[Federal Register Volume 63, Number 106 (Wednesday, June 3, 1998)]
[Rules and Regulations]
[Pages 30109-30111]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-14714]


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DEPARTMENT OF ENERGY

10 CFR Part 1010

RIN 1990-AA19


Conduct of Employees

AGENCY: Department of Energy (DOE).

ACTION: Final rule.

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SUMMARY: The Department of Energy (DOE) is amending its regulations on 
conduct of employees to remove an exemption from application of the 
financial conflict of interest prohibition. The removal of this 
exemption is in response to publication by the Office of Government 
Ethics (OGE) of a superseding, executive branch-wide regulation that 
describes the

[[Page 30110]]

circumstances under which certain financial interests are exempt from 
the general prohibitions concerning acts affecting a personal financial 
interest. In addition, DOE is adding a reference to OGE's executive 
branch-wide regulation in its cross-references provision.

EFFECTIVE DATE: June 3, 1998.

FOR FURTHER INFORMATION CONTACT: Susan Beard (Deputy Assistant General 
Counsel for Standards of Conduct), Office of the Assistant General 
Counsel for General Law, GC-80, U.S. Department of Energy, 1000 
Independence Avenue, S.W., Washington, D.C. 20585 (202/586-1522).

SUPPLEMENTARY INFORMATION:

I. Background

    DOE has had a longstanding regulation, codified at 10 CFR 1010.105, 
establishing that an employee's financial interest arising from the 
ownership of stock in a widely diversified mutual fund or other 
regulated investment company that in turn owns stock in, or bonds of, 
another enterprise, is exempt from the prohibition contained in 18 
U.S.C. 208 (Acts Affecting a Personal Financial Interest). Section 
208(a) prohibits employees of the executive branch from participating 
in an official capacity in particular matters in which they, or certain 
persons or entities with whom they have specified relationships, have a 
financial interest.
    On December 18, 1996, (61 FR 66830, as corrected at 62 FR 1361 
(January 9, 1997) and 62 FR 23127 (April 29, 1997)), OGE published a 
final executive branch-wide rule entitled ``Interpretation, Exemptions 
and Waiver Guidance Concerning 18 U.S.C. 208 (Acts Affecting a Personal 
Financial Interest),'' which superseded DOE's waiver rule. OGE's new 
rule, codified at 5 CFR part 2640 and made effective January 17, 1997, 
describes, in subpart B, certain financial interests that the Director 
of OGE has determined, pursuant to 18 U.S.C. 208(b)(2), to be exempt 
from the general participation prohibition because they are too remote 
or too inconsequential to affect the integrity of the services of the 
employee to which the prohibition applies. At 5 CFR 2640.201(a), there 
is an exemption for diversified mutual funds and unit investment 
trusts, thereby superseding DOE's old waiver rule effective January 17, 
1997 (see 5 CFR 2640.206 of OGE's regulation). Therefore, DOE is 
publishing this final rule removing 10 CFR 1010.105 in its entirety. 
DOE is also amending its cross-reference provision at 10 CFR 1010.102 
to add a reference to OGE's executive branch-wide financial interests 
regulation.

II. Matters of Regulatory Procedure

    Because DOE is required to delete the superseded provisions of 10 
CFR part 1010 relating to 18 U.S.C. 208(b)(2) exemptions, with no 
discretion in the matter, DOE finds, pursuant to 5 U.S.C. 553(b)(3)(B), 
that there is good cause not to seek public comment on this rule, as 
such comment is unnecessary. Furthermore, consistent with 5 U.S.C. 
553(d), DOE is making this interpretive rule effective upon publication 
in the Federal Register.

III. Review Under Executive Order 12866

    DOE has determined that the removal of 10 CFR 1010.105 is not 
considered to be a ``significant regulatory action'' under Executive 
Order 12866, and, therefore, is not subject to review by the Office of 
Management and Budget.

IV. Review Under Paperwork Reduction Act

    This final rule contains no information collection requirements as 
defined in 44 U.S.C. 3502(2), and, therefore, is not subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.).

V. Federalism

    The Department has analyzed this rulemaking in accordance with the 
principles and criteria contained in Executive Order 12612 and has 
determined that there are no federalism implications that would warrant 
the preparation of a Federalism Assessment.

VI. National Environmental Policy Act

    The regulations being amended have no current environmental effect 
and this rulemaking will not change that status quo. The Department has 
therefore determined that this rule is covered under the Categorical 
Exclusion found at paragraph A.5 of Appendix A to subpart D, 10 CFR 
part 1021, which applies to a rulemaking amending an existing 
regulation that does not change the environmental effect of the 
regulation being amended. Accordingly, neither an environmental 
assessment nor an environmental impact statement is required.

VII. Review Under the Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 requires each 
agency to assess the effects of Federal regulatory action on State, 
local, and tribal governments and the private sector. Section 201 
excepts agencies from assessing effects on State, local, or tribal 
governments or the private sector of rules that incorporate 
requirements specifically set forth in law. The Department has 
determined that today's regulatory action does not impose a Federal 
mandate on State, local, or tribal governments or on the private 
sector.

VIII. Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., directs 
agencies to prepare a regulatory flexibility analysis whenever an 
agency is required to publish a general notice of proposed rulemaking 
for a rule. As discussed above, the Department has determined that 
prior notice and opportunity for public comment is unnecessary and 
contrary to the public interest. In accordance with 5 U.S.C. 604(a), no 
regulatory flexibility analysis has been prepared for today's rule.

IX. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3 of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Executive agencies the general duty to eliminate drafting errors and 
ambiguity; write regulations to minimize litigation; provide a clear 
legal standard for affected conduct rather than a general standard; and 
promote simplification and burden reduction. Section 3(c) of Executive 
Order 12988 requires Executive agencies to review regulations in light 
of applicable standards in section 3(a) and section 3(b) to determine 
whether they are met. DOE has completed the required review and 
determined that, to the extent permitted by law, this final rule meets 
the relevant standards of Executive Order 12988.

X. Small Business Regulatory Enforcement Fairness Act

    In accordance with section 801 of the Small Business Regulatory 
Enforcement Act of 1996, 5 U.S.C. 801, DOE will report to Congress the 
promulgation of this rule prior to its effective date. This rule is not 
a ``major rule'' as defined by 5 U.S.C. 804(a).

List of Subjects in 10 CFR Part 1010

    Conduct standards, Conflicts of interest, Ethical conduct, 
Government employees.


[[Page 30111]]


    Issued in Washington, D.C. on May 22, 1998.
Eric J. Fygi,
Acting General Counsel, Department of Energy.

    For the reasons set out in the preamble, 10 CFR part 1010 is 
amended as follows:

PART 1010--CONDUCT OF EMPLOYEES

    1. The authority citation for part 1010 is revised to read as 
follows:

    Authority: 5 U.S.C. 301, 303, 7301; 5 U.S.C. App. (Inspector 
General Act of 1978); 18 U.S.C. 208; 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.


Sec. 1010.102  [Amended]

    2. Section 1010.102 is amended by revising the heading to read, 
``Cross-references to employee ethical conduct standards, financial 
disclosure regulations, and other conduct rules.'' and by adding 
immediately after ``5 CFR part 2634,'' the words ``the executive 
branch-wide financial interests regulations at 5 CFR part 2640,'' 
before the word ``and.''


Sec. 1010.105  [Removed]

    3. Section 1010.105, Conflict of interest waiver, is removed.

[FR Doc. 98-14714 Filed 6-2-98; 8:45 am]
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