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Supplemental Ethics Standards for EPA Employees (5 C.F.R. 6401)

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TITLE 5--ADMINISTRATIVE PERSONNEL

CHAPTER LIV--ENVIRONMENTAL PROTECTION AGENCY

PART 6401--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE
ENVIRONMENTAL PROTECTION AGENCY--Table of Contents

Sec. 6401.101 General.

In accordance with 5 CFR 2635.105, the regulations in this part
apply to employees of the Environmental Protection Agency and supplement
the Standards of Ethical Conduct for Employees of the Executive Branch
contained in 5 CFR part 2635.

(a) The following employees are prohibited from holding the types of
financial interests described in this section:
(1) Employees in the Office of Mobile Sources are prohibited from
having outside employment with or holding stock or any other financial
interest in manufacturers of automobiles and mobile source pollution
control equipment.
(2) Employees in the Office of Pesticide Programs are prohibited
from having outside employment with or holding stock or any other
financial interest in companies that manufacture or provide wholesale
distribution of pesticide products registered by the EPA. These
restrictions apply to companies with subsidiaries in these areas but do
not include retail distributors to the general public.
(3) Employees in the Office of Information Resources Management
involved with data management contracting or computer contracting are
prohibited from having outside employment with or holding stock or any
other financial interest in data management, computer, or information
processing firms.
(4) Employees who perform functions or duties under the Surface
Mining Control and Reclamation Act (such as reviewing Environmental
Impact Statements of the Office of Surface Mining in the Department of
Interior) are prohibited by 30 U.S.C. 1211(f) from holding direct or
indirect interests in underground or surface coal mining operations.
(i) Implementing regulations of the Office of Surface Mining at 30
CFR 706.3 define the terms ``direct financial interest'' and ``indirect
financial interest'' as follows:
(A) Direct financial interest means ownership or part ownership by
an employee of land, stocks, bonds, debentures, warrants, a partnership,
shares, or other holding and also means any other arrangement where the
employee may benefit from his or her holding in or salary from coal
mining operations. Direct financial interests include employment,
pensions, creditor, real property and other financial relationships.
(B) Indirect financial interest means the same financial
relationships as for direct ownership but where the employee reaps the
benefits of such interests, including interests held by the employee's
spouse, minor child or other relatives, including in-laws, residing in
the employee's home. The employee will not be deemed to have an indirect
financial interest if there is no relationship between the employee's
functions or duties and the coal mining operation in which the spouse,
minor child or other resident relative holds a financial interest.
(ii) Violation of the restrictions in this section is punishable by
a fine of up to $2,500 or imprisonment for not more that one year, or
both.
(iii) Employees who perform functions or duties under the Surface
Mining Control and Reclamation Act are not prohibited thereunder from
holding interests in excepted investment funds as defined at 5 CFR
2634.310(c)(2) provided that such funds are widely diversified, that is,
hold no more than 5% of the value of their portfolios in the securities
of any one issuer (other than the United States Government) and no

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more than 20% in any particular economic or geographic sector.
(5) Members of the Interagency Testing Committee established under
section 4(e) of the Toxic Substances Control Act (15 U.S.C. 2603(e)) are
prohibited thereunder from holding any stocks or bonds, or having any
substantial pecuniary interest, in any person engaged in the
manufacture, processing, or distribution in commerce of any substance or
mixture subject to any requirement of the Act or any rule or order
issued under the Act and, for a period of twelve months after their
committee service has ceased, are prohibited thereunder from accepting
employment or compensation from any person subject to any requirement of
the Act or to any rule or order issued under the Act.
(i) The statutory prohibitions in this section are enforceable by an
action for a court order to restrain violations.
(ii) Members of the Interagency Testing Committee are not prohibited
thereunder from holding interests in excepted investment funds as
defined at 5 CFR 2634.310(c)(2) provided that such fund are widely
diversified, that is, hold no more than 5% of the value of their
portfolios in the securities of any one issuer (other than the United
States Government) and no more than 20% in any particular economic
sector.
(b) The Designated Agency Ethics Official or the cognizant Deputy
Ethics Official may grant a written waiver from the prohibitions in
paragraph (a)(1) through (a)(3) of 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 prohibition 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 agency programs are administered. A waiver under this paragraph
may impose appropriate conditions, such as requiring execution of a
written disqualification.

(a) Requirement for approval. An employee shall obtain approval from
his or her Deputy Ethics Official before engaging in outside employment,
with or without compensation, that involves:
(1) Consulting services;
(2) The practice of a profession as defined in 5 CFR 2636.305(b)(1);
(3) Holding State or local public office;
(4) Subject matter that deals in significant part with the policies,
programs or operations of EPA or any matter to which the employee
presently is assigned or to which the employee has been assigned during
the previous one-year period; or
(5) The provision of services to or for:
(i) An EPA contractor or subcontractor;
(ii) The holder of an EPA assistance agreement or subagreement; or
(iii) A firm regulated by the EPA office or Region in which the
employee serves.
(b) Form and content of request. The employee's request for approval
of outside employment shall be submitted in writing to his or her Deputy
Ethics Official. The request shall be sent through the employee's
immediate supervisor (for the supervisor's information) and shall
include:
(1) Employee's name, title and grade;
(2) Nature of the outside activity, including a full description of
the services to be performed and the amount of compensation expected;
(3) The name and business of the person or organization for which
the work will be done (in cases of self-employment, indicate the type of
services to be rendered and estimate the number of clients or customers
anticipated during the next 6 months);
(4) The estimated time to be devoted to the activity;
(5) Whether the service will be performed entirely outside of normal
duty hours (if not, estimate the number of hours of absence from work
required);
(6) The employee's statement that no official duty time or
Government property, resources, or facilities not available to the
general public will be used

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in connection with the outside employment;
(7) The basis for compensation (e.g., fee, per diem, per annum,
etc.);
(8) The employee's statement that he or she has read, is familiar
with, and will abide by the restrictions described in 5 CFR part 2635
and Sec. 6401.102; and
(9) An identification of any EPA assistance agreements or contracts
held by a person to or for whom services would be provided.
(c) Standard for approval. Approval shall be granted only upon a
determination that the outside employment is not expected to involve
conduct prohibited by statute or Federal regulation, including 5 CFR
part 2635 and Sec. 6401.102. The decision must be in writing.
(d) Keeping the record up-to-date. If there is a change in the
nature or scope of the duties or services performed or the nature of the
employee's business, the employee must submit a revised request for
approval. Where an employee transfers to an organization for which a
different Deputy Ethics Official has responsibility, the employee must
obtain approval from the new Deputy Ethics Official. In addition, each
approved request is valid only for five years unless the employee's
Deputy Ethics Official specifies a longer time period.
(e) Definition of employment. For purposes of this section,
``employment'' means any form of non-Federal employment, business
relationship, or activity involving the provision of personal services
by the employee, whether or not for compensation. It includes but is not
limited to personal services as an officer, director, employee, agent,
attorney, consultant, contractor, general partner, trustee, teacher, or
speaker. It includes writing when done under an arrangement with another
person for production or publication of the written product. It does
not, however, include participation in the activities of nonprofit
charitable, religious, professional, social, fraternal, educational,
recreational, public service, or civic organizations, unless such
activities are for compensation other than reimbursement for expenses.

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