DOE O 143.1, Payments in Lieu of Taxes

U.S. DEPARTMENT OF ENERGY ORDER Washington, D.C. DOE O 143.1 Approved: 5-8-03 Certified: 1-31-07 This directive was reviewed and certified as current and necessary by James T. Campbell, Acting Director, Office of Management, Budget and Evaluation/Acting Chief Financial Officer, 5-08-03. SUBJECT: PAYMENTS IN LIEU OF TAXES 1. PURPOSE. To establish general Department of Energy (DOE) procedures and responsibilities with regard to processing applications for payments in lieu of taxes (PILT) to certain State and local governments under the authority of section 168 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2208). The policies and defined terms related to these payments are contained in Attachment 1, “Payments In Lieu of Taxes Under the Atomic Energy Act of 1954; Guidelines,” Fed. Reg. 28822 (2003). 2. CANCELLATION. DOE 2100.12A, PAYMENTS FOR SPECIAL BURDENS AND IN LIEU OF TAXES, of 6-9-92. 3. EXCLUSIONS. This Order does not apply to sites where payments are made to State and local governments under the Atomic Energy Community Act of 1955, as amended; the Uranium Mill Tailings Radiation Control Act of 1978, as amended; or the Nuclear Waste Policy Act of 1982, or to payments made by DOE under those laws. 4. APPLICABILITY. To ensure overall consistency in exercising the statutory authorities that are vested in the Secretary as head of DOE, the Departmental guidance established in this Order is applicable to all Departmental elements, including the National Nuclear Security Administration (NNSA). 5. REFERENCES. a. Section 168 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2208), which provides for PILT payments to State and local governments. b. Fed. Reg. 28822 (2003), which publishes, without significant change, policy guidelines DOE uses to guide decisions with regard to applications by State or local governments for discretionary PILT payments with regard to real property that is not subject to State or local taxation because it is owned by the United States; was taken off the tax rolls upon acquisition by the United States; and is used to carry out activities authorized by the Atomic Energy Act of 1954. c. Atomic Energy Community Act of 1955, 42 U.S.C. 2301, et seq., which provides for termination of Government ownership and management of communities owned by the Atomic Energy Commission. DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Management, Budget and Evaluation/Chief Financial Officer 2 DOE O 143.1 5-8-03 d. Nuclear Waste Policy Act of 1982, 42 U.S.C. 10101, et seq., which provides for payments equal to taxes to jurisdictions affected by proposed or selected nuclear waste sites. e. Uranium Mill Tailings Radiation Control Act of 1978, as amended, 42 U.S.C. 7901, et seq., which authorizes a program of assessment and remedial action at inactive uranium mill tailings sites. f. Public Law No.103-382, 20 U.S.C. 7702, which provides for payments to Federally impacted school districts. g. Office of Management and Budget (OMB) Circular A-11, “Preparation, Submission, and Execution of the Budget,” which contains instructions relating to apportionments and reports on budget execution. 6. BACKGROUND. The Atomic Energy Act of 1954 gives the Secretary of Energy broad authority in making PILT payments. The amounts, the timing, and the terms of the payments are at the discretion of the Secretary. 7. RESPONSIBILITIES. a. Director, Office of Management, Budget and Evaluation/Chief Financial Officer shall:

(1) Approve, for the Secretary, applications for new PILT payments or Revised PILT Payments after obtaining the concurrence of the Office of General Counsel. For PILT applications or payments relating to real property controlled or under the direct jurisdiction of NNSA, if the Director, Office of Management, Budget and Evaluation/Chief Financial Officer, and the Administrator, NNSA, disagree on whether a PILT application should be approved or PILT payment made, the decision on whether to approve the application or make the payment will be made by the Deputy Secretary; (2) Review and determine appropriate action on recommendations from Heads of Program Offices regarding new PILT applications or Revised PILT applications; (3) Ensure that funding for approved PILT payments, as requested by Heads of Program Offices, is included in DOE’s budget submission to OMB and to Congress; (4) Ensure that appropriated and apportioned funds for PILT payments are properly allotted; and (5) Maintain an inventory database of DOE real property that is subject to the provisions of section 168 of the Atomic Energy Act of 1954. 3 DOE O 143.1 5-8-03 b. General Counsel shall: (1) Review and concur or nonconcur in recommendations for action regarding applications for new PILT payments or Revised PILT Payments. General Counsel’s review shall include consideration of the information provided by Field Counsel pursuant to subparagraph 7c(1) of this Order; (2) Review and concur or nonconcur on the eligibility of the applicant requesting PILT payments to receive such payments; (3) Review and concur or nonconcur on intergovernmental agreements between DOE and each Taxing Authority requesting PILT payments; and (4) Provide legal advice on other matters relating to PILT applications and payments. c. Field Counsel shall: (1) Review applications for new PILT payments or Revised PILT Payments and provide a written opinion verifying that the information presented by the applicant is consistent with DOE PILT policy guidelines. Field Counsel’s opinion shall also report on the tasks assigned in subparagraphs 7c(2) and 7c(3); (2) Review and concur or nonconcur on the eligibility of the applicant requesting PILT payments to receive such payments; (3) Review and concur or nonconcur on intergovernmental agreements between DOE and each Taxing Authority requesting PILT payments; and (4) Provide legal advice on other matters relating to PILT applications and payments. d. Heads of Field Elements shall: (1) Manage the administration of PILT payments; (2) Analyze requests for new PILT payments or Revised PILT Payments to ensure that approval of the application will be consistent with DOE’s PILT policy guidelines; (3) Prepare recommendations on applications for new PILT payments or Revised PILT Payments and submit the recommendations to the Head of Program Office who is responsible for budgeting for PILT payments; (4) Ensure that PILT payments are made in accordance with duly executed intergovernmental agreements; 4 DOE O 143.1 5-8-03 (5) Ensure that legal documentation for DOE’s real property for which the Field Element has cognizance is maintained as complete and current; and (6) Monitor DOE’s real property inventory database for property (all real property, not just section 168 property) for which the Field Element has cognizance to ensure that the database is complete and accurate.

e. Heads of Program Offices shall: (1) Review and forward a positive or negative recommendation regarding applications for new PILT payments and Revised PILT Payments to the Director, Office of Management, Budget and Evaluation/Chief Financial Officer; and (2) Ensure that funding is available when approval is recommended for applications for new PILT payments or Revised PILT Payments, and ensure that amounts for future PILT payments are included in Program Office budget requests. f. Procurement Officers shall: (1) Execute separate intergovernmental agreements consistent with DOE’s PILT policy guidelines with each Taxing Authority that has been approved to receive PILT payments. The agreement will set forth the terms and procedures for billing, making payments, and revisions. (2) Submit intergovernmental agreements to Field Counsel and General Counsel for concurrence prior to execution. 8. PROCEDURES. a. A recommendation from the Head of Field Element concerning an application for new PILT payments or Revised PILT Payments must contain an evaluation of the application, including the following: (1) A determination whether or not the subject real property meets the eligibility criteria for PILT payments established by the Atomic Energy Act of 1954, as amended; (2) An assessment of the information provided by the applicant relative to other Federal payments received or expected which may be for the same identifiable, discrete purpose as PILT payments proposed to be made under 42 U.S.C. 2208; (3) An examination of the tax rates and assessments applied to similar properties elsewhere in the same Taxing Authority’s jurisdiction to assure that PILT payment requests are fair and consistent; and DOE O 143.1 5-8-03 5 (and 6) (4) The work papers and other information sufficient to support the recommendation concerning the application. If approval is recommended, the information will include: (a) The amount to be paid; (b) The date first payment is to be made; and (c) Field Counsel’s written legal opinion described in subparagraph 7c(1) of this Order. b. A recommendation from the Head of Program Office concerning an application for new PILT payments or Revised PILT Payments must contain: (1) An evaluation of the facts warranting approval or nonapproval of the application, as appropriate; (2) A statement that funding is available when approval of an application is recommended; and (3) A statement that amounts for future PILT payments to the applicant(s) will be included in Program Office budget requests. c. Once authorized, payments may continue subject to the availability of funds or modifications by intergovernmental agreement. d. The intergovernmental agreement serves as the obligating document. 9. FUNDS FOR PAYMENTS. Funds must be available for payments recommended for approval. Funds budgeted for future payments must be specifically identified in the documentation supporting budget requests. In accordance with OMB Circular A-11, Part 4, “Instructions on Budget Execution,” PILT payments are recorded as obligations in the period in which they are authorized to be paid and due. 10. CONTACT. Contact the Office of Financial Policy at (202) 586-4860 for additional information and guidance regarding this Order. SPENCER ABRAHAM Secretary of Energy DOE O 143.1 Attachment 1 5-8-03 Page 1 Attachment 1 DOE O 143.1 Page 2 5-8-03 Microsoft Word - o143.1Certified.doc 1. PURPOSE 2. CANCELLATION 3. EXCLUSIONS 4. APPLICABILITY 5. REFERENCES 6. BACKGROUND 7. RESPONSIBILITIES a. Director, Office of Management, Budget and Evaluation/Chief Financial Officer b. General Counsel c. Field Counsel d. Heads of Field Elements e. Heads of Program Offices f. Procurement Officers 8. PROCEDURES 9. FUNDS FOR PAYM 10. CONTACT ATTACHMENT 1 - Federal Register