2023 Civil Penalties Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer Continental Shelf, 9749-9752 [2023-03217]

Download as PDF Federal Register / Vol. 88, No. 31 / Wednesday, February 15, 2023 / Rules and Regulations § 180.671 Assessing civil penalties for Fair Housing Act cases. DEPARTMENT OF THE INTERIOR (a) * * * (1) $24,793, if the respondent has not been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act or any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a Federal, State, or local governmental agency, to have committed any prior discriminatory housing practice. (2) $61,982, if the respondent has been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a Federal, State, or local government agency, to have committed one other discriminatory housing practice and the adjudication was made during the 5-year period preceding the date of filing of the charge. (3) $123,965, if the respondent has been adjudged in any administrative hearings or civil actions permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a Federal, state, or local government agency, to have committed two or more discriminatory housing practices and the adjudications were made during the 7-year period preceding the date of filing of the charge. * * * * * Bureau of Ocean Energy Management PART 3282—MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS 18. The authority citation for part 3282 continues to read as follows: ■ Authority: 15 U.S.C. 2967; 42 U.S.C. 3535(d), 5403, and 5424. 19. Revise § 3282.10 to read as follows: ■ ddrumheller on DSK120RN23PROD with RULES § 3282.10 Civil and criminal penalties. Failure to comply with these regulations may subject the party in question to the civil and criminal penalties provided for in section 611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed under section 611 of the Act shall be $3,446 for each violation, up to a maximum of $4,307,160 for any related series of violations occurring within one year from the date of the first violation. Damon Smith, General Counsel. [FR Doc. 2023–03142 Filed 2–14–23; 8:45 am] BILLING CODE 4210–67–P VerDate Sep<11>2014 23:37 Feb 14, 2023 Jkt 259001 30 CFR Parts 550 and 553 RIN 1010–AE17 2023 Civil Penalties Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer Continental Shelf Bureau of Ocean Energy Management, Interior. ACTION: Final rule. AGENCY: This final rule implements the 2023 inflation adjustments to the maximum daily civil monetary penalties contained in the Bureau of Ocean Energy Management (BOEM) regulations for violations of the Outer Continental Shelf Lands Act (OCSLA) and the Oil Pollution Act of 1990 (OPA), pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Improvements Act) and relevant Office of Management and Budget (OMB) guidance. The 2023 adjustment multiplier of 1.07745 accounts for 1 year of inflation from October 2021 through October 2022. DATES: This rule is effective on February 15, 2023. FOR FURTHER INFORMATION CONTACT: Questions regarding the inflation adjustment methodology or amount should be directed to Martin Heinze, Economics Division, BOEM, at martin.heinze@boem.gov or at (703) 787–1010. Questions regarding the timing of this adjustment or the applicability of the regulations should be directed to Satrina Lord, Office of Regulations, BOEM at satrina.lord@ boem.gov or at (703) 787–1250. SUPPLEMENTARY INFORMATION: SUMMARY: I. Legal Authority II. Background and Purpose III. Calculation of the 2023 Adjustments IV. Statutory and Executive Order Reviews A. Statutes 1. National Environmental Policy Act 2. Regulatory Flexibility Act 3. Paperwork Reduction Act 4. Unfunded Mandates Reform Act 5. Small Business Regulatory Enforcement Fairness Act 6. Congressional Review Act B. Executive Orders (E.O.) 1. Governmental Actions and Interference With Constitutionally Protected Property Rights (E.O. 12630) 2. Regulatory Planning and Review (E.O. 12866); Improving Regulation and Regulatory Review (E.O. 13563) 3. Civil Justice Reform (E.O. 12988) 4. Federalism (E.O. 13132) Frm 00005 Fmt 4700 Sfmt 4700 5. Consultation and Coordination With Indian Tribal Governments (E.O. 13175) 6. Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use (E.O. 13211) I. Legal Authority [Docket ID: BOEM–2023–0001] PO 00000 9749 OCSLA authorizes the Secretary of the Interior (the Secretary) to impose a daily civil monetary penalty for a violation of OCSLA or its implementing regulations, leases, permits, or orders. It also directs the Secretary to adjust the maximum penalty at least every 3 years to reflect any inflation increase in the Consumer Price Index. 43 U.S.C. 1350(b)(1). Similarly, OPA authorizes civil monetary penalties for failure to comply with OPA’s financial responsibility provisions or their implementing regulations. 33 U.S.C. 2716a(a). OPA does not include a maximum daily civil penalty inflation adjustment provision. Id. The Improvements Act 1 requires that Federal agencies publish inflation adjustments to their civil monetary penalties in the Federal Register not later than January 15 annually.2 Public Law 114–74, sec. 701(b)(1). The purposes of these inflation adjustments are to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes. Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101–410, sec. 2 (codified at 28 U.S.C. 2461 note). II. Background and Purpose BOEM implemented the 2022 inflation adjustment for its civil monetary penalties through a final rule entitled ‘‘2022 Civil Penalties Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer Continental Shelf,’’ which was published in the Federal Register. 87 FR 15333 (March 18, 2022). That rule accounted for inflation for the 12-month period between October 2020 and October 2021. The OMB memorandum M–23–05 3 reiterates agency responsibilities under 1 The Improvements Act amended the Federal Civil Penalties Inflation Adjustment Act of 1990. See Public Law 101–410 (codified at 28 U.S.C. 2461 note). 2 Under the Improvements Act, Federal agencies were required to adjust their civil monetary penalties for inflation with an initial ‘‘catch-up’’ adjustment through an interim final rulemaking in 2016 and must make subsequent inflation adjustments not later than January 15 annually, beginning in 2017. Public Law 114–74, sec. 701(b)(1). 3 OMB Memorandum M–23–05 ‘‘Implementation of Penalty Inflation Adjustments for 2023, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015’’ is available at https://www.whitehouse.gov/wp-content/uploads/ 2022/12/M-23-05-CMP-CMP-Guidance.pdf). E:\FR\FM\15FER1.SGM 15FER1 9750 Federal Register / Vol. 88, No. 31 / Wednesday, February 15, 2023 / Rules and Regulations the Improvements Act. Such responsibilities include identifying applicable penalties and performing the annual adjustment; publishing revisions to regulations to implement the adjustment in the Federal Register; applying adjusted penalty dollar amounts; and performing agency oversight of inflation adjustments. Pursuant to the Improvements Act, this final rule implements BOEM’s 2023 inflation adjustments to OCSLA and OPA maximum daily civil monetary penalties. A proposed rule is unnecessary as the Improvements Act expressly exempts annual civil penalty inflation adjustments from the Administrative Procedure Act’s (APA) notice of proposed rulemaking, public comment, and standard effective date provisions. Improvements Act, Public Law 114–74, sec. 701(b)(1)(D); APA, 5 U.S.C. 553.4 On July 22, 2021, BOEM issued a final rule entitled ‘‘Maximum Daily Civil Penalty Amounts for Violations of the Federal Oil and Gas Royalty Management Act’’ (RIN 1010–AE08, 86 FR 38557), which amended those BOEM regulations that set maximum daily civil penalty (MDCP) amounts for violations of the Federal Oil and Gas Royalty Management Act (FOGRMA). BOEM amended its regulations to crossreference the Office of Natural III. Calculation of the 2023 Adjustments In accordance with the Improvements Act, BOEM determined that OCSLA and OPA maximum daily civil monetary penalties require annual inflation adjustments and issues this final rule adjusting those penalty amounts for inflation through October 2022. The annual inflation adjustment is 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 OMB M–23–05, the 2023 inflation adjustment multiplier can Description of the penalty 30 CFR 550.1403 (OCSLA) ............................ 30 CFR 553.51(a) (OPA) ................................ Failure to comply per day per violation ......... Failure to comply per day per violation ......... A. Statutes 1. National Environmental Policy Act This rule does not constitute a major Federal action under the National Environmental Policy Act of 1969 (NEPA) because the civil penalty adjustments are required by law (see 40 CFR 1508.1(q)(1)(ii)). The Improvements Act requires BOEM to annually adjust the amounts of its civil penalties to account for inflation as measured by the Department of Labor’s Consumer Price Index. Accordingly, BOEM has no discretion in the execution of the civil penalty adjustments reflected in this final rule. Because this rule is not a 4 Specifically, Congress directed that agencies adjust civil monetary penalties ‘‘notwithstanding section 553 of title 5, United States Code [Administrative Procedure Act (APA)],’’ which generally requires prior notice of proposed rulemaking, opportunity for public comment on VerDate Sep<11>2014 23:37 Feb 14, 2023 Jkt 259001 be calculated by dividing the October 2022 CPI–U by the October 2021 CPI– U. In this case, October 2022 CPI–U (298.012)/October 2021 CPI–U (276.589) = 1.07745. For 2023, BOEM multiplied the current OCSLA maximum daily civil monetary penalty of $48,862 by the multiplier 1.07745 to equal $52,646.36. The Improvements Act requires that the resulting amount then be rounded to the nearest dollar. Accordingly, the 2023 adjusted OCSLA maximum daily civil monetary penalty is $52,646. For 2023, BOEM multiplied the current OPA maximum daily civil penalty amount of $51,796 by the multiplier 1.07745 to equal $55,807.60. The Improvements Act requires that the resulting amount then be rounded to the nearest dollar. Accordingly, the 2023 adjusted OPA maximum daily civil monetary penalty is $55,808. The adjusted penalty amounts take effect immediately upon publication of this rule. Under the Improvements Act, the adjusted amounts apply to civil penalties assessed after the date the increase takes effect, even if the associated violation predates the increase. This table summarizes BOEM’s 2023 maximum daily civil monetary penalties for each OCSLA and OPA violation: Current maximum penalty CFR citation IV. Statutory and Executive Order Reviews ddrumheller on DSK120RN23PROD with RULES Resources Revenue (ONRR) regulations that also set MDCP amounts for FOGRMA violations. This crossreference ensured consistency between BOEM’s FOGRMA MDCP amounts and ONRR’s FOGRMA MDCP amounts. It also ensured consistent compliance with the Improvements Act and related OMB guidance while reducing unnecessary duplication of effort and costs to BOEM. Because that rule established a permanent cross-reference between BOEM’s FOGRMA civil penalties amounts and those of ONRR, the BOEM FOGRMA civil penalties are not being adjusted with this rulemaking (which is now confined to civil penalties unrelated to FOGRMA). $48,862 51,796 Multiplier 1.07745 1.07745 Adjusted maximum penalty $52,646 55,808 major Federal action, it is therefore not subject to the requirements of NEPA. Even if this were a discretionary action subject to NEPA, which it is not, a detailed statement under NEPA would not be required because, as a regulation of an administrative nature, this rule would be covered by a categorical exclusion (see 43 CFR 46.210(i)). Moreover, BOEM determined that the rule does not implicate any of the extraordinary circumstances listed in 43 CFR 46.215 that would prevent reliance on the categorical exclusion. Therefore, a detailed statement under NEPA is not required. 2. Regulatory Flexibility Act proposed rulemaking, and publication of a final rule at least 30 days before its effective date. Improvements Act, sec. 701(b)(1)(D); APA, 5 U.S.C. 553. OMB confirmed this interpretation of the Improvements Act. OMB M–23–05 at 3–4 (‘‘This means that the public procedure the APA generally requires—notice, an opportunity for comment, and a delay in effective date—is not required for agencies to issue regulations implementing the annual adjustment.’’). PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 The Regulatory Flexibility Act (RFA, 5 U.S.C. 601 et seq.) 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. However, 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 Improvements Act expressly exempts these annual inflation adjustments from the requirement to publish a proposed rule for notice and comment. Improvements Act, Public Law 114–74, sec. 701(b)(1)(D); OMB M–23–05 at 3–4. E:\FR\FM\15FER1.SGM 15FER1 Federal Register / Vol. 88, No. 31 / Wednesday, February 15, 2023 / Rules and Regulations Thus, the RFA does not apply to this rulemaking. 3. Paperwork Reduction Act This rule does not contain information collection requirements, and, therefore, a submission to OMB under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) is not required. 4. Unfunded Mandates Reform Act of 1995 This rule does not impose an unfunded mandate on State, local, or Tribal governments, or on the private sector, of more than $100 million per year (adjusted for inflation). The rule does not have a significant or unique effect on State, local, or Tribal governments, or on 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. 5. Small Business Regulatory Enforcement Fairness Act This rule is not a major rule under 5 U.S.C. 804(2). This rule: (a) will not have an annual effect on the economy of $100 million or more; (b) will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; and (c) will not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. 6. Congressional Review Act Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.) and OMB guidance,5 this rule is not a major rule, as defined by that act. 5 U.S.C. 804(2). B. Executive Orders (E.O.) ddrumheller on DSK120RN23PROD with RULES 1. Governmental Actions and Interference With Constitutionally Protected Property Rights (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. 2. Regulatory Planning and Review (E.O. 12866); Improving Regulation and Regulatory Review (E.O. 13563) E.O. 12866 provides that the Office of Information and Regulatory Affairs 5 See Office of Mgmt. & Budget, Exec. Office of the President, OMB M–19–14, Guidance on Compliance with the Congressional Review Act (2019), available at https://www.whitehouse.gov/ wp-content/uploads/2019/04/M-19-14.pdf; OMB Memorandum M–23–05 at 3. VerDate Sep<11>2014 23:37 Feb 14, 2023 Jkt 259001 (OIRA) will review all significant rules. OIRA determined that annual civil penalty inflation adjustment rules are not significant if they exclusively implement the annual inflation adjustment consistent with OMB guidance and have an annual impact of less than $100 million. See OMB Memorandum M–23–05 at 3. This rule meets those conditions and, thus, is not a significant rule. 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 for 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. 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. However, BOEM is using neither science nor public participation in this rulemaking. Congress directed agencies to adjust the maximum daily civil penalty amounts using a particular equation without public participation. BOEM does not have discretion to use any other factor in the adjustment. BOEM has developed this rule in a manner consistent with the requirements in E.O. 13563 to the extent relevant and feasible given the limited discretion provided agencies under the Improvements Act. 3. 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. 4. 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. This rule merely adjusts the dollar amount of civil monetary penalties that BOEM may impose on its lessees and has no effects on any action of State or local PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 9751 governments. Therefore, a federalism summary impact statement is not required. 5. Consultation and Coordination With Indian Tribal Governments (E.O. 13175) The Department of the Interior and BOEM strive to strengthen their government-to-government relationships with Indian Tribes through a commitment to consultation with Indian Tribes and recognition of the Tribes’ right to self-governance and Tribal sovereignty. BOEM evaluated this rule under the Department of the Interior’s consultation policy, Departmental Manual part 512 chapters 4 and 5, and E.O. 13175, and determined that this rule has no substantial direct effects on federally recognized Indian Tribes or Alaska Native Claims Settlement Act Corporations and that consultation under existing Department and BOEM policies is not required. 6. Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use (E.O. 13211) This rule is not a ‘‘significant energy action’’ under the definition of that term found in E.O. 13211. Therefore, a statement of energy effects is not required. List of Subjects 30 CFR Part 550 Administrative practice and procedure, Continental shelf, Environmental impact statements, Environmental protection, Federal lands, Government contracts, Investigations, Mineral resources, Oil and gas exploration, Outer continental shelf, Penalties, Pipelines, Reporting and recordkeeping requirements, Rightsof-way, Sulfur. 30 CFR Part 553 Administrative practice and procedure, Continental shelf, Financial responsibility, Liability, Limit of liability, Oil and gas exploration, Oil pollution, Outer continental shelf, Penalties, Pipelines, Reporting and recordkeeping requirements, Rights-ofway, Surety bonds, Treasury securities. Laura Daniel-Davis, Principal Deputy Assistant Secretary, Land and Minerals Management. For the reasons stated in the preamble, BOEM amends 30 CFR parts 550 and 553 as follows: E:\FR\FM\15FER1.SGM 15FER1 9752 Federal Register / Vol. 88, No. 31 / Wednesday, February 15, 2023 / Rules and Regulations PART 550—OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER CONTINENTAL SHELF SUPPLEMENTARY INFORMATION FOR FURTHER INFORMATION CONTACT: 1. The authority citation for part 550 continues to read as follows: ■ Authority: 30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334. 2. Revise § 550.1403 to read as follows: ■ § 550.1403 penalty? Electronic Availability This document and additional information concerning OFAC are available on OFAC’s website: www.treas.gov/ofac. The maximum civil penalty is $52,646 per day per violation. PART 553—OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE FACILITIES Background 3. The authority citation for part 553 continues to read as follows: ■ Authority: 33 U.S.C. 2704, 2716; E.O. 12777, as amended. 4. Revise § 553.51(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 $55,808 per COF per day of violation (that is, each day a COF is operated without acceptable evidence of OSFR). * * * * * [FR Doc. 2023–03217 Filed 2–14–23; 8:45 am] BILLING CODE 4340–98–P DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Part 587 Publication of Russian Harmful Foreign Activities Sanctions Regulations Web General Licenses 6C, 28B, and 54A Office of Foreign Assets Control, Treasury. ACTION: Publication of web general licenses. AGENCY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing three general licenses (GLs) issued pursuant to the Russian Harmful Foreign Activities Sanctions Regulations: GLs 6C, 28B, and 54A, each of which were previously made available on OFAC’s website. DATES: GLs 6C, 28B, and 54A were issued on January 17, 2023. See ddrumheller on DSK120RN23PROD with RULES VerDate Sep<11>2014 23:37 Feb 14, 2023 Jkt 259001 OFAC: Assistant Director for Licensing, 202–622–2480; Assistant Director for Regulatory Affairs, 202–622–4855; or Assistant Director for Sanctions Compliance & Evaluation, 202–622– 2490. SUPPLEMENTARY INFORMATION: What is the maximum civil SUMMARY: for additional relevant dates. On January 17, 2023, OFAC issued GLs 6C, 28B, and 54A to authorize certain transactions otherwise prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587. These GLs superseded GLs 6B, 28A, and 54, respectively. Each GL was made available on OFAC’s website (www.treas.gov/ofac) when it was issued. The text of these GLs is provided below. OFFICE OF FOREIGN ASSETS CONTROL Russian Harmful Foreign Activities Sanctions Regulations 31 CFR Part 587 GENERAL LICENSE NO. 6C Transactions Related to Agricultural Commodities, Medicine, Medical Devices, Replacement Parts and Components, or Software Updates, the Coronavirus Disease 2019 (COVID–19) Pandemic, or Clinical Trials (a) Except as provided in paragraph (c) of this general license, all transactions prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587, related to: (1) the production, manufacturing, sale, transport, or provision of agricultural commodities, agricultural equipment, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices; (2) the prevention, diagnosis, or treatment of COVID–19 (including research or clinical studies relating to COVID–19); or (3) clinical trials and other medical research activities are authorized. (b) For the purposes of this general license, agricultural commodities, medicine, and medical devices are defined as follows: (1) Agricultural commodities. For the purposes of this general license, agricultural commodities are products that fall within the term ‘‘agricultural commodity’’ as defined in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602) and are intended for use as: (i) Food for humans (including raw, processed, and packaged foods; live animals; PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 vitamins and minerals; food additives or supplements; and bottled drinking water) or animals (including animal feeds); (ii) Seeds for food crops; (iii) Fertilizers or organic fertilizers; or (iv) Reproductive materials (such as live animals, fertilized eggs, embryos, and semen) for the production of food animals. (2) Medicine. For the purposes of this general license, medicine is an item that falls within the definition of the term ‘‘drug’’ in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321). (3) Medical devices. For the purposes of this general license, a medical device is an item that falls within the definition of ‘‘device’’ in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321). (c) This general license does not authorize: (1) The opening or maintaining of a correspondent account or payable-through account for or on behalf of any entity subject to Directive 2 under Executive Order (E.O.) 14024, Prohibitions Related to Correspondent or Payable-Through Accounts and Processing of Transactions Involving Certain Foreign Financial Institutions; (2) Any debit to an account on the books of a U.S. financial institution of the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation; or (3) Transactions prohibited by E.O. 14066, E.O. 14068, or E.O. 14071, except for transactions prohibited solely by the determination of May 8, 2022, made pursuant to section 1(a)(ii) of E.O. 14071, ‘‘Prohibitions Related to Certain Accounting, Trust and Corporate Formation, and Management Consulting Services’’. (d) Effective January 17, 2023, General License No. 6B, dated July 14, 2022, is replaced and superseded in its entirety by this General License No. 6C. Note: 1 to General License No. 6C: Transactions prohibited by E.O. 14066, E.O. 14068, and E.O. 14071 include new investment in the Russian Federation and the importation into the United States of certain products of Russian Federation origin, such as alcoholic beverages and fish, seafood, or preparations thereof. Note: 2 to General License No. 6C: Nothing in this general license relieves any person from compliance with any other Federal laws or requirements of other Federal agencies. Andrea M. Gacki, Director, Office of Foreign Assets Control. Dated: January 17, 2023. OFFICE OF FOREIGN ASSETS CONTROL Russian Harmful Foreign Activities Sanctions Regulations 31 CFR Part 587 GENERAL LICENSE NO. 28B Authorizing the Wind Down and Rejection of Certain Transactions Involving Public Joint Stock Company Transkapitalbank and Afghanistan (a) Except as provided in paragraph (c) of this general license, all transactions that are ordinarily incident and necessary to the wind E:\FR\FM\15FER1.SGM 15FER1

Agencies

[Federal Register Volume 88, Number 31 (Wednesday, February 15, 2023)]
[Rules and Regulations]
[Pages 9749-9752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03217]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

30 CFR Parts 550 and 553

[Docket ID: BOEM-2023-0001]
RIN 1010-AE17


2023 Civil Penalties Inflation Adjustments for Oil, Gas, and 
Sulfur Operations in the Outer Continental Shelf

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final rule.

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SUMMARY: This final rule implements the 2023 inflation adjustments to 
the maximum daily civil monetary penalties contained in the Bureau of 
Ocean Energy Management (BOEM) regulations for violations of the Outer 
Continental Shelf Lands Act (OCSLA) and the Oil Pollution Act of 1990 
(OPA), pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Improvements Act) and relevant Office of 
Management and Budget (OMB) guidance. The 2023 adjustment multiplier of 
1.07745 accounts for 1 year of inflation from October 2021 through 
October 2022.

DATES: This rule is effective on February 15, 2023.

FOR FURTHER INFORMATION CONTACT: Questions regarding the inflation 
adjustment methodology or amount should be directed to Martin Heinze, 
Economics Division, BOEM, at [email protected] or at (703) 787-
1010. Questions regarding the timing of this adjustment or the 
applicability of the regulations should be directed to Satrina Lord, 
Office of Regulations, BOEM at [email protected] or at (703) 787-
1250.

SUPPLEMENTARY INFORMATION:

I. Legal Authority
II. Background and Purpose
III. Calculation of the 2023 Adjustments
IV. Statutory and Executive Order Reviews
    A. Statutes
    1. National Environmental Policy Act
    2. Regulatory Flexibility Act
    3. Paperwork Reduction Act
    4. Unfunded Mandates Reform Act
    5. Small Business Regulatory Enforcement Fairness Act
    6. Congressional Review Act
    B. Executive Orders (E.O.)
    1. Governmental Actions and Interference With Constitutionally 
Protected Property Rights (E.O. 12630)
    2. Regulatory Planning and Review (E.O. 12866); Improving 
Regulation and Regulatory Review (E.O. 13563)
    3. Civil Justice Reform (E.O. 12988)
    4. Federalism (E.O. 13132)
    5. Consultation and Coordination With Indian Tribal Governments 
(E.O. 13175)
    6. Actions Concerning Regulations That Significantly Affect 
Energy Supply, Distribution, or Use (E.O. 13211)

I. Legal Authority

    OCSLA authorizes the Secretary of the Interior (the Secretary) to 
impose a daily civil monetary penalty for a violation of OCSLA or its 
implementing regulations, leases, permits, or orders. It also directs 
the Secretary to adjust the maximum penalty at least every 3 years to 
reflect any inflation increase in the Consumer Price Index. 43 U.S.C. 
1350(b)(1). Similarly, OPA authorizes civil monetary penalties for 
failure to comply with OPA's financial responsibility provisions or 
their implementing regulations. 33 U.S.C. 2716a(a). OPA does not 
include a maximum daily civil penalty inflation adjustment provision. 
Id.
    The Improvements Act \1\ requires that Federal agencies publish 
inflation adjustments to their civil monetary penalties in the Federal 
Register not later than January 15 annually.\2\ Public Law 114-74, sec. 
701(b)(1). The purposes of these inflation adjustments are to maintain 
the deterrent effect of civil penalties and to further the policy goals 
of the underlying statutes. Federal Civil Penalties Inflation 
Adjustment Act of 1990, Public Law 101-410, sec. 2 (codified at 28 
U.S.C. 2461 note).
---------------------------------------------------------------------------

    \1\ The Improvements Act amended the Federal Civil Penalties 
Inflation Adjustment Act of 1990. See Public Law 101-410 (codified 
at 28 U.S.C. 2461 note).
    \2\ Under the Improvements Act, Federal agencies were required 
to adjust their civil monetary penalties for inflation with an 
initial ``catch-up'' adjustment through an interim final rulemaking 
in 2016 and must make subsequent inflation adjustments not later 
than January 15 annually, beginning in 2017. Public Law 114-74, sec. 
701(b)(1).
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II. Background and Purpose

    BOEM implemented the 2022 inflation adjustment for its civil 
monetary penalties through a final rule entitled ``2022 Civil Penalties 
Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer 
Continental Shelf,'' which was published in the Federal Register. 87 FR 
15333 (March 18, 2022). That rule accounted for inflation for the 12-
month period between October 2020 and October 2021.
    The OMB memorandum M-23-05 \3\ reiterates agency responsibilities 
under

[[Page 9750]]

the Improvements Act. Such responsibilities include identifying 
applicable penalties and performing the annual adjustment; publishing 
revisions to regulations to implement the adjustment in the Federal 
Register; applying adjusted penalty dollar amounts; and performing 
agency oversight of inflation adjustments.
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    \3\ OMB Memorandum M-23-05 ``Implementation of Penalty Inflation 
Adjustments for 2023, Pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015'' is available at 
https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-05-CMP-CMP-Guidance.pdf).
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    Pursuant to the Improvements Act, this final rule implements BOEM's 
2023 inflation adjustments to OCSLA and OPA maximum daily civil 
monetary penalties. A proposed rule is unnecessary as the Improvements 
Act expressly exempts annual civil penalty inflation adjustments from 
the Administrative Procedure Act's (APA) notice of proposed rulemaking, 
public comment, and standard effective date provisions. Improvements 
Act, Public Law 114-74, sec. 701(b)(1)(D); APA, 5 U.S.C. 553.\4\
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    \4\ Specifically, Congress directed that agencies adjust civil 
monetary penalties ``notwithstanding section 553 of title 5, United 
States Code [Administrative Procedure Act (APA)],'' which generally 
requires prior notice of proposed rulemaking, opportunity for public 
comment on proposed rulemaking, and publication of a final rule at 
least 30 days before its effective date. Improvements Act, sec. 
701(b)(1)(D); APA, 5 U.S.C. 553. OMB confirmed this interpretation 
of the Improvements Act. OMB M-23-05 at 3-4 (``This means that the 
public procedure the APA generally requires--notice, an opportunity 
for comment, and a delay in effective date--is not required for 
agencies to issue regulations implementing the annual 
adjustment.'').
---------------------------------------------------------------------------

    On July 22, 2021, BOEM issued a final rule entitled ``Maximum Daily 
Civil Penalty Amounts for Violations of the Federal Oil and Gas Royalty 
Management Act'' (RIN 1010-AE08, 86 FR 38557), which amended those BOEM 
regulations that set maximum daily civil penalty (MDCP) amounts for 
violations of the Federal Oil and Gas Royalty Management Act (FOGRMA). 
BOEM amended its regulations to cross-reference the Office of Natural 
Resources Revenue (ONRR) regulations that also set MDCP amounts for 
FOGRMA violations. This cross-reference ensured consistency between 
BOEM's FOGRMA MDCP amounts and ONRR's FOGRMA MDCP amounts. It also 
ensured consistent compliance with the Improvements Act and related OMB 
guidance while reducing unnecessary duplication of effort and costs to 
BOEM. Because that rule established a permanent cross-reference between 
BOEM's FOGRMA civil penalties amounts and those of ONRR, the BOEM 
FOGRMA civil penalties are not being adjusted with this rulemaking 
(which is now confined to civil penalties unrelated to FOGRMA).

III. Calculation of the 2023 Adjustments

    In accordance with the Improvements Act, BOEM determined that OCSLA 
and OPA maximum daily civil monetary penalties require annual inflation 
adjustments and issues this final rule adjusting those penalty amounts 
for inflation through October 2022. The annual inflation adjustment is 
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 OMB M-
23-05, the 2023 inflation adjustment multiplier can be calculated by 
dividing the October 2022 CPI-U by the October 2021 CPI-U. In this 
case, October 2022 CPI-U (298.012)/October 2021 CPI-U (276.589) = 
1.07745.
    For 2023, BOEM multiplied the current OCSLA maximum daily civil 
monetary penalty of $48,862 by the multiplier 1.07745 to equal 
$52,646.36. The Improvements Act requires that the resulting amount 
then be rounded to the nearest dollar. Accordingly, the 2023 adjusted 
OCSLA maximum daily civil monetary penalty is $52,646.
    For 2023, BOEM multiplied the current OPA maximum daily civil 
penalty amount of $51,796 by the multiplier 1.07745 to equal 
$55,807.60. The Improvements Act requires that the resulting amount 
then be rounded to the nearest dollar. Accordingly, the 2023 adjusted 
OPA maximum daily civil monetary penalty is $55,808.
    The adjusted penalty amounts take effect immediately upon 
publication of this rule. Under the Improvements Act, the adjusted 
amounts apply to civil penalties assessed after the date the increase 
takes effect, even if the associated violation predates the increase.
    This table summarizes BOEM's 2023 maximum daily civil monetary 
penalties for each OCSLA and OPA violation:

----------------------------------------------------------------------------------------------------------------
                                                                      Current                        Adjusted
             CFR citation                  Description of the         maximum       Multiplier        maximum
                                                 penalty              penalty                         penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 550.1403 (OCSLA)...............  Failure to comply per            $48,862         1.07745         $52,646
                                         day per violation.
30 CFR 553.51(a) (OPA)................  Failure to comply per             51,796         1.07745          55,808
                                         day per violation.
----------------------------------------------------------------------------------------------------------------

IV. Statutory and Executive Order Reviews

A. Statutes

1. National Environmental Policy Act
    This rule does not constitute a major Federal action under the 
National Environmental Policy Act of 1969 (NEPA) because the civil 
penalty adjustments are required by law (see 40 CFR 1508.1(q)(1)(ii)). 
The Improvements Act requires BOEM to annually adjust the amounts of 
its civil penalties to account for inflation as measured by the 
Department of Labor's Consumer Price Index. Accordingly, BOEM has no 
discretion in the execution of the civil penalty adjustments reflected 
in this final rule. Because this rule is not a major Federal action, it 
is therefore not subject to the requirements of NEPA. Even if this were 
a discretionary action subject to NEPA, which it is not, a detailed 
statement under NEPA would not be required because, as a regulation of 
an administrative nature, this rule would be covered by a categorical 
exclusion (see 43 CFR 46.210(i)). Moreover, BOEM determined that the 
rule does not implicate any of the extraordinary circumstances listed 
in 43 CFR 46.215 that would prevent reliance on the categorical 
exclusion. Therefore, a detailed statement under NEPA is not required.
2. Regulatory Flexibility Act
    The Regulatory Flexibility Act (RFA, 5 U.S.C. 601 et seq.) 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. However, 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 
Improvements Act expressly exempts these annual inflation adjustments 
from the requirement to publish a proposed rule for notice and comment. 
Improvements Act, Public Law 114-74, sec. 701(b)(1)(D); OMB M-23-05 at 
3-4.

[[Page 9751]]

Thus, the RFA does not apply to this rulemaking.
3. Paperwork Reduction Act
    This rule does not contain information collection requirements, 
and, therefore, a submission to OMB under the Paperwork Reduction Act 
(44 U.S.C. 3501 et seq.) is not required.
4. Unfunded Mandates Reform Act of 1995
    This rule does not impose an unfunded mandate on State, local, or 
Tribal governments, or on the private sector, of more than $100 million 
per year (adjusted for inflation). The rule does not have a significant 
or unique effect on State, local, or Tribal governments, or on 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.
5. Small Business Regulatory Enforcement Fairness Act
    This rule is not a major rule under 5 U.S.C. 804(2). This rule:
    (a) will not have an annual effect on the economy of $100 million 
or more;
    (b) will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions; and
    (c) will not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.
6. Congressional Review Act
    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.) and 
OMB guidance,\5\ this rule is not a major rule, as defined by that act. 
5 U.S.C. 804(2).
---------------------------------------------------------------------------

    \5\ See Office of Mgmt. & Budget, Exec. Office of the President, 
OMB M-19-14, Guidance on Compliance with the Congressional Review 
Act (2019), available at https://www.whitehouse.gov/wp-content/uploads/2019/04/M-19-14.pdf; OMB Memorandum M-23-05 at 3.
---------------------------------------------------------------------------

B. Executive Orders (E.O.)

1. Governmental Actions and Interference With Constitutionally 
Protected Property Rights (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.
2. Regulatory Planning and Review (E.O. 12866); Improving Regulation 
and Regulatory Review (E.O. 13563)
    E.O. 12866 provides that the Office of Information and Regulatory 
Affairs (OIRA) will review all significant rules. OIRA determined that 
annual civil penalty inflation adjustment rules are not significant if 
they exclusively implement the annual inflation adjustment consistent 
with OMB guidance and have an annual impact of less than $100 million. 
See OMB Memorandum M-23-05 at 3. This rule meets those conditions and, 
thus, is not a significant rule.
    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 for 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. 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. However, BOEM is using neither science nor public 
participation in this rulemaking. Congress directed agencies to adjust 
the maximum daily civil penalty amounts using a particular equation 
without public participation. BOEM does not have discretion to use any 
other factor in the adjustment. BOEM has developed this rule in a 
manner consistent with the requirements in E.O. 13563 to the extent 
relevant and feasible given the limited discretion provided agencies 
under the Improvements Act.
3. 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.
4. 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. This rule merely adjusts the 
dollar amount of civil monetary penalties that BOEM may impose on its 
lessees and has no effects on any action of State or local governments. 
Therefore, a federalism summary impact statement is not required.
5. Consultation and Coordination With Indian Tribal Governments (E.O. 
13175)
    The Department of the Interior and BOEM strive to strengthen their 
government-to-government relationships with Indian Tribes through a 
commitment to consultation with Indian Tribes and recognition of the 
Tribes' right to self-governance and Tribal sovereignty. BOEM evaluated 
this rule under the Department of the Interior's consultation policy, 
Departmental Manual part 512 chapters 4 and 5, and E.O. 13175, and 
determined that this rule has no substantial direct effects on 
federally recognized Indian Tribes or Alaska Native Claims Settlement 
Act Corporations and that consultation under existing Department and 
BOEM policies is not required.
6. Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use (E.O. 13211)
    This rule is not a ``significant energy action'' under the 
definition of that term found in E.O. 13211. Therefore, a statement of 
energy effects is not required.

List of Subjects

30 CFR Part 550

    Administrative practice and procedure, Continental shelf, 
Environmental impact statements, Environmental protection, Federal 
lands, Government contracts, Investigations, Mineral resources, Oil and 
gas exploration, Outer continental shelf, Penalties, Pipelines, 
Reporting and recordkeeping requirements, Rights-of-way, Sulfur.

30 CFR Part 553

    Administrative practice and procedure, Continental shelf, Financial 
responsibility, Liability, Limit of liability, Oil and gas exploration, 
Oil pollution, Outer continental shelf, Penalties, Pipelines, Reporting 
and recordkeeping requirements, Rights-of-way, Surety bonds, Treasury 
securities.

Laura Daniel-Davis,
Principal Deputy Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, BOEM amends 30 CFR parts 
550 and 553 as follows:

[[Page 9752]]

PART 550--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. The authority citation for part 550 continues to read as follows:

    Authority: 30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334.


0
2. Revise Sec.  550.1403 to read as follows:


Sec.  550.1403  What is the maximum civil penalty?

    The maximum civil penalty is $52,646 per day per violation.

PART 553--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE 
FACILITIES

0
3. The authority citation for part 553 continues to read as follows:

    Authority: 33 U.S.C. 2704, 2716; E.O. 12777, as amended.


0
4. Revise Sec.  553.51(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 $55,808 per 
COF per day of violation (that is, each day a COF is operated without 
acceptable evidence of OSFR).
* * * * *
[FR Doc. 2023-03217 Filed 2-14-23; 8:45 am]
BILLING CODE 4340-98-P
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