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Federal Register / Vol. 86, No. 84 / Tuesday, May 4, 2021 / Rules and Regulations adjustments required by the FCPIA of 2015 through October 2019.
The OMB Memorandum M2110
Implementation of Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015; available at https
www.whitehouse.gov/wp-content/
uploads/2020/12/M-21-10.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 2021
inflation adjustment for the OCSLA
maximum daily civil penalties as a final rule pursuant to the provisions of the FCPIA of 2015 and OMBs 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
II. Calculation of Adjustments In accordance with the FCPIA of 2015
and the guidance provided in OMB
Memorandum M2110, 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 2019. The required annual civil penalty inflation adjustment promulgated through this rule accounts for inflation through October 2020.
Annual inflation adjustments are based on the percent change between the Consumer Price Index for all Urban Consumers CPIU for the October preceding the date of the adjustment, and the prior years October CPIU.
Consistent with the guidance in OMB
Memorandum M2110, BSEE divided the October 2020 CPIU by the October Description of the penalty
30 CFR 250.1403

Failure to comply per-day, per-violation

A. Regulatory Planning and Review E.O. 12866, 13563, and 13771
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
2110 at 3.
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the Nations 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
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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 3f of E.O. 12866. OIRA has determined that agency regulations implementing the annual adjustment required by the FCPIA of 2015 are not significant regulatory actions under E.O. 12866, provided they are consistent with OMB
Memorandum M2110. See OMB
Memorandum M2110 at 3. Thus, E.O. 13771 does not apply to this rulemaking.

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2019 CPIU to calculate the multiplying factor. In this case, the October 2020
CPIU 260.388 divided by the October 2019 CPIU 257.346 is 1.01182. OMB
Memorandum M2110 confirms that this is the proper multiplier. OMB
Memorandum M2110 at 1, n.4.
The FCPIA of 2015 requires that BSEE
adjust the OCSLA maximum daily civil penalty amount for inflation using the applicable 2021 multiplier 1.01182.
Accordingly, BSEE multiplied the existing OCSLA maximum daily civil penalty amount $45,463 by 1.01182 to arrive at the new maximum daily civil penalty amount $46,000.37. 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 2021 is $46,000.
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 violations 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:
Current maximum penalty
CFR citation
III. Procedural Requirements
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notwithstanding Section 553 of the Administrative Procedure Act. FCPIA
of 2015 at 4b2. This interpretation of the FCPIA of 2015 is confirmed by OMB Memorandum M2110 at 3
This means that the public procedure the APA generally requiresnotice, an opportunity for comment, and a delay in effective dateis not required for agencies to issue regulations implementing the annual adjustment..

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$45,463

Multiplier 1.01182

Adjusted maximum penalty $46,000

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.
603a and 604a. 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 4b2; OMB Memorandum M2110 at 3. 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. 8042, the Small Business Regulatory Enforcement Fairness Act.
This rule:

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