2538 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations 

DEPARTMENT OF THE INTERIOR 

Bureau of Safety and Environmental 

Enforcement 

30 CFR Part 250 

[Docket ID: BSEE–2018–0001; 189E1700D2 

ET1SF0000.PSB000 EEEE500000] 

RIN 1014–AA36 

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 civil monetary 

penalty contained in the Bureau of 

Safety and Environmental Enforcement 

(BSEE) regulations pursuant to the 

Outer Continental Shelf Lands Act 

(OCSLA), 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 

1.02041 multiplier, accounts for one 

year of inflation spanning October 2016 

to October 2017. 

DATES: This rule is effective on January 

18, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Mehaffey, Safety and 

Enforcement Division, Bureau of Safety 

and Environmental Enforcement, (202) 

208–3955 or by email: regs@bsee.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background and Legal Authority 

II. Calculation of 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 OCSLA, at 43 U.S.C. 1350(b)(1), 

directs the Secretary of the Interior 

(Secretary) to adjust the OCSLA 

maximum civil penalty amount at least 

once every three years to reflect any 

increase in the Consumer Price Index 

(CPI) to account for inflation. On 

November 2, 2015, the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 (Sec. 701 of 

Pub. L. 114–74) (FCPIA of 2015) became 

law. The FCPIA of 2015 required 

Federal agencies to adjust the level of 

civil monetary penalties with an initial 

‘‘catch-up’’ adjustment through 

rulemaking, if warranted, and then to 

make subsequent annual adjustments 

for inflation. 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. 

BSEE last updated civil penalty 

amounts in BSEE regulations through a 

final rule (RIN 1014–AA34; 82 FR 9136), 

published and effective on February 3, 

2017. Consistent with OMB guidance, 

BSEE’s final rule (FR) implemented the 

adjustments required by the FCPIA of 

2015 through October 2016. 

The OMB Memorandum M–18–03 

(Implementation of the 2018 annual 

adjustment pursuant to the FCPIA of 

2015; [https://www.whitehouse.gov/wpcontent/uploads/2017/11/M-18-03.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 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 

section 4(b)(2)). Accordingly, Congress 

expressly exempted the annual inflation 

adjustments implemented pursuant to 

the FCPIA of 2015 from the prepromulgation 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 Adjustments 

Under the FCPIA of 2015 and the 

guidance provided in OMB 

Memorandum M–18–03, BSEE has 

identified the applicable civil monetary 

penalty and calculated the necessary 

inflation adjustment. The previous 

OCSLA civil penalty inflation 

adjustment 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 percentage 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, BSEE 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. (OMB 

Memorandum M–18–03 at 1 and n.4.). 

For 2018, OCSLA and the FCPIA of 

2015 require that BSEE adjust the 

OCSLA maximum civil penalty amount. 

To accomplish this, BSEE multiplied 

the existing OCSLA maximum civil 

penalty amount ($42,704) by the 

multiplying factor ($42,704 × 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. 

The adjusted penalty levels take effect 

immediately upon publication of this 

rule. Pursuant to the FCPIA of 2015, the 

increase in the OCSLA maximum 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: 


sradovich on DSK3GMQ082PROD with RULES
Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations 2539 

CFR citation Description of the penalty 

Current 

maximum 

penalty 

Multiplier 

Adjusted 

maximum 

penalty 

30 CFR 250.1403 ........................................... Failure to comply per-day, per-violation ........ $42,704 1.02041 $43,576 

III. Procedural Requirements 

A. Regulatory Planning and Review 

(Executive Orders 12866, 13563, and 

13771) 

Executive Order (E.O.) 12866 provides 

that the OMB Office of Information and 

Regulatory Affairs will review all 

significant rules. The OMB Office of 

Information and Regulatory Affairs 

(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 promote predictability, to 

reduce uncertainty, and to use the best, 

most innovative, and least burdensome 

tools for achieving regulatory ends. E.O. 

13563 directs agencies to consider 

regulatory approaches that reduce 

burdens and maintain flexibility and 

freedom of choice for the public where 

these approaches are relevant, feasible, 

and consistent with regulatory 

objectives. E.O. 13563 further 

emphasizes that regulations must be 

based on the best available science and 

that the rulemaking process must allow 

for public participation and an open 

exchange of ideas. We have developed 

this rule in a manner consistent with 

these requirements, to the extent 

permitted by statute. 

E.O. 13771 of January 30, 2017, 

directs Federal agencies to reduce the 

regulatory burden on regulated entities 

and control regulatory costs. E.O. 13771, 

however, applies only to significant 

regulatory actions, as defined in Section 

3(f) of E.O. 12866. OIRA has determined 

that agency regulations 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 4); 

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: 

(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. 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 Federallyrecognized Indian tribes or Alaska 

Native Claims Settlement Act (ANCSA) 

Corporations, and that consultation 

under the Department of the Interior’s 

tribal and ANCSA consultation policies 

is not required. 

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. 


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2540 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations 

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, 

Continental Shelf—mineral resources, 

Continental Shelf—rights-of-way, 

Environmental impact statements, 

Environmental protection, Government 

contracts, Investigations, Oil and gas 

exploration, Penalties, Pipelines, 

Reporting and recordkeeping 

requirements, Sulfur. 

Joseph R. Balash, 

Assistant Secretary—Land and Minerals 

Management, U.S. Department of the Interior. 

For the reasons given in the preamble, 

the Bureau of Safety and Environmental 

Enforcement amends title 30, chapter II, 

subchapter B, part 250 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 

$43,576 per day per violation. 

[FR Doc. 2018–00920 Filed 1–17–18; 8:45 am] 

BILLING CODE 4310–VH–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Ocean Energy Management 

30 CFR Part 553 

[Docket ID: BOEM–2017–0048; 

MMAA104000] 

RIN 1010–AD98 

Oil Spill Financial Responsibility 

Adjustment of the Limit of Liability for 

Offshore Facilities 

AGENCY: Bureau of Ocean Energy 

Management, Interior. 

ACTION: Final rule. 

SUMMARY: The Bureau of Ocean Energy 

Management is issuing this final rule to 

adjust the offshore facility limit of 

liability for damages under the Oil 

Pollution Act of 1990 (OPA) to reflect 

the increase in the Consumer Price 

Index (CPI) since 2013. This rule 

increases the OPA offshore facility limit 

of liability for damages from $133.65 

million to $137.6595 million. 

DATES: This rule is effective on February 

20, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Questions regarding the inflation 

adjustment methodology or amount 

should be directed to Mr. Martin 

Heinze, Economics Division, BOEM, at 

martin.heinze@boem.gov or at 703–787– 

1141. Questions regarding the timing of 

this adjustment or the applicability of 

the regulations should be directed to 

Deanna Meyer-Pietruszka, Chief, Office 

of Policy, Regulation and Analysis, 

Bureau of Ocean Energy Management 

(BOEM), at deanna.meyer-pietruszka@

boem.gov or at (202) 208–6352. 

SUPPLEMENTARY INFORMATION: 

I. Background 

II. Calculation of the 2017 Adjustment 

III. Effective Date 

IV. 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 

The OPA established a 

comprehensive regime for addressing 

the consequences of oil spills, ranging 

from spill response to compensation for 

damages to injured parties. Under Title 

I of the OPA, the responsible parties for 

any vessel or facility, including any 

offshore facility that discharges or poses 

a substantial threat of discharge of oil 

into or upon navigable waters, adjoining 

shorelines, or the exclusive economic 

zone, are liable for the removal costs 

and damages that result from such 

discharge or threat of discharge, as 

specified in 33 U.S.C. 2702(a) and (b). 

Under 33 U.S.C. 2704(a), however, the 

total liability of each responsible party 

is limited, subject to certain exceptions 

specified in 33 U.S.C. 2704(c). In 1990, 

the OPA provided that responsible 

parties for an offshore facility incident 

were liable for ‘‘the total of all removal 

costs plus $75,000,000.’’ (33 U.S.C. 

2704(a)(3)). 

To prevent the real value of the OPA 

limits of liability from declining over 

time as a result of inflation, and shifting 

the financial risk of oil spill incidents to 

the Oil Spill Liability Trust Fund 

(OSLTF), the OPA requires that the 

President adjust the limits of liability 

‘‘not less than every three years,’’ by 

regulation, to reflect significant 

increases in the CPI. (33 U.S.C. 

2704(d)(4)). This mandate, in place 

since 1990, preserves the deterrent 

effect and ‘‘polluter pays’’ principle 

embodied in OPA. 

BOEM last adjusted for inflation the 

OPA offshore facility limit of liability 

for damages on December 12, 2014 (79 

FR 73832). That 2014 rule updated the 

offshore facility limit of liability based 

on the Consumer Price Index All Urban 

Consumer (CPI–U) using the 2013 

annual average CPI–U. The Bureau of 

Labor Statisitcs (BLS) has published the 

2016 annual average CPI–U, which 

BOEM is using to calculate this threeyear inflation adjustment for the 

offshore facility limit of liability. 

BOEM is promulgating this rule 

pursuant to the provisions of Title I of 

OPA, Executive Order (E.O.) 12777, as 

amended, and BOEM regulations at 30 

CFR part 553, subpart G—Limit of 

Liability for Offshore Facilities. A 

proposed rule is unnecessary, and 

BOEM thus has good cause for issuing 

this final rule under 5 U.S.C. 553(b), 

because the adjustment in the limit of 

liability is mandated by statute, the 

methodology for determining the 

amount is defined in BOEM’s 

regulations, and those regulations at 

§§ 553.703(b)(4) and 553.704 provide 

that inflation adjustments to the 

offshore facilities limit of liability will 

be implemented through final 

rulemaking. The legislative and 

regulatory history for OPA limit of 

liability inflation adjustments can be 

found in the rulemaking preamble for 

the last inflation adjustment at 79 FR 

73832. 

II. Calculation of the 2017 Adjustment 

The methodology for calculating the 

offshore facilities limit of liability 

inflation adjustment is provided in 

§ 553.703. 

Section 553.703(b)(2) requires that, 

not later than every three years from the 

year the limit of liability was last 

adjusted for inflation, BOEM will 

evaluate whether the cumulative 

percent change in the annual CPI since 

that year has reached a significance 

threshold of three percent or greater. 

BOEM’s regulations specify Annual 

CPI–U as the appropriate mechanism by 

which to measure CPI. The limit of 

liability was last adjusted using the 

2013 Annual CPI–U and BOEM has 

determined that the cumulative percent 

change in the Annual CPI–U since 2013 


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