Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Civil Penalties Inflation Adjustments, 43066-43069 [2016-15607]
Download as PDF
<![CDATA[
43066
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
systems. The office’s mission is to help
ensure that the justice system is
efficient, fair, and accessible to all,
irrespective of an individual’s wealth
and status. Its staff works within the
Department of Justice, across federal
agencies, and with state, local, and
tribal justice system stakeholders to
increase access to counsel and legal
assistance and to improve the justice
system for people who are unable to
afford lawyers. This rule reflects the
establishment of the Office for Access to
Justice as a distinct component of the
Department of Justice, and sets forth the
office’s organization, mission, and
functions.
Administrative Procedure Act
This rule is a rule of agency
organization and procedure, and relates
to the internal management of the
Department of Justice. It is therefore
exempt from the requirements of notice
and comment and a delayed effective
date. 5 U.S.C. 553(b), (d).
asabaliauskas on DSK3SPTVN1PROD with RULES
Regulatory Flexibility Act
The Attorney General, in accordance
with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed this rule
and by approving it certifies that this
rule will not have a significant
economic impact on a substantial
number of small entities because it
pertains to personnel and administrative
matters affecting the Department.
Further, a Regulatory Flexibility
Analysis was not required to be
prepared for this final rule since the
Department was not required to publish
a general notice of proposed rulemaking
for this matter. See 5 U.S.C. 604(a).
Executive Orders 12866 and 13563:
Regulatory Review
This action has been drafted and
reviewed in accordance with Executive
Order 12866, ‘‘Regulatory Planning and
Review,’’ section 1(b), The Principles of
Regulation, and in accordance with
Executive Order 13563, ‘‘Improving
Regulations and Regulatory Review,’’
section 1(b), General Principles of
Regulation. This action is limited to
agency organization, management, and
personnel matters and therefore is not a
‘‘regulation’’ or ‘‘rule’’ under Executive
Order 12866. Id. § 3(d)(3). Accordingly,
this action has not been reviewed by the
Office of Management and Budget.
Executive Order 13132: Federalism
This rule will not have substantial
direct effects on the States, on the
relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
VerDate Sep<11>2014
16:44 Jun 30, 2016
Jkt 238001
levels of government. Therefore, in
accordance with section 6 of Executive
Order 13132, it is determined that this
rule does not have sufficient federalism
implications to warrant the preparation
of a federalism summary impact
statement.
Executive Order 12988: Civil Justice
Reform
This rule meets the applicable
standards set forth in sections 3(a) and
3(b)(2) of Executive Order 12988.
Unfunded Mandates Reform Act of
1955
This rule will not result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100,000,000 or more
in any one year, and it does not
establish requirements that might
significantly or uniquely affect small
governments. Therefore, no actions were
deemed necessary under the provisions
of the Unfunded Mandates Reform Act
of 1995.
Congressional Review Act
This action pertains to agency
management, personnel, and
organization and does not substantially
affect the rights or obligations of nonagency parties and, accordingly, is not
a ‘‘rule’’ as that term is used by the
Congressional Review Act (Subtitle E of
the Small Business Regulatory
Enforcement Fairness Act of 1996
(SBREFA)). See 5 U.S.C. 804(3).
Therefore, the reporting requirement of
5 U.S.C. 801 does not apply.
Authority: 5 U.S.C. 301; 28 U.S.C. 509,
510, 515–519.
2. In § 0.1, under the heading
‘‘Offices’’, add the title ‘‘Office for
Access to Justice’’ to the end of the list.
■ 3. Add Subpart F–1 to read as follows:
■
Subpart F–1—Office for Access to
Justice
§ 0.33
Office for Access to Justice.
The Office for Access to Justice shall
be headed by a Director appointed by
the Attorney General. The principal
responsibilities of the Office shall be to
plan, develop, and coordinate the
implementation of access to justice
policy initiatives of high priority to the
Department and the executive branch,
including in the areas of criminal
indigent defense and civil legal aid. In
addition, the Director shall:
(a) Promote uniformity of Department
of Justice and government-wide policies
and litigation positions relating to equal
access to justice;
(b) Examine proposed legislation,
proposed rules, and other policy
proposals to ensure that access to justice
principles are properly considered in
the development of policy; and
(c) Perform such other duties and
functions as may be authorized by law
or directed by the Attorney General,
Deputy Attorney General, or Associate
Attorney General.
Dated: June 24, 2016.
Loretta E. Lynch,
Attorney General.
[FR Doc. 2016–15574 Filed 6–30–16; 8:45 am]
BILLING CODE 4410–PN–P
Plain Language Instructions
We try to write clearly. Suggestions
about how to improve the clarity of this
rule may be submitted in writing to Lisa
Foster, Director, Office for Access to
Justice.
DEPARTMENT OF THE INTERIOR
List of Subjects in 28 CFR Part 0
[Docket ID: BOEM–2016–0055;
MMAA104000]
Authority delegation (Government
agencies), Government employees,
Organization and functions
(Government agencies), Privacy,
Reporting and recordkeeping
requirements, Whistleblowing.
Accordingly, by virtue of the
authority vested in me as Attorney
General, including 5 U.S.C. 301 and 28
U.S.C. 509, 510, part 0 of title 28 of the
Code of Federal Regulations is amended
as follows:
PART 0—ORGANIZATION OF THE
DEPARTMENT OF JUSTICE
1. The authority citation for part 0
continues to read as follows:
■
PO 00000
Frm 00084
Fmt 4700
Sfmt 4700
Bureau of Ocean Energy Management
30 CFR Parts 550 and 553
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: Interim final rule.
AGENCY:
This rule adjusts the level of
civil monetary penalties contained in
the Bureau of Ocean Energy
Management (BOEM) regulations
pursuant to the Outer Continental Shelf
Lands Act, the Oil Pollution Act of
1990, the Federal Civil Penalties
Inflation Adjustment Act Improvements
SUMMARY:
E:\FR\FM\01JYR1.SGM
01JYR1
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
Act of 2015 and Office of Management
and Budget guidance.
DATES: This rule is effective on August
1, 2016. Comments will be accepted
until August 30, 2016.
ADDRESSES: Address all comments
regarding this proposed rule to BOEM
by any of the following methods:
• Federal Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• U.S. Postal Service or Other Mail
Delivery Service: Address to Robert
Sebastian, Office of Policy, Regulation
and Analysis (OPRA), BOEM,
Department of the Interior, 1849 C Street
NW., Mailstop 5238, Washington, DC
20240.
• Hand delivery to Office of Policy,
Regulation and Analysis, BOEM,
Department of the Interior, at 1849 C
Street NW., Room 5249, Washington,
DC 20240.
Please include your name, return
address, and phone number and/or
email address, so we can contact you if
we have questions regarding your
submission.
FOR FURTHER INFORMATION CONTACT:
Robert Sebastian, Office of Policy,
Regulation and Analysis at (504) 736–
2761 or email at robert.sebastian@
boem.gov.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of Adjustments
III. 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)
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 to account for
inflation. 43 U.S.C. 1350(b)(1). The
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Public Law
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. Pursuant to OCSLA and the
FCPIA of 1990, the OCSLA maximum
civil penalty amount was last adjusted
in 2011. 76 FR 38,294 (June 30, 2011).
After running the computations, the
Department of the Interior determined
that adjustments of the OCSLA
maximum civil penalty amount were
not warranted in 2014 and 2015.
Similarly, the Oil Pollution Act (OPA)
of 1990 authorizes the Secretary of the
Description of the penalty
30 CFR 550.1403 ...........................................
Failure to comply with regulatory and contractual obligations.
Failure to comply with financial responsibility
requirements.
30 CFR 553.51(a) ...........................................
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. Pursuant to
the FCPIA of 1990, the OPA maximum
civil penalty amount was adjusted for
the first time in 2007, 72 FR 8,897 (Feb.
28, 2007), and again in 2011, 76 FR
38,294 (June 30, 2011). After running
the computations, the Department of the
Interior determined that adjustments of
the OPA 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),
which further amended the FCPIA of
1990. 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 penalties per
day per violation:
Current
maximum
penalty
CFR citation
43067
Multiplier
Adjusted
maximum
penalty
$40,000
1.05042
$42,017
* 25,000
1.78156
44,539
* The current OPA maximum civil penalty amount provided in 30 CFR 553.51(a) is $30,000. However, the FCPIA of 2015 instructs BOEM to
use the OPA maximum civil penalty amount as last adjusted by a provision of law other than the FCPIA of 1990 when calculating the 2016 civil
penalty adjustment. Therefore, BOEM used the OPA maximum civil penalty amount of $25,000, which was established by OPA in 1990, when
calculating the 2016 civil penalty adjustment.
asabaliauskas on DSK3SPTVN1PROD with RULES
II. Calculation of Adjustments
The Office of Management and Budget
(OMB) issued guidance on calculating
the civil monetary penalty adjustments
pursuant to the FCPIA of 2015. See
February 24, 2016, Memorandum for the
Heads of Executive Departments and
Agencies, from Shaun Donovan,
Director, Office of Management and
Budget, subject: 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
VerDate Sep<11>2014
16:44 Jun 30, 2016
Jkt 238001
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. The calculated
adjustment for 2016 is based on the
percent change between the Consumer
Price Index for all Urban Consumers
PO 00000
Frm 00085
Fmt 4700
Sfmt 4700
(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.
For 2016, OCSLA and the FCPIA of
2015 require that BOEM adjust the
OCSLA maximum civil penalty amount
and provide the adjustment timing. In
computing the new OCSLA maximum
civil penalty amount, since the amount
was last adjusted in 2011, BOEM
divided the October 2015 CPI–U by the
E:\FR\FM\01JYR1.SGM
01JYR1
asabaliauskas on DSK3SPTVN1PROD with RULES
43068
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
October 2011 CPI–U (237.838/226.421).
This resulted in a multiplying factor of
1.05042. The existing OCSLA maximum
civil penalty amount ($40,000) was
multiplied by the multiplying factor
(40,000 × 1.05042 = 42,016.80). 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 increase in the
OCSLA maximum civil penalty amount
does not exceed 150 percent of the
OCSLA maximum civil penalty amount
as of November 2, 2015, and thus
complies with 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) predates such
increase.
For 2016, the FCPIA of 2015 requires
that BOEM adjust the OPA maximum
civil penalty amount and provides the
adjustment timing. The OPA maximum
civil penalty amount was last adjusted
pursuant to the FPCIA of 1990 in 2011
($30,000). However, the FCPIA of 2015
instructs BOEM to use the OPA
maximum civil penalty amount as last
adjusted by a provision of law other
than the FCPIA of 1990 when
calculating the 2016 civil penalty
adjustment. The OPA maximum civil
penalty was last adjusted by a provision
of law other than the FCPIA of 1990
when it was established by OPA in
1990. Therefore, in computing the new
OPA maximum civil penalty amount,
BOEM divided the October 2015 CPI–U
by the October 1990 CPI–U (237.838/
133.5). This resulted in a multiplying
factor of 1.78156. The statutory OPA
maximum civil penalty amount
($25,000) was multiplied by the
multiplying factor (25,000 × 1.78156 =
44,539.00). 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 $44,539. This
increase in the OPA maximum civil
penalty amount does not exceed 150
percent of the OPA maximum civil
penalty amount as of November 2, 2015,
and thus complies with the FCPIA of
2015. Also, pursuant to the FCPIA of
2015, the increase in the OPA maximum
civil penalty amount applies to civil
penalties assessed after the date the
increase takes effect, even when the
associated violation(s) predates such
increase.
VerDate Sep<11>2014
16:44 Jun 30, 2016
Jkt 238001
III. Procedural Requirements
A. Regulatory Planning and Review
(E.O. 12866 and 13563)
Executive Order 12866 provides that
the Office of Information and Regulatory
Affairs in the Office of Management and
Budget will review all significant rules.
The Office of Information and
Regulatory Affairs has determined that
this rule is not significant.
Executive Order 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, to the extent
permitted by statute.
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
Inflation Adjustment Act Improvements
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:
(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.
PO 00000
Frm 00086
Fmt 4700
Sfmt 4700
(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 Executive
Order 12630. A takings implication
assessment is not required.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of
Executive Order13132, this rule does
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 Executive Order 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’s consultation policy, under
Departmental Manual Part 512 Chapters
4 and 5, and under the criteria in
Executive Order 13175 and have
determined that it has no substantial
direct effects on federally recognized
Indian tribes and that consultation
under the Department’s tribal
consultation policy is not required.
E:\FR\FM\01JYR1.SGM
01JYR1
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
I. Paperwork Reduction Act
This rule does not contain
information collection requirements,
and a submission to the Office of
Management and Budget 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.
asabaliauskas on DSK3SPTVN1PROD with RULES
K. Effects on the Energy Supply (E.O.
13211)
This rule is not a significant energy
action under the definition in Executive
Order 13211. A Statement of Energy
Effects is not required.
L. Clarity of This Regulation
We are required by Executive Orders
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:
(a) Be logically organized;
(b) Use the active voice to address
readers directly;
(c) Use common, everyday words and
clear language rather than jargon;
(d) Be divided into short sections and
sentences; and
(e) 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. 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
VerDate Sep<11>2014
16:44 Jun 30, 2016
Jkt 238001
adjusted penalties of no later than
August 1, 2016. To comply with the
FCPIA of 2015, we are issuing these
regulations as an interim final rule and
are requesting comments postpromulgation. 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).
BOEM finds that there is good cause to
promulgate this rule without first
providing for public comment. It would
not be practicable 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, BOEM is promulgating this 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. BOEM
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 prepromulgation public comment on this
rule. Thus, BOEM finds prepromulgation notice and public
comment to be impracticable and
unnecessary.
List of Subjects
30 CFR Part 550
Administrative practice and
procedure, Continental shelf,
environmental impact statements,
environmental protection, federal lands,
government contracts, investigations, oil
and gas exploration, outer continental
shelf, penalties, pipelines, mineral
resources, rights-of-way, reporting and
recordkeeping requirements, sulfur.
30 CFR Part 553
Administrative practice and
procedure, Continental shelf, Financial
responsibility, OCS, Oil and gas
exploration, Oil pollution, Liability,
Limit of liability, Penalties, Pipelines,
Rights-of-way, Reporting and
recordkeeping requirements, Surety
bonds, Treasury securities.
PO 00000
Frm 00087
Fmt 4700
Sfmt 4700
43069
Dated; June 24, 2016.
Janice M. Schneider,
Assistant Secretary—Land and Minerals
Management.
For the reasons stated in the
preamble, the BOEM amends 30 CFR
parts 550 and 553 as follows:
PART 550—OIL AND GAS AND
SULPHUR OPERATIONS IN THE
OUTER CONTINENTAL SHELF
1. The authority citation for part 550
is revised to read as follows:
■
Authority: 30 U.S.C. 1751; 31 U.S.C. 9701;
43 U.S.C. 1334.
2. Revise § 550.1403 to read as
follows:
■
§ 550.1403
penalty?
What is the maximum civil
The maximum civil penalty is
$42,017 per day per violation.
PART 553—OIL SPILL FINANCIAL
RESPONSIBILITY FOR OFFSHORE
FACILITIES
3. The authority citation for part 553
is revised 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:
■
§ 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
$44,539 per COF per day of violation
(that is, each day a COF is operated
without acceptable evidence of OSFR).
*
*
*
*
*
[FR Doc. 2016–15607 Filed 6–30–16; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 356
Sale and Issue of Marketable BookEntry Treasury Bills, Notes, and Bonds
Fiscal Service, Treasury.
Final rule.
AGENCY:
ACTION:
The Department of the
Treasury is making non-substantive
technical corrections to its marketable
securities auction rules.
DATES: Effective July 1, 2016.
FOR FURTHER INFORMATION CONTACT: Lori
Santamorena, Kurt Eidemiller, or Kevin
SUMMARY:
E:\FR\FM\01JYR1.SGM
01JYR1
]]>Agencies
[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43066-43069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15607]
=======================================================================
-----------------------------------------------------------------------
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: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: This rule adjusts the level of civil monetary penalties
contained in the Bureau of Ocean Energy Management (BOEM) regulations
pursuant to the Outer Continental Shelf Lands Act, the Oil Pollution
Act of 1990, the Federal Civil Penalties Inflation Adjustment Act
Improvements
[[Page 43067]]
Act of 2015 and Office of Management and Budget guidance.
DATES: This rule is effective on August 1, 2016. Comments will be
accepted until August 30, 2016.
ADDRESSES: Address all comments regarding this proposed rule to BOEM by
any of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
U.S. Postal Service or Other Mail Delivery Service:
Address to Robert Sebastian, Office of Policy, Regulation and Analysis
(OPRA), BOEM, Department of the Interior, 1849 C Street NW., Mailstop
5238, Washington, DC 20240.
Hand delivery to Office of Policy, Regulation and
Analysis, BOEM, Department of the Interior, at 1849 C Street NW., Room
5249, Washington, DC 20240.
Please include your name, return address, and phone number and/or
email address, so we can contact you if we have questions regarding
your submission.
FOR FURTHER INFORMATION CONTACT: Robert Sebastian, Office of Policy,
Regulation and Analysis at (504) 736-2761 or email at
robert.sebastian@boem.gov.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of Adjustments
III. 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)
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 to account for inflation. 43 U.S.C. 1350(b)(1). The Federal
Civil Penalties Inflation Adjustment Act of 1990 (Public Law 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. Pursuant to OCSLA and the FCPIA of 1990, the OCSLA maximum
civil penalty amount was last adjusted in 2011. 76 FR 38,294 (June 30,
2011). After running the computations, the Department of the Interior
determined that adjustments of the OCSLA maximum civil penalty amount
were not warranted in 2014 and 2015.
Similarly, the Oil Pollution Act (OPA) of 1990 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. Pursuant to the FCPIA of 1990, the OPA maximum civil
penalty amount was adjusted for the first time in 2007, 72 FR 8,897
(Feb. 28, 2007), and again in 2011, 76 FR 38,294 (June 30, 2011). After
running the computations, the Department of the Interior determined
that adjustments of the OPA 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), which further amended the
FCPIA of 1990. 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 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 with $40,000 1.05042 $42,017
regulatory and
contractual obligations.
30 CFR 553.51(a)...................... Failure to comply with * 25,000 1.78156 44,539
financial
responsibility
requirements.
----------------------------------------------------------------------------------------------------------------
* The current OPA maximum civil penalty amount provided in 30 CFR 553.51(a) is $30,000. However, the FCPIA of
2015 instructs BOEM to use the OPA maximum civil penalty amount as last adjusted by a provision of law other
than the FCPIA of 1990 when calculating the 2016 civil penalty adjustment. Therefore, BOEM used the OPA
maximum civil penalty amount of $25,000, which was established by OPA in 1990, when calculating the 2016 civil
penalty adjustment.
II. Calculation of Adjustments
The Office of Management and Budget (OMB) issued guidance on
calculating the civil monetary penalty adjustments pursuant to the
FCPIA of 2015. See February 24, 2016, Memorandum for the Heads of
Executive Departments and Agencies, from Shaun Donovan, Director,
Office of Management and Budget, subject: 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.
The calculated adjustment for 2016 is based on 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.
For 2016, OCSLA and the FCPIA of 2015 require that BOEM adjust the
OCSLA maximum civil penalty amount and provide the adjustment timing.
In computing the new OCSLA maximum civil penalty amount, since the
amount was last adjusted in 2011, BOEM divided the October 2015 CPI-U
by the
[[Page 43068]]
October 2011 CPI-U (237.838/226.421). This resulted in a multiplying
factor of 1.05042. The existing OCSLA maximum civil penalty amount
($40,000) was multiplied by the multiplying factor (40,000 x 1.05042 =
42,016.80). 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 increase in the OCSLA maximum civil penalty
amount does not exceed 150 percent of the OCSLA maximum civil penalty
amount as of November 2, 2015, and thus complies with 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) predates such increase.
For 2016, the FCPIA of 2015 requires that BOEM adjust the OPA
maximum civil penalty amount and provides the adjustment timing. The
OPA maximum civil penalty amount was last adjusted pursuant to the
FPCIA of 1990 in 2011 ($30,000). However, the FCPIA of 2015 instructs
BOEM to use the OPA maximum civil penalty amount as last adjusted by a
provision of law other than the FCPIA of 1990 when calculating the 2016
civil penalty adjustment. The OPA maximum civil penalty was last
adjusted by a provision of law other than the FCPIA of 1990 when it was
established by OPA in 1990. Therefore, in computing the new OPA maximum
civil penalty amount, BOEM divided the October 2015 CPI-U by the
October 1990 CPI-U (237.838/133.5). This resulted in a multiplying
factor of 1.78156. The statutory OPA maximum civil penalty amount
($25,000) was multiplied by the multiplying factor (25,000 x 1.78156 =
44,539.00). 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 $44,539. This increase in the OPA maximum civil penalty
amount does not exceed 150 percent of the OPA maximum civil penalty
amount as of November 2, 2015, and thus complies with the FCPIA of
2015. Also, pursuant to the FCPIA of 2015, the increase in the OPA
maximum civil penalty amount applies to civil penalties assessed after
the date the increase takes effect, even when the associated
violation(s) predates such increase.
III. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866 and 13563)
Executive Order 12866 provides that the Office of Information and
Regulatory Affairs in the Office of Management and Budget will review
all significant rules. The Office of Information and Regulatory Affairs
has determined that this rule is not significant.
Executive Order 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, to the extent permitted by statute.
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 Inflation
Adjustment Act Improvements 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:
(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.
(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 Executive Order 12630. A takings
implication assessment is not required.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of Executive Order13132, this rule
does 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 Executive Order 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's consultation policy, under Departmental
Manual Part 512 Chapters 4 and 5, and under the criteria in Executive
Order 13175 and have determined that it has no substantial direct
effects on federally recognized Indian tribes and that consultation
under the Department's tribal consultation policy is not required.
[[Page 43069]]
I. Paperwork Reduction Act
This rule does not contain information collection requirements, and
a submission to the Office of Management and Budget 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 Executive Order 13211. A Statement of Energy Effects is not
required.
L. Clarity of This Regulation
We are required by Executive Orders 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:
(a) Be logically organized;
(b) Use the active voice to address readers directly;
(c) Use common, everyday words and clear language rather than
jargon;
(d) Be divided into short sections and sentences; and
(e) 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. 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 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).
BOEM finds that there is good cause to promulgate this rule without
first providing for public comment. It would not be practicable 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, BOEM is
promulgating this 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. BOEM 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, BOEM finds pre-promulgation notice and public comment to be
impracticable and unnecessary.
List of Subjects
30 CFR Part 550
Administrative practice and procedure, Continental shelf,
environmental impact statements, environmental protection, federal
lands, government contracts, investigations, oil and gas exploration,
outer continental shelf, penalties, pipelines, mineral resources,
rights-of-way, reporting and recordkeeping requirements, sulfur.
30 CFR Part 553
Administrative practice and procedure, Continental shelf, Financial
responsibility, OCS, Oil and gas exploration, Oil pollution, Liability,
Limit of liability, Penalties, Pipelines, Rights-of-way, Reporting and
recordkeeping requirements, Surety bonds, Treasury securities.
Dated; June 24, 2016.
Janice M. Schneider,
Assistant Secretary--Land and Minerals Management.
For the reasons stated in the preamble, the 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 is revised 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 $42,017 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; 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 $44,539 per
COF per day of violation (that is, each day a COF is operated without
acceptable evidence of OSFR).
* * * * *
[FR Doc. 2016-15607 Filed 6-30-16; 8:45 am]
BILLING CODE 4310-MR-P
