[Federal Register Volume 81, Number 212 (Wednesday, November 2, 2016)]
[Rules and Regulations]
[Pages 76288-76290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26458]


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DEPARTMENT OF THE INTERIOR

5 CFR Part 3501

[Docket ID: DOI-2016-0007; 167D0102R2; DS636440000; DR2000000.CH7000]
RIN 1092-AA12


Supplemental Standards of Ethical Conduct for Employees of the 
Department of the Interior

AGENCY: Department of the Interior (DOI).

ACTION: Direct final rule.

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SUMMARY: The Department of the Interior (DOI), with the concurrence of 
the Office of Government Ethics (OGE), is amending the Supplemental 
Standards of Ethical Conduct for Employees of the Department of the 
Interior (Supplemental Standards). The Supplemental Standards apply 
only to DOI personnel and augment the Standards of Ethical Conduct for 
Employees of the Executive Branch (OGE Standards). This direct final 
rule amends portions of the Supplemental Standards to account for the 
current DOI structure resulting from organizational changes that 
established new bureaus and an office within DOI.

DATES: This rule is effective on January 3, 2017 unless we receive any 
significant adverse comments on or before December 2, 2016. If adverse 
comment is received, DOI will publish a timely withdrawal of the rule 
in the Federal Register.

ADDRESSES: You may submit comments on this rule by either of the 
methods listed below. Please use Regulation Identifier Number 1092-AA12 
in your message.
    1. Federal eRulemaking Portal: http://www.regulations.gov. In the 
``Search'' bar, enter DOI-2016-0007 (the docket number for this rule) 
and then click ``Search.'' Follow the instructions on the Web site for 
submitting comments.
    2. U.S. mail, courier, or hand delivery: Departmental Ethics 
Office, Department of the Interior, 1849 C Street NW., MS 7346, 
Washington, DC 20240.
    We request that you send comments only by one of the methods 
described above. We will post all comments on http://www.regulations.gov. This generally means that we will post any 
personal information you provide us.

FOR FURTHER INFORMATION CONTACT: Edward McDonnell, Departmental Ethics 
Office, [email protected], (202) 208-5916. SUPPLEMENTARY 
INFORMATION.

I. Background

    On August 7, 1992, OGE published the OGE Standards, which, as 
corrected and amended, are codified at 5 CFR part 2635 (57 FR 35006). 
Effective on February 3, 1993, the OGE Standards establish uniform 
standards of ethical conduct that apply to all executive branch 
officers and employees. Section 2635.105 of the OGE Standards 
authorizes an agency, with the concurrence of OGE, to adopt and jointly 
issue agency-specific supplemental regulations that are necessary to 
properly implement its ethics program. On October 16, 1997, DOI, with 
OGE's concurrence and joint issuance, established the Supplemental 
Standards that became effective on June 24, 1998. See 62 FR 53713-
53726; 63 FR 34258-34259. Employees of DOI are subject to the 
Supplemental Standards promulgated by OGE and DOI. The Supplemental 
Standards are necessary for successful implementation of DOI's ethics 
program in light of DOI's unique programs and operations. DOI is 
therefore amending portions of the Supplemental Standards to account 
for current DOI structure resulting from organizational changes that 
established new bureaus and an office within DOI.

II. Analysis of the Regulation

A. Section 3501.102 Designation of Separate Agency Components

    The direct final rule amends Sec.  3501.102(a) of the Supplemental 
Standards to reflect the current organizational structure mandated by 
Secretarial Order 3299 issued on May 19, 2010, and as further amended, 
in accordance with statutory authority that resulted in the 
establishment of new bureaus and an office within DOI. As currently 
organized and relevant to the Supplemental Standards, the duties and 
responsibilities of the former Minerals Management Service (MMS) were 
separated and reassigned to two newly established bureaus and an 
office. The new bureaus and office are the Bureau of Ocean Energy 
Management (BOEM), the Bureau of Safety and Environmental Enforcement 
(BSEE), and the Office of Natural Resources Revenue (ONRR). BOEM and 
BSEE are distinct and separate bureaus under the Assistant Secretary 
for Land and Minerals Management. Section 2635.203(a) of the OGE 
Standards authorizes an executive department, by supplemental 
regulation, to designate as a separate agency any component of the 
department that the department determines exercises a distinct and 
separate function. Pursuant to this authority, DOI amends the 
Supplemental Standards to designate BOEM and BSEE as separate agencies 
in Sec.  3501.102(a) for purposes of the regulations contained in 
subpart B of 5 CFR part 2635, government gifts from outside sources, 
including determining whether the donor of a gift is a prohibited 
source under 5 CFR 2635.203(d); 5 CFR 2635.807 governing teaching, 
speaking and writing; and Sec.  3501.105(b) of this part governing 
prior approval requirements for outside employment by an employee with 
a prohibited source (other than for an employee of the U.S. Geological 
Survey or for a special Government employee). ONRR is organizationally 
placed within DOI under the Assistant Secretary for Policy, Management 
and Budget. Therefore, ONRR is included in the remainder of DOI under 
Sec.  3501.102(b).

B. Section 3501.103 Prohibited Interests in Federal Lands

    The direct final rule amends Sec.  3501.103(b)(1)(i) of the 
Supplemental Standards to include all BOEM, BSEE and ONRR employees in 
the restrictions against holding financial interests in Federal lands 
or resources administered or controlled by DOI. Following the 
establishment of MMS in 1982, to address ethics concerns, DOI 
promulgated a regulation extending the restrictions on ownership of 
interests in Federal lands to all employees of the MMS. See 62 FR 53714 
(October 16, 1997). Therefore, in order to continue to protect the 
integrity of the programs of the former MMS, that were subsequently 
reassigned to the newly established entities of BOEM, BSEE and ONRR, 
DOI is revising Sec.  3501.103(b) to explicitly cover all employees of 
these three entities.

Procedural Matters

Regulatory Planning and Review (Executive Order (E.O.) 12866 and 13563)

    Executive Order 12866 provides that the Office of Information and 
Regulatory

[[Page 76289]]

Affairs (OIRA) in the Office of Management and Budget (OMB) will review 
all significant rules. The OIRA has determined that this rule is not 
significant.
    Executive Order 13563 reaffirms the principles of E.O. 12866 while 
calling for improvements in the nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The executive order directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. Executive Order 13563 emphasizes 
further that regulations must be based on the best available science 
and that the rulemaking process must allow for public participation and 
an open exchange of ideas. We have developed this rule in a manner 
consistent with these requirements.
    This direct final rule is not a ``significant regulatory action'' 
under section 3(f) of E.O. 12866, Regulatory Planning and Review, as 
supplemented by E.O. 13563, Improving Regulation and Regulatory Review, 
and does not require an assessment of potential costs and benefits 
under section 6(a)(3) of that Order. Accordingly, this direct final 
rule is not subject to review by OMB. As discussed previously, this 
direct final rule only regulates DOI employees and consequently does 
not impose any additional direct costs on the private sector. In 
addition, DOI does not believe this rulemaking would increase 
government costs. The direct final rule is also expected to result in 
stronger public confidence in the integrity of DOI programs and 
operations.
    This direct final rule will not impact the ability of BOEM, BSEE or 
ONRR to accomplish their missions and will not impact off-shore 
operators, lessees, contractors, or third parties. It is an internal 
procedural rule applicable solely to BOEM, BSEE, and ONRR employees and 
establishes rules for ethical conduct in the performance of official 
duties that protects their integrity and impartiality.

Administrative Procedures Act--Direct Final Rule

    We are publishing this rule as a direct final rule because we view 
this action as an administrative action that relates solely to certain 
DOI employees and is non-controversial. This rule will be effective on 
the date shown in the DATES section unless we receive any significant 
adverse comments on or before the deadline for comments set forth in 
the DATES section. Significant adverse comments are comments that 
provide strong justifications why the rule should not be adopted or for 
changing the rule. If we receive any significant adverse comments, we 
will publish a notice in the Federal Register withdrawing this rule 
before the effective date. If we receive no significant adverse 
comments, we will publish a document in the Federal Register confirming 
the effective date.

Regulatory Flexibility Act

    DOI certifies that this direct final rule will not have a 
significant economic effect on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). It does 
not affect any small entities. It affects only certain DOI employees.

Small Business Regulatory Enforcement Fairness Act

    This direct final rule is not a major rule under 5 U.S.C. 804(2) of 
the Small Business Regulatory Enforcement Fairness Act. This direct 
final rule:
    a. Will not have an annual effect on the economy of $100 million or 
more.
    b. Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    c. Will not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

Unfunded Mandates Reform Act

    This direct final rule will not impose an unfunded mandate on 
State, local, or tribal governments or the private sector of more than 
$100 million per year. The direct final rule will not have a 
significant or unique effect on State, local, or tribal governments or 
the private sector. A statement containing the information required by 
the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not 
required.

Takings Implication Assessment (E.O. 12630)

    Under the criteria in E.O. 12630, this direct final rule does not 
have significant takings implications. The direct final rule is not a 
governmental action capable of interference with constitutionally 
protected property rights. A Takings Implication Assessment is not 
required.

Federalism (E.O. 13132)

    Under the criteria in E.O. 13132, this direct final rule does not 
have sufficient federalism implications to warrant the preparation of a 
Federalism Assessment. This direct final rule will not substantially 
and directly affect the relationship between the Federal and State 
governments. A Federalism Assessment is not required.

Civil Justice Reform (E.O. 12988)

    This direct final rule complies with the requirements of E.O. 
12988. Specifically, this direct final rule:
    (a) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

Consultation With Indian Tribes (E.O. 13175)

    The Department of the Interior strives to strengthen its 
government-to-government relationship with Indian tribes through a 
commitment to consultation with Indian tribes and recognition of their 
right to self-governance and tribal sovereignty. We have evaluated this 
direct final rule under the Department's consultation policy and under 
the criteria in E.O. 13175 and have determined that it has no potential 
effects on federally recognized Indian tribes.

Paperwork Reduction Act (PRA)

    The direct final rule contains no new public reporting or 
recordkeeping requirements, and an OMB submission under the PRA is not 
required. The PRA provides that an agency may not conduct or sponsor a 
collection of information unless it displays a currently valid OMB 
control number. Until OMB approves a collection of information and 
assigns a control number, the public is not required to respond.

National Environmental Policy Act

    This direct final rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. DOI 
analyzed this direct final rule under the criteria of the National 
Environmental Policy Act and implementing regulations issued by the 
Council on Environmental Quality (40 CFR parts 1500-1508) and DOI (43 
CFR part 46). This direct final rule meets the criteria set forth in 43 
CFR 46.210(i) for a Departmental ``Categorical Exclusion'' in that this 
direct final rule is a regulation ``of an administrative, financial, 
legal, technical, or procedural nature; or whose environmental effects

[[Page 76290]]

are too broad, speculative, or conjectural to lend themselves to 
meaningful analysis. . . .'' Further, DOI has analyzed this direct 
final rule to determine if it meets any of the extraordinary 
circumstances that will require an environmental assessment or an 
environmental impact statement as set forth in 43 CFR 46.205. DOI has 
concluded that this direct final rule does not meet any of the criteria 
for extraordinary circumstances as set forth in 43 CFR 46.215(a) 
through (l).

Data Quality Act

    In developing this direct final rule, we did not conduct or use a 
study, experiment, or survey requiring peer review under the Data 
Quality Act (Pub. L. 106-554, app. C Sec.  515, 114 Stat. 2763, 2763A-
153-154).

Effects on the Nation's Energy Supply (E.O. 13211)

    This direct final rule is not a significant energy action under the 
definition in E.O. 13211. A Statement of Energy Effects is not 
required.

Clarity of This Regulation

    Executive Orders 12866 and 12988 and the Presidential Memorandum of 
June 1, 1998, require the Department to write all rules in plain 
language. This means that each rule the Department publishes must:
    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use clear language rather than jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible.
    If you feel that the Department did not meet these requirements, 
please send comments by one of the methods listed in the ADDRESSES 
section. To better help the Department revise the rule, your comments 
should be as specific as possible. For example, you should tell us the 
numbers of the sections or paragraphs that are unclearly written, which 
sections or sentences are too long, and the sections where you believe 
lists or tables would be useful.

Public Availability of Comments

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask the Department in your comment to withhold your personal 
identifying information from public review, we cannot guarantee that we 
will be able to do so.
    If you send an email comment directly to the Department without 
going through http://www.regulations.gov, your email address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, the Department recommends that you 
include your name and other contact information in the body of your 
comment and with any disk or CD-ROM you submit. If the Department 
cannot read your comment due to technical difficulties and cannot 
contact you for clarification, the Department may not be able to 
consider your comment. Electronic files should avoid the use of special 
characters, avoid any form of encryption, and be free of any defects or 
viruses.
    The Department cannot ensure that comments received after the close 
of the comment period (see DATES) will be included in the docket for 
this rulemaking and considered. Comments sent to an address other than 
those listed above will not be included in the docket for this 
rulemaking.

List of Subjects in 5 CFR Part 3501

    Conflict of interests, Department components, Gifts, Government 
employees, Prior approval of outside employment, Speaking and writing, 
and Teaching.

    Dated: October 27, 2016.
 Melinda J. Loftin,
Designated Agency Ethics Official, Department of the Interior.
    Approved: October 27, 2016.
Walter M. Shaub, Jr.,
Director, U.S. Office of Government Ethics.


    For the reasons stated in the preamble, DOI, with the concurrence 
of OGE, amends title 5 of CFR part 3501 as follows:

PART 3501--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 
OF THE DEPARTMENT OF THE INTERIOR

0
1. The authority citation for part 3501 is revised to read as follows:

    Authority: 5 U.S.C. 301, 7301; 5 U.S.C. App. (Ethics in 
Government Act of 1978); 30 U.S.C. 1211; 43 U.S.C. 11, 31(a); E.O. 
12674, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 3 CFR, 
1990 Comp., p. 306; 5 CFR 2635.105, 2635.203(a), 2635.403(a), 
2635.502, 2635.803, 2635.807.


0
2. In Sec.  3501.102 revise paragraph (a) to read as follows:


Sec.  3501.102  Designation of separate agency components.

    (a) Each of the following eleven components of the Department is 
designated as an agency separate from each of the other ten listed 
components and, for employees of that component, as an agency distinct 
from the remainder of the Department, for purposes of the regulations 
in subpart B of 5 CFR part 2635 governing gifts from outside sources, 5 
CFR 2635.807 governing teaching, speaking and writing, and Sec.  
3501.105 requiring prior approval of outside employment. However, the 
following eleven components are not deemed to be separate agencies for 
purposes of applying any provision of 5 CFR part 2635 or this part to 
employees of the remainder of the Department:
    (1) Bureau of Indian Affairs, including the Office of Indian 
Education Programs;
    (2) Bureau of Land Management;
    (3) Bureau of Reclamation;
    (4) Bureau of Ocean Energy Management;
    (5) Bureau of Safety and Environmental Enforcement;
    (6) National Indian Gaming Commission;
    (7) National Park Service;
    (8) Office of Surface Mining Reclamation and Enforcement;
    (9) Office of the Special Trustee for American Indians;
    (10) U.S. Fish and Wildlife Service; and
    (11) U.S. Geological Survey.
* * * * *

0
3. In Sec.  3501.103 revise the heading of paragraph (b), and paragraph 
(b)(1)(i), to read as follows:


Sec.  3501.103  Prohibited interest in Federal lands.

* * * * *
    (b) Prohibited financial interests in Federal lands for employees 
of the Bureau of Ocean Energy Management, the Bureau of Safety and 
Environmental Enforcement, and the Office of Natural Resources Revenue 
and for the Secretary and employees of the Office of the Secretary and 
other Departmental offices reporting directly to a Secretarial officer 
who are in positions classified at GS-15 and above. (1) * * *
    (i) All employees of the Bureau of Ocean Energy Management, Bureau 
of Safety and Environmental Enforcement, and Office of Natural 
Resources Revenue; and
* * * * *
[FR Doc. 2016-26458 Filed 11-1-16; 8:45 am]
BILLING CODE 4335-30-P