[Federal Register Volume 64, Number 163 (Tuesday, August 24, 1999)]
[Rules and Regulations]
[Pages 46111-46114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21896]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 64, No. 163 / Tuesday, August 24, 1999 /
Rules and Regulations
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DEPARTMENT OF ENERGY
Office of Energy Efficiency and Renewable Energy
10 CFR Part 420
[Docket No. EE-RM-96-402]
RIN 1904-AB01
State Energy Program
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy (DOE).
ACTION: Interim final rule and opportunity for public comment.
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SUMMARY: Today the Department of Energy (DOE or Department) is
publishing an interim final rule revising the regulations for its State
Energy Program. This rule provides for the possibility of certain
activities being funded under the Special Projects part of the program
that are not permitted under the formula grant part of the program. The
rule also provides for the specification of any Special Projects
funding limitations by the sector specific program offices providing
the Special Projects funding, and clarifies the applicability of
Subpart B to the formula grant part of the program and of Subpart C to
the Special Projects part of the program.
DATES: This rule becomes effective August 24, 1999. Written comments on
the interim final rule must be received by DOE no later than September
23, 1999, to ensure consideration.
ADDRESSES: Written comments (six copies and, if possible, a computer
disk) are to be submitted to: Thomas P. Stapp, U.S. Department of
Energy, Office of Building Technology, State and Community Programs,
EE-44, Docket Number EE-RM-96-402, 1000 Independence Avenue, SW,
Washington, DC 20585, (202) 586-2096.
Copies of the comments, as well as other parts of the record, will
be available for inspection between the hours of 9 a.m. and 4 p.m.,
Monday through Friday except Federal holidays, at the following
address: DOE Freedom of Information Reading Room, Department of Energy,
Room 1E-190, Forrestal Building, 1000 Independence Avenue, SW,
Washington, DC 20585, (202) 586-3142.
For more information concerning public participation in this
rulemaking proceeding, see Section IV, ``Opportunity for Public
Comment.''
FOR FURTHER INFORMATION CONTACT: Thomas P. Stapp, Office of Building
Technology, State and Community Programs, Department of Energy, Mail
Stop 5E-080, EE-44, Forrestal Building, 1000 Independence Avenue, SW,
Washington, DC 20585, (202) 586-2096.
SUPPLEMENTARY INFORMATION:
I. Introduction and Description of the Program
II. Rationale for Interim Final Rulemaking
III. The Revisions to the Rule
IV. Opportunity for Public Comment
V. Review Under Executive Order 12612
VI. Review Under Executive Order 12866
VII. Review Under Executive Order 12988
VIII. Review Under the Paperwork Reduction Act
IX. Review Under the National Environmental Policy Act
X. Review Under the Small Business Regulatory Enforcement Fairness
Act of 1996
XI. Review Under the Unfunded Mandate Reform Act of 1995
XII. Review Under the Regulatory Flexibility Act
XIII. The Catalog of Federal Domestic Assistance
I. Introduction and Description of the Program
On July 8, 1996, the Department published in the Federal Register
an interim final rule consolidating the State Energy Conservation
Program (SECP) and the Institutional Conservation Program (ICP) under
the name ``State Energy Program'' (SEP or program). 61 FR 35890. On May
14, 1997, the Department published in the Federal Register a final rule
for the program, incorporating revisions to the interim final rule
resulting from comments received. 62 FR 26726. The program provides
formula grants to States for a wide variety of energy efficiency and
renewable energy initiatives, and, in years when funding is available,
may also offer financial assistance for a number of State-oriented
competitively awarded Special Projects activities with funding
contributed by the Office of Energy Efficiency and Renewable Energy's
sector specific program offices. Special Projects have been funded in
every fiscal year since SEP was established in 1996. DOE expects the
Special Projects part of SEP to continue in future years.
Among the goals of the SEP Special Projects activities are to
assist States to: accelerate deployment of energy efficiency and
renewable energy technologies; facilitate the acceptance of emerging
and under utilized energy efficiency and renewable energy technologies;
and increase the responsiveness of Federally funded technology
development efforts to private sector needs.
When the SEP rule was revised in 1996 to provide for the
incorporation of the Special Projects activities, DOE envisioned that
States would receive the funding by means of amendments to their SEP
formula grants. While the Special Projects requirements are primarily
covered under subpart C of the rule, the expenditure prohibitions and
limitations specified under Sec. 420.18 of subpart B continued to be
worded so that the section was deemed to apply to both the formula
grants and the Special Projects amendments to those grants. For the
first two years of Special Projects (fiscal years 1996 and 1997), when
Special Projects funding was provided via the State SEP grant, that was
necessary.
However, starting in fiscal year 1998, Special Projects funding has
been provided to States by means of individual grants for each project,
separate from the SEP formula grants. DOE therefore believes that the
application of the formula grant expenditure prohibitions and
limitations to the Special Projects is no longer necessary, and it
reduces their potential flexibility. Interest has been expressed in
using Special Projects funding for end-use sector specific
infrastructure improvements and research and development projects, both
of which are precluded or limited under Sec. 420.18. DOE believes the
Special Projects should no longer be limited by Sec. 420.18 so that the
Special Projects funding approach will be of maximum
[[Page 46112]]
benefit to the end-use sectors providing the funding.
Therefore, Special Projects funding will henceforth be required to
meet only the limitations and prohibitions that apply to all Federal
financial assistance under 10 CFR part 600 and any that may apply to
the particular sources of funding used by the respective end-use
sectors, as specified under the annual Special Projects solicitation/
guidance. To dissociate the Special Projects from the prohibitions
under 420.18, DOE is revising the wording of that section so that it
applies only to subpart B of the rule, covering the SEP formula grants.
DOE is making similar technical revisions to other sections of the rule
to achieve consistency in the applicability of the various subparts of
the rule.
In addition, technical revisions are being made to change the
designations of Regional Support Offices to Regional Offices, and
Regional Support Office Directors to Regional Office Directors to
conform to the official changes made in these designations as of April
25, 1999.
II. Rationale for Interim Final Rulemaking
In ordinary circumstances, DOE provides an opportunity for public
comment prior to making significant final changes in the rules for
financial assistance programs. Similarly, DOE ordinarily provides for
an effective date 30 days or more following the date of publication so
that affected entities have an opportunity to learn of changes and
prepare to comply. However, the 1999 Special Projects process is now
underway, and DOE would like to maximize the range of projects being
considered for funding by removing the formula grant prohibitions and
limitations from the Special Projects at this time. Removing these
special prohibitions and limitations will provide immediate flexibility
and will reduce burdens on State governments consistent with
government-wide uniform administrative requirements applicable to
grants to States under 10 CFR part 600. There is no reason to
anticipate State objections would be forthcoming if DOE were to propose
removal for public comment. Moreover, it is unlikely that any member of
the public could persuasively object to this regulatory change. On the
basis of the foregoing, DOE has decided to waive prior notice and
opportunity for public comment because issuance of a Notice of Proposed
Rulemaking is impracticable and contrary to the public interest. For
the same reasons, DOE is making today's interim final rule effective
immediately.
III. The Revisions to the Rule
Part 420 (throughout)
The designations of Regional Support Office and Regional Support
Office Director are changed to Regional Office and Regional Office
Director, respectively, throughout the rule to conform to the official
redesignations made effective on April 25, 1999.
Section 420.12 State Matching Contribution
To clarify that this section applies only to the SEP formula
grants, the wording of paragraph (c) is changed so that the reference
to ``this part'' becomes ``this subpart.'' Whereas ``this part'' refers
to the entire 10 CFR part 420, ``this subpart,'' in this context,
refers only to subpart B of 10 CFR part 420, covering the SEP formula
grants. Cost sharing requirements for Special Projects grants are
covered under subpart C.
Section 420.13 Annual State Applications and Amendments to State Plans
To make the wording consistent with changes being made elsewhere in
the rule, the wording of paragraphs (a), (b)(3) and (b)(7) is changed
so that the references to ``subpart B of this part'' become ``this
subpart.'' To clarify that this section applies only to the SEP formula
grants, the wording of paragraph (b)(7) is changed so that the
reference to ``this part'' becomes ``this subpart,'' as further
explained under 420.12 above. The applications referred to under 420.13
are for the SEP formula grants. Applications for Special Projects
grants are covered under subpart C.
Section 420.14 Review and Approval of Annual State Applications and
Amendments to State Plans
To make the wording consistent with changes being made elsewhere in
the rule, the wording of paragraph (a) is changed so that the reference
to ``subpart B of this part'' becomes ``this subpart.'' To clarify that
this section applies only to the SEP formula grants, the wording of
paragraphs (a), (b)(1)(i), (b)(2), and (b)(3) is changed so that the
references to ``this part'' become ``subparts A and B of this part.''
Whereas ``this part'' refers to the entire 10 CFR part 420, the
applications and State plans covered under 420.14 need only meet the
requirements of subparts A and B. Subpart C covers applications for
Special Projects.
Section 420.17 Optional Elements of State Energy Program Plans
To clarify that the services referenced under paragraph (b)(3) of
this section are established under the SEP formula grants, the wording
of that paragraph is changed so that the reference to ``this part''
becomes ``this subpart,'' referring to subpart B covering the formula
grants.
Section 420.18 Expenditure Prohibitions and Limitations
To restrict the prohibitions and limitations specified under this
section to the formula grants part of SEP, the wording of paragraph (a)
is changed so that the reference to ``this part'' becomes ``this
subpart'' as further explained under the revision to 420.12 above.
Expenditure limitations that might apply to Special Projects grants are
covered under new Sec. 420.38 under Subpart C. In addition, the
references in paragraphs (b), (d) and (e) to ``this part'' are changed
to ``this subpart'' to clarify that the activities referred to are
those undertaken pursuant to the SEP formula grants covered by subpart
B. To clarify that the activities referred to under paragraphs (e)(3),
(e)(5) and (f) are those introduced under paragraph (e), the wording of
those paragraphs is changed so that the references to ``this
paragraph'' become ``paragraph (e) of this section.''
Section 420.19 Administrative Review
To clarify that the administrative review referred to under this
section applies only to the formula grants, wording is added to
paragraph (e) specifying that it refers to applications for financial
assistance ``under this subpart.'' Paragraph (i) is changed so that
reference to ``this part'' becomes ``this subpart'' to make clear that
the State plans referred to are those for the SEP formula grants
covered under subpart B.
Section 420.33 Application Requirements
To clarify that the applications referred to under this section are
for SEP Special Projects grants, the wording of paragraph (d) is
changed so that the reference to ``this part'' becomes ``this
subpart'', referring to subpart C which covers Special Projects grants.
Section 420.35 Application Evaluation
To clarify that the information in Special Projects applications
must meet the requirements under subpart C of the rule, the wording in
paragraph (a) is changed so that the reference to ``this part'' becomes
``this subpart.''
[[Page 46113]]
New Section 420.38 Special Projects Expenditure Prohibitions and
Limitations
This section is being added to provide that expenditure
prohibitions and limitations for Special Projects will be any general
prohibitions and limitations under 10 CFR part 600 together with any
specific prohibitions and limitations that may be required by the
respective end-use sectors providing Special Projects funding, as
specified each year by category in the Special Projects solicitation/
guidance.
IV. Opportunity for Public Comment
Written Comment Procedures
Interested persons are invited to participate in this rulemaking by
submitting data, views or arguments with respect to the matters set
forth in this notice.
Comments (6 copies and, if possible, a computer disk) should be
identified on the outside of the envelope, and on the documents
themselves, with the designation: ``State Energy Program, Interim Final
Rule, Docket Number EE-RM-96-402.'' In the event any person wishing to
submit a written comment cannot provide six copies, alternative
arrangements can be made in advance by calling (202) 586-2096.
Any person submitting information which that person believes to be
confidential, and which may be exempt by law from public disclosure,
should submit one complete copy, as well as two copies from which the
information claimed to be confidential has been deleted. DOE shall make
a determination of any such claim as set forth in 10 CFR 1004.11 (53 FR
15661, May 3, 1988).
V. Review Under Executive Order 12612
Executive Order 12612, 52 FR 41685 (October 30, 1987) requires that
regulations, legislation and any other policy action be reviewed for
any substantial direct effects on States, on the relationship between
the National Government and the States, or on the distribution of power
among various levels of government. If there are sufficient substantial
direct effects, the Executive Order requires preparation of a
federalism assessment to be used in decisions by senior policy-makers
in promulgating or implementing the regulation.
Today's regulatory amendments will not have a substantial direct
effect on the traditional rights and prerogatives of States in
relationship to the Federal Government. Preparation of a federalism
assessment is therefore unnecessary.
VI. Review Under Executive Order 12866
Today's 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 the Executive Order by the
Office of Information and Regulatory Affairs (OIRA).
VII. Review Under Executive Order 12988
Section 3 of Executive Order 12988, 61 FR 4729 (February 7, 1996),
instructs each agency to adhere to certain requirements in promulgating
new regulations. These requirements, set forth in section 3(a) and (b),
include eliminating drafting errors and needless ambiguity, drafting
the regulations to minimize litigation, providing clear and certain
legal standards for affected legal conduct, and promoting
simplification and burden reduction. Agencies are also instructed to
make every reasonable effort to ensure that the regulation describes
any administrative proceeding to be available prior to judicial review
and any provisions for the exhaustion of administrative remedies. The
Department has determined that today's regulatory action meets the
requirements of section 3(a) and (b) of Executive Order 12988.
VIII. Review Under the Paperwork Reduction Act
No new information collection or record keeping requirements are
imposed on the public by today's rules.
IX. Review Under the National Environmental Policy Act
A programmatic environmental assessment has been prepared covering
the grant program under the interim final regulations published today
which was sent to the States for comment on March 27, 1996. No comments
were received by the end of the 14-day comment period. This
programmatic environmental assessment resulted in a finding of no
significant impact (FONSI). A FONSI was issued on June 7, 1996. The
documents relating to this programmatic environmental assessment are
available in the DOE Freedom of Information Reading Room, United States
Department of Energy, Room 1E-190, Forrestal Building, 1000
Independence Avenue, SW, Washington, DC 20585, (202) 586-3142.
X. Review Under the Small Business Regulatory Enforcement Fairness
Act of 1996
The interim final regulations published today are subject to the
Congressional notification requirements of the Small Business
Regulatory Enforcement Fairness Act of 1996 (Act), 5 U.S.C. 801. DOE
will report to Congress on the promulgation of the interim final
regulations prior to the effective date set forth at the beginning of
this notice.
XI. Review Under the Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) places a
variety of review and consultative obligations on Federal agencies
proposing regulatory actions for Federal intergovernmental mandates.
Today's rule does not involve such a mandate because the Unfunded
Mandates Reform Act excludes from the definition of ``Federal
intergovernmental mandate'' provisions in a regulation that would
impose conditions incident to a financial assistance program (not
involving an entitlement) or a duty arising from participation in a
voluntary Federal program 2 U.S.C. 658(5). This program is a standard
non-entitlement financial assistance program and States are not
obligated to participate in it.
XII. Review Under the Regulatory Flexibility Act
There is no need to prepare a final regulatory flexibility analysis
of today's interim final regulations under the Regulatory Flexibility
Act, 5 U.S.C 601 et seq., because they are not subject to a legal
requirement for a general notice of proposed rulemaking.
XIII. The Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance number for the State
Energy Program is 81.041. The Catalog of Federal Domestic Assistance
number for the State Energy Program Special Projects is 81.119.
List of Subjects in 10 CFR Part 420
Energy conservation, Grant programs--energy, Reporting and
recordkeeping requirements, Technical Assistance, Incorporation by
reference.
Issued in Washington, DC, on July 20, 1999.
Dan W. Reicher,
Assistant Secretary, Energy Efficiency and Renewable Energy.
For the reasons set forth in the preamble, Chapter II of Title 10,
Code of
[[Page 46114]]
Federal Regulations is amended as follows:
PART 420--[AMENDED]
1. The authority citation for part 420 continues to read as
follows:
Authority: Title III, part D, as amended, of the Energy Policy
and Conservation Act (42 U.S.C. 6321 et seq.); Department of Energy
Organization Act (42 U.S.C. 7101 et seq.)
PART 420--[AMENDED]
2. In part 420, revise all references to ``Regional Support
Office'' to read ``Regional Office.''
3. In part 420, revise all references to ``Regional Support Office
Director'' to read ``Regional Office Director.''
Secs. 420.12, 420.13, 420.17, 420.18, 420.19, 420.33, and
420.35 [Amended]
4. In subpart B, revise all references to ``this part'' to read
``this subpart'' in the following sections:
a. Sec. 420.12(c).
b. Sec. 420.13(b)(7) (second occurrence).
c. Sec. 420.17(b)(3).
d. Sec. 420.18(a).
e. Sec. 420.18(b).
f. Sec. 420.18(d) (two occurrences).
g. Sec. 420.18(e).
h. Sec. 420.19(i).
5. In subpart C, revise the references to ``this part'' to read
``this subpart'' in the following sections:
a. Sec. 420.33(d).
b. Sec. 420.35(a).
Secs. 420.13, 420.14 [Amended]
6. Revise all references to ``subpart B of this part'' to read
``this subpart'' in the following sections:.
a. Sec. 420.13(a).
b. Sec. 420.13(b)(3).
c. Sec. 420.13(b)(7).
d. Sec. 420.14(a).
Sec. 420.14 [Amended]
7. In section 420.14, revise all references to ``this part'' to
read ``subparts A and B of this part'' in the following sections:
a. Sec. 420.14(a).
b. Sec. 420.14(b)(l)(i).
c. Sec. 420.14(b)(2).
d. Sec. 420.14(b)(3).
Sec. 420.18 [Amended]
8. In section 420.18, revise the words ``this paragraph'' to read
``paragraph (e) of this section'' in the following sections:
a. Sec. 420.18(e)(3).
b. Sec. 420.18(e)(5).
c. Sec. 420.18(f).
Sec. 420.19 [Amended]
9. In 420.19, add the words ``under this subpart'' after the words
``financial assistance'' in the following paragraph:
Sec. 420.19(e).
10. A new section 420.38 is added under subpart C, to read as
follows:
Sec. 420.38 Special projects expenditure prohibitions and limitations.
(a) Expenditures under the special projects are subject to 10 CFR
part 600 and to any prohibitions and limitations required by the DOE
programs that are providing the special projects funding.
(b) DOE must state any expenditure prohibitions or limitations
specific to a particular category of special projects in the annual SEP
special projects solicitation/guidance.
[FR Doc. 99-21896 Filed 8-23-99; 8:45 am]
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