Oil Spill Financial Responsibility Adjustment of the Limit of Liability for Offshore Facilities, 2540-2542 [2018-00798]
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Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations
K. Effects on the Energy Supply (E.O.
13211)
This rule is not a significant energy
action under the definition in E.O.
13211. Therefore, a Statement of Energy
Effects is not required.
List of Subjects in 30 CFR Part 250
Administrative practice and
procedure, Continental shelf,
Continental Shelf—mineral resources,
Continental Shelf—rights-of-way,
Environmental impact statements,
Environmental protection, Government
contracts, Investigations, Oil and gas
exploration, Penalties, Pipelines,
Reporting and recordkeeping
requirements, Sulfur.
Joseph R. Balash,
Assistant Secretary—Land and Minerals
Management, U.S. Department of the Interior.
For the reasons given in the preamble,
the 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
SULFUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
1. The authority citation for 30 CFR
part 250 continues to read as follows:
■
Authority: 30 U.S.C. 1751, 31 U.S.C. 9701,
33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334.
2. Revise § 250.1403 to read as
follows:
■
§ 250.1403
penalty?
What is the maximum civil
The maximum civil penalty is
$43,576 per day per violation.
[FR Doc. 2018–00920 Filed 1–17–18; 8:45 am]
BILLING CODE 4310–VH–P
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Part 553
[Docket ID: BOEM–2017–0048;
MMAA104000]
RIN 1010–AD98
Oil Spill Financial Responsibility
Adjustment of the Limit of Liability for
Offshore Facilities
Bureau of Ocean Energy
Management, Interior.
ACTION: Final rule.
sradovich on DSK3GMQ082PROD with RULES
AGENCY:
The Bureau of Ocean Energy
Management is issuing this final rule to
adjust the offshore facility limit of
liability for damages under the Oil
Pollution Act of 1990 (OPA) to reflect
SUMMARY:
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the increase in the Consumer Price
Index (CPI) since 2013. This rule
increases the OPA offshore facility limit
of liability for damages from $133.65
million to $137.6595 million.
DATES: This rule is effective on February
20, 2018.
FOR FURTHER INFORMATION CONTACT:
Questions regarding the inflation
adjustment methodology or amount
should be directed to Mr. Martin
Heinze, Economics Division, BOEM, at
martin.heinze@boem.gov or at 703–787–
1141. Questions regarding the timing of
this adjustment or the applicability of
the regulations should be directed to
Deanna Meyer-Pietruszka, Chief, Office
of Policy, Regulation and Analysis,
Bureau of Ocean Energy Management
(BOEM), at deanna.meyer-pietruszka@
boem.gov or at (202) 208–6352.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of the 2017 Adjustment
III. Effective Date
IV. Procedural Requirements
A. Regulatory Planning and Review (E.O.
12866, 13563 and 13771)
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 OPA established a
comprehensive regime for addressing
the consequences of oil spills, ranging
from spill response to compensation for
damages to injured parties. Under Title
I of the OPA, the responsible parties for
any vessel or facility, including any
offshore facility that discharges or poses
a substantial threat of discharge of oil
into or upon navigable waters, adjoining
shorelines, or the exclusive economic
zone, are liable for the removal costs
and damages that result from such
discharge or threat of discharge, as
specified in 33 U.S.C. 2702(a) and (b).
Under 33 U.S.C. 2704(a), however, the
total liability of each responsible party
is limited, subject to certain exceptions
specified in 33 U.S.C. 2704(c). In 1990,
the OPA provided that responsible
parties for an offshore facility incident
were liable for ‘‘the total of all removal
costs plus $75,000,000.’’ (33 U.S.C.
2704(a)(3)).
To prevent the real value of the OPA
limits of liability from declining over
time as a result of inflation, and shifting
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the financial risk of oil spill incidents to
the Oil Spill Liability Trust Fund
(OSLTF), the OPA requires that the
President adjust the limits of liability
‘‘not less than every three years,’’ by
regulation, to reflect significant
increases in the CPI. (33 U.S.C.
2704(d)(4)). This mandate, in place
since 1990, preserves the deterrent
effect and ‘‘polluter pays’’ principle
embodied in OPA.
BOEM last adjusted for inflation the
OPA offshore facility limit of liability
for damages on December 12, 2014 (79
FR 73832). That 2014 rule updated the
offshore facility limit of liability based
on the Consumer Price Index All Urban
Consumer (CPI–U) using the 2013
annual average CPI–U. The Bureau of
Labor Statisitcs (BLS) has published the
2016 annual average CPI–U, which
BOEM is using to calculate this threeyear inflation adjustment for the
offshore facility limit of liability.
BOEM is promulgating this rule
pursuant to the provisions of Title I of
OPA, Executive Order (E.O.) 12777, as
amended, and BOEM regulations at 30
CFR part 553, subpart G—Limit of
Liability for Offshore Facilities. A
proposed rule is unnecessary, and
BOEM thus has good cause for issuing
this final rule under 5 U.S.C. 553(b),
because the adjustment in the limit of
liability is mandated by statute, the
methodology for determining the
amount is defined in BOEM’s
regulations, and those regulations at
§§ 553.703(b)(4) and 553.704 provide
that inflation adjustments to the
offshore facilities limit of liability will
be implemented through final
rulemaking. The legislative and
regulatory history for OPA limit of
liability inflation adjustments can be
found in the rulemaking preamble for
the last inflation adjustment at 79 FR
73832.
II. Calculation of the 2017 Adjustment
The methodology for calculating the
offshore facilities limit of liability
inflation adjustment is provided in
§ 553.703.
Section 553.703(b)(2) requires that,
not later than every three years from the
year the limit of liability was last
adjusted for inflation, BOEM will
evaluate whether the cumulative
percent change in the annual CPI since
that year has reached a significance
threshold of three percent or greater.
BOEM’s regulations specify Annual
CPI–U as the appropriate mechanism by
which to measure CPI. The limit of
liability was last adjusted using the
2013 Annual CPI–U and BOEM has
determined that the cumulative percent
change in the Annual CPI–U since 2013
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Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations
sradovich on DSK3GMQ082PROD with RULES
exceeds three percent. Therefore, as
required by BOEM’s regulations, BOEM
must increase the offshore limit of
liability for damages in § 553.702 by an
amount equal to the cumulative percent
change in the Annual CPI–U from the
year the limit was last adjusted by
regulation.
The formula for calculating a
cumulative percent change in the
Annual CPI–U provided in § 553.703(a)
is as follows: The percent change in the
Annual CPI–U = [(Annual CPI–U for
Current Period ¥ Annual CPI–U for
Previous Period) ÷ Annual CPI–U for
Previous Period] × 100. Using the BLS
Annual CPI–U index numbers for 2013
and 2016, the calculation is:
(240.007¥232.957) ÷ 232.957 = 0.03026.
Multiplying × 100 yields a cumulative
percent change of 3.026 percent. Section
553.703(a) requires the cumulative
percent change value to be rounded to
one decimal place, resulting in a value
of 3.0 percent.
Under § 553.703(c), BOEM calculates
the adjustment to the offshore facilities
limit of liability for inflation using the
following formula: New limit of liability
= Previous limit of liability + (Previous
limit of liability × the decimal
equivalent of the percent change in the
Annual CPI–U), rounded to the closest
$100. The calculation is: $133.65
million + ($133.65 million × 0.03) =
$137.6595 million.
Therefore, BOEM is revising the
regulations at § 553.702 to increase the
limit of liability under OPA for a
responsible party for any offshore
facility, including any offshore pipeline,
to the total of all removal costs plus
$137.6595 million for damages with
respect to each incident.
Further information regarding the CPI
and the methodology used by the BLS
to develop the CPI is available at:
https://www.bls.gov/cpi/cpi_
dr.htm#2017.
30-day delay in effective date is
appropriate.
III. Effective Date
BOEM’s regulations, at § 553.704,
provide for a 90-day delay in the
effective date of the adjustment to the
limit of liability. Section 553.704 also
provides that BOEM may, as part of a
rule amending § 553.702, specify a
different amount of time between the
publication of the rule in the Federal
Register and the effective date of that
rule. The adjustment in the limit of
liability is mandated by statute and the
methodology for determining the
amount of the update is defined in
BOEM’s regulations. Given that
§ 553.704 specifically allows other than
a 90-day delay in effective date to be
announced in this rule amending
§ 553.702, BOEM has determined that a
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)). Thus, the RFA does not apply
to this rulemaking.
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IV. Procedural Requirements
A. Regulatory Planning and Review
(E.O. 12866, 13563 and 13771)
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.
This rule is an update to the offshore
facility limit of liability under the OPA.
It is neither a new regulation, nor does
it increase the regulatory burden on
regulated entities. This final rule simply
maintains the value of the limit of
liability set by the OPA in 1990 by
updating the limit of liability for three
years of inflation as required by the
OPA at 33 U.S.C. 2704(d)(4).
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.
The OPA statutory mandate does not
give BOEM the discretion to reduce
burdens or maintain freedom of choice.
E.O. 13771 of January 30, 2017,
directs Federal agencies to reduce the
regulatory burden on regulated entities
and control regulatory costs. The E.O.,
however, applies only to significant
regulatory actions, as defined in Section
3(f) of E.O. 12866. This rulemaking does
not meet the definition for a significant
regulatory action; thus, E.O. 13771 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.
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2541
Implementation of this rule will not:
(a) Have an annual effect on the
economy of $100 million or more;
(b) cause a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies, or geographic
regions; or
(c) result in 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. This
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)
E.O. 13175 provides that tribal
consultation is not necessary for
regulations required by statute. Because
this rule simply implements a statutory
mandate, tribal consultation is not
required by this Executive Order.
The Department of the Interior
continually strives to strengthen its
government-to-government relationship
with Indian tribes through a
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Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations
commitment to consultation with Indian
tribes and recognizes their right to selfgovernance and tribal sovereignty.
BOEM is also respectful of its
responsibilities for consultation with
corporations established pursuant to the
Alaska Native Claims Settlement Act, 43
U.S.C. 1601 et seq. (ANCSA).
BOEM has evaluated this rule under
the consultation policy of the
Department of the Interior in Chapters 4
and 5 of Series 512 of the Departmental
Manual and has determined that this
rule has no substantial direct effects on
any Tribe or ANCSA Corporation, as
defined in 512 DM 4.3 to include,
among others, Federally-recognized
Alaska Native tribes. On the basis of this
evaluation, BOEM has determined that
consultation is not necessary to comply
with any DOI policy.
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
A detailed environmental analysis
under the National Environmental
Policy Act of 1969 (NEPA) is not
required if the rule is covered by a
categorical exclusion (see 43 CFR
46.205). This final rule meets the
criteria set forth at 43 CFR 46.210(i) for
a Departmental Categorical Exclusion in
that this final rule is ‘‘. . . of an
administrative, financial, legal,
technical, or procedural 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. Therefore, a Statement of Energy
Effects is not required.
sradovich on DSK3GMQ082PROD with RULES
List of Subjects in 30 CFR Part 553
Administrative practice and
procedure, Continental shelf, Financial
responsibility, Liability, Limit of
liability, Oil and gas exploration, Oil
pollution, Oil spill, Outer Continental
Shelf, Penalties, Pipelines, Rights-ofway, Reporting and recordkeeping
requirements, Surety bonds, Treasury
securities.
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Dated: January 9, 2018.
Joseph R. Balash,
Assistant Secretary—Land and Minerals
Management.
For the reasons stated in the
preamble, BOEM amends 30 CFR part
553 as follows:
PART 553—OIL SPILL FINANCIAL
RESPONSIBILITY FOR OFFSHORE
FACILITIES
1. The authority citation for part 553
continues to read as follows:
■
Authority: 33 U.S.C. 2704, 2716; E.O.
12777, as amended.
■
2. Revise § 553.702 to read as follows:
§ 553.702 What limit of liability applies to
my offshore facility?
Except as provided in 33 U.S.C.
2704(c), the limit of liability under OPA
for a responsible party for any offshore
facility, including any offshore pipeline,
is the total of all removal costs plus
$137.6595 million for damages with
respect to each incident.
[FR Doc. 2018–00798 Filed 1–17–18; 8:45 am]
BILLING CODE 4310–MR–P
LIBRARY OF CONGRESS
U.S. Copyright Office
37 CFR Parts 201, 202
[Docket No. 2016–10]
Group Registration of Photographs
U.S. Copyright Office, Library
of Congress.
ACTION: Final rule.
AGENCY:
The U.S. Copyright Office is
modernizing its practices to increase the
efficiency of the group registration
option for photographs. This final rule
modifies the procedure for registering
groups of published photographs
(GRPPH), and establishes a similar
procedure for registering groups of
unpublished photographs (GRUPH).
Applicants will be required to use a new
online application specifically designed
for each option, instead of using a paper
application, and will be allowed to
include up to 750 photographs in each
claim. The ‘‘unpublished collection’’
option (which allows an unlimited
number of photographs to be registered
with one application), and the ‘‘pilot
program’’ (which allows an unlimited
number of published photographs to be
registered with the application designed
for one work) will be eliminated. The
corresponding ‘‘pilot program’’ for
photographic databases will remain in
SUMMARY:
PO 00000
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effect for the time being. The final rule
modernizes the deposit requirements by
requiring applicants to submit their
photographs in a digital format when
using GRPPH, GRUPH, or the pilot
program for photographic databases,
along with a separate document
containing a list of the titles and file
names for each photograph. The final
rule revises the eligibility requirements
for GRPPH and GRUPH by providing
that all the photographs must be created
by the same ‘‘author’’ (a term that
includes an employer or other person
for whom a work is made for hire), and
clarifying that they do not need to be
created by the same photographer or
published within the same country. It
also confirms that a group registration
issued under GRPHH or GRUPH covers
each photograph in the group, each
photograph is registered as a separate
work, and the group as a whole is not
considered a compilation or a collective
work.
DATES: Effective February 20, 2018.
FOR FURTHER INFORMATION CONTACT:
Robert J. Kasunic, Associate Register of
Copyrights and Director of Registration
Policy and Practice; Sarang Vijay Damle,
General Counsel and Associate Register
of Copyrights; Erik Bertin, Deputy
Director of Registration Policy and
Practice by telephone at 202–707–8040
or by email at rkas@loc.gov, sdam@
loc.gov, and ebertin@loc.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Copyright Act gives the Register
of Copyrights (the ‘‘Register’’) the
discretion to allow groups of related
works to be registered with one
application and one filing fee. See 17
U.S.C. 408(c)(1). Congress cited ‘‘a
group of photographs by one
photographer’’ as an example of a
‘‘group of related works’’ that would be
suitable for a group registration. H.R.
Rep. No. 94–1476, at 154 (1976),
reprinted in 1976 U.S.C.C.A.N. 5659,
5770; S. Rep. No. 94–473, at 136 (1975).
When large numbers of photographs are
grouped together in one application,
however, information about the
individual works may not be adequately
captured. Group registration options
therefore require careful balancing of
the need for an accurate public record
and the need for an efficient method of
facilitating the examination of those
works.
On December 1, 2016, the Copyright
Office (the ‘‘Office’’) published a Notice
of Proposed Rulemaking (‘‘NPRM’’)
setting forth proposed amendments to
the current regulation governing the
group registration option for published
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]]>Agencies
[Federal Register Volume 83, Number 12 (Thursday, January 18, 2018)]
[Rules and Regulations]
[Pages 2540-2542]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00798]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
30 CFR Part 553
[Docket ID: BOEM-2017-0048; MMAA104000]
RIN 1010-AD98
Oil Spill Financial Responsibility Adjustment of the Limit of
Liability for Offshore Facilities
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Ocean Energy Management is issuing this final
rule to adjust the offshore facility limit of liability for damages
under the Oil Pollution Act of 1990 (OPA) to reflect the increase in
the Consumer Price Index (CPI) since 2013. This rule increases the OPA
offshore facility limit of liability for damages from $133.65 million
to $137.6595 million.
DATES: This rule is effective on February 20, 2018.
FOR FURTHER INFORMATION CONTACT: Questions regarding the inflation
adjustment methodology or amount should be directed to Mr. Martin
Heinze, Economics Division, BOEM, at [email protected] or at 703-
787-1141. Questions regarding the timing of this adjustment or the
applicability of the regulations should be directed to Deanna Meyer-
Pietruszka, Chief, Office of Policy, Regulation and Analysis, Bureau of
Ocean Energy Management (BOEM), at [email protected] or
at (202) 208-6352.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of the 2017 Adjustment
III. Effective Date
IV. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866, 13563 and 13771)
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 OPA established a comprehensive regime for addressing the
consequences of oil spills, ranging from spill response to compensation
for damages to injured parties. Under Title I of the OPA, the
responsible parties for any vessel or facility, including any offshore
facility that discharges or poses a substantial threat of discharge of
oil into or upon navigable waters, adjoining shorelines, or the
exclusive economic zone, are liable for the removal costs and damages
that result from such discharge or threat of discharge, as specified in
33 U.S.C. 2702(a) and (b). Under 33 U.S.C. 2704(a), however, the total
liability of each responsible party is limited, subject to certain
exceptions specified in 33 U.S.C. 2704(c). In 1990, the OPA provided
that responsible parties for an offshore facility incident were liable
for ``the total of all removal costs plus $75,000,000.'' (33 U.S.C.
2704(a)(3)).
To prevent the real value of the OPA limits of liability from
declining over time as a result of inflation, and shifting the
financial risk of oil spill incidents to the Oil Spill Liability Trust
Fund (OSLTF), the OPA requires that the President adjust the limits of
liability ``not less than every three years,'' by regulation, to
reflect significant increases in the CPI. (33 U.S.C. 2704(d)(4)). This
mandate, in place since 1990, preserves the deterrent effect and
``polluter pays'' principle embodied in OPA.
BOEM last adjusted for inflation the OPA offshore facility limit of
liability for damages on December 12, 2014 (79 FR 73832). That 2014
rule updated the offshore facility limit of liability based on the
Consumer Price Index All Urban Consumer (CPI-U) using the 2013 annual
average CPI-U. The Bureau of Labor Statisitcs (BLS) has published the
2016 annual average CPI-U, which BOEM is using to calculate this three-
year inflation adjustment for the offshore facility limit of liability.
BOEM is promulgating this rule pursuant to the provisions of Title
I of OPA, Executive Order (E.O.) 12777, as amended, and BOEM
regulations at 30 CFR part 553, subpart G--Limit of Liability for
Offshore Facilities. A proposed rule is unnecessary, and BOEM thus has
good cause for issuing this final rule under 5 U.S.C. 553(b), because
the adjustment in the limit of liability is mandated by statute, the
methodology for determining the amount is defined in BOEM's
regulations, and those regulations at Sec. Sec. 553.703(b)(4) and
553.704 provide that inflation adjustments to the offshore facilities
limit of liability will be implemented through final rulemaking. The
legislative and regulatory history for OPA limit of liability inflation
adjustments can be found in the rulemaking preamble for the last
inflation adjustment at 79 FR 73832.
II. Calculation of the 2017 Adjustment
The methodology for calculating the offshore facilities limit of
liability inflation adjustment is provided in Sec. 553.703.
Section 553.703(b)(2) requires that, not later than every three
years from the year the limit of liability was last adjusted for
inflation, BOEM will evaluate whether the cumulative percent change in
the annual CPI since that year has reached a significance threshold of
three percent or greater. BOEM's regulations specify Annual CPI-U as
the appropriate mechanism by which to measure CPI. The limit of
liability was last adjusted using the 2013 Annual CPI-U and BOEM has
determined that the cumulative percent change in the Annual CPI-U since
2013
[[Page 2541]]
exceeds three percent. Therefore, as required by BOEM's regulations,
BOEM must increase the offshore limit of liability for damages in Sec.
553.702 by an amount equal to the cumulative percent change in the
Annual CPI-U from the year the limit was last adjusted by regulation.
The formula for calculating a cumulative percent change in the
Annual CPI-U provided in Sec. 553.703(a) is as follows: The percent
change in the Annual CPI-U = [(Annual CPI-U for Current Period - Annual
CPI-U for Previous Period) / Annual CPI-U for Previous Period] x 100.
Using the BLS Annual CPI-U index numbers for 2013 and 2016, the
calculation is: (240.007-232.957) / 232.957 = 0.03026. Multiplying x
100 yields a cumulative percent change of 3.026 percent. Section
553.703(a) requires the cumulative percent change value to be rounded
to one decimal place, resulting in a value of 3.0 percent.
Under Sec. 553.703(c), BOEM calculates the adjustment to the
offshore facilities limit of liability for inflation using the
following formula: New limit of liability = Previous limit of liability
+ (Previous limit of liability x the decimal equivalent of the percent
change in the Annual CPI-U), rounded to the closest $100. The
calculation is: $133.65 million + ($133.65 million x 0.03) = $137.6595
million.
Therefore, BOEM is revising the regulations at Sec. 553.702 to
increase the limit of liability under OPA for a responsible party for
any offshore facility, including any offshore pipeline, to the total of
all removal costs plus $137.6595 million for damages with respect to
each incident.
Further information regarding the CPI and the methodology used by
the BLS to develop the CPI is available at: https://www.bls.gov/cpi/cpi_dr.htm#2017.
III. Effective Date
BOEM's regulations, at Sec. 553.704, provide for a 90-day delay in
the effective date of the adjustment to the limit of liability. Section
553.704 also provides that BOEM may, as part of a rule amending Sec.
553.702, specify a different amount of time between the publication of
the rule in the Federal Register and the effective date of that rule.
The adjustment in the limit of liability is mandated by statute and the
methodology for determining the amount of the update is defined in
BOEM's regulations. Given that Sec. 553.704 specifically allows other
than a 90-day delay in effective date to be announced in this rule
amending Sec. 553.702, BOEM has determined that a 30-day delay in
effective date is appropriate.
IV. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866, 13563 and 13771)
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.
This rule is an update to the offshore facility limit of liability
under the OPA. It is neither a new regulation, nor does it increase the
regulatory burden on regulated entities. This final rule simply
maintains the value of the limit of liability set by the OPA in 1990 by
updating the limit of liability for three years of inflation as
required by the OPA at 33 U.S.C. 2704(d)(4).
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. The OPA statutory mandate does not give BOEM the discretion
to reduce burdens or maintain freedom of choice.
E.O. 13771 of January 30, 2017, directs Federal agencies to reduce
the regulatory burden on regulated entities and control regulatory
costs. The E.O., however, applies only to significant regulatory
actions, as defined in Section 3(f) of E.O. 12866. This rulemaking does
not meet the definition for a significant regulatory action; thus, E.O.
13771 does not apply to this rulemaking.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires an agency to prepare
a regulatory flexibility analysis for 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)). 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.
Implementation of this rule will not:
(a) Have an annual effect on the economy of $100 million or more;
(b) cause a major increase in costs or prices for consumers,
individual industries, Federal, State, or local government agencies, or
geographic regions; or
(c) result in 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. This 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)
E.O. 13175 provides that tribal consultation is not necessary for
regulations required by statute. Because this rule simply implements a
statutory mandate, tribal consultation is not required by this
Executive Order.
The Department of the Interior continually strives to strengthen
its government-to-government relationship with Indian tribes through a
[[Page 2542]]
commitment to consultation with Indian tribes and recognizes their
right to self-governance and tribal sovereignty. BOEM is also
respectful of its responsibilities for consultation with corporations
established pursuant to the Alaska Native Claims Settlement Act, 43
U.S.C. 1601 et seq. (ANCSA).
BOEM has evaluated this rule under the consultation policy of the
Department of the Interior in Chapters 4 and 5 of Series 512 of the
Departmental Manual and has determined that this rule has no
substantial direct effects on any Tribe or ANCSA Corporation, as
defined in 512 DM 4.3 to include, among others, Federally-recognized
Alaska Native tribes. On the basis of this evaluation, BOEM has
determined that consultation is not necessary to comply with any DOI
policy.
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
A detailed environmental analysis under the National Environmental
Policy Act of 1969 (NEPA) is not required if the rule is covered by a
categorical exclusion (see 43 CFR 46.205). This final rule meets the
criteria set forth at 43 CFR 46.210(i) for a Departmental Categorical
Exclusion in that this final rule is ``. . . of an administrative,
financial, legal, technical, or procedural 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. Therefore, a Statement of Energy Effects is not
required.
List of Subjects in 30 CFR Part 553
Administrative practice and procedure, Continental shelf, Financial
responsibility, Liability, Limit of liability, Oil and gas exploration,
Oil pollution, Oil spill, Outer Continental Shelf, Penalties,
Pipelines, Rights-of-way, Reporting and recordkeeping requirements,
Surety bonds, Treasury securities.
Dated: January 9, 2018.
Joseph R. Balash,
Assistant Secretary--Land and Minerals Management.
For the reasons stated in the preamble, BOEM amends 30 CFR part 553
as follows:
PART 553--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE
FACILITIES
0
1. The authority citation for part 553 continues to read as follows:
Authority: 33 U.S.C. 2704, 2716; E.O. 12777, as amended.
0
2. Revise Sec. 553.702 to read as follows:
Sec. 553.702 What limit of liability applies to my offshore facility?
Except as provided in 33 U.S.C. 2704(c), the limit of liability
under OPA for a responsible party for any offshore facility, including
any offshore pipeline, is the total of all removal costs plus $137.6595
million for damages with respect to each incident.
[FR Doc. 2018-00798 Filed 1-17-18; 8:45 am]
BILLING CODE 4310-MR-P
