In the Matter of Licensee Identified in Attachment 1 and all Other Persons Who Obtain Safeguards Information Described Herein; Order Imposing Requirements for the Protection of Certain Safeguards Information (Effective Immediately), 65215-65220 [2012-26288]

Download as PDF Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 / Notices a. Prior to a determination by the NRC Facilities Security Branch Chief that an individual nominated as a reviewing official is denied or revoked access to SGI, the individual shall: (i) Be afforded an opportunity to submit information relevant to the individual’s trustworthiness and reliability. The NRC Facilities Security Branch Chief shall, in writing, notify the individual of this opportunity, and any deadlines for submitting this information. The NRC Facilities Security Branch Chief may make a determination of access to SGI only upon receipt of the additional information submitted by the individual, or, if no such information is submitted, when the deadline to submit such information has passed. 6. Procedures to Notify an Individual of the NRC Facilities Security Branch Chief Determination to Deny or Revoke Access to SGI. a. Upon a determination by the NRC Facilities Security Branch Chief that an individual nominated as a reviewing official is denied or revoked access to SGI, the individual shall be provided a written explanation of the basis for this determination. 7. Procedures to Appeal an NRC Determination to Deny or Revoke Access to SGI. a. Upon a determination by the NRC Facilities Security Branch Chief that an individual nominated as a reviewing official is denied or revoked access to SGI, the individual shall be afforded an opportunity to appeal this determination to the Director, Division of Facilities and Security. The determination must be appealed within 20 days of receipt of the written notice of the determination by the Facilities Security Branch Chief, and may either be in writing or in person. Any appeal made in person shall take place at the NRC’s headquarters, and shall be at the individual’s own expense. The determination by the Director, Division of Facilities and Security, shall be rendered within 60 days after receipt of the appeal. 8. Procedures to Notify an Individual of the Determination by the Director, Division of Facilities and Security, Upon an Appeal. a. A determination by the Director, Division of Facilities and Security, shall be provided to the individual in writing and include an explanation of the basis for this determination. A determination by the Director, Division of Facilities and Security, to affirm the Facilities Branch Chief’s determination to deny or revoke an individual’s access to SGI is final and not subject to further administrative appeals. [FR Doc. 2012–26292 Filed 10–24–12; 8:45 am] erowe on DSK2VPTVN1PROD with BILLING CODE 7590–01–P VerDate Mar<15>2010 12:06 Oct 24, 2012 Jkt 229001 NUCLEAR REGULATORY COMMISSION [NRC–2012–0254; EA–12–147] In the Matter of Licensee Identified in Attachment 1 and all Other Persons Who Obtain Safeguards Information Described Herein; Order Imposing Requirements for the Protection of Certain Safeguards Information (Effective Immediately) I The Licensee, identified in Attachment 1 1 to this Order, holds a license issued in accordance with the Atomic Energy Act of 1954, as amended, (AEA) by the U.S. Nuclear Regulatory Commission (NRC or the Commission), authorizing it to possess, use, and transfer items containing radioactive material quantities of concern. The NRC intends to issue a security Order to this Licensee in the near future. The Order will require compliance with specific Additional Security Measures to enhance the security for certain radioactive material quantities of concern. 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–12–148, so that the Licensee 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. II The Commission has broad statutory authority to protect and prohibit the unauthorized disclosure of Safeguards Information. Section 147 of the AEA grants the Commission explicit authority to ‘‘* * * issue such orders, as necessary to prohibit the unauthorized disclosure of safeguards 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 of Energy, except that the Department of Energy shall be considered a person with respect to those facilities of the Department of Energy 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. PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 65215 information * * *.’’ This authority extends to information concerning the security measures for the physical protection 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 and are considered to be trustworthy and reliable, and meet the requirements of Order EA–12–148. 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. The Licensee 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. The Licensee 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, or maintain and implement their own acceptable policies and procedures. The Licensee remains 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 E:\FR\FM\25OCN1.SGM 25OCN1 65216 Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 / Notices 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 Licensee is implementing prudent measures to achieve a consistent level of protection to prohibit the unauthorized disclosure of Safeguards Information, the Licensee shall implement the requirements identified in Attachments 2 and 3 to this Order. In addition, pursuant to Attachments 2 and 3 to this Order, 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. erowe on DSK2VPTVN1PROD with 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, 10 CFR Part 70, and 10 CFR Part 73, it is hereby ordered, effective immediately, that the licensee 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. The Director, Office of Federal and State Materials and Environmental Management Programs, may, in writing, 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 within twenty (20) days of the date of this Order. In addition, the Licensee and any other person adversely affected by this Order may request a hearing of this Order within twenty (20) days of the date of the Order. Where good cause is shown, consideration will be given to extending the time to request a hearing. A request for extension of time 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 20555–0001, and VerDate Mar<15>2010 12:06 Oct 24, 2012 Jkt 229001 include a statement of good cause for the extension. The answer may consent to this Order. If the answer includes a request for a hearing, it shall, under oath or affirmation, specifically set forth the matters of fact and law on which the Licensee relies and the reasons as to why the Order should not have been issued. 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(d). Pursuant to 10 CFR 2.202(c)(2)(i), the Licensee or any other person adversely affected by this Order may, in addition to requesting 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, ungrounded allegations or error. All documents filed in the NRC adjudicatory proceedings, including a request for hearing, a petition for leave to intervene, any motion or other document filed in the proceeding prior to the submission of a request for hearing or petition to intervene, and documents filed by interested governmental entities participating under 10 CFR 2.315(c), must be filed in accordance with the NRC’s E-Filing rule (72 FR 49139; August 28, 2007). The EFiling process requires participants to submit and serve all adjudicatory documents over the internet, or in some cases to mail copies on electronic storage media. Participants may not submit paper copies of their filings unless they seek an exemption in accordance with the procedures described below. To comply with the procedural requirements of E-Filing, at least 10 days prior to the filing deadline, the participant should contact the Office of the Secretary by email at hearing.docket@nrc.gov, or by telephone at 301–415–1677, to request (1) a digital identification (ID) certificate, which allows the participant (or its counsel or representative) to digitally sign documents and access the E-Submittal server for any proceeding in which it is participating; and (2) advise the Secretary that the participant will be submitting a request or petition for hearing (even in instances in which the participant, or its counsel or representative, already holds an NRCissued digital ID certificate). Based upon this information, the Secretary will establish an electronic docket for the PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 hearing in this proceeding if the Secretary has not already established an electronic docket. Information about applying for a digital ID certificate is available on the NRC’s public Web site at https:// www.nrc.gov/site-help/e-submittals/ apply-certificates.html. System requirements for accessing the ESubmittal server are detailed in the NRC’s ‘‘Guidance for Electronic Submission,’’ which is available on the NRC’s public Web site at https:// www.nrc.gov/site-help/esubmittals.html. Participants may attempt to use other software not listed on the Web site, but should note that the NRC’s E-Filing system does not support unlisted software, and the NRC Meta System Help Desk will not be able to offer assistance in using unlisted software. If a participant is electronically submitting a document to the NRC in accordance with the E-Filing rule, the participant must file the document using the NRC’s online, Web-based submission form. In order to serve documents through the Electronic Information Exchange System, users will be required to install a Web browser plug-in from the NRC’s Web site. Further information on the Webbased submission form, including the installation of the Web browser plug-in, is available on the NRC’s public Web site at https://www.nrc.gov/site-help/esubmittals.html. Once a participant has obtained a digital ID certificate and a docket has been created, the participant can then submit a request for hearing or petition for leave to intervene. Submissions should be in Portable Document Format (PDF) in accordance with the NRC guidance available on the NRC’s Web site at https://www.nrc.gov/site-help/esubmittals.html. A filing is considered complete at the time the documents are submitted through the NRC’s E-Filing system. To be timely, an electronic filing must be submitted to the E-Filing system no later than 11:59 p.m. Eastern Time on the due date. Upon receipt of a transmission, the E-Filing system time-stamps the document and sends the submitter an email notice confirming receipt of the document. The E-Filing system also distributes an email notice that provides access to the document to the NRC’s Office of the General Counsel and any others who have advised the Office of the Secretary that they wish to participate in the proceeding, so that the filer need not serve the documents on those participants separately. Therefore, applicants and other participants (or their counsel or representative) must E:\FR\FM\25OCN1.SGM 25OCN1 erowe on DSK2VPTVN1PROD with Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 / Notices apply for and receive a digital ID certificate before a hearing request/ petition to intervene is filed so that they can obtain access to the document via the E-Filing system. A person filing electronically using the agency’s adjudicatory E-Filing system may seek assistance by contacting the NRC Meta System Help Desk through the ‘‘Contact Us’’ link located on the NRC Web site at https:// www.nrc.gov/site-help/esubmittals.html, by email at MSHD.Resource@nrc.gov, or by a tollfree call at 1–866–672–7640. The NRC Meta System Help Desk is available between 8 a.m. and 8 p.m., Eastern Time, Monday through Friday, excluding government holidays. Participants who believe that they have a good cause for not submitting documents electronically must file an exemption request, in accordance with 10 CFR 2.302(g), with their initial paper filing requesting authorization to continue to submit documents in paper format. Such filings must be submitted by: (1) First class mail addressed to the Office of the Secretary of the Commission, U.S. Nuclear Regulatory Commission, Washington, DC 20555– 0001, Attention: Rulemaking and Adjudications Staff; or (2) courier, express mail, or expedited delivery service to the Office of the Secretary, Sixteenth Floor, One White Flint North, 11555 Rockville Pike, Rockville, Maryland, 20852, Attention: Rulemaking and Adjudications Staff. Participants filing a document in this manner are responsible for serving the document on all other participants. Filing is considered complete by firstclass mail as of the time of deposit in the mail, or by courier, express mail, or expedited delivery service upon depositing the document with the provider of the service. A presiding officer, having granted an exemption request from using E-Filing, may require a participant or party to use E-Filing if the presiding officer subsequently determines that the reason for granting the exemption from use of E-Filing no longer exists. Documents submitted in adjudicatory proceedings will appear in NRC’s electronic hearing docket which is available to the public at https:// ehd1.nrc.gov/EHD/, unless excluded pursuant to an order of the Commission, or the presiding officer. Participants are requested not to include personal privacy information, such as social security numbers, home addresses, or home phone numbers in their filings, unless an NRC regulation or other law requires submission of such information. With respect to VerDate Mar<15>2010 12:06 Oct 24, 2012 Jkt 229001 copyrighted works, except for limited excerpts that serve the purpose of the adjudicatory filings and would constitute a Fair Use application, participants are requested not to include copyrighted materials in their submission. 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 requesting 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 at Rockville, Maryland, this 16th day of October, 2012. For the Nuclear Regulatory Commission. Mark A. Satorius, Director, Office of Federal and State Materials and Environmental Management Programs. Attachment 1: Applicable Materials Licensees Redacted Attachment 2—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 PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 65217 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., 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 E:\FR\FM\25OCN1.SGM 25OCN1 65218 Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 / Notices 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 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. erowe on DSK2VPTVN1PROD with 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; or 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. 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 VerDate Mar<15>2010 12:06 Oct 24, 2012 Jkt 229001 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 ‘‘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. PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 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 nation-wide overnight service with computer tracking features, US 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 E:\FR\FM\25OCN1.SGM 25OCN1 Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 / Notices erowe on DSK2VPTVN1PROD with ‘‘Safeguards Information Modified Handling.’’ In additional 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 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. VerDate Mar<15>2010 12:06 Oct 24, 2012 Jkt 229001 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 offsite. (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 https://csrc.nist.gov/cryptval/1401/ 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 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 65219 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 insure 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—Trustworthiness 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 E:\FR\FM\25OCN1.SGM 25OCN1 65220 Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 / Notices 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: 1. 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 three (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 by the employee (i.e., seeking references not supplied by the individual). (b.) If an individual’s employment has been less than the required three (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. 2. The licensee shall retain documentation regarding the trustworthiness and reliability of individual employees for three years after the individual’s employment ends. In order for an individual to be granted access to Safeguards Information, the individual must be determined to be trustworthy and reliable, as describe in requirement 1 above, and meet the requirements of NRC Order EA–12–148. DG–SGI–1, Designation Guide for Safeguards Information Redacted [FR Doc. 2012–26288 Filed 10–24–12; 8:45 am] BILLING CODE 7590–01–P NUCLEAR REGULATORY COMMISSION [NRC–2012–0257; EA–12–062] Certain Licensees Requesting Unescorted Access to Radioactive Material; Order Imposing Trustworthiness and Reliability Requirements for Unescorted Access to Certain Radioactive Material (Effective Immediately) erowe on DSK2VPTVN1PROD with I The Licensee identified in Attachment 1 1 to this Order holds a license issued by an Agreement State, in accordance with the Atomic Energy Act (AEA) of 1954, as amended. The license authorizes it to perform services on devices containing certain radioactive material for customers licensed by the 1 Attachment 1 contains sensitive information and will not be released to the public. VerDate Mar<15>2010 12:06 Oct 24, 2012 Jkt 229001 U.S. Nuclear Regulatory Commission (NRC) or an Agreement State to possess and use certain quantities of the radioactive materials listed in Attachment 2 to this Order. Commission regulations at 10 CFR 20.1801 or equivalent Agreement State regulations require Licensees to secure, from unauthorized removal or access, licensed materials that are stored in controlled or unrestricted areas. Commission regulations at 10 CFR 20.1802 or equivalent Agreement State regulations require Licensees to control and maintain constant surveillance of licensed material that is in a controlled or unrestricted area and that is not in storage. II Subsequent to the terrorist events of September 11, 2001, the NRC issued immediately effective security Orders to NRC and Agreement State Licensees under the Commission’s authority to protect the common defense and security of the nation. The Orders required certain manufacturing and distribution (M&D) Licensees to implement Additional Security Measures (ASMs) for the radioactive materials listed in Attachment 2 to this Order (the radionuclides of concern), to supplement the existing regulatory requirements. The ASMs included requirements for determining the trustworthiness and reliability of individuals that require unescorted access to the radionuclides of concern. Section 652 of the Energy Policy Act of 2005, which became law on August 8, 2005, amended Section 149 of the AEA to require fingerprinting and a Federal Bureau of Investigation (FBI) identification and criminal history records check for ‘‘any individual who is permitted unescorted access to radioactive materials or other property subject to regulation by the Commission that the Commission determines to be of such significance to the public health and safety or the common defense and security as to warrant fingerprinting and background checks.’’ Section 149 of the AEA also requires that ‘‘all fingerprints obtained by a Licensee or applicant* * *shall be submitted to the Attorney General of the United States through the Commission for identification and a criminal history records check.’’ As a result, the trustworthiness and reliability requirements of the ASMs were updated and the M&D Licensees were issued additional Orders imposing the new fingerprinting requirements. In late 2005, the NRC and the Agreement States began issuing Increased Controls (IC) Orders or other PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 legally binding requirements to Licensees who are authorized to possess the radionuclides of concern. Paragraph IC 1.c of the IC requirements stated that ‘‘service providers shall be escorted unless determined to be trustworthy and reliable by an NRC-required background investigation as an employee of a Manufacturing and Distribution Licensee.’’ Starting in December 2007, the NRC and the Agreement States began issuing additional Orders or other legally binding requirements to the IC Licensees, imposing the new fingerprinting requirements. In the December 2007 Fingerprinting Order, Paragraph IC 1.c of the IC requirements was superseded by the requirement that ‘‘Service provider Licensee employees shall be escorted unless determined to be trustworthy and reliable by an NRCrequired background investigation.’’ However, NRC did not require background investigations for non-M&D service provider Licensees. Consequently, only service representatives of certain M&D Licensees may be granted unescorted access to the radionuclides of concern at an IC Licensee facility, even though non-M&D service provider Licensees provide similar services and have the same degree of knowledge of the devices they service as M&D Licensees. To maintain appropriate access control to the radionuclides of concern, and to allow M&D Licensees and non-M&D service provider Licensees to have the same level of access at customers’ facilities, NRC is imposing trustworthiness and reliability requirements for unescorted access to radionuclides of concern, as set forth in this Order. These requirements apply to non-M&D service provider Licensees that request and have a need for unescorted access by their representatives to the radionuclides of concern at IC Licensee facilities. These trustworthiness and reliability requirements are equivalent to the requirements for M&D Licensees who perform services requiring unescorted access to the radionuclides of concern. In order to provide assurance that non-M&D service provider Licensees are implementing prudent measures to achieve a consistent level of protection for service providers requiring unescorted access to the radionuclides of concern at IC Licensee facilities, the Licensee identified in Attachment 1 to this Order shall implement the requirements of this Order. In addition, pursuant to 10 CFR 2.202, because of potentially significant adverse impacts associated with a deliberate malevolent act by an individual with unescorted E:\FR\FM\25OCN1.SGM 25OCN1

Agencies

[Federal Register Volume 77, Number 207 (Thursday, October 25, 2012)]
[Notices]
[Pages 65215-65220]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-26288]


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NUCLEAR REGULATORY COMMISSION

[NRC-2012-0254; EA-12-147]


In the Matter of Licensee Identified in Attachment 1 and all 
Other Persons Who Obtain Safeguards Information Described Herein; Order 
Imposing Requirements for the Protection of Certain Safeguards 
Information (Effective Immediately)

I

    The Licensee, identified in Attachment 1 \1\ to this Order, holds a 
license issued in accordance with the Atomic Energy Act of 1954, as 
amended, (AEA) by the U.S. Nuclear Regulatory Commission (NRC or the 
Commission), authorizing it to possess, use, and transfer items 
containing radioactive material quantities of concern. The NRC intends 
to issue a security Order to this Licensee in the near future. The 
Order will require compliance with specific Additional Security 
Measures to enhance the security for certain radioactive material 
quantities of concern. 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-12-148, so that the 
Licensee 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 
of Energy, except that the Department of Energy shall be considered 
a person with respect to those facilities of the Department of 
Energy 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 AEA 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 the security measures for the physical 
protection 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 and are considered to 
be trustworthy and reliable, and meet the requirements of Order EA-12-
148. 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.
    The Licensee 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. The Licensee 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, or maintain and 
implement their own acceptable policies and procedures. The Licensee 
remains 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

[[Page 65216]]

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 Licensee is implementing 
prudent measures to achieve a consistent level of protection to 
prohibit the unauthorized disclosure of Safeguards Information, the 
Licensee shall implement the requirements identified in Attachments 2 
and 3 to this Order. In addition, pursuant to Attachments 2 and 3 to 
this Order, 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, 10 CFR Part 70, and 10 CFR Part 73, it is hereby 
ordered, effective immediately, that the licensee 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.
    The Director, Office of Federal and State Materials and 
Environmental Management Programs, may, in writing, 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 within twenty (20) days of the date of this Order. In addition, 
the Licensee and any other person adversely affected by this Order may 
request a hearing of this Order within twenty (20) days of the date of 
the Order. Where good cause is shown, consideration will be given to 
extending the time to request a hearing. A request for extension of 
time 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 20555-0001, and include a 
statement of good cause for the extension.
    The answer may consent to this Order. If the answer includes a 
request for a hearing, it shall, under oath or affirmation, 
specifically set forth the matters of fact and law on which the 
Licensee relies and the reasons as to why the Order should not have 
been issued. 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(d). Pursuant to 10 CFR 
2.202(c)(2)(i), the Licensee or any other person adversely affected by 
this Order may, in addition to requesting 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, ungrounded allegations or 
error.
    All documents filed in the NRC adjudicatory proceedings, including 
a request for hearing, a petition for leave to intervene, any motion or 
other document filed in the proceeding prior to the submission of a 
request for hearing or petition to intervene, and documents filed by 
interested governmental entities participating under 10 CFR 2.315(c), 
must be filed in accordance with the NRC's E-Filing rule (72 FR 49139; 
August 28, 2007). The E-Filing process requires participants to submit 
and serve all adjudicatory documents over the internet, or in some 
cases to mail copies on electronic storage media. Participants may not 
submit paper copies of their filings unless they seek an exemption in 
accordance with the procedures described below.
    To comply with the procedural requirements of E-Filing, at least 10 
days prior to the filing deadline, the participant should contact the 
Office of the Secretary by email at hearing.docket@nrc.gov, or by 
telephone at 301-415-1677, to request (1) a digital identification (ID) 
certificate, which allows the participant (or its counsel or 
representative) to digitally sign documents and access the E-Submittal 
server for any proceeding in which it is participating; and (2) advise 
the Secretary that the participant will be submitting a request or 
petition for hearing (even in instances in which the participant, or 
its counsel or representative, already holds an NRC-issued digital ID 
certificate). Based upon this information, the Secretary will establish 
an electronic docket for the hearing in this proceeding if the 
Secretary has not already established an electronic docket.
    Information about applying for a digital ID certificate is 
available on the NRC's public Web site at https://www.nrc.gov/site-help/e-submittals/apply-certificates.html. System requirements for accessing 
the E-Submittal server are detailed in the NRC's ``Guidance for 
Electronic Submission,'' which is available on the NRC's public Web 
site at https://www.nrc.gov/site-help/e-submittals.html. Participants 
may attempt to use other software not listed on the Web site, but 
should note that the NRC's E-Filing system does not support unlisted 
software, and the NRC Meta System Help Desk will not be able to offer 
assistance in using unlisted software.
    If a participant is electronically submitting a document to the NRC 
in accordance with the E-Filing rule, the participant must file the 
document using the NRC's online, Web-based submission form. In order to 
serve documents through the Electronic Information Exchange System, 
users will be required to install a Web browser plug-in from the NRC's 
Web site. Further information on the Web-based submission form, 
including the installation of the Web browser plug-in, is available on 
the NRC's public Web site at https://www.nrc.gov/site-help/e-submittals.html.
    Once a participant has obtained a digital ID certificate and a 
docket has been created, the participant can then submit a request for 
hearing or petition for leave to intervene. Submissions should be in 
Portable Document Format (PDF) in accordance with the NRC guidance 
available on the NRC's Web site at https://www.nrc.gov/site-help/e-submittals.html. A filing is considered complete at the time the 
documents are submitted through the NRC's E-Filing system. To be 
timely, an electronic filing must be submitted to the E-Filing system 
no later than 11:59 p.m. Eastern Time on the due date. Upon receipt of 
a transmission, the E-Filing system time-stamps the document and sends 
the submitter an email notice confirming receipt of the document. The 
E-Filing system also distributes an email notice that provides access 
to the document to the NRC's Office of the General Counsel and any 
others who have advised the Office of the Secretary that they wish to 
participate in the proceeding, so that the filer need not serve the 
documents on those participants separately. Therefore, applicants and 
other participants (or their counsel or representative) must

[[Page 65217]]

apply for and receive a digital ID certificate before a hearing 
request/petition to intervene is filed so that they can obtain access 
to the document via the E-Filing system.
    A person filing electronically using the agency's adjudicatory E-
Filing system may seek assistance by contacting the NRC Meta System 
Help Desk through the ``Contact Us'' link located on the NRC Web site 
at https://www.nrc.gov/site-help/e-submittals.html, by email at 
MSHD.Resource@nrc.gov, or by a toll-free call at 1-866-672-7640. The 
NRC Meta System Help Desk is available between 8 a.m. and 8 p.m., 
Eastern Time, Monday through Friday, excluding government holidays.
    Participants who believe that they have a good cause for not 
submitting documents electronically must file an exemption request, in 
accordance with 10 CFR 2.302(g), with their initial paper filing 
requesting authorization to continue to submit documents in paper 
format. Such filings must be submitted by: (1) First class mail 
addressed to the Office of the Secretary of the Commission, U.S. 
Nuclear Regulatory Commission, Washington, DC 20555-0001, Attention: 
Rulemaking and Adjudications Staff; or (2) courier, express mail, or 
expedited delivery service to the Office of the Secretary, Sixteenth 
Floor, One White Flint North, 11555 Rockville Pike, Rockville, 
Maryland, 20852, Attention: Rulemaking and Adjudications Staff. 
Participants filing a document in this manner are responsible for 
serving the document on all other participants. Filing is considered 
complete by first-class mail as of the time of deposit in the mail, or 
by courier, express mail, or expedited delivery service upon depositing 
the document with the provider of the service. A presiding officer, 
having granted an exemption request from using E-Filing, may require a 
participant or party to use E-Filing if the presiding officer 
subsequently determines that the reason for granting the exemption from 
use of E-Filing no longer exists.
    Documents submitted in adjudicatory proceedings will appear in 
NRC's electronic hearing docket which is available to the public at 
https://ehd1.nrc.gov/EHD/, unless excluded pursuant to an order of the 
Commission, or the presiding officer. Participants are requested not to 
include personal privacy information, such as social security numbers, 
home addresses, or home phone numbers in their filings, unless an NRC 
regulation or other law requires submission of such information. With 
respect to copyrighted works, except for limited excerpts that serve 
the purpose of the adjudicatory filings and would constitute a Fair Use 
application, participants are requested not to include copyrighted 
materials in their submission.
    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 
requesting 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 at Rockville, Maryland, this 16th day of October, 2012.

    For the Nuclear Regulatory Commission.
Mark A. Satorius,
Director, Office of Federal and State Materials and Environmental 
Management Programs.

Attachment 1: Applicable Materials Licensees Redacted

Attachment 2--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

[[Page 65218]]

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 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; or
    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.
    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 nation-wide overnight service with computer tracking features, 
US 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

[[Page 65219]]

``Safeguards Information Modified Handling.''
    In additional 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 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 
offsite. (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 https://csrc.nist.gov/cryptval/1401/1401val.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 insure 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--Trustworthiness 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

[[Page 65220]]

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:
    1. 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 
three (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 by the employee (i.e., seeking references not supplied by the 
individual).
    (b.) If an individual's employment has been less than the required 
three (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.
    2. The licensee shall retain documentation regarding the 
trustworthiness and reliability of individual employees for three years 
after the individual's employment ends. In order for an individual to 
be granted access to Safeguards Information, the individual must be 
determined to be trustworthy and reliable, as describe in requirement 1 
above, and meet the requirements of NRC Order EA-12-148.

DG-SGI-1, Designation Guide for Safeguards Information Redacted

[FR Doc. 2012-26288 Filed 10-24-12; 8:45 am]
BILLING CODE 7590-01-P
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