This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

714 

Vol. 89, No. 4 

Friday, January 5, 2024 

INTERNATIONAL DEVELOPMENT 

FINANCE CORPORATION 

2 CFR Chapter XVI 

Nonprocurement Suspension and 

Debarment 

AGENCY: U.S. International Development 

Finance Corporation. 

ACTION: Proposed rule. 

SUMMARY: The U.S. International 

Development Finance Corporation 

(DFC) invites the general public and 

other Federal agencies to take this 

opportunity to comment on proposed 

nonprocurement debarment and 

suspension regulations. Under this 

system, a person who is debarred or 

suspended is excluded from Federal 

financial and nonfinancial assistance 

and benefits under Federal programs 

and activities. The proposed regulations 

adopt the common rule format 

established by the Office of Management 

and Budget (OMB). In this document 

DFC proposes establishing a new CFR 

chapter that adopts OMB’s final 

Governmentwide guidance on 

nonprocurement debarment and 

suspension and contains supplemental 

DFC nonprocurement debarment and 

suspension provisions. 

DATES: Comments must be received by 

March 5, 2024. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Mail: Deborah Papadopoulos, 

Records and Information Management 

Specialist, U.S. International 

Development Finance Corporation, 1100 

New York Avenue NW, Washington, DC 

20527. 

• Email: fedreg@dfc.gov. 

Instructions: All submissions received 

must include the subject ‘‘DFC Proposed 

Rule on Suspension and Debarment.’’ 

Please note that all written comments 

received in response to this notice will 

be considered public records. 

FOR FURTHER INFORMATION CONTACT: 

Agency Submitting Officer: Deborah 

Papadopoulos, (202) 357–3979, Email: 

fedreg@dfc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Executive Order 12549 (51 FR 6370, 

February 18, 1986) established a 

Governmentwide debarment and 

suspension system covering the full 

range of Federal procurement and 

nonprocurement activities, and to 

establish procedures for debarment and 

suspension from participation in 

Federal nonprocurement programs. 

Section 6 of the Executive order 

authorized OMB to issue guidelines to 

Executive departments and agencies 

that govern which programs and 

activities are covered by the Executive 

order, prescribe Governmentwide 

criteria and Governmentwide minimum 

due process procedures, and set forth 

other related details for the effective 

administration of the guidelines. 

Section 3 directed agencies to issue 

implementing regulations that are 

consistent with OMB guidelines. 

OMB issued an interim final guidance 

that implemented a common rule for 

Governmentwide Debarment and 

Suspension (Nonprocurement). This 

common rule is codified in part 180 of 

title 2 of the Code of Federal 

Regulations (70 FR 51864, August 31, 

2005). In addition to restating and 

updating its guidance on 

nonprocurement debarment and 

suspension, the interim final guidance 

requires all Federal agencies to adopt a 

new approach to Federal agency 

implementation of the guidance. OMB 

requires each agency to issue a brief rule 

that: (1) Adopts the guidance, giving it 

regulatory effect for that agency’s 

activities; and (2) states any agencyspecific additions, clarifications, and 

exceptions to the Governmentwide 

policies and procedures contained in 

the guidance. 

Under this system, a person who is 

debarred or suspended is excluded from 

Federal financial and nonfinancial 

assistance and benefits under Federal 

programs and activities. Debarment or 

suspension of a participant in a program 

by one agency is registered with the 

General Services Administration (GSA)- 

maintained System for Award 

Management (SAM) exclusion list and 

has Governmentwide, reciprocal effect 

on that participant’s ability to obtain 

procurement and nonprocurement 

contracts. 

After notice and comment by the 

public, DFC intends to adopt the OMB 

regulations found in 2 CFR part 180 

with agency specific additions and 

clarifications. To adopt these 

regulations, 2 CFR 180.25 requires 

Federal agencies to address certain 

agency specific elements. Accordingly, 

the following proposed regulations state 

what contracts are covered under this 

policy, identify the official authorized to 

grant exceptions to an excluded persons 

list, and state the person responsible for 

communicating requirements to both 

first and second tier program 

participants. By default, elements not 

addressed in the agency specific 

regulations will be covered by the 

Governmentwide sections in the 

common rule. 

Invitation To Comment 

We intend the proposed new chapter 

in 2 CFR to adopt the OMB guidelines 

with specified agency additions and 

clarifications as outlined in this notice 

of proposed rulemaking. We invite 

comments on the provisions contained 

in the common rule as well as any 

aspect of this proposed rulemaking. 

Regulatory Analysis 

Executive Order 12866 

DFC is an independent agency and is 

not subject to Executive Order 12866. 

Regulatory Flexibility Act of 1980 (5 

U.S.C. 605(b)) 

This regulatory action will not have a 

significant adverse impact on a 

substantial number of small entities. 

Unfunded Mandates Act of 1995 

This regulatory action does not 

contain a Federal mandate that will 

result in the expenditure by State, local, 

and Tribal Governments, in aggregate, or 

by the private sector of $100 million or 

more in any one year. 

Paperwork Reduction Act of 1995 

This proposed rule does not impose 

any additional reporting or 

recordkeeping requirements under the 

Paperwork Reduction Act. 

Federalism (Executive Order 13132) 

This regulatory action does not have 

federalism implications, as set forth in 

Executive Order 13132. It will not have 

substantial direct effects on the States, 


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on the relationship between the 

National Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. 

List of Subjects in 2 CFR Part XVI 

Administrative practice and 

procedure, Assistance programs, 

Debarment and suspension, Reporting 

and recordkeeping requirements. 

■ For the reasons set forth in the 

preamble, under the authority at 2 CFR 

180.30, the United States International 

Development Finance Corporation 

proposes to add 2 CFR chapter XVI (16), 

consisting of parts 1600–1699, to read as 

follows: 

Chapter XVI (16)—US International 

Development Finance Corporation 

PART 1600—NONPROCUREMENT 

DEBARMENT AND SUSPENSION 

PARTS 1601–1699 [RESERVED] 

PART 1600—NONPROCUREMENT 

DEBARMENT AND SUSPENSION 

Sec. 

1600.10 What does this part do? 

1600.20 Does this part apply to me? 

1600.30 What regulations must I follow? 

Subpart A—General 

1600.137 Who in DFC may grant an 

exception to let an excluded person 

participate in a covered transaction? 

Subpart B—Covered Transactions 

1600.215 Which nonprocurement 

transactions are not covered 

transactions? 

1600.220 What contracts and subcontracts 

are covered transactions? 

Subpart C—Responsibilities of Participants 

Regarding Transactions 

1600.332 What requirements must I pass 

down to persons at lower tiers with 

whom I intend to do business? 

Subpart D—Responsibilities of Federal 

Agency Officials Regarding Transactions 

1600.437 What method do I use to 

communicate to a participant the 

requirements for participating in a 

covered transaction? 

Subparts E and F [Reserved] 

Subpart G—Suspension 

1600.765 How may I request 

reconsideration of my DFC suspension? 

Subpart H—Debarment 

1600.890 How may I request 

reconsideration of my DFC debarment? 

Subpart I—Definitions 

1600.930 Debarring official. 

1600.1010 Suspending official. 

Authority: Sec. 2455, Pub. L. 103–355, 108 

Stat. 3327 (31 U.S.C. 6101 note); E.O. 12549, 

51 FR 6370, 3 CFR, 1986 Comp., p. 189; E.O. 

12689, 54 FR 34131, 3 CFR, 1989 Comp., p. 

235. 

§ 1600.10 What does this part do? 

This part adopts the Office of 

Management and Budget (OMB) 

guidance in subparts A through I of 2 

CFR part 180, as supplemented by this 

part, as the U.S. International 

Development Finance Corporation 

(DFC) regulations for non-procurement 

debarment and suspension. It thereby 

gives regulatory effect for DFC to the 

OMB guidance as supplemented by this 

part. This part satisfies the requirements 

in section 3 of Executive Order 12549, 

‘‘Debarment and Suspension’’ (3 CFR, 

1986 Comp., p. 189); Executive Order 

12689, ‘‘Debarment and Suspension’’ (3 

CFR, 1989 Comp., p. 235); and section 

2455 of the Federal Acquisition 

Streamlining Act of 1994, Public Law 

103–355 (31 U.S.C. 6101 note). 

§ 1600.20 Does this part apply to me? 

This part and, through this part, 

pertinent portions of the OMB guidance 

in subparts A through I of 2 CFR part 

180 (see table at 2 CFR 180.100(b)) 

apply to you if you are a— 

(a) Participant or principal in a 

‘‘covered transaction’’ (see subpart B of 

2 CFR part 180 and the definition of 

‘‘non-procurement transaction’’ at 2 CFR 

180.970); 

(b) Respondent in a DFC suspension 

or debarment action; 

(c) DFC suspending or debarring 

official; and 

(d) DFC investment, guarantee, 

insurance or grant official authorized to 

enter into any type of non-procurement 

transaction that is a covered transaction. 

§ 1600.30 What regulations must I follow? 

The DFC regulations that you must 

follow are the regulations specified in 

each applicable section of the OMB 

guidance in subparts A through I of 2 

CFR part 180 as that section is 

supplemented by the section in this part 

with the same section number or by 

additional provisions with no 

corresponding section number. For any 

section of OMB guidance in subparts A 

through I of 2 CFR part 180 that has no 

corresponding section in this part, DFC 

regulations are those in the OMB 

guidance. 

Subpart A—General 

§ 1600.137 Who in DFC may grant an 

exception to let an excluded person 

participate in a covered transaction? 

The Chief Executive Officer (CEO) of 

DFC or designee may grant an exception 

permitting an excluded person to 

participate in a particular covered 

transaction. If the CEO of DFC or 

designee grants an exception, the 

exception must be in writing and state 

the reason(s) for deviating from the 

Governmentwide policy in Executive 

Order 12549. 

Subpart B—Covered Transactions 

§ 1600.215 Which nonprocurement 

transactions are not covered transactions? 

In addition to the nonprocurement 

transactions which are not covered 

transactions under 2 CFR 180.215, any 

nonprocurement transaction entered 

into under a primary tier 

nonprocurement transaction that does 

not require DFC explicit prior consent is 

not a covered transaction under 2 CFR 

180.215(g)(2). 

§ 1600.220 What contracts and 

subcontracts are covered transactions? 

None. Although the OMB guidance at 

2 CFR 180.220(c) allows a Federal 

agency to do so (see also optional lower 

tier coverage in the figure in the 

appendix to 2 CFR part 180), DFC does 

not extend coverage of nonprocurement 

suspension and debarment requirements 

beyond first-tier procurement under a 

covered nonprocurement transaction. 

Moreover, for purposes of determining 

whether a procurement contract is 

included as a covered transaction, the 

threshold in 2 CFR 180.220(b) is 

increased from $25,000 to the 

‘‘simplified acquisition threshold’’ as 

defined in 48 CFR 2.101. 

Subpart C—Responsibilities of 

Participants Regarding Transactions 

§ 1600.332 What requirements must I pass 

down to persons at lower tiers with whom 

I intend to do business? 

You, as a participant, must include a 

term or condition in lower-tier 

transactions that are covered 

transactions, requiring lower-tier 

participants to comply with subpart C of 

the OMB guidance in 2 CFR part 180, 

as supplemented by this subpart. 

Subpart D—Responsibilities of Federal 

Agency Officials Regarding 

Transactions 

§ 1600.437 What method do I use to 

communicate to a participant the 

requirements for participating in a covered 

transaction? 

To communicate to a participant the 

requirements described in 2 CFR 

180.435, you must include provisions in 

the contractual documentation of the 

transaction to ensure compliance with 

subpart C of 2 CFR part 180, as 

supplemented by subpart C of this part. 


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716 Federal Register / Vol. 89, No. 4 / Friday, January 5, 2024 / Proposed Rules 

The provisions must also require the 

participant to include similar terms or 

conditions of compliance in lower-tier 

covered transactions. 

Subparts E and F [Reserved] 

Subpart G—Suspension 

§ 1600.765 How may I request 

reconsideration of my DFC suspension? 

(a) If the DFC suspending official 

issues a decision under 2 CFR 180.755 

to continue your suspension after you 

present information in opposition to 

that suspension under 2 CFR 180.720, 

you can ask the suspending official to 

reconsider the decision for material 

errors of fact or law that you believe will 

change the outcome of the matter. 

(b) A request for review under this 

section must be in writing; state the 

specific findings you believe to be in 

error; and include the reasons or legal 

bases for your position. 

(c) The suspending official must 

notify you of their decisions under this 

section, in writing, using the notice 

procedures at 2 CFR 180.615 and 

180.975. 

Subpart H—Debarment 

§ 1600.890 How may I request 

reconsideration of my DFC debarment? 

(a) If the DFC debarring official issues 

a decision under 2 CFR 180.870 to debar 

you after you present information in 

opposition to a proposed debarment 

under 2 CFR 180.815, you can ask the 

debarring official to reconsider the 

decision for material errors of fact or 

law that you believe will change the 

outcome of the matter. 

(b) A request for review under this 

section must be in writing; state the 

specific findings you believe to be in 

error; and include the reasons or legal 

bases for your position. 

(d) The debarring official must notify 

you of their decisions under this 

section, in writing, using the notice 

procedures at 2 CFR 180.615 and 

180.975. 

Subpart I—Definitions 

§ 1600.930 Debarring official. 

The debarring official for DFC is the 

Vice President & Chief Administrative 

Officer, Office of Administration, or 

designee as delegated in Agency policy. 

§ 1600.1010 Suspending official. 

The suspending official for DFC is the 

Vice President & Chief Administrative 

Officer, Office of Administration, or 

designee as delegated in Agency policy. 

Subpart J [Reserved] 

Dated: December 14, 2023. 

Dev Jagadesan, 

Deputy General Counsel, Office of the General 

Counsel, U.S. International Development 

Finance Corporation. 

[FR Doc. 2023–28838 Filed 1–4–24; 8:45 am] 

BILLING CODE 3210–02–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2023–0011; Notice No. 

229] 

RIN 1513–AD04 

Proposed Establishment of the Tryon 

Foothills Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) proposes 

establishing the approximately 176- 

square mile ‘‘Tryon Foothills’’ 

viticultural area in Polk County, North 

Carolina. The proposed viticultural area 

is not within any other established 

viticultural area. TTB designates 

viticultural areas to allow vintners to 

better describe the origin of their wines 

and to allow consumers to better 

identify wines they may purchase. TTB 

invites comments on this proposed 

addition to its regulations. 

DATES: Comments must be received by 

March 5, 2024. 

ADDRESSES: You may electronically 

submit comments to TTB on this 

proposal using the comment form for 

this document posted within Docket No. 

TTB–2023–0011 on the Regulations.gov 

website at https://www.regulations.gov. 

At the same location, you also may view 

copies of this document, the related 

petition and selected supporting 

materials, and any comments TTB 

receives on this proposal. A direct link 

to that docket is available on the TTB 

website at https://www.ttb.gov/wine/ 

notices-of-proposed-rulemaking under 

Notice No. 229. Alternatively, you may 

submit comments via postal mail to the 

Director, Regulations and Ruling 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street NW, Box 

12, Washington, DC 20005. Please see 

the Public Participation section of this 

document for further information on the 

comments requested on this proposal 

and on the submission, confidentiality, 

and public disclosure of comments. 

FOR FURTHER INFORMATION CONTACT: 

Karen A. Thornton, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW, Box 12, Washington, DC 20005; 

phone 202–453–1039, ext. 175. 

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas 

TTB Authority 

Section 105(e) of the Federal Alcohol 

Administration Act (FAA Act), 27 

U.S.C. 205(e), authorizes the Secretary 

of the Treasury to prescribe regulations 

for the labeling of wine, distilled spirits, 

and malt beverages. The FAA Act 

provides that these regulations should, 

among other things, prohibit consumer 

deception and the use of misleading 

statements on labels and ensure that 

labels provide the consumer with 

adequate information as to the identity 

and quality of the product. The Alcohol 

and Tobacco Tax and Trade Bureau 

(TTB) administers the FAA Act 

pursuant to section 1111(d) of the 

Homeland Security Act of 2002, 

codified at 6 U.S.C. 531(d). In addition, 

the Secretary of the Treasury has 

delegated certain administrative and 

enforcement authorities to TTB through 

Treasury Order 120–01. 

Part 4 of the TTB regulations (27 CFR 

part 4) authorizes TTB to establish 

definitive viticultural areas and regulate 

the use of their names as appellations of 

origin on wine labels and in wine 

advertisements. Part 9 of the TTB 

regulations (27 CFR part 9) sets forth 

standards for the preparation and 

submission of petitions for the 

establishment or modification of 

American viticultural areas (AVAs) and 

lists the approved AVAs. 

Definition 

Section 4.25(e)(1)(i) of the TTB 

regulations (27 CFR 4.25(e)(1)(i)) defines 

a viticultural area for American wine as 

a delimited grape-growing region having 

distinguishing features as described in 

part 9 of the regulations and, once 

approved, a name and a delineated 

boundary codified in part 9 of the 

regulations. These designations allow 

vintners and consumers to attribute a 

given quality, reputation, or other 

characteristic of a wine made from 

grapes grown in an area to the wine’s 

geographic origin. The establishment of 

AVAs allows vintners to describe more 

accurately the origin of their wines to 

consumers and helps consumers to 

identify wines they may purchase. 

Establishment of an AVA is neither an 


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