[Federal Register Volume 84, Number 57 (Monday, March 25, 2019)]
[Rules and Regulations]
[Pages 10989-10992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05671]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2019-0001; 190E1700D2 ETISF0000.EAQ000 EEEE500000]
RIN 1014-AA42


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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[[Page 10990]]

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 1.02522 multiplier, accounts for one year of 
inflation spanning from October 2017 to October 2018.

DATES: This rule is effective on March 25, 2019.

FOR FURTHER INFORMATION CONTACT: Stacey Noem, Safety and Enforcement 
Division, Bureau of Safety and Environmental Enforcement, (202) 208-
4005 or by email: [email protected].

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 
Consumer Price Index (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 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. For this year's annual inflation adjustment, BSEE 
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.
    BSEE last updated the maximum daily civil penalty amounts in BSEE's 
regulations for OCSLA violations by a final rule published and 
effective on January 18, 2018. (See 83 FR 2538). Consistent with OMB 
guidance, BSEE's final rule implemented the inflation adjustments 
required by the FCPIA of 2015 through October 2017.
    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; available at https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf) 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 2019 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 section 4(b)(2)). This 
interpretation of the FCPIA 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 Adjustments

    In accordance with the FCPIA of 2015 and the guidance provided in 
OMB Memorandum M-19-04, 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 2017. The 
required annual civil penalty inflation adjustment promulgated through 
this rule accounts 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, 
BSEE divided the October 2018 CPI-U by the October 2017 CPI-U to 
calculate the multiplying factor. In this case, the October 2018 CPI-U 
(252.885) divided by the October 2017 CPI-U (246.663) is 1.02522. OMB 
Memorandum M-19-04 confirms that this is the proper multiplier. (OMB 
Memorandum M-19-04 at 1, n.4).
    The FCPIA of 2015 requires that BSEE adjust the OCSLA maximum daily 
civil penalty amount for inflation using the applicable 2019 multiplier 
(1.02522). Accordingly, BSEE multiplied the existing OCSLA maximum 
daily civil penalty amount ($43,576) by 1.02522 to arrive at the new 
maximum daily civil penalty amount ($44,674.99). 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 2019 is $44,675.
    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:

----------------------------------------------------------------------------------------------------------------
                                                                      Current                        Adjusted
            CFR citation              Description of the penalty      maximum       Multiplier        maximum
                                                                      penalty                         penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 250.1403....................  Failure to comply per-day,          $43,576         1.02522         $44,675
                                      per-violation..
----------------------------------------------------------------------------------------------------------------


[[Page 10991]]

III. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771)

    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-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 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.
    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 implementing the annual adjustment required by 
the FCPIA 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 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-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:
    (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 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)). BSEE 
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 in 30 CFR Part 250

    Administrative practice and procedure, Continental shelf, 
Environmental impact statements, Environmental protection, Government 
contracts, Investigations, Oil and gas exploration, Penalties, 
Pipelines, Continental Shelf--mineral resources, Continental Shelf--
rights-of-way, Reporting and recordkeeping requirements, Sulfur.

Joseph R. Balash,
Assistant Secretary--Land and Minerals Management, U.S. Department of 
the Interior.

    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.

[[Page 10992]]

PART 250--OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. The authority citation for 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 $44,675 per day per violation.

[FR Doc. 2019-05671 Filed 3-22-19; 8:45 am]
BILLING CODE 4310-VH-P