Department of Energy (DOE) Conflict of Interest Policy

1. Policy Overview

Per DOE Financial Assistance Letter 2022-02, the DOE Interim COI Policy “largely align[s]” with the Public Health Service (PHS) COI Regulations (42 CFR Part 50, Subpart F). As such, NHU Energy has adopted a comprehensive COI policy that addresses both DOE and PHS requirements.

Our institutional policy has been expanded to apply to all DOE financial assistance applications and awards, with the exception of those from the Office of Indian Energy and Phase I SBIR/STTR applications and financial assistance awards. Therefore, investigators applying for or receiving new DOE funding after June 18, 2022, will follow our institutional COI policy for compliance with the DOE Interim COI Policy.

The DOE Interim COI Policy may have additional or slightly different requirements from the PHS COI Regulations. Investigators need to be aware of these differing areas for full compliance with the DOE Interim COI Policy. DOE may provide future clarifications as to how its DOE Interim COI Policy aligns with the PHS COI Regulations. These differences are identified in the sections below.

2. Applicability

Who Must Comply

This policy applies to:

• All Investigators who are planning to participate in or are participating in projects funded under DOE financial assistance awards
• Principal Investigators on all DOE-funded projects
• Any person responsible for the purpose, design, conduct, or reporting of DOE-funded research
• Institutional Officials responsible for soliciting and reviewing disclosures and managing conflicts

Covered Awards

This policy applies to the following DOE funding mechanisms:

• Grants
• Cooperative Agreements
• Technology Investment Agreements
• Formula Financial Assistance Awards
• Non-competitively Selected Awards

Exclusions

This policy does not apply to:

• Office of Indian Energy awards
• Phase I SBIR/STTR applications and awards
• DOE contracts (different requirements apply)

Effective Date

The DOE Interim COI Policy is effective for:

• All DOE financial assistance awards issued on or after June 18, 2022
• All DOE formula financial assistance awards on or after June 18, 2022
• All non-competitively selected financial assistance awards on or after June 18, 2022

3. Certifying Disclosures of Significant Financial Interest

Required Certification Language

All DOE investigators must use the following certification language:

When Certification is Required

• At the time of proposal submission
• Annually during the period of award
• Within 30 days of discovering or acquiring a new significant financial interest
• Upon any material change to previously disclosed information

Format of Certification

The certification may be completed:

• Electronically: Through our online disclosure portal with electronic signature
• By Paper: Using a printed form with handwritten signature
• Integrated: As part of the disclosure form itself
• Separate Document: As a standalone certification that accompanies the disclosure

4. Definition of “Financial Conflict of Interest”

Key Differences to Note

The DOE definition is broader than PHS in two ways:

1. Financial Relationships: DOE includes both SFIs and “financial relationships” that may not involve ownership or financial interests as traditionally defined
2. Funding Impact: DOE explicitly includes situations that could affect the funding of the project, not just the design, conduct, or reporting

What Constitutes a Significant Financial Interest (SFI)?

A Significant Financial Interest consists of one or more of the following interests of the Investigator (and those of the Investigator’s spouse and dependent children) that reasonably appears to be related to the Investigator’s institutional responsibilities:

Publicly Traded Entities

With regard to any publicly traded entity, a Significant Financial Interest exists if the value of any remuneration received from the entity in the twelve months preceding the disclosure and the value of any equity interest in the entity as of the date of disclosure, when aggregated, exceeds $5,000.

Non-Publicly Traded Entities

With regard to any non-publicly traded entity, a Significant Financial Interest exists if:

• The value of any remuneration received from the entity in the twelve months preceding the disclosure, when aggregated, exceeds $5,000, OR
• The Investigator (or the Investigator’s spouse or dependent children) holds any equity interest (regardless of value)

Intellectual Property

Intellectual property rights and interests (e.g., patents, copyrights), upon receipt of income related to such rights and interests (see Section 10 below for DOE-specific requirements)

Reimbursed or Sponsored Travel

Reimbursed or sponsored travel related to institutional responsibilities (see Section 9 below for DOE-specific requirements)

What is NOT an SFI?

The following are excluded from the definition of Significant Financial Interest:

• Salary, royalties, or other remuneration paid by NHU Energy to the Investigator
• Intellectual property rights assigned to NHU Energy and agreements to share in royalties related to such rights
• Income from investment vehicles (e.g., mutual funds, retirement accounts) if the Investigator does not directly control investment decisions
• Income from seminars, lectures, or teaching engagements sponsored by governmental agencies, institutions of higher education, academic teaching hospitals, medical centers, or research institutes affiliated with institutions of higher education
• Income from service on advisory committees or review panels for governmental agencies, institutions of higher education, academic teaching hospitals, medical centers, or research institutes affiliated with institutions of higher education

5. Definition of “Investigator”

Who Qualifies as an Investigator at NHU Energy?

Under our institutional policy, the following individuals are typically considered Investigators:

• Principal Investigators (PIs): The lead scientist or engineer responsible for the project
• Co-Principal Investigators (Co-PIs): Individuals sharing PI responsibilities
• Project Directors: Those with overall management responsibility for the project
• Co-Investigators: Senior personnel contributing substantially to the project
• Key Personnel: Other individuals designated in the proposal or award as essential to project success
• Subrecipient Investigators: Investigators at subrecipient organizations participating in the project

Understanding “Responsible” vs. “Participates”

“Responsible” (Standard Definition – Currently Used)

An individual is responsible for the design, conduct, or reporting of research when they have a significant role in directing or overseeing these activities. This typically includes decision-making authority regarding:

• Research methodology and experimental design
• Data collection and analysis approaches
• Interpretation of results
• Publication and reporting decisions

“Participates” (If FOA Expands Definition)

If a DOE program office expands the definition, an individual participates when they take part in research activities without necessarily having decision-making authority. This could include:

• Research assistants and technicians
• Graduate students and postdoctoral researchers
• Support staff involved in data collection
• Collaborators with limited roles

When to Expand the Definition

Always review the DOE Funding Opportunity Announcement and award terms and conditions. If they explicitly expand the definition to include “participants,” you must collect disclosures from all individuals who participate in the purpose, design, conduct, or reporting of the project.

6. Retrospective Reviews

When Retrospective Reviews Are Required

A retrospective review must be conducted whenever:

• Untimely Identification: An FCOI is not identified or managed in a timely manner, including failure to identify an FCOI prior to expenditure of funds
• Noncompliance: An Investigator fails to comply with a management plan
• Inadequate Management: A management plan appears to have been inadequate to manage an FCOI

Timeline for Retrospective Reviews

Retrospective reviews must be completed within 120 days of NHU Energy’s determination of noncompliance.

Components of a Retrospective Review

The retrospective review must:

1. Assess Bias: Determine whether any research conducted during the time period of noncompliance was biased in the design, conduct, or reporting
2. Document Findings: Thoroughly document the review process and all findings
3. Submit Mitigation Report: Submit a mitigation report to DOE if bias is found
4. Follow Enhanced Reporting: Comply with any enhanced reporting requirements specified by the DOE program office

Mitigation Report Contents

If bias is found, the mitigation report must include:

• Project Identification: Project number and title
• Personnel: Project Director/Principal Investigator name
• Conflicted Individual: Name of the Investigator with the FCOI
• Entity: Name of the entity with which the Investigator has an FCOI
• Reason for Review: Explanation of why the retrospective review was required
• Detailed Findings: Comprehensive description of the review findings
• Corrective Actions: Description of actions taken or to be taken to mitigate any bias and/or to eliminate the FCOI going forward

Enhanced Reporting Requirements

After submitting a mitigation report, DOE may require:

• More Frequent Reporting: FCOI reports submitted quarterly, semi-annually, or at other intervals (not just annually)
• Progress Reports: Updates on implementation of corrective actions
• Additional Documentation: Supplementary materials as requested by the DOE program office

7. Reporting FCOIs to the Sponsor

Types of FCOI Reports

Reports of Unmanaged/Unmanageable FCOIs (Always Required)

These reports must be submitted:

• Prior to expenditure of funds if an unmanaged or unmanageable FCOI is identified before the award
• Within 60 days of identification for FCOIs identified during an ongoing project

An FCOI is considered unmanageable when no reasonable management plan can adequately protect the integrity of the DOE-funded research.

Reports of Managed FCOIs (Required Only If Specified in FOA/Award)

Check the FOA and award terms and conditions. If required, submit reports of managed FCOIs:

• Prior to expenditure of funds for FCOIs identified before award
• Within 60 days for FCOIs identified during the project
• Annually thereafter for the duration of the project

FCOI Report Contents

All FCOI reports submitted to DOE must include the following information:

Project Information

• Project number (DOE award number)
• PD/PI or contact PD/PI if multiple PD/PI model is used
• Project title

Investigator and Entity Information

• Name of Investigator with FCOI
• Name of entity with which the Investigator has an FCOI

Financial Interest Details

• Nature of the financial interest: Description of the type of interest (e.g., equity, consulting fees, intellectual property)
• Value of the financial interest: Dollar ranges are permissible:
  • $0-$4,999
  • $5,000-$9,999
  • $10,000-$19,999
  • Amounts between $20,000-$100,000 by increments of $20,000
  • Amounts above $100,000 by increments of $50,000
  Or a statement that the interest is one whose value cannot be readily determined through reference to public prices or other reasonable measures of fair market value

Conflict Analysis

• Description of relationship to research: How the financial interest relates to the DOE-funded research
• Basis for determination: Explanation of why the financial interest is determined to conflict with the research

Management Plan Elements (if FCOI is managed)

• Role and principal duties: Description of the conflicted Investigator’s role and responsibilities in the research project
• Conditions of the management plan: Specific actions, restrictions, or conditions imposed
• Safeguards for objectivity: Explanation of how the management plan is designed to safeguard objectivity in the research project
• Investigator agreement: Confirmation that the Investigator has agreed to the management plan
• Monitoring procedures: Description of how the management plan will be monitored to ensure compliance
• Other information: Any other relevant information as needed

Annual FCOI Reports

For the duration of the project period (including any extensions), NHU Energy will provide an annual FCOI report to DOE that addresses:

• The status of the FCOI
• Any changes to the management plan
• Compliance with the management plan
• New FCOIs identified during the reporting period

Annual reports must be submitted until the completion of the project or elimination of the FCOI, whichever comes first.

Additional Reporting Occasions

Beyond initial and annual reports, NHU Energy must report to DOE:

• New FCOIs: Within 60 days of identifying a new FCOI during an ongoing project
• Material Changes: When there are material changes to a previously reported FCOI or management plan
• Noncompliance: When an Investigator fails to comply with a management plan
• Retrospective Review Results: Following completion of a retrospective review, particularly if bias is found

8. Organizational Conflict of Interest

What is an Organizational Conflict of Interest (OCOI)?

An OCOI exists when, because of relationships with a parent company, affiliate, or subsidiary organization, NHU Energy is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization.

When OCOI Disclosure Is Required

Disclosure is required when:

• NHU Energy has a parent company, affiliate, or subsidiary organization (other than a state, local government, or Indian tribe)
• NHU Energy is engaging in procurement activities related to a DOE-funded project
• There is a relationship that could affect or appear to affect the impartiality of procurement decisions
• A related entity could benefit from procurement decisions made under the DOE award

Examples of Potential OCOIs

• Procuring goods or services from a parent company or subsidiary
• Awarding subcontracts to affiliated organizations
• Purchasing equipment from entities with common ownership
• Contracting with organizations sharing board members or key personnel

Managing Organizational Conflicts

If an OCOI is identified, NHU Energy will:

1. Disclose to DOE

• Notify the DOE program office of the potential or actual OCOI
• Provide details of the organizational relationships
• Explain how the OCOI could affect procurement decisions

2. Implement Safeguards

• Organizational Firewalls: Separate decision-making authority for procurement from personnel with ties to related entities
• Independent Review: Have procurement decisions reviewed by independent parties
• Competitive Processes: Ensure robust competitive bidding processes are followed
• Documentation: Maintain detailed records of procurement decisions and justifications

3. Obtain DOE Approval

• Seek DOE program office approval of the management approach
• Implement only after receiving DOE clearance
• Follow any additional requirements imposed by DOE

4. Monitor Compliance

• Regularly review adherence to OCOI management procedures
• Document all procurement activities involving related entities
• Report any deviations or concerns to the DOE program office

Federal Procurement Standards (2 CFR 200.318)

NHU Energy adheres to federal procurement standards, which require:

• Maintaining standards of conduct covering conflicts of interest and governing the actions of employees engaged in procurement
• Avoiding actual or apparent conflicts of interest for employees involved in selecting, awarding, or administering contracts
• Ensuring employees neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or subcontractors
• Establishing penalties, sanctions, or other disciplinary actions for violations of these standards

9. Sponsored or Reimbursed Travel

What Must Be Disclosed

For all reimbursed or sponsored travel related to institutional responsibilities, Investigators must disclose:

• Purpose of the Trip: The reason for the travel (e.g., conference attendance, site visit, collaborative meeting)
• Sponsor/Organizer: The identity of the entity that sponsored, organized, or reimbursed the travel
• Destination: The location of the travel
• Duration: The dates and length of the trip

Note: The monetary value of the travel does not need to be disclosed if the information above is provided.

Travel That Does NOT Require Disclosure

The following types of travel do not need to be disclosed:

• Travel that is reimbursed or sponsored by a Federal, state, or local government agency
• Travel that is reimbursed or sponsored by an Institution of higher education as defined at 20 U.S.C. 1001(a)
• Travel that is reimbursed or sponsored by an academic teaching hospital, medical center, or research institute that is affiliated with an Institution of higher education
• Travel that has already been disclosed in Current and Pending Support or Other Support disclosures required by DOE
• Travel reimbursed or sponsored by NHU Energy itself

Examples of Disclosable Travel

• Conference attendance paid for by a private company
• Site visits sponsored by industry partners
• Speaking engagements with travel reimbursement from non-governmental organizations
• Consulting trips paid for by private entities
• Advisory board meetings with travel reimbursement from companies

Institutional Review of Travel

NHU Energy’s COI office will review all disclosed travel to determine whether it presents an FCOI. Factors to be considered include:

• Relationship to Research: Whether the travel sponsor has any relationship to the DOE-funded research
• Frequency and Pattern: The frequency and nature of travel sponsored by the entity
• Financial Interests: Whether the entity has financial interests that could be affected by the research
• Aggregate Value: The aggregate value of all travel sponsored by the entity over time
• Decision-Making Impact: Whether the travel could influence research decisions or objectivity

When to Disclose

• Initial Disclosure: At the time of proposal submission, disclose all relevant travel from the prior 12 months
• Annual Updates: Update travel disclosures annually
• Ongoing Disclosure: Within 30 days of any new sponsored or reimbursed travel during the project period

10. Intellectual Property Rights and Interests

Types of IP That Must Be Disclosed

When any income is received, Investigators must disclose:

• Patents: Issued patents from which income is received
• Patent Applications: Pending patent applications that generate income (e.g., through licensing agreements)
• Copyrights: Copyrights generating income beyond standard academic publications
• Trademarks: Trademark rights producing income
• Licensing Agreements: Any licensing agreements that provide income to the Investigator
• Royalty Agreements: Agreements for royalty payments related to IP
• Other IP Interests: Any other intellectual property interests that generate income

What Does NOT Require Disclosure

The following IP interests do not need to be disclosed:

• Institutional IP: IP rights assigned to NHU Energy and for which the Investigator has not received any income beyond institutional salary
• Publications: IP rights and interests resulting from standard academic publications (journal articles, book chapters, etc.)
• Educational Income: Income from seminars, lectures, or teaching engagements sponsored by governmental agencies, institutions of higher education, academic teaching hospitals, medical centers, or research institutes affiliated with institutions of higher education
• Service Income: Income from service on advisory committees or review panels for the entities listed above
• No Income Received: IP rights for which no income has been received, even if income is anticipated

When to Disclose

IP interests must be disclosed:

• Upon Receipt of Any Income: Immediately upon receiving any income, regardless of amount (no minimum threshold for DOE awards)
• During Ongoing Projects: Within 30 days of receiving income if it occurs during an ongoing DOE project
• In Annual Updates: As part of annual disclosure updates
• At Proposal Submission: If income was received in the 12 months prior to proposal submission

What Information to Provide

When disclosing IP income, provide:

• Type of IP: Specify whether it’s a patent, copyright, trademark, etc.
• Title/Description: Brief description of the IP
• Income Source: Name of the entity providing the income
• Income Amount: Amount of income received (or dollar range)
• Relationship to Research: How the IP relates to your institutional responsibilities and/or the DOE-funded research
• Dates: When the income was received

Special Considerations for Energy Research

Given NHU Energy’s focus on microgrid control, distributed energy, and power systems:

• Software IP: Pay particular attention to software patents and copyrights related to control systems, algorithms, or energy management platforms
• Technology Licensing: Disclose any licensing arrangements for energy technologies, even if income is modest
• Startups: If IP has been licensed to or generates income from startup companies in the energy sector, this must be disclosed
• Collaborative IP: IP developed through industry collaborations that generates any income must be disclosed

11. Compliance and Training

Required Training

All Investigators on DOE-funded projects must complete conflict of interest training:

• Prior to engaging in DOE-funded research
• At least every four years
• Immediately when any of the following occur:
  • NHU Energy’s COI policies change in ways that affect Investigator requirements
  • An Investigator is new to NHU Energy
  • An Investigator is found to be not in compliance with our COI policy or management plan

Training Topics

NHU Energy’s COI training covers:

• DOE Requirements: Overview of DOE Interim COI Policy requirements and how they differ from PHS
• Disclosure Responsibilities: What must be disclosed, when, and how
• Institutional Policy: NHU Energy’s COI policy and procedures
• Identifying Conflicts: How to recognize potential conflicts of interest
• Reporting Procedures: Step-by-step guidance on submitting disclosures
• Management Plans: Understanding and complying with conflict management requirements
• Consequences of Non-Compliance: What happens if requirements are not met
• Public Accessibility: Understanding that disclosures and management plans may be made public

Training Format and Access

Training is available in multiple formats:

• Online Module: Self-paced web-based training (approximately 45-60 minutes)
• Live Sessions: In-person or virtual instructor-led training (scheduled quarterly)
• One-on-One: Individual sessions available upon request
• Refresher Courses: Shortened annual updates (approximately 30 minutes)

To access training, contact info@nhuenergy.com or call 850.757.0100.

Compliance Monitoring

NHU Energy monitors compliance through:

• Proposal Review: All DOE proposals are checked for current disclosures before submission
• Annual Reminders: Automated reminders sent to all investigators for annual disclosure updates
• Management Plan Monitoring: Regular check-ins to ensure investigators are following management plans
• Award Monitoring: Ongoing review of DOE-funded projects for disclosure compliance
• Random Audits: Periodic audits of disclosure submissions and management plan adherence
• Current and Pending Review: Cross-checking with other disclosure systems

Investigator Responsibilities

All investigators on DOE-funded projects must:

1. Complete required COI training
2. Submit complete and accurate financial disclosures
3. Certify disclosures using required DOE language
4. Update disclosures within 30 days of discovering or acquiring new significant financial interests
5. Submit annual disclosure updates
6. Comply with all management plan requirements
7. Immediately report any situations that may constitute a conflict
8. Cooperate with institutional reviews and audits

Institutional Responsibilities

NHU Energy is responsible for:

1. Maintaining and disseminating COI policies and procedures
2. Providing training to all investigators
3. Reviewing financial disclosures within specified timeframes
4. Identifying and managing financial conflicts of interest
5. Reporting FCOIs to DOE as required
6. Monitoring compliance with management plans
7. Conducting retrospective reviews when necessary
8. Maintaining records in accordance with DOE requirements
9. Making information publicly available as required
10. Enforcing compliance and addressing noncompliance

Consequences of Non-Compliance

Failure to comply with this policy may result in:

• Proposal Submission Delays: Proposals will not be submitted until compliance is achieved
• Award Holds: Delay or suspension of funding
• Participation Restrictions: Prohibition from participation in DOE-funded research
• Retrospective Reviews: Required assessment of research conducted during period of noncompliance
• Disciplinary Action: Internal disciplinary measures as appropriate
• Notification to DOE: Reporting of noncompliance to DOE and potentially other regulatory agencies
• Legal Consequences: Potential civil or criminal penalties under federal law
• Reputational Harm: Damage to professional reputation and institutional standing

Record Retention

NHU Energy will maintain records relating to all Investigator disclosures of financial interests and the Institution’s review of, and response to, such disclosures for at least three years from the date the final expenditures report is submitted to DOE, or for such other time specified in DOE regulations.