Rule2021-22632
Financial Assistance Interior Regulation
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 18, 2021
Effective
October 18, 2021
Issuing agencies
Interior Department
Abstract
The Department of the Interior (DOI) is publishing this final rule to align its regulations with new regulatory citations and requirements adopted by the Office of Management and Budget (OMB). On August 13, 2020, the OMB published a revision to their regulations regarding Guidance for Grants and Agreements. The revision was an administrative simplification and did not make any substantive changes to their regulations regarding policies and procedures. DOI now codifies these changes in its financial assistance regulations.
Full Text
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<title>Federal Register, Volume 86 Issue 198 (Monday, October 18, 2021)</title>
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[Federal Register Volume 86, Number 198 (Monday, October 18, 2021)]
[Rules and Regulations]
[Pages 57529-57532]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-22632]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 86, No. 198 / Monday, October 18, 2021 /
Rules and Regulations
[[Page 57529]]
DEPARTMENT OF THE INTERIOR
Office of the Secretary
2 CFR Part 1402
[DOI-2020-0020; 201D0102DM, DS62600000, DLSN 00000.000000, DX62601]
RIN 1090-AB23
Financial Assistance Interior Regulation
AGENCY: Office of the Secretary, Interior.
ACTION: Final rule; technical amendments.
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SUMMARY: The Department of the Interior (DOI) is publishing this final
rule to align its regulations with new regulatory citations and
requirements adopted by the Office of Management and Budget (OMB). On
August 13, 2020, the OMB published a revision to their regulations
regarding Guidance for Grants and Agreements. The revision was an
administrative simplification and did not make any substantive changes
to their regulations regarding policies and procedures. DOI now
codifies these changes in its financial assistance regulations.
DATES: This final rule is effective on October 18, 2021.
FOR FURTHER INFORMATION CONTACT: Cara Whitehead, Director, Office of
Grants Management, Department of the Interior, 1849 C Street NW, Mail
Stop 3023 MIB, Washington, DC 20240; email <a href="/cdn-cgi/l/email-protection#96d5f7e4f7c9c1feffe2f3fef3f7f2d6fff9e5b8f2f9ffb8f1f9e0"><span class="__cf_email__" data-cfemail="6b280a190a343c03021f0e030e0a0f2b020418450f0402450c041d">[email protected]</span></a>;
telephone 202-208-3100.
SUPPLEMENTARY INFORMATION:
I. Background
On December 26, 2013, OMB published its Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal
Awards (referred to as the ``Uniform Guidance,'' 78 FR 78590). The OMB
Uniform Guidance, 2 CFR part 200, provided a government-wide framework
for Federal awards management and streamlined administrative
requirements, cost principles, and audit requirements for Federal
awards, including grants and cooperative agreements. Implementation of
the Uniform Guidance became effective on December 26, 2014 (79 FR
75867, December 19, 2014) and must be reviewed every five years in
accordance with 2 CFR 200.109. On August 13, 2020 (85 FR 49506 as
amended on February 22, 2021, in 86 FR 10439), the Office of Management
and Budget (OMB) published a revision to sections of title 2 of the
Code of Federal Regulations, Guidance for Grants and Agreements. The
rule was an administrative simplification and did not make any
substantive changes to 2 CFR part 200 policies and procedures. DOI now
codifies these changes in its financial assistance regulations located
in 2 CFR part 1402. This rule helps ensure that financial assistance
provided by the DOI is administered in full compliance with applicable
laws, regulations, policies and best practices to ensure the American
people get the most value from the money the DOI spends on financial
assistance.
The Administrative Procedure Act (APA) specifically provides
exceptions to its notice and comment rulemaking procedures when an
agency finds there is good cause to dispense with them, and
incorporates the finding, and a brief statement of reasons therefore,
in the rules issued (5 U.S.C. 553(b)(3)(B)). Good cause exists when an
agency determines that notice and public comment procedures are
impractical, unnecessary, or contrary to the public interest. The
amendments made in this final rule align DOI regulations with OMB's
regulations. OMB's rule had a 60-day comment period and was determined
to be not significant under Executive Order 12866. This final rule will
be effective upon publication because it is unnecessary to further
delay conforming DOI's regulations to OMB's regulations.
II. Section-by-Section Analysis
DOI is revising its Financial Assistance Interior Regulation at 2
CFR part 1402 for conformity with OMB's recent revisions to title 2.
Specifically, DOI is correcting 2 CFR part 1402 to align with the OMB
updates to the regulatory citations in the Uniform Guidance and new
regulatory requirements. This section-by-section analysis describes the
changes to the regulatory text in numerical order.
A. Section 4 Uniform Guidance Definition Citation for Foreign Entity
In Sec. 1402.4, DOI removes ``2 CFR 200.46 and 200.47'' and adds
in its place ``2 CFR 200.1''.
B. Section 6 Uniform Guidance Definition Citation for Real Property
In Sec. 1402.6, DOI removes ``2 CFR 200.85'' and adds in its place
``2 CFR 200.1''.
C. Section 112(e) Uniform Guidance Citation for Remedies for
Noncompliance
In Sec. 1402.112(e), DOI removes ``2 CFR 200.338'' and adds in its
place ``2 CFR 200.339''.
D. Section 206(b) Uniform Guidance Citation for Information Contained
in a Federal Award
In Sec. 1402.206(b), DOI removes ``2 CFR 200.210'' and adds in its
place ``2 CFR 200.211''.
E. Section 207 Uniform Guidance New Requirement for Never Contract With
the Enemy
In Sec. 1402.207, DOI adds the new requirement for Never Contract
with the Enemy. This revision reflects OMB's changes made to 2 CFR part
200 on August 13, 2020. The Office of Management and Budget (OMB) added
2 CFR part 183, which contains a new requirement to Never Contract with
the Enemy, which applies only to grants and cooperative agreements that
exceed $50,000 and are performed outside the United States. In
addition, this includes U.S. territories, to a person or entity that is
actively opposing the United States or coalition forces involved in a
contingency operation in which members of the Armed Forces are actively
engaged in hostilities.
F. Sections 207 Uniform Guidance New Requirement for Prohibition on
Certain Telecommunications and Video Surveillance Services or Equipment
In Sec. 1402.207, DOI adds the new requirement for Prohibition on
Certain Telecommunications and Video Surveillance Services or
Equipment. This revision reflects amendments made to 2 CFR 200 that
became effective on August 13, 2020. In addition, OMB added a new
section, 2 CFR 200.216,
[[Page 57530]]
Prohibition on certain telecommunication and video surveillance
services or equipment, which prohibits Federal award recipients from
using loan or grant funds to enter into contracts with entities that
use covered telecommunications equipment or services.
G. Section 207(a) Standard Award Terms and Conditions That Always Apply
to For-Profit Entities
In Sec. 1402.207(a)(12), DOI adds ``all applicable Executive
orders,'' which applies to all current directives that may impact for-
profit entities as well as any future directives. This amendment aligns
DOI's regulations with OMB's regulatory guidance in 2 CFR part 200 to
support domestic preferences encouraging Federal award recipients, to
the extent permitted by law, to maximize the use of goods, products,
and materials produced in the United States when procuring goods and
services under Federal awards. OMB's guidance included domestic policy
directives as expressed in Executive Order 13788 of April 18, 2017 (Buy
American and Hire American) and Executive Order 13858 of January 21,
2019 (Executive Order on Strengthening Buy American Preferences for
Infrastructure Projects), which superseded Executive Order 14005
(Ensuring the Future Is Made in all of America by all of America's
Workers). This revision in DOI's regulations will reflect the current
OMB guidance and also apply to any future directives issued.
H. Section 300 Uniform Guidance New Requirement for Never Contract With
the Enemy
In Sec. 1402.300, DOI adds the new requirement for Never Contract
with the Enemy. This revision reflects OMB's changes made to 2 CFR part
200 on August 13, 2020. The Office of Management and Budget (OMB) added
2 CFR part 183, which contains a new requirement to Never Contract with
the Enemy, which applies only to grants and cooperative agreements that
exceed $50,000 and are performed outside the United States. In
addition, this includes U.S. territories, to a person or entity that is
actively opposing the United States or coalition forces involved in a
contingency operation in which members of the Armed Forces are actively
engaged in hostilities.
I. Section 300 Uniform Guidance New Requirement for Prohibition on
Certain Telecommunications and Video Surveillance Services or Equipment
In Sec. 1402.300, DOI adds the new requirement for Prohibition on
Certain Telecommunications and Video Surveillance Services or
Equipment. This revision reflects amendments made to 2 CFR part 200
that became effective on August 13, 2020. In addition, OMB added a new
section, 2 CFR 200.216, Prohibition on certain telecommunication and
video surveillance services or equipment, which prohibits Federal award
recipients from using loan or grant funds to enter into contracts with
entities that use covered telecommunications equipment or services.
J. Section 300(e) Award Requirements for Foreign Entities
In Sec. 1402.300(e)(6), DOI removes ``Public Law 113-235 (128
Stat. 2391, Dec. 16, 2014)'' and adds ``48 CFR 3.909-2(a).'' This
revision changes the citation from the Public Law to the CFR now that
this law has been codified in the CFR.
III. Required Determinations
A. Regulatory Planning and Review (Executive Orders 12866 and 13563)
Executive Order (E.O.) 12866 provides that the OMB's Office of
Information and Regulatory Affairs will review all significant rules.
The Office of Information and Regulatory Affairs has determined that
this rule is not significant. DOI is publishing this final rule to
align its regulations with new regulatory citations and requirements
adopted by OMB.
Executive Order 13563 reaffirms the principles of E.O. 12866,
calling for improvements in the nation's regulatory system to promote
predictability, to reduce uncertainty, and to use the best, most
innovative, and least burdensome tools for achieving regulatory
objectives. E.O. 13563 directs agencies to consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public, where these approaches are relevant, feasible,
and consistent with regulatory objectives.
E.O. 13563 emphasizes further that regulations must be based on the
best available science and that the rulemaking process must allow for
public participation and an open exchange of ideas. We have developed
this final rule in a manner consistent with these requirements.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612) applies to
rules that are subject to notice and comment under section 553(b) of
the APA. The rule will not have a significant economic effect on a
substantial number of small entities. The Department of the Interior
generally does not award grants to small businesses. The vast majority
of Interior grants are awarded to States, local governments, and not-
for-profit organizations.
C. Small Business Regulatory Enforcement Fairness Act
This final rule is not a major rule under the Small Business
Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)). This rule:
(a) Does not have an annual effect on the economy of $100 million
or more.
(b) Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions.
(c) Does not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises.
This rule establishes regulations for DOI financial assistance.
These changes wouldn't cause a significant impact. It will not affect
business relationships, employment, investment, productivity,
innovations, or the ability of U.S.-based enterprises to compete
internationally.
D. Unfunded Mandates Reform Act
This final rule does not impose an unfunded mandate on State,
local, or Tribal governments or the private sector of more than $100
million per year. The final rule does not have a significant or unique
effect on State, local, or Tribal governments or the private sector. A
statement containing the information required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not required.
E. Takings (E.O. 12630)
Under the criteria in section 2 of E.O. 12630, this rule does not
have significant takings implications. It does not impose any
obligations on the public that would result in a taking. A takings
implication assessment is not required.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of E.O. 13132, this rule does not
have sufficient federalism implications to warrant the preparation of a
federalism summary impact statement. This is because it would not
substantially and directly
[[Page 57531]]
affect the relationship between the Federal and state governments.
Accordingly, a federalism summary impact statement is not required.
G. Civil Justice Reform (E.O. 12988)
This rule complies with the requirements of E.O. 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a) of this E.O. requiring that
all regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(b) Meets the criteria of section 3(b)(2) of this E.O. requiring
that all regulations be written in clear language and contain clear
legal standards.
H. Consultation With Indian Tribes (E.O. 13175)
The Department of the Interior strives to strengthen its
government-to-government relationship with Indian tribes by committing
to consultation and recognition of their right to self-governance and
tribal sovereignty. This rule does not have tribal implications
warranting the application of E.O. 13175. It does not have substantial
direct effects on one or more Indian tribes, on the relationship
between the Federal Government and Indian tribes, or the distribution
of power and responsibilities between the Federal Government and Indian
tribes.
I. Paperwork Reduction Act, 44 U.S.C. 3501, et seq.
This final rule calls for no new collection of information under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).
J. National Environmental Policy Act
This final rule would not constitute a major Federal action
significantly affecting the quality of the human environment. A
detailed statement under the National Environmental Policy Act of 1969
(NEPA) is not required. Pursuant to Department Manual 516 DM 2.3A(2),
section 1.10 of 516 DM 2, Appendix 1 excludes from documentation in an
environmental assessment or impact statement ``policies, directives,
regulations and guidelines of an administrative, financial, legal,
technical or procedural nature; or the environmental effects of which
are too broad, speculative or conjectural to lend themselves to
meaningful analysis and will be subject to the NEPA process, either
collectively or case-by-case.''
K. Effects on the Energy Supply (E.O. 13211)
This rule is not a significant energy action under the definition
in E.O. 13211; therefore, a Statement of Energy Effects is not
required.
List of Subjects in 2 CFR Part 1402
Accounting, Administrative practice and procedure, Adult education,
Aged, Agriculture, American Samoa, Bilingual education, Blind, Business
and industry, Civil rights, Colleges and universities, Communications,
Community development, Community facilities, Copyright, Credit,
Cultural exchange programs, Educational facilities, Educational
research, Education, Education of disadvantaged, Education of
individuals with disabilities, Educational study programs, Electric
power, Electric power rates, Electric utilities, Elementary and
secondary education, Energy conservation, Equal educational
opportunity, Federally affected areas, Government contracts, Grant
programs, Grant programs--agriculture, Grant programs--business, Grant
programs--communications, Grant programs--education, Grant programs--
energy, Grant programs--health, Grant programs--housing and community
development, Grant programs--social programs, Grants administration,
Guam, Home improvement, Homeless, Hospitals, Housing, Human research
subjects, Incorporation by reference, Indians, Indians--education,
Infants and children, Insurance, Intergovernmental relations,
International organizations, Inventions and patents, Loan programs,
Loan programs social programs, Loan programs--agriculture, Loan
programs--business and industry, Loan programs--communications, Loan
programs--energy, Loan programs--health, Loan programs--housing and
community development, Manpower training programs, Migrant labor,
Mortgage insurance, Nonprofit organizations, Northern Mariana Islands,
Pacific Islands Trust Territories, Privacy, Renewable energy, Reporting
and recordkeeping requirements, Rural areas, Scholarships and
fellowships, School construction, Schools, Science and technology,
Securities, Small businesses, State and local governments, Student aid,
Teachers, Telecommunications, Telephone, Urban areas, Veterans, Virgin
Islands, Vocational education, Vocational rehabilitation, Waste
treatment and disposal, Water pollution control, Water resources, Water
supply, Watersheds, Women.
For the reasons set forth in the preamble, the Department of the
Interior amends 2 CFR part 1402 as set forth below:
PART 1402--FINANCIAL ASSISTANCE INTERIOR REGULATION, SUPPLEMENTING
THE UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARDS
0
1. The authority citation for part 1402 continues to read as follows:
Authority: 5 U.S.C. 301 and 2 CFR part 200.
Sec. 1402.4 [Amended]
0
2. In Sec. 1402.4, remove ``2 CFR 200.46 and 200.47'' and add in its
place ``2 CFR 200.1''.
Sec. 1402.6 [Amended]
0
3. In Sec. 1402.6, remove ``2 CFR 200.85'' and add in its place ``2
CFR 200.1''.
Sec. 1402.112 [Amended]
0
4. In Sec. 1402.112(e), remove ``2 CFR 200.338'' and add in its place
``2 CFR 200.339''.
Sec. 1402.206 [Amended]
0
5. In Sec. 1402.206(b), remove ``2 CFR 200.210'' and add in its place
``2 CFR 200.211''.
0
6. Amend Sec. 1402.207 by adding paragraphs (a)(10) through (12) to
read as follows:
Sec. 1402.207 What specific conditions apply?
(a) * * *
(10) 2 CFR part 183, Never Contract With the Enemy.
(11) 2 CFR 200.216, Prohibition on Certain Telecommunication and
Video Surveillance Services or Equipment.
(12) All applicable Executive orders.
* * * * *
0
7. Amend Sec. 1402.300 by:
0
a. In paragraph (e)(5), removing the word ``and'' at the end of the
paragraph;
0
b. Revising (e)(6); and
0
c. Adding paragraphs (e)(7) and (8).
The revision and additions read as follows:
Sec. 1402.300 What are the statutory and national policy
requirements?
* * * * *
(e) * * *
(6) 48 CFR 3.909-2(a). Federal award recipients are prohibited from
requiring employees or contractors seeking to report fraud, waste, or
abuse to sign internal confidentiality agreements or statements
prohibiting or otherwise restricting such employees or
[[Page 57532]]
contractors from lawfully reporting such fraud, waste, or abuse to a
designated investigative or law enforcement representative of a Federal
department or agency authorized to receive such information;
(7) 2 CFR part 183, Never Contract With the Enemy; and
(8) 2 CFR 200.216, Prohibition on Certain Telecommunications and
Video Surveillance Services or Equipment.
This action is taken pursuant to delegated authority.
Rachael S. Taylor,
Principal Deputy Assistant Secretary--Policy, Management and Budget.
[FR Doc. 2021-22632 Filed 10-15-21; 8:45 am]
BILLING CODE 4334-63-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.