The Bureau of Ocean Energy Management (BOEM) has announced a final rule implementing the 2025 inflation adjustments for maximum daily civil monetary penalties in BOEM regulations, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act (FCPIAA Improvements Act) of 2015. This act mandates that federal agencies adjust civil monetary penalties for inflation annually to maintain their deterrent effect and further the policy goals of underlying statutes. The maximum civil monetary penalties per day per violation have been adjusted to $55,764 for violations under the Outer Continental Shelf Lands Act and $59,114 for violations under the Oil Pollution Act.
The final rule is now available through the Federal Register, and the adjusted penalty levels will take immediate effect upon publication. This rule ensures that penalties for violations of BOEM regulations are up-to-date and in line with inflation, maintaining their effectiveness as a deterrent and supporting the policy goals of relevant statutes. By implementing these adjustments, BOEM aims to uphold regulatory compliance and accountability within the offshore energy industry, promoting responsible practices and protecting the environment.
The FCPIAA Improvements Act underscores the importance of regularly adjusting civil monetary penalties for inflation to ensure their continued effectiveness in deterring violations and upholding regulatory standards. By adhering to these requirements, BOEM is demonstrating its commitment to enforcing compliance with offshore energy regulations and holding violators accountable for their actions. The publication of this final rule marks a significant step towards maintaining the integrity and efficacy of civil penalties within the industry.
