Rule2024-01412
2024 Civil Penalties Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer Continental Shelf
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
January 25, 2024
Effective
January 25, 2024
Issuing agencies
Interior DepartmentOcean Energy Management Bureau
Abstract
This final rule implements the 2024 inflation adjustments to the maximum daily civil monetary penalties in the Bureau of Ocean Energy Management's (BOEM) regulations for violations of the Outer Continental Shelf Lands Act (OCSLA) and the Oil Pollution Act of 1990 (OPA). These inflation adjustments are made pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Improvements Act) and Office of Management and Budget (OMB) memorandum M-24-07. The 2024 adjustment multiplier of 1.03241 accounts for 1 year of inflation from October 2022 through October 2023.
Full Text
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<title>Federal Register, Volume 89 Issue 17 (Thursday, January 25, 2024)</title>
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[Federal Register Volume 89, Number 17 (Thursday, January 25, 2024)]
[Rules and Regulations]
[Pages 4815-4818]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01412]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Parts 550 and 553
[Docket ID: BOEM-2024-0002]
RIN 1010-AE19
2024 Civil Penalties Inflation Adjustments for Oil, Gas, and
Sulfur Operations in the Outer Continental Shelf
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final rule.
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SUMMARY: This final rule implements the 2024 inflation adjustments to
the maximum daily civil monetary penalties in the Bureau of Ocean
Energy Management's (BOEM) regulations for violations of the Outer
Continental Shelf Lands Act (OCSLA) and the Oil Pollution Act of 1990
(OPA). These inflation adjustments are made pursuant to the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015
(Improvements Act) and Office of Management and Budget (OMB)
[[Page 4816]]
memorandum M-24-07. The 2024 adjustment multiplier of 1.03241 accounts
for 1 year of inflation from October 2022 through October 2023.
DATES: This rule is effective on January 25, 2024.
FOR FURTHER INFORMATION CONTACT: Questions regarding the inflation
adjustment methodology or amount should be directed to Jayson Pollock,
Economics Division, BOEM, at <a href="/cdn-cgi/l/email-protection#b8d2d9c1cbd7d696c8d7d4d4d7dbd3f8dad7ddd596dfd7ce"><span class="__cf_email__" data-cfemail="c9a3a8b0baa6a7e7b9a6a5a5a6aaa289aba6aca4e7aea6bf">[email protected]</span></a> or at (703) 787-
1537. Questions regarding the timing of this adjustment or the
applicability of the regulations should be directed to Karen Thundiyil,
Chief, Office of Regulations, BOEM at <a href="/cdn-cgi/l/email-protection#442f2536212a6a302c312a202d3d2d2804262b21296a232b32"><span class="__cf_email__" data-cfemail="dcb7bdaeb9b2f2a8b4a9b2b8b5a5b5b09cbeb3b9b1f2bbb3aa">[email protected]</span></a> or at
(202) 742-0970.
SUPPLEMENTARY INFORMATION:
I. Legal Authority
II. Background and Purpose
III. Calculation of the 2024 Adjustments
IV. Statutory and Executive Order Reviews
A. Statutes
1. National Environmental Policy Act
2. Regulatory Flexibility Act
3. Paperwork Reduction Act
4. Unfunded Mandates Reform Act
5. Small Business Regulatory Enforcement Fairness Act
6. Congressional Review Act
B. Executive Orders (E.O.)
1. Governmental Actions and Interference With Constitutionally
Protected Property Rights (E.O. 12630)
2. Regulatory Planning and Review (E.O. 12866); Modernizing
Regulatory Review (E.O. 14094); Improving Regulation and Regulatory
Review (E.O. 13563)
3. Civil Justice Reform (E.O. 12988)
4. Federalism (E.O. 13132)
5. Consultation and Coordination With Indian Tribal Governments
(E.O. 13175)
6. Actions Concerning Regulations That Significantly Affect
Energy Supply, Distribution, or Use (E.O. 13211)
I. Legal Authority
OCSLA authorizes the Secretary of the Interior (the Secretary) to
impose a daily civil monetary penalty for a violation of OCSLA or its
implementing regulations, leases, permits, or orders. It also directs
the Secretary to adjust the maximum penalty at least every 3 years to
reflect any inflation increase in the Consumer Price Index. 43 U.S.C.
1350(b)(1). Similarly, OPA authorizes civil monetary penalties for
failure to comply with OPA's financial responsibility provisions or its
implementing regulations. 33 U.S.C. 2716a(a). OPA does not include a
maximum daily civil penalty inflation adjustment provision, but such
adjustment is authorized by the Improvements Act. See 28 U.S.C. 2461
note.
The Improvements Act \1\ requires that Federal agencies publish
inflation adjustments to their civil monetary penalties in the Federal
Register not later than January 15 annually.\2\ The purposes of these
inflation adjustments are to maintain the deterrent effect of civil
penalties and to further the policy goals of the underlying statutes.
Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law
101-410, sec. 2 (codified at 28 U.S.C. 2461 note).
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\1\ The Improvements Act amended the Federal Civil Penalties
Inflation Adjustment Act of 1990. See Public Law 101-410 (codified
at 28 U.S.C. 2461 note).
\2\ Under the Improvements Act, Federal agencies were required
to adjust their civil monetary penalties for inflation with an
initial ``catch-up'' adjustment through an interim final rulemaking
in 2016 and must make subsequent inflation adjustments not later
than January 15 annually, beginning in 2017. Public Law 114-74, sec.
701(b)(1).
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II. Background and Purpose
BOEM implemented the 2023 inflation adjustment for its civil
monetary penalties through a final rule entitled ``2023 Civil Penalties
Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer
Continental Shelf,'' which was published in the Federal Register on
February 15, 2023. 88 FR 9749. That rule accounted for inflation for
the 12-month period between October 2021 and October 2022.
OMB memorandum M-24-07 \3\ reiterates agency responsibilities under
the Improvements Act. Such responsibilities include identifying
applicable penalties and performing the annual adjustment; publishing
revisions to regulations to implement the adjustment in the Federal
Register; applying adjusted penalty dollar amounts; and performing
agency oversight of inflation adjustments.
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\3\ OMB Memorandum M-24-07 ``Implementation of Penalty Inflation
Adjustments for 2024, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015'' is available at
<a href="https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf">https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf</a>.
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Pursuant to the Improvements Act and OMB M-24-07, this final rule
implements BOEM's 2024 inflation adjustments to OCSLA and OPA maximum
daily civil monetary penalties. A proposed rule is unnecessary as the
Improvements Act expressly exempts annual civil penalty inflation
adjustments from the Administrative Procedure Act's (APA) notice of
proposed rulemaking, public comment, and standard effective date
provisions. Improvements Act, Public Law 114-74, sec. 701(b)(1)(D);
APA, 5 U.S.C. 553.\4\
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\4\ Specifically, Congress directed that agencies adjust civil
monetary penalties ``notwithstanding section 553 of title 5, United
States Code [Administrative Procedure Act (APA)],'' which generally
requires prior notice of proposed rulemaking, opportunity for public
comment on proposed rulemaking, and publication of a final rule at
least 30 days before its effective date. Improvements Act, sec.
701(b)(1)(D); APA, 5 U.S.C. 553. OMB confirmed this interpretation
of the Improvements Act. OMB M-24-07 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.'').
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On July 22, 2021, BOEM issued a final rule entitled ``Maximum Daily
Civil Penalty Amounts for Violations of the Federal Oil and Gas Royalty
Management Act'' (86 FR 38557). The rule amended BOEM's regulations
that set maximum daily civil penalty (MDCP) amounts for violations of
the Federal Oil and Gas Royalty Management Act (FOGRMA). The amendment
cross-referenced BOEM's regulations to the Office of Natural Resources
Revenue (ONRR) regulations that also set MDCP amounts for FOGRMA
violations. This cross-reference ensured consistency between BOEM's
FOGRMA MDCP amounts and ONRR's FOGRMA MDCP amounts. Because ONRR
annually adjusts its MDCP for inflation, the cross-referencing rule
also ensured consistent compliance with the Improvements Act and
related OMB guidance while reducing possible confusion among regulated
parties and unnecessary duplication of effort and costs to the Federal
Government. The cross-reference to ONRR's regulations relieves BOEM of
the necessity to adjust its FOGRMA MDCP.
III. Calculation of the 2024 Adjustments
In accordance with the Improvements Act, BOEM determined that OCSLA
and OPA maximum daily civil monetary penalties require annual inflation
adjustments. BOEM issues this final rule adjusting those penalty
amounts for inflation through October 2023. The annual inflation
adjustment is based on the percent change between the Consumer Price
Index 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 OMB M-24-07, the 2024 inflation adjustment multiplier can be
calculated by dividing the October 2023 CPI-U by the October 2022 CPI-
U. In this case, October 2023 CPI-U (307.671)/October 2022 CPI-U
(298.012) = 1.03241.
[[Page 4817]]
For 2024, BOEM multiplied the current OCSLA maximum daily civil
monetary penalty of $52,646 by the multiplier 1.03241, which equals
$54,352.26. The Improvements Act requires that the resulting amount
then be rounded to the nearest dollar. Accordingly, the 2024 adjusted
OCSLA maximum daily civil monetary penalty is $54,352.
For 2024, BOEM multiplied the current OPA maximum daily civil
penalty amount of $55,808 by the multiplier 1.03241, which equals
$57,616.74. The Improvements Act requires that the resulting amount
then be rounded to the nearest dollar. Accordingly, the 2024 adjusted
OPA maximum daily civil monetary penalty is $57,617.
The adjusted penalty amounts take effect immediately upon
publication of this rule. Under the Improvements Act, the adjusted
amounts apply to civil penalties assessed after the date the increase
takes effect, even if the associated violation predates the increase.
This table summarizes BOEM's 2024 maximum daily civil monetary
penalties for each OCSLA and OPA violation:
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Current 2024
CFR citation Description of the penalty maximum Multiplier Maximum
penalty penalty
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30 CFR 550.1403 (OCSLA)..................... Failure to comply per day per $52,646 1.03241 $54,352
violation.
30 CFR 553.51(a) (OPA)...................... Failure to comply per day per 55,808 1.03241 57,617
violation.
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IV. Statutory and Executive Order Reviews
A. Statutes
1. National Environmental Policy Act
This rule does not constitute a major Federal action under the
National Environmental Policy Act of 1969 (NEPA, 42 U.S.C. 4321 et
seq.) because the civil penalty adjustments are required by law (see 40
CFR 1508.1(q)(1)(ii)). The Improvements Act requires BOEM to annually
adjust the amounts of its civil penalties to account for inflation as
measured by the Department of Labor's Consumer Price Index.
Accordingly, BOEM has no discretion in the execution of the civil
penalty adjustments reflected in this final rule. Because this rule is
not a major Federal action, it is therefore not subject to the
requirements of NEPA. Even if this were a discretionary action subject
to NEPA, which it is not, a detailed statement under NEPA would not be
required because, as a regulation of an administrative nature, this
rule would be covered by a categorical exclusion (see 43 CFR
46.210(i)). Moreover, BOEM determined that the rule does not implicate
any of the extraordinary circumstances listed in 43 CFR 46.215 that
would prevent reliance on the categorical exclusion. Therefore, a
detailed statement under NEPA is not required.
2. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA, 5 U.S.C. 601 et seq.) requires
an agency to prepare a regulatory flexibility analysis for all rules
unless the agency certifies that the rule will not have a significant
economic impact on a substantial number of small entities. However, 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
Improvements Act expressly exempts these annual inflation adjustments
from the requirement to publish a proposed rule for notice and comment.
Improvements Act, Public Law 114-74, sec. 701(b)(1)(D); OMB M-24-07 at
3-4. Thus, the RFA does not apply to this rulemaking.
3. Paperwork Reduction Act
This rule does not contain information collection requirements,
and, therefore, a submission to OMB under the Paperwork Reduction Act
(44 U.S.C. 3501 et seq.) is not required.
4. Unfunded Mandates Reform Act
This rule does not impose an unfunded mandate on State, local, or
Tribal governments, in the aggregate, or to the private sector, of $100
million or more in any one year. The rule does not have a significant
or unique effect on State, local, or Tribal Governments, or on 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.
5. Small Business Regulatory Enforcement Fairness Act
This rule is not a major rule under 5 U.S.C. 804(2). This rule:
(a) will not have an annual effect on the economy of $100 million
or more;
(b) will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions; and
(c) will 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.
6. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.) and
OMB guidance,\5\ this rule is not a major rule, as defined by that act.
5 U.S.C. 804(2).
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\5\ See Office of Mgmt. & Budget, Exec. Office of the President,
OMB M-19-14, Guidance on Compliance with the Congressional Review
Act (2019), available at <a href="https://www.whitehouse.gov/wp-content/uploads/2019/04/M-19-14.pdf">https://www.whitehouse.gov/wp-content/uploads/2019/04/M-19-14.pdf</a>; OMB Memorandum M-24-07 at 3.
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B. Executive Orders (E.O.)
1. Governmental Actions and Interference With Constitutionally
Protected Property Rights (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.
2. Regulatory Planning and Review (E.O. 12866); Modernizing Regulatory
Review (E.O. 14094); Improving Regulation and Regulatory Review (E.O.
13563)
E.O. 12866, as amended by E.O. 14094, provides that the Office of
Information and Regulatory Affairs (OIRA) will review all significant
rules. OIRA determined that annual civil penalty inflation adjustment
rules are not significant if they exclusively implement the annual
inflation adjustment consistent with OMB guidance and have an annual
impact of less than $200 million. See OMB Memorandum M-24-07 at 3. This
rule meets those conditions and, thus, is not a significant rule.
E.O. 13563 reaffirms the principles of E.O. 12866, as amended by
E.O. 14094, while calling for improvements in the Nation's regulatory
system to reduce uncertainty and to promote predictability and for the
use of 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
[[Page 4818]]
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.
However, BOEM is using neither science nor public participation in this
rulemaking. Congress directed agencies to adjust the maximum daily
civil penalty amounts using a particular equation without public
participation. BOEM does not have discretion to use any other factor in
the adjustment. BOEM has developed this rule in a manner consistent
with the requirements in E.O. 13563 to the extent relevant and feasible
given the limited discretion provided agencies under the Improvements
Act.
3. Civil Justice Reform (E.O. 12988)
This rule complies with the requirements of E.O. 12988.
Specifically, this rule:
(a) 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
(b) meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
4. 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. This rule merely adjusts the
dollar amount of civil monetary penalties that BOEM may impose on oil
and gas lessees, grant holders, and operators on the Outer Continental
Shelf and has no effects on any action of State or local governments.
Therefore, a federalism summary impact statement is not required.
5. Consultation and Coordination With Indian Tribal Governments (E.O.
13175)
The Department of the Interior and BOEM strive to strengthen their
government-to-government relationships with Indian Tribes through a
commitment to consultation with Indian Tribes and recognition of the
Tribes' right to self-governance and Tribal sovereignty. BOEM evaluated
this rule under the Department of the Interior's consultation policy,
Departmental Manual part 512 chapters 4 and 5, and E.O. 13175. BOEM
determined that this rule has no substantial direct effects on
federally recognized Indian Tribes or Alaska Native Claims Settlement
Act Corporations and that consultation under existing Department and
BOEM policies is not required.
6. Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use (E.O. 13211)
This rule is not a ``significant energy action'' under the
definition of that term found in E.O. 13211. Therefore, a statement of
energy effects is not required.
List of Subjects
30 CFR Part 550
Administrative practice and procedure, Continental shelf,
Environmental impact statements, Environmental protection, Federal
lands, Government contracts, Investigations, Mineral resources, Oil and
gas exploration, Outer continental shelf, Penalties, Pipelines,
Reporting and recordkeeping requirements, Rights-of-way, Sulfur.
30 CFR Part 553
Administrative practice and procedure, Continental shelf, Financial
responsibility, Liability, Limit of liability, Oil and gas exploration,
Oil pollution, Outer continental shelf, Penalties, Pipelines, Reporting
and recordkeeping requirements, Rights-of-way, Surety bonds, Treasury
securities.
This action by the Deputy Assistant Secretary is taken pursuant to
an existing delegation of authority.
Steven H. Feldgus,
Principal Deputy Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, BOEM amends 30 CFR parts
550 and 553 as follows:
PART 550--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
0
1. The authority citation for part 550 continues to read as follows:
Authority: 30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334.
0
2. Revise Sec. 550.1403 to read as follows:
Sec. 550.1403 What is the maximum civil penalty?
The maximum civil penalty is $54,352 per day per violation.
PART 553--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE
FACILITIES
0
3. The authority citation for part 553 is amended to read as follows:
Authority: 33 U.S.C. 2704, 2716; 2716a; E.O. 12777, as amended.
0
4. Revise Sec. 553.51(a) to read as follows:
Sec. 553.51 What are the penalties for not complying with this part?
(a) If you fail to comply with the financial responsibility
requirements of OPA at 33 U.S.C. 2716 or with the requirements of this
part, then you may be liable for a civil penalty of up to $57,617 per
COF per day of violation (that is, each day a COF is operated without
acceptable evidence of OSFR).
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[FR Doc. 2024-01412 Filed 1-24-24; 8:45 am]
BILLING CODE 4340-98-P
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