Review of Existing Regulations for Modification or Elimination

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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