Federal Register / Vol. 73, No. 160 / Monday, August 18, 2008 / Proposed Rules 48185 

(Catalog of Federal Domestic Assistance No. 

97.022, ‘‘Flood Insurance.’’) 

Dated: August 8, 2008. 

David I. Maurstad, 

Federal Insurance Administrator of the 

National Flood Insurance Program, 

Department of Homeland Security, Federal 

Emergency Management Agency. 

[FR Doc. E8–19008 Filed 8–15–08; 8:45 am] 

BILLING CODE 9110–12–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 204 and 252 

RIN 0750–AF98 

Defense Federal Acquisition 

Regulation Supplement; U.S.- 

International Atomic Energy Agency 

Additional Protocol (DFARS Case 

2004–D003) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to add 

a contract clause requiring a contractor 

to notify DoD if the contractor is 

required to report its activities under the 

U.S.-International Atomic Energy 

Agency Additional Protocol. The clause 

would be included in contracts for 

research and development or major 

defense acquisition programs involving 

fissionable materials, other radiological 

source materials, or technologies 

directly related to nuclear power 

production. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

October 17, 2008, to be considered in 

the formation of the final rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2004–D003, 

using any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: dfars@osd.mil. Include 

DFARS Case 2004–D003 in the subject 

line of the message. 

• Fax: 703–602–7887. 

• Mail: Defense Acquisition 

Regulations System, Attn: Ms. Michele 

Peterson, OUSD (AT&L) DPAP (DARS), 

IMD 3D139, 3062 Defense Pentagon, 

Washington, DC 20301–3062. 

• Hand Delivery/Courier: Defense 

Acquisition Regulations System, Crystal 

Square 4, Suite 200A, 241 18th Street, 

Arlington, VA 22202–3402. 

Comments received generally will be 

posted without change to http:// 

www.regulations.gov, including any 

personal information provided. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Michele Peterson, 703–602–0311. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Under the U.S.-International Atomic 

Energy Agency Additional Protocol 

(U.S.-IAEA AP), the United States is 

required to declare a wide range of 

public and private nuclear-related 

activities to the IAEA and potentially 

provide access to IAEA inspectors for 

verification purposes. The Department 

of Commerce published a proposed rule 

at 73 FR 43568 on July 25, 2008, to 

implement the U.S.-IAEA AP. 

The U.S.-IAEA AP permits the United 

States unilaterally to declare exclusions 

from inspection requirements for 

activities with direct national security 

significance. This proposed rule 

contains a contract clause requiring a 

DoD contractor to notify the applicable 

DoD program manager if the contractor 

is required to report its activities under 

the U.S.-IAEA AP. Upon such a 

notification, DoD will determine if 

access may be granted to IAEA 

inspectors, or if a national security 

exclusion should be applied. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

DoD does not expect this proposed 

rule to have a significant economic 

impact on a substantial number of small 

entities within the meaning of the 

Regulatory Flexibility Act, 5 U.S.C. 601, 

et seq., because the proposed rule 

applies only to those DoD contractors 

involved in certain nuclear-related 

activities. The proposed rule provides 

for exceptions to inspection 

requirements that might otherwise 

apply to such contractors, if DoD 

determines that an exception is 

necessary in the interest of national 

security. Therefore, DoD has not 

performed an initial regulatory 

flexibility analysis. DoD invites 

comments from small businesses and 

other interested parties. DoD also will 

consider comments from small entities 

concerning the affected DFARS subparts 

in accordance with 5 U.S.C. 610. Such 

comments should be submitted 

separately and should cite DFARS Case 

2004–D003. 

C. Paperwork Reduction Act 

This proposed rule contains a new 

information collection requirement. In 

compliance with 44 U.S.C. Chapter 35, 

DoD invites comments on: (a) Whether 

the proposed collection of information 

is necessary for the proper performance 

of the functions of DoD, including 

whether the information will have 

practical utility; (b) the accuracy of the 

estimate of the burden of the proposed 

information collection; (c) ways to 

enhance the quality, utility, and clarity 

of the information to be collected; and 

(d) ways to minimize the burden of the 

information collection on respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. 

Title: Defense Federal Acquisition 

Regulation Supplement (DFARS); U.S.- 

International Atomic Energy Agency 

Additional Protocol. 

Type of Request: New requirement. 

Number of Respondents: 300. 

Responses per Respondent: 1. 

Annual Responses: 300. 

Average Burden per Response: 1 hour. 

Annual Burden Hours: 300. 

Needs and Uses: DoD needs this 

information to provide for protection of 

information or activities with national 

security significance. DoD program 

managers will use the information to 

determine if IAEA inspectors may be 

granted access to a contractor’s facility, 

or if a national security exclusion 

should be applied. 

Affected Public: Businesses or other 

for-profit and not-for-profit institutions. 

Frequency: On occasion. 

Respondent’s Obligation: Required to 

obtain or retain benefits. 

Written comments and 

recommendations on the proposed 

information collection should be sent to 

Ms. Jasmeet Seehra at the Office of 

Management and Budget (OMB), Desk 

Officer for DoD, Room 10236, New 

Executive Office Building, Washington, 

DC 20503, with a copy to the Defense 

Acquisition Regulations System, Attn: 

Ms. Michele Peterson, OUSD (AT&L) 

DPAP (DARS), IMD 3D139, 3062 

Defense Pentagon, Washington, DC 

20301–3062. Comments can be received 

from 30 to 60 days after the date of this 

notice, but comments to OMB will be 

most useful if received by OMB within 

30 days after the date of this notice. 


rwilkins on PROD1PC63 with PROPOSALS
48186 Federal Register / Vol. 73, No. 160 / Monday, August 18, 2008 / Proposed Rules 

List of Subjects in 48 CFR Parts 204 and 

252 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, DoD proposes to amend 48 

CFR parts 204 and 252 as follows: 

1. The authority citation for 48 CFR 

parts 204 and 252 continues to read as 

follows: 

Authority: 41 U.S.C. 421 and 48 CFR 

Chapter 1. 

PART 204—ADMINISTRATIVE 

MATTERS 

2. Sections 204.470 through 204.470–

3 are added to read as follows: 

204.470 U.S.-International Atomic Energy 

Agency Additional Protocol. 

204.470–1 General. 

Under the U.S.-International Atomic 

Energy Agency Additional Protocol 

(U.S.-IAEA AP), the United States is 

required to declare a wide range of 

public and private nuclear-related 

activities to the IAEA and potentially 

provide access to IAEA inspectors for 

verification purposes. 

204.470–2 National security exclusion. 

(a) The U.S.-IAEA AP permits the 

United States unilaterally to declare 

exclusions from inspection 

requirements for activities, or locations 

or information associated with such 

activities, with direct national security 

significance. 

(b) In order to ensure that all relevant 

activities are reviewed for direct 

national security significance, both 

current and former activities, and 

associated locations or information, are 

to be considered for applicability for a 

national security exclusion. 

(c) If a DoD program manager receives 

notification from a contractor that the 

contractor is required to report its 

activities in accordance with the U.S.- 

IAEA AP, the program manager will—

(1) Conduct a security assessment to 

determine if, and by what means, access 

may be granted to the IAEA; or 

(2) Provide written justification to the 

component or agency treaty office for a 

national security exclusion, in 

accordance with DoD Instruction 2060 

XX, Application of the National 

Security Exclusion to U.S.–IAEA 

Safeguards. 

204.470–3 Contract clause. 

Use the clause at 252.204–7XXX, 

Contractor Notification of Requirement 

to Report Activities Under the U.S.- 

International Atomic Energy Agency 

Additional Protocol, in solicitations and 

contracts for research and development 

or major defense acquisition programs 

involving—

(a) Any fissionable materials (e.g., 

uranium, plutonium, neptunium, 

thorium, americium); 

(b) Other radiological source 

materials; or 

(c) Technologies directly related to 

nuclear power production, including 

nuclear or radiological waste materials. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

3. Section 252.204–7XXX is added to 

read as follows: 

252.204–7XXX Contractor Notification of 

Requirement to Report Activities Under the 

U.S.-International Atomic Energy Agency 

Additional Protocol. 

As prescribed in 204.470–3, use the 

following clause: 

CONTRACTOR NOTIFICATION OF 

REQUIREMENT TO REPORT 

ACTIVITIES UNDER THE U.S.- 

INTERNATIONAL ATOMIC ENERGY 

AGENCY ADDITIONAL PROTOCOL 

(XXX 2008) 

(a) If the Contractor is required to 

report its activities in accordance with 

Department of Commerce regulations 

(15 CFR part 781 et seq.) or Nuclear 

Regulatory Commission regulations (10 

CFR part 75) in order to implement the 

declarations required by the U.S.- 

International Atomic Energy Agency 

Additional Protocol (U.S.-IAEA AP), the 

Contractor shall—

(1) Immediately provide written 

notification to the following DoD 

Program Manager: 

[Contracting Officer to insert Program 

Manager’s name, mailing address, email address, telephone number, and 

facsimile number]; 

(2) Include in the notification—

(i) Where the DoD contract activities 

or information are located relative to the 

activities or information to be declared 

to the Department of Commerce or the 

Nuclear Regulatory Commission; and 

(ii) If or when any current or former 

DoD contract activities and the activities 

to be declared to the Department of 

Commerce or the Nuclear Regulatory 

Commission have been or will be colocated or located close enough to one 

another to result in disclosure of the 

DoD activities during an IAEA 

inspection or visit; and 

(3) Provide a copy of the notification 

to the Contracting Officer. 

(b) After receipt of a notification 

submitted in accordance with paragraph 

(a) of this clause, the DoD Program 

Manager will—

(1) Conduct a security assessment to 

determine if and by what means access 

may be granted to the IAEA; or 

(2) Provide written justification to the 

component or agency treaty office for a 

national security exclusion, in 

accordance with DoD Instruction 2060 

XX, Application of the National 

Security Exclusion to U.S.-IAEA 

Safeguards. DoD will notify the 

Contractor if a national security 

exclusion is applied. 

(c) If the DoD Program Manager 

determines that a security assessment is 

required—

(1) DoD will, at a minimum—

(i) Notify the Contractor that DoD 

officials intend to conduct an 

assessment of vulnerabilities to IAEA 

inspections or visits; 

(ii) Notify the Contractor of the time 

at which the assessment will be 

conducted, at least 30 days prior to the 

assessment; 

(iii) Provide the Contractor with 

advance notice of the credentials of the 

DoD officials who will conduct the 

assessment; and 

(iv) To the maximum extent 

practicable, conduct the assessment in a 

manner that does not impede or delay 

operations at the Contractor’s facility; 

and 

(2) The Contractor shall provide 

access to the site and shall cooperate 

with DoD officials in the assessment of 

vulnerabilities to IAEA inspections or 

visits. 

(d) Following a security assessment of 

the Contractor’s facility, DoD officials 

will notify the Contractor as to—

(1) Whether the Contractor’s facility 

has any vulnerabilities where 

potentially declarable activities under 

the U.S.-IAEA AP are taking place; 

(2) Whether additional security 

measures are needed; and 

(3) Whether DoD will apply a national 

security exclusion. 

(e) If DoD applies a national security 

exclusion, the Contractor shall not grant 

access to IAEA inspectors. 

(f) If DoD does not apply a national 

security exclusion, the Contractor shall 

apply managed access to prevent 

disclosure of program activities, 

locations, or information in the U.S. 

declaration. 

(g) The Contractor shall incorporate 

the substance of this clause, including 

this paragraph (g), in all subcontracts 

that are subject to the provisions of the 

U.S.-IAEA AP. 

(End of clause) 

[FR Doc. E8–19097 Filed 8–15–08; 8:45 am] 

BILLING CODE 5001–08–P 


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