Source: http://www.uscis.gov/sites/default/files/ilink/docView/FR/HTML/FR/0-0-0-1/0-0-0-123038/0-0-0-133528/0-0-0-133548.html
Timestamp: 2013-12-05 18:18:46
Document Index: 296226061

Matched Legal Cases: ['§ 550', 'art 105', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27', 'art 712', 'art 713', 'art 714', '§ 27', '§ 27', '§ 27', '§ 27', '§ 27']

Chemical Facility Anti-Terrorism Standards [72 FR 17688] [FR 14-07]
\ fr \ Federal Register Publications (CIS, ICE, CBP) \ Federal Register Publications (CIS, ICE, CBP) - 2007 \ FEDERAL REGISTER INTERIM REGULATIONS - 2007 \ Chemical Facility Anti-Terrorism Standards [72 FR 17688] [FR 14-07]
Chemical Facility Anti-Terrorism Standards [
] [FR 14-07]
FR 14-07
This rule establishes risk-based performance standards for the security of our Nation's chemical facilities. It requires covered chemical facilities to prepare Security Vulnerability Assessments (SVAs), which identify facility security vulnerabilities, and to develop and implement Site Security Plans (SSPs), which include measures that satisfy the identified risk-based performance standards. It also allows certain covered chemical facilities, in specified circumstances, to submit Alternate Security Programs
(ASPs) in lieu of an SVA, SSP, or both.
IP/CSCD/Dennis Deziel, Mail Stop 8100,Department of Homeland Security, Washington, DC 20528-8100.
B. Determining Which Facilities Present a High- Level of Security Risk
N. Regulatory EvaluationIV. Regulatory Analyses
Comments that include trade secrets, confidential commercial or financial information, Sensitive Security Information (SSI), or Protected Critical Infrastructure Information (PCII) should not be submitted to the public regulatory docket. Please submit such comments separately from other comments on the rule. Comments containing trade secrets, confidential commercial or financial information, Sensitive Security Information (SSI), or Protected Critical Infrastructure Information (PCII) should be appropriately
marked as containing such information and submitted by mail to the individual(s) listed in the FOR FURTHER INFORMATION CONTACT
. Submitted comments by mail may also be inspected. To inspect comments, please call Dennis Deziel, 703-235-5263, to arrange for an appointment.
On October 4, 2006, the President signed the Department of Homeland Security Appropriations Act of 2007 (the Act), which provides the Department of Homeland Security with the authority to regulate the security of high-risk chemical facilities. See Pub. L. 109-295, § 550. Section 550 requires the Secretary of Homeland Security to promulgate interim final regulations “establishing risk-based performance standards for security of chemical facilities” by April 4, 2007. Id
. Although interim final regulations are usually issued without prior notice and comment (and the Act requires neither), the Department issued an Advance Notice of Rulemaking (Advance Notice) seeking comment on the significant issues and regulatory text. See generally
71 FR 78276 (Dec. 28, 2006).
As discussed more fully in the Advance Notice, before the enactment of Section 550, the Federal government did not have authority to regulate the security of most chemical facilities. The Department has, however, worked closely with industry leaders in pursuit of voluntary enhancement of security at these facilities and provided both technical assistance and grant funding for security. In addition, through the Coast Guard's Maritime Security regulations, the Department has addressed security at certain mari
time-related chemical facilities. See
33 CFR Part 105. Recently, the Departments of Homeland Security and Transportation also proposed security regulations for the rail transportation of hazardous chemicals. See
71 FR 76834, 71 FR 76851 (Dec. 21, 2006). Other Federal programs have addressed chemical facility safety, but not security: the Environmental Protection Agency (EPA) regulates chemical process safety through its Risk Management Plan (RMP) program; the Department of Labor's Occupational Safety and Health Administration (OSHA) regulates workplace safety and health at chemical facilities; the Department of Commerce oversees compliance with the Chemical Weapons Convention; and the Department of Justice's Burea
u of Alcohol, Tobacco, Firearms, and Explosives (ATF) regulates, through licenses and permits, the purchase, possession, storage, and transportation of explosives.
With the authority under Section 550, the Department can now fill a significant security gap in the country's anti-terrorism efforts. Section 550 specifies that the regulations “shall apply to chemical facilities that, in the discretion of the Secretary, present high levels of security risk.” The statute requires that the regulations establish risk-based performance standards; requires Security Vulnerability Assessments and Site Security Plans; allows Alternative Security Programs; mandates audits and inspe
ctions to determine compliance with the regulations; provides for civil penalties for violation of an order issued under the statute; and allows the Secretary to order a facility to cease operations if the facility is not in compliance with the requirements. The statute also gives the Department the authority to protect from inappropriate public disclosure any information developed pursuant to Section 550, “including vulnerability assessments, site security plans, and other security related information, rec
ords, and documents.”
As discussed in the Advance Notice, by directing the Secretary to issue “interim final regulations,” Congress authorized the Secretary to proceed without the traditional notice-and-comment required by the Administrative Procedure Act. See
71 FR 78276, 78277. The Department, however, saw great benefit in soliciting comments on as much of the program as was practicable in the short timeframe permitted under the statute. Accordingly, the Department voluntarily sought comment on a range of regulatory and implementation issues and responds to the comments below.
In this interim final rule, the Department has not changed the general, risk-based approach it proposed in the December 28, 2006, Advance Notice. See
71 FR 78276. As discussed in detail below, the Department plans to implement the regulation in phases, starting to work aggressively with chemical facilities presenting the very highest security risks first. The Department adopts a risk-based tiering structure in its regulatory approach, so that the Department's scrutiny of facilities under this regulation increases as the level of risk increases. Even though this approach remains the same, the Department provides further details below on a number of unres
olved issues presented in the Advance Notice. For example, the Department provides further detail on the issues surrounding background checks for those with access to high-risk facilities, and the Department describes its approach on facilities possessing ammonium nitrate.
On several important issues, the Department has reconsidered and modified the position it proposed in the Advance Notice. For example, in response to comments, the Department has restructured its provisions concerning objections, consultations, adjudications, and appeals. As discussed below, the Department's aim is to provide flexibility and assistance for facilities seeking to comply with the regulatory standards. The Department has decided, however, to incorporate a role for a neutral adjudicator where un
resolved differences present themselves and result in significant fines or other penalties. In addition, the Department has modified a number of scheduling and timing requirements in response to comments, and the Department further explains its approach on preemption of state and local law after considering the numerous comments on that subject. Although the Department continues to view as important the opportunity for facilities to submit Alternative Security Programs, the Department modified the circumsta
nces in which it will accept Alternative Security Programs.
This section summarizes the regulatory text changes that the Department has made to this interim final rule. In addition to the summary contained in this section, we have, in many cases, provided a more extensive discussion of the change, and the reason for the change, in the response to comments below. See
§ III “Discussion of Comments.” Finally, to the extent that the Department has made technical corrections or corrected typographical errors, we do not specifically discuss them.
Section 27.100 Purpose
Section 27.105 Definitions
For purposes of clarity, DHS has added several definitions, including “Chemical Security Assessment Tool,” “Chemical-terrorism Vulnerability Information,” “Deputy Secretary,” “Director of the Chemical Security Division” and “Screening Threshold Quantity.” The Department has also revised a few definitions, including “Assistant Secretary” and “Under Secretary.” The Department revised “Under Secretary” as a result of organizational changes in the Department following the Post-Katrina Emergency Reform Act, whic
h the President signed on October 4, 2006. See
Public Law 109-295, Title VI. In several places, the Department indicated that the named official, or his designee, has the specified responsibility under the regulation. The Department also revised the definition of “Alternate Security Program,” to provide consistency with changes the Department has since made to § 27.235, the Alternate Security Programs section. The Department expanded upon the definition of “tier,” adding that, for purposes of this part, there are four risk-based tiers.
Finally, the Department made clarifying changes to “Chemical Facility,” “Covered Chemical Facility,” and “Owner.” With respect to the definition of “Chemical Facility,” the Department removed the circular nature of the definition in the Advance Notice (i.e., a chemical facility
shall mean any facility
) (emphasis added) and now provides that a chemical facility “shall mean any establishment that possesses or plans to possess * * *.”
Section 27.120 Designation of a coordinating official; Consultations and technical assistance
The language in revised § 27.120(a) makes clear that the Assistant Secretary will designate a Coordinating Official responsible for ensuring the uniform, impartial, and fair implementation of these regulations. The language in revised § 27.120(b) indicates that the Coordinating Official and his staff shall provide guidance to facilities, and while the Coordinating Official and his staff will be available for consultation and to provide technical assistance, they will be available only to the extent that res
ources permit.
The Department has added a new provision in § 27.120(d). This provision provides that a covered facility may request a consultation with the Coordinating Official if it modifies its facility, processes, or the types or quantities of materials that it possesses, and believes such changes may impact the covered facility's obligations under this part. The Department added this provision in response to commenters concerned about a facility's ability to “exit” the regulatory program. The Department recognizes th
at facilities that reduce risk to levels below those levels that the Department deems as that characterized for Tier 4 facilities (i.e., the lowest risk facilities of the “high risk” facilities) or that eliminate certain risks altogether may no longer need to be covered by this regulation. This provision allows the covered facility to request the initiation of the screening process (which determines whether or not the facility is high-risk and therefore whether the facility is or is not included in this reg
ulatory program) prior to the facility's next scheduled CSAT Top-Screen submission pursuant to § 27.210. Through this consultation process, the facility may initiate discussions with the Department and ultimately accelerate the process for determining whether it can “exit” the regulatory program.
Section 27.200 Information regarding security risk for a chemical facility
The Department has added several new provisions to this section. The Department has revised paragraph (b), by incorporating language from proposed § 27.200(a) of the Advance Notice and by also adding new provisions. The two sentences in paragraph (b)(1) come from the end of proposed § 27.200(a). Paragraph (b)(1) provides that the Assistant Secretary may seek the information listed in paragraph (a) by contacting chemical facilities individually or by publishing a notice in the Federal Register
. It also provides that the Assistant Secretary may instruct facilities to complete and submit a Top-Screen through a secure Department Web site or through any other means approved by the Assistant Secretary.
Paragraph (b)(2) is a new provision. It provides that a facility must complete and submit a Top-Screen in accordance with the schedule provided in § 27.210 if it possesses any of the chemicals listed in Appendix A: “DHS Chemicals of Interest” at the corresponding quantities. For a further discussion of Appendix A, see the discussion of Appendix A further below in the Rule Provisions section. The purpose of this provision is to give facilities direction as to whether or not they must complete and submit a To
p-Screen.
As noted in the discussion of Appendix A, the presence or amount of a particular chemical is not an indicator of a facility's coverage under this rule. The presence or amount of a chemical in the Appendix is merely a baseline threshold requiring a facility to complete and submit a Top-Screen. (Consistent with § 27.200(b)(1), DHS will retain the ability to notify facilities, through direct notification or Federal Register
notice, that they need to complete and submit a Top-Screen.) The information that the Department will obtain through the Top-Screen process is only one of several factors that the Department will consider in determining whether a facility is “high-risk” and thus covered by this rule.
Paragraph (b)(3) addresses the requirements for individuals who submit information to the Department through the CSAT system, which includes the Top-Screen process. Paragraph (b)(3) provides that, where the Department requests that a facility complete and submit a Top-Screen, the facility must designate a person to be responsible for the submission of information through the CSAT system. (The CSAT system is comprised of three sequential parts: the Top-Screen, the SVA, and the SSP). The Department provides t
hat any such submitter must be an officer of the corporation or other person designated by an officer of the corporation, and must be domiciled in the United States. The Department had contemplated such requirements in Appendix A to the Advance Notice and now finalizes them here.
Consistent with the explanation in Appendix A to the Advance Notice, the Department notes that a facility may choose to have another individual, in addition to the above-discussed “submitter,” involved in the submission of information through the Top-Screen. That other individual is a “provider.” A provider would be a qualified individual who is familiar with the facility in question and who completes the information in the CSAT system. The provider, however, would not formally submit information to the Dep
artment. The individual responsible for sending information to the Department through the CSAT system (whether Top-Screen, SVA, or SSP) is always the submitter. And as indicated in paragraph (b)(3), the submitter is also responsible for attesting to the accuracy of the submitted information.
Paragraphs (c)(1) and (2) address facilities that the Department deems as “presumptively high risk.” Both paragraphs were in the Advance Notice, though they were located in proposed § § 27.200(b) and (c).
Section 27.205 Determination that a chemical facility “presents a high level of security risk.”
In addition, the Department has removed proposed § 27.205(c), along with § § 27.220(b), and 27.240(c), all of which had contained a mechanism for objections. In the Advance Notice, the Department had provided facilities with the opportunity to object to the following three Departmental actions: determination that a facility “presents a high level of risk,” placement in a high-risk tier, and disapproval of a facility's Site Security Plan. The intention behind those provisions was to provide facilities with a
n informal opportunity to consult with the Department. The Department believes that the rule (including existing provisions from the Advance Notice as well as new provisions in this interim final rule) provides facilities with several opportunities for consultation when they disagree with an initial decision on these matters. Specifically, revised § 27.120(b) provides that the Coordinating Official and his staff shall be available to consult and to provide technical assistance to a facility owner or operato
r, revised § 27.120(c) provides the details for how a facility should initiate consultations or assistance, and revised § 27.120(d) provides that a covered facility may request a consultation if it modifies its facility, processes, or the types or quantities of materials that it possesses and believes such changes may impact the covered facility's obligations under this part. In addition, § § 27.240(b) and 27.245(b) provide that a facility shall enter further consultations following Departmental written not
ification that a Security Vulnerability Assessment or Site Security Plan is unsatisfactory. Given that the rule already provides consultation opportunities, coupled with the fact that the Department has greatly modified its adjudication and appeal provisions, the Department believes it is unnecessary to retain these objections provisions and has thus removed them from the interim final rule.
Section 27.210 Submissions Schedule
In § 27.210, the Department clarifies the submission schedule for the Top-Screen, Security Vulnerability Assessment, and Site Security Plan. In § 27.210(a) of the Advance Notice, the Department included a sentence indicating that the presumptive time frames were 60 days for the Security Vulnerability Assessment and 120 days for the Site Security Plan. In this interim final rule, the Department has added presumptive timeframes for the submission of the Top-Screen and revised the presumptive timeframes for SV
As and SSPs. See
§ 27.210(a) and (b). The presumptive timeframes for initial submissions are 60 calendar days for the Top-Screen, 90 calendar days for the SVA, and 120 calendar days for the SSP. The presumptive timeframes for resubmission vary depending on a facility's tier. As a general matter, the Department will require facilities in Tiers 1 and 2 to update their Top-Screen, SVA, and SSP every two years, and facilities in Tiers 3 and 4 to update their Top-Screen, SVA, and SSP every three years.
Finally, the Department added a new paragraph (d), which addresses material modifications. In § § 27.215(c)(3) and 27.225(b)(3) of the Advance Notice, the Department provided that a covered facility had to notify the Department of material modifications to the SVA or SSP and that the Department would notify the facility within 60 days of whether the Department disapproved the revised SVA or SSP. The Department has re-located a new but similar requirement in § 27.210(d). The regulation now provides that if a
covered facility makes material modifications to its operations or site, the covered facility must complete and submit a revised Top-Screen to the Department within 60 days of completion of the material modification. In accordance with the resubmission requirements in § 27.210(b)(2) and (3), the Department will notify the covered facility as to whether the covered facility must submit a revised Security Vulnerability Assessment, Site Security Plan, or both. As a result of this new paragraph (d), the Depart
ment removed the provisions that appeared in § § 27.215(c)(3) and 27.225(b)(3) of the Advance Notice.
Section 27.215 Security Vulnerability Assessments and Section 27.225 Site Security Plans
The Department has revised several of the corresponding provisions in both § 27.215 and § 27.225. First, the Department has revised the corresponding provisions regarding methodologies. Specifically, the Department has revised the language in § 27.215(b) and added a new paragraph (b) in § 27.225. In both places, the Department explains that, except as provided in § 27.235, a covered facility must submit either the SVA/SSP through the CSAT process or any other methodology or process identified by the Assista
nt Secretary.
By this change, the Department is making more explicit its intention to use the CSAT process at this time. The CSAT process includes completion of the Top-Screen process and, depending on the results of the Top-Screen process, may also include the development of a Security Vulnerability Assessment and the development of a Site Security Plan. Thus, for facilities that are determined to be high-risk, the CSAT process will consist of three sequential parts (i.e., the Top-Screen, SVA, and SSP). The Department a
lso notes that facilities will have to obtain access to the CSAT system by submitting a user registration request. Section 27.200(b)(1) contains the requirements for individuals (i.e., submitters) who will be submitting information through the CSAT system and attesting to the accuracy of that information.
Third, in paragraph (d) of both sections, the Department revised the update/revision provisions for submitting SVAs and SSPs. In the Advance Notice, the Department indicated that covered facilities must update or revise their SVAs or SSPs based on a schedule set by the Assistant Secretary. Because the Department has established a submission schedule in § 27.210, the Department now includes cross-references in § 27.215(d)(1) and § 27.225(d)(2) to that schedule. As a related matter, in § 27.215(d), the Depart
ment moved the general submissions schedule requirement to § 27.215(d)(1), thereby re-locating the provision formerly in § 27.215(d)(1) to § 27.215(d)(2).
With respect to changes to § 27.225 only, the Department has added a provision that requires facilities to conduct annual audits of their Site Security Plans. See § 27.225(e). This provision had been implied in the recordkeeping requirement in the Advance Notice (
see § 27.255(a)(6)) and is now explicit. DHS made some additional revisions to the corresponding recordkeeping provision, in which DHS more clearly specifies the audit-related records that covered facilities should maintain.
Section 27.220 Tiering
The Department has added several paragraphs to this section. Section 27.220(a) addresses the Department's preliminary determination as to a facility's risk-based tier. Paragraph (a) is based on language that had been in the Advance Notice at the end of § 27.205(a). The Department has elaborated on the Preliminary Tiering provision. Notably, the Department has indicated that it shall
notify a facility of the Department's preliminary tiering decision. This contrasts with the Advance Notice, which had merely indicated that the Department may notify a facility of the Department's preliminary tiering decision.
Section 27.220(b) is not a new subsection; rather, it contains the language that was previously located in § 27.220(a). Note that the Department has removed paragraph (b) as proposed in the Advance Notice. Paragraph (b) had contained an objections provision. For a discussion of the Department's decision to remove the objections provisions from this rule (in § § 27.205(c), 27.220(b), and 27.240(c)), see the summary under § 27.205(c).
This section contains the risk-based performance standards that covered facilities must satisfy. The Department has added a sentence to § 27.230(a), noting that the “acceptable layering of measures used to meet the standards will vary by risk-based tier.” While all facilities must satisfy the performance standards, the measures sufficient to meet those standards will be more robust for those facilities that present higher levels of risk. In other words, the manner in which the standards are applied will req
uire a higher level of security (and so provide for greater reduction in risk) for those facilities that present higher levels of risk. The Department will provide details about the application of these standards in guidance.
The Department has also revised some of the language related to specific performance standards. Section 27.230(a)(4) now provides that facilities must select, develop, and implement measures designed to “[d]eter, detect, and delay an attack, creating sufficient time between detection of an attack and the point at which the attack becomes successful.” This revised language more adequately captures the concept that the Department had intended in the language in paragraph (a)(4) of the Advance Notice and is mo
re complete. Section 27.230(a)(5) now requires facilities to secure and monitor the storage of hazardous materials, in addition to the shipping and receipt of hazardous materials. Section 27.230(a)(8) now contains a broader description of critical process systems. In the Advance Notice, the Department had used the acronym “SCADA” (Supervisory Control and Data Acquisition) to refer to instrumented control systems in general. In this interim final rule, the Department has provided more descriptive terminology
to refer to critical process systems. For a further discussion of SCADA, see the Department responses to “Comments on Specific Performance Standards.” Section 27.230(a)(12) contains an expanded standard for background checks. For a further discussion of background checks, see the Department response to comments about “Background Checks.” Section 27.230(a)(15) now provides that facilities should report significant security incidents to local law enforcement in addition to the Department. Finally, the Depart
ment has removed the paragraph that was paragraph 27.230(a)(19) in the Advance Notice, because that standard was already addressed in paragraph (a)(14).
Section 27.235 Alternative security program
The Department has revised this section to provide more detail about the process for Alternate Security Programs (ASPs). The basic requirement remains the same, in that certain covered facilities may submit ASPs, and the Assistant Secretary may approve those ASPs. See
§ 27.235(a). To accept an ASP, the Assistant Secretary must find that the program “provides an equivalent level of security to the level of security established by this part.” This language, which clarifies the standard for accepting ASPs, comes from the preamble of the Advance Notice and is consistent with the terms of Section 550. See
71 FR 78276, 78285.
In § 27.235(a)(1)-(2), the Department specifies, by tier, which facilities may submit ASPs in lieu of Security Vulnerability Assessments (SVAs) and which facilities may submit ASPs in lieu of Site Security Plans (SSPs). A Tier 4 facility may submit an ASP in lieu of a Security Vulnerability Assessment, Site Security Plan, or both. Tier 1, Tier 2, and Tier 3 facilities may submit an ASP in lieu of a Site Security Plan. Tier 1, Tier 2, and Tier 3 facilities may not submit an ASP in lieu of a Security Vulnerab
ility Assessment. Accordingly, Tier 1, Tier 2, and Tier 3 facilities will have to submit their SVA through the CSAT system.
With respect to Tier 4 facilities, the Department clarifies the following point: Given that the Department notifies a facility of its final placement in a risk-based tier following the Department's review of a covered facility's SVA (
§ 27.220(b)), a facility will not know its final tier placement at the time it might decide to submit an ASP in lieu of a SVA. Because of that, the Department understands that facilities will rely on the Department's preliminary tiering determination made pursuant to § 27.220(a).
The Department acknowledges that many facilities have expended substantial resources and incurred significant expense to identify vulnerabilities and to develop security plans. The Department commends facilities for such efforts. The work performed on these efforts is valuable, and DHS is committed to capitalizing on these investments. The information developed in these efforts will be relevant to facilities as they complete the CSAT SVA. Facilities will be able to use the information from existing vulnerab
ility assessments, and in many cases, the practical impact of requiring Tiers 1, 2, and 3 facilities use the CSAT SVA system will be one of formatting, i.e., facilities will have to enter their information from their existing vulnerability assessments into the format established by the CSAT system. While some additional analytical effort will be required, even where the facility has produced a strong SVA, the effort will be considerably less than that at facilities that are starting without a pre-existing S
Section 27.240 Review and Approval of Security Vulnerability Assessment and Section 27.245 Review and Approval of Site Security Plans
In addition, the Department made some changes to the corresponding provisions in the two separate sections. In both sections, the Department has removed the language (from proposed § 27.240(a)(1)) about time periods for submitting SVAs and SSPs. The Department has already addressed this issue in § § 27.215(c)-(d) and § § 27.225(c)-(d) (by providing that a facility must provide, update, and revise its SVA and SSP consistent with the schedule in § 27.210), so it was unnecessary to also include this language h
ere. Also, in both sections, the Department has added new language about the disapproval of SVAs or SSPs. The Department added a new sentence, which provides that “[i]f the resubmitted [SVA or SSP] does not satisfy the requirements of [§ 27.215 or § 27.225], the Department will provide the facility with written notification (including a clear explanation of deficiencies in the [SVA or SSP]) of the Department's disapproval of the [SVA or SSP].” See
§ 27.240(b) and § 27.245(b).
Finally, the Department has added a provision in § 27.245(a)(1)(iii), indicating that the Department issues a Letter of Approval if it approves a facility's Site Security Plan in accordance with § 27.250. While this provision appears elsewhere in the rule (
§ 27.245(b)), the Department thought it was appropriate to include it here as well.
The Department has removed 27.240(c) as proposed in the Advance Notice. Paragraph (c) had contained an objections provision. For a discussion of the Department's decision to remove the objections provisions from this rule (in § § 27.205(c), 27.220(b), and 27.240(c)), see the summary under § 27.205(c).
Section 27.250 Inspections and Audits
The Department has added additional provisions to the inspection and audit section. In § 27.250(c), the Department discusses the time and manner requirements for inspections. While the Department will generally provide facilities with 24-hour advance notice of inspections, the Department recognizes two exceptions where an unannounced inspection might occur. The Department included the first exception in the Advance Notice, and the Department has added the second exception in this interim final rule. For a f
urther discussion, see the Discussion of Comments in § III(F) on “Inspections and Audits.”
In § 27.250(d), the Department addresses various details related to the inspectors who will conduct inspections and audits. This is a new paragraph that was not in the Advance Notice. Although Congress has not provided the Department with administrative subpoena authority, this paragraph explains that inspectors will have credentials and may administer oaths and receive affirmations upon consent. It also provides details about the means by which inspectors may gather information and the access that inspecto
rs will have to records. The Department has also added a paragraph (e), which addresses confidentiality. Finally, the guidance paragraph, which had been located in paragraph (d) has been moved to paragraph (f).
Section 27.255 Recordkeeping Requirements
The Department revised various provisions related to recordkeeping. With respect to § 27.255(a)(1), the Department added a few additional record requirements regarding training. In addition to keeping records of the date and location of each training session, time of day and duration of each session, the name and qualifications of the instructor, and a clear, legible list of the attendees including attendees' signatures, the facility must also keep at least one other unique identifier for each attendee rece
iving training and the results of any evaluation or training. The Department also added a requirement to § 27.255(b), requiring facilities to keep submitted Top-Screens in addition to submitted SVAs and SSPs. In addition, as discussed above in the summary for § 27.225(e), the Department revised the recordkeeping provision related to internal audits. See
§ 27.255(a)(6).
Section 27.300 Orders
The Department has restructured the Orders provisions. Whereas the Advance Notice contained four separate sections (
§ § 27.300, 27.305, 27.310, and 27.315), the Department has now consolidated all of the Order provisions into one section, § 27.300. The main substance of the Orders provisions, however, remains the same. Pursuant to § 27.300(a), the Assistant Secretary can issue an Order for any instance of noncompliance. For example, the Assistant Secretary may issue an Order for a facility's refusal to complete a Top-Screen, failure to allow an inspection, or failure to update a Site Security Plan.
Beyond a basic Order, the Assistant Secretary may issue an Order Assessing Civil Penalty, an Order to Cease Operations, or both, where it determines that a facility is in violation of any Order issued pursuant to paragraph (a). See § 27.300(b). Orders Assessing Civil Penalty are for a continual noncompliance, a repeated pattern of noncompliance or egregious instances of noncompliance. Orders to Cease Operations are the most serious Orders that the Assistant Secretary might choose to issue under this regulatory scheme. The Assistant Secretary will use such a measure cautiously and judiciously and will balance the immediate security needs with the possible impact (e.g., economic impact or national security effect) of such an Order on th
e chemical industry and the Nation as a whole. As the Department wrote in the Advance Notice, “This authority would be utilized when no other options will achieve the required result.” See
71 FR 78276, 78287.
Most significantly with respect to adjudications, the Department has provided facilities with the opportunity to seek review of specified decisions before a neutral adjudications officer. A facility or other person may seek review of the following Department (i.e., Assistant Secretary) determinations: (1) A finding, pursuant to § 27.230(a)(12)(iv) that an individual is a potential security threat; (2) The disapproval of a Site Security Plan pursuant to § 27.245(b); or (3) The issuance of an Order pursuant t
o § 27.300(a) or (b). See § 27.310(a).
The procedures for Applications are found in § 27.310(b). To institute Adjudication Proceedings, the facility or other person (“Applicant”) must file a Notice of Application for Review within seven calendar days of notification of the Assistant Secretary's determination. See
§ 27.310(b)(1)-(2). Then, in an Application for Review, the Applicant must explain his or her position (i.e., explain why the Assistant Secretary's determination should be set aside). The Applicant has 14 calendar days from the date of notification of the Assistant Secretary's determination to file and serve an Application for Review. See
§ 27.310(b)(5). The Assistant Secretary, through the Office of the General Counsel, shall file and serve a Response within 14 calendar days of the filing and service of the Application for Review. See § 27.310(c). Finally, the Secretary may make certain procedural modifications in exigent circumstances. See
§ 27.310(d).
A Presiding Officer is the neutral adjudications officer who handles these proceedings. The Secretary shall appoint a Presiding Officer, consistent with the requirements in § 27.315. A Presiding Officer shall immediately consider whether a summary adjudication of an Application for Review is appropriate, and if the Presiding Officer finds that there is no genuine issue of material fact and that one party or the other is entitled to decision as a matter of law, then the record shall be closed and the Presidi
ng Officer shall issue an Initial Decision on the Application for Review. See
§ 27.330(b). Such summary decisions are governed by the procedures in § 27.330.
Where there is no summary decision, the Presiding Officer may conduct a hearing using the procedures specified in § 27.335. The Presiding Officer shall close and certify the record upon the completion of one of the following: a summary judgment proceeding, a hearing, the submission of post-hearing briefs, or the conclusion of oral arguments.
§ 27.340(a). Based on the certified record, the Presiding Officer shall issue an Initial Decision, and the decision shall be subject to appeal pursuant to § 27.345.
Finally, as related to the Appeals section below, a Presiding Officer's Initial Decision is stayed from the timely filing of a Notice of Appeal until the Under Secretary issues a Final Decision, unless the Under Secretary lifts the stay due to exigent circumstances. See
§ 27.345(b)(4).
Section 27.345 Appeals
The interim final rule contains a revised appeals section. There are several differences. First, a facility or other person may appeal the Initial Decision of the Presiding Officer made pursuant to § 27.340(b). This differs from the Advance Notice, in which a facility could appeal a Departmental final determination regarding disapproval of a Site Security Plan and the Departmental issuance of an Order. See
§ 27.320 in the Advance Notice. Second, the Advance Notice provided that the Under Secretary would make decisions for most categories of appeals, and the Deputy Secretary would make decisions for one category of appeal. This interim final rule provides that all appeals go to the Under Secretary or his designee acting as a neutral appeals officer. Third, as is discussed in more depth below, the procedures for an appeal have changed.
The Assistant Secretary, a facility, or other person (“Appellant”) may institute an Appeal by filing a Notice of Appeal within seven calendar days of notification of the Presiding Officer's Initial Decision. See
§ 27.345(b)(1)-(3). The Appellant shall then file and serve a Brief within 28 calendar days of the notification of the Presiding Officer's Initial Decision. See
§ 27.345(b)(5). The Appellee shall file and serve its Opposition Brief within 28 days of the filing of Appellant's Brief. See
§ 27.345(b)(6). The Under Secretary shall issue a Final Decision and serve it on the parties. A Final Decision by the Under Secretary constitutes final agency action.
§ 27.345(f).
In addition to the provisions mentioned above, the Department notes the following: Pursuant to § 27.345(b), the Under Secretary may provide for an expedited appeal; pursuant to § 27.345(c), ex parte communications are prohibited; and pursuant to § 27.345(c), a facility or other person may elect to have the Under Secretary participate in any mediation or other resolution process by expressly waiving, in writing, any argument that such participation has compromised the Appeals process. In addition, pursuant t
o § 27.345(g), the Secretary may establish procedures for the conduct of appeals.
Section 27.400 Chemical-Terrorism Vulnerability Information
The Department has made numerous clarifying changes to the chemical-terrorism vulnerability information (CVI) section. Some of these changes corrected typographical errors, while several others clarified existing provisions. With respect to a minor change, note that, in § 27.400 of the Advance Notice, the Department referred to CVI as “Chemical-terrorism Security and Vulnerability Information” and in this interim final rule, the Department now refers to CVI as “Chemical-terrorism Vulnerability Information.”
The Department intends no change in meaning with this revision.
The Department has highlighted below the more substantive changes to § 27.400. With respect to paragraph (c), the Department has removed paragraph (c)(2), because that concept is already covered in paragraph (e)(1)(v). In paragraph (d)(1), the Department provides that covered persons must protect all CVI in their possession or control, including electronic data. In paragraph (e)(1), the Department added language providing that a person who might have a “need to know” includes “state or local officials, law enforcement officials, and first responders.” In paragraph (e)(1)(ii), the Department clarified that a person in training will only have access to CVI that he needs as part of his training, and in paragraph (e)(1)(iv), the Department clarified that a the person in a fiduciary relationship with a covered person who is representing or providing advice to that covered person will also have a need to know CVI. In paragraph (e)(2)(iii), the Department provides that it may require non-Federal persons seeking acce
ss to CVI to complete a non-disclosure agreement before such access is granted. In paragraph (f)(3), the Department shortened the distribution limitation statement and added a new sentence at the end, which provides: “[i]n any administrative or judicial proceedings, this information shall be treated as classified information in accordance with 6 CFR § § 27.400(h) and (i).” And in paragraphs (h)(1), (i)(1), and (i)(2), the Department made it clear that these sections apply to the disclosure of CVI in the con
text of administrative or judicial enforcement proceedings of section 550 only, not any other kind of enforcement proceeding. Similarly, in paragraph (i)(7)(iii), the Department made it clear that this section applies only to judicial enforcement proceedings and not any other judicial proceeding.
Section 27.405 Review and Preemption of State Laws and Regulations
The Department has made several changes to § 27.405, including various regulatory text changes. Among those changes, the Department has added paragraph (a)(1). The Department wishes to avoid any unintended consequences in the program's interaction with other Federal requirements. For this reason, § 27.405(a)(1) provides that “[n]othing in this regulation is intended to displace other federal requirements administered by the Environmental Protection Agency, U.S. Department of Justice, U.S. Department of Labo
r, U.S. Department of Transportation, or other federal agencies.” For a further discussion of these changes and preemption in general, see the section below entitled “Executive Order: 13132: Federalism.”
In the Advance Notice, the Department sought comment on appropriate sources of information or methodologies for evaluating and categorizing chemical facilities.” See
71 FR 78276, 78282. The Department responds to those comments below in the “Discussion of Comments.” In this interim final rule, the Department has decided to evaluate chemical facility risks by, in part, classifying facilities by particular chemicals. In proposed Appendix A, the Department has included a list of “DHS Chemicals of Interest” along with Screening Threshold Quantities, or STQs, for each chemical. The Department has established STQs to trigger preliminary screening requirements. The STQ is not
the threshold quantity for establishing whether a given facility is a high-risk facility, but only sets a threshold to require a facility to complete and submit a CSAT Top-Screen. As noted in the “Public Participation” section above, the Department is accepting public comment on proposed Appendix A for 30 days. Following the close of the comment period, the Department will review the comments and publish a final Appendix A. The requirements related to Appendix A, which are found in § § 27.200(b)(2) and 27.
210, will become operative on the date that the Department publishes a final Appendix A.
Pursuant to § 27.200(b)(2), if a facility possesses any chemicals identified in Appendix A at the corresponding quantities, the facility must complete and submit a Top-Screen. Consistent with the submission requirements in § 27.210(a)(1), the facility must complete the Top-Screen within 60 calendar days of the effective date of a final Appendix A or within 60 calendar days of coming into possession of any such chemical at the corresponding quantity. (As indicated in the regulatory text, this submission requ
irement is not operative until the Department publishes a final Appendix A.) Note that this provision does not affect the Department's ability to contact facilities independently of this list. Pursuant to § 27.200(b)(1), DHS may notify facilities, on an individual basis or through an additional Federal Register
notice, that they need to complete and submit the Top-Screen. The Department notes that, where a facility has a question as to whether it should complete a Top-Screen, the facility can contact the Department and seek a consultation pursuant to § 27.120.
The Department reiterates that the presence or amount of a particular chemical listed in Appendix A is not the sole factor in determining whether a facility presents a high-level of security risk and is not an indicator of a facility's coverage under this rule. The DHS Chemicals of Interest list merely directs certain facilities to complete and submit the Top-Screen. This list serves as a tool to aid the Department in gathering information needed to administer the program under Section 550. In order for the
Department to assess compliance by particular chemical facilities with the regulation (
Section 550(e)), the Department must first obtain information to determine whether the particular chemical facilities qualify for coverage under Section 550. The list set out in Appendix A serves as a procedural tool designed to aid the Department in determining which facilities must comply with the substantive standards. Only after the Department gathers additional information through the Top-Screen process will the Department make a determination as to whether a facility presents a high risk and therefor
e must comply with the regulatory requirements to ensure adequate security. Under Section 550, the Department has the authority to use its best judgment and all available information in determining whether a facility presents a high level of security risk.
In developing the “DHS Chemicals of Interest” list, the Department has looked to existing sources of information and has then drawn on many of those sources of information, including some of the sources that commenters suggested. Those sources include the following: (1) The chemicals contained on the EPA's RMP list. Pursuant to the Clean Air Act (42 U.S.C. 7401, et seq.), which provides that the EPA shall promulgate a list of substances that “in the case of accidental release, are known to cause or may reas
onably be anticipated to cause death, injury, or serious adverse effects to human health or the environment (
42 U.S.C. 7412(r)(3)), the EPA promulgated two lists. Table 1 is titled “List of Regulated Toxic Substances and Threshold Quantities for Accidental Release Prevention,” and Table 3 is titled “List of Regulated Flammable Substances and Threshold Quantities for Accidental Release Prevention” (
40 CFR 68.130); (2) The chemicals from the Chemical Weapons Convention (CWC). Section 6701, et seq. of Title 22 of the United States Code implements the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction. The CWC covers three lists, or “schedules” of chemicals. Schedule 1 chemicals are provided in Supplement No. 1 to 15 CFR part 712, Schedule 2 chemicals are provided in Supplement No. 2 to 15 CFR part 713, and Schedule 3 chemicals are provided in Supplement No. 3 to 15 CFR part 714; and (3) Hazardous materials, including gases poisonous by inhalation (PIH) and explosive materials, which the Department of Transportation regulates. See 49 CFR 173.115(c), 49 CFR 173.50(b), and 49 CFR 172.101. The Department has also considered other categories of chemicals, such as chemicals that can be used as precursors for Improvised Explosive Devices (IEDs) and certain water-reactive materials that produce toxic gases.
The Department makes a few points with respect to the list in Appendix A. First, DHS is not using any existing list (e.g., the EPA RMP list) as its sole source, and DHS is not classifying all facilities on a list in one particular way (i.e., classifying all RMP facilities as high-risk). By using multiple sources at this initial phase, DHS believes it is obtaining a more complete picture of the universe of facilities that may qualify as high-risk. Second, in identifying the types and STQs of chemicals for Ap
pendix A, the Department has sought to be sufficiently inclusive of chemicals and quantities that might present a high level of risk under the statute without being overly inclusive and therefore capturing facilities which are unlikely to present a high level of risk.
--DHS believes that certain quantities of toxic, flammable, or explosive chemicals or materials, if released from a facility, have the potential for significant adverse consequences for human life or health.
2. Theft or Diversion
--DHS believes that certain chemicals or materials, if stolen or diverted, have the potential to be used as weapons or easily converted into weapons using simple chemistry, equipment or techniques in order to create significant adverse consequences for human life or health.
3. Sabotage or Contamination
--DHS believes that certain chemicals or materials, if mixed with readily-available materials, have the potential to create significant adverse consequences for human life or health.
1. Critical Relationship to Government Mission
--DHS believes that the loss of certain chemicals, materials, or facilities could create significant adverse consequences for national security or the ability of the government to deliver essential services.
2. Critical Relationship to National Economy
--DHS believes that the loss of certain chemicals, materials or facilities could create significant adverse consequences for the national or regional economy.
In the Advance Notice, DHS sought comment on proposed text for the interim final rule as well as on various implementation and policy issues concerning the chemical security program. DHS received a total of 106 public comments totaling more than 1,300 pages, including comments from thirty-two trade associations, thirty companies, thirteen private citizens, ten state agencies and associations, seven advocacy and safety groups, eight U.S. Representatives, five U.S. Senators, four unions, one Local Emergency P
lanning Committee, one professional association, one international standards committee, and the U.S. Small Business Administration.
The Advance Notice defined “Chemical Facility or facility” to mean “any facility that possesses or plans to possess, at any relevant point in time, a quantity of a chemical substance determined by the Secretary to be potentially dangerous or that meets other risk-related criterion identified by the Department. * * *” See proposed § 27.100.
While a few industry and State agency commenters supported this definition, commenters generally thought that the proposed definition was broad. In particular, several industry commenters, an industry association, a labor union, and a State agency thought the proposed definition was overly broad and consequently did not inform facilities about whether they would be regulated. They noted that the definition did not name the regulated chemical substances or the threshold quantities. One commenter argued that
DHS's failure to release to the public its proposed list of “potentially dangerous chemicals” and threshold amounts for those chemicals denies the public the opportunity to comment on key provisions of the rule that depend on whether the facility possess specified quantities of chemicals determined by DHS to be potentially dangerous. The commenter explained that it is difficult to comment on that aspect of the rule without knowing what the chemicals and thresholds are. An industry group cautioned that thre
shold quantities should be set high enough that retail establishments are not covered merely because they stock commercially acceptable quantities of commonly used chemicals. A few industry commenters and a member of Congress added that the definition of chemical facility should include the concepts of national security and economic criticality.
Several industry commenters supported the use of EPA's Risk Management Plan (RMP) program to help identify the initial group of regulated facilities. Commenters supported use of the RMP list of toxic substances as a basis for selecting chemical facilities. Likewise, one association felt that DHS should link its definition of chemical facility to those facilities covered by EPA's RMP, because it is a clear and defined list. The industry commenters noted, however, that not all RMP facilities should be conside
red high-risk. One commenter pointed out that RMP does not take into account facilities that may cause substantial impacts from multiple tanks. A few commenters also recommended that DHS should consider facilities in EPA's Toxic Release Inventory program or facilities that handle DOT hazardous materials.
One commenter emphasized that the rule could focus on toxic gases at RMP threshold quantities, but warned that the RMP program has a different purpose. The commenter indicated that worst-case scenarios under RMP may be based on unrealistic assumptions. Another commenter indicated that DHS should consider certain substances from the Chemical Weapons Convention list when assessing overall risk. Finally, some industry commenters objected to the phrase “possesses or plans to possess,” because the term implies l
egal title or ownership rather than simple presence at the facility.
Aside from the minor modification noted above, DHS is retaining the definition of chemical facility that it proposed in the Advance Notice. And while DHS is not defining “chemical facility” by listing specific chemicals, DHS is making available, with the issuance of this rule, a list of those chemicals and Screening Threshold Quantities (STQs) that it proposes to use to determine whether to further assess whether a chemical facility presents a high risk. Specifically, if a facility possesses any of the che
micals, at the corresponding quantities, in Appendix A (when finalized), the facility must complete and submit a Top-Screen within 60 calendar days. See
§ 27.200(b)(2) and § 27.210(a). The Department will continue to contact facilities individually and through additional Federal Register
notices, as necessary. See
§ 27.200(b)(1). To the extent the Department notifies facilities through an additional Federal Register
notice, the Department will engage in outreach activities with the chemical sector.
Finally, in response to specific comments above, the Department makes two additional points. The Department has retained the phrase “possesses or plans to possess.” DHS believes that phrase adequately captures the Department's intent. The plain meaning of those terms is not limited to ownership. Also, with respect to the commenter who cautioned that any types of threshold quantities should be high enough so that DHS does not cover all retail establishments that stock commercially acceptable quantities of co
mmonly used chemicals, DHS notes that it is aware of that issue. While DHS believes these STQs are set at levels that normally will not cover such retail establishments, DHS believes that, if a retail establishment does exceed any of these STQs, the retail establishment will have to complete the Top-Screen.
The second half of the definition of “Chemical Facility or facility” provides that the terms “shall also refer to the owner or operator of the chemical facility. Where multiple owners and/or operators function within a common infrastructure or within a single fenced area, the Assistant Secretary may determine that such owners and operators constitute multiple chemical facilities depending on the circumstances.” See § 27.105.
Comments were varied on the issue of multiple owners and operators. One industry commenter suggested that DHS should combine adjacent facilities under common ownership into a single facility, and other industry commenters thought that DHS should define certain adjacent facilities as less than the entire property. One industry commenter thought that DHS should allow facilities with multiple owners or operators to agree among themselves how to meet the requirements of this rule. A trade association noted tha
t some large chemical facilities have third-party warehouses and leasing agreements and that the owners of the chemical facility should be responsible for security.
DHS believes that it will generally be fairly straightforward for facilities to define their boundaries and identify the party (at their facility) that is responsible for compliance with the regulation. However, DHS acknowledges that, in some circumstances, the issue might be more complex. The Department will address these situations on a case-by-case basis. Both owners and operators of facilities, however, bear responsibility under the regulations for implementing measures that meet the regulatory standar