Section 1040.89-12 - Alternate funds disbursal procedure(a) When DOE withholds funds from a recipient under these regulations, the Secretary or designee may disburse the withheld funds directly to an alternate recipient(s), any public or private organization or agency, or State or political subdivision of the State.(b) The Secretary or designee will require any alternate recipient to demonstrate: (1) The ability to comply with these regulations; and(2) The ability to achieve the goals of the Federal statute authorizing the Federal financial assistance.50 FR 8089, Feb. 27, 1985, as amended at 68 FR 51348 , Aug. 26, 2003