Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Civil Penalties Inflation Adjustments
| Published date | 26 March 2019 |
| Citation | 84 FR 11222 |
| Record Number | 2019-05577 |
| Section | Rules and Regulations |
| Court | Interior Department,Ocean Energy Management Bureau |
Federal Register, Volume 84 Issue 58 (Tuesday, March 26, 2019)
[Federal Register Volume 84, Number 58 (Tuesday, March 26, 2019)]
[Rules and Regulations]
[Pages 11222-11224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05577]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Parts 550 and 553
[Docket ID: BOEM-2019-0079; MMAA104000]
RIN 1010-AE03
Oil and Gas and Sulfur Operations in the Outer Continental Shelf-
Civil Penalties Inflation Adjustments
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final rule.
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SUMMARY: This final rule implements the 2019 adjustment of the level of
the maximum daily civil monetary penalties contained in the Bureau of
Ocean Energy Management (BOEM) regulations for violations of the Outer
Continental Shelf Lands Act (OCSLA) and the Oil Pollution Act of 1990
(OPA), in accordance with the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 and relevant Office of
Management and Budget (OMB) guidance. The 2019 adjustment multiplier of
1.02522 accounts for one year of inflation spanning the period from
October 2017 through October 2018.
DATES: This rule is effective on March 26, 2019.
FOR FURTHER INFORMATION CONTACT: Deanna Meyer-Pietruszka, Chief, Office
of Policy, Regulation and Analysis, Bureau of Ocean Energy Management,
at (202) 208-6352 or by email at [email protected].
SUPPLEMENTARY INFORMATION:
I. Background and Legal Authority
II. Calculation of 2019 Adjustments
III. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866, 13563, and 113771)
B. Regulatory Flexibility Act
C. Small Business Regulatory Enforcement Fairness Act
D. Unfunded Mandates Reform Act
E. Takings (E.O. 112630)
F. Federalism (E.O. 113132)
G. Civil Justice Reform (E.O. 112988)
H. Consultation With Indian Tribes (E.O. 13175 and Departmental
Policy)
I. Paperwork Reduction Act
J. National Environmental Policy Act
K. Effects on the Energy Supply (E.O. 13211)
I. Background and Legal Authority
The OCSLA directs the Secretary of the Interior to adjust the OCSLA
maximum daily civil penalty amount at least once every three years to
reflect any increase in the Consumer Price Index to account for
inflation (43 U.S.C. 1350(b)(1)).
The OPA does not include a maximum daily civil penalty inflation
adjustment provision.
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (Sec. 701 of Pub. L. 114-74) (FCPIAA of 2015) requires
Federal agencies to promulgate annual inflation adjustments for civil
monetary penalties. Specifically, the FCPIAA of 2015 required agencies
to adjust the level of civil monetary penalties with an initial
``catch-up'' adjustment through an interim final rulemaking (IFR) in
2016, and required agencies to make subsequent annual adjustments for
inflation, beginning in 2017. 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. The
purpose of these adjustments is to maintain the deterrent effect of
civil penalties and to further the policy goals of the underlying
statutes. For this year's annual inflation adjustment, BOEM is
publishing this rule after the statutory January 15 deadline because of
a lapse in government funding that began on December 22, 2018, and
ended on January 25, 2019.
BOEM last adjusted the levels of civil monetary penalties in BOEM
regulations through a final rule, RIN 1010-AD99 [83 FR 8930], which was
published on March 2, 2018.
The OMB Memorandum M-19-04 (Implementation of Penalty Inflation
Adjustments for 2019, Pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015; https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf), issued December 14, 2018,
explains agency statutory 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.
BOEM is promulgating this 2019 inflation adjustment for the OCSLA
and OPA maximum daily civil penalties as a final rule pursuant to the
provisions of the FCPIAA of 2015 and OMB guidance. A proposed rule is
not required because the FCPIAA of 2015 expressly exempted the annual
inflation adjustments implemented pursuant to the FCPIAA 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.
[[Page 11223]]
Specifically, the FCPIAA of 2015 states that agencies shall adjust
civil monetary penalties ``notwithstanding Section 553 of the
Administrative Procedure Act.'' (FCPIAA of 2015 at section 4(b)(2)).
This interpretation of the FCPIAA of 2015 is confirmed by OMB
Memorandum M-19-04 at 4 (``This means that the public procedure 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.'').
II. Calculation of 2019 Adjustments
Under the FCPIAA of 2015 and the guidance provided in OMB
Memorandum M-19-04, BOEM has identified applicable civil monetary
penalties and calculated the necessary inflation adjustments. The
previous civil penalty inflation adjustments accounted for inflation
through October 2017. The required annual civil penalty inflation
adjustments promulgated through this rule account for inflation through
October 2018.
Annual inflation adjustments are 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 the guidance in OMB Memorandum M-19-04,
BOEM divided the October 2018 CPI-U by the October 2017 CPI-U to
calculate the multiplying factor. In this case, October 2018 CPI-U
(252.885)/October 2017 CPI-U (246.663) = 1.02522. OMB Memorandum M-19-
04 confirms that this is the proper multiplier. (See OMB Memorandum M-
19-04 at 1 and n.4).
For 2019, OCSLA and the FCPIAA of 2015 require that BOEM adjust the
OCSLA maximum daily civil penalty amount. To accomplish this, BOEM
multiplied the existing OCSLA maximum daily civil penalty amount
($43,576) by the multiplying factor ($43,576 x 1.02522 = $44,674.99).
The FCPIAA 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 is $44,675.
For 2019, the FCPIAA of 2015 requires that BOEM adjust the OPA
maximum daily civil penalty amount. To accomplish this, BOEM multiplied
the current OPA maximum daily civil penalty amount ($46,192) by the
multiplying factor ($46,192 x 1.02522 = $47,356.96). The FCPIAA of 2015
requires that the resulting amount be rounded to the nearest $1.00 at
the end of the calculation process. Accordingly, the adjusted OPA
maximum daily civil penalty is $47,357.
The adjusted penalty levels will take effect immediately upon
publication of this rule. Pursuant to the FCPIAA of 2015, the increases
in the OCSLA and OPA maximum daily civil penalty amounts apply to civil
penalties assessed after the date the relevant increase takes effect,
even if the associated violation(s) predates such increase. Consistent
with the provisions of OCSLA, OPA, and the FCPIAA of 2015, this rule
adjusts the following maximum civil monetary penalties 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 550.1403....................... Failure to comply per $43,576 1.02522 $44,675
day, per violation.
30 CFR 553.51(a)...................... Failure to comply per 46,192 1.02522 47,357
day, per violation.
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III. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771)
Executive Order (E.O.) 12866 provides that the Office of
Information and Regulatory Affairs (OIRA) in the OMB will review all
significant rules. OIRA has determined that this rule is not
significant. (See OMB Memorandum M-19-04 at 3).
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the Nation's regulatory system to reduce uncertainty
and to promote predictability and 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. We have developed this rule in a manner consistent with
these requirements, to the extent relevant and feasible given the
limited discretion provided agencies in the FCPIAA of 2015.
E.O. 13771 of January 30, 2017, directs Federal agencies to reduce
the regulatory burden on regulated entities and control regulatory
costs. E.O. 13771, however, applies only to significant regulatory
actions, as defined in Section 3(f) of E.O. 12866. OIRA has determined
that agency regulations exclusively implementing the annual adjustment
required by the FCPIAA of 2015 are not significant regulatory actions
under E.O. 12866, provided they are consistent with OMB Memorandum M-
19-04 (See OMB Memorandum M-19-04 at 3). Thus, E.O. 13771 does not
apply to this rulemaking.
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 FCPIAA of 2015 expressly exempts these
annual inflation adjustments from the requirement to publish a proposed
rule for notice and comment. (See FCPIAA of 2015 at section 4(b)(2);
OMB Memorandum M-19-04 at 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:
(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.
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
[[Page 11224]]
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:
(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.
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 significantly
affecting the quality of the human environment. A detailed statement
under the National Environmental Policy Act of 1969 (NEPA) is not
required because, as a regulation of an administrative nature, this
rule is covered by a categorical exclusion (see 43 CFR 46.210(i)). BOEM
also determined that the rule does not implicate any of the
extraordinary circumstances listed in 43 CFR 46.215 that would require
further analysis under NEPA. Therefore, a detailed statement under NEPA
is not required.
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
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.
Dated: February 15, 2019.
Joseph R. Balash,
Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, the BOEM amends title 30,
chapter V, subchapter B, parts 550 and 553 of the Code of Federal
Regulations as follows:
PART 550--OIL AND GAS AND SULFUR 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 $44,675 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; E.O. 12777, as amended.
0
4. In Sec. 553.51, revise paragraph (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 $47,357 per
COF per day of violation (that is, each day a COF is operated without
acceptable evidence of OSFR).
* * * * *
[FR Doc. 2019-05577 Filed 3-25-19; 8:45 am]
BILLING CODE 4310-MR-P
