Deputy Counselors, and other officials specifically authorized by the Administrator.

Subpart F-Standards of Conduct for Special Government Employees

§ 3.600 Purpose.

This subpart: (a) Provides guidance with respect to the application of the conflict of interest statutes to special Government employees (as defined in § 3.601); it is of particular application to consultants and experts.

(b) Sets forth the standards of ethical conduct which, under Executive Order No. 11222 of May 8, 1965, and regulations of the Civil Service Commission, special Government employees are expected to observe.

§ 3.601 Applicability.

(a) This subpart is applicable to all employees who are classified as special Government employees. A "special Government employee" defined in § 3.102(c). It is of particular applicability to EPA consultants and experts, who normally fall within the definition of the term "special Government employee."

(b) To the extent that the conflict of interest statutes apply to a special Government employee, they apply to his activities on all days during the period of his EPA service, beginning with the date on which he takes an oath of office as a Government employee, whether he works on a fulltime or intermittent basis. Similarly, the ethical standards prescribed in this subpart apply to the special Government employee during the full period of his appointment as an employee, and not merely on the days on which he performs services as an employee.

(c) Employees, including consultants and experts, who are appointed to serve for more than 130 days during a period of 365 consecutive days are not subject to this subpart, even though they may in fact work 130 days or less, but are subject to Subparts A through E to this part, prescribing standards of conduct for regular Government employees.

§ 3.602 Standards of ethical conduct.

Under the Executive order and regulations of the Civil Service Commission, the following standards of ethical conduct are applicable to special Government employees:

(a) Use of Government employment. A special Government employee shall not use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business, or financial ties.

(b) Use of inside information. A special Government employee shall not use inside information obtained as a result of his Government employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he has family, business, or financial ties. In this context, "inside information" means information obtained as a result of his Government employment which has not been made available to the general public or would not be made available on request. However, nonpublic information may be used upon a written determination made by the Agency Counselor that its use would be in the public interest.

(c) Avoidance of actions which may appear coercive. A special Government employee shall not use his Government employment to coerce, a person to provide financial benefit to himself or another person, particularly one with whom he has family, business, or financial ties.

(d) Acceptance of gifts, entertainment or favors. (1) Except as provided in paragraph (d)(2) of this section, a special Government employee shall not solicit or receive from a person, organization, or group having business with EPA, any gift, gratuity, entertainment (including meals), favors, loan, or other things of monetary value, for himself or for another person, particularly one with whom he has family, business, or financial ties. This rule does not apply if the special Government employee is unaware of this kind of business.

(2) The following are exceptions to the general rule set forth in paragraph (d)(1) of this section:

(i) Receipt of salary, bonuses, or other compensation or emoluments from his non-Government employer or employers.

(ii) Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon, dinner, or other meeting.

(iii) Acceptance of modest entertainment, such as a meal or refreshments, in connection with attendance at widely attended gatherings sponsored by industrial, technical, or professional organizations; or in connection with attendance at public ceremonies or similar activities financed by nongovernmental sources where the special Government employee's participation on behalf of EPA is the result of an invitation addressed to him in his official capacity and approved as a part of his official duties, and the entertainment accepted is related to, and in keeping with, his official participation.

(iv) Acceptance of gifts, favors, or entertainment, where there is an obvious family or personal relationship between the employee, or between his spouse, children, or parents, and the donor, and where the circumstances make it clear that it is that relationship rather than the business of the persons concerned which is the motivating factor for the gift, favor, or entertainment.

(v) Acceptance of loans from banks or other financial institutions on customary terms, to finance proper and usual activities of employees, such as home mortgage loans.

(vi) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, or other items of nominal value.

(vii) Acceptance of incidental transportation in kind from a private organization, when it is furnished in connection with the performance of the special Government employee's official duties, and provided it is of a type customarily provided by the private organization.

(e) Gifts and honors from foreign governments. A special Government employee is not authorized to accept a gift, decoration, or other thing from a

foreign government, unless authorized by Congress as provided by the Constitution and in section 7342 of Title 5, United States Code.

§ 3.603 Statement of employment and financial interests for special Government employees.

(a) Under Executive Order No. 11222 of May 8, 1965, and regulations of the Civil Service Commission, each special Government employee is required to submit a Statement of Employment and Financial Interests, EPA Form 3115-2, at the time of his initial appointment except to the extent that such a requirement has been waived by the Administrator as specified in paragraph (f) of this section.

(b) The Statement of Employment and Financial Interests shall be submitted to the appropriate Counselor or Deputy Counselor as defined in § 3.202. A new statement shall be submitted each time he is reappointed as an EPA special Government employee. The statement shall be kept current throughout the period of the employee's service as a special Government employee by the submission of supplementary statements on EPA Form 3115-2 clearly indicating the supplementary nature of the information furnished. The special Government employee is not required to submit any information relating to his connection with or interest in, a professional society, fraternal, recreational, public service, civic, or political organization, or a similar organization not conducted as a business enterprise. In this connection, however, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed to be "business enterprises." Information relating to such institutions, where relevant, shall therefore be included in a special Government employee's statement of employment and financial interests.

(c) The purpose of the statement of employment and financial interests is to assist the employee, and those who review his statement, in avoiding situations where a conflicting financial interest might exist. The statement

shall be treated by EPA as private information of the employee, and shall be held in confidence. It shall be reviewed only by EPA officials designated as Counselor and Deputy Counselors in § 3.202. There shall be no discussion or disclosure of the details of the information furnished except as necessary to carry out the provisions of this subpart. Information contained in the statement shall not be disclosed outside EPA except as authorized by the Administrator or the Civil Service Commission for good cause shown.

(d) The submission of a statement of employment and financial interests is not intended to relieve the employee from complying with other applicable provisions of law, Executive order, or this subpart. In particular, the employee is not thereby permitted to participate in a matter where such participation is prohibited by section 208 of Title 18, United States Code (see § 3.606(d)).

(e) Information concerning financial interests which have been exempted from the prohibition of section 208(a) of Title 18, United States Code, as set forth in Appendix C to Subpart B of this part may be omitted from the statement of employment and financial interests.

(f) The Administrator of EPA has determined that the following categories of special Government employees who are not consultants or experts as defined in chapter 304 of the Federal personnel manual shall not be required to file statements of employment and financial interests because their duties are of a nature and at such a level of responsibility that the submission of a statement by them is not necessary to protect the integrity of the Government:

(1) Temporary and summer employees below the grade of GS-13 under section 532 of Title 5, United States Code.

(2) Employees participating in an intern or other training program.

§ 3.604 Advisory service.

Special Government employees who desire assistance or advice on interpreting the provisions of this subpart, or on other matters relating to the subject matter covered herein, are in

vited to consult the appropriate Agency Deputy Counselor or the Counselor as set forth in Subpart B. § 3.202.

§ 3.605 Review, enforcement, reporting, and investigation.

(a) Each statement of employment and financial interests submitted under this subpart shall be reviewed by the Agency Counselor or appropriate Deputy Counselor. If his review discloses a conflict of interests or apparent conflict of interests the employee shall be given an opportunity to explain the conflict or apparent conflict, and every effort shall be made to resolve the matter. If the matter cannot be resolved, it shall be reported to the Administrator, through the Deputy General Counsel, as Agency Counselor on conflict of interests matters. If the Agency Counselor decides that remedial action is necessary, he shall take such action immediately to end the conflict or apparent conflict of interests.

(b) Special Government employees shall consult with the appropriate Agency Counselor or Deputy Counselor with regard to any questions concerning this subpart. Resolution of problems disclosed by such consultations shall be accomplished at the lowest possible supervisory level in the agency through counseling or administrative action to eliminate a real or apparent conflict of interests. The services of the Director, Security and Inspection Staff, shall be requested by the Deputy Counselor, when necessary, to conduct investigations to ascertain all relevant facts.

(c) A violation of the regulations contained in this part may be cause for appropriate disciplinary action. All disciplinary or remedial action taken hereunder shall be in conformance with applicable laws. Executive orders, Civil Service Commission regulations, and EPA regulations. Appropriate disciplinary or remedial action includes, but is not limited to divestiture by the employee of his conflicting interest, disqualification for particular assignments, and reassignment.

(d) The special Government employee concerned shall have a reasonable

opportunity during any investigation and at all levels of consideration of this problem to present in person and through documents his position on the matter.

§ 3.606 Application of conflict-of-interest statutes.

The "conflict-of-interest" statutes (18 U.S.C. 203, 205, 207, 208, and 209) are criminal statutes which provide for fines or imprisonment if they are violated. Their full text is set forth in Appendix A to Subpart A of this part. In summary, they apply to the special Government employee as follows;

(a) Sections 203 and 205 of Title 18, United States Code, apply to the special Government employee in his capacity as a private individual while serving also as a Government employee. They provide that the special Government employee may not, except in the discharge of his Government duties:

(1) Represent anyone else before a court or any Government agency in relation to a "particular matter" involving a specific party or parties in which the United States is a party or has a direct and substantial interest, and in which he has at any time participated "personally and substantially" either as a special or regular Government employee.

(2) Represent anyone else before a court or any Government agency in relation to a "particular matter" involving a specific party or parties which is pending within EPA, if he has served as an EPA employee for more than 60 days during the preceding 365 days. The special Government employee is bound by this restraint whether or not he has acted "personally and substantially" in relation to the "particular matter."

There are four exceptions to the application of one or both of the foregoing prohibitions, which are specified in the full text of section 205 of Title 18, United States Code, at Appendix A to Subpart A.

(b) Section 207 of Title 18, United States Code, applies to the special Government employee in his capacity as a private individual, after he has terminated his service as a Govern

ment employee. It provides that the former employee shall not:

(1) At any time after his Government employment has ended, represent anyone else before a court or any Government agency in relation to a "particular matter" involving a specific party or parties, in which the United States is a party or has a direct and substantial interest and in which he participated "personally and substantially" either as a special or regular Government employee.

(2) Within 1 year after his Government employment has ended, appear personally before a court or any Government agency in relation to a "particular matter" involving a specific party or parties in which the United States is a party or has a direct and substantial interest, and which was under his "official responsibility" as a Government employee within a period of 1 year prior to the termination of such responsibility. This prohibition applies whether or not the special Government employee participated "personally and substantially" in the "particular matter" while he was employed.

(c) Section 207(c) of Title 18, United States Code, applies to the partner of a special Government employee. It provides that during the period of the special Government employee's appointment, his partner shall not act as agent or attorney for anyone else in relation to a “particular matter" in which the United States is a party or has a direct and substantial interest, and in which the employee is participating or has participated "personally and substantially" as a special Government employee, or which is under the employee's "official responsibility."

(d) (1) Section 208 of Title 18, United States Code, applies to the special Government employee, when he is acting in his capacity as a Government employee. It provides that the special Government employee shall not, in his governmental capacity, participate "personally and substantially” in any "particular matter" in relation to which matter, to his knowledge, he, his spouse, minor child, partner, organization in which he is serving as officer, director, trustee, partner, or employee, or any person or organization

with whom he is negotiating or has any arrangement concerning prospective employment, has a financial interest.

(2) The statute also provides two exemptions from the foregoing prohibition which permit a special Government employee to participate "personally and substantially" in a “particular matter," notwithstanding the existence of a conflicting financial interest which he holds directly or that is imputed to him. These exemptions are:

(i) In connection with specific matters, if the special Government employee's financial interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from him, an ad hoc exemption from the application of the statutory prohibition may be granted in writing in advance of his acting in relation to that matter, by the Administrator.

(ii) A general exemption, applicable to all employees including special Government employee, of certain financial interests which have been determined to be too remote or too inconsequential to affect the integrity of an employee's services in any matter in which he may be called upon to participate, may also be granted. The categories of financial interests which have been exempted by the Administrator under this general authority are set forth in Appendix C to Subpart C of this part.

(e) Section 209 of Title 18, United States Code, the fifth "conflict-of-interest" statute, does not apply to special Government employees.

§ 3.607 Other statutes.

(a) There are many other criminal statutes which are especially aimed at regulating the conduct of Government employees and which, therefore, apply to special Government employees. Two such statutes which are closely related to the conflict of interests statutes are:

(1) Bribery. Section 201 of Title 18, United States Code, prohibits a Government employee from soliciting, receiving, or agreeing to receive, directly or indirectly, anything of value for himself or others in connection with the performance of his official duties,

or in return for committing or aiding in the commission of a fraud on the United States.

(2) Disclosure of confidential information. Section 1905 of Title 18, United States Code, prohibits a Government employee from disclosing, in any manner and to any extent not authorized by law, any information coming to him in the course of his employment or official duties which concerns or is related to the trade secrets, processes, operations, style or work, or apparatus, or to the identity, confidential statistical data, amount or source of any income, profits, losses, or expenditures of any person, business entity, or association.

(b) Regulations of the Civil Service Commission require that certain other statutes pertaining to the ethical and other conduct of special Government employees be brought to the attention of all special Government employees. These are listed in Appendix B to Subpart A of this part.

(c) Under section 26 of the Toxic Substances Control Act special government employees are required to file a statement of known financial interests unless specifically exempted from the requirement to file. Special government employees shall be subject to the requirements and procedures of § 3.305.

(d) Under section 1007 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976, special Government employees are required to file a statement of known financial interests unless specifically exempted from the requirement to file. Special Government employees shall be subject to the requirements and procedures of § 3.306.

(e) Under section 318 of the Clean Air Act special Government employees are required to file a statement of known financial interests unless specifically exempted from the requirement to file. Special Government employees shall be subject to the requirements and procedures of § 3.307.

(f) Under section 12 of the Environmental Research, Development, and Demonstration Authorization Act of 1978, special Government employees are required to file a statement of