Rule2025-08568

Rescinding Obsolete Financial Assistance Rules

Primary source

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Published
May 16, 2025
Effective
July 15, 2025

Issuing agencies

Energy Department

Abstract

This DFR rescinds the outdated Financial Assistance Rules.

Full Text

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<title>Federal Register, Volume 90 Issue 94 (Friday, May 16, 2025)</title>
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[Federal Register Volume 90, Number 94 (Friday, May 16, 2025)]
[Rules and Regulations]
[Pages 20761-20764]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08568]


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DEPARTMENT OF ENERGY

10 CFR Part 600

[DOE-HQ-2025-0017]
RIN 1991-AC20


Rescinding Obsolete Financial Assistance Rules

AGENCY: Office of Management, Department of Energy (DOE).

ACTION: Direct final rule (DFR); request for comments.

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SUMMARY: This DFR rescinds the outdated Financial Assistance Rules.

DATES: The final rule is effective July 15, 2025, unless significant 
adverse comments are received by June 16, 2025. Significant adverse 
comments oppose the rule and raise, alone or in combination, a serious 
enough issue related to each of the independent grounds for the rule 
that a substantive response is required. If significant adverse 
comments are received, notice will be published in the Federal Register 
before the effective date either withdrawing the rule or issuing a new 
final rule which responds to significant adverse comments.

ADDRESSES: Interested persons are encouraged to submit comments using 
the Federal eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a> under docket 
number DOE-HQ-2025-0017. Follow the instructions for submitting 
comments.
    Docket: The docket for this final rule, which includes Federal 
Register notices, comments, and other supporting documents and 
materials, is available for review at <a href="http://www.regulations.gov">www.regulations.gov</a>. All 
documents in the docket are listed in the <a href="http://www.regulations.gov">www.regulations.gov</a> index. 
However, not all documents listed in the index may be publicly 
available, such as information that is exempt from public disclosure. 
The docket web page can be found at <a href="http://www.regulations.gov/docket/DOE-HQ-2025-0017">www.regulations.gov/docket/DOE-HQ-2025-0017</a>. The docket web page contains instructions on how to access 
all documents, including public comments, in the docket, as well as a 
summary of the final rule.
    In accordance with 5 U.S.C. 553(b)(4), a summary of this rule may 
be found at <a href="http://regulations.gov">regulations.gov</a>, under the docket number.

FOR FURTHER INFORMATION CONTACT: Mr. David Taggart, U.S. Department of 
Energy, Office of the General Counsel, GC-1, 1000 Independence Avenue 
SW, Washington, DC 20585-0121. Telephone: (202) 586-5281. Email: 
<a href="/cdn-cgi/l/email-protection#96d2d9d3d1f3f8f3e4f7fad5f9e3f8e5f3fad6fee7b8f2f9f3b8f1f9e0"><span class="__cf_email__" data-cfemail="44000b0103212a21362528072b312a372128042c356a202b216a232b32">[email&#160;protected]</span></a>.

[[Page 20762]]


SUPPLEMENTARY INFORMATION: 

Table of Contents

I. General Discussion
II. Procedural Issues and Regulatory Review
    A. Review Under Executive Orders 12866
    B. Review Under the Regulatory Flexibility Act
    C. Review Under the Paperwork Reduction Act
    D. Review Under the National Environmental Policy Act of 1969
    E. Review Under Executive Order 13132
    F. Review Under Executive Order 12988
    G. Review Under the Unfunded Mandates Reform Act
    H. Review Under the Treasury and General Government 
Appropriations Act, 1999
    I. Review Under Executive Order 12630
    J. Review Under the Treasury and General Government 
Appropriations Act, 2001
    K. Review Under Executive Order 13211
    L. Review Under Additional Executive Orders and Presidential 
Memoranda
    M. Congressional Notification
III. Approval of the Secretary

I. General Discussion

    DOE is rescinding part 600 of title 10, Code of Federal Regulations 
by this direct final rule. Part 600 contains rules that governed DOE 
financial assistance awards prior to December 26, 2014. Effective 
December 26, 2014, DOE adopted the Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards in 2 CFR 
parts 200 and 910. 79 FR 75871 (Dec. 19, 2014); see also 2 CFR 910.120. 
As a result, the regulations at 10 CFR part 600 are now obsolete. While 
the regulations may have had value some value as a point of reference 
for ongoing financial assistance awards made prior to December 26, 
2014, any such value has diminished over the decade since these 
regulations were superseded. DOE therefore rescinds part 600 in its 
entirety.

II. Procedural Issues and Regulatory Review

A. Review Under Executive Orders 12866

    Executive Order (E.O.) 12866, ``Regulatory Planning and Review,'' 
as supplemented and reaffirmed by E.O. 13563, ``Improving Regulation 
and Regulatory Review, 76 FR 3821 (Jan. 21, 2011), requires agencies, 
to the extent permitted by law, to (1) propose or adopt a regulation 
only upon a reasoned determination that its benefits justify its costs 
(recognizing that some benefits and costs are difficult to quantify); 
(2) tailor regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives, taking into account, 
among other things, and to the extent practicable, the costs of 
cumulative regulations; (3) select, in choosing among alternative 
regulatory approaches, those approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity); (4) to the 
extent feasible, specify performance objectives, rather than specifying 
the behavior or manner of compliance that regulated entities must 
adopt; and (5) identify and assess available alternatives to direct 
regulation, including providing economic incentives to encourage the 
desired behavior, such as user fees or marketable permits, or providing 
information upon which choices can be made by the public.
    For the reasons stated in the preamble, this direct final rule is 
consistent with these principles. Section 6(a) of E.O. 12866 also 
requires agencies to submit ``significant regulatory actions'' to the 
Office of Information and Regulatory Affairs (OIRA) for review. OIRA 
has determined that this direct final rule does not constitute a 
``significant regulatory action'' under section 3(f) of E.O. 12866. 
Accordingly, this direct final rule was not submitted to OIRA for 
review under E.O. 12866.

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis (``IRFA'') 
and a final regulatory flexibility analysis (``FRFA'') 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 E.O. 13272, ``Proper Consideration of Small Entities in Agency 
Rulemaking,'' 67 FR 53461 (Aug. 16, 2002), DOE published procedures and 
policies on February 19, 2003, to ensure that the potential impacts of 
its rules on small entities are properly considered during the 
rulemaking process. 68 FR 7990. DOE has made its procedures and 
policies available on the Office of the General Counsel's website 
(<a href="http://www.energy.gov/gc/office-general-counsel">www.energy.gov/gc/office-general-counsel</a>).
    DOE reviewed this rescission under the provisions of the Regulatory 
Flexibility Act and the policies and procedures published on February 
19, 2003. This DFR eliminates definitions that are not used in 
regulations. Therefore, DOE concludes that the impacts of the 
rescission would not have a ``significant economic impact on a 
substantial number of small entities,'' and that the preparation of an 
IRFA is not warranted. DOE will transmit this certification and 
supporting statement of factual basis to the Chief Counsel for Advocacy 
of the Small Business Administration for review under 5 U.S.C. 605(b).

C. Review Under the Paperwork Reduction Act

    This rescission imposes no new information or recordkeeping 
requirements. Accordingly, Office of Management and Budget (OMB) 
clearance is not required under the Paperwork Reduction Act. (44 U.S.C. 
3501 et seq.).

D. Review Under the National Environmental Policy Act of 1969

    DOE has analyzed this action in accordance with the National 
Environmental Policy Act of 1969, as amended, (NEPA) and DOE's NEPA 
implementing regulations (10 CFR part 1021). DOE has determined that 
this rule qualifies for categorical exclusion under 10 CFR part 1021, 
subpart D, appendix A5, because it is an interpretive rulemaking that 
does not change the environmental effect of the rule.

E. Review Under Executive Order 13132

    E.O. 13132, ``Federalism,'' 64 FR 43255 (Aug. 10, 1999), imposes 
certain requirements on Federal agencies formulating and implementing 
policies or regulations that preempt State law or that have federalism 
implications. The Executive order requires agencies to examine the 
constitutional and statutory authority supporting any action that would 
limit the policymaking discretion of the States and to carefully assess 
the necessity for such actions. The Executive order also requires 
agencies to have an accountable process to ensure meaningful and timely 
input by State and local officials in the development of regulatory 
policies that have federalism implications. On March 14, 2000, DOE 
published a statement of policy describing the intergovernmental 
consultation process it will follow in the development of such 
regulations. 65 FR 13735.
    DOE has examined this rescission and has determined that it would 
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.

F. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of E.O. 12988, ``Civil 
Justice Reform,'' imposes

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on Federal 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. 61 FR 4729 (Feb. 7, 1996). 
Regarding the review required by section 3(a), section 3(b) of E.O. 
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 
Attorney General.
    Section 3(c) of E.O. 12988 requires Executive agencies to review 
regulations in light 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, this rescission meets 
the relevant standards of E.O. 12988.

G. Review Under the Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and Tribal governments and the 
private sector. Public Law 104-4, sec. 201 (codified at 2 U.S.C. 1531). 
For a regulatory action likely to result in a rule that may cause the 
expenditure by State, local, and Tribal governments, in the aggregate, 
or by the private sector of $100 million or more in any one year 
(adjusted annually for inflation), section 202 of UMRA requires a 
Federal agency to publish a written statement that estimates the 
resulting costs, benefits, and other effects on the national economy. 
(2 U.S.C. 1532(a), (b)) The UMRA also requires a Federal agency to 
develop an effective process to permit timely input by elected officers 
of State, local, and Tribal governments on a ``significant 
intergovernmental mandate,'' and requires an agency plan for giving 
notice and opportunity for timely input to potentially affected small 
governments before establishing any requirements that might 
significantly or uniquely affect them. On March 18, 1997, DOE published 
a statement of policy on its process for intergovernmental consultation 
under UMRA. 62 FR 12820. DOE's policy statement is also available at 
<a href="http://www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf">www.energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf</a>.
    DOE examined this rescission according to UMRA and its statement of 
policy and determined that the rescission does not contain a Federal 
intergovernmental mandate, nor is it expected to require expenditures 
of $100 million or more in any one year by State, local, and Tribal 
governments, in the aggregate, or by the private sector. As a result, 
the analytical requirements of UMRA do not apply.

H. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any rule that may affect family well-being. 
This rescission would 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.

I. Review Under Executive Order 12630

    Pursuant to E.O. 12630, ``Governmental Actions and Interference 
with Constitutionally Protected Property Rights,'' 53 FR 8859 (March 
18, 1988), DOE has determined that this rescission would not result in 
any takings that might require compensation under the Fifth Amendment 
to the U.S. Constitution.

J. Review Under the Treasury and General Government Appropriations Act, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to 
review most disseminations of information to the public under 
information quality guidelines established by each agency pursuant to 
general guidelines issued by OMB. OMB's guidelines were published at 67 
FR 8452 (Feb. 22, 2002), and DOE's guidelines were published at 67 FR 
62446 (Oct. 7, 2002). Pursuant to OMB Memorandum M-19-15, Improving 
Implementation of the Information Quality Act (April 24, 2019), DOE 
published updated guidelines which are available at: <a href="https://www.energy.gov/cio/department-energy-information-quality-guidelines">https://www.energy.gov/cio/department-energy-information-quality-guidelines</a>. 
DOE has reviewed this rescission under the OMB and DOE guidelines and 
has concluded that it is consistent with applicable policies in those 
guidelines.

K. Review Under Executive Order 13211

    E.O. 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 OIRA at OMB, 
a Statement of Energy Effects for any significant energy action. A 
``significant energy action'' is defined as any action by an agency 
that promulgates 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 is likely to have a significant 
adverse effect on the supply, distribution, or use of energy; or (2) is 
designated by the Administrator of OIRA as a significant energy action. 
For any 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.
    This rescission is not a significant regulatory action under E.O. 
12866. Moreover, it would not have a significant adverse effect on the 
supply, distribution, or use of energy, nor has it been designated as 
such by the Administrator at OIRA. Accordingly, DOE has not prepared a 
Statement of Energy Effects.

L. Review Under Additional Executive Orders and Presidential Memoranda

    DOE has examined this rescission and has determined that it is 
consistent with the policies and directives outlined in E.O. 14154 
``Unleashing American Energy,'' E.O. 14192, ``Unleashing Prosperity 
Through Deregulation,'' and Presidential memorandum, ``Delivering 
Emergency Price Relief for American Families and Defeating the Cost-of-
Living Crisis.'' This rescission is expected to be an Executive Order 
14192 deregulatory action.

M. Congressional Notification

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of this rule before 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(2).

III. Approval of the Secretary

    The Secretary of Energy has approved publication of this direct 
final rule; request for comment.

[[Page 20764]]

List of Subjects in 10 CFR Part 600

    Accounting, Administrative practice and procedure, Colleges and 
universities, Government contracts, Grant programs, Hospitals, Indians, 
Intergovernmental relations, Loan programs, Lobbying, Nonprofit 
organizations, Penalties, Reporting and recordkeeping requirements.

Signing Authority

    This document of the Department of Energy was signed on May 9, 
2025, by Chris Wright, Secretary of Energy. That document with the 
original signature and date is maintained by DOE. For administrative 
purposes only, and in compliance with requirements of the Office of the 
Federal Register, the undersigned DOE Federal Register Liaison Officer 
has been authorized to sign and submit the document in electronic 
format for publication, as an official document of the Department of 
Energy. This administrative process in no way alters the legal effect 
of this document upon publication in the Federal Register.

    Signed in Washington, DC, on May 9, 2025.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.

    For the reasons set forth in the preamble, DOE amends part 600 of 
chapter II, subchapter H, of title 10 of the Code of Federal 
Regulations, as set forth:

PART 600--FINANCIAL ASSISTANCE RULES

0
1. The authority citation for part 600 continues to read as follows:

    Authority: 42 U.S.C. 7101 et seq.; 31 U.S.C. 6301-6308; 50 
U.S.C. 2401 et seq.

PART 600--[Removed and Reserved]

0
2. Remove and reserve part 600.

[FR Doc. 2025-08568 Filed 5-12-25; 9:30 am]
BILLING CODE 6450-01-P


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