Rule2026-07165
Rescinding the Grant Programs for Schools and Hospitals and Buildings Owned by Units of Local Government and Public Care Institutions Regulations
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
April 14, 2026
Effective
May 14, 2026
Issuing agencies
Energy Department
Abstract
The Department of Energy (DOE) publishes a final rule to eliminate the subject regulations due to their non-applicability to operating DOE programs. In 1996, DOE consolidated legacy programs into the State Energy Program and determined all programming would be regulated through a different regulatory framework, leaving the regulations at this part without utility. Now, these regulations are a legacy of an ancestral program and remain in place despite decades without Congress funding the underlying statutory program. This final rule has no impact on stakeholders and further streamlines the State Energy Program by eliminating extraneous and derelict regulations, and does not directly reduce availability of financial assistance.
Full Text
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<title>Federal Register, Volume 91 Issue 71 (Tuesday, April 14, 2026)</title>
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[Federal Register Volume 91, Number 71 (Tuesday, April 14, 2026)]
[Rules and Regulations]
[Pages 19063-19065]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07165]
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DEPARTMENT OF ENERGY
10 CFR Part 455
[DOE-HQ-2025-0022]
RIN 1930-AA02
Rescinding the Grant Programs for Schools and Hospitals and
Buildings Owned by Units of Local Government and Public Care
Institutions Regulations
AGENCY: Office of State and Community Energy Programs, U. S. Department
of Energy.
ACTION: Final rule.
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SUMMARY: The Department of Energy (DOE) publishes a final rule to
eliminate the subject regulations due to their non-applicability to
operating DOE programs. In 1996, DOE consolidated legacy programs into
the State Energy Program and determined all programming would be
regulated through a different regulatory framework, leaving the
regulations at this part without utility. Now, these regulations are a
legacy of an ancestral program and remain in place despite decades
without Congress funding the underlying statutory program. This final
rule has no impact on stakeholders and further streamlines the State
Energy Program by eliminating extraneous and derelict regulations, and
does not directly reduce availability of financial assistance.
DATES: This rule is effective on May 14, 2026.
FOR FURTHER INFORMATION CONTACT: Mr. Michael Li, U.S. Department of
Energy, Office of State and Community Energy Programs, 1000
Independence Avenue SW, Washington, DC 20585; (240) 204-3026 or
<a href="/cdn-cgi/l/email-protection#24494d474c4541480a484d644c550a404b410a434b52"><span class="__cf_email__" data-cfemail="771a1e141f16121b591b1e371f065913181259101801">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. General Discussion
On May 16, 2025, the U.S. Department of Energy (DOE) published a
proposed rule to rescind the Grant Programs for Schools and Hospitals
and Buildings Owned by Units of Local Government and Public Care
Institutions regulations at 10 CFR part 455. 90 FR 20945; (May 2025
proposal). In the proposal, DOE explained that the regulations were
established to implement the Institutional Conservation Program (ICP),
which provided grants to various institutions to fund detailed energy
audits, called technical assistance programs, and energy conservation
measures. The ICP and its regulations were authorized under Title III
of the Energy Policy and Conservation Act, as amended, 42 U.S.C. 6371
et seq.
As discussed in the May 2025 proposal, the ICP was consolidated in
1996 with the State Energy Conservation Program (SECP) to establish the
State Energy Program (SEP), which provides formula grants using SECP's
amended regulations at 10 CFR part 420. Through that consolidation
process, DOE did not eliminate ICP's regulations at 10 CFR part 455 and
instead directed states wishing to undertake activities previously
administered through ICP to apply to SEP and comply with the newly
amended regulations at 10 CFR part 420. 90 FR 20945, 20945.
This final rule rescinds those regulations that remained in place
even though the supporting statutory authority for the ICP has gone
unfunded for many years and the regulations are no longer in use.
II. Response to Comments
DOE received three comments in response to the May 2025 proposal.
Table II.1--List of Commenters From the May 2025 Proposed Rule
----------------------------------------------------------------------------------------------------------------
Reference in this Final Comment No. in
Commenter Rule the Docket Commenter type
----------------------------------------------------------------------------------------------------------------
Anonymous.............................. Anonymous................ 2 Individual.
Misty Duvall........................... Duvall................... 3 Individual.
Christina Sobczak...................... Sobczak.................. 4 Individual.
----------------------------------------------------------------------------------------------------------------
Anonymous commenter and Christina Sobczak do not support rescinding
10 CFR part 455 on the basis that Federal grant programs are beneficial
to local governments, schools, and public care institutions. Sobczak
commented that 30 percent of schools have poor energy efficiency and
cited firsthand experience as to the importance of children having
well-maintained schools. Misty Duvall advocates for protecting against
impairments to institutions currently using the regulations in 10 CFR
part 455.
In response, DOE notes that all comments received reflect a
misunderstanding of the consequences of the proposed rule. Commenters
advocated for funding opportunities for energy efficiency measures in
schools, hospitals, and buildings of local units of government and
discussed the benefit of such measures to children, patients, and
citizens, which will not be impacted by the recission of 10 CFR part
455. This is precisely why Congress has regularly appropriated the
State Energy Program (SEP), which utilizes the regulations in 10 CFR
part 420 to accomplish these and other energy efficiency measures in
public buildings. The purpose of this final rule is to eliminate
extraneous and derelict regulations that have no bearing on an existing
program.
III. Conclusion
For the reasons discussed in the preceding sections of this
document, DOE is finalizing this final rule.
IV. Procedural Issues and Regulatory Review
A. Review Under Executive Order 12866
Section 6(a) of Executive Order (``E.O.'') 12866, ``Regulatory
Planning and Review,'' 58 FR 51735 (Oct. 4, 1993), requires agencies to
submit ``significant regulatory actions'' to the Office of Information
and Regulatory Affairs (``OIRA'') in the Office of Management and
Budget (``OMB'') for review. OIRA has determined that this
[[Page 19064]]
regulatory action does not constitute a ``significant regulatory
action'' under section 3(f) of E.O. 12866. Accordingly, this action was
not submitted to OIRA for review under E.O. 12866.
B. Review Under Additional Executive Orders and Presidential Memoranda
DOE has examined this final rule 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.'' While this final rule does not result in cost savings
per E.O. 14192, DOE considers this a deregulatory action because it
removes obsolete regulations.
C. Review Under 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 final rule under the provisions of the Regulatory
Flexibility Act and the policies and procedures published on February
19, 2003. This final rule will not impact small businesses/entities as
there is no active Financial Assistance program subject to 10 CFR part
455. Therefore, DOE concludes that the impacts of the rule would not
have a ``significant economic impact on a substantial number of small
entities,'' and that the preparation of an FRFA 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).
D. Review Under Paperwork Reduction Act
This final rule imposes no new information collection requirements
subject to the Paperwork Reduction Act and OMB clearance is not
required. (44 U.S.C. 3501 et seq.)
E. Review Under National Environmental Policy Act of 1969
Pursuant to the National Environmental Policy Act (NEPA) of 1969
(42 U.S.C. 4321 et seq.), DOE has analyzed this action in accordance
with NEPA, as amended, DOE's NEPA implementing regulations (set forth
in 10 CFR part 1021), and DOE's NEPA implementing procedures (published
outside the Code of Federal Regulations on June 30, 2025 (Available at:
<a href="http://www.energy.gov/nepa/articles/doe-nepa-implementing-procedures-june-2025">www.energy.gov/nepa/articles/doe-nepa-implementing-procedures-june-2025</a>)). On July 3, 2025, DOE published an interim final rule in the
Federal Register which revised 10 CFR part 1021 to contain only
administrative and routine actions excepted from NEPA review in
appendix A, its existing categorical exclusions in appendix B, related
requirements, and a provision for emergency circumstances. 90 FR 29676.
DOE notes that appendix A in 10 CFR part 1021 (formerly categorical
exclusions) are now administrative and routine actions that do not
require NEPA review.
DOE is rescinding the regulations at 10 CFR part 455 because these
regulations are no longer in use; no new appropriations have been
directed/provided to ICP since 1998 as new funding has been directed to
SEP (the successor program) since that time. As such, DOE has
determined that this rulemaking is strictly procedural and, therefore,
is an administrative and routine action and is not a major Federal
action significantly affecting the quality of the human environment
within the meaning of NEPA and no further environmental review is
needed. For more information, please see appendix A of 10 CFR part 1021
(``A6, Procedural rulemakings'') and appendix A of DOE's NEPA
implementing procedures, A6, Procedural rulemakings (June 30, 2025).''
F. Review Under Executive Order 13132
Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 4,
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
final rule 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. Therefore, no
further action is required by Executive Order 13132.
G. Review Under Executive Order 12988
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; and (3) provide a clear legal
standard for affected conduct rather than a general standard and
promote simplification and burden reduction. With regard to the review
required by section 3(a), 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 Attorney
General. Section 3(c) of Executive Order 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 final rule meets the relevant standards of Executive Order 12988.
[[Page 19065]]
H. Review Under Unfunded Mandates Reform Act of 1995
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 final rule according to UMRA and its statement of
policy and determined that the final rule 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.
I. Review Under 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 final rule 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.
J. 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 final rule would not result in
any takings that might require compensation under the Fifth Amendment
to the U.S. Constitution.
K. Review Under 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="http://www.energy.gov/cio/department-energy-information-quality-guidelines">www.energy.gov/cio/department-energy-information-quality-guidelines</a>. DOE has reviewed
this final rule under the OMB and DOE guidelines and has concluded that
it is consistent with applicable policies in those guidelines.
L. Review Under Executive Order 13211
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 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 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 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 final rule 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.
M. Congressional Notification
As required by 5 U.S.C. 801, DOE will submit to Congress a report
regarding the issuance of this final rule prior to the effective date
set forth at the outset of this final rule. 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).
V. Approval of the Office of the Secretary
The Secretary of Energy has approved publication of final rule.
List of Subjects in 10 CFR Part 455
Administrative practice and procedure, Buildings and facilities,
Community facilities, Energy conservation, Grant programs--energy,
Health facilities, Hospitals, Reporting and recordkeeping requirements,
Schools, Solar energy, and Technical assistance.
Signing Authority
This document of the Department of Energy was signed on February 2,
2026, by Michael Li, Director, Office of State and Community Energy
Programs, 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 April 10, 2026.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
0
For the reasons set forth in the preamble, under the authority of 42
U.S.C. 6371 et seq., and 42 U.S.C. 7101 et seq., DOE is removing and
reserving 10 CFR part 455.
[FR Doc. 2026-07165 Filed 4-13-26; 8:45 am]
BILLING CODE 6450-01-P
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