Financial Assistance Regulations-Conflict of Interest and Conflict of Commitment Policy Requirements, 51460-51468 [2024-13392]

Agencies

• DEPARTMENT OF ENERGY

[Federal Register Volume 89, Number 118 (Tuesday, June 18, 2024)]
[Proposed Rules]
[Pages 51460-51468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13392]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 89, No. 118 / Tuesday, June 18, 2024 / 
Proposed Rules

[[Page 51460]]



DEPARTMENT OF ENERGY

2 CFR Part 910

[DOE-HQ-2024-0029]
RIN 1991-AC18


Financial Assistance Regulations--Conflict of Interest and 
Conflict of Commitment Policy Requirements

AGENCY: Department of Energy.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Energy (DOE or Department) is proposing to 
amend its Financial Assistance Regulations to establish conflict of 
interest and conflict of commitment policies and requirements for non-
federal entities applying for or receiving financial assistance awards 
from the Department, and to implement and standardize certain 
disclosure requirements applicable to financial assistance applications 
and awards, including responsibilities, general rules, and procedures 
for non-federal entities to identify, evaluate, resolve, and report 
conflicts of interest, conflicts of commitment, and organizational 
conflicts of interest, in financial assistance applications and awards.

DATES: Written comments on this proposed rule must be received on or 
before August 19, 2024.

ADDRESSES: You may submit comments, identified by Financial Assistance 
Regulations--Conflict of Interest and Conflict of Commitment Policy 
Requirements and RIN 1991-AC18, by any of the following methods:
    Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions for submitting comments.
    Email to: [email protected]: Include Financial Assistance 
Regulations--Conflict of Interest Policy and RIN 1991-AC18 in the 
subject line of the message.
    Postal mail to: U.S. Department of Energy, Office of Acquisition 
Management, Contract and Financial Assistance Policy Division, MA-611, 
1000 Independence Avenue SW, Washington, DC 20585.
    Comments by email are encouraged. No telefacsimiles (``faxes'') 
will be accepted. For detailed instructions on submitting comments and 
additional information on this process, see section IV of this 
document.
    Docket: The docket for this activity, which includes Federal 
Register notices, comments, public meeting transcripts, and other 
supporting documents/materials, is available for review at 
www.regulations.gov and can be located by the docket number provided in 
the heading of this document. All documents in the docket are listed in 
the www.regulations.gov index. However, some documents listed in the 
index, such as those containing information that is exempt from public 
disclosure, may not be publicly available.

FOR FURTHER INFORMATION CONTACT: Ms. Krystal Paige, U.S. Department of 
Energy, Office of Acquisition Management, at (240) 404-8294 or by email 
at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background
II. Section-by-Section Analysis
III. Regulatory Review and Procedural Requirements
    A. Review Under Executive Orders 12866, 13563, and 14094
    B. Review Under Executive Order 12988
    C. Review Under the Regulatory Flexibility Act
    D. Review Under the Paperwork Reduction Act
    E. Review Under the National Environmental Policy Act
    F. Review Under Executive Order 13132
    G. Review Under Executive Order 13175
    H. Review Under the Unfunded Mandates Reform Act of 1995
    I. Review Under the Treasury and General Government 
Appropriations Act, 1999
    J. Review Under Executive Order 13211
    K. Review Under the Treasury and General Government 
Appropriations Act, 2001
IV. Public Participation
V. Approval by the Office of the Secretary of Energy

I. Background

    The purpose of this proposed rulemaking is to amend the 
Department's Financial Assistance Regulations at 2 CFR part 910. 
Specifically, DOE is proposing to amend part 910 to prescribe 
responsibilities, requirements, and procedures for non-Federal entities 
to identify, evaluate, resolve, and report conflicts of interest, 
conflicts of commitment, and organizational conflicts of interest in 
Federal financial assistance applications and awards, as those terms 
are proposed to be defined in this notice of proposed rulemaking.
    The proposed provisions would implement Office of Management and 
Budget (OMB) guidance to Federal agencies regarding the establishment 
of conflict of interest (COI) policies for Federal awards by codifying 
existing DOE policy, consistent with National Security Presidential 
Memorandum 33 (NSPM-33).\1\
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    \1\ NSPM-33 established national security policy for U.S. 
Government-supported research and development (R&D). The purpose of 
NSPM-33 is to strengthen protections of U.S. Government-supported 
R&D against foreign government interference and misappropriation, 
while maintaining an open environment to foster research discoveries 
and innovation that benefit the United States and the world. NPSM-33 
is available at https://trumpwhitehouse.archives.gov/presidential-actions/presidential-memorandum-united-states-government-supported-research-development-national-security-policy/. See also, OMB 
guidance, Guidance for Implementing National Security Presidential 
Memorandum (NPM-33) on National Security Strategy for United States 
Government-Supported Research and Development, available at https://www.whitehouse.gov/wp-content/uploads/2022/01/010422-NSPM-33-Implementation-Guidance.pdf.
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    DOE is required to establish COI policies for Federal awards 
pursuant to 2 CFR 200.112, which also specifies that the non-Federal 
entity must disclose in writing any potential COI to the Federal 
awarding agency or pass-through entity in accordance with applicable 
Federal awarding agency policy.
    On December 20, 2021, DOE issued an interim COI policy \2\ that 
addresses COI and organizational conflicts of interest, which will be 
incorporated in and made enforceable through the Special Terms and 
Conditions for DOE financial assistance awards. The interim COI policy 
establishes standards that provide a reasonable expectation that the 
design, conduct, and reporting of projects wholly or in part funded 
under DOE financial assistance awards (e.g., a grant, cooperative 
agreement, or technology investment agreement) will be free from bias 
resulting from COI or

[[Page 51461]]

conflict of commitment (COC).\3\ To minimize the implementation burden 
on non-Federal entities, the interim COI policy is largely aligned with 
the long-standing COI regulations established by the Public Health 
Service at 42 CFR part 50, subpart F, which are applicable to research 
and development entities that include R&D funded by Public Health 
Service grants or cooperative agreements. The interim COI policy 
currently remains in effect.
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    \2\ Financial Assistance Letter No. 2022-02, Department of 
Energy Interim Conflict of Interest Policy Requirements for 
Financial Assistance. Available at https://www.energy.gov/sites/default/files/2021-12/Interim%20COI%20Policy%20FAL2022-02%20to%20SPEs.pdf.
    \3\ In general, as proposed COC means a situation in which an 
individual accepts or incurs conflicting obligations, whether 
foreign or domestic, between or among multiple employers or other 
entities and may include conflicting commitments of time and effort, 
including obligations to dedicate time in excess of institutional or 
DOE policies or commitments.
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    The disclosure requirements proposed in this notice of proposed 
rulemaking would be established in proposed subpart C to 2 CFR part 910 
(Subpart C). If made final, this proposed rule would apply to Federal 
financial assistance applications and awards, including applications 
and awards regarding research, development, demonstration, and 
deployment.
    The proposed requirements regarding COI, COC, and organizational 
conflicts of interest (OCI) \4\ would generally apply to non-Federal 
entities applying and receiving financial assistance awards from DOE as 
described in 2 CFR 910.122. DOE is proposing that Subpart C not be 
applicable to applicants to or recipients of financial assistance under 
the programs of the DOE Office of Indian Energy, given that office's 
statutory mission to maximize the development and deployment of energy 
solutions for the benefit of American Indians and Alaska Natives; the 
unique sovereign status of Tribes; the practical limitations such 
regulations would present Tribes serving their communities, which in 
certain instances are small and remote; and consideration of 
traditional Tribal practices. DOE also proposes that the applicable DOE 
program office may tailor as appropriate the COI, COC, and OCI 
provisions for individuals applying for or receiving a DOE financial 
assistance award.
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    \4\ An OCI means that because of relationships with a parent 
company, affiliate, or subsidiary organization, a non- Federal 
entity is unable or appears to be unable to be impartial in 
conducting a procurement action involving a related organization. 2 
CFR 200.318(c)(2).
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    DOE requests comment on the scope of the proposed regulations. DOE 
notes on April 22, 2024, the Office of Management and Budget (OMB) 
published a final rule that revises sections of the OMB Guidance for 
Grants and Agreements, and is effective beginning October 1, 2024. 89 
FR 30046. DOE will consider conforming changes to the regulations 
proposed in this notice of proposed rulemaking based on the finalized 
OMB guidance once effective, as appropriate.

II. Section-by-Section Analysis

    DOE proposes amending Chapter 9 of Title 2 of the Code of Federal 
Regulations to add subpart C. Proposed subpart C provides the general 
requirement for applicants for and recipients of federal financial 
assistance from DOE to maintain a COI and a COC policy; definitions 
relevant to the COI and COC policy requirements; and for the disclosure 
of certain COI, COC, and OCI, by applicants and recipients. New subpart 
C would consist of Sec. Sec.  910.200 through 910.270 and appendix A as 
set forth below:

Sec.  910.200

    Proposed Sec.  910.200 would establish definitions applicable to 
the proposed new subpart C. DOE is proposing to define conflict of 
commitment (COC), conflict of interest (COI), covered individual, 
financial interest, other support, principal investigator (PI), 
project, and significant financial interest.

Sec.  910.210

    Proposed Sec.  910.210 would establish the applicability of the COI 
and COC policy and reporting requirements proposed in new subpart C. In 
general, DOE is proposing the requirements would be applicable to non-
Federal entities that are applicants to or recipients of a DOE Federal 
financial assistance award.

Sec.  910.220

    Reserved.

Sec.  910.230

    Proposed Sec.  910.230 would require non-Federal entities that are 
applicants to or recipients of DOE Federal financial assistance to 
establish and maintain COI and COC policies. DOE further proposes in 
Sec.  910.230 the criteria that such policies would be required to meet 
and requirements regarding subrecipients.

Sec.  910.240

    Proposed Sec.  910.240 would establish reporting requirements 
regarding identified COI and COC, mitigation measures relevant to a COI 
or COC, and requirements to update reporting.

Sec.  910.250

    Consistent with 2 CFR 200.318, proposed Sec.  910.250 would 
establish requirements regarding non-Federal entities with a parent, 
affiliate, or subsidiary organization that is not a state government, 
local government, or Indian tribe, the non-Federal entity must maintain 
written standards of conduct covering organizational conflicts of 
interest (OCI) as that term is defined in 2 CFR 200.318(c)(2). DOE 
notes that in the context of the Federal Acquisition Regulations, the 
head of an agency or their designee may waive the organizational 
conflicts of interest requirement by determining that its application 
in a particular situation would not be in the Government's interest. 48 
CFR 9.503. Comment is requested on whether a similar provision should 
be applicable to the financial assistance requirements.

Sec.  910.260

    Proposed Sec.  910.260 would establish reporting requirements 
relevant to any potential or actual OCI to DOE. Proposed Sec.  910.260 
would establish the timing and content requires of such reports.

Sec.  910.270

    Proposed Sec.  910.270 would specify actions DOE may take if a non-
Federal entity fails to disclose a COI or COC or fails to sufficiently 
manage or mitigate such a conflict. Proposed Sec.  910.270 would also 
specify the remedies for failure to disclose an OCI.

Appendix A

    Proposed appendix A would provide the certification statement that 
would be required for compliance with the requirements in proposed 
subpart C to 2 CFR part 910.

III. Regulatory Review and Procedural Requirements

A. Review Under Executive Orders 12866, 13563, and 14094

    Executive Order (E.O.) 12866, ``Regulatory Planning and Review,'' 
as supplemented and reaffirmed by E.O. 13563, ``Improving Regulation 
and Regulatory Review,'' and amended by E.O. 14094, ``Modernizing 
Regulatory Review,'' 88 FR 21879 (April 11, 2023) requires agencies, to 
the extent permitted by law to: (1) propose or adopt a regulation only 
upon a reasoned determination that its benefits justify its costs 
(recognizing that some benefits and costs are difficult to quantify); 
(2) tailor regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives, taking into account, 
among other things, and to the extent practicable, the costs of 
cumulative regulations; (3) select, in choosing among alternative 
regulatory approaches, those approaches that maximize net benefits 
(including

[[Page 51462]]

potential economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity); (4) to the extent 
feasible, specify performance objectives, rather than specifying the 
behavior or manner of compliance that regulated entities must adopt; 
and (5) identify and assess available alternatives to direct 
regulation, including providing economic incentives to encourage the 
desired behavior, such as user fee or profit or marketable permits, or 
providing information upon which choices can be made by the public.
    DOE emphasizes as well that E.O. 13563 requires agencies to use the 
best available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible. In its guidance, the 
Office of Information and Regulatory Affairs has emphasized that such 
techniques may include identifying changing future compliance costs 
that might result from technological innovation or anticipated 
behavioral changes. DOE has initially determined that this notice of 
proposed rulemaking (NOPR) is consistent with these principles, 
including the requirement that, to the extent permitted by law, 
agencies adopt a regulation only upon a reasoned determination that its 
benefits justify its costs and, in choosing among alternative 
regulatory approaches, those approaches maximize net benefits.
    Section 6(a) of E.O. 12866 also requires agencies to submit 
``significant regulatory actions'' to the Office of Information and 
Regulatory Affairs (OIRA) for review. OIRA has determined that this 
proposed 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 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 United States 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 if 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 proposed rule meets the relevant standards of Executive Order 
12988.

C. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq. )requires 
preparation of an initial regulatory flexibility analysis 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 Executive Order 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking,'' (67 FR 53461, August 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 General Counsel's 
website at www.energy.gov/gc/office-general-counsel.
    DOE has reviewed this proposed rule under the provisions of the 
Regulatory Flexibility Act and the procedures and policies published on 
February 19, 2003. DOE certifies that the proposed rule, if adopted, 
would not have significant economic impact on a substantial number of 
small entities. The factual basis for this certification is set forth 
below.
    The proposed rule would be applicable to non-federal entities that 
are applicants to or recipients of financial assistance awards from the 
Department. Non-Federal entities, including small entities, are 
currently subject to the Department's interim policies implementing the 
conflicts provisions at 2 CFR 200.112 and the requirements regarding 
OCI at 2 CFR 200.318(c). If made final, this rule would codify the 
existing policies applicable to financial assistance awards from the 
Department. Additionally, as proposed, the applicable DOE program 
office may tailor as appropriate the COI, COC, and OCI provisions for 
individuals that are applicants to or recipients of a DOE financial 
assistance award.
    Accordingly, DOE certifies that this rule would not have a 
significant economic impact on a substantial number of small entities, 
and, therefore, no regulatory flexibility analysis is required. DOE 
will transmit a 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 the Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Ch. 3506; 5 CFR 1320, Appendix A.1) (PRA), DOE reviewed this proposed 
rule and determined that there are no new collections of information 
contained therein. DOE's procurement reporting and recordkeeping 
burdens have been approved under OMB Control No. 1910-4100.

E. Review Under the National Environmental Policy Act

    DOE has preliminarily determined that promulgation of this proposed 
rule falls into a class of actions that would not individually or 
cumulatively have a significant impact on the human environment, as 
determined by DOE's regulations implementing the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) (NEPA). Specifically, DOE 
has preliminarily determined that this proposed rule is covered under 
the categorical exclusion found in DOE's NEPA regulations at paragraph 
A6 of appendix A to subpart D, 10 CFR part 1021. Categorical exclusion 
A6 applies to rulemakings that are strictly procedural. Additionally, 
DOE has preliminarily determined that this proposed rule is covered 
under the Categorical Exclusion found in DOE's NEPA regulations at 
paragraph A5 of appendix A to subpart D, 10 CFR part 1021, which 
applies to a rulemaking that amends an existing rule or regulation and 
that does not change the environmental effect of the rule or regulation 
being amended. Accordingly, neither an environmental assessment nor an 
environmental impact statement is required.

[[Page 51463]]

F. Review Under Executive Order 13132

    Executive Order 13132, ``Federalism'' (64 FR 43255, August 4, 
1999), imposes certain requirements on agencies formulating and 
implementing policies or regulations that preempt State law or that 
have federalism implications. Agencies are required to examine the 
constitutional and statutory authority supporting any action that would 
limit the policymaking discretion of the States and carefully assess 
the necessity for such actions. The Executive order requires agencies 
to have an accountability 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 the 
proposed rule and has determined that it does not preempt State law and 
does 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. No further action is required by Executive Order 13132.

G. Review Under Executive Order 13175

    Under Executive Order 13175 (65 FR 67249, November 6, 2000) on 
``Consultation and Coordination with Indian Tribal Governments,'' DOE 
may not issue a discretionary rule that has ``Tribal'' implications and 
imposes substantial direct compliance costs on Indian Tribal 
governments. DOE has determined that the final rule would not have such 
effects and concludes that Executive Order 13175 does not apply to this 
proposed rulemaking.

H. Review Under the 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 
https://energy.gov/sites/prod/files/gcprod/documents/umra_97.pdf. This 
proposed 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 the private sector. As a result, the analytical 
requirements of UMRA do not apply.

I. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Public Law 105-277), requires Federal agencies to issue a 
Family Policymaking Assessment for any rulemaking or policy that may 
affect family well-being. This proposed rulemaking will have no 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 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, 
of the Office of Management and Budget (OMB), a Statement of Energy 
Effects for any proposed significant energy action. A ``significant 
energy action'' is defined as any action by an agency that promulgates 
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, (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 proposed 
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 proposed rule is not a significant energy action. Moreover, it 
would not have a significant adverse effect on the supply, 
distribution, or use of energy, nor has it been designated as a 
significant energy action by the Administrator of OIRA. Accordingly, 
DOE has not prepared a Statement of Energy Effects.

K. Review Under the Treasury and General Government Appropriations Act, 
2001

    The Treasury and General Government Appropriations Act, 2001 (44 
U.S.C. 3516, note) provides for agencies to review most disseminations 
of information to the public under guidelines established by each 
agency pursuant to general guidelines issued by OMB. OMB's guidelines 
were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines 
were published at 67 FR 62446 (October 7, 2002). DOE has reviewed this 
proposed rule under the OMB and DOE guidelines and has concluded that 
it is consistent with applicable policies in those guidelines.

VI. Public Participation

    DOE will accept comments regarding this proposed rule no later than 
the date provided in the DATES section at the beginning of this 
document. Interested parties may submit comments, data, and other 
information using any of the methods described in the ADDRESSES section 
at the beginning of this document.
    Submitting comments via www.regulations.gov. The 
www.regulations.gov web page will require you to provide your name and 
contact information. Your contact information will be viewable to DOE 
staff only. Your contact information will not be publicly viewable 
except for your first and last names, organization name (if any), and 
submitter representative name (if any). If your comment is not 
processed properly because of technical difficulties, DOE will use this 
information to contact you. If DOE cannot read your comment due to 
technical difficulties and cannot contact you for clarification, DOE 
may not be able to consider your comment.
    However, your contact information will be publicly viewable if you 
include it in the comment itself or in any documents attached to your 
comment. Any information that you do not want to be publicly viewable 
should not be included in your comment, nor in any document attached to 
your comment.

[[Page 51464]]

Otherwise, persons viewing comments will see only first and last names, 
organization names, correspondence containing comments, and any 
documents submitted with the comments.
    Do not submit to www.regulations.gov information for which 
disclosure is restricted by statute, such as trade secrets and 
commercial or financial information (hereinafter referred to as 
Confidential Business Information (``CBI'')). Comments submitted 
through www.regulations.gov cannot be claimed as CBI. Comments received 
through the website will waive any CBI claims for the information 
submitted. For information on submitting CBI, see the Confidential 
Business Information section.
    DOE processes submissions made through www.regulations.gov before 
posting. Normally, comments will be posted within a few days of being 
submitted. However, if large volumes of comments are being processed 
simultaneously, your comment may not be viewable for up to several 
weeks. Please keep the comment tracking number that www.regulations.gov 
provides after you have successfully uploaded your comment.
    Submitting comments via email, hand delivery/courier, or postal 
mail. Comments and documents submitted via email, hand delivery/
courier, or postal mail also will be posted to www.regulations.gov. If 
you do not want your personal contact information to be publicly 
viewable, do not include it in your comment or any accompanying 
documents. Instead, provide your contact information in a cover letter. 
Include your first and last names, email address, telephone number, and 
optional mailing address. The cover letter will not be publicly 
viewable as long as it does not include any comments. Include contact 
information each time you submit comments, data, documents, and other 
information to DOE. If you submit via postal mail or hand delivery/
courier, please provide all items on a CD, if feasible, in which case 
it is not necessary to submit printed copies. No faxes will be 
accepted.
    Comments, data, and other information submitted to DOE 
electronically should be provided in PDF (preferred), Microsoft Word or 
Excel, WordPerfect, or text (ASCII) file format. Provide documents that 
are not secured, that are written in English, and that are free of any 
defects or viruses. Documents should not contain special characters or 
any form of encryption and, if possible, they should carry the 
electronic signature of the author.
    Campaign form letters. Please submit campaign form letters by the 
originating organization in batches of between 50 to 500 form letters 
per PDF or as one form letter with a list of supporters' names compiled 
into one or more PDFs. This reduces comment processing and posting 
time.
    Confidential Business Information. Pursuant to 10 CFR 1004.11, any 
person submitting information that he or she believes to be 
confidential and exempt by law from public disclosure should submit via 
email two well-marked copies: one copy of the document marked 
``confidential'' including all the information believed to be 
confidential, and one copy of the document marked ``non-confidential'' 
with the information believed to be confidential deleted. DOE will make 
its own determination about the confidential status of the information 
and treat it according to its determination.
    It is DOE's policy that all comments may be included in the public 
docket, without change and as received, including any personal 
information provided in the comments (except information deemed to be 
exempt from public disclosure).

V. Approval by the Office of the Secretary of Energy

    The Secretary of Energy has approved publication of this notice of 
proposed rulemaking.

List of Subjects in 2 CFR Part 910

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

Signing Authority

    This document of the Department of Energy was signed on May 30, 
2024, by Berta Schreiber, Director, Office of Acquisition Management 
and Senior Procurement Executive and William J. Quigley, Deputy 
Associate Administrator for Office of Partnership and Acquisition 
Services and Senior Procurement Executive, National Nuclear Security 
Administration, pursuant to delegated authority from the Secretary of 
Energy. That document with the original signature and date is 
maintained by DOE/NNSA. 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 June 13, 2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.

    For reasons set out in the preamble, DOE proposes to amend chapter 
9 of Title 2 of the Code of Federal Regulations as set forth below:

PART 910--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND 
AUDIT REQUIREMENTS FOR FEDERAL AWARDS

0
1. The authority citation for part 910 continues to read as follows:

    Authority:  42 U.S.C. 7101, et seq.; 31 U.S.C. 6301-6308; 50 
U.S.C. 2401 et seq.; 2 CFR part 200.

0
2. Add subpart C to part 910 to read as follows:

Subpart C--Conflicts of Interest, Conflicts of Commitment, 
Organizational Conflicts of Interest, and Other Matters of Concern

Sec.
910.200 Definitions.
910.210 Applicability.
910.220 Reserved.
910.230 Required conflict of interest (COI) and conflict of 
commitment (COC) policies.
910.240 Reporting conflicts of interest (COI) and conflicts of 
commitment (COC).
910.250 Organizational conflicts.
910.260 Reporting organizational conflicts of interest (OCI).
910.270 Remedies, penalties, and enforcement.
Appendix A to Subpart C of Part 910--Disclosure Certification 
Statement


Sec.  910.200   Definitions.

    For the purposes of this subpart, the following definitions are 
applicable:
    Conflict of commitment (COC) means a situation in which an 
individual accepts or incurs conflicting obligations, whether foreign 
or domestic, between or among multiple employers or other entities. 
This may include conflicting commitments of time and effort, including 
obligations to dedicate time in excess of institutional or DOE policies 
or commitments. Other types of conflicting obligations, including but 
not limited to, obligations to improperly share information with, or to 
withhold information from, an employer or DOE, can also threaten 
research, technology or economic security and integrity. Examples of 
situations that may give rise to conflicts of commitment include, but 
are not limited to, current or

[[Page 51465]]

pending employment; positions, appointments, or affiliations such as 
titled academic, professional, or institutional appointments, whether 
remuneration is received and whether full-time, part-time, or voluntary 
(including adjunct, visiting, or honorary positions); and participation 
in or applications to foreign government-sponsored talent recruitment 
or similar programs.
    Conflict of interest (COI) means a situation in which a covered 
individual or the spouse or a child of the covered individual has a 
significant financial interest or financial relationship, whether with 
a domestic or foreign entity, that could directly and significantly 
affect the design, conduct, reporting or funding of a project or other 
Federal financial assistance award-related activities. Examples of 
situations that may give rise to a COI include, but are not limited to, 
holding an executive position, director position, or equity over a 
certain dollar amount in a company that stands to benefit from Federal 
financial assistance award-related activities, receiving financial 
compensation in the form of consulting payments or payment for services 
from a company that stands to benefit from Federal financial assistance 
award-related activities, or intellectual property rights or royalties 
from such rights whose value may be affected by the outcome of Federal 
financial assistance award-related activities.
    Covered individual means any individual, regardless of title or 
position, who:
    (1) Contributes in a substantive, meaningful way to the development 
or execution (e.g., purpose, design, conduct, or reporting) of a 
project funded by DOE or proposed for funding by DOE; and,
    (2) Is designated as a covered individual by DOE. DOE designates as 
covered individuals any principal investigator (PI), project director 
(PD), co-principal investigator (Co-PI), co- project director (Co-PD), 
or project manager; and any individual (including an individual at the 
masters or baccalaureate level) that contributes in a substantive, 
meaningful way to the development or execution of a subject project 
that is listed by the non-Federal entity in the application for Federal 
financial assistance, approved budget, progress report, or any other 
report submitted to DOE by the non-Federal entity regarding the subject 
project.
    This list of designated covered individuals may be expanded if 
specified in the applicable funding opportunity announcement and/or 
terms and conditions of the Federal financial assistance award, to 
include individuals on the project team as covered individuals, 
including up to any person who participates in the purpose, design, 
conduct, or reporting of a project funded by DOE or proposed for 
funding by DOE, including, for example, collaborators, consultants, 
graduate (master's or Ph.D.) students, and postdoctoral associates.
    DOE means the U.S. Department of Energy and the National Nuclear 
Security Administration (NNSA).
    Financial interest means anything of monetary value, whether or not 
the value is readily ascertainable.
    Other support means all resources made available to a covered 
individual in support of and/or related to all of their professional 
research (including basic and fundamental research), development, 
demonstration, and/or deployment efforts, including resources provided 
directly to the covered individual rather than through the research 
organization, and regardless of whether or not they have monetary value 
(e.g., even if the support received is only in-kind, such as office/
laboratory space, equipment, supplies, or employees). This includes 
resource and/or financial support from all foreign and domestic 
entities, including but not limited to, gifts provided with terms or 
conditions, financial support for laboratory personnel, and 
participation of student and visiting researchers and visiting scholars 
supported by other sources of funding.
    Principal investigator (PI) means an individual identified to 
direct a project by an applicant to or recipient of a DOE Federal 
financial assistance award.
    Project means the interdependent activities funded wholly or in 
part under the DOE Federal financial assistance award. A project has a 
defined start and end point with objectives described in an application 
or in an approved scope that, when attained, signify completion and 
achievement of a specific goal, and creation of a unique product, 
service, or result. For Federal financial assistance awards that 
include recipient cost share as part of the approved budget, activities 
funded with that recipient cost share are included.
    Significant financial interest means:
    (1) A financial interest consisting of one or more of the following 
interests of the covered individual (and those of the covered 
individual's spouse and dependent children) that reasonably appears to 
be related to the covered individual's non-Federal entity 
responsibilities:
    (i) With regard to any foreign or domestic publicly traded entity, 
a significant financial interest exists if the value of any 
remuneration received from the entity in the twelve months preceding 
the disclosure and the value of any equity interest in the entity as of 
the date of disclosure, when aggregated, exceeds $5,000. For purposes 
of this definition, remuneration includes salary and any payment for 
services not otherwise identified as salary (e.g., consulting fees, 
honoraria, paid authorship); equity interest includes any stock, stock 
option, or other ownership interest, as determined through reference to 
public prices or other reasonable measures of fair market value;
    (ii) With regard to any foreign or domestic non-publicly traded 
entity, a significant financial interest exists if the value of any 
remuneration, not otherwise disclosed as current, pending, or other 
support, received from the entity in the twelve months preceding the 
disclosure, when aggregated, exceeds $5,000, or when the covered 
individual (or the covered individual's spouse or dependent children) 
holds any equity interest (e.g., stock, stock option, or other 
ownership interest);
    (iii) Intellectual property rights and interests (e.g., patents, 
copyrights), upon receipt of income related to such rights and 
interests.
    (2) Any reimbursed or sponsored travel (i.e., that which is paid on 
behalf of the covered individual and not reimbursed to the covered 
individual so that the exact monetary value may not be readily 
available) related to their institutional responsibilities that is not 
otherwise disclosed in current and pending or other support 
disclosures, but does not include travel that is reimbursed or 
sponsored by a Federal, state, or local government agency of the United 
States; a domestic Institution of Higher Education; or a domestic 
research institute that is affiliated with a domestic Institution of 
Higher Education.
    (3) The term significant financial interest does not include the 
following types of financial interests: salary, royalties, or other 
remuneration paid by the non-Federal entity to the covered individual 
if the covered individual is currently employed or otherwise appointed 
by the non-Federal entity, including intellectual property rights 
assigned to the non-Federal entity and agreements to share in royalties 
related to such rights; any ownership interest in the non-Federal 
entity held by the covered individual, if the non-Federal entity is a 
commercial or for-profit organization; income from investment vehicles, 
such as mutual funds and retirement accounts, as long as the

[[Page 51466]]

covered individual does not directly control the investment decisions 
made in these vehicles; income from seminars, lectures, or teaching 
engagements sponsored by a Federal, state, or local government agency 
of the United States, a domestic Institution of Higher Education, or a 
domestic research institute that is affiliated with a domestic 
Institution of Higher Education; or income from service on advisory 
committees or review panels for a Federal, state, or local government 
agency of the United States, a domestic Institution of Higher 
Education, or a domestic research institute that is affiliated with a 
domestic Institution of Higher Education.


Sec.  910.210   Applicability.

    (a) This subpart applies to any non-Federal entity that is an 
applicant to or recipient of a DOE Federal financial assistance award 
on or after [Date 30 days after date of publication of final rule], 
including any covered individual who plans to participate in or is 
participating in the project funded wholly or in part under the DOE 
Federal financial assistance award, and each non-Federal entity 
subrecipient under the Federal financial assistance award, subject to 
the following exceptions:
    (1) This subpart does not apply to DOE Office of Indian Energy 
applications and Federal financial assistance awards.
    (2) For an individual that is an applicant to or recipient of a DOE 
Federal financial assistance award the requirements of this subpart may 
be tailored to the extent determined appropriate by the applicable DOE 
program office.
    (b) [Reserved].


Sec.  910.220   Reserved.


Sec.  910.230   Required conflict of interest (COI) and conflict of 
commitment (COC) policies.

    (a) Any non-Federal entity that is an applicant to or recipient of 
a DOE Federal financial assistance award must maintain a written and 
enforced policy addressing actual, apparent, and potential COI and COC, 
both foreign and domestic. The non-Federal entity must make its written 
policy available within five business days following any request for 
the policy.
    (b) The policy required under paragraph (a) of this section must:
    (1) Designate a non-Federal entity official(s) to solicit and 
review COI and COC disclosures from each covered individual who is 
planning to participate in, or is participating in, the project funded 
under a DOE Federal financial assistance award;
    (2) Require review by the designated official(s) of all covered 
individuals' disclosures to determine whether an actual, apparent, or 
potential COI or COC exists; and, if so, require the designated 
official(s) determine the actions that have been and shall be taken to 
eliminate or, where appropriate, manage or reduce the conflict. 
Examples of conditions or restrictions that a recipient or subrecipient 
might impose to manage, reduce, or eliminate a conflict include, but 
are not limited to:
    (i) Public disclosure of the conflict (e.g., when presenting or 
publishing the project);
    (ii) For projects involving human subjects, disclosure of the 
conflict directly to participants;
    (iii) Appointment of an independent monitor or oversight committee 
capable of taking measures to protect the purpose, design, conduct, and 
reporting of the project against bias resulting from the conflict;
    (iv) Modification of the project plan;
    (v) Change of personnel or personnel responsibilities, or 
disqualification of personnel from participation in all or a portion of 
the project;
    (vi) Reduction or elimination of the financial interest (e.g., sale 
of an equity interest) or commitment; or
    (vii) Severance of relationship(s) that create the conflict.
    (3) Ensure that covered individuals have provided all required 
disclosures to the non- Federal entity no later than the time an 
application is submitted to DOE. In the event a non- Federal entity 
seeks to add a covered individual after the time of application, the 
non-Federal entity must require the covered individual make such 
disclosures prior to participating in a project funded under a DOE 
Federal financial assistance award.
    (4) Require each covered individual who is participating in the DOE 
Federal financial assistance award update those disclosures on an 
annual basis and as soon as any new actual, apparent, or potential COI 
or COC arises.
    (5) Require each disclosure be signed and dated by the covered 
individual and include the certification statement in appendix A of 
this subpart;
    (6) Require each covered individual to complete COI and COC 
training prior to engaging in projects funded under a DOE Federal 
financial assistance award and complete refresher training least every 
two years. The training must cover the non-Federal entity's COI and COC 
policy and the covered individual's responsibilities regarding 
disclosures. The non-Federal entity must require covered individual to 
complete COI and COC training within 30 days of any of the following 
circumstances:
    (i) The non-Federal entity revises its COI and COC policies or 
procedures in any manner that affects the responsibilities of a covered 
individual;
    (ii) A covered individual is new to a non-Federal entity; or
    (iii) A non-Federal entity finds that a covered individual is not 
in compliance with the non-Federal entity's COI and COC policy or 
applicable management plan.
    (7) With regard to reimbursed or sponsored travel, the non-Federal 
entity's COI and COC policy must require, at a minimum, reporting the 
purpose of the trip, the identity of the sponsor/organizer, the 
destination, and the duration. In accordance with the non-Federal 
entity's policy, the non-Federal entity official(s) will determine if 
further information is needed, including a determination or disclosure 
of monetary value, in order to determine whether the travel constitutes 
a COI or COC with the project funded under the DOE Federal financial 
assistance award; and
    (8) Include adequate enforcement mechanisms and provide for 
sanctions where appropriate.
    (c) Any non-Federal entity that receives a DOE Federal financial 
assistance award must ensure that subrecipients, if any, follow the 
requirements of this subpart by:
    (1) Incorporating as part of a written agreement with the 
subrecipient terms that establish either the COI and COC policy of the 
recipient or that of the subrecipient will apply to the subrecipient's 
covered individuals.
    (2) If the subrecipient's covered individuals must comply with the 
subrecipient's COI and COC policy, the subrecipient shall certify as 
part of the agreement referenced above that its policy complies with 
this subpart. If the subrecipient cannot provide such certification, 
the agreement shall state that subrecipient's covered individuals are 
subject to the COI and COC policy of the recipient;
    (3) Additionally, if the subrecipient's covered individuals must 
comply with the subrecipient's COI and COC policy, the agreement 
referenced above shall specify time period(s) for the subrecipient to 
report all identified financial COI and COC to the recipient. Such time 
period(s) shall be sufficient to enable the recipient to provide timely 
COI/COC reports, as necessary, to DOE, as required by this subpart;
    (4) Alternatively, if the subrecipient's covered individuals must 
comply with the recipient's COI and COC policy, the

[[Page 51467]]

agreement referenced above shall specify time period(s) for the 
subrecipient to submit all covered individual's disclosures to the 
recipient. Such time period(s) shall be sufficient to enable the 
recipient to comply timely with its review, management, and reporting 
obligations under this subpart.


Sec.  910.240   Reporting conflicts of interest (COI) and conflicts of 
commitment (COC).

    (a) Consistent with title 2 of the Code of Federal Regulation (CFR) 
200.112, Conflict of interest, a non-Federal entity that is an 
applicant to or recipient of DOE financial assistance must disclose to 
DOE in writing any actual, apparent, or potential COI or COC, including 
any actual, apparent, or potential COI or COC reported to the recipient 
by a subrecipient, if such conflict cannot be eliminated or 
appropriately managed or reduced in accordance with the entity's 
policy. In addition, such entity must disclose to DOE in writing any 
actual, apparent, or potential COI or COC, including any actual, 
apparent, or potential COI or COC reported to the recipient by a 
subrecipient, involving any foreign governments, their 
instrumentalities, or any other entities owned, funded, or otherwise 
controlled by a foreign government, as well as any measures the entity 
has taken to eliminate or, where appropriate, manage or reduce the COI 
or COC.
    (1) For all conflicts that require disclosure to DOE:
    (i) A non-Federal entity applying for DOE funding must clearly and 
explicitly disclose such conflict(s) in the application.
    (ii) In the event a non-Federal entity seeks to add a covered 
individual after the time of application, the non-Federal entity must 
clearly and explicitly disclose such conflict(s) in writing to DOE 
prior to the individual participating in the project.
    (2) If specified in the applicable funding opportunity announcement 
and/or terms and conditions of the Federal financial assistance award, 
a DOE program office may require the non- Federal entity disclose to 
DOE in writing all covered individuals' COIs and COCs, including those 
COIs and COCs determined by the non-Federal entity to be appropriately 
managed or reduced.
    (b) DOE may require the non-Federal entity to provide associated 
disclosures, supporting documentation to demonstrate how the COI or COC 
was managed or reduced; and sufficient information to enable DOE to 
understand the nature and extent of the COI or COC, and to assess 
whether the actions are sufficient to ensure the integrity of the DOE-
supported project and to protect the government's interests.
    (c) For any COI or COC previously reported by the non-Federal 
entity regarding an ongoing project funded under a DOE Federal 
financial assistance award, the non-Federal entity must provide DOE 
with an annual COI/COC report that addresses the status of the COI or 
COC and, if applicable, any changes to the management plan for the 
duration of the DOE Federal financial assistance award. The annual COI/
COC report must specify whether the conflict is still being managed or 
if it remains unmanaged/unmanageable. Alternatively, the annual COI/COC 
report must explain why the conflict no longer exists. The non-Federal 
entity must provide annual COI/COC reports to DOE for the duration of 
the project period (including extensions with or without funds) in the 
time and manner required by term and condition of the Federal financial 
assistance award.
    (d) In addition to the annual COI/COC report, DOE may require a 
non-Federal entity to routinely, or upon request, submit all or some 
covered individuals' disclosures. Circumstances when DOE may require a 
non-Federal entity to submit all or some of such covered individual 
disclosures include but are not limited to:
    (1) As part of monitoring the non-Federal entity's compliance with 
this subpart;
    (2) Bankruptcy of the non-Federal entity;
    (3) Other legal winding down of the non-Federal entity;
    (4) Acquisition of the non-Federal entity by a foreign entity, 
where ``acquisition'' includes a foreign entity obtaining a controlling 
interest in the non-Federal entity; or
    (5) As otherwise set forth in 2 CFR part 200 and this part.
    (e) If a non-Federal entity becomes aware that a covered individual 
failed to comply with the non-Federal entity's COI and COC policy or a 
management plan, the non-Federal entity must promptly notify DOE in 
writing of the failure to comply and of the corrective action taken or 
to be taken. DOE will evaluate the situation and, as necessary, take 
appropriate action, which may include referring the matter to the non-
Federal entity for further corrective action consistent with non-
Federal entity's established COI and COC policies, DOE directing the 
non-Federal entity to take specific mitigation measures, or termination 
of the Federal financial assistance award.


Sec.  910.250   Organizational conflicts.

    (a) Consistent with title 2 of the Code of Federal Regulation (CFR) 
200.318, if a non-Federal entity has a parent, affiliate, or subsidiary 
organization that is not a state government, local government, or 
Indian tribe, the non-Federal entity must maintain written standards of 
conduct covering organizational conflicts of interest (OCI) as that 
term is defined in 2 CFR 200.318(c)(2).
    (b) If the effects of a potential or actual OCI cannot be avoided, 
eliminated, or mitigated, the procurement or other transaction 
anticipated by the non- Federal entity must not be made using DOE or 
cost share funds.


Sec.  910.260   Reporting organizational conflicts of interest (OCI).

    (a) The non-Federal entity must disclose in writing any potential 
or actual OCI to DOE within five business days of learning of the 
conflict.
    (1) The non-Federal entity must provide the disclosure to DOE in an 
application for financial assistance and prior to engaging in a 
procurement or transaction using DOE funds with a parent, affiliate, or 
subsidiary organization that is not a state government, local 
government, or Indian tribe.
    (2) The disclosure must include, at a minimum, the following:
    (i) The name, address, and website (as applicable) of the entity 
that presents a potential or actual OCI;
    (ii) The relationship between the non-Federal entity and the entity 
at issue;
    (iii) The nature of the anticipated procurement or other 
transaction with the parent, affiliate, or subsidiary organization; the 
anticipated value of the procurement or other transaction; and the 
basis for making the procurement or other transaction with the parent, 
affiliate, or subsidiary organization;
    (vi) The basis for the non-Federal entity's determination regarding 
the existence of an OCI; and
    (v) How the non-Federal entity will avoid, eliminate, or mitigate 
the OCI.


Sec.  920.270   Remedies, penalties, and enforcement.

    (a)(1) If a non-Federal entity fails to disclose a conflict of 
interest (COI) or conflict of commitment (COC) as required under this 
subpart, or fails to sufficiently manage or mitigate a COI or COC to 
ensure the integrity of the DOE-supported project or to protect the 
government's interests, DOE may:
    (i) Require the non-Federal entity take action to eliminate or 
mitigate the

[[Page 51468]]

conflict to a risk level acceptable to DOE. In the event the non-
Federal entity does not eliminate or mitigate the conflict to a risk 
level acceptable to DOE, DOE may determine the Federal financial 
assistance award no longer effectuates the program goals or agency 
priorities and terminate the Federal financial assistance award;
    (ii) Determine the circumstances disqualify an entity or individual 
from participating in all or a portion of a Federal financial 
assistance award; or
    (iii) Reject an application.
    (2) DOE may inquire, at any time before, during, or after a Federal 
financial assistance award, into any covered individual's disclosures 
and the non-Federal entity's review (including any retrospective 
review) of and response to such disclosure, regardless of whether the 
disclosure resulted in the non-Federal entity's determination of a COI 
or COC. A non-Federal entity is required to submit or permit on-site 
review of all records pertinent to compliance with this subpart. To the 
extent permitted by law, DOE will maintain the confidentiality of all 
records of financial interests. Based on its review of records or other 
information that may be available, DOE may determine that a particular 
COI or COC will bias the objectivity of or adversely impact the project 
funded under the DOE Federal financial assistance award to such an 
extent that further corrective action is needed or that the non-Federal 
entity has not managed the COI or COC in accordance with this subpart. 
DOE may determine that the imposition of specific award conditions 
under 2 CFR 200.208 is necessary. DOE may also take one or more the 
actions specified under 2 CFR 200.339, as appropriate in such 
circumstances.
    (b) If a non-Federal entity fails to disclose an OCI to DOE prior 
to engaging in a procurement or transaction using DOE funds with a 
parent, affiliate, or subsidiary organization that is not a state, 
local government, or Indian tribe, the costs of such procurement or 
transaction may be disallowed. If a non-Federal entity fails to 
disclose an OCI to DOE that is not avoided, eliminated, or mitigated or 
fails to avoid, eliminate, or mitigate a disclosed OCI, prior to 
engaging in a procurement or transaction using DOE funds with a parent, 
affiliate, or subsidiary organization that is not a state, local 
government, or Indian tribe, DOE may determine that imposition of 
specific award conditions under 2 CFR 200.208 is necessary. DOE may 
also take one or more actions specified under 2 CFR 200.339, as 
appropriate in the circumstances.
    (c) Any false, fictitious, or fraudulent information, or the 
omission of any material fact, on a disclosure, report, or other record 
required under this subpart may be subject to criminal, civil, or 
administrative penalties for fraud, false statements, false claims or 
otherwise. (U.S. Code Title 18, Sections 287 and 1001; and Title 31, 
3729-3733 and 3801-3812).
    (d) If fraud, misrepresentation, or related misconduct is suspected 
in relation to any disclosure submitted to DOE, then the cognizant 
contracting officer and/or program official should coordinate with 
appropriate counsel and thereafter, as appropriate, refer the matter to 
the DOE Office of Inspector General (OIG).
    (e) If a covered individual knowingly fails to disclose required 
information, DOE may take one or more of the following enforcement or 
other actions:
    (1) Reject an application;
    (2) Suspend or terminate a Federal financial assistance award;
    (3) Temporarily or permanently discontinue or de-obligate any or 
all funding for the covered individual or non-Federal entity;
    (4) Refer recipients for consideration of suspension or debarment 
proceedings;
    (5) Refer the failure to disclose to the DOE OIG for further 
investigation or to Federal law enforcement authorities to determine 
whether any criminal or civil laws were violated;
    (6) Report the entity in the Federal Awardee Performance and 
Integrity Information System (FAPIIS) to alert other Federal agencies 
to the noncompliance;
    (7) Take one or more of the actions described in 2 CFR 200.339, 
Remedies for noncompliance; or
    (8) Take such other actions against the covered individual or non-
Federal entity as authorized under applicable law or regulations.

Appendix A to Subpart C of Part 910--Disclosure Certification Statement

    All disclosures required under this subpart must include the 
following certification statement:
    ``I understand that this Disclosure is required to obtain 
funding from the U.S. Government. I, [Full Name and Title], certify 
to the best of my knowledge and belief that the information 
contained in this Disclosure Statement is true, complete, and 
accurate. I understand that any false, fictitious, or fraudulent 
information, misrepresentations, half-truths, or omissions of any 
material fact, may subject me to criminal, civil or administrative 
penalties for fraud, false statements, false claims, or otherwise. 
(18 U.S.C. 287, 1001, and 1031, and 31 U.S.C. 3729-3733 and 3801-
3812). I further understand and agree that:
    (1) The statements and representations made herein are material 
to the U.S. Government's funding decision, and
    (2) I have a responsibility to update the disclosures during the 
period of performance of the Federal financial assistance award 
should circumstances change which impact the responses provided 
above.''

[FR Doc. 2024-13392 Filed 6-17-24; 8:45 am]
BILLING CODE 6450-01-P