Notice2025-11375

Referrals for Potential Criminal Enforcement; Guidance

Primary source

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Published
June 20, 2025
Effective
June 20, 2025

Issuing agencies

Energy DepartmentFederal Energy Regulatory Commission

Abstract

This notice describes the Commission's plans to address criminally liable regulatory offenses under recent Executive Order 14294, Fighting Overcriminalization in Federal Regulations, consistent with the Commission's existing policy.

Full Text

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<title>Federal Register, Volume 90 Issue 117 (Friday, June 20, 2025)</title>
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[Federal Register Volume 90, Number 117 (Friday, June 20, 2025)]
[Notices]
[Page 26285]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11375]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. AD25-12-000]


Referrals for Potential Criminal Enforcement; Guidance

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice.

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SUMMARY: This notice describes the Commission's plans to address 
criminally liable regulatory offenses under recent Executive Order 
14294, Fighting Overcriminalization in Federal Regulations, consistent 
with the Commission's existing policy.

DATES: This notice is effective June 20, 2025.

FOR FURTHER INFORMATION CONTACT: Jennifer Gordon, Office of 
Enforcement, Federal Energy Regulatory Commission, (202) 502-8908, 
<a href="/cdn-cgi/l/email-protection#307a555e5e595655421e775f42545f5e70565542531e575f46"><span class="__cf_email__" data-cfemail="4b012e2525222d2e39650c24392f24250b2d2e3928652c243d">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: 
    1. On May 9, 2025, President Trump issued Executive Order 14294, 
titled Fighting Overcriminalization in Federal Regulations (E.O. 
14294). Among other things, and as discussed below, the E.O. requires 
agencies to undertake certain actions, including issuing guidance to be 
published in the Federal Register. In this Notice of Guidance (Notice), 
we provide guidance to the public on our existing policies consistent 
with E.O. 14294.

I. Background

    2. Under the Federal Power Act, 16 U.S.C. 825m, 825o, Natural Gas 
Act, 15 U.S.C. 717s, 717t, and Natural Gas Policy Act, 15 U.S.C. 3414, 
the Commission is authorized to refer potential criminal conduct to the 
Department of Justice (DOJ). Those provisions indicate that criminal 
penalties may be assessed on a person who knowingly and willfully 
violates a Commission statute, rule, regulation, or order. The 
Commission may transmit such evidence as may be available concerning 
such acts or practices to DOJ, which, in its discretion, may institute 
criminal proceedings.\1\
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    \1\ Such referrals by the Commission are rare, with only two 
instances over the past 15 years.
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    3. In its 2005 Policy Statement on Enforcement, the Commission 
noted its authority to make criminal referrals to DOJ and the factors 
the Commission will consider in making those referrals. The Commission 
stated:

    If the misconduct is serious enough, we may refer the matter for 
criminal prosecution to provide adequate punishment and deterrence. 
We will take all factors into account in deciding what cases should 
be referred for criminal prosecution, including the seriousness of 
the violation, the extent of the harm done, the evidence of willful 
behavior, and the strength of the evidence of wrongdoing.\2\
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    \2\ Enf't of Statutes, Orders, Rules & Reguls., 113 FERC ] 
61,068, at P 15 (2005) (Policy Statement on Enforcement); see also 
Enf't of Statutes, Reguls., & Orders, 123 FERC ] 61,156, at P 49 
(2008) (Revised Policy Statement on Enforcement).
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II. Notice Providing Guidance

    4. Consistent with the requirements of E.O. 14294, the Commission 
advises the public that by May 9, 2026, the Commission, in consultation 
with the Attorney General, will provide to the Director of the Office 
of Management and Budget a report containing: (1) a list of all 
criminal regulatory offenses \3\ enforceable by the Commission or DOJ; 
and (2) for each such criminal regulatory offense, the range of 
potential criminal penalties and the applicable mens rea standard for a 
violation.\4\
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    \3\ ``Criminal regulatory offense'' means a Federal regulation 
that is enforceable by a criminal penalty. E.O. 14294, Sec.  3(b).
    \4\ ``Mens rea'' means the state of mind that by law must be 
proven to convict a particular defendant of a particular crime. E.O. 
14294, Sec.  3(c).
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    5. This Notice also announces a general policy, subject to 
appropriate exceptions and to the extent consistent with law, that when 
the Commission is deciding whether to refer alleged violations of 
criminal regulatory offenses to DOJ, the Commission and its staff 
should consider, among other factors: (1) the harm or risk of harm, 
pecuniary or otherwise, caused by the alleged offense; (2) the 
potential gain to the putative defendant that could result from the 
offense; (3) whether the putative defendant held specialized knowledge, 
expertise, or was licensed in an industry related to the rule or 
regulation at issue; and (4) evidence, if any is available, of the 
putative defendant's general awareness of the unlawfulness of his 
conduct as well as his knowledge or lack thereof of the regulation at 
issue.
    6. The Commission will continue to follow its longstanding policy 
regarding criminal referrals to DOJ as set forth in the Policy 
Statement on Enforcement. Consistent with this Notice, the Commission 
will consider the factors set forth in E.O. 14294 that are discussed 
above. We note that the factors listed in section 7 of E.O. 14294 
largely overlap with the factors the Commission already considers under 
the Policy Statement on Enforcement. As noted above, in considering 
whether to make a criminal referral to DOJ, the Commission's policy has 
been to consider factors including: the seriousness of the violation; 
evidence of willful behavior; and the strength of the evidence of 
wrongdoing.\5\ The factors listed in the E.O. are consistent with the 
above factors that the Commission considers under its existing policy.
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    \5\ See P 3 supra.
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III. Document Availability

    7. In addition to publishing the full text of this document in the 
Federal Register, the Commission provides all interested persons an 
opportunity to view and/or print the contents of this document via the 
internet through the Commission's Home Page (<a href="http://www.ferc.gov">http://www.ferc.gov</a>).
    8. From the Commission's Home Page on the internet, this 
information is available on eLibrary. The full text of this document is 
available on eLibrary in PDF and Microsoft Word format for viewing, 
printing, and/or downloading. To access this document in eLibrary, type 
the docket number excluding the last three digits of this document in 
the docket number field.
    9. User assistance is available for eLibrary and the Commission's 
website during normal business hours from FERC Online Support at 202-
502-6652 (toll free at 1-866-208-3676) or email at 
<a href="/cdn-cgi/l/email-protection#dbbdbea9b8b4b5b7b2b5bea8aeababb4a9af9bbdbea9b8f5bcb4ad"><span class="__cf_email__" data-cfemail="e68083948589888a8f888395939696899492a680839485c8818990">[email&#160;protected]</span></a>, or the Public Reference Room at (202) 502-
8371, TTY (202)502-8659. Email the Public Reference Room at 
<a href="/cdn-cgi/l/email-protection#d7a7a2b5bbbeb4f9a5b2b1b2a5b2b9b4b2a5b8b8ba97b1b2a5b4f9b0b8a1"><span class="__cf_email__" data-cfemail="700005121c19135e0215161502151e1315021f1f1d30161502135e171f06">[email&#160;protected]</span></a>.

    Issued: June 16, 2025.
Debbie-Anne A. Reese,
Secretary.
[FR Doc. 2025-11375 Filed 6-18-25; 8:45 am]
BILLING CODE 6717-01-P


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Indexed from Federal Register on June 20, 2025.

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