penalty inflation
adjustment, using a 1.06222 multiplier, accounts for one year of
inflation based on the Consumer Price Index (CPI) spanning from October
2020 to October 2021.
DATES: This rule is effective on February 24, 2022.
FOR FURTHER INFORMATION CONTACT: Janine Marie Tobias, Safety and
Enforcement Division, Bureau of Safety and Environmental Enforcement,
(202) 208-4657 or by email: <a href="/cdn-cgi/l/email-protection#80f2e5e7f3c0e2f3e5e5aee7eff6"><span class="__cf_email__" data-cfemail="5c2e393b2f1c3e2f3939723b332a">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background and Legal Authority
The OCSLA, at 43 U.S.C. 1350(b)(1), directs the Secretary of the
Interior (Secretary) to adjust the OCSLA maximum daily civil penalty
amount at least once every three years to reflect any increase in the
CPI to account for inflation. On November 2, 2015, the President signed
into law the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Sec. 701 of Pub. L. 114-74) (FCPIA of 2015).
The FCPIA of 2015 required Federal agencies to adjust the level of
civil monetary penalties found in their regulations with an initial
``catch-up'' adjustment through rulemaking, if warranted, and then to
make subsequent annual adjustments for inflation. The purpose of these
adjustments is to maintain the deterrent effect of civil penalties and
to further the policy goals of the underlying statutes. Agencies were
required to publish the first annual inflation adjustments in the
Federal Register by no later than January 15, 2017, and must publish
recurring annual inflation adjustments by no later than January 15 of
each subsequent year.
BSEE last updated the maximum daily civil penalty amounts in BSEE's
regulations for OCSLA violations by a final rule published and
effective on May 4, 2021. (See 86 FR 23606). Consistent with OMB
guidance, the 2021 final rule implemented the inflation adjustments
required by the FCPIA of 2015 through October 2020.
The OMB Memorandum M-22-07 (Implementation of Penalty Inflation
Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015; available at <a href="https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf">https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf</a>) explains
agency responsibilities for: Identifying applicable penalties and
performing the annual adjustment; publishing revisions to regulations
to implement the adjustment in the Federal Register; applying adjusted
penalty levels; and performing agency oversight of inflation
adjustments.
BSEE is promulgating this 2022 inflation adjustment for the OCSLA
maximum daily civil penalties as a final rule pursuant to the
provisions of the FCPIA of 2015 and OMB's guidance. A proposed rule is
not required because the FCPIA of 2015 expressly exempted the annual
inflation adjustments implemented pursuant to the FCPIA of 2015 from
the pre-promulgation notice and comment requirements of the
Administrative Procedure Act, 5 U.S.C. 553 et seq. (the APA), allowing
those adjustments to be published directly as final rules.
Specifically, the FCPIA of 2015 states that agencies shall adjust civil
monetary penalties ``notwithstanding Section 553 of the Administrative
Procedure Act.'' (FCPIA of 2015 at Sec. 4(b)(2)). This interpretation
of the FCPIA of 2015 is confirmed by OMB Memorandum M-22-07 at 3-4
(``This means that the public procedure the APA generally requires--
notice, an opportunity for comment, and a delay in effective date--is
not required for agencies to issue regulations implementing the annual
adjustment.'').
II. Calculation of Adjustments
In accordance with the FCPIA of 2015 and the guidance provided in
OMB Memorandum M-22-07, BSEE has calculated the necessary inflation
adjustment for the maximum daily civil monetary penalty amount in 30
CFR 250.1403 for violations of OCSLA. The previous OCSLA civil penalty
inflation adjustment accounted for inflation through October 2020. The
required annual civil penalty inflation adjustment promulgated through
this rule accounts for inflation through October 2021.
Annual inflation adjustments are based on the percent change
between the CPI for all Urban Consumers (CPI-U) for the October
preceding the date of the adjustment, and the prior year's October CPI-
U. Consistent with the guidance in OMB Memorandum M-22-07, BSEE divided
the October 2021 CPI-U by the October 2020 CPI-U to calculate the
multiplying factor. In this case, the October 2021 CPI-U (276.589)
divided by the October 2020 CPI-U (260.388) is 1.06222. OMB Memorandum
M-22-07 confirms that this is the proper multiplier. (OMB Memorandum M-
22-07 at 1 & n.4).
The FCPIA of 2015 requires that BSEE adjust the OCSLA maximum daily
civil penalty amount for inflation using the applicable 2022 multiplier
(1.06222). Accordingly, BSEE multiplied the existing OCSLA maximum
daily civil penalty amount ($46,000) by 1.06222 to arrive at the new
maximum daily civil penalty amount ($48,862.12). The FCPIA of 2015
requires that the resulting amount be rounded to the nearest $1.00 at
the end of the calculation process. Accordingly, the adjusted OCSLA
maximum daily civil penalty for 2022 is $48,862.
The adjusted penalty levels take effect immediately upon
publication of this rule. Pursuant to the FCPIA of 2015, the increase
in the OCSLA maximum daily civil penalty amount applies to civil
penalties assessed after the date the increase takes effect, even when
the associated violation(s) predates such increase. Consistent with the
provisions of OCSLA and the FCPIA of 2015, this rule adjusts the
following maximum civil monetary penalty per day per violation as
follows:
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Current Adjusted
CFR citation Description of the maximum Multiplier maximum
penalty penalty penalty
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30 CFR 250.1403....................... Failure to comply per- $46,000 1.06222 $48,862
day, per-violation.
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III. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866 and 13563)
Executive Order (E.O.) 12866 provides that the OMB Office of
Information and Regulatory Affairs (OIRA) will review all significant
rules. OIRA has determined that this rule is not significant. (See OMB
Memorandum M-22-07 at 3).
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the Nation's regulatory system to promote
predictability, to reduce uncertainty, and to use the best, most
innovative, and least burdensome tools for achieving regulatory ends.
E.O. 13563 directs agencies to consider regulatory approaches that
reduce burdens and maintain flexibility and freedom of choice for the
public where these approaches are relevant, feasible, and consistent
with regulatory objectives. E.O. 13563 further emphasizes that
regulations must be based on the best available science and that the
rulemaking process must allow for public participation and an open
exchange of ideas. We have developed this rule in a manner consistent
with these requirements, to the extent permitted by statute.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires an agency to prepare
a regulatory flexibility analysis for rules unless the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities. The RFA applies only to rules for
which an agency is required to first publish a proposed rule. (See 5
U.S.C. 603(a) and 604(a)). The FCPIA of 2015 expressly exempts these
annual inflation adjustments from the requirement to publish a proposed
rule for notice and comment. (See FCPIA of 2015 at Sec. 4(b)(2); OMB
Memorandum M-22-07 at 3-4). Thus, the RFA does not apply to this
rulemaking.
C. Small Business Regulatory Enforcement Fairness Act
This rule is not a major rule under 5 U.S.C. 804(2), the Small
Business Regulatory Enforcement Fairness Act. This rule:
(1) Does not have an annual effect on the economy of $100 million
or more;
(2) Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions; and
(3) Does not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises.
D. Unfunded Mandates Reform Act
This rule does not impose an unfunded mandate on State, local, or
tribal governments, or the private sector of more than $100 million per
year. The rule does not have a significant or unique effect on State,
local, or tribal governments or the private sector. Therefore, a
statement containing the information required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not required.
E. Takings (E.O. 12630)
This rule does not effect a taking of private property or otherwise
have takings implications under E.O. 12630. Therefore, a takings
implication assessment is not required.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of E.O. 13132, this rule does not
have sufficient federalism implications to warrant the preparation of a
federalism summary impact statement. To the extent that State and local
governments have a role in Outer Continental Shelf activities, this
rule will not affect that role. Therefore, a federalism summary impact
statement is not required.
G. Civil Justice Reform (E.O. 12988)
This rule complies with the requirements of E.O. 12988.
Specifically, this rule:
(1) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(2) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
H. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)
The Department of the Interior strives to strengthen its
government-to-government relationship with Indian Tribes through a
commitment to consultation with Indian Tribes and recognition of their
right to self-governance and tribal sovereignty. We have evaluated this
rule under the Department of the Interior's consultation policy, under
Departmental Manual Part 512 Chapters 4 and 5, and under the criteria
in E.O. 13175. We have determined that it has no substantial direct
effects on Federally recognized Indian Tribes or Alaska Native Claims
Settlement Act (ANCSA) Corporations, and that consultation under the
Department of the Interior's tribal and ANCSA consultation policies is
not required.
I. Paperwork Reduction Act
This rule does not contain information collection requirements, and
a submission to the OMB under the Paperwork Reduction Act (44 U.S.C.
3501 et seq.) is not required.
J. National Environmental Policy Act
This rule does not constitute a major Federal action because of the
non-discretionary nature of the civil penalty adjustment as required by
law (40 CFR 1508.1(q)(1(ii)). The Department of Labor's CPI sets the
annual civil penalty adjustment as required by the FCPIA of 2015. BSEE
has no discretion in the execution of the civil penalty adjustments.
Because this rule is not a Major Federal Action, it is therefore not
subject to the requirements of the National Environmental Policy Act of
1969 (NEPA).
K. Effects on the Energy Supply (E.O. 13211)
This rule is not a significant energy action under the definition
in E.O. 13211. Therefore, a Statement of Energy Effects is not
required.
List of Subjects in 30 CFR Part 250
Administrative practice and procedure, Continental shelf,
Environmental impact statements, Environmental protection, Government
contracts, Investigations, Mineral resources, Oil and gas exploration,
Penalties, Pipelines, Continental shelf--mineral resources, Continental
Shelf--
[[Page 10308]]
rights-of-way, Reporting and recordkeeping requirements, and Sulfur.
Laura Daniel-Davis,
Principal Deputy Assistant Secretary, Land and Minerals Management.
For the reasons given in the preamble, the BSEE amends Title 30,
Chapter II, Subchapter B, part 250 of the Code of Federal Regulations
as follows.
PART 250--OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
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1. The authority citation for 30 CFR part 250 continues to read as
follows:
Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C.
1321(j)(1)(C), 43 U.S.C. 1334.
0
2. Revise Sec. 250.1403 to read as follows:
Sec. 250.1403 What is the maximum civil penalty?
The maximum civil penalty is $48,862 per day per violation.
[FR Doc. 2022-03750 Filed 2-23-22; 8:45 am]
BILLING CODE 4310-VH-P
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</html>Indexed from Federal Register on February 24, 2022.
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