[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR700.30]

[Page 91-92]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE
 
PART 700_DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM--Table of Contents
 
      Subpart F_National Emergency Preparedness and Critical Items
 
Sec.  700.30  Priorities and allocations in a national emergency.

    Source: 63 FR 31923, June 11, 1998, unless otherwise noted.


    (a) In the event of a national emergency, special rules may be 
established as needed to supplement this part, thus ensuring rapid 
industrial response and the timely availability of critical industrial 
items and facilities to meet the urgent national defense requirements, 
including domestic emergency preparedness requirements, of approved 
programs.
    (1) Emergency official actions. (i) As needed, this part may be 
supplemented to include additional definitions to cover civilian 
emergency preparedness industrial items, support for essential civilian 
programs, and provisions for the taking of certain emergency official 
actions under sections Sec. Sec.  700.60 through 700.63.
    (ii) Emergency official actions may include:
    (A) Controlling inventories of critical and scarce defense and/or 
emergency preparedness items;
    (B) Restricting the purchase, use, or distribution of critical and 
scarce defense and/or emergency preparedness items, or the use of 
production or distribution facilities, for non-essential purposes; and
    (C) Converting the production or distribution of non-essential items 
to the production or distribution of critical and scarce defense and/or 
emergency preparedness items.
    (2) Allocation of critical and scarce items and facilities. (i) As 
needed, this part may be supplemented to establish special rules for the 
allocation of scarce and critical items and facilities to ensure the 
timely availability of these items and facilities for approved programs, 
and to provide for an equitable and orderly distribution of requirements 
for such items among all suppliers of the items. These rules may provide 
for the allocation of individual items or they may be broad enough to 
direct general industrial activity as required in support of emergency 
requirements.
    (ii) Allocation rules (i.e., controlled materials programs) were 
established in response to previous periods of national security 
emergency such as World War II and the Korean Conflict. The basic 
elements of the controlled materials programs were the set-aside (the 
amount of an item for which a producer or supplier must reserve order 
book space in anticipation of the receipt of rated orders), the 
production directive (requires a producer to supply a specific quantity, 
size, shape, and type of an item within a specific time period), and the 
allotment (the maximum quantity of an item authorized for use in a 
specific program or application). These elements can be used to assure 
the availability of any scarce and critical item for approved programs. 
Currently, a set-aside applies only to metalworking machines (see Sec.  
700.31).
    (3) In the event that certain critical items become scarce, and 
approved program requirements for these items cannot be met without 
creating a significant dislocation in the civilian market place so as to 
create appreciable hardship, Commerce may establish special rules under 
section 101(b) of the Defense Production Act to control the general 
distribution of such items in the civilian market.
    (b) Regional Emergency Coordinators. (1) If due to a catastrophic 
national security emergency event, communications with Commerce 
headquarters in Washington, D.C. are severed, DPAS Emergency Delegation 
1 will provide authority to the Regional Emergency Coordinators (REC) 
located in the Standard Federal Region Council cities (Boston, New York, 
Philadelphia, Atlanta, Dallas, Kansas City, Chicago, Denver, San 
Francisco, and Seattle) to represent the Secretary of Commerce,

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and as necessary, act for the Secretary to carry out the emergency 
industrial production and distribution control functions of Commerce as 
set forth in this part, in any supplement thereto, or other applicable 
authority. See DPAS Emergency Delegation 1 for further information about 
the authority and duties of the RECs, and the effective date of the 
Delegation.
    (2) If DPAS Emergency Delegation 1 is implemented due to a 
catastrophic national security emergency event, requests for special 
priorities assistance under Sec. Sec.  700.50 through 700.55 should be 
filed with the nearest Regional Emergency Coordinator located in one of 
the Standard Federal Region Council cities as provided in DPAS 
Delegation 1.