United States	Office of the
Environmental Protection	inspector General
Agency	Washington DC 20460
March 1988
v>EPA Ethics In A Nutshell
. . . Ethical Conduct for
EPA Employees
... in Brief

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Ethics In A Nutshell
.. . Ethical Conduct for
EPA Employees
... in Brief
Committee on Integrity
and Management Improvement
March 1988

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Foreword
The Committee on Integrity and Management
Improvement (CIMI) has developed this pamphlet,
"Ethics in a Nutshell," to explain the thrust and
practical applications of ethical laws and
regulations.
The question and answer format is designed to
anticipate and answer some of the more common
concerns facing Federal employees. I'm sure this
will be a useful reference guide to all employees as
you carry out your official responsibilities.
We appreciate the assistance of Gerald Yamada,
the Designated Agency Ethics Official, and Don
Nantkes, the Alternate Agency Ethics Official, in
the preparation of this pamphlet.
Lee M. Thomas
Administrator
"Ethics in a Nutshell'' is a brief explanation of the
conflict of interest statutes and EPA ethical
standards. It is not a complete discussion of the
subject, and employees are expected to refer to the
statutes (18 U.S.C. Sections 202-209) and EPA
regulations at 40 C.F.R. Part 3, and to seek advice
from Deputy Ethics Officials and from us when
questions arise.
Gerald H. Yamada
Gerald H. Yamada (s
Designated Agency Ethics Official
Donnell L. Nantkes
Alternate Agency Ethics Official

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Introduction
officers and employees of the Federal
Government, we must all conform to high
standards of ethical conduct. We are judged not
only by our official actions and conduct, but also
by our personal activities when they are related to
our work for the Government. The Government
relies on us as its representatives to perform
Government business properly, to protect
Government interests, and to meet the high ethical
standards of public service.
Standards of conduct and conflict of interest
laws apply to all Government officers and
employees including special Government
employees such as experts, consultants, and most
advisory committee members. All employees are
responsible for knowing these laws and regulations
as well as the specific policies and procedures at
EPA.
Employees, supervisors, and management
officials all share the responsibility for ensuring
that high standards of ethical conduct are
maintained at EPA. Employees are required to
become familiar with the standards of conduct
regulations and to exercise judgment to avoid any
action that might result in or create the appearance
of misconduct or conflict of interest. Supervisors
and managers must become familiar with the
standards of conduct regulations and apply the
standards to the work they do and supervise.
cJL-cxa^-
C Jjohn C. Martin
W Chairman, Committee on Integrity and
Management Improvement
Environmental Protection Agency

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Ethical Conduct
Where can you get guidance on the ethics laws
and regulations?
You should seek guidance whenever you are
unsure whether your actions are consistent with
the standards. To seek advice:
•	consult your Deputy Ethics Official (Office
Director, Staff Office Director, Laboratory Director,
Regional Administrator or Deputy Regional
Administrator). The Assistant Administrators or
their Deputies serve as Deputy Ethics Officials for
their immediate Offices and the Regional Counsels
serve as Deputy Ethics Officials for their Offices; or
•	call the Office of General Counsel or Office of
Regional Counsel for legal advice or referral to the
Designated Agency Ethics Official or Alternate
Agency Ethics Official.
The Office of Government Ethics provides frequent
training throughout the country. The EPA
Designated Agency Ethics Official and his staff also
conduct training by arrangement or request. See 40
C.F.R. Part 3, Subpart B.
What are the general standards of conduct? (40
C.F.R. Section 3.103)
Employees must avoid any action that might result
in or create the appearance of:
—Using public office for private go in.
—Giving preferential treatment to anyone.
—Impeding Government efficiency or economy.
—Losing independence or impartiality.
—Making a Government decision outside official
channels.
—Adversely affecting public confidence in the
integrity of the Government or of EPA.
Employees must be particularly careful that private
interests and activities do not conflict with their
public duties. The following sections address
specific questions you may have:
Are you allowed to use Government property for
personal reasons?
No. You have a positive duty to protect and
conserve Federal property and to obey all rules
regarding its use. Federal property (including

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property leased by the Government) cannot be
used for other than official purposes. (40 C.F.R.
Section 3.104(a))
Examples of improper use of Government property
include:
—Using "penalty mail" envelopes to send payroll
checks to the bank or for other personal matters.
—Using EPA copying equipment for personal
matters.
—Using a Government-oivned, leased or rented
motor vehicle or aircraft for non-official purposes.
—Using Government telephones for personal
calls.
—Selling commercial products or services on
EPA premises.
—Using EPA computers and word processors for
personal matters.
What is EPA policy on accepting gifts,
entertainment and favors? (40 C.F.R. Part 3,
Subpart D)
You generally may not solicit or accept anything of
value, including entertainment and meals (e.g.,
"business lunches"), from anyone who:
—Has or is seeking to obtain EPA contracts or
assistance agreements.
—Is attempting to influence your official action.
—Has interests which your duties may affect.
—Conducts operations regulated by EPA.
There are a few exceptions:
—Modest entertainment, such as meals or
refreshments, at widely attended gatherings
sponsored by industrial, technical or professional
organizations or attendance at public ceremonies
or similar activities in connection with official
duties.
—Gifts, favors or entertainment where an
obvious family or personal relationship clearly
motivated the gift.
—Purchases at advantageous rates offered to
Government employees as a class.
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—Loans from financial institutions on customary
terms.
—Unsolicited advertising or promotional items
worth less than $10 U.S. retail.
—Incidental transportation in kind (such as
rides to and from airports).
—HeasonabJe travel expenses in connection with
job interviews while on annual leave.
—Unsolicited gifts from foreign governments
(gifts worth less than a certain amount - currently
$165 - may be retained while larger gifts must be
turned over to EPA).
—Official travel expenses, but only under
circumstances listed in 40 C.F.H. Section 3.504(c).
Certain gifts may violate criminal statutes. For
example, gifts made to induce or compensate
employees for official actions may violate the
bribery provision at 18 U.S.C. Section 201. In
addition, 18 U.S.C. Section 209 generally prohibits
employees from receiving any supplementation of
their government salaries.
Example:
You are asked to give a speech in your official
capacity. You may not accept a fee for a speech
given as part of your EPA duties.
Gifts to Superiors:
You may not solicit a contribution from another
employee for a gift to an official superior or make a
donation to a superior. Also, you may not accept a
gift from an employee receiving less pay than you.
There is an exception for small voluntary gifts on
special occasions such as marriage, illness, death
or retirement. (5 U.S.C. Section 7351 and 40 C.F.R.
Section 3.104(e))
Example:
Your office decides to take up a collection for your
boss who is being promoted within the office. This
would not qualify for the exception for special
occasions because it involves a continuing
workplace relationship.
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What about using information picked up on the
job?
You may not use, to further a private interest,
information obtained through your EPA job that
has not been made available to the general public
— even if it would be made available on request.
(40 C.F.R. Sections 3.103(a), 3.502(h) and 3.505(c))
What if you fail to pay your debts?
You should promptly meet your financial
obligations. Failure to do so reflects adversely on
EPA and is considered improper conduct. (40
C.F.R. Section 3.104(b))
Can you gamble while on duty or on
Government premises?
No. This includes operating a gambling device or
conducting a lottery or pool in a game for money
or property or selling or purchasing a numbers slip
or ticket. There can be exceptions for officially
approved activities, such as the Combined Federal
Campaign. (40 C.F.R. Section 3.104(c))
Can you have a second job outside EPA? (40
C.F.R. Part 3, Subpart E)
You may engage in outside employment, with or
without compensation, but only if it will not
adversely affect or conflict with your official
duties. Such work may include civic, charitable,
religious and community undertakings. You may
not have outside employment which:
—Violates the conflict of interest laws or
standards of conduct.
—May reasonably be construed as implying
official EPA endorsement of any statement,
activity, product or service.
—Takes your time or attention during official
working hours.
—Impairs your mental or physical capacity to
perform EPA duties.
—Involves use of EPA facilities.
—Involves work on an EPA contract or
assistance agreement unless the Designated
Agency Ethics Official has approved it in ivritin0

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The following outside employment requires the
advance written approval of your Deputy Ethics
Official (you will need to send a memo to your
Deputy Ethics Official through your supervisor);
—Regular self-employment.
—Consulting services.
—Holding state or local public office.
—Employment or other activity involving an
EPA contractor or sub-contractor or holder of an
EPA assistance agreement or subagreement.
—Employment by a firm which is regulated by
the program office in which you serve.
You are encouraged to seek approval for other
outside activity whenever there is any question of
its propriety.
Under 18 U.S.C. Sections 203 and 205, you may
not serve as "agent or attorney" (that is,
communicate with intent to influence on behalf of
another person) before any federal agency or the
District of Columbia, with or without pay. This
includes court cases where the Federal
Government or the District of Columbia is a party.
You also may not receive any payment for
someone else's representation before a federal
agency or the District of Columbia.
Examples:
Although you may prepare income tax returns for
others, you may not attempt to persuade the IRS
that the return was properly prepared.
You may not speak or write to a federal agency
seeking a grant on behalf of a non-profit
organization of which you are a member, even
though you receive no pay.
Exceptions:
You may generally represent your parents, your
spouse or child or an estate for which you are
executor. If consistent with your EPA duties, you
may also represent other employees in personnel,
EEO and similar matters.
You may provide testimony under oath (but
generally not as an expert witness).
If you are assigned to a state or local government
under the Inter-governmental Personnel Act, you
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may generally represent that government before
federal agencies in environmental matters as part
of your official duties.
Special Government employees (those appointed
to serve less than 130 days in a 365 day period) are
not covered by 18 U.S.C. Sections 203 and 205
except for (1) matters involving specific parties
(such as contracts) in which they ever participated
as Government employees and (2) matters
involving specific parties which are pending in
EPA where they have actually worked more than
60 days in the past 365 days.
Note: The conflict of interest statutes are reprinted and
discussed in detail in 40 C.F.R. Part 3. Subpart A, Appendix A.
Can you obtain personal gain from your official
position or actions?
No. Under 18 U.S.C. Section 208, you are barred
from participating "personally and substantially"
as a Government employee in a "particular matter"
in which you have a financial interest.
This prohibition applies to advice and
recommendations as well as to actual decisions. A
"particular matter" includes a rulemaking or policy
matter directed toward a specific industry or
industries as well as a matter which involves a
specific party, such as a permit or contract. The
prohibition also applies if the following
individuals or organizations have a financial
interest in the matter;
—Your spouse;
—Your minor child;
—Your partner;
—An organization in which you serve as an
officer, director, trustee, partner or employee; and
—A person or organization with which you are
negotiating for prospective employment or have
an arrangement for prospective employment.
The general standards of conduct go farther and
bar your participation in matters which create the
appearance of conflict or bias — for example,
matters involving your parents, adult children, etc.
Examples:
You own a single share of stock in a steel
company. You may not participate in developing a
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New Source Performance Standard for the steel
industry.
You are an officer in a non-profit organization.
You may not participate in the award or
administration of an assistance agreement with
that organization.
You are administering a contract with a firm
owned by your brother-in-law. You probably are
not violating 18 U.S.C. Section 208 because your
brother-in-law's interests are not considered to be
your own, but you would have the appearance of a
conflict. This would violate the general standards
of conduct.
You are conducting an audit of an EPA contractor.
The company president asks you to meet to
discuss leaving EPA to join the company. Unless
you immediately reject the offer, you must
disqualify yourself from further participation in
the audit in order to avoid a violation of 18 U.S.C.
Section 208.
The Designated Agency Ethics Official may waive
the prohibition of 18 U.S.C. Section 208 if the
interest is too insubstantial to affect the integrity of
your services. Generally, EPA does not grant
waivers for matters which involve specific parties
(such as permits) or for rulemaking matters which
affect more than $10,000 worth of stocks or bonds.
EPA regulations grant general waivers for:
—Diversified mutual funds, including municipal
bond funds. This does not apply to funds which
concentrate their investments in particular
industries.
—Life insurance, variable annuity or guaranteed
investment contracts issued by insurance
companies.
—Deposits in financial institutions.
—Real property used solely as your personal
residence.
—U.S. Government securities. (40 C.F.H. Section
3.301 J
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Are there special statutory requirements for EPA
employees?
Yes. Under Section 318 of the Clean Air Act,
certain employees listed in 40 C.F.R. Part 3,
Subpart B, Appendix B, may not be employed by,
serve as attorney for, act as consultant to, or hold
any official or contractual relationship to: (1) the
owner or operator of any major stationary source or
any stationary source subject to a standard of
performance under Section 111 or Section 112 of
the Clean Air Act; (2) any manufacturer or any
class or category of mobile sources subject to
regulation under the Clean Air Act; (3) any trade or
business association of which such an owner or
operator is a member; or (4) any organization —
including a non- profit organization — which is a
party to litigation or engaged in political,
educational or informational activities relating to
air quality. (40 C.F.R. Section 3.303)
In addition, members of the Interagency Testing
Committee established under Section 4(e) of the
Toxic Substances Control Act and their designees
may not (1) accept employment or compensation
from any person subject to the Act for twelve
months after their committee service ends or (2)
hold any stocks or bonds or other "substantial
pecuniary interest" in any firm which
manufacturers, processes or distributes any
substance or mixture subject to the Act. (40 C.F.R.
Section 3.304)
Finally, employees who perform any "function
or duty" under the Surface Mining Control and
Reclamation Act (such as reviewing Environmental
Impact Statements of the Office of Surface Mining)
may not hold any "direct or indirect interest" in
underground or surface coal mining activities. (40
C.F.R. Section 3.305)
How does EPA monitor compliance with the laws
and standards?
Certain employees are required to report their
employment and financial interests. By statute,
Presidential appointees, SES employees, Schedule
C employees and GS-16's and above (and a few
other employees who occupy "equivalent"
positions) must submit an SF 278, Executive
Personnel Financial Disclosure Report, to the
Designated Agency Ethics Official. These reports
are available to the public.
In addition, Deputy Ethics Officials must collect
and review confidential statements of employment
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and financial interests from GS/GM 13-15 (and
some other] employees whose duties are likely to
affect the financial interests of persons outside the
Government. These statements are disclosed only
to Ethics Officials and their assistants or as may be
required by law (for example, to the Office of
Government Ethics, the Office of Inspector General,
the General Accounting Office and Congressional
committees or subcommittees). (40 C.F.R. Section
3.302)
If a report or statement indicates a potential
conflict problem, remedial action is necessary.
This may include:
—waiver by the Designated Agency Ethics
Official;
—divestiture;
—exclusion /rom participation in certain
matters;
—reassignment; or
¦—setting up a "blind trust" (see 5 C.F.R. Section
734.403).
What are post-employment restrictions?
Under 18 U.S.C. Section 207, you are permanently
barred from acting as "agent or attorney" (that is,
communicating with intent to influence on behalf
of another) before the Federal Government
regarding a matter involving specific parties (such
as a contract or permit) in which you ever
participated "personally and substantially" as a
Government employee.
If such a matter was under your "official
responsibility" during your final year of
Government service, you are barred from acting as
"agent or attorney" regarding the matter for two
years. This restriction applies even though you had
nothing to do with the matter personally.
Former confirmed Presidential appointees and a
few dozen "designated senior employees" (see 5
C.F.R. Section 737.33) are subject to an additional
general one-year bar against communicating with
EPA with intent to influence.
Finally, EPA contract regulations generally
prohibit sole source awards to or involving former
employees for one year after they leave EPA. This
prohibition may be waived where there is no
appearance of bias or favoritism and the award
would be in the best interest of EPA.
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Examples:
You would be prohibited from representing (that is
communicating with the Government with intent
to influence on behalf of another) anyone
regarding a contract you administered while you
were with EPA, but you could assist the contractor
in performing the work.
As a former supervisor, you would be barred for
two years from representing the contractor on a
project which was awarded or administered in
your office during your/inaJ year with EPA, even
though you never got involved with the contract
personally.
Are experts, consultants and advisory committee
members covered by the standards of conduct
regulations and the conflict of interest laws?
Yes. With some exceptions, the standards of
conduct regulations generally apply to such
"special Government employees." See 40 C.F.R.
Part 3, Subpart F.
What if you want to report a violation of the
standards of conduct or the conflict of interest
laws?
If you know of criminal violations, you are
responsible for reporting them to the Office of the
Inspector General. Failure on the part of an EPA
employee to report a criminal violation promptly
could result in disciplinary action against that
employee. You may use the Inspector General's
"Hotline" for this purpose — call (800) 424-4000 or
(202) 382-4977. If you are aware of any violations
of the standards of conduct regulations, you are
responsible for reporting them to your supervisor,
the Office of the Inspector General, or your
Designated Agency Ethics Official.
Are you required to give statements to
investigative officials?
You are required to assist the Inspector General
and other investigative officials. This requirement
includes giving statements or evidence to
investigators or auditors of the Office of Inspector
General, the Federal Bureau of Investigation and
others authorized to investigate potential
violations. (Note: You always retain your
constitutional rights, including the right to counsel
and the right against self-incrimination.)
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What happens if you violate the standards of
conduct regulations or the conflict of interest
laws?
You are subject to disciplinary action if you violate
any of the standards. This type of action depends
on the nature of the violation and may include
admonishment, written reprimand, suspension,
demotion or removal. Applicable statutes,
regulations and procedures must be followed. Of
course, violators of the conflict of interest statutes
are subject to criminal prosecution. In addition,
violations of the post-employment provisions may
be dealt with administratively — after notice and
hearing, a former employee may be barred from
official dealings with EPA for up to five years or be
suspended or debarred from receiving EPA
contracts or assistance agreements.
Political Do's & Don'ts For Federal
Employees
Covered Employees
With very few exceptions, all employees in the
executive branch of the Federal Government are
subject to the political activity provisions of the
Hatch Act. Employees of the U. S. Postal Service
and the District of Columbia government are also
subject to this law.
—May rog/ster and vote as they choose
—May assist in voter registration drives
—May express opinions about candidates and
issues
—May participate in campaigns where none of
the candidates represent a political party
—May contribute money to political
organizations or attend political fund-raising
functions
—May wear or display political badges, buttons,
or stickers
—May attend political rallies and meetings
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—May join political clubs or parties
—May sign nominating petitions
—May campaign for or against referendum
questions, constitutional amendments, and
municipal ordinances
—May not be candidates for public office in
partisan elections
—May not campaign for or against a candidate
or slate of candidates in partisan elections
—May not make campaign speeches or engage
in other campaign activities to elect partisan
candidates
—May not collect contributions or sell tickets to
political fundraising functions
—May not distribute campaign material in
partisan elections
—May not organize or manage political rallies
or meetings
—May not hold office in political clubs or
parties
—May not circulate nominating petitions
—May not work to register voters for one party
only
An election is partisan if any candidate for an elected public
office is running as a representative of a political party whose
presidential candidate received electoral votes in the last
presidential election.
Provided Courtesy of the Office of the Special Counsel, U.S.
Merit Systems Protection Board. These guidelines are valid as
of the date of this publication.
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REPORT:
FRAUD,
WASTE
OR
ABUSE
TO THE
INSPECTOR
GENERAL
HOTLINfe
•	Information is Confidential
•	Caller Can Be Anonymous
800-424-4000
or
202-382-4977
&EPA
U.S. ENVIRONMENTAL PROTECTION AGENCY • OFFICE OF THE INSPECTOR GENERAL
401 M STREET S.W. WASHINGTON, D.C. 20460

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