[Federal Register Volume 87, Number 53 (Friday, March 18, 2022)]
[Rules and Regulations]
[Pages 15333-15335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05633]



[[Page 15333]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

30 CFR Parts 550 and 553

[Docket ID: BOEM-2022-0004]
RIN 1010-AE10


2022 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.

-----------------------------------------------------------------------

SUMMARY: This final rule implements the 2022 inflation adjustments to 
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), pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (FCPIAA Improvements Act) and relevant Office 
of Management and Budget (OMB) guidance. The 2022 adjustment multiplier 
of 1.06222 accounts for 1 year of inflation from October 2020 through 
October 2021.

DATES: This rule is effective on March 18, 2022.

FOR FURTHER INFORMATION CONTACT: Peter Meffert, Chief, Regulations, 
Bureau of Ocean Energy Management, at (703) 787-1610 or by email at 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Legal Authority
II. Background
III. Calculation of 2022 Adjustments
IV. Procedural Requirements
    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); 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 and 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. Id.
    The FCPIAA 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\ Public Law 114-
74, sec. 701(b)(1). The purposes behind 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).
---------------------------------------------------------------------------

    \1\ The FCPIAA Improvements Act amended the Federal Civil 
Penalties Inflation Adjustment Act of 1990. Public Law 101-410 
(codified at 28 U.S.C. 2461 note).
    \2\ Under the FCPIAA Improvements Act, Federal agencies are 
required to adjust their civil monetary penalties for inflation with 
an initial ``catch-up'' adjustment through an interim final 
rulemaking in 2016 and are required to make subsequent inflation 
adjustments not later than January 15 annually, beginning in 2017. 
Public Law 114-74, sec. 701(b)(1).
---------------------------------------------------------------------------

II. Background

    BOEM implemented the 2021 inflation adjustment for its civil 
monetary penalties through a final rule, ``2021 Civil Penalties 
Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer 
Continental Shelf,'' published in the Federal Register on April 15, 
2021, which accounted for inflation for the 12-month period between 
October 2019 and October 2020. 86 FR 19782 (April 15, 2021).
    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 https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf) explains 
agency responsibilities under the FCPIAA Improvements Act that include 
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.
    Pursuant to the FCPIAA Improvements Act, this final rule implements 
BOEM's 2022 inflation adjustments to OCSLA and OPA maximum daily civil 
monetary penalties. A proposed rule is unnecessary, as the FCPIAA 
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. FCPIAA Improvements Act, Public Law 114-74, sec. 
701(b)(1)(D); APA, 5 U.S.C. 553.\3\
---------------------------------------------------------------------------

    \3\ 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. FCPIAA Improvements Act, 
sec. 701(b)(1)(D); APA, 5 U.S.C. 553. OMB confirmed this 
interpretation of the FCPIAA Improvements Act. OMB 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.'').
---------------------------------------------------------------------------

III. Calculation of 2022 Adjustments

    In accordance with the FCPIAA Improvements Act, BOEM determined 
that OCSLA and OPA maximum daily civil monetary penalties require 
annual inflation adjustments and is issuing this final rule adjusting 
those penalty amounts for inflation through October 2021. 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-22-07, the 2022 inflation adjustment 
multiplier can be calculated by dividing the October 2021 CPI-U by the 
October 2020 CPI-U. In this case, October 2021 CPI-U (276.589)/October 
2020 CPI-U (260.388) = 1.06222.
    For 2022, BOEM multiplied the current OCSLA maximum daily civil 
monetary penalty of $46,000 by the multiplier 1.06222 to equal 
$48,862.12. The FCPIAA Improvements Act requires that the resulting 
amount then be rounded to the nearest dollar. Accordingly, the 2022 
adjusted OCSLA maximum daily civil monetary penalty is $48,862.
    For 2022, BOEM multiplied the current OPA maximum daily civil 
monetary penalty amount of $48,762 by the multiplier 1.06222 to equal 
$51,795.97. The FCPIAA Improvements

[[Page 15334]]

Act requires that the resulting amount then be rounded to the nearest 
dollar. Accordingly, the 2022 adjusted OPA maximum daily civil monetary 
penalty is $51,796.
    The adjusted penalty amounts take effect immediately upon 
publication of this rule. Under the FCPIAA 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 2022 maximum daily civil monetary 
penalties for each OCSLA and OPA violation:

----------------------------------------------------------------------------------------------------------------
                                                                      Current                        Adjusted
             CFR citation                  Description of the         maximum       Multiplier        maximum
                                                 penalty              penalty                         penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 550.1403 (OCSLA)...............  Failure to comply per            $46,000         1.06222         $48,862
                                         day per violation.
30 CFR 553.51(a) (OPA)................  Failure to comply per             48,762         1.06222          51,796
                                         day per violation.
----------------------------------------------------------------------------------------------------------------

IV. Procedural Requirement

A. Statutes

1. 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 (NEPA, 42 U.S.C. 4321 et 
seq.) is not required because, as a regulation of an administrative and 
fiscal nature, this rule is covered by a categorical exclusion. See 43 
CFR 46.210(i). BOEM also has 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.
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. 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 
Improvements Act expressly exempts these annual inflation adjustments 
from the requirement to publish a proposed rule for notice and comment. 
FCPIAA Improvements Act, Public Law 114-74, sec. 701(b)(1)(D); OMB M-
22-07 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, or on the private sector, of more than $164 million 
per 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. 1501 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,\4\ this rule is not a major rule, as defined by that 
act.\5\
---------------------------------------------------------------------------

    \4\ 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 https://www.whitehouse.gov/wp-content/uploads/2019/04/M-19-14.pdf; OMB Memorandum M-22-07 at 3.
    \5\ 5 U.S.C. 804(2).
---------------------------------------------------------------------------

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); Improving Regulation 
and Regulatory Review (E.O. 13563)
    E.O. 12866 provides that the Office of Information and Regulatory 
Affairs (OIRA) will review all significant rules. OIRA has 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 $100 million.\6\ This rule meets those conditions and, thus, 
is not a significant rule.
---------------------------------------------------------------------------

    \6\ 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 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 not using science in this 
rulemaking, as Congress directed agencies to adjust the maximum daily 
civil monetary penalty amounts using a particular equation, and 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 FCPIAA 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

[[Page 15335]]

    (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 level 
of civil monetary penalties that BOEM may impose on its lessees 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 their 
right to self-governance and Tribal sovereignty. BOEM has 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 and determined that this rule 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 and BOEM's Tribal and ANCSA 
consultation 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 
in E.O. 13211. Therefore, a statement of energy effects is not 
required.
    This action by the Principal Deputy Assistant Secretary is taken 
herein pursuant to an existing delegation of authority.

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.

Laura Daniel-Davis,
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 $48,862 per day per violation.

PART 553--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE 
FACILITIES

0
3. The authority citation for part 553 is revised to read as follows:

    Authority: 33 U.S.C. 2704, 2716, 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 $51,796 per 
COF per day of violation (that is, each day a COF is operated without 
acceptable evidence of OSFR).
* * * * *
[FR Doc. 2022-05633 Filed 3-17-22; 8:45 am]
BILLING CODE 4310-MR-P