Conformance to National Policies for Access to and Protection of Classified Information

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Federal Register › Vol. 63 › 63 FR 41206

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Text

Proposed Rules

Federal Register

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Proposed Rules

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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 10, 11, 25, and 95

RIN 3150-AF97

Conformance to National Policies for Access to and Protection of

Classified Information

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is amending its

regulations to conform the requirements for the protection of and

access to classified information to new national security policy

documents. This proposed rule is necessary to ensure that classified

information in the possession of NRC licensees, certificate holders,

and others under the NRC's regulatory requirements is protected in

accordance with current national policies. Additionally, changes have

been made to address new requirements for the control of foreign

visitors at certain sites. Also, some editorial changes are being made

to reflect a reorganization within the NRC Office of Administration.

DATES: The comment period expires October 2, 1998. Comments received

after this date will be considered if it is practical to do so, but the

Commission is able to assure consideration only for comments received

on or before this date. Comments may be submitted either electronically

or in written form.

changes are being made

to reflect a reorganization within the NRC Office of Administration.

DATES: The comment period expires October 2, 1998. Comments received

after this date will be considered if it is practical to do so, but the

Commission is able to assure consideration only for comments received

on or before this date. Comments may be submitted either electronically

or in written form.

ADDRESSES: For written comments, the Secretary of the Commission, U.S.

Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention:

Rulemaking and Adjudications Staff. Copies of comments received may be

examined at the NRC Public Document Room, 2120 L Street NW. (Lower

Level), Washington, DC.

You may also provide comments via the NRC's interactive rulemaking

web site through the NRC home page

(http://www.nrc.gov). From the home page, select ``Rulemaking'' from

the tool bar. The interactive rulemaking web site can then be accessed

by selecting ``Rulemaking Forum.'' This site provides the ability to

upload comments as files (any format), if your web browser supports

that function. For information about the interactive rulemaking web

site, contact Ms. Carol Gallagher, (301) 415-5905; e-mail [email protected].

Single copies of this proposed rulemaking may be obtained by

written request to Reproduction and Distribution Services Section ,

U.S. Nuclear Regulatory Commission, Washington DC 20555, or by faxing a

request to (301) 415-2289. Certain documents related to this

rulemaking, including comments received, may be examined at the NRC

Public Document Room, 2120 L Street NW (Lower Level), Washington, DC.

These same documents may also be viewed and downloaded electronically

via the rulemaking web site as indicated above.

FOR FURTHER INFORMATION CONTACT: Duane G. Kidd, Division of Facilities

and Security, Office of Administration, U.S. Nuclear Regulatory

Commission, Washington, DC 20555-0001 telephone (301) 415-7403, E-mail

[email protected].

SUPPLEMENTARY INFORMATION:

Background

ington, DC.

These same documents may also be viewed and downloaded electronically

via the rulemaking web site as indicated above.

FOR FURTHER INFORMATION CONTACT: Duane G. Kidd, Division of Facilities

and Security, Office of Administration, U.S. Nuclear Regulatory

Commission, Washington, DC 20555-0001 telephone (301) 415-7403, E-mail

[email protected].

SUPPLEMENTARY INFORMATION:

Background

The national requirements for the protection of and access to

Classified National Security Information have been revised by the

issuance of the National Industrial Security Program Operating Manual

(NISPOM), Executive Order 12958, ``Classified National Security

Information,''dated April 17, 1995, and Executive Order 12968, ``Access

to Classified Information,'' dated August 2, 1995. In order to conform

to these national security policy documents, the NRC must revise its

regulations for the protection of classified information. The

requirements of 10 CFR parts 25 and 95 are substantially based on

Executive Orders 12958 and 12968.

The proposed rule would amend the provisions of 10 CFR parts 10,

11, 25, and 95 that deal with requirements for access to and protection

of classified information that have been changed or added by the

NISPOM, the Executive Orders, or new national guidelines on the scope

and adjudication of personnel security investigations. Specifically,

changes include a new definition in 10 CFR part 10 for the ``Personnel

Security Review Panel'' and revisions to a number of definitions in all

four parts to reflect a change in the name of the Division of Security

to the Division of Facilities and Security

NISPOM, the Executive Orders, or new national guidelines on the scope

and adjudication of personnel security investigations. Specifically,

changes include a new definition in 10 CFR part 10 for the ``Personnel

Security Review Panel'' and revisions to a number of definitions in all

four parts to reflect a change in the name of the Division of Security

to the Division of Facilities and Security. Additionally, several

changes to definitions were made to reflect a change in responsibility

for certain decisions from the Executive Director for Operations to the

Deputy Executive Director for Management Services; revised due process

procedures; a new requirement for a facility clearance for those

licensees or others who require access to classified information at a

facility other than their own; additional information on the scope and

reporting requirements for the Foreign Ownership, Control, or Influence

(FOCI) program; a requirement to resubmit an updated Security Practice

Procedures Plan every five years; a requirement for a visitor control

program; and greater specificity as to when particular reports are

required. The proposed rule addresses the intent of Executive Order

12829, ``National Industrial Security Program,'' to reduce wasteful and

inefficient duplicative oversight of private facilities which have

classified interests from more than one Government agency.

The proposed rule would also adopt new requirements in areas where

the executive orders, the NISPOM, or the adjudicative guidelines

require specific procedures not included in the previous versions of

the rules

nal Industrial Security Program,'' to reduce wasteful and

inefficient duplicative oversight of private facilities which have

classified interests from more than one Government agency.

The proposed rule would also adopt new requirements in areas where

the executive orders, the NISPOM, or the adjudicative guidelines

require specific procedures not included in the previous versions of

the rules. These new requirements include: the change to a three member

Personnel Security Review Panel from three Review Examiners, acting

individually, reviewing the record of a case where an individual's

eligibility for access authorization or employment clearance is in

question; an explicit notification that individuals whose eligibility

for access authorization or employment clearance is in question have

the right to be represented by counsel or other representative at their

own expense and that they have a right to the documents, records, and

reports which form the basis for the question of their eligibility, to

the extent the documents would be available to them under the Freedom

of Information Act or Privacy Act, and to the entire investigative

file, as permitted by national security and other applicable law; a

change to the period

between reinvestigations for ``L'' and ``R'' access authorizations from

five years to ten years; a change to the fee schedules of 10 CFR parts

11 and 25 due to a change in the investigative requirements for ``Q,''

``L,'' ``U,'' and ``R'' access authorizations; and changing the

security classification markings to conform to Executive Order 12958;

The proposed rule also republishes for additional public comment

Secs. 25.15 and 95.35 which address the personnel security

investigative requirements for access to Secret Restricted Data

11 and 25 due to a change in the investigative requirements for ``Q,''

``L,'' ``U,'' and ``R'' access authorizations; and changing the

security classification markings to conform to Executive Order 12958;

The proposed rule also republishes for additional public comment

Secs. 25.15 and 95.35 which address the personnel security

investigative requirements for access to Secret Restricted Data. These

proposed changes were originally published as a proposed rulemaking on

August 5, 1996 (61 FR 40555), and would have permitted access to most

Secret Restricted Data, other than that defined as ``Critical Secret

Restricted Data'' (that term is no longer used but the concept

continues to be used for selected types of Secret Restricted Data) in

the NISPOM and its supplement, with an ``L'' clearance based on a

National Agency Check with Law and Credit investigation (NACLC). The

Department of Energy (DOE) objected to this change in their formal

comments on that proposed rule, recommending that, pending

determination of what constitutes the most sensitive Restricted Data

and its upgrade to Top Secret, all personnel with access to Secret

Restricted Data continue to have a ``Q'' clearance based on a Single

Scope Background Investigation (SSBI). Given DOE's special statutory

authorities in establishing controls for Restricted Data, their views

required special consideration. However, because this requirement may

exceed the requirements of applicable national policy (i.e., the

NISPOM), and result in additional costs to licensees and certificate

holders, the NRC decided to withdraw the changes to Secs. 25.15 and

95.35 in the final rulemaking which was published on April 11, 1997 (62

FR 17683), and to republish them later for additional public comment to

provide interested parties an equal opportunity to address the issues

and provide supporting rationale for their recommendations and

comments.

Environmental Impact: Categorical Exclusion

ers, the NRC decided to withdraw the changes to Secs. 25.15 and

95.35 in the final rulemaking which was published on April 11, 1997 (62

FR 17683), and to republish them later for additional public comment to

provide interested parties an equal opportunity to address the issues

and provide supporting rationale for their recommendations and

comments.

Environmental Impact: Categorical Exclusion

The NRC has determined that this proposed rule is the type of

action described in categorical exclusion 10 CFR 51.22(c)(2).

Therefore, neither an environmental impact statement nor an

environmental assessment has been prepared for this proposed rule.

Paperwork Reduction Act Statement

This proposed rule amends information collection requirements that

are subject to the Paperwork Reduction Act (44 U.S.C. 3501, et seq.).

This rule has been submitted to the Office of Management and Budget for

review and approval of the information collection requirements.

The public reporting burden for this collection of information is

estimated to average 8.3 hours per response, including the time for

reviewing instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the

collection of information. The NRC is seeking public comment on the

potential impact of the collection of information contained in the

proposed rule and on the following issues:

1. Is the proposed collection of information necessary for the

proper performance of the functions of the NRC, including whether the

information will have practical utility?

2. Is the estimate of burden accurate?

3. Is there a way to enhance the quality, utility, and clarity of

the information to be collected?

ion of information contained in the

proposed rule and on the following issues:

1. Is the proposed collection of information necessary for the

proper performance of the functions of the NRC, including whether the

information will have practical utility?

2. Is the estimate of burden accurate?

3. Is there a way to enhance the quality, utility, and clarity of

the information to be collected?

4. How can the burden of the information collection be minimized,

including the use of automated collection techniques?

Send comments on any aspect of this proposed collection of

information, including suggestions for reducing the burden, to the

Information and Records Management Branch (T-6 F33), U.S. Nuclear

Regulatory Commission, Washington, DC 20555-0001, or by Internet

electronic mail at [email protected]; and to the Desk Officer, Office of

Information and Regulatory Affairs, NEOB-10202, (3150-0046, -0047),

Office of Management and Budget, Washington, DC 20503. Comments to OMB

on the collections of information or on the above issues should be

submitted by September 2, 1998. Comments received after this date will

be considered if it is practical to do so, but assurance of

consideration cannot be given to comments received after this date.

Public Protection Notification

If an information collection requirement does not display a

currently valid OMB control number, the NRC may not conduct or sponsor,

and a person is not required to respond to, the information collection.

Regulatory Analysis

The Commission has prepared a regulatory analysis for this proposed

regulation. The analysis examines the costs and benefits of the

alternatives considered by the Commission. The analysis is available

for inspection in the NRC Public Document Room, 2120 L Street, NW

(Lower Level), Washington, DC. Single copies of the analysis may be

obtained from Duane G. Kidd, Division of Security, Office of

Administration, U. S. Nuclear Regulatory Commission, Washington, DC

20555, telephone: (301) 415-7403.

he costs and benefits of the

alternatives considered by the Commission. The analysis is available

for inspection in the NRC Public Document Room, 2120 L Street, NW

(Lower Level), Washington, DC. Single copies of the analysis may be

obtained from Duane G. Kidd, Division of Security, Office of

Administration, U. S. Nuclear Regulatory Commission, Washington, DC

20555, telephone: (301) 415-7403.

Regulatory Flexibility Certification

As required by the Regulatory Flexibility Act of 1980, 5 U.S.C.

605(b), the Commission certifies that this rule, if adopted, will not

have a significant economic impact upon a substantial number of small

entities. The NRC carefully considered the effect on small entities in

developing this proposed rule on the protection of classified

information and have determined that none of the facilities affected by

this rule would qualify as a small entity under the NRC's size

standards (10 CFR 2.810).

Backfit Analysis

The NRC has determined that the backfit rule, 10 CFR 50.109,

applies to this rulemaking initiative because it falls within the

criteria of 10 CFR 50.109(a)(1). However, a backfit analysis is not

required because this rulemaking qualifies for exemption under 10 CFR

50.109(a)(4)(iii) that reads: ``That the regulatory action involves * *

* redefining what level of protection to the * * * common defense and

security should be regarded as adequate.''

List of Subjects

10 CFR Part 10

Administrative practice and procedure, Classified information,

Criminal penalties, Investigations, Security measures.

10 CFR Part 11

Hazardous materials--transportation, Investigations, Nuclear

Materials, Reporting and recordkeeping requirements, Security measures,

Special nuclear material.

10 CFR Part 25

Classified information, Criminal penalties, Investigations,

Reporting and recordkeeping requirements, Security measures.

10 CFR Part 95

ormation,

Criminal penalties, Investigations, Security measures.

10 CFR Part 11

Hazardous materials--transportation, Investigations, Nuclear

Materials, Reporting and recordkeeping requirements, Security measures,

Special nuclear material.

10 CFR Part 25

Classified information, Criminal penalties, Investigations,

Reporting and recordkeeping requirements, Security measures.

10 CFR Part 95

Classified information, Criminal penalties, Reporting and

recordkeeping requirements, Security measures.

For the reasons set out in the preamble and under the authority of

the Atomic Energy Act of 1954, as amended; the Energy Reorganization

Act of 1974, as amended; and 5 U.S.C. 553; the NRC proposes to adopt

the following

amendments to 10 CFR parts 10, 11, 25, and 95.

PART 10--CRITERIA AND PROCEDURES FOR DETERMINING ELIGIBILITY FOR

ACCESS TO RESTRICTED DATA OR NATIONAL SECURITY INFORMATION OR AN

EMPLOYMENT CLEARANCE

1. The authority citation for part 10 is revised to read as

follows:

Authority: Secs. 145, 161, 68 Stat. 942, 948, as amended (42

U.S.C. 2165, 2201); sec. 201, 88 Stat. 1242, as amended (42 U.S.C.

5841); E.O. 10450, 3 CFR Parts 1949-1953 COMP., p. 936, as amended;

E.O. 10865, 3 CFR 1959-1963 COMP., p. 398, as amended; 3 CFR Table

4.; E.O. 12968, 3 CFR 1995 COMP., p. 396.

2. Section 10.1 is revised to read as follows:

Sec. 10.1 Purpose.

(a) This part establishes the criteria, procedures, and methods for

resolving questions concerning:

(1) The eligibility of individuals who are employed by or

applicants for employment with NRC contractors, agents, and licensees

of the NRC, individuals who are NRC employees or applicants for NRC

employment, and other persons designated by the Deputy Executive

Director for Management Services of the NRC, for access to Restricted

Data pursuant to the Atomic Energy Act of 1954, as amended, and the

Energy Reorganization Act of 1974, or for access to national security

information; and

C contractors, agents, and licensees

of the NRC, individuals who are NRC employees or applicants for NRC

employment, and other persons designated by the Deputy Executive

Director for Management Services of the NRC, for access to Restricted

Data pursuant to the Atomic Energy Act of 1954, as amended, and the

Energy Reorganization Act of 1974, or for access to national security

information; and

(2) The eligibility of NRC employees, or the eligibility of

applicants for employment with the NRC, for employment clearance.

(b) This part is published to implement the Atomic Energy Act of

11954, as amended, the Energy Reorganization Act of 1974, as amended,

Executive Order 10865, 25 FR 1583 (February 24, 1960) Executive Order

10450, 18 FR 2489 (April 27, 1954), and Executive Order 12968, 60 FR

40245 (August 2, 1995).

3. In Sec. 10.2, paragraph (d) is revised to read as follows:

Sec. 10.2 Scope.

* * * * *

(d) Any other person designated by the Deputy Executive Director

for Management Services of the Nuclear Regulatory Commission.

4. In Sec. 10.5, the introductory text is removed, the paragraph

designations preceding each of the defined terms are removed, the

definitions are rearranged in alphabetical order, and the definitions

of Access Authorization, Employment Clearance, National Security

Information, and NRC Personnel Security Review Panel are revised to

read as follows:

Sec. 10.5 Definitions.

ulatory Commission.

4. In Sec. 10.5, the introductory text is removed, the paragraph

designations preceding each of the defined terms are removed, the

definitions are rearranged in alphabetical order, and the definitions

of Access Authorization, Employment Clearance, National Security

Information, and NRC Personnel Security Review Panel are revised to

read as follows:

Sec. 10.5 Definitions.

Access authorization means an administrative determination that an

individual (including a consultant) who is employed by or an applicant

for employment with the NRC, NRC contractors, agents, and licensees of

the NRC, or other person designated by the Deputy Executive Director

for Management Services, is eligible for a security clearance for

access to Restricted Data or National Security Information.

* * * * *

Employment Clearance means an administrative determination that an

individual (including a consultant) who is an NRC employee or applicant

for NRC employment and other persons designated by the Deputy Executive

Director for Management Services of the NRC is eligible for employment

or continued employment pursuant to subsection 145(b). of the Atomic

Energy Act of 1954, as amended.

* * * * *

National Security Information means information that is owned by,

produced for or by, or under the control of the United States

Government, and that has been determined, pursuant to Executive Order

12958 or antecedent orders, to require protection against unauthorized

disclosure, and is so designated.

* * * * *

NRC Personnel Security Review Panel means an appeal panel appointed

by the Deputy Executive Director for Management Services and consisting

of three members, two of whom shall be selected from outside the

security field. One member of the Panel shall be designated as

Chairman.

* * * * *

5. In Sec. 10.10 the introductory text of paragraph (d) is revised

to read as follows:

Sec. 10.10 Application of the criteria.

* * * * *

nel means an appeal panel appointed

by the Deputy Executive Director for Management Services and consisting

of three members, two of whom shall be selected from outside the

security field. One member of the Panel shall be designated as

Chairman.

* * * * *

5. In Sec. 10.10 the introductory text of paragraph (d) is revised

to read as follows:

Sec. 10.10 Application of the criteria.

* * * * *

(d) In resolving a question concerning the eligibility or continued

eligibility of an individual for access authorization and/or employment

clearance, the following principles shall be applied by the Director,

Division of Facilities and Security, Hearing Examiners, and the NRC

Personnel Security Review Panel:

* * * * *

6. In Sec. 10.12, paragraphs (a) and (c) are revised to read as

follows:

Sec. 10.12 Interview and other investigation.

(a) The Director, Division of Facilities and Security, Office of

Administration, may authorize the granting of access authorization and/

or employment clearance on the basis of the information in the

possession of the NRC or may authorize the conduct of an interview with

the individual, if the individual consents to be interviewed, or such

other investigation as the Director deems appropriate. On the basis of

such interview and/or investigation, the Director may authorize the

granting of access authorization and/or employment clearance.

* * * * *

make a favorable finding regarding the eligibility of an individual for

access authorization and/or employment clearance, the question of the

individual's eligibility shall be resolved in accordance with the

procedures set forth in Sec. 10.20 et seq.

7. Section 10.20 is revised to read as follows:

Sec. 10.20 Purpose of the procedures.

the Director, Division of Facilities and Security, cannot

make a favorable finding regarding the eligibility of an individual for

access authorization and/or employment clearance, the question of the

individual's eligibility shall be resolved in accordance with the

procedures set forth in Sec. 10.20 et seq.

7. Section 10.20 is revised to read as follows:

Sec. 10.20 Purpose of the procedures.

These procedures establish methods for the conduct of hearings and

administrative review of questions concerning an individual's

eligibility for access authorization and/or employment clearance

pursuant to the Atomic Energy Act of 1954, as amended, and Executive

Orders 10450, 10865, and 12968 when a resolution favorable to the

individual cannot be made on the basis of the interview or other

investigation.

8. Section 10.21 is revised to read as follows:

Sec. 10.21 Suspension of access authorization and/or employment

clearance.

In those cases where information is received which raises a

question concerning the continued eligibility of an individual for

access authorization and/or employment clearance, the Director,

Division of Facilities and Security, through the Director, Office of

Administration, shall forward to the Deputy Executive Director for

Management Services or other Deputy Executive Director, his or her

recommendation as to whether the individual's access authorization and/

or employment clearance should be suspended pending the final

determination resulting from the operation of the procedures provided

in this part. In making this recommendation the Director, Division of

Facilities and Security, shall consider such factors as the seriousness

of the derogatory information developed, the degree of access of the

individual to classified information, and the individual's opportunity

by reason of

e suspended pending the final

determination resulting from the operation of the procedures provided

in this part. In making this recommendation the Director, Division of

Facilities and Security, shall consider such factors as the seriousness

of the derogatory information developed, the degree of access of the

individual to classified information, and the individual's opportunity

by reason of

his or her position to commit acts adversely affecting the national

security. An individual's access authorization and/or employment

clearance may not be suspended except by the direction of the Deputy

Executive Director for Management Services or other Deputy Executive

Director.

9. Section 10.22 is revised to read as follows:

Sec. 10.22 Notice to individual.

A notification letter, prepared by the Division of Facilities and

Security, approved by the Office of General Counsel, and signed by the

Director, Office of Administration, shall be presented to each

individual whose eligibility for access authorization and/or employment

clearance is in question. Where practicable, such letter shall be

presented to the individual in person. The letter will be accompanied

by a copy of this part and shall state:

(a) That reliable information in the possession of the NRC has

created a substantial doubt concerning the individual's eligibility for

access authorization and/or employment clearance;

(b) That information that creates a substantial doubt regarding the

individual's eligibility for access authorization and/or employment

clearance shall be as comprehensive and detailed as the national

security interests and other applicable law permit;

or other representative at their own expense;

and/or employment clearance;

(b) That information that creates a substantial doubt regarding the

individual's eligibility for access authorization and/or employment

clearance shall be as comprehensive and detailed as the national

security interests and other applicable law permit;

or other representative at their own expense;

(d) That the individual may request within 20 days of the date of

the notification letter, any documents, records and reports which form

the basis for the question of their eligibility for access

authorization and/or employment clearance, to the extent the documents

would be provided if requested under the Freedom of Information or the

Privacy Act; and to request the entire investigative file, as permitted

by the national security and other applicable law;

(e) That unless the individual files with the Director, Office of

Administration, a written request for a hearing within 20 days of the

individual's receipt of the notification letter or 20 days after

receipt of the information provided in response to a request made under

paragraph (d) of this section, whichever is later, the Director,

Division of Facilities and Security, through the Director, Office of

Administration, will submit a recommendation as to the final action to

the Deputy Executive Director for Management Services on the basis of

the information in the possession of the NRC;

receipt of the information provided in response to a request made under

paragraph (d) of this section, whichever is later, the Director,

Division of Facilities and Security, through the Director, Office of

Administration, will submit a recommendation as to the final action to

the Deputy Executive Director for Management Services on the basis of

the information in the possession of the NRC;

(f) That if the individual files a written request for a hearing

with the Director, Office of Administration, the individual must file

with that request a written answer under oath or affirmation which

admits or denies specifically each allegation and each supporting fact

contained in the notification letter. A general denial is not

sufficient to controvert a specific allegation. If the individual is

without knowledge, he or she shall so state and that statement shall

operate as a denial. The answer shall also state any additional facts

and information that the individual desires to have considered in

explanation or mitigation of allegations in the notification letter.

Failure to specifically deny or explain or deny knowledge of any

allegation or supporting fact shall be deemed an admission that the

allegation or fact is true.

(g) That if the individual does not want to exercise his or her

right to a hearing, but does want to submit an answer to the

allegations in the notification letter, the individual may do so by

filing with the Director, Office of Administration, within 20 days of

his receipt of the notification letter or 20 days after receipt of the

information provided in response to a request made under paragraph (d)

of this section, whichever is later, a written answer in accordance

with the requirements of paragraph (f) of this section;

(h) That the procedures in Sec. 10.24 et seq. shall apply to any

hearing and review.

10. In Sec. 10.23, paragraph (a) is revised to read as follows:

Sec. 10.23 Failure of individual to request a hearing.

rmation provided in response to a request made under paragraph (d)

of this section, whichever is later, a written answer in accordance

with the requirements of paragraph (f) of this section;

(h) That the procedures in Sec. 10.24 et seq. shall apply to any

hearing and review.

10. In Sec. 10.23, paragraph (a) is revised to read as follows:

Sec. 10.23 Failure of individual to request a hearing.

(a) In the event the individual fails to file a timely written

request for a hearing pursuant to Sec. 10.22, a recommendation as to

the final action to be taken shall be made by the Director, Division of

Facilities and Security, through the Director, Office of

Administration, to the Deputy Executive Director for Management

Services on the basis of the information in the possession of the NRC,

including any answer filed by the individual.

* * * * *

11. In Sec. 10.25, paragraphs (a) and (c) are revised to read as

follows:

Sec. 10.25 NRC Hearing Counsel.

(a) Hearing Counsel assigned pursuant to Sec. 10.24 shall, before

the scheduling of the hearing, review the information in the case and

shall request the presence of witnesses and the production of documents

and other physical evidence relied upon by the Director, Division of

Facilities and Security, in making his or her finding that a question

exists regarding the eligibility of the individual for NRC access

authorization and/or employment clearance in accordance with the

provisions of this part. When the presence of a witness and the

production of documents and other physical evidence is deemed by the

Hearing Counsel to be necessary or desirable for a determination of the

issues, the Director, Division of Facilities and Security, shall make

arrangements for the production of such evidence and for such witnesses

to appear at the hearing by subpoena or otherwise.

* * * * *

f this part. When the presence of a witness and the

production of documents and other physical evidence is deemed by the

Hearing Counsel to be necessary or desirable for a determination of the

issues, the Director, Division of Facilities and Security, shall make

arrangements for the production of such evidence and for such witnesses

to appear at the hearing by subpoena or otherwise.

* * * * *

her own behalf and/or presenting other evidence before the Hearing

Examiner to support the individual's answers and defense to the

allegations contained in the notification letter. When requested,

however, Hearing Counsel shall assist the individual to the extent

practicable and necessary. The Hearing Counsel may at his or her

discretion request the Director, Division of Facilities and Security,

to arrange for the issuance of subpoenas for witnesses to attend the

hearing in the individual's behalf, or for the production of specific

documents or other physical evidence, provided a showing of the

necessity for such assistance has been made.

12. In Sec. 10.27 paragraph (c) is revised to read as follows:

Sec. 10.27 Prehearing proceedings.

* * * * *

ten days in advance of the hearing of the time and place of the

hearing. For good cause shown, the Hearing Examiner may order

postponements or continuances from time to time. If, after due notice,

the individual fails to appear at the hearing, or appears but is not

prepared to proceed, the Hearing Examiner shall, unless good cause is

shown, return the case to the Director, Division of Facilities and

Security, who shall make a recommendation on final action to be taken,

through the Director, Office of Administration, to the Deputy Executive

Director for Management Services on the basis of the information in the

possession of the NRC.

13. In Sec. 10.28, paragraph (n) is revised to read as follows:

all, unless good cause is

shown, return the case to the Director, Division of Facilities and

Security, who shall make a recommendation on final action to be taken,

through the Director, Office of Administration, to the Deputy Executive

Director for Management Services on the basis of the information in the

possession of the NRC.

13. In Sec. 10.28, paragraph (n) is revised to read as follows:

Sec. 10.28 Conduct of hearing.

* * * * *

(n) A written transcript of the entire proceeding shall be made by

a person possessing appropriate NRC access authorization and/or

employment clearance and, except for portions containing Restricted

Data or National Security Information, or other lawfully withholdable

information, a copy of such transcript shall be furnished the

individual without cost. The transcript or recording shall be made part

of the applicant's or employee's personnel security file.

14. Section 10.31 is revised to read as follows:

Sec. 10.31 Actions on the recommendations.

(a) Upon receipt of the findings and recommendation from the

Hearing Examiner, and the record, the Director, Office of

Administration, shall forthwith transmit it to the Deputy Executive

Director for Management Services who at his or her discretion may

return the record to the Director, Office of Administration, for

further proceedings by the Hearing Examiner with respect to specific

matters designated by the Deputy Executive Director for Management

Services;

Examiner, and the record, the Director, Office of

Administration, shall forthwith transmit it to the Deputy Executive

Director for Management Services who at his or her discretion may

return the record to the Director, Office of Administration, for

further proceedings by the Hearing Examiner with respect to specific

matters designated by the Deputy Executive Director for Management

Services;

(b)(1) In the event of a recommendation by the Hearing Examiner

that an individual's access authorization and/or employment clearance

be denied or revoked, the Deputy Executive Director for Management

Services shall immediately notify the individual in writing of the

Hearing Examiner's findings with respect to each allegation contained

in the notification letter, and that the individual has a right to

request a review of his or her case by the NRC Personnel Security

Review Panel and of the right to submit a brief in support of his or

her contentions. The request for a review shall be submitted to the

Deputy Executive Director for Management Services within five days

after the receipt of the notice. The brief shall be forwarded to the

Deputy Executive Director of Management Services, for transmission to

the NRC Personnel Security Review Panel not later than 10 days after

receipt of such notice.

(2) In the event the individual fails to request a review by the

NRC Personnel Security Review Panel of an adverse recommendation within

the prescribed time, the Deputy Executive Director for Management

Services may at his or her discretion request a review of the record of

the case by the NRC Personnel Security Review Panel. The request shall

set forth those matters at issue in the hearing on which the Deputy

Executive Director for Management Services desires a review by the NRC

Personnel Security Review Panel.

dation within

the prescribed time, the Deputy Executive Director for Management

Services may at his or her discretion request a review of the record of

the case by the NRC Personnel Security Review Panel. The request shall

set forth those matters at issue in the hearing on which the Deputy

Executive Director for Management Services desires a review by the NRC

Personnel Security Review Panel.

to the individual, the Deputy Executive Director for Management

Services may at his or her discretion request a review of the record of

the case by the NRC Personnel Security Review Panel. If such a request

is made, the Deputy Executive Director for Management Services shall

immediately cause the individual to be notified of that fact and of

those matters at issue in the hearing on which the Deputy Executive

Director for Management Services desires a review by the NRC Personnel

Security Review Panel. The Deputy Executive Director for Management

Services shall further inform the individual that within 10 days of

receipt of this notice, the individual may submit a brief concerning

those matters at issue for the consideration of the NRC Personnel

Security Review Panel. The brief shall be forwarded to the Deputy

Executive Director for Management Services for transmission to the NRC

Personnel Security Review Panel.

(d) In the event of a request for a review pursuant to paragraphs

(b) and (c) of this section, the Hearing Counsel may file a brief

within 10 days of being notified by the Deputy Executive Director for

Management Services that a review has been requested. The brief shall

be forwarded to the Deputy Executive Director for Management Services

for transmission to the NRC Personnel Security Review Panel.

the event of a request for a review pursuant to paragraphs

(b) and (c) of this section, the Hearing Counsel may file a brief

within 10 days of being notified by the Deputy Executive Director for

Management Services that a review has been requested. The brief shall

be forwarded to the Deputy Executive Director for Management Services

for transmission to the NRC Personnel Security Review Panel.

(e) The Hearing Counsel may also request a review of the case by

the NRC Personnel Security Review Panel. The request for review, which

shall set forth those matters at issue in the hearing on which the

Hearing Counsel desires a review, shall be submitted to the Deputy

Director Executive for Management Services within five days after

receipt of the Hearing Examiner's findings and recommendation. Within

10 days of the request for review, the Hearing Counsel may file a brief

which shall be forwarded to the Deputy Executive Director for

Management Services for transmission to the NRC Personnel Security

Review Panel. A copy of the request for review, and a copy of any brief

filed, shall be immediately sent to the individual. If the Hearing

Counsel's request is for a review of a recommendation favorable to the

individual, the individual may, within 10 days of receipt of a copy of

the request for review, submit a brief concerning those matters at

issue for consideration of the NRC Personnel Security Review Panel. The

brief shall be forwarded to the Deputy Executive Director for

Management Services for transmission to the NRC Personnel Security

Review Panel. A copy of the brief shall be made a part of the

applicant's personnel security file.

(f) The time limits imposed by this section for requesting reviews

and the filing of briefs may be extended by the Deputy Executive

Director for Management Services for good cause shown.

rded to the Deputy Executive Director for

Management Services for transmission to the NRC Personnel Security

Review Panel. A copy of the brief shall be made a part of the

applicant's personnel security file.

(f) The time limits imposed by this section for requesting reviews

and the filing of briefs may be extended by the Deputy Executive

Director for Management Services for good cause shown.

(g) In the event a request is made for a review of the record by

the NRC Personnel Security Review Panel, the Deputy Executive Director

for Management Services shall forthwith send the record, with all

findings and recommendations and any briefs filed by the individual and

the Hearing Counsel, to the NRC Personnel Security Review Panel. If

neither the individual, the Deputy Executive Director for Management

Services, nor the Hearing Counsel requests such a review, the final

determination shall be made by the Deputy Executive Director for

Management Services on the basis of the record with all findings and

recommendations.

15. Section 10.32 is revised to read as follows:

Sec. 10.32 Recommendation of the NRC Personnel Security Review Panel.

(a) The Deputy Executive Director for Management Services shall

designate an NRC Personnel Security Review Panel to conduct a review of

the record of the case. The NRC Personnel Security Review Panel shall

be comprised of three members, two of whom shall be selected from

outside the security field. To qualify as an NRC Personnel Security

Review Panel member, the person designated shall have an NRC ``Q''

access authorization and may be an employee of the NRC, its

contractors, agents, or licensees

Panel to conduct a review of

the record of the case. The NRC Personnel Security Review Panel shall

be comprised of three members, two of whom shall be selected from

outside the security field. To qualify as an NRC Personnel Security

Review Panel member, the person designated shall have an NRC ``Q''

access authorization and may be an employee of the NRC, its

contractors, agents, or licensees. However, no employee or consultant

of the NRC shall serve as an NRC Personnel Security Review Panel member

reviewing the case of an employee (including a consultant) or applicant

for employment with the NRC; nor shall any employee or consultant of an

NRC contractor, agent or licensee serve as an NRC Personnel Security

Review Panel member reviewing the case of an employee (including a

consultant) or an applicant for employment of that contractor, agent,

or licensee. No NRC Personnel Security Review Panel member shall be

selected who has knowledge of the case or of any information relevant

to the disposition of it, or who for any reason would be unable to

issue a fair and unbiased recommendation.

(b) The NRC Personnel Security Review Panel shall consider the

matter under review based upon the record supplemented by any brief

submitted by the individual or the Hearing Counsel. The NRC Personnel

Security Review Panel may request such additional briefs as the Panel

deems appropriate. When the NRC Personnel Security Review Panel

determines that additional evidence or further proceedings are

necessary, the record may be returned to the Deputy Executive Director

for Management Services with a recommendation that the case be returned

to the Director, Office of Administration, for appropriate action,

which may include returning the case to the Hearing Examiner and

reconvening the hearing to obtain additional testimony

determines that additional evidence or further proceedings are

necessary, the record may be returned to the Deputy Executive Director

for Management Services with a recommendation that the case be returned

to the Director, Office of Administration, for appropriate action,

which may include returning the case to the Hearing Examiner and

reconvening the hearing to obtain additional testimony. When additional

testimony is taken by the Hearing Examiner, a written transcript of

such testimony shall be made a part of the record and shall be taken by

a person possessing appropriate NRC access authorization and/or

employment clearance and, except for portions containing Restricted

Data or National Security Information, or other lawfully withholdable

information, a copy of such transcript shall be furnished the

individual without cost.

Panel shall make its findings and recommendations as to the eligibility

or continued eligibility of an individual for access authorization and/

or employment clearance on the record supplemented by additional

testimony or briefs, as has been previously determined by the NRC

Personnel Security Review Panel as appropriate.

(d) The NRC Personnel Security Review Panel shall not consider the

possible impact of the loss of the individual's services upon the NRC

program.

(e) If, after considering all the factors in light of the criteria

set forth in this part, the NRC Personnel Security Review Panel is of

the opinion that granting or continuing access authorization and/or

employment clearance to the individual will not endanger the common

defense and security and will be clearly consistent with the national

interest, the NRC Personnel Security Review Panel shall make a

favorable recommendation; otherwise, the NRC Personnel Security Review

Panel shall make an adverse recommendation

Panel is of

the opinion that granting or continuing access authorization and/or

employment clearance to the individual will not endanger the common

defense and security and will be clearly consistent with the national

interest, the NRC Personnel Security Review Panel shall make a

favorable recommendation; otherwise, the NRC Personnel Security Review

Panel shall make an adverse recommendation. The NRC Personnel Security

Review Panel shall prepare a report of its findings and recommendations

and submit the report in writing to the Deputy Executive Director for

Management Services, who shall furnish a copy to the individual. The

findings and recommendations shall be fully supported by stated reasons

supporting the findings and recommendations.

16. Section 10.33 is revised to read as follows:

Sec. 10.33 Action by the Deputy Executive Director for Management

Services.

(a) The Deputy Executive Director for Management Services, on the

basis of the record accompanied by all findings and recommendations,

shall make a final determination whether access authorization and/or

employment clearance shall be granted, denied, or revoked, except when

the provisions of Sec. 10.28(i), (j), or (l) have been used and the

Deputy Executive Director for Management Services determination is

adverse, the Commission shall make the final agency determination.

(b) In making the determination as to whether access authorization

and/or employment clearance shall be granted, denied, or revoked, the

Deputy Executive Director for Management Services or the Commission

shall give due recognition to the favorable as well as the unfavorable

information concerning the individual and shall take into account the

value of the individual's services to the NRC's program and the

consequences of denying or revoking access authorization and/or

employment clearance.

be granted, denied, or revoked, the

Deputy Executive Director for Management Services or the Commission

shall give due recognition to the favorable as well as the unfavorable

information concerning the individual and shall take into account the

value of the individual's services to the NRC's program and the

consequences of denying or revoking access authorization and/or

employment clearance.

Director for Management Services shall promptly notify the individual

through the Director, Office of Administration, of his or her decision

that access authorization and/or employment clearance is being denied

or revoked and of his or her findings with respect to each allegation

contained in the notification letter for transmittal to the individual.

(d) In the event of a favorable determination, the Deputy Executive

Director for Management Services shall promptly notify the individual

through the Director, Office of Administration.

17. In Sec. 10.34, paragraph (a) is revised to read as follows:

Sec. 10.34 Action by the Commission.

(a) Whenever, under the provisions of Sec. 10.28(i), (j), or (l) an

individual has not been afforded an opportunity to confront and cross-

examine witnesses who have furnished information adverse to the

individual and an adverse recommendation has been made by the Deputy

Executive Director for Management Services, the Commission shall review

the record and determine whether access authorization and/or employment

clearance shall be granted, denied, or revoked, based upon the record.

* * * * *

18. Section 10.35 is revised to read as follows:

Sec. 10.35 Reconsideration of cases.

adverse to the

individual and an adverse recommendation has been made by the Deputy

Executive Director for Management Services, the Commission shall review

the record and determine whether access authorization and/or employment

clearance shall be granted, denied, or revoked, based upon the record.

* * * * *

18. Section 10.35 is revised to read as follows:

Sec. 10.35 Reconsideration of cases.

(a) Where, pursuant to the procedures set forth in Secs. 10.20

through 10.34, the Deputy Executive Director for Management Services or

the Commission has made a determination granting access authorization

and/or employment clearance to an individual, the individual's

eligibility for access authorization and/or employment clearance shall

be reconsidered only when subsequent to the time of that determination,

new derogatory information has been received or the scope or

sensitivity of the Restricted Data or National Security Information to

which the individual has or will have access has significantly

increased. All new derogatory information, whether resulting from the

NRC's reinvestigation program or other sources, will be evaluated

relative to an individual's continued eligibility in accordance with

the procedures of this part.

(b) Where, pursuant to these procedures, the Commission or Deputy

Executive Director for Management Services has made a determination

denying or revoking access authorization and/or employment clearance to

an individual, the individual's eligibility for access authorization

and/or employment clearance may be reconsidered when there is a bona

fide offer of employment and/or a bona fide need for access to

Restricted Data or national security information and either material

and relevant new evidence is presented, which the individual and his or

her representatives are without fault in failing to present before, or

there is convincing evidence of reformation or rehabilitation

loyment clearance may be reconsidered when there is a bona

fide offer of employment and/or a bona fide need for access to

Restricted Data or national security information and either material

and relevant new evidence is presented, which the individual and his or

her representatives are without fault in failing to present before, or

there is convincing evidence of reformation or rehabilitation. Requests

for reconsideration shall be submitted in writing to the Deputy

Executive Director for Management Services through the Director, Office

of Administration. Such requests shall be accompanied by an affidavit

setting forth in detail the information referred to above. The Deputy

Executive Director for Management Services shall cause the individual

to be notified as to whether his or her eligibility for access

authorization and/or employment clearance will be reconsidered and if

so, the method by which such reconsideration will be accomplished.

granted

to an individual by the Director, Division of Facilities and Security,

without recourse to the procedures set forth in Secs. 10.20 through

10.34, the individual's eligibility for access authorization and/or

employment clearance shall be reconsidered only in a case where,

subsequent to the granting of the access authorization and/or

employment clearance, new derogatory information has been received or

the scope or sensitivity of the Restricted Data or National Security

Information, to which the individual has or will have access, has

significantly increased. All new derogatory information, whether

resulting from the NRC's reinvestigation program or other sources, will

be evaluated relative to an individual's continued eligibility in

accordance with the procedures of this part.

PART 11--CRITERIA AND PROCEDURES FOR DETERMINING ELIGIBILITY FOR

ACCESS TO OR CONTROL OVER SPECIAL NUCLEAR MATERIAL

19. The authority citation for part 11 continues to read as

follows:

ory information, whether

resulting from the NRC's reinvestigation program or other sources, will

be evaluated relative to an individual's continued eligibility in

accordance with the procedures of this part.

PART 11--CRITERIA AND PROCEDURES FOR DETERMINING ELIGIBILITY FOR

ACCESS TO OR CONTROL OVER SPECIAL NUCLEAR MATERIAL

19. The authority citation for part 11 continues to read as

follows:

Authority: Sec. 161, 68 Stat. 948, as amended (42 U.S.C. 2201);

sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841).

Section 11.15(e) also issued under sec. 501, 85 Stat. 290 (31

U.S.C. 483a).

20. In Sec. 11.7 the paragraph designations are removed, the

definitions are rearranged in alphabetical order, and the definitions

of NRC--``U'' special nuclear material access authorization and NRC--

``R'' special nuclear material access authorization are revised to read

as follows:

Sec. 11.7 Definitions.

* * * * *

NRC--``U'' special nuclear material access authorization means an

administrative determination based upon a single scope background

investigation, normally conducted by the Office of Personnel

Management, that an individual in the course of employment is eligible

to work at a job falling within the criteria of Sec. 11.11(a)(1) or

Sec. 11.13.

NRC--``R'' special nuclear material access authorization means an

administrative determination based upon a national agency check with

law and credit investigation that an individual in the course of

employment is eligible to work at a job falling within the criterion of

Sec. 11.11(a)(2).

* * * * *

21. Section 11.15 is revised to read as follows:

Sec. 11.15 Application for special nuclear material access

authorization.

terial access authorization means an

administrative determination based upon a national agency check with

law and credit investigation that an individual in the course of

employment is eligible to work at a job falling within the criterion of

Sec. 11.11(a)(2).

* * * * *

21. Section 11.15 is revised to read as follows:

Sec. 11.15 Application for special nuclear material access

authorization.

(a)(1) Application for special nuclear material access

authorization, renewal, or change in level shall be filed by the

licensee on behalf of the applicant with the Director, Division of

Facilities and Security, U.S. Nuclear Regulatory Commission,

Washington, DC 20555. Applications for affected individuals employed on

October 28, 1985, shall be submitted within 60 days of notification of

Commission approval of the amended security plan.

(2) Licensees who wish to secure NRC--U or NRC--R special nuclear

material access authorizations for individuals in possession of an

active NRC Q or L access authorization or other security clearance

granted by another Federal agency based on an equivalent investigation

shall submit a ``Security Acknowledgment'' (NRC Form 176) and a

``Request for Access Authorization'' (NRC Form 237). NRC will process

these requests by verifying the data on an NRC cleared individual, or

by contacting the Federal agency which granted the clearance,

requesting certification of the security clearance, and determining the

investigative basis and level of the clearance. Licensees may directly

request the Federal agency which administered the security clearance,

if other than NRC, to certify to the NRC that it has on file an active

security clearance for an individual and to specify the investigative

basis and level of the clearance.

rance,

requesting certification of the security clearance, and determining the

investigative basis and level of the clearance. Licensees may directly

request the Federal agency which administered the security clearance,

if other than NRC, to certify to the NRC that it has on file an active

security clearance for an individual and to specify the investigative

basis and level of the clearance.

(b) Applications for special nuclear material access authorization

for individuals, other than those qualifying under the provisions of

Sec. 11.15(a)(2), must be made on forms supplied by the Commission,

including:

(1) Questionnaire for National Security Positions (SF--86, Parts 1

and 2);

(2) Two completed standard fingerprint cards (FD--258);

(3) Security Acknowledgment (NRC Form 176);

(4) Other related forms where specified in accompanying instruction

(NRC--254); and

(5) A statement by the employer, prospective employer, or

contractor identifying the job to be assigned to or assumed by the

individual and the level of authorization needed, justified by

appropriate reference to the licensee's security plan.

(c)(1) Except as provided in paragraph (c)(2) of this section, NRC-

U special nuclear material access authorizations must be renewed every

five years from the date of issuance. Except as provided in paragraph

(c)(3) of this section, NRC-R special nuclear material access

authorizations must be renewed every ten years from the date of

issuance. An application for renewal must be submitted at least 120

days before the expiration of the five year period for NRC-U and ten

year period for NRC-R, respectively, and must include:

every

five years from the date of issuance. Except as provided in paragraph

(c)(3) of this section, NRC-R special nuclear material access

authorizations must be renewed every ten years from the date of

issuance. An application for renewal must be submitted at least 120

days before the expiration of the five year period for NRC-U and ten

year period for NRC-R, respectively, and must include:

(i) A statement by the licensee that at the time of application for

renewal the individual's assigned or assumed job requires an NRC-U or

an NRC-R special nuclear material access authorization, justified by

appropriate reference to the licensee's security plan;

(ii) The Questionnaire for National Security Positions (SF-86,

Parts 1 and 2);

(iii) Two completed standard fingerprint cards (FD-258); and

(iv) Other related forms specified in accompanying NRC instructions

(NRC Form 254).

(2) An exception to the time for submission of NRC-U special

nuclear material access authorization renewal applications and the

paperwork required is provided for those individuals who have a current

and active DOE-Q access authorization and who are subject to DOE

Reinvestigation Program requirements. For these individuals, the

submission to DOE of the SF-86 pursuant to DOE Reinvestigation Program

requirements (generally every five years) will satisfy the NRC renewal

submission and paperwork requirements even if less than five years has

passed since the date of issuance or renewal of the NRC-U access

authorization. Any NRC-U special nuclear material access authorization

renewed in response to provisions of this paragraph will not be due for

renewal until the date set by DOE for the next reinvestigation of the

individual pursuant to DOE's Reinvestigation Program.

ion and paperwork requirements even if less than five years has

passed since the date of issuance or renewal of the NRC-U access

authorization. Any NRC-U special nuclear material access authorization

renewed in response to provisions of this paragraph will not be due for

renewal until the date set by DOE for the next reinvestigation of the

individual pursuant to DOE's Reinvestigation Program.

(3) An exception to the time for submission of NRC-R special

nuclear material access authorization renewal applications and the

paperwork required is provided for those individuals who have a current

and active DOE-L or DOE-Q access authorization and who are subject to

DOE Reinvestigation Program requirements. For these individuals, the

submission to DOE of the SF-86 pursuant to DOE Reinvestigation Program

requirements will satisfy the NRC renewal submission and paperwork

requirements even if less than ten years have passed since the date of

issuance or renewal of the NRC-R access authorization. Any NRC-R

special nuclear material access authorization renewed pursuant to this

paragraph will not be due for renewal until the date set by DOE for the

reinvestigation of the individual pursuant to DOE's Reinvestigation

Program.

(4) Notwithstanding the provisions of paragraph (c)(2) of this

section, the period of time for the initial and each subsequent NRC-U

renewal application to NRC may not exceed seven years.

erial access authorization renewed pursuant to this

paragraph will not be due for renewal until the date set by DOE for the

reinvestigation of the individual pursuant to DOE's Reinvestigation

Program.

(4) Notwithstanding the provisions of paragraph (c)(2) of this

section, the period of time for the initial and each subsequent NRC-U

renewal application to NRC may not exceed seven years.

(5) Notwithstanding the provisions of paragraph (c)(3) of this

section, the period of time for the initial and each subsequent NRC-R

renewal application to NRC may not exceed twelve years. Any individual

who is subject to the DOE Reinvestigation Program requirements but, for

administrative or other reasons, does not submit reinvestigation forms

to DOE within seven years of the previous submission, for a NRC-U

renewal or twelve years of the previous submission for a NRC-R renewal,

shall submit a renewal application to NRC using the forms prescribed in

paragraph (c)(1) of this section before the expiration of the seven

year period for NRC-U or twelve year period for NRC-R renewal.

(d) If at any time, due to new assignment or assumption of duties,

a change in special nuclear material access authorization level from

NRC ``R'' to ``U'' is required, the individual shall apply for a change

of level of special nuclear material access authorization. The

application must include a description of the new duties to be assigned

or assumed, justified by appropriate reference to the licensee's

security plan.

ew assignment or assumption of duties,

a change in special nuclear material access authorization level from

NRC ``R'' to ``U'' is required, the individual shall apply for a change

of level of special nuclear material access authorization. The

application must include a description of the new duties to be assigned

or assumed, justified by appropriate reference to the licensee's

security plan.

(e)(1) Each application for special nuclear material access

authorization, renewal, or change in level must be accompanied by the

licensee's remittance, payable to the U.S. Nuclear Regulatory

Commission, according to the following schedule:

i. NRC-R

.....................................................1

$128

---------------------------------------------------------------------------

\1\ If the NRC determines, based on its review of available

data, that a National Agency Check with law and credit investigation

is necessary, a fee of $128 will be assessed prior to the conduct of

the investigation; however, if a single scope investigation is

deemed necessary by the NRC, based on its review of available data,

a fee of $3,275 will be assessed prior to the conduct of the

investigation.

---------------------------------------------------------------------------

ii. NRC-R (expedited processing)

..............................1 $200

iii. NRC-R based on certification of comparable investigation

2 $0

---------------------------------------------------------------------------

\2\ If the NRC determines, based on its review of available

data, that a single scope investigation is necessary, a fee of

$3,275 will be assessed prior to the conduct of the investigation.

---------------------------------------------------------------------------

ed on certification of comparable investigation

2 $0

---------------------------------------------------------------------------

\2\ If the NRC determines, based on its review of available

data, that a single scope investigation is necessary, a fee of

$3,275 will be assessed prior to the conduct of the investigation.

---------------------------------------------------------------------------

iv. NRC-R renewal..............................................\1\ $128

v. NRC-U requiring single scope investigation.....................$3275

vi. NRC-U requiring single scope investigation (expedited

processing).......................................................$3800

vii. NRC-U based on certification of comparable investigation....\2\ $0

viii. NRC-U renewal...........................................\2\ $1720

(2) Material access authorization fees will be published each time

the Office of Personnel Management notifies NRC of a change in the

background investigation rate it charges NRC for conducting the

investigation. Any such changed access authorization fees will be

applicable to each access authorization request received upon or after

the date of publication. Applications from individuals having current

Federal access authorizations may be processed expeditiously at no

cost, since the Commission may accept the certification of access

authorizations and investigative data from other Federal government

agencies which grant personnel access authorizations.

applicable to each access authorization request received upon or after

the date of publication. Applications from individuals having current

Federal access authorizations may be processed expeditiously at no

cost, since the Commission may accept the certification of access

authorizations and investigative data from other Federal government

agencies which grant personnel access authorizations.

(f)(1) Any Federal employee, employee of a contractor of a Federal

agency, licensee, or other person visiting an affected facility for the

purpose of conducting official business, who possesses an active NRC or

DOE-Q access authorization or an equivalent Federal security clearance

granted by another Federal agency (``Top Secret'') based on a

comparable single scope background investigation may be permitted, in

accordance with Sec. 11.11, the same level of unescorted access that an

NRC-U special nuclear material access authorization would afford.

(2) Any Federal employee, employee of a contractor of a Federal

agency, licensee, or other person visiting an affected facility for the

purpose of conducting official business, who possesses an active NRC or

DOE-L access authorization or an equivalent security clearance granted

by another Federal agency (``Secret'') based on a comparable or greater

background investigation consisting of a national agency check with law

and credit may be permitted, in accordance with Sec. 11.11, the same

level of unescorted access that an NRC-R special nuclear material

access authorization would afford. An NRC or DOE-L access authorization

or an equivalent security clearance (``Secret''), based on a background

investigation or national agency check with credit, which was granted

or being processed by another Federal agency before January 1, 1998, is

acceptable to meet this requirement.

22. Section 11.16 is revised to read as follows:

Sec. 11.16 Cancellation of request for special nuclear material access

authorization.

ization

or an equivalent security clearance (``Secret''), based on a background

investigation or national agency check with credit, which was granted

or being processed by another Federal agency before January 1, 1998, is

acceptable to meet this requirement.

22. Section 11.16 is revised to read as follows:

Sec. 11.16 Cancellation of request for special nuclear material access

authorization.

When a request for an individual's access authorization is

withdrawn or canceled, the licensee shall notify the Chief, Personnel

Security Branch, NRC Division of Facilities and Security immediately,

by telephone, so that the investigation may be discontinued. The caller

shall provide the full name and date of birth of the individual, the

date of request, and the type of access authorization originally

requested (``U'' or ``R''). The licensee shall promptly submit written

confirmation of the telephone notification to the Personnel Security

Branch, NRC Division of Facilities and Security. A portion of the fee

for the ``U'' special nuclear material access authorization may be

refunded depending upon the status of the single scope investigation at

the time of withdrawal or cancellation.

23. In Sec. 11.21, paragraphs (c) and (d) are revised to read as

follows:

Sec. 11.21 Application of the criteria.

* * * * *

information reasonably falling within one or more of the classes of

derogatory information listed in Sec. 10.11, it shall create a question

as to the individual's eligibility for special nuclear material access

authorization. In such cases, the application of the criteria shall be

made in light of and with specific regard to whether the existence of

such information supports a reasonable belief that the granting of a

special nuclear material access authorization would be inimical to the

common defense and security

ate a question

as to the individual's eligibility for special nuclear material access

authorization. In such cases, the application of the criteria shall be

made in light of and with specific regard to whether the existence of

such information supports a reasonable belief that the granting of a

special nuclear material access authorization would be inimical to the

common defense and security. The Director, Division of Facilities and

Security, may authorize the granting of special nuclear material access

authorization on the basis of the information in the case or may

authorize the conduct of an interview with the individual and, on the

basis of such interview and such other investigation as the Director

deems appropriate, may authorize the granting of special nuclear

material access authorization. Otherwise, a question concerning the

eligibility of an individual for special nuclear material access

authorization shall be resolved in accordance with the procedures set

forth in Secs. 10.20 through 10.38 of this chapter.

(d) In resolving a question concerning the eligibility or continued

eligibility of an individual for special nuclear material access

authorization by action of the Hearing Examiner or a Personnel Security

Review Panel,3 the following principle shall be applied by

the Examiner and the Personnel Security Review Panel: Where there are

grounds sufficient to establish a reasonable belief as to the truth of

the information regarded as substantially derogatory and when the

existence of such information

supports a reasonable belief that granting access would be inimical to

the common defense and security, this shall be the basis for a

recommendation for denying or revoking special nuclear material access

authorization if not satisfactorily rebutted by the individual or shown

to be mitigated by circumstance.

---------------------------------------------------------------------------

formation

supports a reasonable belief that granting access would be inimical to

the common defense and security, this shall be the basis for a

recommendation for denying or revoking special nuclear material access

authorization if not satisfactorily rebutted by the individual or shown

to be mitigated by circumstance.

---------------------------------------------------------------------------

\3\ The functions of the Hearing Examiner and the Personnel

Security Review Panel are described in part 10 of this chapter.

---------------------------------------------------------------------------

PART 25--ACCESS AUTHORIZATION FOR LICENSEE PERSONNEL

24. The authority citation for part 25 continues to read as

follows:

Authority: Secs. 145, 161, 68 Stat. 942, 948, as amended (42

U.S.C. 2165, 2201); sec. 201, 88 Stat. 1242, as amended (42 U.S.C.

5841); E.O. 10865, as amended, 3 CFR 1959-1963 Comp., p. 398 (50

U.S.C. 401, note); E.O. 12829, 3 CFR, 1993 Comp. p. 570; E.O. 12958,

3 CFR, 1995 Comp., p. 333; E.O. 12968, 3 CFR, 1995 Comp., p. 396.

Appendix A also issued under 96 Stat. 1051 (31 U.S.C. 9701).

25. In Sec. 25.5 the definitions of ``L'' access authorization,

National Security Information and ``Q'' access authorization are

revised to read as follows:

Sec. 25.5 Definitions.

* * * * *

``L'' access authorization means an access authorization granted by

the Commission which is normally based on a national agency check with

law and credit investigation (NACLC) or an access national agency check

and inquiries investigation (ANACI)) conducted by the Office of

Personnel Management.

* * * * *

National Security Information means information that has been

determined pursuant to Executive Order 12958 or any predecessor order

to require protection against unauthorized disclosure and that is so

designated

cy check with

law and credit investigation (NACLC) or an access national agency check

and inquiries investigation (ANACI)) conducted by the Office of

Personnel Management.

* * * * *

National Security Information means information that has been

determined pursuant to Executive Order 12958 or any predecessor order

to require protection against unauthorized disclosure and that is so

designated.

* * * * *

``Q'' access authorization means an access authorization granted by

the Commission normally based on a single scope background

investigation conducted by the Office of Personnel Management, the

Federal Bureau of Investigation, or other U.S. Government agency which

conducts personnel security investigations.

* * * * *

26. Section 25.9 is revised to read as follows:

Sec. 25.9 Communications.

Except where otherwise specified, all communications and reports

concerning the regulations in this part should be addressed to the

Director, Division of Facilities and Security, U.S. Nuclear Regulatory

Commission, Washington, DC 20555.

27. Section 25.15 is revised to read as follows:

Sec. 25.15 Access permitted under ``Q'' or ``L'' or equivalent CSA

access authorization.

(a) A ``Q'' or CSA equivalent access authorization permits an

individual access on a need-to-know basis to Secret Restricted Data

related to nuclear weapons design, manufacturing and vulnerability

information; and certain particularly sensitive Naval Nuclear

Propulsion Program information (e.g., fuel manufacturing technology) as

well as Secret and Confidential National Security Information including

intelligence information, CRYPTO (i.e., cryptographic information) or

other classified communications security (COMSEC) information.

nuclear weapons design, manufacturing and vulnerability

information; and certain particularly sensitive Naval Nuclear

Propulsion Program information (e.g., fuel manufacturing technology) as

well as Secret and Confidential National Security Information including

intelligence information, CRYPTO (i.e., cryptographic information) or

other classified communications security (COMSEC) information.

(b) An ``L'' access authorization permits an individual access on a

need-to-know basis to Secret and Confidential classified information

other than the categories specifically included in paragraph (a) of

this section. In addition, access to certain Confidential COMSEC

information is permitted as authorized by a National Communications

Security Committee waiver dated February 14, 1985.

levels of access authorization. Licensees and other persons will

furnish classified information to a Commission or CSA employee on

official business when the employee has the appropriate level of access

authorization and need-to-know. Some individuals are permitted to begin

NRC employment without an access authorization. However, no NRC or CSA

employee is permitted access to any classified information until the

appropriate level of access authorization has been granted to that

employee by NRC or the CSA.

28. Section 25.19 is revised to read as follows:

Sec. 25.19 Processing applications.

authorization and need-to-know. Some individuals are permitted to begin

NRC employment without an access authorization. However, no NRC or CSA

employee is permitted access to any classified information until the

appropriate level of access authorization has been granted to that

employee by NRC or the CSA.

28. Section 25.19 is revised to read as follows:

Sec. 25.19 Processing applications.

Each application for access authorization or access authorization

renewal must be submitted to the CSA. If the NRC is the CSA, the

application and its accompanying fee must be submitted to the NRC

Division of Facilities and Security. If necessary, the NRC Division of

Facilities and Security may obtain approval from the appropriate

Commission office exercising licensing or regulatory authority before

processing the access authorization or access authorization renewal

request. If the applicant is disapproved for processing, the NRC

Division of Facilities and Security shall notify the submitter in

writing and return the original application (security packet) and its

accompanying fee.

29. In Sec. 25.21, paragraph (c) is revised to read as follows:

Sec. 25.21 Determination of initial and continued eligibility for

access authorization.

* * * * *

(c)(1) Except as provided in paragraph (c)(2) of this section, NRC

``Q'' access authorization must be renewed every five years from the

date of issuance. Except as provided in paragraph (c)(2) of this

section, NRC ``L'' access authorization must be renewed every ten years

from the date of issuance. An application for renewal must be submitted

at least 120 days before the expiration of the five-year period for

``Q'' access authorization and ten-year period for ``L'' access

authorization, and must include:

five years from the

date of issuance. Except as provided in paragraph (c)(2) of this

section, NRC ``L'' access authorization must be renewed every ten years

from the date of issuance. An application for renewal must be submitted

at least 120 days before the expiration of the five-year period for

``Q'' access authorization and ten-year period for ``L'' access

authorization, and must include:

(i) A statement by the licensee or other person that the individual

continues to require access to classified National Security Information

or Restricted Data; and

(ii) A personnel security packet as described in Sec. 25.17(d).

(2) Renewal applications and the required paperwork are not

required for individuals who have a current and active access

authorization from another Federal agency and who are subject to a

reinvestigation program by that agency that is determined by the NRC to

meet the NRC's requirements. (The DOE Reinvestigation Program has been

determined to meet the NRC's requirements.) For these individuals, the

submission of the SF-86 by the licensee or other person to the other

government agency pursuant to their reinvestigation requirements will

satisfy the NRC renewal submission and paperwork requirements, even if

less than five years has passed since the date of issuance or renewal

of the NRC ``Q'' access authorization or 10 years have passed since the

date of issuance or renewal of the NRC ``L'' access authorization. Any

NRC access authorization continued in response to the provisions of

this paragraph will, thereafter, not be due for renewal until the date

set by the other Government agency for the next reinvestigation of the

individual pursuant to the other agency's reinvestigation program.

However, the period of time for the initial and each subsequent NRC

``Q'' renewal application to the NRC may not exceed seven years or, in

the case of NRC ``L'' renewal application, twelve years. Any individual

who is subject to the reinvestigation program

set by the other Government agency for the next reinvestigation of the

individual pursuant to the other agency's reinvestigation program.

However, the period of time for the initial and each subsequent NRC

``Q'' renewal application to the NRC may not exceed seven years or, in

the case of NRC ``L'' renewal application, twelve years. Any individual

who is subject to the reinvestigation program

requirements of another Federal agency but, for administrative or other

reasons, does not submit reinvestigation forms to that agency within

seven years for ``Q'' renewal or twelve years for ``L'' renewal of the

previous submission, shall submit a renewal application to the NRC

using the forms prescribed in Sec. 25.17(d) before the expiration of

the seven-year period.

(3) If the NRC is not the CSA, reinvestigation program procedures

and requirements will be set by the CSA.

30. In Sec. 25.23, paragraph (a) is revised to read as follows:

Sec. 25.23 Notification of grant of access authorization.

* * * * *

(a) In those cases in which the determination was made as a result

of a Personnel Security Hearing or by a Personnel Security Review Panel

; or

* * * * *

31. Section 25.25 is revised to read as follows:

Sec. 25.25 Cancellation of requests for access authorization.

When a request for an individual's access authorization or renewal

of access authorization is withdrawn or canceled, the requestor shall

notify the CSA immediately by telephone so that the single scope

background investigation, national agency check with law and credit

investigation, or other personnel security action may be discontinued.

The requestor shall identify the full name and date of birth of the

individual, the date of request, and the type of access authorization

or access authorization renewal requested. The requestor shall confirm

each telephone notification promptly in writing.

32. In Sec. 25.27, paragraph (b) is revised to read as follows:

investigation, or other personnel security action may be discontinued.

The requestor shall identify the full name and date of birth of the

individual, the date of request, and the type of access authorization

or access authorization renewal requested. The requestor shall confirm

each telephone notification promptly in writing.

32. In Sec. 25.27, paragraph (b) is revised to read as follows:

Sec. 25.27 Reopening of cases in which requests for access

authorizations are canceled.

* * * * *

(b) Additionally, if 90 days or more have elapsed since the date of

the last Questionnaire for National Security Positions (SF-86), or CSA

equivalent, the individual must complete a personnel security packet

(see Sec. 25.17(d)). The CSA, based on investigative or other needs,

may require a complete personnel security packet in other cases as

well. A fee, equal to the amount paid for an initial request, will be

charged only if a new or updating investigation by the NRC is required.

33. In Sec. 25.31, paragraphs (a), (b), and (c) are revised to read

as follows:

Sec. 25.31 Extensions and transfers of access authorizations.

(a) The NRC Division of Facilities and Security may, on request,

extend the authorization of an individual who possesses an access

authorization in connection with a particular employer or activity, to

permit access to classified information in connection with an

assignment with another employer or activity.

(b) The NRC Division of Facilities and Security may, on request,

transfer an access authorization when an individual's access

authorization under one employer or activity is terminated,

simultaneously with the individual being granted access authorization

for another employer or activity.

mit access to classified information in connection with an

assignment with another employer or activity.

(b) The NRC Division of Facilities and Security may, on request,

transfer an access authorization when an individual's access

authorization under one employer or activity is terminated,

simultaneously with the individual being granted access authorization

for another employer or activity.

state the full name of the person, his date of birth and level of

access authorization. The Director, Division of Facilities and

Security, may require a new personnel security packet (see

Sec. 25.17(c)) to be completed by the applicant. A fee, equal to the

amount paid for an initial request, will be charged only if a new or

updating investigation by the NRC is required.

* * * * *

34. In Sec. 25.33, paragraphs (a) and (b) are revised to read as

follows:

Sec. 25.33 Termination of access authorizations.

(a) Access authorizations will be terminated when:

(1) Access authorization is no longer required;

(2) An individual is separated from the employment or the activity

for which he or she obtained an access authorization for a period of 90

days or more; or

(3) An individual, pursuant to 10 CFR part 10 or other CSA-approved

adjudicatory standards, is no longer eligible for access authorization.

(b) A representative of the licensee or other organization that

employs the individual whose access authorization will be terminated

shall immediately notify the CSA when the circumstances noted in

paragraph (a)(1) or (a)(2) of this section exist; inform the individual

that his or her access authorization is being terminated, and the

reason; and that he or she will be considered for reinstatement of

access authorization if he or she resumes work requiring it.

* * * * *

35. In Sec. 25.35, paragraph (b) is revised to read as follows:

Sec. 25.35 Classified visits.

* * * * *

Initial ``L'' access authorization......................... \1\ 128

Initial ``L'' access authorization (expedited processing).. \1\ 200

Reinstatement of ``L'' access authorization................ \2\ 128

Extension or Transfer of ``L'' access authorization........ \2\ 128

Renewal of ``L'' access authorization...................... \1\ 128

Initial ``Q'' access authorization......................... 3275

Initial ``Q'' access authorization (expedited processing).. 3800

Reinstatement of ``Q'' access authorization................ \2\ 3275

Reinstatement of ``Q'' access authorization (expedited

processing)............................................... \2\ 3800

Extension or Transfer of ``Q'.............................. \2\ 3275

Extension or Transfer of ``Q'' (expedited processing)...... \2\ 3800

Renewal of ``Q'' access authorization...................... \2\ 1720

------------------------------------------------------------------------

\1\ If the NRC determines, based on its review of available data, that a

single scope investigation is necessary, a fee of $3275 will be

assessed before the conduct of the investigation.

\2\ Full fee will only be charged if an investigation is required.

38. The heading of part 95 is revised to read as follows:

PART 95--FACILITY SECURITY CLEARANCE AND SAFEGUARDING OF NATIONAL

SECURITY INFORMATION AND RESTRICTED DATA

39. The authority citation for part 95 continues to read as

follows:

Authority: Secs. 145, 161, 193, 68 Stat. 942, 948, as amended

(42 U.S.C. 2165, 2201); sec. 201, 88 Stat. 1242, as amended (42

U.S.C. 5841); E.O. 10865, as amended, 3 CFR 1959-1963 Comp., p. 398

(50 U.S.C. 401, note); E.O. 12829, 3 CFR 1993 Comp., p. 570; E.O.

12958, as amended, 3 CFR 1995 Comp., p. 333; E.O. 12968, 3 CFR 1995

Comp., p. 391.

* * * * *

40. In Sec. 95.5 the definitions of NRC ``L'' access authorization,

NRC ``Q'' access authorization and security container are revised to

read as follows:

Sec. 95.5 Definitions.

1); E.O. 10865, as amended, 3 CFR 1959-1963 Comp., p. 398

(50 U.S.C. 401, note); E.O. 12829, 3 CFR 1993 Comp., p. 570; E.O.

12958, as amended, 3 CFR 1995 Comp., p. 333; E.O. 12968, 3 CFR 1995

Comp., p. 391.

* * * * *

40. In Sec. 95.5 the definitions of NRC ``L'' access authorization,

NRC ``Q'' access authorization and security container are revised to

read as follows:

Sec. 95.5 Definitions.

* * * * *

NRC ``L'' access authorization means an access authorization

granted by the Commission which is normally based on a national agency

check with law and credit investigation (NACLC) or an access national

agency check and inquiries investigation (ANACI)) conducted by the

Office of Personnel Management.

NRC ``Q'' access authorization means an access authorization

granted by the Commission normally based on a single scope background

investigation conducted by the Office of Personnel Management, the

Federal Bureau of Investigation, or other U.S. Government agency which

conducts personnel security investigations.

* * * * *

Security container includes any of the following repositories:

(1) A security filing cabinet--one that bears a Test Certification

Label on the side of the locking drawer, inside wall adjacent to the

locking drawer, or interior door plate, and is marked, General Services

Administration Approved Security Container on the exterior of the top

drawer or door.

(2) A safe--burglar-resistive cabinet or chest which bears a label

of the Underwriters' Laboratories, Inc

security filing cabinet--one that bears a Test Certification

Label on the side of the locking drawer, inside wall adjacent to the

locking drawer, or interior door plate, and is marked, General Services

Administration Approved Security Container on the exterior of the top

drawer or door.

(2) A safe--burglar-resistive cabinet or chest which bears a label

of the Underwriters' Laboratories, Inc. certifying the unit to be a TL-

15, TL-30, or TRTL-30, and has a body fabricated of not less than 1

inch steel and a door fabricated of not less than 1\1/2\ inches steel

exclusive of the combination lock and bolt work; or bears a Test

Certification Label on the inside of the door and is marked General

Services Administration Approved Security Container and has a body of

steel at least \1/2\ ''thick, and a combination locked steel door at

least 1'' thick, exclusive of bolt work and locking devices, and an

automatic unit locking mechanism.

(3) A vault--a windowless enclosure constructed with walls, floor,

roof and door(s) that will delay penetration sufficient to enable the

arrival of emergency response forces capable of preventing theft,

diversion, damage or compromise of classified information or matter,

when delay time is assessed in conjunction with detection and

communication subsystems of the physical protection system.

(4) A vault-type room--a room which has a combination lock door and

is protected by an intrusion alarm system which alarms upon the

unauthorized penetration of a person anywhere into the room.

ing theft,

diversion, damage or compromise of classified information or matter,

when delay time is assessed in conjunction with detection and

communication subsystems of the physical protection system.

(4) A vault-type room--a room which has a combination lock door and

is protected by an intrusion alarm system which alarms upon the

unauthorized penetration of a person anywhere into the room.

(5) Other repositories which in the judgment of the Division of

Facilities and Security would provide comparable physical protection.

* * * * *

41. Section 95.9 is revised to read as follows:

Sec. 95.9 Communications.

Except where otherwise specified, all communications and reports

concerning the regulations in this part should be addressed to the

Director, Division of Facilities and Security, Nuclear Regulatory

Commission, Washington, DC 20555.

42. In Sec. 95.15, paragraph (a) is revised to read as follows:

Sec. 95.15 Approval for processing licensees and others for facility

clearance.

(a) A licensee, certificate holder, or other person who has a need

to use, process, store, reproduce, transmit, transport, or handle NRC

classified information at any location in connection with Commission

related activities shall promptly request an NRC facility clearance.

This specifically includes situations where a licensee, certificate

holder, or other person needs a contractor or consultant to have access

to NRC classified information, or others who require access to

classified information in connection with NRC regulated activities, but

do not require use, storage, or possession of classified information

outside of NRC facilities

NRC facility clearance.

This specifically includes situations where a licensee, certificate

holder, or other person needs a contractor or consultant to have access

to NRC classified information, or others who require access to

classified information in connection with NRC regulated activities, but

do not require use, storage, or possession of classified information

outside of NRC facilities. However, it is not necessary for a licensee,

certificate holder, or other person to request an NRC facility

clearance for access to another agency's classified information at that

agency's facilities or to store that agency's classified information at

their facility, provided no NRC classified information is involved and

they meet the security requirements of the other agency. If NRC

classified information is involved, the requirements of Sec. 95.17

apply.

* * * * *

43. In Sec. 95.17, the introductory text of paragraph (a) and

paragraph (a)(1) are revised to read as follows:

Sec. 95.17 Processing facility clearance.

(a) Following the receipt of an acceptable request for facility

clearance, the NRC will either accept an existing facility clearance

granted by a current CSA and authorize possession of license or

certificate related classified information or process the facility for

a facility clearance. Processing will include--

(1) A determination based on review and approval of a Standard

Practice Procedure Plan that granting of the Facility Clearance would

not be inconsistent with the national interest, including a finding

that the facility is not under foreign ownership, control, or influence

to such a degree that a determination could not be made

the facility for

a facility clearance. Processing will include--

(1) A determination based on review and approval of a Standard

Practice Procedure Plan that granting of the Facility Clearance would

not be inconsistent with the national interest, including a finding

that the facility is not under foreign ownership, control, or influence

to such a degree that a determination could not be made. An NRC finding

of foreign ownership, control, or influence is based on factors

concerning the foreign intelligence threat, risk of unauthorized

technology transfer, type and sensitivity of the information that

requires protection, the extent of foreign influence, record of

compliance with pertinent laws, and the nature of international

security and information exchange agreements. The licensee, certificate

holder, or other person is required to advise NRC within 30 days of any

significant events or changes that may affect its status concerning

foreign ownership, control, or influence.

* * * * *

44. Section 95.19 is revised to read as follows:

Sec. 95.19 Changes to security practices and procedures.

(a) Except as specified in paragraph (b) of this section, each

licensee, certificate holder or other person shall obtain prior CSA

approval for any proposed change to the name, location, security

procedures and controls, or floor plan of the approved facility. A

written description of the proposed change must be furnished to the CSA

with copies to the Director, Division of Facilities and Security,

Office of Administration, NRC, Washington, DC 20555-0001 (if NRC is not

the CSA), and the NRC Regional Administrator of the cognizant Regional

Office listed in appendix A of part 73. These substantive changes to

the Standard Practice Procedures Plan that affect the security of the

facility must be submitted to NRC Division of Facilities and Security,

or CSA, at least 30 days

es and Security,

Office of Administration, NRC, Washington, DC 20555-0001 (if NRC is not

the CSA), and the NRC Regional Administrator of the cognizant Regional

Office listed in appendix A of part 73. These substantive changes to

the Standard Practice Procedures Plan that affect the security of the

facility must be submitted to NRC Division of Facilities and Security,

or CSA, at least 30 days

prior to the change so that it may be evaluated. The CSA shall promptly

respond in writing to all such proposals. Some examples of substantive

changes requiring prior CSA approval include--

(1) A change in the approved facility's classified mail address; or

(2) A temporary or permanent change in the location of the approved

facility (e.g., moving or relocating NRC's classified interest from one

room or building to another). Approved changes will be reflected in a

revised Security Practices and Procedures Plan submission within 30

days of approval. Page changes rather than a complete rewrite of the

plan may be submitted.

(b) A licensee or other person may effect a minor, non-substantive

change to an approved Standard Practice Procedures Plan for the

safeguarding of classified information without receiving prior CSA

approval. These minor changes that do not affect the security of the

facility may be submitted to the addressees noted in paragraph (a) of

this section within 30 days of the change. Page changes rather than a

complete rewrite of the plan may be submitted. Some examples of minor,

non-substantive changes to the Standard Practice Procedures Plan

include--

(1) The designation/appointment of a new facility security officer;

(2) A revision to protective personnel patrol routine, provided the

new routine continues to meet the minimum requirements of this part.

the change. Page changes rather than a

complete rewrite of the plan may be submitted. Some examples of minor,

non-substantive changes to the Standard Practice Procedures Plan

include--

(1) The designation/appointment of a new facility security officer;

(2) A revision to protective personnel patrol routine, provided the

new routine continues to meet the minimum requirements of this part.

NRC facility clearance by submitting a complete Standard Practice

Procedures Plan to the Division of Facilities and Security at least

every 5 years.

45. Section 95.20 is revised to read as follows:

Sec. 95.20 Grant, denial or termination of facility clearance.

The Division of Facilities and Security shall provide notification

in writing (or orally with written confirmation) to the licensee or

other organization of the Commission's grant, acceptance of another

agency's facility clearance, denial, or termination of facility

clearance. This information must also be furnished to representatives

of the NRC, NRC licensees, NRC certificate holders, NRC contractors, or

other Federal agencies having a need to transmit classified information

to the licensee or other person.

46. Section 95.21 is revised to read as follows:

Sec. 95.21 Withdrawal of requests for facility security clearance.

When a request for facility clearance is to be withdrawn or

canceled, the requester shall notify the NRC Division of Facilities and

Security in the most expeditious manner so that processing for this

approval may be terminated. The notification must identify the full

name of the individual requesting discontinuance, his position with the

facility, and the full identification of the facility. The requestor

shall confirm the telephone notification promptly in writing.

* * * * *

47. In Sec. 95.25, the introductory text of paragraph (a),

paragraphs (a)(2), (b), (c)(2), (f), (g), (h), (i), (j)(1), (j)(6), and

erminated. The notification must identify the full

name of the individual requesting discontinuance, his position with the

facility, and the full identification of the facility. The requestor

shall confirm the telephone notification promptly in writing.

* * * * *

47. In Sec. 95.25, the introductory text of paragraph (a),

paragraphs (a)(2), (b), (c)(2), (f), (g), (h), (i), (j)(1), (j)(6), and

(j)(7) are revised to read as follows:

Sec. 95.25 Protection of National Security Information and Restricted

Data in storage.

(a) Secret matter, while unattended or not in actual use, must be

stored in--

* * * * *

(2) Any steel file cabinet that has four sides and a top and bottom

(all permanently attached by welding, rivets, or peened bolts so the

contents cannot be removed without leaving visible evidence of entry)

and is secured by a rigid metal lock bar and an approved key operated

or combination padlock. The keepers of the rigid metal lock bar must be

secured to the cabinet by welding, rivets, or bolts, so they cannot be

removed and replaced without leaving evidence of the entry. The drawers

of the container must be held securely so their contents cannot be

removed without forcing open the drawer. This type cabinet will be

accorded supplemental protection during non-working hours.

(b) Confidential matter while unattended or not in use must be

stored in the same manner as SECRET matter except that no supplemental

protection is required.

(2) Combinations must be changed by a person authorized access to

the contents of the container, or by the Facility Security Officer or

his or her designee.

* * * * *

(f) Combinations shall be changed only by persons authorized access

to Secret or Confidential National Security Information and/or

Restricted Data depending upon the matter authorized to be stored in

the security container.

(2) Combinations must be changed by a person authorized access to

the contents of the container, or by the Facility Security Officer or

his or her designee.

* * * * *

(f) Combinations shall be changed only by persons authorized access

to Secret or Confidential National Security Information and/or

Restricted Data depending upon the matter authorized to be stored in

the security container.

(g) Posted information. Containers may not bear external markings

indicating the level of classified matter authorized for storage. A

record of the names of persons having knowledge of the combination must

be posted inside the container.

(h) End of day security checks.

(1) Facilities that store classified matter shall establish a

system of security checks at the close of each working day to ensure

that all classified matter and security repositories have been

appropriately secured.

(2) Facilities operating with multiple work shifts shall perform

the security checks at the end of the last working shift in which

classified matter had been removed from storage for use. The checks are

not required during continuous 24-hour operations.

(i) Unattended security container found opened. If an unattended

security container housing classified matter is found unlocked, the

custodian or an alternate must be notified immediately. The container

must be secured by protective personnel and the contents inventoried as

soon as possible but not later than the next workday. A report

reflecting all actions taken must be submitted to the responsible

Regional Office (see 10 CFR part 73, Appendix A, for addresses) with an

information copy to the NRC Division of Facilities and Security within

30 days after the event. The licensee shall retain records pertaining

to these matters for 3 years after completion of final corrective

action.

not later than the next workday. A report

reflecting all actions taken must be submitted to the responsible

Regional Office (see 10 CFR part 73, Appendix A, for addresses) with an

information copy to the NRC Division of Facilities and Security within

30 days after the event. The licensee shall retain records pertaining

to these matters for 3 years after completion of final corrective

action.

(j) * * *

(1) A key and lock custodian shall be appointed to ensure proper

custody and handling of keys and locks used for protection of

classified matter;

* * * * *

(6) Keys and spare locks must be protected equivalent to the level

of classified matter involved;

(7) Locks must be changed or rotated at least every 12 months, and

must be replaced after loss or compromise of their operable keys; and

* * * * *

48. Section 95.27 is revised to read as follows:

Sec. 95.27 Protection while in use.

While in use, classified matter must be under the direct control of

an authorized individual to preclude physical, audio, and visual access

by persons who do not have the prescribed access authorization or other

written CSA disclosure authorization (see Sec. 95.36 for additional

information concerning disclosure authorizations).

49. In Sec. 95.29, paragraphs (a), (c)(2), and (c)(4) are revised

to read as follows:

Sec. 95.29 Establishment of restricted or closed areas.

(a) If, because of its nature, sensitivity or importance,

classified matter cannot

otherwise be effectively controlled in accordance with the provisions

of Secs. 95.25 and 95.27, a Restricted or Closed area must be

established to protect such matter.

* * * * *

. 95.29, paragraphs (a), (c)(2), and (c)(4) are revised

to read as follows:

Sec. 95.29 Establishment of restricted or closed areas.

(a) If, because of its nature, sensitivity or importance,

classified matter cannot

otherwise be effectively controlled in accordance with the provisions

of Secs. 95.25 and 95.27, a Restricted or Closed area must be

established to protect such matter.

* * * * *

(2) Access must be limited to authorized persons who have an

appropriate security clearance and a need-to-know for the classified

matter within the area. Persons without the appropriate level of

clearance and/or need-to-know must be escorted at all times by an

authorized person where inadvertent or unauthorized exposure to

classified information cannot otherwise be effectively prevented.

* * * * *

(4) Open shelf or bin storage of classified matter in Closed Areas

requires CSA approval. Only areas protected by an approved intrusion

detection system will qualify for approval.

50. In Sec. 95.33, paragraph (f) is revised to read as follows:

Sec. 95.33 Security education.

* * * * *

(f) Refresher Briefings. The licensee or other facility shall

conduct refresher briefings for all cleared employees every 3 years. As

a minimum, the refresher briefing must reinforce the information

provided during the initial briefing and inform employees of

appropriate changes in security regulations. This requirement may be

satisfied by use of audio/video materials and by issuing written

materials.

* * * * *

51. A new Sec. 95.34 is added to read as follows:

Sec. 95.34 Control of visitors.

(a) Uncleared visitors. Licensees, certificate holders, or others

subject to this part shall take measures to preclude access to

classified information by uncleared visitors.

in security regulations. This requirement may be

satisfied by use of audio/video materials and by issuing written

materials.

* * * * *

51. A new Sec. 95.34 is added to read as follows:

Sec. 95.34 Control of visitors.

(a) Uncleared visitors. Licensees, certificate holders, or others

subject to this part shall take measures to preclude access to

classified information by uncleared visitors.

(b) Foreign visitors. Licensees, certificate holders, or others

subject to this part shall take measures as may be necessary to

preclude access to classified information by foreign visitors.

(1) The names, dates of birth, and organizational affiliation and

status (e.g., resident aliens, dual citizenship) of foreign visitors

shall be provided to the Division of Facilities and Security 60 days in

advance of the visit. Unless an objection to the visit is received from

the NRC Division of Facilities and Security within the 60 day period,

the visit may proceed as scheduled.

(2) The licensee, certificate holder, or others shall retain

records of visits for 5 years beyond the date of the visit.

52. Section 95.35 is revised to read as follows:

Sec. 95.35 Access to National Security Information and Restricted

Data.

(a) Unless authorized by the Commission, a person subject to the

regulations in this part may not receive or permit any individual to

have access to Secret or Confidential National Security Information or

Restricted Data unless the individual has one of the following access

authorizations:

(1) A U.S. Government granted access authorization based on a

Single Scope Background Investigation and issued by the CSA which

permits an individual access to--

o the

regulations in this part may not receive or permit any individual to

have access to Secret or Confidential National Security Information or

Restricted Data unless the individual has one of the following access

authorizations:

(1) A U.S. Government granted access authorization based on a

Single Scope Background Investigation and issued by the CSA which

permits an individual access to--

(i) Secret Restricted Data related to nuclear weapons design,

manufacturing and vulnerability information; and certain particularly

sensitive Naval Nuclear Propulsion Program information (e.g., fuel

manufacturing technology) and Confidential Restricted Data; and

(ii) Secret and Confidential National Security Information which

includes intelligence information, CRYPTO (i.e., cryptographic

information) or other classified communications security (COMSEC)

information.

(2) A U.S. Government granted access authorization based on a

National Agency Check with Law and Credit investigation (NACLC) and

issued by the CSA which permits an individual access to Secret and

Confidential Restricted Data and Secret and Confidential National

Security Information other than that noted in paragraph (a)(1)(i) of

this section.

(3) Access to certain Confidential COMSEC information is permitted

as authorized by a National Communications Security Committee waiver

dated February 14, 1984.

(4) An established ``need-to-know'' for the information. (See

Definitions, Sec. 95.5).

(5) CSA approved storage facilities if classified documents or

material are to be transmitted to the individual.

(b) Classified information must not be released by a licensee or

other person to any personnel other than properly access authorized

Commission licensee employees, or other individuals authorized access

by the Commission.

-know'' for the information. (See

Definitions, Sec. 95.5).

(5) CSA approved storage facilities if classified documents or

material are to be transmitted to the individual.

(b) Classified information must not be released by a licensee or

other person to any personnel other than properly access authorized

Commission licensee employees, or other individuals authorized access

by the Commission.

licensed facilities by authorized representatives of IAEA is permitted

in accordance with Sec. 95.36 of this part.

53. In Sec. 95.36, paragraphs (a), (c), and (d) are revised to read

as follows:

Sec. 95.36 Access by representatives of the International Atomic

Energy Agency or by participants in other international agreements.

(a) Based upon written disclosure authorization from the NRC

Division of Facilities and Security that an individual is an authorized

representative of the International Atomic Energy Agency (IAEA) or

other international organization and that the individual is authorized

to make visits or inspections in accordance with an established

agreement with the United States Government, a licensee, certificate

holder or other person subject to this part shall permit the individual

(upon presentation of the credentials specified in Sec. 75.7 of this

chapter and any other credentials identified in the disclosure

authorization) to have access to matter which is classified National

Security Information that is relevant to the conduct of a visit or

inspection. A disclosure authorization under this section does not

authorize a licensee, certificate holder, or other person subject to

this part to provide access to Restricted Data.

* * * * *

chapter and any other credentials identified in the disclosure

authorization) to have access to matter which is classified National

Security Information that is relevant to the conduct of a visit or

inspection. A disclosure authorization under this section does not

authorize a licensee, certificate holder, or other person subject to

this part to provide access to Restricted Data.

* * * * *

provided by the Division of Facilities and Security, licensees, or

other persons subject to this part are authorized to release (i.e.,

transfer possession of) copies of documents which contain classified

National Security Information directly to IAEA inspectors and other

representatives officially designated to request and receive classified

National Security Information documents. These documents must be marked

specifically for release to IAEA or other international organizations

in accordance with instructions contained in the NRC's disclosure

authorization letter. Licensees and other persons subject to this part

may also forward these documents through the NRC to the international

organization's headquarters in accordance with the NRC disclosure

authorization. Licensees and other persons may not reproduce documents

containing classified National Security Information except as provided

in Sec. 95.43.

(d) Records regarding these visits and inspections must be

maintained for 5 years beyond the date of the visit or inspection.

These records must specifically identify each document which has been

released to an authorized representative and indicate the date of the

release. These records must also identify (in such detail as the

Division of Facilities and Security, by letter, may require) the

categories of documents that the authorized

tions must be

maintained for 5 years beyond the date of the visit or inspection.

These records must specifically identify each document which has been

released to an authorized representative and indicate the date of the

release. These records must also identify (in such detail as the

Division of Facilities and Security, by letter, may require) the

categories of documents that the authorized

representative has had access and the date of this access. A licensee

or other person subject to this part shall also retain Division of

Facilities and Security disclosure authorizations for 5 years beyond

the date of any visit or inspection when access to classified

information was permitted.

* * * * *

54. In Sec. 95.37, paragraph (c)(1)(iv) is removed and paragraphs

(c)(1)(i) and (h)(2) are revised to read as follows:

Sec. 95.37 Classification and preparation of documents.

* * * * *

(1) * * *

(i) Derivative classifications of classified National Security

Information must contain the identity of the source document or the

classification guide, including the agency and office of origin, on the

``Derived From'' line and its classification date. If more than one

source is cited, the ``Derived From'' line should indicate ``Multiple

Sources.'' The derivative classifier shall maintain the identification

of each source with the file or record copy of the derivatively

classified document.

* * * * *

(h) * * *

(2) In the event of a question regarding classification review, the

holder of the information or the authorized classifier shall consult

the NRC Division of Facilities and Security, Information Security

Branch, for assistance.

* * * * *

55. In Sec. 95.39, the heading, paragraphs (b)(3) and (c)(2) are

revised to read as follows:

Sec. 95.39 External transmission of classified matter.

* * * * *

2) In the event of a question regarding classification review, the

holder of the information or the authorized classifier shall consult

the NRC Division of Facilities and Security, Information Security

Branch, for assistance.

* * * * *

55. In Sec. 95.39, the heading, paragraphs (b)(3) and (c)(2) are

revised to read as follows:

Sec. 95.39 External transmission of classified matter.

* * * * *

(b) * * *

(3) The outer envelope or wrapper must contain the addressee's

classified mailing address. The outer envelope or wrapper may not

contain any classification, additional marking or other notation that

indicate that the enclosed document contains classified information.

The Classified Mailing Address shall be uniquely designated for the

receipt of classified information. The classified shipping address for

the receipt of material (e.g., equipment) should be different from the

classified mailing address for the receipt of classified documents.

* * * * *

(2) Confidential matter may be transported by one of the methods

set forth in paragraph (c)(1) of this section, by U.S. express or

certified mail. Express or certified mail may be used in transmission

of Confidential documents to Puerto Rico or any United States territory

or possession.

* * * * *

56. In Sec. 95.45, paragraph (a) is revised to read as follows:

Sec. 95.45 Changes in classification.

(a) Documents containing classified National Security Information

must be downgraded or declassified as authorized by the NRC

classification guides or as determined by the NRC. Requests for

downgrading or declassifying any NRC classified information should be

forwarded to the NRC Division of Facilities and Security, Office of

Administration, Washington, DC 20555-0001. Requests for downgrading or

declassifying of Restricted Data will be forwarded to the NRC Division

of Facilities and Security for coordination with the Department of

Energy.

* * * * *

57. Section 95.47 is revised to read as follows:

assifying any NRC classified information should be

forwarded to the NRC Division of Facilities and Security, Office of

Administration, Washington, DC 20555-0001. Requests for downgrading or

declassifying of Restricted Data will be forwarded to the NRC Division

of Facilities and Security for coordination with the Department of

Energy.

* * * * *

57. Section 95.47 is revised to read as follows:

Sec. 95.47 Destruction of matter containing classified information.

Documents containing classified information may be destroyed by

burning, pulping, or another method that ensures complete destruction

of the information that they contain. The method of destruction must

preclude recognition or reconstruction of the classified information.

Any doubts on methods should be referred to the CSA.

58. Section 95.53 is revised to read as follows:

Sec. 95.53 Termination of facility clearance.

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

transport, or handle classified matter no longer exists, the facility

clearance will be terminated. The facility may deliver all documents

and matter containing classified information to the Commission or to a

person authorized to receive them or destroy all such documents and

matter. In either case, the facility shall submit a certification of

nonpossession of classified information to the NRC Division of

Facilities and Security within 30 days of termination of facility

clearance.

inated. The facility may deliver all documents

and matter containing classified information to the Commission or to a

person authorized to receive them or destroy all such documents and

matter. In either case, the facility shall submit a certification of

nonpossession of classified information to the NRC Division of

Facilities and Security within 30 days of termination of facility

clearance.

(b) In any instance where facility clearance has been terminated

based on a determination of the CSA that further possession of

classified matter by the facility would not be in the interest of the

national security, the facility shall, upon notice from the CSA,

dispose of classified documents in a manner specified by the CSA.

59. Section 95.57 is revised to read as follows:

Sec. 95.57 Reports.

Each licensee or other person having a facility clearance shall

report to the CSA and the Regional Administrator of the appropriate NRC

Regional Office listed in 10 CFR part 73, Appendix A,

(a) Any alleged or suspected violation of the Atomic Energy Act,

Espionage Act, or other Federal statutes related to classified

information. Incidents such as this must be reported within 1 hour of

the event followed by written confirmation;

(b) Any infractions, losses, compromises or possible compromise of

classified information or classified documents not falling within

paragraph (a) of this section. Incidents such as these must be reported

via written notification within 30 days of the incident. The report

shall include details of the incident including corrective action

taken;

the event followed by written confirmation;

(b) Any infractions, losses, compromises or possible compromise of

classified information or classified documents not falling within

paragraph (a) of this section. Incidents such as these must be reported

via written notification within 30 days of the incident. The report

shall include details of the incident including corrective action

taken;

actions (documents classified, declassified, or downgraded) to be

submitted to the NRC Division of Facilities and Security. These may be

submitted on an as completed basis or every 30 days. The information

may be submitted either electronically by an on-line system (NRC

prefers the use of a dial-in automated system connected to the Division

of Facilities and Security) or by paper copy using NRC Form 790.

Dated at Rockville, Maryland, this 16th day of July, 1998.

For the Nuclear Regulatory Commission.

L. Joseph Callan,

Executive Director for Operations.

[FR Doc. 98-20602 Filed 7-31-98; 8:45 am]

BILLING CODE 7590-01-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.