82_FR_10739 82 FR 10709 - Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Civil Penalties Inflation Adjustments

82 FR 10709 - Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Civil Penalties Inflation Adjustments

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management

Federal Register Volume 82, Issue 30 (February 15, 2017)

Page Range10709-10711
FR Document2017-02983

This rule adopts and finalizes the interim final rule which adjusted the level of the maximum civil monetary penalties contained in the Bureau of Ocean Energy Management (BOEM) regulations pursuant to the Outer Continental Shelf Lands Act (OCSLA), the Oil Pollution Act of 1990 (OPA), the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (FCPIA of 2015), and Office of Management and Budget (OMB) guidance. This rule also implements the 2017 adjustment of the level of the maximum civil monetary penalties contained in the BOEM regulations pursuant to OCSLA, OPA, FCPIA of 2015 and OMB guidance. The 2017 adjustment of 1.01636 percent accounts for one year of inflation spanning from October 2015 to October 2016.

Federal Register, Volume 82 Issue 30 (Wednesday, February 15, 2017)
[Federal Register Volume 82, Number 30 (Wednesday, February 15, 2017)]
[Rules and Regulations]
[Pages 10709-10711]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02983]



[[Page 10709]]

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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

30 CFR Parts 550 and 553

[Docket ID: BOEM-2016-0055; MMAA104000]
RIN 1010-AD95


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Civil Penalties Inflation Adjustments

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule adopts and finalizes the interim final rule which 
adjusted the level of the maximum civil monetary penalties contained in 
the Bureau of Ocean Energy Management (BOEM) regulations pursuant to 
the Outer Continental Shelf Lands Act (OCSLA), the Oil Pollution Act of 
1990 (OPA), the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (FCPIA of 2015), and Office of Management and 
Budget (OMB) guidance. This rule also implements the 2017 adjustment of 
the level of the maximum civil monetary penalties contained in the BOEM 
regulations pursuant to OCSLA, OPA, FCPIA of 2015 and OMB guidance. The 
2017 adjustment of 1.01636 percent accounts for one year of inflation 
spanning from October 2015 to October 2016.

DATES: This rule is effective on February 15, 2017.

FOR FURTHER INFORMATION CONTACT: Robert Sebastian, Office of Policy, 
Regulation and Analysis, Bureau of Ocean Energy Management, at (202) 
513-0507 or by email at [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background
II. 2016 Adjustments and Interim Final Rule
III. Calculation of 2017 Adjustments
IV. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866 and 13563)
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act
    D. Unfunded Mandates Reform Act
    E. Takings (E.O. 12630)
    F. Federalism (E.O. 13132)
    G. Civil Justice Reform (E.O. 12988)
    H. Consultation With Indian Tribes (E.O. 13175 and Departmental 
Policy)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (E.O. 13211)

I. Background

    The Outer Continental Shelf Lands Act (OCSLA) directs the Secretary 
of the Interior to adjust the OCSLA maximum civil penalty amount at 
least once every three years to reflect any increase in the Consumer 
Price Index to account for inflation (43 U.S.C. 1350(b)(1)). The 
Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 104-
410) (FCPIA of 1990) required that all civil monetary penalties, 
including the OCSLA maximum civil penalty amount, be adjusted at least 
once every four years.
    Similarly, the Oil Pollution Act of 1990 (OPA) authorizes the 
Secretary of the Interior to impose civil penalties for failure to 
comply with financial responsibility regulations that implement OPA. 
The FCPIA of 1990 required that all civil monetary penalties, including 
the OPA maximum civil penalty amount, be adjusted at least once every 
four years.
    The FCPIA of 2015 requires Federal agencies to promulgate annual 
inflation adjustments for civil monetary penalties. Specifically, 
agencies must adjust the level of civil monetary penalties with an 
initial ``catch-up'' adjustment through an interim final rulemaking 
(IFR) in 2016, and make subsequent annual adjustments for inflation, 
beginning in 2017. Agencies are required to publish the annual 
inflation adjustments in the Federal Register by no later than January 
15, 2017, and by no later than January 15 each subsequent year. The 
purpose of these adjustments is to maintain the deterrent effect of 
civil penalties and to further the policy goals of the underlying 
statutes.
    OMB Memorandum M-17-11 (Implementation of the 2017 annual 
adjustment pursuant to the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015), which can be found at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf, explains agency responsibilities for: Identifying applicable 
penalties and performing the annual adjustment; publishing in the 
Federal Register; finalizing 2016 interim final rules; applying 
adjusted penalty levels; and performing agency oversight of inflation 
adjustments.
    BOEM is promulgating this 2017 inflation adjustment for civil 
penalties as a final rule pursuant to the provisions of the FCPIA of 
2015 and OMB guidance. A proposed rule is not required because the 
FCPIA of 2015 states that agencies shall adjust civil monetary 
penalties ``notwithstanding Section 553 of the Administrative Procedure 
Act.'' (FCPIA of 2015 at sec. 4(b)(2)). Accordingly, Congress 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 (APA), allowing them to be 
published as a final rule. This interpretation of the statute is 
confirmed by OMB Memorandum M-17-11. (OMB Memorandum M-17-11 at 3 
(``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.'')).

II. 2016 Adjustments and Interim Final Rule

    BOEM last adjusted the level of civil monetary penalties in BOEM 
regulations through an interim final rule (IFR), RIN 1010-AD95 [81 FR 
43066], which was published on July 1, 2016, and became effective on 
August 1, 2016. The IFR included catch-up adjustments pursuant to the 
requirements of the FCPIA of 2015 and OMB guidance through October 
2015. Although the IFR was effective as of August 1, 2016, the IFR 
included a request for public comments. The public comment period 
closed on August 30, 2016. BOEM received no comments on the IFR and is 
therefore finalizing that rulemaking as originally implemented by the 
IFR. OMB Memorandum M-17-11 authorizes agencies to finalize their 2016 
inflation adjustment IFR in the same rulemaking as the 2017 
adjustments.

III. Calculation of 2017 Adjustments

    Under the FCPIA of 2015 and the guidance provided in OMB Memorandum 
M-17-11, BOEM has identified applicable civil monetary penalties and 
calculated the necessary inflation adjustments. The 2016 adjustments 
were based upon the percent change between the Consumer Price Index for 
all Urban Consumers (CPI-U) for the month of October in the calendar 
year of the previous adjustment (or in the year of establishment, if 
subsequent adjustments were made pursuant to the FCPIA of 1990) and the 
October 2015 CPI-U. The 2017 adjustments are based on the percent 
change between the October CPI-U preceding the date of the adjustment, 
and the prior year's October CPI-U. Consistent with the OMB Memorandum 
M-17-11, BOEM divided the October 2016 CPI-U by the October 2015 CPI-U 
(241.729/237.838). This resulted in a multiplying factor of 1.01636.
    For 2017, OCSLA and the FCPIA of 2015 require that BOEM adjust the 
OCSLA maximum civil penalty amount.

[[Page 10710]]

To accomplish this, BOEM multiplied the existing OCSLA maximum civil 
penalty amount ($42,017) by the multiplying factor ($42,017 x 1.01636 = 
$42,704.40). The FCPIA of 2015 requires that the OCSLA maximum civil 
penalty amount be rounded to the nearest $1.00 at the end of the 
calculation process. Accordingly, the adjusted OCSLA maximum civil 
penalty is $42,704.
    For 2017, the FCPIA of 2015 requires that BOEM adjust the OPA 
maximum civil penalty amount. The statutory OPA maximum civil penalty 
amount ($44,539) was multiplied by the multiplying factor (44,539 x 
1.01636 = $45,267.66). The FCPIA of 2015 requires that the OPA maximum 
civil penalty amount be rounded to the nearest $1.00 at the end of the 
calculation process. Accordingly, the adjusted OPA maximum civil 
penalty is $45,268.
    The adjusted penalty levels shall take effect immediately upon the 
effective date of the adjustment. Pursuant to the FCPIA of 2015, the 
increase in the OCSLA and OPA maximum civil penalty amounts apply to 
civil penalties assessed after the date the increase takes effect, even 
if the associated violation(s) predates such increase. Consistent with 
the provisions of the OCSLA, OPA and the FCPIA of 2015, this rule 
adjusts the following maximum civil monetary penalties per day per 
violation:

----------------------------------------------------------------------------------------------------------------
                                                                      Current                        Adjusted
             CFR citation                  Description of the         maximum       Multiplier        maximum
                                                 penalty              penalty                         penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 550.1403.......................  Failure to comply per            $42,017         1.01636         $42,704
                                         day per violation.
30 CFR 553.51(a)......................  Failure to comply per             44,539         1.01636          45,268
                                         day per violation.
----------------------------------------------------------------------------------------------------------------

IV. Procedural Requirements

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

    Executive Order (E.O.) 12866 provides that the Office of 
Information and Regulatory Affairs (OIRA) in the Office of Management 
and Budget (OMB) will review all significant rules. OIRA has determined 
that this rule is not significant. (See OMB Memorandum M-17-11 at 3).
    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. We have developed this rule in a manner consistent with 
these requirements.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for all rules unless the agency 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities. The RFA applies only to rules 
for which an agency is required to first publish a proposed rule. See 5 
U.S.C. 603(a) and 604(a). The FCPIA of 2015 expressly exempts 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-17-11 at 3). Thus, the RFA does not apply to this 
rulemaking.

C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    (a) Will not have an annual effect on the economy of $100 million 
or more;
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions; 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.

D. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on state, local, or 
tribal governments, or the private sector, of more than $100 million 
per year. The rule does not have a significant or unique effect on 
state, local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This rule does not effect a taking of private property or otherwise 
have takings implications under 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)

    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. 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.

[[Page 10711]]

J. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969 (NEPA) is not 
required because the rule is covered by a categorical exclusion (see 43 
CFR 46.210(i)). As a regulation of an administrative nature, this rule 
is covered by a categorical exclusion (see 43 CFR 46.210(i)). 
Therefore, a detailed statement under NEPA is not required. 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

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, Reporting and 
recordkeeping requirements, Sulphur.

30 CFR Part 553

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

    Dated: February 3, 2017.
Richard T. Cardinale,
Acting Assistant Secretary--Land and Minerals Management.

    For the reasons stated in the preamble, the BOEM adopts as final 
the interim final rule amending 30 CFR parts 550 and 553, which was 
published at 81 FR 43066 on July 1, 2016, as a final rule with the 
following changes:

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 $42,704 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. In Sec.  553.51, revise paragraph (a) to read as follows:


Sec.  553.51  What are the penalties for not complying with this part?

    (a) If you fail to comply with the financial responsibility 
requirements of OPA at 33 U.S.C. 2716 or with the requirements of this 
part, then you may be liable for a civil penalty of up to $45,268 per 
COF per day of violation (that is, each day a COF is operated without 
acceptable evidence of OSFR).
* * * * *
[FR Doc. 2017-02983 Filed 2-14-17; 8:45 am]
BILLING CODE 4310-MR-P



                                                                 Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations                                       10709

                                                DEPARTMENT OF THE INTERIOR                               Interior to adjust the OCSLA maximum                  the FCPIA of 2015 from the pre-
                                                                                                         civil penalty amount at least once every              promulgation notice and comment
                                                Bureau of Ocean Energy Management                        three years to reflect any increase in the            requirements of the Administrative
                                                                                                         Consumer Price Index to account for                   Procedure Act (APA), allowing them to
                                                30 CFR Parts 550 and 553                                 inflation (43 U.S.C. 1350(b)(1)). The                 be published as a final rule. This
                                                [Docket ID: BOEM–2016–0055;                              Federal Civil Penalties Inflation                     interpretation of the statute is confirmed
                                                MMAA104000]                                              Adjustment Act of 1990 (Pub. L. 104–                  by OMB Memorandum M–17–11. (OMB
                                                                                                         410) (FCPIA of 1990) required that all                Memorandum M–17–11 at 3 (‘‘This
                                                RIN 1010–AD95                                            civil monetary penalties, including the               means that the public procedure the
                                                                                                         OCSLA maximum civil penalty amount,                   APA generally requires—notice, an
                                                Oil and Gas and Sulphur Operations in
                                                                                                         be adjusted at least once every four                  opportunity for comment, and a delay in
                                                the Outer Continental Shelf—Civil                        years.                                                effective date—is not required for
                                                Penalties Inflation Adjustments                             Similarly, the Oil Pollution Act of                agencies to issue regulations
                                                AGENCY:  Bureau of Ocean Energy                          1990 (OPA) authorizes the Secretary of                implementing the annual
                                                Management, Interior.                                    the Interior to impose civil penalties for            adjustment.’’)).
                                                ACTION: Final rule.                                      failure to comply with financial
                                                                                                         responsibility regulations that                       II. 2016 Adjustments and Interim Final
                                                SUMMARY:   This rule adopts and finalizes                implement OPA. The FCPIA of 1990                      Rule
                                                the interim final rule which adjusted the                required that all civil monetary                         BOEM last adjusted the level of civil
                                                level of the maximum civil monetary                      penalties, including the OPA maximum                  monetary penalties in BOEM regulations
                                                penalties contained in the Bureau of                     civil penalty amount, be adjusted at                  through an interim final rule (IFR), RIN
                                                Ocean Energy Management (BOEM)                           least once every four years.                          1010–AD95 [81 FR 43066], which was
                                                regulations pursuant to the Outer                           The FCPIA of 2015 requires Federal                 published on July 1, 2016, and became
                                                Continental Shelf Lands Act (OCSLA),                     agencies to promulgate annual inflation               effective on August 1, 2016. The IFR
                                                the Oil Pollution Act of 1990 (OPA), the                 adjustments for civil monetary                        included catch-up adjustments pursuant
                                                Federal Civil Penalties Inflation                        penalties. Specifically, agencies must                to the requirements of the FCPIA of
                                                Adjustment Act Improvements Act of                       adjust the level of civil monetary                    2015 and OMB guidance through
                                                2015 (FCPIA of 2015), and Office of                      penalties with an initial ‘‘catch-up’’                October 2015. Although the IFR was
                                                Management and Budget (OMB)                              adjustment through an interim final                   effective as of August 1, 2016, the IFR
                                                guidance. This rule also implements the                  rulemaking (IFR) in 2016, and make                    included a request for public comments.
                                                2017 adjustment of the level of the                      subsequent annual adjustments for                     The public comment period closed on
                                                maximum civil monetary penalties                         inflation, beginning in 2017. Agencies                August 30, 2016. BOEM received no
                                                contained in the BOEM regulations                        are required to publish the annual                    comments on the IFR and is therefore
                                                pursuant to OCSLA, OPA, FCPIA of                         inflation adjustments in the Federal                  finalizing that rulemaking as originally
                                                2015 and OMB guidance. The 2017                          Register by no later than January 15,                 implemented by the IFR. OMB
                                                adjustment of 1.01636 percent accounts                   2017, and by no later than January 15                 Memorandum M–17–11 authorizes
                                                for one year of inflation spanning from                  each subsequent year. The purpose of                  agencies to finalize their 2016 inflation
                                                October 2015 to October 2016.                            these adjustments is to maintain the                  adjustment IFR in the same rulemaking
                                                DATES: This rule is effective on February                deterrent effect of civil penalties and to            as the 2017 adjustments.
                                                15, 2017.                                                further the policy goals of the
                                                                                                                                                               III. Calculation of 2017 Adjustments
                                                                                                         underlying statutes.
                                                FOR FURTHER INFORMATION CONTACT:                                                                                  Under the FCPIA of 2015 and the
                                                                                                            OMB Memorandum M–17–11
                                                Robert Sebastian, Office of Policy,                      (Implementation of the 2017 annual                    guidance provided in OMB
                                                Regulation and Analysis, Bureau of                       adjustment pursuant to the Federal Civil              Memorandum M–17–11, BOEM has
                                                Ocean Energy Management, at (202)                        Penalties Inflation Adjustment Act                    identified applicable civil monetary
                                                513–0507 or by email at                                  Improvements Act of 2015), which can                  penalties and calculated the necessary
                                                robert.sebastian@boem.gov.                               be found at https://www.whitehouse.                   inflation adjustments. The 2016
                                                SUPPLEMENTARY INFORMATION:                               gov/sites/default/files/omb/memoranda/                adjustments were based upon the
                                                I. Background                                            2017/m-17-11_0.pdf, explains agency                   percent change between the Consumer
                                                II. 2016 Adjustments and Interim Final Rule              responsibilities for: Identifying                     Price Index for all Urban Consumers
                                                III. Calculation of 2017 Adjustments                     applicable penalties and performing the               (CPI–U) for the month of October in the
                                                IV. Procedural Requirements                              annual adjustment; publishing in the                  calendar year of the previous
                                                   A. Regulatory Planning and Review (E.O.
                                                      12866 and 13563)
                                                                                                         Federal Register; finalizing 2016                     adjustment (or in the year of
                                                   B. Regulatory Flexibility Act                         interim final rules; applying adjusted                establishment, if subsequent
                                                   C. Small Business Regulatory Enforcement              penalty levels; and performing agency                 adjustments were made pursuant to the
                                                      Fairness Act                                       oversight of inflation adjustments.                   FCPIA of 1990) and the October 2015
                                                   D. Unfunded Mandates Reform Act                          BOEM is promulgating this 2017                     CPI–U. The 2017 adjustments are based
                                                   E. Takings (E.O. 12630)                               inflation adjustment for civil penalties              on the percent change between the
                                                   F. Federalism (E.O. 13132)                            as a final rule pursuant to the provisions            October CPI–U preceding the date of the
                                                   G. Civil Justice Reform (E.O. 12988)                  of the FCPIA of 2015 and OMB                          adjustment, and the prior year’s October
                                                   H. Consultation With Indian Tribes (E.O.              guidance. A proposed rule is not                      CPI–U. Consistent with the OMB
                                                      13175 and Departmental Policy)
                                                                                                         required because the FCPIA of 2015                    Memorandum M–17–11, BOEM divided
                                                   I. Paperwork Reduction Act
mstockstill on DSK3G9T082PROD with RULES




                                                   J. National Environmental Policy Act                  states that agencies shall adjust civil               the October 2016 CPI–U by the October
                                                   K. Effects on the Energy Supply (E.O.                 monetary penalties ‘‘notwithstanding                  2015 CPI–U (241.729/237.838). This
                                                      13211)                                             Section 553 of the Administrative                     resulted in a multiplying factor of
                                                                                                         Procedure Act.’’ (FCPIA of 2015 at sec.               1.01636.
                                                I. Background                                            4(b)(2)). Accordingly, Congress                          For 2017, OCSLA and the FCPIA of
                                                   The Outer Continental Shelf Lands                     expressly exempted the annual inflation               2015 require that BOEM adjust the
                                                Act (OCSLA) directs the Secretary of the                 adjustments implemented pursuant to                   OCSLA maximum civil penalty amount.


                                           VerDate Sep<11>2014    16:57 Feb 14, 2017   Jkt 241001   PO 00000   Frm 00009   Fmt 4700   Sfmt 4700   E:\FR\FM\15FER1.SGM   15FER1


                                                10710             Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations

                                                To accomplish this, BOEM multiplied                             civil penalty amount. The statutory OPA              date of the adjustment. Pursuant to the
                                                the existing OCSLA maximum civil                                maximum civil penalty amount                         FCPIA of 2015, the increase in the
                                                penalty amount ($42,017) by the                                 ($44,539) was multiplied by the                      OCSLA and OPA maximum civil
                                                multiplying factor ($42,017 × 1.01636 =                         multiplying factor (44,539 × 1.01636 =               penalty amounts apply to civil penalties
                                                $42,704.40). The FCPIA of 2015 requires                         $45,267.66). The FCPIA of 2015 requires              assessed after the date the increase takes
                                                that the OCSLA maximum civil penalty                            that the OPA maximum civil penalty                   effect, even if the associated violation(s)
                                                amount be rounded to the nearest $1.00                          amount be rounded to the nearest $1.00               predates such increase. Consistent with
                                                at the end of the calculation process.                          at the end of the calculation process.               the provisions of the OCSLA, OPA and
                                                Accordingly, the adjusted OCSLA                                 Accordingly, the adjusted OPA                        the FCPIA of 2015, this rule adjusts the
                                                maximum civil penalty is $42,704.                               maximum civil penalty is $45,268.
                                                                                                                                                                     following maximum civil monetary
                                                   For 2017, the FCPIA of 2015 requires                            The adjusted penalty levels shall take
                                                that BOEM adjust the OPA maximum                                effect immediately upon the effective                penalties per day per violation:

                                                                                                                                                                      Current                        Adjusted
                                                                     CFR citation                                        Description of the penalty                  maximum           Multiplier    maximum
                                                                                                                                                                      penalty                         penalty

                                                30 CFR 550.1403 ...........................................    Failure to comply per day per violation .........         $42,017           1.01636       $42,704
                                                30 CFR 553.51(a) ...........................................   Failure to comply per day per violation .........          44,539           1.01636        45,268



                                                IV. Procedural Requirements                                     C. Small Business Regulatory                         G. Civil Justice Reform (E.O. 12988)
                                                                                                                Enforcement Fairness Act
                                                A. Regulatory Planning and Review                                                                                       This rule complies with the
                                                (E.O. 12866 and 13563)                                             This rule is not a major rule under 5             requirements of E.O. 12988.
                                                  Executive Order (E.O.) 12866 provides                         U.S.C. 804(2), the Small Business                    Specifically, this rule:
                                                that the Office of Information and                              Regulatory Enforcement Fairness Act.                    (a) Meets the criteria of section 3(a)
                                                Regulatory Affairs (OIRA) in the Office                         This rule:                                           requiring that all regulations be
                                                of Management and Budget (OMB) will                                (a) Will not have an annual effect on             reviewed to eliminate errors and
                                                review all significant rules. OIRA has                          the economy of $100 million or more;                 ambiguity and be written to minimize
                                                determined that this rule is not                                   (b) Will not cause a major increase in            litigation; and
                                                significant. (See OMB Memorandum M–                             costs or prices for consumers,                          (b) Meets the criteria of section 3(b)(2)
                                                17–11 at 3).                                                    individual industries, Federal, State, or            requiring that all regulations be written
                                                  E.O. 13563 reaffirms the principles of                        local government agencies, or                        in clear language and contain clear legal
                                                E.O. 12866 while calling for                                    geographic regions; and                              standards.
                                                improvements in the nation’s regulatory                            (c) Will not have significant adverse
                                                                                                                                                                     H. Consultation With Indian Tribes
                                                system to reduce uncertainty and to                             effects on competition, employment,
                                                                                                                                                                     (E.O. 13175 and Departmental Policy)
                                                promote predictability and the use of                           investment, productivity, innovation, or
                                                the best, most innovative, and least                            the ability of U.S.-based enterprises to                The Department of the Interior strives
                                                burdensome tools for achieving                                  compete with foreign-based enterprises.              to strengthen its government-to-
                                                regulatory ends. E.O. 13563 directs                                                                                  government relationship with Indian
                                                                                                                D. Unfunded Mandates Reform Act
                                                agencies to consider regulatory                                                                                      tribes through a commitment to
                                                approaches that reduce burdens and                                 This rule does not impose an                      consultation with Indian tribes and
                                                maintain flexibility and freedom of                             unfunded mandate on state, local, or                 recognition of their right to self-
                                                choice for the public where these                               tribal governments, or the private sector,           governance and tribal sovereignty. We
                                                approaches are relevant, feasible, and                          of more than $100 million per year. The              have evaluated this rule under the
                                                consistent with regulatory objectives.                          rule does not have a significant or                  Department of the Interior’s
                                                We have developed this rule in a                                unique effect on state, local, or tribal             consultation policy, under Departmental
                                                manner consistent with these                                    governments or the private sector. A                 Manual Part 512, Chapters 4 and 5, and
                                                requirements.                                                   statement containing the information                 under the criteria in E.O. 13175. We
                                                                                                                required by the Unfunded Mandates                    have determined that it has no
                                                B. Regulatory Flexibility Act                                   Reform Act (2 U.S.C. 1531 et seq.) is not            substantial direct effects on Federally-
                                                   The Regulatory Flexibility Act (RFA)                         required.                                            recognized Indian tribes or Alaska
                                                requires an agency to prepare a                                                                                      Native Claims Settlement Act (ANCSA)
                                                                                                                E. Takings (E.O. 12630)
                                                regulatory flexibility analysis for all                                                                              Corporations, and that consultation
                                                rules unless the agency certifies that the                        This rule does not effect a taking of              under the Department of the Interior’s
                                                rule will not have a significant                                private property or otherwise have                   tribal and ANCSA consultation policies
                                                economic impact on a substantial                                takings implications under E.O. 12630.               is not required.
                                                number of small entities. The RFA                               Therefore, a takings implication
                                                                                                                                                                     I. Paperwork Reduction Act
                                                applies only to rules for which an                              assessment is not required.
                                                agency is required to first publish a                                                                                  This rule does not contain
                                                                                                                F. Federalism (E.O. 13132)
                                                proposed rule. See 5 U.S.C. 603(a) and                                                                               information collection requirements,
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                                                604(a). The FCPIA of 2015 expressly                               Under the criteria in section 1 of E.O.            and a submission to the OMB under the
                                                exempts annual inflation adjustments                            13132, this rule does not have sufficient            Paperwork Reduction Act (44 U.S.C.
                                                from the requirement to publish a                               federalism implications to warrant the               3501 et seq.) is not required. We may
                                                proposed rule for notice and comment.                           preparation of a federalism summary                  not conduct or sponsor, and you are not
                                                (See FCPIA of 2015 at § 4(b)(2); OMB                            impact statement. Therefore, a                       required to respond to, a collection of
                                                Memorandum M–17–11 at 3). Thus, the                             federalism summary impact statement is               information unless it displays a
                                                RFA does not apply to this rulemaking.                          not required.                                        currently valid OMB control number.


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                                                                 Federal Register / Vol. 82, No. 30 / Wednesday, February 15, 2017 / Rules and Regulations                                             10711

                                                J. National Environmental Policy Act                     ■ 2. Revise § 550.1403 to read as                     Office of Air Quality Planning and
                                                   This rule does not constitute a major                 follows:                                              Standards, Air Quality Assessment
                                                Federal action significantly affecting the                                                                     Division, Measurement Technology
                                                                                                         § 550.1403    What is the maximum civil               Group (E143–02), Research Triangle
                                                quality of the human environment. A                      penalty?
                                                detailed statement under the National                                                                          Park, NC 27711; telephone number:
                                                                                                           The maximum civil penalty is                        (919) 541–1158; fax number: (919) 541–
                                                Environmental Policy Act of 1969                         $42,704 per day per violation.
                                                (NEPA) is not required because the rule                                                                        0516; email address: garnett.kim@
                                                is covered by a categorical exclusion                                                                          epa.gov.
                                                                                                         PART 553—OIL SPILL FINANCIAL
                                                (see 43 CFR 46.210(i)). As a regulation                  RESPONSIBILITY FOR OFFSHORE                           SUPPLEMENTARY INFORMATION:       The direct
                                                of an administrative nature, this rule is                FACILITIES                                            final rule, ‘‘Revisions to Procedure 2—
                                                covered by a categorical exclusion (see                                                                        Quality Assurance Requirements for
                                                43 CFR 46.210(i)). Therefore, a detailed                 ■ 3. The authority citation for part 553              Particulate Matter Continuous Emission
                                                statement under NEPA is not required.                    continues to read as follows:                         Monitoring Systems at Stationary
                                                We have also determined that the rule                      Authority: 33 U.S.C. 2704, 2716; E.O.               Sources,’’ published on November 21,
                                                does not involve any of the                              12777, as amended.                                    2016, at 81 FR 83160. We stated in that
                                                extraordinary circumstances listed in 43                                                                       direct final rule that if we received
                                                CFR 46.215 that would require further                    ■ 4. In § 553.51, revise paragraph (a) to
                                                                                                                                                               adverse comment by December 21,
                                                analysis under NEPA.                                     read as follows:
                                                                                                                                                               2016, the direct final rule would not
                                                K. Effects on the Energy Supply (E.O.                    § 553.51 What are the penalties for not               take effect and we would publish a
                                                13211)                                                   complying with this part?                             timely withdrawal in the Federal
                                                                                                            (a) If you fail to comply with the                 Register. We subsequently received
                                                  This rule is not a significant energy                                                                        adverse comment on that direct final
                                                action under the definition in E.O.                      financial responsibility requirements of
                                                                                                         OPA at 33 U.S.C. 2716 or with the                     rule requesting that the EPA delete or
                                                13211. Therefore, a Statement of Energy                                                                        reserve section(s) in the rule that
                                                Effects is not required.                                 requirements of this part, then you may
                                                                                                         be liable for a civil penalty of up to                conflict with the intended revisions. We
                                                List of Subjects                                         $45,268 per COF per day of violation                  will address the comment in a
                                                                                                         (that is, each day a COF is operated                  subsequent final action, which will be
                                                30 CFR Part 550
                                                                                                         without acceptable evidence of OSFR).                 based on the parallel proposed rule also
                                                  Administrative practice and                                                                                  published on November 21, 2016, at 81
                                                procedure, Continental shelf,                            *      *     *      *    *
                                                                                                         [FR Doc. 2017–02983 Filed 2–14–17; 8:45 am]           FR 83189. As stated in the direct final
                                                Environmental impact statements,                                                                               rule and the parallel proposed rule, we
                                                                                                         BILLING CODE 4310–MR–P
                                                Environmental protection, Federal                                                                              will not institute a second comment
                                                lands, Government contracts,                                                                                   period on this action.
                                                Investigations, Mineral resources, Oil
                                                and gas exploration, Outer continental                   ENVIRONMENTAL PROTECTION                              List of Subjects in 40 CFR Part 60
                                                shelf, Penalties, Pipelines, Reporting                   AGENCY                                                  Environmental protection,
                                                and recordkeeping requirements, Rights-                                                                        Administrative practice and procedure,
                                                of-way, Reporting and recordkeeping                      40 CFR Part 60
                                                                                                                                                               Air pollution control, Continuous
                                                requirements, Sulphur.                                   [EPA–HQ–OAR–2016–0382; FRL–9959–43–                   emission monitoring systems,
                                                                                                         OAR]                                                  Particulate matter, Procedures.
                                                30 CFR Part 553
                                                                                                         RIN 2060–AT15                                           Dated: February 8, 2017.
                                                  Administrative practice and
                                                procedure, Continental shelf, Financial                                                                        Sarah Dunham,
                                                                                                         Revisions to Procedure 2—Quality                      Acting Assistant Administrator.
                                                responsibility, Outer continental shelf,                 Assurance Requirements for
                                                Oil and gas exploration, Oil pollution,                  Particulate Matter Continuous                         [FR Doc. 2017–03063 Filed 2–14–17; 8:45 am]
                                                Liability, Limit of liability, Penalties,                Emission Monitoring Systems at                        BILLING CODE 6560–50–P
                                                Pipelines, Reporting and recordkeeping                   Stationary Sources
                                                requirements, Rights-of-way, Surety
                                                bonds, Treasury securities.                              AGENCY: Environmental Protection                      ENVIRONMENTAL PROTECTION
                                                  Dated: February 3, 2017.                               Agency (EPA).                                         AGENCY
                                                Richard T. Cardinale,                                    ACTION: Withdrawal of direct final rule.
                                                                                                                                                               40 CFR Part 97
                                                Acting Assistant Secretary—Land and
                                                Minerals Management.
                                                                                                         SUMMARY:   Because the Environmental                  [FRL–9959–26–OAR]
                                                                                                         Protection Agency (EPA) received an
                                                   For the reasons stated in the                         adverse comment, we are withdrawing                   Allocations of Cross-State Air
                                                preamble, the BOEM adopts as final the                   the direct final rule titled, ‘‘Revisions to          Pollution Rule Allowances From New
                                                interim final rule amending 30 CFR                       Procedure 2—Quality Assurance                         Unit Set-Asides for the 2016
                                                parts 550 and 553, which was published                   Requirements for Particulate Matter                   Compliance Year
                                                at 81 FR 43066 on July 1, 2016, as a final               Continuous Emission Monitoring
                                                rule with the following changes:                         Systems at Stationary Sources.’’                      AGENCY: Environmental Protection
                                                                                                                                                               Agency (EPA).
                                                PART 550—OIL AND GAS AND                                 DATES: Effective February 15, 2017, the
                                                                                                                                                               ACTION: Notice of data availability
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                                                SULPHUR OPERATIONS IN THE                                EPA withdraws the direct final rule
                                                                                                                                                               (NODA).
                                                OUTER CONTINENTAL SHELF                                  published at 81 FR 83160, on November
                                                                                                         21, 2016.                                             SUMMARY:  The Environmental Protection
                                                ■ 1. The authority citation for part 550                 FOR FURTHER INFORMATION CONTACT:                      Agency (EPA) is providing notice of
                                                continues to read as follows:                            Questions concerning this action should               emission allowance allocations to
                                                  Authority: 30 U.S.C. 1751; 31 U.S.C. 9701;             be addressed to Ms. Kimberly Garnett,                 certain units under the new unit set-
                                                43 U.S.C. 1334.                                          U.S. Environmental Protection Agency,                 aside (NUSA) provisions of the Cross-


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Document Created: 2017-02-15 00:55:09
Document Modified: 2017-02-15 00:55:09
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective on February 15, 2017.
ContactRobert Sebastian, Office of Policy, Regulation and Analysis, Bureau of Ocean Energy Management, at (202) 513-0507 or by email at [email protected]
FR Citation82 FR 10709 
RIN Number1010-AD95
CFR Citation30 CFR 550
30 CFR 553
CFR AssociatedAdministrative 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; Sulphur; Financial Responsibility; Oil Pollution; Liability; Limit of Liability; Surety Bonds and Treasury Securities

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