Civil Penalty Inflation Adjustment, 41801-41803 [2016-15157]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Safety and Environmental Enforcement

[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Rules and Regulations]
[Pages 41801-41803]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15157]



[[Page 41801]]

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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2016-0010; 16XE1700DX EX1SF0000.DAQ000 EEEE50000]
RIN 1014-AA30


Civil Penalty Inflation Adjustment

AGENCY: Bureau of Safety and Environmental Enforcement, Interior.

ACTION: Interim final rule.

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SUMMARY: This rule adjusts the level of the civil monetary penalty 
contained in the Bureau of Safety and Environmental Enforcement (BSEE) 
regulations pursuant to the Outer Continental Shelf Lands Act (OCSLA), 
the Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015, and Office of Management and Budget (OMB) guidance.

DATES: This rule is effective on July 28, 2016. Comments will be 
accepted until August 29, 2016.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Search for Docket No. [BSEE-2016-0010] and follow the instructions for 
submitting comments.
     Mail, Hand Delivery, or Courier: David Fish, Acting Chief 
Safety and Enforcement Division, Bureau of Safety and Environmental 
Enforcement, 1849 C Street NW., Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: David Fish, Acting Chief Safety and 
Enforcement Division, Bureau of Safety and Environmental Enforcement, 
(202) 208-3955 or by email: regs@bsee.gov.

SUPPLEMENTARY INFORMATION:

I. Background
II. Calculation of Adjustment
III. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866)
    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)
    L. Clarity of This Regulation
    M. Administrative Procedure Act

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 (CPI) to account for inflation. (43 U.S.C. Sec.  
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 4 years. Pursuant to OCSLA and the FCPIA 
of 1990, the OCSLA maximum civil penalty amount was last adjusted in 
2011. (76 FR 38294, June 30, 2011). In 2014 and 2015, BSEE performed 
computations to determine if it should increase the current OCSLA 
maximum civil penalty amount to account for inflation. After running 
the computations, BSEE determined that adjustments of the OCSLA maximum 
civil penalty amount were not warranted in 2014 and 2015.
    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 
701 of Public Law 114-74) (FCPIA of 2015). The FCPIA of 2015 requires 
Federal agencies to adjust the level of civil monetary penalties with 
an initial ``catch-up'' adjustment, if warranted, through rulemaking, 
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.
    Pursuant to OCSLA and the FCPIA of 2015, this rule adjusts the 
following maximum civil monetary penalty per day per violation:

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                                                                                                     Adjusted
           CFR citation                 Description of the     Current maximum     Multiplier        maximum
                                             penalty                penalty                          penalty
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30 CFR 250.1403...................  Failure to comply per day         $40,000          1.05042          $42,017
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II. Calculation of Adjustment

    The OMB issued guidance on calculating the civil monetary penalty 
adjustments pursuant to the FCPIA of 2015. (February 24, 2016, 
Memorandum for the Heads of Executive Departments and Agencies, from 
Shaun Donovan, Director, Office of Management and Budget, re: 
Implementation of the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015.) Under this guidance, the Department of the 
Interior has identified applicable civil monetary penalties and 
calculated the necessary adjustments. A civil monetary penalty is any 
assessment with a dollar amount that is levied for a violation of a 
Federal civil statute or regulation, and is assessed or enforceable 
through a civil action in Federal court or an administrative 
proceeding. A civil monetary penalty does not include a penalty levied 
for violation of a criminal statute, or fees for services, licenses, 
permits, or other regulatory review activities. The calculated 
adjustment is based on the percent change between the CPI for all Urban 
Consumers for the month of October in the year of the previous 
adjustment (or in the year of establishment, if no adjustment has been 
made) and the October 2015 CPI.
    For 2016, OCSLA and the FCPIA of 2015 required that BSEE adjust the 
OCSLA maximum civil penalty amount and provide for timing of the 
adjustment. In computing the new OCSLA maximum civil penalty amount, 
since BSEE last adjusted that amount in 2011, BSEE divided the October 
2015 CPI by the October 2011 CPI (237.8/226.4). This resulted in a 
multiplying factor of 1.05042. The existing maximum civil penalty 
amount ($40,000) was then multiplied by the multiplying factor (40,000 
x 1.05042 = 42,016.8). 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 $42,017. This new OCSLA maximum civil penalty amount 
does not exceed 150 percent of the OCSLA maximum civil penalty amount 
as of November 2, 2015, as stipulated by the FCPIA of 2015. Also, 
pursuant to the FCPIA of 2015, the increase in the OCSLA maximum civil 
penalty amount applies to civil penalties assessed after the date the 
increase takes effect, even when the associated violation(s) predate 
such increase.

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III. 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 in the OMB will review all significant rules. 
The Office of Information and Regulatory Affairs has determined that 
this rule is not significant.
    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. 
The executive order 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 emphasizes further 
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.

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 Federal Civil Penalties Adjustment 
Act of 2015 requires agencies to adjust civil penalties with an initial 
catch-up adjustment through an interim final rule. An interim final 
rule does not include first publishing a proposed rule. 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) Will 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.
    (3) 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 will not impose an unfunded mandate on State, local, or 
tribal governments, or the private sector of more than $100 million per 
year. The rule will 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 will not affect a taking of private property or otherwise 
have takings implications under E.O. 12630. A takings implication 
assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of E.O. 13132, this rule will not 
have sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement. 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, and have determined that it has no substantial direct 
effects on federally recognized Indian tribes and that, consultation 
under the Department of the Interior's tribal consultation policy 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.

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).) This rule is excluded from the requirement to prepare a 
detailed statement because it is a regulation of an administrative 
nature. 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. A Statement of Energy Effects is not required.

L. Clarity of This Regulation

    We are required by E.O.s 12866 (section 1(b)(12)), 12988 (section 
3(b)(1)(B)), and 13563 (section 1(a)), and by the Presidential 
Memorandum of June 1, 1998, to write all rules in plain language. This 
means that each rule we publish must:
    (1) Be logically organized;
    (2) Use the active voice to address readers directly;
    (3) Use common, everyday words and clear language rather than 
jargon;
    (4) Be divided into short sections and sentences; and
    (5) Use lists and tables wherever possible.
    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that you find unclear, which sections or sentences are 
too long, the sections where you feel lists or tables would be useful, 
etc.

M. Administrative Procedure Act

    The FCPIA of 2015 requires agencies to publish interim final rules 
by July 1, 2016, with an effective date for the adjusted penalties of 
no later than August 1, 2016. To comply with the FCPIA of 2015, we are 
issuing these

[[Page 41803]]

regulations as an interim final rule and are requesting comments post-
promulgation. The Administrative Procedure Act (APA) provides that, 
when an agency for good cause finds that ``notice and public procedure 
. . . are impracticable, unnecessary, or contrary to the public 
interest,'' the agency may issue a rule without providing notice and an 
opportunity for prior public comment (5 U.S.C. 553(b).) BSEE finds that 
there is good cause to promulgate this rule without first providing the 
public comment. It would not be possible to meet the deadlines imposed 
by the FCPIA of 2015 if we were to first publish a proposed rule, allow 
the public sufficient time to submit comments, analyze the comments, 
and publish a final rule. Also, BSEE is promulgating this interim final 
rule to implement the statutory directive in the FCPIA of 2015, which 
requires agencies to publish an interim final rule and to update the 
civil penalty amounts by applying a specified formula. BSEE has no 
discretion to vary the amount of the adjustment to reflect any views or 
suggestions provided by commenters, so notice and comment is 
unnecessary. Accordingly, it would serve no purpose to provide an 
opportunity for pre-promulgation public comment on this rule.
    Thus, BSEE finds pre-promulgation notice and public comment to be 
impracticable and unnecessary.

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, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulfur.

    For the reasons given in the preamble, the Bureau of Safety and 
Environmental Enforcement amends Title 30, Chapter II, Subchapter B, 
Part 250 Code of Federal Regulations as follows.

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

0
1. The authority citation for 30 CFR part 250 is revised to read as 
follows:

    Authority:  30 U.S.C. 1751, 31 U.S.C. 9701, 43 U.S.C. 1334 and 
Sec. 107, Pub. L. 114-74, 129 Stat. 599, unless otherwise noted.


0
2. Revise Sec.  250.1403 to read as follows:


Sec.  250.1403  What is the maximum civil penalty?

    The maximum civil penalty is $42,017 per day per violation.

Janice M. Schneider,
Assistant Secretary, Land and Minerals Management.
[FR Doc. 2016-15157 Filed 6-27-16; 8:45 am]
 BILLING CODE 4310-MR-P