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[Federal Register Volume 63, Number 105 (Tuesday, June 2, 1998)]
[Rules and Regulations]
[Pages 29941-29942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14530]

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DEPARTMENT OF ENERGY

10 CFR Part 600

RIN 1991-AB4I

Assistance Regulations: Technical Amendment

AGENCY: Department of Energy (DOE).

ACTION: Final rule; Technical amendment.

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SUMMARY: The Department of Energy is amending the Department of Energy 
Assistance Regulations, 10 CFR Part 600, to remove provisions dealing 
with the audit of State and local government recipients of financial 
assistance that were rendered obsolete by a common rule published on 
August 29, 1997 (62 FR 45937). The common rule, which DOE incorporated 
through an amendment to Part 600, implements the Single Audit Act 
Amendments of 1996 and subsequent revisions to the Office of Management 
and Budget (OMB) Circular A-133, ``Audits of States, Local Governments, 
and Non-Profit Organizations.''

EFFECTIVE DATE: This final rule will be effective June 2, 1998.

FOR FURTHER INFORMATION CONTACT: Richard Langston, Department of 
Energy, Office of Procurement and Assistance Policy, HR-51, 1000 
Independence Ave. SW., Washington, D.C. 20585-0705, (202) 586-8247.

SUPPLEMENTARY INFORMATION:
I. Explanation of Revisions.
II. Procedural Requirements.
    A. Review Under Executive Order 12612.
    B. Review Under Executive Order 12866.
    C. Review Under Executive Order 12988.
    D. Review Under the National Environmental Policy Act.
    E. Review Under the Paperwork Reduction Act.
    F. Review Under the Regulatory Flexibility Act.
    G. Review Under the Small Business Regulatory Enforcement 
Fairness Act.
    H. Review Under the Unfunded Mandates Act.

I. Explanation of Revisions

    The Department of Energy Assistance Regulations, 10 CFR part 600, 
Subpart E--Audits of State and Local Governments, implemented the 
Single Audit Act of 1984 and OMB Circular A-128, Single Audits of State 
and Local Governments. The Single Audit Act Amendments of 1996 (Pub. L. 
104-156, 110 Stat. 1396) and the June 24, 1997, revision of OMB 
Circular A-133, ``Audits of States, Local Governments, and Non-Profit 
Organizations,'' (62 FR 35278), required agencies to adopt the 
standards in revised Circular A-133 by August 29, 1997, so that they 
would apply to audits of fiscal years beginning after June 30, 1996. 
Agencies, including DOE, promulgated a common rule on August 29, 1997 
(62 FR 45937) to codify the new requirements. DOE accomplished this, 
for state and local governments, by amending 10 CFR 600.226 (Subpart 
C--Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments). As a consequence of these 
changes, existing Subpart E was rendered obsolete. This final rule 
removes 10 CFR part 600, Subpart E, from the Code of Federal 
Regulations.

II. Procedural Requirements

A. Review Under Executive Order 12612

    Executive Order 12612, entitled ``Federalism,'' 52 FR 41685 
(October 30,1987), requires that regulations, rules, legislation, and 
any other policy actions be reviewed for any substantial direct effects 
on States, on the relationship between the Federal Government and the 
States, or in the distribution of power and responsibilities among 
various levels of government. If there are sufficient substantial 
direct effects, then the Executive Order requires preparation of a 
federalism assessment to be used in all decisions involved in 
promulgating and implementing a policy action. DOE has determined that 
this rule will not have a substantial direct effect on the 
institutional interests or traditional functions of States.

B. Review Under Executive Order 12866

    This regulatory action has been determined not to be a 
``significant regulatory action'' under Executive Order 12866, 
``Regulatory Planning and Review,'' 58 FR 51735 (October 4,1993). 
Accordingly, this action was not subject to review, under that 
Executive Order, by the Office of Information and Regulatory Affairs of 
OMB.

C. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7,1996), imposes on 
Executive agencies the general duty to adhere to the following 
requirements: (1) eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. With regard to the review 
required by section 3(a), section 3(b) of Executive Order 12988 
specifically requires that Executive agencies make every reasonable 
effort to ensure that the regulation: (1) clearly specifies the 
preemptive effect, if any; (2) clearly specifies any effect on existing 
Federal law or regulation; (3) provides a clear legal standard for 
affected conduct while promoting simplification and burden reduction; 
(4)

[[Page 29942]]

specifies the retroactive effect, if any; (5) adequately defines key 
terms; and (6) addresses other important issues affecting clarity and 
general draftsmanship under any guidelines issued by the Attorney 
General. Section 3(c) of Executive Order 12988 requires Executive 
agencies to review regulations in right of applicable standards in 
section 3(a) and section 3(b) to determine whether they are met or it 
is unreasonable to meet one or more of them. DOE has completed the 
required review and determined that, to the extent permitted by law, 
the regulations meet the relevant standards of Executive Order 12988.

D. Review Under the National Environmental Policy Act

    Pursuant to the Council on Environmental Quality Regulations (40 
CFR 1500-1508), the Department has established guidelines for its 
compliance with the provisions of the National Environmental Policy Act 
(NEPA) of 1969 (42 U.S.C. 4321, et seq.). Pursuant to Appendix A of 
Subpart D of 10 CFR 1021, National Environmental Policy Act 
Implementing Procedures (Categorical Exclusion A6), DOE has determined 
that this rule is categorically excluded from the need to prepare an 
environmental impact statement or environmental assessment because it 
is strictly procedural.

E. Review Under the Paperwork Reduction Act

    No new information collection or record keeping requirements are 
imposed by this rule. Accordingly, no OMB clearance is required under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.).

F. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., directs 
agencies to prepare a regulatory flexibility analysis whenever an 
agency is required to publish a general notice of proposed rulemaking 
for a rule. The Department is not required to publish a general notice 
of proposed rulemaking for this technical amendment of 10 CFR Part 600, 
which is a matter relating to financial assistance or grants, 5 U.S.C. 
553(a)(2). Therefore, DOE has not prepared a regulatory flexibility 
analysis for this final rule.

G. Review Under Small Business Regulatory Enforcement Fairness Act of 
1996

    As required by 5 U.S.C. 801, DOE will report to Congress 
promulgation of the rule prior to its effective date. The report will 
state that it has been determined that the rule is not a ``major rule'' 
as defined by 5 U.S.C. 804(3).

H. Review Under the Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally 
requires a Federal agency to perform a detailed assessment of costs and 
benefits of any rule imposing a Federal mandate with costs to State, 
local or tribal governments, or to the private sector, of $100 million 
or more. The Department has determined that this rulemaking does not 
impose a Federal mandate on State, local, or tribal governments or on 
the private sector.

List of Subjects in 10 CFR Part 600

    Accounting, Administrative practice and procedure, Grant programs, 
Loan programs, Penalties, Reporting and recordkeeping requirements.

    Issued in Washington, D.C. on May 27, 1998.
Richard H. Hopf,
Deputy Assistant Secretary for Procurement and Assistance Management.
    For the reasons set forth in the preamble, Part 600 of Title 10 of 
the Code of Federal Regulations, is amended as set forth below.

PART 600--[AMENDED]

    1. The authority citation for part 600 continues to read as 
follows:

    Authority: 42 U.S.C. 7254, 7256, 13525; 31 U.S.C. 6301-6308, 
unless otherwise noted.

Subpart E--Audits of State and Local Governments

Subpart E--[Removed and Reserved]

    2. Subpart E, consisting of Sections 600.400 through 600.417, is 
removed and reserved.

[FR Doc. 98-14530 Filed 6-1-98; 8:45 am]
BILLING CODE 6450-01-P
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