Financial Assistance Interior Regulation, 57529-57532 [2021-22632]

Download as PDF 57529 Rules and Regulations Federal Register Vol. 86, No. 198 Monday, October 18, 2021 The Department of the Interior (DOI) is publishing this final rule to align its regulations with new regulatory citations and requirements adopted by the Office of Management and Budget (OMB). On August 13, 2020, the OMB published a revision to their regulations regarding Guidance for Grants and Agreements. The revision was an administrative simplification and did not make any substantive changes to their regulations regarding policies and procedures. DOI now codifies these changes in its financial assistance regulations. DATES: This final rule is effective on October 18, 2021. FOR FURTHER INFORMATION CONTACT: Cara Whitehead, Director, Office of Grants Management, Department of the Interior, 1849 C Street NW, Mail Stop 3023 MIB, Washington, DC 20240; email Cara_Whitehead@ios.doi.gov; telephone 202–208–3100. SUPPLEMENTARY INFORMATION: administrative requirements, cost principles, and audit requirements for Federal awards, including grants and cooperative agreements. Implementation of the Uniform Guidance became effective on December 26, 2014 (79 FR 75867, December 19, 2014) and must be reviewed every five years in accordance with 2 CFR 200.109. On August 13, 2020 (85 FR 49506 as amended on February 22, 2021, in 86 FR 10439), the Office of Management and Budget (OMB) published a revision to sections of title 2 of the Code of Federal Regulations, Guidance for Grants and Agreements. The rule was an administrative simplification and did not make any substantive changes to 2 CFR part 200 policies and procedures. DOI now codifies these changes in its financial assistance regulations located in 2 CFR part 1402. This rule helps ensure that financial assistance provided by the DOI is administered in full compliance with applicable laws, regulations, policies and best practices to ensure the American people get the most value from the money the DOI spends on financial assistance. The Administrative Procedure Act (APA) specifically provides exceptions to its notice and comment rulemaking procedures when an agency finds there is good cause to dispense with them, and incorporates the finding, and a brief statement of reasons therefore, in the rules issued (5 U.S.C. 553(b)(3)(B)). Good cause exists when an agency determines that notice and public comment procedures are impractical, unnecessary, or contrary to the public interest. The amendments made in this final rule align DOI regulations with OMB’s regulations. OMB’s rule had a 60-day comment period and was determined to be not significant under Executive Order 12866. This final rule will be effective upon publication because it is unnecessary to further delay conforming DOI’s regulations to OMB’s regulations. I. Background II. Section-by-Section Analysis On December 26, 2013, OMB published its Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (referred to as the ‘‘Uniform Guidance,’’ 78 FR 78590). The OMB Uniform Guidance, 2 CFR part 200, provided a government-wide framework for Federal awards management and streamlined DOI is revising its Financial Assistance Interior Regulation at 2 CFR part 1402 for conformity with OMB’s recent revisions to title 2. Specifically, DOI is correcting 2 CFR part 1402 to align with the OMB updates to the regulatory citations in the Uniform Guidance and new regulatory requirements. This section-by-section This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. DEPARTMENT OF THE INTERIOR Office of the Secretary 2 CFR Part 1402 [DOI–2020–0020; 201D0102DM, DS62600000, DLSN 00000.000000, DX62601] RIN 1090–AB23 Financial Assistance Interior Regulation Office of the Secretary, Interior. ACTION: Final rule; technical amendments. AGENCY: jspears on DSK121TN23PROD with RULES1 SUMMARY: VerDate Sep<11>2014 16:35 Oct 15, 2021 Jkt 256001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 analysis describes the changes to the regulatory text in numerical order. A. Section 4 Uniform Guidance Definition Citation for Foreign Entity In § 1402.4, DOI removes ‘‘2 CFR 200.46 and 200.47’’ and adds in its place ‘‘2 CFR 200.1’’. B. Section 6 Uniform Guidance Definition Citation for Real Property In § 1402.6, DOI removes ‘‘2 CFR 200.85’’ and adds in its place ‘‘2 CFR 200.1’’. C. Section 112(e) Uniform Guidance Citation for Remedies for Noncompliance In § 1402.112(e), DOI removes ‘‘2 CFR 200.338’’ and adds in its place ‘‘2 CFR 200.339’’. D. Section 206(b) Uniform Guidance Citation for Information Contained in a Federal Award In § 1402.206(b), DOI removes ‘‘2 CFR 200.210’’ and adds in its place ‘‘2 CFR 200.211’’. E. Section 207 Uniform Guidance New Requirement for Never Contract With the Enemy In § 1402.207, DOI adds the new requirement for Never Contract with the Enemy. This revision reflects OMB’s changes made to 2 CFR part 200 on August 13, 2020. The Office of Management and Budget (OMB) added 2 CFR part 183, which contains a new requirement to Never Contract with the Enemy, which applies only to grants and cooperative agreements that exceed $50,000 and are performed outside the United States. In addition, this includes U.S. territories, to a person or entity that is actively opposing the United States or coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities. F. Sections 207 Uniform Guidance New Requirement for Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment In § 1402.207, DOI adds the new requirement for Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment. This revision reflects amendments made to 2 CFR 200 that became effective on August 13, 2020. In addition, OMB added a new section, 2 CFR 200.216, E:\FR\FM\18OCR1.SGM 18OCR1 57530 Federal Register / Vol. 86, No. 198 / Monday, October 18, 2021 / Rules and Regulations Prohibition on certain telecommunication and video surveillance services or equipment, which prohibits Federal award recipients from using loan or grant funds to enter into contracts with entities that use covered telecommunications equipment or services. I. Section 300 Uniform Guidance New Requirement for Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment G. Section 207(a) Standard Award Terms and Conditions That Always Apply to For-Profit Entities In § 1402.207(a)(12), DOI adds ‘‘all applicable Executive orders,’’ which applies to all current directives that may impact for-profit entities as well as any future directives. This amendment aligns DOI’s regulations with OMB’s regulatory guidance in 2 CFR part 200 to support domestic preferences encouraging Federal award recipients, to the extent permitted by law, to maximize the use of goods, products, and materials produced in the United States when procuring goods and services under Federal awards. OMB’s guidance included domestic policy directives as expressed in Executive Order 13788 of April 18, 2017 (Buy American and Hire American) and Executive Order 13858 of January 21, 2019 (Executive Order on Strengthening Buy American Preferences for Infrastructure Projects), which superseded Executive Order 14005 (Ensuring the Future Is Made in all of America by all of America’s Workers). This revision in DOI’s regulations will reflect the current OMB guidance and also apply to any future directives issued. jspears on DSK121TN23PROD with RULES1 H. Section 300 Uniform Guidance New Requirement for Never Contract With the Enemy In § 1402.300, DOI adds the new requirement for Never Contract with the Enemy. This revision reflects OMB’s changes made to 2 CFR part 200 on August 13, 2020. The Office of Management and Budget (OMB) added 2 CFR part 183, which contains a new requirement to Never Contract with the Enemy, which applies only to grants and cooperative agreements that exceed $50,000 and are performed outside the United States. In addition, this includes U.S. territories, to a person or entity that is actively opposing the United States or coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities. VerDate Sep<11>2014 16:35 Oct 15, 2021 Jkt 256001 In § 1402.300, DOI adds the new requirement for Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment. This revision reflects amendments made to 2 CFR part 200 that became effective on August 13, 2020. In addition, OMB added a new section, 2 CFR 200.216, Prohibition on certain telecommunication and video surveillance services or equipment, which prohibits Federal award recipients from using loan or grant funds to enter into contracts with entities that use covered telecommunications equipment or services. J. Section 300(e) Award Requirements for Foreign Entities In § 1402.300(e)(6), DOI removes ‘‘Public Law 113–235 (128 Stat. 2391, Dec. 16, 2014)’’ and adds ‘‘48 CFR 3.909–2(a).’’ This revision changes the citation from the Public Law to the CFR now that this law has been codified in the CFR. III. Required Determinations A. Regulatory Planning and Review (Executive Orders 12866 and 13563) Executive Order (E.O.) 12866 provides that the OMB’s Office of Information and Regulatory Affairs will review all significant rules. The Office of Information and Regulatory Affairs has determined that this rule is not significant. DOI is publishing this final rule to align its regulations with new regulatory citations and requirements adopted by OMB. Executive Order 13563 reaffirms the principles of E.O. 12866, calling for improvements in the nation’s regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory objectives. E.O. 13563 directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public, where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this final rule in a manner consistent with these requirements. PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 B. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) (5 U.S.C. 601–612) applies to rules that are subject to notice and comment under section 553(b) of the APA. The rule will not have a significant economic effect on a substantial number of small entities. The Department of the Interior generally does not award grants to small businesses. The vast majority of Interior grants are awarded to States, local governments, and not-for-profit organizations. C. Small Business Regulatory Enforcement Fairness Act This final rule is not a major rule under the Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)). This rule: (a) Does not have an annual effect on the economy of $100 million or more. (b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions. (c) Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. This rule establishes regulations for DOI financial assistance. These changes wouldn’t cause a significant impact. It will not affect business relationships, employment, investment, productivity, innovations, or the ability of U.S.-based enterprises to compete internationally. D. Unfunded Mandates Reform Act This final rule does not impose an unfunded mandate on State, local, or Tribal governments or the private sector of more than $100 million per year. The final rule does not have a significant or unique effect on State, local, or Tribal governments or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required. E. Takings (E.O. 12630) Under the criteria in section 2 of E.O. 12630, this rule does not have significant takings implications. It does not impose any obligations on the public that would result in a taking. A takings implication assessment is not required. F. Federalism (E.O. 13132) Under the criteria in section 1 of E.O. 13132, this rule does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement. This is because it would not substantially and directly E:\FR\FM\18OCR1.SGM 18OCR1 Federal Register / Vol. 86, No. 198 / Monday, October 18, 2021 / Rules and Regulations K. Effects on the Energy Supply (E.O. 13211) This rule is not a significant energy action under the definition in E.O. 13211; therefore, a Statement of Energy Effects is not required. affect the relationship between the Federal and state governments. Accordingly, a federalism summary impact statement is not required. G. Civil Justice Reform (E.O. 12988) This rule complies with the requirements of E.O. 12988. Specifically, this rule: (a) Meets the criteria of section 3(a) of this E.O. requiring that all regulations be reviewed to eliminate errors and ambiguity and be written to minimize litigation; and (b) Meets the criteria of section 3(b)(2) of this E.O. requiring that all regulations be written in clear language and contain clear legal standards. H. Consultation With Indian Tribes (E.O. 13175) The Department of the Interior strives to strengthen its government-togovernment relationship with Indian tribes by committing to consultation and recognition of their right to selfgovernance and tribal sovereignty. This rule does not have tribal implications warranting the application of E.O. 13175. It does not have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or the distribution of power and responsibilities between the Federal Government and Indian tribes. I. Paperwork Reduction Act, 44 U.S.C. 3501, et seq. This final rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520). jspears on DSK121TN23PROD with RULES1 J. National Environmental Policy Act This final rule would not constitute a major Federal action significantly affecting the quality of the human environment. A detailed statement under the National Environmental Policy Act of 1969 (NEPA) is not required. Pursuant to Department Manual 516 DM 2.3A(2), section 1.10 of 516 DM 2, Appendix 1 excludes from documentation in an environmental assessment or impact statement ‘‘policies, directives, regulations and guidelines of an administrative, financial, legal, technical or procedural nature; or the environmental effects of which are too broad, speculative or conjectural to lend themselves to meaningful analysis and will be subject to the NEPA process, either collectively or case-by-case.’’ VerDate Sep<11>2014 16:35 Oct 15, 2021 Jkt 256001 List of Subjects in 2 CFR Part 1402 Accounting, Administrative practice and procedure, Adult education, Aged, Agriculture, American Samoa, Bilingual education, Blind, Business and industry, Civil rights, Colleges and universities, Communications, Community development, Community facilities, Copyright, Credit, Cultural exchange programs, Educational facilities, Educational research, Education, Education of disadvantaged, Education of individuals with disabilities, Educational study programs, Electric power, Electric power rates, Electric utilities, Elementary and secondary education, Energy conservation, Equal educational opportunity, Federally affected areas, Government contracts, Grant programs, Grant programs—agriculture, Grant programs—business, Grant programs— communications, Grant programs— education, Grant programs—energy, Grant programs—health, Grant programs—housing and community development, Grant programs—social programs, Grants administration, Guam, Home improvement, Homeless, Hospitals, Housing, Human research subjects, Incorporation by reference, Indians, Indians—education, Infants and children, Insurance, Intergovernmental relations, International organizations, Inventions and patents, Loan programs, Loan programs social programs, Loan programs—agriculture, Loan programs— business and industry, Loan programs— communications, Loan programs— energy, Loan programs—health, Loan programs—housing and community development, Manpower training programs, Migrant labor, Mortgage insurance, Nonprofit organizations, Northern Mariana Islands, Pacific Islands Trust Territories, Privacy, Renewable energy, Reporting and recordkeeping requirements, Rural areas, Scholarships and fellowships, School construction, Schools, Science and technology, Securities, Small businesses, State and local governments, Student aid, Teachers, Telecommunications, Telephone, Urban areas, Veterans, Virgin Islands, Vocational education, Vocational rehabilitation, Waste treatment and disposal, Water pollution control, Water resources, Water supply, Watersheds, Women. PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 57531 For the reasons set forth in the preamble, the Department of the Interior amends 2 CFR part 1402 as set forth below: PART 1402—FINANCIAL ASSISTANCE INTERIOR REGULATION, SUPPLEMENTING THE UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS 1. The authority citation for part 1402 continues to read as follows: ■ Authority: 5 U.S.C. 301 and 2 CFR part 200. § 1402.4 [Amended] 2. In § 1402.4, remove ‘‘2 CFR 200.46 and 200.47’’ and add in its place ‘‘2 CFR 200.1’’. ■ § 1402.6 [Amended] 3. In § 1402.6, remove ‘‘2 CFR 200.85’’ and add in its place ‘‘2 CFR 200.1’’. ■ § 1402.112 [Amended] 4. In § 1402.112(e), remove ‘‘2 CFR 200.338’’ and add in its place ‘‘2 CFR 200.339’’. ■ § 1402.206 [Amended] 5. In § 1402.206(b), remove ‘‘2 CFR 200.210’’ and add in its place ‘‘2 CFR 200.211’’. ■ 6. Amend § 1402.207 by adding paragraphs (a)(10) through (12) to read as follows: ■ § 1402.207 apply? What specific conditions (a) * * * (10) 2 CFR part 183, Never Contract With the Enemy. (11) 2 CFR 200.216, Prohibition on Certain Telecommunication and Video Surveillance Services or Equipment. (12) All applicable Executive orders. * * * * * ■ 7. Amend § 1402.300 by: ■ a. In paragraph (e)(5), removing the word ‘‘and’’ at the end of the paragraph; ■ b. Revising (e)(6); and ■ c. Adding paragraphs (e)(7) and (8). The revision and additions read as follows: § 1402.300 What are the statutory and national policy requirements? * * * * * (e) * * * (6) 48 CFR 3.909–2(a). Federal award recipients are prohibited from requiring employees or contractors seeking to report fraud, waste, or abuse to sign internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or E:\FR\FM\18OCR1.SGM 18OCR1 57532 Federal Register / Vol. 86, No. 198 / Monday, October 18, 2021 / Rules and Regulations contractors from lawfully reporting such fraud, waste, or abuse to a designated investigative or law enforcement representative of a Federal department or agency authorized to receive such information; (7) 2 CFR part 183, Never Contract With the Enemy; and (8) 2 CFR 200.216, Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment. This action is taken pursuant to delegated authority. Rachael S. Taylor, Principal Deputy Assistant Secretary—Policy, Management and Budget. [FR Doc. 2021–22632 Filed 10–15–21; 8:45 am] BILLING CODE 4334–63–P DEPARTMENT OF HOMELAND SECURITY 6 CFR Part 27 8 CFR Parts 270, 274a, and 280 U.S. Customs and Border Protection 19 CFR Part 4 Coast Guard 33 CFR Part 27 Transportation Security Administration 49 CFR Part 1503 RIN 1601–AA99 Civil Monetary Penalty Adjustments for Inflation Department of Homeland Security. ACTION: Final rule. AGENCY: In this final rule, the Department of Homeland Security (DHS) makes the 2021 annual inflation adjustment to its civil monetary penalties. On November 2, 2015, the President signed into law The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (The 2015 Act). Pursuant to the 2015 Act, all agencies must adjust their civil monetary penalties annually and publish the adjustment in the Federal Register. Accordingly, this final rule adjusts the Department’s civil monetary penalties for 2021 pursuant to the 2015 Act and Executive Office of the President (EOP) Office of Management and Budget (OMB) guidance. The new penalties will be effective for penalties assessed after October 18, 2021 whose jspears on DSK121TN23PROD with RULES1 SUMMARY: VerDate Sep<11>2014 16:35 Oct 15, 2021 Jkt 256001 associated violations occurred after November 2, 2015. DATES: This rule is effective on October 18, 2021. FOR FURTHER INFORMATION CONTACT: Hillary Hunnings, 202–282–9043, hillary.hunnings@hq.dhs.gov. SUPPLEMENTARY INFORMATION: Table of Contents I. Statutory and Regulatory Background II. Overview of Final Rule III. Adjustments by Component A. Cybersecurity and Infrastructure Security Agency B. U.S. Customs and Border Protection C. U.S. Immigration and Customs Enforcement D. U.S. Coast Guard E. Transportation Security Administration IV. Administrative Procedure Act V. Regulatory Analyses A. Executive Orders 12866 and 13563 B. Regulatory Flexibility Act C. Unfunded Mandates Reform Act D. Paperwork Reduction Act VI. Signing Authority I. Statutory and Regulatory Background On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114– 74 section 701 (Nov. 2, 2015)) (2015 Act).1 The 2015 Act amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The 2015 Act required agencies to: (1) Adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through issuance of an interim final rule (IFR) and (2) make subsequent annual adjustments for inflation. Through the ‘‘catch-up’’ adjustment, agencies were required to adjust the maximum amounts of civil monetary penalties to more accurately reflect inflation rates. For the subsequent annual adjustments, the 2015 Act requires agencies to increase the penalty amounts by a cost-of-living adjustment. The 2015 Act directs OMB to provide guidance to agencies each year to assist agencies in making the annual adjustments. The 2015 Act requires agencies to make the annual adjustments no later than January 15 of each year and to publish the adjustments in the Federal Register. Pursuant to the 2015 Act, DHS undertook a review of the civil penalties that DHS and its components administer.2 On July 1, 2016, DHS 1 The 2015 Act was part of the Bipartisan Budget Act of 2015, Public Law 114–74 (Nov. 2, 2015). 2 The 2015 Act applies to all agency civil penalties except for any penalty (including any PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 published an IFR adjusting the maximum civil monetary penalties with an initial ‘‘catch-up’’ adjustment, as required by the 2015 Act.3 DHS calculated the adjusted penalties based upon nondiscretionary provisions in the 2015 Act and upon guidance that OMB issued to agencies on February 24, 2016.4 The adjusted penalties were effective for civil penalties assessed after August 1, 2016 (the effective date of the IFR), whose associated violations occurred after November 2, 2015 (the date of enactment of the 2015 Act). On January 27, 2017, DHS published a final rule making the annual adjustment for 2017.5 On April 2, 2018, DHS made the 2018 annual inflation adjustment.6 On April 5, 2019, DHS made the 2019 annual inflation adjustment.7 On June 17, 2020, DHS made the 2020 annual inflation adjustment.8 II. Overview of the Final Rule This final rule makes the 2021 annual inflation adjustments to civil monetary penalties pursuant to the 2015 Act and pursuant to guidance OMB issued to agencies on December 23, 2020.9 The penalty amounts in this final rule will be effective for penalties assessed after October 18, 2021 where the associated violation occurred after November 2, 2015. Consistent with OMB guidance, the 2015 Act does not change previously assessed penalties that the agency is actively collecting or has collected. The adjusted penalty amounts will apply to penalties assessed after the effective date of this final rule. We discuss civil penalties by DHS component in Section III below. For each component identified in Section III, below, we briefly describe the addition to tax and additional amount) under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) and the Tariff Act of 1930 (19 U.S.C. 1202 et seq.). See sec. 4(a)(1) of the 2015 Act. In the case of DHS, several civil penalties that are assessed by U.S. Customs and Border Protection (CBP) and the U.S. Coast Guard (USCG) fall under the Tariff Act of 1930, and therefore DHS did not adjust those civil penalties in this rulemaking. 3 See 81 FR 42987. 4 Office of Mgmt. & Budget, Exec. Office of The President, M–16–06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, (Feb. 24, 2016) (https:// www.whitehouse.gov/sites/whitehouse.gov/files/ omb/memoranda/2016/m-16-06.pdf). 5 See 82 FR 8571. 6 See 83 FR 13826. 7 See 84 FR 13499. 8 See 85 FR 36469. 9 Office of Mgmt. and Budget, Exec. Office of the President, M–21–10, Implementation of Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec. 23, 2020) (https:// www.whitehouse.gov/wp-content/uploads/2020/12/ M-21-10.pdf). E:\FR\FM\18OCR1.SGM 18OCR1

Agencies

[Federal Register Volume 86, Number 198 (Monday, October 18, 2021)]
[Rules and Regulations]
[Pages 57529-57532]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22632]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 86, No. 198 / Monday, October 18, 2021 / 
Rules and Regulations

[[Page 57529]]



DEPARTMENT OF THE INTERIOR

Office of the Secretary

2 CFR Part 1402

[DOI-2020-0020; 201D0102DM, DS62600000, DLSN 00000.000000, DX62601]
RIN 1090-AB23


Financial Assistance Interior Regulation

AGENCY: Office of the Secretary, Interior.

ACTION: Final rule; technical amendments.

-----------------------------------------------------------------------

SUMMARY: The Department of the Interior (DOI) is publishing this final 
rule to align its regulations with new regulatory citations and 
requirements adopted by the Office of Management and Budget (OMB). On 
August 13, 2020, the OMB published a revision to their regulations 
regarding Guidance for Grants and Agreements. The revision was an 
administrative simplification and did not make any substantive changes 
to their regulations regarding policies and procedures. DOI now 
codifies these changes in its financial assistance regulations.

DATES: This final rule is effective on October 18, 2021.

FOR FURTHER INFORMATION CONTACT: Cara Whitehead, Director, Office of 
Grants Management, Department of the Interior, 1849 C Street NW, Mail 
Stop 3023 MIB, Washington, DC 20240; email [email protected]; 
telephone 202-208-3100.

SUPPLEMENTARY INFORMATION:

I. Background

    On December 26, 2013, OMB published its Uniform Administrative 
Requirements, Cost Principles, and Audit Requirements for Federal 
Awards (referred to as the ``Uniform Guidance,'' 78 FR 78590). The OMB 
Uniform Guidance, 2 CFR part 200, provided a government-wide framework 
for Federal awards management and streamlined administrative 
requirements, cost principles, and audit requirements for Federal 
awards, including grants and cooperative agreements. Implementation of 
the Uniform Guidance became effective on December 26, 2014 (79 FR 
75867, December 19, 2014) and must be reviewed every five years in 
accordance with 2 CFR 200.109. On August 13, 2020 (85 FR 49506 as 
amended on February 22, 2021, in 86 FR 10439), the Office of Management 
and Budget (OMB) published a revision to sections of title 2 of the 
Code of Federal Regulations, Guidance for Grants and Agreements. The 
rule was an administrative simplification and did not make any 
substantive changes to 2 CFR part 200 policies and procedures. DOI now 
codifies these changes in its financial assistance regulations located 
in 2 CFR part 1402. This rule helps ensure that financial assistance 
provided by the DOI is administered in full compliance with applicable 
laws, regulations, policies and best practices to ensure the American 
people get the most value from the money the DOI spends on financial 
assistance.
    The Administrative Procedure Act (APA) specifically provides 
exceptions to its notice and comment rulemaking procedures when an 
agency finds there is good cause to dispense with them, and 
incorporates the finding, and a brief statement of reasons therefore, 
in the rules issued (5 U.S.C. 553(b)(3)(B)). Good cause exists when an 
agency determines that notice and public comment procedures are 
impractical, unnecessary, or contrary to the public interest. The 
amendments made in this final rule align DOI regulations with OMB's 
regulations. OMB's rule had a 60-day comment period and was determined 
to be not significant under Executive Order 12866. This final rule will 
be effective upon publication because it is unnecessary to further 
delay conforming DOI's regulations to OMB's regulations.

II. Section-by-Section Analysis

    DOI is revising its Financial Assistance Interior Regulation at 2 
CFR part 1402 for conformity with OMB's recent revisions to title 2. 
Specifically, DOI is correcting 2 CFR part 1402 to align with the OMB 
updates to the regulatory citations in the Uniform Guidance and new 
regulatory requirements. This section-by-section analysis describes the 
changes to the regulatory text in numerical order.

A. Section 4 Uniform Guidance Definition Citation for Foreign Entity

    In Sec.  1402.4, DOI removes ``2 CFR 200.46 and 200.47'' and adds 
in its place ``2 CFR 200.1''.

B. Section 6 Uniform Guidance Definition Citation for Real Property

    In Sec.  1402.6, DOI removes ``2 CFR 200.85'' and adds in its place 
``2 CFR 200.1''.

C. Section 112(e) Uniform Guidance Citation for Remedies for 
Noncompliance

    In Sec.  1402.112(e), DOI removes ``2 CFR 200.338'' and adds in its 
place ``2 CFR 200.339''.

D. Section 206(b) Uniform Guidance Citation for Information Contained 
in a Federal Award

    In Sec.  1402.206(b), DOI removes ``2 CFR 200.210'' and adds in its 
place ``2 CFR 200.211''.

E. Section 207 Uniform Guidance New Requirement for Never Contract With 
the Enemy

    In Sec.  1402.207, DOI adds the new requirement for Never Contract 
with the Enemy. This revision reflects OMB's changes made to 2 CFR part 
200 on August 13, 2020. The Office of Management and Budget (OMB) added 
2 CFR part 183, which contains a new requirement to Never Contract with 
the Enemy, which applies only to grants and cooperative agreements that 
exceed $50,000 and are performed outside the United States. In 
addition, this includes U.S. territories, to a person or entity that is 
actively opposing the United States or coalition forces involved in a 
contingency operation in which members of the Armed Forces are actively 
engaged in hostilities.

F. Sections 207 Uniform Guidance New Requirement for Prohibition on 
Certain Telecommunications and Video Surveillance Services or Equipment

    In Sec.  1402.207, DOI adds the new requirement for Prohibition on 
Certain Telecommunications and Video Surveillance Services or 
Equipment. This revision reflects amendments made to 2 CFR 200 that 
became effective on August 13, 2020. In addition, OMB added a new 
section, 2 CFR 200.216,

[[Page 57530]]

Prohibition on certain telecommunication and video surveillance 
services or equipment, which prohibits Federal award recipients from 
using loan or grant funds to enter into contracts with entities that 
use covered telecommunications equipment or services.

G. Section 207(a) Standard Award Terms and Conditions That Always Apply 
to For-Profit Entities

    In Sec.  1402.207(a)(12), DOI adds ``all applicable Executive 
orders,'' which applies to all current directives that may impact for-
profit entities as well as any future directives. This amendment aligns 
DOI's regulations with OMB's regulatory guidance in 2 CFR part 200 to 
support domestic preferences encouraging Federal award recipients, to 
the extent permitted by law, to maximize the use of goods, products, 
and materials produced in the United States when procuring goods and 
services under Federal awards. OMB's guidance included domestic policy 
directives as expressed in Executive Order 13788 of April 18, 2017 (Buy 
American and Hire American) and Executive Order 13858 of January 21, 
2019 (Executive Order on Strengthening Buy American Preferences for 
Infrastructure Projects), which superseded Executive Order 14005 
(Ensuring the Future Is Made in all of America by all of America's 
Workers). This revision in DOI's regulations will reflect the current 
OMB guidance and also apply to any future directives issued.

H. Section 300 Uniform Guidance New Requirement for Never Contract With 
the Enemy

    In Sec.  1402.300, DOI adds the new requirement for Never Contract 
with the Enemy. This revision reflects OMB's changes made to 2 CFR part 
200 on August 13, 2020. The Office of Management and Budget (OMB) added 
2 CFR part 183, which contains a new requirement to Never Contract with 
the Enemy, which applies only to grants and cooperative agreements that 
exceed $50,000 and are performed outside the United States. In 
addition, this includes U.S. territories, to a person or entity that is 
actively opposing the United States or coalition forces involved in a 
contingency operation in which members of the Armed Forces are actively 
engaged in hostilities.

I. Section 300 Uniform Guidance New Requirement for Prohibition on 
Certain Telecommunications and Video Surveillance Services or Equipment

    In Sec.  1402.300, DOI adds the new requirement for Prohibition on 
Certain Telecommunications and Video Surveillance Services or 
Equipment. This revision reflects amendments made to 2 CFR part 200 
that became effective on August 13, 2020. In addition, OMB added a new 
section, 2 CFR 200.216, Prohibition on certain telecommunication and 
video surveillance services or equipment, which prohibits Federal award 
recipients from using loan or grant funds to enter into contracts with 
entities that use covered telecommunications equipment or services.

J. Section 300(e) Award Requirements for Foreign Entities

    In Sec.  1402.300(e)(6), DOI removes ``Public Law 113-235 (128 
Stat. 2391, Dec. 16, 2014)'' and adds ``48 CFR 3.909-2(a).'' This 
revision changes the citation from the Public Law to the CFR now that 
this law has been codified in the CFR.

III. Required Determinations

A. Regulatory Planning and Review (Executive Orders 12866 and 13563)

    Executive Order (E.O.) 12866 provides that the OMB's Office of 
Information and Regulatory Affairs will review all significant rules. 
The Office of Information and Regulatory Affairs has determined that 
this rule is not significant. DOI is publishing this final rule to 
align its regulations with new regulatory citations and requirements 
adopted by OMB.
    Executive Order 13563 reaffirms the principles of E.O. 12866, 
calling for improvements in the nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory 
objectives. E.O. 13563 directs agencies to consider regulatory 
approaches that reduce burdens and maintain flexibility and freedom of 
choice for the public, where these approaches are relevant, feasible, 
and consistent with regulatory objectives.
    E.O. 13563 emphasizes further that regulations must be based on the 
best available science and that the rulemaking process must allow for 
public participation and an open exchange of ideas. We have developed 
this final rule in a manner consistent with these requirements.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612) applies to 
rules that are subject to notice and comment under section 553(b) of 
the APA. The rule will not have a significant economic effect on a 
substantial number of small entities. The Department of the Interior 
generally does not award grants to small businesses. The vast majority 
of Interior grants are awarded to States, local governments, and not-
for-profit organizations.

C. Small Business Regulatory Enforcement Fairness Act

    This final rule is not a major rule under the Small Business 
Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)). This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.
    This rule establishes regulations for DOI financial assistance. 
These changes wouldn't cause a significant impact. It will not affect 
business relationships, employment, investment, productivity, 
innovations, or the ability of U.S.-based enterprises to compete 
internationally.

D. Unfunded Mandates Reform Act

    This final rule does not impose an unfunded mandate on State, 
local, or Tribal governments or the private sector of more than $100 
million per year. The final rule does not have a significant or unique 
effect on State, local, or Tribal governments or the private sector. A 
statement containing the information required by the Unfunded Mandates 
Reform Act (2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    Under the criteria in section 2 of E.O. 12630, this rule does not 
have significant takings implications. It does not impose any 
obligations on the public that would result in a taking. A takings 
implication assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of E.O. 13132, this rule does not 
have sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement. This is because it would not 
substantially and directly

[[Page 57531]]

affect the relationship between the Federal and state governments. 
Accordingly, a federalism summary impact statement is not required.

G. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (a) Meets the criteria of section 3(a) of this E.O. requiring that 
all regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2) of this E.O. requiring 
that all regulations be written in clear language and contain clear 
legal standards.

H. Consultation With Indian Tribes (E.O. 13175)

    The Department of the Interior strives to strengthen its 
government-to-government relationship with Indian tribes by committing 
to consultation and recognition of their right to self-governance and 
tribal sovereignty. This rule does not have tribal implications 
warranting the application of E.O. 13175. It does not have substantial 
direct effects on one or more Indian tribes, on the relationship 
between the Federal Government and Indian tribes, or the distribution 
of power and responsibilities between the Federal Government and Indian 
tribes.

I. Paperwork Reduction Act, 44 U.S.C. 3501, et seq.

    This final rule calls for no new collection of information under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

J. National Environmental Policy Act

    This final rule would not constitute a major Federal action 
significantly affecting the quality of the human environment. A 
detailed statement under the National Environmental Policy Act of 1969 
(NEPA) is not required. Pursuant to Department Manual 516 DM 2.3A(2), 
section 1.10 of 516 DM 2, Appendix 1 excludes from documentation in an 
environmental assessment or impact statement ``policies, directives, 
regulations and guidelines of an administrative, financial, legal, 
technical or procedural nature; or the environmental effects of which 
are too broad, speculative or conjectural to lend themselves to 
meaningful analysis and will be subject to the NEPA process, either 
collectively or case-by-case.''

K. Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in E.O. 13211; therefore, a Statement of Energy Effects is not 
required.

List of Subjects in 2 CFR Part 1402

    Accounting, Administrative practice and procedure, Adult education, 
Aged, Agriculture, American Samoa, Bilingual education, Blind, Business 
and industry, Civil rights, Colleges and universities, Communications, 
Community development, Community facilities, Copyright, Credit, 
Cultural exchange programs, Educational facilities, Educational 
research, Education, Education of disadvantaged, Education of 
individuals with disabilities, Educational study programs, Electric 
power, Electric power rates, Electric utilities, Elementary and 
secondary education, Energy conservation, Equal educational 
opportunity, Federally affected areas, Government contracts, Grant 
programs, Grant programs--agriculture, Grant programs--business, Grant 
programs--communications, Grant programs--education, Grant programs--
energy, Grant programs--health, Grant programs--housing and community 
development, Grant programs--social programs, Grants administration, 
Guam, Home improvement, Homeless, Hospitals, Housing, Human research 
subjects, Incorporation by reference, Indians, Indians--education, 
Infants and children, Insurance, Intergovernmental relations, 
International organizations, Inventions and patents, Loan programs, 
Loan programs social programs, Loan programs--agriculture, Loan 
programs--business and industry, Loan programs--communications, Loan 
programs--energy, Loan programs--health, Loan programs--housing and 
community development, Manpower training programs, Migrant labor, 
Mortgage insurance, Nonprofit organizations, Northern Mariana Islands, 
Pacific Islands Trust Territories, Privacy, Renewable energy, Reporting 
and recordkeeping requirements, Rural areas, Scholarships and 
fellowships, School construction, Schools, Science and technology, 
Securities, Small businesses, State and local governments, Student aid, 
Teachers, Telecommunications, Telephone, Urban areas, Veterans, Virgin 
Islands, Vocational education, Vocational rehabilitation, Waste 
treatment and disposal, Water pollution control, Water resources, Water 
supply, Watersheds, Women.

    For the reasons set forth in the preamble, the Department of the 
Interior amends 2 CFR part 1402 as set forth below:

PART 1402--FINANCIAL ASSISTANCE INTERIOR REGULATION, SUPPLEMENTING 
THE UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT 
REQUIREMENTS FOR FEDERAL AWARDS

0
1. The authority citation for part 1402 continues to read as follows:

    Authority:  5 U.S.C. 301 and 2 CFR part 200.


Sec.  1402.4   [Amended]

0
2. In Sec.  1402.4, remove ``2 CFR 200.46 and 200.47'' and add in its 
place ``2 CFR 200.1''.


Sec.  1402.6   [Amended]

0
3. In Sec.  1402.6, remove ``2 CFR 200.85'' and add in its place ``2 
CFR 200.1''.


Sec.  1402.112   [Amended]

0
4. In Sec.  1402.112(e), remove ``2 CFR 200.338'' and add in its place 
``2 CFR 200.339''.


Sec.  1402.206   [Amended]

0
5. In Sec.  1402.206(b), remove ``2 CFR 200.210'' and add in its place 
``2 CFR 200.211''.

0
6. Amend Sec.  1402.207 by adding paragraphs (a)(10) through (12) to 
read as follows:


Sec.  1402.207   What specific conditions apply?

    (a) * * *
    (10) 2 CFR part 183, Never Contract With the Enemy.
    (11) 2 CFR 200.216, Prohibition on Certain Telecommunication and 
Video Surveillance Services or Equipment.
    (12) All applicable Executive orders.
* * * * *

0
7. Amend Sec.  1402.300 by:
0
a. In paragraph (e)(5), removing the word ``and'' at the end of the 
paragraph;
0
b. Revising (e)(6); and
0
c. Adding paragraphs (e)(7) and (8).
    The revision and additions read as follows:


Sec.  1402.300   What are the statutory and national policy 
requirements?

* * * * *
    (e) * * *
    (6) 48 CFR 3.909-2(a). Federal award recipients are prohibited from 
requiring employees or contractors seeking to report fraud, waste, or 
abuse to sign internal confidentiality agreements or statements 
prohibiting or otherwise restricting such employees or

[[Page 57532]]

contractors from lawfully reporting such fraud, waste, or abuse to a 
designated investigative or law enforcement representative of a Federal 
department or agency authorized to receive such information;
    (7) 2 CFR part 183, Never Contract With the Enemy; and
    (8) 2 CFR 200.216, Prohibition on Certain Telecommunications and 
Video Surveillance Services or Equipment.
    This action is taken pursuant to delegated authority.

Rachael S. Taylor,
Principal Deputy Assistant Secretary--Policy, Management and Budget.
[FR Doc. 2021-22632 Filed 10-15-21; 8:45 am]
BILLING CODE 4334-63-P
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