DOE O 143.1A, Payments in Lieu of Taxes

AVAILABLE ONLINE AT: INITIATED BY: www.directives.doe.gov Office of the Chief Financial Officer U.S. Department of Energy ORDER Washington, DC Approved: 6-7-2023 SUBJECT: PAYMENTS IN LIEU OF TAXES 1. PURPOSE. To establish general Department of Energy (DOE) procedures and responsibilities with regard to 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). Public disclosure of DOE processes for handling PILT applications is contained in Attachment 1, “Payments In Lieu of Taxes Under the Atomic Energy Act of 1954; Guidelines,” 68 Federal Register (FR) 28822. 2. CANCELLATION. DOE O 143.1, Payments in Lieu of Taxes, dated 5-8-2003. Cancellation of a directive does not, by itself, modify or otherwise affect any contractual or regulatory obligation to comply with the directive. Changes in Federal law and regulation supersede this document. 3. APPLICABILITY. a. Departmental Applicability. To ensure overall consistency in exercising the statutory authorities that are vested in the Secretary as head of DOE, this order is applicable to all Departmental elements, including the National Nuclear Security Administration (NNSA), that manage property eligible for PILT payments, as specified in this Order. (1) The Administrator of NNSA will assure that NNSA employees and contractors comply with their respective responsibilities under this directive. Nothing in this Order will be construed to interfere with the NNSA Administrator’s authority under section 3212(d) of Public Law 106-65 to establish Administration-specific policies, unless disapproved by the Secretary. (2) In accordance with the responsibilities and authorities assigned by Executive Order 12344, codified at 50 USC sections 2406 and 2511 and to ensure consistency through the joint Navy/DOE Naval Nuclear Propulsion Program, the Deputy Administrator for Naval Reactors (Director) will implement and oversee requirements and practices pertaining to this Directive for activities under the Director's cognizance, as deemed appropriate. b. Exclusions. This Order does not apply to payments made under authorities other than section 168 of the Atomic Energy Act of 1954, including payments or collections made under the authority of the Atomic Energy Community Act of 1955, as amended; the Uranium Mill Tailings Radiation Control Act of 1978, as amended; and the Nuclear Waste Policy Act of 1982. DOE O 143.1A http://www.directives.doe.gov/ 2 DOE O 143.1A 6-7-2023 4. REQUIREMENTS. a. Information Required for PILT Applications. (1) Departmental Elements shall ensure that the application for an initial or revised PILT payment contains the information prescribed in 68 FR 28822 (Appendix A) prior to processing the application. (2) As necessary, the Departmental Element shall request additional information from the taxing authority to enable a full review of the application. b. Review of PILT Applications by Departmental Elements and Field or Site Counsel (when applicable). (1) Determine 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) Request information provided by the applicant regarding other Federal payments received or expected which may be for the same identifiable, discrete purpose as requested PILT payment (e.g., support payments from the Department of Education).

(3) Examine the tax rates and assessments applied to properties elsewhere in the same taxing authority’s jurisdiction with a similar purpose and use. (4) Assess whether the proposed PILT payments are fair and consistent with other similar properties elsewhere in the same taxing authority’s jurisdiction. (5) Review other information sufficient to support the recommendation concerning the application. If approval is recommended, the information must include: (a) The amount to be paid, and (b) The date first payment is to be made. c. Recommendations for Acceptance. A recommendation from the Head of the Departmental Element to the Chief Financial Officer concerning an application for initial PILT payments or revised PILT payments must contain: (1) An evaluation of the facts warranting approval of the application, as appropriate, including the assessment provided by the Head of the Field Element. (2) DOE General Counsel and NNSA General Counsel (when applicable) concurrence with the application. DOE O 143.1A 3 6-7-2023 (3) A statement that funding is available for the initial recommended PILT payment. (4) A statement that amounts for future PILT payments to the applicant(s) will be included in future program budget requests. d. Payments of Approved PILT Agreements. (1) Payments shall not be made without an approved intergovernmental agreement that specifies the key determinants of approved PILT payments. (2) PILT payments are recorded as obligations in the period in which they are authorized to be paid and due. The PILT intergovernmental agreement serves as the obligating document. (3) Once authorized, payments may continue subject to the availability of funds or modifications by the PILT intergovernmental agreement and review of PILT payment requests by the Departmental Element Offices Administering PILT Agreements, consistent with the responsibilities specified in section 5.e. of this Order. (4) Invoices provided by the taxing authority must be assessed for consistency with the approved intergovernmental agreement prior to payment. (5) Payments must be made from the Program, Project, or Activity identified in the legally incorporated chart (as applicable) accompanying the relevant Appropriations Act. e. Budget Requests. Funds budgeted for future PILT payments must be specifically identified in the documentation supporting budget requests in accordance with OMB Circular A-11, Part 4, “Instructions on Budget Execution.” 5. RESPONSIBILITIES. a. The Chief Financial Officer (1) Approves, or disapproves, for the Secretary, applications for initial PILT payments or revised PILT payments provided by the Head of the Departmental Element after obtaining the concurrence of the Office of General Counsel and NNSA General Counsel (when applicable). For PILT applications or payments relating to real property controlled or under the direct jurisdiction of NNSA, if the Chief Financial Officer, and 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) Includes funding for approved PILT payments, as requested by Heads of Departmental Elements, in DOE’s budget submission to OMB. 4 DOE O 143.1A 6-7-2023 (3) Ensures that appropriated and apportioned funds for PILT payments are allotted. (4) Maintains records and documentation provided by the Head of the Departmental Element to support approved PILT payments, including current PILT intergovernmental agreements.

(5) Maintains record of annual PILT payments made by Departmental Elements. b. The Senior Real Property Officer: (1) Maintains records of DOE real property that is subject to the provisions of section 168 of the Atomic Energy Act of 1954. (2) Notifies the Office of the CFO when the ownership of land subject to existing PILT intergovernmental agreements is transferred from the Department of Energy, or when land is acquired that is subject to the provisions of section 168 of the Atomic Energy Act of 1954. c. General Counsel and NNSA General Counsel (when applicable): (1) Reviews a taxing authority’s application for initial 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 and legal requirements. (2) Reviews and concur or non-concur in recommendations for action regarding applications for initial PILT payments or revised PILT payments. (3) Reviews and concurs or non-concurs on the eligibility of the applicant requesting PILT payments to receive such payments. (4) Reviews and concurs or non-concurs on PILT intergovernmental agreements between DOE and each taxing authority requesting PILT payments. (5) Provides legal advice on other matters relating to PILT applications and payments as necessary. d. Field or Site Counsel (when applicable): (1) Reviews a Taxing Authority’s applications for initial PILT payments or Revised PILT payments and provide a preliminary legal analysis in writing of whether the information presented by the applicant is consistent with statutory requirements and DOE PILT policy and guidelines. DOE O 143.1A 5 6-7-2023 (2) Reviews and concurs or non-concurs on the eligibility of an applicant requesting PILT payments to receive such payments. (3) Reviews and recommends to the General Counsel and NNSA General Counsel (when applicable) concurrence or non-concurrence on proposed PILT intergovernmental agreements. (4) Provides legal advice on other matters relating to PILT applications, payments, and administration as needed. e. Heads of Departmental Elements: (1) Provides applications for initial PILT payments and revised PILT payments to the Chief Financial Officer when recommending that the application be approved. (2) Verifies that funding is available when recommending approval of new or revised PILT applications. (3) Includes amounts for planned future PILT payments in budget requests. (4) Ensures appropriate review of invoices prior to payment, including an assessment of consistency between the invoice and the approved PILT intergovernmental agreement. (5) Establishes responsibilities within the Departmental Element for the administration of PILT agreements, payments, and applications for each taxing jurisdiction (Departmental Element Office Administering PILT Agreements). f. Departmental Element Offices Administering PILT Agreements: (1) Manages the administration of PILT payments. (2) Analyzes requests for initial PILT payments or revised PILT payments for consistency with DOE’s PILT policy guidelines. (3) Consults with General Counsel or NNSA General Counsel (when applicable) regarding applications for initial or revised PILT payments. (4) Prepares recommendations on applications for initial PILT payments or revised PILT payments and submit the recommendations to the Head of the Departmental Element, which is responsible for budgeting for PILT payments.

(5) Ensures that PILT payments are made in accordance with duly executed PILT intergovernmental agreements. 6 DOE O 143.1A 6-7-2023 (6) Ensures that legal documentation for DOE’s real property for which the office has cognizance is maintained as complete and current. (7) Monitors DOE’s real property inventory database for property (all real property, not just section 168 property) for which the office has cognizance to ensure that the database is complete and accurate and notify the Senior Real Property Officer of required changes. (8) Notifies the Senior Real Property Officer when the ownership of land subject to existing PILT intergovernmental agreements is proposed to be transferred from the DOE, or when land is proposed to be acquired that is subject to the provisions of section 168 of the Atomic Energy Act of 1954. (9) Maintains documentation to support PILT payments and invoices as agreed to in the PILT intergovernmental agreement. (10) Requests additional information, as needed, to support basis of payment, invoices, audits, or change requests to PILT payments and ensure PILT invoices are compliant with this policy. (11) Reviews PILT invoices when received and paid for consistency with agreed upon basis of payment, and amount, specified in the PILT intergovernmental agreement. (12) Initiates action to revise PILT intergovernmental agreements as appropriate and reduce PILT payments when the ownership of land subject to existing PILT intergovernmental agreements is transferred from the Department of Energy. (13) Provides the Office of the CFO information on PILT payments annually, or when requested by CFO. g. Contracting Officers: (1) Executes PILT intergovernmental agreements consistent with DOE’s PILT policy guidelines with the appropriate taxing authority or authorities for jurisdictions that are approved to receive PILT payments. The PILT intergovernmental agreement will set forth the terms and procedures for billing, payments, and revisions. (2) Submits PILT intergovernmental agreements to General Counsel and NNSA General Counsel (when applicable) for concurrence prior to execution. (3) Ensures that PILT intergovernmental agreements are consistent with approved PILT applications. DOE O 143.1A 7 6-7-2023 h. The Office of Congressional and Intergovernmental Affairs coordinates with the Departmental Element offices administering PILT Agreements as appropriate to promote consistency on DOE relationships with state and local governments. 6. INVOKED STANDARDS. This Order does not invoke any DOE technical standards or industry standards as required methods. Note: DOE O 251.1, current version, provides a definition for “Invoked Technical Standard.” 7. REFERENCES. a. Section 168 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2208), which provides authority for PILT payments to State and local governments. b. 68 FR 28822, 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.

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. Improving America’s Schools Act of 1994, Public Law No.103-382, 20 U.S.C. 7702, which provides for payments to Federally impacted school districts. g. OMB Circular A-11, “Preparation, Submission, and Execution of the Budget,” which contains instructions relating to apportionments and reports on budget execution. 8. CONTACT. Address questions regarding this Order to the CFO Office of Financial Policy and Audit Resolution. BY ORDER OF THE SECRETARY OF ENERGY: DAVID M. TURK Deputy Secretary DOE O 143.1A Appendix A 6-7-2023 Page A-1 Appendix A DOE O 143.1A Page A-2 6-7-2023 1. PURPOSE. To establish general Department of Energy (DOE) procedures and responsibilities with regard to 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 ... 2. CANCELLATION. DOE O 143.1, Payments in Lieu of Taxes, dated 5-8-2003. Cancellation of a directive does not, by itself, modify or otherwise affect any contractual or regulatory obligation to comply with the directive. Changes in Federal law and regu... 3. APPLICABILITY. a. Departmental Applicability. To ensure overall consistency in exercising the statutory authorities that are vested in the Secretary as head of DOE, this order is applicable to all Departmental elements, including the National Nuclear Security Admini... b. Exclusions. This Order does not apply to payments made under authorities other than section 168 of the Atomic Energy Act of 1954, including payments or collections made under the authority of the Atomic Energy Community Act of 1955, as amended; the... 4. REQUIREMENTS. (a) The amount to be paid, and (b) The date first payment is to be made. 5. RESPONSIBILITIES. 6. INVOKED STANDARDS. This Order does not invoke any DOE technical standards or industry standards as required methods. Note: DOE O 251.1, current version, provides a definition for “Invoked Technical Standard.” 7. REFERENCES. 8. CONTACT. Address questions regarding this Order to the CFO Office of Financial Policy and Audit Resolution.