USA - BOEM adjusts its monetary penalties for inflation
These adjustments are intended to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes.
The Bureau of Ocean Energy Management (BOEM) recently announced a Final Rule that implements the 2023 inflation adjustments for the maximum daily civil monetary penalties contained in BOEM regulations in accordance with Federal law.
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This final rule implements the 2023 inflation adjustments to the maximum daily civil monetary penalties contained in the Bureau of Ocean Energy Management (BOEM) regulations for violations of the Outer Continental Shelf Lands Act (OCSLA) and the Oil Pollution Act of 1990 (OPA), pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Improvements Act) and relevant Office of Management and Budget (OMB) guidance. The 2023 adjustment multiplier of 1.07745 accounts for 1 year of inflation from October 2021 through October 2022.
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The Federal Civil Penalties Inflation Adjustment Act Improvements Act (FCPIAA Improvements Act) of 2015 requires Federal agencies to adjust the level of civil monetary penalties for inflation annually. These adjustments are intended to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes.
Under the FCPIAA Improvements Act of 2015, this rule adjusts the maximum civil monetary penalties per day per violation to $52,646 for violations under the Outer Continental Shelf Lands Act and to $55,808 for violations under the Oil Pollution Act of 1990.
The Final Rule is available via the Federal Register. The adjusted penalty levels will take effect immediately upon publication of this rule.
