This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

17683

Vol. 62, No. 70

Friday, April 11, 1997

NUCLEAR REGULATORY

COMMISSION

10 CFR Parts 25, 50, 54 and 95

RIN 3150–AF37

Access to and Protection of Classified

Information

AGENCY: Nuclear Regulatory

Commission.

ACTION: Final rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is amending its

regulations to conform the requirements

for the protection of and access to

classified information to new national

security policy documents. This final

rule is necessary to ensure that

classified information in the possession

of NRC licensees and others under the

NRC’s regulatory requirements is

protected in accordance with current

national policies.

EFFECTIVE DATE: May 12, 1997.

FOR FURTHER INFORMATION CONTACT:

Duane G. Kidd, Division of Security,

Office of Administration, U.S. Nuclear

Regulatory Commission, Washington,

DC 20555–0001, telephone (301) 415–

7403, Email DGK@NRC.GOV.

SUPPLEMENTARY INFORMATION:

I. Background

On August 5, 1996 (61 FR 40555), the

NRC published a proposed rule in the

Federal Register to amend 10 CFR Parts

25 and 95 pertaining to the protection

of Restricted Data and classified

National Security Information at

licensee, certificate holder and other

facilities. The proposed amendments

were intended to conform NRC

regulations to new national

requirements for the protection of and

access to classified National Security

Information that were revised by the

issuance of the National Industrial

Security Program Operating Manual

(NISPOM), Executive Order (E.O.)

12958, ‘‘Classified National Security

Information,’’ dated April 17, 1995, and

E.O. 12968, ‘‘Access to Classified

Information,’’ dated August 2, 1995. The

requirements of 10 CFR Parts 25 and 95,

and the sections of Parts 50 and 54 that

contain requirements for access to

Restricted Data, were substantially

based on E.O. 12356, dated April 6,

1982, which was superseded by E.O.

12958 and supplemented by the

NISPOM.

The final rule amends the provisions

of 10 CFR Parts 25, 50, 54, and 95 that

deal with requirements for access to and

protection of classified information that

have been changed or added by the

NISPOM or the Executive Orders with

the exception of those requirements

related to personnel security clearance

for access to Secret Restricted Data.

The proposed rule would have

permitted, in §§ 25.15 and 95.35, access

to most Secret Restricted Data, other

than that defined as Critical Secret

Restricted Data in the NISPOM and its

supplement, with an ‘‘L’’ clearance

based on a National Agency Check with

Inquiries and Credit Check (NACIC).

The Department of Energy (DOE)

objected to this change in their formal

comments on the proposed rule. DOE

believes that, pending completion of the

Joint DOE/DoD Nuclear Weapons

Access Authorization Review Group

determination of what constitutes the

most sensitive Restricted Data, the

subsequent review of all classification

guidance to determine if the guidance

contains this type of information, and

the upgrading of this information to Top

Secret, all personnel with access to

Secret Restricted Data must have a ‘‘Q’’

clearance based on a Single Scope

Background Investigation (SSBI). Given

DOE’s special statutory authorities in

establishing controls for Restricted Data,

their views deserve special

consideration. However, because this

requirement may exceed the

requirements of applicable National

Policy (i.e., the NISPOM), and result in

additional costs to licensees and

certificate holders, the NRC has decided

to withdraw the changes to §§ 25.15 and

95.35 in this final rulemaking and to

republish them separately for additional

public comment. This will provide

interested parties an equal opportunity

to address the issues and provide

supporting rationale for their

recommendations and comments.

Other aspects of the proposed rule

were generally acceptable to all

commenters. Those changes included

revised and added definitions such as

Cognizant Security Agency, Classified

National Security Information,

Classified Information, Facility Security

Clearance, Foreign Ownership, Control,

or Influence as well as numerous

amendments to reflect the fact that the

NRC may permit another Cognizant

Security Agency (DOE, DoD, or CIA) to

assume some or all of the security

oversight functions at an NRC facility

under the requirements of 10 CFR Parts

25 and/or 95 when that agency also has

a significant security interest at the

facility (§§ 25.13, 25.17, 25.19, 25.21,

25.23, 25.25, 25.27, 25.29, 25.33, 95.17,

95.18, 95.19, 95.25, 95.27, 95.29, 95.31,

95.33, 95.37, 95.39, 95.43, 95.47, 95.49,

95.51, 95.53, 95.57 and 95.59). The final

rule addresses the intent of E.O. 12829,

‘‘National Industrial Security Program,’’

to reduce wasteful and inefficient

duplicative oversight of private facilities

which have classified interests from

more than one government agency.

The final rule also adopts new

requirements in areas where the

Executive Orders or the NISPOM,

mandate specific requirements not

included in the previous versions of the

rules. These new requirements include:

Requiring that key management

personnel have access authorizations as

well as those employees with access to

classified information (§§ 95.17 and

95.18);

Permitting reinstatement of an access

authorization up to 24 months after

termination instead of the previous 6

months(§ 25.29);

Permitting facility security officers to

issue visit authorization letters directly

rather than processing authorization

requests through the NRC Division of

Security (§ 25.35);

Requiring a finding that a facility is

not under foreign ownership, control or

influence (§§ 95.15 and 95.17);

Requiring facility security officers to

have specific training related to their

position (§ 95.33);

Permitting the use of reinforced steel

filing cabinets with lockbars and key

locks for classified information

(provided appropriate supplemental

protection is in place during nonworking hours) (§ 95.25);
17684 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations

Changing the security classification

markings to conform to E.O. 12958

(§ 95.37);

Reducing the accountability

requirements for Secret documents

(§ 95.41);

Defining procedures for challenging

classification decisions that one believes

to be in error (§ 95.37);

Allowing for additional methods of

transmitting classified information

(§ 95.39);

Changing 10 CFR Parts 50 and 54 to

refer to current procedures in 10 CFR

Parts 25 and/or 95 for access to

classified information (§§ 50.37 and

54.17); and

Imposing fewer limitations on a

facility’s authority to reproduce

classified information when

operationally necessary (§ 95.43).

II. Comments on the Proposed Rule

The Commission received two letters

commenting on the proposed rule, one

from Georgia Power Company and one

from the DOE. Copies of the letters are

available for public inspection and

copying for a fee at the Commission’s

Public Document Room, located at 2120

L Street, NW. (Lower Level),

Washington, DC. Both comments

support the rulemaking, but provide

recommendations for clarifications and

improvements. The Georgia Power

Company recommends that the NRC:

(1) Provide a procedure for the

designation of the Cognizant Security

Agency (CSA) for a facility;

(2) Address the Commission’s role in

ensuring compliance with the rules of

other CSA’s;

(3) Reconcile Restricted Data

requirements in 10 CFR Parts 50 and 54

of the Commission’s regulations with

the proposed changes to 10 CFR Parts 25

and 95; and,

(4) Define when a facility clearance

from the Commission is required. The

DOE recommends that the NRC:

(1) Use either ‘‘access authorization’’

throughout the rule or indicate that

‘‘personnel security clearance’’ is a

synonym for ‘‘access authorization;’’

(2) Eliminate the use of the term

‘‘Critical Secret Restricted Data’’ and

require all Secret Restricted Data to be

protected at the level required by the

February 1995 NISPOM Supplement;

(3) Clarify the definition of ‘‘access

authorization’’ in § 25.5;

(4) Clarify the requirements for review

of the SF–86 in § 25.17(e);

(5) Clarify the scope of information to

be protected in § 95.3;

(6) Change the term ‘‘survey’’ to

‘‘review’’ in § 95.17(a)(2);

(7) Clarify the level of access

authorization required for senior

management in § 95.18;

(8) Raise the level of protection for

Secret Restricted Data in § 95.25 to the

requirements of the NISPOM

Supplement;

(9) Eliminate the requirements in

§ 95.25(c)(2)(v) to change security

container combinations once every 12

months which exceeds the NISPOM

requirements;

(10) Require that documents

indicating ‘‘multiple sources’’ as the

basis for classification have those

sources identified on the record copy of

the document; and,

(11) Require that ‘‘person’’ not be

referred to as able to possess a facility

clearance in § 95.57.

Comments From Georgia Power

Comment: The commenter stated that

‘‘* * * the proposed rule does not

explain which of these agencies is the

appropriate CSA in a given situation or

for a given facility, or who makes that

determination. Conceivably, more than

one of the agencies could be the CSA.’’

Georgia Power recommended that the

final rule include a more precise

definition of CSA or a procedure for

designating a CSA in a given situation.

Response: The definition of a CSA in

10 CFR Parts 25 and 95 has been

changed to reflect that the CSA is the

agency that exercises primary authority

for the protection of the classified

information at the facility and is the

agency with which the facility interacts

in these matters. The NRC agreement

with the DoD and DOE implementing

the National Industrial Security Program

clearly indicates that one agency, the

one with the greater security interest as

determined between the agencies,

would serve as the CSA and would be

the agent of the other for matters

relating to the protection of classified

information. The facility would

normally deal directly with the CSA on

all issues related to the protection of

classified information at that facility

and the CSA would inform the other

agency of issues related to its security

interest.

Comment: With respect to the issue of

the Commission’s role of ensuring

compliance with the rules of other

CSAs, the commenter’s concern was

‘‘* * * how the Commission will be

notified regarding access authorizations

requested from another agency. Does an

NRC licensee have an obligation to

notify the Commission if it applies to

another CSA for an access

authorization?’’

Response: Section 25.17 has been

revised to require a facility, with a CSA

other than NRC, to advise the NRC

when it submits an individual for an

access authorization for access to NRC

classified information. The NRC does

not need to be notified when the facility

submits access authorization requests

for access to classified information of

the other agency. In keeping with the

comment that the process should be

simple, the change merely requires a

letter of request for access to NRC

classified information. The NRC must be

involved when access to NRC classified

information is requested since the NRC

must make the need-to-know

determination. The NRC will handle

any necessary coordination between

itself and the CSA.

Comment: The commenter noted an

apparent conflict between §§ 50.37 and

54.17(g) and other Commission

regulations.

Response: The NRC has revised those

paragraphs to resolve the conflict. The

NRC has clarified that compliance with

10 CFR Parts 25 and/or 95 satisfies the

requirements of §§ 50.37 and 54.17(g) as

they relate to the protection of classified

information.

Comment: The commenter indicated

that § 95.15 was unclear on whether a

facility clearance was required under

certain circumstances for licensee

activities at other facilities. Specifically,

the commenter stated, ‘‘As revised by

the proposed rule, it is unclear whether

10 CFR 95.15 requires an NRC licensee

to obtain a facility clearance from the

Commission in order for employees of

that licensee to ‘use’ or ‘handle’

classified information which is located

at a completely different facility,

including facilities subject to the

oversight of another agency. For

example, does 10 CFR 95.15 require a

facility clearance from the Commission

in order for employees of an NRC

licensed facility to use or handle

classified information which is

maintained at a DOE facility?

Conversely, does 10 CFR 95.15 require

the NRC to clear the non-NRC licensed

facility? Although it does not appear to

be the Commission’s intent to require a

facility clearance in either situation, an

affirmative statement in this regard

would assist in the implementation of

the rule.’’

Response: Section 95.15 has been

modified to clarify that an NRC facility

clearance is only required for the use or

possession of NRC classified

information at the facility. A licensee or

other facility whose personnel are

cleared by another agency for access to

that agency’s information at another

facility does not require a facility

clearance under § 95.15, nor would NRC

clear the other facility. However, it

should be clear that if a licensee or other

facility has a facility clearance for NRC

classified information and they wish
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations 17685

another facility (e.g., one of their

contractors) to have access to the NRC

classified information at their (the

contractor’s) facility, that contractor

would require an NRC facility clearance.

Comments From DOE

Comment: DOE had two comments

relating to ‘‘access authorization:’’

(1) While ‘‘access authorization’’ was

the commonly used term * * * ‘‘The

introduction to the proposed rule

references ‘personnel security clearance’

and some of the language in the text

contains variations, such as ‘personnel

access authorization’. A common term

should be used throughout, or the fact

that a personnel security clearance is a

synonym for access authorization

established.’’

(2) The definition for ‘‘access

authorization’’ is confusing, stating that

it means an individual is eligible for

‘‘security clearance for access to

classified information.’’

Response: The term ‘‘personnel

security clearance’’ in the

Supplementary section of the final rule,

which is an explanatory section rather

than a portion of the rule, has been

changed to ‘‘access authorization.’’ The

other changes have not been adopted

since this is a recommendation for an

editorial change and, in each case where

the terms are used the meaning is clear.

The definition of ‘‘access authorization’’

has been used within the NRC industrial

security program since the early 1980’s,

including at sites with joint DOE

security interests, and within the NRC

internal program since the inception of

the agency, without confusion. The only

change to the definition in this rule is

to include certificate holders within its

scope.

Comment: The commenter noted that

the proposed rule contains the term

‘‘Critical Restricted Data.’’ They state

that this term has not been adopted by

any agency and that the level of

protection for Secret Restricted Data was

not adequate. Specifically the

commenter stated, ‘‘The draft regulation

uses the term ‘Critical Secret Restricted

Data.’ This term has not be (sic)

implemented by any agency. A review

group was formed to review this issue

and has decided not to use this term.

Instead, information will be

appropriately upgraded to Top Secret. It

is strongly recommended that NRC not

use the term ‘‘Critical Secret Restricted

Data’’ in this regulation. Instead we

suggest that all Secret Restricted Data

continue to be protected at the NISPOM

supplement level until the critical

information has been upgraded to Top

Secret.’’ The commenter further states

‘‘The storage requirements for Secret

contained in this(sic) sections are not

consistent with the storage requirements

for Secret Restricted Data in the

NISPOM supplement.’’

Response: Because of DOE’s statutory

responsibilities for the protection of

Restricted Data, the potential economic

impact on licensees and certificate

holders and possible discrepancies with

the requirements of the NISPOM, NRC

is withdrawing the changes to §§ 25.15

and 95.35 which deal with the level of

clearance/type of background

investigation required for access to

Secret Restricted Data and will

republish those changes separately for

public comment. Additionally, although

the term ‘‘Critical Secret Restricted

Data’’ is defined in and the security

requirements for it are specified in

Chapter 9, ‘‘Restricted Data,’’ of the

NISPOM Supplement, dated February

1995, the Supplement also indicates

that a Joint DOE/DoD Nuclear Weapons

Access Authorization Group is

reviewing this issue and that there are

ongoing efforts by the DOE and DoD to

revise the requirements reflected in the

Supplement. Because that group has

decided not to use the term ‘‘Critical

Restricted Data,’’ it has been removed

from § 95.31(b) and a description of the

information it was intended to protect

has been substituted. However, because

the level of physical protection required

for Secret Restricted Data in the

proposed rule is essentially the same as

the requirements of the current, long

standing Part 95, and those

requirements appear to meet the

requirements of the NISPOM, it is

difficult for the NRC to justify

increasing its physical security

requirements for all Secret Restricted

Data, at increased financial and

administrative burden to licensees and

certificate holders at this time. However,

if new policies for Restricted Data are

approved and issued the NRC, at that

time, will consider revising its

regulations to reflect the new policies.

Comment: The commenter questioned

whether § 25.17(e) requires a licensee/

contractor to review Part 2 of the SF–86.

Response: It is not the intent of this

section that personnel at a licensee,

certificate holder, or other facility

review Part 2 of the SF–86, nor has it

been NRC practice that this occur. The

NRC’s instructions for completing the

SF–86 explicitly state that Part 2 of the

SF–86 is to be placed in a sealed

envelope by the individual completing

the form and that the envelope is to be

forwarded to the NRC unopened.

Section 25.17(d)(1)(i) has been clarified

to ensure that these requirements are

clear.

Comment: The commenter is

concerned that § 95.3 does not include

Formerly Restricted Data.

Response: While Formerly Restricted

Data (FRD), information related

primarily to the military use of atomic

weapons, is rare in the NRC program,

the NRC agrees that its regulations

should clearly address all forms of

classified information. Section 95.3 has

been revised accordingly.

Comment: The commenter is

concerned that the term ‘‘security

survey’’ is used in 10 CFR Part 95

instead of the NISPOM term ‘‘security

review.’’

Response: The term ‘‘survey’’ in

§§ 95.17(a)(2) and 95.59 has been

changed to ‘‘review.’’

Comment: The commenter is

concerned that § 95.18 is not sufficiently

clear about the level of access

authorizations required for senior

management. Specifically, the

commenter states, ‘‘Senior management

cannot be cleared to the ‘‘level of the

facility’’ by NRC, as NRC can only grant

‘‘Q’’ and ‘‘L’’ access authorizations, and

facilities are classified as Secret, Top

Secret, etc. Perhaps senior management

could be cleared to a level

commensurate with that of the facility

clearance.’’

Response: Section 95.18 has been

revised to reflect that senior

management will be cleared to a level

commensurate with that of the facility

clearance.

Comment: The commenter is

concerned that the requirement to

change security container combinations

once every 12 months exceeds the

requirements of the NISPOM.

Response: Section 95,25(c)(2)(v) has

been deleted, eliminating this

requirement.

Comment: The commenter is

concerned that documents classified

from multiple sources will not have an

adequate record of what those sources

were. Specifically, the commenter

states, ‘‘Suggest a sentence be added to

indicate that on a document marked

‘multiple sources’ that the multiple

sources must be identified in the

records copy of the document.’’

Response: The suggested revision is

already contained in § 95.37(c)(1)(iv).

Comment: The commenter is

concerned about the use of the term

‘‘person’’ in association with a facility

clearance and that the definition of

facility clearance should be more

detailed.

Response: It is clear from the

definitions and the context that any

possessor of a facility clearance is

obligated to immediately report certain

types of information. The definition
17686 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations

‘‘facility (security) clearance’’ is a

verbatim extract from the NISPOM and

the definition of ‘‘person’’ used in Part

95 is similarly defined throughout 10

CFR and has been used for many years

without confusion as to its meaning.

III. The Final Rule

With the exception of the items

addressed under ‘‘Comments on the

Proposed Rule’’ and a slight change to

the definition of ‘‘Visit Authorization

Letter’’ in § 25.5, the final rule is the

same as the proposed rule. The specific

changes from the proposed rule are—

The proposed revisions to §§ 25.15

and 95.35 have been withdrawn;

The definition of ‘‘CSA’’ in 10 CFR

Parts 25 and 95 has been revised to

reflect that the CSA is the agency which

exercises primary authority for the

protection of the classified information

at the facility and is the agency with

which the facility interacts in these

matters;

The definition of ‘‘Visit Authorization

Letter’’ in § 25.5 has been revised to

clarify that such a letter is only required

for information specifically related to

the license, certificate, or other NRC

program at the facility;

Section 25.17 has been amended to

require a facility, with a CSA other than

NRC, to advise the NRC when it submits

an individual for an access

authorization for access to NRC

classified information, but not when the

facility submits access authorization

requests for access to the classified

information of the other agency;

Section 95.31(b) has been revised to

delete the term ‘‘Critical Secret

Restricted Data’’ and replace it with a

generic description of the type of data

it was intended to protect;

Section 25.17(d)(1)(i) has been

modified to clarify that facility security

personnel are not to review Part 2 of the

SF–86;

Sections 50.37 and 54.17(g) have been

amended to clarify that compliance with

10 CFR Parts 25 and/or 95 satisfies the

requirements of 10 CFR Parts 50 and 54;

Section 95.3 has been modified to

include Formerly Restricted Data within

its scope;

Section 95.15 has been modified to

clarify that an NRC facility clearance is

only required for the use or possession

of NRC classified information at the

facility;

Sections 95.17(a)(2) and 95.59 have

been revised to change ‘‘survey’’ to

‘‘review’’;

Section 95.18 has been revised to

reflect that senior management will be

cleared to a level commensurate with

the facility clearance rather than ‘‘to the

level of’’ the facility clearance; and,

Section 95.25 has been revised to

eliminate the requirement for changing

security container combinations once

every twelve months.

Small Business Regulatory Enforcement

Fairness Act

In accordance with the Small

Business Regulatory Enforcement

Fairness Act of 1996, the NRC has

determined that this action is not a

major rule and has verified this

determination with the Office of

Information and Regulatory Affairs of

OMB.

Environmental Impact: Categorical

Exclusion

The NRC has determined that this

final rule is the type of action described

in categorical exclusion 10 CFR

51.22(c)(2). Therefore, neither an

environmental impact statement nor an

environmental assessment has been

prepared for this final rule.

Paperwork Reduction Act Statement

This final rule amends information

collection requirements that are subject

to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501, et seq.). These

requirements were approved by the

Office of Management and Budget,

approval numbers 3150–0046, 3150–

0047, and 3150–0050.

The public reporting burden for this

collection of information is estimated to

average .5 hours per response, including

the time for reviewing instructions,

searching existing data sources,

gathering and maintaining the data

needed, and completing and reviewing

the collection of information.

Send comments on any aspect of this

collection of information, including

suggestions for reducing the burden, to

the Information and Records

Management Branch (T–6 F33), U.S.

Nuclear Regulatory Commission,

Washington, DC 20555–0001, or by

Internet electronic mail at

BJS1@NRC.GOV; and to the Desk

Officer, Office of Information and

Regulatory Affairs, NEOB–10202,

(3150–0046, –0047 and –0050), Office of

Management and Budget, Washington,

DC 20503.

Public Protection Notification

The NRC may not conduct or sponsor,

and a person is not required to respond

to, a collection of information unless it

displays a currently valid OMB control

number.

Regulatory Analysis

The Commission has prepared a

regulatory analysis for this final

regulation. The analysis examines the

costs and benefits of the alternatives

considered by the Commission.

Interested persons may examine a copy

of the regulatory analysis at the NRC

Public Document Room, 2120 L Street,

NW. (Lower Level), Washington, DC.

Single copies of the analysis may be

obtained from Duane G. Kidd, Division

of Security, Office of Administration,

U.S. Nuclear Regulatory Commission,

Washington, DC 20555–0001, telephone

(301) 415–7403.

Regulatory Flexibility Certification

As required by the Regulatory

Flexibility Act of 1980 (5 U.S.C. 605(b)),

the Commission certifies that this rule

does not have a significant economic

impact upon a substantial number of

small entities. The NRC carefully

considered the effect on small entities in

developing this final rule on the

protection of classified information and

has determined that none of the

facilities affected by this rule would

qualify as a small entity under the

NRC’s size standards (10 CFR 2.810).

Backfit Analysis

The NRC has determined that the

backfit rule, 10 CFR 50.109, applies to

this rulemaking initiative because it

falls within the criteria of 10 CFR Part

50.109(a)(1), but that a backfit analysis

is not required because this rulemaking

qualifies for exemption under 10 CFR

50.109(a)(4)(iii) that reads ‘‘That the

regulatory action involves * * *

redefining what level of protection to

the * * * common defense and security

should be regarded as adequate.’’

List of Subjects

10 CFR Part 25

Classified information, Criminal

penalties, Investigations, Reporting and

recordkeeping requirements, Security

measures.

10 CFR Part 50

Antitrust, Classified information,

Criminal penalties, Fire protection,

Intergovernmental relations, Nuclear

power plants and reactors, Radiation

protection, Reactor siting criteria,

Reporting and recordkeeping

requirements.

10 CFR Part 54

Administrative practice and

procedure, Aging management review,

Backfitting, Classified information,

Criminal penalties, Nuclear power

plants and reactors, Reporting and

recordkeeping requirements.
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations 17687

10 CFR Part 95

Classified information, Criminal

penalties, Reporting and recordkeeping

requirements, Security measures.

For the reasons set out in the

preamble and under the authority of the

Atomic Energy Act of 1954, as amended,

the Energy Reorganization Act of 1974,

as amended, and 5 U.S.C. 552 and 553,

the NRC is adopting the following

amendments to 10 CFR Parts 25, 50, 54

and 95.

PART 25—ACCESS AUTHORIZATION

FOR LICENSEE PERSONNEL

1. The authority citation for Part 25 is

revised to read as follows:

Authority: Secs. 145, 161, 68 Stat. 942,

948, as amended (42 U.S.C. 2165, 2201); sec.

201, 88 Stat. 1242, as amended (42 U.S.C.

5841); E.O. 10865, as amended, 3 CFR 1959—

1963 Comp., p. 398 (50 U.S.C. 401, note);

E.O. 12829, 3 CFR, 1993 Comp., p. 570; E.O.

12958, 3 CFR, 1995 Comp., p. 333; E.O.

12968, 3 CFR, 1995 Comp., p. 396.

Appendix A also issued under 96

Stat. 1051 (31 U.S.C. 9701).

2. Section 25.1 is revised to read as

follows:

§ 25.1 Purpose.

The regulations in this part establish

procedures for granting, reinstating,

extending, transferring, and terminating

access authorizations of licensee

personnel, licensee contractors or

agents, and other persons (e.g.,

individuals involved in adjudicatory

procedures as set forth in 10 CFR Part

2, subpart I) who may require access to

classified information.

3. Section 25.3 is revised to read as

follows:

§ 25.3 Scope.

The regulations in this part apply to

licensees and others who may require

access to classified information related

to a license or an application for a

license.

4. Section 25.5 is amended by revising

the definitions Access authorization and

Need-to-know and by adding the

definitions of Certificate holder,

Classified information, Classified

National Security Information,

Cognizant Security Agency, and Visit

authorization letters in alphabetical

order to read as follows:

§ 25.5 Definitions.

Access authorization means an

administrative determination that an

individual (including a consultant) who

is employed by or an applicant for

employment with the NRC, NRC

contractors, agents, licensees and

certificate holders, or other person

designated by the Executive Director for

Operations, is eligible for a security

clearance for access to classified

information.

* * * * *

Certificate holder means a facility

operating under the provisions of Parts

71 or 76 of this chapter.

Classified information means either

classified National Security Information,

Restricted Data, or Formerly Restricted

Data or any one of them. It is the generic

term for information requiring

protection in the interest of National

Security whether classified under an

Executive Order or the Atomic Energy

Act.

Classified National Security

Information means information that has

been determined pursuant to E.O. 12958

or any predecessor order to require

protection against unauthorized

disclosure and that is so designated.

Cognizant Security Agency (CSA)

means agencies of the Executive Branch

that have been authorized by E.O. 12829

to establish an industrial security

program for the purpose of safeguarding

classified information under the

jurisdiction of those agencies when

disclosed or released to U.S. industry.

These agencies are the Department of

Defense, the Department of Energy, the

Central Intelligence Agency, and the

Nuclear Regulatory Commission. A

facility has a single CSA which

exercises primary authority for the

protection of classified information at

the facility. The CSA for the facility

provides security representation for

other government agencies with security

interests at the facility. The Secretary of

Defense has been designated as

Executive Agent for the National

Industrial Security Program.

* * * * *

Need-to-know means a determination

made by an authorized holder of

classified information that a prospective

recipient requires access to specific

classified information to perform or

assist in a lawful and authorized

governmental function under the

cognizance of the Commission.

* * * * *

Visit authorization letters (VAL)

means a letter, generated by a licensee,

certificate holder or other organization

under the requirements of 10 CFR Parts

25 and/or 95, verifying the need-toknow and access authorization of an

individual from that organization who

needs to visit another authorized facility

for the purpose of exchanging or

acquiring classified information related

to the license.

5. In § 25.8, paragraphs (a) and (b) are

revised to read as follows:

§ 25.8 Information collection

requirements: OMB approval.

(a) The Nuclear Regulatory

Commission has submitted the

information collection requirements

contained in this part to the Office of

Management and Budget (OMB) for

approval as required by the Paperwork

Reduction Act (44 U.S.C. 3501 et seq.).

The NRC may not conduct or sponsor

and a person is not required to respond

to a collection of information unless it

displays a currently valid OMB control

number. OMB has approved the

information collection requirements

contained in this part under control

number 3150–0046.

(b) The approved information

collection requirements contained in

this part appear in §§ 25.11, 25.17,

25.21, 25.23, 25.25, 25.27, 25.29, 25.31,

25.33, and 25.35.

* * * * *

6. In § 25.13, paragraph (a) is revised

to read as follows:

§ 25.13 Maintenance of records.

(a) Each licensee or organization

employing individuals approved for

personnel security access authorization

under this part, shall maintain records

as prescribed within the part. These

records are subject to review and

inspection by CSA representatives

during security reviews.

* * * * *

7. Section 25.17 is revised to read as

follows:

§ 25.17 Approval for processing applicants

for access authorization.

(a) Access authorizations must be

requested for licensee employees or

other persons (e.g., 10 CFR Part 2,

subpart I) who need access to classified

information in connection with

activities under 10 CFR parts 50, 52, 54,

70, 72, or 76.

(b) The request must be submitted to

the facility CSA. If the NRC is the CSA,

the procedures in § 25.17 (c) and (d) will

be followed. If the NRC is not the CSA,

the request will be submitted to the CSA

in accordance with procedures

established by the CSA. The NRC will

be notified of the request by a letter that

includes the name, Social Security

number and level of access

authorization.

(c) The request must include a

completed personnel security packet

(see § 25.17(d)) and request form (NRC

Form 237) signed by a licensee, licensee

contractor official, or other authorized

person.

(d)(1) Each personnel security packet

submitted must include the following

completed forms:
17688 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations

(i) Questionnaire for National Security

Positions (SF–86, Parts 1 and 2) (Part 2

is to be completed by the applicant and

placed in a sealed envelope which is to

be forwarded to NRC unopened. No

licensee, licensee contractor official, or

other person at a facility is permitted to

review Part 2 information);

(ii) Two standard fingerprint cards

(FD–258);

(iii) Security Acknowledgment (NRC

Form 176); and

(iv) Other related forms where

specified in accompanying instructions

(NRC Form 254).

(2) Only a Security Acknowledgment

(NRC Form 176) need be completed by

any person possessing an active access

authorization, or who is being processed

for an access authorization, by another

Federal agency. The active or pending

access authorization must be at an

equivalent level to that required by the

NRC and be based on an adequate

investigation not more than five years

old.

(e) To avoid delays in processing

requests for access authorizations, each

security packet should be reviewed for

completeness and correctness

(including legibility of response on the

forms) before submittal.

(f) Applications for access

authorization or access authorization

renewal processing that are submitted to

the NRC for processing must be

accompanied by a check or money

order, payable to the United States

Nuclear Regulatory Commission,

representing the current cost for the

processing of each ‘‘Q’’ and ‘‘L’’ access

authorization, or renewal request.

Access authorization and access

authorization renewal fees will be

published each time the Office of

Personnel Management notifies the NRC

of a change in the rates it charges the

NRC for the conduct of investigations.

Any changed access authorization or

access authorization renewal fees will

be applicable to each access

authorization or access authorization

renewal request received upon or after

the date of publication. Applications

from individuals having current Federal

access authorizations may be processed

more expeditiously and at less cost,

since the Commission may accept the

certification of access authorization and

investigative data from other Federal

Government agencies that grant

personnel access authorizations.

8. Section 25.19 is revised to read as

follows:

§ 25.19 Processing applications.

Each application for access

authorization or access authorization

renewal must be submitted to the CSA.

If the NRC is the CSA, the application

and its accompanying fee must be

submitted to the NRC Division of

Security. If necessary, the NRC Division

of Security may obtain approval from

the appropriate Commission office

exercising licensing or regulatory

authority before processing the access

authorization or access authorization

renewal request. If the applicant is

disapproved for processing, the NRC

Division of Security shall notify the

submitter in writing and return the

original application (security packet)

and its accompanying fee.

9. Section 25.21 is revised to read as

follows:

§ 25.21 Determination of initial and

continued eligibility for access

authorization.

(a) Following receipt by the CSA of

the reports of the personnel security

investigations, the record will be

reviewed to determine that granting an

access authorization or renewal of

access authorization will not endanger

the common defense and security and is

clearly consistent with the national

interest. If this determination is made,

access authorization will be granted or

renewed. If the NRC is the CSA,

questions as to initial or continued

eligibility will be determined in

accordance with Part 10 of Chapter I. If

another agency is the CSA, that agency

will, under the requirements of the

NISPOM, have established procedures

at the facility to resolve questions as to

initial or continued eligibility for access

authorization. These questions will be

determined in accordance with

established CSA procedures already in

effect for the facility.

(b) The CSA must be promptly

notified of developments that bear on

continued eligibility for access

authorization throughout the period for

which the authorization is active (e.g.,

persons who marry subsequent to the

completion of a personnel security

packet must report this change by

submitting a completed NRC Form 354,

‘‘Data Report on Spouse’’ or equivalent

CSA form).

(c)(1) Except as provided in paragraph

(c)(2) of this section, NRC ‘‘Q’’ and ‘‘L’’

access authorizations must be renewed

every five years from the date of

issuance. An application for renewal

must be submitted at least 120 days

before the expiration of the five year

period, and must include:

(i) A statement by the licensee or

other person that the individual

continues to require access to classified

National Security Information or

Restricted Data; and

(ii) A personnel security packet as

described in § 25.17(d).

(2) Renewal applications and the

required paperwork are not required for

individuals who have a current and

active access authorization from another

Federal agency and who are subject to

a reinvestigation program by that agency

that is determined by the NRC to meet

the NRC’s requirements. (The DOE

Reinvestigation Program has been

determined to meet the NRC’s

requirements). For these individuals,

the submission of the SF–86 by the

licensee or other person to the other

government agency pursuant to their

reinvestigation requirements will satisfy

the NRC renewal submission and

paperwork requirements, even if less

than five years has passed since the date

of issuance or renewal of the NRC ‘‘Q’’

or ‘‘L’’ access authorization. Any NRC

access authorization continued in

response to the provisions of this

paragraph will, thereafter, not be due for

renewal until the date set by the other

government agency for the next

reinvestigation of the individual

pursuant to the other agency’s

reinvestigation program. However, the

period of time for the initial and each

subsequent NRC ‘‘Q’’ or NRC ‘‘L’’

renewal application to the NRC may not

exceed seven years. Any individual who

is subject to the reinvestigation program

requirements of another Federal agency

but, for administrative or other reasons,

does not submit reinvestigation forms to

that agency within seven years of the

previous submission, shall submit a

renewal application to the NRC using

the forms prescribed in § 25.17(d) before

the expiration of the seven-year period.

(3) If the NRC is not the CSA,

reinvestigation program procedures and

requirements will be set by the CSA.

10. Section 25.23 is revised to read as

follows:

§ 25.23 Notification of grant of access

authorization.

The determination to grant or renew

access authorization will be furnished

in writing to the licensee or organization

that initiated the request. Upon receipt

of the notification of original grant of

access authorization, the licensee or

organization shall obtain, as a condition

for grant of access authorization and

access to classified information, an

executed ‘‘Classified Information

Nondisclosure Agreement’’ (SF–312)

from the affected individual. The SF–

312 is an agreement between the United

States and an individual who is cleared

for access to classified information. An

employee issued an initial access

authorization shall execute a SF–312

before being granted access to classified
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations 17689

information. The licensee or other

organization shall forward the executed

SF–312 to the CSA for retention. If the

employee refuses to execute the SF–312,

the licensee or other organization shall

deny the employee access to classified

information and submit a report to the

CSA. The SF–312 must be signed and

dated by the employee and witnessed.

The employee’s and witness’ signatures

must bear the same date. The individual

shall also be given a security orientation

briefing in accordance with § 95.33 of

this chapter. Records of access

authorization grant and renewal

notification must be maintained by the

licensee or other organization for three

years after the access authorization has

been terminated by the CSA. This

information may also be furnished to

other representatives of the

Commission, to licensees, contractors,

or other Federal agencies. Notifications

of access authorization will not be given

in writing to the affected individual

except:

(a) In those cases in which the

determination was made as a result of

a Personnel Security Hearing or by

Personnel Security Review Examiners;

or

(b) When the individual also is the

official designated by the licensee or

other organization to whom written

NRC notifications are forwarded.

11. Section 25.25 is revised to read as

follows:

§ 25.25 Cancellation of requests for

access authorization.

When a request for an individual’s

access authorization or renewal of

access authorization is withdrawn or

canceled, the requestor shall notify the

CSA immediately by telephone so that

the full field investigation, National

Agency Check with Credit Investigation,

or other personnel security action may

be discontinued. The requestor shall

identify the full name and date of birth

of the individual, the date of request,

and the type of access authorization or

access authorization renewal requested.

The requestor shall confirm each

telephone notification promptly in

writing.

12. Section 25.27 is revised to read as

follows:

§ 25.27 Reopening of cases in which

requests for access authorizations are

canceled.

(a) In conjunction with a new request

for access authorization (NRC Form 237

or CSA equivalent) for individuals

whose cases were previously canceled,

new fingerprint cards (FD–257) in

duplicate and a new Security

Acknowledgment (NRC Form 176), or

CSA equivalents, must be furnished to

the CSA along with the request.

(b) Additionally, if 90 days or more

have elapsed since the date of the last

Questionnaire for Sensitive Positions

(SF–86), or CSA equivalent, the

individual must complete a personnel

security packet (see § 25.17(d)). The

CSA, based on investigative or other

needs, may require a complete

personnel security packet in other cases

as well. A fee, equal to the amount paid

for an initial request, will be charged

only if a new or updating investigation

by the NRC is required.

13. Section 25.29 is revised to read as

follows:

§ 25.29 Reinstatement of access

authorization.

(a) An access authorization can be

reinstated provided that:

(1) No more than 24 months has

lapsed since the date of termination of

the clearance;

(2) There has been no break in

employment with the employer since

the date of termination of the clearance;

(3) There is no known adverse

information;

(4) The most recent investigation must

not exceed 5 years (Top Secret, Q) or 10

years (Secret, L); and

(5) The most recent investigation must

meet or exceed the scope of the

investigation required for the level of

access authorization that is to be

reinstated or granted.

(b) An access authorization can be

reinstated at the same, or lower, level by

submission of a CSA-designated form to

the CSA. The employee may not have

access to classified information until

receipt of written confirmation of

reinstatement and an up-to-date

personnel security packet will be

furnished with the request for

reinstatement of an access

authorization. A new Security

Acknowledgment will be obtained in all

cases. Where personnel security packets

are not required, a request for

reinstatement must state the level of

access authorization to be reinstated and

the full name and date of birth of the

individual to establish positive

identification. A fee, equal to the

amount paid for an initial request, will

be charged only if a new or updating

investigation by the NRC is required.

14. In § 25.31, paragraphs (a) and (c)

are revised to read as follows:

§ 25.31 Extensions and transfers of access

authorizations.

(a) The NRC Division of Security may,

on request, extend the authorization of

an individual who possesses an access

authorization in connection with a

particular employer or activity, to

permit access to classified information

in connection with an assignment with

another employer or activity.

* * * * *

(c) Requests for extension or transfer

of access authorization must state the

full name of the person, his date of birth

and level of access authorization. The

Director, Division of Security, may

require a new personnel security packet

(see § 25.17(c)) to be completed by the

applicant. A fee, equal to the amount

paid for an initial request, will be

charged only if a new or updating

investigation by the NRC is required.

* * * * *

15. Section 25.33 is revised to read as

follows:

§ 25.33 Termination of access

authorizations.

(a) Access authorizations will be

terminated when:

(1) Access authorization is no longer

required;

(2) An individual is separated from

the employment or the activity for

which he obtained an access

authorization for a period of 90 days or

more; or

(3) An individual, pursuant to 10 CFR

part 10 or other CSA approved

adjudicatory standards, is no longer

eligible for access authorization.

(b) A representative of the licensee or

other organization that employs the

individual whose access authorization

will be terminated shall immediately

notify the CSA when the circumstances

noted in paragraph (a)(1) or (a)(2) of this

section exist; inform the individual that

his access authorization is being

terminated, and the reason; and that he

will be considered for reinstatement of

access authorization if he resumes work

requiring it.

(c) When an access authorization is to

be terminated, a representative of the

licensee or other organization shall

conduct a security termination briefing

of the individual involved, explain the

Security Termination Statement (NRC

Form 136 or CSA approved form) and

have the individual complete the form.

The representative shall promptly

forward the original copy of the

completed Security Termination

Statement to CSA.

16. Section 25.35 is revised to read as

follows:

§ 25.35 Classified visits.

(a) The number of classified visits

must be held to a minimum. The

licensee, certificate holder, or other

facility shall determine that the visit is

necessary and that the purpose of the

visit cannot be achieved without access
17690 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations

to, or disclosure of, classified

information. All classified visits require

advance notification to, and approval of,

the organization to be visited. In urgent

cases, visit information may be

furnished by telephone and confirmed

in writing.

(b) Representatives of the Federal

Government, when acting in their

official capacities as inspectors,

investigators, or auditors, may visit a

licensee, certificate holder or other’s

facility without furnishing advanced

notification, provided these

representatives present appropriate

government credentials upon arrival.

Normally, however, Federal

representatives will provide advance

notification in the form of an NRC Form

277, ‘‘Request for Visit or Access

Approval,’’ with the ‘‘need-to-know’’

certified by the appropriate NRC office

exercising licensing or regulatory

authority and verification of NRC access

authorization by the Division of

Security.

(c) The licensee, certificate holder, or

others shall include the following

information in all Visit Authorization

Letters (VAL) which they prepare.

(1) Visitor’s name, address, and

telephone number and certification of

the level of the facility security

clearance;

(2) Name, date and place of birth, and

citizenship of the individual intending

to visit;

(3) Certification of the proposed

visitor’s personnel clearance and any

special access authorizations required

for the visit;

(4) Name of person(s) to be visited;

(5) Purpose and sufficient justification

for the visit to allow for a determination

of the necessity of the visit; and

(6) Date or period during which the

VAL is to be valid.

(d) Classified visits may be arranged

for a 12 month period. The requesting

facility shall notify all places honoring

these visit arrangements of any change

in the individual’s status that will cause

the visit request to be canceled before its

normal termination date.

(e) The responsibility for determining

need-to-know in connection with a

classified visit rests with the individual

who will disclose classified information

during the visit. The licensee, certificate

holder or other facility shall establish

procedures to ensure positive

identification of visitors before the

disclosure of any classified information.

PART 50—DOMESTIC LICENSING OF

PRODUCTION AND UTILIZATION

FACILITIES

17. The authority citation for Part 50

is revised to read as follows:

Authority: Secs. 102, 103, 104, 105, 161,

182, 183, 186, 189, 68 Stat. 936, 937, 938,

948, 953, 954, 955, 956, as amended, sec.

234, 83 Stat. 1244, as amended (42 U.S.C.

2132, 2133, 2134, 2135, 2201, 2232, 2233,

2236, 2239, 2282); secs. 201, as amended,

202, 206, 88 Stat. 1242, as amended, 1244,

1246 (42 U.S.C. 5841, 5842, 5846), E.O.

12829, 3 CFR, 1993 Comp., p. 570; E.O.

12958, as amended, 3 CFR, 1995 Comp., p.

333; E.O. 12968, 3 CFR, 1995 Comp., p. 391.

Section 50.7 also issued under Pub. L. 95–

601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851).

Section 50.10 also issued under secs. 101,

185, 68 Stat. 955 as amended (42 U.S.C. 2131,

2235), sec. 102, Pub. L. 91–190, 83 Stat. 853

(42 U.S.C. 4332). Sections 50.13, 50.54(dd),

and 50.103 also issued under sec. 108, 68

Stat. 939, as amended (42 U.S.C. 2138).

Sections 50.23, 50.35, 50.55, and 50.56 also

issued under sec. 185, 68 Stat. 955 (42 U.S.C.

2235). Sections 50.33a, 50.55a and Appendix

Q also issued under sec. 102, Pub. L. 91–190,

83 Stat. 853 (42 U.S.C. 4332). Sections 50.34

and 50.54 also issued under sec. 204, 88 Stat.

1245 (42 U.S.C. 5844). Sections 50.58, 50.91,

and 50.92 also issued under Pub. L. 97–415,

96 Stat. 2073 (42 U.S.C. 2239). Section 50.78

also issued under sec. 122, 68 Stat. 939 (42

U.S.C. 2152). Sections 50.80—50.81 also

issued under sec. 184, 68 Stat. 954, as

amended (42 U.S.C. 2234). Appendix F also

issued under sec. 187, 68 Stat. 955 (42 U.S.C

2237).

18. Section 50.37 is revised to read as

follows:

§ 50.37 Agreement limiting access to

Classified Information.

As part of its application and in any

event before the receipt of Restricted

Data or classified National Security

Information or the issuance of a license

or construction permit, the applicant

shall agree in writing that it will not

permit any individual to have access to

or any facility to possess Restricted Data

or classified National Security

Information until the individual and/or

facility has been approved for such

access under the provisions of 10 CFR

Parts 25 and/or 95. The agreement of the

applicant in this regard shall be deemed

part of the license or construction

permit, whether so stated therein or not.

PART 54—REQUIREMENTS FOR

RENEWAL OF OPERATING LICENSES

FOR NUCLEAR POWER PLANTS

19. The authority citation for Part 54

is revised to read as follows:

Authority: Secs. 102, 103, 104, 161, 181,

182, 183, 186, 189, 68 Stat. 936, 937, 938,

948, 953, 954, 955, as amended, sec. 234, 83

Stat. 1244, as amended (42 U.S.C. 2132, 2133,

2134, 2135, 2201, 2232, 2233, 2236, 2239,

2282); secs 201, 202, 206, 88 Stat. 1242, 1244,

as amended (42 U.S.C. 5841, 5842), E.O.

12829, 3 CFR, 1993 Comp., p. 570; E.O.

12958, as amended, 3 CFR, 1995 Comp., p.

333; E.O. 12968, 3 CFR, 1995 Comp., p. 391.

20. In § 54.17, paragraph (g) is revised

to read as follows:

§ 54.17 Filing of application.

* * * * *

(g) As part of its application, and in

any event before the receipt of

Restricted Data or classified National

Security Information or the issuance of

a renewed license, the applicant shall

agree in writing that it will not permit

any individual to have access to or any

facility to possess Restricted Data or

classified National Security Information

until the individual and/or facility has

been approved for such access under the

provisions of 10 CFR Parts 25 and/or 95.

The agreement of the applicant in this

regard shall be deemed part of the

renewed license, whether so stated

therein or not.

PART 95—SECURITY FACILITY

APPROVAL AND SAFEGUARDING OF

NATIONAL SECURITY INFORMATION

AND RESTRICTED DATA

21. The authority citation for Part 95

is revised to read as follows:

Authority: Secs. 145, 161, 193, 68 Stat.

942, 948, as amended (42 U.S.C. 2165, 2201);

sec. 201, 88 Stat. 1242, as amended (42

U.S.C. 5841); E.O. 10865, as amended, 3 CFR

1959–1963 COMP., p. 398 (50 U.S.C. 401,

note); E.O. 12829, 3 CFR, 1993 Comp., p. 570;

E.O. 12958, as amended, 3 CFR, 1995 Comp.,

p. 333; E.O. 12968, 3 CFR, 1995 Comp., p.

391.

22. Section 95.1 is revised to read as

follows:

§ 95.1 Purpose.

The regulations in this part establish

procedures for obtaining security

facility approval and for safeguarding

Secret and Confidential National

Security Information and Restricted

Data received or developed in

conjunction with activities licensed,

certified or regulated by the

Commission. This part does not apply to

Top Secret information because Top

Secret information may not be

forwarded to licensees, certificate

holders, or others within the scope of an

NRC license or certificate.

23. Section 95.3 is revised to read as

follows:

§ 95.3 Scope.

The regulations in this part apply to

licensees, certificate holders and others

regulated by the Commission who may

require access to classified National

Security Information and/or Restricted
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations 17691

Data and/or Formerly Restricted Data

(FRD) that is used, processed, stored,

reproduced, transmitted, transported, or

handled in connection with a license or

certificate or an application for a license

or certificate.

24. In § 95.5, the definitions for

Authorized classifier, National Security

Information, NRC access authorization,

Security facility approval, and Security

survey are removed and the definitions

Classified mail address, Infraction, and

Need-to-know are revised and the

definitions Access authorization,

Classified National Security

Information, Classified shipping

address, Closed area, Cognizant

Security Agency, Facility (Security)

clearance, Foreign ownership control or

influence, Restricted area, Security

reviews, Supplemental Protection and

Violation are added in alphabetical

order to read as follows:

§ 95.5 Definitions.

Access authorization means an

administrative determination that an

individual (including a consultant) who

is employed by or an applicant for

employment with the NRC, NRC

contractors, agents, licensees and

certificate holders, or other person

designated by the Executive Director for

Operations, is eligible for a security

clearance for access to classified

information.

* * * * *

Classified mail address means a mail

address established for each facility

approved by the NRC, to which all

classified information for the facility is

to be sent.

* * * * *

Classified National Security

Information means information that has

been determined pursuant to E.O. 12958

or any predecessor order to require

protection against unauthorized

disclosure and that is so designated.

Classified shipping address means an

address established for a facility,

approved by the NRC to which

classified material that cannot be

transmitted as normal mail is to be sent.

Closed area means an area that meets

the requirements of the CSA, for the

purpose of safeguarding classified

material that, because of its size, nature,

or operational necessity, cannot be

adequately protected by the normal

safeguards or stored during nonworking

hours in approved containers.

Cognizant Security Agency (CSA)

means agencies of the Executive Branch

that have been authorized by E.O. 12829

to establish an industrial security

program for the purpose of safeguarding

classified information under the

jurisdiction of those agencies when

disclosed or released to U.S. industry.

These agencies are the Department of

Defense, the Department of Energy, the

Central Intelligence Agency, and the

Nuclear Regulatory Commission. A

facility has a single CSA which

exercises primary authority for the

protection of classified information at

the facility. The CSA for the facility

provides security representation for

other government agencies with security

interests at the facility. The Secretary of

Defense has been designated as

Executive Agent for the National

Industrial Security Program.

* * * * *

Facility (Security) Clearance (FCL)

means an administrative determination

that, from a security viewpoint, a

facility is eligible for access to classified

information of a certain category (and

all lower categories).

Foreign ownership, control, or

influence (FOCI) means a foreign

interest has the power, direct or

indirect, whether or not exercised, and

whether or not exercisable through the

ownership of a U.S. company’s

securities, by contractual arrangements

or other means, to direct or decide

matters affecting the management or

operations of that company in a manner

which may result in unauthorized

access to classified information or may

affect adversely the performance of

classified contracts.

Infraction means any knowing,

willful, or negligent action contrary to

the requirements of E.O. 12958, or its

implementing directives, that does not

comprise a ‘‘violation,’’ as defined in

this section.

* * * * *

Need-to-know means a determination

made by an authorized holder of

classified information that a prospective

recipient requires access to specific

classified information in order to

perform or assist in a lawful and

authorized governmental function under

the cognizance of the Commission.

* * * * *

Restricted area means a controlled

access area established to safeguard

classified material, that because of its

size or nature, cannot be adequately

protected during working hours by the

usual safeguards, but that is capable of

being stored during non-working hours

in an approved repository or secured by

other methods approved by the CSA.

* * * * *

Security reviews means aperiodic

security reviews of cleared facilities

conducted to ensure that safeguards

employed by licensees and others are

adequate for the protection of classified

information.

Supplemental protection means

additional security procedures such as

intrusion detection systems, security

guards, and access control systems.

Violation means any knowing, willful,

or negligent action that could

reasonably be expected to result in an

unauthorized disclosure of classified

information or any knowing, willful, or

negligent action to classify or continue

the classification of information

contrary to the requirements of E.O.

12958 or its implementing directives.

25. Section 95.8 is revised to read as

follows:

§ 95.8 Information collection

requirements: OMB approval.

(a) The Nuclear Regulatory

Commission has submitted the

information collection requirements

contained in this part to the Office of

Management and Budget (OMB) for

approval as required by the Paperwork

Reduction Act (44 U.S.C. 3501 et seq.).

The NRC may not conduct or sponsor

and a person is not required to respond

to a collection of information unless it

displays a currently valid OMB control

number. OMB has approved the

information collection requirements

contained in this part under control

number 3150–0047.

(b) The approved information

collection requirements contained in

this part appear in §§ 95.11, 95.15,

95.18, 95.19, 95.21, 95.25, 95.29, 95.33,

95.36, 95.37, 95.39, 95.41, 95.43, 95.45,

95.47, 95.53 and 95.57.

26. In § 95.13, paragraph (a) is revised

to read as follows:

§ 95.13 Maintenance of records.

(a) Each licensee, certificate holder or

other person granted facility clearance

under this part shall maintain records as

prescribed within the part. These

records are subject to review and

inspection by CSA representatives

during security reviews.

* * * * *

27. In § 95.15, the section heading and

paragraphs (a) and (b) are revised to

read as follows:

§ 95.15 Approval for processing licensees

and others for facility clearance.

(a) A licensee, certificate holder or

other person who has a need to use,

process, store, reproduce, transmit,

transport, or handle NRC classified

information at any location in

connection with Commission related

activities shall promptly request an NRC

facility clearance. This specifically

includes situations where a licensee,

certificate holder or other person needs
17692 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations

a contractor or consultant to have access

to NRC classified information. However,

it is not necessary for a licensee,

certificate holder or other person to

request an NRC facility clearance for

access to another agency’s classified

information at that agency’s facilities or

to store that agency’s classified

information at their facility, provided no

NRC classified information is involved

and they meet the security requirements

of the other agency. If NRC classified

information is involved the

requirements of § 95.17 apply.

(b) The request must include the

name of the facility, the location of the

facility and an identification of any

facility clearance issued by another

government agency. If there is no

existing facility clearance, the request

must include a security Standard

Practice Procedures Plan that outlines

the facility’s proposed security

procedures and controls for the

protection of classified information, a

floor plan of the area in which the

matter is to be used, processed, stored,

reproduced, transmitted, transported or

handled; and Foreign Ownership,

Control or Influence information.

* * * * *

28. Section 95.17 is revised to read as

follows:

§ 95.17 Processing facility clearance.

(a) Following the receipt of an

acceptable request for facility clearance,

the NRC will either accept an existing

facility clearance granted by a current

CSA and authorize possession of license

or certificate related classified

information or process the facility for a

facility clearance. Processing will

include—

(1) A determination based on review

and approval of a Standard Practice

Procedure Plan that granting of the

Facility Clearance would not be

inconsistent with the national interest,

including a finding that the facility is

not under foreign ownership, control, or

influence to such a degree that a

determination could not be made;

(2) An acceptable security review

conducted by the NRC;

(3) Submitting key management

personnel for personnel clearances

(PCLs); and

(4) Appointing a U.S. citizen

employee as the facility security officer.

(b) An interim Facility Clearance may

be granted by the CSA on a temporary

basis pending completion of the full

investigative requirements.

§§ 95.18 and 95.19 [Redesignated]

29. §§ 95.18 and 95.19 are

redesignated as §§ 95.19 and 95.20.

30. A new § 95.18 is added to read as

follows:

§ 95.18 Key personnel.

The senior management official and

the Facility Security Officer must

always be cleared to a level

commensurate with the Facility

Clearance. Other key management

officials, as determined by the CSA,

must be granted an access authorization

or be excluded from classified access.

When formal exclusion action is

required, the organization’s board of

directors or similar executive body shall

affirm the following, as appropriate.

(a) Officers, directors, partners,

regents, or trustees (designated by name)

that are excluded may not require, may

not have, and can be effectively

excluded from access to all classified

information disclosed to the

organization. These individuals also

may not occupy positions that would

enable them to adversely affect the

organization’s policies or practices in

the performance of activities involving

classified information. This action will

be made a matter of record by the

organization’s executive body. A copy of

the resolution must be furnished to the

CSA.

(b) Officers, directors, partners,

regents, or trustees (designated by name)

that are excluded may not require, may

not have, and can be effectively denied

access to higher-level classified

information (specify which higher

level(s)). These individuals may not

occupy positions that would enable

them to adversely affect the

organization’s policies or practices in

the protection of classified information.

This action will be made a matter of

record by the organization’s executive

body. A copy of the resolution must be

furnished to the CSA.

31. In the newly redesignated § 95.19,

the introductory text of paragraphs (a)

and (b) are revised to read as follows:

§ 95.19 Changes to security practices and

procedures.

(a) Except as specified in paragraph

(b) of this section, each licensee,

certificate holder or other person shall

obtain prior CSA approval for any

proposed change to the name, location,

security procedures and controls, or

floor plan of the approved facility. A

written description of the proposed

change must be furnished to the CSA

with copies to the Director, Division of

Security, Office of Administration, NRC,

Washington, DC 20555–0001 (if NRC is

not the CSA), and the NRC Regional

Administrator of the cognizant Regional

Office listed in appendix A of part 73.

The CSA shall promptly respond in

writing to all such proposals. Some

examples of substantive changes

requiring prior CSA approval include—

* * * * *

(b) A licensee or other person may

effect a minor, non-substantive change

to an approved Standard Practice

Procedures Plan for the safeguarding of

classified information without receiving

prior CSA approval, provided prompt

notification of such minor change is

furnished to the addressees noted in

paragraph (a) of this section, and the

change does not decrease the

effectiveness of the Standard Practice

Procedures Plan. Some examples of

minor, non-substantive changes to the

Standard Practice Procedures Plan

include—

* * * * *

32. The newly redesignated § 95.20 is

revised to read as follows:

§ 95.20 Grant, denial or termination of

facility clearance.

The Division of Security shall provide

notification in writing (or orally with

written confirmation) to the licensee or

other organization of the Commission’s

grant, acceptance of another agency’s

Facility Clearance, denial, or

termination of facility clearance. This

information must also be furnished to

representatives of the NRC, NRC

licensees, NRC certificate holders, NRC

contractors, or other Federal agencies

having a need to transmit classified

information to the licensee or other

person.

33. Section 95.21 is revised to read as

follows:

§ 95.21 Withdrawal of requests for facility

clearance.

When a request for facility clearance

is to be withdrawn or canceled, the

requester shall notify the NRC Division

of Security immediately by telephone so

that processing for this approval may be

terminated. The notification must

identify the full name of the individual

requesting discontinuance, his position

with the facility, and the full

identification of the facility. The

requestor shall confirm the telephone

notification promptly in writing.

34. Section 95.23 is revised to read as

follows:

§ 95.23 Termination of facility clearance.

(a) Facility clearance will be

terminated when—

(1) There is no longer a need to use,

process, store, reproduce, transmit,

transport or handle classified matter at

the facility; or

(2) The Commission makes a

determination that continued facility
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations 17693

clearance is not in the interest of

national security.

(b) When facility clearance is

terminated, the licensee or other person

will be notified in writing of the

determination and the procedures

outlined in § 95.53 apply.

35. In § 95.25, the section heading and

paragraphs (a), (b), (c), (d), (g), (h), and

(i) are revised and paragraph (j) is added

to read as follows:

§ 95.25 Protection of classified information

in storage.

(a) Secret documents, while

unattended or not in actual use, must be

stored in—

(1) A safe, steel file cabinet, or safetype steel file container that has an

automatic unit locking mechanism. All

such receptacles will be accorded

supplemental protection during nonworking hours; or

(2) Any steel file cabinet that has four

sides and a top and bottom (all

permanently attached by welding, rivets

or peened bolts so the contents cannot

be removed without leaving visible

evidence of entry) and is secured by a

rigid metal lock bar and an approved

key operated or combination padlock.

The keepers of the rigid metal lock bar

must be secured to the cabinet by

welding, rivets, or bolts, so they cannot

be removed and replaced without

leaving evidence of the entry. The

drawers of the container must be held

securely, so their contents cannot be

removed without forcing open the

drawer. This type cabinet will be

accorded supplemental protection

during non-working hours.

(b) Confidential matter while

unattended or not in use must be stored

in the same manner as SECRET matter

except that no supplemental protection

is required.

(c) Classified lock combinations.

(1) A minimum number of authorized

persons may know the combinations to

authorized storage containers. Security

containers, vaults, cabinets, and other

authorized storage containers must be

kept locked when not under the direct

supervision of an authorized person

entrusted with the contents.

(2) Combinations must be changed by

a person authorized access to the

contents of the container, or by the

Facility Security Officer or his or her

designee. Combinations must be

changed upon—

(i) The initial use of an approved

container or lock for the protection of

classified material;

(ii) The termination of employment of

any person having knowledge of the

combination, or when the clearance

granted to any such person has been

withdrawn, suspended, or revoked;

(iii) The compromise or suspected

compromise of a container or its

combination, or discovery of a container

left unlocked and unattended; or

(iv) At other times when considered

necessary by the Facility Security

Officer or CSA.

(d) Records of combinations. If a

record is made of a combination, the

record must be marked with the highest

classification of material authorized for

storage in the container. Superseded

combinations must be destroyed.

* * * * *

(g) Posted information. Containers

may not bear external markings

indicating the level of classified

material authorized for storage. A record

of the names of persons having

knowledge of the combination must be

posted inside the container.

(h) End of day security checks.

(1) Facilities that store classified

material shall establish a system of

security checks at the close of each

working day to ensure that all classified

material and security repositories have

been appropriately secured.

(2) Facilities operating with multiple

work shifts shall perform the security

checks at the end of the last working

shift in which classified material had

been removed from storage for use. The

checks are not required during

continuous 24-hour operations.

(i) Unattended security container

found opened. If an unattended security

container housing classified matter is

found unlocked, the custodian or an

alternate must be notified immediately.

The container must be secured by

protective personnel and the contents

inventoried as soon as possible but not

later than the next workday. A report

reflecting all actions taken must be

submitted to the responsible Regional

Office (see appendix A, 10 CFR part 73

for addresses) with an information copy

to the NRC Division of Security. The

licensee shall retain records pertaining

to these matters for three years after

completion of final corrective action.

(j) Supervision of keys and padlocks.

Use of key-operated padlocks are subject

to the following requirements:

(1) A key and lock custodian shall be

appointed to ensure proper custody and

handling of keys and locks used for

protection of classified material;

(2) A key and lock control register

must be maintained to identify keys for

each lock and their current location and

custody;

(3) Keys and locks must be audited

each month;

(4) Keys must be inventoried with

each change of custody;

(5) Keys must not be removed from

the premises;

(6) Keys and spare locks must be

protected equivalent to the level of

classified material involved;

(7) Locks must be changed or rotated

at least annually, and must be replaced

after loss or compromise of their

operable keys; and

(8) Master keys may not be made.

36. Section 95.27 is revised to read as

follows:

§ 95.27 Protection while in use.

While in use, matter containing

classified information must be under the

direct control of an authorized

individual to preclude physical, audio,

and visual access by persons who do not

have the prescribed access authorization

or other written CSA disclosure

authorization (see § 95.36 for additional

information concerning disclosure

authorizations).

37. Section 95.29 is revised to read as

follows:

§ 95.29 Establishment of Restricted or

Closed areas.

(a) If, because of its nature, sensitivity

or importance, matter containing

classified information cannot otherwise

be effectively controlled in accordance

with the provisions of §§ 95.25 and

95.27, a Restricted or Closed Area must

be established to protect such matter.

(b) The following measures apply to

Restricted Areas:

(1) Restricted areas must be separated

from adjacent areas by a physical barrier

designed to prevent unauthorized access

(physical, audio, and visual) into these

areas.

(2) Controls must be established to

prevent unauthorized access to and

removal of classified matter.

(3) Access to classified matter must be

limited to persons who possess

appropriate access authorization or

other written CSA disclosure

authorization and who require access in

the performance of their official duties

or regulatory obligations.

(4) Persons without appropriate

access authorization for the area visited

must be escorted by an appropriate CSA

access authorized person at all times

while within Restricted or Closed Areas.

(5) Each individual authorized to

enter a Restricted or Closed Area must

be issued a distinctive form of

identification (e.g., badge) when the

number of employees assigned to the

area exceeds thirty per shift.

(6) During nonworking hours,

admittance must be controlled by

protective personnel. Protective

personnel shall conduct patrols during

nonworking hours at least every 8 hours
17694 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations

and more frequently if necessary to

maintain a commensurate level of

protection. Entrances must be

continuously monitored by protective

personnel or by an approved alarm

system.

(c) Due to the size and nature of the

classified material, or operational

necessity, it may be necessary to

construct Closed Areas for storage

because GSA-approved containers or

vaults are unsuitable or impractical.

Closed Areas must be approved by the

CSA. The following measures apply to

Closed Areas:

(1) Access to Closed Areas must be

controlled to preclude unauthorized

access. This may be accomplished

through the use of a cleared employee

or by a CSA approved access control

device or system.

(2) Access must be limited to

authorized persons who have an

appropriate security clearance and a

need-to-know for the classified material/

information within the area. Persons

without the appropriate level of

clearance and/or need-to-know must be

escorted at all times by an authorized

person where inadvertent or

unauthorized exposure to classified

information cannot otherwise be

effectively prevented.

(3) The Closed Area must be accorded

supplemental protection during nonworking hours. During these hours,

admittance to the area must be

controlled by locked entrances and exits

secured by either an approved built-in

combination lock or an approved

combination or key-operated padlock.

However, doors secured from the inside

with a panic bolt (for example, actuated

by a panic bar), a dead bolt, a rigid

wood or metal bar, or other means

approved by the CSA, do not require

additional locking devices.

(4) Open shelf or bin storage of

classified documents in Closed Areas

requires CSA approval. Only areas

protected by an approved intrusion

detection system will qualify for

approval.

38. Section 95.31 is revised to read as

follows:

§ 95.31 Protective personnel.

Whenever protective personnel are

used to protect classified information

they shall:

(a) Possess an ‘‘L’’ access

authorization (or CSA equivalent) if the

licensee or other person possesses

information classified Confidential

National Security Information,

Confidential Restricted Data or Secret

National Security Information.

(b) Possess a ‘‘Q’’ access authorization

(or CSA equivalent) if the licensee or

other person possesses Secret Restricted

Data related to nuclear weapons design,

manufacturing and vulnerability

information; and certain particularly

sensitive Naval Nuclear Propulsion

Program information (e.g., fuel

manufacturing technology) and the

protective personnel require access as

part of their regular duties.

39. Section 95.33 is revised to read as

follows:

§ 95.33 Security education.

All cleared employees must be

provided with security training and

briefings commensurate with their

involvement with classified

information. The facility may obtain

defensive security, threat awareness,

and other education and training

information and material from their

CSA or other sources.

(a) Facility Security Officer Training.

Licensees and others are responsible for

ensuring that the Facility Security

Officer, and others performing security

duties, complete security training

deemed appropriate by the CSA.

Training requirements must be based on

the facility’s involvement with

classified information and may include

a Facility Security Officer orientation

course and, for Facility Security Officers

at facilities with safeguarding capability,

a Facility Security Officer Program

Management Course. Training, if

required, should be completed within 1

year of appointment to the position of

Facility Security Officer.

(b) Government-Provided Briefings.

The CSA is responsible for providing

initial security briefings to the Facility

Security Officer, and for ensuring that

other briefings required for special

categories of information are provided.

(c) Temporary Help Suppliers. A

temporary help supplier, or other

contractor who employs cleared

individuals solely for dispatch

elsewhere, is responsible for ensuring

that required briefings are provided to

their cleared personnel. The temporary

help supplier or the using licensee or

other facility may conduct these

briefings.

(d) Classified Information

Nondisclosure Agreement (SF–312). The

SF–312 is an agreement between the

United States and an individual who is

cleared for access to classified

information. An employee issued an

initial access authorization must, in

accordance with the requirements of

§ 25.23 of this chapter, execute an SF–

312 before being granted access to

classified information. The Facility

Security Officer shall forward the

executed SF–312 to the CSA for

retention. If the employee refuses to

execute the SF–312, the licensee or

other facility shall deny the employee

access to classified information and

submit a report to the CSA. The SF–312

must be signed and dated by the

employee and witnessed. The

employee’s and witness’ signatures

must bear the same date.

(e) Initial Security Briefings. Before

being granted access to classified

information, an employee shall receive

an initial security briefing that includes

the following topics:

(1) A Threat Awareness Briefing.

(2) A Defensive Security Briefing.

(3) An overview of the security

classification system.

(4) Employee reporting obligations

and requirements.

(5) Security procedures and duties

applicable to the employee’s job.

(f) Refresher Briefings. The licensee or

other facility shall conduct periodic

refresher briefings for all cleared

employees. As a minimum, the refresher

briefing must reinforce the information

provided during the initial briefing and

inform employees of appropriate

changes in security regulations. This

requirement may be satisfied by use of

audio/video materials and by issuing

written materials on a regular basis.

(g) Debriefings. Licensee and other

facilities shall debrief cleared

employees at the time of termination of

employment (discharge, resignation, or

retirement); when an employee’s access

authorization is terminated, suspended,

or revoked; and upon termination of the

Facility Clearance.

(h) Records reflecting an individual’s

initial and refresher security

orientations and security termination

must be maintained for three years after

termination of the individual’s access

authorization.

40. Section 95.36 is revised to read as

follows:

§ 95.36 Access by representatives of the

International Atomic Energy Agency or by

participants in other international

agreements.

(a) Based upon written disclosure

authorization from the NRC Division of

Security that an individual is an

authorized representative of the

International Atomic Energy Agency

(IAEA) or other international

organization and that the individual is

authorized to make visits or inspections

in accordance with an established

agreement with the United States

Government, a licensee, certificate

holder or other person subject to this

part shall permit the individual (upon

presentation of the credentials specified

in § 75.7 of this chapter and any other

credentials identified in the disclosure
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations 17695

authorization) to have access to matter

which is classified National Security

Information that is relevant to the

conduct of a visit or inspection. A

disclosure authorization under this

section does not authorize a licensee,

certificate holder, or other person

subject to this part to provide access to

Restricted Data.

(b) For purposes of this section,

classified National Security Information

is relevant to the conduct of a visit or

inspection if—

(1) In the case of a visit, this

information is needed to verify

information according to § 75.13 of this

chapter; or

(2) In the case of an inspection, an

inspector is entitled to have access to

the information under § 75.42 of this

chapter.

(c) In accordance with the specific

disclosure authorization provided by

the Division of Security, licensees or

other persons subject to this part are

authorized to release (i.e., transfer

possession of) copies of documents

which contain classified National

Security Information directly to IAEA

inspectors and other representatives

officially designated to request and

receive classified National Security

Information documents. These

documents must be marked specifically

for release to IAEA or other

international organizations in

accordance with instructions contained

in the NRC’s disclosure authorization

letter. Licensees and other persons

subject to this part may also forward

these documents through the NRC to the

international organization’s

headquarters in accordance with the

NRC disclosure authorization. Licensees

and other persons may not reproduce

documents containing classified

National Security Information except as

provided in § 95.43.

(d) Records regarding these visits and

inspections must be maintained for five

years beyond the date of the visit or

inspection. These records must

specifically identify each document

which has been released to an

authorized representative and indicate

the date of the release. These records

must also identify (in such detail as the

Division of Security, by letter, may

require) the categories of documents

that the authorized representative has

had access and the date of this access.

A licensee or other person subject to

this part shall also retain Division of

Security disclosure authorizations for

five years beyond the date of any visit

or inspection when access to classified

information was permitted.

(e) Licensees or other persons subject

to this part shall take such measures as

may be necessary to preclude access to

classified matter by participants of other

international agreements unless

specifically provided for under the

terms of a specific agreement.

41. Section 95.37 is revised to read as

follows:

§ 95.37 Classification and preparation of

documents.

(a) Classification. Classified

information generated or possessed by a

licensee or other person must be

appropriately marked. Classified

material which is not conducive to

markings (e.g., equipment) may be

exempt from this requirement. These

exemptions are subject to the approval

of the CSA on a case-by-case basis. If a

person or facility generates or possesses

information that is believed to be

classified based on guidance provided

by the NRC or by derivation from

classified documents, but which no

authorized classifier has determined to

be classified, the information must be

protected and marked with the

appropriate classification markings

pending review and signature of an NRC

authorized classifier. This information

shall be protected as classified

information pending final

determination.

(b) Classification consistent with

content. Each document containing

classified information shall be classified

Secret or Confidential according to its

content. NRC licensees or others subject

to the requirements of 10 CFR Part 95

may not make original classification

decisions.

(c) Markings required on face of

documents.

(1) For derivative classification of

classified National Security Information:

(i) Derivative classifications of

classified National Security Information

must contain the identity of the source

document or the classification guide,

including the agency and office of

origin, on the ‘‘Derived From’’ line and

its classification date. If more than one

source is cited, the ‘‘Derived From’’ line

should indicate ‘‘Multiple Sources.’’

(ii) Declassification instructions.

When marking derivatively classified

documents, the ‘‘DECLASSIFY ON’’ line

must carry forward the declassification

instructions as reflected in the original

document. If multiple sources are used,

the instructions will carry forward the

longest duration.

(iii) If the source document used for

derivative classification contains the

declassification instruction,

‘‘Originating Agency’s Determination

Required’’ (OADR), the new document

should reflect the date of the original

classification of the information as

contained in the source document or

classification guide. An example of the

stamp might be as follows:

Derived From llllllllllllll

(Source)

Reason lllllllllllllllll

Declassify On: Source Marked ‘‘OADR’’

Date of Source: lllllllllllll

Classifier: llllllllllllllll

(Name/Title/Number)

(iv) The derivative classifier shall

maintain the identification of each

source with the file or record copy of

the derivatively classified document.

(2) For Restricted Data documents:

(i) Identity of the classifier. The

identity of the classifier must be shown

by completion of the ‘‘Derivative

Classifier’’ line. The ‘‘Derivative

Classifier’’ line must show the name of

the person classifying the document and

the basis for the classification. Dates for

downgrading or declassification do not

apply.

(ii) Classification designation (e.g.,

Secret, Confidential) and Restricted

Data. NOTE: No ‘‘Declassification’’

instructions will be placed on

documents containing Restricted Data.

(d) Placement of markings. The

highest classification marking assigned

to a document must be placed in a

conspicuous fashion in letters at the top

and bottom of the outside of the front

covers and title pages, if any, and first

and last pages on which text appears, on

both bound and unbound documents,

and on the outside of back covers of

bound documents. The balance of the

pages must be marked at the top and

bottom with:

(1) The overall classification marking

assigned to the document;

(2) The highest classification marking

required by content of the page; or

(3) The marking UNCLASSIFIED if

they have no classified content.

(e) Additional markings.

(1) If the document contains any form

of Restricted Data, it must bear the

appropriate marking on the first page of

text, on the front cover and title page,

if any. For example: ‘‘This document

contains Restricted Data as defined in

the Atomic Energy Act of 1954.

Unauthorized disclosure subject to

Administrative and Criminal

Sanctions.’’

(2) Limitation on reproduction or

dissemination. If the originator or

classifier determines that reproduction

or further dissemination of a document

should be restricted, the following

additional wording may be placed on

the face of the document:

Reproduction or Further Dissemination

Requires Approval of

lllllllllllllllllllll
17696 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations

If any portion of this additional marking does

not apply, it should be crossed out.

(f) Portion markings. In addition to

the information required on the face of

the document, each classified document

is required, by marking or other means,

to indicate clearly which portions are

classified (e.g., paragraphs or pages) and

which portions are not classified. The

symbols (S) for Secret, (C) for

Confidential, (U) for Unclassified, or

(RD) for Restricted Data may be used

immediately preceding or following the

text to which it applies, except that the

designation must follow titles or

subjects. (Portion marking of paragraphs

is not required for documents

containing Restricted Data.) If this type

of portion marking is not practicable,

the document must contain a

description sufficient to identify the

classified information and the

unclassified information.

Example

Pages 1–3 Secret

Pages 4–19 Unclassified

Pages 20–26 Secret

Pages 27–32 Confidential

(g) Transmittal document. If a

document transmitting classified

information contains no classified

information or the classification level of

the transmittal document is not as high

as the highest classification level of its

enclosures, then the document must be

marked at the top and bottom with a

classification at least as high as its

highest classified enclosure. The

classification may be higher if the

enclosures, when combined, warrant a

higher classification than any individual

enclosure. When the contents of the

transmittal document warrants a lower

classification than the highest classified

enclosure(s) or combination of

enclosures or requires no classification,

a stamp or marking such as the

following must also be used on the

transmittal document:

UPON REMOVAL OF ATTACHMENTS

THIS DOCUMENT IS:

(Classification level of transmittal document

standing alone or the word

‘‘UNCLASSIFIED’’ if the transmittal

document contains no classified

information.)

(h) Classification challenges. Persons

in authorized possession of classified

National Security Information who in

good faith believe that the information’s

classification status (i.e. that the

document), is classified at either too

high a level for its content

(overclassification) or too low for its

content (underclassification) are

expected to challenge its classification

status. Persons who wish to challenge a

classification status shall—

(1) Refer the document or information

to the originator or to an authorized

NRC classifier for review. The

authorized classifier shall review the

document and render a written

classification decision to the holder of

the information.

(2) In the event of a question

regarding classification review, the

holder of the information or the

authorized classifier shall consult the

NRC Division of Security, Information

Security Branch, for assistance.

(3) Persons who challenge

classification decisions have the right to

appeal the classification decision to the

Interagency Security Classification

Appeals Panel.

(4) Persons seeking to challenge the

classification of information will not be

the subject of retribution.

(i) Files, folders or group of

documents. Files, folders, binders, or

groups of physically connected

documents must be marked at least as

high as the highest classified document

which they contain.

(j) Drafts and working papers. Drafts

of documents and working papers

which contain, or which are believed to

contain, classified information must be

marked as classified information.

(k) Classification guidance. Licensees,

certificate holders, or other persons

subject to this part shall classify and

mark classified matter as National

Security Information or Restricted Data,

as appropriate, in accordance with

classification guidance provided by the

NRC as part of the facility clearance

process.

42. Section 95.39 is revised to read as

follows:

§ 95.39 External transmission of

documents and material.

(a) Restrictions. Documents and

material containing classified

information received or originated in

connection with an NRC license or

certificate must be transmitted only to

CSA approved security facilities.

(b) Preparation of documents.

Documents containing classified

information must be prepared in

accordance with the following when

transmitted outside an individual

installation.

(1) The documents must be enclosed

in two sealed opaque envelopes or

wrappers.

(2) The inner envelope or wrapper

must contain the addressee’s classified

mail address and the name of the

intended recipient. The appropriate

classification must be placed on both

sides of the envelope (top and bottom)

and the additional markings, as

appropriate, referred to in § 95.37(e)

must be placed on the side bearing the

address.

(3) The outer envelope or wrapper

must contain the addressee’s classified

mail address. The outer envelope or

wrapper may not contain any

classification, additional marking or

other notation that indicates that the

enclosed document contains classified

information.

(4) A receipt that contains an

unclassified description of the

document, the document number, if

any, date of the document,

classification, the date of transfer, the

recipient and the person transferring the

document must be enclosed within the

inner envelope containing the document

and be signed by the recipient and

returned to the sender whenever the

custody of a Secret document is

transferred. This receipt process is at the

option of the sender for Confidential

information.

(c) Methods of transportation.

(1) Secret matter may be transported

only by one of the following methods

within and directly between the U.S.,

Puerto Rico, or a U.S. possession or trust

territory:

(i) U.S. Postal Service Express Mail

and U.S. Postal Service Registered Mail.

Note: The ‘‘Waiver of Signature and

Indemnity’’ block on the U.S. Postal Service

Express Mail Label 11–B may not be

executed and the use of external (street side)

express mail collection boxes is prohibited.

(ii) A cleared ‘‘Commercial Carrier.’’

(iii) A cleared commercial messenger

service engaged in the intracity/local

area delivery (same day delivery only)

of classified material.

(iv) A commercial delivery company,

approved by the CSA, that provides

nationwide, overnight service with

computer tracing and reporting features.

These companies need not be security

cleared.

(v) Other methods as directed, in

writing, by the CSA.

(2) Confidential matter may be

transported by one of the methods set

forth in paragraph (c)(1) of this section,

by U.S. first class, express or certified

mail. First class, express, or certified

mail may be used in transmission of

Confidential documents to Puerto Rico

or any United States territory or

possession.

(d) Telecommunication of classified

information. Classified information may

not be telecommunicated unless the

telecommunication system has been

approved by the CSA. Licensees,

certificate holders or other persons who

may require a secure telecommunication

system shall submit a

telecommunication plan as part of their
Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations 17697

request for facility clearance, as outlined

in § 95.15, or as an amendment to their

existing Standard Practice Procedures

Plan for the protection of classified

information.

(e) Security of classified information

in transit. Classified matter that, because

of its nature, cannot be transported in

accordance with § 95.39(c), may only be

transported in accordance with

procedures approved by the CSA.

Procedures for transporting classified

matter are based on a satisfactory

transportation plan submitted as part of

the licensee’s, certificate holder, or

other person’s request for facility

clearance or submitted as an

amendment to its existing Standard

Practice Procedures Plan.

43. Section 95.41 is revised to read as

follows:

§ 95.41 External receipt and dispatch

records.

Each licensee, certificate holder or

other person possessing classified

information shall maintain a record that

reflects:

(a) The date of the material;

(b) The date of receipt or dispatch;

(c) The classification;

(d) An unclassified description of the

material; and

(e) The identity of the sender from

which the material was received or

recipient to which the material was

dispatched. Receipt and dispatch

records must be retained for 2 years.

44. Section 95.43 is revised to read as

follows:

§ 95.43 Authority to reproduce.

(a) Each licensee or other person

possessing classified information shall

establish a reproduction control system

to ensure that reproduction of classified

material is held to the minimum

consistent with operational

requirements. Classified reproduction

must be accomplished by authorized

employees knowledgeable of the

procedures for classified reproduction.

The use of technology that prevents,

discourages, or detects the unauthorized

reproduction of classified documents is

encouraged.

(b) Unless restricted by the CSA,

Secret and Confidential documents may

be reproduced. Reproduced copies of

classified documents are subject to the

same protection as the original

documents.

(c) All reproductions of classified

material must be conspicuously marked

with the same classification markings as

the material being reproduced. Copies of

classified material must be reviewed

after the reproduction process to ensure

that these markings are visible.

45. Section 95.45 is revised to read as

follows:

§ 95.45 Changes in classification.

(a) Documents containing classified

National Security Information must be

downgraded or declassified as

authorized by the NRC classification

guides or as determined by the NRC.

Requests for downgrading or

declassifying any NRC classified

information should be forwarded to the

NRC Division of Security, Office of

Administration, Washington, DC 20555–

0001. Requests for downgrading or

declassifying of Restricted Data will be

forwarded to the NRC Division of

Security for coordination with the

Department of Energy.

(b) If a change of classification or

declassification is approved, the

previous classification marking must be

canceled and the following statement,

properly completed, must be placed on

the first page of the document:

Classification canceled (or changed to)

lllllllllllllllllllll

(Insert appropriate classification)

By authority of

lllllllllllllllllllll

(Person authorizing change in classification)

By

lllllllllllllllllllll

(Signature of person making change and date

thereof)

(c) New markings reflecting the

current classification status of the

document will be applied in accordance

with the requirements of § 95.37.

(d) Any persons making a change in

classification or receiving notice of such

a change shall forward notice of the

change in classification to holders of all

copies as shown on their records.

46. Section 95.47 is revised to read as

follows:

§ 95.47 Destruction of matter containing

classified information.

Documents containing classified

information may be destroyed by

burning, pulping, or another method

that ensures complete destruction of the

information that they contain. The

method of destruction must preclude

recognition or reconstruction of the

classified information. Any doubts on

methods should be referred to the CSA.

If the document contains Secret

information, a record of the subject or

title, document number, if any,

originator, its date of origination and the

date of destruction must be signed by

the person destroying the document and

must be maintained in the office of the

custodian at the time of destruction.

These destruction records must be

retained for two years after destruction.

47. Section 95.49 is revised to read as

follows:

§ 95.49 Security of automatic data

processing (ADP) systems.

Classified data or information may not

be processed or produced on an ADP

system unless the system and

procedures to protect the classified data

or information have been approved by

the CSA. Approval of the ADP system

and procedures is based on a

satisfactory ADP security proposal

submitted as part of the licensee’s or

other person’s request for facility

clearance outlined in § 95.15 or

submitted as an amendment to its

existing Standard Practice Procedures

Plan for the protection of classified

information.

48. Section 95.51 is revised to read as

follows:

§ 95.51 Retrieval of classified matter

following suspension or revocation of

access authorization.

In any case where the access

authorization of an individual is

suspended or revoked in accordance

with the procedures set forth in part 25

of this chapter, or other relevant CSA

procedures, the licensee, certificate

holder or other organization shall, upon

due notice from the Commission of such

suspension or revocation, retrieve all

classified information possessed by the

individual and take the action necessary

to preclude that individual having

further access to the information.

49. Section 95.53 is revised to read as

follows:

§ 95.53 Termination of facility clearance.

(a) If the need to use, process, store,

reproduce, transmit, transport, or

handle classified matter no longer

exists, the facility clearance will be

terminated. The facility may deliver all

documents and materials containing

classified information to the

Commission or to a person authorized to

receive them or destroy all such

documents and materials. In either case,

the facility shall submit a certification of

nonpossession of classified information

to the NRC Division of Security.

(b) In any instance where facility

clearance has been terminated based on

a determination of the CSA that further

possession of classified matter by the

facility would not be in the interest of

the national security, the facility shall,

upon notice from the CSA, immediately

deliver all classified documents and

materials to the Commission along with

a certificate of nonpossession of

classified information.

50. Section 95.55 is revised to read as

follows:
17698 Federal Register / Vol. 62, No. 70 / Friday, April 11, 1997 / Rules and Regulations

§ 95.55 Continued applicability of the

regulations in this part.

The suspension, revocation or other

termination of access authorization or

the termination of facility clearance

does not relieve any person from

compliance with the regulations in this

part.

51. Section 95.57 is revised to read as

follows:

§ 95.57 Reports.

Each licensee or other person having

a facility clearance shall immediately

report to the CSA and the Regional

Administrator of the appropriate NRC

Regional Office listed in appendix A, 10

CFR part 73:

(a) Any alleged or suspected violation

of the Atomic Energy Act, Espionage

Act, or other Federal statutes related to

classified information.

(b) Any infractions, losses,

compromises or possible compromise of

classified information or classified

documents not falling within paragraph

(a) of this section.

(c) In addition, an authorized

classifier of a licensee, certificate holder

or other organization subject to this Part

shall complete an NRC Form 790,

‘‘Classification Record,’’ whenever

matter containing classified information

is generated, its classification changed

or it is declassified. Notification of

declassification is not required for any

document or material which has an

automatic declassification date.

Completed NRC Form 790 must be

submitted to the NRC Division of

Security, Washington, DC 20555–0001,

on a monthly basis.

52. Section 95.59 is revised to read as

follows:

§ 95.59 Inspections.

The Commission shall make

inspections and reviews of the premises,

activities, records and procedures of any

person subject to the regulations in this

part as the Commission and CSA deem

necessary to effect the purposes of the

Act, E.O. 12958 and/or NRC rules.

Dated at Rockville, Maryland, this 26th day

of March 1997.

For the Nuclear Regulatory Commission.

L. Joseph Callan,

Executive Director for Operations.

[FR Doc. 97–9063 Filed 4–11–97; 8:45 am]

BILLING CODE 7590–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Airspace Docket No. 96–ANM–030]

Establishment of Class E Airspace;

Craig, CO

AGENCY: Federal Aviation

Administration (FAA), DOT.

ACTION: Final rule.

SUMMARY: This action establishes the

Craig, Colorado, Class E airspace to

accommodate a new Global Positioning

System (GPS) Standard Instrument

Approach Procedure (SIAP) to the CraigMoffat Airport. Additionally, this action

corrects the airport name from Hayden,

Craig-Moffat Airport, Colorado, to CraigMoffat Airport, Colorado, as described

in the Airport/Facility Directory, and it

removes the Class E5 airspace

previously listed under the text header

of Hayden, Colorado (Hayden, CraigMoffat Airport).

EFFECTIVE DATE: 0901 UTC, May 22,

1997.

FOR FURTHER INFORMATION CONTACT:

Ted Mellan, Operations Branch, ANM–

532.1, Federal Aviation Administration,

Docket No. 96–ANM–030, 1601 Lind

Avenue SW., Renton, Washington

98055–4056; telephone number: (206)

227–2536.

SUPPLEMENTARY INFORMATION:

History

On February 12, 1997, the FAA

proposed to amend part 71 of the

Federal Aviation Regulations (14 CFR

part 71) to establish Class E airspace at

Craig, Colorado, to accommodate a new

GPS SIAP to the Craig-Moffat Airport

(62 FR 6506). This action also corrects

the airport name, and eliminates

confusion, with the removal of the Class

E5 airspace previously listed under the

text header of Hayden, Colorado

(Hayden, Craig-Moffat Airport). This

action will ensure correct references to

airports are made, as described in the

Airport/Facility Directory, and will

accurately distinguish between the

classes of airspace associated with

Craig, Colorado, and Hayden, Colorado.

Interested parties were invited to

participate in the rulemaking

proceeding by submitting written

comments on the proposal. No

comments were received.

The coordinates for this airspace

docket are based on North American

Datum 83. Class E airspace areas

extending upward from 700 feet or more

above the surface of the earth are

published in paragraph 6005 of FAA

Order 7400.9D dated September 4, 1996,

and effective September 16, 1996, which

is incorporated by reference in 14 CFR

71.1. The Class E airspace listed in this

document will be published

subsequently in the Order.

The Rule

This amendment to part 71 of Federal

Aviation Regulations establishes Class E

airspace at Craig, Colorado. The FAA

has determined that this regulation only

involves an established body of

technical regulations for which frequent

and routine amendments are necessary

to keep them operationally current. It,

therefore, (1) is not a ‘‘significant

regulatory action’’ under Executive

Order 12866; (2) is not a ‘‘significant

rule’’ under DOT Regulatory Policies

and Procedures (44 FR 11034; February

26, 1979); and (3) does not warrant

preparation of a regulatory evaluation as

the anticipated impact is so minimal.

Since this is a routine matter that will

only affect air traffic procedures and air

navigation, it is certified that this rule

will not have a significant economic

impact on a substantial number of small

entities under the criteria of the

Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference,

Navigation (air).

Adoption of the Amendment

In consideration of the foregoing, the

FAA amends 14 CFR part 71 as follows:

PART 71—[AMENDED]

1. The authority citation for 14 CFR

part 71 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113,

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389; 14 CFR 11.69.

§ 71.1 [Amended]

2. The incorporation by reference in

14 CFR 71.1 of the Federal Aviation

Administration Order 7400.9D, Airspace

Designations and Reporting Points,

dated September 4, 1996, and effective

September 16, 1996, is amended as

follows:

Paragraph 6005 Class E airspace areas

extending upward from 700 feet or more

above the surface of the earth.

* * * * *

ANM CO E5 Hayden, CO [Removed]

* * * * *

ANM CO E5 Craig, CO [New]

Craig-Moffat Airport, CO

(Lat. 40°29′43′′ N, long. 107°31′17′′ W)

Hayden VOR/DME

(Lat. 40°31′12′′ N, long. 107°18′18′′ W)