83_FR_8972 83 FR 8930 - Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Civil Penalties Inflation Adjustments

83 FR 8930 - Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Civil Penalties Inflation Adjustments

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management

Federal Register Volume 83, Issue 42 (March 2, 2018)

Page Range8930-8933
FR Document2018-04248

This final rule implements the 2018 adjustment of 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 the Office of Management and Budget (OMB) guidance. The 2018 adjustment multiplier of 1.02041 accounts for one year of inflation spanning the period from October 2016 through October 2017.

Federal Register, Volume 83 Issue 42 (Friday, March 2, 2018)
[Federal Register Volume 83, Number 42 (Friday, March 2, 2018)]
[Rules and Regulations]
[Pages 8930-8933]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04248]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

30 CFR Parts 550 and 553

[Docket ID: BOEM-2017-0079; MMAA104000]
RIN 1010-AD99


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

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final rule.

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

SUMMARY: This final rule implements the 2018 adjustment of 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

[[Page 8931]]

Penalties Inflation Adjustment Act Improvements Act of 2015 (FCPIA of 
2015), and the Office of Management and Budget (OMB) guidance. The 2018 
adjustment multiplier of 1.02041 accounts for one year of inflation 
spanning the period from October 2016 through October 2017.

DATES: This rule is effective on March 2, 2018.

FOR FURTHER INFORMATION CONTACT: Deanna Meyer-Pietruszka, Chief, Office 
of Policy, Regulation and Analysis, Bureau of Ocean Energy Management, 
at (202) 208-6352 or by email at deanna.meyer-pietruszka@boem.gov.

SUPPLEMENTARY INFORMATION: 
I. Background and Legal Authority
II. Calculation of 2018 Adjustments
III. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771)
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act
    D. Unfunded Mandates Reform Act
    E. Takings (E.O. 12630)
    F. Federalism (E.O. 13132)
    G. Civil Justice Reform (E.O. 12988)
    H. Consultation With Indian Tribes (E.O. 13175 and Departmental 
Policy)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (E.O. 13211)

I. Background and Legal Authority

    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) requires 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 requires that all civil monetary penalties, including 
the OPA maximum civil penalty amount, be adjusted for inflation at 
least once every four years.
    The FCPIA of 2015 requires Federal agencies to promulgate annual 
inflation adjustments for civil monetary penalties. Specifically, 
agencies are required to adjust the level of civil monetary penalties 
with an initial ``catch-up'' adjustment through an interim final 
rulemaking (IFR) in 2016, and must make subsequent annual adjustments 
for inflation, beginning in 2017. Agencies were required to publish the 
first annual inflation adjustments in the Federal Register by no later 
than January 15, 2017, and must publish recurring annual inflation 
adjustments by no later than January 15 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.
    BOEM last adjusted the levels of civil monetary penalties in BOEM 
regulations through a final rule, RIN 1010-AD95 [82 FR 10709], which 
was published on February 15, 2017.
    The OMB Memorandum M-18-03, issued December 15, 2017, 
(Implementation of Penalty Inflation Adjustments for 2018, Pursuant to 
the Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015; https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf) explains agency statutory responsibilities for: Identifying 
applicable penalties and performing the annual adjustment; publishing 
revisions to regulations to implement the adjustment in the Federal 
Register; applying adjusted penalty levels; and performing agency 
oversight of inflation adjustments.
    BOEM is promulgating this 2018 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-18-03. (OMB Memorandum M-18-03 at 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.'')).

II. Calculation of 2018 Adjustments

    Under the FCPIA of 2015 and the guidance provided in OMB Memorandum 
M-18-03, BOEM has identified applicable civil monetary penalties and 
calculated the necessary inflation adjustments. The previous civil 
penalty inflation adjustments accounted for inflation through October 
2016. The required annual civil penalty inflation adjustment 
promulgated through this rule accounts for inflation through October 
2017.
    Annual inflation adjustments are based on the percent change 
between the Consumer Price Index for all Urban Consumers (CPI-U) for 
the October preceding the date of the adjustment, and the prior year's 
October CPI-U. Consistent with the guidance in OMB Memorandum M-18-03, 
BOEM divided the October 2017 CPI-U by the October 2016 CPI-U to 
calculate the multiplying factor. In this case, October 2017 CPI-U 
(246.663)/October 2016 CPI-U (241.729) = 1.02041. OMB Memorandum M-18-
03 confirms that this is the proper multiplier. (See OMB Memorandum M-
18-03 at 1 and n.4).
    For 2018, OCSLA and the FCPIA of 2015 require that BOEM adjust the 
OCSLA maximum civil penalty amount. To accomplish this, BOEM multiplied 
the existing OCSLA maximum civil penalty amount ($42,704) by the 
multiplying factor ($42,704 x 1.02041 = $43,575.59). The FCPIA of 2015 
requires that the resulting amount be rounded to the nearest $1.00 at 
the end of the calculation process. Accordingly, the adjusted OCSLA 
maximum civil penalty is $43,576.
    For 2018, the FCPIA of 2015 requires that BOEM adjust the OPA 
maximum civil penalty amount. To accomplish this, BOEM multiplied the 
current OPA maximum civil penalty amount ($45,268) by the multiplying 
factor (45,268 x 1.02041 = $46,191.92). The FCPIA of 2015 requires that 
the resulting amount be rounded to the nearest $1.00 at the end of the 
calculation process. Accordingly, the adjusted OPA maximum civil 
penalty is $46,192.
    The adjusted penalty levels will take effect immediately upon 
publication of this rule. Pursuant to the FCPIA of 2015, the increases 
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 OCSLA, OPA, and the FCPIA of 2015, this rule adjusts the 
following maximum civil monetary penalties per day per violation:

[[Page 8932]]



----------------------------------------------------------------------------------------------------------------
                                                                      Current                        Adjusted
              CFR Citation                  Description of the        maximum       Multiplier        maximum
                                                 penalty              penalty                         penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 550.1403........................  Failure to comply per           $42,704         1.02041         $43,576
                                          day per violation.
30 CFR 553.51(a).......................  Failure to comply per            45,268         1.02041          46,192
                                          day per violation.
----------------------------------------------------------------------------------------------------------------

III. Procedural Requirements

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

    Executive Order (E.O.) 12866 provides that the Office of 
Information and Regulatory Affairs (OIRA) in the OMB will review all 
significant rules. OIRA has determined that this rule is not 
significant. (See OMB Memorandum M-18-03 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, to the extent relevant and feasible given the 
limited discretion provided agencies in FCPIA.
    E.O. 13771 of January 30, 2017 directs Federal agencies to reduce 
the regulatory burden on regulated entities and control regulatory 
costs. E.O. 13771, however, applies only to significant regulatory 
actions, as defined in Section 3(f) of E.O. 12866. OIRA has determined 
that agency regulations exclusively implementing the annual adjustment 
are not significant regulatory actions under E.O. 12866, provided they 
are consistent with OMB Memorandum M-18-03 (See OMB Memorandum M-18-03 
at 3); thus, E.O. 13771 does not apply to this rulemaking.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for 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 these 
annual inflation adjustments from the requirement to publish a proposed 
rule for notice and comment. (See FCPIA of 2015 at section 4(b)(2); OMB 
Memorandum M-18-03 at 4). Thus, the RFA does not apply to this 
rulemaking.

C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    (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. Therefore, a 
statement containing the information required by the Unfunded Mandates 
Reform Act (2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This rule does not effect a taking of private property or otherwise 
have takings implications under E.O. 12630. Therefore, a takings 
implication assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of E.O. 13132, this rule does not 
have sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement. 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.

J. National Environmental Policy Act

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

K. Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in E.O.

[[Page 8933]]

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.

    Dated: February 12, 2018.
Joseph R. Balash,
Assistant Secretary--Land and Minerals Management.

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

PART 550--OIL AND GAS AND SULFUR 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 $43,576 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 $46,192 per 
COF per day of violation (that is, each day a COF is operated without 
acceptable evidence of OSFR).
* * * * *
[FR Doc. 2018-04248 Filed 3-1-18; 8:45 am]
 BILLING CODE 4310-MR-P



                                             8930                 Federal Register / Vol. 83, No. 42 / Friday, March 2, 2018 / Rules and Regulations

                                             copies total. One copy will include the                 as a carrier for flavors for use in animal            List of Subjects in 21 CFR Part 573
                                             information you claim to be confidential                feed and that the food additive                         Animal feeds, Food additives.
                                             with a heading or cover note that states                regulations should be amended as set
                                             ‘‘THIS DOCUMENT CONTAINS                                forth in this document. This is not a                   Therefore, under the Federal Food,
                                             CONFIDENTIAL INFORMATION.’’ The                         significant regulatory action subject to              Drug, and Cosmetic Act and under
                                             Agency will review this copy, including                 Executive Order 12866.                                authority delegated to the Commissioner
                                             the claimed confidential information, in                                                                      of Food and Drugs, 21 CFR part 573 is
                                             its consideration of objections. The                    III. Public Disclosure                                amended as follows:
                                             second copy, which will have the                          In accordance with § 571.1(h) (21 CFR               PART 573—FOOD ADDITIVES
                                             claimed confidential information                        571.1(h)), the petition and documents                 PERMITTED IN FEED AND DRINKING
                                             redacted/blacked out, will be available                 we considered and relied upon in                      WATER OF ANIMALS
                                             for public viewing and posted on                        reaching our decision to approve the
                                             https://www.regulations.gov. Submit                     petition will be made available for                   ■ 1. The authority citation for part 573
                                             both copies to the Dockets Management                   inspection at the Center for Veterinary               continues to read as follows:
                                             Staff. If you do not wish your name and                 Medicine by appointment with the
                                             contact information to be made publicly                                                                           Authority: 21 U.S.C. 321, 342, 348.
                                                                                                     information contact person (see FOR
                                             available, you can provide this                         FURTHER INFORMATION CONTACT). As
                                                                                                                                                           ■ 2. In § 573.940, add paragraphs (d)
                                             information on the cover sheet and not                  provided in § 571.1(h), we will delete                and (e) to read as follows:
                                             in the body of your objections and you                  from the documents any materials that                 § 573.940       Silicon dioxide.
                                             must identify this information as                       are not available for public disclosure
                                             ‘‘confidential.’’ Any information marked                                                                      *     *      *    *     *
                                                                                                     before making the documents available                   (d) It is used or intended for use in
                                             as ‘‘confidential’’ will not be disclosed               for inspection.
                                             except in accordance with 21 CFR 10.20                                                                        feed components, as a carrier as follows:
                                             and other applicable disclosure law. For                IV. Analysis of Environmental Impact
                                                                                                                                                                                                        Limitations
                                             more information about FDA’s posting                                                                                   Feed component                       (percent)
                                             of comments to public dockets, see 80                      The Agency has determined under 21
                                             FR 56469, September 18, 2015, or access                 CFR 25.32(r) that this action is of a type
                                                                                                                                                           Flavors ..................................       50
                                             the information at: https://www.gpo.gov/                that does not individually or
                                             fdsys/pkg/FR-2015-09-18/pdf/2015-                       cumulatively have a significant effect on
                                                                                                                                                              (e) To ensure safe use of the additive,
                                             23389.pdf.                                              the human environment. Therefore,
                                                                                                                                                           silicon dioxide is to be used in an
                                                Docket: For access to the docket to                  neither an environmental assessment,
                                                                                                                                                           amount not to exceed that reasonably
                                             read background documents or the                        nor an environmental impact statement
                                                                                                                                                           required to accomplish its intended
                                             electronic and written/paper objections                 is required.
                                                                                                                                                           effect, and silicon dioxide from all
                                             received, go to https://                                V. Objections and Hearing Requests                    sources cannot exceed 2 percent by
                                             www.regulations.gov and insert the                                                                            weight of the complete feed.
                                             docket number, found in brackets in the                    If you will be adversely affected by
                                                                                                                                                             Dated: February 26, 2018.
                                             heading of this document, into the                      one or more provisions of this
                                                                                                     regulation, you may file with the                     Leslie Kux,
                                             ‘‘Search’’ box and follow the prompts
                                                                                                     Dockets Management Staff (see                         Associate Commissioner for Policy.
                                             and/or go to the Dockets Management
                                             Staff, 5630 Fishers Lane, Rm. 1061,                     ADDRESSES) either electronic or written               [FR Doc. 2018–04275 Filed 3–1–18; 8:45 am]
                                             Rockville, MD 20852.                                    objections. You must separately number                BILLING CODE 4164–01–P

                                             FOR FURTHER INFORMATION CONTACT:                        each objection, and within each
                                             Chelsea Trull, Center for Veterinary                    numbered objection you must specify
                                             Medicine, Food and Drug                                 with particularity the provision(s) to                DEPARTMENT OF THE INTERIOR
                                             Administration, 7519 Standish Pl.                       which you object, and the grounds for
                                             (HFV–224), Rockville, MD 20855, 240–                    your objection. Within each numbered                  Bureau of Ocean Energy Management
                                             402–6729, chelsea.trull@fda.hhs.gov.                    objection, you must specifically state
                                                                                                     whether you are requesting a hearing on               30 CFR Parts 550 and 553
                                             SUPPLEMENTARY INFORMATION:
                                                                                                     the particular provision that you specify
                                                                                                                                                           [Docket ID: BOEM–2017–0079;
                                             I. Background                                           in that numbered objection. If you do                 MMAA104000]
                                                In a notice published in the Federal                 not request a hearing for any particular
                                             Register of September 25, 2017 (82 FR                   objection, you waive the right to a                   RIN 1010–AD99
                                             44542), FDA announced that we had                       hearing on that objection. If you request
                                                                                                     a hearing, your objection must include                Oil and Gas and Sulfur Operations in
                                             filed a food additive petition (animal                                                                        the Outer Continental Shelf—Civil
                                             use) (FAP 2304) submitted by Idemitsu                   a detailed description and analysis of
                                                                                                     the specific factual information you                  Penalties Inflation Adjustments
                                             Kosan, Cp. Ltd., Agri-Bio Business
                                             Dept., 1—1 Marunouchi 3-Chome,                          intend to present in support of the                   AGENCY:  Bureau of Ocean Energy
                                             Chiyoda-Ku, Tokyo 1000–8321, Japan.                     objection in the event that a hearing is              Management, Interior.
                                             The petition proposed that the                          held. If you do not include such a
                                                                                                                                                           ACTION: Final rule.
                                             regulations for food additives permitted                description and analysis for any
                                             in feed and drinking water of animals be                particular objection, you waive the right             SUMMARY:  This final rule implements
                                                                                                     to a hearing on the objection.                        the 2018 adjustment of the level of the
daltland on DSKBBV9HB2PROD with RULES




                                             amended to provide for the safe use of
                                             silicon dioxide as a carrier for flavors for               Any objections received in response                maximum civil monetary penalties
                                             use in animal feed.                                     to the regulation may be seen in the                  contained in the Bureau of Ocean
                                                                                                     Dockets Management Staff between 9                    Energy Management (BOEM) regulations
                                             II. Conclusion                                          a.m. and 4 p.m., Monday through                       pursuant to the Outer Continental Shelf
                                               FDA concludes that the data establish                 Friday, and will be posted to the docket              Lands Act (OCSLA), the Oil Pollution
                                             the safety and utility of silicon dioxide               at https://www.regulations.gov.                       Act of 1990 (OPA), the Federal Civil


                                        VerDate Sep<11>2014   16:25 Mar 01, 2018   Jkt 244001   PO 00000   Frm 00004   Fmt 4700   Sfmt 4700   E:\FR\FM\02MRR1.SGM     02MRR1


                                                                  Federal Register / Vol. 83, No. 42 / Friday, March 2, 2018 / Rules and Regulations                                          8931

                                             Penalties Inflation Adjustment Act                      and must make subsequent annual                       Memorandum M–18–03, BOEM has
                                             Improvements Act of 2015 (FCPIA of                      adjustments for inflation, beginning in               identified applicable civil monetary
                                             2015), and the Office of Management                     2017. Agencies were required to publish               penalties and calculated the necessary
                                             and Budget (OMB) guidance. The 2018                     the first annual inflation adjustments in             inflation adjustments. The previous
                                             adjustment multiplier of 1.02041                        the Federal Register by no later than                 civil penalty inflation adjustments
                                             accounts for one year of inflation                      January 15, 2017, and must publish                    accounted for inflation through October
                                             spanning the period from October 2016                   recurring annual inflation adjustments                2016. The required annual civil penalty
                                             through October 2017.                                   by no later than January 15 each                      inflation adjustment promulgated
                                             DATES: This rule is effective on March 2,               subsequent year. The purpose of these                 through this rule accounts for inflation
                                             2018.                                                   adjustments is to maintain the deterrent              through October 2017.
                                             FOR FURTHER INFORMATION CONTACT:                        effect of civil penalties and to further                 Annual inflation adjustments are
                                             Deanna Meyer-Pietruszka, Chief, Office                  the policy goals of the underlying                    based on the percent change between
                                             of Policy, Regulation and Analysis,                     statutes.                                             the Consumer Price Index for all Urban
                                             Bureau of Ocean Energy Management, at                      BOEM last adjusted the levels of civil
                                                                                                                                                           Consumers (CPI–U) for the October
                                             (202) 208–6352 or by email at                           monetary penalties in BOEM regulations
                                                                                                                                                           preceding the date of the adjustment,
                                             deanna.meyer-pietruszka@boem.gov.                       through a final rule, RIN 1010–AD95 [82
                                                                                                                                                           and the prior year’s October CPI–U.
                                             SUPPLEMENTARY INFORMATION:                              FR 10709], which was published on
                                                                                                                                                           Consistent with the guidance in OMB
                                             I. Background and Legal Authority                       February 15, 2017.
                                                                                                        The OMB Memorandum M–18–03,                        Memorandum M–18–03, BOEM divided
                                             II. Calculation of 2018 Adjustments
                                             III. Procedural Requirements                            issued December 15, 2017,                             the October 2017 CPI–U by the October
                                                A. Regulatory Planning and Review (E.O.              (Implementation of Penalty Inflation                  2016 CPI–U to calculate the multiplying
                                                   12866, 13563, and 13771)                          Adjustments for 2018, Pursuant to the                 factor. In this case, October 2017 CPI–
                                                B. Regulatory Flexibility Act                        Federal Civil Penalties Inflation                     U (246.663)/October 2016 CPI–U
                                                C. Small Business Regulatory Enforcement                                                                   (241.729) = 1.02041. OMB
                                                   Fairness Act                                      Adjustment Act Improvements Act of
                                                                                                     2015; https://www.whitehouse.gov/wp-                  Memorandum M–18–03 confirms that
                                                D. Unfunded Mandates Reform Act                                                                            this is the proper multiplier. (See OMB
                                                E. Takings (E.O. 12630)                              content/uploads/2017/11/M-18-03.pdf)
                                                F. Federalism (E.O. 13132)                           explains agency statutory                             Memorandum M–18–03 at 1 and n.4).
                                                G. Civil Justice Reform (E.O. 12988)                 responsibilities for: Identifying                        For 2018, OCSLA and the FCPIA of
                                                H. Consultation With Indian Tribes (E.O.             applicable penalties and performing the               2015 require that BOEM adjust the
                                                   13175 and Departmental Policy)                    annual adjustment; publishing revisions               OCSLA maximum civil penalty amount.
                                                I. Paperwork Reduction Act
                                                J. National Environmental Policy Act
                                                                                                     to regulations to implement the                       To accomplish this, BOEM multiplied
                                                K. Effects on the Energy Supply (E.O.                adjustment in the Federal Register;                   the existing OCSLA maximum civil
                                                   13211)                                            applying adjusted penalty levels; and                 penalty amount ($42,704) by the
                                                                                                     performing agency oversight of inflation              multiplying factor ($42,704 × 1.02041 =
                                             I. Background and Legal Authority                       adjustments.                                          $43,575.59). The FCPIA of 2015 requires
                                                The Outer Continental Shelf Lands                       BOEM is promulgating this 2018                     that the resulting amount be rounded to
                                             Act (OCSLA) directs the Secretary of the                inflation adjustment for civil penalties              the nearest $1.00 at the end of the
                                             Interior to adjust the OCSLA maximum                    as a final rule pursuant to the provisions            calculation process. Accordingly, the
                                             civil penalty amount at least once every                of the FCPIA of 2015 and OMB                          adjusted OCSLA maximum civil penalty
                                             three years to reflect any increase in the              guidance. A proposed rule is not                      is $43,576.
                                             Consumer Price Index to account for                     required because the FCPIA of 2015                       For 2018, the FCPIA of 2015 requires
                                             inflation (43 U.S.C. 1350(b)(1)). The                   states that agencies shall adjust civil
                                                                                                                                                           that BOEM adjust the OPA maximum
                                             Federal Civil Penalties Inflation                       monetary penalties ‘‘notwithstanding
                                                                                                                                                           civil penalty amount. To accomplish
                                             Adjustment Act of 1990 (Pub. L. 104–                    Section 553 of the Administrative
                                                                                                                                                           this, BOEM multiplied the current OPA
                                             410) (FCPIA of 1990) requires that all                  Procedure Act.’’ (FCPIA of 2015 at sec.
                                                                                                                                                           maximum civil penalty amount
                                             civil monetary penalties, including the                 4(b)(2)). Accordingly, Congress
                                                                                                                                                           ($45,268) by the multiplying factor
                                             OCSLA maximum civil penalty amount,                     expressly exempted the annual inflation
                                                                                                                                                           (45,268 × 1.02041 = $46,191.92). The
                                             be adjusted at least once every four                    adjustments implemented pursuant to
                                                                                                                                                           FCPIA of 2015 requires that the
                                             years.                                                  the FCPIA of 2015 from the pre-
                                                Similarly, the Oil Pollution Act of                                                                        resulting amount be rounded to the
                                                                                                     promulgation notice and comment
                                             1990 (OPA) authorizes the Secretary of                                                                        nearest $1.00 at the end of the
                                                                                                     requirements of the Administrative
                                             the Interior to impose civil penalties for                                                                    calculation process. Accordingly, the
                                                                                                     Procedure Act (APA), allowing them to
                                             failure to comply with financial                                                                              adjusted OPA maximum civil penalty is
                                                                                                     be published as a final rule. This
                                             responsibility regulations that                                                                               $46,192.
                                                                                                     interpretation of the statute is confirmed
                                             implement OPA. The FCPIA of 1990                        by OMB Memorandum M–18–03. (OMB                          The adjusted penalty levels will take
                                             requires that all civil monetary                        Memorandum M–18–03 at 4 (‘‘This                       effect immediately upon publication of
                                             penalties, including the OPA maximum                    means that the public procedure the                   this rule. Pursuant to the FCPIA of 2015,
                                             civil penalty amount, be adjusted for                   APA generally requires—notice, an                     the increases in the OCSLA and OPA
                                             inflation at least once every four years.               opportunity for comment, and a delay in               maximum civil penalty amounts apply
                                                The FCPIA of 2015 requires Federal                   effective date—is not required for                    to civil penalties assessed after the date
                                             agencies to promulgate annual inflation                 agencies to issue regulations                         the increase takes effect, even if the
                                             adjustments for civil monetary                          implementing the annual                               associated violation(s) predates such
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                                             penalties. Specifically, agencies are                   adjustment.’’)).                                      increase. Consistent with the provisions
                                             required to adjust the level of civil                                                                         of OCSLA, OPA, and the FCPIA of 2015,
                                             monetary penalties with an initial                      II. Calculation of 2018 Adjustments                   this rule adjusts the following maximum
                                             ‘‘catch-up’’ adjustment through an                        Under the FCPIA of 2015 and the                     civil monetary penalties per day per
                                             interim final rulemaking (IFR) in 2016,                 guidance provided in OMB                              violation:




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                                             8932                  Federal Register / Vol. 83, No. 42 / Friday, March 2, 2018 / Rules and Regulations

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

                                             30 CFR 550.1403 ...........    Failure to comply per day per violation ..........................................      $42,704          1.02041        $43,576
                                             30 CFR 553.51(a) ..........    Failure to comply per day per violation ..........................................       45,268          1.02041         46,192



                                             III. Procedural Requirements                             comment. (See FCPIA of 2015 at section                       (b) Meets the criteria of section 3(b)(2)
                                                                                                      4(b)(2); OMB Memorandum M–18–03 at                         requiring that all regulations be written
                                             A. Regulatory Planning and Review
                                                                                                      4). Thus, the RFA does not apply to this                   in clear language and contain clear legal
                                             (E.O. 12866, 13563, and 13771)
                                                                                                      rulemaking.                                                standards.
                                               Executive Order (E.O.) 12866 provides
                                             that the Office of Information and                       C. Small Business Regulatory                               H. Consultation With Indian Tribes
                                             Regulatory Affairs (OIRA) in the OMB                     Enforcement Fairness Act                                   (E.O. 13175 and Departmental Policy)
                                             will review all significant rules. OIRA                     This rule is not a major rule under 5                      The Department of the Interior strives
                                             has determined that this rule is not                     U.S.C. 804(2), the Small Business                          to strengthen its government-to-
                                             significant. (See OMB Memorandum M–                      Regulatory Enforcement Fairness Act.                       government relationship with Indian
                                             18–03 at 3).                                             This rule:                                                 tribes through a commitment to
                                               E.O. 13563 reaffirms the principles of                    (a) Will not have an annual effect on
                                                                                                                                                                 consultation with Indian tribes and
                                             E.O. 12866 while calling for                             the economy of $100 million or more;
                                                                                                         (b) Will not cause a major increase in                  recognition of their right to self-
                                             improvements in the Nation’s regulatory                                                                             governance and tribal sovereignty. We
                                             system to reduce uncertainty and to                      costs or prices for consumers,
                                                                                                      individual industries, Federal, State, or                  have evaluated this rule under the
                                             promote predictability and the use of                                                                               Department of the Interior’s
                                             the best, most innovative, and least                     local government agencies, or
                                                                                                      geographic regions; and                                    consultation policy, under Departmental
                                             burdensome tools for achieving                                                                                      Manual Part 512, Chapters 4 and 5, and
                                             regulatory ends. E.O. 13563 directs                         (c) Will not have significant adverse
                                                                                                      effects on competition, employment,                        under the criteria in E.O. 13175. We
                                             agencies to consider regulatory                                                                                     have determined that it has no
                                             approaches that reduce burdens and                       investment, productivity, innovation, or
                                                                                                      the ability of U.S.-based enterprises to                   substantial direct effects on Federally-
                                             maintain flexibility and freedom of                                                                                 recognized Indian tribes or Alaska
                                             choice for the public where these                        compete with foreign-based enterprises.
                                                                                                                                                                 Native Claims Settlement Act (ANCSA)
                                             approaches are relevant, feasible, and                   D. Unfunded Mandates Reform Act                            Corporations, and that consultation
                                             consistent with regulatory objectives.                                                                              under the Department of the Interior’s
                                                                                                         This rule does not impose an
                                             We have developed this rule in a                         unfunded mandate on state, local, or                       tribal and ANCSA consultation policies
                                             manner consistent with these                             tribal governments, or the private sector,                 is not required.
                                             requirements, to the extent relevant and                 of more than $100 million per year. The
                                             feasible given the limited discretion                                                                               I. Paperwork Reduction Act
                                                                                                      rule does not have a significant or
                                             provided agencies in FCPIA.                              unique effect on state, local, or tribal
                                               E.O. 13771 of January 30, 2017 directs                                                                              This rule does not contain
                                                                                                      governments or the private sector.                         information collection requirements,
                                             Federal agencies to reduce the
                                                                                                      Therefore, a statement containing the                      and a submission to the OMB under the
                                             regulatory burden on regulated entities
                                                                                                      information required by the Unfunded                       Paperwork Reduction Act (44 U.S.C.
                                             and control regulatory costs. E.O. 13771,
                                                                                                      Mandates Reform Act (2 U.S.C. 1531 et                      3501 et seq.) is not required. We may
                                             however, applies only to significant
                                                                                                      seq.) is not required.                                     not conduct or sponsor, and you are not
                                             regulatory actions, as defined in Section
                                             3(f) of E.O. 12866. OIRA has determined                  E. Takings (E.O. 12630)                                    required to respond to, a collection of
                                             that agency regulations exclusively                                                                                 information unless it displays a
                                                                                                        This rule does not effect a taking of                    currently valid OMB control number.
                                             implementing the annual adjustment are                   private property or otherwise have
                                             not significant regulatory actions under                 takings implications under E.O. 12630.                     J. National Environmental Policy Act
                                             E.O. 12866, provided they are consistent                 Therefore, a takings implication
                                             with OMB Memorandum M–18–03 (See                                                                                      This rule does not constitute a major
                                                                                                      assessment is not required.                                Federal action significantly affecting the
                                             OMB Memorandum M–18–03 at 3);
                                             thus, E.O. 13771 does not apply to this                  F. Federalism (E.O. 13132)                                 quality of the human environment. A
                                             rulemaking.                                                Under the criteria in section 1 of E.O.                  detailed statement under the National
                                                                                                      13132, this rule does not have sufficient                  Environmental Policy Act of 1969
                                             B. Regulatory Flexibility Act                                                                                       (NEPA) is not required because, as a
                                                                                                      federalism implications to warrant the
                                               The Regulatory Flexibility Act (RFA)                   preparation of a federalism summary                        regulation of an administrative nature,
                                             requires an agency to prepare a                          impact statement. Therefore, a                             this rule is covered by a categorical
                                             regulatory flexibility analysis for all                  federalism summary impact statement is                     exclusion (see 43 CFR 46.210(i)). We
                                             rules unless the agency certifies that the               not required.                                              have also determined that the rule does
                                             rule will not have a significant                                                                                    not involve any of the extraordinary
                                             economic impact on a substantial                         G. Civil Justice Reform (E.O. 12988)                       circumstances listed in 43 CFR 46.215
                                             number of small entities. The RFA                           This rule complies with the                             that would require further analysis
                                             applies only to rules for which an                                                                                  under NEPA. Therefore, a detailed
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                                                                                                      requirements of E.O. 12988.
                                             agency is required to first publish a                    Specifically, this rule:                                   statement under NEPA is not required.
                                             proposed rule. (See 5 U.S.C. 603(a) and                     (a) Meets the criteria of section 3(a)                  K. Effects on the Energy Supply (E.O.
                                             604(a)). The FCPIA of 2015 expressly                     requiring that all regulations be                          13211)
                                             exempts these annual inflation                           reviewed to eliminate errors and
                                             adjustments from the requirement to                      ambiguity and be written to minimize                         This rule is not a significant energy
                                             publish a proposed rule for notice and                   litigation; and                                            action under the definition in E.O.


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                                                                    Federal Register / Vol. 83, No. 42 / Friday, March 2, 2018 / Rules and Regulations                                                8933

                                             13211. Therefore, a Statement of Energy                   (that is, each day a COF is operated                  March 5–7, 2018; and March 12–14,
                                             Effects is not required.                                  without acceptable evidence of OSFR).                 2018. Additionally, the Meadowbrook
                                                                                                       *     *      *    *    *                              State Parkway Bridge shall remain in
                                             List of Subjects
                                                                                                       [FR Doc. 2018–04248 Filed 3–1–18; 8:45 am]            the closed position between 7 a.m.
                                             30 CFR Part 550                                           BILLING CODE 4310–MR–P                                Monday and 7 a.m. Wednesday as
                                               Administrative practice and                                                                                   follows: April 30–May 2, 2018; and May
                                             procedure, Continental shelf,                                                                                   7–9, 2018. The majority of
                                             Environmental impact statements,                          DEPARTMENT OF HOMELAND                                Meadowbrook State Parkway Bridge
                                             Environmental protection, Federal                         SECURITY                                              openings for the past three years
                                             lands, Government contracts,                                                                                    between March and April occurred on
                                             Investigations, Mineral resources, Oil                    Coast Guard                                           Fridays, Saturdays and Sundays.
                                             and gas exploration, Outer continental                                                                             The waterway is transited by
                                             shelf, Penalties, Pipelines, Reporting                    33 CFR Part 117                                       commercial and recreational traffic. The
                                             and recordkeeping requirements, Rights-                                                                         Coast Guard notified known waterway
                                                                                                       [Docket No. USCG–2018–0120]
                                             of-way, Sulfur.                                                                                                 users and there were no objections to
                                                                                                       Drawbridge Operation Regulation;                      this temporary deviation. Vessels able to
                                             30 CFR Part 553                                                                                                 pass under the bridge in the closed
                                                                                                       Sloop Channel, Hempstead, New York
                                                Administrative practice and                                                                                  position may do so at any time. The
                                             procedure, Continental shelf, Financial                   AGENCY: Coast Guard, DHS.                             bridge will not be able to open for
                                             responsibility, Liability, Limit of                       ACTION:Notice of deviation from                       emergencies and there is no immediate
                                             liability, Oil and gas exploration, Oil                   drawbridge regulation.                                alternate route for vessels to pass.
                                             pollution, Outer continental shelf,                                                                                The Coast Guard will also inform
                                                                                                       SUMMARY:    The Coast Guard has issued a              waterway users of the closure through
                                             Penalties, Pipelines, Reporting and
                                                                                                       temporary deviation from the operating                our Local and Broadcast Notices to
                                             recordkeeping requirements, Rights-of-
                                                                                                       schedule that governs the Meadowbrook                 Mariners of the change in operating
                                             way, Surety bonds, Treasury securities.
                                                                                                       State Parkway Bridge across the Sloop                 schedule for the bridge so that vessel
                                               Dated: February 12, 2018.                               Channel, mile 12.8, at Hempstead, New                 operators can arrange their transits to
                                             Joseph R. Balash,                                         York. This temporary deviation is                     minimize any impact caused by the
                                             Assistant Secretary—Land and Minerals                     necessary to allow the bridge to remain               temporary deviation.
                                             Management.                                               in the closed-to-navigation position to                  In accordance with 33 CFR 117.35(e),
                                               For the reasons stated in the                           facilitate the machinery rehabilitation               the drawbridge must return to its regular
                                             preamble, the BOEM amends 30 CFR                          and spanlock replacement of the bridge.               operating schedule immediately at the
                                             parts 550 and 553 as follows:                             This deviation allows the bridge to                   end of the effective period of this
                                                                                                       remain in the closed position.                        temporary deviation. This deviation
                                             PART 550—OIL AND GAS AND                                  DATES: This deviation is effective from               from the operating regulations is
                                             SULFUR OPERATIONS IN THE OUTER                            7 a.m. on March 5, 2018 to 7 a.m. on                  authorized under 33 CFR 117.35.
                                             CONTINENTAL SHELF                                         May 9, 2018.                                            Dated: February 26, 2018.
                                                                                                       ADDRESSES: The docket for this                        Christopher J. Bisignano,
                                             ■ 1. The authority citation for part 550
                                             continues to read as follows:                             deviation, USCG–2018–0120 is available                Supervisory Bridge Management Specialist,
                                                                                                       at http://www.regulations.gov. Type the               First Coast Guard District.
                                               Authority: 30 U.S.C. 1751; 31 U.S.C. 9701;              docket number in the ‘‘SEARCH’’ box
                                             43 U.S.C. 1334.                                                                                                 [FR Doc. 2018–04243 Filed 3–1–18; 8:45 am]
                                                                                                       and click ‘‘SEARCH’’. Click on Open
                                                                                                                                                             BILLING CODE 9110–04–P
                                             ■ 2. Revise § 550.1403 to read as                         Docket Folder on the line associated
                                             follows:                                                  with this deviation.
                                                                                                       FOR FURTHER INFORMATION CONTACT: If                   DEPARTMENT OF HOMELAND
                                             § 550.1403       What is the maximum civil
                                             penalty?                                                  you have questions on this temporary                  SECURITY
                                               The maximum civil penalty is                            deviation, call or email Judy Leung-Yee,
                                             $43,576 per day per violation.                            Project Officer, First Coast Guard                    Coast Guard
                                                                                                       District, telephone (212) 514–4330,
                                             PART 553—OIL SPILL FINANCIAL                              email judy.k.leung-yee@uscg.mil.                      33 CFR Part 117
                                             RESPONSIBILITY FOR OFFSHORE                               SUPPLEMENTARY INFORMATION: The owner                  [Docket No. USCG–2017–0050]
                                             FACILITIES                                                of the bridge, the New York State
                                                                                                       Department of Transportation, requested               RIN 1625–AA09
                                             ■ 3. The authority citation for part 553                  a temporary deviation to facilitate the
                                             continues to read as follows:                                                                                   Drawbridge Operation Regulation;
                                                                                                       machinery rehabilitation and spanlock
                                                                                                                                                             Sturgeon Bay, Sturgeon Bay, WI
                                               Authority: 33 U.S.C. 2704, 2716; E.O.                   replacement of the bridge. The
                                             12777, as amended.                                        Meadowbrook State Parkway Bridge                      AGENCY:    Coast Guard, DHS.
                                             ■ 4. In § 553.51, revise paragraph (a) to                 across the Sloop Channel, mile 12.8, has              ACTION:   Final rule.
                                             read as follows:                                          a vertical clearance in the closed
                                                                                                       position of 22 feet at mean high water                SUMMARY:   The Coast Guard is modifying
                                             § 553.51 What are the penalties for not                   and 25 feet at mean low water. The                    the operating regulation that governs the
                                             complying with this part?                                                                                       Bayview (State Route 42/57) Bridge,
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                                                                                                       existing bridge operating regulations are
                                                (a) If you fail to comply with the                     found at 33 CFR 117.799(h).                           Mile 3.0, Maple-Oregon Bridge, Mile
                                             financial responsibility requirements of                     This temporary deviation allows the                4.17, and Michigan Street Bridge, Mile
                                             OPA at 33 U.S.C. 2716 or with the                         Meadowbrook State Parkway Bridge to                   4.3, all over the Sturgeon Bay Ship
                                             requirements of this part, then you may                   remain in the closed position daily on                Canal in Sturgeon Bay, WI, by
                                             be liable for a civil penalty of up to                    Monday, Tuesday, and Wednesday                        authorizing remote operation for all
                                             $46,192 per COF per day of violation                      between 7 a.m. and 7 p.m. as follows:                 three drawbridges. The operating


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Document Created: 2018-03-01 23:56:19
Document Modified: 2018-03-01 23:56:19
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 March 2, 2018.
ContactDeanna Meyer-Pietruszka, Chief, Office of Policy, Regulation and Analysis, Bureau of Ocean Energy Management, at (202) 208-6352 or by email at [email protected]
FR Citation83 FR 8930 
RIN Number1010-AD99
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; Sulfur; Financial Responsibility; Liability; Limit of Liability; Oil Pollution; Surety Bonds and Treasury Securities

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