Source: https://www.federalregister.gov/documents/2008/05/16/E8-11005/assistance-regulations
Timestamp: 2018-02-20 20:35:51
Document Index: 280736569

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A Proposed Rule by the Energy Department on 05/16/2008
Interested parties should submit written comments on or before July 15, 2008.
https://www.federalregister.gov/d/E8-11005 https://www.federalregister.gov/d/E8-11005
The Department of Energy (DOE) is proposing to amend its Assistance Regulations to make changes to streamline and simplify its procedures for soliciting, awarding, and administering its financial assistance agreements. These changes are being made to make technical corrections, to revise sections affected by the Energy Policy Act of 2005, and to further DOE's implementation of the Federal Financial Assistance Management Improvement Act of 1999. DOE is also proposing to remove Part 1024, Procedures for Financial Assistance Appeals, in its entirety.
This proposed rule is available and comments may be submitted online at http://www.regulations.gov. Comments may also be submitted electronically to Jacqueline.kniskern@hq.doe.gov. Comments may be mailed to: Jacqueline Kniskern, Procurement Policy Analyst; MA-61/Forrestal Building; U.S. Department of Energy; 1000 Independence Avenue, SW., Washington, DC 20585. Electronic submissions are encouraged to ensure timely receipt.
Ms. Jacqueline Kniskern, Office of Procurement and Assistance Policy, U.S. Department of Energy, at 202-287-1342 or Jacqueline.kniskern@hq.doe.gov.
DOE has been actively engaged in the government-wide effort to streamline and simplify the application, administrative and reporting procedures for Federal financial assistance programs pursuant to the Federal Financial Assistance Management Improvement Act of 1999, Public Law No. 106-107.
As part of this initiative, DOE has solicited comments and suggestions from the grant community and made Start Printed Page 28386changes to its assistance regulations. In particular, the DOE added to 10 CFR Part 600 Subpart D, Administrative Requirements for Grants and Cooperative Agreements with For-Profit Organizations, in a rule published in the Federal Register (68 FR 50645, August 21, 2003).
Today, DOE is proposing to update, streamline and simplify the general rules in Subpart A of its Financial Assistance Rules. DOE is proposing to eliminate sections that are duplicative of other sections that incorporated OMB Circulars and provide no additional guidance or information to applicants and recipients or require applicants to look at multiple sections for the same information. In addition, DOE is proposing to eliminate sections containing outdated requirements, which can be confusing to applicants and recipients.
Section 988 of the Energy Policy Act of 2005, Public Law No. 109-58, established Department-wide cost sharing requirements for most research, development, demonstration, and commercial application activities initiated after the date of enactment. The requirements of section 988 take the place of the numerous, current cost sharing requirements that have been contained in previous authorization and appropriations laws. This proposed rule will implement the requirements of section 988 replacing those promulgated after the Energy Policy Act of 1992, Public Law No. 102-486.
DOE is making technical corrections to provide consistency and clarity throughout the Financial Assistance Rules as put in practice and to provide references to sections in Subpart D that were not incorporated with that rule, 68 FR 50645 (August 21, 2003).
Lastly, the DOE Financial Assistance Appeals Board was abolished when DOE's Energy Board of Contract Appeals was merged into the Civilian Board of Contract Appeals as required by section 847 of the National Defense Authorization Act for Fiscal Year 2006, Public Law No. 109-163. While DOE has maintained appeal rights by providing for appeals to the DOE Senior Procurement Executive (SPE) (see section 29 of this notice for changes in 10 CFR 600.22), the regulatory procedures designed for the Financial Assistance Appeals Board are not necessary for those appeals. Internal agency procedures will be used instead.
DOE is proposing to amend 10 CFR Parts 600 and 1024 as follows.
1. Section 600.2 is amended by changing “solicitation” to “funding opportunity announcement” in paragraph (a) to be consistent with section 600.
2. Section 600.3 is amended by capitalizing “Contracting Officer” in the definition of “Amendment”; by adding definitions for “Cost sharing or matching” and “Total project cost” to facilitate changes made in section 600.30, “Cost Sharing.”
3. Section 600.4 is amended to add a reference to section 600.304 in paragraph (a) that was not incorporated at the time Subpart D was added to Part 600.
4. Section 600.6 is amended in paragraphs (b), (b)(1), and (c)(7) by changing “solicitation” to “funding opportunity announcement” to be consistent with section 600.8. Paragraphs (b) and (d) are amended to restate the concurrence and approval requirements in plain English. This revision is not intended to alter substantially the concurrence and approval requirements.
5. Section 600.8 has been renamed “Funding Opportunity Announcement” to more accurately reflect the coverage of this section. Paragraphs (a), (a)(1), and (a)(2) are amended by deleting “solicitation” and “program announcement” and replacing with “funding opportunity announcement” or its acronym “FOA.”
6. Section 600.10 is amended to add the requirement for all applicants to be registered in the Central Contractor Registration and to make changes related to the receipt of applications electronically.
7. Section 600.11 is deleted in its entirety as this information more accurately belongs in a funding opportunity announcement when applicable.
8. Section 600.12 is deleted in its entirety as the requirements of assurances and certifications have been incorporated Government-wide in the standard application forms maintained by Grants.gov.
9. Section 600.14 is marked as reserved for consistency and clarity with the rest of Part 600.
10. Section 600.15 is amended by changing “solicitation” to “funding opportunity announcement” in paragraph (b)(2) for clarity and consistency with the rest of Part 600.
11. Section 600.16 is amended by inserting a new paragraph (b) that describes a recipient's acceptance of an award and redesignating the old paragraph (b) as paragraph (c).
12. Section 600.17 is amended to facilitate changes to administration requirements.
13. Section 600.18 is deleted in its entirety. The recipient's responsibility for acceptance of an award has been moved to section 600.16.
14. Section 600.19 is amended by deleting, in the second sentence, the word “briefly” and the phrase “and, if for grounds other than unavailability of funds, shall offer the unsuccessful applicant the opportunity for a more detailed explanation upon request” as the applicant may always request additional information no matter the reason for the unsuccessful application.
15. Section 600.21 is amended by adding a cross reference to the applicable section of Subpart D in paragraph (a) that was not incorporated at the time Subpart D was added to Part 600.
16. Section 600.22 is amended to update the section for changes to the Financial Assistance Appeals Board. The Financial Assistance Appeals Board was staffed by the Energy Board of Contract Appeals which was abolished by Section 847 of the National Defense Authorization Act for Fiscal Year 2006, Public Law No. 109-163. The Department is maintaining the right of recipients to appeal certain Contracting Officer's determinations by providing for appeals to the DOE or National Nuclear Security Administration (NNSA) Senior Procurement Executive (SPE) in place of the now defunct appeals board. Specifically, the reference to 10 CFR 1024 in paragraph (a) is deleted as this Part is being removed by this proposed rulemaking; paragraph (d) is updated with the correct contact information for the two SPEs; paragraphs (e) and (f) are updated by changing the reference to the Board Start Printed Page 28387to SPEs. Paragraph (f) is also updated to include references to the applicable sections of Subpart D of this part that were not added at the time Subpart D was implemented.
17. Section 600.23 is deleted in its entirety as this information has recently been moved to Title 2 of the CFR as part of the implementation of the OMB guidance provided at 2 CFR Part 180 and as part of OMB's initiative to streamline and consolidate all federal regulations on nonprocurement debarment and suspension.
18. Section 600.24 is amended by adding references to Subpart D of 10 CFR part 600 in addition to Subparts B and C that were not updated as part of the rulemaking that added Subpart D in 2003.
19. Section 600.25 is amended by adding references to Subpart D of 10 CFR Part 600 in addition to Subparts B and C that were not updated as part of the rulemaking that added Subpart D in 2003 and to delete certain references to Subparts B, C and D that do not require written notification as previously indicated in Section 600.25.
20. Section 600.26 is deleted in its entirety as it is duplicative of sections in other areas of Part 600.
21. Section 600.28 is deleted in its entirety as it is duplicative of sections in other areas of Part 600 and 10 CFR Part 601.
22. Section 600.29 is amended to raise the dollar threshold to provide greater flexibility to Contracting Officers and recipients in award and administration of financial assistance agreements.
23. Section 600.30 is amended to incorporate the requirements of section 988 of the Energy Policy Act of 2005, Public Law No. 109-58, which standardized cost sharing requirements for research and development activities.
24. Section 600.31 is amended by capitalizing all references to Contracting Officer for consistency purposes.
25. Section 600.112 is amended by changing “solicitation” to “funding opportunity announcement” to be consistent with 600.8; deleting paragraphs (a)(1), (a)(2) and (b)(1) in order to delete requirements to use specific DOE forms as DOE is using the forms maintained by Grants.gov for applying for financial assistance as part of an overall government-wide policy; and renumbering paragraphs (b)(2) and (c) as paragraphs (c) and (d).
26. Section 600.113 is amended to correct the citation for “Debarment and Suspension” to 2 CFR Parts 180 and 901.
27. Section 600.117 is deleted in its entirety as representations, certifications and assurances are now received through the submission of standard application forms with government-wide changes due to the implementation of Grants.gov.
28. Section 600.305 is amended to correct the citation for Debarment and Suspension to 2 CFR Parts 180 and 901.
29. DOE is proposing to remove Part 1024 in its entirety as the Financial Assistance Appeals Board, staffed by the Energy Board of Contract Appeals, was abolished by the Department to comply with section 847 of the National Defense Authorization Act for Fiscal Year 2006, Public Law No. 109-163. The Department is maintaining the right of recipients to appeal Contracting Officer's determinations by providing for appeals to the DOE or NNSA Senior Procurement Executive (SPE) in place of the now defunct appeals board. See 10 CFR Part 600.22 as amended by this proposed rulemaking.
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 is not subject to review under that Executive Order by the Office of Information and Regulatory Affairs (OIRA) of OMB.
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires preparation of an initial regulatory flexibility analysis for any rule that by law must be proposed for public comment, unless the agency certifies that the rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. As required by Executive Order 13272, Proper Consideration of Small Entities in Agency Rulemaking, 67 FR 53461 (August 16, 2002), DOE published procedures and policies to ensure that the potential impacts of its draft rules on small entities are properly considered during the rulemaking process, 68 FR 7990 (February 19, 2003), and has made them available on the Office of General Counsel's Web site: http://www.gc.doe.gov. DOE has reviewed today's rule under the provisions of the Regulatory Flexibility Act and the procedures and policies published on February 19, 2003. Today's proposed rule would subject small entities either to requirements that parallel government-wide requirements that OMB Circular A-110 establishes for other assistance awards, or to less burdensome requirements that enable firms from the commercial marketplace to participate in DOE research, development, and demonstration projects. Today's proposed amendments would not alter the substance of the OMB requirements or impose significant additional burdens. On the basis of the foregoing, DOE certifies that the rule does not have a significant economic impact on a substantial number of small entities. DOE did not prepare a regulatory flexibility analysis for this rulemaking.
Executive Order 13132, 64 FR 43255 (August 4, 1999), imposes certain requirements on agencies formulating and implementing policies or regulations that preempt state law or that have federalism implications. Agencies are required to examine the constitutional and statutory authority supporting any action that would limit the policymaking discretion of the states and carefully assess the necessity for such actions. DOE has examined today's proposed rule and has determined that it does not preempt state law and does not have a substantial direct effect on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. No further action is required by Executive Order 13132. Start Printed Page 28388
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; (3) provide a clear legal standard for affected conduct rather than a general standard; and (4) promote simplification and burden reduction. 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) 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 United States Attorney General. Section 3(c) of Executive Order 12988 requires executive agencies to review regulations in light of applicable standards in sections 3(a) and 3(b) to determine whether they are met or if 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, this rule meets the relevant standards of Executive Order 12988.
The Unfunded Mandates Reform Act of 1995, Public Law No. 104-4, generally requires federal agencies to examine closely the impacts of regulatory actions on state, local, or tribal governments. Subsection 101(5) of Title I of that law defines a federal intergovernmental mandate to include a regulation that would impose upon state, local, or tribal governments an enforceable duty, except a condition of federal assistance or a duty arising from participating in a voluntary federal program. Title II of that law requires each Federal agency to assess the effects of Federal regulatory actions on state, local, and tribal governments, in the aggregate, or the private sector, other than to the extent such actions merely incorporate requirements specifically set forth in a statute. Section 202 of the title requires a federal agency to perform a detailed assessment of the anticipated costs and benefits of any rule that includes a Federal mandate which may result in costs to state, local, or tribal governments, or the private sector, of $100 million or more in any one year (adjusted annually for inflation). 2 U.S.C. 1532(a) and (b). Section 204 of that title requires each agency that proposed a rule containing a significant federal intergovernmental mandate to develop an effective process for obtaining meaningful and timely input from elected officers of state, local, and tribal governments. 2 U.S.C. 1534.
This proposed rule would amend the assistance regulations with changes that streamline and simplify procedures for soliciting, awarding, and administering financial assistance agreements. The proposed rule would not 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. Accordingly, no assessment or analysis is required under the Unfunded Mandates Reform Act of 1995.
Section 654 of the Treasury and General Government Appropriations Act, 1999, Public Law No. 105-277, requires federal agencies to issue a Family Policymaking Assessment for any proposed rule or policy that may affect family well-being. This rule will not have any impact on the autonomy or integrity of the family as an institution. Accordingly, DOE has concluded that it is not necessary to prepare a Family Policymaking Assessment.
Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use, 66 FR 28355 (May 22, 2001), requires federal agencies to prepare and submit to the OMB a Statement of Energy Effects for any proposed significant energy action. A “significant energy action” is defined as any action by an agency that promulgated or is expected to lead to promulgation of a final rule, and that: (1) Is a significant regulatory action under Executive Order 12866, or any successor order; and (2) is likely to have a significant adverse effect on the supply, distribution, or use of energy; or (3) is designated by the Administrator of OIRA as a significant energy action. For any proposed significant energy action, the agency must give a detailed statement of any adverse effects on energy supply, distribution, or use should the proposal be implemented, and of reasonable alternatives to the action and their expected benefits on energy supply, distribution, and use.
The Office of the Secretary has approved the issuance of this proposed rule.
Director, Office of Procurement and Assistance Management, Office of Management, Department of Energy
For the reasons set out in the preamble, Part 600 of Chapter II, and Part 1024 of Chapter X, Title 10 of the Code of Federal Regulations are proposed to be amended as follows:
2. Section 600.2 is amended in paragraph (a) by removing “solicitations” and adding “funding Start Printed Page 28389opportunity announcements” in its place.
5. Section 600.6 is revised to read as follows:
(1) If the aggregate amount of DOE funds available for award under a funding opportunity announcement or published notice is $1 million or more, unless authorized by statute or program rule, such restriction of eligibility shall be:
(2) Where the amount of DOE funds is less than $1 million, the cognizant Head of Contracting Activity (HCA) and the Contracting Officer may approve the determination.
(3) The applicant is a unit of government and the activity to be supported is related to the performance of a governmental function within the subject jurisdiction, thereby precluding DOE provision of support to another entity.
(7) The proposed project was submitted as an unsolicited proposal and represents a unique or innovative idea, method, or approach which would not be eligible for financial assistance under a recent, current, or planned funding opportunity announcement, and if, as determined by DOE, a competitive funding opportunity announcement would not be appropriate.
6. Section 600.8 is amended as follows:
a. The section heading is revised as set forth above.
7. Section 600.10 is amended as follows:
a. In paragraph (b), the first sentence is amended by removing “and in the number of copies”
b. In paragraph (c)(1), the second sentence is amended by removing “or other approved DOE application form”
8. Sections 600.11 and 600.12 are removed and reserved.
9. Section 600.14 is added and reserved.
10. Section 600.15, paragraph (b)(2) is amended by removing “solicitation” and adding “funding opportunity announcement” in its place.
11. Section 600.16, is amended by redesignating paragraph (b) as paragraph (c), and by adding a new paragraph (b) to read as follows:
(b) Recipients are free to accept or reject the award. A request to drawdown DOE funds constitutes acceptance; however DOE may require formal acceptance of an award.
12. Section 600.17 is revised to read as follows:
Each financial assistance award shall be made on a cover agreement page, which contains basic identifying and funding information. The award will identify special terms and conditions, program regulations, the National Policy Assurances, and any other provisions necessary to establish the respective right, duties, obligations, and responsibilities of DOE and the recipient, consistent with the requirements of this part.
13. Section 600.18 is removed and reserved.
14. Section 600.19 is amended by removing, in the second sentence, “briefly” and “and, if for grounds other than unavailability of funds, shall offer the unsuccessful applicant the opportunity for a more detailed explanation upon request”.
15. Section 600.21, paragraph (a) is amended by removing “§§ 600.153 and 600.242” and adding “§§ 600.153, 600.242 and 600.342” in its place.
16. Section 600.22 is amended as follows:
a. In the last sentence of paragraph (a), the words “available in 10 CFR Part 1024” are removed.
c. Paragraphs (e), (f)(2), (f)(3) and (f)(4) are amended by removing “Board” and adding “ SPE” in its place, for every occurrence.
(d) Right of appeal. Except as provided in paragraph (f)(1) of this section, the final determination under paragraph (c) of this section may be appealed to the cognizant SPE for either DOE or the National Nuclear Security Administration (NNSA). The mailing address for the DOE SPE is Office of Procurement and Assistance Management, 1000 Independence Ave., SW., Washington, DC 20585. The mailing address for the NNSA SPE is Office of Acquisition and Supply Management, 1000 Independence Ave., SW., Washington, DC 20585.
(i) Any preaward dispute (except as provided in paragraph (f)(2)(ii) of this section), including use of any special restrictive condition pursuant to §§ 600.114, 600.212, or 600.304;
(iv) Any DOE action authorized under §§ 600.162(a)(1), (2), (3) or (5); 600.243(a)(1), (a)(3), or §§ 600.352(a)(1), (2), (3) or (5) for suspensions only; or §§ 600.162(a)(4), 600.243(a)(4) or 600.352(a)(4) for actions disapproving renewal applications or other requests for extension of time or additional funding for the same project when related to recipient noncompliance, or such actions authorized by program rule;
(v) Any DOE decision about an action requiring prior DOE approval under §§ 600.144, 600.236, or 600.331 of this part or under another term or condition of the award; * * *
17. Section 600.23 is removed and reserved.
18. Section 600.24 is amended in paragraphs (a)(3) and (b) introductory text by removing “or § 600.243(a)” and adding “§§ 600.243(a), 600.312(g) or 600.352(a)” in its place.
19. Section 600.25 is amended in:
a. Paragraph (a)(1) by removing “or § 600.243(a)” and adding “§ 600.243(a) or 600.352(a)” in its place.
b. Paragraph (a)(2) by removing “§ 600.23” and adding “2 CFR Part 180 and 901” in its place.
d. Paragraph (d) by removing “or §§ 600.243 through 600.244” and adding “§§ 600.243 through 600.244 or §§ 600.350 through 600.353” in its place.
e. Paragraph (f) by removing “or §§ 600.243 through 600.244” and adding “§§ 600.243 through 600.244 or §§ 600.350 through 600.353” in its place.
(b) Notification requirements. Except as provided in §§ 600.24, 600.162(a) , 600.243(a) or 600.352(a) before suspending or terminating an award for cause, DOE shall mail to the awardee (by certified mail, return receipt requested) a separate written notice in addition to that required by § 600.24(a) at least ten days prior to the effective date of the suspension or termination. Such notice shall include, as appropriate:
(1) The factual and legal basis for the suspension or termination;
(5) Instructions concerning required final reports and other closeout actions for terminated awards (see §§ 600.170 through 600.173, §§ 600.250 through 600.252 and §§ 600.350 through 600.353);
(6) A statement of the awardees' right to appeal a termination for cause pursuant to section 600.22; and
20. Section 600.26 is removed and reserved.
21. Section 600.28 is removed and reserved.
22. Section 600.29 is amended as follows:
a. Paragraph (b)(1), “$100,000” is removed and “$250,000” is added in its place.
b. In paragraphs (b)(5) and (b)(6) “Contracting Officer” is capitalized. Start Printed Page 28391
23. Section 600.30 is revised to read as follows:
(2) The Secretary or delegatee has determined it is necessary and appropriate to reduce or eliminate the cost sharing requirement for a research and development activity of an applied nature.
(c) A cost share of at least 50 percent of the cost of a demonstration or commercial application program or activity is required unless the Secretary or delegatee has determined that it is necessary and appropriate to reduce the cost sharing requirements, taking into consideration any technological risk relating to the activity.
24. Section 600.31 is amended as follows:
a. In paragraph (c), Contracting Officer is capitalized in all occurrences.
b. In paragraph (d) introductory text, Contracting Officer is capitalized.
c. In paragraph (f)(5), Contracting Officer is capitalized.
25. Section 600.112 is revised to read as follows:
(a) An application for an award shall be on the form or in the format specified in a program rule or in the funding opportunity announcement. When a version of the Standard Form 424 is not used, DOE shall indicate whether the application is subject to review by the State under Executive Order 12372.
(b) DOE may request and the applicant shall submit the minimum budgetary information necessary to evaluate the costs of the proposed project.
(d) DOE may require that an application for a continuation or renewal award be made in the format or on the forms authorized by paragraphs (a) and (b) of this section.
26. Section 600.113 is amended by removing “10 CFR 1036” and adding “2 CFR 180 and 901” in its place.
27. Section 600.117 is removed and reserved.
28. Section 600.305 is amended by removing “10 CFR 1036” and adding “2 CFR 180 and 901” in its place.
29. Under the authority of the Department of Energy Organization Act, Public Law 95-91, 91 Stat. 577 (42 U.S.C. 7101, et seq.); E.O. 10789; Public Law 95-224, 92 Stat. 3 (41 U.S.C. 501-509), part 1024 is removed.
[FR Doc. E8-11005 Filed 5-15-08; 8:45 am]