[Federal Register: June 10, 2008 (Volume 73, Number 112)]
[Rules and Regulations]
[Page 32637-32648]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10jn08-2]
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DEPARTMENT OF ENERGY
10 CFR Part 1017
RIN 1992-AA35
Identification and Protection of Unclassified Controlled Nuclear
Information
AGENCY: Office of Health, Safety and Security, Department of Energy.
ACTION: Final rule.
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SUMMARY: The Department of Energy (DOE) is today publishing a final
rule to amend regulations that prohibit the unauthorized dissemination
of certain unclassified but sensitive information identified as
Unclassified Controlled Nuclear Information (UCNI). DOE is amending
these regulations to clarify the types of information that may be
identified as UCNI; to prevent overly-broad application of UCNI
controls; and to streamline the UCNI program by simplifying the process
for identifying information as UCNI.
DATES: Effective Date: This final rule is effective December 8, 2008.
FOR FURTHER INFORMATION CONTACT: Nicholas G. Prospero, Office of
Classification, U.S. Department of Energy, 1000 Independence Ave., SW.,
Washington, DC 20585-1290, (301) 903-9967; Jo Ann Williams, Office of
the General Counsel, U.S. Department of Energy, 1000 Independence Ave.,
SW., Washington, DC 20585, (202) 586-6899.
SUPPLEMENTARY INFORMATION:
I. Background
II. DOE's Response to Comments
III. Procedural Requirements
A. Review Under Executive Order 12866
B. Review Under the Regulatory Flexibility Act
C. Review Under the Paperwork Reduction Act
D. Review Under the National Environmental Policy Act
E. Review Under Executive Order 13132
F. Review Under Executive Order 12988
G. Review Under the Unfunded Mandates Reform Act of 1995
H. Review Under the Treasury and General Government
Appropriations Act, 1999
I. Review Under the Treasury and General Government
Appropriations Act, 2001
J. Review Under Executive Order 13211
K. Congressional Notification
I. Background
Under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), DOE
is charged with the operation of programs for research, development,
testing, and production of nuclear weapons; for nuclear material
production for defense activities; and for certain defense-related
nuclear reactors. In 1981, Congress and DOE became increasingly
concerned about the possibility of terrorist or other criminal acts
directed against a Government nuclear defense activity. This concern
was based, in part, on the increased incidence of acts of terrorist-
inspired violence, the increased sophistication of these acts, and the
increased availability of the technological resources, including
information in the public domain, necessary to commit these acts.
In response to this threat, Congress, in 1982, amended the Atomic
Energy Act of 1954 (hereafter ``the Act'') by adding section 148
(``Prohibition Against the Dissemination of Certain Unclassified
Information''), which directed DOE to adopt regulations to safeguard
certain types of unclassified but sensitive information from
unauthorized dissemination in the interest of protecting both the
health and safety of
[[Page 32638]]
the public and the common defense and security of the Nation. Congress
recognized that while much information concerning atomic energy defense
programs was classified, a new statutory provision was necessary to
protect certain sensitive information that could not be classified
under statute or executive order for operational or legal reasons.
Section 148 was not without precedent. In 1980, the Congress
amended the Act to add section 147. Section 147 of the Act requires the
Nuclear Regulatory Commission to prohibit the unauthorized disclosure
of Safeguards Information, which includes a licensee's or applicant's
procedures and security measures for the protection of special nuclear
material, source material, or byproduct material. Under section 147,
Safeguards Information also includes security measures for the
protection of and location of certain plant equipment vital to the
safety of production or utilization facilities. The major purpose of
section 148 is to require DOE to control similar sensitive information
about its atomic energy defense programs as section 147 protects with
respect to commercial and other non-DOE nuclear facilities.
Section 148 directs the Secretary of Energy (the Secretary) to
prescribe regulations, after notice and opportunity for public comment,
or issue orders as may be necessary to prohibit the unauthorized
dissemination of certain unclassified information concerning atomic
energy defense programs. This information must pertain to the
following:
1. The design of production or utilization facilities;
2. Security measures (including security plans, procedures, and
equipment) for the physical protection of (a) production or utilization
facilities or (b) nuclear material, regardless of its physical state or
form, contained in these facilities or in transit; or,
3. The design, manufacture, or utilization of nuclear weapons or
components that were once classified as Restricted Data, as defined in
section 11y. of the Act.
In order for the information in the above categories to be
controlled under section 148, the Secretary must determine that the
unauthorized dissemination of such information could reasonably be
expected to have a significant adverse effect on the health and safety
of the public or the common defense and security by significantly
increasing the likelihood of: (1) The illegal production of nuclear
weapons, or (2) the theft, diversion, or sabotage of nuclear materials,
equipment, or facilities. UCNI only includes Government information
that: (1) is not classified; (2) concerns atomic energy defense
programs; (3) falls within at least one of the three categories
described above; (4) meets the adverse effect test described above; and
(5) is not exempt from being UCNI under these regulations.
On September 14, 2007, DOE published a notice of proposed
rulemaking (NOPR) for the purpose of clarifying and updating its UCNI
regulations at 10 CFR part 1017. 72 FR 52506. Part 1017 provides for
the review of information prior to its designation as UCNI; describes
how information is determined to be UCNI; establishes minimum physical
protection standards for documents and material containing UCNI;
specifies who may have access to UCNI; and establishes a procedure for
the imposition of penalties on persons who violate section 148 of the
AEA, DOE regulations or any order of the Secretary issued under section
148. As explained in the NOPR, DOE proposed certain changes to simplify
and streamline the UCNI program based on experience gained in the
program. 72 FR 52507-09.
II. DOE's Response to Comments
The following discussion describes the major issues raised in
comments received and provides DOE's response to these comments, and
describes any resulting changes in the final regulations. DOE has also
made a few editorial, stylistic, and format changes for clarity and
consistency.
One commenter suggested that the intent of adding the definition of
``utilization facility'' as described in the NOPR (Section II,
Description of Proposed Changes, A.1), did not appear to be consistent
with the definition for ``utilization facility'' in proposed Sec.
1017.4. DOE disagrees. The intent of adding the definition of
``utilization facility'' is to more precisely define the types of
information that can be UCNI. DOE has done this by (1) linking the
definition of ``utilization facility'' to the presence of special
nuclear material and (2) including within the definition of
``utilization facility'' specific categories of equipment and devices
that can be UCNI. The proposed definition of ``utilization facility''
in Sec. 1017.4 is based on the definition from the Act, which defines
``utilization facility'' as ``any equipment or device, except an atomic
weapon, determined by rule of the Commission to be capable of making
use of special nuclear material in such quantity as to be of
significance to the common defense and security.'' Therefore, the first
condition that must be met in order to determine whether a facility is
a ``utilization facility'' is that it must use or be capable of using
special nuclear material. The proposed definition of ``utilization
facility'' also contains specific lists of equipment, devices, or
component parts. If the equipment, device, or component part is not on
one of the lists provided in the definition, then it does not meet the
second condition and therefore cannot be determined to be a
``utilization facility.'' Our intent as described in the NOPR is to
more precisely define what information may be identified as UCNI. Since
our proposed definition of ``utilization facility'' provides this more
precise definition, DOE finds them to be consistent.
This commenter was also concerned that the definitions of
``utilization facility'' and ``production facility'' in Sec. 1017.4 do
not provide adequate information for the contractor to determine
whether any of its sites is an ``UCNI sensitive facility'' for purposes
of a DOE internal directive, UCNI General Guideline (GG-5). Because
this comment applies to provisions set forth in that directive, not in
these regulations, DOE will consider the comment in revising that
directive.
This commenter questioned why the language in the NOPR (Section II,
A.1.) stating that storage facilities are not considered to be
production or utilization facilities was not included in the regulatory
text. The definitions for ``production facility'' and ``utilization
facility'' in Sec. 1017.4 include lists of specific categories of
equipment and devices and provide the necessary information for a site
to determine whether any of its facilities meet the definition of
``production facility'' or ``utilization facility'' and whether any
should be subject to UCNI controls. DOE included in the NOPR preamble
several examples of facilities, like storage facilities, that do not
meet the definition of either ``production facility'' or ``utilization
facility'' to further clarify the coverage of the definitions. However,
DOE sees no need to include examples of what is not covered in the
definitions.
The commenter suggested that the definitions of ``production
facility'' and ``utilization facility'' were phrased incorrectly
because they describe ``any equipment or device.'' DOE disagrees. The
terms ``production facility'' and ``utilization facility'' are defined
in the Act, and both definitions begin with the language ``any
equipment or device.'' These terms have specific meanings in relation
to special nuclear material. The plain language definition and usage of
the word ``facility'' should not be
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confused with the definitions of ``production facility'' and
``utilization facility'' as used in these regulations.
The commenter also suggested that our clarification of the concept
of ``widely disseminated in the public domain'' did not consider the
highly motivated malefactor who might use the professional staff at a
research or public library to locate a report that was once widely
disseminated in the public domain. DOE's position is that if the report
can be found by anyone at the library, with or without help, then it is
considered ``widely disseminated in the public domain'' and it cannot
be protected as UCNI.
A second commenter pointed out that our proposed criteria for
determining whether a document is widely disseminated in the public
domain in proposed Sec. 1017.15(a) was too narrow because it did not
include documents housed in Government technical information services
or depository library systems. We agree with the commenter and have
modified the language in Sec. 1017.15(a) to read, ``The Reviewing
Official must first determine whether the document is widely
disseminated in the public domain, which means that the document under
review is publicly available from a Government technical information
service or depository library, for example, or that it can be found in
a public library or an open literature source, or it can be accessed on
the Internet using readily available search methods.''
One commenter noted that the language in proposed Sec. 1017.10
discussing the ``adverse effect test'' described information that could
be classified under DOE classification guidance and suggested that the
word ``significant'' before ``adverse effect'' be deleted. The
``significant adverse effect'' standard in Sec. 1017.10 is the
standard set by paragraph a.(2) of section 148 of the Act, which
provides the criteria for DOE to use in determining that information is
UCNI.
This commenter also suggested a change to the language in proposed
Sec. 1017.17(b) concerning marking a document or material that does
not contain UCNI. The commenter points out that while no UCNI markings
are required if the document or material does not contain UCNI, other
unclassified control markings may be. DOE agrees and has modified the
language to read, ``No UCNI markings are required in this case.''
The commenter also observed that use of the terms ``special nuclear
material'' and ``nuclear material'' was blurred throughout the
regulations. These terms are used throughout the regulations in the
appropriate context. ``Nuclear material'' is defined in Sec. 1017.4.
For convenience, DOE has added a definition of ``special nuclear
material'' to Sec. 1017.4.
DOE received two comments regarding the civil penalty enforcement
provisions in the proposed rule. The first comment relates to proposed
Sec. 1017.29(l)(5), renumbered as Sec. 1017.29(m)(5), which states
that DOE has the burden of going forward with and of proving by a
preponderance of the evidence that the violation occurred as set forth
in the final notice of violation and that the proposed civil penalty is
appropriate. The commenter suggested that the standard of ``clear and
convincing evidence'' was more appropriate than ``preponderance of
evidence.'' DOE rejects this comment because ``the preponderance of
evidence'' is the standard in most civil cases in the United States and
it is the standard in ``Procedural Rules for the Assessment of Civil
Penalties for Classified Information Security Violations'' (10 CFR part
824).
This commenter also stated that the proposed civil penalty
provisions do not provide for enforcement conferences or provide the
opportunity for DOE to mitigate the fines. We have accepted this
comment in part and added a new Sec. 1017.29(e) ``Enforcement
conference'' that is modeled after Sec. 820.22 ``Informal conference''
of ``Procedural Rules for DOE Nuclear Activities'' (10 CFR part 820).
The Director may convene this conference to obtain and discuss
information including mitigating circumstances. DOE notes, however,
that mitigation was already provided for in DOE's proposed regulations.
Proposed section 1017.29(m)(1), renumbered in the final rule as Sec.
1017.29(n)(1), sets out the mitigating factors that the hearing officer
will consider in determining the amount of the civil penalty. The
mitigating factors listed are identical to those set forth in 10 CFR
824.13 related to classified information. Section 1017.29(n)(2) in the
final rule also provides that the Secretary reviewing an initial
decision may modify the amount of any civil penalty proposed.
III. Procedural Requirements
A. Review Under Executive Order 12866
Today's regulatory action has been determined not to be a
``significant regulatory action'' under Executive Order 12866,
``Regulatory Planning and Review,'' 58 FR 51735 (October 4, 1993).
Accordingly, this notice of final rulemaking was not subject to review
by OMB under the Executive Order.
B. Review Under the Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires
preparation of an initial regulatory flexibility analysis for any rule
that by law must be proposed for public comment, unless the agency
certifies that the rule, if promulgated, will not have a significant
economic impact on a substantial number of small entities. As required
by Executive Order 13272, ``Proper Consideration of Small Entities in
Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE published
procedures and policies to ensure that the potential impacts of its
draft rules on small entities are properly considered during the
rulemaking process (68 FR 7990, February 19, 2003), and has made them
available on the Office of the General Counsel's Web site: http://
www.gc.doe.gov. DOE has reviewed today's rule under the provisions of
the Regulatory Flexibility Act and the procedures and policies
published on February 19, 2003.
Today's final rule amends DOE's policies and procedures regarding
UCNI. The rule will apply to all agencies, persons, and entities that
generate and maintain UCNI documents or material. DOE estimates that
fewer than five Federal Government entities have access to UCNI
documents or material. Each of these Government entities may, in turn,
have contractors or consultants who have access to UCNI documents or
material.
Section 1017.14 imposes on Government and non-Government entities
the requirement that persons who review documents for UCNI be properly
trained and certified. The economic impact of the training requirement
on non-Government entities would be limited to the labor hours required
to familiarize those persons reviewing documents for UCNI with the
training materials provided by DOE.
Section 1017.16 requires that Government and non-Government
Reviewing Officials clearly mark or authorize the marking of a new
document or material to convey that it contains UCNI. The burden of the
marking requirement would vary depending on the number of documents or
amount of material the entity generates. DOE considers the proper
marking of a controlled document to be an act integrated in the act of
creating the document. As such, the marking of documents or material
containing UCNI imposes minimal costs on the entity
[[Page 32640]]
generating new UCNI documents or material.
DOE recognizes that in most cases non-Government entities that
generate documents or material containing UCNI will do so pursuant to a
Government contract. In such cases, any costs incurred in compliance
with these regulations will be charged back to the Government.
Infrequently, DOE may enter into an agreement (e.g., a Cooperative
Research and Development Agreement) with a non-Government entity in
which DOE provides UCNI to the entity without any vehicle for
reimbursement by the Government for increased security costs. However,
since UCNI is protected in a manner similar to how a company protects
proprietary or employees' personal information, the incremental cost of
protecting UCNI would be negligible. In these cases, this rule will
have only a minor economic impact on very few small entities.
On the basis of the foregoing, DOE certifies that the rule will not
have a significant economic impact on a substantial number of small
entities. No comments were received regarding this certification or the
economic impact of this rule. Accordingly, DOE has not prepared a
regulatory flexibility analysis for this rulemaking.
C. Review Under the Paperwork Reduction Act
No new information or record keeping requirements are imposed by
this rulemaking. Accordingly, no OMB clearance is required under the
Paperwork Reduction Act (44 U.S.C. 3501 et seq.).
D. Review Under the National Environmental Policy Act of 1969
DOE has concluded that promulgation of this rule falls into a class
of actions that would not individually or cumulatively have a
significant impact on the human environment, as determined by DOE's
regulations implementing the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.). Specifically, this rule deals only with
agency procedures and, therefore, is covered under the Categorical
Exclusion in paragraph A6 to subpart D, 10 CFR part 1021. Accordingly,
neither an environmental assessment nor an environmental impact
statement is required.
E. Review Under Executive Order 13132
Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 4, 1999)
imposes certain requirements on agencies formulating and implementing
policies or regulations that preempt State law or that have federalism
implications. Agencies are required to examine the constitutional and
statutory authority supporting any action that would limit the
policymaking discretion of the States and carefully assess the
necessity for such actions. The Executive Order also requires agencies
to have an accountable process to ensure meaningful and timely input by
State and local officials in the development of regulatory policies
that have federalism implications. On March 14, 2000, DOE published a
statement of policy describing the intergovernmental consultation
process it will follow in the development of such regulations (65 FR
13735). DOE has examined today's final rule and has determined that it
does not preempt State law and does not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government. No further
action is required by Executive Order 13132.
F. Review Under Executive Order 12988
With respect to the review of existing regulations and the
promulgation of new regulations, section 3(a) of Executive Order 12988,
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on
Federal agencies the general duty to adhere to the following
requirements: (1) Eliminate drafting errors and ambiguity; (2) write
regulations to minimize litigation; and (3) provide a clear legal
standard for affected conduct rather than a general standard and
promote simplification and burden reduction. Section 3(b) of Executive
Order 12988 specifically requires that Executive agencies make every
reasonable effort to ensure that the regulation: (1) Clearly specifies
the preemptive effect, if any; (2) clearly specifies any effect on
existing Federal law or regulation; (3) provides a clear legal standard
for affected conduct while promoting simplification and burden
reduction; (4) specifies the retroactive effect, if any; (5) adequately
defines key terms; and, (6) addresses other important issues affecting
clarity and general draftsmanship under any guidelines issued by the
Attorney General. Section 3(c) of Executive Order 12988 requires
Executive agencies to review regulations in light of applicable
standards in section 3(a) and section 3(b) to determine whether they
are met or it is unreasonable to meet one or more of them. DOE has
completed the required review and determined that, to the extent
permitted by law, this final rule meets the relevant standards of
Executive Order 12988.
G. Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires a Federal agency to perform a written assessment of the
anticipated costs and benefits of any rule that includes a Federal
mandate which may result in costs to State, local, or tribal
governments, in the aggregate, or to the private sector, of $100
million or more in any one year (adjusted annually for inflation). 2
U.S.C. 1532(a) and (b). Section 204 of that title requires each agency
that proposes a rule containing a significant Federal intergovernmental
mandate to develop an effective process for obtaining meaningful and
timely input from elected officers of State, local, and tribal
governments. 2. U.S.C. 1534.
This final rule will not impose a Federal mandate on State, local
and tribal governments or on the private sector. Accordingly, no
assessment or analysis is required under the Unfunded Mandates Reform
Act of 1995.
H. Review Under the Treasury and General Government Appropriations Act,
1999
Section 654 of the Treasury and General Government Appropriations
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family
Policymaking Assessment for any rule that may affect family well-being.
This final rule will not have any impact on the autonomy or integrity
of the family as an institution. Accordingly, DOE has concluded that it
is not necessary to prepare a Family Policymaking Assessment.
I. Review Under the Treasury and General Government Appropriations Act,
2001
The Treasury and General Government Appropriations Act, 2001 (44
U.S.C. 3516 note) provides for agencies to review most disseminations
of information to the public under guidelines established by each
agency pursuant to general guidelines issued by OMB. OMB's guidelines
were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines
were published at 67 FR 62446 (October 7, 2002). DOE has reviewed
today's notice under the OMB and DOE guidelines and has concluded that
it is consistent with applicable policies in those guidelines.
J. Review Under Executive Order 13211
Executive Order 13211, ``Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355
(May 22, 2001) requires Federal agencies to
[[Page 32641]]
prepare and submit to the Office of Information and Regulatory Affairs
(OIRA), Office of Management and Budget, a Statement of Energy Effects
for any proposed significant energy action. A ``significant energy
action'' is defined as any action by an agency that promulgated or is
expected to lead to promulgation of a final rule, and that: (1) Is a
significant regulatory action under Executive Order 12866, or any
successor order; and (2) is likely to have a significant adverse effect
on the supply, distribution, or use of energy, or (3) is designated by
the Administrator of OIRA as a significant energy action. For any
proposed significant energy action, the agency must give a detailed
statement of any adverse effects on energy supply, distribution, or use
should the proposal be implemented, and of reasonable alternatives to
the action and their expected benefits on energy supply, distribution,
and use. Today's regulatory action is not a significant energy action.
Accordingly, DOE has not prepared a Statement of Energy Effects.
K. Congressional Notification
As required by 5 U.S.C. 801, DOE will report to Congress
promulgation of this rule prior to its effective date. The report will
state that it has been determined that the rule is not a ``major rule''
as defined by 5 U.S.C. 804.
List of Subjects in 10 CFR Part 1017
Administrative practice and procedure, Government contracts,
Nuclear energy, Penalties, Security measures.
Issued in Washington, DC on June 4, 2008.
Glenn Podonsky,
Chief Health, Safety and Security Officer, Office of Health, Safety and
Security.
0
For the reasons set out in the preamble, DOE revises part 1017 of
Chapter X of Title 10 of the Code of Federal Regulations to read as
follows:
PART 1017--IDENTIFICATION AND PROTECTION OF UNCLASSIFIED CONTROLLED
NUCLEAR INFORMATION
Subpart A--General Overview
Sec.
1017.1 Purpose and scope.
1017.2 Applicability.
1017.3 Policy.
1017.4 Definitions.
1017.5 Requesting a deviation.
Subpart B--Initially Determining What Information Is Unclassified
Controlled Nuclear Information
1017.6 Authority.
1017.7 Criteria.
1017.8 Subject areas eligible to be Unclassified Controlled Nuclear
Information.
1017.9 Nuclear material determinations.
1017.10 Adverse effect test.
1017.11 Information exempt from being Unclassified Controlled
Nuclear Information.
1017.12 Prohibitions on identifying Unclassified Controlled Nuclear
Information.
1017.13 Report concerning determinations.
Subpart C--Review of a Document or Material for Unclassified Controlled
Nuclear Information
1017.14 Designated officials.
1017.15 Review process.
1017.16 Unclassified Controlled Nuclear Information markings on
documents or material.
1017.17 Determining that a document or material no longer contains
or does not contain Unclassified Controlled Nuclear Information.
1017.18 Joint documents or material.
Subpart D--Access to Unclassified Controlled Nuclear Information
1017.19 Access limitations.
1017.20 Routine access.
1017.21 Limited access.
Subpart E--Physical Protection Requirements
1017.22 Notification of protection requirements.
1017.23 Protection in use.
1017.24 Storage.
1017.25 Reproduction.
1017.26 Destruction.
1017.27 Transmission.
1017.28 Processing on Automated Information Systems (AIS).
Subpart F--Violations
1017.29 Civil penalty.
1017.30 Criminal penalty.
Authority: 42 U.S.C. 7101 et seq.; 50 U.S.C. 2401 et seq.; 42
U.S.C. 2168; 28 U.S.C. 2461.
Subpart A--General Overview
Sec. 1017.1 Purpose and scope.
(a) This part implements section 148 of the Atomic Energy Act (42
U.S.C. 2168) which prohibits the unauthorized dissemination of certain
unclassified Government information. This information identified by the
term ``Unclassified Controlled Nuclear Information'' (UCNI) consists of
certain design and security information concerning nuclear facilities,
nuclear materials, and nuclear weapons.
(b) This part:
(1) Provides for the review of information prior to its designation
as UCNI;
(2) Describes how information is determined to be UCNI;
(3) Establishes minimum physical protection standards for documents
and material containing UCNI;
(4) Specifies who may have access to UCNI; and,
(5) Establishes a procedure for the imposition of penalties on
persons who violate section 148 of the Atomic Energy Act or any
regulation or order of the Secretary issued under section 148 of the
Atomic Energy Act, including this part.
(c) This part does not apply to information controlled under 10
U.S.C. 128 by the Department of Defense.
Sec. 1017.2 Applicability.
This part applies to any person who is or was authorized access to
UCNI, requires authorized access to UCNI, or attempts to gain or gains
unauthorized access to UCNI.
Sec. 1017.3 Policy.
The Department of Energy (DOE) strives to make information publicly
available to the fullest extent possible. Therefore, this part must be
interpreted and implemented to apply the minimum restrictions needed to
protect the health and safety of the public or the common defense and
security consistent with the requirement in section 148 of the Atomic
Energy Act to prohibit the unauthorized dissemination of UCNI.
Sec. 1017.4 Definitions.
As used in this part:
Atomic Energy Act means the Atomic Energy Act of 1954, as amended
(42 U.S.C. 2011 et seq.).
Atomic energy defense programs means Government activities,
equipment, and facilities that are capable of:
(1) Developing, producing, testing, sampling, maintaining,
repairing, modifying, assembling or disassembling, using, transporting,
or retiring nuclear weapons or components of nuclear weapons; or
(2) Producing, using, or transporting nuclear material that could
be used in nuclear weapons or military-related utilization facilities.
Authorized Individual means a person who has routine access to UCNI
under Sec. 1017.20.
Component means any operational, experimental, or research-related
part, subsection, design, or material used in the manufacture or
utilization of a nuclear weapon, nuclear explosive device, or nuclear
weapon test assembly.
Denying Official means a DOE official designated under 10 CFR
1004.2(b) who is authorized to deny a request for unclassified
information that is exempt from release when requested under the
Freedom of Information Act (FOIA).
Director means the DOE Official, or his or her designee, to whom
the
[[Page 32642]]
Secretary has assigned responsibility for enforcement of this part.
Document means the physical medium on or in which information is
recorded, regardless of its physical form or characteristics.
DOE means the United States Department of Energy, including the
National Nuclear Security Administration (NNSA).
Essential technology-related information means technical
information whose unauthorized dissemination could significantly
increase the likelihood of the illegal production of a nuclear weapon.
Exploitable security-related information means information whose
unauthorized dissemination could significantly increase the likelihood
of the theft, diversion, or sabotage of nuclear material, equipment, or
facilities.
Government means the Executive Branch of the United States
Government.
Government information means any fact or concept, regardless of its
physical form or characteristics, that is owned by, produced by or for,
or otherwise controlled by the United States Government, including such
facts or concepts that are provided by the Government to any person,
including persons who are not employees of the Government.
Guidance means detailed written instructions that describe
decisions made by the Secretary or his/her designee issued under
Subpart B of these regulations concerning what specific information is
UCNI.
Illegal production means the production or manufacture of a nuclear
weapon in violation of either domestic (e.g., the Atomic Energy Act) or
international (e.g., the Treaty on the Non-Proliferation of Nuclear
Weapons) law.
In transit means the physical movement of a nuclear weapon, a
component of a nuclear weapon containing nuclear material, or nuclear
material from one part to another part of a facility or from one
facility to another facility. An item is considered ``in transit''
until it has been relinquished to the custody of the authorized
recipient and is in storage at its ultimate destination. An item in
temporary storage pending shipment to its ultimate destination is ``in
transit.''
Limited access means access to specific UCNI granted by the
cognizant DOE Program Secretarial Officer or a Deputy or Associate
Administrator of the NNSA to an individual not eligible for routine
access (see Sec. 1017.21).
Material means a product (e.g., a part or a machine) or substance
(e.g., a compound or an alloy), regardless of its physical form or
characteristics.
Need to know means a determination made by an Authorized Individual
that a person requires access to specific UCNI to perform official
duties or other Government-authorized activities.
Nuclear material means special nuclear material, byproduct
material, or source material as defined by sections 11.aa., 11.e., and
11.z., respectively, of the Atomic Energy Act (42 U.S.C. 2014 aa., e.,
and z), or any other material used in the production, testing,
utilization, or assembly of nuclear weapons or components of nuclear
weapons that the Secretary determines to be nuclear material under
Sec. 1017.9(a).
Nuclear weapon means atomic weapon as defined in section 11.d. of
the Atomic Energy Act (42 U.S.C. 2014 d).
Person means any person as defined in section 11.s. of the Atomic
Energy Act (42 U.S.C. 2014 s) or any affiliate or parent corporation
thereof.
Production facility means:
(1) Any equipment or device capable of producing special nuclear
material in such quantity as to be of significance to the common
defense and security or in such manner as to affect the health and
safety of the public; or
(2) Any important component part especially designed for such
equipment or device.
(3) For the purposes of this part, equipment and devices described
in paragraphs (1) and (2) of this definition include only:
(i) Government uranium isotope enrichment equipment or devices and
any other uranium isotope enrichment equipment or devices that use
related technology provided by the Government; or
(ii) Government plutonium production reactors, isotope enrichment
equipment or devices, and separation and purification equipment or
devices and other such equipment or devices that use related technology
provided by the Government.
Reviewing Official means an individual authorized under Sec.
1017.14(a) to make a determination, based on guidance, that a document
or material contains UCNI.
Routine access means access to UCNI granted by an Authorized
Individual to an individual eligible to receive UCNI under Sec.
1017.20 in order to perform official duties or other Government-
authorized activities.
Secretary means the Secretary of Energy.
Special nuclear material means:
(1) Plutonium, uranium enriched in the isotope 233 or in the
isotope 235, and any other material which DOE or the Nuclear Regulatory
Commission, pursuant to the provisions of section 51 of the Atomic
Energy Act (42 U.S.C. 2071), determines to be special nuclear material,
but does not include source material; or
(2) Any material artificially enriched by any of the foregoing, but
does not include source material.
Unauthorized dissemination means the intentional or negligent
transfer of UCNI to any person other than an Authorized Individual or a
person granted limited access to UCNI under Sec. 1017.21.
Unclassified Controlled Nuclear Information or UCNI means certain
unclassified Government information concerning nuclear facilities,
materials, weapons, and components whose dissemination is controlled
under section 148 of the Atomic Energy Act and this part.
Utilization facility means:
(1) Any equipment or device, or any important component part
especially designed for such equipment or device, except for a nuclear
weapon, that is capable of making use of special nuclear material in
such quantity as to be of significance to the common defense and
security or in such manner as to affect the health and safety of the
public. For the purposes of this part, such equipment or devices
include only Government equipment or devices that use special nuclear
material in the research, development, production, or testing of
nuclear weapons, nuclear weapon components, or nuclear material capable
of being used in nuclear weapons; or
(2) Any equipment or device, or any important component part
especially designed for such equipment or device, except for a nuclear
weapon, that is peculiarly adapted for making use of nuclear energy in
such quantity as to be of significance to the common defense and
security or in such manner as to affect the health and safety of the
public. For the purposes of this part, such equipment or devices
include only:
(i) Naval propulsion reactors;
(ii) Military reactors and power sources that use special nuclear
material;
(iii) Tritium production reactors; and,
(iv) Government research reactors.
Sec. 1017.5 Requesting a deviation.
(a) Any person may request a deviation, or condition that diverges
from the norm and that is categorized as:
[[Page 32643]]
(1) A variance (i.e., an approved condition that technically varies
from a requirement in these regulations);
(2) A waiver (i.e., an approved nonstandard condition that deviates
from a requirement in these regulations and which, if uncompensated,
would create a potential or real vulnerability); or
(3) An exception (i.e., an approved deviation from a requirement in
these regulations for which DOE accepts the risk of a safeguards and
security vulnerability) according to the degree of risk involved.
(b) In writing, the person must:
(1) Identify the specific requirement for which the deviation is
being requested;
(2) Explain why the deviation is needed; and,
(3) If appropriate, describe the alternate or equivalent means for
meeting the requirement.
(c) DOE employees must submit such requests according to internal
directives. DOE contractors must submit such requests according to
directives incorporated into their contracts. Other individuals must
submit such requests to the Office of Classification, Office of Health,
Safety and Security, U.S. Department of Energy, 1000 Independence Ave.,
SW., Washington, DC 20585-1290. The Office of Classification's decision
must be made within 30 days.
Subpart B--Initially Determining What Information Is Unclassified
Controlled Nuclear Information
Sec. 1017.6 Authority.
The Secretary, or his or her designee, determines whether
information is UCNI. These determinations are incorporated into
guidance that each Reviewing Official and Denying Official consults in
his or her review of a document or material to decide whether the
document or material contains UCNI.
Sec. 1017.7 Criteria.
To be identified as UCNI, the information must meet each of the
following criteria:
(a) The information must be Government information as defined in
Sec. 1017.4;
(b) The information must concern atomic energy defense programs as
defined in Sec. 1017.4;
(c) The information must fall within the scope of at least one of
the three subject areas eligible to be UCNI in Sec. 1017.8;
(d) The information must meet the adverse effect test described in
Sec. 1017.10; and
(e) The information must not be exempt from being UCNI under Sec.
1017.11.
Sec. 1017.8 Subject areas eligible to be Unclassified Controlled
Nuclear Information.
To be eligible for identification as UCNI, information must concern
at least one of the following categories:
(a) The design of production or utilization facilities as defined
in this part;
(b) Security measures (including security plans, procedures, and
equipment) for the physical protection of production or utilization
facilities or nuclear material, regardless of its physical state or
form, contained in these facilities or in transit; or
(c) The design, manufacture, or utilization of nuclear weapons or
components that were once classified as Restricted Data, as defined in
section 11y. of the Atomic Energy Act.
Sec. 1017.9 Nuclear material determinations.
(a) The Secretary may determine that a material other than special
nuclear material, byproduct material, or source material as defined by
the Atomic Energy Act is included within the scope of the term
``nuclear material'' if it meets the following criteria:
(1) The material is used in the production, testing, utilization,
or assembly of nuclear weapons or components of nuclear weapons; and
(2) Unauthorized acquisition of the material could reasonably be
expected to result in a significant adverse effect on the health and
safety of the public or the common defense and security because the
specific material:
(i) Could be used as a hazardous radioactive environmental
contaminant; or
(ii) Could be of significant assistance in the illegal production
of a nuclear weapon.
(b) Designation of a material as a nuclear material under paragraph
(a) of this section does not make all information about the material
UCNI. Specific information about the material must still meet each of
the criteria in Sec. 1017.7 prior to its being identified and
controlled as UCNI.
Sec. 1017.10 Adverse effect test.
In order for information to be identified as UCNI, it must be
determined that the unauthorized dissemination of the information under
review could reasonably be expected to result in a significant adverse
effect on the health and safety of the public or the common defense and
security by significantly increasing the likelihood of:
(a) Illegal production of a nuclear weapon; or
(b) Theft, diversion, or sabotage of nuclear material, equipment,
or facilities.
Sec. 1017.11 Information exempt from being Unclassified Controlled
Nuclear Information.
Information exempt from this part includes:
(a) Information protected from disclosure under section 147 of the
Atomic Energy Act (42 U.S.C. 2167) that is identified as Safeguards
Information and controlled by the United States Nuclear Regulatory
Commission;
(b) Basic scientific information (i.e., information resulting from
research directed toward increasing fundamental scientific knowledge or
understanding rather than any practical application of that knowledge);
(c) Radiation exposure data and all other personal health
information; and,
(d) Information concerning the transportation of low level
radioactive waste.
Sec. 1017.12 Prohibitions on identifying Unclassified Controlled
Nuclear Information.
Information, documents, and material must not be identified as
being or containing UCNI in order to:
(a) Conceal violations of law, inefficiency, or administrative
error;
(b) Prevent embarrassment to a person or organization;
(c) Restrain competition; or,
(d) Prevent or delay the release of any information that does not
properly qualify as UCNI.
Sec. 1017.13 Report concerning determinations.
The Office of Classification or successor office shall issue a
report by the end of each quarter that identifies any new information
that has been determined for the first time to be UCNI during the
previous quarter, explains how each such determination meets the
criteria in Sec. 1017.7, and explains why each such determination
protects from disclosure only the minimum amount of information
necessary to protect the health and safety of the public or the common
defense and security. A copy of the report may be obtained by writing
to the Office of Classification, Office of Health, Safety and Security,
U.S. Department of Energy, 1000 Independence Ave., SW., Washington, DC
20585-1290.
[[Page 32644]]
Subpart C--Review of a Document or Material for Unclassified
Controlled Nuclear Information
Sec. 1017.14 Designated officials.
(a) Reviewing Official--(1) Authority. A Reviewing Official with
cognizance over the information contained in a document or material is
authorized to determine whether the document or material contains UCNI
based on applicable guidance. A Reviewing Official marks or authorizes
the marking of the document or material as specified in Sec. 1017.16.
(2) Request for designation. Procedures for requesting that a DOE
Federal or contractor employee be designated as a Reviewing Official
are contained in Departmental directives issued by the Secretary. DOE
may also designate other Government agency employees, contractors, or
other individuals granted routine access under Sec. 1017.20 as
Reviewing Officials.
(3) Designation. Prior to being designated as a Reviewing Official,
each employee must receive training approved by DOE that covers the
requirements in these regulations and be tested on his or her
proficiency in using applicable UCNI guidance. Upon successful
completion of the training and test, he or she is designated as a
Reviewing Official only while serving in his or her current position
for a maximum of 3 years. The employee does not automatically retain
the authority when he or she leaves his or her current position. The
employee cannot delegate this authority to anyone else, and the
authority may not be assumed by another employee acting in the
employee's position. At the end of 3 years, if the position still
requires the authority, the employee must be retested and redesignated
by DOE as a Reviewing Official.
(b) Individuals approved to use DOE or joint DOE classification
guidance--(1) Authority. Other Government agency employees who are
approved by DOE or another Government agency to use classification
guidance developed by DOE or jointly by DOE and another Government
agency may also be approved to review documents for UCNI and to make
UCNI determinations. This authority is limited to the UCNI subject
areas contained in the specific classification guidance that the
individual has been approved to use.
(2) Designation. Individuals must be designated this authority in
writing by the appropriate DOE or other Government agency official with
cognizance over the specific DOE or joint DOE classification guidance.
(c) Denying Official--(1) Authority. A DOE Denying Official for
unclassified information with cognizance over the information contained
in a document is authorized to deny a request made under statute (e.g.,
the FOIA, the Privacy Act) or the mandatory review provisions of
Executive Order 12958, as amended, ``Classified National Security
Information,'' and its successor orders, for all or any portion of the
document that contains UCNI. The Denying Official bases his or her
denial on applicable guidance, ensuring that the Reviewing Official who
determined that the document contains UCNI correctly interpreted and
applied the guidance.
(2) Designation. Information on the designation of DOE Denying
Officials is contained in 10 CFR Part 1004, Freedom of Information (see
definition of the term ``Authorizing or Denying Official'' in Sec.
1004.2).
Sec. 1017.15 Review process.
(a) Reviewing documents for UCNI. Anyone who originates or
possesses a document that he or she thinks may contain UCNI must send
the document to a Reviewing Official for a determination before it is
finalized, sent outside of his or her organization, or filed. If the
originator or possessor must send the document outside of his or her
organization for the review, he or she must mark the front of the
document with ``Protect as UCNI Pending Review'' and must transmit the
document in accordance with the requirements in Sec. 1017.27. The
Reviewing Official must first determine whether the document is widely
disseminated in the public domain, which means that the document under
review is publicly available from a Government technical information
service or depository library, for example, or that it can be found in
a public library or an open literature source, or it can be accessed on
the Internet using readily available search methods.
(1) If the document is determined to be widely disseminated in the
public domain, it cannot be controlled as UCNI. The Reviewing Official
returns the document to the person who sent it to the Reviewing
Official and informs him or her why the document cannot be controlled
as UCNI. This does not preclude control of the same information as UCNI
if it is contained in another document that is not widely disseminated.
(2) If the document is not determined to be widely disseminated in
the public domain, the Reviewing Official evaluates the information in
the document using guidance to determine whether the document contains
UCNI. If the Reviewing Official determines that the document does
contain UCNI, the Reviewing Official marks or authorizes the marking of
the document as specified in Sec. 1017.16. If the Reviewing Official
determines that the document does not contain UCNI, the Reviewing
Official returns the document to the person who sent it and informs him
or her that the document does not contain UCNI. For documentation
purposes, the Reviewing Official may mark or authorize the marking of
the document as specified in Sec. 1017.17(b).
(3) If no applicable guidance exists, but the Reviewing Official
thinks the information should be identified as UCNI, then the Reviewing
Official must send the document to the appropriate official identified
in applicable DOE directives issued by the Secretary or his or her
designee. The Reviewing Official should also include a written
recommendation as to why the information should be identified as UCNI.
(b) Review exemption for documents in files. Any document that was
permanently filed prior to May 22, 1985, is not required to be reviewed
for UCNI while in the files or when retrieved from the files for
reference, inventory, or similar purposes as long as the document will
be returned to the files and is not accessible by individuals who are
not Authorized Individuals for the UCNI contained in the document.
However, when a document that is likely to contain UCNI is removed from
the files for dissemination within or outside of the immediate
organization, it must be reviewed by a Reviewing Official with
cognizance over the information.
(c) Reviewing material for UCNI. Anyone who produces or possesses
material that he or she thinks may contain or reveal UCNI must consult
with a Reviewing Official for a determination. If the Reviewing
Official determines that the material does contain or reveal UCNI, the
Reviewing Official marks or authorizes the marking of the material as
specified in Sec. 1017.16(b).
Sec. 1017.16 Unclassified Controlled Nuclear Information markings on
documents or material.
(a) Marking documents. If a Reviewing Official determines that a
document contains UCNI, the Reviewing Official must mark or authorize
the marking of the document as described in this section.
(1) Front marking. The following marking must appear on the front
of the document:
[[Page 32645]]
Unclassified Controlled Nuclear Information Not for Public
Dissemination
Unauthorized dissemination subject to civil and criminal sanctions
under section 148 of the Atomic Energy Act of 1954, as amended (42
U.S.C. 2168).
Reviewing Official:
-----------------------------------------------------------------------
(Name/Organization)
Date:------------------------------------------------------------------
Guidance Used:---------------------------------------------------------
(2) Page marking. The marking ``Unclassified Controlled Nuclear
Information'' must be placed on the bottom of the front of the document
and on the bottom of each interior page of the document that contains
text or if more convenient, on the bottom of only those interior pages
that contain UCNI. The page marking must also be placed on the back of
the last page. If space limitations do not allow for use of the full
page marking, the acronym ``UCNI'' may be used as the page marking.
(3) Classified documents. UCNI front and page markings are not
applied to a classified document that also contains UCNI. If a
classified document is portion marked, the acronym ``UCNI'' is used to
indicate those unclassified portions that contain UCNI.
(4) Obsolete ``May Contain UCNI'' marking. The ``May Contain UCNI''
marking is no longer used. Any document marked with the ``May Contain
UCNI'' marking is considered to contain UCNI and must be protected
accordingly until a Reviewing Official or Denying Official determines
otherwise. The obsolete ``May Contain UCNI'' marking reads as follows:
Not for Public Dissemination May contain Unclassified Controlled
Nuclear Information subject to section 148 of the Atomic Energy Act
of 1954 (42 U.S.C. 2168). Approval by the Department of Energy prior
to release is required.
(b) Marking material. If possible, material containing or revealing
UCNI must be marked as described in Sec. 1017.16(a)(1). If space
limitations do not allow for use of the full marking in Sec.
1017.16(a)(1), the acronym ``UCNI'' may be used.
Sec. 1017.17 Determining that a document or material no longer
contains or does not contain Unclassified Controlled Nuclear
Information.
(a) Document or material no longer contains UCNI. A Reviewing
Official with cognizance over the information in a document or material
marked as containing UCNI may determine that the document or material
no longer contains UCNI. A Denying Official may also determine that
such a document or material no longer contains UCNI. The official
making this determination must base it on applicable guidance and must
ensure that any UCNI markings are crossed out (for documents) or
removed (for material). The official marks or authorizes the marking of
the document (or the material, if space allows) as follows:
Does Not Contain Unclassified Controlled Nuclear Information
Reviewing/Denying Official:
-----------------------------------------------------------------------
(Name and organization)
Date:------------------------------------------------------------------
(b) Document or material does not contain UCNI. A Reviewing
Official with cognizance over the information in a document or material
may confirm that an unmarked document or material does not contain UCNI
based on applicable guidance. No UCNI markings are required in this
case; however, for documentation purposes, the Reviewing Official may
mark or may authorize the marking of the document or material with the
same marking used in Sec. 1017.17(a).
Sec. 1017.18 Joint documents or material.
If a document or material marked as containing UCNI is under
consideration for decontrol and falls under the cognizance of another
DOE organization or other Government agency, the Reviewing Official or
Denying Official must coordinate the decontrol review with that DOE
organization or other Government agency. Any disagreement concerning
the control or decontrol of any document or material that contains UCNI
that was originated by or for DOE or another Government agency is
resolved by the Secretary or his or her designee.
Subpart D--Access to Unclassified Controlled Nuclear Information
Sec. 1017.19 Access limitations.
A person may only have access to UCNI if he or she has been granted
routine access by an Authorized Individual (see Sec. 1017.20) or
limited access by the DOE Program Secretarial Officer or NNSA Deputy or
Associate Administrator with cognizance over the UCNI (see Sec.
1017.21). The Secretary, or his or her designee, may impose additional
administrative controls concerning the granting of routine or limited
access to UCNI to a person who is not a U.S. citizen.
Sec. 1017.20 Routine access.
(a) Authorized Individual. The Reviewing Official who determines
that a document or material contains UCNI is the initial Authorized
Individual for that document or material. An Authorized Individual, for
UCNI in his or her possession or control, may determine that another
person is an Authorized Individual who may be granted access to the
UCNI, subject to limitations in paragraph (b) of this section, and who
may further disseminate the UCNI under the provisions of this section.
(b) Requirements for routine access. To be eligible for routine
access to UCNI, the person must have a need to know the UCNI in order
to perform official duties or other Government-authorized activities
and must be:
(1) A U.S. citizen who is:
(i) An employee of any branch of the Federal Government, including
the U.S. Armed Forces;
(ii) An employee or representative of a State, local, or Indian
tribal government;
(iii) A member of an emergency response organization;
(iv) An employee of a Government contractor or a consultant,
including those contractors or consultants who need access to bid on a
Government contract;
(v) A member of Congress or a staff member of a congressional
committee or of an individual member of Congress;
(vi) A Governor of a State, his or her designated representative,
or a State government official;
(vii) A member of a DOE advisory committee; or,
(viii) A member of an entity that has entered into a formal
agreement with the Government, such as a Cooperative Research and
Development Agreement or similar arrangement; or,
(2) A person who is not a U.S. citizen but who is:
(i) A Federal Government employee or a member of the U.S. Armed
Forces;
(ii) An employee of a Federal Government contractor or
subcontractor;
(iii) A Federal Government consultant;
(iv) A member of a DOE advisory committee;
(v) A member of an entity that has entered into a formal agreement
with the Government, such as a Cooperative Research and Development
Agreement or similar arrangement;
(vi) An employee or representative of a State, local, or Indian
tribal government; or,
(vii) A member of an emergency response organization when
responding to an emergency; or,
(3) A person who is not a U.S. citizen but who needs to know the
UCNI in conjunction with an activity approved by the DOE Program
Secretarial Officer
[[Page 32646]]
or NNSA Deputy or Associate Administrator with cognizance over the
UCNI.
Sec. 1017.21 Limited access.
(a) A person who is not eligible for routine access to specific
UCNI under Sec. 1017.20 may request limited access to such UCNI by
sending a written request to the DOE Program Secretarial Officer or
NNSA Deputy or Associate Administrator with cognizance over the
information. The written request must include the following:
(1) The name, current residence or business address, birthplace,
birth date, and country of citizenship of the person submitting the
request;
(2) A description of the specific UCNI for which limited access is
being requested;
(3) A description of the purpose for which the UCNI is needed; and,
(4) Certification by the requester that he or she:
(i) Understands and will follow these regulations; and
(ii) Understands that he or she is subject to the civil and
criminal penalties under Subpart F of this part.
(b) The decision whether to grant the request for limited access is
based on the following criteria:
(1) The sensitivity of the UCNI for which limited access is being
requested;
(2) The approving official's evaluation of the likelihood that the
requester will disseminate the UCNI to unauthorized individuals; and,
(3) The approving official's evaluation of the likelihood that the
requester will use the UCNI for illegal purposes.
(c) Within 30 days of receipt of the request for limited access,
the appropriate DOE Program Secretarial Officer or NNSA Deputy or
Associate Administrator must notify the requester if limited access is
granted or denied, or if the determination cannot be made within 30
days, of the date when the determination will be made.
(d) A person granted limited access to specific UCNI is not an
Authorized Individual and may not further disseminate the UCNI to
anyone.
Subpart E--Physical Protection Requirements
Sec. 1017.22 Notification of protection requirements.
(a) An Authorized Individual who grants routine access to specific
UCNI under Sec. 1017.20 to a person who is not an employee or
contractor of the DOE must notify the person receiving the UCNI of
protection requirements described in this subpart and any limitations
on further dissemination.
(b) A DOE Program Secretarial Officer or NNSA Deputy or Associate
Administrator who grants limited access to specific UCNI under Sec.
1017.21 must notify the person receiving the UCNI of protection
requirements described in this subpart and any limitations on further
dissemination.
Sec. 1017.23 Protection in use.
An Authorized Individual or a person granted limited access to UCNI
under Sec. 1017.21 must maintain physical control over any document or
material marked as containing UCNI that is in use to prevent
unauthorized access to it.
Sec. 1017.24 Storage.
A document or material marked as containing UCNI must be stored to
preclude unauthorized disclosure. When not in use, documents or
material containing UCNI must be stored in locked receptacles (e.g.,
file cabinet, desk drawer), or if in secured areas or facilities, in a
manner that would prevent inadvertent access by an unauthorized
individual.
Sec. 1017.25 Reproduction.
A document marked as containing UCNI may be reproduced without the
permission of the originator to the minimum extent necessary consistent
with the need to carry out official duties, provided the reproduced
document is marked and protected in the same manner as the original
document.
Sec. 1017.26 Destruction.
A document marked as containing UCNI must be destroyed, at a
minimum, by using a cross-cut shredder that produces particles no
larger than 1/4-inch wide and 2 inches long. Other comparable
destruction methods may be used. Material containing or revealing UCNI
must be destroyed according to agency directives.
Sec. 1017.27 Transmission.
(a) Physically transmitting UCNI documents or material.
(1) A document or material marked as containing UCNI may be
transmitted by:
(i) U.S. First Class, Express, Certified, or Registered mail;
(ii) Any means approved for transmission of classified documents or
material;
(iii) An Authorized Individual or person granted limited access
under Sec. 1017.21 as long as physical control of the package is
maintained; or,
(iv) Internal mail services.
(2) The document or material must be packaged to conceal the
presence of the UCNI from someone who is not authorized access. A
single, opaque envelope or wrapping is sufficient for this purpose. The
address of the recipient and the sender must be indicated on the
outside of the envelope or wrapping along with the words ``TO BE OPENED
BY ADDRESSEE ONLY.''
(b) Transmitting UCNI documents over telecommunications circuits.
Encryption algorithms that comply with all applicable Federal laws,
regulations, and standards for the protection of unclassified
controlled information must be used when transmitting UCNI over a
telecommunications circuit (including the telephone, facsimile, radio,
e-mail, Internet).
Sec. 1017.28 Processing on Automated Information Systems (AIS).
UCNI may be processed or produced on any AIS that complies with the
guidance in OMB Circular No. A-130, Revised, Transmittal No. 4,
Appendix III, ``Security of Federal Automated Information Resources,''
or is certified for classified information.
Subpart F--Violations
Sec. 1017.29 Civil penalty.
(a) Regulations. Any person who violates a UCNI security
requirement of any of the following is subject to a civil penalty under
this part:
(1) 10 CFR Part 1017--Identification and Protection of Unclassified
Controlled Nuclear Information; or
(2) Any other DOE regulation related to the safeguarding or
security of UCNI if the regulation provides that violation of its
provisions may result in a civil penalty pursuant to section 148 of the
Act.
(b) Compliance order. If, without violating a requirement of any
regulation issued under section 148, a person by an act or omission
causes, or creates a risk of, the loss, compromise or unauthorized
disclosure of UCNI, the Secretary may issue a compliance order to that
person requiring the person to take corrective action and notifying the
person that violation of the compliance order is subject to a notice of
violation and assessment of a civil penalty. If a person wishes to
contest the compliance order, the person must file a notice of appeal
with the Secretary within 15 days of receipt of the compliance order.
(c) Amount of penalty. The Director may propose imposition of a
civil penalty for violation of a requirement of a regulation under
paragraph (a) of this section or a compliance order issued under
paragraph (b) of this section, not to exceed $100,000 for each
violation.
(d) Settlements. The Director may enter into a settlement, with or
without conditions, of an enforcement
[[Page 32647]]
proceeding at any time if the settlement is consistent with the
objectives of DOE's UCNI protection requirements.
(e) Enforcement conference. The Director may convene an informal
conference to discuss any situation that might be a violation of the
Act, its significance and cause, any correction taken or not taken by
the person, any mitigating or aggravating circumstances, and any other
useful information. The Director may compel a person to attend the
conference. This conference will not normally be open to the public and
there shall be no transcript.
(f) Investigations. The Director may conduct investigations and
inspections relating to the scope, nature and extent of compliance by a
person with DOE security requirements specified in these regulations
and take such action as the Director deems necessary and appropriate to
the conduct of the investigation or inspection, including signing,
issuing and serving subpoenas.
(g) Preliminary notice of violation. (1) In order to begin a
proceeding to impose a civil penalty under this part, the Director
shall notify the person by a written preliminary notice of violation
sent by certified mail, return receipt requested, of:
(i) The date, facts, and nature of each act or omission
constituting the alleged violation;
(ii) The particular provision of the regulation or compliance order
involved in each alleged violation;
(iii) The proposed remedy for each alleged violation, including the
amount of any civil penalty proposed;
(iv) The right of the person to submit a written reply to the
Director within 30 calendar days of receipt of such preliminary notice
of violation; and,
(v) The fact that upon failure of the person to pay any civil
penalty imposed, the penalty may be collected by civil action.
(2) A reply to a preliminary notice of violation must contain a
statement of all relevant facts pertaining to an alleged violation. The
reply must:
(i) State any facts, explanations, and arguments that support a
denial of the alleged violation;
(ii) Demonstrate any extenuating circumstances or other reason why
a proposed remedy should not be imposed or should be mitigated;
(iii) Discuss the relevant authorities that support the position
asserted, including rulings, regulations, interpretations, and previous
decisions issued by DOE;
(iv) Furnish full and complete answers to any questions set forth
in the preliminary notice; and
(v) Include copies of all relevant documents.
(3) If a person fails to submit a written reply within 30 calendar
days of receipt of a preliminary notice of violation:
(i) The person relinquishes any right to appeal any matter in the
preliminary notice; and
(ii) The preliminary notice, including any remedies therein,
constitutes a final order.
(4) The Director, at the request of a person notified of an alleged
violation, may extend for a reasonable period the time for submitting a
reply or a hearing request letter.
(h) Final notice of violation. (1) If a person submits a written
reply within 30 calendar days of receipt of a preliminary notice of
violation, the Director must make a final determination whether the
person violated or is continuing to violate an UCNI security
requirement.
(2) Based on a determination by the Director that a person has
violated or is continuing to violate an UCNI security requirement, the
Director may issue to the person a final notice of violation that
concisely states the determined violation, the amount of any civil
penalty imposed, and further actions necessary by or available to the
person. The final notice of violation also must state that the person
has the right to submit to the Director, within 30 calendar days of the
receipt of the notice, a written request for a hearing under paragraph
(i) of this section.
(3) The Director must send a final notice of violation by certified
mail, return receipt requested, within 30 calendar days of the receipt
of a reply.
(4) Subject to paragraphs (h)(7) and (h)(8) of this section, the
effect of final notice shall be:
(i) If a final notice of violation does not contain a civil
penalty, it shall be deemed a final order 15 days after the final
notice is issued.
(ii) If a final notice of violation contains a civil penalty, the
person must submit to the Director within 30 days after the issuance of
the final notice:
(A) A waiver of further proceedings; or
(B) A request for an on-the-record hearing under paragraph (i) of
this section.
(5) If a person waives further proceedings, the final notice of
violation shall be deemed a final order enforceable against the person.
The person must pay the civil penalty set forth in the notice of
violation within 60 days of the filing of waiver unless the Director
grants additional time.
(6) If a person files a request for an on-the-record hearing, then
the hearing process commences.
(7) The Director may amend the final notice of violation at any
time before the time periods specified in paragraphs (h)(4)(i) or
(h)(4)(ii) of this section expire. An amendment shall add 15 days to
the time period under paragraph (h)(4) of this section.
(8) The Director may withdraw the final notice of violation, or any
part thereof, at any time before the time periods specified in
paragraphs (h)(4)(i) or (h)(4)(ii) of this section expire.
(i) Hearing. (1) Any person who receives a final notice of
violation under paragraph (h) of this section may request a hearing
concerning the allegations contained in the notice. The person must
mail or deliver any written request for a hearing to the Director
within 30 calendar days of receipt of the final notice of violation.
(2) Upon receipt from a person of a written request for a hearing,
the Director shall:
(i) Appoint a Hearing Counsel; and
(ii) Select an administrative law judge appointed under 5 U.S.C.
3105, to serve as Hearing Officer.
(j) Hearing Counsel. The Hearing Counsel:
(1) Represents DOE;
(2) Consults with the person or the person's counsel prior to the
hearing;
(3) Examines and cross-examines witnesses during the hearing; and
(4) Enters into a settlement of the enforcement proceeding at any
time if settlement is consistent with the objectives of the Act and DOE
security requirements.
(k) Hearing Officer. The Hearing Officer:
(1) Is responsible for the administrative preparations for the
hearing;
(2) Convenes the hearing as soon as is reasonable;
(3) Administers oaths and affirmations;
(4) Issues subpoenas, at the request of either party or on the
Hearing Officer's motion;
(5) Rules on offers of proof and receives relevant evidence;
(6) Takes depositions or has depositions taken when the ends of
justice would be served;
(7) Conducts the hearing in a manner which is fair and impartial;
(8) Holds conferences for the settlement or simplification of the
issues by consent of the parties;
(9) Disposes of procedural requests or similar matters;
(10) Requires production of documents; and,
[[Page 32648]]
(11) Makes an initial decision under paragraph (n) of this section.
(l) Rights of the person at the hearing. The person may:
(1) Testify or present evidence through witnesses or by documents;
(2) Cross-examine witnesses and rebut records or other physical
evidence, except as provided in paragraph (m)(4) of this section;
(3) Be present during the entire hearing, except as provided in
paragraph (m)(4) of this section; and
(4) Be accompanied, represented, and advised by counsel of the
person's choosing.
(m) Conduct of the hearing. (1) DOE shall make a transcript of the
hearing.
(2) Except as provided in paragraph (m)(4) of this section, the
Hearing Officer may receive any oral or documentary evidence, but shall
exclude irrelevant, immaterial, or unduly repetitious evidence.
(3) Witnesses shall testify under oath and are subject to cross-
examination, except as provided in paragraph (m)(4) of this section.
(4) The Hearing Officer must use procedures appropriate to
safeguard and prevent unauthorized disclosure of classified
information, UCNI, or any other information protected from public
disclosure by law or regulation, with minimum impairment of rights and
obligations under this part. The UCNI status shall not, however,
preclude information from being introduced into evidence. The Hearing
Officer may issue such orders as may be necessary to consider such
evidence in camera including the preparation of a supplemental initial
decision to address issues of law or fact that arise out of that
portion of the evidence that is protected.
(5) DOE has the burden of going forward with and of proving by a
preponderance of the evidence that the violation occurred as set forth
in the final notice of violation and that the proposed civil penalty is
appropriate. The person to whom the final notice of violation has been
addressed shall have the burden of presenting and of going forward with
any defense to the allegations set forth in the final notice of
violation. Each matter of controversy shall be determined by the
Hearing Officer upon a preponderance of the evidence.
(n) Initial decision. (1) The Hearing Officer shall issue an
initial decision as soon as practicable after the hearing. The initial
decision shall contain findings of fact and conclusions regarding all
material issues of law, as well as reasons therefor. If the Hearing
Officer determines that a violation has occurred and that a civil
penalty is appropriate, the initial decision shall set forth the amount
of the civil penalty based on:
(i) The nature, circumstances, extent, and gravity of the violation
or violations;
(ii) The violator's ability to pay;
(iii) The effect of the civil penalty on the person's ability to do
business;
(iv) Any history of prior violations;
(v) The degree of culpability; and,
(vi) Such other matters as justice may require.
(2) The Hearing Officer shall serve all parties with the initial
decision by certified mail, return receipt requested. The initial
decision shall include notice that it constitutes a final order of DOE
30 days after the filing of the initial decision unless the Secretary
files a Notice of Review. If the Secretary files a Notice of Review, he
shall file a final order as soon as practicable after completing his
review. The Secretary, at his discretion, may order additional
proceedings, remand the matter, or modify the amount of the civil
penalty assessed in the initial decision. DOE shall notify the person
of the Secretary's action under this paragraph in writing by certified
mail, return receipt requested. The person against whom the civil
penalty is assessed by the final order shall pay the full amount of the
civil penalty assessed in the final order within 30 days unless
otherwise agreed by the Director.
(o) Collection of penalty. (1) The Secretary may request the
Attorney General to institute a civil action to collect a penalty
imposed under this section.
(2) The Attorney General has the exclusive power to uphold,
compromise or mitigate, or remit any civil penalty imposed by the
Secretary under this section and referred to the Attorney General for
collection.
(p) Direction to NNSA. (1) Notwithstanding any other provision of
this part, the NNSA Administrator, rather than the Director, signs,
issues, serves, or takes the following actions that direct NNSA
employees, contractors, subcontractors, or employees of such NNSA
contractors or subcontractors:
(i) Subpoenas;
(ii) Orders to compel attendance;
(iii) Disclosures of information or documents obtained during an
investigation or inspection;
(iv) Preliminary notices of violation; and,
(v) Final notice of violations.
(2) The Administrator shall act after consideration of the
Director's recommendation. If the Administrator disagrees with the
Director's recommendation, and the disagreement cannot be resolved by
the two officials, the Director may refer the matter to the Deputy
Secretary for resolution.
Sec. 1017.30 Criminal penalty.
Any person who violates section 148 of the Atomic Energy Act or any
regulation or order of the Secretary issued under section 148 of the
Atomic Energy Act, including these regulations, may be subject to a
criminal penalty under section 223 of the Atomic Energy Act (42 U.S.C.
2273). In such case, the Secretary shall refer the matter to the
Attorney General for investigation and possible prosecution.
[FR Doc. E8-12978 Filed 6-9-08; 8:45 am]
BILLING CODE 6450-01-P