[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]



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 Rules and Regulations
                                                 Federal Register
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 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 
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  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