[Federal Register Volume 59, Number 218 (Monday, November 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27900]


[[Page Unknown]]

[Federal Register: November 14, 1994]


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DEPARTMENT OF ENERGY

Office of General Counsel

10 CFR Ch. II, III, and X; 18 CFR Ch. I; and 48 CFR Ch. 9

[Docket No. GC-NOI-94-110]

 

Review of Existing Regulations for Modification or Elimination

AGENCY: Department of Energy.

ACTION: Notice of inquiry.

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SUMMARY: This is the second step of an effort by the Department of 
Energy (DOE or Department) to involve the public in assessing 
opportunities for streamlining the Department's existing regulations. 
In a notice of inquiry published on March 1, 1994 (59 FR 9682), the 
Department sought public comments on general areas of its existing 
regulations that should be modified or eliminated. In this document, 
the Department seeks public comment on specific regulations that have 
been targeted for modification or elimination based on the earlier 
public comments. This streamlining effort is in response to Executive 
Order 12866, ``Regulatory Planning and Review.''
    This document also establishes a plan for performing similar 
reviews under the Regulatory Flexibility Act.

DATES: Written comments (10 copies) will be considered if received by 
the Department no later than December 29, 1994.

ADDRESSES: Written comments (10 copies) and the envelope should be 
marked, ``Second Notice of Inquiry, Docket No. GC-NOI-94-110.'' Written 
comments should be submitted to: U.S. Department of Energy, Office of 
General Counsel, GC-1, Attn: Romulo Diaz, Jr., 1000 Independence Avenue 
SW., Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Romulo L. Diaz, Jr., U.S. Department 
of Energy, 1000 Independence Avenue SW., Washington, DC 20585, (202) 
586-2902.

SUPPLEMENTARY INFORMATION:

I. Background

    This streamlining effort is in response to Executive Order 12866, 
``Regulatory Planning and Review,'' published October 4, 1993 (58 FR 
51735). The Executive Order requires that existing significant 
regulations be reviewed to: make them more effective in achieving 
regulatory objectives; reduce regulatory burden; or align them more 
closely with the President's priorities or principles of the Executive 
Order. DOE has expanded the scope of its review to include all of its 
existing regulations.
    It is the Department's intention to implement any modifications or 
revisions to existing regulations through appropriate administrative 
actions, including issuance of notices of proposed rulemaking.
    The Department published on March 1, 1994, a notice of inquiry 
(NOI) requesting that the public provide general comments on areas 
where existing DOE regulations should be modified or eliminated. The 
Department received 14 written public comments in response to that 
notice. Those comments, combined with an extensive internal review, 
were used as the basis for developing the list of potentially 
beneficial regulatory modifications or deletions set forth below.

II. Discussion

    Most of the public comments focused on the Department of Energy 
Acquisition Regulations (DEAR), although a few comments related to the 
Department's National Environmental Policy Act (NEPA) regulations and 
DOE's Institutional Conservation Program regulations.

Streamline Procurement Activities

    Many of the comments were based on recommendations formulated in 
January 1994 by a group of contractor purchasing managers representing 
eight of the Department's management and operating (M&O) contractors: 
PNL; Associated Universities, Inc.; Bechtel; EG&G, Inc.; FERMCO; 
Stanford University; Westinghouse; and the University of California. 
That group produced a report entitled ``DOE Contractor Purchasing, from 
Rigid Rules to Guiding Principles,'' (M&O Contractors' Report) which 
was submitted to Secretary O'Leary on January 31, 1994. Although the 
M&O Contractors' Report was prepared before the first NOI was issued, 
its recommendations are germane to a number of DOE efforts to 
streamline the DEAR.
    Pursuant to Executive Order 12861 (58 FR 48255, September 14, 
1993), the Department's Office of Human Resources and Administration 
has an effort underway to reduce internal regulatory guidance by a 
minimum of 50 percent. In fact, through a recent final rulemaking 
published on May 10, 1994 (59 FR 24357), the Department eliminated 
approximately ten percent of the DEAR, and is continuing its efforts to 
comply with Executive Orders 12861 and 12866 through an extensive 
regulatory analysis.
    An internal DOE task group is currently conducting a detailed 
review of the DEAR to identify additional areas for reduction. The 
initial effort of the task group is to eliminate unnecessary language 
from the DEAR, such as provisions that duplicate other regulations, or 
purely internal administrative provisions that should be included in an 
Acquisition Manual or Handbook. Later stages of the review will 
consider more substantive changes.
    In addition, several DOE task forces, established to implement a 
report of the Contract Reform Team, entitled ``Making Contracting Work 
Better and Cost Less'' (DOE/S-107), are considering recommendations 
that relate to M&O contractor regulations and practices. The comments 
received in response to the March 1, 1994, NOI have been forwarded to 
those groups.
    Those commenters addressing the DEAR reiterated their willingness 
to work with DOE on reducing unnecessary regulatory burdens. We would 
welcome the opportunity to work with M&O contractors and other DOE 
stakeholders on this effort.

Simplify NEPA Compliance

    With regard to suggestions for revisions to the Department's NEPA 
regulations (10 CFR Part 1021), the Department believes that a new 
Secretarial Policy addresses the substance of the public comments. 
(Secretarial Policy on the National Environmental Policy Act, U. S. 
Department of Energy, June 13, 1994.) Under the new policy, Secretary 
O'Leary has directed a number of actions to streamline the NEPA 
process, minimize the cost and time for document preparation and 
review, emphasize teamwork, and make the process more useful to 
decision makers and the public. The Secretary invited full Departmental 
participation, including contractors, to implement these new policies.

Improve Institutional Conservation Program (ICP)

    The States of New York, Vermont and Utah commented on the need to 
improve the flexibility of DOE's ICP regulations (10 CFR Part 455). 
Under the ICP, the Department provides matching funds for engineering 
studies and implementation of identified conservation measures. The 
commenters noted that Federal dollars, while not large, have provided 
the necessary leverage to spur many major energy conservation 
initiatives on behalf of schools and hospitals. The State of Vermont 
noted the program's ``well deserved reputation . . . for regulatory 
overload'' and urged that the Federal Government ``minimize [its] 
involvement in the administration of ICP to give the [S]tates the 
flexibility needed to operate this program in a more cost-effective 
manner.'' The State of New York, among other things, noted its concerns 
that the DOE regulations had not fully implemented the flexibility 
inherent in the State Energy Efficiency Programs Improvement Act of 
1990 (P.L. 101-440), and that delays in ICP approvals due to 
environmental reviews could be reduced by blanket exceptions for the 
ICP or clearer NEPA policy and procedures applicable to the ICP. Within 
the framework provided by DOE's NEPA regulations and the recently 
issued Secretarial Policy on NEPA, DOE has the flexibility for and has 
initiated certain NEPA process improvements, such as the preparation of 
a broad, programmatic NEPA assessment for the ICP to simplify and 
accelerate NEPA review for individual projects. The Department would 
welcome specific recommendations on how to modify existing ICP 
regulations consistent with statutory requirements, as well as whether 
any statutory revisions are needed.

Changes in Statutory Authorities and Mission

    DOE's Golden Field Office noted that the authorizing authority for 
geothermal loan guarantees and for alcohol, biomass and municipal waste 
projects has expired, so that 10 CFR Parts 791 and 799 should be 
eliminated. Moreover, the Golden Field Office commented that the 
Department had never entered into loans or loan guarantees for 
activities covered by 10 CFR Parts 792, 794, 796-798, nor have such 
activities received Congressional appropriations.
    The Department's Oak Ridge Operations Office suggested that 10 CFR 
Parts 760-766 be reviewed for possible modification in light of the 
Department's new emphasis on environmental management and shift away 
from nuclear weapons activities.

Proposed Targets

    Upon review of the comments received on the March 1, 1994, Federal 
Register notice and the Department's internal review, the Department 
has targeted the following regulations or areas for modification or 
elimination:
    (1) Eliminate regulations in 10 CFR Part 515 (Powerplant and 
Industrial Fuel Use Act).
    (2) Eliminate 10 CFR Part 791 (Electric and Hybrid Vehicle 
Research, Development, Demonstration, and Production Loan Guarantees).
    (3) Eliminate 10 CFR Part 799 (Loan Guarantees for Alcohol Fuels, 
Biomass Energy and Municipal Waste Projects).
    (4) Eliminate 10 CFR Part 792 (Loans for Reservoir Confirmation 
Projects).
    (5) Eliminate 10 CFR Part 794 (Loans for Development of Wind Energy 
Systems and Small Hydroelectric Power Projects).
    (6) Eliminate 10 CFR Part 796 (Federal Loan Guarantees for 
Alternative Fuel Demonstration Facilities).
    (7) Eliminate 10 CFR Part 797 (Loans for Small Hydroelectric Power 
Project Feasibility Studies and Related Licensing.
    (8) Eliminate 10 CFR Part 798 (Urban Wastes Demonstration 
Facilities Guarantee Program).
    (9) Modify 10 CFR Part 455 (Grants Programs for Schools and 
Hospitals and Buildings Owned by Units of Local Government and Public 
Care Institutions).
    (10) Modify 10 CFR Part 760 (Domestic Uranium Program).
    (11) Modify 10 CFR Part 761 (Criteria to Assess Viability of 
Domestic Uranium Mining and Milling Industry).
    (12) Modify 10 CFR Part 762 (Uranium Enrichment Services Criteria).
    (13) Modify 10 CFR Part 763 (Uranium Enrichment Late Payment 
Charges).

III. Plan Under the Regulatory Flexibility Act

    The Department is incorporating a requirement for regulatory review 
under the Regulatory Flexibility Act (RFA), (P.L. 96-354, 5 U.S.C. 601-
612), with the program for periodically reviewing existing regulations 
under Executive Order 12866. Among its provisions, the RFA requires 
each agency to publish in the Federal Register a plan for the periodic 
review of the agency's existing rules which have or will have a 
significant economic impact on a substantial number of small 
businesses, organizations, and governmental jurisdictions affected by a 
rule (5 U.S.C. 610). The purpose of the RFA review is to determine 
whether such rules should be continued without change, or should be 
amended or rescinded, consistent with the stated objectives of 
applicable statutes, to minimize any significant economic impact of the 
rules upon a substantial number of small entities. The plan must 
provide for the review of all such existing rules once within ten years 
of their promulgation as final rules. As part of its RFA plan, DOE is 
expanding the scope of the RFA review to include review of all of DOE's 
existing regulations, not just regulations with a significant economic 
impact upon a substantial number of small entities. This will be 
accomplished as part of the Department's periodic review of existing 
regulations under Executive Order 12866.

    Issued in Washington, DC on November 4, 1994.
Robert R. Nordhaus,
General Counsel.
[FR Doc. 94-27900 Filed 11-10-94; 8:45 am]
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