In The Matter Of All Licensees Who Possess Radioactive Material In Quantities Of Concern And All Other Persons Who Obtain Safeguards Information Described Herein; Order Imposing Requirements for the Protection of Certain Safeguards Information (Effective Immediately), 12213-12217 [E7-4753]

Download as PDF Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Notices II NUCLEAR REGULATORY COMMISSION [EA–07–050] In The Matter Of All Licensees Who Possess Radioactive Material In Quantities Of Concern And All Other Persons Who Obtain Safeguards Information Described Herein; Order Imposing Requirements for the Protection of Certain Safeguards Information (Effective Immediately) rmajette on PROD1PC67 with NOTICES The Licensees, identified in Attachment 1 1 to this Order, are applicants for or hold licenses issued in accordance with the Atomic Energy Act of 1954, by the U.S. Nuclear Regulatory Commission (NRC or Commission) or an Agreement State, authorizing them to possess, use, and transfer items containing radioactive material quantities of concern. NRC intends to issue security Orders to these licensees in the near future. Orders will be issued to both NRC and Agreement State materials licensees who may possess or transfer radioactive material quantities of concern. The Orders will require compliance with specific Compensatory Measures to enhance the security for certain radioactive material quantities of concern. The NRC will issue Orders to both NRC and Agreement State licensees under its authority to protect the common defense and security, which has not been relinquished to the Agreement States. The Commission has determined that these documents will contain Safeguards Information, will not be released to the public, and must be protected from unauthorized disclosure. Therefore, the Commission is imposing the requirements, as set forth in Attachments 2 and 3 to this Order and in Order EA–07–051, so that affected Licensees can receive these documents. This Order also imposes requirements for the protection of Safeguards Information in the hands of any person,2 whether or not a licensee of the Commission, who produces, receives, or acquires Safeguards Information. 1 Attachment 1 contains sensitive information and will not be released to the public. 2 Person means (1) any individual, corporation, partnership, firm, association, trust, estate, public or private institution, group, government agency other than the Commission or the Department, except that the Department shall be considered a person with respect to those facilities of the Department specified in section 202 of the Energy Reorganization Act of 1974 (88 Stat. 1244), any State or any political subdivision of, or any political entity within a State, any foreign government or nation or any political subdivision of any such government or nation, or other entity; and (2) any legal successor, representative, agent, or agency of the foregoing. VerDate Aug<31>2005 14:20 Mar 14, 2007 Jkt 211001 The Commission has broad statutory authority to protect and prohibit the unauthorized disclosure of Safeguards Information. Section 147 of the Atomic Energy Act of 1954, as amended, grants the Commission explicit authority to ‘‘* * * issue such orders, as necessary to prohibit the unauthorized disclosure of safeguards information * * *’’ This authority extends to information concerning transfer of special nuclear material, source material, and byproduct material. Licensees and all persons who produce, receive, or acquire Safeguards Information must ensure proper handling and protection of Safeguards Information to avoid unauthorized disclosure in accordance with the specific requirements for the protection of Safeguards Information contained in Attachments 2 and 3 to this Order. The Commission hereby provides notice that it intends to treat violations of the requirements contained in Attachments 2 and 3 to this Order applicable to the handling and unauthorized disclosure of Safeguards Information as serious breaches of adequate protection of the public health and safety and the common defense and security of the United States. Access to Safeguards Information is limited to those persons who have established the need-to-know the information, are considered to be trustworthy and reliable, and meet the requirements of Order EA–07–051. A need-to-know means a determination by a person having responsibility for protecting Safeguards Information that a proposed recipient’s access to Safeguards Information is necessary in the performance of official, contractual, or licensee duties of employment. Licensees and all other persons who obtain Safeguards Information must ensure that they develop, maintain and implement strict policies and procedures for the proper handling of Safeguards Information to prevent unauthorized disclosure, in accordance with the requirements in Attachments 2 and 3 to this Order. All licensees must ensure that all contractors whose employees may have access to Safeguards Information either adhere to the licensee’s policies and procedures on Safeguards Information or develop, maintain and implement their own acceptable policies and procedures. The licensees remain responsible for the conduct of their contractors. The policies and procedures necessary to ensure compliance with applicable requirements contained in Attachments 2 and 3 to this Order must address, at a minimum, the following: the general performance requirement that each PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 12213 person who produces, receives, or acquires Safeguards Information shall ensure that Safeguards Information is protected against unauthorized disclosure; protection of Safeguards Information at fixed sites, in use and in storage, and while in transit; correspondence containing Safeguards Information; access to Safeguards Information; preparation, marking, reproduction and destruction of documents; external transmission of documents; use of automatic data processing systems; removal of the Safeguards Information category; the need-to-know the information; and background checks to determine access to the information. In order to provide assurance that the licensees are implementing prudent measures to achieve a consistent level of protection to prohibit the unauthorized disclosure of Safeguards Information, all licensees who hold licenses issued by the NRC or an Agreement State authorizing them to possess and who may transport items containing radioactive material quantities of concern shall implement the requirements identified in Attachments 2 and 3 to this Order. The Commission recognizes that licensees may have already initiated many of the measures set forth in Attachments 2 and 3 to this Order for handling of Safeguards Information in conjunction with current NRC license requirements or previous NRC Orders. Additional measures set forth in Attachments 2 and 3 to this Order should be incorporated into the licensee’s current program for Safeguards Information. In addition, pursuant to 10 CFR 2.202, I find that in light of the common defense and security matters identified above, which warrant the issuance of this Order, the public health, safety and interest require that this Order be effective immediately. III Accordingly, pursuant to Sections 81, 147, 161b, 161i, 161o, 182 and 186 of the Atomic Energy Act of 1954, as amended, and the Commission’s regulations in 10 CFR 2.202, 10 CFR part 30, 10 CFR part 32, 10 CFR part 35, and 10 CFR part 70, it is hereby ordered, effective immediately, that all licensees identified in attachment 1 to this order and all other persons who produce, receive, or acquire the additional security measures identified above (whether draft or final) or any related safeguards information shall comply with the requirements of attachments 2 and 3 to this order. The Director, Office of Federal and State Materials and Environmental Management Programs, may, in writing, E:\FR\FM\15MRN1.SGM 15MRN1 12214 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Notices rmajette on PROD1PC67 with NOTICES relax or rescind any of the above conditions upon demonstration of good cause by the licensee. IV In accordance with 10 CFR 2.202, the Licensee must, and any other person adversely affected by this Order may, submit an answer to this Order, and may request a hearing on this Order, within twenty (20) days of the date of this Order. Where good cause is shown, consideration will be given to extending the time to request a hearing. A request for extension of time in which to submit an answer or request a hearing must be made in writing to the Director, Office of Federal and State Materials and Environmental Management Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555, and include a statement of good cause for the extension. The answer may consent to this Order. Unless the answer consents to this Order, the answer shall, in writing and under oath or affirmation, specifically set forth the matters of fact and law on which the Licensee or other person adversely affected relies and the reasons as to why the Order should not have been issued. Any answer or request for a hearing shall be submitted to the Secretary, Office of the Secretary of the Commission, U.S. Nuclear Regulatory Commission, ATTN: Rulemakings and Adjudications Staff, Washington, DC 20555. Copies also shall be sent to the Director, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, to the Assistant General Counsel for Materials Litigation and Enforcement at the same address, and to the Licensee if the answer or hearing request is by a person other than the Licensee. Because of possible delays in delivery of mail to United States Government offices, it is requested that answers and requests for hearing be transmitted to the Secretary of the Commission either by means of facsimile transmission to 301–415–1101 or by e-mail to hearingdocket@nrc.gov and also to the Office of the General Counsel either by means of facsimile transmission to 301–415–3725 or by email to OGCMailCenter@nrc.gov. If a person other than the Licensee requests a hearing, that person shall set forth with particularity the manner in which his interest is adversely affected by this Order and shall address the criteria set forth in 10 CFR 2.309. If a hearing is requested by the Licensee or a person whose interest is adversely affected, the Commission will issue an Order designating the time and place of any hearing. If a hearing is held, the issue to be considered at such VerDate Aug<31>2005 14:20 Mar 14, 2007 Jkt 211001 hearing shall be whether this Order should be sustained. Pursuant to 10 CFR 2.202(c)(2)(i), the Licensee may, in addition to demanding a hearing, at the time the answer is filed or sooner, move the presiding officer to set aside the immediate effectiveness of the Order on the ground that the Order, including the need for immediate effectiveness, is not based on adequate evidence but on mere suspicion, unfounded allegations, or error. In the absence of any request for hearing, or written approval of an extension of time in which to request a hearing, the provisions specified in Section III above shall be final twenty (20) days from the date of this Order without further order or proceedings. If an extension of time for requesting a hearing has been approved, the provisions specified in Section III shall be final when the extension expires if a hearing request has not been received. An answer or a request for hearing shall not stay the immediate effectiveness of this order. Dated this 8th day of March 2007. For The Nuclear Regulatory Commission. Charles L. Miller, Director, Office of Federal and State Materials and Environmental Management Programs. Attachment 1: List of Applicable Materials Licensees Redacted. Attachment 2: Modified Handling Requirements for the Protection of Certain Safeguards Information (SGI– M). Modified Handling Requirements for the Protection of Certain Safeguards Information (SGI–M). General Requirement Information and material that the U.S. Nuclear Regulatory Commission (NRC) determines are safeguards information must be protected from unauthorized disclosure. In order to distinguish information needing modified protection requirements from the safeguards information for reactors and fuel cycle facilities that require a higher level of protection, the term ‘‘Safeguards Information-Modified Handling’’ (SGI– M) is being used as the distinguishing marking for certain materials licensees. Each person who produces, receives, or acquires SGI–M shall ensure that it is protected against unauthorized disclosure. To meet this requirement, licensees and persons shall establish and maintain an information protection system that includes the measures specified below. Information protection procedures employed by state and local police forces are deemed to meet these requirements. PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 Persons Subject to These Requirements Any person, whether or not a licensee of the NRC, who produces, receives, or acquires SGI–M is subject to the requirements (and sanctions) of this document. Firms and their employees that supply services or equipment to materials licensees would fall under this requirement if they possess facility SGI– M. A licensee must inform contractors and suppliers of the existence of these requirements and the need for proper protection. (See more under Conditions for Access.) State or local police units who have access to SGI–M are also subject to these requirements. However, these organizations are deemed to have adequate information protection systems. The conditions for transfer of information to a third party, i.e., needto-know, would still apply to the police organization as would sanctions for unlawful disclosure. Again, it would be prudent for licensees who have arrangements with local police to advise them of the existence of these requirements. Criminal and Civil Sanctions The Atomic Energy Act of 1954, as amended, explicitly provides that any person, ‘‘whether or not a licensee of the Commission, who violates any regulations adopted under this section shall be subject to the civil monetary penalties of section 234 of this Act.’’ Furthermore, willful violation of any regulation or order governing safeguards information is a felony subject to criminal penalties in the form of fines or imprisonment, or both. See sections 147b. and 223 of the Act. Conditions for Access Access to SGI–M beyond the initial recipients of the order will be governed by the background check requirements imposed by the order. Access to SGI–M by licensee employees, agents, or contractors must include both an appropriate need-to-know determination by the licensee, as well as a determination concerning the trustworthiness of individuals having access to the information. Employees of an organization affiliated with the licensee’s company, e.g., a parent company, may be considered as employees of the licensee for access purposes. Need-to-Know Need-to-know is defined as a determination by a person having responsibility for protecting SGI–M that a proposed recipient’s access to SGI–M is necessary in the performance of official, contractual, or licensee duties E:\FR\FM\15MRN1.SGM 15MRN1 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Notices of employment. The recipient should be made aware that the information is SGI– M and those having access to it are subject to these requirements as well as criminal and civil sanctions for mishandling the information. rmajette on PROD1PC67 with NOTICES Occupational Groups Dissemination of SGI–M is limited to individuals who have an established need-to-know and who are members of certain occupational groups. These occupational groups are: A. An employee, agent, or contractor of an applicant, a licensee, the Commission, or the United States Government; B. A member of a duly authorized committee of the Congress; C. The Governor of a State or his designated representative; D. A representative of the International Atomic Energy Agency (IAEA) engaged in activities associated with the U.S./IAEA Safeguards Agreement who has been certified by the NRC; E. A member of a state or local law enforcement authority that is responsible for responding to requests for assistance during safeguards emergencies; F. A person to whom disclosure is ordered pursuant to Section 2.744(e) of Part 2 of Part 10 of the Code of Federal Regulations; or, G. State Radiation Control Program Directors (and State Homeland Security Directors) or their designees. In a generic sense, the individuals described above in (A) through (G) are considered to be trustworthy by virtue of their employment status. For nongovernmental individuals in group (A) above, a determination of reliability and trustworthiness is required. Discretion must be exercised in granting access to these individuals. If there is any indication that the recipient would be unwilling or unable to provide proper protection for the SGI–M, they are not authorized to receive SGI–M. Information Considered for Safeguards Information Designation Information deemed SGI–M is information the disclosure of which 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 theft, diversion, or sabotage of materials or facilities subject to NRC jurisdiction. SGI–M identifies safeguards information which is subject to these requirements. These requirements are necessary in order to protect quantities of nuclear material significant to the VerDate Aug<31>2005 14:20 Mar 14, 2007 Jkt 211001 health and safety of the public or common defense and security. The overall measure for consideration of SGI–M is the usefulness of the information (security or otherwise) to an adversary in planning or attempting a malevolent act. The specificity of the information increases the likelihood that it will be useful to an adversary. Protection While in Use While in use, SGI–M shall be under the control of an authorized individual. This requirement is satisfied if the SGI– M is attended by an authorized individual even though the information is in fact not constantly being used. SGI–M, therefore, within alarm stations, continuously manned guard posts or ready rooms need not be locked in file drawers or storage containers. Under certain conditions the general control exercised over security zones or areas would be considered to meet this requirement. The primary consideration is limiting access to those who have a need-to-know. Some examples would be: Alarm stations, guard posts and guard ready rooms; Engineering or drafting areas if visitors are escorted and information is not clearly visible; Plant maintenance areas if access is restricted and information is not clearly visible; Administrative offices (e.g., central records or purchasing) if visitors are escorted and information is not clearly visible. Protection While in Storage While unattended, SGI–M shall be stored in a locked file drawer or container. Knowledge of lock combinations or access to keys protecting SGI–M shall be limited to a minimum number of personnel for operating purposes who have a ‘‘needto-know’’ and are otherwise authorized access to SGI–M in accordance with these requirements. Access to lock combinations or keys shall be strictly controlled so as to prevent disclosure to an unauthorized individual. Transportation of Documents and Other Matter Documents containing SGI–M when transmitted outside an authorized place of use or storage shall be enclosed in two sealed envelopes or wrappers. The inner envelope or wrapper shall contain the name and address of the intended recipient, and be marked both sides, top and bottom with the words ‘‘Safeguards Information—Modified Handling.’’ The outer envelope or wrapper must be addressed to the intended recipient, must contain the address of the sender, and must not bear any markings or PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 12215 indication that the document contains SGI–M. SGI–M may be transported by any commercial delivery company that provides nationwide overnight service with computer tracking features, U.S. first class, registered, express, or certified mail, or by any individual authorized access pursuant to these requirements. Within a facility, SGI–M may be transmitted using a single opaque envelope. It may also be transmitted within a facility without single or double wrapping, provided adequate measures are taken to protect the material against unauthorized disclosure. Individuals transporting SGI–M should retain the documents in their personal possession at all times or ensure that the information is appropriately wrapped and also secured to preclude compromise by an unauthorized individual. Preparation and Marking of Documents While the NRC is the sole authority for determining what specific information may be designated as ‘‘SGI– M,’’ originators of documents are responsible for determining whether those documents contain such information. Each document or other matter that contains SGI–M shall be marked ‘‘Safeguards Information— Modified Handling’’ in a conspicuous manner on the top and bottom of the first page to indicate the presence of protected information. The first page of the document must also contain (i) the name, title, and organization of the individual authorized to make a SGI–M determination, and who has determined that the document contains SGI–M, (ii) the date the document was originated or the determination made, (iii) an indication that the document contains SGI–M, and (iv) an indication that unauthorized disclosure would be subject to civil and criminal sanctions. Each additional page shall be marked in a conspicuous fashion at the top and bottom with letters denoting ‘‘Safeguards Information—Modified Handling.’’ In addition to the ‘‘Safeguards Information—Modified Handling’’ markings at the top and bottom of each page, transmittal letters or memoranda which do not in themselves contain SGI–M shall be marked to indicate that attachments or enclosures contain SGI– M but that the transmittal does not (e.g., ‘‘When separated from SGI–M enclosure(s), this document is decontrolled’’). In addition to the information required on the face of the document, each item of correspondence that E:\FR\FM\15MRN1.SGM 15MRN1 12216 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Notices contains SGI–M shall, by marking or other means, clearly indicate which portions (e.g., paragraphs, pages, or appendices) contain SGI–M and which do not. Portion marking is not required for physical security and safeguards contingency plans. All documents or other matter containing SGI–M in use or storage shall be marked in accordance with these requirements. A specific exception is provided for documents in the possession of contractors and agents of licensees that were produced more than one year prior to the effective date of the order. Such documents need not be marked unless they are removed from file drawers or containers. The same exception applies to old documents stored away from the facility in central files or corporation headquarters. Since information protection procedures employed by state and local police forces are deemed to meet NRC requirements, documents in the possession of these agencies need not be marked as set forth in this document. rmajette on PROD1PC67 with NOTICES Removal From SGI–M Category Documents containing SGI–M shall be removed from the SGI–M category (decontrolled) only after the NRC determines that the information no longer meets the criteria of SGI–M. Licensees have the authority to make determinations that specific documents which they created no longer contain SGI–M information and may be decontrolled. Consideration must be exercised to ensure that any document decontrolled shall not disclose SGI–M in some other form or be combined with other unprotected information to disclose SGI–M. The authority to determine that a document may be decontrolled may be exercised only by, or with the permission of, the individual (or office) who made the original determination. The document shall indicate the name and organization of the individual removing the document from the SGI– M category and the date of the removal. Other persons who have the document in their possession should be notified of the decontrolling of the document. Reproduction of Matter Containing SGI–M SGI–M may be reproduced to the minimum extent necessary consistent with need without permission of the originator. Newer digital copiers which scan and retain images of documents represent a potential security concern. If the copier is retaining SGI–M information in memory, the copier cannot be connected to a network. It should also be placed in a location that VerDate Aug<31>2005 14:20 Mar 14, 2007 Jkt 211001 is cleared and controlled for the authorized processing of SGI–M information. Different copiers have different capabilities, including some which come with features that allow the memory to be erased. Each copier would have to be examined from a physical security perspective. Use of Automatic Data Processing (ADP) Systems SGI–M may be processed or produced on an ADP system provided that the system is assigned to the licensee’s or contractor’s facility and requires the use of an entry code/password for access to stored information. Licensees are encouraged to process this information in a computing environment that has adequate computer security controls in place to prevent unauthorized access to the information. An ADP system is defined here as a data processing system having the capability of long term storage of SGI–M. Word processors such as typewriters are not subject to the requirements as long as they do not transmit information off-site. (Note: if SGI–M is produced on a typewriter, the ribbon must be removed and stored in the same manner as other SGI–M information or media.) The basic objective of these restrictions is to prevent access and retrieval of stored SGI–M by unauthorized individuals, particularly from remote terminals. Specific files containing SGI–M will be password protected to preclude access by an unauthorized individual. The National Institute of Standards and Technology (NIST) maintains a listing of all validated encryption systems at http://csrc.nist.gov/cryptval/140-1/ 1401val.htm. SGI–M files may be transmitted over a network if the file is encrypted. In such cases, the licensee will select a commercially available encryption system that NIST has validated as conforming to Federal Information Processing Standards (FIPS). SGI–M files shall be properly labeled as ‘‘Safeguards Information— Modified Handling’’ and saved to removable media and stored in a locked file drawer or cabinet. Telecommunications SGI–M may not be transmitted by unprotected telecommunications circuits except under emergency or extraordinary conditions. For the purpose of this requirement, emergency or extraordinary conditions are defined as any circumstances that require immediate communications in order to report, summon assistance for, or respond to a security event (or an event that has potential security significance). PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 This restriction applies to telephone, telegraph, teletype, facsimile circuits, and to radio. Routine telephone or radio transmission between site security personnel, or between the site and local police, should be limited to message formats or codes that do not disclose facility security features or response procedures. Similarly, call-ins during transport should not disclose information useful to a potential adversary. Infrequent or non-repetitive telephone conversations regarding a physical security plan or program are permitted provided that the discussion is general in nature. Individuals should use care when discussing SGI–M at meetings or in the presence of others to ensure that the conversation is not overheard by persons not authorized access. Transcripts, tapes or minutes of meetings or hearings that contain SGI– M shall be marked and protected in accordance with these requirements. Destruction Documents containing SGI–M should be destroyed when no longer needed. They may be destroyed by tearing into small pieces, burning, shredding or any other method that precludes reconstruction by means available to the public at large. Piece sizes one half inch or smaller composed of several pages or documents and thoroughly mixed would be considered completely destroyed. Attachment 3: Trustworthy and Reliability Requirements for Individuals Handling Safeguards Information. In order to ensure the safe handling, use, and control of information designated as Safeguards Information, each licensee shall control and limit access to the information to only those individuals who have established the need-to-know the information, and are considered to be trustworthy and reliable. Licensees shall document the basis for concluding that there is reasonable assurance that individuals granted access to Safeguards Information are trustworthy and reliable, and do not constitute an unreasonable risk for malevolent use of the information. The Licensee shall comply with the requirements of this attachment: 8. The trustworthiness and reliability of an individual shall be determined based on a background investigation: (a) The background investigation shall address at least the past 3 years, and, at a minimum, include verification of employment, education, and personal references. The licensee shall also, to the extent possible, obtain independent information to corroborate that provided E:\FR\FM\15MRN1.SGM 15MRN1 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Notices by the employee (i.e., seeking references not supplied by the individual). (b) If an individual’s employment has been less than the required 3-year period, educational references may be used in lieu of employment history. The licensee’s background investigation requirements may be satisfied for an individual that has an active Federal security clearance. 9. The licensee shall retain documentation regarding the trustworthiness and reliability of individual employees for 3 years after the individual’s employment ends. [FR Doc. E7–4753 Filed 3–14–07; 8:45 am] BILLING CODE 7590–01–P NUCLEAR REGULATORY COMMISSION Background Notice of Availability of Model Application Concerning Technical Specification Improvement Regarding Deletion of E Bar Definition and Revision to Reactor Coolant System Specific Activity Technical Specification Using the Consolidated Line Item Improvement Process Nuclear Regulatory Commission. ACTION: Notice of Availability. rmajette on PROD1PC67 with NOTICES AGENCY: SUMMARY: Notice is hereby given that the staff of the U. S. Nuclear Regulatory Commission (NRC) has prepared a model license amendment request (LAR), model safety evaluation (SE), and model proposed no significant hazards consideration (NSHC) determination related to deletion of the E Bar definition and revision to reactor coolant system (RCS) specific activity technical specification. This request revises the RCS specific activity specification for pressurized water reactors to utilize a new indicator, Dose Equivalent Xenon-133 instead of the current indicator known as E Bar. The purpose of these models is to permit the NRC staff to efficiently process amendments to incorporate these changes into plant-specific technical specifications (TS) for Babcock and Wilcox, Westinghouse, and Combustion Engineering pressurized water reactors (PWRs). Licensees of nuclear power reactors to which the models apply can request amendments conforming to the models. In such a request, a licensee should confirm the applicability of the model LAR, model SE and NSHC determination to its plant. DATES: The NRC staff issued a Federal Register Notice (71 FR 67170, November 20, 2006) which provided a model LAR, model SE, and model NSHC related to VerDate Aug<31>2005 14:20 Mar 14, 2007 deletion of E Bar definition and revision to RCS specific activity technical specification; similarly the NRC staff herein provides a revised model LAR, a revised model SE, and a revised model NSHC. The NRC staff can most efficiently consider applications based upon the model LAR, which references the model SE, if the application is submitted within one year of this Federal Register Notice. FOR FURTHER INFORMATION CONTACT: Trent Wertz, Mail Stop: O–12H2, Division of Inspection and Regional Support, Office of Nuclear Reactor Regulation, U.S. Nuclear Regulatory Commission, Washington, DC 20555– 0001, telephone (301) 415–1568. SUPPLEMENTARY INFORMATION: Jkt 211001 Regulatory Issue Summary 2000–06, ‘‘Consolidated Line Item Improvement Process (CLIIP) for Adopting Standard Technical Specifications Changes for Power Reactors,’’ was issued on March 20, 2000. The CLIIP is intended to improve the efficiency and transparency of NRC licensing processes. This is accomplished by processing proposed changes to the Standard Technical Specifications (STS) in a manner that supports subsequent license amendment applications. The CLIIP includes an opportunity for the public to comment on proposed changes to the STS following a preliminary assessment by the NRC staff and finding that the change will likely be offered for adoption by licensees. The CLIIP directs the NRC staff to evaluate any comments received for a proposed change to the STS and to either reconsider the change or proceed with announcing the availability of the change for proposed adoption by licensees. Those licensees opting to apply for the subject change to TSs are responsible for reviewing the NRC staff’s evaluation, referencing the applicable technical justifications, and providing any necessary plant-specific information. Each amendment application made in response to the notice of availability will be processed and noticed in accordance with applicable NRC rules and procedures. This notice involves replacement of the current PWR TS 3.4.16 limit on RCS gross specific activity with a new limit on RCS noble gas specific activity. The noble gas specific activity limit would be based on a new dose equivalent Xe133 (DEX) definition that would replace the current E Bar average disintegration energy definition. In addition, the current dose equivalent I–131 (DEI) definition would be revised to allow the use of additional thyroid dose PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 12217 conversion factors (DCFs). By letter dated September 13, 2005, the Technical Specification Task Force (TSTF) proposed these changes for incorporation into the STS as TSTF– 490, Revision 0, which was referenced in the Federal Register Notice (FRN) 71 FR 67170, of November 20, 2006, and can be viewed on the NRC’s Web page at http://www.nrc.gov/reactors/ operating/licensing/techspecs.html. Applicability These proposed changes will revise the definition of DOSE EQUIVALENT I– 131, delete the definition of ‘‘E Bar,’’ AVERAGE DISINTEGRATION ENERGY, add a new definition for DOSE EQUIVALENT XE–133, and revise LCO 3.4.16 for Babcock and Wilcox, Westinghouse, and Combustion Engineering PWRs. To efficiently process the incoming license amendment applications, the NRC staff requests that each licensee applying for the changes addressed by TSTF–490, Revision 0, using the CLIIP submit an LAR that adheres to the following model. Any variations from the model LAR should be explained in the licensee’s submittal. Variations from the approach recommended in this notice may require additional review by the NRC staff, and may increase the time and resources needed for the review. Significant variations from the approach, or inclusion of additional changes to the license, will result in staff rejection of the submittal. Instead, licensees desiring significant variations and/or additional changes should submit a LAR that does not claim to adopt TSTF–490. Public Notices The staff issued a Federal Register Notice (71 FR 67170, November 20, 2006) that requested public comment on the NRC’s pending action to delete the E Bar definition and revise the RCS specific activity technical specification. In particular, following an assessment and draft safety evaluation by the NRC staff, the staff sought public comment on proposed changes to the STS, designated TSTF–490 Revision 0. The TSTF–490 Revision 0 can be viewed on the NRC’s Web page at http:// www.nrc.gov/reactors/operating/ licensing/techspecs.html. TSTF–490 Revision 0 may be examined, and/or copied for a fee, at the NRC Public Document Room, located at One White Flint North, 11555 Rockville Pike (first floor), Rockville, Maryland. Publicly available records are accessible electronically from the ADAMS Public Library component on the NRC Web site, (the Electronic Reading Room) at E:\FR\FM\15MRN1.SGM 15MRN1

Agencies

[Federal Register Volume 72, Number 50 (Thursday, March 15, 2007)]
[Notices]
[Pages 12213-12217]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-4753]



[[Page 12213]]

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NUCLEAR REGULATORY COMMISSION

[EA-07-050]


In The Matter Of All Licensees Who Possess Radioactive Material 
In Quantities Of Concern And All Other Persons Who Obtain Safeguards 
Information Described Herein; Order Imposing Requirements for the 
Protection of Certain Safeguards Information (Effective Immediately)

    The Licensees, identified in Attachment 1 \1\ to this Order, are 
applicants for or hold licenses issued in accordance with the Atomic 
Energy Act of 1954, by the U.S. Nuclear Regulatory Commission (NRC or 
Commission) or an Agreement State, authorizing them to possess, use, 
and transfer items containing radioactive material quantities of 
concern. NRC intends to issue security Orders to these licensees in the 
near future. Orders will be issued to both NRC and Agreement State 
materials licensees who may possess or transfer radioactive material 
quantities of concern. The Orders will require compliance with specific 
Compensatory Measures to enhance the security for certain radioactive 
material quantities of concern. The NRC will issue Orders to both NRC 
and Agreement State licensees under its authority to protect the common 
defense and security, which has not been relinquished to the Agreement 
States. The Commission has determined that these documents will contain 
Safeguards Information, will not be released to the public, and must be 
protected from unauthorized disclosure. Therefore, the Commission is 
imposing the requirements, as set forth in Attachments 2 and 3 to this 
Order and in Order EA-07-051, so that affected Licensees can receive 
these documents. This Order also imposes requirements for the 
protection of Safeguards Information in the hands of any person,\2\ 
whether or not a licensee of the Commission, who produces, receives, or 
acquires Safeguards Information.
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    \1\ Attachment 1 contains sensitive information and will not be 
released to the public.
    \2\ Person means (1) any individual, corporation, partnership, 
firm, association, trust, estate, public or private institution, 
group, government agency other than the Commission or the 
Department, except that the Department shall be considered a person 
with respect to those facilities of the Department specified in 
section 202 of the Energy Reorganization Act of 1974 (88 Stat. 
1244), any State or any political subdivision of, or any political 
entity within a State, any foreign government or nation or any 
political subdivision of any such government or nation, or other 
entity; and (2) any legal successor, representative, agent, or 
agency of the foregoing.
---------------------------------------------------------------------------

II

    The Commission has broad statutory authority to protect and 
prohibit the unauthorized disclosure of Safeguards Information. Section 
147 of the Atomic Energy Act of 1954, as amended, grants the Commission 
explicit authority to ``* * * issue such orders, as necessary to 
prohibit the unauthorized disclosure of safeguards information * * *'' 
This authority extends to information concerning transfer of special 
nuclear material, source material, and byproduct material. Licensees 
and all persons who produce, receive, or acquire Safeguards Information 
must ensure proper handling and protection of Safeguards Information to 
avoid unauthorized disclosure in accordance with the specific 
requirements for the protection of Safeguards Information contained in 
Attachments 2 and 3 to this Order. The Commission hereby provides 
notice that it intends to treat violations of the requirements 
contained in Attachments 2 and 3 to this Order applicable to the 
handling and unauthorized disclosure of Safeguards Information as 
serious breaches of adequate protection of the public health and safety 
and the common defense and security of the United States. Access to 
Safeguards Information is limited to those persons who have established 
the need-to-know the information, are considered to be trustworthy and 
reliable, and meet the requirements of Order EA-07-051. A need-to-know 
means a determination by a person having responsibility for protecting 
Safeguards Information that a proposed recipient's access to Safeguards 
Information is necessary in the performance of official, contractual, 
or licensee duties of employment. Licensees and all other persons who 
obtain Safeguards Information must ensure that they develop, maintain 
and implement strict policies and procedures for the proper handling of 
Safeguards Information to prevent unauthorized disclosure, in 
accordance with the requirements in Attachments 2 and 3 to this Order. 
All licensees must ensure that all contractors whose employees may have 
access to Safeguards Information either adhere to the licensee's 
policies and procedures on Safeguards Information or develop, maintain 
and implement their own acceptable policies and procedures. The 
licensees remain responsible for the conduct of their contractors. The 
policies and procedures necessary to ensure compliance with applicable 
requirements contained in Attachments 2 and 3 to this Order must 
address, at a minimum, the following: the general performance 
requirement that each person who produces, receives, or acquires 
Safeguards Information shall ensure that Safeguards Information is 
protected against unauthorized disclosure; protection of Safeguards 
Information at fixed sites, in use and in storage, and while in 
transit; correspondence containing Safeguards Information; access to 
Safeguards Information; preparation, marking, reproduction and 
destruction of documents; external transmission of documents; use of 
automatic data processing systems; removal of the Safeguards 
Information category; the need-to-know the information; and background 
checks to determine access to the information.
    In order to provide assurance that the licensees are implementing 
prudent measures to achieve a consistent level of protection to 
prohibit the unauthorized disclosure of Safeguards Information, all 
licensees who hold licenses issued by the NRC or an Agreement State 
authorizing them to possess and who may transport items containing 
radioactive material quantities of concern shall implement the 
requirements identified in Attachments 2 and 3 to this Order. The 
Commission recognizes that licensees may have already initiated many of 
the measures set forth in Attachments 2 and 3 to this Order for 
handling of Safeguards Information in conjunction with current NRC 
license requirements or previous NRC Orders. Additional measures set 
forth in Attachments 2 and 3 to this Order should be incorporated into 
the licensee's current program for Safeguards Information. In addition, 
pursuant to 10 CFR 2.202, I find that in light of the common defense 
and security matters identified above, which warrant the issuance of 
this Order, the public health, safety and interest require that this 
Order be effective immediately.

III

    Accordingly, pursuant to Sections 81, 147, 161b, 161i, 161o, 182 
and 186 of the Atomic Energy Act of 1954, as amended, and the 
Commission's regulations in 10 CFR 2.202, 10 CFR part 30, 10 CFR part 
32, 10 CFR part 35, and 10 CFR part 70, it is hereby ordered, effective 
immediately, that all licensees identified in attachment 1 to this 
order and all other persons who produce, receive, or acquire the 
additional security measures identified above (whether draft or final) 
or any related safeguards information shall comply with the 
requirements of attachments 2 and 3 to this order.
    The Director, Office of Federal and State Materials and 
Environmental Management Programs, may, in writing,

[[Page 12214]]

relax or rescind any of the above conditions upon demonstration of good 
cause by the licensee.

IV

    In accordance with 10 CFR 2.202, the Licensee must, and any other 
person adversely affected by this Order may, submit an answer to this 
Order, and may request a hearing on this Order, within twenty (20) days 
of the date of this Order. Where good cause is shown, consideration 
will be given to extending the time to request a hearing. A request for 
extension of time in which to submit an answer or request a hearing 
must be made in writing to the Director, Office of Federal and State 
Materials and Environmental Management Programs, U.S. Nuclear 
Regulatory Commission, Washington, DC 20555, and include a statement of 
good cause for the extension. The answer may consent to this Order. 
Unless the answer consents to this Order, the answer shall, in writing 
and under oath or affirmation, specifically set forth the matters of 
fact and law on which the Licensee or other person adversely affected 
relies and the reasons as to why the Order should not have been issued. 
Any answer or request for a hearing shall be submitted to the 
Secretary, Office of the Secretary of the Commission, U.S. Nuclear 
Regulatory Commission, ATTN: Rulemakings and Adjudications Staff, 
Washington, DC 20555. Copies also shall be sent to the Director, Office 
of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory 
Commission, Washington, DC 20555, to the Assistant General Counsel for 
Materials Litigation and Enforcement at the same address, and to the 
Licensee if the answer or hearing request is by a person other than the 
Licensee. Because of possible delays in delivery of mail to United 
States Government offices, it is requested that answers and requests 
for hearing be transmitted to the Secretary of the Commission either by 
means of facsimile transmission to 301-415-1101 or by e-mail to 
hearingdocket@nrc.gov and also to the Office of the General Counsel 
either by means of facsimile transmission to 301-415-3725 or by e-mail 
to OGCMailCenter@nrc.gov. If a person other than the Licensee requests 
a hearing, that person shall set forth with particularity the manner in 
which his interest is adversely affected by this Order and shall 
address the criteria set forth in 10 CFR 2.309.
    If a hearing is requested by the Licensee or a person whose 
interest is adversely affected, the Commission will issue an Order 
designating the time and place of any hearing. If a hearing is held, 
the issue to be considered at such hearing shall be whether this Order 
should be sustained.
    Pursuant to 10 CFR 2.202(c)(2)(i), the Licensee may, in addition to 
demanding a hearing, at the time the answer is filed or sooner, move 
the presiding officer to set aside the immediate effectiveness of the 
Order on the ground that the Order, including the need for immediate 
effectiveness, is not based on adequate evidence but on mere suspicion, 
unfounded allegations, or error. In the absence of any request for 
hearing, or written approval of an extension of time in which to 
request a hearing, the provisions specified in Section III above shall 
be final twenty (20) days from the date of this Order without further 
order or proceedings. If an extension of time for requesting a hearing 
has been approved, the provisions specified in Section III shall be 
final when the extension expires if a hearing request has not been 
received.
    An answer or a request for hearing shall not stay the immediate 
effectiveness of this order.

    Dated this 8th day of March 2007.

    For The Nuclear Regulatory Commission.
Charles L. Miller,
Director, Office of Federal and State Materials and Environmental 
Management Programs.

    Attachment 1: List of Applicable Materials Licensees Redacted.
    Attachment 2: Modified Handling Requirements for the Protection of 
Certain Safeguards Information (SGI-M).
    Modified Handling Requirements for the Protection of Certain 
Safeguards Information (SGI-M).

General Requirement

    Information and material that the U.S. Nuclear Regulatory 
Commission (NRC) determines are safeguards information must be 
protected from unauthorized disclosure. In order to distinguish 
information needing modified protection requirements from the 
safeguards information for reactors and fuel cycle facilities that 
require a higher level of protection, the term ``Safeguards 
Information-Modified Handling'' (SGI-M) is being used as the 
distinguishing marking for certain materials licensees. Each person who 
produces, receives, or acquires SGI-M shall ensure that it is protected 
against unauthorized disclosure. To meet this requirement, licensees 
and persons shall establish and maintain an information protection 
system that includes the measures specified below. Information 
protection procedures employed by state and local police forces are 
deemed to meet these requirements.

Persons Subject to These Requirements

    Any person, whether or not a licensee of the NRC, who produces, 
receives, or acquires SGI-M is subject to the requirements (and 
sanctions) of this document. Firms and their employees that supply 
services or equipment to materials licensees would fall under this 
requirement if they possess facility SGI-M. A licensee must inform 
contractors and suppliers of the existence of these requirements and 
the need for proper protection. (See more under Conditions for Access.)
    State or local police units who have access to SGI-M are also 
subject to these requirements. However, these organizations are deemed 
to have adequate information protection systems. The conditions for 
transfer of information to a third party, i.e., need-to-know, would 
still apply to the police organization as would sanctions for unlawful 
disclosure. Again, it would be prudent for licensees who have 
arrangements with local police to advise them of the existence of these 
requirements.

Criminal and Civil Sanctions

    The Atomic Energy Act of 1954, as amended, explicitly provides that 
any person, ``whether or not a licensee of the Commission, who violates 
any regulations adopted under this section shall be subject to the 
civil monetary penalties of section 234 of this Act.'' Furthermore, 
willful violation of any regulation or order governing safeguards 
information is a felony subject to criminal penalties in the form of 
fines or imprisonment, or both. See sections 147b. and 223 of the Act.

Conditions for Access

    Access to SGI-M beyond the initial recipients of the order will be 
governed by the background check requirements imposed by the order. 
Access to SGI-M by licensee employees, agents, or contractors must 
include both an appropriate need-to-know determination by the licensee, 
as well as a determination concerning the trustworthiness of 
individuals having access to the information. Employees of an 
organization affiliated with the licensee's company, e.g., a parent 
company, may be considered as employees of the licensee for access 
purposes.

Need-to-Know

    Need-to-know is defined as a determination by a person having 
responsibility for protecting SGI-M that a proposed recipient's access 
to SGI-M is necessary in the performance of official, contractual, or 
licensee duties

[[Page 12215]]

of employment. The recipient should be made aware that the information 
is SGI-M and those having access to it are subject to these 
requirements as well as criminal and civil sanctions for mishandling 
the information.

Occupational Groups

    Dissemination of SGI-M is limited to individuals who have an 
established need-to-know and who are members of certain occupational 
groups. These occupational groups are:
    A. An employee, agent, or contractor of an applicant, a licensee, 
the Commission, or the United States Government;
    B. A member of a duly authorized committee of the Congress;
    C. The Governor of a State or his designated representative;
    D. A representative of the International Atomic Energy Agency 
(IAEA) engaged in activities associated with the U.S./IAEA Safeguards 
Agreement who has been certified by the NRC;
    E. A member of a state or local law enforcement authority that is 
responsible for responding to requests for assistance during safeguards 
emergencies;
    F. A person to whom disclosure is ordered pursuant to Section 
2.744(e) of Part 2 of Part 10 of the Code of Federal Regulations; or,
    G. State Radiation Control Program Directors (and State Homeland 
Security Directors) or their designees.
    In a generic sense, the individuals described above in (A) through 
(G) are considered to be trustworthy by virtue of their employment 
status. For non-governmental individuals in group (A) above, a 
determination of reliability and trustworthiness is required. 
Discretion must be exercised in granting access to these individuals. 
If there is any indication that the recipient would be unwilling or 
unable to provide proper protection for the SGI-M, they are not 
authorized to receive SGI-M.

Information Considered for Safeguards Information Designation

    Information deemed SGI-M is information the disclosure of which 
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 theft, diversion, or 
sabotage of materials or facilities subject to NRC jurisdiction.
    SGI-M identifies safeguards information which is subject to these 
requirements. These requirements are necessary in order to protect 
quantities of nuclear material significant to the health and safety of 
the public or common defense and security.
    The overall measure for consideration of SGI-M is the usefulness of 
the information (security or otherwise) to an adversary in planning or 
attempting a malevolent act. The specificity of the information 
increases the likelihood that it will be useful to an adversary.

Protection While in Use

    While in use, SGI-M shall be under the control of an authorized 
individual. This requirement is satisfied if the SGI-M is attended by 
an authorized individual even though the information is in fact not 
constantly being used. SGI-M, therefore, within alarm stations, 
continuously manned guard posts or ready rooms need not be locked in 
file drawers or storage containers.
    Under certain conditions the general control exercised over 
security zones or areas would be considered to meet this requirement. 
The primary consideration is limiting access to those who have a need-
to-know. Some examples would be:

    Alarm stations, guard posts and guard ready rooms;
    Engineering or drafting areas if visitors are escorted and 
information is not clearly visible;
    Plant maintenance areas if access is restricted and information 
is not clearly visible;
    Administrative offices (e.g., central records or purchasing) if 
visitors are escorted and information is not clearly visible.

Protection While in Storage

    While unattended, SGI-M shall be stored in a locked file drawer or 
container. Knowledge of lock combinations or access to keys protecting 
SGI-M shall be limited to a minimum number of personnel for operating 
purposes who have a ``need-to-know'' and are otherwise authorized 
access to SGI-M in accordance with these requirements. Access to lock 
combinations or keys shall be strictly controlled so as to prevent 
disclosure to an unauthorized individual.

Transportation of Documents and Other Matter

    Documents containing SGI-M when transmitted outside an authorized 
place of use or storage shall be enclosed in two sealed envelopes or 
wrappers. The inner envelope or wrapper shall contain the name and 
address of the intended recipient, and be marked both sides, top and 
bottom with the words ``Safeguards Information--Modified Handling.'' 
The outer envelope or wrapper must be addressed to the intended 
recipient, must contain the address of the sender, and must not bear 
any markings or indication that the document contains SGI-M.
    SGI-M may be transported by any commercial delivery company that 
provides nationwide overnight service with computer tracking features, 
U.S. first class, registered, express, or certified mail, or by any 
individual authorized access pursuant to these requirements.
    Within a facility, SGI-M may be transmitted using a single opaque 
envelope. It may also be transmitted within a facility without single 
or double wrapping, provided adequate measures are taken to protect the 
material against unauthorized disclosure. Individuals transporting SGI-
M should retain the documents in their personal possession at all times 
or ensure that the information is appropriately wrapped and also 
secured to preclude compromise by an unauthorized individual.

Preparation and Marking of Documents

    While the NRC is the sole authority for determining what specific 
information may be designated as ``SGI-M,'' originators of documents 
are responsible for determining whether those documents contain such 
information. Each document or other matter that contains SGI-M shall be 
marked ``Safeguards Information--Modified Handling'' in a conspicuous 
manner on the top and bottom of the first page to indicate the presence 
of protected information. The first page of the document must also 
contain (i) the name, title, and organization of the individual 
authorized to make a SGI-M determination, and who has determined that 
the document contains SGI-M, (ii) the date the document was originated 
or the determination made, (iii) an indication that the document 
contains SGI-M, and (iv) an indication that unauthorized disclosure 
would be subject to civil and criminal sanctions. Each additional page 
shall be marked in a conspicuous fashion at the top and bottom with 
letters denoting ``Safeguards Information--Modified Handling.''
    In addition to the ``Safeguards Information--Modified Handling'' 
markings at the top and bottom of each page, transmittal letters or 
memoranda which do not in themselves contain SGI-M shall be marked to 
indicate that attachments or enclosures contain SGI-M but that the 
transmittal does not (e.g., ``When separated from SGI-M enclosure(s), 
this document is decontrolled'').
    In addition to the information required on the face of the 
document, each item of correspondence that

[[Page 12216]]

contains SGI-M shall, by marking or other means, clearly indicate which 
portions (e.g., paragraphs, pages, or appendices) contain SGI-M and 
which do not. Portion marking is not required for physical security and 
safeguards contingency plans.
    All documents or other matter containing SGI-M in use or storage 
shall be marked in accordance with these requirements. A specific 
exception is provided for documents in the possession of contractors 
and agents of licensees that were produced more than one year prior to 
the effective date of the order. Such documents need not be marked 
unless they are removed from file drawers or containers. The same 
exception applies to old documents stored away from the facility in 
central files or corporation headquarters.
    Since information protection procedures employed by state and local 
police forces are deemed to meet NRC requirements, documents in the 
possession of these agencies need not be marked as set forth in this 
document.

Removal From SGI-M Category

    Documents containing SGI-M shall be removed from the SGI-M category 
(decontrolled) only after the NRC determines that the information no 
longer meets the criteria of SGI-M. Licensees have the authority to 
make determinations that specific documents which they created no 
longer contain SGI-M information and may be decontrolled. Consideration 
must be exercised to ensure that any document decontrolled shall not 
disclose SGI-M in some other form or be combined with other unprotected 
information to disclose SGI-M.
    The authority to determine that a document may be decontrolled may 
be exercised only by, or with the permission of, the individual (or 
office) who made the original determination. The document shall 
indicate the name and organization of the individual removing the 
document from the SGI-M category and the date of the removal. Other 
persons who have the document in their possession should be notified of 
the decontrolling of the document.

Reproduction of Matter Containing SGI-M

    SGI-M may be reproduced to the minimum extent necessary consistent 
with need without permission of the originator. Newer digital copiers 
which scan and retain images of documents represent a potential 
security concern. If the copier is retaining SGI-M information in 
memory, the copier cannot be connected to a network. It should also be 
placed in a location that is cleared and controlled for the authorized 
processing of SGI-M information. Different copiers have different 
capabilities, including some which come with features that allow the 
memory to be erased. Each copier would have to be examined from a 
physical security perspective.

Use of Automatic Data Processing (ADP) Systems

    SGI-M may be processed or produced on an ADP system provided that 
the system is assigned to the licensee's or contractor's facility and 
requires the use of an entry code/password for access to stored 
information. Licensees are encouraged to process this information in a 
computing environment that has adequate computer security controls in 
place to prevent unauthorized access to the information. An ADP system 
is defined here as a data processing system having the capability of 
long term storage of SGI-M. Word processors such as typewriters are not 
subject to the requirements as long as they do not transmit information 
off-site. (Note: if SGI-M is produced on a typewriter, the ribbon must 
be removed and stored in the same manner as other SGI-M information or 
media.) The basic objective of these restrictions is to prevent access 
and retrieval of stored SGI-M by unauthorized individuals, particularly 
from remote terminals. Specific files containing SGI-M will be password 
protected to preclude access by an unauthorized individual. The 
National Institute of Standards and Technology (NIST) maintains a 
listing of all validated encryption systems at http://csrc.nist.gov/
cryptval/140-1/1401val.htm. SGI-M files may be transmitted over a 
network if the file is encrypted. In such cases, the licensee will 
select a commercially available encryption system that NIST has 
validated as conforming to Federal Information Processing Standards 
(FIPS). SGI-M files shall be properly labeled as ``Safeguards 
Information--Modified Handling'' and saved to removable media and 
stored in a locked file drawer or cabinet.

Telecommunications

    SGI-M may not be transmitted by unprotected telecommunications 
circuits except under emergency or extraordinary conditions. For the 
purpose of this requirement, emergency or extraordinary conditions are 
defined as any circumstances that require immediate communications in 
order to report, summon assistance for, or respond to a security event 
(or an event that has potential security significance).
    This restriction applies to telephone, telegraph, teletype, 
facsimile circuits, and to radio. Routine telephone or radio 
transmission between site security personnel, or between the site and 
local police, should be limited to message formats or codes that do not 
disclose facility security features or response procedures. Similarly, 
call-ins during transport should not disclose information useful to a 
potential adversary. Infrequent or non-repetitive telephone 
conversations regarding a physical security plan or program are 
permitted provided that the discussion is general in nature.
    Individuals should use care when discussing SGI-M at meetings or in 
the presence of others to ensure that the conversation is not overheard 
by persons not authorized access. Transcripts, tapes or minutes of 
meetings or hearings that contain SGI-M shall be marked and protected 
in accordance with these requirements.

Destruction

    Documents containing SGI-M should be destroyed when no longer 
needed. They may be destroyed by tearing into small pieces, burning, 
shredding or any other method that precludes reconstruction by means 
available to the public at large. Piece sizes one half inch or smaller 
composed of several pages or documents and thoroughly mixed would be 
considered completely destroyed.
    Attachment 3: Trustworthy and Reliability Requirements for 
Individuals Handling Safeguards Information.
    In order to ensure the safe handling, use, and control of 
information designated as Safeguards Information, each licensee shall 
control and limit access to the information to only those individuals 
who have established the need-to-know the information, and are 
considered to be trustworthy and reliable. Licensees shall document the 
basis for concluding that there is reasonable assurance that 
individuals granted access to Safeguards Information are trustworthy 
and reliable, and do not constitute an unreasonable risk for malevolent 
use of the information.
    The Licensee shall comply with the requirements of this attachment:
    8. The trustworthiness and reliability of an individual shall be 
determined based on a background investigation:
    (a) The background investigation shall address at least the past 3 
years, and, at a minimum, include verification of employment, 
education, and personal references. The licensee shall also, to the 
extent possible, obtain independent information to corroborate that 
provided

[[Page 12217]]

by the employee (i.e., seeking references not supplied by the 
individual).
    (b) If an individual's employment has been less than the required 
3-year period, educational references may be used in lieu of employment 
history.
    The licensee's background investigation requirements may be 
satisfied for an individual that has an active Federal security 
clearance.
    9. The licensee shall retain documentation regarding the 
trustworthiness and reliability of individual employees for 3 years 
after the individual's employment ends.
[FR Doc. E7-4753 Filed 3-14-07; 8:45 am]
BILLING CODE 7590-01-P