profit organizations; technical amendment,

[Federal Register: June 2, 1998 (Volume 63, Number 105)]

[Rules and Regulations]

[Page 29941-29942]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr02jn98-3]

DEPARTMENT OF ENERGY

10 CFR Part 600

RIN 1991-AB4I

Assistance Regulations: Technical Amendment

AGENCY: Department of Energy (DOE).

ACTION: Final rule; Technical amendment.

SUMMARY: The Department of Energy is amending the Department of Energy Assistance Regulations, 10 CFR Part 600, to remove provisions dealing with the audit of State and local government recipients of financial assistance that were rendered obsolete by a common rule published on August 29, 1997 (62 FR 45937). The common rule, which DOE incorporated through an amendment to Part 600, implements the Single Audit Act Amendments of 1996 and subsequent revisions to the Office of Management and Budget (OMB) Circular A-133, ``Audits of States, Local Governments, and Non-Profit Organizations.''

EFFECTIVE DATE: This final rule will be effective June 2, 1998.

FOR FURTHER INFORMATION CONTACT: Richard Langston, Department of Energy, Office of Procurement and Assistance Policy, HR-51, 1000 Independence Ave. SW., Washington, D.C. 20585-0705, (202) 586-8247.

SUPPLEMENTARY INFORMATION: I. Explanation of Revisions. II. Procedural Requirements.

1. Review Under Executive Order 12612.

2. Review Under Executive Order 12866.

3. Review Under Executive Order 12988.

4. Review Under the National Environmental Policy Act.

5. Review Under the Paperwork Reduction Act.

6. Review Under the Regulatory Flexibility Act.

7. Review Under the Small Business Regulatory Enforcement Fairness Act.

8. Review Under the Unfunded Mandates Act.

   1. Explanation of Revisions

      The Department of Energy Assistance Regulations, 10 CFR part 600, Subpart E--Audits of State and Local Governments, implemented the Single Audit Act of 1984 and OMB Circular A-128, Single Audits of State and Local Governments. The Single Audit Act Amendments of 1996 (Pub. L. 104-156, 110 Stat. 1396) and the June 24, 1997, revision of OMB Circular A-133, ``Audits of States, Local Governments, and Non-Profit Organizations,'' (62 FR 35278), required agencies to adopt the standards in revised Circular A-133 by August 29, 1997, so that they would apply to audits of fiscal years beginning after June 30, 1996. Agencies, including DOE, promulgated a common rule on August 29, 1997 (62 FR 45937) to codify the new requirements. DOE accomplished this, for state and local governments, by amending 10 CFR 600.226 (Subpart C--Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments). As a consequence of these changes, existing Subpart E was rendered obsolete. This final rule removes 10 CFR part 600, Subpart E, from the Code of Federal Regulations.

   2. Procedural Requirements

1. Review Under Executive Order 12612

   Executive Order 12612, entitled ``Federalism,'' 52 FR 41685 (October 30,1987), requires that regulations, rules, legislation, and any other policy actions be reviewed for any substantial direct effects on States, on the relationship between the Federal Government and the States, or in the distribution of power and responsibilities among various levels of government. If there are sufficient substantial direct effects, then the Executive Order requires preparation of a federalism assessment to be used in all decisions involved in promulgating and implementing a policy action. DOE has determined that this rule will not have a substantial direct effect on the institutional interests or traditional functions of States.

2. Review Under Executive Order 12866

   This regulatory action has been determined not to be a ``significant regulatory action'' under Executive Order 12866, ``Regulatory Planning and Review,'' 58 FR 51735 (October 4,1993). Accordingly, this action was not subject to review, under that Executive Order, by the Office of Information and Regulatory Affairs of OMB.

3. 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)

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   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 right 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, the regulations meet the relevant standards of Executive Order 12988.

4. Review Under the National Environmental Policy Act

   Pursuant to the Council on Environmental Quality Regulations (40 CFR 1500-1508), the Department has established guidelines for its compliance with the provisions of the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321, et seq.). Pursuant to Appendix A of Subpart D of 10 CFR 1021, National Environmental Policy Act Implementing Procedures (Categorical Exclusion A6), DOE has determined that this rule is categorically excluded from the need to prepare an environmental impact statement or environmental assessment because it is strictly procedural.

5. Review Under the Paperwork Reduction Act

   No new information collection or record keeping requirements are imposed by this rule. Accordingly, no OMB clearance is required under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.).

6. Review Under the Regulatory Flexibility Act

   The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., directs agencies to prepare a regulatory flexibility analysis whenever an agency is required to publish a general notice of proposed rulemaking for a rule. The Department is not required to publish a general notice of proposed rulemaking for this technical amendment of 10 CFR Part 600, which is a matter relating to financial assistance or grants, 5 U.S.C. 553(a)(2). Therefore, DOE has not prepared a regulatory flexibility analysis for this final rule.

7. Review Under Small Business Regulatory Enforcement Fairness Act of 1996

   As required by 5 U.S.C. 801, DOE will report to Congress promulgation of the rule prior to 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(3).

8. Review Under the Unfunded Mandates Reform Act of 1995

   The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally requires a Federal agency to perform a detailed assessment of costs and benefits of any rule imposing a Federal mandate with costs to State, local or tribal governments, or to the private sector, of $100 million or more. The Department has determined that this rulemaking does not impose a Federal mandate on State, local, or tribal governments or on the private sector.

   List of Subjects in 10 CFR Part 600

   Accounting, Administrative practice and procedure, Grant programs, Loan programs, Penalties, Reporting and recordkeeping requirements.

   Issued in Washington, D.C. on May 27, 1998. Richard H. Hopf, Deputy Assistant Secretary for Procurement and Assistance Management.

   For the reasons set forth in the preamble, Part 600 of Title 10 of the Code of Federal Regulations, is amended as set forth below.

   PART 600--[AMENDED]

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

      Authority: 42 U.S.C. 7254, 7256, 13525; 31 U.S.C. 6301-6308, unless otherwise noted.

      Subpart E--Audits of State and Local Governments

      Subpart E--[Removed and Reserved]

   2. Subpart E, consisting of Sections 600.400 through 600.417, is removed and reserved.

      [FR Doc. 98-14530Filed6-1-98; 8:45 am]

      BILLING CODE 6450-01-P