[Federal Register Volume 71, Number 134 (Thursday, July 13, 2006)]
[Rules and Regulations]
[Pages 39526-39534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-6123]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 700

[Docket No. 060614165-6165-01]
RIN 0694-AD79


Defense Priorities and Allocations System (DPAS): Administrative 
and Technical Corrections

AGENCY: Bureau of Industry and Security, U.S. Department of Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Defense Priorities and Allocations System (DPAS) Regulation (15 CFR 
part 700) to make administrative and technical corrections. These 
amendments do not alter the substance or effect of the DPAS regulation.

DATES: This rule is effective July 13, 2006.

FOR FURTHER INFORMATION CONTACT: Liam McMenamin, Office of Strategic 
Industries and Economic Security, Bureau of Industry and Security, U.S. 
Department of Commerce, Telephone: (202) 482-2233.

SUPPLEMENTARY INFORMATION:

Background

    Under Title I of the Defense Production Act of 1950 (DPA), as 
amended, (50 U.S.C. App. 2061, et seq.), the President is authorized to 
require preferential acceptance and performance of contracts or orders 
supporting certain approved national defense and energy programs, and 
to allocate materials, services, and facilities in such a manner as to 
promote these approved programs. Additional priorities authority is 
found in section 18 of the Selective Service Act of 1948 (50 U.S.C. 
App. 468), 10 U.S.C. 2538, and 50 U.S.C. 82. The President delegated 
the priorities and allocations authorities of the DPA in Executive 
Order 12919 (June 3, 1994; amended by Executive Order 13286, February 
28, 2003). As part of that delegation, the President designated the 
Secretary of Commerce to administer the Defense Priorities and 
Allocations System (DPAS). DPAS authority has also been extended to 
support emergency preparedness activities under Title VI of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (Stafford 
Act), as amended (42 U.S.C. 5195, et seq.). The DPAS regulation is 
found at 15 CFR part 700.
    As part of its periodic review of the DPAS regulation, the 
Department of Commerce has identified several typographical errors and 
outdated provisions in the DPAS regulation. Accordingly, this rule 
amends the DPAS regulation to correct those errors and delete outdated 
or obsolete provisions and language. This rule also amends the list of 
approved programs in Schedule I to the regulation.

Amendments to the DPAS Regulation

    This rule revises the DPAS regulation by correcting the citation to 
the Defense Production Act's definition of ``national defense'' in 
section 700.1(c) and notes that the definition of this term was amended 
in the December 2003 reauthorization of the Defense Production Act 
(Pub. L. 108-195) to include critical infrastructure protection and 
restoration.
    This rule also corrects a typographical error in section 700.2(a) 
by replacing ``Schedule 1'' with ``Schedule I.''
    This rule removes erroneous references in section 700.2(c), 
700.10(b), 700.18(b)(1)(i), 700.18(b)(2), and 700.55(b)(2) to copies of 
delegations of authority and memoranda of understanding being provided 
as appendices to part 700. The Department has not published these 
documents as appendices to part 700 since 1998, following a 
determination that these documents are of limited public interest 
because they describe administrative interagency agreements.
    This rule replaces the words ``Director, Federal Emergency 
Management Agency'' with ``Secretary of Homeland Security'' in the 
definition of Approved Program in section 700.8 to reflect the 
amendments to Executive Order 12919 contained in Executive Order 13286.
    This rule changes the program identification symbol examples in 
section 700.11(c) from ``A1, B2, or H6'' to read ``A1, C2, or N1.'' 
Program identification symbols indicate which approved program is being 
supported by

[[Page 39527]]

a rated order. The ``B2'' symbol is not an approved program 
identification symbol and the ``H6'' symbol is not commonly used.
    This rule corrects a citation error in section 700.18(a)(2)(iv)(b). 
Information on requesting priority rating authority is found in section 
700.51, not in section 700.53.
    This rule adds a sentence to section 700.18(b)(1)(i) clarifying 
that the Departments of Agriculture and Commerce have agreed that the 
Department of Defense may place rated contracts and orders for food 
resources in support of troops, including but not limited to, meals 
ready to eat (MRE), ``tray-packs'' (T-rations), A-rations, and B-
rations. The 1991 agreement between the Departments of Agriculture and 
Commerce is recorded as Attachment A to the Department of Commerce's 
delegation of authority to the Department of Defense. This rule also 
removes the erroneous reference in section 700.18(b)(1)(i) to a copy of 
the Department of Commerce's delegation of authority to the Department 
of Defense being provided as an appendix to part 700.
    This rule removes erroneous references to a memorandum of 
understanding between the Departments of Commerce and Interior in 
sections 700.18(b)(1)(vii) and 700.18(b)(2). The Department of Commerce 
terminated this memorandum of understanding in 1998.
    This rule removes section 700.30(b). The Department of Commerce has 
rescinded DPAS Emergency Delegation 1. The Department of Commerce has 
reviewed its emergency preparedness plans and determined that DPAS 
Emergency Delegation 1 is not necessary to administer this regulation 
in a national emergency because the Department's internal emergency 
plans provide for continuation of the DPAS and related activities.
    This rule corrects a citation error in section 700.60(b). 
Administrative Subpoenas, Demands for Information, and Inspection 
Authorizations are discussed in section 700.71(c), not in section 
700.71(b).
    This rule changes the name ``Office of Industrial Resource 
Administration,'' referenced in sections 700.72(b) and 700.93, to 
``Office of Strategic Industries and Economic Security'' to reflect the 
current name of that organization.
    This rule corrects an error in section 700.81(b) related to the 
title of the official who has the discretion to accept an appeal after 
the prescribed 45-day period for good cause shown. The Assistant 
Secretary for Export Administration has this discretion.
    This rule revises Schedule I to the regulation by adding a list of 
Homeland Security programs in the first column to reflect the 
Department of Commerce's March 2006 DPAS delegation to the Department 
of Homeland Security.
    This rule revises the current N1 program identification symbol and 
adds N2-N8 to the list of approved programs for priorities and 
allocations support in Schedule I's first and second columns. The 
Department of Homeland Security provided the Department of Commerce 
with the list of Homeland Security programs approved for priorities and 
allocations support in June 2006.
    This rule also replaces the words ``Federal Emergency Management 
Agency'' with ``Department of Homeland Security'' in Schedule I's third 
column to reflect the March 2006 DPAS delegation to the Department of 
Homeland Security.
    This rule changes the names of the Department of Defense agencies 
listed in footnote 1 to Schedule I to reflect the current 
organizational structure of the Department of Defense.
    This rule also corrects an error in Appendix I to part 700 by 
replacing the former Form BXA-999, ``Request for Special Priorities 
Assistance,'' with a copy of the current Form BIS-999, ``Request for 
Special Priorities Assistance.''

Rulemaking Requirements

    1. This rule has been determined to be not significant for purposes 
of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with a collection of information, subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et 
seq.) unless the collection of information displays a currently valid 
Office of Management and Budget control number. This rule does not 
involve any collections of information that are subject to the 
Paperwork Reduction Act.
    3. This rule does not contain policies with federalism implications 
as this term is defined in Executive Order 13132.
    4. The Department finds that there is good cause under 5 U.S.C. 
553(b)(B) to waive the provisions of the Administrative Procedure Act 
(APA) requiring prior notice and the opportunity for public comment. 
Because these revisions are not substantive changes to the DPAS 
regulation, and because the nature of these changes is of little public 
interest, it is unnecessary to provide notice and opportunity for 
public comment under APA standards. In addition, the 30-day delay in 
effectiveness required by 5 U.S.C. 553(d) is not applicable because 
this rule is not a substantive rule. It is purely administrative in 
nature and does not affect the rights of the public. No other law 
requires that a notice of proposed rulemaking and an opportunity for 
public comment be given for this rule.
    The analytical requirements of the Regulatory Flexibility Act (5 
U.S.C. 601, et seq.) are not applicable because notice of proposed 
rulemaking and opportunity for public comment are not required to be 
given for this rule under the Administrative Procedure Act or by any 
other law.

List of Subjects in 15 CFR Part 700

    Administrative practice and procedure, Business and industry, 
Government contracts, National defense, Reporting and recordkeeping 
requirements, Strategic and critical materials.


0
For the reasons discussed in the preamble, the Department of Commerce 
amends 15 CFR part 700 as follows:

PART 700--[AMENDED]

0
1. The authority citation for part 700 continues to read as follows:

    Authority: Titles I and VII of the Defense Production Act of 
1950, as amended (50 U.S.C. App. 2061, et seq.), Title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195, et seq.), Executive Order 12919, 59 FR 29525, 3 CFR, 
1994 Comp. 901, and Executive Order 13286, 68 FR 10619, 3 CFR, 2003 
Comp. 166; section 18 of the Selective Service Act of 1948 (50 
U.S.C. App. 468), 10 U.S.C. 2538, 50 U.S.C. 82, and Executive Order 
12742, 56 FR 1079, 3 CFR, 1991 Comp. 309; and Executive Order 12656, 
53 FR 226, 3 CFR, 1988 Comp. 585.

0
2. In Sec.  700.1, revise the second sentence in paragraph (c) to read 
as follows:


Sec.  700.1  Purpose of this regulation.

* * * * *
    (c) * * * The definition of ``national defense'' in section 702(14) 
of the Defense Production Act provides that this term includes 
``emergency preparedness activities'' conducted pursuant to Title VI of 
the Stafford Act and ``critical infrastructure protection and 
restoration.''
* * * * *

0
3. In Sec.  700.2, revise the last sentence in paragraph (a) and 
paragraph (c) to read as follows:

[[Page 39528]]

Sec.  700.2  Introduction.

    (a) * * * A complete list of currently approved programs is 
provided at Schedule I to this part.
* * * * *
    (c) Commerce has delegated authorities to place priority ratings on 
contracts or orders necessary or appropriate to promote the national 
defense to the government agencies that issue such contracts or orders. 
Schedule I includes a list of agencies delegated this authority.

0
4. In Sec.  700.8, revise the definition of Approved Program to read as 
follows:


Sec.  700.8  Definitions.

* * * * *
    Approved program. A program determined as necessary or appropriate 
for priorities and allocations support to promote the national defense 
by the Secretary of Defense, the Secretary of Energy, or the Secretary 
of Homeland Security, under the authority of the Defense Production 
Act, the Stafford Act, and Executive Order 12919, or the Selective 
Service Act and related statutes and Executive Order 12742.
* * * * *

0
5. In Sec.  700.10, revise paragraph (b) to read as follows:


Sec.  700.10  Delegation of authority.

* * * * *
    (b) Within the Department of Commerce, these responsibilities have 
been assigned to the Office of Strategic Industries and Economic 
Security. The Department of Commerce has authorized the Delegate 
Agencies to assign priority ratings to orders for items needed for 
approved programs.

0
6. In Sec.  700.11, revise the first sentence in paragraph (c) to read 
as follows:


Sec.  700.11  Priority ratings.

* * * * *
    (c) Priority ratings. A priority rating consists of the rating 
symbol--DO and DX--and the program identification symbol, such as A1, 
C2, or N1. * * *

0
7. In Sec.  700.18, revise the second sentence in paragraph 
(a)(2)(iv)(B) and paragraphs (b)(1) and (b)(2) to read as follows:


Sec.  700.18  Limitations on placing rated orders.

* * * * *
    (2) * * *
    (iv) * * *
    (B) * * * [For information on requesting priority rating authority, 
see Sec.  700.51.]
* * * * *
    (b) Jurisdiction limitations. (1) The priorities and allocations 
authority for certain items have been delegated under Executive Orders 
12919 and 12742, other executive order, or Interagency Memoranda of 
Understanding to other agencies. Unless otherwise agreed to by the 
concerned agencies, the provisions of this part are not applicable to 
these items which include:
    (i) Food resources, food resource facilities, and the domestic 
distribution of farm equipment and commercial fertilizer (Department of 
Agriculture) (The Department of Agriculture and the Department of 
Commerce have agreed that the Department of Defense may place rated 
contracts and orders for food resources in support of troops, including 
but not limited to, meals ready to eat (MREs), ``tray-packs'' (T-
rations), A-rations, and B-rations);
    (ii) All forms of energy, including radioisotopes, stable isotopes, 
source material, and special nuclear material produced in Government-
owned plants or facilities operated by or for the Department of Energy 
(Department of Energy);
    (iii) Health resources (Department of Health and Human Services);
    (iv) All forms of civil transportation (Department of 
Transportation);
    (v) Water resources (Department of Defense/U.S. Army Corps of 
Engineers); and
    (vi) Communications services (National Communications System under 
Executive Order 12472 of April 3, 1984).
    (2) The jurisdiction of the Department of Commerce and the 
Departments of Energy and Agriculture over certain specific items 
included in the categories listed above has been clarified by 
Interagency Memoranda of Understanding.
* * * * *

0
8. In Sec.  700.30, remove and reserve paragraph (b).

0
9. In Sec.  700.55, revise paragraph (b)(2) to read as follows:


Sec.  700.55  Assistance programs with Canada and other nations.

* * * * *
    (b) * * *
    (2) The Department of Commerce coordinates with the Canadian Public 
Works and Government Services Canada on all matters of mutual concern 
relating to the administration of this regulation.
* * * * *

0
10. In Sec.  700.60, revise the second sentence in paragraph (b) to 
read as follows:


Sec.  700.60  General provisions.

* * * * *
    (b) * * * Other official actions which pertain to compliance 
(Administrative Subpoenas, Demands for Information, and Inspection 
Authorizations) are discussed in Sec.  700.71(c).

0
11. In Sec.  700.72, revise paragraph (b) to read as follows:


Sec.  700.72  Compulsory process.

* * * * *
    (b) Compulsory process may be sought in advance of an audit, 
investigation, or other inquiry, if, in the judgment of the Director of 
the Office of Strategic Industries and Economic Security, U.S. 
Department of Commerce, in consultation with the Chief Counsel for 
Industry and Security, U.S. Department of Commerce, there is reason to 
believe that a person will refuse to permit an audit, investigation, or 
other inquiry, or that other circumstances exist which make such 
process desirable or necessary.

0
12. In Sec.  700.81, revise the last sentence in paragraph (b) to read 
as follows:


Sec.  700.81  Appeals.

* * * * *
    (b) * * * After this 45-day period, an appeal may be accepted at 
the discretion of the Assistant Secretary for Export Administration for 
good cause shown.
* * * * *

0
13. Revise Sec.  700.93 to read as follows:


Sec.  700.93  Communications.

    All communications concerning this regulation, including requests 
for copies of the regulation and explanatory information, requests for 
guidance or clarification, and requests for adjustment or exception 
shall be addressed to the Office of Strategic Industries and Economic 
Security, Room 3876, U.S. Department of Commerce, Washington, DC 20230, 
Ref: DPAS; telephone: (202) 482-3634 or fax: (202) 482-5650.

[[Page 39529]]

Schedule I to Part 700--Approved Programs and Delegate Agencies

* * * * *

0
14. In Schedule I to Part 700, add the heading ``Homeland security 
programs'', revise N1, add N2-N8, and revise \1\ to read as follows:
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    \1\ Department of Defense includes: The Office of the Secretary 
of Defense, the Military Departments, the Joint Staff, the Combatant 
Commands, the Defense Agencies, the Defense Field Activities, all 
other organizational entities in the Department of Defense, and, for 
purposes of this regulation, the Central Intelligence Agency and the 
National Aeronautics and Space Administration as Associated 
Agencies.

------------------------------------------------------------------------
 Program identification symbol     Approved program      Delegate agency
------------------------------------------------------------------------
 
                              * * * * * * *
Homeland security programs:
    N1........................  Federal emergency       Department of
                                 preparedness,           Homeland
                                 mitigation, response,   Security.
                                 and recovery.
    N2........................  State, local, tribal     Do.
                                 government emergency
                                 preparedness,
                                 mitigation, response,
                                 and recovery.
    N3........................  Intelligence and         Do.
                                 warning systems.
    N4........................  Border and               Do.
                                 transportation
                                 security.
    N5........................  Domestic and counter-    Do.
                                 terrorism, including
                                 law enforcement.
    N6........................  Chemical, biological,    Do.
                                 radiological, and
                                 nuclear
                                 countermeasures.
    N7........................  Critical                 Do.
                                 infrastructure
                                 protection and
                                 restoration.
    N8........................  Miscellaneous.........   Do.
------------------------------------------------------------------------

* * * * *
0
15. Revise Appendix I to part 700 to read as follows:

Appendix I to Part 700--Form BIS-999--Request for Special Priorities 
Assistance

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    Dated: July 3, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 06-6123 Filed 7-12-06; 8:45 am]
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