[Federal Register Volume 62, Number 19 (Wednesday, January 29, 1997)]
[Notices]
[Pages 4408-4411]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2177]



Federal Register / Vol. 62, No. 19 / Wednesday, January 29, 1997 / 
Notices

[[Page 4408]]



DEPARTMENT OF ENERGY


Privacy Act of 1974; Establishment of a New System of Records

AGENCY: Department of Energy.

ACTION: Proposed establishment of a system of records.

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SUMMARY: The Department of Energy (DOE) proposes to establish a system 
of records identified as DOE-83 and entitled ``Allegation-Based 
Inspections Files of the Office of Inspector General.'' The Office of 
Inspector General's (OIG's) Office of Inspections compiles various 
files that are collected and maintained to assist in the performance of 
the functions of the Office of Inspector General (OIG). The Office of 
Inspections performs various inspections and analyses as required by 
the OIG. An OIG inspection is an examination of a DOE or DOE contractor 
organization, program, project, function, or activity.
    The proposed system of records will cover only the files of 
inspections based on allegations or complaints and which identify 
subjects and sources of information by name. Inspections performed 
relate to sensitive allegations of wrongdoing received concerning 
certain individuals, including agency or DOE contractor employees, or 
other persons or entities with some relationship to the agency. 
Allegations include, but are not limited to, abuse of authority; misuse 
of government time, property, or position; conflicts of interest; 
whistleblower reprisal; or other non-criminal violations of law, rules, 
or regulations. The proposed system of records will contain work 
papers, summaries of work papers, memoranda of interviews, interview 
notes, memoranda to the file, memoranda for the record, information 
provided by complainants, contractors and other interested parties, and 
related documentation.

DATES: Comments should be submitted on or before March 31, 1997.

ADDRESS: Written comments should be addressed to GayLa D. Sessoms, 
Director, Freedom of Information Act and Privacy Act Division, U.S. 
Department of Energy, HR-78, 1000 Independence Avenue, SW, Washington, 
DC 20585, (202) 586-5955.

FOR FURTHER INFORMATION CONTACT:

Jacqueline M. Becker, Office of Inspector General, U.S. Department of 
Energy, IG-1, 1000 Independence Avenue, SW, Washington, DC 20585, (202) 
586-4393; or
GayLa D. Sessoms, Director, Freedom of Information Act and Privacy Act 
Division, U.S. Department of Energy, HR-78, 1000 Independence Avenue, 
SW, Washington, DC 20585, (202) 586-5955; or
Abel Lopez, Office of General Counsel, U.S. Department of Energy, GC-
80, 1000 Independence Avenue, SW, Washington, DC 20585, (202) 586-8618.

SUPPLEMENTARY INFORMATION: This notice establishes a new system of 
records entitled ``Allegation-Based Inspections Files of the Office of 
Inspector General.'' The proposed system of records will cover only the 
files of inspections based on allegations or complaints and which 
identify subjects and sources of information by name. The system of 
records is necessary to perform the functions of the Office of 
Inspector General. Exemptions to certain provisions of the Privacy Act 
also are necessary and are being published as a Proposed Rule elsewhere 
in this issue.
    Allegation-Based Inspections Files are maintained to document 
information concerning allegations or complaints about DOE or DOE 
contrator programs or operations. The files may contain information 
about civil or administrative wrongdoing, or about fraud, waste, or 
mismanagement, or other violations of law or regulation. This 
information could be the basis for administrative corrective action or 
referrals to appropriate authorities for civil or criminal 
investigation or prosecution.
    The Allegation-Based Inspections Files contain information that if 
disclosed would substantially compromise the effectiveness of OIG 
inspections and inquiries. These files contain information about 
informants, complainants, contractor personnel, sources of information, 
witnesses, and inspections personnel. These files also contain the 
names of persons or agencies who have received certain information 
contained in these files.
    Information in this system of records will be maintained pursuant 
to certain functions of the Inspector General (IG). Those functions 
require that the Office of Inspections conduct inspections and analyses 
of Departmental operations and programs. Exemptions from certain 
provisions of the Privacy Act are needed to accomplish the inspection 
function of the Office of Inspector General, to maintain the integrity 
and confidentiality of personal information, and to prevent disclosure 
of sensitive or classified information. These exemptions are also 
needed to prevent subjects of inspections or inquiries from frustrating 
the inspection or inquiry process and to prevent the disclosure of 
inspection or inquiry techniques. Finally, these exemptions will enable 
the IG to fulfill commitments to protect the confidentiality of 
sources, to maintain access to sources of information, and to avoid 
endangering sources or Office of Inspections personnel.
    The information that will be exempt includes, but is not limited 
to, information that identifies program operating procedures, program 
operation violations, program management violations, and alleged 
violators. This information will consist of identifying data and 
information about fraud, waste, or mismanagement. Other exempt data 
will be documentation, information from informants, complainants, 
contractor personnel, reports by inspectors, and information that can 
identify an individual.
    When a Privacy Act request for exempt records concerning an 
individual is received from that individual, that request will be 
processed under the Freedom of Information Act. This will provide the 
maximum disclosure of responsive records to the individual.
    This system is established pursuant to the Inspector General Act of 
1978, as amended, 5 U.S.C. App. 3. The statute mandates that the 
Inspector General provide leadership and coordination, and recommend 
policies for activities designed to promote economy, effectiveness, and 
efficiency in the administration of DOE programs or operations. The IG 
is also mandated to conduct activities relating to the prevention or 
detection of fraud or abuse in these programs or operations.
    The maintenance of this system could have a substantial effect on 
the privacy and other rights of individuals. However, the Department 
has adopted measures to ensure that maintaining this information will 
not compromise the privacy and other rights of the affected 
individuals. The information will be collected only for the stated 
purpose, access to the information will be restricted, and the 
information will be maintained in a secured manner.
    The text of the system notice is set forth below.

    Issued in Washington, DC on December 31, 1996.
Archer L. Durham,
Assistant Secretary for Human Resources and Administration.
DOE-83

SYSTEM NAME:
    Allegation-Based Inspections Files of the Office of Inspector 
General.

[[Page 4409]]

SECURITY CLASSIFICATION:
    Generally unclassified. Some records may contain classified 
material.

SYSTEM LOCATION:
    Official Allegation-Based Inspections Files are located at:
    U.S. Department of Energy, Office of Inspector General, 
Headquarters, 1000 Independence Avenue, SW, Washington, DC 20585.
    U.S. Department of Energy, Office of Inspector General, PO Box 
5400, Albuquerque, New Mexico 87115.
    U.S. Department of Energy, Office of Inspector General, PO Box 
2270, Livermore, California 94550.
    U.S. Department of Energy, Office of Inspector General, PO Box 
1328, Oak Ridge, Tennessee 37831.
    U.S. Department of Energy, Office of Inspector General, PO Box A, 
Aiken, South Carolina 29808.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who are the subjects of inspections or inquiries 
concerning allegations or complaints, individuals who have pertinent 
knowledge about the inspection or inquiry, individuals authorized to 
furnish information, confidential informants, or complainants, Office 
of Inspector General (OIG) inspections personnel, and other individuals 
involved in these inspections.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Inspection files predicated on allegations or complaints and which 
identify subjects and sources of information by name. Inspections 
performed relate to sensitive allegations of wrongdoing received 
concerning certain individuals, including agency employees, or other 
persons or entities with some relationship to the agency. Allegations 
include, but are not limited to, abuse of authority; misuse of 
government time, property, or position; conflicts of interest; 
whistleblower reprisal; or other non-criminal violations of law, rules, 
or regulations.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The Inspector General Act of 1978, as amended, 5 U.S.C. App. 3.

PURPOSE(S):
    Pursuant to the Inspector General Act of 1978, as amended, 5 U.S.C. 
App. 3, the records in this system are used by the OIG in furtherance 
of the responsibilities of the Inspector General. These 
responsibilities include evaluating the effectiveness and efficiency of 
an operation, determining compliance with laws and regulations, 
evaluating Departmental program operations and results, preventing and 
detecting fraud and abuse in such programs and operations, and assuring 
the investigation of complaints by contractor employees alleging 
retaliation for making disclosures protected under 10 CFR part 708 and 
41 U.S.C. 315, section 6006.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    Pursuant to the Inspector General Act of 1978, as amended, 5 U.S.C. 
App. 3, information contained in the files of the OIG Office of 
Inspections is collected and maintained in carrying out the duties and 
responsibilities of the Inspector General to evaluate the effectiveness 
and efficiency of an operation, determine compliance with laws and 
regulations, evaluate Departmental program operations and results, and 
prevent and detect fraud and abuse in such programs and operations. 
Material compiled is used for prosecutive, civil, or administrative 
actions.
    1. Pursuant to section 552a(b)(7), the Department will provide a 
record within this system of records for law enforcement purposes at 
the prior written request of the head (or designee of the head) of a 
Federal agency or instrumentality. In the event that a record within 
this system of records, alone or in conjunction with other information, 
indicates a violation or potential violation of law, regulation, policy 
or procedure, whether civil, criminal or regulatory in nature, and 
whether arising by general statute or particular program pursuant 
thereto, the Department, at its initiative, may refer relevant records 
in the system of records as a routine use to the appropriate agency, 
whether Federal, State, local, or foreign, charged with the 
responsibility of investigating or prosecuting such violation or 
charged with enforcing or implementing the statute, or rule, regulation 
or order.
    2. To disclose information to any source from which additional 
information is requested, when necessary to obtain information relevant 
to an IG inspection, the source will be provided such information from 
the system of records only to the extent necessary to identify the 
individual, inform the source of the purpose(s) of the request, and to 
identify the type of information requested.
    3. A record from this system of records may be disclosed to a 
Federal agency, in response to its written request, to facilitate the 
requesting agency's decision concerning the hiring or retention of an 
employee, the issuance of a security clearance, the reporting of an 
investigation of an employee, the letting of a contract, or the 
issuance of a license, grant, or other benefit, to the extent that the 
information is relevant and necessary to the requesting agency's 
decision on the matter and the Department deems the disclosure to be 
compatible with the purpose for which the Department collected the 
information.
    4. For purposes of settlement of claims and the preparation and 
conduct of litigation, a record in this system of records may be 
disclosed to: (1) The Department's and its contractors' counsel; (2) 
other counsel representing the United States Government; (3) 
individuals or companies represented by Department counsel or counsel 
to other United States Government agencies; (4) opposing counsel; (5) 
persons possessing information pertaining to the claims or litigation 
to the extent necessary to obtain relevant information; and (6) 
claimants or other parties to the claim or litigation.
    5. A record from this system of records may be disclosed in court 
or administrative proceedings to the tribunals, counsel, other parties, 
witnesses, and the public (in publicly available pleadings, filings or 
discussion in open court) when individuals or entities listed below are 
parties to, or have an interest in, the litigation or proceedings and 
the Department determines that such disclosure: (1) Is relevant to, and 
necessary for, the procceeding; and (2) is compatible with the purpose 
for which the Department collected the records:

    (a) The agency, or any component thereof;
    (b) Any employee of the agency in his or her official capacity;
    (c) Any employee of the agency in his or her individual capacity 
where the United States has agreed to represent the employee;
    (d) The agency's contractors and contractors' employees where the 
Department has agreed, or is obligated by statute, to represent such 
persons; and,
    (e) The parties and their representatives in a 10 CFR part 708 and 
41 U.S.C. 315, section 6006 proceeding.

    6. A record from this system of records may be disclosed to foreign 
governments or international organizations, in accordance with 
treaties, international conventions, or executive agreements.
    7. A record from this system of records may be disclosed as a 
routine use to the Office of Management and Budget (OMB) in connection 
with the

[[Page 4410]]

review of private relief legislation as set forth in OMB Circular No. 
A-19 at any stage of the legislative coordination and clearance process 
as set forth in that Circular.
    8. A record from this system of records may be disclosed to 
Department contractors in performance of their contracts, and their 
officers and employees who have a need for the record in the 
performance of their duties subject to the same limitations applicable 
to Department officers and employees under the Privacy Act.
    9. A record from this system of records may be disclosed to a 
member of Congress submitting a request involving the individual when 
the individual has requested assistance from the member with respect to 
the subject matter of the record, and the member of Congress provides a 
copy of the individual's request or an other written statement clearly 
delineating the scope of the individual's request for assistance.
    10. A record from this system of records which contains medical 
and/or psychological information may be disclosed to the physician or 
mental health professional of any individual submitting a request for 
access to the record under the Privacy Act of 1974 and the Department's 
Privacy Act regulations if, in its sole judgment and good faith, the 
Department believes that disclosure of the medical and/or psychological 
information directly to the individual who is the subject of the record 
could have an adverse effect upon that individual, in accordance with 
the provisions of 5 U.S.C. 552a(f)(3) and applicable Department 
regulations.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Paper, micrographic, and/or electronic media.

RETRIEVABILITY:
    By name of individual involved, case number, report title or 
subject matter.

SAFEGUARDS:
    Allegation-Based Inspections Files are maintained within locked 
containers or areas. Classified information is maintained in locked 
General Services Administration approved class 6 security containers. 
Data maintained on personal computers can be accessed only by 
authorized staff using established procedures.

RETENTION AND DISPOSAL:
    Records retention and disposal authorities are contained in DOE 
Order 1324.2. ``Records Disposition.'' Records within DOE are destroyed 
by shredding, burning, or burial in a sanitary landfill, as 
appropriate. Automated files are handled and maintained according to 
approved security processes.

SYSTEM MANAGER(S) AND ADDRESS:
    Deputy Inspector General for Inspections, U.S. Department of 
Energy, Room 5B-250, 1000 Independence Avenue, SW, Washington, DC 
20585.

NOTIFICATION PROCEDURE:
    The Department of Energy has exempted the system from this 
requirement. See the Exemption section of this notice.

RECORD ACCESS PROCEDURES:
    Same as Notification Procedures above.

CONTESTING RECORD PROCEDURES:
    Same as Notification Procedures above.

RECORD SOURCE CATEGORIES:
    Subject individuals; individuals and organizations that have 
pertinent knowledge about a subject individual or corporate entity; 
those authorized by an individual to furnish information; confidential 
informants; and Federal Bureau of Investigation (FBI) and other 
Federal, state, and local entities.

SYSTEM EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
    Under 5 U.S.C. 552a(k)(1) and (2) of the Privacy Act, this system 
is exempt from the following subsections:

5 U.S.C. 552a(c)(3)
5 U.S.C. 552a(d)
5 U.S.C. 552a(e)(1)
5 U.S.C. 552a(e)(4) (G) and (H)
5 U.S.C. 552a(f)

    Exemption (k)(1) provides that the head of an agency may exempt an 
agency system of records from certain provisions of the Privacy Act if 
the system of records is subject to section 552(b)(1) of the Freedom of 
Information Act, 5 U.S.C. 552. That section of the Freedom of 
Information Act protects from disclosure properly classified national 
security information.
    The proposed system of records will exempt properly classified 
national security information in the OIG's Allegation-Based Inspections 
Files. The detailed reasons for exemptions under 5 U.S.C. 552a(k)(1) 
follow:
    (1) 5 U.S.C. 552a(c)(3) requires that, upon request, an agency must 
give an individual named in a record an accounting which reflects the 
disclosure of the record to other persons or agencies. This accounting 
must state the date, nature, and purpose of each disclosure of the 
record and the name and address of the recipient. The Department of 
Energy has programs involving classified material which may be the 
subject of Office of Inspections review. The application of this 
accounting provision to reviews involving properly classified material 
could reveal classified material. If this information about classified 
material were disclosed, national security might be compromised.
    An example of an issue involving classified material which can 
affect national security would be a review of the Department's 
maintenance or transportation of special nuclear material. Such 
information could be utilized by terrorist groups. Another example 
would be Departmental work with intelligence information obtained from 
other Federal agencies.
    (2) 5 U.S.C. 552a(d), (e)(4) (G) and (H), and (f) relate to the 
following: an individual's right to be notified of the existence of 
records pertaining to such individual; requirements for identifying an 
individual who requests access to or amendment of records; and agency 
procedures relating to access to and amendment of records and the 
content of information contained in such records. If these provisions 
were applied to classified material in the Allegation-Based Inspections 
Files, this could (1) interfere with inspections or inquiries 
undertaken in connection with national security; (2) disclose the 
identity of sources kept secret to protect national security; (3) 
reveal classified information kept secret to protect national security 
supplied by these sources; or (4) generally violate the secrecy of the 
classification.
    For example, the Office of Inspections conducts counterintelligence 
administrative inquiries and inspections. These reviews are to uncover 
clandestine relationships, contacts with foreign intelligence services, 
and other hostile activities. Such actions could be directed against 
Departmental facilities, property, personnel, programs, and contractors 
and contractor employees. These hostile activities may be conducted by 
foreign powers, foreign organizations or their agents. In conducting 
these reviews, the Office of Inspections collects classified 
information that if disclosed could compromise Federal 
counterintelligence activities.
    The Office of Inspections may also compile information pertaining 
to foreign energy matters. Disclosure of this information could 
identify sensitive sources and methods used by the national 
intelligence community. The Office of Inspections may compile

[[Page 4411]]

information regarding classified technology being developed by the 
Department or other agencies. Disclosure of this information could 
identify sensitive Departmental projects or operations that could be 
targets for foreign intelligence service collection operations.
    (3) 5 U.S.C. 552a(e)(1) requires each agency to maintain in its 
records only such information about an individual that is relevant and 
necessary to accomplish a purpose of the agency required by statute or 
Executive Order. The OIG does not create the material it collects and 
has no control over the content of that material.
    There are additional reasons why application of this provision 
could impair inspections and interfere with the statutory 
responsibilities of the OIG. It is not always possible to detect the 
relevance or necessity of specific information in the early stages of 
an inspection or inquiry. This applies when an inspection or inquiry 
uses properly classified information. Relevance and necessity are 
questions of judgment and timing, and it is only after the information 
is evaluated that the relevancy and necessity of such information can 
be established. Furthermore, information outside the scope of the OIG's 
jurisdiction may be helpful in establishing patterns of activities or 
problems or in developing information that should be referred to other 
entities. Such information cannot always readily be segregated.
    The detailed reasons for the exemptions under 5 U.S.C. 552a(k)(2) 
follow:
    (1) 5 U.S.C. 552a(c)(3) requires that, upon request, an agency must 
give an individual named in a record an accounting which reflects the 
disclosure of the record to other persons or agencies. This accounting 
must state the date, nature, and purpose of each disclosure of the 
records and the name and address of the recipient. To apply this 
provision would alert those who may be the subjects of an inspection or 
inquiry pertaining to an allegation or complaint to the existence of 
the inspection or inquiry or that they are the subjects of such an 
inspection or inquiry. Release of this information could result in the 
altering or destruction of documentary evidence, improper influencing 
of witnesses, and other activities that could impede or compromise the 
inspection or inquiry.
    (2) 5 U.S.C. 552a (d), (e)(4) (G) and (H), and (f) relate to the 
following: an individual's right to be notified of the existence of 
records pertaining to such individual; requirements for identifying an 
individual who requests access to or amendment of records; and agency 
procedures relating to access to and amendment of records and the 
content of information contained in such records. This system is exempt 
from the foregoing provisions for the following reasons: to notify an 
individual, at the individual's request, of the existence of records in 
an inspection file pertaining to a complaint or allegation about the 
individual or to grant access to this type of inspection file could (1) 
interfere with inspections proceedings predicated on a complaint or 
allegation, (2) constitute an unwarranted invasion of the personal 
privacy of others, (3) disclose the identity of confidential sources 
and reveal confidential information supplied by those sources, or (4) 
disclose inspection techniques and procedures.
    In addition, this system is exempt from paragraph (d)(2) of this 
section, because to require the Office of the Inspector General, to 
amend information thought to be incorrect, irrelevant or untimely, 
because of the nature of the information collected and the essential 
length of time it is maintained, would create an impossible 
administrative and investigative burden by forcing the agency to 
continuously retrograde its investigations attempting to resolve 
questions of accuracy.
    (3) 5 U.S.C. 552a(e)(1) requires each agency to maintain in its 
records only such information about an individual that is relevant and 
necessary to accomplish a purpose of the agency required by statute or 
Executive Order. An exemption from the foregoing is needed because:
    a. It is not always possible to detect the relevance or necessity 
of specific information in the early stages of an inspection involving 
a complaint or allegation.
    b. Relevance and necessity are questions of judgment and timing. 
What appears relevant and necessary when collected may ultimately be 
determined to be unnecessary. It is only after the information is 
evaluated or the inspection is closed that the relevancy and necessity 
of such information can be established.
    c. In any inspection involving a complaint or allegation, the 
Inspector General may obtain information concerning the violation of 
laws other than those within the scope of his jurisdiction. In the 
interest of effective law enforcement, the Inspector General should be 
able to retain this information as it may aid in establishing patterns 
of program violations or criminal activity, and provide leads for those 
law enforcement agencies charged with enforcing other segments of 
criminal or civil law.
    d. In conducting an inspection or inquiry involving a complaint or 
allegation, information obtained may relate to the main purpose of the 
inspection or inquiry as well as to matters under the jurisdiction of 
another agency. Such information is not readily segregable.
[FR Doc. 97-2177 Filed 1-28-97; 8:45 am]
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