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Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations multiplier. In this case, October 2020
CPIU 260.388/October 2019 CPIU
257.346 = 1.01182. OMB
Memorandum M2110 confirms that this is the proper multiplier. OMB
Memorandum M2110 at 1 and n.4.
The 2015 Act requires the BLM to adjust the civil penalty amounts in 43
CFR 3163.2 and 43 CFR 9239.53f1.
To accomplish this, the BLM multiplied the current penalty amounts in 43 CFR
3163.2b1 and 2, d, e, and f by the multiplier set forth in OMB
Memorandum M2110 1.01182 to obtain the adjusted penalty amounts.
The 2015 Act requires that the resulting amounts be rounded to the nearest $1.00
at the end of the calculation process.

This years adjustments include 43
CFR 9239.53f1, which provides for a penalty of not more than $1,000 for each day of violation for willfully conducting coal exploration for commercial purposes without an exploration license. This provision meets the criteria for annual adjustments under the 2015 Act but was inadvertently omitted in previous adjustments. Consistent with OMB
Memorandum M1606 February 24, 2016, the adjusted penalty amount was calculated by applying the initial catch-up adjustment based on the percent change between the CPIU for 1977, the year the current penalty amount was established by regulation,
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43
43
43
43
43

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A. Administrative Procedure Act In accordance with the 2015 Act, agencies must adjust civil monetary penalties notwithstanding Section 553
of the Administrative Procedure Act sec. 4b2, 2015 Act. The BLM is promulgating this 2021 inflation adjustment for civil penalties as a final rule pursuant to the provisions of the 2015 Act and OMB guidance. A
proposed rule is not required because the 2015 Act expressly exempts the annual inflation adjustments from the notice and comment requirements of the Administrative Procedure Act. In addition, since the 2015 Act does not give the BLM any discretion to vary the amount of the annual inflation adjustment for any given penalty to reflect any views or suggestions provided by commenters, it would serve no purpose to provide an opportunity for public comment on this rule.

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B. Regulatory Planning and Review Executive Orders 12866 and 13563
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 M2110 at 3.
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the nations regulatory system to promote predictability and to
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Current penalty
Failure to comply
If corrective action is not taken
If transporter fails to permit inspection for documentation
Failure to permit inspection, failure to notify
False or inaccurate documents; unlawful transfer or purchase
Coal exploration for commercial purposes without an exploration license
III. Procedural Requirements
VerDate Sep<11>2014

and the October 2015 CPIU, giving a catch-up adjustment multiplier of 3.86101 for 2016. After applying the initial catch-up adjustment multiplier, that amount was multiplied by 1.09481
to reflect the combined annual inflation adjustments for 2017 to 2021, giving an adjusted penalty of $4,227.00.
The adjusted penalty amounts will take effect immediately upon publication of this rule. Pursuant to the 2015 Act, the adjusted civil penalty amounts apply to civil penalties assessed after the date the increase takes effect, even if the associated violation predates such increase. This final rule adjusts the following civil penalties:

Description of the penalty
3163.2b1
3163.2b2
3163.2d
3163.2e
3163.2f
9239.53f1

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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 emphasizes further 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 the 2015 Act.
C. 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. 603a and 604a. The 2015 Act expressly exempts these annual inflation adjustments from the requirement to publish a proposed rule for notice and comment see sec.
4b2, 2015 Act. Because the final rule in this case does not include publication of a proposed rule, the RFA does not apply to this final rule.

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$1,115
11,160
1,115
22,320
55,800
1,000

Adjusted penalty $1,128
11,292
1,128
22,584
56,460
4,227

D. Small Business Regulatory Enforcement Fairness Act This rule is not a major rule under 5
U.S.C. 8042, 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.
This rule will potentially affect individuals and companies who conduct operations on oil and gas leases or who explore for coal for commercial purposes without an exploration license on Federal or Indian lands. The BLM
believes that the vast majority of potentially affected entities will be small businesses as defined by the Small Business Administration.
However, the BLM does not believe the rule will pose a significant economic impact on the oil and gas or coal industries, including any small entities, as any lessee or trespasser can avoid being assessed civil penalties by operating in compliance with BLM rules and regulations.

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