Federal Register - January 28, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 17 / Thursday, January 28, 2021 / Rules and Regulations purpose of these adjustments is to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes.
The Office of Management and Budget OMB issued guidance for Federal agencies on calculating the catch-up adjustment. See February 24, 2016, Memorandum for the Heads of Executive Departments and Agencies, from Shaun Donovan, Director, Office of Management and Budget, re:
Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 M1606.
Under the guidance, the Department identified applicable civil monetary penalties and calculated the catch-up adjustment. A civil monetary penalty is any assessment with a dollar amount that is levied for a violation of a Federal civil statute or regulation, and is assessed or enforceable through a civil action in Federal court or an administrative proceeding. A civil monetary penalty does not include a penalty levied for violation of a criminal statute, or fees for services, licenses, permits, or other regulatory review. The calculated catch-up adjustment is based on the percent change between the Consumer Price Index for all Urban Consumers CPI0U for the month of October in the year of the previous
adjustment or in the year of establishment, if no adjustment has been made and the October 2015 CPI
U.
The Bureau issued an interim final rule providing for calculated catch-up adjustments on June 30, 2016 81 FR
42478 with an effective date of August 1, 2016, and requesting comments postpromulgation. The Bureau issued a final rule affirming the catch-up adjustments set forth in the interim final rule on December 2, 2016 81 FR 86953. The Bureau then issued a final rule making the next scheduled annual inflation adjustment for 2017 on January 23, 2017
82 FR 7649, for 2018 on February 6, 2018 83 FR 5192, for 2019 on April 15, 2019 84 FR 15098, and for 2020 on February 19, 2020 85 FR 9366.
II. Calculation of 2021 Annual Adjustments OMB recently issued guidance to assist Federal agencies in implementing the annual adjustments required by the Act, which agencies must complete by January 15, 2021. See December 23, 2020, Memorandum for the Heads of Executive Departments and Agencies, from Russell T. Vought, Director, Office of Management and Budget, re:
Implementation of Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil Penalties Inflation
Description of penalty
25 CFR 140.3
25 CFR 141.50
Penalty for trading in Indian country without a license
Penalty for trading on Navajo, Hopi or Zuni reservations without a license.
Penalty for violation of leases of Tribal land for mineral development, violation of part 211, or failure to comply with a notice of noncompliance or cessation order.
Penalty for failure of lessee to comply with lease of restricted lands of members of the Five Civilized Tribes in Oklahoma for mining, operating regulations at part 213, or orders.
Penalty for violation of minerals agreement, regulations at part 225, other applicable laws or regulations, or failure to comply with a notice of noncompliance or cessation order.
Penalty for violation of lease of Osage reservation lands for oil and gas mining or regulations at part 226, or noncompliance with the Superintendents order.
Penalty per day for failure to obtain permission to start operations ..
Penalty per day for failure to file records
Penalty for each well and tank battery for failure to mark wells and tank batteries.
Penalty each day after operations are commenced for failure to construct and maintain pits.
Penalty for failure to comply with requirements regarding valve or other approved controlling device.
Penalty for failure to notify Superintendent before drilling, redrilling, deepening, plugging, or abandoning any well.
Penalty per day for failure to properly care for and dispose of deleterious fluids.
Penalty per day for failure to file plugging and other required reports
25 CFR 211.55
25 CFR 213.37
25 CFR 225.37
25 CFR 226.42
25 CFR 226.43a
25 CFR 226.43b
25 CFR 226.43c
25 CFR 226.43d
25 CFR 226.43e
25 CFR 226.43f
25 CFR 226.43g
25 CFR 226.43h
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Adjustment Act Improvements Act of 2015 M2110. The guidance states that the cost-of-living adjustment multiplier for 2021, based on the Consumer Price Index CPIU for the month of October 2020, not seasonally adjusted, is 1.01182. The annual inflation adjustments are based on the percent change between the October CPIU preceding the date of the adjustment, and the prior years October CPIU. For 2021, OMB explains, October 2020 CPIU 260.388/October 2019 CPIU 257.346 = 1.01182. The guidance instructs agencies to complete the 2021 annual adjustment by multiplying each applicable penalty by the multiplier, 1.01182, and rounding to the nearest dollar. Further, agencies should apply the multiplier to the most recent penalty amount that includes the initial catch-up adjustment required by the Act.
The annual adjustment applies to all civil monetary penalties with a dollar amount that are subject to the Act. This final rule adjusts the following civil monetary penalties contained in the Bureaus regulations for 2021 by multiplying 1.01182 i.e., the cost-ofliving adjustment multiplier for 2021
by each penalty amount as updated by the adjustment made in the prior year 2020:
Current penalty including catchup adjustment
CFR citation
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Annual adjustment multiplier
Adjusted penalty for 2021
$1,352
1,352
1.01182
1.01182
$1,368
1,368
1,626
1.01182
1,645
1,352
1.01182
1,368
1,721
1.01182
1,741
965
1.01182
976
96
96
96
1.01182
1.01182
1.01182
97
97
97
96
1.01182
97
193
1.01182
195
385
1.01182
390
965
1.01182
976
96
1.01182
97
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