Proposed Rule2026-04687

Notification of Petition for Rulemaking; America First Legal Foundation

Primary source

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Published
March 10, 2026

Issuing agencies

Energy Department

Abstract

This document announces receipt of a petition for rulemaking received by the Department of Energy (DOE) on January 7, 2026, from the America First Legal Foundation (AFL) requesting that DOE update its regulations concerning procedures requiring that management and operating contractors (M&Os) who enter into agreements with DOE submit and implement a written Diversity, Equity, Inclusion, and Accessibility (DEIA) Plan. This document summarizes the substantive aspects of this petition and requests public comments on the merits of the petition.

Full Text

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<title>Federal Register, Volume 91 Issue 46 (Tuesday, March 10, 2026)</title>
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[Federal Register Volume 91, Number 46 (Tuesday, March 10, 2026)]
[Proposed Rules]
[Pages 11495-11498]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04687]


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DEPARTMENT OF ENERGY

48 CFR Part 970

[DOE-HQ-2026-0199]


Notification of Petition for Rulemaking; America First Legal 
Foundation

AGENCY: Office of the General Counsel, Department of Energy (DOE).

ACTION: Notification of petition for rulemaking; request for comments.

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SUMMARY: This document announces receipt of a petition for rulemaking 
received by the Department of Energy (DOE) on January 7, 2026, from the 
America First Legal Foundation (AFL) requesting that DOE update its 
regulations concerning procedures requiring that management and 
operating contractors (M&Os) who enter into agreements with DOE submit 
and implement a written Diversity, Equity, Inclusion, and Accessibility 
(DEIA) Plan. This document summarizes the substantive aspects of this 
petition and requests public comments on the merits of the petition.

DATES: DOE will accept comments, data, and information with respect to 
the America First Legal Foundation Petition until April 9, 2026.

ADDRESSES: You may submit comments, identified by docket number ``DOE-
HQ-2026-0199,'' by the following method:
    Federal eRulemaking Portal: <a href="http://www.regulations.gov">www.regulations.gov</a>. Follow the 
instructions for submitting comments. For detailed instructions on 
submitting comments and additional information on this process, see the 
SUPPLEMENTARY INFORMATION section of this document.
    Docket: The docket, which includes Federal Register notices, 
comments, and other supporting documents/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. The docket web page can be found at: 
<a href="http://www.regulations.gov/docket/DOE-HQ-2026-0199">www.regulations.gov/docket/DOE-HQ-2026-0199</a>. The docket web page will 
contain simple instructions on how to access all documents, including 
public comments, in the docket.

FOR FURTHER INFORMATION CONTACT: Mr. Lawrence Butler, U.S. Department 
of Energy, Office of Management, 1000 Independence Avenue SW, 
Washington, DC 20585-0121. Telephone: (240) 805-8181. Email: 
<a href="/cdn-cgi/l/email-protection#8ec3cfb8bedcfbe2ebe3efe5e7e0e9cee6ffa0eae1eba0e9e1f8"><span class="__cf_email__" data-cfemail="91dcd0a7a1c3e4fdf4fcf0faf8fff6d1f9e0bff5fef4bff6fee7">[email&#160;protected]</span></a>. Ms. Jody TallBear, U.S. Department of 
Energy, Office of the General Counsel, GC-33, 1000 Independence Avenue 
SW, Washington, DC 20585-0103. Telephone: (202) 586-4798. Email: 
<a href="/cdn-cgi/l/email-protection#a6ecc9c2df88f2c7cacae4c3c7d4e6ced788c2c9c388c1c9d0"><span class="__cf_email__" data-cfemail="165c79726f3842777a7a54737764567e673872797338717960">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: 
    The Administrative Procedure Act (APA), 5 U.S.C. 551 et seq., 
provides, among other things, that ``[e]ach agency shall give an 
interested person the right to petition for the issuance, amendment, or 
repeal of a rule.'' (5 U.S.C. 553(e)) DOE received a petition for 
rulemaking from the America First Legal Foundation requesting that DOE 
update its regulations at DOE Federal Acquisition Regulation (referred 
to as ``DEAR'') by rescinding DEAR clause provision 48 CFR 970.5226-1 
titled ``Diversity Plan.'' The subject provision was last updated in 
December 2024. 89 FR 89799 (November 13, 2024).
    In their petition, the petitioners assert that the ``Diversity 
Plan: provision is problematic for several reasons including that it is 
drafted in vague, subjective terms that invite arbitrary application as 
contractors endeavor to create and implement Diversity Plans. Secondly, 
petitioners assert that this vagueness is particularly problematic 
related to promoting race and identity-conscious initiatives that may 
conflict with federal civil rights laws. Additionally, petitioners 
assert that the provision is at odds with current Administration policy 
as outlined in Executive Order (E.O.) 14151, ``Ending Radical and 
Wasteful Government DEI Programs and Preferencing.''
    DOE notes that it has taken action to implement E.O. 14151 as it 
relates to contracting to include modifying contract terms and 
conditions to strengthen civil rights compliance language and related 
specifically to the ``Diversity Plan'' provision. First, on January 23, 
2025, DOE issued Policy Flash 2025-16 entitled, ``Rescission of DEI, 
CBP, and Justice40 Policy Flashes, Acquisition Letters, and Financial 
Assistance Letters.'' This Policy Flash rescinded former DOE guidance 
on DEI, CBP, and Justice40 requirements. DOE later issued a class 
deviation from DEAR 970.5226-1 on February 3, 2025. The deviation 
eliminated the requirement to include the DEIA Plan clause at 970.5226-
1, directed contracting officers to immediately notify affected 
contractors that DOE will no longer enforce the clause, and instructed 
contracting officers to modify affected solicitations and contracts to 
remove the clause as soon as practicable. The AFL petition acknowledges 
that DOE issued the deviation but asserts that DOE could ``reactivate'' 
the regulation at any time so it should be rescinded.
    The petition is described in this document and set forth verbatim 
below. The petition and class deviation are also available in the 
docket at <a href="http://www.regulations.gov/docket/DOE-HQ-2026-0199">www.regulations.gov/docket/DOE-HQ-2026-0199</a>. Through this 
notification, DOE is seeking views on whether it should grant the 
petition and undertake a rulemaking to rescind the ``Diversity Plan'' 
provision. By seeking comment on whether to grant this petition, DOE 
takes no position at this time regarding the merits of the suggested 
rulemaking or the assertions made by the petitioners.
    DOE welcomes comments and views of interested parties on any aspect 
of the petition for rulemaking and on whether DOE should proceed with 
the rulemaking.

Submission of Comments

    DOE invites all interested parties to submit in writing by the date 
under the DATES heading, comments and information regarding this 
petition via <a href="http://www.regulations.gov">www.regulations.gov</a>. All submissions must include the 
agency name, ``Department of Energy,'' and docket number, DOE-HQ-2026-
0199, for this rulemaking. All comments received will be posted without 
change to <a href="http://www.regulations.gov">www.regulations.gov</a>, including any personal information 
provided. Do not include personal information you would not want 
publicly shared, including social security information, home addresses, 
or any other personal identifying information not to be publicly 
shared. DOE will not take responsibility for sharing information shared 
by you. Do not submit to <a href="http://www.regulations.gov">www.regulations.gov</a> information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (CBI)). Comments submitted through 
<a href="http://www.regulations.gov">www.regulations.gov</a> cannot be claimed as CBI. Comments received through 
the website will waive any CBI claims for the information submitted.
    DOE considers public participation to be a very important part of 
its process for considering rulemaking petitions. DOE actively 
encourages the participation and interaction of the

[[Page 11496]]

public during the comment period. Interactions with and between members 
of the public provide a balanced discussion of the issues and assist 
DOE in determining how to proceed with a petition.

Signing Authority

    This document of the Department of Energy was signed on March 6, 
2026, by Jonathan Brightbill, General Counsel, pursuant to delegated 
authority from the 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 March 6, 2026.
Jennifer Hartzell,
Alternate Federal Register Liaison Officer, U.S. Department of Energy.

Petition of America First Legal Foundation for Rulemaking

Petition To Rescind Rule Requiring Department of Energy Contractors To 
Develop a Diversity Plan

Petition for Rulemaking

Summary of Petition

    1. This petition for rulemaking is submitted pursuant to 5 U.S.C. 
553(e) and 42 U.S.C. 7191, which grant any interested person the right 
to petition the Department of Energy for the issuance, amendment, or 
repeal of a rule. America First Legal Foundation (``AFL'') respectfully 
requests that the Department of Energy (``DOE'') rescind 48 CFR 
970.5226-1--which requires management and operating contractors who 
enter into engagements with the DOE to prepare, submit, and annually 
update a written diversity, equity, inclusion, and accessibility plan. 
The diversity plan requirement pressures contractors to sort and 
evaluate employees and applicants by race and sex, encouraging quotas 
and preferences that contravene federal civil rights guarantees and the 
Constitution's promise of equal protection. Prompt rescission of this 
rule is essential to restoring fair, merit-based federal contracting 
untethered from compelled ``diversity'' metrics.

Statement of Interest

    2. AFL is a national, 501(c)(3) nonprofit organization working to 
promote the rule of law, prevent executive overreach, protect our 
citizens' civil rights, and promote public understanding of the 
Constitution and the laws of the United States. Our mission includes 
promoting government transparency and accountability by gathering 
official information, analyzing it, and disseminating it through 
reports, press releases, and media, including social media platforms, 
all to educate the public and to keep government officials accountable 
for their duty to faithfully execute, protect, and defend the 
Constitution, laws, and citizens of the United States.

Jurisdiction & Authority

    3. Congress created the Department of Energy with the passage of 
the Department of Energy Organization Act \1\ and authorized it to 
manage and operate nuclear and other energy facilities through 
contracts with private entities.\2\ Acting under this general 
contracting authority, the Department adopted acquisition regulations 
in 48 CFR part 970 to govern its management-and-operating contracts.\3\ 
One such provision, 48 CFR 970.5226-1, requires covered contractors to 
submit and implement a written Diversity (or DEIA) Plan.\4\ The clause 
requires contractors to prepare, submit, and annually update a written 
diversity, equity, inclusion, and accessibility plan for approval by 
the contracting officer.\5\ The plan must describe how they will 
promote workforce and supplier diversity, set specific goals, and 
periodically report on their progress.\6\ DOE inserts this clause into 
its M&O contracts to operationalize its diversity policies within the 
contractor workforce and subcontracting base.\7\
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    \1\ 42 U.S.C. 7101 et seq.
    \2\ 42 U.S.C. 7256(a) (authorizing the Secretary ``to enter into 
and perform such contracts . . . as he may deem to be necessary or 
appropriate to carry out functions . . . vested in the Secretary'').
    \3\ 48 CFR 970; see also 42 U.S.C. 7191 (outlining the DOE's 
general rulemaking authority).
    \4\ 48 CFR 970.5226-1 (2024).
    \5\ Id.
    \6\ Id.
    \7\ Id.
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Background

    4. 48 CFR 970.5226-1 originated in 2000, when the DOE undertook a 
comprehensive rewrite of its management and operating contract 
regulations and added a Diversity Policy and Diversity Contract Clause 
to its regulations governing management and operating contracts.\8\ 
Under that original framework from 2000, the clause was presented as a 
tool for encouraging contractors to ``foster and enhance partnerships 
with small, small disadvantaged, women-owned small businesses, and 
educational institutions.'' \9\ Contractors were not required to pursue 
racial diversity or to prepare any sort of diversity plan.\10\
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    \8\ 48 CFR 970.2671 (2000).
    \9\ Id.
    \10\ Id.
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    5. But several decades later, in 2023, the DOE proposed 48 CFR 
970.5226-1, which rebranded the ``Diversity Contract Clause'' as a 
``Diversity Plan.'' \11\ The amendment requires contractors to submit a 
``Diversity, Equity, Inclusion, and Accessibility (DEIA) Plan'' to the 
contracting officer. The amendments were finalized in November 
2024.\12\ The Federal Register notice explained that this change was 
intended ``to incorporate the more current terminology of `Diversity, 
Equity, Inclusion, and Accessibility' (DEIA)'' and to ``better align 
the DOE clause with current Administration initiatives'' and ``the 
broader scope of recent DEIA initiatives.'' \13\
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    \11\ 48 CFR 970.5226-1 (2024).
    \12\ Id.
    \13\ 48 CFR Chapter 9 (Department of Energy Acquisition 
Regulation (DEAR)).
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    6. The addition of the ``Diversity Plan'' was closely tied to the 
Biden Administration's agenda of promoting diversity, equity, and 
inclusion.\14\ For example, in the first few days of the Biden 
administration, President Biden ordered the federal workforce to apply 
DEI principles in its hiring.\15\ DOE's Diversity Plan clause became 
one vehicle for operationalizing that mandate in the management and 
operating contracting space, by requiring contractors to internalize 
DEIA priorities in areas that extend well beyond traditional equal-
employment-opportunity compliance. In practice, the clause invites 
contractors to treat DEIA as a freestanding policy objective, rather 
than as a constraint defined and limited by existing civil-rights 
statutes.
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    \14\ See e.g., Exec. Order No. 14,035, 86 FR 34,593 (Jun. 25, 
2021) (Diversity, Equity, Inclusion, and Accessibility in the 
Federal Workforce); Exec. Order No. 13,985, 86 FR 7,009 (Jan. 25, 
2021) (Advancing Racial Equity and Support for Underserved 
Communities Through the Federal Government); Exec. Order No. 14,091, 
88 FR 10,825 (Feb. 16, 2023) (Further Advancing Racial Equity and 
Support for Underserved Communities Through the Federal Government).
    \15\ See Exec. Order No. 14,035, 86 FR 34,593 (Jun. 25, 2021) 
(Diversity, Equity, Inclusion, and Accessibility in the Federal 
Workforce).

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[[Page 11497]]

The Diversity Plan Conflicts With Current Executive Policy

    7. The Diversity Plan clause at 48 CFR 970.5226-1 is fundamentally 
at odds with the current Trump Administration's stated policy goals.
    8. On January 20, 2025, President Trump responded to the widespread 
support for eliminating the government's race- and sex-conscious 
policies by signing Executive Order 14,151, Ending Radical and Wasteful 
Government DEI Programs and Preferencing.\16\ The Executive Order 
``coordinate[s] the termination of all discriminatory programs, 
including illegal DEI and `diversity, equity, inclusion, and 
accessibility' (DEIA) mandates, policies, programs, preferences, and 
activities in the Federal Government.'' \17\
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    \16\ Exec. Order No. 14,151, 90 FR 8,339 (Jan. 29, 2025) (Ending 
Radical and Wasteful Government DEI Programs and Preferencing).
    \17\ Id.
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    9. The DOE has recognized that this Executive Order poses problems 
for 48 CFR 970.5226-1 and has issued a class deviation for the 
Diversity Plan requirement.\18\ The deviation instructs contracting 
officers to notify contractors that the DOE ``will no longer enforce'' 
the clause, that they ``should not submit'' DEIA plans or updates, and 
that they should remove Diversity Plan clauses from existing contracts 
``as soon as practicable,'' pending formal amendment of the DEAR.\19\ 
But that formal amendment has not yet been made.
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    \18\ Class Deviation Findings And Determination Department Of 
Energy Acquisition Regulation (DEAR) 970.5226-1, DOE (Feb. 3, 2025), 
<a href="https://perma.cc/M2MJ-U6D2">https://perma.cc/M2MJ-U6D2</a>.
    \19\ Id.
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    10. According to both the APA and the Supreme Court's 
interpretation of the APA, the DOE may rescind or revise a prior rule 
when it concludes the rule is unlawful, no longer justified, or 
inconsistent with current policy, so long as it provides a reasoned 
explanation and complies with the APA's procedural requirements.\20\ 
Given this landscape, rescission is the logical next step. Maintaining 
this clause in the Code of Federal Regulations, even while the DOE has 
formally suspended its use, prolongs uncertainty for contracting 
officers and contractors and creates an invitation for future 
administrators to revive the unlawful requirements.
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    \20\ See 5 U.S.C. 553(b)-(c), 706(2)(A); FCC v. Fox Television 
Stations, Inc., 556 U.S. 502, 514-16 (2009); DHS v. Regents of the 
Univ. of Cal., 591 U.S. 1, 29-34 (2020).
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The Diversity Plan Imposes Additional Regulatory Burdens With No 
Legitimate Purpose

    11. Requiring contractors to develop, update, and negotiate a 
stand-alone DEIA Plan diverts management time and resources from the 
technical, safety, and mission-critical work those contracts are 
supposed to advance. When the DOE revised Sec.  970.5226-1 in 2024, it 
did not identify any concrete evidence that the Diversity Plan 
requirement had improved contract performance or addressed documented 
deficiencies in contractor practices. Instead, the DOE's stated 
rationale was largely to ``incorporate'' updated DEIA terminology and 
align the clause with contemporary policy priorities.\21\
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    \21\ See 48 CFR Chapter 9 (Department of Energy Acquisition 
Regulation (DEAR)), supra n. 7.
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    12. Because it does not serve a legitimate purpose, the DEIA Plan 
requirement functions less as a neutral compliance mechanism and more 
as a preferential channel for contractors willing to endorse a woke 
ideological framework. The clause does not turn on legal noncompliance, 
performance failures, or identifiable risks; instead, it directs 
contractors to describe ``innovative strategies'' to advance 
``diversity, equity, inclusion, and accessibility'' across broad 
categories of activity.\22\ Contractors that adopt expansive DEIA 
rhetoric can readily represent themselves as meeting the clause's 
expectations, while those that simply adhere to existing, content-
neutral civil-rights and procurement requirements may be perceived as 
deficient. This inherently subjective standard invites contracting 
officials to inject their own political or ideological preferences into 
what should be an objective, performance-based process.
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    \22\ 48 CFR 970.5226-1 (2024).
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The Diversity Plan Requirement Exposes Contractors to Legal Risk

    13. The text of Sec.  970.5226-1 is drafted in vague, subjective 
terms that invite arbitrary application. Contractors are left to guess 
at the DOE's expectations, and contracting officers are given broad 
discretion to approve or disapprove plans based on their own policy 
preferences rather than on clear, objective standards.
    14. The clause requires contractors to submit a DEIA Plan that 
``include[s] innovative strategies for increasing opportunities to 
fully use the talents and capabilities of a diverse work force'' and 
that describes the contractor's approach to ``promoting diversity'' in 
a wide range of areas, including workforce practices, educational 
outreach, community involvement, subcontracting, economic development, 
and the prevention of profiling and discrimination.\23\ Yet the 
regulation nowhere explains what counts as a ``diverse work force,'' 
what it means to ``promot[e] diversity'' in these contexts, or what 
qualifies as an acceptable ``innovative strategy.''
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    \23\ Id.
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    15. This vagueness is particularly problematic because the subject 
matter of the clause lies close to areas regulated by federal civil-
rights statutes.\24\ By instructing contractors to devise ``innovative 
strategies'' to promote ``diversity'' in hiring, subcontracting, and 
economic-development activities, the clause creates pressure to adopt 
race- and identity-conscious initiatives that may exceed, or even 
conflict with, the contractors' obligations under federal law.\25\ 
Contractors who understand the clause as a signal to prioritize 
particular demographic characteristics in employment or subcontracting 
may find themselves navigating an untenable tension between perceived 
expectations of the DEIA Plan and their duty to adhere to statutes that 
require equal treatment without regard to protected characteristics.
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    \24\ See, e.g., Title VII of the Civil Rights Act of 1964, 42 
U.S.C. 2000e-2 (1964) (prohibiting employment discrimination); Title 
VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d (1964) 
(prohibiting discrimination under federally funded programs); 42 
U.S.C. 1981 (1866) (guaranteeing equal rights to make and enforce 
contracts).
    \25\ See id.
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Requested Action

    16. To promote equality of opportunity and meritocracy, the 
Department of Energy should initiate the process to rescind 48 CFR 
970.5226-1's requirement for contractors to create a Diversity Plan.

Conclusion

    17. The DOE must rescind 48 CFR 970.5226-1 to comply with current 
law and the President's agenda. The Diversity Plan requirement uses the 
procurement process to pressure contractors to adopt contested DEIA 
priorities, rather than simply ensuring that they can perform the work 
safely, effectively, and in compliance with neutral civil-rights and 
procurement laws. By layering vague, subjective DEIA criteria onto the 
contracting process, the clause injects uncertainty and politics into 
award and oversight decisions, distracting contractors from their core 
technical, safety, and mission-critical responsibilities. For these 
reasons, AFL respectfully requests that

[[Page 11498]]

the DOE initiate the process of removing the Diversity Plan for 
contractors from its rules, regulations, and guidance materials, and 
return to a neutral, statutorily grounded approach that serves all 
Americans equally.
    18. Please confirm receipt of this petition and advise on the 
timeline and process for the DOE's consideration. We stand ready to 
provide additional information or participate in any public comment 
process that may follow.

    Respectfully submitted,

/s/Alice Kass
America First Legal Foundation; 611 Pennsylvania Ave. SE #231, 
Washington, DC 20003.

[FR Doc. 2026-04687 Filed 3-9-26; 8:45 am]
BILLING CODE 6450-01-P


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