The Council on Governmental Relations (COGR), representing over 225 research universities and affiliated institutions, submitted comments regarding the U.S. Department of Energy’s (DOE) interim final rule updating regulations on Other Transaction (OT) agreements. COGR acknowledges DOE's efforts to expand the use of OT agreements but expresses significant concerns about the removal of provisions related to transparency, reporting requirements, cost-sharing expectations, and flow-down obligations that previously provided clarity to research institutions. COGR warns that the elimination of these key provisions could increase administrative burdens, create uncertainty regarding compliance, and result in inconsistent application across agreements, potentially hindering effective collaboration between research partners and the DOE.
Furthermore, COGR objects to the mandatory 50% cost-sharing requirement imposed in the new rule, noting that it places substantial financial strain on research institutions, small businesses, and nonprofits who may lack the financial capacity of large commercial entities. The organization contends that extending this requirement beyond commercial firms will limit participation, reduce competition, and compromise DOE’s ability to capitalize on a diverse range of research expertise. COGR urges DOE to restore public-facing, detailed guidance for OT agreements and to engage stakeholders in the development of balanced policy solutions that preserve both flexibility and clarity. The organization expresses readiness for continued dialogue to promote equitable, transparent, and effective management of OT agreements.
