Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Civil Penalties Inflation Adjustments, 10709-10711 [2017-02983]
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Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Parts 550 and 553
[Docket ID: BOEM–2016–0055;
MMAA104000]
RIN 1010–AD95
Oil and Gas and Sulphur Operations in
the Outer Continental Shelf—Civil
Penalties Inflation Adjustments
Bureau of Ocean Energy
Management, Interior.
ACTION: Final rule.
AGENCY:
This rule adopts and finalizes
the interim final rule which adjusted the
level of the maximum civil monetary
penalties contained in the Bureau of
Ocean Energy Management (BOEM)
regulations pursuant to the Outer
Continental Shelf Lands Act (OCSLA),
the Oil Pollution Act of 1990 (OPA), the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (FCPIA of 2015), and Office of
Management and Budget (OMB)
guidance. This rule also implements the
2017 adjustment of the level of the
maximum civil monetary penalties
contained in the BOEM regulations
pursuant to OCSLA, OPA, FCPIA of
2015 and OMB guidance. The 2017
adjustment of 1.01636 percent accounts
for one year of inflation spanning from
October 2015 to October 2016.
DATES: This rule is effective on February
15, 2017.
FOR FURTHER INFORMATION CONTACT:
Robert Sebastian, Office of Policy,
Regulation and Analysis, Bureau of
Ocean Energy Management, at (202)
513–0507 or by email at
robert.sebastian@boem.gov.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
I. Background
II. 2016 Adjustments and Interim Final Rule
III. Calculation of 2017 Adjustments
IV. Procedural Requirements
A. Regulatory Planning and Review (E.O.
12866 and 13563)
B. Regulatory Flexibility Act
C. Small Business Regulatory Enforcement
Fairness Act
D. Unfunded Mandates Reform Act
E. Takings (E.O. 12630)
F. Federalism (E.O. 13132)
G. Civil Justice Reform (E.O. 12988)
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
The Outer Continental Shelf Lands
Act (OCSLA) directs the Secretary of the
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Interior to adjust the OCSLA maximum
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
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 104–
410) (FCPIA of 1990) required that all
civil monetary penalties, including the
OCSLA maximum civil penalty amount,
be adjusted at least once every four
years.
Similarly, the Oil Pollution Act of
1990 (OPA) authorizes the Secretary of
the Interior to impose civil penalties for
failure to comply with financial
responsibility regulations that
implement OPA. The FCPIA of 1990
required that all civil monetary
penalties, including the OPA maximum
civil penalty amount, be adjusted at
least once every four years.
The FCPIA of 2015 requires Federal
agencies to promulgate annual inflation
adjustments for civil monetary
penalties. Specifically, agencies must
adjust the level of civil monetary
penalties with an initial ‘‘catch-up’’
adjustment through an interim final
rulemaking (IFR) in 2016, and make
subsequent annual adjustments for
inflation, beginning in 2017. Agencies
are required to publish the annual
inflation adjustments in the Federal
Register by no later than January 15,
2017, and by no later than January 15
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.
OMB Memorandum M–17–11
(Implementation of the 2017 annual
adjustment pursuant to the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015), which can
be found at https://www.whitehouse.
gov/sites/default/files/omb/memoranda/
2017/m-17-11_0.pdf, explains agency
responsibilities for: Identifying
applicable penalties and performing the
annual adjustment; publishing in the
Federal Register; finalizing 2016
interim final rules; applying adjusted
penalty levels; and performing agency
oversight of inflation adjustments.
BOEM is promulgating this 2017
inflation adjustment for civil penalties
as a final rule pursuant to the provisions
of the FCPIA of 2015 and OMB
guidance. A proposed rule is not
required because the FCPIA of 2015
states that agencies shall adjust civil
monetary penalties ‘‘notwithstanding
Section 553 of the Administrative
Procedure Act.’’ (FCPIA of 2015 at sec.
4(b)(2)). Accordingly, Congress
expressly exempted the annual inflation
adjustments implemented pursuant to
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10709
the FCPIA of 2015 from the prepromulgation notice and comment
requirements of the Administrative
Procedure Act (APA), allowing them to
be published as a final rule. This
interpretation of the statute is confirmed
by OMB Memorandum M–17–11. (OMB
Memorandum M–17–11 at 3 (‘‘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.’’)).
II. 2016 Adjustments and Interim Final
Rule
BOEM last adjusted the level of civil
monetary penalties in BOEM regulations
through an interim final rule (IFR), RIN
1010–AD95 [81 FR 43066], which was
published on July 1, 2016, and became
effective on August 1, 2016. The IFR
included catch-up adjustments pursuant
to the requirements of the FCPIA of
2015 and OMB guidance through
October 2015. Although the IFR was
effective as of August 1, 2016, the IFR
included a request for public comments.
The public comment period closed on
August 30, 2016. BOEM received no
comments on the IFR and is therefore
finalizing that rulemaking as originally
implemented by the IFR. OMB
Memorandum M–17–11 authorizes
agencies to finalize their 2016 inflation
adjustment IFR in the same rulemaking
as the 2017 adjustments.
III. Calculation of 2017 Adjustments
Under the FCPIA of 2015 and the
guidance provided in OMB
Memorandum M–17–11, BOEM has
identified applicable civil monetary
penalties and calculated the necessary
inflation adjustments. The 2016
adjustments were based upon the
percent change between the Consumer
Price Index for all Urban Consumers
(CPI–U) for the month of October in the
calendar year of the previous
adjustment (or in the year of
establishment, if subsequent
adjustments were made pursuant to the
FCPIA of 1990) and the October 2015
CPI–U. The 2017 adjustments are based
on the percent change between the
October CPI–U preceding the date of the
adjustment, and the prior year’s October
CPI–U. Consistent with the OMB
Memorandum M–17–11, BOEM divided
the October 2016 CPI–U by the October
2015 CPI–U (241.729/237.838). This
resulted in a multiplying factor of
1.01636.
For 2017, OCSLA and the FCPIA of
2015 require that BOEM adjust the
OCSLA maximum civil penalty amount.
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Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations
To accomplish this, BOEM multiplied
the existing OCSLA maximum civil
penalty amount ($42,017) by the
multiplying factor ($42,017 × 1.01636 =
$42,704.40). The FCPIA of 2015 requires
that the OCSLA maximum civil penalty
amount be rounded to the nearest $1.00
at the end of the calculation process.
Accordingly, the adjusted OCSLA
maximum civil penalty is $42,704.
For 2017, the FCPIA of 2015 requires
that BOEM adjust the OPA maximum
civil penalty amount. The statutory OPA
maximum civil penalty amount
($44,539) was multiplied by the
multiplying factor (44,539 × 1.01636 =
$45,267.66). The FCPIA of 2015 requires
that the OPA maximum civil penalty
amount be rounded to the nearest $1.00
at the end of the calculation process.
Accordingly, the adjusted OPA
maximum civil penalty is $45,268.
The adjusted penalty levels shall take
effect immediately upon the effective
Current
maximum
penalty
CFR citation
Description of the penalty
30 CFR 550.1403 ...........................................
30 CFR 553.51(a) ...........................................
Failure to comply per day per violation .........
Failure to comply per day per violation .........
A. Regulatory Planning and Review
(E.O. 12866 and 13563)
Executive Order (E.O.) 12866 provides
that the Office of Information and
Regulatory Affairs (OIRA) in the Office
of Management and Budget (OMB) will
review all significant rules. OIRA has
determined that this rule is not
significant. (See OMB Memorandum M–
17–11 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.
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
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 FCPIA of 2015 expressly
exempts annual inflation adjustments
from the requirement to publish a
proposed rule for notice and comment.
(See FCPIA of 2015 at § 4(b)(2); OMB
Memorandum M–17–11 at 3). Thus, the
RFA does not apply to this rulemaking.
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16:57 Feb 14, 2017
Jkt 241001
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. 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. Therefore, a
federalism summary impact statement is
not required.
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$42,017
44,539
Multiplier
1.01636
1.01636
Adjusted
maximum
penalty
$42,704
45,268
G. Civil Justice Reform (E.O. 12988)
C. Small Business Regulatory
Enforcement Fairness Act
IV. Procedural Requirements
date of the adjustment. Pursuant to the
FCPIA of 2015, the increase in the
OCSLA and OPA maximum civil
penalty amounts apply to civil penalties
assessed after the date the increase takes
effect, even if the associated violation(s)
predates such increase. Consistent with
the provisions of the OCSLA, OPA and
the FCPIA of 2015, this rule adjusts the
following maximum civil monetary
penalties per day per violation:
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-togovernment relationship with Indian
tribes through a commitment to
consultation with Indian tribes and
recognition of their right to selfgovernance 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 Federallyrecognized 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. We may
not conduct or sponsor, and you are not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
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Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations
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 the rule
is covered by a categorical exclusion
(see 43 CFR 46.210(i)). As a regulation
of an administrative nature, this rule is
covered by a categorical exclusion (see
43 CFR 46.210(i)). Therefore, a detailed
statement under NEPA is not required.
We have also determined that the rule
does not involve any of the
extraordinary circumstances listed in 43
CFR 46.215 that would require further
analysis under NEPA.
■
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.
§ 553.51 What are the penalties for not
complying with this part?
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, Rightsof-way, Reporting and recordkeeping
requirements, Sulphur.
30 CFR Part 553
Administrative practice and
procedure, Continental shelf, Financial
responsibility, Outer continental shelf,
Oil and gas exploration, Oil pollution,
Liability, Limit of liability, Penalties,
Pipelines, Reporting and recordkeeping
requirements, Rights-of-way, Surety
bonds, Treasury securities.
Dated: February 3, 2017.
Richard T. Cardinale,
Acting Assistant Secretary—Land and
Minerals Management.
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PART 550—OIL AND GAS AND
SULPHUR OPERATIONS IN THE
OUTER CONTINENTAL SHELF
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.
16:57 Feb 14, 2017
Jkt 241001
§ 550.1403
penalty?
What is the maximum civil
The maximum civil penalty is
$42,704 per day per violation.
PART 553—OIL SPILL FINANCIAL
RESPONSIBILITY FOR OFFSHORE
FACILITIES
3. The authority citation for part 553
continues to read as follows:
■
Authority: 33 U.S.C. 2704, 2716; E.O.
12777, as amended.
4. In § 553.51, revise paragraph (a) to
read as follows:
■
(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
$45,268 per COF per day of violation
(that is, each day a COF is operated
without acceptable evidence of OSFR).
*
*
*
*
*
[FR Doc. 2017–02983 Filed 2–14–17; 8:45 am]
BILLING CODE 4310–MR–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 60
[EPA–HQ–OAR–2016–0382; FRL–9959–43–
OAR]
RIN 2060–AT15
Revisions to Procedure 2—Quality
Assurance Requirements for
Particulate Matter Continuous
Emission Monitoring Systems at
Stationary Sources
Office of Air Quality Planning and
Standards, Air Quality Assessment
Division, Measurement Technology
Group (E143–02), Research Triangle
Park, NC 27711; telephone number:
(919) 541–1158; fax number: (919) 541–
0516; email address: garnett.kim@
epa.gov.
The direct
final rule, ‘‘Revisions to Procedure 2—
Quality Assurance Requirements for
Particulate Matter Continuous Emission
Monitoring Systems at Stationary
Sources,’’ published on November 21,
2016, at 81 FR 83160. We stated in that
direct final rule that if we received
adverse comment by December 21,
2016, the direct final rule would not
take effect and we would publish a
timely withdrawal in the Federal
Register. We subsequently received
adverse comment on that direct final
rule requesting that the EPA delete or
reserve section(s) in the rule that
conflict with the intended revisions. We
will address the comment in a
subsequent final action, which will be
based on the parallel proposed rule also
published on November 21, 2016, at 81
FR 83189. As stated in the direct final
rule and the parallel proposed rule, we
will not institute a second comment
period on this action.
SUPPLEMENTARY INFORMATION:
List of Subjects in 40 CFR Part 60
Environmental protection,
Administrative practice and procedure,
Air pollution control, Continuous
emission monitoring systems,
Particulate matter, Procedures.
Dated: February 8, 2017.
Sarah Dunham,
Acting Assistant Administrator.
[FR Doc. 2017–03063 Filed 2–14–17; 8:45 am]
BILLING CODE 6560–50–P
Environmental Protection
Agency (EPA).
ACTION: Withdrawal of direct final rule.
ENVIRONMENTAL PROTECTION
AGENCY
Because the Environmental
Protection Agency (EPA) received an
adverse comment, we are withdrawing
the direct final rule titled, ‘‘Revisions to
Procedure 2—Quality Assurance
Requirements for Particulate Matter
Continuous Emission Monitoring
Systems at Stationary Sources.’’
DATES: Effective February 15, 2017, the
EPA withdraws the direct final rule
published at 81 FR 83160, on November
21, 2016.
FOR FURTHER INFORMATION CONTACT:
Questions concerning this action should
be addressed to Ms. Kimberly Garnett,
U.S. Environmental Protection Agency,
[FRL–9959–26–OAR]
AGENCY:
SUMMARY:
For the reasons stated in the
preamble, the BOEM adopts as final the
interim final rule amending 30 CFR
parts 550 and 553, which was published
at 81 FR 43066 on July 1, 2016, as a final
rule with the following changes:
VerDate Sep<11>2014
2. Revise § 550.1403 to read as
follows:
10711
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40 CFR Part 97
Allocations of Cross-State Air
Pollution Rule Allowances From New
Unit Set-Asides for the 2016
Compliance Year
Environmental Protection
Agency (EPA).
ACTION: Notice of data availability
(NODA).
AGENCY:
The Environmental Protection
Agency (EPA) is providing notice of
emission allowance allocations to
certain units under the new unit setaside (NUSA) provisions of the Cross-
SUMMARY:
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]]>Agencies
[Federal Register Volume 82, Number 30 (Wednesday, February 15, 2017)]
[Rules and Regulations]
[Pages 10709-10711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02983]
[[Page 10709]]
=======================================================================
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Parts 550 and 553
[Docket ID: BOEM-2016-0055; MMAA104000]
RIN 1010-AD95
Oil and Gas and Sulphur Operations in the Outer Continental
Shelf--Civil Penalties Inflation Adjustments
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule adopts and finalizes the interim final rule which
adjusted the level of the maximum civil monetary penalties contained in
the Bureau of Ocean Energy Management (BOEM) regulations pursuant to
the Outer Continental Shelf Lands Act (OCSLA), the Oil Pollution Act of
1990 (OPA), the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (FCPIA of 2015), and Office of Management and
Budget (OMB) guidance. This rule also implements the 2017 adjustment of
the level of the maximum civil monetary penalties contained in the BOEM
regulations pursuant to OCSLA, OPA, FCPIA of 2015 and OMB guidance. The
2017 adjustment of 1.01636 percent accounts for one year of inflation
spanning from October 2015 to October 2016.
DATES: This rule is effective on February 15, 2017.
FOR FURTHER INFORMATION CONTACT: Robert Sebastian, Office of Policy,
Regulation and Analysis, Bureau of Ocean Energy Management, at (202)
513-0507 or by email at robert.sebastian@boem.gov.
SUPPLEMENTARY INFORMATION:
I. Background
II. 2016 Adjustments and Interim Final Rule
III. Calculation of 2017 Adjustments
IV. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866 and 13563)
B. Regulatory Flexibility Act
C. Small Business Regulatory Enforcement Fairness Act
D. Unfunded Mandates Reform Act
E. Takings (E.O. 12630)
F. Federalism (E.O. 13132)
G. Civil Justice Reform (E.O. 12988)
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
The Outer Continental Shelf Lands Act (OCSLA) directs the Secretary
of the Interior to adjust the OCSLA maximum 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
Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 104-
410) (FCPIA of 1990) required that all civil monetary penalties,
including the OCSLA maximum civil penalty amount, be adjusted at least
once every four years.
Similarly, the Oil Pollution Act of 1990 (OPA) authorizes the
Secretary of the Interior to impose civil penalties for failure to
comply with financial responsibility regulations that implement OPA.
The FCPIA of 1990 required that all civil monetary penalties, including
the OPA maximum civil penalty amount, be adjusted at least once every
four years.
The FCPIA of 2015 requires Federal agencies to promulgate annual
inflation adjustments for civil monetary penalties. Specifically,
agencies must adjust the level of civil monetary penalties with an
initial ``catch-up'' adjustment through an interim final rulemaking
(IFR) in 2016, and make subsequent annual adjustments for inflation,
beginning in 2017. Agencies are required to publish the annual
inflation adjustments in the Federal Register by no later than January
15, 2017, and by no later than January 15 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.
OMB Memorandum M-17-11 (Implementation of the 2017 annual
adjustment pursuant to the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015), which can be found at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf, explains agency responsibilities for: Identifying applicable
penalties and performing the annual adjustment; publishing in the
Federal Register; finalizing 2016 interim final rules; applying
adjusted penalty levels; and performing agency oversight of inflation
adjustments.
BOEM is promulgating this 2017 inflation adjustment for civil
penalties as a final rule pursuant to the provisions of the FCPIA of
2015 and OMB guidance. A proposed rule is not required because the
FCPIA of 2015 states that agencies shall adjust civil monetary
penalties ``notwithstanding Section 553 of the Administrative Procedure
Act.'' (FCPIA of 2015 at sec. 4(b)(2)). Accordingly, Congress 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 (APA), allowing them to be
published as a final rule. This interpretation of the statute is
confirmed by OMB Memorandum M-17-11. (OMB Memorandum M-17-11 at 3
(``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.'')).
II. 2016 Adjustments and Interim Final Rule
BOEM last adjusted the level of civil monetary penalties in BOEM
regulations through an interim final rule (IFR), RIN 1010-AD95 [81 FR
43066], which was published on July 1, 2016, and became effective on
August 1, 2016. The IFR included catch-up adjustments pursuant to the
requirements of the FCPIA of 2015 and OMB guidance through October
2015. Although the IFR was effective as of August 1, 2016, the IFR
included a request for public comments. The public comment period
closed on August 30, 2016. BOEM received no comments on the IFR and is
therefore finalizing that rulemaking as originally implemented by the
IFR. OMB Memorandum M-17-11 authorizes agencies to finalize their 2016
inflation adjustment IFR in the same rulemaking as the 2017
adjustments.
III. Calculation of 2017 Adjustments
Under the FCPIA of 2015 and the guidance provided in OMB Memorandum
M-17-11, BOEM has identified applicable civil monetary penalties and
calculated the necessary inflation adjustments. The 2016 adjustments
were based upon the percent change between the Consumer Price Index for
all Urban Consumers (CPI-U) for the month of October in the calendar
year of the previous adjustment (or in the year of establishment, if
subsequent adjustments were made pursuant to the FCPIA of 1990) and the
October 2015 CPI-U. The 2017 adjustments are based on the percent
change between the October CPI-U preceding the date of the adjustment,
and the prior year's October CPI-U. Consistent with the OMB Memorandum
M-17-11, BOEM divided the October 2016 CPI-U by the October 2015 CPI-U
(241.729/237.838). This resulted in a multiplying factor of 1.01636.
For 2017, OCSLA and the FCPIA of 2015 require that BOEM adjust the
OCSLA maximum civil penalty amount.
[[Page 10710]]
To accomplish this, BOEM multiplied the existing OCSLA maximum civil
penalty amount ($42,017) by the multiplying factor ($42,017 x 1.01636 =
$42,704.40). The FCPIA of 2015 requires that the OCSLA maximum civil
penalty amount be rounded to the nearest $1.00 at the end of the
calculation process. Accordingly, the adjusted OCSLA maximum civil
penalty is $42,704.
For 2017, the FCPIA of 2015 requires that BOEM adjust the OPA
maximum civil penalty amount. The statutory OPA maximum civil penalty
amount ($44,539) was multiplied by the multiplying factor (44,539 x
1.01636 = $45,267.66). The FCPIA of 2015 requires that the OPA maximum
civil penalty amount be rounded to the nearest $1.00 at the end of the
calculation process. Accordingly, the adjusted OPA maximum civil
penalty is $45,268.
The adjusted penalty levels shall take effect immediately upon the
effective date of the adjustment. Pursuant to the FCPIA of 2015, the
increase in the OCSLA and OPA maximum civil penalty amounts apply to
civil penalties assessed after the date the increase takes effect, even
if the associated violation(s) predates such increase. Consistent with
the provisions of the OCSLA, OPA and the FCPIA of 2015, this rule
adjusts the following maximum civil monetary penalties per day per
violation:
----------------------------------------------------------------------------------------------------------------
Current Adjusted
CFR citation Description of the maximum Multiplier maximum
penalty penalty penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 550.1403....................... Failure to comply per $42,017 1.01636 $42,704
day per violation.
30 CFR 553.51(a)...................... Failure to comply per 44,539 1.01636 45,268
day per violation.
----------------------------------------------------------------------------------------------------------------
IV. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866 and 13563)
Executive Order (E.O.) 12866 provides that the Office of
Information and Regulatory Affairs (OIRA) in the Office of Management
and Budget (OMB) will review all significant rules. OIRA has determined
that this rule is not significant. (See OMB Memorandum M-17-11 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.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) 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 FCPIA of 2015 expressly exempts 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-17-11 at 3). 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. 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. 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. We may not conduct or sponsor, and you
are not required to respond to, a collection of information unless it
displays a currently valid OMB control number.
[[Page 10711]]
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 the rule is covered by a categorical exclusion (see 43
CFR 46.210(i)). As a regulation of an administrative nature, this rule
is covered by a categorical exclusion (see 43 CFR 46.210(i)).
Therefore, a detailed statement under NEPA is not required. We have
also determined that the rule does not involve any of the extraordinary
circumstances listed in 43 CFR 46.215 that would require further
analysis under NEPA.
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, Reporting and
recordkeeping requirements, Sulphur.
30 CFR Part 553
Administrative practice and procedure, Continental shelf, Financial
responsibility, Outer continental shelf, Oil and gas exploration, Oil
pollution, Liability, Limit of liability, Penalties, Pipelines,
Reporting and recordkeeping requirements, Rights-of-way, Surety bonds,
Treasury securities.
Dated: February 3, 2017.
Richard T. Cardinale,
Acting Assistant Secretary--Land and Minerals Management.
For the reasons stated in the preamble, the BOEM adopts as final
the interim final rule amending 30 CFR parts 550 and 553, which was
published at 81 FR 43066 on July 1, 2016, as a final rule with the
following changes:
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 $42,704 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 $45,268 per
COF per day of violation (that is, each day a COF is operated without
acceptable evidence of OSFR).
* * * * *
[FR Doc. 2017-02983 Filed 2-14-17; 8:45 am]
BILLING CODE 4310-MR-P
