Classified Information

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

49 CFR Parts 1 and 8

[Docket No. OST-96-1427]

RIN: 2105-AC51

Classified Information

AGENCY: Office of the Secretary, DOT

ACTION: Final rule.

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SUMMARY: DOT revises its regulations regarding classification and

declassification of, and access to, classified information, and

delegates to the Assistant Secretary for Administration authority to

ensure compliance within DOT with the regulations and the underlying

Executive Orders. This action is taken in response to the President's

Regulatory Reinvention Initiative and in order to implement recent

Executive Orders.

DATES: This rule takes effect June 2, 1997.

FOR FURTHER INFORMATION CONTACT: Robert I. Ross, Office of the General

Counsel, C-10, Department of Transportation, Washington, DC 20590,

telephone (202) 366-9156, FAX (202) 366-9170.

SUPPLEMENTARY INFORMATION: In 1995, the President of the United States

issued two Executive Orders making substantial revisions to the rules

under which agencies of the Executive Branch, such as DOT, manage

information that requires special treatment in the interest of national

security. Briefly stated, Executive Order 12958 of April 17, 1995,

Classified National Security Information, requires that less

information be classified; and Executive Order 12968 of August 2, 1995,

Access to Classified Information, requires agencies to provide

administrative review of decisions to deny access to classified

information. This amendment seeks to implement both Orders. To foster

uniform administration within DOT, authority to ensure compliance is

being delegated to the Assistant Secretary for Administration.

Public comment was invited (61 FR 3886; July 1, 1996), but none was

received. The proposal is being promulgated without substantive change.

Analysis of regulatory impacts. This amendment is not a

``significant regulatory action'' within the meaning of Executive Order

12866. It is also not significant within the definition in DOT's

Regulatory Policies and Procedures, 49 FR 11034 (1979), in part because

it does not involve any change in important Departmental policies.

Because the economic impact should be minimal, further regulatory

evaluation is not necessary. Moreover, I certify that this amendment

will not have a significant economic impact on a substantial number of

small entities.

This amendment does not significantly affect the environment, and

therefore an environmental impact statement is not required under the

National Environmental Policy Act of 1969. It has also been reviewed

under Executive Order 12612, Federalism, and it has been determined

that it does not have sufficient implications for federalism to warrant

preparation of a Federalism Assessment.

Finally, the amendment does not contain any collection of

information requirements, requiring review under the Paperwork

Reduction Act of 1980.

List of Subjects

49 CFR Part 1

Authority delegations (government agencies), Organization and

functions (government agencies), Transportation Department.

49 CFR Part 8

Classified information. In accordance with the above, DOT amends 49

CFR, as follows:

PART 1 [AMENDED]

1. The authority citation for Part 1 continues to read as follows:

Authority: 49 U.S.C. 322.

2. In Sec. 1.59, a new paragraph (e) is added to read as follows:

Sec. 1.59 Delegations to the Assistant Secretary for Administration.

* * * * *

(e) * * *

(9) Ensure Department-wide compliance with Executive Orders 10450,

12829, 12958, 12968, and related regulations and issuances.

* * * * *

3. Part 8 is revised, to read as follows:

PART 8--CLASSIFIED INFORMATION: CLASSIFICATION/DECLASSIFICATION/

ACCESS

Subpart A--General

Sec.

8.1 Scope.

8.3 Applicability.

8.5 Definitions.

8.7 Spheres of responsibility.

Subpart B--Classification/Declassification of Information

8.9 Information Security Review Committee.

8.11 Authority to classify information.

8.13 Authority to downgrade or declassify.

8.15 Mandatory review for classification.

8.17 Classification challenges.

8.19 Procedures for submitting and processing requests for

classification reviews.

8.21 Burden of proof.

8.23 Classified information transferred to the Department of

Transportation.

Subpart C--Access to Information

8.25 Personnel Security Review Board.

8.27 Public availability of declassified information.

8.29 Access by historical researchers and former Presidential

appointees.

8.31 Industrial security.

Authority: E. O. 10450, 3 CFR, 1949-1953 Comp., p. 936; 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. 391.

Subpart A--General

Sec. 8.1 Scope.

This part sets forth procedures for the classification,

declassification, and availability of information that must be

protected in the interest of national security, in implementation of

Executive Order 12958 of April 17, 1995, ``Classified National Security

Information;'' and for the review of decisions to revoke, or not to

issue, national security information clearances, or to deny access to

[[Page 23662]]

classified information, under Executive Order 12968 of August 2, 1995,

``Access to National Security Information''.

Sec. 8.3 Applicability.

This part applies to all elements of the Department of

Transportation.

Sec. 8.5 Definitions.

As used in this part:

Classification means the act or process by which information is

determined to be classified information.

Classification levels means the following three levels at which

information may be classified:

(a) Top secret. Information that requires the highest degree of

protection, and the unauthorized disclosure of which could reasonably

be expected to cause exceptionally grave damage to the national

security that the original classification authority is able to identify

or describe.

(b) Secret. Information that requires a substantial degree of

protection, and the unauthorized disclosure of which could reasonably

be expected to cause serious damage to the national security that the

original classification authority is able to identify or describe.

(c) Confidential. Information that requires protection and the

unauthorized disclosure of which could reasonably be expected to cause

damage to the national security that the original classification

authority is able to identify or describe.

Classified information or ``classified national security

information'' means information that has been determined under

Executive Order 12958, or any predecessor or successor order, to

require protection against unauthorized disclosure, and is marked to

indicate its classified status when in documentary form.

Clearance means that an individual is eligible, under the standards

of Executive Orders 10450 and 12968 and appropriate DOT regulations,

for access to classified information.

Damage to the national security means harm to the national defense

or foreign relations of the United States from the unauthorized

disclosure of information, to include the sensitivity, value, and

utility of that information.

Declassification means the authorized change in the status of

information from classified information to unclassified information.

Downgrading means a determination by a declassification authority

that information classified and safeguarded at a specific level shall

be classified and safeguarded at a lower level.

Information means any knowledge that can be communicated, or

documentary material, regardless of its physical form or

characteristics, that is owned by, produced by or for, or is under the

control of the United States Government. ``Control'' means the

authority of the agency that originates information, or its successor

in function, to regulate access to the information.

Mandatory declassification review means the review for

declassification of classified information in response to a request for

declassification that qualifies under Section 3.6 of Executive Order

12958.

Original classification means an initial determination that

information requires, in the interest of national security, protection

against unauthorized disclosure.

Original classification authority means an individual authorized in

writing, either by the President or by agency heads or other officials

designated by the President, to classify information in the first

instance.

Sec. 8.7 Spheres of responsibility.

(a) Pursuant to Section 5.6(c) of Executive Order 12958, and to

section 6.1 of Executive Order 12968, the Assistant Secretary for

Administration is hereby designated as the senior agency official of

the Department of Transportation with assigned responsibilities to

assure effective compliance with and implementation of Executive Order

12958, Executive Order 12968, Office of Management and Budget

Directives, the regulations in this part, and related issuances.

(b) In the discharge of these responsibilities, the Assistant

Secretary for Administration will be assisted by the Director of

Security and Administrative Management, who, in addition to other

actions directed by this part, will evaluate the overall application of

and adherence to the security policies and requirements prescribed in

this part and who will report his/her findings and recommendations to

the Assistant Secretary for Administration, heads of Departmental

elements, and, as appropriate, to the Secretary.

(c) Secretarial Officers and heads of Departmental elements will

assure that the provisions in this part are effectively administered,

that adequate personnel and funding are provided for this purpose, and

that corrective actions that may be warranted are taken promptly.

Subpart B--Classification/Declassification of Information

Sec. 8.9 Information Security Review Committee.

(a) There is hereby established a Department of Transportation

Information Security Review Committee, which will have authority to:

(1) Act on all suggestions and complaints not otherwise resolved

with respect to the Department's administration of Executive Order

12958 and implementing directives, including those regarding

overclassification, failure to declassify, or delay in declassifying;

(2) Act on appeals of requests for classification reviews, and

appeals of requests for records under 5 U.S.C. 552 (Freedom of

Information Act) when the initial, and proposed final, denials are

based on continued classification of the record; and

(3) Recommend to the Secretary, when necessary, appropriate

administrative action to correct abuse or violation of any provision of

Executive Order 12598 and implementing directives.

(b) The Information Security Review Committee will be composed of

the Assistant Secretary for Administration, who will serve as Chair;

the General Counsel; and the Director of Security and Administrative

Management. When matters affecting a particular Departmental agency are

at issue, the Associate Administrator for Administration for that

agency, or the Chief of Staff for the U.S. Coast Guard, as the case may

be, will participate as an ad hoc member, together with the Chief

Counsel of that agency. Any regular member may designate a

representative with full power to serve in his/her place.

(c) In carrying out its responsibilities to review decisions to

revoke or not to issue clearances, or to deny access to classified

information, the Committee will establish whatever procedures it deems

fit.

Sec. 8.11 Authority to classify information.

(a) Executive Order 12958 confers upon the Secretary of

Transportation the authority to originally classify information as

SECRET or CONFIDENTIAL with further authorization to delegate this

authority.

(b) The following delegations of authority originally to classify

information as ``Secret'' or ``Confidential'', which may not be

redelegated, are hereby made:

(1) Office of the Secretary of Transportation. The Deputy

Secretary; Assistant Secretary for Administration; Director of

Intelligence and Security; Director of Security and Administrative

Management.

(2) United States Coast Guard. Commandant; Chief, Office of Law

Enforcement and Defense Operations.

[[Page 23663]]

(3) Federal Aviation Administration. Administrator; Assistant

Administrator for Civil Aviation Security.

(4) Maritime Administration. Administrator.

(c) Although the delegations of authority set out in paragraph (b)

of this section are expressed in terms of positions, the authority is

personal and is invested only in the individual occupying the position.

The authority may not be exercised ``by direction of'' a designated

official. The formal appointment or assignment of an individual to one

of the identified positions or a designation in writing to act in the

absence of one of these officials, however, conveys the authority

originally to classify information as ``SECRET''.

(d) Previous delegations and redelegations of authority within the

Department of Transportation originally to classify information are

hereby rescinded.

Sec. 8.13 Authority to downgrade or declassify.

Information originally classified by the Department may be

specifically downgraded or declassified by either the official

authorizing the original classification, if that official is still

serving in the same position, the originator's current successor in

function, a supervisory official of either, officials delegated

declassification authority in writing by the Secretary, or by the

Departmental Information Security Review Committee.

Sec. 8.15 Mandatory review for classification.

(a) All information classified by the Department of Transportation

under Executive Order 12958 or predecessor orders shall be subject to a

review for declassification if:

(1) the request for review describes the information with

sufficient specificity to enable its location with a reasonable amount

of effort; and

(2) the information has not been reviewed for declassification

within the prior two years. If the information has been reviewed within

the prior two years, or the information is the subject of pending

litigation, the requestor will be informed of this fact, and of the

Department's decision not to declassify the information and of his/her

right to appeal the Department's decision not to declassify the

information to the Interagency Security Classification Appeals Panel.

(b) All information reviewed for declassification because of a

mandatory review will be declassified if it does not meet the standards

for classification in Executive Order 12958. The information will then

be released unless withholding is otherwise authorized and warranted

under applicable law.

Sec. 8.17 Classification challenges.

(a) Authorized holders of information classified by the Department

of Transportation who, in good faith, believe that its classification

status is improper are encouraged and expected to challenge the

classification status of the information before the Departmental

Information Security Review Committee.

(1) No individual will be subject to retribution for bringing such

a challenge; and

(2) Each individual whose challenge is denied will be advised that

he/she may appeal to the Interagency Security Classification Appeals

Panel established by section 5.4 of Executive Order 12958.

(b) This classification challenge provision is not intended to

prevent an authorized holder of information classified by the

Department of Transportation from informally questioning the

classification status of particular information. Such information

inquiries should be encouraged as means to resolve classification

concerns and reduce the administrative burden of formal challenges.

Sec. 8.19 Procedures for submitting and processing requests for

classification reviews.

(a) The Director of Security and Administrative Management is

hereby designated as the official to whom a member of the public or

another department or agency should submit a request for a

classification review of classified information produced by or under

the primary cognizance of the Department. Elements of the Department

that receive a request directly will immediately notify the Director.

(b) If the request for classification review involves material

produced by or under the cognizance of the U.S. Coast Guard or the

Federal Aviation Administration, the Director will forward the request

to the headquarters security staff of the element concerned for action.

If the request involves material produced by other Departmental

elements, the Director will serve as the office acting on the request.

(c) The office acting on the request will:

(1) Immediately acknowledge receipt of the request and provide a

copy of the correspondence to the Director. If a fee for search of

records is involved pursuant to 49 CFR Part 7, the requester will be so

notified;

(2) Conduct a security review, which will include consultation with

the office that produced the material and with source authorities when

the classification, or exemption of material from automatic

declassification, was based upon determinations by an original

classifying authority; and

(3) Assure that the requester is notified of the determination

within 30 calendar days or given an explanation as to why further time

is necessary, and provide a copy of the notification to the Director.

(d) If the determination reached is that continued classification

is required, the notification to the requester will include, whenever

possible, a brief statement as to why the requested material cannot be

declassified. The notification will also advise the requester of the

right to appeal the determination to the Departmental Information

Security Review Committee. A requester who wishes to appeal a

classification review decision, or who has not been notified of a

decision after 60 calendar days, may submit an appeal to the

Departmental Information Security Review Committee.

(e) If the determination reached is that continued classification

is not required, the information will be declassified and the material

remarked accordingly. The office acting on the request will then refer

the request to the office originating the material or higher authority

to determine if it is otherwise withholdable from public release under

the Freedom of Information Act (5 U.S.C. 552) and the Department's

implementing regulations (49 CFR Part 7).

(1) If the material is available under the Freedom of Information

Act, the requester will be advised that the material has been

declassified and is available. If the request involves the furnishing

of copies and a fee is to be collected, the requester will be so

advised pursuant to 49 CFR Part 7, Departmental regulations

implementing the Freedom of Information Act.

(2) If the material is not available under the Freedom of

Information Act, the requester will be advised that the material has

been declassified but that the record is unavailable pursuant to the

Freedom of Information Act, and that the provisions concerning

procedures for reconsidering decisions not to disclose records,

contained in 49 CFR Part 7, apply.

(f) Upon receipt of an appeal from a classification review

determination based upon continued classification, the Departmental

Information Security Review Committee will acknowledge

[[Page 23664]]

receipt immediately and act on the matter within 30 calendar days. With

respect to information originally classified by or under the primary

cognizance of the Department, the Committee, acting for the Secretary,

has authority to overrule previous determinations in whole or in part

when, in its judgment, continued protection in the interest of national

security is no longer required. When the classification of the material

produced in the Department is based upon a classification determination

made by another department or agency, the Committee will immediately

consult with its counterpart committee for that department or agency.

(1) If it is determined that the material produced in the

Department requires continued classification, the requester will be so

notified and advised of the right to appeal the decision to the

Interagency Classification Review Committee.

(2) If it is determined that the material no longer requires

classification, it will be declassified and remarked. The Committee

will refer the request to the General Counsel, or to the head of the

Departmental agency concerned, as the case may be, to determine if the

material is otherwise withholdable from the public under the Freedom of

Information Act (5 U.S.C. 552) and Departmental regulations, (49 CFR

Part 7), and paragraphs (f)(1) and (2) of this section will be

followed. A copy of the response to the requester will be provided to

the Committee.

(g) Requests for a classification review of material more than 25

years old will be referred directly to the Archivist of the United

States and the requester will be notified of the referral. In this

event, the provisions of this section apply.

(h) Whenever a request is insufficient in the description of the

record sought, the requester will be asked to limit his request to

records that are reasonably obtainable. If, in spite of these steps,

the requester does not describe the records with sufficient

particularity, or the record requested cannot be obtained with a

reasonable amount of effort, the requester will be notified of the

reasons why the request is denied and of his/her right to appeal the

determination to the Departmental Information Security Review

Committee.

Sec. 8.21 Burden of proof.

For the purpose of determinations to be made under Secs. 8.13,

8.15, and 8.17, the burden of proof is on the originating Departmental

agency to show that continued classification is warranted.

Sec. 8.23 Classified information transferred to the Department of

Transportation.

(a) Classified information officially transferred to the Department

in conjunction with a transfer of function, and not merely for storage

purposes, will be considered to have been originated by the Department.

(b) Classified information in the custody of the Department

originated by a department or agency that has ceased to exist and for

whom there is no successor agency will be deemed to have been

originated by the Department. This information may be declassified or

downgraded by the Department after consultation with any other agency

that has an interest in the subject matter of the information. Such

agency will be allowed 30 calendar days in which to express an

objection, if it so desires, before action is taken. A difference of

opinion that cannot be resolved will be referred to the Departmental

Information Security Review Committee, which will consult with its

counterpart committee for the other agency.

(c) Classified information transferred to the National Archives and

Records Administration (NARA) will be declassified or downgraded by the

Archivist of the United States in accordance with Executive Order

12958, Departmental classification guides, and any existing procedural

agreement between NARA and the Department. The Department will take all

reasonable steps to declassify information contained in records

determined to have permanent historical value before they are

accessioned in NARA.

(d) To the extent practicable, the Department will adopt a system

of records management that will facilitate the public release of

documents at the time such documents are declassified under the

provisions of this part for automatic declassification. To the maximum

extent possible without destroying the integrity of the Department's

files, all such material will be segregated or set aside for public

release upon request. The Department will cooperate with the Archivist

in efforts to establish a Government-wide database of information that

has been declassified.

Subpart C--Access to Information

Sec. 8.25 Personnel Security Review Board.

(a) There is hereby established a Department of Transportation

Personnel Security Review Board, which will, on behalf of the Secretary

of Transportation (except in any case in which the Secretary personally

makes the decision), make the administratively final decision on an

appeal arising in any part of the Department from:

(1) A decision not to grant access to classified information;

(2) A decision to revoke access to classified information; or

(3) A decision under Sec. 8.29 to deny access to classified

information.

(b) The Personnel Security Review Board will be composed of:

(1) two persons appointed by the Assistant Secretary for

Administration: one from the Office of Personnel and Training, and one,

familiar with personnel security adjudication, from the Office of

Security and Administrative Management, who will serve as Chair;

(2) one person appointed by the General Counsel, who, in addition

to serving as a member of the Board, will provide to the Board whatever

legal services it may require; and

(3) one person appointed by each of the Commandant of the Coast

Guard and the Federal Aviation Administrator.

(4) Any member may designate a representative, meeting the same

criteria as the member, with full power to serve in his/her place.

(c) In carrying out its responsibilities to review final decisions

to revoke or deny access to classified information, the Board will

establish whatever procedures it deems fit.

Sec. 8.27 Public availability of declassified information.

(a) It is a fundamental policy of the Department to make

information available to the public to the maximum extent permitted by

law. Information that is declassified for any reason loses its status

as material protected in the interest of national security.

Accordingly, declassified information will be handled in every respect

on the same basis as all other unclassified information. Declassified

information is subject to the Departmental public information policies

and procedures, with particular reference to the Freedom of Information

Act (5 U.S.C. 552) and implementing Departmental regulations (49 CFR

Part 7).

(b) In furtherance of this policy, all classified material produced

after June 1, 1972 that is of sufficient historical or other value to

warrant preservation as permanent records in accordance with

appropriate records administrative standards, and that becomes

declassified, will be systematically reviewed prior to the end of each

calendar year for the purpose of making the material publicly

available. To the maximum extent possible without destroying the

integrity of the Department's files, all such material will

[[Page 23665]]

be segregated or set aside for public release upon request.

Sec. 8.29 Access by historical researchers and former Presidential

appointees.

(a) Historical researchers. (1) Persons outside the executive

branch who are engaged in historical research projects may have access

to classified information provided that:

(i) Access to the information is clearly consistent with the

interests of national security; and

(ii) The person to be granted access is trustworthy.

(2) The provisions of this paragraph apply only to persons who are

conducting historical research as private individuals or under private

sponsorship and do not apply to research conducted under Government

contract or sponsorship. The provisions are applicable only to

situations where the classified information concerned, or any part of

it, was originated by the Department or its contractors, or where the

information, if originated elsewhere, is in the sole custody of the

Department. Any person requesting access to material originated in

another agency or to information under the exclusive jurisdiction of

the National Archives and Records Administration (NARA) will be

referred to the other agency or to NARA, as appropriate.

(3) When a request for access to classified information for

historical research is received, it will be referred to the appropriate

local security office. That office will obtain from the applicant

completed Standard Form 86, Questionnaire for National Security

Positions, in triplicate, and Standard Form 87, Fingerprint Chart; a

statement in detail to justify access, including identification of the

kind of information desired and the organization or organizations, if

any, sponsoring the research; and a written statement (signed, dated,

and witnessed) with respect to the following:

(i) That the applicant will abide by regulations of the Department:

(A) To safeguard classified information; and

(B) To protect information that has been determined to be

proprietary or privileged and is therefore not eligible for public

dissemination.

(ii) That the applicant understands that any classified information

that the applicant receives affects the security of the United States.

(iii) That the applicant acknowledges an obligation to safeguard

classified information or privileged information of which the applicant

gains possession or knowledge as a result of the applicant's access to

files of the Department.

(iv) That the applicant agrees not to reveal to any person or

agency any classified information or privileged information obtained as

a result of the applicant's access except as specifically authorized in

writing by the Department, and further agrees that the applicant shall

not use the information for purposes other than those set forth in the

applicant's application.

(v) That the applicant agrees to authorize a review of the

applicant's notes and manuscript for the sole purpose of determining

that no classified information or material is contained therein.

(vi) That the applicant understands that failure to abide by

conditions of this statement will constitute sufficient cause for

canceling the applicant's access to classified information and for

denying the applicant any future access, and may subject the applicant

to criminal provisions of Federal law as referred to in this statement.

(vii) That the applicant is aware and fully understands that title

18, United States Code, Crimes and Criminal Procedures, and the

Internal Security Act of 1950, as amended, title 50, United States

Code, prescribe, under certain circumstances, criminal penalties for

the unauthorized disclosure of information respecting the national

security, and for loss, destruction, or compromise of such information.

(viii) That this statement is made to the U.S. Government to enable

it to exercise its responsibilities for the protection of information

affecting the national security.

(ix) That the applicant understands that any material false

statement that the applicant makes knowingly and willfully will subject

the applicant to the penalties of 18 U.S.C. 1001.

(4) The security office will process the forms in the same manner

as specified for a preappointment national agency check for a critical-

sensitive position. Upon receipt of the completed national agency

check, the security office, if warranted, may determine that access by

the applicant to the information will be clearly consistent with the

interests of national security and the person to be granted access is

trustworthy. If deemed necessary, before making its determination, the

office may conduct or request further investigation. Before access is

denied in any case, the matter will be referred through channels to the

Director of Security and Administrative Management for review and

submission to the Personnel Security Review Board for final review.

(5) If access to TOP SECRET or intelligence or communications

security information is involved a special background investigation is

required. However, this investigation will not be requested until the

matter has been referred through channels to the Director of Security

and Administrative Management for determination as to adequacy of the

justification and the consent of other agencies as required.

(6) When it is indicated that an applicant's research may extend to

material originating in the records of another agency, approval must be

obtained from the other agency prior to the grant of access.

(7) Approvals for access will be valid for the duration of the

current research project but no longer than 2 years from the date of

issuance, unless renewed. If a subsequent request for similar access is

made by the individual within one year from the date of completion of

the current project, access may again be granted without obtaining a

new National Agency Check. If more than one year has elapsed, a new

National Agency Check must be obtained. The local security office will

promptly advise its headquarters security staff of all approvals of

access granted under the provisions of this section.

(8) An applicant may be given access only to that classified

information that is directly pertinent to the applicant's approved

project. The applicant may review files or records containing

classified information only in offices under the control of the

Department. Procedures must be established to identify classified

material to which the applicant is given access. The applicant must be

briefed on local procedures established to prevent unauthorized access

to the classified material while in the applicant's custody, for the

return of the material for secure storage at the end of the daily

working period, and for the control of the applicant's notes until they

have been reviewed. In addition to the security review of the

applicant's manuscript, the manuscript must be reviewed by appropriate

offices to assure that it is technically accurate insofar as material

obtained from the Department is concerned, and is consistent with the

Department's public release policies.

(b) Former Presidential appointees. Persons who previously occupied

policymaking positions to which they were appointed by the President

may be granted access to classified information or material that they

originated, reviewed, signed, or received, while in public office,

provided that:

(1) It is determined that such access is clearly consistent with

the interests of national security; and

[[Page 23666]]

(2) The person agrees to safeguard the information, to authorize a

review of the person's notes to assure that classified information is

not contained therein, and that the classified information will not be

further disseminated or published.

Sec. 8.31 Industrial security.

(a) Background. The National Industrial Security Program was

established by Executive Order 12829 of January 6, 1993 for the

protection of information classified pursuant to Executive Order 12356

of April 2, 1982, National Security Information, or its predecessor or

successor orders, and the Atomic Energy Act of 1954, as amended. The

Secretary of Defense serves as the Executive Agent for inspecting and

monitoring contractors, licensees, grantees, and certificate holders

that require or will require access to, or that store or will store,

classified information, and for determining the eligibility for access

to classified information of contractors, licensees, certificate

holders, and grantees, and their respective employees.

(b) Implementing regulations. The Secretary of Transportation has

entered into agreement for the Secretary of Defense to render

industrial security services for the Department of Transportation.

Regulations prescribed by the Secretary of Defense to fulfill the

provisions of Executive Order 12829 have been extended to protect

release of classified information for which the Secretary of

Transportation is responsible. Specifically, this regulation is DOD

5220.22-M, National Industrial Security Program Operating Manual. This

regulation is effective within the Department of Transportation, which

functions as a User Agency as prescribed in the regulation. Appropriate

security staffs, project personnel, and contracting officers assure

that actions required by the regulation are taken.

Issued in Washington, DC, on March 24, 1997.

Rodney E. Slater,

Secretary of Transportation.

[FR Doc. 97-9787 Filed 4-30-97; 8:45 am]

BILLING CODE 4910-62-P