[Federal Register Volume 61, Number 165 (Friday, August 23, 1996)]
[Rules and Regulations]
[Pages 43411-43415]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21412]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 61, No. 165 / Friday, August 23, 1996 / Rules
and Regulations
[[Page 43411]]
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
5 CFR Chapter XXIV
18 CFR Part 3c
RIN 3209-AA15
[Docket No. RM95-1-000; Order No. 589]
Supplemental Standards of Ethical Conduct for Employees of the
Federal Energy Regulatory Commission
Issued August 16, 1996.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The Commission, with the concurrence of the Office of
Government Ethics (OGE), is issuing regulations for employees of the
Commission, including members of the Commission, which supplement the
Standards of Ethical Conduct for Employees of the Executive Branch
issued by OGE. The supplemental regulations are necessary and
appropriate in view of the particular needs of the Commission as a
regulatory body with quasi-judicial functions. The supplemental
regulations establish prohibitions on holding securities of certain
companies substantially affected by Commission regulation and require
Commission employees to seek approval from the Designated Agency Ethics
Officer of the Commission (DAEO) prior to engaging in certain outside
activities. The supplemental regulations also require employees to
document recusals in writing. The Commission is also repealing its
existing standards of conduct and inserting in their place a cross-
reference to other ethics regulations, and a provision establishing
standards of cooperation with the Inspector General.
EFFECTIVE DATE: These regulations take effect August 23, 1996.
FOR FURTHER INFORMATION CONTACT: Elizabeth Arnold, Office of the
General Counsel, General and Administrative Law, Room 91-18, Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, D.C.
20426; telephone 202-208-0457.
SUPPLEMENTARY INFORMATION:
Availability of Documents
In addition to publishing the full text of this document in the
Federal Register, the Commission also provides all interested persons
an opportunity to inspect or copy the contents of this document during
normal business hours in the Public Reference Room at 888 First Street,
NE., Washington, D.C. 20426.
The Commission Issuance Posting System (CIPS), an electronic
bulletin board service, provides access to the texts of formal
documents issued by the Commission. CIPS is available at no charge to
the user and may be accessed using a personal computer with a modem by
dialing (202) 208-1397 if dialing locally or 1-800-856-3920 if dialing
long distance. To access CIPS, set your communications software to
19200, 14400, 12000, 9600, 7200, 4800, 2400, or 1200 bps, full duplex,
no parity, 8 data bits, and 1 stop bit. The full text of this document
will be available on CIPS indefinitely in ASCII and in WordPerfect 5.1
format for one year. The complete text on diskette in WordPerfect
format may also be purchased from the Commission's copy contractor, La
Dorn Systems Corporation, also located in the Public Reference Room at
888 First Street NE., Washington, D.C. 20426.
The Commission's bulletin board system also can be accessed through
the FedWorld system directly by modem or through the Internet. To
access the FedWorld system by modem:
Dial (703) 321-3339 and logon to the FedWorld system.
After logging on, type: /go FERC
To access the FedWorld system through the Internet:
Telnet to: fedworld.gov
Select the option: [1] FedWorld
Logon to the FedWorld System
Type: /go FERC
Or:
Point your Web Browser to: http://www.fedworld.gov
Scroll down the page to select FedWorld Telnet Site
Select the option: [1] FedWorld
Logon to the FedWorld system
Type: /go FERC
I. Background
On August 7, 1992, OGE published new Standards of Ethical Conduct
for Employees of the Executive Branch (Standards). See 57 FR 35006-
35067, as corrected at 57 FR 48557, 57 FR 52583, and 60 FR 51667, with
additional grace period extensions at 59 FR 4779-4780, 60 FR 6390-6391,
and 60 FR 66857-66858. Codified at 5 CFR part 2635, the new Standards
became effective on February 3, 1993, superseding most agency-specific
standards of conduct on that date.
In February 1993, the Commission repealed portions of its standards
of conduct regulations that were superseded by OGE's Standards. 58 FR
7486. The repealed sections included most of the Commission's conflict
of interest and ethical conduct regulations, and provisions relating to
the reporting of outside employment and financial interests. The
Commission retained for a temporary OGE-approved period its preexisting
prohibition against the ownership or purchase of the securities of
jurisdictional companies. The Commission also retained on the basis of
independent statutory authority provisions barring the disclosure of
audit information and information relating to the nature and timing of
future Commission action.
With the concurrence of OGE, agencies are authorized to publish
agency-specific supplemental regulations that are necessary to
implement properly their respective ethics programs. The Commission,
with OGE's concurrence, has determined that the following supplemental
regulations, to be codified in part 3401 of new chapter XXIV of 5 CFR,
are necessary and appropriate to the successful implementation of the
Commission's ethics program. By this rulemaking, the Commission is also
revising its own regulations at 18 CFR part 3c to delete the conflicts
of interest provision being superseded by the new supplemental
regulations and to establish standards of cooperation with the
Inspector General.
The Commission is issuing these regulations pursuant to its
authority as an independent regulatory body within the Department of
Energy (DOE). The
[[Page 43412]]
Energy Department published its own supplemental regulations in the
Federal Register on July 5, 1996, which are not applicable to
Commission employees. See 61 FR 35085-35088. The Commission has the
statutory responsibility to manage its own operations, including the
supervision of its staff. Its officers and employees, in the
performance of their functions, are not responsible or subject to the
supervision of any officer or employee of any other part of DOE. 42
U.S.C. 7171. The Commission is authorized to prescribe rules,
regulations and policy statements, including such procedural and
administrative rules as are necessary to the exercise of its functions,
and is issuing these regulations, with the concurrence of OGE, pursuant
to its authority to do so, independent of DOE. 42 U.S.C. 7171(f) and
7172(h).
II. Analysis of the Regulations
Section 3401.101 General
Section 3401.101 explains that the regulations contained in the
rule apply to all Commission employees, which include members of the
Commission, and are supplemental to the Standards. It also notes that
employees are required to comply with 5 CFR part 2635, the executive
branch financial disclosure regulations at 5 CFR part 2634, additional
rules of conduct published in 5 CFR part 735, and the Commission's
Standards of Conduct at 18 CFR part 3c.
Section 3401.102 Prohibited Financial Interests
The Standards at 5 CFR 2635.403(a), provide that individual
agencies may adopt supplemental regulations prohibiting or restricting
employees from acquiring or holding certain financial interests or
classes of financial interests if the acquisition or holding would
cause a reasonable person to question the impartiality with which the
agency's programs are administered. Where it is necessary to the
efficiency of the service, such prohibitions may be extended to
employees' spouses and minor children.
Under 18 CFR part 3c, the Commission has long prohibited employees,
their spouses and minor children, from owning the securities of certain
entities directly or indirectly subject to the jurisdiction of the
Commission. The Commission has determined that a supplemental
regulation is needed to retain the general prohibition against
financial holdings in those companies that are substantially affected
by Commission regulation in order to protect the integrity of the
Commission's programs and processes. New section 3401.102 is generally
similar to the Commission's prior prohibition and identifies the types
of entities the securities of which employees are prohibited from
holding or acquiring. The restrictions also will help to maintain
public confidence that sensitive information relating to agency
operations is not misused for private gain and will help accomplish the
Commission's mission by avoiding widespread disqualification of
employees from the performance of their official duties.
The Commission has determined that application of the securities
restrictions in Sec. 3401.102 to spouses and minor children is
necessary to avoid interference with the ability of employees to do
their jobs, which must be performed with impartiality, and to enable
the Commission to carry out its mission effectively. As evidence by
provisions long included in 18 CFR part 3c, the Commission believes it
is important to the success of its mission for regulated entities and
others affected by agency decisions to have this additional degree of
assurance that agency decisions are not influenced by considerations of
personal gain on the part of Commission personnel.
The DAEO will compile annually a Prohibited Securities List (PSL)
cataloguing the financial interests that employees may not own. The PSL
is intended to serve as a reference source to assist employees in
identifying prohibited interests. Whether or not a holding is included
in the PSL is not conclusive as to its status as a prohibited holding.
Section 3401.102(b) gives the DAEO authority to grant a written
waiver of the application of Sec. 3401.102(a) based upon a
determination that the waiver is not inconsistent with law and the
executive branch-wide Standards and meets the waiver standard
established in Sec. 3401.102(b). An employee may be required under the
waiver to disqualify himself or herself from a particular matter or
take other appropriate action.
The waiver provision is intended, in appropriate cases, to ease the
burden that the prohibited financial interests section may impose on
the private lives of Commission employees, while ensuring that
employees do not engage in actions that may interfere with the
objective and impartial execution of their official duties or raise
questions about possible misuse of their official positions.
Section 3401.103 Procedures for Accomplishing Disqualification
Section 3401.103 requires that where employees disqualify
themselves from a particular matter before the Commission, whether
because of a conflicting financial interest, a question of the
employee's impartiality, or because the employee is seeking employment
with a person who could be affected by the performance of the
employee's duties, written notification of the recusal must be provided
to a supervisor and the ethics officer. Under the executive branch-wide
Standards, employees who become aware of the need to disqualify
themselves from participation in a particular matter to which they have
been assigned should notify the person responsible for the assignment.
An employee is not required under those Standards to file a written
disqualification statement unless asked by an agency ethics official or
the person responsible for the assignment to file a written
disqualification statement. 5 CFR 2635.402(c), 2635.502(e), and
263.604.
The Commission has determined that where a disqualification is
necessary, a written record of the recusal is required to protect both
the disqualified employee and the Commission. A written recusal
statement avoids possible questions about the scope and terms of the
recusal and ensures that the agency will be able to provide adequate
staffing for the matter from which the employee is recused. The
Commission has in the past requested written notifications of recusal
for members of the staff. Accordingly, a written notification
requirement is being included in these supplemental regulations. The
written notification provision contained in Sec. 3401.103 is not
applicable to members of the Commission, who have no supervisors, and
who indicate their nonparticipation in public matters on the public
record. In practice, such matters comprise the vast majority of items
that came before the Commission.
The supplemental rule merely establishes disqualification
procedures when recusal is otherwise appropriate. It establishes no
independent standards as to when recusal is necessary. Moreover, it is
not the Commission's purpose to impose a technical requirement that
would result in disciplining an employee for failure to provide written
notice by some arbitrary deadline. Thus, the notice requirement imposed
by this regulation is phrased to give an employee flexibility in
determining precisely when to give notice of disqualification from a
matter
[[Page 43413]]
to which the employee has been assigned. Notice is to be given when the
employee becomes aware of the need to disqualify himself from
participation in the matter. In no way does the notice requirement
affect the employee's obligation not to participate in the matter.
Section 3401.104 Prior Approval for Outside Employment
Under 5 CFR 2635.803, an agency that determines it is necessary or
desirable for the purpose of administering its ethics program may, by
supplemental regulation, require its employees to obtain written
approval before engaging in outside employment. The Commission's
conduct regulations at 18 CFR part 3c, prior to the repeal of portions
of the regulations following the effective date of the Standards,
required prior notification of all proposed outside employment, and
was, in essence a prior approval requirement. The Commission has
determined to reinstitute a narrower version of the advance
notification requirement in the form of a prior approval requirement.
The Commission does not believe there is a need for a general
requirement of prior approval for all outside employment. However, in
order to protect the interests of the Commission by ensuring that
employees are not engaged in activities that are prohibited by statute
or Federal regulation, including 5 CFR part 2635, the Commission has
determined that it is necessary to the administration of its ethics
programs to require Commission employees to obtain written approval
before accepting outside employment with a prohibited source.
Therefore, Sec. 3401.104(a) of this supplemental rule requires that a
FERC employee who wishes to engage in outside employment with a
prohibited source must obtain prior written approval from the DAEO
through normal supervisory channels before engaging in such outside
employment. Prohibited sources include, for example, entities regulated
by the Commission, parties to Commission proceedings, and contractors
doing business or seeking to do business with the Commission.
This prior approval requirement applies to outside employment
concurrent with Commission employment. The requirement does not apply
to employment that will be engaged in after an employee terminates
Federal service. Standards governing post-employment conflicts of
interest are found at 18 U.S.C. 207 and 5 CFR part 2641. Nor will the
prior approval requirement apply to negotiations for employment. The
standards governing such negotiations are at 18 U.S.C. 208(a) and
subpart F of 5 CFR part 2635. The prior approval requirement does not
apply to special Government employees.
To ensure that Sec. 3401.104 is not itself construed as authority
to deny permission to engage in outside employment, paragraph (b)
states that approval shall be granted unless a determination is made
that the outside employment is expected to involve conduct prohibited
by statutes or Federal regulation, including 5 CFR part 2635.
At Sec. 3401.104(c), ``employment'' is broadly defined to cover any
form of compensated non-Federal employment or business relationship or
activity involving the provision of personal service by the employee.
``Compensation'' is defined to exclude actual and necessary expenses
incurred by the employee in connection with the outside activity.
III. Repeal and Revision of the Commission's Standards of Conduct for
Employees
The final rule repeals those portions of the regulations at 18 CFR
3c governing Commission employees' responsibilities and conduct that
were preserved pending issuance of the final rule.
These repeals leave in 18 CFR part 3c and redesignate those
provisions that the Commission has authority to issue independent of 5
CFR part 2635. The prohibition against the disclosure of audit
materials merely summarizes statutory provisions in section 301(b) of
the Federal Power Act (16 U.S.C. 825(c)) and section 8(b) of the
Natural Gas Act (15 U.S.C. 717g). The requirement that Commission
employees must treat information about proposed Commission action as
confidential is a designation of covered information as confidential
that is not inconsistent with 5 CFR part 2635 and which the agency is
free to promulgate apart from the supplemental regulations. The
provision is founded on the Commission's statutory authority to adopt
such procedural and administrative rules as are necessary to exercise
its functions. 42 U.S.C. 7171(f). These provisions are being
redesignated as Sec. 3c.2 and will follow a new Sec. 3c.1 which
provides a cross-reference to ethics and other conduct-related
regulations.
Section 3c.3 assists employees in adhering to the general principle
of ethical conduct at 5 CFR 2635.101(b)(11), under which an employee
shall disclose waste, fraud, abuse, and corruption to appropriate
authorities. It identifies the Inspector General as an authority to
which it would be appropriate for an employee to disclose waste, fraud,
abuse and corruption, and requires employees to cooperate with official
inquiries by the Inspector General. 5 U.S.C. app., sections 2 and 6.
This section is adopted at the request of the Inspector General and
replaces a similar provision formerly applicable both to DOE and the
Commission. 10 CFR 1010.217.
The separate conflict of interest provisions applicable to
``supervisory employees'' of DOE and the Commission under Title VI of
the Department of Energy Organization Act have been repealed by
Congress. See National Defense Authorization Act for Fiscal Year 1996,
Public Law 104-106, section 4304(b)(6), 110 Stat. 642. The implementing
DOE regulations, which were applicable to the Commission, have also
been repealed. See 61 FR 5085. Accordingly, those provisions are no
longer in effect and are not being included in 18 CFR part 3c.
IV. Matters of Regulatory Procedure
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601-612)
generally requires a description and analysis of final rules that will
have significant economic impact on a substantial number of small
entities. The Commission certifies that, pursuant to section 605(b) of
the RFA, this rule will not have a significant economic impact on a
substantial number of small entities. This is a procedural rule
affecting Federal employees and their immediate families. It does not
impact small entities as defined in the RFA.
Environmental Impact
The Commission concludes that issuance of this rule would not
represent a major Federal action having a significant adverse effect on
the human environment under the Commission regulations implementing the
National Environmental Policy Act (see 18 CFR part 380). This rule is
procedural in nature and therefore falls within the categorical
exemptions provided in the Commission's regulations. Consequently,
neither an environmental impact statement nor an environmental
assessment is required. See 18 CFR 380.4(a)(1).
Paperwork Reduction Act Statement
The Paperwork Reduction Act of 1995 (Pub. L. 104-13, 109 Stat. 163
(1995)) and the Office of Management and Budget's (OMB's) regulations
(5 CFR part 1320) require that OMB approve certain information
collection
[[Page 43414]]
requirements imposed by agency rule. However, this rule contains no
information collection requirements and therefore is not subject to OMB
approval.
Administrative Procedure Act
The Administrative Procedure Act (APA) (5 U.S.C. 551-559) requires
rulemakings to be published in the Federal Register. The APA generally
mandates that an opportunity for comment be provided when an agency
promulgates regulations. Notice and comment are not required, however,
where a rule relates to agency personnel or agency organization,
procedure or practice or when the ``agency for good cause finds that
notice and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest'' (5 U.S.C. 553 (a)(2) and (b)(3)).
The Commission finds that notice and comment are unnecessary for
this rulemaking. The rulemaking concerns agency personnel and agency
organization, procedure, and practice, and for the most part, restates
provisions previously contained in earlier Commission ethics rules or
internal administrative requirements or DOE regulations applicable to
FERC. The Commission, therefore, finds good cause in accordance with 5
U.S.C. 553(d)(3) to make these rules effective upon publication in the
Federal Register.
Congressional Notification
The Small Business Regulatory Enforcement Fairness Act of 1996
requires agencies to report to Congress on the promulgation of certain
final rules prior to their effective dates. 5 U.S.C. 801. That
reporting requirement does not apply to this final rule because it
falls within a statutory exception for rules relating to agency
management or personnel. 5 U.S.C. 804(3)(B).
List of Subjects
5 CFR Part 3401
Conflict of interests, Government employees, Standards of conduct.
18 CFR Part 3c
Government employees, Standards of conduct.
Adopted: August 9, 1996.
By the Commission.
Lois D. Cashell,
Secretary, Federal Energy Regulatory Commission.
Approved: August 15, 1996.
Marilyn L. Glynn,
Deputy General Counsel, Office of Government Ethics.
For the reasons set forth in the preamble, the Commission, with the
concurrence of the Office of Government Ethics, is amending title 5 and
title 18, chapter I of the Code of Federal Regulations as set forth
below.
Title 5--[Amended]
1. A new chapter XXIV, consisting of part 3401, is added to title 5
of the Code of Federal Regulations to read as follows:
CHAPTER XXIV--FEDERAL ENERGY REGULATORY COMMISSION
PART 3401--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES
OF THE FEDERAL ENERGY REGULATORY COMMISSION
Sec.
3401.101 General.
3401.102 Prohibited financial interests.
3401.103 Procedures for accomplishing disqualification.
3401.104 Prior approval for outside employment.
Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government
Act of 1978); 42 U.S.C. 7171, 7172; E.O. 12674, 54 FR 15159, 3 CFR,
1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR,
1990 Comp., p. 306; 5 CFR 2635.105, 2635.402(c), 2635.403,
2635.502(e), 2635.604, 2635.803.
Sec. 3401.101 General.
In accordance with 5 CFR 2635.105, the regulations in this part
apply to employees of the Federal Energy Regulatory Commission
(Commission) and supplement the Standards of Ethical Conduct for
Employees of the Executive Branch contained in 5 CFR part 2635. In
addition to the standards in 5 CFR part 2635 and this part, employees
are subject to the executive branch financial disclosure regulations
contained in 5 CFR part 2634, additional regulations on
responsibilities and conduct at 5 CFR part 735, and Commission specific
provisions contained in 18 CFR part 3c.
Sec. 3401.102 Prohibited financial interests.
(a) General prohibition. Except as provided in paragraphs (b) and
(c) of this section, an employee, or the spouse or minor child of an
employee, shall not acquire or hold any securities of:
(1) A natural gas company;
(2) An interstate oil pipeline;
(3) A hydroelectric licensee or exemptee;
(4) A public utility;
(5) Any electric utility engaged in the wholesale sale or
transmission of electricity or having obtained an interconnection or
wheeling order under Part II of the Federal Power Act; or
(6) The parent company of an entity identified in paragraphs (a)(1)
through (a)(5) of this section.
(b) Waiver. The DAEO may grant a written waiver from this section
based on a determination that the waiver is not inconsistent with part
2635 of this title or otherwise prohibited by law and that, under the
particular circumstances, application of the provision is not necessary
to avoid the appearance of misuse of position or loss of impartiality,
or otherwise to ensure confidence in the impartiality and objectivity
with which Commission programs are administered. A waiver under this
paragraph may impose appropriate conditions, such as requiring
execution of a written disqualification.
(c) Definitions. For purposes of this section:
(1) The term securities includes all interests in debt or equity
instruments. The term includes, without limitation, secured and
unsecured bonds, debentures, notes, securitized assets, and commercial
paper, as well as all types of preferred and common stock. The term
encompasses both current and contingent ownership interests, including
any beneficial or legal interest derived from a trust. It extends to
any right to acquire any long or short position in such securities and
includes, without limitation, interests convertible into such
securities, as well as options, rights, warrants, puts, calls and
straddles with respect thereto. It does not include an interest in a
publicly traded or publicly available mutual fund or other collective
investment fund, or in a widely held pension or similar fund, provided
that the fund's prospectus does not indicate the objective or practice
of concentrating its investments in entities identified in paragraphs
(a)(1) through (a)(6) of this section, and the employee neither
exercises control nor has the ability to exercise control over the
financial interests held in the fund.
(2) The term parent means a company that possesses, directly or
indirectly, the power to direct or cause the direction of the
management and policies of an entity identified in paragraphs (a)(1)
through (a)(5) of this section.
[[Page 43415]]
Sec. 3401.103 Procedures for accomplishing disqualification.
(a) An employee, other than a member of the Commission, who is
required, in accordance with 5 CFR 2635.402(c), 2635.502(e), or
2635.604(a), to disqualify himself from participation in a particular
matter before the Commission shall provide written notice of
disqualification to his supervisor and to the DAEO when he becomes
aware of the need to disqualify himself from participation in the
matter. This procedure is required notwithstanding the guidance in 5
CFR 2635.402(c)(2), 2635.502(e)(2), and 2635.604(c).
(b) An employee may withdraw written notice under paragraph (a) of
this section upon determining that disqualification from participation
in the matter is no longer required. A withdrawal of disqualification
shall be in writing and shall be provided to the employee's supervisor
and to the DAEO.
Sec. 3401.104 Prior approval for outside employment.
(a) Prior approval requirement. An employee, other than a special
Government employee, must obtain written approval from the DAEO through
normal supervisory channels before engaging in outside employment with
any person who is a ``prohibited source'' as that term is defined at 5
CFR 2635.203(d).
(b) Approval of requests. Approval under this section shall be
denied only upon a determination by the DAEO that the outside activity
is expected to involve conduct prohibited by statute or Federal
regulations, including 5 CFR part 2635.
(c) Definitions. For purposes of this section, ``employment'' means
any form of non-Federal employment or business relationship or activity
involving the provision of personal services by the employee for
compensation other than reimbursement of actual and necessary expenses.
It includes, but is not limited to, personal services as an officer,
director, employee, agent, attorney, consultant, contractor, general
partner, or trustee.
Title 18--[Amended]
CHAPTER I--FEDERAL ENERGY REGULATORY COMMISSION
2. Part 3c of 18 CFR is revised to read as follows:
PART 3c--STANDARDS OF CONDUCT
Sec.
3c.1 Cross-reference to employee ethical conduct standards and
financial disclosure regulations.
3c.2 Nonpublic information.
3c.3 Reporting fraud, waste, abuse, and corruption and cooperation
with official inquiries.
Authority: 15 U.S.C. 717g; 16 U.S.C. 825(b); 42 U.S.C. 7171,
7172.
Sec. 3c.1 Cross-reference to employee ethical conduct standards and
financial disclosure regulations.
Employees of the Federal Energy Regulatory Commission (Commission)
are subject to the executive branch-wide financial disclosure
regulations at 5 CFR part 2634, the Standards of Ethical Conduct for
Employees of the Executive Branch at 5 CFR part 2635, the Commission
regulations at 5 CFR part 3401 which supplement the Standards of
Ethical Conduct, and the executive branch-wide employee
responsibilities and conduct regulation at 5 CFR part 735.
Sec. 3c.2 Nonpublic information.
(a) Section 301(b) (16 U.S.C. 825(b)) of the Federal Power Act and
section 8(b) (15 U.S.C. 717g) of the Natural Gas Act prohibit any
employee, in the absence of Commission or court direction, from
divulging any fact or information which may come to his or her
knowledge during the course of examination of books or other accounts.
(b) The nature and time of any proposed action by the Commission
are confidential and shall not be divulged to anyone outside the
Commission. The Secretary of the Commission has the exclusive
responsibility and authority for authorizing the initial public release
of information concerning Commission proceedings.
Sec. 3c.3 Reporting fraud, waste, abuse, and corruption and
cooperation with official inquiries.
(a) Employees shall, in fulfilling the obligation of 5 CFR
2635.101(b)(11), report fraud, waste, abuse, and corruption in
Commission programs, including on the part of Commission employees,
contractors, subcontractors, grantees, or other recipients of
Commission financial assistance, to the Office of Inspector General or
other appropriate Federal authority.
(b) All alleged violations of the ethical restrictions described in
Sec. 3c.1 that are reported in accordance with paragraph (a) of this
section to an appropriate authority within the Commission shall in turn
be referred by that authority to the Designated Agency Ethics Official
or his or her designee, or the Inspector General.
(c) Employees shall cooperate with official inquiries by the
Inspector General; they shall respond to questions truthfully under
oath when required, whether orally or in writing, and must provide
documents and other materials concerning matters of official interest.
An employee is not required to respond to such official inquiries if
answers or testimony may subject the employee to criminal prosecution.
[FR Doc. 96-21412 Filed 8-22-96; 8:45 am]
BILLING CODE 6717-01-M
