2025 Civil Penalties Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer Continental Shelf

<RULE> DEPARTMENT OF THE INTERIOR <SUBAGY>Bureau of Ocean Energy Management</SUBAGY> <CFR>30 CFR Parts 550 and 553</CFR> <DEPDOC>[Docket ID: BOEM-2025-0001]</DEPDOC> <RIN>RIN 1010-AE22</RIN> <SUBJECT>2025 Civil Penalties Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer Continental Shelf</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Bureau of Ocean Energy Management, Interior. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> This final rule implements the 2025 inflation adjustments to the maximum daily civil monetary penalties in the Bureau of Ocean Energy Management's (BOEM) regulations for violations of the Outer Continental Shelf Lands Act (OCSLA) and the Oil Pollution Act of 1990 (OPA). These inflation adjustments are made pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Improvements Act) and Office of Management and Budget (OMB) memorandum M-25-02. The 2025 adjustment multiplier of 1.02598 accounts for 1 year of inflation from October 2023 through October 2024. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> This rule is effective on January 13, 2025. </EFFDATE> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Questions regarding the inflation adjustment methodology or amount should be directed to Jayson Pollock, Economics Division, BOEM, at <E T="03">jayson.pollock@boem.gov</E> or at (703) 787-1537. Questions regarding the timing of this adjustment or the applicability of the regulations should be directed to Karen Thundiyil, Director, Office of Regulatory Affairs, BOEM at <E T="03">karen.thundiyil@boem.gov</E> or at (202) 742-0970. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <EXTRACT> <FP SOURCE="FP-2">I. Legal Authority</FP> <FP SOURCE="FP-2">II. Background and Purpose</FP> <FP SOURCE="FP-2">III. Calculation of the 2025 Adjustments</FP> <FP SOURCE="FP-2">IV. Statutory and Executive Order Reviews</FP> <FP SOURCE="FP1-2">A. Statutes</FP> <FP SOURCE="FP1-2">1. National Environmental Policy Act</FP> <FP SOURCE="FP1-2">2. Regulatory Flexibility Act</FP> <FP SOURCE="FP1-2">3. Paperwork Reduction Act</FP> <FP SOURCE="FP1-2">4. Unfunded Mandates Reform Act</FP> <FP SOURCE="FP1-2">5. Small Business Regulatory Enforcement Fairness Act</FP> <FP SOURCE="FP1-2">6. Congressional Review Act</FP> <FP SOURCE="FP1-2">B. Executive Orders (E.O.)</FP> <FP SOURCE="FP1-2">1. Governmental Actions and Interference With Constitutionally Protected Property Rights (E.O. 12630)</FP> <FP SOURCE="FP1-2">2. Regulatory Planning and Review (E.O. 12866); Modernizing Regulatory Review (E.O. 14094); Improving Regulation and Regulatory Review (E.O. 13563)</FP> <FP SOURCE="FP1-2">3. Civil Justice Reform (E.O. 12988)</FP> <FP SOURCE="FP1-2">4. Federalism (E.O. 13132)</FP> <FP SOURCE="FP1-2">5. Consultation and Coordination With Indian Tribal Governments (E.O. 13175)</FP> <FP SOURCE="FP1-2">6. Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use (E.O. 13211)</FP> </EXTRACT> <HD SOURCE="HD1">I. Legal Authority</HD> OCSLA authorizes the Secretary of the Interior (the Secretary) to impose a daily civil monetary penalty for a violation of OCSLA or its implementing regulations, leases, permits, or orders. It also directs the Secretary to adjust the maximum penalty at least every 3 years to reflect any inflation increase in the Consumer Price Index. 43 U.S.C. 1350(b)(1). Similarly, OPA authorizes civil monetary penalties for failure to comply with OPA's financial responsibility provisions or its implementing regulations. 33 U.S.C. 2716a(a). OPA does not include a maximum daily civil penalty inflation adjustment provision, but such adjustment is authorized by the Improvements Act. <E T="03">See</E> 28 U.S.C. 2461 note. The Improvements Act  <SU>1</SU> <FTREF/> requires that Federal agencies publish inflation adjustments to their civil monetary penalties in the <E T="04">Federal Register</E> not later than January 15 annually. <SU>2</SU> <FTREF/> The purposes of these inflation adjustments are to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes. Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101-410, sec. 2 (codified at 28 U.S.C. 2461 note). <FTNT> <SU>1</SU>  The Improvements Act amended the Federal Civil Penalties Inflation Adjustment Act of 1990. <E T="03">See</E> Public Law 101-410 (codified at 28 U.S.C. 2461 note). </FTNT> <FTNT> <SU>2</SU>  Under the Improvements Act, Federal agencies were required to adjust their civil monetary penalties for inflation with an initial “catch-up” adjustment through an interim final rulemaking in 2016 and must make subsequent inflation adjustments not later than January 15 annually, beginning in 2017. Public Law 114-74, sec. 701(b)(1). </FTNT> <HD SOURCE="HD1">II. Background and Purpose</HD> BOEM implemented the 2024 inflation adjustment for its civil monetary penalties through a final rule entitled, “2024 Civil Penalties Inflation Adjustments for Oil, Gas, and Sulfur Operations in the Outer Continental Shelf,” which was published in the <E T="04">Federal Register</E> on January 25, 2024 at 89 FR 4815. That rule accounted for inflation for the 12-month period between October 2022 and October 2023. OMB memorandum M-25-02  <SU>3</SU> <FTREF/> reiterates agency responsibilities under the Improvements Act. Such responsibilities include identifying applicable penalties and performing the annual adjustment; publishing revisions to regulations to implement the adjustment in the <E T="04">Federal Register</E> ; applying adjusted penalty dollar amounts; and performing agency oversight of inflation adjustments. <FTNT> <SU>3</SU>  OMB Memorandum M-25-02 “Implementation of Penalty Inflation Adjustments for 2025, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015” is available at <E T="03">https://www.whitehouse.gov/wp-content/uploads/2024/12/M-25-02.pdf.</E> </FTNT> Pursuant to the Improvements Act and OMB M-25-02, this final rule implements BOEM's 2025 inflation adjustments to OCSLA and OPA maximum daily civil monetary penalties. A proposed rule is unnecessary as the Improvements Act expressly exempts annual civil penalty inflation adjustments from the Administrative Procedure Act's (APA) notice of proposed rulemaking, public comment, and standard effective date provisions. Improvements Act, Public Law 114-74, sec. 701(b)(1)(D); APA, 5 U.S.C. 553. <SU>4</SU> <FTREF/> <FTNT> <SU>4</SU>  Specifically, Congress directed that agencies adjust civil monetary penalties “notwithstanding section 553 of title 5, United States Code [Administrative Procedure Act (APA)],” which generally requires prior notice of proposed rulemaking, opportunity for public comment on proposed rulemaking, and publication of a final rule at least 30 days before its effective date. Improvements Act, sec. 701(b)(1)(D); APA, 5 U.S.C. 553. OMB confirmed this interpretation of the Improvements Act. OMB M-25-02 at 4 (“This means that the notice and comment process the APA generally requires— <E T="03">i.e.,</E> notice, an opportunity for comment, and a delay in effective date—is not required for agencies to issue regulations implementing the annual adjustment.”). </FTNT> On July 22, 2021, BOEM issued a final rule entitled, “Maximum Daily Civil Penalty Amounts for Violations of the Federal Oil and Gas Royalty Management Act” (86 FR 38557). The rule amended BOEM's regulations that set maximum daily civil penalty (MDCP) amounts for violations of the Federal Oil and Gas Royalty Management Act (FOGRMA). The amendment cross-referenced BOEM's regulations to the Office of Natural Resources Revenue (ONRR) regulations that also set MDCP amounts for FOGRMA violations. This cross-reference ensured consistency between BOEM's FOGRMA MDCP amounts and ONRR's FOGRMA MDCP amounts. Because ONRR annually adjusts its MDCP for inflation, the cross-referencing rule also ensured consistent compliance with the Improvements Act and related OMB guidance while reducing possible confusion among regulated parties and unnecessary duplication of effort and costs to the Federal Government. The cross-reference to ONRR's regulations relieves BOEM of the necessity to adjust its FOGRMA MDCP. <HD SOURCE="HD1">III. Calculation of the 2025 Adjustments</HD> In accordance with the Improvements Act, BOEM determined that OCSLA and OPA maximum daily civil monetary penalties require annual inflation adjustments. BOEM issues this final rule adjusting those penalty amounts for inflation through October 2024. The annual inflation adjustment is based on the percent 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 OMB M-25-02, the 2025 inflation adjustment multiplier can be calculated by dividing the October 2024 CPI-U by the October 2023 CPI-U. In this case, October 2024 CPI-U (315.664)/October 2023 CPI-U (307.671) = 1.02598. For 2025, BOEM multiplied the current OCSLA maximum daily civil monetary penalty of $54,352 by the multiplier 1.02598, which equals $55,764.06. The Improvements Act requires that the resulting amount be rounded to the nearest dollar. Accordingly, the 2025 adjusted OCSLA maximum daily civil monetary penalty is $55,764. For 2025, BOEM multiplied the current OPA maximum daily civil penalty amount of $57,617 by the multiplier 1.02598, which equals $59,113.89. The Improvements Act requires that the resulting amount be rounded to the nearest dollar. Accordingly, the 2025 adjusted OPA maximum daily civil monetary penalty is $59,114. The adjusted penalty amounts take effect immediately upon publication of this rule. 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