amount of the disputed debt. Each special Government employee should arrange his personal financial affairs to avoid any request to the Commission for administrative action to assist in the collection of debts.

(d) Gambling, betting, and lotteries. A special Government employee shall not participate, while on Government-owned or leased property or while on duty for the Government, in any gambling activity, including the operation of a gambling device, in conducting a lottery or pool, in a game for money or property, or in selling or purchasing a numbers slip or ticket. This paragraph does not preclude fundraising activities by employee organizations under section 3 of Executive Order 10927, March 18, 1961, 26 F.R. 2383.

(e) General conduct. Special Government employees shall conduct themselves in such manner that the work of the Commission is effectively accomplished and shall also observe the requirments of courtesy, consideration, and promptness in dealing with or serving the public. Special Government employees shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Government and to the Commission. [Order 319, 31 F.R. 4124, Mar. 9, 1966; 31 F.R. 4448, Mar. 16, 1966, as amended by Order 368, 33 F.R. 14233, Sept. 20, 1968]

§ 3.735-28 Statements of employment and financial interests.

(a) Forms. A copy of each of the following forms is appended to this Subpart. D.

(1) FPC Form 499-Statement of employment and financial interests.

(2) FPC Form 855-Certification of receipt and agreement for special Government employees.

(b) Special Government employees required to submit; time of submission.— (1) FPC Form 499-Statement of employment and financial interests. All special Government employees shall submit FPC Form 499 at the time the appointment is processed, and shall also submit a supplemental report on FPC Form 499 whenever any changes in or additions to the information contained in original FPC Form 499 occur during the period of the appointment.

(2) FPC Form 855-Certification of receipt and agreement for special Gov

3 Forms filed as part of the original document.

ernment employees. (1) All special Government employees in the employ of the Commission on March 9, 1966, shall complete this form within 5 days after receipt of this Subpart D.

(ii) All special Government employees appointed after March 9, 1966, shall complete this form at the time the appointment is processed.

(c) Place of submission. All FPC forms listed in paragraph (a) of this section shall be submitted to the Office of Personnel in an envelope marked "Personal Attention: Director, Office of Personnel Programs."

(d) Confidentiality. The Executive Director, the Director, Office of Personnel Programs, and the Agency Counselor shall be responsible for keeping all FPC forms listed in paragraph (a) of this section strictly confidential, and shall not grant access to, or permit disclosure of information from, these forms except to carry out the purpose of these regulations. Information contained thereon will not be disclosed except in accordance with the regulations of the Civil Service Commission or on a determination of good cause made by the Chairman of the Federal Power Commission.

(e) Information not required. A special Government employee is not required to supply information relating to his connection with, except employment, including employment required to be reported under 3.735-25(b), or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or any similar organization not conducted as a business enterprise and which is not engaged in the ownership or conduct of a business enterprise. Educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed "business enterprises" and are required to be included. Information showing the value of financial interests is not required.

(f) Effect of submission of forms on other requirements. Submission of any FPC form listed in paragraph (a) of this section is in addition to and not in substitution for, or in derogation of, any similar requirement imposed by law, order, or regulation. A special Government employee's submission of any of these forms does not permit him or any other person to participate in a matter in

(a) Availability. The interpretation and advisory service established under § 3.735-8 is available to all special Government employees seeking counsel and advice regarding the interpretation and applicability of the provisions and subject matter of this Subpart D.

(b) Duty of special Government employee to consult. Any special Government employee, who is uncertain as to the application of any provision of this Subpart D or is uncertain as to whether any contemplated action is permissible, or who believes any provision will cause him undue hardship, should submit his question, view, or request to his Deputy Counselor, either orally or in writing. The Deputy Counselor shall inform the special Government employee of his views, recommendations and reasons therefor, either orally or in writing when requested by the special Government employee or when the Deputy Counselor, in his discretion, considers a written reply advisable. The Deputy Counselor shall also send a memorandum or a copy of his written reply to the Director, Office of Personnel Programs for consideration and appropriate determination and action. At the request of the special Government employee, the Deputy Counselor shall, and at his own discretion may, submit his written reply to the special Government employee's inquiry to the Agency Counselor for review.

[Order 319, 31 F.R. 4124, Mar. 9, 1966, as amended by Order 353, 32 F.R. 15240, Nov. 3, 1967]

§ 3.735-30 Procedure for reviewing statements of employment and financial interests and reporting conflicts of interest.

(a) The Director, Office of Personnel Programs shall review all statements of employment and financial interests (FPC Form 499) submitted by special Government employees pursuant to this Subpart D to determine whether there are any actual or apparent conflicts of interest.

(b) The Director, Office of Personnel Programs shall receive and investigate complaints and information from all

sources, including other federal agencies, concerning the conduct of special Government employees.

(c) Bureau and office heads shall report any misconduct or violation of this Subpart D by special Government employees under their supervision and direction to the Director, Office of Personnel Programs.

(d) When the Director, Office of Personnel Programs believes, on the basis of information submitted in statements of employment and financial interests, and from other sources, that an actual or apparent conflict of interest exists, he shall immediately:

(1) Notify the Agency Counselor and the Executive Director.

(2) Inform the special Government employee concerned and provide him with full opportunity to explain the actual or apparent conflict to the Director, Office of Personnel Programs or the Agency Counselor.

(3) Endeavor to resolve the conflict in accordance with the standards and requirements of this Subpart D.

(e) When actual or apparent conflicts of interest are not resolved by the Director, Office of Personnel Programs, he shall report all information concerning the matter to the Chairman and/or the Executive Director through the Agency Counselor, and shall notify the special Government employee that such a report has been made. The special Government employee, at his own request, shall be given an opportunity to explain the actual or apparent conflict to the Chairman and/or the Executive Director.

[Order 319, 31 F.R. 4124, Mar. 9, 1966, as amended by Order 353, 32 F.R. 15240, Nov. 3, 1967]

§ 3.735-31 Disciplinary and other remedial action.

Violation of

(a) Disciplinary action. the provisions of this Subpart D by any special Government employee, may be cause for appropriate disciplinary action which may be in addition to any penalty prescribed by law. Appropriate disciplinary action shall be effected in accordance with applicable laws, executive orders, and regulations and may include one or more of the following: removal, suspension, reduction in grade. The dis

ciplinary action taken will depend upon the seriousness of the violation and pertinent conditions and circumstances. In instances where criminal violation is in

dicated, the matter will be referred by the Commission to the Department of Justice for appropriate action.

(b) Other remedial action. Other remedial action shall be effected in accordance with applicable laws, executive orders, and regulations and may include:

(1) Divestment by the special Government employee of his conflicting interest. (2) Changes in assigned duties.

(3) Disqualification for a particular assignment.

(c) Procedure. After receipt from the Agency Counselor of the conflicts-ofinterest report prepared by the Director, Office of Personnel Programs in accordance with the provisions of $3.73530(e), and after consideration of the explanation provided by the special Government employee, the Chairman shall take such appropriate disciplinary

or other remedial action as may be required. If the Chairman concludes that there is no actual or apparent conflict of interest, or if no disciplinary or other remedial action is required, the Chairman shall so inform the special Government employee.

[Order 319, 31 F.R. 4124, Mar. 9, 1966, as amended by Order 353, 32 F.R. 15240, Nov. 8, 1967]

§ 3.735-32 Miscellaneous statutes and regulations.

Each special Government employee shall acquaint himself with the statutes and regulations relating to ethical conduct listed in § 3.735-11. The full texts of the statutes and regulations listed in § 3.735-11 are available in the office of the Agency Counselor and the Office of Personnel Programs.

[Order 353, 32 F.R. 15240, Nov. 3, 1967]

acceptance.

4.86 Construction work under permit.

AUTHORITY: The provisions of this Part 4 issued under secs. 3(13), 4, 10(1), 23, 41 Stat. 1063, 1065, 1068, 1075, as amended, secs. 301 (b), 308, 309, 49 Stat. 854, 858; 16 U.S.C. 796 (13), 797, 803 (1), 816, 825(b), 825g, 825h, unless otherwise noted.

SOURCE: The provisions of this Part 4 contained in Order 141,, 12 F.R. 8485, Dec. 19, 1947, unless otherwise noted.

DETERMINATION OF COST OF PROJECTS CONSTRUCTED UNDER LICENSE

§ 4.1

Initial cost statement.

When a project is constructed under a license issued under the act, the licensee shall file within 1 year after the original project is ready for service, an initial statement, under oath, with four additional conformed copies thereof, showing the amount claimed by the licensee as the actual legitimate cost of construction of the original project and the price paid for water rights, rights-of-way, lands or interests in lands, in such detail and on such forms as the Commission may prescribe or approve for that purpose. Similar statements with respect to additions and betterments to the original project, as of December 31, shall be filed annually in the same manner, before April 1 of the following year, unless the Commission shall otherwise direct. Prescribed forms for stating the cost of the original project and of additions thereto and betterments thereof will be furnished by the Commission upon application by the licensee.

Each statement so filed shall give full, adequate, and complete information with respect to the cost of the original project or addition and betterment, as the case may be. Any statement which does not contain sufficient information will be returned to the licensee for such additional information as the Commission may deem necessary.

§ 4.3 Report on project cost.

When a statement in satisfactory form shall have been filed with the Commission, its representatives will make an audit of the accounts, will examine and analyze the books, cost records, engineering reports, and other records supporting such statement or pertaining to the project, will inspect the project works, and will prepare a report setting forth their findings and recommendations with respect to the cost as claimed. § 4.4 Service of report.

Copies of such report will be served by registered mail upon said licensees, and copies will also be sent to the State public service commission, or if the State has no regulatory agency, to the governor of the State where such project is located, and to such other parties as the Com

mission shall prescribe, and the report will be made available for public inspection at the time of service upon the licensee.

§ 4.5

Time for filing protest.

Thirty days after service thereof will be allowed to such licensee within which to file a protest to such reports. If no protest is filed within the time allowed, the Commission will issue such order as may be appropriate. If a protest is filed, a public hearing will be ordered in accordance with § 1.20 of this chapter.

CROSS REFERENCE: For protests, see § 1.10 of this chapter.

§ 4.6 Burden of proof.

The burden of proof to sustain each item of the statement of claimed cost as filed shall be upon the licensee and only such items as are in the opinion of the Commission supported by satisfactory proof may be entered in the electric plant accounts of the licensee.

§ 4.7 Finding and final statement.

Final action by the Commission will be in the form of a finding and order entered upon its minutes and served upon all parties to the proceeding. The licensee shall thereafter file a final statement, under oath, in duplicate, with two additional conformed copies thereof, showing actual legitimate cost revised in conformity with the order of the Commission, together with a statement showing that its records have been revised in conformity with such order.

DETERMINATION OF FAIR VALUE OF CONSTRUCTED PROJECTS, UNDER SECTION 23 (a) OF THE ACT

§ 4.10 Valuation data.

In every case arising under section 23 (a) of the act requiring the determination of fair value of a project already constructed, the licensee shall, within 6 months after the date of issuance of license, file with the Commission an inventory and appraisal in detail, as of the effective date of the license, of all property subject thereto and to be valued. Such inventory and appraisal shall also show or shall be accompanied by a statement showing the actual legitimate, or if not known, the estimated original cost of the property, by prescribed structural and functional items and units; an estimate of the accrued depreciation segre

gated as to each separate major item or unit of property; and such other detail as the Commission may require in any particular case. An original, under oath, and four copies of the documents described above shall be submitted on forms to be prescribed or approved by the Commission prior to such submission. § 4.11 Reports.

Representatives of the Commission will inspect the project works, engineering reports, and other records of the project, check the inventory and make an appraisal of the property and an audit of the books, records, and accounts of the licensee relating to the property to be valued, and will prepare a report of their findings with respect to the inventory, appraisal, original cost, accrued depreciation, and fair value of the property.

§ 4.12 Service of report.

A copy of such report will be served by registered mail upon said licensee, and copies will also be sent to the State public service commission, or if the State has no regulatory agency, to the governor of the State where such project is located. The report will be made available for public inspection at the time of service upon the licensee.

§ 4.13

Time for filing protest.

Thirty days after service thereof will be allowed to the licensee within which to file a protest to such report.

CROSS REFERENCE: For protests, see § 1.10 of this chapter.

§ 4.14 Hearing upon report.

After the expiration of the time within which a protest may be filed, a public hearing will be ordered in accordance with § 1.20 of this chapter. The Commission after the conclusion of the hearing will make a finding of fair value, accompanied by an order which will be served upon the licensee and all parties to the proceeding. The licensee shall thereafter file a final statement, under oath, in duplicate, with two additional conformed copies thereof, showing the fair value of the project revised in conformity with the order of the Commission and showing compliance with the provisions of such order with respect to depreciation, together with a statement showing that its records have been revised in conformity with such order.

DETERMINATION OF COST OF CONSTRUCTED PROJECTS NOT SUBJECT TO SECTION 23 (a) OF THE ACT

§ 4.20 Initial statement.

In all cases where licenses are issued for projects already constructed, but which are not subject to the provisions of section 23(a) of the act (49 Stat. 846; 16 U.S.C. 816), the licensee shall, within 6 months after the date of issuance of license, file with the Commission an initial statement containing an inventory in detail of all property included under the license, as of the effective date of such license; showing the actual legitimate, or if not known, estimated original cost of the property by prescribed structural and functional items and units; setting forth an estimate of the accrued depreciation segregated as to each separate major item or unit of property; and supplying such other detail as the Commission may require in any particular case. An original, under oath, and four copies of such statement shall be submitted on forms prescribed or approved by the Commission prior to such submission. § 4.21 Reports.

Representatives of the Commission will inspect the project works, engineering reports, and other records of the project, check the inventory and estimated depreciation, make an audit of the books, records and accounts of the licensee relating to the property under license, and prepare a report of their findings with respect to the inventory, the original cost of the property and the estimated accrued depreciation thereon. § 4.22

Service of report.