10306 Federal Register / Vol. 87, No. 37 / Thursday, February 24, 2022 / Rules and Regulations 

taxable year ending December 31, 

2023.’’ 

Oluwafunmilayo A. Taylor, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel, (Procedure and Administration). 

[FR Doc. 2022–03612 Filed 2–23–22; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Safety and Environmental 

Enforcement 

30 CFR Part 250 

[Docket ID: BSEE–2022–0002; 223E1700D2 

EEEE500000 ET1SF0000.EAQ000] 

RIN 1014–AA55 

Oil and Gas and Sulfur Operations on 

the Outer Continental Shelf—Civil 

Penalty Inflation Adjustment 

AGENCY: Bureau of Safety and 

Environmental Enforcement, Interior. 

ACTION: Final rule. 

SUMMARY: This final rule adjusts the 

level of the maximum daily civil 

monetary penalty contained in the 

Bureau of Safety and Environmental 

Enforcement (BSEE) regulations for 

violations of the Outer Continental Shelf 

Lands Act (OCSLA), in accordance with 

the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 and Office of Management and 

Budget (OMB) guidance. The civil 

penalty inflation adjustment, using a 

1.06222 multiplier, accounts for one 

year of inflation based on the Consumer 

Price Index (CPI) spanning from October 

2020 to October 2021. 

DATES: This rule is effective on February 

24, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Janine Marie Tobias, Safety and 

Enforcement Division, Bureau of Safety 

and Environmental Enforcement, (202) 

208–4657 or by email: regs@bsee.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background and Legal Authority 

The OCSLA, at 43 U.S.C. 1350(b)(1), 

directs the Secretary of the Interior 

(Secretary) to adjust the OCSLA 

maximum daily civil penalty amount at 

least once every three years to reflect 

any increase in the CPI to account for 

inflation. On November 2, 2015, the 

President signed into law the Federal 

Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015 (Sec. 701 of 

Pub. L. 114–74) (FCPIA of 2015). The 

FCPIA of 2015 required Federal 

agencies to adjust the level of civil 

monetary penalties found in their 

regulations with an initial ‘‘catch-up’’ 

adjustment through rulemaking, if 

warranted, and then to make subsequent 

annual adjustments for inflation. The 

purpose of these adjustments is to 

maintain the deterrent effect of civil 

penalties and to further the policy goals 

of the underlying statutes. Agencies 

were required to publish the first annual 

inflation adjustments in the Federal 

Register by no later than January 15, 

2017, and must publish recurring 

annual inflation adjustments by no later 

than January 15 of each subsequent 

year. 

BSEE last updated the maximum 

daily civil penalty amounts in BSEE’s 

regulations for OCSLA violations by a 

final rule published and effective on 

May 4, 2021. (See 86 FR 23606). 

Consistent with OMB guidance, the 

2021 final rule implemented the 

inflation adjustments required by the 

FCPIA of 2015 through October 2020. 

The OMB Memorandum M–22–07 

(Implementation of Penalty Inflation 

Adjustments for 2022, Pursuant to the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015; available at https://

www.whitehouse.gov/wp-content/ 

uploads/2021/12/M-22-07.pdf) explains 

agency responsibilities for: Identifying 

applicable penalties and performing the 

annual adjustment; publishing revisions 

to regulations to implement the 

adjustment in the Federal Register; 

applying adjusted penalty levels; and 

performing agency oversight of inflation 

adjustments. 

BSEE is promulgating this 2022 

inflation adjustment for the OCSLA 

maximum daily civil penalties as a final 

rule pursuant to the provisions of the 

FCPIA of 2015 and OMB’s guidance. A 

proposed rule is not required because 

the FCPIA of 2015 expressly exempted 

the annual inflation adjustments 

implemented pursuant to the FCPIA of 

2015 from the pre-promulgation notice 

and comment requirements of the 

Administrative Procedure Act, 5 U.S.C. 

553 et seq. (the APA), allowing those 

adjustments to be published directly as 

final rules. Specifically, the FCPIA of 

2015 states that agencies shall adjust 

civil monetary penalties 

‘‘notwithstanding Section 553 of the 

Administrative Procedure Act.’’ (FCPIA 

of 2015 at § 4(b)(2)). This interpretation 

of the FCPIA of 2015 is confirmed by 

OMB Memorandum M–22–07 at 3–4 

(‘‘This means that the public procedure 

the APA generally requires—notice, an 

opportunity for comment, and a delay in 

effective date—is not required for 

agencies to issue regulations 

implementing the annual adjustment.’’). 

II. Calculation of Adjustments 

In accordance with the FCPIA of 2015 

and the guidance provided in OMB 

Memorandum M–22–07, BSEE has 

calculated the necessary inflation 

adjustment for the maximum daily civil 

monetary penalty amount in 30 CFR 

250.1403 for violations of OCSLA. The 

previous OCSLA civil penalty inflation 

adjustment accounted for inflation 

through October 2020. The required 

annual civil penalty inflation 

adjustment promulgated through this 

rule accounts for inflation through 

October 2021. 

Annual inflation adjustments are 

based on the percent change between 

the CPI 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–22– 

07, BSEE divided the October 2021 

CPI–U by the October 2020 CPI–U to 

calculate the multiplying factor. In this 

case, the October 2021 CPI–U (276.589) 

divided by the October 2020 CPI–U 

(260.388) is 1.06222. OMB 

MemorandumM–22–07 confirms that 

this is the proper multiplier. (OMB 

Memorandum M–22–07 at 1 & n.4). 

The FCPIA of 2015 requires that BSEE 

adjust the OCSLA maximum daily civil 

penalty amount for inflation using the 

applicable 2022 multiplier (1.06222). 

Accordingly, BSEE multiplied the 

existing OCSLA maximum daily civil 

penalty amount ($46,000) by 1.06222 to 

arrive at the new maximum daily civil 

penalty amount ($48,862.12). The 

FCPIA of 2015 requires that the 

resulting amount be rounded to the 

nearest $1.00 at the end of the 

calculation process. Accordingly, the 

adjusted OCSLA maximum daily civil 

penalty for 2022 is $48,862. 

The adjusted penalty levels take effect 

immediately upon publication of this 

rule. Pursuant to the FCPIA of 2015, the 

increase in the OCSLA maximum daily 

civil penalty amount applies to civil 

penalties assessed after the date the 

increase takes effect, even when the 

associated violation(s) predates such 

increase. Consistent with the provisions 

of OCSLA and the FCPIA of 2015, this 

rule adjusts the following maximum 

civil monetary penalty per day per 

violation as follows: 


jspears on DSK121TN23PROD with RULES1
Federal Register / Vol. 87, No. 37 / Thursday, February 24, 2022 / Rules and Regulations 10307 

CFR citation Description of the penalty 

Current 

maximum 

penalty 

Multiplier 

Adjusted 

maximum 

penalty 

30 CFR 250.1403 ......................... Failure to comply per-day, per-violation ........................... $46,000 1.06222 $48,862 

III. Procedural Requirements 

A. Regulatory Planning and Review 

(E.O. 12866 and 13563) 

Executive Order (E.O.) 12866 provides 

that the OMB Office of Information and 

Regulatory Affairs (OIRA) will review 

all significant rules. OIRA has 

determined that this rule is not 

significant. (See OMB Memorandum M– 

22–07 at 3). 

E.O. 13563 reaffirms the principles of 

E.O. 12866 while calling for 

improvements in the Nation’s regulatory 

system to promote predictability, to 

reduce uncertainty, and to use the best, 

most innovative, and least burdensome 

tools for achieving regulatory ends. E.O. 

13563 directs agencies to consider 

regulatory approaches that reduce 

burdens and maintain flexibility and 

freedom of choice for the public where 

these approaches are relevant, feasible, 

and consistent with regulatory 

objectives. E.O. 13563 further 

emphasizes that regulations must be 

based on the best available science and 

that the rulemaking process must allow 

for public participation and an open 

exchange of ideas. We have developed 

this rule in a manner consistent with 

these requirements, to the extent 

permitted by statute. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

requires an agency to prepare a 

regulatory flexibility analysis for rules 

unless the agency certifies that the rule 

will not have a significant economic 

impact on a substantial number of small 

entities. The RFA applies only to rules 

for which an agency is required to first 

publish a proposed rule. (See 5 U.S.C. 

603(a) and 604(a)). The FCPIA of 2015 

expressly exempts these annual 

inflation adjustments from the 

requirement to publish a proposed rule 

for notice and comment. (See FCPIA of 

2015 at § 4(b)(2); OMB Memorandum 

M–22–07 at 3–4). Thus, the RFA does 

not apply to this rulemaking. 

C. Small Business Regulatory 

Enforcement Fairness Act 

This rule is not a major rule under 5 

U.S.C. 804(2), the Small Business 

Regulatory Enforcement Fairness Act. 

This rule: 

(1) Does not have an annual effect on 

the economy of $100 million or more; 

(2) Will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, or 

local government agencies, or 

geographic regions; and 

(3) Does not have significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

the ability of U.S.-based enterprises to 

compete with foreign-based enterprises. 

D. Unfunded Mandates Reform Act 

This rule does not impose an 

unfunded mandate on State, local, or 

tribal governments, or the private sector 

of more than $100 million per year. The 

rule does not have a significant or 

unique effect on State, local, or tribal 

governments or the private sector. 

Therefore, a statement containing the 

information required by the Unfunded 

Mandates Reform Act (2 U.S.C. 1531 et 

seq.) is not required. 

E. Takings (E.O. 12630) 

This rule does not effect a taking of 

private property or otherwise have 

takings implications under E.O. 12630. 

Therefore, a takings implication 

assessment is not required. 

F. Federalism (E.O. 13132) 

Under the criteria in section 1 of E.O. 

13132, this rule does not have sufficient 

federalism implications to warrant the 

preparation of a federalism summary 

impact statement. To the extent that 

State and local governments have a role 

in Outer Continental Shelf activities, 

this rule will not affect that role. 

Therefore, a federalism summary impact 

statement is not required. 

G. Civil Justice Reform (E.O. 12988) 

This rule complies with the 

requirements of E.O. 12988. 

Specifically, this rule: 

(1) Meets the criteria of section 3(a) 

requiring that all regulations be 

reviewed to eliminate errors and 

ambiguity and be written to minimize 

litigation; and 

(2) Meets the criteria of section 3(b)(2) 

requiring that all regulations be written 

in clear language and contain clear legal 

standards. 

H. Consultation With Indian Tribes 

(E.O. 13175 and Departmental Policy) 

The Department of the Interior strives 

to strengthen its government-togovernment relationship with Indian 

Tribes through a commitment to 

consultation with Indian Tribes and 

recognition of their right to selfgovernance and tribal sovereignty. We 

have evaluated this rule under the 

Department of the Interior’s 

consultation policy, under Departmental 

Manual Part 512 Chapters 4 and 5, and 

under the criteria in E.O. 13175. We 

have determined that it has no 

substantial direct effects on Federally 

recognized Indian Tribes or Alaska 

Native Claims Settlement Act (ANCSA) 

Corporations, and that consultation 

under the Department of the Interior’s 

tribal and ANCSA consultation policies 

is not required. 

I. Paperwork Reduction Act 

This rule does not contain 

information collection requirements, 

and a submission to the OMB under the 

Paperwork Reduction Act (44 U.S.C. 

3501 et seq.) is not required. 

J. National Environmental Policy Act 

This rule does not constitute a major 

Federal action because of the nondiscretionary nature of the civil penalty 

adjustment as required by law (40 CFR 

1508.1(q)(1(ii)). The Department of 

Labor’s CPI sets the annual civil penalty 

adjustment as required by the FCPIA of 

2015. BSEE has no discretion in the 

execution of the civil penalty 

adjustments. Because this rule is not a 

Major Federal Action, it is therefore not 

subject to the requirements of the 

National Environmental Policy Act of 

1969 (NEPA). 

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

13211) 

This rule is not a significant energy 

action under the definition in E.O. 

13211. Therefore, a Statement of Energy 

Effects is not required. 

List of Subjects in 30 CFR Part 250 

Administrative practice and 

procedure, Continental shelf, 

Environmental impact statements, 

Environmental protection, Government 

contracts, Investigations, Mineral 

resources, Oil and gas exploration, 

Penalties, Pipelines, Continental shelf— 

mineral resources, Continental Shelf— 


jspears on DSK121TN23PROD with RULES1
10308 Federal Register / Vol. 87, No. 37 / Thursday, February 24, 2022 / Rules and Regulations 

rights-of-way, Reporting and 

recordkeeping requirements, and Sulfur. 

Laura Daniel-Davis, 

Principal Deputy Assistant Secretary, Land 

and Minerals Management. 

For the reasons given in the preamble, 

the BSEE amends Title 30, Chapter II, 

Subchapter B, part 250 of the Code of 

Federal Regulations as follows. 

PART 250—OIL AND GAS AND 

SULFUR OPERATIONS IN THE OUTER 

CONTINENTAL SHELF 

■ 1. The authority citation for 30 CFR 

part 250 continues to read as follows: 

Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 

33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334. 

■ 2. Revise § 250.1403 to read as 

follows: 

§ 250.1403 What is the maximum civil 

penalty? 

The maximum civil penalty is 

$48,862 per day per violation. 

[FR Doc. 2022–03750 Filed 2–23–22; 8:45 am] 

BILLING CODE 4310–VH–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 16 

Program Fraud Civil Remedies 

AGENCY: Departmental Offices, Treasury. 

ACTION: Final rule. 

SUMMARY: This final rule updates the 

definition of ‘‘investigating official’’ in 

the Department’s Program Fraud 

regulations. The definition is revised to 

include inspectors general that have 

been established since the Program 

Fraud regulations were implemented. 

This final rule adopts a November 23, 

2021 proposed rule without change. 

DATES: Effective March 28, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Brian Sonfield, Assistant General 

Counsel for General Law, Ethics & 

Regulation at (202) 622–9804. 

SUPPLEMENTARY INFORMATION: 

Background and Proposed Rule 

The Department promulgated 

implementing regulations for the 

Program Fraud Civil Remedies Act of 

1986 (Act) (31 U.S.C. 3801 through 

3812) on September 17, 1987 (52 FR 

35071). The Act generally provides that 

any person who knowingly submits a 

false claim or statement to the Federal 

Government may be liable for an 

administrative civil penalty for each 

false claim or statement, and, in certain 

cases, to an assessment equal to double 

the amount falsely claimed. 

The Act vests authority to investigate 

allegations of liability under its 

provisions in an agency’s investigating 

official. Based upon the results of an 

investigation, the agency reviewing 

official determines, with the 

concurrence of the Attorney General, 

whether to refer the matter to a 

presiding officer for an administrative 

hearing. Any penalty or assessment 

imposed under the Act may be collected 

by the Attorney General, through the 

filing of a civil action, or by offsetting 

amounts other than tax refunds, owed 

the particular party by the federal 

government. 

The Act grants agency investigating 

officials authority to require by 

subpoena the production of 

documentary evidence which is ‘‘not 

otherwise reasonably available.’’ If the 

case proceeds to hearing, the presiding 

officer may require the attendance and 

testimony of witnesses as well as the 

production of documentary evidence. 

The Department of the Treasury 

adopted implementing regulations at 31 

CFR part 16, which designated the 

Department’s Assistant Secretary for 

Management as the authority head, 

designated the Department’s Inspector 

General as the investigating official, and 

assigned the role of reviewing official to 

the General Counsel or designee. 

On November 23, 2021 (86 FR 66497), 

the Department issued a proposed rule 

that would revise the definition of 

investigating official in § 16.2. Since the 

regulations were promulgated in 1987, 

three inspectors general have been 

established including the Treasury 

Inspector General for Tax 

Administration (See Internal Revenue 

Service Restructuring and Reform Act of 

1998, Pub. L. 105–206, 112 Stat. 685), 

the Special Inspector General for the 

Troubled Asset Relief Program (See 

Emergency Economic Stabilization Act 

of 2008, Pub. L. 110–343, 122 Stat. 

3765), and the Special Inspector General 

for Pandemic Recovery (See 

Coronavirus Aid, Relief, and Economic 

Security Act, Pub. L. 116–136, 134 Stat. 

281). The proposed revision would 

define investigating official as any 

Inspector General, including any 

Special Inspector General, with 

investigatory authority over programs of 

the Department of the Treasury. 

This Final Rule 

The public comment period on the 

proposed rule closed on January 6, 

2022. One comment was received that 

supported the proposal. The Department 

appreciates the commenter’s input. 

For the reasons discussed in the 

proposed rule and this preamble, the 

Department adopts the proposed rule 

without change. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA), 

5 U.S.C. 601 et seq., requires agencies to 

prepare an initial regulatory flexibility 

analysis (IRFA) to determine the 

economic impact of the rule on small 

entities. A small entity is defined as 

either a small business, a small 

organization, or a small governmental 

jurisdiction; an individual is not a small 

entity. Section 605(b) of the RFA allows 

an agency to prepare a certification in 

lieu of an IRFA if the rule will not have 

a significant economic impact on a 

substantial number of small entities. 

Pursuant to 5 U.S.C. 605(b), it is hereby 

certified that this regulation will not 

have a significant economic impact on 

a substantial number of small entities. 

The rule is limited to updating the 

definition of investigating official for 

program fraud investigations in order to 

reflect current law. Accordingly, this 

rule will have no direct impacts on 

small entities. 

Regulatory Planning and Review 

Executive Orders 13563 and 12866 

direct agencies to assess costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule is 

not a ‘‘significant regulatory action’’ 

under Executive Order 12866. 

Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 requires 

that agencies assess anticipated costs 

and benefits and take certain other 

actions before issuing a rule that 

includes any federal mandate that may 

result in expenditures in any one year 

by a state, local, or tribal government, in 

the aggregate, or by the private sector, of 

$100 million in 1995 dollars, updated 

annually for inflation. This regulation 

does not include any federal mandate 

that may result in expenditures by state, 

local, or tribal governments, or by the 

private sector in excess of that 

threshold. 

Federalism 

Executive Order 13132 (titled 

Federalism) prohibits an agency from 

publishing any rule that has federalism 


jspears on DSK121TN23PROD with RULES1