# {.i#f O, br,**os \.. -... UNITED STATES ENV,IRON MENTAL WASHINGTON. D.C. PROTECTION AGENCY 20156 

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MAR 2 r978 'ri 

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*n oF rcE ot c€NeF^L COufi:t€L !,18}lORANDT'M SUBJECT: FROM: TO: Guidance

### to states 

### for Meeting 

### conf,lict of



### fnterest Requiflents o{, S.lZa - David,

### o. 

## "r.*.1*r)affi<M Deputy General Counsel
.(A-l3O) Regional

### Air Directors The clean

### Air Act Amendments

### of Lg77 created, new 

### conflict of interest 

### require*i"is iJr uremrers 

### of certain 

### state board,s and executive agencies whi.crr 

### iie i; i" incorporated 

### into state rrnprineniiiio" prans by-august 7, 

### 1928- secrion L2gof,ttre 

### ect as

## *"of.i-il1"ii.1".n". all srps

### shallr at a ninirnr:n, 

### _requir- 

### that a 

### majority of the members 

### of any

### sratt board, 

### ;;-b;dy approving perurirs 

### or enforcement ord,ers rrnd,er

### irr.-a"t-ilpr""ent the public 

### interest and 

### nor d,erivJ

## Jit "-ii"i'ii"lrrr portion of, 

### rheir i'ncomesfrom persons srrbject

### to perm1ts 

### or enforsemenc orders 

### - Arso, 

### all such irembers 

### ina treaas 

### of executive agenci.es 

### with sirnilar pohTers must be required, 

### io-"a.qr.ately disclose any 

### potential confliets of interest. rhe encl0sed 

### letter and,

### the suggested,

### definitions attached 

### ro it are intend,ed,

### tJ-pt""iil gruidance

### to the States eoncernj.ng. the.fgguirero"iti-oe- SfZe 

### . fnsofar as 

### possible, giyen irre di,ffdrences bet!,reen 

### the statutes, the suEgested 

### definitions are consisteni-with the 

### conflict of 

### interest regrula$Jns-""a." S3O4

### oi-tf,e grVpCA (40 CFR 5124.94). 

### rn view

### of the 

### fact rhar T?ny 

### stare 

### regislird;; ir" ,."ri.ns no!f, you may trant 

### to expediti aistrilution of the letter and sussesred 

### definiri.ons 

### t6 rhe 

## .il;;;iit.-"'tii.Ti.i,o+itiq". '\. -- !-.. II

E s+ L t.- t' f

)r,'i?EcEit/ED biqR I 0 i973( 

### - severar issues have 

### arisen which are 

### not incruded 

### in the 

### letter for direct corununic"titn-to 

### the states 

### r but which you nay need

### to r" aware

### of in counseling 

### states on corupliance. 

### Timinq:. section l28.requires 

### that 

### all srps include 

## ccnr'ffi riJiesr"piJ"iiF;i:!| elrso"t

## 7, Ls7s. rhere 

### is somequestion 

### wheti.i gpawiu'tre'prep3Teg 

### ro promurgate 

### regulations by

### that date

### fg" 

### "ir-slit." which have nor 3dopted approlabre 

### sip-r",risions 

### ""-i+". The Agency

### wilr, nor'rever 

### , require adequate 

### .""iii"t-'oi rnterest provis ion 

### in rhe L97g

### srp ,Jrri"=Gir. ntt.: lt;

- 

### Pernits and enforcelgent ord, by non ):i 2.

- vee4(rtr:'I.ng qUgStiOn 

# :::ff: Iltl.l.: :3t"?:*1: Fr.ib;;;-enforceable 

### in 

## r Eoatrds:

t 

### courts 

## if, rhey

## aii isJ"ed

# !i 

# ;iLlLffi:'ff:"*!,il"li, which do nor meet rhe 

### requ#etd;;; Ji'section 

### r2g. rn rbe absence

### of Tl-_"p""iiic-irovr"io"-to the contrary 

### in tbe 

### Act,

### t'e Agenc{ Eray

### evenrua*t-t"k"-tt. position-that such 

### pe*its and eniorcimeni--orae"; 

### ;""ra1e both approvabre and, enforceabre. --uoweveii-vo" rnighi-w]it- to_

### alert- 

### states

### to the 

### possibilirv thar 

### p"rairi -or enforc.n"rri-oia!"J i"-lo"d by non-complyins 

### stale board,s^"i!-:!:I"gi;. 7

### , le7', may be 

### sublect

### to chalrenge ia, 

### u,a 

### courts. '' I2 rtld, mi whil e we be

## ri:::- 

## *"

_

### :l,rF 

## ;.#' il;uilu l=fi3:i"L:.ffi 

# ;,* trevel 

### of strilg:l"v-r"e,lir.A Uy-J".tI;" L2g, rhe srares 

### are autrrorized 

### ro laop€

### *g". :i"i";;i regrrtarions. some 

### states nav wanr

### to "oit"ii.:_"9:piiiJ:iuairional provisions 

### for sereciion

### of "or.--ttttoler 

### of uoaia members 

### fron 

### rists subtnitted by 

### state .or,."r.r"gi""- 

### i;;il.", by 

### a panel 

### of representatives 

### of environmentally 60ncernea 

### public interest groups 

### r or by some

### similar mechanism. 

# "'r." ffiJ:ng$::S",. 

## ;iit:Yl':-i?:.',r'"i ire-+l 

# ;g;;;-il nesarive rerms.



### rf , other problems 

### arise which are 

### not ad,d,ressed, 

### in 

## iFff 

## iBi#;;i

.

## it"r;;;";tact Rob.iti-s"ruch 

### or rqr

### starr

t::Model 

### Letter -rom Regional 

### offices 

### to Dcates



### Re: Conflict of



### . State Boards

### Interest Requirements 

### for Certaj.n

and Executive Agencies



### . The clean

### Air Act Amendsrents

### of Lg77 added

### to the Act 

### section L28, which 

### sets out neir

### conflict of interest requirements f,or 

### certain state boards and,executive agencies. Seetion L2B 

### is somewhat

### similar 

### ro 5304 

### (i) (2) (D) 

### of the Federal firater 

### pollution control 

### Act (FgfpcAr €lsanend,ed, December 

### 28, L977

### ) and 

### is generarly ained 

### at assuring 

### that decisions

### to issue 

### pamits 

### or enforcement orders 

### neither be 

### nor appear

### to be influenced by 

### the 

### private interests of 

### individual decision makers More

### specifically, Section L2g provid,es 

### that by Augrust

### 7, 1979,

### arr state rnprementation 

### prans (srps) shalr 

### require 

### that a 

### majority 

### of the members

### of any 

### state body 

### issuing pa:mits 

### or enforcement ord,ers und,er 

### the clean 

### Air A'ct 

### (1) represent 

### the 

### public 

### interest and, 

### (2) not derive any. 

### significant portion 

### of their incomes from persons subject to such 

### pomits 

### or ord,ers. 

### In addition, the SIps must require 

### that 

### all mernbers

### of such boards and

### the head,s

### of executive agencies 

### with si:uilar powers d,iscl0se any 

### potential conflicts 

### of interest. Finally, section 12g provides 

### that states may ad,opt more

### stringent 

### conflict of interest requirements 

### if they 

### wish, and

### that EpA 

### sharr approve any such requirements 

### if srrbmitted as 

### part 

### of a Sfp. -


### r ts ,'v I

r=! a'? F

-ti \., 

### ' rn many

### states the composition 

### of state board,s af,fected by 

### section 128

### is determined by 

### statute, and 

### regisrative action may be required,

### to comply 

### with the ne,^r reguirenents. Executive orders nay arso be necessary 

### iJ, some

### cases. rn view 

### of the

### fact that many

### state regisratures are meeting nord, EPA

### is provlding 

### this guidance so

### that state agencies and 

### legislatures can begia work irnnediately on any 

### legisla_ 

### tlve or other actions necessary 

### to implenent 

### section l2g. Attached 

### to trris retter is a set 

### of suggested d,efin_ 

### itions for key phrases appearing 

### in sectj.on 

### l2g. The suggested 

### definitions are offered,

### for two 

### purposes: 

### (r) to 

### assist tlre states 

### in identif,yiog the 

### principar issues

### that must be addressed 

### in proposed,

### srp 

### revisions, and 

### (z) to suggest 

### provisions 

### that EpA would, view as approvable elements 

### of a Sfp 

### revision. To 

### the extent 

### possible, the suggested 

### definitions are consistent 

### with those appearing 

### in the 

### conflict of interest regurations issued rr,nd,er s3o4

### (i) (2)

. (D)

### of the FT{pcA (40 

### crn stz 4.94) 

### . Differences berween the two 

### sets 

### of defi,nitions 

### reflect statutory dif,f erences, 

### including the more

### stringent 

### eligibility require'ents 

### of the water

### Act and

### the inciusion 

### of d,isclosure requirements 

### in the

### Air Act. The Agency recogmizes

### that states have 

### a vari.ety of procedures and 

### special concerns 

### that maywarrant 

### differing approaches

### to inplementation 

### of section 

### 12g. Accordingly, 

### this guidance 

### is not intend,ed,

### to suggest

### that all srPs must i'i f" t, i

- ; : i.', Pi
I

E 1: s

I

- F l:'.' I i

;t, 3 

### include 

### the suggested

### definitions verbati-mr 

### or even

### that 

### definitions per se must be included 

### in the 

### srps. rn generar, however, EFAviews 

### the substance 

### of the suggested 

### definitions as representing 

### the ninirnrrm 

### level 

### 0f stringency necessary to meet

### the requirenents 

### of Secti,on 12g. As ind,icated above, any 

### state 

### is free

### to adopt more 

### stringent 

### conflict of interest provisions than those ::equired by Section 

### 128. rf you 

### are 

### in doubt as

### to the appropriate standards calred, 

### for by your 

### state's particular scheme, 

### erring on

### the side of,

### tigbter rather than looser 

### controls may avoid, 

### the necessity 

### of srp d,isapproval and, the imposition 

### of federal requirements 

### that may 

### not be best 

### suited 

### to the needs

### of your progrF,n. 

### rf.you have questions 

### not answered, by

### this retter, please do 

### not hesitate to contact (202-755-0789), 

### Office of the General quarters 

### in Washington, D.C. :

I

i.-.. l? t.l

-

i.:t I 

### or Roberta Baruch Counsel

### at EpA ilead,-

### S rgested 

### Definitions



### (a) "Board 

### or body;' includes any 

### individual, agency, board, 

### r corrmittee 

### , council, department, 

### or other state , 

### 'localr on 

### regional instrr:nrentality authorized

### to approve per:nits 

### or enforcement orders r:nder

### the clean

### Air Act, in the 

### first jnstance

### or on appeal. 

### (b') "MaJority 

### of members' neansa 

### majority 

### of arr menbers 

### of a board 

### or body having

### or sharing 

### authority to approve 

### pemits 

### or enforcement orders under 

### the clean 

### Air 

### Act, and,a 

### majority 

### of mernbers making up any panel

### of fewer than 

### all rnembers (incruding paners 

### .; a single manher) where 

### individuar permits 

### or ord,ers 

### are consid,e:ed 

### by such 

### a paner. 

### (c) "Represent 

### the prrblic 

### interest" means d,oes not obrn

### a 

### controrling 

### interest 

### in, have 

### 5* 

### or more

### of his or 

### her 

### capital invested 

### in, serve as 

### attorney 

### for, act as consultant 

### for, serve as

### officer or director 

### of, or holC any 

### other

### official or contractual 

### relationship 

### with any person 

### subject

### to Ele:mits 

### or enforcement orders under the 

### clean'air Act 

### or any trad,e 

### or business 

### assoiiation 

### of which such 

### a person 

### is a meqrber. 

### (d) "significant portion of income,, means 

### l0 percent 

### or more

### of gross personal income

### for a calendar 

### year, incruding

.

### retirement benef,its, consultant fees 

### r BDdstock d,ivid,enCs, excePt 

### tlrat 

### it shall mean 50

### p".."rrfi#TJ""s pdrsonal income 

### for a calendar year 

### if the 

### recipient is over G0years 

### of age and 

### is receiving such 

### portion pursuant,

### to retirement, pension, 

### or si-urilar arrangement- For purposes 

### of this section, income a i-'c ;r,--1 ,*;:, lf -,: l.a.

-

-Flll

- !Fh. lrr Fsj;r Fri: H;;n; ll* 1,":. I : :

--

### derived from nutualifund, 

### palaents, 

### or from 

### other 

### diversified investnents as

### to which

### tlre 

### recipient d,oes 

### not know the 

### identity of the prj-nary sou:rces 

### of income, 

### shall be considered 

### part 

### of the 

### recipien't's gross personal income 

### but 

### shall not be treated, as income d,erived, f,rom persons 

### subject 

### to pe:mits 

### or enforcement orders under 

### the clean 

### Air Act. 

### (e) "Persons 

### subject

### to pomits 

### or enf,orcernent orders under 

### this Acto includes any 

### individual, corporation, partnership 

### r or association who holds 

### , is €rn

### applicant 

### for, 

### or is sr:bject

### to any 

### Bermit, 

### or who

### is or may become srrbject 

### to any enforcernentorder und,er 

### the clean 

### Air Act, exeept th€It

### it, does 

### not includ,e 

### (l) €ur

### ind,ividrial who 

### is or may becoue 

### subject 

### to an enforeement 

### order sorely by reason 

### of hi.s 

### or her ownership 

### or operation 

### of a motor 

### vehicrer 

### or (2) any department 

### or agency of,

### a 

### state, local 

### r or regional government. 

### (f) "potential 

### conflict of interest,' includes 

### (l) any income from persons sr:bject

### to permits 

### or enforcement orders r:nder

### this Act, and. 

### (2) any 

### interest 

### or relationship that, would preclude 

### the 

### individual having 

### the 

### interest or 

### relationship from being considered, one who represents the 

### public interest. (g) nAdequately d-isclosed,,, means explained 

### in a signed 

### written statement prepared,

### at least andavaj.lable

### for public inspection. 

### in detail annually t'
I

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