Oil and Gas and Sulfur Operations on the Outer Continental Shelf-Civil Penalty Inflation Adjustment, 10989-10992 [2019-05671]

Download as PDF Federal Register / Vol. 84, No. 57 / Monday, March 25, 2019 / Rules and Regulations (ii) Failure to satisfy the requirements of paragraph (c)(3)(iii) of this section with respect to each sponsored direct reporting NFFE that the NFFE would have been required to satisfy as a direct reporting NFFE; (iii) Failure to report to the IRS on Form 8966, ‘‘FATCA Report,’’ (or such other form as the IRS may prescribe) all of the information required under paragraph (c)(3)(ii) of this section with respect to each sponsored direct reporting NFFE and each of its substantial U.S. owners (or report to the IRS on Form 8966 that the sponsored direct reporting NFFE had no substantial U.S. owners) by the due date of the form (including any extensions); (iv) Failure to make the certification required under paragraph (f)(2) of this section; (v) Failure to cooperate with an IRS request for additional information described in paragraph (f)(3) of this section, including requests for the records described in paragraph (c)(3)(iv) of this section and requests to extend the retention period for these records as described in (f)(4)(vii) of this section; (vi) Making any fraudulent statement or misrepresentation of material fact to the IRS or representing to a withholding agent or the IRS its status as a sponsoring entity under paragraph (c)(5) of this section for an entity other than an entity for which it acts as a sponsoring entity; or (vii) Failure to obtain from each sponsored direct reporting NFFE the information required to report on Form 8966. (2) Notice of event of default. Following an event of default known by or disclosed to the IRS, the IRS will deliver to the sponsoring entity a notice of default specifying the event of default and, if applicable, identifying each sponsored direct reporting NFFE to which the notice relates. The IRS will request that the sponsoring entity remediate the event of default within 45 days (unless additional time is requested and agreed to by the IRS). The sponsoring entity must respond to the notice of default and provide information responsive to an IRS request for information or state the reasons why the sponsoring entity does not agree that an event of default has occurred. (3) Remediation of event of default. A sponsoring entity will be permitted to remediate an event of default to the extent that it agrees with the IRS on a remediation plan. The IRS may, as part of a remediation plan, require additional information from the sponsoring entity, remedial actions, or the performance of the specified review procedures VerDate Sep<11>2014 15:47 Mar 22, 2019 Jkt 247001 described in paragraph (f)(3)(ii) of this section. (4) Termination—(i) In general. If the sponsoring entity does not provide a response to a notice of default within the period specified in paragraph (g)(2) of this section, or if the sponsoring entity does not satisfy the conditions of the remediation plan within the time period specified by the IRS, the IRS may deliver a notice of termination that terminates the sponsoring entity’s status, the status of one or more sponsored direct reporting NFFEs as a direct reporting NFFE, or the status of both the sponsoring entity and one or more sponsored direct reporting NFFEs. (ii) Termination of sponsoring entity. If the IRS notifies the sponsoring entity that its status is terminated, the sponsoring entity must send notice of the termination within 30 days after the date of termination to each withholding agent from which each sponsored direct reporting NFFE receives payments and each financial institution with which each sponsored direct reporting NFFE holds an account for which a withholding certificate or written statement prescribed in § 1.1471– 3(d)(11)(x)(B) (as applicable) was provided. A sponsoring entity that has had its status terminated cannot reregister on the FATCA registration website to act as a sponsoring entity for any sponsored direct reporting NFFE unless it receives written approval from the IRS. Unless the status of the sponsored direct reporting NFFEs has been terminated, the sponsored direct reporting NFFEs may register on the FATCA registration website as direct reporting NFFEs or as sponsored direct reporting NFFEs of another sponsoring entity, other than a sponsoring entity that is related to the sponsoring entity that was terminated (absent written approval from the IRS allowing the registration). An entity is related to the terminated sponsoring entity if they have a relationship with each other that is described in section 267(b) or 707(b). (iii) Termination of sponsored direct reporting NFFE. If the IRS notifies the sponsoring entity that the status of a sponsored direct reporting NFFE is terminated (but not the sponsoring entity’s status), the sponsoring entity must remove the sponsored direct reporting NFFE from the sponsoring entity’s registration account on the FATCA registration website and send notice of the termination within 30 days after the date of termination to each withholding agent from which the sponsored direct reporting NFFE receives payments and each financial institution with which it holds an account for which a withholding PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 10989 certificate or written statement prescribed in § 1.1471–3(d)(11)(x)(B) (as applicable) was provided with respect to such sponsored direct reporting NFFE. A sponsored direct reporting NFFE that has had its status as a sponsored direct reporting NFFE terminated (independent from a termination of status of its sponsoring entity) may not register on the FATCA registration website as a direct reporting NFFE or as a sponsored direct reporting NFFE of another sponsoring entity unless it receives written approval from the IRS. (iv) Reconsideration of notice of default or notice of termination. A sponsoring entity or sponsored direct reporting NFFE may request, within 90 days of a notice of default or notice of termination, reconsideration of the notice of default or notice of termination by written request to the IRS. (h) Applicability date. This section generally applies beginning on January 6, 2017, except for paragraphs (c)(5)(iii), (f), and (g) of this section, which apply March 26, 2019. However, taxpayers may apply these provisions as of January 28, 2013. (For the rules that otherwise apply beginning on January 6, 2017, and before March 26, 2019, see this section as in effect and contained in 26 CFR part 1 revised April 1, 2018. For rules that otherwise apply beginning on January 28, 2013, and before January 6, 2017, see this section as in effect and contained in 26 CFR part 1 revised April 1, 2016.) Kirsten Wielobob, Deputy Commissioner for Services and Enforcement. Approved: February 27, 2019. David J. Kautter, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2019–05527 Filed 3–21–19; 4:15 pm] BILLING CODE 4830–01–P DEPARTMENT OF THE INTERIOR Bureau of Safety and Environmental Enforcement 30 CFR Part 250 [Docket ID: BSEE–2019–0001; 190E1700D2 ETISF0000.EAQ000 EEEE500000] RIN 1014–AA42 Oil and Gas and Sulfur Operations on the Outer Continental Shelf—Civil Penalty Inflation Adjustment Bureau of Safety and Environmental Enforcement, Interior. ACTION: Final rule. AGENCY: E:\FR\FM\25MRR1.SGM 25MRR1 10990 Federal Register / Vol. 84, No. 57 / Monday, March 25, 2019 / Rules and Regulations This final rule adjusts the level of the maximum daily civil monetary penalty contained in the Bureau of Safety and Environmental Enforcement (BSEE) regulations for violations of the Outer Continental Shelf Lands Act (OCSLA), in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget (OMB) guidance. The civil penalty inflation adjustment, using a 1.02522 multiplier, accounts for one year of inflation spanning from October 2017 to October 2018. DATES: This rule is effective on March 25, 2019. FOR FURTHER INFORMATION CONTACT: Stacey Noem, Safety and Enforcement Division, Bureau of Safety and Environmental Enforcement, (202) 208– 4005 or by email: regs@bsee.gov. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background and Legal Authority The OCSLA, at 43 U.S.C. 1350(b)(1), directs the Secretary of the Interior (Secretary) to adjust the OCSLA maximum daily civil penalty amount at least once every three years to reflect any increase in the Consumer Price Index (CPI) to account for inflation. On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114–74) (FCPIA of 2015). The FCPIA of 2015 required Federal agencies to adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through rulemaking, if warranted, 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. Agencies were required to publish the first annual inflation adjustments in the Federal Register by no later than January 15, 2017, and must publish recurring annual inflation adjustments by no later than January 15 of each subsequent year. For this year’s annual inflation adjustment, BSEE is publishing this rule after the statutory January 15 deadline because of a lapse in government funding that began on December 22, 2018, and ended on January 25, 2019. BSEE last updated the maximum daily civil penalty amounts in BSEE’s regulations for OCSLA violations by a final rule published and effective on January 18, 2018. (See 83 FR 2538). Consistent with OMB guidance, BSEE’s final rule implemented the inflation adjustments required by the FCPIA of 2015 through October 2017. The OMB Memorandum M–19–04 (Implementation of Penalty Inflation Adjustments for 2019, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015; available at https:// www.whitehouse.gov/wp-content/ uploads/2017/11/m_19_04.pdf) explains agency responsibilities for: Identifying applicable penalties and performing the annual adjustment; publishing revisions to regulations to implement the adjustment in the Federal Register; applying adjusted penalty levels; and performing agency oversight of inflation adjustments. BSEE is promulgating this 2019 inflation adjustment for the OCSLA maximum daily civil penalties as a final rule pursuant to the provisions of the FCPIA of 2015 and OMB’s guidance. A proposed rule is not required because the FCPIA of 2015 expressly exempted the annual inflation adjustments implemented pursuant to the FCPIA of 2015 from the pre-promulgation notice and comment requirements of the Administrative Procedure Act, 5 U.S.C. 553 et seq. (the APA), allowing those adjustments to be published directly as final rules. Specifically, the FCPIA of 2015 states that agencies shall adjust civil monetary penalties ‘‘notwithstanding Section 553 of the Administrative Procedure Act.’’ (FCPIA of 2015 at section 4(b)(2)). This interpretation of the FCPIA of 2015 is confirmed by OMB Memorandum M– 19–04 at 4 (‘‘This means that the public procedure the APA generally requires (i.e., notice, an opportunity for comment, and a delay in effective date) is not required for agencies to issue regulations implementing the annual adjustment.’’). II. Calculation of Adjustments In accordance with the FCPIA of 2015 and the guidance provided in OMB Memorandum M–19–04, BSEE has Current maximum penalty CFR citation Description of the penalty 30 CFR 250.1403 ................... Failure to comply per-day, per-violation. ................................ VerDate Sep<11>2014 15:47 Mar 22, 2019 Jkt 247001 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 calculated the necessary inflation adjustment for the maximum daily civil monetary penalty amount in 30 CFR 250.1403 for violations of OCSLA. The previous OCSLA civil penalty inflation adjustment accounted for inflation through October 2017. The required annual civil penalty inflation adjustment promulgated through this rule accounts for inflation through October 2018. Annual inflation adjustments are based on the percent change between the Consumer Price Index for all Urban Consumers (CPI–U) for the October preceding the date of the adjustment, and the prior year’s October CPI–U. Consistent with the guidance in OMB Memorandum M–19–04, BSEE divided the October 2018 CPI–U by the October 2017 CPI–U to calculate the multiplying factor. In this case, the October 2018 CPI–U (252.885) divided by the October 2017 CPI–U (246.663) is 1.02522. OMB Memorandum M–19–04 confirms that this is the proper multiplier. (OMB Memorandum M–19–04 at 1, n.4). The FCPIA of 2015 requires that BSEE adjust the OCSLA maximum daily civil penalty amount for inflation using the applicable 2019 multiplier (1.02522). Accordingly, BSEE multiplied the existing OCSLA maximum daily civil penalty amount ($43,576) by 1.02522 to arrive at the new maximum daily civil penalty amount ($44,674.99). The FCPIA of 2015 requires that the resulting amount be rounded to the nearest $1.00 at the end of the calculation process. Accordingly, the adjusted OCSLA maximum daily civil penalty for 2019 is $44,675. The adjusted penalty levels take effect immediately upon publication of this rule. Pursuant to the FCPIA of 2015, the increase in the OCSLA maximum daily civil penalty amount applies to civil penalties assessed after the date the increase takes effect, even when the associated violation(s) predates such increase. Consistent with the provisions of OCSLA and the FCPIA of 2015, this rule adjusts the following maximum civil monetary penalty per day per violation as follows: $43,576 E:\FR\FM\25MRR1.SGM 25MRR1 Multiplier 1.02522 Adjusted maximum penalty $44,675 Federal Register / Vol. 84, No. 57 / Monday, March 25, 2019 / Rules and Regulations III. Procedural Requirements A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771) Executive Order (E.O.) 12866 provides that the OMB Office of Information and Regulatory Affairs (OIRA) will review all significant rules. OIRA has determined that this rule is not significant. (See OMB Memorandum M– 19–04 at 3). 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. E.O. 13563 directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 further emphasizes that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this rule in a manner consistent with these requirements, to the extent permitted by statute. E.O. 13771 of January 30, 2017, directs Federal agencies to reduce the regulatory burden on regulated entities and control regulatory costs. E.O. 13771, however, applies only to significant regulatory actions, as defined in Section 3(f) of E.O. 12866. OIRA has determined that agency regulations implementing the annual adjustment required by the FCPIA of 2015 are not significant regulatory actions under E.O. 12866, provided they are consistent with OMB Memorandum M–19–04. (See OMB Memorandum M–19–04 at 3). 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 rules unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency is required to first publish a proposed rule. (See 5 U.S.C. 603(a) and 604(a)). The FCPIA of 2015 expressly exempts these annual inflation adjustments from the requirement to publish a proposed rule for notice and comment. (See FCPIA of 2015 at § 4(b)(2); OMB Memorandum M–19–04 at 4). Thus, the RFA does not apply to this rulemaking. VerDate Sep<11>2014 15:47 Mar 22, 2019 Jkt 247001 10991 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) Does 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; and (3) Does 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. government relationship with Indian tribes through a commitment to consultation with Indian tribes and recognition of their right to selfgovernance and tribal sovereignty. We have evaluated this rule under the Department of the Interior’s consultation policy, under Departmental Manual Part 512 Chapters 4 and 5, and under the criteria in E.O. 13175. We have determined that it has no substantial direct effects on Federallyrecognized Indian tribes or Alaska Native Claims Settlement Act (ANCSA) Corporations, and that consultation under the Department of the Interior’s tribal and ANCSA consultation policies is not required. 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. Therefore, a statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) 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. 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. To the extent that State and local governments have a role in Outer Continental Shelf activities, this rule will not affect that role. 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: (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- PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 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, as a regulation of an administrative nature, this rule is covered by a categorical exclusion (see 43 CFR 46.210(i)). BSEE also determined that the rule does not implicate any of the extraordinary circumstances listed in 43 CFR 46.215 that would require further analysis under NEPA. Therefore, a detailed statement under NEPA is not required. 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, Environmental impact statements, Environmental protection, Government contracts, Investigations, Oil and gas exploration, Penalties, Pipelines, Continental Shelf—mineral resources, Continental Shelf—rights-of-way, 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 BSEE amends title 30, chapter II, subchapter B, part 250 of the Code of Federal Regulations as follows. E:\FR\FM\25MRR1.SGM 25MRR1 10992 Federal Register / Vol. 84, No. 57 / Monday, March 25, 2019 / Rules and Regulations PART 250—OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER CONTINENTAL SHELF 1. The authority citation for 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 $44,675 per day per violation. [FR Doc. 2019–05671 Filed 3–22–19; 8:45 am] BILLING CODE 4310–VH–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Parts 100, 117, 147, and 165 [USCG–2019–0037] 2018 Quarterly Listings; Safety Zones, Security Zones, Special Local Regulations, Drawbridge Operation Regulations and Regulated Navigation Areas Coast Guard, DHS. Notification of expired temporary rules issued. AGENCY: ACTION: This document provides notification of substantive rules issued by the Coast Guard that were made temporarily effective but expired before they could be published in the Federal Register. This document lists temporary safety zones, security zones, special local regulations, drawbridge operation regulations and regulated navigation areas, all of limited duration and for SUMMARY: Docket No. USCG–2018–0926 USCG–2018–0804 USCG–2018–0954 USCG–2018–0911 USCG–2018–0904 USCG–2018–0797 USCG–2018–0809 USCG–2018–0927 USGC–2018–0896 USCG–2018–0943 USCG–2018–0887 USCG–2018–0969 USCG–2018–0938 USCG–2018–0867 USCG–2018–0978 USCG–2018–0883 USCG–2018–0837 USCG–2018–1000 VerDate Sep<11>2014 ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... which timely publication in the Federal Register was not possible. DATES: This document lists temporary Coast Guard rules that became effective, primarily between September 2018 and December 2018, unless otherwise indicated, and were terminated before they could be published in the Federal Register. ADDRESSES: Temporary rules listed in this document may be viewed online, under their respective docket numbers, using the Federal eRulemaking Portal at https://www.regulations.gov. FOR FURTHER INFORMATION CONTACT: For questions on this document contact Deborah Thomas, Office of Regulations and Administrative Law, telephone (202) 372–3864. SUPPLEMENTARY INFORMATION: Coast Guard District Commanders and Captains of the Port (COTP) must be immediately responsive to the safety and security needs within their jurisdiction; therefore, District Commanders and COTPs have been delegated the authority to issue certain local regulations. Safety zones may be established for safety or environmental purposes. A safety zone may be stationary and described by fixed limits or it may be described as a zone around a vessel in motion. Security zones limit access to prevent injury or damage to vessels, ports, or waterfront facilities. Special local regulations are issued to enhance the safety of participants and spectators at regattas and other marine events. Drawbridge operation regulations authorize changes to drawbridge schedules to accommodate bridge repairs, seasonal vessel traffic, and local public events. Regulated Navigation Areas are water areas within a defined boundary for which regulations for vessels navigating within the area have been established by the regional Coast Guard District Commander. Timely publication of these rules in the Federal Register may be precluded when a rule responds to an emergency, or when an event occurs without sufficient advance notice. The affected public is, however, often informed of these rules through Local Notices to Mariners, press releases, and other means. Moreover, actual notification is provided by Coast Guard patrol vessels enforcing the restrictions imposed by the rule. Because Federal Register publication was not possible before the end of the effective period, mariners were personally notified of the contents of these safety zones, security zones, special local regulations, regulated navigation areas or drawbridge operation regulations by Coast Guard officials on-scene prior to any enforcement action. However, the Coast Guard, by law, must publish in the Federal Register notice of substantive rules adopted. To meet this obligation without imposing undue expense on the public, the Coast Guard periodically publishes a list of these temporary safety zones, security zones, special local regulations, regulated navigation areas and drawbridge operation regulations. Permanent rules are not included in this list because they are published in their entirety in the Federal Register. Temporary rules are also published in their entirety if sufficient time is available to do so before they are placed in effect or terminated. The following unpublished rules were placed in effect temporarily during the period between September 2018 and December 2018 unless otherwise indicated. To view copies of these rules, visit www.regulations.gov and search by the docket number indicated in the following table. Type Location Security Zones (Part 165) .................................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Special Local Regulations (Part 100) .................. Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Security Zones (Part 165) .................................... Security Zones (Part 165) .................................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Safety Zones (Parts 147 and 165) ...................... Security Zones (Part 165) .................................... Wheeling, WV ...................................................... Bayville, NY .......................................................... Key West, FL ....................................................... Sister Bay, WI ...................................................... Osage Beach, MO ............................................... San Francisco, CA ............................................... Pittsburgh, PA ...................................................... Wilmington DE ..................................................... Capitola, CA ......................................................... San Francisco, CA ............................................... Moundsville, WV .................................................. Beaufort, SC ........................................................ New York Harbor ................................................. Pittsburgh, PA ...................................................... Florence, AL ......................................................... Manasquan, NJ .................................................... San Diego, CA ..................................................... Pittsburgh, PA ...................................................... 15:47 Mar 22, 2019 Jkt 247001 PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 E:\FR\FM\25MRR1.SGM 25MRR1 Effective date 9/29/2018 9/29/2018 10/2/2018 10/5/2018 10/5/2018 10/6/2018 10/6/2018 10/7/2018 10/7/2018 10/13/2018 10/14/2018 10/19/2018 10/19/2018 10/20/2018 10/20/2018 10/20/2018 10/27/2018 10/30/2018

Agencies

[Federal Register Volume 84, Number 57 (Monday, March 25, 2019)]
[Rules and Regulations]
[Pages 10989-10992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05671]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2019-0001; 190E1700D2 ETISF0000.EAQ000 EEEE500000]
RIN 1014-AA42


Oil and Gas and Sulfur Operations on the Outer Continental 
Shelf--Civil Penalty Inflation Adjustment

AGENCY: Bureau of Safety and Environmental Enforcement, Interior.

ACTION: Final rule.

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[[Page 10990]]

SUMMARY: This final rule adjusts the level of the maximum daily civil 
monetary penalty contained in the Bureau of Safety and Environmental 
Enforcement (BSEE) regulations for violations of the Outer Continental 
Shelf Lands Act (OCSLA), in accordance with the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 and Office of 
Management and Budget (OMB) guidance. The civil penalty inflation 
adjustment, using a 1.02522 multiplier, accounts for one year of 
inflation spanning from October 2017 to October 2018.

DATES: This rule is effective on March 25, 2019.

FOR FURTHER INFORMATION CONTACT: Stacey Noem, Safety and Enforcement 
Division, Bureau of Safety and Environmental Enforcement, (202) 208-
4005 or by email: regs@bsee.gov.

SUPPLEMENTARY INFORMATION:

I. Background and Legal Authority

    The OCSLA, at 43 U.S.C. 1350(b)(1), directs the Secretary of the 
Interior (Secretary) to adjust the OCSLA maximum daily civil penalty 
amount at least once every three years to reflect any increase in the 
Consumer Price Index (CPI) to account for inflation. On November 2, 
2015, the President signed into law the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 
114-74) (FCPIA of 2015). The FCPIA of 2015 required Federal agencies to 
adjust the level of civil monetary penalties with an initial ``catch-
up'' adjustment through rulemaking, if warranted, 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. Agencies were 
required to publish the first annual inflation adjustments in the 
Federal Register by no later than January 15, 2017, and must publish 
recurring annual inflation adjustments by no later than January 15 of 
each subsequent year. For this year's annual inflation adjustment, BSEE 
is publishing this rule after the statutory January 15 deadline because 
of a lapse in government funding that began on December 22, 2018, and 
ended on January 25, 2019.
    BSEE last updated the maximum daily civil penalty amounts in BSEE's 
regulations for OCSLA violations by a final rule published and 
effective on January 18, 2018. (See 83 FR 2538). Consistent with OMB 
guidance, BSEE's final rule implemented the inflation adjustments 
required by the FCPIA of 2015 through October 2017.
    The OMB Memorandum M-19-04 (Implementation of Penalty Inflation 
Adjustments for 2019, Pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015; available at https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf) explains 
agency responsibilities for: Identifying applicable penalties and 
performing the annual adjustment; publishing revisions to regulations 
to implement the adjustment in the Federal Register; applying adjusted 
penalty levels; and performing agency oversight of inflation 
adjustments.
    BSEE is promulgating this 2019 inflation adjustment for the OCSLA 
maximum daily civil penalties as a final rule pursuant to the 
provisions of the FCPIA of 2015 and OMB's guidance. A proposed rule is 
not required because the FCPIA of 2015 expressly exempted the annual 
inflation adjustments implemented pursuant to the FCPIA of 2015 from 
the pre-promulgation notice and comment requirements of the 
Administrative Procedure Act, 5 U.S.C. 553 et seq. (the APA), allowing 
those adjustments to be published directly as final rules. 
Specifically, the FCPIA of 2015 states that agencies shall adjust civil 
monetary penalties ``notwithstanding Section 553 of the Administrative 
Procedure Act.'' (FCPIA of 2015 at section 4(b)(2)). This 
interpretation of the FCPIA of 2015 is confirmed by OMB Memorandum M-
19-04 at 4 (``This means that the public procedure the APA generally 
requires (i.e., notice, an opportunity for comment, and a delay in 
effective date) is not required for agencies to issue regulations 
implementing the annual adjustment.'').

II. Calculation of Adjustments

    In accordance with the FCPIA of 2015 and the guidance provided in 
OMB Memorandum M-19-04, BSEE has calculated the necessary inflation 
adjustment for the maximum daily civil monetary penalty amount in 30 
CFR 250.1403 for violations of OCSLA. The previous OCSLA civil penalty 
inflation adjustment accounted for inflation through October 2017. The 
required annual civil penalty inflation adjustment promulgated through 
this rule accounts for inflation through October 2018.
    Annual inflation adjustments are based on the percent change 
between the Consumer Price Index for all Urban Consumers (CPI-U) for 
the October preceding the date of the adjustment, and the prior year's 
October CPI-U. Consistent with the guidance in OMB Memorandum M-19-04, 
BSEE divided the October 2018 CPI-U by the October 2017 CPI-U to 
calculate the multiplying factor. In this case, the October 2018 CPI-U 
(252.885) divided by the October 2017 CPI-U (246.663) is 1.02522. OMB 
Memorandum M-19-04 confirms that this is the proper multiplier. (OMB 
Memorandum M-19-04 at 1, n.4).
    The FCPIA of 2015 requires that BSEE adjust the OCSLA maximum daily 
civil penalty amount for inflation using the applicable 2019 multiplier 
(1.02522). Accordingly, BSEE multiplied the existing OCSLA maximum 
daily civil penalty amount ($43,576) by 1.02522 to arrive at the new 
maximum daily civil penalty amount ($44,674.99). The FCPIA of 2015 
requires that the resulting amount be rounded to the nearest $1.00 at 
the end of the calculation process. Accordingly, the adjusted OCSLA 
maximum daily civil penalty for 2019 is $44,675.
    The adjusted penalty levels take effect immediately upon 
publication of this rule. Pursuant to the FCPIA of 2015, the increase 
in the OCSLA maximum daily civil penalty amount applies to civil 
penalties assessed after the date the increase takes effect, even when 
the associated violation(s) predates such increase. Consistent with the 
provisions of OCSLA and the FCPIA of 2015, this rule adjusts the 
following maximum civil monetary penalty per day per violation as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                      Current                        Adjusted
            CFR citation              Description of the penalty      maximum       Multiplier        maximum
                                                                      penalty                         penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 250.1403....................  Failure to comply per-day,          $43,576         1.02522         $44,675
                                      per-violation..
----------------------------------------------------------------------------------------------------------------


[[Page 10991]]

III. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771)

    Executive Order (E.O.) 12866 provides that the OMB Office of 
Information and Regulatory Affairs (OIRA) will review all significant 
rules. OIRA has determined that this rule is not significant. (See OMB 
Memorandum M-19-04 at 3).
    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. 
E.O. 13563 directs agencies to consider regulatory approaches that 
reduce burdens and maintain flexibility and freedom of choice for the 
public where these approaches are relevant, feasible, and consistent 
with regulatory objectives. E.O. 13563 further emphasizes that 
regulations must be based on the best available science and that the 
rulemaking process must allow for public participation and an open 
exchange of ideas. We have developed this rule in a manner consistent 
with these requirements, to the extent permitted by statute.
    E.O. 13771 of January 30, 2017, directs Federal agencies to reduce 
the regulatory burden on regulated entities and control regulatory 
costs. E.O. 13771, however, applies only to significant regulatory 
actions, as defined in Section 3(f) of E.O. 12866. OIRA has determined 
that agency regulations implementing the annual adjustment required by 
the FCPIA of 2015 are not significant regulatory actions under E.O. 
12866, provided they are consistent with OMB Memorandum M-19-04. (See 
OMB Memorandum M-19-04 at 3). 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 rules unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. The RFA applies only to rules for 
which an agency is required to first publish a proposed rule. (See 5 
U.S.C. 603(a) and 604(a)). The FCPIA of 2015 expressly exempts these 
annual inflation adjustments from the requirement to publish a proposed 
rule for notice and comment. (See FCPIA of 2015 at Sec.  4(b)(2); OMB 
Memorandum M-19-04 at 4). 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) Does 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; and
    (3) Does 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. Therefore, 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. To the extent that State and local 
governments have a role in Outer Continental Shelf activities, this 
rule will not affect that role. 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:
    (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. We have determined that it has no substantial direct 
effects on Federally-recognized Indian tribes or Alaska Native Claims 
Settlement Act (ANCSA) Corporations, and that consultation under the 
Department of the Interior's tribal and ANCSA consultation policies is 
not required.

I. Paperwork Reduction Act

    This rule does not contain information collection requirements, and 
a submission to the OMB under the Paperwork Reduction Act (44 U.S.C. 
3501 et seq.) is not required.

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, as a regulation of an administrative nature, this 
rule is covered by a categorical exclusion (see 43 CFR 46.210(i)). BSEE 
also determined that the rule does not implicate any of the 
extraordinary circumstances listed in 43 CFR 46.215 that would require 
further analysis under NEPA. Therefore, a detailed statement under NEPA 
is not required.

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, 
Environmental impact statements, Environmental protection, Government 
contracts, Investigations, Oil and gas exploration, Penalties, 
Pipelines, Continental Shelf--mineral resources, Continental Shelf--
rights-of-way, 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 BSEE amends title 30, 
chapter II, subchapter B, part 250 of the Code of Federal Regulations 
as follows.

[[Page 10992]]

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

0
1. The authority citation for 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.


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


Sec.  250.1403  What is the maximum civil penalty?

    The maximum civil penalty is $44,675 per day per violation.

[FR Doc. 2019-05671 Filed 3-22-19; 8:45 am]
BILLING CODE 4310-VH-P
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