Rule2025-00257
2025 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 13, 2025
Effective
January 13, 2025
Issuing agencies
Interior DepartmentOcean Energy Management Bureau
Abstract
This final rule implements the 2025 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-25-02. The 2025 adjustment multiplier of 1.02598 accounts for 1 year of inflation from October 2023 through October 2024.
Full Text
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<title>Federal Register, Volume 90 Issue 7 (Monday, January 13, 2025)</title>
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[Federal Register Volume 90, Number 7 (Monday, January 13, 2025)]
[Rules and Regulations]
[Pages 2611-2614]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00257]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Parts 550 and 553
[Docket ID: BOEM-2025-0001]
RIN 1010-AE22
2025 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 2025 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-25-02. The 2025 adjustment multiplier of 1.02598 accounts for 1 year
of inflation from October 2023 through October 2024.
DATES: This rule is effective on January 13, 2025.
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#f99398808a9697d789969595969a92b99b969c94d79e968f"><span class="__cf_email__" data-cfemail="690308101a06074719060505060a02290b060c04470e061f">[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,
Director, Office of Regulatory Affairs, BOEM at
<a href="/cdn-cgi/l/email-protection#dbb0baa9beb5f5afb3aeb5bfb2a2b2b79bb9b4beb6f5bcb4ad"><span class="__cf_email__" data-cfemail="0e656f7c6b60207a667b606a677767624e6c616b6320696178">[email protected]</span></a> or at (202) 742-0970.
SUPPLEMENTARY INFORMATION:
I. Legal Authority
II. Background and Purpose
III. Calculation of the 2025 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
[[Page 2612]]
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 2024 inflation adjustment for its civil
monetary penalties through a final rule entitled, ``2024 Civil
Penalties Inflation Adjustments for Oil, Gas, and Sulfur Operations in
the Outer Continental Shelf,'' which was published in the Federal
Register on January 25, 2024 at 89 FR 4815. That rule accounted for
inflation for the 12-month period between October 2022 and October
2023.
OMB memorandum M-25-02 \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-25-02 ``Implementation of Penalty Inflation
Adjustments for 2025, 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/2024/12/M-25-02.pdf">https://www.whitehouse.gov/wp-content/uploads/2024/12/M-25-02.pdf</a>.
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Pursuant to the Improvements Act and OMB M-25-02, this final rule
implements BOEM's 2025 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-25-02 at 4 (``This means that the
notice and comment process the APA generally requires--i.e., 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 2025 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 2024. 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-25-02, the 2025 inflation adjustment multiplier can be
calculated by dividing the October 2024 CPI-U by the October 2023 CPI-
U. In this case, October 2024 CPI-U (315.664)/October 2023 CPI-U
(307.671) = 1.02598.
For 2025, BOEM multiplied the current OCSLA maximum daily civil
monetary penalty of $54,352 by the multiplier 1.02598, which equals
$55,764.06. The Improvements Act requires that the resulting amount be
rounded to the nearest dollar. Accordingly, the 2025 adjusted OCSLA
maximum daily civil monetary penalty is $55,764.
For 2025, BOEM multiplied the current OPA maximum daily civil
penalty amount of $57,617 by the multiplier 1.02598, which equals
$59,113.89. The Improvements Act requires that the resulting amount be
rounded to the nearest dollar. Accordingly, the 2025 adjusted OPA
maximum daily civil monetary penalty is $59,114.
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.
Table 1 summarizes BOEM's 2025 maximum daily civil monetary
penalties for each OCSLA and OPA violation.
Table 1--BOEM Civil Penalties Adjustments
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Current
CFR citation Description of the maximum Multiplier 2025 maximum
penalty penalty penalty
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30 CFR 550.1403 (OCSLA)............... Failure to comply per $54,352 1.02598 $55,764
day per violation.
30 CFR 553.51(a) (OPA)................ Failure to comply per 57,617 1.02598 59,114
day per 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 and the
Bureau has no control or responsibility for the action other than
ministerial (see 43 CFR 46.100(a); see also 40 CFR 1508.1(w)(2)). 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
[[Page 2613]]
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-25-02 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-25-02 at 3-4.
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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-25-02 at 3-4.
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 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 to 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 actions 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.
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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 Principal 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 is revised 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 $55,764 per day per violation.
PART 553--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE
FACILITIES
0
3. The authority citation for part 553 continues 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 $59,114 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. 2025-00257 Filed 1-10-25; 8:45 am]
BILLING CODE 4340-98-P
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